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Communicating Marketing’s Impact and ROI to the C-Suite
Julie Schwartz, Senior Vice PresidentResearch and Thought Leadership, ITSMA
2015 Measuring and Communicating Marketing Impact
Julie SchwartzSenior Vice President Research and Thought LeadershipITSMA
Abbreviated Summary | July 2015
This abbreviated summary highlights some of the most significant findings of ITSMA’s Measuring and Communicating Marketing Impact. A more in-depth analysis can be found in the full report http://www.itsma.com/research/itsma-online-survey-communicating-marketings-impact-roi-c-suite/
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What is most responsible for the
change in marketing context?
Marketing’s stature in the organization has changed dramatically
Marketing is a strategic function and a core part of the
executive leadership team
45%
Today(N=67)
10%Three Years Ago
(N=59)
“New marketing technologies
enable marketing to track and report
activity and outcomes”
“Recognition that buyer behavior has changed and
marketing needs to own pipeline”
“A change in leadership influenced the growth of the
marketing department beyond the singular function of
lead generation”
“Demand for all areas of business to show value; visibility of
analytics and ‘Big Data’ at the C-suite level”
“New CMO and realizing the importance of differentiation
and leverage that only marketing can provide for
the next phase of growthand staying relevant”
“A movement toward ROI-based marketing
or marketing that impacts the business. Not just
design/branding-based marketing”
Source: ITSMA Survey: Measuring and Communicating Marketing Impact, April 2015
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Source: ITSMA Survey: Measuring and Communicating Marketing Impact, April 2015 % of Respondents (N~66)
Despite having new marketing technologies and tools that enable us
to track and measure marketing activity like
never before,
of marketers still struggle to prove business impact.
64%
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To build trust, start with data integrity and then go beyond the data: What is your story, who are you telling it to, and how?
Which types of data do your organization’s executives request most?
Customers Markets
Contacts Whom
Marketing is Nurturing
Sales-Accepted
LeadsMarketing Programs
The Competition
CEO
CFO/Finance
BU or Division leaders (P&L
owners)
Sales
Note: Multiple responses allowed. % of Respondents (N~54)Source: ITSMA Survey: Measuring and Communicating Marketing Impact, April 2015
High
Medium
Low
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How do you know what YOUR executives want to hear?
Ask them!
What is the business strategy?
How do you want marketing to contribute to that strategy?
How will you evaluate our
contribution?
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Marketers who communicate outcome-based data build trust among the C-suite
Marketing is a strategic function
Counting Effort
TrackingCosts
Counting Results
Measuring Efficiency
Reporting Outcomes
AnticipatingOutcomes
Forecasting Outcomes
• Articles/Blog Posts
• Datasheets Created
• Press Releases Written
• Events Produced
• Campaigns Launched
• Budget Category Expenditures
• Media Mentions
• Trade Show Leads
• WebsiteRegistrations
• Downloads
• New Contacts
• Click Through Rates
• Leads Generated
• Campaign ROI
• Cost per Lead
• Cost per Sale
• Program to Total Spend Ratio
• Program to People Ratio
• Market Share
• Customer Lifetime Value
• Conversion Rates
• Pipeline Contribution
• Total ContractValue
• Brand Awareness/Preference
• Share of Wallet
• Adoption Rates
• Customer Sat/Loyalty
• Rate of Growth to Market Growth Ratio
• Propensity to Purchase
• CustomerRetention/ Renewal
• Likelihood to Defect
• Marketing Mix Optimization
ACTIVITY OUTCOMESOutput-
Based Operational
Business Impact
Leading-Indicators
PredictiveActivity Metrics
Cost
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Marketing’s ultimate objective is to build business value, not quarterly bookings
Your metrics framework
needs to balance three goals
Revenue/Contribution
to SalesRelationships
Reputation/Brand
Perception
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Source: ITSMA Survey: Measuring and Communicating Marketing Impact, April 2015
Most marketers are measuring
ROI quarter-by-quarter;
they are measuring leads,not business outcomes
of marketers use 70% 57%
Focusing too much
is a mistake
on
to measure ROI
Number of Sales-Qualified
Leads
only track ROI over a period of
3 months or less
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Linking marketing activity to business impact is a multiyear journey requiring process and behavior change
Build trust in marketing and marketing’s data Develop processes and supporting infrastructure to ensure data integrity
Implement a marketing metrics framework based on business outcomes
Use your data to tell a good story
Foster a culture of accountability Educate marketers on how they personally contribute to business goals
Set performance targets for every marketing program and campaign and measure against them
Create business value in addition to campaigns and leads Demand generation and the pipeline are important; but so are customer
lifetime value, brand equity, and propensity to defect
Take an experimental approach based on hypothesis testing and start building predictive models
To get executive leaders to embrace marketing as a key
driver of business performance:
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Study Methodology
Source: ITSMA Survey: Measuring and Communicating Marketing Impact, April 2015
Participating Companies (partial list)
Amdocs Aranca Atos Autodesk Avanade Avaya Aviat
Networks Baufest Black & Veatch Capgemini CDW CGI Ciena Cisco Cognizant CPqD Cyient Limited
Datapipe Deloitte Diebold Dimension
Data ECI
Healthcare Partners
EMC EXTOL
International EY FIS Global Fujitsu Genpact Giffhorn HCL
Technologies
Hitachi Data Systems
HP IBM Juniper
Networks KPMG Netmagic
Solution Neudesic NIIT Tech Online
Business Systems
Persistent Systems
Polycom Protiviti
PwC Rolta Salesforce SBS Group Schneider
Electric ServiceSource SunGard Symantec Tektronix TeleTracking
Technologies UBM Tech Unisys VMware Xerox
Web-based Survey
Survey invitations were emailed during April 2015 to select senior marketing executives in the ITSMA community
67Senior marketers completed the survey
The Data Was Analyzed by:
Ability to Use Data to Measure and Communicate Marketing’s ImpactQualitative
Interviews
12Marketing leaders were interviewed by ITSMA
Back of the pack. We track marketing activity, but rely on anecdotal info to show impact
15
52
31
2
Average. We regularly collect and communicate marketing data
Above average. We use marketing data to optimize performance
Leading edge. We directly tie marketing activity to business results
Data Savvy
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52%48%
64%36%
68%
15%
12%
5%
8 9 10 96
22
12
24
Lessthan
$50M
$50–99M
$100–249M
$250–499M
$500–999M
$1–4.9B
$5–9.9B
$10B orMore
Respondent DemographicsJob Title
% of Respondents (N=67)Source: ITSMA Survey: Measuring and Communicating Marketing Impact, April 2015
Size of Solutions Business
Type of Company
PhysicalLocation
Industry
Marketing director/ manager
Marketing executive
(CMO, SVP, VP, AVP)
Both products
and services
Primarily services
(10% or less revenue from
products)
25
16
15
13
13
9
8Other technology hardware systems and solutions
Outsourcing (technology/business process)
Telecommunications and networksystems/solutions
Computer systems and solutions
Software solutions
Non-IT professional services/consulting/businessservices
IT professional services/consulting
NorthAmerica
Europe
Asia
South or Central America
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Want to learn more? Here’s what is included in the full study
For More InformationJulie SchwartzSenior Vice PresidentResearch and Thought [email protected] +1-781-862-8500, Ext. 112
Slide
Executive Summary 3
Methodology and Respondent Demographics 25
Detailed Findings 38
Business and Marketing Performance 38
Using Marketing Data 50
Communicating Marketing’s Impact 64
Marketing Dashboards 76
Marketing ROI 89