CEMA Dan Fannin: VP Business Process Excellence @
Description: CEMA Dan Fannin: VP Business Process Excellence Regal Beloit Marketing Measuring ROI The Burning Question? How do we Measure Marketing Success? Objectives Marketing Strategy Strategy Deployment Success Metrics Strategy Fine-Tuning
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slide1. CEMA Dan Fannin: VP Business Process Excellence @ Regal Beloit Marketing & Measuring ROI<br>
slide2. The Burning Question? How do we Measure Marketing Success? Objectives Marketing
Strategy Strategy
Deployment Success
Metrics Strategy
Fine-Tuning<br>
slide3. Marketing Campaigns<br>
slide4. Marketing Campaign Models Three key customer touchpoints<br>
slide5. Tradeshow Leads eMail Blast Leads Trade Publication Leads Targeted Industry
Research Other Leads Goal: Marketing campaigns are to convert leads to customers. Marketing Campaigns Designed for one thing – Lead Generation This Photo by Unknown Author is licensed under CC BY-SA<br>
slide6. Tradeshow Leads eMail Blast Leads Trade Publication Leads Targeted Industry
Research Other Leads Marketing Campaigns Designed for one thing – Lead Generation This Photo by Unknown Author is licensed under CC BY-NC Hand off to company Sales Professionals<br>
slide7. Marketing Campaigns Lead Generation to Customer This Photo by Unknown Author is licensed under CC BY-NC-ND Sales Professional Role is convert Leads to Orders<br>
slide8. 25% of the leads you generate are totally unqualified; they won't ever buy.
50% of the leads generated are qualified; but not ready to buy right now.
25% leads are legitimate and should advance to sales.
Sales reps make 1.3 (average) call attempts before giving up on a lead. Research: Source: 2017 Gleanster Research and Forrester Research studies 2017 Gleanster and Forrester Study<br>
slide9. Current State of Lead Generation Tradeshow Leads eMail Blast Leads Trade Publication Leads Targeted Industry
Research Other Leads This Photo by Unknown Author is licensed under CC BY-NC-ND Research shows only 20% of sales leads are ever followed up. In other words, 80% are lost without trace simply due to lack of follow-up. https://www.marketingdonut.co.uk/sales/sales-techniques-and-negotiations/why-you-must-follow-up-leads<br>
slide10. Lead: Opportunity Generation - The Science
Focuses on capturing contact information for follow-up. A lead has a known data profile and can be counted, scored and traced to specific financial outcomes.
Lead: Demand Generation - The Art
Focuses on shaping perception and creating interest in your product or service. The goal is to engage the largest portion of your audience as possible and make them want what you offer. Opportunity Generation – primary objectives
Know and profile of your audience
Identify quality leads and prospects
Identify specific contact for sales follow-up
Provide qualified leads and pass to sales Demand Generation – primary objectives
Generate interest and demand
Educate and provide insight
Drive brand awareness and perception
Increase audience ‘top of mind’ In-Tangible Tangible Lead Definitions<br>
slide11. Lead: Opportunity Generation - The Science
Focuses on capturing contact information for follow-up. A lead has a known data profile and can be counted, scored and traced to specific financial outcomes.
Lead: Demand Generation - The Art
Focuses on shaping perception and creating interest in your product or service. The goal is to engage the largest portion of your audience as possible and make them want what you offer. Opportunity Generation – primary objectives
Know and profile of your audience
Identify quality leads and prospects
Identify specific contact for sales follow-up
Provide qualified leads and pass to sales Demand Generation – primary objectives
Generate interest and demand
Educate and provide insight
Drive brand awareness and perception
Increase audience ‘top of mind’ In-Tangible Tangible Lead Definitions<br>
slide12. In-Tangible Metrics Web & SEO eMail Marketing Social Media Total Visits
First Time Visitor
Pages Visited
Return Visits
Traffic Source
Click Thru Rate
Time on Page Content Download
Unique Visitors
Pg View /Session
Referral Traffic
Traffic Rate
New Content Map
Heat Map / Web Pg Key Word Perform
SEO Traffic
No. Pageview /Pg
Content Backlog
New Content Views
Avg Time / Content
Top Post Viewed Domain Authority
Link Building Metric
Page Load time
Mobil Ready
Organic Search
Registration
Use of Apps & Tools Twitter Tweets
Twitter Followers
Twitter Share
Facebook Likes
Facebook Views
Facebook Share
Facebook Comment YouTube Likes
YouTube Views
YouTube Shares
Instagram
LinkedIn
Social Interactions
Follower KPI Bad Email Address
Bounce Rate
Delivered Rate
Total Open Rate
Unique Open Rate
Click thru Rate
Unique Click Thru Spam Capture Rate
Unengaged Rate
Forward Rate
List Growth Rate
Opt-out Rate
Subject/Open Rate
Complaint Rate<br>
slide13. Unknown order conversion rate. In-Tangible Metrics Web & SEO eMail Marketing Social Media Total Visits
First Time Visitor
Pages Visited
Return Visits
Traffic Source
Click Thru Rate
Time on Page Content Download
Unique Visitors
Pg View /Session
Referral Traffic
Traffic Rate
New Content Map
Heat Map / Web Pg Domain Authority
Link Building Metric
Page Load time
Mobil Ready
Organic Search
Registration
Use of Apps & Tools Twitter Tweets
Twitter Followers
Twitter Share
Facebook Likes
Facebook Views
Facebook Share
Facebook Comment YouTube Likes
YouTube Views
YouTube Shares
Instagram
LinkedIn
Social Interactions
Follower KPI Unknown order conversion rate.
“Ratio to Sales” metrics can build
ROI metrics to measure campaign effectiveness. Bad Email Address
Bounce Rate
Delivered Rate
Total Open Rate
Unique Open Rate
Click thru Rate
Unique Click Thru Spam Capture Rate
Unengaged Rate
Forward Rate
List Growth Rate
Opt-out Rate
Subject/Open Rate
Complaint Rate Key Word Perform
SEO Traffic
No. Pageview /Pg
Content Backlog
New Content Views
Avg Time / Content
Top Post Viewed In-Tangible<br>
slide14. Research from InsideSales.com shows that
35–50% of sales go to the vendor that responds first. https://www.gartner.com/en/sales-service/insights/challenger-sale The Challenger Sale
Compete and win in a customer-empowered world 2011 by Matthew Dixon & Brent Adamson<br>
slide15. Lead: Opportunity Generation - The Science
Focuses on capturing contact information for follow-up. A lead has a known data profile and can be counted, scored and traced to specific financial outcomes.
Lead: Demand Generation - The Art
Focuses on shaping perception and creating interest in your product or service. The goal is to engage the largest portion of your audience as possible and make them want what you offer. Opportunity Generation – primary objectives
Know and profile of your audience
Identify quality leads and prospects
Identify specific contact for sales follow-up
Provide qualified leads and pass to sales Demand Generation – primary objectives
Generate interest and demand
Educate and provide insight
Drive brand awareness and perception
Increase audience ‘top of mind’ In-Tangible Tangible Lead Definitions<br>
slide16. The Burning Question? How do we Measure Marketing Success? Historically:
Number of New Products Introduced! Number of New Catalogs Produced Number of Sales Promotions and People Trained Number of Distributor Visits and Number Trained Number of OEM Visits and Number Trained Number of New Customers (Count) Number of Sales Dollars Generated (about once every 3 years) But, when the market slowed,
Marketing Budgets were the first to be reduced. Number of New Trade Publications Ads / Articles<br>
slide17. The Burning Question? How do we Measure Marketing Success? “ROI is the most important measurement for marketing.” The best way to measure marketing effectiveness is to calculate the return on investment using three factors: What is the new Customer Lifetime Value? Having these three pieces of data allows us to make smarter marketing decisions and where we should spend money. What is the Cost to Acquire Customer? What Call To Action converted them to a paying customer?<br>
slide18. Customer Lifetime Value (CLV)
Measure the amount of gross profit or sales that is generated from a customer over the entire time they do business with a company. What is the new Customer Lifetime Value? https://www.investopedia.com/articles/personal-finance/053015/how-calculate-roi-marketing-campaign.asp Gross Profit – Marketing Campaign Marketing Campaign Annual Sales – Marketing Campaign Marketing Campaign or Customer Lifetime Value – Marketing Campaign Marketing Campaign Or, measure annual volume of sales that is generated from a customer.<br>
slide19. As a business sales term, cost of acquisition is tied to marketing and sales campaigns because the more streamlined those campaigns become, the lower the customer cost of acquisition will be. Cost to Acquire Customer (CAC)
Cost of acquisition is a term used across business and accounting to describe the total costs incurred when signing a new customer. What is the Cost to Acquire Customer? Sales Activity + Engineering Support + Marketing Campaign # New Customers https://www.investopedia.com/terms/c/costofacquisition.asp Since these costs can be quite high, it is a standard rule of thumb in business that it costs more to sign a new client than to retain a current client.<br>
slide20. Cost to
Acquire a
Customer
(CAC) Monetization (LTV) An out of balance business model Marketing
Cost Sales
Cost Samples
Cost Engineering
Cost What is the Cost to Acquire Customer?<br>
slide21. Cost to
Acquire a
Customer
(CAC) Monetization (LTV) A well balanced business model What is the Cost to Acquire Customer?<br>
slide22. Call To Action (CTA)
Call to Action is a campaign comparison model designed to maximizing spend. https://www.investopedia.com/articles/personal-finance/053015/how-calculate-roi-marketing-campaign.asp VS. Customer Lifetime Value – Tradeshow Marketing Campaigns (All shows) Tradeshow Marketing Campaigns (All shows) Customer Lifetime Value – Web Marketing Campaigns (All) Web Marketing Campaigns (All) Customer Lifetime Value – Publication Marketing Campaigns (All) Publication Marketing Campaigns (All) VS. What Call To Action converts lead to customer?<br>
slide23. Summary In-Tangible Tangible Use ‘Ratio to Sales’ metrics and build
ROI metrics to measure campaign effectiveness. What is the new Customer Lifetime Value? What is the Cost to Acquire Customer? What Call To Action converted them to a paying customer? As you consider or expand your Marketing Metrics,
Metrics should have Orders or Sales in the calculation!<br>
slide24. Questions<br>
slide2. The Burning Question? How do we Measure Marketing Success? Objectives Marketing
Strategy Strategy
Deployment Success
Metrics Strategy
Fine-Tuning<br>
slide3. Marketing Campaigns<br>
slide4. Marketing Campaign Models Three key customer touchpoints<br>
slide5. Tradeshow Leads eMail Blast Leads Trade Publication Leads Targeted Industry
Research Other Leads Goal: Marketing campaigns are to convert leads to customers. Marketing Campaigns Designed for one thing – Lead Generation This Photo by Unknown Author is licensed under CC BY-SA<br>
slide6. Tradeshow Leads eMail Blast Leads Trade Publication Leads Targeted Industry
Research Other Leads Marketing Campaigns Designed for one thing – Lead Generation This Photo by Unknown Author is licensed under CC BY-NC Hand off to company Sales Professionals<br>
slide7. Marketing Campaigns Lead Generation to Customer This Photo by Unknown Author is licensed under CC BY-NC-ND Sales Professional Role is convert Leads to Orders<br>
slide8. 25% of the leads you generate are totally unqualified; they won't ever buy.
50% of the leads generated are qualified; but not ready to buy right now.
25% leads are legitimate and should advance to sales.
Sales reps make 1.3 (average) call attempts before giving up on a lead. Research: Source: 2017 Gleanster Research and Forrester Research studies 2017 Gleanster and Forrester Study<br>
slide9. Current State of Lead Generation Tradeshow Leads eMail Blast Leads Trade Publication Leads Targeted Industry
Research Other Leads This Photo by Unknown Author is licensed under CC BY-NC-ND Research shows only 20% of sales leads are ever followed up. In other words, 80% are lost without trace simply due to lack of follow-up. https://www.marketingdonut.co.uk/sales/sales-techniques-and-negotiations/why-you-must-follow-up-leads<br>
slide10. Lead: Opportunity Generation - The Science
Focuses on capturing contact information for follow-up. A lead has a known data profile and can be counted, scored and traced to specific financial outcomes.
Lead: Demand Generation - The Art
Focuses on shaping perception and creating interest in your product or service. The goal is to engage the largest portion of your audience as possible and make them want what you offer. Opportunity Generation – primary objectives
Know and profile of your audience
Identify quality leads and prospects
Identify specific contact for sales follow-up
Provide qualified leads and pass to sales Demand Generation – primary objectives
Generate interest and demand
Educate and provide insight
Drive brand awareness and perception
Increase audience ‘top of mind’ In-Tangible Tangible Lead Definitions<br>
slide11. Lead: Opportunity Generation - The Science
Focuses on capturing contact information for follow-up. A lead has a known data profile and can be counted, scored and traced to specific financial outcomes.
Lead: Demand Generation - The Art
Focuses on shaping perception and creating interest in your product or service. The goal is to engage the largest portion of your audience as possible and make them want what you offer. Opportunity Generation – primary objectives
Know and profile of your audience
Identify quality leads and prospects
Identify specific contact for sales follow-up
Provide qualified leads and pass to sales Demand Generation – primary objectives
Generate interest and demand
Educate and provide insight
Drive brand awareness and perception
Increase audience ‘top of mind’ In-Tangible Tangible Lead Definitions<br>
slide12. In-Tangible Metrics Web & SEO eMail Marketing Social Media Total Visits
First Time Visitor
Pages Visited
Return Visits
Traffic Source
Click Thru Rate
Time on Page Content Download
Unique Visitors
Pg View /Session
Referral Traffic
Traffic Rate
New Content Map
Heat Map / Web Pg Key Word Perform
SEO Traffic
No. Pageview /Pg
Content Backlog
New Content Views
Avg Time / Content
Top Post Viewed Domain Authority
Link Building Metric
Page Load time
Mobil Ready
Organic Search
Registration
Use of Apps & Tools Twitter Tweets
Twitter Followers
Twitter Share
Facebook Likes
Facebook Views
Facebook Share
Facebook Comment YouTube Likes
YouTube Views
YouTube Shares
Social Interactions
Follower KPI Bad Email Address
Bounce Rate
Delivered Rate
Total Open Rate
Unique Open Rate
Click thru Rate
Unique Click Thru Spam Capture Rate
Unengaged Rate
Forward Rate
List Growth Rate
Opt-out Rate
Subject/Open Rate
Complaint Rate<br>
slide13. Unknown order conversion rate. In-Tangible Metrics Web & SEO eMail Marketing Social Media Total Visits
First Time Visitor
Pages Visited
Return Visits
Traffic Source
Click Thru Rate
Time on Page Content Download
Unique Visitors
Pg View /Session
Referral Traffic
Traffic Rate
New Content Map
Heat Map / Web Pg Domain Authority
Link Building Metric
Page Load time
Mobil Ready
Organic Search
Registration
Use of Apps & Tools Twitter Tweets
Twitter Followers
Twitter Share
Facebook Likes
Facebook Views
Facebook Share
Facebook Comment YouTube Likes
YouTube Views
YouTube Shares
Social Interactions
Follower KPI Unknown order conversion rate.
“Ratio to Sales” metrics can build
ROI metrics to measure campaign effectiveness. Bad Email Address
Bounce Rate
Delivered Rate
Total Open Rate
Unique Open Rate
Click thru Rate
Unique Click Thru Spam Capture Rate
Unengaged Rate
Forward Rate
List Growth Rate
Opt-out Rate
Subject/Open Rate
Complaint Rate Key Word Perform
SEO Traffic
No. Pageview /Pg
Content Backlog
New Content Views
Avg Time / Content
Top Post Viewed In-Tangible<br>
slide14. Research from InsideSales.com shows that
35–50% of sales go to the vendor that responds first. https://www.gartner.com/en/sales-service/insights/challenger-sale The Challenger Sale
Compete and win in a customer-empowered world 2011 by Matthew Dixon & Brent Adamson<br>
slide15. Lead: Opportunity Generation - The Science
Focuses on capturing contact information for follow-up. A lead has a known data profile and can be counted, scored and traced to specific financial outcomes.
Lead: Demand Generation - The Art
Focuses on shaping perception and creating interest in your product or service. The goal is to engage the largest portion of your audience as possible and make them want what you offer. Opportunity Generation – primary objectives
Know and profile of your audience
Identify quality leads and prospects
Identify specific contact for sales follow-up
Provide qualified leads and pass to sales Demand Generation – primary objectives
Generate interest and demand
Educate and provide insight
Drive brand awareness and perception
Increase audience ‘top of mind’ In-Tangible Tangible Lead Definitions<br>
slide16. The Burning Question? How do we Measure Marketing Success? Historically:
Number of New Products Introduced! Number of New Catalogs Produced Number of Sales Promotions and People Trained Number of Distributor Visits and Number Trained Number of OEM Visits and Number Trained Number of New Customers (Count) Number of Sales Dollars Generated (about once every 3 years) But, when the market slowed,
Marketing Budgets were the first to be reduced. Number of New Trade Publications Ads / Articles<br>
slide17. The Burning Question? How do we Measure Marketing Success? “ROI is the most important measurement for marketing.” The best way to measure marketing effectiveness is to calculate the return on investment using three factors: What is the new Customer Lifetime Value? Having these three pieces of data allows us to make smarter marketing decisions and where we should spend money. What is the Cost to Acquire Customer? What Call To Action converted them to a paying customer?<br>
slide18. Customer Lifetime Value (CLV)
Measure the amount of gross profit or sales that is generated from a customer over the entire time they do business with a company. What is the new Customer Lifetime Value? https://www.investopedia.com/articles/personal-finance/053015/how-calculate-roi-marketing-campaign.asp Gross Profit – Marketing Campaign Marketing Campaign Annual Sales – Marketing Campaign Marketing Campaign or Customer Lifetime Value – Marketing Campaign Marketing Campaign Or, measure annual volume of sales that is generated from a customer.<br>
slide19. As a business sales term, cost of acquisition is tied to marketing and sales campaigns because the more streamlined those campaigns become, the lower the customer cost of acquisition will be. Cost to Acquire Customer (CAC)
Cost of acquisition is a term used across business and accounting to describe the total costs incurred when signing a new customer. What is the Cost to Acquire Customer? Sales Activity + Engineering Support + Marketing Campaign # New Customers https://www.investopedia.com/terms/c/costofacquisition.asp Since these costs can be quite high, it is a standard rule of thumb in business that it costs more to sign a new client than to retain a current client.<br>
slide20. Cost to
Acquire a
Customer
(CAC) Monetization (LTV) An out of balance business model Marketing
Cost Sales
Cost Samples
Cost Engineering
Cost What is the Cost to Acquire Customer?<br>
slide21. Cost to
Acquire a
Customer
(CAC) Monetization (LTV) A well balanced business model What is the Cost to Acquire Customer?<br>
slide22. Call To Action (CTA)
Call to Action is a campaign comparison model designed to maximizing spend. https://www.investopedia.com/articles/personal-finance/053015/how-calculate-roi-marketing-campaign.asp VS. Customer Lifetime Value – Tradeshow Marketing Campaigns (All shows) Tradeshow Marketing Campaigns (All shows) Customer Lifetime Value – Web Marketing Campaigns (All) Web Marketing Campaigns (All) Customer Lifetime Value – Publication Marketing Campaigns (All) Publication Marketing Campaigns (All) VS. What Call To Action converts lead to customer?<br>
slide23. Summary In-Tangible Tangible Use ‘Ratio to Sales’ metrics and build
ROI metrics to measure campaign effectiveness. What is the new Customer Lifetime Value? What is the Cost to Acquire Customer? What Call To Action converted them to a paying customer? As you consider or expand your Marketing Metrics,
Metrics should have Orders or Sales in the calculation!<br>
slide24. Questions<br>