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Cmo got marketing roi - prove it

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Cmo got marketing roi - prove it

  1. 1. EB8213 TM Got ROI? Prove It! How Top Companies Keep Pace in an Always-on World Marketing Operations Manager Series
  2. 2. 2 MOVING TO THE FOREFRONT OF MARKETING MARKETING.TERADATA.COM Marketing today must be accountable — and not just to produce a number of campaigns, communication materials, or website visits. Today, marketers must provide a variety of measurements, roll up reports to show progress, and demonstrate real ROI (return on investment) and specifically ROMI (return on marketing investment). This responsibility falls on Marketing Operations. You need to prove ROMI to the C-suite and all the way up to the board level. If you can’t, the conversations won’t be pleasant and the questions won’t get easier. The problem is that proving any type of ROI or ROMI is new ground for marketers. For many, it’s their biggest headache. In fact, a 2013 survey by Teradata found that “75 percent of marketers who attempt to calculate ROI report some kind of problem.”1 Measurable Marketing 1 2013 Teradata Data-Driven Marketing Survey, Global 75%OF MARKETERS WHO ATTEMPT TO CALCULATE ROI REPORT SOME KIND OF PROBLEM
  3. 3. 3 MOVING TO THE FOREFRONT OF MARKETING MARKETING.TERADATA.COM Top Four Problems Marketers Face in Proving ROI
  4. 4. 4 MOVING TO THE FOREFRONT OF MARKETING MARKETING.TERADATA.COM Solution: Marketing and IT need to strengthen their alliance in order to prove their value together to the entire organization. Start by analyzing how each department affects the customer: often the barrier between the two stems from a fundamental misunderstanding of the value the other brings. Marketing channels are more fragmented and complex than ever before. Not long ago you could count the go-to-market channels on one hand: print, broadcast, point-of-sale, and outdoor. Today, there is a plethora of channels and a new channel on the way every day, it seems. The issue for marketers is that customers move in and out across these diverse channels. This makes it difficult to see individual customers and can make reliably tracing the path to purchase nearly impossible. Solution: The first step toward extracting ROI across multiple channels is to eliminate silos and ensure that there is access to all of the data. Integrating information from online channels with those offline can be complex, but it is critical to accurately calculating ROI. Understanding what happens within marketing programs and tying it to ROI requires data and information — and that means technology. While it’s been widely noted that Marketing is receiving increasing portions of technology budgets,2 it still typically falls to IT to implement and integrate the solution. That can be a problem. According to the 2015 Teradata Global Data- Driven Marketing Survey, 84% of companies are actively pursuing a more strategic partnership between Marketing and IT.3 Without a strategic alliance between IT and Marketing, organizations often struggle to achieve the integration and insight into the variety of systems they need to prove ROI. 1 Fragmented Channels 2 Marketing & IT Alignment 2 http://www.forbes.com/sites/lisaarthur/2012/02/08/five- yearsfrom-now-cmos-will-spend-more-on-it-than-cios-do/ 3 Teradata 2015 Global Data-Driven Marketing Survey
  5. 5. 5 MOVING TO THE FOREFRONT OF MARKETING MARKETING.TERADATA.COM Solution: Integrate all of the data into a single view. This is critical and there is not a workaround. If you want an accurate picture of ROI, it must be done. Even though marketers are often early adopters of digital channels, that doesn’t mean they have the technology and experience required to effectively integrate, measure and analyze this new generation of data at an enterprise level. Unfortunately, that’s often the expectation within the organization — that new channels and the data they create will magically lead to the information that proves their value. The reality is that it’s never that simple. When expectations don’t align with reality it creates internal frustration and doubt. Solution: With all of the news and hype about what new channels can do, it’s often up to the marketer to educate and inform the rest of the organization where the company currently stands and the steps they need to take to move forward. Poor data integration can be the biggest barrier to ROI calculation. For this reason, gaining a holistic view of your data is the fourth and most critical step toward proving ROI. Without a clear view across your company, you will be unable to consolidate the data necessary to link results to your investments. It’s been said that you can’t manage what you don’t measure. And you can’t measure what you don’t see. The right marketing tools combine online and offline information to increase visibility and automate the measurement process. Ultimately, the proof marketers are looking for is in the data. The analytics provide the transparency that allows you to demonstrate the impact of your campaigns. 4 Visibility Into Data3 Setting Digital Expectations
  6. 6. 6 MOVING TO THE FOREFRONT OF MARKETING MARKETING.TERADATA.COM In the end, all marketing must be measurable. “A key first step marketers can take, regardless of industry or size, is to align every marketing effort and dollar with its associated business outcomes. This first step will go a long way toward being able to connect marketing investments with business value,” explains Laura Patterson, president and co-founder of VisionEdge Marketing. Steps to Proving ROI
  7. 7. 7 MOVING TO THE FOREFRONT OF MARKETING MARKETING.TERADATA.COM B2C marketers have historically allocated a large percent of their marketing dollars to win the hearts and minds of customers — not to drive direct ROI. It’s a new responsibility, and many haven’t been equipped with the tools to address it. Here are the critical steps to success: Steps to Proving It – B2C 1 Eliminate data silos. 2 Employ performance dashboards that deliver a deep and accurate view of spend. 3 Identify and refine the metrics that provide the most insight into the value of your campaign. 4 Look carefully at integrated campaigns to extrapolate the contributions of all channels, specifically social media, which aren’t always readily apparent.
  8. 8. 8 MOVING TO THE FOREFRONT OF MARKETING MARKETING.TERADATA.COM B2B marketers and the complicated purchase cycle often require a long-term view but are generally ahead of their B2C counterparts in this area. However, tracking ROI beyond email campaign results and SEO returns will require planning and persistence. Critical steps include: Steps to Proving It – B2B 1 Eliminate data silos. 2 View the process as a journey, start tactically and plan to proceed incrementally. 3 Use early, smaller measurement success as a foundation for bolder approaches later. 4 Be patient and realize that mastering techniques to prove ROI is not something done in a single quarter. 5 Note important discoveries along the way that will drive innovation in your marketing and deliver business value.
  9. 9. 9 MOVING TO THE FOREFRONT OF MARKETING MARKETING.TERADATA.COM Marketers have always known that what they did created real value for their organizations. But it was nearly impossible to prove with any certainty. For that reason, marketing was often undervalued, treated as a cost center, or worse. But times have changed. Now the technology is available to accurately tie ROI to marketing spend. It starts with integrated data. It takes work and often a new way of thinking. But it’s a bright, new day for marketing: you can prove ROI. Embrace Change
  10. 10. 10 MOVING TO THE FOREFRONT OF MARKETING MARKETING.TERADATA.COM TM 10000 Innovation Drive, Dayton, OH 45342    Marketing.Teradata.com Teradata and the Teradata logo are registered trademarks of Teradata Corporation and/or its affiliates in the U.S. and worldwide. Teradata continually improves products as new technologies and components become available. Teradata, therefore, reserves the right to change specifications without prior notice. All features, functions, and operations described herein may not be marketed in all parts of the world. Consult your Teradata representative or Marketing.Teradata.com for more information. Copyright © 2015 by Teradata Corporation    All Rights Reserved.    Produced in U.S.A. 11.15 EB8260

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