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Raab Winning The Marketing Measurement Marathon

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Marketing without measurement like running a marathon in an earthquake -- blindfolded. In this presentation, consultant David Raab offers advice on building an integrated measurement system based on tracking the flow of your customers through the buying process.

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Winning the Marketing Measurement Marathon: a Step-by-Step Approach David M. Raab, Principal Raab Associates, Inc. [email_address] October 14, 2010 Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
Pressures on Marketers ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
Measurement is Important Most Important Concepts: 3 Year Trend source: Anderson Analytics, 2010 Marketing Trends Report Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
Measurement is important, but… …we measure the wrong things What Marketing Is Measuring source: Visionedge Marketing, 2010 Marketing Performance Measurement and Management Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
Measurement is important, but… …we don’t get any better at it Use of ROI Metrics to Assess Marketing Effectiveness source: Lenskold Group, 2010 Lead Generation Marketing ROI Study Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com Does your firm calculate marketing profitability, ROI (return on investment) or a similar financial measure to assess marketing effectiveness? (n = 303, 326, 226) 2008 2009 2010 Yes, we calculate ROI, net present value (NPV) or other profitability metrics for at least some of our marketing campaigns / investments 26% 24% 27% Somewhat, we calculate some financial metrics such as cost per lead and cost per sale but not profitability metrics such as ROI and NPV. 34% 42% 43% No, we use traditional marketing metrics but not financial metrics. 40% 34% 30%
Measurement is important, but… …we spend our money elsewhere Planned Investments in Key Marketing Initiatives source: Accenture Marketing Transformation, Onward and Up (2010) Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
The problem is…everything Barriers to Improvement source: CMG Partners Chadwick Martin Bailey, The Marketing Performance Advantage 2009 Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
Measurement Maturity Model ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
Marketers Need an Integrated Measurement System Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
System Goals ,[object Object],[object Object],[object Object],Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
Purchase Stages Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com anonymous known interested qualified sales ready opportunity proposal sale
Stage-Based Measurement prospect email 60% landing page 20% registration page 20% white paper 100% Webinar 100% demo 70% pricing page 30% forum query 100% clients page 100% Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com anonymous known interested qualified sales ready opportunity proposal sale
Delivery Requirements: Data Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
Delivery Requirements: Stage Definitions Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
Delivery Requirements: Database Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
Delivery Requirements: Projections Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
Delivery Requirements: Testing Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
System Evaluation Checklist ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
Critical Metrics Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com goal metric show value of marketing cohort ROI measure program ROI incremental ROI understand stage results stage statistics forecast revenue by period revenue projections
What Next? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
Summary ,[object Object],[object Object],[object Object],[object Object],Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
Thank You! David M. Raab [email_address] Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com

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Raab Winning The Marketing Measurement Marathon

  • 1. Winning the Marketing Measurement Marathon: a Step-by-Step Approach David M. Raab, Principal Raab Associates, Inc. [email_address] October 14, 2010 Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  • 2. Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  • 3.
  • 4. Measurement is Important Most Important Concepts: 3 Year Trend source: Anderson Analytics, 2010 Marketing Trends Report Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  • 5. Measurement is important, but… …we measure the wrong things What Marketing Is Measuring source: Visionedge Marketing, 2010 Marketing Performance Measurement and Management Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  • 6. Measurement is important, but… …we don’t get any better at it Use of ROI Metrics to Assess Marketing Effectiveness source: Lenskold Group, 2010 Lead Generation Marketing ROI Study Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com Does your firm calculate marketing profitability, ROI (return on investment) or a similar financial measure to assess marketing effectiveness? (n = 303, 326, 226) 2008 2009 2010 Yes, we calculate ROI, net present value (NPV) or other profitability metrics for at least some of our marketing campaigns / investments 26% 24% 27% Somewhat, we calculate some financial metrics such as cost per lead and cost per sale but not profitability metrics such as ROI and NPV. 34% 42% 43% No, we use traditional marketing metrics but not financial metrics. 40% 34% 30%
  • 7. Measurement is important, but… …we spend our money elsewhere Planned Investments in Key Marketing Initiatives source: Accenture Marketing Transformation, Onward and Up (2010) Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  • 8. The problem is…everything Barriers to Improvement source: CMG Partners Chadwick Martin Bailey, The Marketing Performance Advantage 2009 Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  • 9.
  • 10. Marketers Need an Integrated Measurement System Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  • 11.
  • 12. Purchase Stages Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com anonymous known interested qualified sales ready opportunity proposal sale
  • 13. Stage-Based Measurement prospect email 60% landing page 20% registration page 20% white paper 100% Webinar 100% demo 70% pricing page 30% forum query 100% clients page 100% Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com anonymous known interested qualified sales ready opportunity proposal sale
  • 14. Delivery Requirements: Data Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  • 15. Delivery Requirements: Stage Definitions Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  • 16. Delivery Requirements: Database Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  • 17. Delivery Requirements: Projections Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  • 18. Delivery Requirements: Testing Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  • 19.
  • 20. Critical Metrics Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com goal metric show value of marketing cohort ROI measure program ROI incremental ROI understand stage results stage statistics forecast revenue by period revenue projections
  • 21.
  • 22.
  • 23. Thank You! David M. Raab [email_address] Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com