Revenue Metrics For A Revenue Marketer

 As the Marketing industry moves more into a revenue accountability mode it is critical that we set up our Marketing organizations, activities and campaigns to be revenue focused.  Below is an outline of a recent webinar I gave called Revenue Metrics for a Revenue Marketer.

 

  •  Revenue Metrics For The “Revenue Marketer”
  • 1 THE BIG PICTURE The Revenue Imperative Roughly 50% of all B2B marketers currently have direct revenue accountability as part of their job and that number is growing quickly. B2B marketers are reaching prospects earlier in their life cycle, remaining the primary company contact deeper into the buying process, and staying involved even after the prospect has engaged with Sales Transformation of the Marketing role
  • 2 THE BIG PICTURE The Big Picture • Marketers Under pressure to produce more and more content and activities with a growing pressure to drive revenue. • Marketing transformation under way driving marketers to create demand and engagement that crosses over into the pre- sales and post Sales cycles, • New Marketing revenue performance calls for new metrics to demonstrate business and revenue impact to the C-Suite. The Revenue Imperative You manage what you measure. B2B marketers are experiencing one of the most rapid changes in the history of business.
  • 3 #1GoalofModernMarketingadoptionistoleadtomoresales. The Revenue Imperative:
  • 4 THE BIG PICTURE The Big Picture • Marketers must measure programs in more channels across multiple device types • Big Data causing a flood of data that marketers need to transform into actionable insights. • Revenue Metrics are trumping activity metrics • Marketing Technologies are a critical component to success Measure What Matters
  • 5 THE BIG PICTURE The Big Picture MOVING FROM COST CENTER TO REVENUE CENTER Redefining marketing’s role within your organization from an activities based cost center to a sales based revenue center If you want to secure your position and your influence/power within your organization tie yourself to revenue Measure What Matters
  • 6 New SLA’s Between Marketing, Sales, Finance and IT New Revenue Oriented roles emerging. Solidify your role, create a new title… • Chief Revenue Officer • VP Revenue Marketing • Director of Revenue Center of Excellence The Revenue Imperative It’s time to redefine your relationships across the company Transformation of the Marketing role THE BIG PICTURE
  • 77 Does Your Organization Have a Revenue Marketing Metrics Mindset?
  • 8 Develop a Revenue results Measurement Mindset The Revenue Imperative Activity Based Metrics such as Impressions, opens and click through rates will not go away but an entirely new set of metrics based on sales, revenue and financial metrics are now added to the marketers performance tracking. New Metrics for a new model Activity vs. Revenue Measurement
  • 9 Most Important Measures To Gauge Your Success Measurement is Key to a Revenue Marketer
  • 10 Develop a Revenue results Measurement Mindset The Revenue Imperative Business & revenue impact vs. activity & actions! New Vocabulary of impact on: • Pipeline • Opportunities • Revenue Generation Measuring What Matters
  • 11 Customer Life Cycle Engagement THINK HOLISTICALLY ACROSS YOUR ENTIRE CUSTOMER LIFE CYCLE FOR TOP LINE REVENUE & BOTTOM LINE PROFIT IMPROVEMENT Pre-Purchase Purchase Service Marketing Sales Service Goals : Customer Acquisition Goals : Customer Engagement Goals : Customer Retention Search Engine Optimisation SEM/ Pay Per Click Email Marketing Social Media Marketing Website /Mobile Site Content Lead Generation Email Marketing Recommen dations and cross- selling Persona based Selling Integration with backend systems eCommerc e Agent Portals Cross- Selling Renewal/ Reminders Claim Tracking Financial Planning Tools Customer Portals My Profile
  • 12 Targeting the Strike Zone! Measuring What Matters Walking in Sales Shoes
  • 13 Define Your Success & Metrics Revenue Strategy Development Define your Success KPI’s Determine what your success metrics will be for each department and each role within the revenue driven marketing roadmap Reach agreement across the organization on success KPI’s • MQL’s • SAL’s • SQL’s • Sales Revenue
  • 14 Define A Common Revenue Language Revenue Strategy Development The Revenue Language The funnel uses conversion numbers betweenlead stages to help determine how much you must put in the top of the funnel to meet a certaingoal at the bottom or, it can do the opposite – track how much you willget out of the bottom if you put a certainvolume in at the top. Either way, there is a lot to be learned from trackinghow these leads convert from one stage to the next. Define the stages for yourself using the guidelines below: MarketingQualifiedLead (MQL). A contactwho has engaged with your marketing efforts enough to meet your company’s definition as ready to be passed frommarketing to sales Sales Accepted Lead (SAL). An MQL that has been determined by a memberof the sales team (likely an inside sales rep) to be accepted and worth exploration by a sales person. Companies use different methods to determinean SAL; the BANT methodis a popular one. Sales QualifiedLead (SQL).A lead that has been explored by a salesperson and determined to be qualified for their pursuit. This is often considered to be the beginning of the sales process. Make sure that you set up a way to track these conversions within your marketing and sales automation tool so that it is applied consistently and has a time/date stamp to capture each conversion. You’ll be able to use your own conversion numbers within the funnel to predict outcomesof your marketing programs. And you’ll be stunned at how usefulthe information is!
  • 15 Measure What Matters The Revenue Imperative Key Revenue Metrics: • Leads produced • Close rates • Revenue per new customer • Time to close • Cost per close • Customer Lifetime Value Transformation of the Marketing role These metrics provide marketers a clear picture of the value they’re producing and the factors contributing to their results. Putting them in context by adding trends shows whether performance is improving and what is driving any changes. –
  • 16 DEFINE WHAT A LEAD IS USING BANT OR OTHER CRITERIA Revenue Strategy Development Define a Common Definition of a Lead Sirius Decisions Lead Spectrum and BANT criteria or something similarcan be uses to ensure qualified opportunitiesare generated for sales people. Below are the 5 suggested qualification criteriato use to confirmthat a lead is a LEAD: BANT – (Budget, Authority, Need and purchase Timeframe) Criteria1- Inquiryfrom an individualfrom a marketingcampaign or trade show,or someone whohas taken proactive steps to demonstrate interestin your message, product or service. Criteria2- A meaningfulinteraction(via phone or email)with the individualconfirming that the company meets qualifying criteria as a bonfide target prospect. Criteria3 – The individualidentifiesa specific NEED for your product or service. (Application) Criteria4 – The individualis in the process of definingpurchase requirementsfor your product or service. (Budget & Timeframe) Criteria5- The individualhas confirmedthey have the Authority, Budget and a defined Timeframe for purchase.
  • 17 DEFINE YOUR LEAD FLOW & A UNIFIED TERMINOLOGY Revenue Strategy Development Define a Common Definition of a Lead
  • 18 DEFINE YOUR BUSINESS FUNCTIONS AND PROCESS Revenue Strategy Development Define a Common Definition of a Lead CENTRALIZED DATA CAPTURE (Single View of Customer)
  • 19 Tightly align With Sales and IT & build your process and Service Level Agreement with each other Revenue Strategy Align For Success Alignment Across The Organization Source: industrialmarketingtoday.com Marketing Sales IT Infrastructure Systems (Web/CMS/CRM) Integration Reporting
  • 20 Leadingmarketersareutilizinganalytics andoutperformingpeerswith higherrevenuegrowthandgrossprofitgrowthand…
  • 21 ….the companies that use analytics perform financially better and execute decisions faster Research: http://www.bain.com/publications/articles/big_data_the_organizational_challenge.aspx
  • 22 Big Business Questions • How can marketing contribute more revenue? • What investments should I make in our marketing organization? • Which campaigns should I invest in? • What should I do next to drive awareness? • Are we generating enough qualified leads to achieve quota? • Which stage of the funnel needs work?
  • 23 Modern state of analytics track revenue and marketer’s evolving role is tomake data driven decisions Marketing Product Marketing Demand Marketing Marketing Communications Marketing Operations Product Development Market Research Market Strategy Lead Generation Event Marketing Channel Marketing TV/Print/PR Website/CMS Branding Marketing Automation Reporting & Analysis Planning & Budgeting F U N C T I O N Goal Example Metrics Understand market needs & trends’, deliver go-to-market plan, differentiate against competition, optimize pricing & product mix Expand reach of target buyers & increase conversion across channels, ensuring pipeline progression Enhance brand presence, ensure optimal customer experience across channels, increase customer satisfaction Increase marketing efficiency, automate execution of campaigns & capture, share & measure marketing performance Product Revenue Pipeline Targets, Marketing Qualified Lead (QL), Sales QL Buzz, Goal Value, Event Value, Goal Conversion Rate Revenue, Attributed Revenue, ROAS
  • 24 Challenges for marketers tocalculate marketing ROI • Closing the loop – getting ROI reporting • Reporting across the entire funnel • Understanding how marketing influences pipeline and closed deals • Lack of a CRM integration with marketing automation • Too many reports – many people asking for many different types of reports • Lack of a clear path on which reports demonstrate “success”. This may be due to lack of leadership or a lack of focus on defining metrics (across organizations of all sizes)
  • 25 Glossary of Term for Behavioral & Revenue Metrics 1. Cost/Attributed Revenue = actual cost for the Campaign / Total Revenue for the Campaign using the attributed model, regardless of date range. 2. Attributed ROI = (Attributed Revenue – Actual Cost) / Actual Cost 1. Total Sends = # of emails sent 2. Total Delivered = Total Sends 3. Total Opens = # of email opens 4. Open Rate = Unique Opens / Total Emails Delivered 5. Total Clickthroughs = # of email clickthroughs 6. Clickthrough Rate = # of Unique Clickthroughs / Total Emails Delivered 7. Time on Site = The average length of time a visitor spends accessing your site within a specified time period 8. Unique Visitors = The number of unduplicated (counted only once) visitors to your website over the course of a specified time period.
  • 26 5 Steps to Marketing ROI 1. Establish metrics to measure ROI 2. Map the data Sources 3. Understand your customer journey and Revenue Attribution Model 4. Understand the cost metrics 5. Establish reporting & insights
  • 27 First step is define that Metrics that really matter
  • 28 Gather the data sources to calculate your defined metrics
  • 29 Integratedataandprovide singleviewofcustomerand customizedreportingtotrack revenueattributedtorightchannel andimprove customerexperience
  • 30 Attributionmodelistherule,orsetofrules,thatdetermineshowcreditforsalesand conversions isassignedtotouchpointsinconversionpaths. Example: A customer finds your site by clicking one of your AdWords ads. She returns one week later by clicking over from a social network. That same day, she comes back a third time via one of your email campaigns, and a few hours later, she returns again directly and makes a purchase. 1. Last Interaction attribution model, the last touchpoint — in this case, the Direct channel — would receive 100% of the credit for the sale. 2. First Interaction attribution model, the first touchpoint — in this case, the Paid Search channel — would receive 100% of the credit for the sale. 3. Linear attribution model, each touchpoint in the conversion path — in this case the Paid Search, Social Network, Email, and Direct channels — would share equal credit (25% each) for the sale. 4. Time Decay attribution model, the touchpoints closest in time to the sale or conversion get most of the credit. In this particular sale, the Direct and Email channels would receive the most credit because the customer interacted with them within a few hours of conversion. The Social Network channel would receive less credit than either the Direct or Email channels. Since the Paid Search interaction occurred one week earlier, this channel would receive significantly less credit.
  • 31 CampaignAttribution
  • 32 Understand the Cost Metrics 1. Cost of the Campaign Value Proposition • What problems do your target audience need you to solve? • What value can you deliver to help improve their business or solve the problem? 2. Cost of The offer (Call to Action) • Whitepaper downloads, video’s, webinar, gated forms, educational content 3. Cost of The Delivery Method • Multi-touch campaign (Email, Social, Banner Ad, etc.)
  • 33 Track Key Performance Indicators over Time…
  • 34 Invest more inhighperforming and analyze low performing campaigns …
Advertisements
Categories: Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s