Más contenido relacionado La actualidad más candente (20) Similar a Beyond Revenue Performance: The Real KPIs of B2B Marketing (20) Beyond Revenue Performance: The Real KPIs of B2B Marketing1. © 2018 FORRESTER. REPRODUCTION PROHIBITED.
Beyond Revenue Performance:
The Real KPIs of B2B Marketing
Lori Wizdo
VP & Principal Analyst, Forrester Research
@loriwizdo
2. 2© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Housekeeping
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3. 3© 2017 Forrester Research, Inc. Reproduction Prohibited
Because its purpose is to create a
customer, the business enterprise has
two - and only these two - basic
functions: marketing and innovation.
Marketing and innovation produce
results; all the rest are "costs.”
Peter Drucker, 1974
5. 5© 2017 Forrester Research, Inc. Reproduction Prohibited
Lauren Flaherty, the CMO and executive VP of CA Technologies.
"For CMOs to have a seat at the executive table, we have to
demonstrate the revenue impact of marketing"
"We need to programmatically drive conversions, not just
marketing activity.
From here on out, CMOs will have to manage the duality of
delivering immediate key performance indicators as well as
stewarding the long-term brand and vision.
The art and science of marketing has finally come together,
and it's a game changer for marketing."
6. 6© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Source: Forrester Data Global Business Technographics Marketing Survey, 2017
97%
Of B2B marketing decision makers
say growing revenue (a KPI) is a top
priority.
7. 7© 2018 FORRESTER. REPRODUCTION PROHIBITED.
(1) Source: Forrester Data Global Business Technographics Marketing Survey, 2017
(2) Source: Forrester's Q1 2018 International B2B Marketing Benchmark Panel Online Survey
78%
Of B2B marketing execs are accountable
for the revenue impact of marketing
programs1.
74%
59%
High Performers2
Low Performers2
Who actually measures?
8. 8© 2018 FORRESTER. REPRODUCTION PROHIBITED.
(1) Source: Forrester Data Global Business Technographics Marketing Survey, 2017
(2) Source: Forrester's Q1 2018 International B2B Marketing Benchmark Panel Online Survey
78%
Of B2B marketing execs are accountable
for the revenue impact of marketing
programs1.
74%
59%
High Performers2
Low Performers2
Who actually measures?
9. 9© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Why do we measure?
To prove or validate.
• A decision
• The need for a decision
• Your value
10. 10© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Performance Management
Have defined the specific goals
and metrics to be achieved
through our L2R program.
43%
Set goals based upon historical
results.30%
Set goals based upon assumed
performance enhancements.44%
11. 11© 2018 FORRESTER. REPRODUCTION PROHIBITED.
What do B2B marketers measure?
Source: Forrester's Q1 2018 International B2B Marketing Benchmark Panel Online Survey
12. 12© 2018 FORRESTER. REPRODUCTION PROHIBITED.
What do B2B marketers measure?
Volume: 80%
Value: 66%
Velocity: 35%
Effectiveness: 60%
Efficiency: 69%
Source: Forrester's Q1 2018 International B2B Marketing Benchmark Panel Online Survey
13. 13© 2018 FORRESTER. REPRODUCTION PROHIBITED.
What do B2B marketers measure?
Volume: 80%
Value: 66%
Velocity: 35%
Effectiveness: 60%
Efficiency: 69%
52%
28%
MQL - SQL
INQ - SQL
Source: Forrester's Q1 2018 International B2B Marketing Benchmark Panel Online Survey
14. 14© 2018 FORRESTER. REPRODUCTION PROHIBITED.
What do B2B marketers measure?
Volume: 80%
Value: 66%
Velocity: 35%
Effectiveness: 60%
Efficiency: 69%
52%
28%
MQL - SQL
INQ - SQL
52%
48%
MQL
SQL
Source: Forrester's Q1 2018 International B2B Marketing Benchmark Panel Online Survey
15. 15© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Bonus material
Volume • How many people are in each stage, and how many are we adding each
period?
• Are my stage balances trending up or down?
• How many opportunities do I have?
• Number of contacts in prospect database
• Number of inquiries, prospects, marketing qualified leads (MQLs), and
opportunities
• New qualified leads added
• New sales-ready leads generated
• New opportunities created
Velocity • What is the average length of the sales cycle?
• What is the average time spent in each stage?
• Where are sales cycles stalling?
• Which sources move through the pipeline fastest?
• Sales cycle time
• Time-to-marketing-qualified-lead
• Time-to-sales-qualified-lead
• Time-to-opportunity; time-to-close
• Time-to-onboard; steady-state use
• Time-to-upgrade/upsell
Value • What's the value of my pipeline?
• What's the value by stage?
• How is it increasing or decreasing over time?
• Total dollar value of MQLs in pipeline
• Value of opportunities per quarter/year
• Gross margin/discount levels
• Customer lifetime value
Effectiveness • What is the conversion rate from each stage to the next?
• Where are the leaks in the funnel, and how do we plug them?
• What types and sources of leads convert the best?
• Are my conversion rates trending up or down?
• Inquiry-to-MQL conversion rate
• Fixed costs/MQL; total costs/MQL
• Qualified-lead-to-sales-ready-lead rate
• MQL-lead-to-sales-opportunity rate
• Opportunity-to-win rate
Efficiency • What is the conversion rate from each stage to the next?
• Where are inefficiencies by stage of life cycle?
• What types and sources of leads convert the best?
• Are my conversion rates trending up or down?
• Fixed/variable/total costs per MQL
• Fixed/variable/total costs per sales-qualified lead
• Fixed/variable/total costs per pipeline opportunity
• Fixed/variable/total costs per closed deal
• Time-to-onboard/implementation
• Time-to-first-cross-sell/upsell
16. 16© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Bonus material
Volume • How many people are in each stage, and how many are we adding each
period?
• Are my stage balances trending up or down?
• How many opportunities do I have?
• Number of contacts in prospect database
• Number of inquiries, prospects, marketing qualified leads (MQLs), and
opportunities
• New qualified leads added
• New sales-ready leads generated
• New opportunities created
Velocity • What is the average length of the sales cycle?
• What is the average time spent in each stage?
• Where are sales cycles stalling?
• Which sources move through the pipeline fastest?
• Sales cycle time
• Time-to-marketing-qualified-lead
• Time-to-sales-qualified-lead
• Time-to-opportunity; time-to-close
• Time-to-onboard; steady-state use
• Time-to-upgrade/upsell
Value • What's the value of my pipeline?
• What's the value by stage?
• How is it increasing or decreasing over time?
• Total dollar value of MQLs in pipeline
• Value of opportunities per quarter/year
• Gross margin/discount levels
• Customer lifetime value
Effectiveness • What is the conversion rate from each stage to the next?
• Where are the leaks in the funnel, and how do we plug them?
• What types and sources of leads convert the best?
• Are my conversion rates trending up or down?
• Inquiry-to-MQL conversion rate
• Fixed costs/MQL; total costs/MQL
• Qualified-lead-to-sales-ready-lead rate
• MQL-lead-to-sales-opportunity rate
• Opportunity-to-win rate
Efficiency • What is the conversion rate from each stage to the next?
• Where are inefficiencies by stage of life cycle?
• What types and sources of leads convert the best?
• Are my conversion rates trending up or down?
• Fixed/variable/total costs per MQL
• Fixed/variable/total costs per sales-qualified lead
• Fixed/variable/total costs per pipeline opportunity
• Fixed/variable/total costs per closed deal
• Time-to-onboard/implementation
• Time-to-first-cross-sell/upsell
Measure
17. 17© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Bonus material
Volume • How many people are in each stage, and how many are we adding each
period?
• Are my stage balances trending up or down?
• How many opportunities do I have?
• Number of contacts in prospect database
• Number of inquiries, prospects, marketing qualified leads (MQLs), and
opportunities
• New qualified leads added
• New sales-ready leads generated
• New opportunities created
Velocity • What is the average length of the sales cycle?
• What is the average time spent in each stage?
• Where are sales cycles stalling?
• Which sources move through the pipeline fastest?
• Sales cycle time
• Time-to-marketing-qualified-lead
• Time-to-sales-qualified-lead
• Time-to-opportunity; time-to-close
• Time-to-onboard; steady-state use
• Time-to-upgrade/upsell
Value • What's the value of my pipeline?
• What's the value by stage?
• How is it increasing or decreasing over time?
• Total dollar value of MQLs in pipeline
• Value of opportunities per quarter/year
• Gross margin/discount levels
• Customer lifetime value
Effectiveness • What is the conversion rate from each stage to the next?
• Where are the leaks in the funnel, and how do we plug them?
• What types and sources of leads convert the best?
• Are my conversion rates trending up or down?
• Inquiry-to-MQL conversion rate
• Fixed costs/MQL; total costs/MQL
• Qualified-lead-to-sales-ready-lead rate
• MQL-lead-to-sales-opportunity rate
• Opportunity-to-win rate
Efficiency • What is the conversion rate from each stage to the next?
• Where are inefficiencies by stage of life cycle?
• What types and sources of leads convert the best?
• Are my conversion rates trending up or down?
• Fixed/variable/total costs per MQL
• Fixed/variable/total costs per sales-qualified lead
• Fixed/variable/total costs per pipeline opportunity
• Fixed/variable/total costs per closed deal
• Time-to-onboard/implementation
• Time-to-first-cross-sell/upsell
Measure Insights to gain
18. 18© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Bonus material
Volume • How many people are in each stage, and how many are we adding each
period?
• Are my stage balances trending up or down?
• How many opportunities do I have?
• Number of contacts in prospect database
• Number of inquiries, prospects, marketing qualified leads (MQLs), and
opportunities
• New qualified leads added
• New sales-ready leads generated
• New opportunities created
Velocity • What is the average length of the sales cycle?
• What is the average time spent in each stage?
• Where are sales cycles stalling?
• Which sources move through the pipeline fastest?
• Sales cycle time
• Time-to-marketing-qualified-lead
• Time-to-sales-qualified-lead
• Time-to-opportunity; time-to-close
• Time-to-onboard; steady-state use
• Time-to-upgrade/upsell
Value • What's the value of my pipeline?
• What's the value by stage?
• How is it increasing or decreasing over time?
• Total dollar value of MQLs in pipeline
• Value of opportunities per quarter/year
• Gross margin/discount levels
• Customer lifetime value
Effectiveness • What is the conversion rate from each stage to the next?
• Where are the leaks in the funnel, and how do we plug them?
• What types and sources of leads convert the best?
• Are my conversion rates trending up or down?
• Inquiry-to-MQL conversion rate
• Fixed costs/MQL; total costs/MQL
• Qualified-lead-to-sales-ready-lead rate
• MQL-lead-to-sales-opportunity rate
• Opportunity-to-win rate
Efficiency • What is the conversion rate from each stage to the next?
• Where are inefficiencies by stage of life cycle?
• What types and sources of leads convert the best?
• Are my conversion rates trending up or down?
• Fixed/variable/total costs per MQL
• Fixed/variable/total costs per sales-qualified lead
• Fixed/variable/total costs per pipeline opportunity
• Fixed/variable/total costs per closed deal
• Time-to-onboard/implementation
• Time-to-first-cross-sell/upsell
Measure Insights to gain Metrics that matter
19. 19© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Slavish focus on traditional funnel metrics is not good:
20. 20© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Slavish focus on traditional funnel metrics is not good:
• Positions marketing as the supplier of
leads to the load-bearing sales force.
21. 21© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Slavish focus on traditional funnel metrics is not good:
• Positions marketing as the supplier of
leads to the load-bearing sales force.
• Doesn’t fully expose marketing’s
business impact.
22. 22© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Slavish focus on traditional funnel metrics is not good:
• Positions marketing as the supplier of
leads to the load-bearing sales force.
• Doesn’t fully expose marketing’s
business impact.
• Undervalues ‘marketing assisted
revenue’.
23. 23© 2018 FORRESTER. REPRODUCTION PROHIBITED.
› At multiple altitudes,
› With stakeholder context,
› And explicit linkage
Align goals to a broad set of business outcomes.
24. 24© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Goals manifest differently at different altitudes.
25. 25© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Enterprise
Goals with P&L, balance
sheet, or strategic
impact
Grow revenue
Increase market share
Improve margins
Reduce SG&A
Goals manifest differently at different altitudes.
26. 26© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Enterprise
Goals with P&L, balance
sheet, or strategic
impact
Grow revenue
Increase market share
Improve margins
Reduce SG&A
Departmental
Goals for departmental
objectives and
governance
Improve marketing's
contribution to pipeline
Improve customers'
satisfaction
Improve return on
marketing investment
Goals manifest differently at different altitudes.
27. 27© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Enterprise
Goals with P&L, balance
sheet, or strategic
impact
Grow revenue
Increase market share
Improve margins
Reduce SG&A
Departmental
Goals for departmental
objectives and
governance
Improve marketing's
contribution to pipeline
Improve customers'
satisfaction
Improve return on
marketing investment
Operational
Goals for operational
improvement
Improve campaign
results
Reduce cost/lead
Integrate campaigns
across channels
Goals manifest differently at different altitudes.
28. 28© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Goals Manifest Differently For Different Stakeholders
Stakeholder Lens
29. 29© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Goals Manifest Differently For Different Stakeholders
Stakeholder Lens
Business executive
(CEO or LOB executive)
Predictable, profitable revenue growth
30. 30© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Goals Manifest Differently For Different Stakeholders
Stakeholder Lens
Business executive
(CEO or LOB executive)
Predictable, profitable revenue growth
Executive VP/VP
sales
Marketing's contribution to the pipeline
31. 31© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Goals Manifest Differently For Different Stakeholders
Stakeholder Lens
Business executive
(CEO or LOB executive)
Predictable, profitable revenue growth
Executive VP/VP
sales
Marketing's contribution to the pipeline
CFO Return on marketing investment
32. 32© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Goals Manifest Differently For Different Stakeholders
Stakeholder Lens
Business executive
(CEO or LOB executive)
Predictable, profitable revenue growth
Executive VP/VP
sales
Marketing's contribution to the pipeline
CFO Return on marketing investment
Sales directors Volume of sales-qualified leads
33. 33© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Goals Manifest Differently For Different Stakeholders
Stakeholder Lens
Business executive
(CEO or LOB executive)
Predictable, profitable revenue growth
Executive VP/VP
sales
Marketing's contribution to the pipeline
CFO Return on marketing investment
Sales directors Volume of sales-qualified leads
Sales reps Each instance of a mature and well-
qualified leads with lots of provenance
34. 34© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Demonstrate
how marketing
actions affect
revenue
outcomes.
35. 35© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Demonstrate
how marketing
actions affect
revenue
outcomes.
36. 36© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Demonstrate
how marketing
actions affect
revenue
outcomes.
37. 37© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Demonstrate
how marketing
actions affect
revenue
outcomes.
38. 38© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Demonstrate
how marketing
actions affect
revenue
outcomes.
39. 39© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Demonstrate
how marketing
actions affect
revenue
outcomes.
40. 40© 2018 FORRESTER. REPRODUCTION PROHIBITED.
THINK OUTSIDE THE FUNNEL.
1. Shift the revenue mix from low-margin to higher-margin products.
Source: Allison Snow Blog, “Twenty Goals That Are Just Plain Better Than “Growing Revenue”
41. 41© 2018 FORRESTER. REPRODUCTION PROHIBITED.
THINK OUTSIDE THE FUNNEL.
1. Shift the revenue mix from low-margin to higher-margin products.
2. Shift the mix from many small deals to fewer larger deals (or the reverse).
Source: Allison Snow Blog, “Twenty Goals That Are Just Plain Better Than “Growing Revenue”
42. 42© 2018 FORRESTER. REPRODUCTION PROHIBITED.
THINK OUTSIDE THE FUNNEL.
1. Shift the revenue mix from low-margin to higher-margin products.
2. Shift the mix from many small deals to fewer larger deals (or the reverse).
3. Penetrate new industries, geographies, or segments with an existing product or service.
Source: Allison Snow Blog, “Twenty Goals That Are Just Plain Better Than “Growing Revenue”
43. 43© 2018 FORRESTER. REPRODUCTION PROHIBITED.
THINK OUTSIDE THE FUNNEL.
1. Shift the revenue mix from low-margin to higher-margin products.
2. Shift the mix from many small deals to fewer larger deals (or the reverse).
3. Penetrate new industries, geographies, or segments with an existing product or service.
4. Increase net new customer acquisition from a specific industry, geography, or segment.
Source: Allison Snow Blog, “Twenty Goals That Are Just Plain Better Than “Growing Revenue”
44. 44© 2018 FORRESTER. REPRODUCTION PROHIBITED.
THINK OUTSIDE THE FUNNEL.
1. Shift the revenue mix from low-margin to higher-margin products.
2. Shift the mix from many small deals to fewer larger deals (or the reverse).
3. Penetrate new industries, geographies, or segments with an existing product or service.
4. Increase net new customer acquisition from a specific industry, geography, or segment.
5. Increase average customer lifetime value.
Source: Allison Snow Blog, “Twenty Goals That Are Just Plain Better Than “Growing Revenue”
45. 45© 2018 FORRESTER. REPRODUCTION PROHIBITED.
THINK OUTSIDE THE FUNNEL.
1. Shift the revenue mix from low-margin to higher-margin products.
2. Shift the mix from many small deals to fewer larger deals (or the reverse).
3. Penetrate new industries, geographies, or segments with an existing product or service.
4. Increase net new customer acquisition from a specific industry, geography, or segment.
5. Increase average customer lifetime value.
6. Support a struggling geography.
Source: Allison Snow Blog, “Twenty Goals That Are Just Plain Better Than “Growing Revenue”
46. 46© 2018 FORRESTER. REPRODUCTION PROHIBITED.
THINK OUTSIDE THE FUNNEL.
1. Shift the revenue mix from low-margin to higher-margin products.
2. Shift the mix from many small deals to fewer larger deals (or the reverse).
3. Penetrate new industries, geographies, or segments with an existing product or service.
4. Increase net new customer acquisition from a specific industry, geography, or segment.
5. Increase average customer lifetime value.
6. Support a struggling geography.
7. Increase products per customer.
Source: Allison Snow Blog, “Twenty Goals That Are Just Plain Better Than “Growing Revenue”
47. 47© 2018 FORRESTER. REPRODUCTION PROHIBITED.
THINK OUTSIDE THE FUNNEL.
1. Shift the revenue mix from low-margin to higher-margin products.
2. Shift the mix from many small deals to fewer larger deals (or the reverse).
3. Penetrate new industries, geographies, or segments with an existing product or service.
4. Increase net new customer acquisition from a specific industry, geography, or segment.
5. Increase average customer lifetime value.
6. Support a struggling geography.
7. Increase products per customer.
8. Decrease attrition rate.
Source: Allison Snow Blog, “Twenty Goals That Are Just Plain Better Than “Growing Revenue”
48. 48© 2018 FORRESTER. REPRODUCTION PROHIBITED.
THINK OUTSIDE THE FUNNEL.
1. Shift the revenue mix from low-margin to higher-margin products.
2. Shift the mix from many small deals to fewer larger deals (or the reverse).
3. Penetrate new industries, geographies, or segments with an existing product or service.
4. Increase net new customer acquisition from a specific industry, geography, or segment.
5. Increase average customer lifetime value.
6. Support a struggling geography.
7. Increase products per customer.
8. Decrease attrition rate.
9. Increase average deal size by xx%.
Source: Allison Snow Blog, “Twenty Goals That Are Just Plain Better Than “Growing Revenue”
49. 49© 2018 FORRESTER. REPRODUCTION PROHIBITED.
THINK OUTSIDE THE FUNNEL.
1. Shift the revenue mix from low-margin to higher-margin products.
2. Shift the mix from many small deals to fewer larger deals (or the reverse).
3. Penetrate new industries, geographies, or segments with an existing product or service.
4. Increase net new customer acquisition from a specific industry, geography, or segment.
5. Increase average customer lifetime value.
6. Support a struggling geography.
7. Increase products per customer.
8. Decrease attrition rate.
9. Increase average deal size by xx%.
10. Engage new contacts at target accounts.
Source: Allison Snow Blog, “Twenty Goals That Are Just Plain Better Than “Growing Revenue”
50. 50© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Measuring to prove …
› Don’t let them put you in a funnel.
Key Takeaways
51. 51© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Measuring to prove …
› Don’t let them put you in a funnel.
› Align marketing to a diverse set
of corporate goals.
Key Takeaways
52. 52© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Measuring to prove …
› Don’t let them put you in a funnel.
› Align marketing to a diverse set
of corporate goals.
› Set SMART Goals
specific, measurable, attainable, relevant, and time-bound
Key Takeaways
53. 53© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Measuring to prove …
› Don’t let them put you in a funnel.
› Align marketing to a diverse set
of corporate goals.
› Set SMART Goals
specific, measurable, attainable, relevant, and time-bound
› Really understand and articulate
how marketing drives revenue.
Key Takeaways
54. 54© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Measuring to prove …
› Don’t let them put you in a funnel.
› Align marketing to a diverse set
of corporate goals.
› Set SMART Goals
specific, measurable, attainable, relevant, and time-bound
› Really understand and articulate
how marketing drives revenue.
› Contextualize goals for different
stakeholders.
Key Takeaways
55. 55© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Why do we measure?
To prove or validate.
A decision
The need for a decision
Your value
56. 56© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Why do we measure?
To get better.
Process improvement
Process disruption
Innovation
To prove or validate.
A decision
The need for a decision
Your value
57. 57© 2018 FORRESTER. REPRODUCTION PROHIBITED.
MARKETING METRICS ARE ONLY AS VALUABLE AS THE
OUTCOMES THEY IMPROVE.
› Insights teams are stuck in descriptive analytics and aren't
advancing.
› Recipients of reports and dashboards aren't using them to make
decisions.
› Teams use metrics in ways that don't connect to actions that drive
outcomes.
› Data and analytic design focuses on tactics and is disconnected
from outcomes.
Source: Forrester Report, “Use The Goal-Question-Metric-Data Framework To Drive Outcomes From Data And Insights
58. 58© 2018 FORRESTER. REPRODUCTION PROHIBITED.
54%
Of B2B marketers measure with the goal
of continuously improving their marketing
performance.
Source: Forrester's Q1 2018 International B2B Marketing Benchmark Panel Online Survey
59. 59© 2018 FORRESTER. REPRODUCTION PROHIBITED.
54%
Of B2B marketers measure with the goal
of continuously improving their marketing
performance.
60%
42%
High Performers
Low Performers
Source: Forrester's Q1 2018 International B2B Marketing Benchmark Panel Online Survey
60. 60© 2018 FORRESTER. REPRODUCTION PROHIBITED.
KPI: Marketing Contribution to Pipeline
47.4
44.5
36.7
33.8
0
5
10
15
20
25
30
35
40
45
50
Pipeline Contribution Revenue Contribution
Managed Adhoc
Source: Forrester Data Global Business Technographics Marketing Survey, 2017
61. 61© 2018 FORRESTER. REPRODUCTION PROHIBITED.
KPI: Marketing Contribution to Pipeline
47.4
44.5
36.7
33.8
0
5
10
15
20
25
30
35
40
45
50
Pipeline Contribution Revenue Contribution
Managed Adhoc
Source: Forrester Data Global Business Technographics Marketing Survey, 2017
~30%
Improvement in
revenue performance
from a managed,
automated process.
62. 62© 2018 FORRESTER. REPRODUCTION PROHIBITED.
How to set metrics to get better.
› Make sure it’s a real goal, not an aspiration.
› Analyze the drivers of successful goal attainment
63. 63© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Lead nurturing
content
expands vision
of outcomes/
solutions
Lead nurturing
content
explains
sources of
value
Average
deal size is
increased
Funnel
value is
increased
Sales
conversion
rates
increase or
remain
constant
Funnel
volume
remains
constant or
increases
Discounting
is
decreased
Buyer’s
scope is
increased
Buyer’s
perception of
value is
increased
Engagement
rates are
increased
Track
prospects’
behaviors
across multiple
channels
Continuous
fine-tuning of
lead nurturing
programs is
implemented
Tracking
prospects’
behaviors across
multiple channels
enables more
relevant
interactions and
offers
Targeting
of nurturing
programs to
prospects’
motives is
increased
Implement
contextual
nurturing
Use buyer
journey mapping
to develop
engagement
strategy
Analyze the
drivers of
successful
goal
attainment.
64. 64© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Lead nurturing
content
expands vision
of outcomes/
solutions
Lead nurturing
content
explains
sources of
value
Average
deal size is
increased
Funnel
value is
increased
Sales
conversion
rates
increase or
remain
constant
Funnel
volume
remains
constant or
increases
Discounting
is
decreased
Buyer’s
scope is
increased
Buyer’s
perception of
value is
increased
Engagement
rates are
increased
Track
prospects’
behaviors
across multiple
channels
Continuous
fine-tuning of
lead nurturing
programs is
implemented
Tracking
prospects’
behaviors across
multiple channels
enables more
relevant
interactions and
offers
Targeting
of nurturing
programs to
prospects’
motives is
increased
Implement
contextual
nurturing
Use buyer
journey mapping
to develop
engagement
strategy
Analyze the
drivers of
successful
goal
attainment.
65. 65© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Lead nurturing
content
expands vision
of outcomes/
solutions
Lead nurturing
content
explains
sources of
value
Average
deal size is
increased
Funnel
value is
increased
Sales
conversion
rates
increase or
remain
constant
Funnel
volume
remains
constant or
increases
Discounting
is
decreased
Buyer’s
scope is
increased
Buyer’s
perception of
value is
increased
Engagement
rates are
increased
Track
prospects’
behaviors
across multiple
channels
Continuous
fine-tuning of
lead nurturing
programs is
implemented
Tracking
prospects’
behaviors across
multiple channels
enables more
relevant
interactions and
offers
Targeting
of nurturing
programs to
prospects’
motives is
increased
Implement
contextual
nurturing
Use buyer
journey mapping
to develop
engagement
strategy
Analyze the
drivers of
successful
goal
attainment.
66. 66© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Lead nurturing
content
expands vision
of outcomes/
solutions
Lead nurturing
content
explains
sources of
value
Average
deal size is
increased
Funnel
value is
increased
Sales
conversion
rates
increase or
remain
constant
Funnel
volume
remains
constant or
increases
Discounting
is
decreased
Buyer’s
scope is
increased
Buyer’s
perception of
value is
increased
Engagement
rates are
increased
Track
prospects’
behaviors
across multiple
channels
Continuous
fine-tuning of
lead nurturing
programs is
implemented
Tracking
prospects’
behaviors across
multiple channels
enables more
relevant
interactions and
offers
Targeting
of nurturing
programs to
prospects’
motives is
increased
Implement
contextual
nurturing
Use buyer
journey mapping
to develop
engagement
strategy
Analyze the
drivers of
successful
goal
attainment.
67. 67© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Lead nurturing
content
expands vision
of outcomes/
solutions
Lead nurturing
content
explains
sources of
value
Average
deal size is
increased
Funnel
value is
increased
Sales
conversion
rates
increase or
remain
constant
Funnel
volume
remains
constant or
increases
Discounting
is
decreased
Buyer’s
scope is
increased
Buyer’s
perception of
value is
increased
Engagement
rates are
increased
Track
prospects’
behaviors
across multiple
channels
Continuous
fine-tuning of
lead nurturing
programs is
implemented
Tracking
prospects’
behaviors across
multiple channels
enables more
relevant
interactions and
offers
Targeting
of nurturing
programs to
prospects’
motives is
increased
Implement
contextual
nurturing
Use buyer
journey mapping
to develop
engagement
strategy
Analyze the
drivers of
successful
goal
attainment.
68. 68© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Lead nurturing
content
expands vision
of outcomes/
solutions
Lead nurturing
content
explains
sources of
value
Average
deal size is
increased
Funnel
value is
increased
Sales
conversion
rates
increase or
remain
constant
Funnel
volume
remains
constant or
increases
Discounting
is
decreased
Buyer’s
scope is
increased
Buyer’s
perception of
value is
increased
Engagement
rates are
increased
Track
prospects’
behaviors
across multiple
channels
Continuous
fine-tuning of
lead nurturing
programs is
implemented
Tracking
prospects’
behaviors across
multiple channels
enables more
relevant
interactions and
offers
Targeting
of nurturing
programs to
prospects’
motives is
increased
Implement
contextual
nurturing
Use buyer
journey mapping
to develop
engagement
strategy
Analyze the
drivers of
successful
goal
attainment.
69. 69© 2018 FORRESTER. REPRODUCTION PROHIBITED.
How to set metrics to get better.
› Make sure it’s a real goal, not an aspiration.
› Analyze the drivers of successful goal attainment
› Select -- or design -- the specific metrics that can measure progress
toward the goal
› Ascertain if there are existing metrics that can be used to measure.
› Identify proxies to predict longer-term results
70. 70© 2018 FORRESTER. REPRODUCTION PROHIBITED.
1.Reposition MQL, SQL, SAL
as measurement points in a
process, not goals in
themselves.
2.Introduce new measures --
volume, value and velocity
and conversion -- at those
points
Measure L2RM to ‘get better’
71. 71© 2018 FORRESTER. REPRODUCTION PROHIBITED.
How To Institutionalize Innovation:
Always be piloting.
› Devote 10-25% of marketing budget to
innovation
Let people play.
› Don’t load people to 115%
Let people fail.
› Fast Failure > Slow Success
72. 72© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Measuring to get better …
› Understand the drivers of goal attainment
› Identify proxies for ultimate goal attainment
› Innovate with ‘stretch goals’
Key Takeaways
73. 73© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Why do we measure?
To prove or validate.
A decision
The need for a decision
Your value
74. 74© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Why do we measure?
To get better.
Process improvement
Process disruption
Innovation
To prove or validate.
A decision
The need for a decision
Your value
76. 76© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Be inclusive.
1.Focus on metrics that provide insight into the things that “matter
most” to the CEO/CFO/Board – it’s not just revenue.
2.Have at least one key metric for each key stakeholder
3.Have a few metrics that highlight improvements (or degradations)
in the performance of the end-to-end lead to revenue process
77. 77© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Bonus
material
What matters to the
CEO/CFO/Board
They have these questions about marketing's impact:
Revenue growth • How are we performing at each stage of the lead-to-revenue cycle?
• How is marketing contributing to pipeline and revenue?
Revenue Forecast Accuracy • How much revenue can we confidently forecast for current and
future quarters?
• How predictable is our pipeline performance
Profitability • Reduce SG&A
• Improve margins/less discounting
Return on Marketing Investment • What's the return on the money we are investing in marketing?
• What would happen if we increase (or decrease) marketing spend by
[x] percent?
• Is marketing continuously improving to optimize spending?
Market Position • What is our relative market share?
• Are we increasing or decreasing relative to competitors?
• What is our reputation?
• Is it getting better or worse?
Customer/account growth • What is our customer retention rate? Is it increasing or decreasing?
• How does customer loyalty translate into account growth and upsell
opportunity?
78. 78© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Be holistic.
› Status measures: How are we doing against plan?
79. 79© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Be holistic.
› Status measures: How are we doing against plan?
› Impact measures: What has marketing sourced/influenced?
80. 80© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Be holistic.
› Status measures: How are we doing against plan?
› Impact measures: What has marketing sourced/influenced?
› Predictability measures: How can marketing make growth more
predictable?
81. 81© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Be holistic.
› Status measures: How are we doing against plan?
› Impact measures: What has marketing sourced/influenced?
› Predictability measures: How can marketing make growth more
predictable?
› ROI measures: Which programs and channels perform best?
82. 82© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Be holistic.
› Status measures: How are we doing against plan?
› Impact measures: What has marketing sourced/influenced?
› Predictability measures: How can marketing make growth more
predictable?
› ROI measures: Which programs and channels perform best?
› Customer success and sat. measures: How well are we serving
our customers.
83. 83© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Good Customer Experience Drives Market Value
Source: http://www.convinceandconvert.com/customer-experience/does-customer-service-lead-to-a-higher-stock-price/
107.50%
72.30%
27.60%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00%
CeX Leaders
S&P 500 Index
CeX Laggards
Change in Market Value
CX leaders
performed nearly
four times better
than the laggards.
84. 84© 2018 FORRESTER. REPRODUCTION PROHIBITED.
These three things…
› Think beyond the funnel in
establishing goals.
Key Takeaways
85. 85© 2018 FORRESTER. REPRODUCTION PROHIBITED.
These three things…
› Think beyond the funnel in
establishing goals.
› Contextualize metrics to a diverse
audience.
Key Takeaways
86. 86© 2018 FORRESTER. REPRODUCTION PROHIBITED.
These three things…
› Think beyond the funnel in
establishing goals.
› Contextualize metrics to a diverse
audience.
› Don’t just measure to report,
measure to get better.
Key Takeaways
87. 87© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Source: The New Yorker
Whatever you measure,
may you see success in
leaps and bounds.
Notas del editor Watermark Consulting has tracked the Forrester Customer Experience Index leaders and laggards for years, looking at the cumulative eight-year stock return of the 10 best and 10 worst performers in Forrester’s annual study. The results are staggering: The top Customer Experience Leaders increased 107.5 percent in market value, compared to the S&P 500 Index’s return of 72.3 percent during the same period. But the Customer Experience Laggards returned only 27.6 percent during that time period.
Watermark Consulting has tracked the Forrester Customer Experience Index leaders and laggards for years, looking at the cumulative eight-year stock return of the 10 best and 10 worst performers in Forrester’s annual study. The results are staggering: The top Customer Experience Leaders increased 107.5 percent in market value, compared to the S&P 500 Index’s return of 72.3 percent during the same period. But the Customer Experience Laggards returned only 27.6 percent during that time period.
But the Customer Experience Laggards returned only 27.6 percent during that time period. That means the