Talk the Talk and Walk the Walk: Building CMO Credibility with CEO-Worthy Metrics
1. Talk the Talk and Walk the Walk
Building CMO Credibility with CEO-Worthy
Metrics
2.
3.
4.
5. What Profits Can Be Generated With
10% More Budget?
12%
20%
44%
15%
9%
Improve profits by
more than 20%
Improve profits by 10%
to 20%
Improve profits up to
10%
No major change in
profits generated
Don't Know
#1 Answer:
Don’t Know
Source: 2010 Lenskold Group / emedia Lead Generation Marketing ROI Study
6. When Metrics Take Away Credibility
Vanity Metrics
Sound good and
impress people, but
don’t measure impact
on revenue or
profitability
Activity Metrics
Measure what you do
instead of what
results and impact
you have
7. When Metrics Take Away Credibility
Cost Metrics
Frame marketing in
terms of cost and
spending instead of
results and outcomes
8. Metrics That Give Marketing Power
“Speak the Language of Business”
Revenue Cycle
and Forecasts
Aggregate impact on
company revenue;
pipeline
performance;
predictive forecasts
9. Metrics That Give Marketing Power
“Speak the Language of Business”
Program
Performance
Incremental revenue
contribution and ROI
of individual
marketing programs
22. Key topic areas:
• Balance (Reach)
• Flow
• Conversion
• Velocity
Filter/Drill into data, e.g.
by Program Type, Business
Unit, Geography, etc.
Screenshot: Marketo Revenue Cycle Analytics
Trends over time
23. Use Metrics to Set & Justify Budgets
New
Names
New
MQLs
120,000
(900K DB
Total)
Score>100
60,000
15.3%
10.5%
Inventory
Of Active
Targets
23,000
2.4%
20,000
Inventory
of Active
MQLs
New
Opps*
New
SQLs
1.9%
75%
922
SDR capacity
driven
131,000
*Opps is bigger than SQLs because includes outbound and partner referrals
1,000
6 Month
Created
Opp Inv.
2,000
35%
win
Wins
Inbound /
Programs
New
Targets
28. Why Measuring Return is Hard
• Multiple touches. Seven touches
needed to convert a cold lead into a
sale
• Multiple influencers. Typical buying
committee has 5-21 people
31. Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
32. Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
33. Inbound creates the best leads by far:
high conversion, high velocity
Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
34. But we also use a Portfolio
of programs
Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
35. Sponsored Email builds the
database, but low conversion
Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
36. Webinar, tradeshow, PPC, and virtual
tradeshow are top paid TOFU
Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
37. Paid Social & Display Ad drive
brand and amplify inbound as well
Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
38. Average days to
Opportunity: 327 days
Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
40. Track All Touches Across People
Screenshot: Marketo Revenue Cycle Analytics
41. Track All Touches Across People
Screenshot: Marketo Revenue Cycle Analytics
42. Example: Multi-Touch recently closed.
A deal worth $100,000Attribution
Three people were involved in the deal:
• Person A attended Seminar A and Trade Show B
• Person B attended Trade Show B
• Person C was sent Direct Mail C
$100,000 Revenue
$25,000
Seminar A
$25,000
$25,000
$25,000
Tradeshow B
$50,000
$25,000
Direct Mail C
$25,000
45. % Above
Min*
89%
76%
75%
41%
(MT) Ratio = Pipeline / Investment
57%
Webinar = 54!, Tradeshow = 6.9, Sponsored Email = 3.8,
67%
>10 is Great and <5 is Fail
73%
Content Syndication = 9.6
Source: Marketo Revenue Cycle Analytics, Nov 2013
* Percentage
of all programs in channel that achieve MT Ratio > 5
10.4 66%
46. % Above
Min*
89%
% Programs with MT Ratio > 5
e.g. Content Syndication has good
average but 43% programs “fail”
76%
75%
41%
57%
73%
67%
Source: Marketo Revenue Cycle Analytics, Nov 2013
* Percentage
of all programs in channel that achieve MT Ratio > 5
10.4 66%
49. Planning for Testing
Establish Goals
and ROI Estimates
Up-Front
Design Programs
to Be Measurable
Focus on the
Decisions that
Improve ROI
Test and measure to find not just what
works, but what works better.
50. Tweetable Takeaways
1. Reporting is less important than DECISIONS
that improve ROI
2. Focus on financial metrics that matter to the
CFO (profit, cash, revenue)
3. Avoid cost and spend metrics – focus on
investment and return
4. Multi-touch attribution gives more insight
into the full funnel
5. A trusted marketing forecast is the single
most important step to make marketing a
revenue driver, not a cost center
@jonmiller