[Industry Average Metrics] July 13, 2012 [Motorola Solutions Canada, Inc.] | Industry Average Metrics |2012 1 INDUSTRY AVERAGE METRICS FOR MARKETING CAMPAIGNS Written by Derek Arcuri, Enterprise Sales Intern Motorola Solutions Canada, Inc. July 13, 2012
For the purpose of determining industry benchmarks of following rates of numerous marketing campaigns.
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[Industry Average Metrics] July 13, 2012
[Motorola Solutions Canada, Inc.] | Industry Average Metrics |2012 1
INDUSTRY AVERAGE METRICS FOR
MARKETING CAMPAIGNS
Written by Derek Arcuri,
Enterprise Sales Intern
Motorola Solutions Canada, Inc.
July 13, 2012
[Industry Average Metrics] July 13, 2012
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MARKET RESEARCH: INDUSTRY AVERAGE METRICS
Executive Summary: For the purposes of determining Industry Benchmarks, research has been conducted to
determine industry average open rates, response rates, opportunity generation rates etc. (see table below) for
marketing campaigns in which Motorola Solutions has either implemented or is under consideration. This
paper predominately consists of quantitative data and little qualitative data. Due to inestimable variables that
influence the metrics, judgment should always be used when consulting this data. This paper is sourced using
MLA citation.
Objective: Determine industry average metrics for various marketing campaigns. Below is the guide breakdown
3.5% - 5% lead rate = 8 - 14 qualified leads (240-280 X 3.5%-5% = 8-14)
25% close rate on qualified leads = 2 - 3.5 deals closed per month on a $50k - $300k investment.
PRINT AND BANNER MARKETING
A study has been conducted at the Rochester Institute of Technology to measure the visit and response rates
using personalized URLs sent to recipients using direct mail. (Brown, 2009)
The sample size included a random selection of 670 cross-media campaigns across 27 vertical markets.
Results: For the 670 campaigns analyzed, the overall average and median response rates are as followed:
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Rates Visit Rate Response Rate
Mean 5.10% 3.28%
Median 1.71% 0.92%
(Brown, 2009)
Visit Percent Response Percent
Low High Low High
4.4% 5.8% 2.7% 3.9%
95% confidence interval
Visit rate: the percentage of total number of recipients who visited the personalized URL sent to them via the
campaign.
Response rate: the percent of total recipients who submitted their info upon visiting the personalized URL.
Median: the middle number when sorted in a numerically ascending list.
Interpretation: Results for 95% of campaigns will fall within this range. (Brown, 2009)
The graph below summarizes the various visits and response rates by vertical market industry revealed by
Rochester Institute of Technology.
Vertical Market Visit Rates Response Rates
Insurance 13.88% 11.85%
Manufacturing 13.20% 10.70%
Retail 8.48% 6.74%
Non-for-Profit 7.69% 74.52%
Other trades and services 7.08% 4.18%
In the last few years, customized, personalized marketing campaigns have been posting strong results
compared with traditional, static campaign styles. Regardless of vertical market or business descriptive, well-
designed and well-executed personalized marketing campaigns demonstrate their ability to outpace the
competition. (Brown, 2009)
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CONTENT PUBLISHING
Twitter is the most popular social media channel for content marketers. Every social media channel is seeing
increased adoption by 15-20%. Article posting and social media (excluding blogs) are the most popular tactics
and are currently used by 79% of B2B marketers (Pulizzi, 2011)
SEARCH ENGINE OPTIMIZATION
Paid search had an average cost per click of $3.79, with a 3.81% conversion rate. The conversion rate (after click) of internet display advertisements was slightly higher at 4.43%. (DMA Releases 2010 Response Rate Trend Report, 2010)
The open rates of Application Briefs, Whitepapers, Spec Sheets etc. are depended on the medium of how they
are delivered to the recipient; i.e. Search Engine Optimization, email marketing or social media vehicle. John
Moore from Sirius Decision writes:
“Below are the median (most cited) response rates for the tactics that Sirius Decision tracks:
white papers: 3%
banner ads: 1%
webcasts: 5%
e-mail: 3%
direct mail: 2%
These are aggregations of disparate numbers that depend on various factors such as targeting and
segmentation, messaging, prospect vs. customer, single vs. multi-touch campaigns etc.” (Moore, 2012)
Consumption metrics, sharing metrics, lead metrics and sales metrics are used to track the success of white
papers, spec sheets and case studies. Consequently, a white paper would likely have a consumption ratio,
sharing and lead metrics, but not sales metrics because it cannot be directly tied to a sale. A case study might
have consumption ratio and sales metrics, but not the other two (Pulizzi, 2011)
On average, 3% of SEO website visitors complete a registration form on the webpage. (Forward to a Colleague,
2009)
GENERAL CLOSE RATES
The minimum acceptable close rate for leads provided to sales in a complex selling situation (long sales cycle
and multiple decision-makers) 4.3%, based on 100,000 raw leads, across about 50 companies in various
segments from the tech industry from the last 10 years. (McDade, 2010) In a typical sales situation with long
sales cycles in a saturated market, there are often 3 suspects to 1 prospect, 3 prospects to 1 qualified
opportunity, and 3 qualified opportunities to 1 win (McDade, 2010).
According to a Profitworks’ study, the Technology industry benchmark close rate is 40% (Keller, 2012)
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CONCLUSION:
Every successful marketing campaign has a positive correlation to the organization’s profitability. The slope of
that correlation depends on many variables that may yield or hinder the success of the organization.
Email campaigns are the dominate marketing campaign amongst enterprises. Larger enterprises with stronger
mindshare will typically have a higher open rate. The email’s content, among other variables, depict whether
the close rate is favourable for an organization seeking a direct sale. Canadian enterprises must abide by
Canadian Spam laws, prohibiting unsolicited emails or SMS to recipients that have not opted to receive them.
Mobile marketing campaigns are seeing an increased adoption due to superior response rates. Accounting for
Canada’s anti-spam law, SMS marketing campaigns will see a higher response rate because the recipient has
opted to receive them and thus is expecting it.
Responses for a direct mail marketing campaign is contingent on what the recipient is asked to do. Thus far,
direct mail is the most expensive campaign but may not be the most expensive per lead. Depending on the
scenario, the high customer generation rate may offset the marketing cost. We see in the example on page four
and five that the return on investment is positive.
Telephone marketing amongst businesses yield a higher conversation rate than consumer telemarketing. While
some argue that it is the most cost-effective way to yield a direct sale, a lead generation is contingent on the
scenario.
Print marketing has many approaches to tracking metrics. It is challenging to track the number of your target
market who has viewed your banner. The study on page six tracked the response metrics by sending parcels of
print banners to recipients that are then asked to visit a personalized URL. The study did not state what
incentivized the recipients to visit the URLs, yet the incentive is a considerable variable that can skew results.
More popular amongst B2C businesses, content publishing is increasing in adoption because of trend towards
leveraging a social media vehicle to gain market traction. The value that the content brings to the reader and
target audience is critical to the success of the campaign. Search engine optimization is a low cost approach to
market a product and service. Given that e-business is a saturated market, it is often emphasized that
unconventional content that augments value, is essential to win your target audience’s attention.
In conclusion, the data in this paper is subjective and serves as a benchmark and is intended for Employees of
Motorola solutions’ Canadian enterprise team.
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APPENDIX A
(Gospe, 2012)
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APPENDIX B
Reference: Eric Hogan from Motorola Solutions
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APPENDIX C
Reference: Eric Hogan from Motorola Solutions
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APPENDIX D
(Customer Experience Matrix, 2012)
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APPENDIX E
Reference: Eric Hogan from Motorola Solutions
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APPENDIX F
(Email Campaign Volumes Surge, Open Rates Stronger, 2012)
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APPENDIX G
(Marketing Research Fact Sheet: Media Response Rates, 2009)
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References
Brown, Marnie. "The Response Rates of Personalized Cross-Media Marketing Campaigns." Rochester Institute of Technology. N.p., 2009. Web. 12 July 2012. <http://printinthemix.com/research/show/80>.
"Canada's Anti-Spam Legislation." Government of Canada. N.p., 30 Nov. 2011. Web. 12 July 2012. <http://fightspam.gc.ca/eic/site/030.nsf/eng/home>.
"The Challenge of Open Rates in B2b Email Marketing." CRM Software Blog. N.p., 18 Jan. 2012. Web. 12 July 2012. <http://www.crmsoftwareblog.com/2012/01/the-challenge-of-open-rates-in-b2b-email-marketing/>.
"Email Campaign Volumes Surge, Open Rates Stronger." MarketingProfs. N.p., 17 Apr. 2012. Web. 12 July 2012. <http://www.marketingprofs.com/charts/2012/7657/email-campaign-volumes-surge-open-rates-stronger>.
"Forward to a Colleague." Lead Gen Overhaul: 4 Strategies to Boost Response Rates, Reduce Cost-per-Lead. N.p., 08 Oct. 2009. Web. 12 July 2012. <http://www.marketingsherpa.com/article.php?ident=31384>.
Gospe, Mary. "2012 B2B Email Response Rates and Best Practices." 2012 B2B Email Response Rates and Best Practices. N.p., Jan. 2012. Web. 12 July 2012. <http://kickstartall.com/documents/KS_Articles/EmailMarketingTrendsResponseRates_January2012.html>.
Keller, Chris R. "How To Increase Your Sales Closing Rate - A Look At Why People Don't Buy And What You Can Do About It." Profitworks. N.p., 03 Mar. 2012. Web. 12 July 2012. <http://www.profitworks.ca/blog/317-how-to-increase-your-sales-closing-rate-a-look-at-why-people-dont-buy-and-what-you-can-do-about-it>.
Keller, Chris R. "Small Business Direct Mail." Profit Works. N.p., 21 Mar. 2011. Web. 12 July 2012. <http://www.profitworks.ca/blog/169-small-business-direct-mail>.
Lang, Chris. "What Is the Average Conversion Rate for an Outbound Telemarketing Campaign?" Quora. N.p., 11 Apr. 2011. Web. 13 July 2012. <http://www.quora.com/What-is-the-average-conversion-rate-for-an-outbound-telemarketing-campaign>.
"Marketing Research Fact Sheet:Media Response Rates." Canada Post. N.p., Jan. 2009. Web. 12 July 2012. <http://www.canadapost.ca/cpo/mc/assets/pdf/business/media_en.pdf>.
McDade, Dan. "ViewPoint | The Truth About Lead Generation." What Is the Minimum Acceptable Close Rate on Leads Provided to Sales? N.p., 19 Mar. 2010. Web. 12 July 2012. <http://blog.pointclear.com/blog/bid/26678/What-is-the-Minimum-Acceptable-Close-Rate-on-Leads-Provided-to-Sales>.
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"Mobile Marketing for B2B Firms." Strategic Growth Concepts. N.p., n.d. Web. 12 July 2012. <http://www.strategicgrowthconcepts.com/marketing/mobile-marketing/mobile-marketing-for-b2b-firms.html>.
Moore, John. "Industry Average SEO and White Papers." Message to the author. 10 July 2012. E-mail.
Sewell, Howard J. "What Response Rate Should I Expect From My Campaign?" The Point. N.p., 7 Oct. 2010. Web. 12 July 2012. <http://spearmarketing.com/blog/what-response-rate-should-i-expect-from-my-campaign/>.