The Economics of Marketing Automation - the business case & financial and performance drivers

1. Marketing Automation Summit, September 30th 2016
The economical impact of having a
predictable performance driven
marketing machine
Revenue Rock Stars
renout.van.hove@thom.eu
/renoutvanhove
/THOM_News

2. Marketing Automation Summit, September 30th 2016
The economical impact of having a
predictable performance driven
marketing machine
Revenue Rock Stars
renout.van.hove@thom.eu
/renoutvanhove
/THOM_News

3. • Transparency
• The Business Case
• Accountability & measurement
Marketing Automation Summit, September 30th 2016
• Approach, People & skills

4. Transparency
becomes an important
requirement.
Optimistic Marketers

5. Measuring all touch
points becomes more
important than ever.
Marketing departments need to be aware of their accountability

6. Campaign ROI is attributed to each respective channel in our mix Y/N
We report confidently about our single customer view, also multi-
device
Y/N
Customer journey maps justify our campaign budget allocation Y/N
We attribute digital campaign budgets to offline revenue Y/N
Data drives almost every decision that our marketing team makes Y/N
How do you measure up?
DON’T HAVE A CLUE? CONTACT US: renout.van.hove@thom.eu

7. 7
It’s possible more than ever by
embracing Marketing Automation

8. Important drivers for implementing Marketing Automation
Enhanced targeting and personalization47%
Improved lead management and nurturing43%
Increased efficiency and productivity38%

9. Resulting in both quick wins and strategic benefits
CHANGE THE GAME
STRATEGIC ROI
Behavioral targeting,
dynamic segmentation
Rethinking customer journeys
Source: Marketo, Nucelus Research, Forrester
QUICK WINS
TACTICAL ROI
Email performance
improvement
Event attendance
improvement
DO THINGS DIFFERENTLY
OPERATIONAL ROI
Alignment with sales
Marketing Application
stack consolidation
& simplification
Automate manual time-
consuming tasks
Improved content usage
Business process improvement
Improve PPC performance

10. 10
1500
58
6
1,2
850
1000
40
1
WITHOUT AUTOMATION
1150
NO / WEAK PROCESS STRONG PROCESSES
2000
45
5
5
78
Source: Sirius decisions
85%
5%
18%
Leads
Inquiries
2% response rate
Closed
won
business
Opportunity
Database:
50k contacts
At an average deal size of 50k€: 50k€ 60k€ 250k€
MQL
Inquiries
3 to 4 % response rate
SQL
SAL
Database:
50k contacts
Strategic ROI: doing things differently
5
11%
WITH AUTOMATION
75%
5%
20%
11%
3,9%
58%
23%
49%

11. Anonymous MCL (known) MQL (engaged) SAL SQL Customer
Will never buy
Recycle
Did not buy*
ConsiderCatch Convert Close Continue
9months
Advocate
Contract renewal
Enabling companies to convert more leads by nurturing
TODAY
TOMORROW
1000 LEADS
GENERATED
ONLY 30% QUALIFIED BY SALES
1 DEAL
CLOSED
Improved qualification through
nurturing
2000 LEADS
GENERATED
6 DEALS
CLOSED
Per 1,000
leads
X3
* Will buy on average in 80% of the cases within 9 months. Elsewhere…

12. • Transparency
• The Business Case
• Accountability & measurement
Marketing Automation Summit, September 30th 2016
• Approach, People & Skills

13. PERFORMANCE METRICS DIAGNOSTIC METRICS LEADING INDICATORS
REVENUE METRICS
Lead generation
versus targets
Lead velocity
Conversion rate versus
benchmark
Close rate on marketing-
sourced leads
Prospect database size
Marketing contribution
forecast
MARKETING
PROGRAM
PERFORMANCE
Investment
MQLs & SALs
Program ROI
Response rates
Lift over control group
Expected contribution
forecast
PROFIT per
CUSTOMER
Average selling price, CLV
Investment to acquire
(CAC)
Cost to serve
Retention rates
Products Per Customer
NPS
How can it benefit your ?It’s all about measuring the right things
Maturity & Predictability

14. It’s all about measuring the right things
FLOW CONVERSION IMPACT INVESTMENT SALES AND RPM OTHER
# of New
Names
% Name to
Prospect
% of Pipeline
Contributed by
Marketing
Investment per
New Names
Average Selling
Price
Balance of Active
Prospects in key
inventory stages
# Prospects
% Prospect to
Marketing-
Qualified Lead
Value of Pipeline
Contributed by
Marketing
Investment per
Prospect
Sales Cycle
Times
Balance of Open
Opportunities
# Marketing
Qualified
Leads
% Marketing-
Qualified Lead to
Sales-Accepted
Lead
% of Wins
Contributed by
Marketing
Investment per
Marketing
Qualified Lead
% Reps Making
Quota
Velocity / Cycle Time
for New Name to
Lead
# Sales
Accepted
Leads
% Sales-
Accepted Lead
to Opportunity
Value of Revenue
Contributed by
Marketing
Investment per
Sales Accepted
Lead
Time To Ramp a
New Sales Rep
Velocity / Cycle Time
for Opportunity to
Win
#
Opportunities
Investment per
Opportunity
RPM Efficiency =
(Total Revenue)
/ (Total
Marketing +
Sales
Investment)
Key “Awareness”
Metrics: web traffic,
direct/branded
traffic, social
followers, etc.
# Wins
Investment per
Win Total Period Revenue vs Quota
# Lost Discounts
# Churn Pipeline
Renewals / Retention

15. Campaign ROI is attributed to each respective channel in our mix Y/N
Our marketing objectives always link with programs with business
objectives
Y/N
We prioritize projects based on their value and business impact Y/N
I feel confident to discuss the ROI of our marketing campaigns with
C-level
Y/N
Do you consider yourself accountable?
I know what a 10% increase in my marketing budget would
generate on average
Y/N
DON’T HAVE A CLUE? CONTACT US: renout.van.hove@thom.eu

16. • Transparency
• The Business Case
• Accountability & measurement
Marketing Automation Summit, September 30th 2016
• Approach, People & skills

17. Big
Start Scale
Small
Think
FAST
Approach your marketing automation projects in a lean way

18. Lifecycle Nurturing
Predictive Offers
Behavioral Triggers
Marketing Management
Marketing Revenue Attribution
Advanced Revenue Analytics
Omni-Channel Campaigns
Full API Integrations
Integrated Marketing Calendar
Behavioral
Segmentation
Cross-channel
Campaigns
Triggered Nurturing
Dynamic Content
Revenue Analytics
Real Time
Personalization
Actionable Sales Insight
Inbound Marketing
Email Nurturing
Lead Scoring
Social Share & Sign-on
Campaign Reporting
Basic Sales Intelligence
Planning
StrategicValue
Marketing Maturity
Email Marketing
Landing Page Creation
Basic Segmentation
Basic Social Presence
Conventional
Marketing
Demand
Generation
Integrated
Pipeline
Revenue
performance
management
And follow a marketing automation roadmap

19. Chief Customer Officer
Managing marketing automation, which of the following competencies are relevant and crucial?
(N=225, multiple answers)
Focus on the right competencies

20. Marketing Automation Summit, September 30th 2016
The optimistic marketer…CMOs are increasingly held accountable for their
actions and need to be more transparent
1
Marketing technology is essential in bringing the different touch points
together and aligning with sales is important when building a case
2
Measure the right metrics to see the true impact of marketing automation
3
Think big, start small and scale fast!
4

21. Marketing Automation Summit, September 30th 2016
WANT TO KNOW MORE? CONTACT US!
/renoutvanhove
renout.van.hove@thom.eu
Download the slides:
www.thehouseofmarketing.be/MAsummit