1. 10/2/2013
Maximizing the ROI
of Inbound Clicks,
Content &
Conversion
AMA Webinar
Sponsored by
© 2013 Lenskold Group, Inc. All rights reserved.
© 2013 Lenskold Group, Inc. All rights reserved.
Lenskold Group Overview
Partial Client List
Lenskold Group founded in 1997
Marketing profitability management
•
•
•
•
ROI Framework
Measurement & Analysis
ROI Tools & Dashboards
Workshops & Training
“Marketing ROI” book
•
One of the 5 most influential
marketing books of 2004
Leading marketing ROI innovator
© 2013 Lenskold Group, Inc. All rights reserved.
Not for copy or distribution without written
permission from Lenskold Group
1

2. 10/2/2013
Inbound Marketing
Measurement Framework
© 2013 Lenskold Group, Inc. All rights reserved.
Influence on Buyer Decisions
BUYER STAGES
ROLES OF
INBOUND + CONTENT
Brand Mktg
Unaware & Untroubled
Inbound Mktg
Seeker
Nurture Mktg
Shopper
Demand Mktg
Buyer
CONTENT
Trouble Prospects
Explorer
Attract & Engage
Educate
Differentiate
Progress & Convert
User
Sales Channel
Add Value
FINANCIAL OUTCOMES
Increase Sales via Volume
Increase Sales via Conversion
Increase Customer Value
Increase Loyalty & Advocacy
© 2013 Lenskold Group, Inc. All rights reserved.
Not for copy or distribution without written
permission from Lenskold Group
2

3. 10/2/2013
Inbound Mktg
Paid Search SEO
QR Codes
E-mail
Online Ads
Social Media
CONTENT
Inbound & Content Marketing
Products & Services
White Papers Blogs
Newsletters e-Books
Video
Research
Webinars
Podcasts
Infographics
© 2013 Lenskold Group, Inc. All rights reserved.
Maximizing ROI
Brand Mktg
Inbound Mktg
Nurture Mktg
Demand Mktg
Sales Channel
=
CONTENT
Net Profit
ROI = -------------------------Marketing Invt
FINANCIAL OUTCOMES
Increase Sales via Volume
Increase Sales via Conversion
Increase Customer Value
Increase Loyalty & Advocacy
(Gross Margin – Marketing Invt)
------------------------------Marketing Investment
Inbound Marketing
Spend
Increase efficiency
(e.g. SEO vs. SEM)
Incremental Profits
Increase
effectiveness
“Gross Margin” equals the Discounted Cash Flow (Net Present Value) of incremental profits and costs
that result specifically from the corresponding marketing investment
6
© 2013 Lenskold Group, Inc. All rights reserved.
Not for copy or distribution without written
permission from Lenskold Group
3

4. 10/2/2013
Current Measures & Reporting
Brand Mktg
Inbound Mktg
Nurture Mktg
Demand Mktg
Sales Channel
=
(Gross Margin – Marketing Invt)
------------------------------Marketing Investment
COMMON MEASURES
CONTENT
Net Profit
ROI = -------------------------Marketing Invt
FINANCIAL OUTCOMES
Increase Sales via Volume
Increase Sales via Conversion
Increase Customer Value
Increase Loyalty & Advocacy
Click Thru Rates
Engagement by Tactic
New Names by Source
New Leads by Source
?
Cost per Engagement,
Lead or Sale
“Gross Margin” equals the Discounted Cash Flow (Net Present Value) of incremental profits and costs
that result specifically from the corresponding marketing investment
7
© 2013 Lenskold Group, Inc. All rights reserved.
Measurement Challenges
Choosing right metrics
• No closed loop tracking
• Not reflecting role of tactic
Inaccurate credit for outcomes:
• First touch Missing impact
• Last touch Missing impact
• Shared attribution Subjective
Need multi-contact measures
More tactical than strategic
measures. Need insights into:
•
•
•
•
Targeting
Offer/Message
Destination
Integration
© 2013 Lenskold Group, Inc. All rights reserved.
Not for copy or distribution without written
permission from Lenskold Group
4

5. 10/2/2013
Measurement & ROI Priorities
1. Better Metrics for Tracking Clicks, Content & Conversion
2. Measurements to Capture Incremental Lift for ROI
3. Improving Inbound Marketing ROI
© 2013 Lenskold Group, Inc. All rights reserved.
1. Better Metrics for Tracking
Clicks, Content & Conversion
© 2013 Lenskold Group, Inc. All rights reserved.
Not for copy or distribution without written
permission from Lenskold Group
5

6. 10/2/2013
Approach to Measurements
Inbound Marketing
Key Measure: Quality of inbound
Inbound Mktg
• Targeting
• Destination
• Engagement
Nurture Mktg
Demand Mktg
CONTENT
Brand Mktg
Content Marketing
Key Measure: Incremental sales & profits
Sales Channel
• Engagement
• Lift in sales conversion rates
• Lift in profit per sale
© 2013 Lenskold Group, Inc. All rights reserved.
Comparison of Key Metrics
Inbound Marketing
Content Marketing
Impressions (= search or ads)
Click-Throughs
Click Through Rate (CTR)
Impressions (= click throughs)
Engaged
Engagement Rate
Engaged
Engagement Rate
Re-Engaged
Re-Engagement Rate
Other Metrics
Bounce Rate
Net Visits
Engage per Net Visit
Incremental
Sales
Revenue
Profits
© 2013 Lenskold Group, Inc. All rights reserved.
Not for copy or distribution without written
permission from Lenskold Group
6

7. 10/2/2013
Engagement Results
Inbound Campaigns
Impressions
Clicks
CTR
Engaged
Engage
Bounce
Bounce
Rate
Rate
Net
Visits
Engage
per Net
Visit
48.8%
Paid Search - Research paper
50124
998
2.0%
303
30.4%
377
37.8%
621
Paid Search - New buyer guide
71232
1264
1.8%
285
22.5%
724
57.3%
540
52.8%
Paid Search - 10 Tips
488043
10843
2.2%
1574
14.5%
3365
31.0%
7478
21.0%
SEO - CTO Interview
Videocast
52045
3267
6.3%
255
7.8%
1313
40.2%
1954
13.1%
SEO - Research Paper
90123
4009
4.4%
140
3.5%
1765
44.0%
2244
6.2%
SEO - New Buyer Guide
86634
2991
3.5%
421
14.1%
1112
37.2%
1879
22.4%
SEO - Path to Success
Infographic
102022
2577
2.5%
155
6.0%
1077
41.8%
1500
10.3%
Banner Ad - Research Paper
88234
2084
2.4%
198
9.5%
722
34.6%
1362
14.5%
Banner Ad - New Buyre Guide
91654
1324
1.4%
251
19.0%
589
44.5%
735
34.1%
Banner Ad - 10 Tips
109273
1987
1.8%
398
20.0%
998
50.2%
989
40.2%
© 2013 Lenskold Group, Inc. All rights reserved.
Results Tracking – Closed Sales & ROI
Campaign
Closed Sales
Sales
Marketing Cost
Conversion Rate
Cost per Sale
Paid Search - Research paper
24
7.9%
$4,491
$187.13
Paid Search - New buyer guide
14
4.9%
$5,688
$406.29
Paid Search - 10 Tips
58
3.7%
$48,794
$841.27
Average
Profit per
Sale
Total Profit
Additional
Marketing
Expenses
Total
Expense
ROI
Paid Search - Research paper
$2,463
$59,112
$15,150
$19,641
200.9%
Paid Search - New buyer guide
$2,244
$31,416
$14,250
$19,938
57.5%
Paid Search - 10 Tips
$2,154
$124,932
$78,700
$127,494
-2.0%
Campaign
© 2013 Lenskold Group, Inc. All rights reserved.
Not for copy or distribution without written
permission from Lenskold Group
7

8. 10/2/2013
First Source Inbound Channels
Distribution of First Source by Funnel Stage
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1st Source
Webinars
e-Books
Local Events
Videocast
1st Source to 2+ Engaged
Webinars
Newsletter Subs
1st Source to Lead
Videocast
74%
5%
18%
9%
2%
8%
27%
Exec Briefing
3%
23%
22%
Newsletter Subs
White Papers
5%
11%
62%
Exec Briefing
1st Source to Sales
22%
59%
e-Books
White Papers
2%
11%
8%
© 2013 Lenskold Group, Inc. All rights reserved.
Days to Close Analysis
Closed Sales Volume by # of Days 1st Source to Close
400
350
300
250
200
150
100
50
0
0 - 30 Days
Webinars
30 - 60 Days
e-Books
Videocast
60 - 75 Days
Newsletter Subs
75 - 90 Days
White Papers
90+ Days
Exec Briefing
Many more buyers are first engaging with Webinars late in their buying cycle
E-Books and Newsletter Subscriptions are engaging buyers earlier in the buying
cycle
© 2013 Lenskold Group, Inc. All rights reserved.
Not for copy or distribution without written
permission from Lenskold Group
8

9. 10/2/2013
Days to Close Analysis
Distribution of Closed Sales by # Days 1st Source to Close
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Webinars
e-Books
0 - 30 Days
Videocast
30 - 60 Days
Newsletter Subs
60 - 75 Days
White Papers
75 - 90 Days
Exec Briefing
90+ Days
Videocasts are engaged as a first source for buyers who convert quickly
Buyers engaged in Executive Briefings are generally closing in 30 to 60 days
© 2013 Lenskold Group, Inc. All rights reserved.
Metrics for Clicks, Content & Conversion
Metrics must be aligned to ROI and provide different levels of insight.
KPIs
Leading Indicators
Diagnostic Metrics
Sales Conversion Rate
Viral Shares
Days to Close trends
Profit Contribution by
Sources
Segment
Engagement
Click-Through Rate
Profit per Sale
Lead Score
Engagement
Rate
Cost per Sale
Re-Engagement
Rate
Bounce
rate
© 2013 Lenskold Group, Inc. All rights reserved.
Not for copy or distribution without written
permission from Lenskold Group
9

10. 10/2/2013
2. Measurements to Capture
Incremental Lift for ROI
© 2013 Lenskold Group, Inc. All rights reserved.
Incremental Lift for ROI
Results Tracking
Metrics
Strategic market testing
Modeling
Single-attribution
approach
Incremental lift of click,
content and conversions
Incremental lift of
conversion by tactic
Insight to monitor and
compare performance
Insight into strategies,
funnel outcomes and
value lift
Insight into interaction
effects
© 2013 Lenskold Group, Inc. All rights reserved.
Not for copy or distribution without written
permission from Lenskold Group
10

11. 10/2/2013
Strategic Market Testing
Approach
Unaware Prospects
Test vs. Control Group
Inbound targeting,
tactics & messaging
Measures incremental
contribution to mix
Assess key funnel
outcomes to close gaps
Measures
Content tactic
Funnel objective
Webinar
Content messaging
Timing
Contact progression
Multi-contact integration
Profitable Sales
© 2013 Lenskold Group, Inc. All rights reserved.
Strategic Market Testing
Unaware Prospects
Control
(BAU)
Test
(w/Webinar)
Incremental
32%
36%
+2%
Re-Engagement
Webinar 16%
24%
+8%
New Leads
1,200
1,800
600
Sales
100
130
30
Repeat Sales
20
25
5
$800
$1,000
$200
$80,000
$130,000
$50,000
New Contacts
Avg. $/Customer
Profit
Profitable Sales
BAU = Business As Usual marketing and sales
© 2013 Lenskold Group, Inc. All rights reserved.
Not for copy or distribution without written
permission from Lenskold Group
11

12. 10/2/2013
Marketing Channels & Potential Drivers
Potential Drivers
Paid Search
SEO
Videocasts
Online
Display
Offers
Blogs
Radio
Email
Marketing
E-Books
Webinars
Newsletters
Executive
Briefings
© 2013 Lenskold Group, Inc. All rights reserved.
Impact of Intermediary Variables on Sales
Potential Drivers
Web Visits
External Factors
Web Pageviews
Vector Auto-Regression
Identifies independent
variables that drive multiple
outcomes simultaneously
Sales
Bayesian Networks
Quantifies the causal
relationship between
outcomes
© 2013 Lenskold Group, Inc. All rights reserved.
Not for copy or distribution without written
permission from Lenskold Group
12

13. 10/2/2013
Results for Direct & Indirect Drivers
The impact of Web Pageviews on Sales is attributed back to the marketing
channels driving Pageviews.
Pageview Contribution by
Marketing Channel
Sales Contribution by
Marketing Channel
Paid Search
Online Banner
Radio
E-mail Marketing
Webinars
Blogs
Webinars
Newsletter Subs
Content
Pageviews
(Intermediary)
Base Sales
Videocasts
Content Pageviews
(Direct)
E-books
Executive
Briefings
Blogs
© 2013 Lenskold Group, Inc. All rights reserved.
3. Improve Inbound
Marketing ROI
© 2013 Lenskold Group, Inc. All rights reserved.
Not for copy or distribution without written
permission from Lenskold Group
13

14. 10/2/2013
Analytics to Drive Performance Improvements
Analysis
Opportunity
Techniques
Engagement
Path Analysis
Identify most effective series of
content engagement to determine
marketing triggers
Structural Equation Models
Variations of Path Analyses
Customer
Intelligence
Use key indicators from
engagement history and customer
data to guide marketing strategies
Pre-Post Comparison
Market Testing
Lead Scoring
Use lead scores that project sales
conversion and value to assess
marketing contribution and
estimate ROI
Data Mining
Predictive Modeling
© 2013 Lenskold Group, Inc. All rights reserved.
Engagement Path Analysis
Engagement Paths
F
B
A
D
C
C
A
C
F
Engaged
Measures
Effectiveness based on
combinations of tactics
Works for content only
or all touchpoints
Identifies strengths as
well as combinations
Content Tactics
Lead
A
$
$
Videocast
D
Case Study Webinar
Virtual Conference
F
$
Research Study
C
E
Closed + Growth
E-Newsletter
B
White Paper Download
© 2013 Lenskold Group, Inc. All rights reserved.
Not for copy or distribution without written
permission from Lenskold Group
14

15. 10/2/2013
Summary of Engagement Strengths
Content Marketing Tactics
A
B
C
D
E
F
Build Brand Positioning
Capture New Name (Initiator)
Educate with Content (Driver)
Engage with Key Messaging (Driver)
Nurture Future Buyers (Driver)
Convert to Sales-Ready Lead (MQL)
Pass to Sales (SAL > SQL)
Support Sales Conversion (Oppy)
Convert to Sale
Reinforce Decision (Loyalty)
Represents the relative strength in driving outcomes
© 2013 Lenskold Group, Inc. All rights reserved.
Lift from Customer Intelligence
Customer intelligence contributes to
sales and profits
Inbound Source
Funnel Stage Indicators
Content Engaged
Profile (from forms)
Predictive Model of Data
Next Best Action
Lift on sales conversion, customer value
and sales velocity
Inbound source is an indicator
• Message
• Placement or keyword
Content engaged and timing
guide targeting precision
Measurement
Compare performance with and
without intelligence
• Pre-Post trend analysis
• Market test
© 2013 Lenskold Group, Inc. All rights reserved.
Not for copy or distribution without written
permission from Lenskold Group
15

16. 10/2/2013
Lead Scores Provide Assessment
Reduce Expense
Webinar
# Employees
Region
White Paper
Download
Engage
Count
…more data
pts
Convert
Score
Profit Score
Lead #1
250+
NY MSA
Yes
7.7%
$5,851
Growth Strategy
White Paper Engage6 …more data
Convert
# Employees RegionMSA
Lead
1 - 10
SF
No
3.2% Profit Score
$4,296
Webinar #2
Download
Count 4
pts
Score
Lead #3
10 - 25 NY MSA
Midwest Yes No
2
3.8% $5,857
$2,883
250+
7.7%
Case Lead #1
Study
White Paper Engage6 …more data
Convert
… Employees10 Region MSA
#
Lead
1SF
No
3.2% Profit Score
$4,291
Webinar #2
Download
Count 4
pts
Score
Lead
NY MSA No Yes
5.8% $2,886
$4,114
Lead #3 #100
10 - 10 - 25 Midwest
25
2 3
3.8%
Lead #1
250+
NY MSA
Yes
6
7.7% 5.1%
$5,852 $4,282
Average
…
Lead #2
1 - 10
SF MSA
No
4
3.2%
$4,294
Lead #100
10 - 25
NY MSA
Yes
3
5.8%
$4,118
Lead #3
10 - 25
Midwest
No
2
3.8%
$2,882
Average
5.1%
$4,284
…
Lead #100
10 - 25
NY MSA
Yes
3
5.8%
$4,113
Average
5.1%
$4,285
Leads scored based on
profile & behavior details
Webinars
% Convert
Client Case Study
Growth Strategies
Reducing Expense
5.1%
4.2%
4.1%
Average
Profit
$4,285
$3,844
$3,132
# Leads
100
100
100
Projected
Profit
$21,962
$16,145
$12,841
Approach provides high
accuracy of projected values
for campaign comparisons
© 2013 Lenskold Group, Inc. All rights reserved.
Uncover Big Insights for Big Wins
Effectiveness Drivers
Inbound campaigns
Targeting
Messaging
Content quality
Funnel stage drivers
Integrated marketing
Knowledge-building
Strategic Measures
Integrated content strategies
Message-driven targeting
• Inbound to content
Intelligence for key indicators
Content to conversion strategies
Viral content contribution
• Social integration
Closing key gaps
© 2013 Lenskold Group, Inc. All rights reserved.
Not for copy or distribution without written
permission from Lenskold Group
16

17. 10/2/2013
Jim Lenskold
732-292-2600
jlenskold@lenskold.com
Additional Insights at www.lenskold.com
Marketing ROI Research Studies
White Papers
Articles
E-newsletter subscription
© 2013 Lenskold Group, Inc. All rights reserved.
Not for copy or distribution without written
permission from Lenskold Group
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