Measuring Marketing Effectiveness

April 19, 2012

Mathematical calculator buttons with ruler by  Horia Varlan @ FlickrIf before marketers had the challenging job of gathering data to analyze campaign effectiveness, now the opposite might be true. Email marketing, marketing automation, web analytics, CRM, and the myriad of software now permeating marketing organizations gives us more data than we can process in a timely fashion.

A recent survey by CMO.com shows that fewer than 20% of marketing respondents have full confidence in what should be fundamental abilities, including measuring overall campaign effectiveness, how to allocate budget with ROI in mind, and communicating performance up to c-level executives.

“The lack of confidence results from a perception that there is simply too much data and too many channels out there, making it difficult to capture and measure all relevant data.” – CMO.com

Understanding Marketing Analytics

A recent post on the Marketing Automation Software Guide Blog titled “Marketing Analytics vs. Website Analytics”  does a good job at separating two commonly mistaken data sets. On one hand you have page views, click paths, bounce rates, and all the nice stats Google Analytics gives you for free. But, as the article argues, “in marketing analytics systems, data is integrated in a way that enables you to see a direct relationship between channels“. And this is key to understanding how to measure marketing effectiveness.

Unless you can step back from the data deluge, it will be difficult to assess exactly what to do.

“There are literally hundreds of marketing metrics to choose from, and almost all of them measure something of value. The problem is that most of them relate very little to the metrics that concern a CFO, CEO and board member.”

Another consideration involves who you are reporting to. When analyzing results from your marketing efforts you have different stakeholders asking different kinds of questions. The quote above is from a Marketo whitepaper, The Definitive Guide to Marketing Metrics and Analytics, which I have reviewed before. And it is spot on. Different questions require different data sets.

So your first question shouldn’t be “what do I measure?” but, instead, “what question am I answering?“. Do you agree?

Advertisements

Marketing Automation is More Than Technology

June 1, 2011

A new research study by Sirius Decisions, “Calculating the Return on Marketing Automation“, sponsored by Marketo talks about the different levels of companies implementing marketing automation platforms (or MAP, as they call it).

“Companies using technology alone to solve their demand creation issues may actually experience negative return where it matters most”

The report breaks down companies into three segments:

  1. No Marketing Automation, and no processes
  2. Marketing Automation and wither no or weak processes
  3. Marketing Automation with average processes

Although talking about processes is not new, what I liked is that instead of just stating the obvious (no process won’t make the technology work) they try to quantify and answer the more important question of How much does a well defined process really contribute towards your overall marketing automation efforts?

Increasing Response Rates

From the report, it seems the key critical element that is impacted the most by marketing technology when it comes to automating campaign response, nurturing, and scoring your leads is the increase in response rates.

The best way to think about it is to imagine the traditional funnel. As you move from one stage to the next (inquiries, leads, qualified leads, etc.) there are only two ways to impact the outcome, either you get more inquiries or you increase the number going from one stage to the next.

According to Sirius, Marketing Automation technology paired with good processes can yield 4x to 5x the number of closed deals. The magic relies on the higher conversion rates throughout the sales cycle. Is not about getting more leads or more inquiries, is about getting the right ones and improving the odds of closing a deal at each stage.

It’s About Content and Processes

But how are processes helping make sure the system works? Here’s the intersting part, because anyone can implement technology to automate what goes out to customers and prospects. The pairing of processes means more than ensuring emails go out when they should, it takes care of ensuring the right message is sent to the right person at the right time.

And when the process includes both sales and marketing working together on definitions, on content strategy, and qualification criteria companies see higher response rates overall. As the report states:

With a handoff process in place, sales now accepts and processes more than 58percent of MQLs; the higher quality of these leads in turn yield a third conversion rate of roughly 49 percent to opportunity, and an increased close rate of a bit more than 23 percent.

Adding technology without processes may make you feel better at first, but will only serve to highlight the problems you always had. The key is to rethink your approach and use technology to leverage your processes, not the other way around.


%d bloggers like this: