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Best Practices in Marketing Performance Management

Laura Patterson

President & Author

[email protected]

Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2008 VisionEdge Marketing. All rights reserved. Not for reproduction or redistribution without written permission. 2

About VisionEdge Marketing –Experienced Practitioners

Founded in 1999 and headquartered in Austin, TX, VisionEdge Marketing, Inc. serves more than 100 customers, and counting.

VisionEdge Marketing, Inc. is a data-driven and metrics-focusedmarketing firm that specializes in improving marketing performance

and creating competitive advantage designed to attract, secure and retain profitable customers.

Services include

Marketing performance management

Marketing and sales

alignment

Product and strategic marketing

Pipeline re-engineering

Professional development


Is Marketing Expendable?

• Financial executives see Marketing as

expendable. Matt Bud, Chairman of the

Financial Executives Consulting Group, “believes

marketing lacks financial discipline…decisions on

budget cuts would be different if marketing could

better educate finance on Marketing’s impact.”

AdAge Summer 2008 study found that 60% of

financial executives believe their companies’

marketing departments have an inadequate

understanding of financial controls

Marketing needs to demonstrate it is “getting the job done”

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Introduction

Marketing is under increasing pressure to: Show impact on the

business

Demonstrate accountability

Communicate our value

To move the needle, Marketing needs to become a performance-driven organization

This interactive session will:

ROMI Evolution

Review four hurdles best-in-class companies overcome

Introduce the concept and

the characteristics of a performance-driven organization

Explore five best practices to improve marketing performance measurement

and management

Time Permitting

Five Case Studies

Recommended Steps


The Marketing Accountability Journey

CEOs reveal that "enhanced return on Marketing investment“ is a top priority for Marketing. (ARF)

Top Priority•66% rank Accountability as Chief Concern (ANA)

•Measuring effectiveness is second most important priority (ANA)•66% of business executives say marketing analytics

and metrics are marketing’s greatest need (Booz

Allen)

Lack of Satisfaction:•Only 21% of 319 respondents rate themselves

"satisfied" or "very satisfied" with Metrics capabilities

(CMO Council)

Measurement Challenged:•Over half (51%) say that difficulty in measuring

performance a key reason for pressure on Marketing department (ANA and Booz Allen Hamilton)

Don’t make the grade:•Only 17% of CEOs would give Marketing a “A.” (VEM)

• 34.9% of CEOs give marketing a C grade, only 9.6% of CEOs give

marketing an A grade, 8.4% give marketing a D grade. (CMO Council)

Still a Priority:•59% consider measuring Marketing performance to be a top-three priority for their company.•Accountability top priority for 66% of senior Marketing executives (ANA)

Can’t Get No Satisfaction:•Only 9% somewhat satisfied with their company’s ability to set and

monitor Marketing Metrics (VEM)•48% felt that CEOs believe that their organization’s ability to measure marketing performance was only marginally effective. (VEM MPM)

Measurement

Challenged:•Marketing is only

marginally or somewhateffective at measuringEffectiveness (Deloitte

study of over 460 executives)

Still a Priority:•54% of survey participants say

measuring marketing performance is one of their top 3 priorities

Measurement

Challenged:

Marketers remain

challenged to measure value and

ROI, <50% use

marketing

analytics (Alterian,

n=1545 )

Dissatisfaction With

Metrics Continues:•96% of marketers tracking

1-20 metrics and• 76% say metrics are not useful in decision making

(Mktg Leadership Roundtable)Top Priority Still:

•CMOs under pressure to demonstrate value; ROI major issue in 2008 (B-B

Mag)

Still Don’t Make the Grade:• only22% of CEOs give Marketing an

“A” (VEM MPM)•Fewer than 1 in 10 say their organization is completely effective at

MPM (Lenskold)

•Measurement Challenged:•30% of 200 CMOs rank MPM most significant challenge (Aberdeen)

Top Priority Still:•Connect Marketing to Financial Consequences (Aberdeen)

•Proving ROI critical (Red Herring CMO Summit)•Need to show impact on purchasing

(B-B Outlook 2009)

20002004

2005 2006 20092007 2008


Disconnect in Perception of Marketing’s Impact and Value Persists

VEM MPM Study 2009

<20% of C-Suite give Mktg an “A”, vs nearly 50% of CMO/VP


Despite Numerous Tools

Pre-1990

BI Tools

CognosHyperion

CRM

GoldmineSage Software/ACT

1990

1992

1993

1998

1999

2001

Business Objects

Campaign ManagementUnica

PR MetricsVocus

Siebel

Web AnalyticsWebtrends

AprimoNetSuite

SalesforceEloquaGoogle Analytics

Marketing AnalyticsImmediateFX

ManticoreMarketingPilot

MarketoSM2

2006

2002

LeadGenesysVtrenz

1980

First MarketingMeasurement Conference

ORSA/TIMS Special Interest Conference on Market Measurement and Analysis

2004

Telligent

1996

Cymfony

1996

Alterian


Marketers Still Lack MPM Proficiency

VEM MPM Study 2009

CMO Council corroborates these findings”

“Only about 5% of marketers are highly satisfied with

the level of accountability, operational visibility, and marketing output.”


Underutilized Marketing Ops Function

• Many organizations have marketing operations, a function defined as being

responsible for helping marketing be accountable and operate like a business.

• Those organizations that have a marketing operations function see data analysis and collection and data management as primary functions

• Only a third of the respondents indicated the Performance Measurement Development

and Reporting within the purview of Marketing Operations.

VEM MPM Study 2009


Link between Marketing and the Business Needs to be Stronger and Clearer

VEM MPM Study 2009


Otherwise we’ll Remain only Marginally Effective

Without a real effort in MPM to articulate the value marketing brings to the business, marketing will continue to be seen as marginally effective.


Compounded by a Sea of Metrics

1. Business acquisitions/ demand generation metrics

Market share gains

Category growth

Customer acquisition

Brand awareness

2. Product innovation/ acceptance metrics

Market adoption rates new

Products as a percentage of revenue

Time-to-revenue

User attachment & affinity

Share of wallet, loyalty and

referral rates

3. Corporate value metrics

Growth in brand value & financial equity

Customer franchise value

Price premium,

Retention of customers and

employees

Brand championship

4. Corporate vision & leadership

metrics

Share of voice

Share of distribution

Retention & message

Relevance & tonality of

coverage


Marketing Metrics Are Missing the Mark

VEM MPM Study 2009

-Where’s the $?-What’s the biz impact?


Four Hurdles Best-in-Class Marketers Overcome

Measurement Competence

Analytics and Skills

More Strategic Metrics

Better Tools and Process

Nearly everyone says

business with existing

customers is important, few

use metrics such as•length of customer tenure,

purchase frequency and

recency, value of the overall

customer base, customer

lifetime value and share of wallet

•Other than leads to

conversion, track little else.

(VEM 2009)

•“Shockingly low investments in marketing technology and still immature processes” (IDC Dec 2008)•“Real success will come from being smarter and more strategic in operations” (B-B 2009)

“Lack employees with specific marketing analytics expertise”(Forrester 2008)“Less than half of respondents use analytics”(Alterian 2009)

“Pressure has mounted on marketers to accurately predict, measure, and optimize results”(Marketing Sherpa 2009)


Marketers Use This Circular Argument

The reason I don’t know what really

works is because I don’t have any data

and/or metrics

Quantitative controls and decisions by-

the numbersjust get in the way

I’m trying to implement various

programs because I don’t know what

really works


A Tale of 2 Marketers – A True Story

Tracked Trial Rates

Measured Adoptions

Rates

Focused on Category

Growth rate

Tracked Pipeline

Contribution

Tracked everything

Web

Measured press and

analyst coverage

Measured

Awareness

Focused on

Lead ROI


The Point to the Story

Bad metrics can be worse than no metrics and

may encourage the wrong behavior and non-

productive activities

Ambiguous metrics are open to interpretation

Need to become a

performance-driven

and have a manageable number

of metrics aligned with business outcomes


Let’s Review Why Companies Invest In Marketing

Understand the market and customers

Develop and execute a strategy to create

preference and consideration that enables the

organization to

Acquire more of something

Acquire it faster

Acquire it cheaper


3 Ways Marketing Gets the Job Done

1. Find Profitable

Customers/Consumers

The process of acquisition

2. Keep Profitable

Customers/Consumers

The process of retention

3. Grow Profitable

Customers/Consumer

The process of increasing the

value of your customer franchise

and brand

Need to link the metrics to the job


Requires a Transformation…

Into a performance-driven organization that:

promotes competition

maintains quality, and

emphasizes a consistently high level of achievement.

Entails -

New skills, capabilities, metrics, and processes required to make the transformation

Three Changes We Must Make

1. Transform into a performance-driven, outcome-centered organization

2. Shift

From Tactical to More Strategic - broaden focus from sales support to a marketing framework linked to business outcomes

To metrics that impact the organization’s economic performance & strengths both financial & NON-FINANCIAL goals

3. Balance

The ROI of current programs while still driving strategic issues that impact long-term viability


Performance Management

…the process

of measuring

progress

toward

achieving key

outcomes and

objectives in

order to

optimize

individual,

group or

organizational

performance.CMO Council's 2008 Marketing Outlook

“The top challenge for marketers remains to better quantify and measurethe value of marketing programs," in spite of improvements in accountability over previous years.


Have a set of measurable

performance standards, a pointed

focus on outcomes, and clear lines of accountability - all of which are

important if a marketing organization wants to prove its value.

Performance-Driven Organizations


5 Characteristics of a Performance-Driven Marketing Organization

1. Established clear standards of

performance and metrics

2. Aligned resources, policies, and

practices

3. Results tracked and reported

against performance standards

4. Data and performance target

setting are used to drive

continuous improvement and to

hold the entire system

accountable for performance.

5. Analytics are used to facilitate

fact-based decision making


Adopt Five Best Practices

Create a performance measurement system

based on data and analytics

Adopt a framework that identifies metrics that

impact organization’s economic performance and strengths

Link marketing to business outcomes

Embrace a culture of accountability

Add the right skills, systems, and tools


Data - The Foundation of Measurement

Performance Driven-Marketing Organizations Embrace data Install and use a data

management system

Get the best data possible and use it in a pre-defined, unbiased way

Establishing metrics, determining effectiveness, understanding efficiencies, all take data

Data is everywhere, the challenge -locating data relevant to the organization’s priorities and outcomes and then aggregating it

“Data is the new creative.”- Stephan Chase, Marriott Rewards

Need to:

Install and use a data management system

Get the best data possible and use it in a pre-defined, unbiased way

Create a data inventory and identify the gaps


Analytics – The Ability to Drive Actionable Insights from Data

Data is the basis of analytics

Analytics - Critical to facilitating better and faster fact-based decisions

Predictive analytics helps to establish some degree of accuracy the outcomes that can be achieved from the relationships, products, services, and processes

Need To:

Add more analytic

staff in marketing

Initiate modeling


Measurement and Metrics = Power

Empower Marketing

Influence decisions

Recommend action

Play a strategic role

Provide a current picture (market share, product margins, close rate)

Indicate future performance

(projected revenue, share of wallet, net advocacy)

Other Professional Benefits:

Communicate impact

Be seen as accountable

Demonstrate financial contribution

Enable marketers to work smarter

Relevant Metrics:

Enables Marketers to

conduct a more

relevant & strategic role

Transitions Marketing

from how to spend

least amount without

reducing tactical results

to investing for

significant strategic

success & impact

Speak directly to C-

Suite hot buttons


Metrics and Measurement

Performance-Driven Marketing Organizations:

Design and select metrics that measure marketing’s impact on the business

Ground metrics in data and analytics

Use metrics that measure efficiency, effectiveness and payback

Create a measurement management system and consistently use it

Capture performance metrics as quickly as possible in order to instigate immediate change in execution

Report results and performance in real- time

“There’s the all-too

human desire to avoid

accountability…

marketers often do not

set quantitative

program objectives, so

they’re unable to

rigorously examine how

marketing programs

drive actual revenue.”-Guy R. Powell


Establishing Metrics and KPIs

Use a top-down approach – start with the business decisions that

need to be made

To create your Metrics and KPIs answer these questions:

What business outcome are you

trying to impact

What questions need to be

answered to determine if you are

impacting this outcome

What data do you need to answer

these questions

Where is this data

What decisions/action will you

need to be able to make/take as

a result of the data

Connect Marketing investments and Metrics to

the Business

Focus on the most

relevant, essential, & valuable actions

Begin with business

outcomes

Identify most important measures of success

Define performance indicators connected with these measures

Determine which data provides necessary

information

Analyze & report


The Right Metrics are Outcome-Based

Outcome-based metrics enable marketers to:

Measure strategic effectiveness

Focus on efforts with greatest impact and contribution to the company’s valuation

Demonstrate accountability

Focus on contribution to company’s overall valuation

Provide quality control process

Measure effectiveness

before efficiency.

“Efficiency is doing things right;

effectiveness is doing the right

things.”- Peter Drucker


How Do We Get There?

Start with the purpose of Marketing

“Marketing has the main

responsibility

for achieving profitable revenue

growth”.

Phil Kotler, 1999

S. C. Johnson & Son, Distinguished Professor of International Marketing,

Kellogg Graduate School of Management, Northwestern University


Our 3 Roles Enable Us to Move 3 Business Needles

Find/SecureProfitableCustomers

Acquisition

KeepCustomers

Penetration

GrowCustomer

Value

Monetization

Market Share Lifetime ValueBrand/

Customer Equity


Select Metrics Based on Marketing’s Job

Certain Facets of PerformanceMove Needles for Each Gauge

5 Customer/Brand

Equity Indicators

• Price Premium

• Net Advocate Score

• Customer Franchise

Value

• New Product

Acceptance/

Adoption Rates

• Product Margins

4 Lifetime Value

Indicators

• Purchase Frequency

• Share of Wallet

• Advocacy/Loyalty

• Tenure

5 Market Share

Indicators

• Share of Preference

• Share of Voice

• Share of Distribution

• Rate of Customer

Acquisition

• Rate of Growth:Market


Adopt a FrameworkTactical Strategic

Activity-

Based

Operational

Outcome-

Based

Leading-

Indicators

Predictive

CountingPress Hits

Trade show leads

Click-Through Rates

EfficiencyLead/Rep

Lead Aging

Campaign ROIProgram: People Ratio

Business

OutcomesMarket Share

Category

Ownership

Lifetime Value

Likelihood

of OutcomeShare of Wallet

Adoption Rates

Rate of Growth:

Market

Cost/Billing Dollar

Program spend/headcountProgram/Total Spend

Awareness: Demand Ratio


Illustrating the Concept –Measuring Activity - Running 5x/week

Lose 20 lbs by the end of the year

Finish a 5K in under 28 minutes

Different outcomes mean different metrics of

success, even though may use the same tactic for each

What’s the metric for the

Lose weight outcome?

Finish 5K outcome?


What Would The Shift Look Like

FROM Measuring Activity

Run six half-page ads in all tier one trade publications

Exhibit at the primary tradeshow for each vertical

Create product brochure for new product

Revise online demo

Generate 500 leads

Implement a promotion with two distributors

Distribute newsletter 6 times

Send email blasts to prospects monthly

Conduct customer satisfaction survey

Research customer product requirements

TO Linking to Outcomes

Add 7-8 New Strategic Accounts to support NA Market Penetration

Increase Customer Lifetime Value from X to Y

Grow share of wallet among our top customers from A to B or Tier One Customers will purchase 2 or more products from the Y Family

Add 3 New VARs in each of three primary verticals or Add One new channel partner in each region

Grow Tier 1 Distributors Sales by X%

Grow our product category by X%

Increase penetration of ABC product in Tier 1 Customers by 15%

Improve our NAS from 10.2 to 16

Change our MVI from <100 to >100


Performance Management = Accountability

Metrics and KPIs (key

performance indictors)

are the building blocks

for creating a

dashboard

All the necessary dials and gauges to tell you where you are, where you’re going and at what speed – along with indicator lights that illuminate at the first sign of a problem


Use the Dashboard To

Show how marketing is moving

the needle

Assess what is and isn’t

working

Foster decision making –

is actionable

Provide a unified view into

marketing’s value

Enable better alignment

between marketing and the

business

Translate complex measures

into a meaningful and

coherent set of information

Categories for the

Marketing Executive

Dashboard

1. Customer Acquisition and

Retention

2. Customer Advocacy and

Value (LTV, Margin, Loyalty,

Share of Wallet)

3. Customer Equity

4. Product Innovation and

Adoption

5. Competitive

Positioning/Market Value

Index (share of preference,

rate of growth)


A Good Dashboard

A Multilayered performance management systems

that:

Enables organizations to measure, monitor and manage business activity using both

financial and non-financial measures

Provides an overview marketing goals and objectives, and real-time insight on progress

toward each objective


Three layers to the marketing dashboard:

Executive level

Strategic level – monitors

and measures performance

against business outcomes

and marketing objectives

Operational level

Marketing management – tracks performance of

core marketing strategies and processes

Tactical level

Functions and individuals – analyzes performance at

project or activity level as they relate to the first two

Marketing Dashboard Construction


Business Outcome Level Example – Two Outcomes

Acme Market Share Performance

0

5

10

15

20

25

30

35

FY07

1m08

2mo0

8

3mos

08

4mo0

8

5mo0

8

6mo0

8

7mo0

8

8mo0

8

9mo0

8

10m

08

11m

o08

12m

o08

1mo0

9

2mo0

9

3mo0

9

4mo0

9

5mo0

9

6mo0

9

7mo0

9

10m

o09

11m

o09

12m

o09

Mark

et S

hare

Time

Market Share Target

Enterprise actual

PerformanceAgainst #1 Player Initiative

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,000

FY07 1Q08 2Q08 3Q08 4Q08

Time

Revenue

# 1 Player Target

Enterprise Actual

Market Share

Category Ownership


Marketing Objective Level Example –Two Objectives – Margin and Marketing Contributed Deals

Market Share Initiative - Lead and Cost Performance Against

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08

Time

Leads

0

100

200

300

400

500

600

700

800

900

1000

Cost

Qualif ied lead target

Qualif ied lead actual

cost/qualif ied lead target

cost/qualif ied lead actualMarket Share Lead and Deal Performance

0

20

40

60

80

100

120

140

160

180

2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08

Time

Deals

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Leads

Marketing Deals Target

Marketing Deals Actual

Qualif ied lead target

Qualif ied lead actual

Margin – Number of Opps and Cost

MarketingContribution


Campaign Level Example – Margin and Opps

Market Share Initiative: Campaign XYZ Lead to Deal Performance

0

2

4

6

8

10

12

14

16

Marketing

Deals

Target

Marketing

Deals

Actual

Qualified

lead target

Qualified

lead actual

Lead

0

0.5

1

1.5

2

2.5

3

3.5

Deals

1Q07

1Q08

Market Share Initiative: Campaign XYZ Lead to Cost Performance

02468

10121416

Qualif

ied

lead t

arg

et

Qualif

ied

lead a

ctu

al

cost/

qualif

ied

lead t

arg

et

cost/

qualif

ed

lead a

ctu

al

Leads

0

200

400

600

800

1000

1200

Dolla

rs Leads

Cost


But Wait, There’s More

Processes, Systems, Tools

Skills & Training

Solutions to the problems of marketing accountability and creating a ROMI

culture begin with training (ISBM)

Culture

Create, reward and livea measurement culture


Performance Measurement = Accountability

Accountability Means Reporting

Metrics and KPIs (key performance indictors)

are the building blocks for creating a

dashboard

Dashboards and Scorecards

Multilayered performance management systems

that enable organizations to measure, monitor

and manage business activity using both

financial and non-financial measures


Process is Key to Marketing Accountability

In 2005, the AMA defined Marketing Accountability

“The responsibility for the systematic

management of marketing resources and

processes to achieve measurable gains in

return on marketing investment and

increased marketing efficiency, while

maintaining quality and increasing the value

of the corporation.”


Processes

Establish a process that

enables the organization to

make adjustments in real

time – rather than looking in

the rear-view mirror

Leverage Industry Best

Practices and Company

Insights for continuous

improvement opportunities

Deploy processes that allow

you to modify metrics and

the dashboard design as

needed

Marketers need to document these

processes:

Data collection and

analysis process

Program performance

target setting process

Metrics and

Measurement process

Reporting and

dashboard process


Impact of Culture on Performance

Klein, Masi and Weidner, “Organizational culture, distribution and amount

of control and perceptions of quality,” 1995

“Cultures that encourage teamwork and

employee development and empowerment

achieve higher quality outcomes.”


Performance-Driven Marketing Organizations Live a Measurement Culture

1. Relentless when it comes to performance target setting and measurement Make measurement a keystone within the organization and place

measurement at the center of the organization

2. Operate with a clear measurement strategy that aligned to business goals and outcomes and they measure what matters

3. Realign around new processes that facilitate accountability4. Develop formal rules and regulations around the value of

accountability5. Establish expectations and goals, and measure achievement

against these goals• Promote and hail employees who demonstrate the new values and

behaviors

• Transfer, and if necessary, terminate people who won’t get on board• Create stories around accountability successes

• Implement reward systems that support the value of accountability Deploy a test and learn systematic process

6. Go Public - Share and utilize marketing measurement insights across the team

• Create opportunities to engage employees in the change process


Live a Measurement Culture

Four Signs of a Culture of Accountability

Marketing defines specific goals with

measurable criteria to achieve clear results

that will impact the business.

Each person in marketing assumes

accountability for the ultimate business outcome, not just his or her individual tasks

Focus is on achieving results beyond the

boundaries of each individual’s job

Each person within the marketing

organization knows how their job advances

the corporate and marketing goals. Not task-centric (e.g. updating the website,

creating and implementing a campaign,

revising the pricing model, etc) rather

outcome-centric.


Commit to recruiting and developing individuals

to build a consistent base of marketing know-how,

analytical skills

Form strategic partnerships with an extended

team of finance, IT, sales, services etc. to support

the marketing function

Deploy appropriate technologies to help the

team analyze critical data

Invest in the Right Skills and Capabilities


If We Change, Will it Matter?

Companies with “formal &

comprehensive” Marketing

Performance Management System:

Outperform companies entering

consideration phase

Performance ratings of 29%, 32%

& 37% better in sales growth,

market share & profitability

CMO Council/Business Week MPM Survey


See the Difference

Best-in-class marketers measure specific metrics that link

marketing efforts and overall business goals. These marketers

and their companies consistently demonstrate higher

performance in four areas:

BIC Performance Advantage

38%

37%

39%

24%

50%

60%

45%

31%

60%

76%

49%

43%

0% 20% 40% 60% 80%

Annual increases in

gross revenues

Customer Rention

Rate

Customer Acquisition

Rate

ROMI

Pe

rfo

rm

an

ce

Percentage

BIC

Average

Lagging

•rate of customer acquisition

•rate of customer retention

•annual increase in gross revenues

•return on marketing investment

- Aberdeen Group


Five Case Studies

1. Zebra

2. Kronos

3. ING

4. Bioscience

5. Storage


Zebra

Needed:

More focus on high-value and high-ROI strategies

To demonstrate that marketing was indeed supporting business objectives, particularly in terms of revenue generation and channel support.

Proper metrics that would aid the decision-making process to sift through the many requests for marketing assistance and to prioritize activities that most closely aligned with Zebra’s sales and business goals

Results: New and different metrics

related to: the channel pricing revenue from and the

number of new markets and applications in the pipeline.

More meaningful dialogues with other business areas, including sales. Marketing became a more strategic player, more than just a tactical arm.

Clearer links between marketing and the business are clearer


Kronos

Needed

a more integrated

view of marketing

the ability to demonstrate the

link between marketing

investments and

the attainment of key corporate

initiatives

Results

Metrics and a new

dashboard that provide actionable

data

add-on products (share of wallet)

upgrades

(customer value)

penetration of

new markets


ING

Needed:

An approach to optimally

allocate marketing funds

A set of metrics the ING

Retail Annuities’ marketing

organization could use to

monitor the ongoing

effectiveness of its

marketing efforts that the

leadership, sales and

marketing teams would all

agree measured

marketing’s contribution

and impact to the

business

Results:

Six marketing initiatives and

associated metrics were

identified and approved

to support the

organization’s sales,

market share and earnings

outcomes.

retention

account penetration

rep productivity

asset management

new producer

enablement and

efficiency


ING cont’d

Performance targets and drivers

New Producer Acquisition

Engagement

conversion ratios

time-to-conversion

Producer productivity

Kits to sales

order value

on-time delivery


Bioscience

FROM

Being overwhelmed with a continuous action item list but have very little other than excellent creative to show for their efforts.

Inability of marketing to show the correlation between marketing tactics and true effectiveness.

Vaguely worded marketing objectives such as: Grow the reference base

Leverage our leadership position or ideally position the company in some market

Become a dominant player or solidify market leadership

Establish mind and market share

Drive awareness

TO

Every marketing objective has a measurable performance target and is tied to business outcome a

every tactic is designed to support the objective. Tactics that don’t are deleted.

Objectives and metrics around the following four key categories:

customer acquisition

share of wallet

product adoption and

•average order value

Eliminated 50% of “distracting” activities making the organization both more effective and more efficient

Freed up 30-40% of the budget


Storage Infrastructure and Management Solutions and Software

FROM

Lead development

focus

Campaign-level tracking

Post-activity data reports

TO

Focus on installed

base and new customer acquisition

Tracking

performance-based targets

Producing actionable

dashboards to drive marketing decisions

more real-time


Storage Cont’d

New Customer Acquisition

Customer Retention and Defend

Effectiveness Marketing

Contribution

Qualified Lead Target

Share of Wallet

Products Per

Customer

Efficiency Cost Per Lead New Product Adoption Rate

Financial Value Average Order Value Time to PurchasePurchase Frequency


Getting Started

1. Conduct an audit to identify alignment, data and process gaps

2. Assess the crucial skills marketers need and provide training

3. Identify and add the right talent, systems, and tools to help automate marketing processes and improve marketing performance

4. Leverage best practices and company insights for continuous improvement opportunities

5. Create and adopt a performance measurement and management strategy, system and framework that aligns marketing with the business outcomes

6. Engage the leadership team and form strategic partnerships with an extended team of finance, IT, sales, service, etc.

7. Create and align processes, policies and practices that insure the linkage between marketing programs and business results

8. Design and select metrics and clear standards of performance that enables marketing to measure its impact, effectiveness, efficiency and value

9. Create a multi-level dashboard to report performance and results in real-time to facilitate course adjustments and foster decision making - make it an iterative and collaborative effort


Thank You and Questions

Metrics in Action: Creating a

Performance Driven Marketing

Organization

Workbook: It's More than Money on the

Line: Creating Metrics to Measure

Marketing’s Effectiveness, Impact and

Value

Both are available at

www.visionedgemarketing.com

http://www.visionedgemarketing.com/

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