Download Marketing analytics

Marketing Analytics:
If you don’t measure it, you can’t market it
www.demandspring.com
What is a Springboard?
Let’s be honest, modern day marketing is not always easy. The transition
from marketing as art to marketing as science has put a premium on
rigor, data, process, testing and optimization. Keeping track of marketing
trends and understanding the latest technologies can be a handful
for you and your organization when combined with other day-to-day
responsibilities.
At Demand Spring, our Springboard guides help you breathe a little
easier. They are designed to trim the fat and provide the most critical
information on trending demand generation topics to quickly educate
newcomers and help seasoned professionals stay on course. In other
words, consider these guides a springboard to help you confidently and
successfully dive headfirst into the marketing practices your organization
needs to know to drive demand generation success.
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The Changing Face of Marketing
Technology has changed (or eradicated) many professions
over the past century and a half. The industrial revolution
caused massive disruption for cobblers, potters and weavers.
In more recent times, the Internet has created similar disruption
for professions such as payroll clerks, travel agents and tax
preparers.
While the marketing profession is still alive and thriving
today, it has undergone a significant transformation in the
21st century. Don Draper’s corner office is now occupied by
a new breed of marketing superstar – one who is much more
left-brained. Gartner estimates that by 2017, the IT budget of
a CMO will exceed that of a CIO1.
The reality is, most marketing organizations are ill equipped to
extract critical insights from this data. In IBM’s 2011 CMO Study,
only 41percent of CMOs said that they are prepared to access the
unprecedented growth in the volume of data2. They lack the personnel,
technology, standards and processes that are required for effective
business analytics. While investments are being made in automating
marketing processes, there hasn’t been a commensurate investment in
marketing analytics.
As a result, their decision-making remains more influenced by gut
decisions, team meetings and HIPPOs (Highest Paid Person’s Opinion),
than by information. Accurate insight into pipeline coverage,
campaign performance and marketing ROI is significantly lacking.
Marketers who are not part of Generation Y have had to
adapt or perish in this transition from brand to demand and art
to science. They have learned a new language – the demand
waterfall, SALs, SQLs, lead scoring. Not to mention new
technologies – Salesforce, marketing automation, and MRM.
But what is really required for marketers and
marketing departments to survive and thrive in this
tectonic shift? Insight!
Most marketing organizations are drowning in data and
starving for information. They are overcome by a tsunami of
Big Data. Transactional data. Data in Marketing Automation
Platforms (MAP). Data in CRM systems. Data from the Web
and from financial systems.
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The Missing Imperative – Marketing Analytics
The good news is that most CMOs recognize the gap. In IBM’s study, customer analytics is ranked as
the second highest planned technology investment by CMOs for the next 3-5 years. A full 67 percent of
respondents plan to increase spending in this area.
CMO’s know that increasing their investment in analytics is a
key requirement to two outcomes:
1. D
riving the competitiveness of their business in
the marketplace
2. E nsuring the ongoing relevance of their
department within the organization
In a study co-conducted by the MIT Sloan Management
Review and IBM in 2011, a clear link was found between the
adoption of analytics and competitiveness.
2.2X
Analytically sophisticated companies are
more likely to outperform industry peers3
If there is a clear relationship between competitiveness and
analytics, there is also a clear relationship between the use of
marketing analytics and competitiveness.
The customer is king (and queen) has never been more true than
it is today. The Internet has dramatically changed the balance
of power between buyer and seller. Studies reveal that B2B
buyers no longer wish to engage with a vendor’s sales reps until
they are two thirds of the way through their evaluation process.
Extracting insight on the digital body language of a prospect or
existing customer is paramount to driving wins.
In an age when the majority of CEOs are sceptical about their
return on marketing investment4, proven marketing-driven ROI
and pipeline contribution is a must have for today’s CMO.
For marketing organizations that excel in analytics, the job is
much easier, and it shows in their performance.
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Best-in-Class Analytics
So what does a best-in-class marketing organization look like when it comes to how they use analytics?
What are the key areas they need to get right? This is a journey that takes a superior analytics strategy,
the alignment and discipline of people, processes and standards, and the use of world-class technology.
Strategy
• Analytics Strategy Connects to Business Strategy:
Technology
Strategy
People
Best practice organizations treat analytics as one of the top
business and technology priorities in the organization. The
necessary investments in people and technology are made
to enable a world-class analytics environment – one that
enables data integrity and accuracy, real-time visibility into key
performance indicators and predictive analytics to model future
performance. Performance management methodologies such as
the Balanced Scorecard, Six Sigma or TQM are often used to
connect strategy and execution, with analytics as the foundation
for measurement.
• Competency Center: Business Analytics Competency
Processes
& Standards
Centers are comprised of representatives from throughout the
business – IT, BI, Sales, Marketing, Finance. They govern the
strategies, standards, processes, and technology selection and
implementation for information management and business
analytics.
• KPI Development: Marketing identifies and measures key
performance indicators (KPIs) that map to the objectives of the
business and their operational unit. Marketers have a set of KPIs
that are relevant to their area and ladder up to the department
and organizational KPIs to ensure a consistent focus on the
operational processes that matter most.
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People
Processes & Standards
• Executives: One of the most critical aspects of a successful
• Lead Taxonomy: The alignment by Sales and Marketing
• IT: According to Gartner, analytics ranked as the number one
• CRM Enforcement: CRM adoption throughout sales is
analytics implementation is the sponsorship and usage of the
environment by executives. Marketing executives must use analytics
to measure KPIs and set an example for the rest of the organization
by managing the business (pipeline analysis, ROI analysis, gap
identification and communication) using this environment.
technology priority for CIOs in 2012. This trend is likely to continue
for the foreseeable future as IT will provide the fountain to connect
analytics strategy to business strategy using technologies such as
transactional databases and data warehouses.
• Marketing Operations: There are three critical Operations
roles in best practice organizations:
1) Analytics Strategists – individuals responsible for the
on-going stewardship of analytics strategies and technologies
(these often sit in the now common BI department)
2) Report Authors – individuals responsible for creating
“gold-standard” reports that users can explore in a selfservice manner, as well as creating ad-hoc reports required
by the business. These authors are skilled at producing the
full-spectrum of analytics – dashboards, scorecards, reports,
analysis and predictive models.
3) B
usiness Analysts – these are individuals with significant
statistical analysis backgrounds combined with a strong
understanding of the business. They use reports, analysis and
predictive analytics to understand deep data patterns, current
and future performance gaps and to communicate best
practices drawn from data insights to marketing and sales
leaders and professionals.
around a common “lead language” is a required foundation for
analytics. Many organizations today are adopting SiriusDecisions
waterfall framework – Inquiries, Marketing Qualified Leads,
Teleprospecting Qualified Leads, Sales Accepted Leads, Sales
Qualified Leads – to achieve alignment.
required in best practice organizations. The use of marketing
campaign tactic codes is respected (MQLs are not closed and
re-opened as sales-sourced). The CRM tool is used for forecasting,
with sales executives using the forecasting data in cadence calls.
The SiriusDecisions Demand Waterfall
• Marketing Users: Users throughout marketing are empowered
to engage in the analytics environment in a self-service manner. They
use “gold-standard” reports, analysis, dashboards, scorecards and
predictive models created by report authors to understand their area
of the business, using the information to make data-driven decisions
that optimize performance.
Demand originated from
marketing-led activities
Demand originated from
teleprospecting function
Copyright SiriusDecisions Inc.
All rights reserved. Patent pending.
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Handoff from one function
to another
Demand created by direct
sales or channel resource
Technology
• Information Management: Information Management solutions are used to capture transactional information (CRM solutions such
as Salesforce), to unite data from multiple data sources (data warehouses such as Teradata and Netezza), and to ensure common naming
conventions (Master Data Management such as IBM Infosphere) to ensure “a single version of the truth”. Without a solid Information
Management layer, it’s not possible to have a strong and trusted analytics layer.
• Business Analytics: Best practice marketing organizations leverage
business analytic solutions that sit on top of data sources such as CRM, MAP,
Web, and financial applications. This provides marketing with a holistic and
accurate view of data. Using a BA solution enables marketing organizations to:
• Interact with various analytics capabilities that best suit their needs:
dashboards, scorecards, reports, multidimensional analysis
• Take advantage of predictive analytics capabilities to model future
performance and required actions
• Deliver analytics to users anytime, anywhere through mobile device
support
• Take advantage of event-driven analytics that push notifications to users
and/or systems when certain operations hit predefined thresholds (for
example, re-order notifications when inventory levels drop)
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Ten Years of Marketing Analytics Experience
Demand Spring has more than ten years experience marketing and using business analytics solutions on
the client side with IBM and Cognos. We bring this knowledge to our customers, helping them create a
closed-loop environment to proactively measure pipeline coverage, creation and progression, along with
campaign performance.
Our marketing analytics services include:
•B
uilding an analytics strategy that reflects the four
key pillars of best-in-class implementations: strategy, people,
processes & standards, and technology
• Identifying and prioritizing key performance
indicators and measurement frequency
•D
eveloping pipeline build models to measure and
analyze next quarter (NQ) and NQ+1 pipeline build to ensure
required pipe coverage attainment
•D
eveloping pipeline progression models to measure
and analyze current quarter (CQ) pipeline progression and
required actions to ensure plan attainment
• Developing a marketing sourced leads (MSLs)
analysis model to identify the progression of MSLs,
including stalled leads and actions required
www.demandspring.com
From Data to Information to Insight
The days of marketing remaining focused on “building brand” are clearly behind
us. CEOs are now requiring greater accountability from marketing with respect to
the language that matters to them: pipeline and revenue contribution.
The good news for marketers is that the technology and process insights to enable a robust analytics
environment have never been stronger. As demonstrated by best-in-class organizations, those with
discipline who make the required investments in strategy, standards, processes, people, and technology
reap tremendous rewards. The payoff comes through marketing programs and customer engagement
actions that are highly relevant and optimized to produce maximum return on investment.
ENDNOTES
1 CIO Becomes the New CMO!
Ajay Kelker, Smart Data Collective,
February 18, 2012. http://
smartdatacollective.com/ajaykelkar/46548/cio-becomes-new-cmo
2 IBM CMO Study, 2011. http://
www.ibm.com/analytics/us/en/
why-smarter-analytics/customerinsight.html
3 The New Intelligent Enterprise, a
joint MIT Sloan Management Review
and IBM Institute of Business Value
analytics research partnership
4 In a recent study by the
Fournaise Marketing Group,
73 percent of CEOs from across
600 organizations said that their
marketing organization is not the
business growth generator it should
be. These CEOs think marketing
fails to demonstrate how marketing
strategies and campaigns generate
more customer demand, more
sales, more prospects, or more
conversions. In a similar study,
77 percent of CEOs feel marketers
talk about brand, brand values and
brand equity but fail to link this back
to results that top management cares
about: revenue, sales, earnings, or
market valuation.
www.demandspring.com