1 Breaking Down Silos for Breakthrough Results David M. Raab Raab Associates Inc. [email protected] www.raabassociatesinc.com
Raab Marketing Measurement: Breaking Down Silos for Breakthrough Results
Aug 31, 2014
Measuring marketing performance isn't easy, but it's the only way to prove the value of marketing to senior managers and to improve marketing results. This session by consultant David M. Raab shows how to build a complete analytical environment including a formal business model, structured testing process, and integrated technology platform.
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2
Marketing, 2010
3
So Many Choices
-80% -60% -40% -20% 0% 20% 40% 60%
Change in Marketing Budget Allocation in 2009According to US B2B Marketers, by Tactic (% of Respondents)
13%14%15%15%17%
21%23%25%
28%30%31%31%32%34%36%
39%41%42%
47%47%
TV advertisingSponsorships
Outdoor mediaPrint advertising
Tradeshows, conferences (in-person)Radio
Direct mailVirtual trade shows
Online display ads - banners, pop-ups Public relations
Other Web 2.0 media Inside sales/telemarketing
Executive breakfasts, seminars and events Blogs
Discussion forums, social networks or communities E-mail
Webinars, Webcasts Online video, podcasts or rich media
Company Website Search Marketing
Source: MarketingProfs and Forrester Research, 'B-to-B Marketing in 2009: Trends in Strategies and Spending', March 2009
increasedecrease
How do I…• optimize customer
experience?• integrate social
media?• choose the right
technology?
4
Short Answer: Test
Design test
Execute test
Readresults
5
Why Testing Isn’t Enough
• individual tests can’t measure long-term results
• optimal experience is based on interaction of multiple programs
• integrated measurement requires integrated technology
6
Real Answer: Analytical Environment
7
• formal business model
• structured testing process
• integrated technology platform
Analytical Environment: Three Components
Assess resources
Design test
Execute test
Identify Options
Define objectives
Deploy winners
Selectproject
Readresults
Learn and refine
Orders
Marketing
Service
Web
Phone
Media
Web
DataIntegration
MarketingExecution
Marketingdatabase
retaingrowacquire
8
Formal Business Model
• define customer life cycle (=lifetime value components)• identify leverage points within each component• evaluate differences by channel, by customer segment• assess incremental impact of individual programs• compare to past performance, industry benchmarks
retaingrowacquire
9
Formal Business Model: Self-Assessment
Business Modellevel 1 level 2 level 3
marketing value measure
no reporting; capture response
capture response rates and cost/response
measure lifetime value, understand customer flow, relationships among programs
benchmarking no benchmarks
compare vs. own previous performance
compare vs. industry standards, best-in-class
marketing planning
track cost and schedule
set targets based on past results & program goals
measure short- and long-term impacts, actual vs expected
marketing optimization
none; allocate spend based on history
set targets for media mix based on incremental ROI
formal modeling for marketing impact and mix optimization
10
Structured Testing Process
Assess resources
Design test
Execute test
Identify Options
Define objectives
Deploy winners
Selectproject
Readresults
Learn and refine
• careful test selection• standardized test execution• routine deployment • continuous learning
11
Structured Testing Process:Self-Assessment
Testing Processlevel 1 level 2 level 3
test selection select test programs randomly
define program goals by customer lifestage
set lifestage targets and select tests to reach; portfolio approach
test design informal testing
occasional testing, aimed at immediate response
formal plans for all tests, with long-term measures and deployment plans
deployment use outside vendors for new media
hire specialist staff for new media
formal training for new media; organize by customer or product
12
Integrated Technology PlatformOrders
Marketing
Service
Web
Phone
Media
Web
DataIntegration
MarketingExecution
Marketingdatabase
central marketing database, as integrated as possible• individual data for known customers• segment & survey data for mass media, some online• add new data sources as they appear• integrate on multiple keys, not just name/address
13
Integrated Technology PlatformOrders
Marketing
Service
Web
Phone
Media
Web
DataIntegration
MarketingExecution
Marketingdatabase
multi-channel execution platform• coordinated cross-channel treatments• mix of batch and real time programs• dynamic content for cross-channel personalization
14
Integrated Technology Platform:Self-Assessment
Technology Platformlevel 1 level 2 level 3
data management
silos; no central database
marketing database w/ CRM and transactions; no online
integrated online w//offline
execution separate systems for each medium
outbound campaigns from central system
inbound and outbound from same system, including real time online
testing capabilities
none simple a/b response tests
long-term stream tests
15
Benefits of Analytical Environment
• understand current customer experience• highlight key leverage points• systematic testing process• continuous improvement• platform for adding new channels
16
Poll: How would you rate your company’s current ability to manage
cross-channel campaigns?• level 1: every channel is managed separately
• level 2: we compare short-term results across channels, but don’t integrate them operationally
• level 3: we have integrated online and offline channels and measure the long-term impact on customer value of our programs
17
Self-Assessmentlevel 1 level 2 level 3
Technologydata management silos; no central
databasemarketing database w/CRM and transactions; no online
integrated online w//offline
execution separate systems for each medium
outbound campaigns from central system
inbound and outbound from same system, including real time online
testing capabilities none simple a/b response tests long-term stream testsBusiness modelmarketing value measure
no reporting; capture response
capture response rates and cost/response
measure lifetime value, understand customer flow, relationships among programs
benchmarking no benchmarks compare vs. own previous performance
compare vs. industry standards, best-in-class
marketing planning track cost and schedule
set targets based on past results & program goals
measure short- and long-term impacts; compare vs expected results
marketing optimization
none; allocate spend based on history
set targets for media mix based on incremental ROI
formal modeling for marketing impact and mix optimization
Testing Processtest selection select test programs
randomlydefine program goals by customer lifestage
set lifestage targets and select tests to reach; portfolio approach
test design informal testing occasional testing, aimed at immediate response
formal plans for all tests, with long-term measures and deployment plans
deployment use outside vendors for new media
hire specialist staff for new media
formal training for new media; organize by customer or product
18
What About Social Media?
19
1. Social Media Does It All
goals: explain new productawareness of company
create relationshipawareness of capability
credibility as competent vendorquality of service
competitive superioritymedia strengthen relationshipadvertising & PR x xSEM and display x xSEO and Web site x x x x xsocial media x x x x x x x xemail, mail, phone x xWeb events x x xtrade shows x x xnurture email x x x x x xin-person events x x x
retaingrowacquire
20
2. Many Social Media
Social Media used by US Companies, 2009(% of Respondents)
9%
12%
25%
28%
36%
45%
52%
80%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Do not use any
Podcasting
Wikis
Message/bulletin boards
Online video
Blogging
Social networking
Source: University of Massachusetts Dartmouth Center for Marketing Research, "Social Media in 2009 Inc. 500: New Tools & New Trends", November 17, 2009
Also:• photo sharing• reviews/rating• location check-in
21
3. Many Social Media Objectives
Also:• customer support• market research• competitor monitoring
22
Different Social Media for Different Objectives
wikis
photo sharing
location check-in
online video
podcasting
blogging
message boards
reviews/ratings
social networks
Media
cus
tom
er s
uppo
rt
eng
age
cust
omer
s
mon
itor &
resp
ond
mar
ketin
g (le
ad g
en)
awa
rene
ss
eng
age
influ
ence
rs
com
petit
or
mon
itorin
g
mar
ket r
esea
rch
Objectives
x
xxx
xx
xxx
xxx
xxxx
xxxx
xxxxx
xxxxxx
xxxxxxx
xxxxxxxx
23
…Also Different Resource Needs
sta
ff ex
perie
nce
fun
ding
web
ana
lytics
med
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ach
pub
lic in
tere
st
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tom
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ata
Resources
xxxx
xxxxxx
xxxx
xxxxxx
xxxxx
xxxxx
xxxxxx
xxxxx
xxxx
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wikis
photo sharing
location check-in
online video
podcasting
blogging
message boards
reviews/ratings
social networks
Media
24
Match Media to Objectives and
Resources
wikis
photo sharing
location check-in
online video
podcasting
blogging
message boards
reviews/ratings
social networks
Media c
usto
mer
sup
port
eng
age
cust
omer
s
mon
itor &
resp
ond
mar
ketin
g (le
ad g
en)
awa
rene
ss
eng
age
influ
ence
rs
com
petit
or
mon
itorin
g
mar
ket r
esea
rch
Objectives
x
xxx
xx
xxx
xxx
xxxx
xxxx
xxxxx
xxxxxx
xxxxxxx
xxxxxxxx
sta
ff ex
perie
nce
fun
ding
web
ana
lytics
med
ia re
ach
pub
lic in
tere
st
tec
hnol
ogy
cus
tom
er d
ata
Resources
xxxx
xxxxxx
xxxx
xxxxxx
xxxxx
xxxxx
xxxxxx
xxxxx
xxxx
xxxxxxx
Assess resources
Design test
Execute test
Identify Options
Define objectives
Deploy winners
Selectproject
Readresults
Learn and refine
25
Wikis
photo sharing
location check-in
online video
podcasting
blogging
message boards
reviews/ratings
social networks
Media cus
tom
er s
uppo
rt
eng
age
cust
omer
s
mon
itor &
resp
ond
mar
ketin
g (le
ad g
en)
awa
rene
ss
eng
age
influ
ence
rs
com
petit
or
mon
itorin
g
mar
ket r
esea
rch
Objectives
x
xxx
xx
xxx
xxx
xxxx
xxxx
xxxxx
xxxxxx
xxxxxxx
xxxxxxxx
sta
ff ex
perie
nce
fun
ding
web
ana
lytics
med
ia re
ach
pub
lic in
tere
st
tec
hnol
ogy
cus
tom
er d
ata
Resources
xxxx
xxxxxx
xxxx
xxxxxx
xxxxx
xxxxx
xxxxxx
xxxxx
xxxx
xxxxxxx
Assess resources
Design test
Execute test
Identify Options
Define objectives
Deploy winners
Selectproject
Readresults
Learn and refine
Example: Automobile Recall
26
Wikis
photo sharing
location check-in
online video
podcasting
blogging
message boards
reviews/ratings
social networks
Media cus
tom
er s
uppo
rt
eng
age
cust
omer
s
mon
itor &
resp
ond
mar
ketin
g (le
ad g
en)
awa
rene
ss
eng
age
influ
ence
rs
com
petit
or
mon
itorin
g
mar
ket r
esea
rch
Objectives
x
xxx
xx
xxx
xxx
xxxx
xxxx
xxxxx
xxxxxx
xxxxxxx
xxxxxxxx
sta
ff ex
perie
nce
fun
ding
web
ana
lytics
med
ia re
ach
pub
lic in
tere
st
tec
hnol
ogy
cus
tom
er d
ata
Resources
xxxx
xxxxxx
xxxx
xxxxxx
xxxxx
xxxxx
xxxxxx
xxxxx
xxxx
xxxxxxx
Assess resources
Design test
Execute test
Identify Options
Define objectives
Deploy winners
Selectproject
Readresults
Learn and refine
Example: Automobile Recall
27
Wikis
photo sharing
location check-in
online video
podcasting
blogging
message boards
reviews/ratings
social networks
Media cus
tom
er s
uppo
rt
eng
age
cust
omer
s
mon
itor &
resp
ond
mar
ketin
g (le
ad g
en)
awa
rene
ss
eng
age
influ
ence
rs
com
petit
or
mon
itorin
g
mar
ket r
esea
rch
Objectives
x
xxx
xx
xxx
xxx
xxxx
xxxx
xxxxx
xxxxxx
xxxxxxx
xxxxxxxx
sta
ff ex
perie
nce
fun
ding
web
ana
lytics
med
ia re
ach
pub
lic in
tere
st
tec
hnol
ogy
cus
tom
er d
ata
Resources
xxxx
xxxxxx
xxxx
xxxxxx
xxxxx
xxxxx
xxxxxx
xxxxx
xxxx
xxxxxxx
Assess resources
Design test
Execute test
Identify Options
Define objectives
Deploy winners
Selectproject
Readresults
Learn and refine
Example: Automobile Recall
28
Design Test Assess
resources
Design test
Execute test
Identify Options
Define objectives
Deploy winners
Selectproject
Readresults
Learn and refine
Design Issues Automobile Recall• goals monitor & respond,
customer support• metrics Web traffic, sentiment,
offline opinion polls• size &
timeframehuge, on-going
• value brand impact
29
Execute& Read Assess
resources
Design test
Execute test
Identify Options
Define objectives
Deploy winners
Selectproject
Readresults
Learn and refine
Execution Issues Automobile Recall• process definition evolving• training & monitoring experienced staff• external resources as needed• metrics gathering part of platform, external as needed
Evaluation Issues• short vs long term short term: volume, sentiment
long term: attitudes, purchase intent, purchases•often indirect for social media
many ‘lurkers’; measure via offline surveys; track opinion leaders
•link to individuals or segments
group registration, geotargeting, referring sites
30
Deploy& Learn Assess
resources
Design test
Execute test
Identify Options
Define objectives
Deploy winners
Selectproject
Readresults
Learn and refine
Deployment Issues Automobile Recall• scalability human monitoring and response is expensive• content generation user-generated, repurposed press materials• shelf-life short-term project; usually want community• data integration use standard systems; low priority• knowledge transfer use in-house staff from start
Learning Issues• consistent reporting ad hoc project• insights segment results, use of different content & media• adequate budget for routine testing• formal optimization best for stable situations• portfolio approach balance risk/reward, channel mix, long-term strategy
31
Lessons Learned
• analytical environment combines business model, testing and technology platform– platform is the foundation– business model is the framework– testing fills in the details
• all are needed to optimize customer experience
32
Lessons Learned
• structured testing process – match projects to applications and resources– careful test design: goals, metrics, evaluation– use outside resources as necessary
33
Lessons Learned
• social media is difficult, but not impossible– many different kinds of social media; must
pick carefully– measurement and data integration are
especially challenging– structured testing is still the key
34
What Now?
• Don’t Panic– new media are a fraction of total spend– everybody else is learning too
• Make a Plan– assess platform, business model, and test capabilities– set long-term objectives
• Execute– short-term tests for immediate results– long-term changes to build infrastructure
35
Thank You
email: [email protected]: www.raabguide.com
blog: http://customerexperiencematrix.blogspot.com/Twitter: @draab
phone: 914-241-2117
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