How To Hold Marketing Accountable For Revenues - PowerPoint PPT Presentation

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How To Hold Marketing Accountable For Revenues

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  1. How To Hold Marketing Accountable For Revenues

  2. How To Hold Marketing Accountable For Revenues Overview • The Current State of Marketing Organizations • Keys To Change The Current State of Marketing • Barriers To Improvement • How Successful Companies Overcome These Challenges

  3. How To Hold Marketing Accountable For Revenues Holding Your Marketing Team Accountable • The Current State of Your Marketing Organizations • Do you currently hold your marketing team accountable for revenue? • Do you involve your marketing team in the planning and setting of business goals and objectives? • Keys To Change The Current State of Your Marketing • Do you clearly state defined expectations of your marketing team? • Do you understand the metrics behind marketing initiatives? • Barriers To Improvement • Have you empowered your marketing team? • Does your marketing team have the tools they need to accomplish the objectives?

  4. How To Hold Marketing Accountable For Revenues The Current State Source: Anderson Analytics ・ Marketing Executives Networking Group (MENG) 
Marketing Trends Report 2010

  5. How To Hold Marketing Accountable For Revenues The Current State: Marketing Team Accountability • 65% of marketers surveyed say CEOs and CFOs are demanding ROI to secure budgets. • 79% indicate a greater need to measure, analyze, and report marketing effectiveness over last year. • Despite this, only 20% of marketers surveyed said the tools and measurement efforts were not budgeted for. Source: Lenskold Group / MarketSphere 2009 Marketing ROI & Measurements Study

  6. How To Hold Marketing Accountable For Revenues The Current State: Marketing Team Accountability • The Current State of Marketing Organizations • Marketing Metrics Are Not Part of Marketing Planning/Budgeting • Rarely Are Marketing Metrics Leveraged In Marketing Functions • Marketing Departments Lack Credibility; No Senior Level Support or Buy-In • Lack of Understanding of Marketing Tools & Systems • Companies that indicated their marketing was highly effective and efficient showed much greater strengths in: • having data, facts, and insight to better guide marketing spending decisions (75% vs. 33%) • using good measurements (69% vs. 30%) • using customer analytics (65% vs. 31%) • and having marketing operations processes to improve the business of marketing (64% vs. 29%) Source: Anderson Analytics ・ Marketing Executives Networking Group (MENG) 
Marketing Trends Report 2010

  7. How To Hold Marketing Accountable For Revenues The Current State: Marketing Team Accountability • Data is a Priority … • 75% of marketers indicated that having data, facts and insights as paramount when making better marketing decisions. • 69% of marketers also noted using good measurements in determining and prioritizing marketing initiatives. Lenskold Group / MarketSphere 2009 Marketing ROI & Measurements Study

  8. How To Hold Marketing Accountable For Revenues The Current State: Marketing Team Accountability • Data is A Priority … • But Budgetary Support for Data is Limited • Only 34% of marketers reported having internal marketing analysts dedicated to help assess marketing performance, but only 7% of their marketing budget was allocated to measurement and analytics • 32% reported 1% to 5% of their budget • 31% reported no budget support for analytics • 22% reported between 6% and 10% Lenskold Group / MarketSphere 2009 Marketing ROI & Measurements Study

  9. How To Hold Marketing Accountable For Revenues Keys to Change Source: Anderson Analytics ・ Marketing Executives Networking Group (MENG) 
Marketing Trends Report 2010

  10. How To Hold Marketing Accountable For Revenues Keys to Change: Understanding Marketing "There are two types of CEOs: Those who know that they don't understand marketing and those who don't know that they don't understand marketing." – Dr. Philip Kotler Dr. Philip Kotler - the S.C. Johnson & Son Distinguished Professor of International Marketing at the Northwestern University Kellogg Graduate School of Management in Chicago.

  11. How To Hold Marketing Accountable For Revenues Keys to Change: Understanding Marketing • Link Marketing Programs to Business Objectives • Define and Understand Data • Connect data, technology and methodology

  12. How To Hold Marketing Accountable For Revenues Does Marketing Have Credibility Across The Company? • Keys to Change: Understanding Marketing What CEOs Want From Marketing • Be prepared with financial analysis • Answers without marketing jargon • Evidence of initiative performance • Options & alternatives • Demonstrate predicted results • Recommendations of what has the best financial return on marketing

  13. How To Hold Marketing Accountable For Revenues • Keys to Change: Holding Your Marketing Team Accountable • Ensure Marketing Metrics are Part of Marketing Planning • Leverage Marketing Metrics in Marketing Functions • Instill Marketing Department Credibility; Senior Level Support • Provide Marketing with Tools & Systems • Connect data through technology and methodology

  14. How To Hold Marketing Accountable For Revenues Barriers to Improvement Source: Anderson Analytics ・ Marketing Executives Networking Group (MENG) 
Marketing Trends Report 2010

  15. How To Hold Marketing Accountable For Revenues Barriers to Improvement: • Challenges Most Organizations Face With Their Marketing Team: • Aligning marketing metrics with business objectives • Empowering your marketing team within the Organization • Balancing brand building & sales conversion • Calculating marketing ROI, reporting & assets • Accessing the right data & bridging data gaps • Setting up the right capabilities with the marketing organization • Developing processes and methodologies to assess and evaluate initiatives against goals

  16. How To Hold Marketing Accountable For Revenues Barriers to Improvement: • Challenges Most Marketing Teams Face: • Access to data • Availability of tools • Limited processes or methodologies • Lack of understanding of the metrics • Inability to use the data to drive marketing decisions • Inability to correlate the data to business objectives

  17. How To Hold Marketing Accountable For Revenues Overcoming the Challenges Source: Anderson Analytics ・ Marketing Executives Networking Group (MENG) 
Marketing Trends Report 2010

  18. How To Hold Marketing Accountable For Revenues #1 - Leverage Customer Data In Marketing Campaigns: The Difference is in the Conversion Rates • Results from researchers at Forrester, Jupiter, Amazon.com and Ovum who analyzed campaign performance when analytics targeted certain consumers -- across multiple industries and channels. Source: “Marketing Analytics to the Rescue: The Next Big Thing?” David J. Santoro, DM Review - DM Direct BI Special Report, February 11, 2003.

  19. What Data Do You Need and Where is the Data? How To Hold Marketing Accountable For Revenues Customers Provide Many Clues and Facts about what they want Preferences Registration Form Profile/Account Settings Demographic Data Psychographic Data Behaviors Web Analytics Transactional Data Email Analytics Incentive Redemption RSS Analytics Mobile Analytics Feedback Reviews Surveys / Polls Feedback Forms Customer Service Customer Analytics Data Engine 19

  20. How To Hold Marketing Accountable For Revenues #2 - Customer Segmentation – The Right Offer, to the Right Person, at the Right Time • Know the audience – “touch” fewer people, fewer times • Collect the clues in a data warehouse • Use the clues to make offers at the right time geared toward the individual’s need or interest • Provide more relevant offers • The difference is use of technology & analytics • Shows up as differences in conversion rates and customer satisfaction • HIGHER Conversion rates: % of people who respond to the offer • HIGHER Customer satisfaction: % of people happy with the company and its products Source: Good vs. Bad Marketing:Analytics to the Rescue, Dr. Dave Schrader, Teradata, Washington, D.C., June 18, 2003

  21. How To Hold Marketing Accountable For Revenues Example: How To Use Customer Segmentation Data New Customer Existing Customer Acquisition Program System Purchaser PPC Target Frequency Dynamic Content Messaging Engine

  22. How To Hold Marketing Accountable For Revenues #3 - Behavior Marketing Is More Effective Than Demographics—Example: Finance Industry • Example: Acquisition Program Based on Behavior • Bank notices a customer behavior: a large deposit, a large withdrawal, a marriage, a drop in interest rates, a CD comes due • Based on the behavior, bank makes an appropriate offer, over the right channel, at the right time: consolidate accounts, refinance a home, etc. • Measure the results • Best campaigns result in 25-60% conversion rates • Customers are happier—“high-touch,” personalized banking services Source: Good vs. Bad Marketing:Analytics to the Rescue, Dr. Dave Schrader, Teradata, Washington, D.C., June 18, 2003

  23. Personalized “Touch” Segmentation How To Hold Marketing Accountable For Revenues Customer Behavior Reviewing website information on mortgage and refinance rates Customer Behavior Regularity & Size of Direct Deposits increases Deliver Customer Centric Messaging provides a personalized experience based on THEIR interests and behaviors. Dynamic Content Messaging Engine Personalized Messaging Refinance opportunities Mortgage rates and programs Existing Customer Promotions Personalized Messaging Consulting services IRAs & Tax-deferred accounts wealth planning tips 23

  24. How To Hold Marketing Accountable For Revenues How To Help Marketing Be Accountable • Require Marketing Metrics as Part of Marketing Planning • Leverage Marketing Metrics in Marketing Functions • Connect Data through Technology and Methodology • Systems & Processes • Establish a set of processes to ensure customer insights are leveraged to make marketing investments • Data driven marketing, leverage customer data • Create better, more effective marketing campaigns

  25. How To Hold Marketing Accountable For Revenues How To Help Marketing To Be Accountable • Senior Level Buy-In • True executive commitment to making it work. • Instill Marketing Department Credibility; Senior Level Support. • Strategic Alignment • Link marketing activities to strategic objectives. • Making Targeted Investments • Hire the right people, with the right skills and give them access to the right technology and data.

  26. How To Hold Marketing Accountable For Revenues A Closing Remark: Marketing can and should be deemed as an investment -- like any core function in any company -- actively collecting customer transactional information and using the data to make smart business decisions. Data + Tools + Process = Incremental Revenues

  27. Thank YouIf you found this PowerPoint helpful, visit our Knowledge Page to view our FREE list of Whitepapers, Articles & Research, and find out when our upcoming Webinars will be happening!http://lorel.com/knowledge.phpWant to jump start your marketing strategy and programs?Lorél Marketing Group can help you get started with a no-costdiscovery meeting that can align your goals with a vision for yoursuccess. Care to learn more? Contact us today:Lorél Marketing GroupEmail: info@lorel.comTelephone: 610-337-2343 Website: www.lorel.com