ROI Rage: Tying KPIs to Marketing Strategy and Tactics

Ian Lurie

CEO Portent, Inc @portentint

DEALING WITH ROI RAGE Tying KPIs to Marketing Strategy and Tactics

Speaker Photo

(2.5” Square)

@PORTENTINT

My company: Portent, Inc Me, on twitter: @portentint

@PORTENTINT

http://portent.co/roirage

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THIS IS ABOUT WHAT’S POSSIBLE

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4 THINGS ABOUT ME

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I MAJORED IN HISTORY

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I SWEAR TALK FAST

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I LOVE THESE ANIMALS

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I’VE GOT ISSUES

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EXPLODING HEAD SYNDROME

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IT’S A TUMOR

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IT’S YOUR RELATIONSHIP W/ YOUR

INNER SELF

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we might want to do some content

promotion and retargeting…

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ok, but what’s the ROI?

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write more white papers!

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but… but…

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BUDGET COMMON SENSE

(MAGNIFIED 1000X)

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oy

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EXPLODING HEAD SYNDROME

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O R AGE

IR

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top of funnel

bottom of funnel

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strategy

tactics

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assists

last click

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WE WANT THIS

CRM SITE

BEHAVIOR

TACTIC

GOAL

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WE GET THIS

CRM SITE

BEHAVIOR

TACTIC

GOAL

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IT’S IMPOSSIBLE DOABLE

CRM SITE

BEHAVIOR

TACTIC

GOAL

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CAPYBARA THERAPY, INC.

and how did that make you feel?

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BASIC

VALUATION

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HOW DO YOU KNOW WHAT A CAMPAIGN IS WORTH?

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DO THE MATH

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VALUE CUSTOMERS

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VALUE LEADS

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VALUE VISITORS

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CALCULATE ROI

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THE FORMULA

c = customer value s = lead to sale conversion rate i = visitor to lead conversion rate lead value = c * s visitor value = c * s * i

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VALUE CUSTOMERS

Revenue: $200,000 20,000 unique visitors 200 leads 20 customers c = $10,000

c = customer value s = lead to sale conversion rate i = visitor to lead conversion rate

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VALUE LEADS

c = $10,000 s = 10% i = 1% lead value = c * s = $1,000

c = customer value s = lead to sale conversion rate i = visitor to lead conversion rate

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VALUE VISITORS

c = $10,000 s = 10% i = 1% lead value = c * s = $1,000 visitor value = c * s * i = $10

c = customer value s = lead to sale conversion rate i = visitor to lead conversion rate

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‘TRUE’ VISITOR VALUE

margin = 20% visitor = $2

c = customer value s = lead to sale conversion rate i = visitor to lead conversion rate

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VALUING A CAMPAIGN

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HBR CAMPAIGN

$50,000 budget

c = $10,000 s = 10% i = 1%

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HBR CAMPAIGN

$50,000 budget 250,000 impressions

c = $10,000 s = 10% i = 1%

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HBR CAMPAIGN

$50,000 budget 250,000 impressions 4% clickthru

c = $10,000 s = 10% i = 1%

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HBR CAMPAIGN

$50,000 budget 250,000 impressions 4% clickthru 10,000 visitors

c = $10,000 s = 10% i = 1%

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HBR CAMPAIGN

$50,000 budget 250,000 impressions 4% clickthru 10,000 visitors $100,000 * 20% margin

c = $10,000 s = 10% i = 1%

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HBR CAMPAIGN

$50,000 budget 250,000 impressions 4% clickthru 10,000 visitors $100,000 * 20% margin $20,000

c = $10,000 s = 10% i = 1%

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HBR CAMPAIGN

2:5 ROI

nope

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PROGRAMMATIC CAMPAIGN

$10,000

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PROGRAMMATIC CAMPAIGN

$10,000 250,000 impressions

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PROGRAMMATIC CAMPAIGN

$10,000 250,000 impressions 4% clickthru

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PROGRAMMATIC CAMPAIGN

$10,000 250,000 impressions 4% clickthru 10,000 visitors

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PROGRAMMATIC CAMPAIGN

$10,000 250,000 impressions 4% clickthru 10,000 visitors $100,000 * 20% margin

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PROGRAMMATIC CAMPAIGN

$10,000 250,000 impressions 4% clickthru 10,000 visitors $100,000 * 20% margin $20,000

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PROGRAMMATIC CAMPAIGN

2:1 ROI

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boom baby!!!

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HANDY-DANDY CALCULATOR http://portent.co/click-worth

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TEST SCENARIOS

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BUT IT GETS A LOT MORE COMPLICATED

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GETTING

REAL

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WHAT ABOUT CONTENT?

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social content retarget ppc lead

CONTENT IS RARELY THE ‘LAST CLICK’

Most stakeholders believe the last click

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triple the ppc budget!!!

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REMAIN CALM

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social content retarget ppc lead

CONTENT TRIGGERS BEHAVIORS

Visitor sees value

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social content retarget ppc lead

CONTENT STARTS THE PROCESS

Retargeting gently reminds them

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social content retarget ppc lead

CONTENT STARTS THE PROCESS

They remember when they search

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social content retarget ppc lead

CONTENT STARTS THE PROCESS

Poof. They’re a lead.

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HOW DO WE VALUE THAT?

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VALUE BEHAVIORS

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MEASURE BEHAVIORS

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Import this report: http://portent.co/pi-behavior

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REPORT IS FOR GA, BUT YOU CAN DO THE SAME ON OTHER PLATFORMS

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Average visitor converts 2.29%

LOOK AT TIME ON SITE

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25s+ are 3x more likely to convert

LOOK AT TIME ON SITE

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LET’S GET MORE OF THOSE, SHALL WE?

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Average visitor converts 5.68% worth $2, remember

HOW ABOUT SEGMENTS?

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Marketing nerds 30% more likely to convert

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ALSO MORE PLEASE

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Shared URLs

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do you realize what

this means?!!!

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we can connect behavior to

conversions!

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not just clicks and views.

behavior!!!!

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if content changes behavior, and we can

measure behavior value…

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we can measure content

value!!!

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25s+ are 3x more likely to convert

BACK TO THIS

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avg > 25s

CONVERSION RATES

0.00%

5.00%

10.00%

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hang on. this is just correlation.

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MAYBE. IT’S ONE HECK OF A HINT, THOUGH.

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IF OUR CONTENT CAN ATTRACT MORE 25s + VISITS

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THEN IT’S ADDING VALUE

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avg > 25s

CONVERSION RATES

0.00%

5.00%

10.00%

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TWO LAYERS

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LAYER 1: FUDGE THE NUMBERS

SERIOUSLY?

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D

‘FAKES’ THE CLOSED LOOP

CRM SITE

BEHAVIOR

TACTIC

GOAL

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Assume average = $2

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3x more likely, so worth $6

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avg > 25s $0.00

$2.00

$4.00

$6.00

$8.00

$4

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CONTENT ATTRACTS 1,000 MORE 25s+ VISITS GENERATES $4000.00 IN VALUE

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CONTENT BUDGET: $20,000 MARKETING BUDGET: $20,000 3,000 leads/year increase >25s visits 10% 300 more leads 300 * $1,000 = $300,000 growth

CONTENT CAMPAIGN

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CONTENT CAMPAIGN

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it’s only an assist. You can’t attribute it all!

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FAIR ENOUGH. 50% ASSIST = $150,000 CONTRIBUTED

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HIGH FIVE YOU NERDS

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GOOD COMPARATIVE TOOL HELPS PRIORITIZE

OFTEN MORE THAN ENOUGH

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MAY LEAD TO EMBARRASSMENT DOESN’T REALLY PREDICT ROI

CORRELATION≠CAUSATION

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LAYER 2: CLOSE THE LOOP

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100% CLOSED-LOOP ANALYTICS

CRM SITE

BEHAVIOR

TACTIC

GOAL

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IT’S A THING

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100% CLOSED-LOOP ANALYTICS

CRM SITE ANALYTICS

COOKIE SENT TO…

COOKIE PASSED BACK TO…

GOAL

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TRACK WEB VISIT VALUE AT THE INDIVIDUAL LEVEL

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Match up with HubSpot lead

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http://portent.co/gahub

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GET MORE GRANULAR

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GET MORE GRANULAR

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HOLY #@)($* ARE YOU @!*$$!

KIDDING ME?!!!

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i am pumped

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GARBAGE IN, GARBAGE OUT

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RESOURCE INTENSIVE

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BUT…

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BONUS ROUND

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EXTRACTING GOALS FROM UNWILLING STAKEHOLDERS

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NO GOALS?!

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“GOAL = .1% MORE”

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“THAT’S NUTS!”

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“WHY?”

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“IT’S NOT ENOUGH GROWTH”

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“OK, HOW ABOUT 1000% MORE”

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“THAT’S NUTS!”

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“HOW ABOUT 10% MORE”

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AND SO ON

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THE ‘WHY NOT’ TECHNIQUE

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CONTENT BUDGET: $20,000 MARKETING BUDGET: $20,000

CONTENT CAMPAIGN

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IF THIS GENERATES FOUR CUSTOMERS

IT BREAKS EVEN

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IF THIS ASSISTS 50% TO EIGHT SALES IT BREAKS EVEN

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LOW RISK HIGH POTENTIAL

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WHY NOT?!!!

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Marketing nerds 30% more likely to convert

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TARGETED SOCIAL CAMPAIGN $500 3 million visitors/year 3,000 leads/year increase marketing nerd audience 10% 30 more marketing nerds 2 more leads = $2,000 growth

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IF THIS GENERATES TWO MARKETING NERD LEADS IT BREAKS EVEN

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ZERO RISK ??? POTENTIAL

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WHY NOT?!!!

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THE SOMEWHAT DISAPPOINTING

FINISH

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THIS IS NOT A BATTLE

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THE ‘WHY NOT’ TECHNIQUE

IT MAY BE UNEXPLORED TERRITORY

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IT IS ALL ABOUT INCREMENTAL IMPROVEMENT

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ANY PROGRESS TOWARDS THIS HELPS

CRM SITE

BEHAVIOR

TACTIC

GOAL

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THIS IS ABOUT WHAT’S POSSIBLE

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try it. visualize fur.

Ian Lurie @portentint www.portent.com

http://portent.co/roirage

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