Marketing Rockstars: The economical impact of Marketing Automation
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The document summarizes key points from the Marketing Automation Summit on September 30th 2016. It discusses the importance of transparency, accountability, and measurement in marketing. It emphasizes measuring the right metrics to understand marketing's impact and ROI. It also stresses the need for a strategic and scaled approach to marketing automation, starting small and thinking about competencies like aligning marketing and sales.
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Marketing Rockstars: The economical impact of Marketing Automation
- 1. Marketing Automation Summit, September 30th 2016 The economical impact of having a predictable performance driven marketing machine Revenue Rock Stars renout@applicity.eu /Renout
- 2. • Transparency • The Business Case • Accountability & measurement Marketing Automation Summit, September 30th 2016 • Approach, People & skills
- 4. Measuring all touch points becomes more important than ever. Marketing departments need to be aware of their accountability
- 5. 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
- 6. It’s possible more than ever by embracing Marketing Automation
- 7. Important drivers for implementing Marketing Automation Enhanced targeting and personalization47% Improved lead management and nurturing43% Increased efficiency and productivity38%
- 8. 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
- 9. 9 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%
- 10. 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…
- 11. • Transparency • The Business Case • Accountability & measurement Marketing Automation Summit, September 30th 2016 • Approach, People & Skills
- 12. 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
- 13. 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
- 14. 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
- 15. • Transparency • The Business Case • Accountability & measurement Marketing Automation Summit, September 30th 2016 • Approach, People & skills
- 16. Big Start Scale Small Think FAST Approach your marketing automation projects in a lean way
- 17. 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
- 18. Chief Customer Officer Managing marketing automation, which of the following competencies are relevant and crucial? (N=225, multiple answers) Focus on the right competencies
- 19. 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
- 20. Marketing Automation Summit, September 30th 2016 The economical impact of having a predictable performance driven marketing machine Revenue Rock Stars renout@applicity.eu /Renout
Notas del editor
- So, what is the economical impact of having a predictable performance marketing machine? Well: economical: marketing technology is creating a shift in our industry driven by new customer behaviour. As we have been bombarding our customers with up to 2000 marketing messages a day, and as our customers have adopted a mobile and social lifestyle, we need to do marketing in an other way. Some vendors refer to this as inbound, other call it modern marketing, or engagement marketing. But it all comes down to this: we need to shift from paying for attention to earning attention in a smart way by using content to go into a dialogue and use data better to tailor our message to the context and behaviour of our customers. This means Marketing Automation as a mind shift means an economic shift in budgets. Typically I see a lot of companies shifting budget spend on campaigns - sometimes run by external agencies - to internal budgets in content generating inbound traffic. This makes marketing more predictable, as typically with marketing automation, you control yourself the many levers and can hard track and monitor the attribution of all you marketing programs, tactics, , channels, customer touchpoints and investments. The Performance aspect: when Marketo and Elqoua created this space back in 2006, those platforms were not called Marketing Automation, but they were referred to as Revenue Performance Management systems or RPM’s. Their main goal was to provide transparency about marketing investments and the return of it.
- Agenda:
- According to the YMS, the marketing confidence index has never been higher, and is the highest in 13 year. Forrester research shows that for 76% of B2B marketing professionals that their “ability to track marketing ROI gives them more budget and means”. Show the money and you’ll get the money. What is needed so marketing is seen as part of a machine that drives revenue and profits? How can marketers take more control over the revenue process and confidently take their place at the revenue table? The way that prospects research and buy solutions today has been forever transformed by the abundance of information available on websites and social networks, and this in turn fuels a significant change in the way marketing and sales teams must work together to drive revenue. Today: buyers resist engaging with sales until much later in the buying process. 70% of buying process is done before sales. This presents an incredible opportunity for marketing to reinvent itself as a core part of the company’s revenue engine. But with great power comes great responsibility. Why is this important? You can achieve lot of functionalities with best of breed solutions. But measuring all touchpionts without MA becomes rather impossible. Enter Marketing Metrics.
- I guess we can say we are coming to an age of Attribution thanks to MA. MA allows to measure many of the levers you have in marketing. And it's less about vanity metrics. Our credo is ’Traffic for vanity, Conversion for sanity’. Many times we notice marketers only do last cllick attribution measurements .This means marketing measure effectiveness up to SQL – so measuring the performance o f the marketing machine as a demand generating vehicle. But most of the time marketers do only first click (eonsultance study 48%) this means in a lot of the cases marketing is stuck in marketing as role top of funnel It’s Important to measure all touchpoints, conversion points and their performance. This is part of our philosophy of approaching marketing automation as a lean startup project. When starting Marketing Automation, it’s important to know what you measure today, what you will need to measure tomorrow. This is typically where we start, by assessing what you currently know and measure.
- If you have a lot of No’s, don’’ worry, Marketing Automation can be a solution. Next, we will talk about the benefits marketing automation typically bring and that will be instrumental for making up your business case…
- According the Yearly Markeitng Survey 2016, these are the three top value drivers and benefits after having implemented marketing automation. Enhanced targeting: What do you need? This is about the Data, content and customer centricity programs coming together It’s about using the technology to become more relevant according to the context of your customer. It’s about for example dynamic segmentation based on customer’s behaviour. Improved lead nurturing: some numbers: only 25% of leads are legitimate and should advance to sales, 50% leads are qualified, but not yet ready to buy, 79% of marketing leads never convert into sales, with lack of lead nurturing as the common cause, 61% of B2B marketers send all leads directly to sales, however only 27% of those leads are qualified. Sales efficiency gains = important in business case! Incrased efficiency and productiity:this is obviously one of the key drivers, but even as it is highly important – this paradigm also means we still consider marketing as a cost center, and while this is a minimum criterium to be best of class in this area, being even the most efficient or productive marketing machine will not be enough to get you your seat at the revenue table.
- These value drivers, translated into the business case can create many opportunities. We can bucket these wins into typical tactical ROI (the quick wins, typically these are shifts in budget), Strategic ROI (the most beneficial, longer term but bigger game changers) and operational ROI (doing things differently) Tactical ROI: typical quick wins. Often we see marketing automation being deployed to fix tactical challenges such as email delivery problems, or improve event attendance. N But while this does indirectly create impact such as improve your ROI on events, or ROI on content and help optimise – it does not translate as not direct impact on revenue. It’s still marketing as a cost centre. Operational ROI: Marketing Automation easily leads to 15% savings on creative production and 5% reduction in marketing waste, event triggered marketing can potentially save 80% of your direct mail budget. Also, if you know on average a marketing department uses 11 different applications, Marketing Automation can be a catalyst to consolidate and simplify our marketing technology stack.
- 9
- Translated to the alignment with marketing and sales you’ll most likely find great quick wins, such as flagging your commercial team after a few months when a customer where they have lost an opportunity is back on the wesbite. Analysing your revenue cycle model is highly important when considering marketing automation.
- We promised you to provide a framework for measurement, because the great thing about marketing automation is that you can start measuring literally 100’s of marketing metrics. Majority today is doing Performance metrics = how did we do? Or the look in the past, the rearview mirror. More mature metrics are the Diagnostic metrics = how are we doing? And advanced metrics are using Leading indicators = how will we be doing in the future? This is about being Predictive. Now, what not to use? The worst kinds of metrics to use are “cost metrics” because they frame marketing as a cost center. If you only talk about cost and budgets, then no doubt others will associate your activities with cost, too. In order to achieve accountabilty we need to talk about revenue, margin, profit, cash flow, ROI, shareholder value metrics – in other words, your company’s ability to generate more profits and faster growth than your competitors
- Mapped to the funnel, and with a Revenue Performance mindset in place, I noticed many marketers actually realise that most important marketing metrics are about sales effectivenss. When you no longer focus on marketing in isolation, but on how to impact revenue attribution you’ll get a better grip on your true ROI. All these metrics are to be tracked in different methods like by week, month or quarter; or trends over time, versus goals, versus benchmarks and ultimately by channel, product, region etc. All this will lead to increased levels of accountability.
- As said, measurement relates to accountability.
- Where to start? Whenever possible, we suggest an approach of your marketing automation projects in a lean way. Think big = go where the puck is going. Start with measuring, measure and validate your assumptions on the business case, and then iterate across your organisation and scale fast. Start small: remember the slide on the ROI and benefits? Think quick wins. Think where you can significantly short term improve a conversion point, where you can improve a current flow like a sampling process. Before we can think big, we need to know where we are today in terms of the marketing maturity roadmap .
- Where ever you are in the stage of maturity. The ultimate goal is to arrive at a state of predictable, data and behavior driven integrated and omnichannel performance marketing, which is the highest level of maturity providing the highest level of strategic benefit from Marketing towards the revenue. This change management process requires one big thing. Humans.
- As said before: Marketing automation will help you in increasing accountability in your organization. It will improve transparency. But: it’s a change management process. The catalyst behind the economics is all human: it’s about first thinking about your customer and how to become convenient, and it’s about getting the right skils and competencies in your organization. This slide shows you what marketers - according the Yearly marketing Survey – think is needed in terms of skill set in a marketing team to successfully engage on this roadmap.
- So what have we seen: we talked about transparay being a main driver for any CMO to consider marketing automation, we talked about the main levers behind the business case being operational, strategic and tactical benefits translating in a new way of doing marketing. We talked about the importance to align with other stakeholders espeically sales. We have shown you a framework on how you can measure your success and we ended up with a suggested lean startup approach.
- So, what is the economical impact of having a predictable performance marketing machine? Well: economical: marketing technology is creating a shift in our industry driven by new customer behaviour. As we have been bombarding our customers with up to 2000 marketing messages a day, and as our customers have adopted a mobile and social lifestyle, we need to do marketing in an other way. Some vendors refer to this as inbound, other call it modern marketing, or engagement marketing. But it all comes down to this: we need to shift from paying for attention to earning attention in a smart way by using content to go into a dialogue and use data better to tailor our message to the context and behaviour of our customers. This means Marketing Automation as a mind shift means an economic shift in budgets. Typically I see a lot of companies shifting budget spend on campaigns - sometimes run by external agencies - to internal budgets in content generating inbound traffic. This makes marketing more predictable, as typically with marketing automation, you control yourself the many levers and can hard track and monitor the attribution of all you marketing programs, tactics, , channels, customer touchpoints and investments. The Performance aspect: when Marketo and Elqoua created this space back in 2006, those platforms were not called Marketing Automation, but they were referred to as Revenue Performance Management systems or RPM’s. Their main goal was to provide transparency about marketing investments and the return of it.