Download Metrics That Matter: The Latest Research

Metrics That Matter:
The Latest Research
Stefan Tornquist, Research Director,
MarketingSherpa
Scott Santucci, CEO,
BluePrint Marketing
More data on this topic
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Tuesday, October 24, 2006
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1
Be Careful, Metrics Can Be Dangerous
“I know I can cut
50% of the
marketing budget,
I just don’t know
which 50%...Yet.
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How Dangerous, Really?
"Finance would like to significantly
cut our budget."
Don't know
8%
That's us
5%
May apply to us
23%
Challenge for 28% or more
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Not us
64%
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What They Don’t Know Can Hurt You
"Finance has a full understanding of
how our lead generation programs
contribute to the bottom line."
Challenge for 82%
Not us
52%
Don't know
That's us
5%
13%
Working on it
30%
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“Our organization has gained a lot of
credibility over the year. This credibility
has come with our ability to track leads
to pipeline and demonstrate marketing
value and accountability.”
- Boston Summit Attendee
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Cost Per Lead Example
• Reduced costs in list acquisition
 lower quality of contacts
• Cut content budget
 lower quality events
Cost
per
Lead
!
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Set up for failure
• Cut promotion budget
Lower attendance
Well paid but
fired marketer
Unhappy sales
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What we Should Try to Quantify

Why is demand generation needed?

What exactly is a lead?

What are the expectations of the lead?

What visibility to the lead does marketing have afterwards?

What factors prevent success?
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What exactly is a lead?
"Sales and marketing work together to
define a sales-ready lead."
Not currently
doing
18%
Yes - doing this
consistently
35%
Challenge for 65%
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Yes - hit and
miss
47%
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What are the expectations of the lead?
"Finance & marketing have agreed on
measures of success for lead
generation programs - beyond total
leads generated."
Don't know
7%
That's us
11%
Working on it
20%
Challenge for 82%
Not us
62%
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What visibility does marketing have after it
passes a lead to sales?
"It's difficult to get good info about
status and quality after leads are
passed to sales."
Disagree
21%
Strongly agree
33%
Challenge for 79%
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Agree
46%
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Phases
Strategy
Objectives
Planning
Measure
Measurement Program
•Baseline
•Quantifiable
Objectives
•Operating Plan
Tactics
•Responsibility
Execution
•Performance
Results
•Program
Summary
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Measure Phases Objectives
Communicate
Measurement Program
•Finance
•Sales Leadership
•Marketing Team
•Finance
•Sales Teams
•Marketing
Teams
•Finance
•Marketing
Team
•Delivery Team
•Delivery Team
•Finance
•Finance
•Sales Leadership
•Marketing
•Sales Team
Team
•Marketing Team
•Define the
Problem
•Publish
Assumptions
•Gain Buy In
•Pick the
Mechanics
•Get it Done
Strategy
Objectives
Planning
Tactics
Execution
•Communicate
the Success
Results
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•Baseline
•Quantifiable
Objectives
•Operating Plan •Responsibilities
?
•Performance
•Program
Summary
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Phases Objectives
Communicate
Measurement Program
•Finance
•Sales Leadership
•Marketing Team
•Finance
•Sales Teams
•Marketing
Teams
•Finance
•Marketing
Team
•Delivery Team
•Delivery Team
•Finance
•Finance
•Sales Leadership
•Marketing
•Sales Team
Team
•Marketing Team
•Define the
Problem
•Publish
Assumptions
•Gain Buy In
•Pick the
Mechanics
•Get it Done
•Communicate
the Success
Strategy
Objectives
Planning
Tactics
Execution
Results
•Performance
•Program
Summary
Measure
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•Baseline
•Quantifiable
Objectives
•Operating Plan •Responsibilities
?
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Strategy: Build the Baseline
Stakeholder Proficiency
Pipeline Mechanics
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Content Audit
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Goals: Quantifiable Objectives

Improve sales transaction size 50%


Decrease sales cycle 33% from


(from $36,183 to $54,275)
(3 months to 2 months* est.)
Improve our close rate 33%

(from 17%)
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Implications: Gaining Buy In
Cause (Objective)
Improve sales transaction size 50%
Decrease sales cycle 33% from
Improve our close rate 33%
Do all three at the same time
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Effect (Impact on
Revenue)




50% increase in revenue ($28.9 M)
28% increase in revenue ($16.2 M)
10% increase in revenue ($5.9 M)
150% increase in revenue ($85.9 M)
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One Route to Buy In
"Marketing is able to communicate the
impact of lead generation programs to the
company in a meaningful way."
Not currently
doing
24%
Yes - doing this
consistently
38%
Challenge for 62%
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Yes - hit and
miss
38%
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Integrated Demand Generation Program
Sales
process
Exposure
Qualification
Sales Manager
Proof of
Concept
Commitment
Sales Manager
Implementation
Sales Manager
Sales Manager
Conference
Immersion
Workshop
TC’s
Sales
Sales Training
TeleConference
TC’s
Events
Follow-Up
Kits
Power
Summit
TC’s
Follow-Up
Kits
TC’s
Content
Development
& Delivery
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SME
SME
Program Management
Content
SME
Program Management
SME
Program Management
Commitment of client
Simplicity of content
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Communicating Results
1
2
3
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4
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Gaining Credibility
"The leads generatd by marketing have
low credibility with sales."
Don't know
5%
Strongly agree
7%
Disagree
35%
Challenge for 60%
Agree
53%
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Scorecard
Quantifiable Objective
B+
Result
Improve sales transaction size 50%
41% increase
Decrease sales cycle 33% from
25% decrease
Improve our close rate 33%
6.5% close rate
B+
D
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Performance Measures
Analysis per event
Close rates / event





Teleconference
Power Summits
Conferences
Multiple attend
Total continuum
1.78%
3.36%
3.01%
8.70%
6.54%
Revenue / sale
$57,813
$51,350
$20,125
$55,554
$51,114
Distribution of attendees


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
26% pure prospects
24% clients
50% client prospect
Cost per new client

$7,400
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Thank You
Stefan Tornquist
MarketingSherpa
[email protected]
(877) 895-1717
Scott Santucci
BluePrint Marketing
More data on this topic
available from::
[email protected]
(866) 240-4872
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presentation is not for distribution. Thank you.23