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My Benchmark | The math and magic of ‘data driven’ marketing budgeting & measurement The Math and Magic of ‘data driven’ marketing budgeting and measurement 1

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My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

The Math and Magic of ‘data driven’

marketing budgeting and measurement

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My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

Fluffy and Weak

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

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Source: Marketing Week

7%

Can exactly quantify ROI for

marketing spend

of financial directors

83%

Are unable to quantify ROI from

their marketing

of marketers

“Fluffy and Weak”

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

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49%

Believe their role has expanded to

include strategic and financial

responsibility

of marketers

36%

Say Marketers role has expanded to

include strategic and financial

responsibility

of financial directors

Source: Marketing Week

Maths + Magic

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

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• Using their data to build forecasts,

benchmarks and KPIs

• Have more control over budget for potential

growth aligned to commercial strategy

What marketers

need to be better at

• Understanding commercial objectives

• Realistic forecasts and predictions (trends and benchmarks)

• More accurate reporting (KPIs and metrics)

What financial directors

want from marketers

+ Automation | Complexity | Differentiation | SalesSource: Marketing Week

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

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Trends & Benchmarking

Provide the ‘gap’

KPIs & MetricsProvide the ‘focus’

McKinsey Big 5 Capabilities to support digital marketing operations

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

The struggle

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

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When marketing is given a budget by finance it’s then seen as an expense . . .

…and you have no control.

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

FD says “Get to this number >20% growth”.

Because you’re not in control of the numbers…. and knowing where that growth is coming from.

This is as much about maturity of marketing and marketers as hitting a number

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My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

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The maths and magic of “The goal”

Diagnosis = the why

Definition = the how

Trends Yours across

different areas

Benchmarks Industry, others and yours

Goal or Target [financial] Multi-year, current year, quarter

KPIs Financials, Conversion rates,

number of [sales]

Metrics & Measures Key metrics to monitor

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

Understanding Maturity

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

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The budgeting and benchmarking maturity index

Laggards Legends

B2B organisations, who outsource

have a small growth rate of 6-10% year on year

B2C organisations, who have control in-house

have a growth rate in excess of 20% year on year

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

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Profile of Laggards

✓ Data is shared through Google Analytics and Excel

✓ More is outsourced (especially User experience and Analytics)

✓Struggle to attribute results due to complexity

✓ Sell in-direct, revenue remained the same year on year

✓ Digital investment accounted for 6-10%

✓ More B2B

Typical Industry Vertical

✓ Manufacturing and Engineering

✓Print & Publishing

✓Media & Advertising

✓Food & Beverage

✓Government

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

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Profile of Legends

✓ Data is shared through Excel and Business Intelligence

✓ More in-house (especially Email, Social, Analytics)

✓Manage to attribute campaign to ROI by channel and device

✓ Sell direct, revenue increased >10%

✓ Digital investment accounted for >20%

✓ More B2C (transactional)

Typical Industry Vertical

✓ Travel & Hospitality

✓ Telecomms

✓ Tech & Software

✓ Retail Ecommerce

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

Demystifying the bullshit of budgeting

and benchmarking

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

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3 facts

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

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Continual adjustment and changing of forecasts and budgets improves results

1

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

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Goals dictate the budget NOT the budget dictating the goal

2

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

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Attribution is key, but complexity is a key barrier

3

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

Budget Forecasting and Measurement

is a Science and an Art

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

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Two tools to determine your GAP

TRENDING

BENCHMARKAllows you to diagnose where you are heading

Enables you to focus on the things which are important - trending up vs down

Used to measure change over time

Means you know if are exceeding the market

Enables you to focus on the things which are urgent - gap to competition up vs down

Looks at your results against the competition

KPIs: Best, Worst, You and the industry Average

KPIs: Year on Year, Quarter on Quarter change

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

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Understand the market

Today 2018

Year 1 2019

Year 2 2020

Year 3 2021

Year 4 2022

WHATS ACHIEVABLE

WHATS ACHIEVABLE

WHATS ACHIEVABLE

Your year on year growth rate…%

IF YOU DO ALMOST

NOTHINGIF YOU

IMPROVE

GAP

WHERE YOU WANT TO BE

BIG IDEAS WHICH BENEFIT THE

CUSTOMER AND REDEFINE THE SECTOR

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

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Understand the Reality not the Rubbish

Today 2018

Year 1 2019

Year 2 2020

Year 3 2021

Year 4 2022

WHATS ACHIEVABLE

WHATS ACHIEVABLE

WHATS ACHIEVABLE

Your year on year growth rate…%

Revenue

Direct vs Indirect (%)

01

Revenue

For Digital (%)

02

Compound Annual Growth rate (3 years)

03

IF YOU DO ALMOST

NOTHINGIF YOU

IMPROVE

04Market share against competitors PLUS their website volumes and metrics

GAP

WHERE YOU WANT TO BE

05 Headline opportunity for the market

Spend per customer & repeat purchase rate, number of new customers

06

BIG IDEAS WHICH BENEFIT THE

CUSTOMER AND REDEFINE THE SECTOR

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

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Build your budget

01Define Headline £ opportunity for the market

Determine the number of transactions required02

Confirm the number of visitors required . GAP of returning vs New

04

Identify the number of engaged visitors required 03

Confirm the best mix of media to close the audience GAP & match best competitor

05

Define the budget required on the media mix, using the Cost per acquisition

06

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

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Top tips and Takeaways

✓Use a benchmark to understand the gap to the competition

✓Use trends to understand if you are closing the gap to the competition

✓ Build the market opportunity first before defining the Goal

✓ Create your budget by working back from the goal you set

✓ Adjust your budget and forecast frequently

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

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Ask us about our automated [email protected] [email protected]

@wearecrank

wearecrank.com

My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t

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END