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WEBINAR Measuring Isn’t Managing: B2B Marketing Performance Demands Alignment With Explicit Paths To Revenue. Allison Snow, Senior Analyst. June 13, 2017. Call in at 10:55 a.m. Eastern time. Start your engines. Today, we will share a vision of marketing performance management. That’s it.
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WEBINARMeasuring Isn’t Managing:B2B Marketing Performance Demands Alignment With Explicit Paths To Revenue Allison Snow, Senior Analyst June 13, 2017. Call in at 10:55 a.m. Eastern time
Today, we will share a vision of marketing performance management. That’s it.
Agenda • The brief backstory • Marketing alignment to revenue and its implications • Marketing’s legacy threatens to eclipse its potential • Measuring isn’t managing • What to expect going forward
The brief backstory MARKETING NOW OWNS MOST OF THE BUYING CYCLE • 74% of business buyers told us they found buying from a website more convenient, and 59% said they prefer not to interact with a salesperson.* • Marketers nurture prospects for weeks or months before they turn into qualified sales opportunities, so it is critical to know how marketing performs at interim stages. • This nurturing takes place over many channels, and channel proliferation creates massive amounts of information. • Concerns about efficiency heighten demand for accountability. *Source: Scale Your B2B Customer Obsession With A Go-To-Customer Strategy Forrester report
Agenda • The brief backstory • Marketing alignment to revenue and its implications • Marketing’s legacy threatens to eclipse its potential • Measuring isn’t managing • What to expect going forward
84% of B2B CMOs report that their goals align with revenue targets. Source: Forrester’s Q4 2015 Forrester/Heidrick & Struggles Global Evolved CMO/CCO Online Survey
B2B marketers are focused on revenue Source: Forrester’s Q4 2015 Forrester/Heidrick & Struggles Global Evolved CMO/CCO Online Survey
Significant challenges exist Source: Forrester’s Q4 2015 International B2B Marketing Budget And Spending Online Survey
Agenda • The brief backstory • Marketing alignment to revenue and its implications • Marketing’s legacy threatens to eclipse its potential • Measuring isn’t managing • What to expect going forward
The old rules of marketing can prevent progress MARKETING LEGACY INFRASTRUCTURE BUILT TO SUPPORT YESTERDAY’S INITIATIVES • Articulating “why we measure” is difficult across the board. • Existing measurement infrastructure doesn’t support management. • Stakeholders’ expectations are overblown and undermanaged. • Decision makers call for irrelevant metrics. • Metrics are confined to a funnel.
Agenda • The brief backstory • Marketing alignment to revenue and its implications • Marketing’s legacy threatens to eclipse its potential • Measuring isn’t managing • What to expect going forward
Measuring isn’t managing • Managing is, first and foremost, about prioritization. • Marketers over-report, in many cases, drowning out the metrics that need increased analysis. • “Reports” don’t consider other factors (e.g., sales effectiveness and the competitive profile of the portfolio) that affect revenue performance. • Excessive challenges remain in linking marketing activities to revenue.
Measurement versus management Source: Vendor Landscape: New Technologies Make B2B Marketing Performance Management A Reality Forrester report
Agenda • The brief backstory • Marketing alignment to revenue and its implications • Legacy roles of marketing and prioritization • Measuring isn’t managing • What to expect going forward
It’s about to get interesting TOPICS ON THE PERFORMANCE MANAGEMENT AGENDA 2017 • Explicit paths to revenue • Supporting decision making • Defined sales stages • The customer life cycle • Operating by the new rules • Marketing performance management levers • Metrics categories
Explicit paths to revenue ALIGNMENT TO REVENUE DEMANDS CORRELATIVE ALIGNMENT TO REVENUE PATHS • This is about organizational buy-in, negotiation, and prioritization. • Marketers need alignment to prioritize the building and execution of programs. • Marketers need alignment to determine which metrics they capture and which they expose.
Support decision making INSIGHTS-DRIVEN BUSINESSES REQUIRE INSIGHTS-DRIVEN MARKETING • Insights-driven firms are 39% more likely to report YOY revenue growth of 15% or more.* • Insights-driven firms will grow at least 8x faster between 2015 and 2020 than global GDP.† • Business’ aspirations to be insights-driven will feed decision makers’ appetites for information. *Source: What You Need To Go From Data Rich To Insights Driven Forrester report †Source: The Insights-Driven Business Forrester report
Defined sales stages DON’T CALL IT A COMEBACK • Named stages, with agreed upon definitions, are the bedrock of a shared vocabulary between marketing and sales. • Shared definitions are essential for basic lead scoring, advanced lead routing, and more. • They capture the business rules that govern how and when you acknowledge a prospect’s advancement from one stage to another.
The customer life cycle MEANINGFUL JOURNEY MILESTONES FROM THE CUSTOMER PERSPECTIVE • Marketers predominantly enable measurement to serve the needs of customer acquisition. • A closed sale is not the end of the customer journey as far as the customer is concerned. • Marketing needs to increase its insights into post-sale engagement.
Operating by the new rules NEW RULES TURN OLD RULES UPSIDE DOWN • Measure to improve value, not “prove value.” • Support the C-suite rather than request its support. • Become a partner to sales, not a cheerleader. • Share stories instead of dashboards. • Use attribution data to support continuous optimization, not claim credit. • Recognize that chaos is an indicator of poor planning and lack of alignment.
Marketing performance management levers THE DIALS WE CAN TURN TO OPTIMIZE MARKETING PERFORMANCE MANAGEMENT • Attribution • Ownership • Organization • Operations • Strategy • Process • Technology • Lead visibility
Metrics categories MEASURE MARKETING IMPACT ON REVENUE, PROFIT, AND CUSTOMER GROWTH • Volume • Value • Velocity • Effectiveness • Efficiency • + Engagement Source: Metrics That Matter For B2B Marketers Forrester report
Kicking this off together • Establish sales stages as measurement points in a process, not as goals in themselves. • We measure to get better, so baseline your starting position. • Review your performance report insights — what (and whose) decisions are you enabling? • Change the conversation from activities and outputs to outcomes.
Recommended reading • Build Capabilities For Measurement Success • Evaluate Your Marketing Performance Measurement Maturity Forrester report • Fuel High-Performance Marketing With Modern Measurement Mechanics Forrester report • Measure These Five Things To Continuously Improve Revenue Performance Forrester report • Vendor Landscape: New Technologies Make B2B Marketing Performance Management A Reality Forrester report
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Allison Snow +1 617-613-6154 asnow@forrester.com