TMSA MEASURING YOURDIGITAL MARKETING ROIIT’S EASIER THAN YOU THINK.

Chris is SyncShow’s CEO and will be today’s presenter.

CEO

Berry Books

CFO

Vinny Viewer

Sales Director

Wendy Writer

Chris Peer, CEO & Today’s Presenter

With You Today

Why Track Marketing ROI?

● Marketing becomes an investment strategy not an expense = increased budget for marketing

● Greater marketing effectiveness and elimination of “whack a mole” style marketing

● Marketing to profit measurement = Top and Bottom Line Growth for your company.

● Marketers become HEROES

Benefits of Tracking the ROI of your Digital Marketing

Return on Marketing Investment (ROMI)Is the contribution to profit, attributable to marketing (net of marketing spending), divided by the marketing 'invested' or risked.

Source: Wikipedia

Is your marketing an investment or expense?

Revenue or Profit

If your company spends $100,000.00 on a digital marketing initiative and the digital marketing effort returns $1,000,000.00 in revenue, then the ROI = 10x.

If your profit margins are 40%, then the margin ROI (the true ROI = $1,000,000 x 40% minus the investment of $100,000.00) or $300,000.00 profit.

Common Reasons Why Companies Don’t Track Digital Marketing ROI?

● Fear of failure

● Perceived as being too difficult

● Perceived as being too expensive

● Lack of tools / data

● Lack of knowledge

Fear of FailureIf you are a marketer, you MUSTtie your efforts to profits or risk

being obsolete.

"Forget about the consequences of failure. Failure is only a temporary change in direction to set you

straight for your next success." -Denis Waitley

Marketing is a Science. You Will Fail. Embrace Failure and Move On.● Not every campaign, initiative or

effort will work as planned. Analyze, adjust, move on.

● Have key performance indicators (KPI’s) for everything.

● Continuously track, analyze and report on every marketing effort.

● Understand that you must test, retest and retest again. Keep changing things up to see what works and what does not.

● Encourage your team to take risks and embrace their failures. Nothing ventured nothing gained.

● If you cannot track it, don’t do it.

● Bring in an expert to be your guide.

● Set your team up for success.

○ Ensure you have the right tools

○ Clear communications

○ Accountability

○ Alignment with Sales

Too Difficult?

Measuring digital marketing ROI is easier than you think. Take baby steps and build

sophistication over time.

“The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty.”

-Winston Churchill

Take It One Step at a Time

● Oftentimes you will depend on other departments for information, such as:

○ Profit margins○ Average order value○ Customer lifetime value○ Lead to Customer %○ Etc…

● Be patient and work with these departments for mutual success.

● When in doubt estimate○ If other departments

cannot provide the information needed, estimate the best you can.

○ Executive leadership is often appreciative of the insight and effort to tie ROI to marketing

● Once you know what to measure and how to measure it’s easier than you think!

Too Expensive?

Once you know how to define digital marketing ROI, the expense is irrelevant. It is the promise

of a return that matters.

2X+ Return In 12 Months or NO GO!

“In business there is no such thing as an expense. EVERYTHING you spend money on should be an investment.”

- Unknown

Lack of Tools?

No Excuses.Google Analytics. It’s free and easy to set up.

Include the cost of your marketing tools in the ROI equation.

“The best investment is in the tools of one's own trade.”

-Benjamin Franklin

Lack of Tools

You will need the right tools to effectively engage in a digital marketing strategy.

The following are the tools I recommend: (the cost of these tools should be

factored into the ROI calculation)

● Marketing Automation (Act|On, Pardot, Marketo, HubSpot. I prefer HubSpot)

● Google Analytics

● Basic spreadsheet program (Excel)

Enhanced Metrics Tools:

● Website Analysis: Insites- by Silktide, CrazyEgg, WebPageTest.org, Pingdom, Test

my Site, Google Structured Data Testing Tool

● Search Engine Optimization/Marketing Analysis: SEO MOZ, SEMrush

● Social Media & Email: HubSpot Professional or Enterprise

● SyncShow KPI Tracker

Lack of Knowledge?

Today digital marketing is rocket science! Get educated on how to build

a successful marketing program or bring in an expert.

“The interaction of knowledge and skills with experience is key to learning”

- John Dewey

Lack of Knowledge

There are many resources available to help you determine the right ROI driven

strategy for your organization. Provided below are some of my favorites:

● Inbound Conference

● Content Marketing World

● TMSA Digital Marketing Conference

● HubSpot Academy

● Digital Marketing ROI Calculator

● Good Reads:

○ How to measure marketing ROI

○ Refresher on Marketing ROI

“The interaction of knowledge and skills with experience

is key to learning”

- John Dewey

Data = Success

Understanding what to measure and where to acquire the required data are

critical components to your success.

“Marketing without data is like driving with your eyes closed” - Dan Zarella

DEFINITIONS

● SESSIONS: = Website visits

● S2LCR: Session to Lead Conversion Rate

● L2MQLCR: Lead to Marketing Qualified Lead Conversion Rate

● L2SQLCR: Lead to Sales Qualified Lead Conversion Rate

● LEAD: Anyone that engages with your brand via your website (calls in, completes a form,

downloads content)

● MQL: Marketing Qualified Lead: A lead that meets the profile of your defined buyer

personas.

● SQL: Sales Qualified Lead: A marketing qualified lead that your sales team has engaged in

conversation with.

● Buyer Persona: A stereotypical profile of your unique buyer target (age, gender, level of

education, pains, needs, expectations, title, type of company they work for)

● Customer Lifetime Value: Revenue driven from a typical customer for the entire lifetime of that customer.

17

SYNCSHOW

GOALS & OBJECTIVES● Clearly Define Your Goals & Objectives

● Have a Multi-Year Vision

YOUR GOALS & OBJECTIVES(an example)

● Generate 5-10 sales qualified leads per month via the website

● Increase current customer sales growth with enhanced digital communications

● Establish a presence and create awareness in new markets (geographic or vertical)

● Increase website traffic by 50% in 12 months

19

GOALS - April 1, 2018 – June 30, 2018

20

AprilGoal

AprilActual

MayGoal

MayActual

JuneGoal

June Actual

Sessions 1,700 3,254 1,900 1,988 2,000 2,529

Leads 55 76 62 48 55 61

S2LCR 3.25% 2.34% 3.25% 2.41% 2.75% 2.41%

MQLs 3 17 4 5 3 4

L2MQLCR 6% 22.37% 6% 10.42% 6% 6.56%

SQLs 22 38 25 20 22 32

L2SQLCR 40% 50% 40% 41.67% 40% 52.46%

Customers 1 1 1 1 2 3

SUGGESTED GOALS - July 1, 2018 - September 30, 2018

21

Above goals are based on:● Sessions are based on seasonality and historical data● All lead goals are based off of historical data but we will evaluate them quarterly to stay focused on any

large upsets or changes that may need to be made to be proactive about recommendations for your new website health.

● September S2LCR has been adjusted slightly to account for pause in SEO and lead generation campaign in August.

July Goal August Goal September Goal

Sessions 1,933 2,057 1,959

Leads 55 61 39

S2LCR 2.82% 2.98% 2.00%

MQLs 5 6 4

L2MQLCR 10% 10% 10%

SQLs 27 31 20

L2SQLCR 50% 50% 50%

Customers 2 1 2

22

SOURCES REPORT - SESSIONS April 1, 2018 – June 30, 2018

23

SOURCES REPORT - NEW CONTACTS April 1, 2018 – June 30, 2018

How do I get this data?

KPI = Key Performance Indicator Where Metric

Average Website Sessions (Traffic) Google Analytics / HubSpot or other analytics software

Assume for an increase month over month based on marketing effort. Use this estimate for your ROI projection.

Average # of Leads per Month from Website (includes: calls, form fills, downloads, chat, etc.)

Google Analytics / HubSpot Track this month over month. Use HubSpot to identify source of the lead (Social, email, PPC, etc.)

Close Rate (%) Financial Software or CRM (HubSpot, SalesForce, Dynamics, etc.)

= Number of New Customers / Total LeadsEx: 10 new customers / 50 leads = 20% close ratio

Customer Value (12 months) Financial Software or CRM (HubSpot, SalesForce, Dynamics, etc.)

Total sales revenue and profit of the average new customer for the first 12 months.

Customer Lifetime Value Financial Software or CRM (HubSpot, SalesForce, Dynamics, etc.)

Total sales revenue and profit of the average new customer for the customer lifetime.

Session to Lead Conversion Rate Analytics / HubSpot Total number of leads (website conversions) / website session for that month = conversion rate. This should be 2-5% for B2B companies.

Making Sense of the Data.

KPI = Key Performance Indicator

Factor

Average Website Sessions (Traffic)

At SyncShow, we factor in a conservative % increase in website traffic, month over month depending on the scale of the marketing effort.Example: 5000 sessions per month

Average # of Leads per Month from Website (includes: calls, form fills, downloads, chat, etc.)

This should be between 2-5% (on average for B2B companies). Website Sessions x 2% = Total Leads5000 x .02 = 100 leads

L2MQLCR (Lead to MQL Conversion Rate)

Typically, we see the Conversion Rate from Leads to Marketing Qualified Leads to be about 40%Website Leads x L2MQLCR (40%) = MQL’s100 leads x .40 = 40 MQL’s

L2SQLCR (Lead to SQL Conversion Rate)

Typically, we see the Conversion Rate from MQL’s to Sales Qualified Leads to be about 50%MQL Leads x L2SQLCR (50%) = SQL’s40 MQL leads x .50 = 20 SQL’s

Close Rate (%) Factor in your proposal to close rate. (Let’s assume 60%)SQL’s x Close Rate = New Sales20 SQL’s x .60 = 12 New Sales

Making Sense of the Data.

KPI = Key Performance Indicator

Factor

Customer Value (12 months) Factor your new sales x new customer value in the first year.New Sales x AOV = Revenue12 New Sales x $20,000 = $240,000.00*this will be used to calculate the annual investment ROI

Customer Lifetime Value Factor each new sale x CLV12 New Sales x AOV = Revenue12 New Sales x $50,000 = $600,000.00*this will be used to calculate the compounding ROI

Profit Margin Factor in your profit margin from the Customer Value (12 months)Total Marketing Revenue p/m x 12 months x PM = Profit$240,000.00 x 12 x 20% = 576,000.00

Return on Marketing Investment

Example: Company spends $10,000.00 per month on marketing.Profits - Marketing Investment = ROI$576,000 - $120,000 = $456,000

EXPERT TIPS

● Every company is different. Use the formulas on the preceding slides as a guide.

● If the ROI calculation does not prove true, use the data to find out where the discrepancy is?

○ Are the average order values off?

○ Is the close rate different than the assumption?

● You must factor in your sales cycle. We typically recommend a 6-9 month base-building until results start to flow.

● Think long term!

27

Long Term Return on Investment

It is critical to calculate the Customer Lifetime Value (CLV). True ROI may not be as dramatic in the first 6-18 months. However, when you calculate CLV, the value compounds year over year to define your true return.

Customer Lifetime Value = Revenue driven from a typical customer for the entire lifetime of that customer.

EXPERT TIPS

● Perhaps the most important KPI to track is your Session to Lead Conversion Rate (S2LCR). It should be 2-5%! If it is not then you should actively work to improve it.

● Use data to support and guide all marketing decisions when possible.

● Identify where, when and how all of your leads are finding you.

● Stop Doing, Keep Doing, Start Doing: use data to inform you of your future marketing game plan.

29

ROI CALCULATOR

Click the link above to calculate your potential for digital marketing with SyncShow.

31

Q?

Still have questions about Measuring ROI?

SyncShow helps industrial companies synchronize sales and marketing to show results. With over 16 years of experience, we are a turnkey provider of lead-to-revenue solutions. We offer an unique alignment to the industrial buyer’s journey.

Call us today to learn more: 440.356.19031156 Linda StreetRocky River, OH 44116www.syncshow.com