Measure Marketing's Influence on Revenue With Attribution Models

© Copyright 2014 The Pedowitz Group. All Rights Reserved
Measure Marketing’s Influence on
Revenue With Attribution Models

2
The Pedowitz Group 2014 Confidential
Your Presenters
Kevin Joyce
VP Marketing Strategy
The Pedowitz Group
Cory Vander Jagt
Director, Product Marketing
GoodData

3
What You Will Learn
§  Lay the foundation for scalable, reliable, repeatable revenue attribution
§  Understand the different types of revenue attribution models
§  Use your revenue attribution models to optimize Marketing investments

4
Strategic Partnership
§  Cloud based, open analytics
platform
§  Analytics for Sales, Marketing
and Social data
§  Full service Revenue Marketing
Agency
§  Transforms Marketing from a
cost to a revenue center

5
Revenue Marketing Journey Maturity Stages
Minimal Revenue Impact
Revenue Maximized
§  Implemented Email platform
§  Tactical, one off emails,
batch and blast
§  Cold calling following email
tactics
§  Little to no alignment
between Sales and
Marketing
Lead Generation
§  Integrated full featured
Marketing Automation and
CRM – Agility and
ownership
§  Defined Buyer Journey
§  Digital Body Language and
nurture
§  Close alignment of Sales
and Marketing
Demand Generation
§  Systems are optimized –
Agility and ownership
§  People and processes are
optimized
§  RPS – Repeatable,
Predictable, Scalable
Revenue impact from
Marketing
§  Synergy with Sales
Revenue Marketing
Traditional
§  Marketing focused on brand
building and impressions
§  Make it pretty department -
“Pens, mugs, and events”
§  Marketing is not a line of
business
Metrics
¨  # of “leads” sent to Sales
¨  Cost per lead
Metrics
¨  Closed Loop Reporting
¨  Portfolio Funnel Mgmt.
Metrics
¨  ROI
¨  Forecasting
Metrics
¨  Measured on costs
¨  Measured on activities

6
Analytics Competency

7
Revenue Marketing Analytics Service

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Revenue Marketing Analytics Service
§  Cloud Based Marketing Business Intelligence Service
¨  Connectors For Marketo, Eloqua, Google Analytics,
Facebook, Twitter, Salesforce and more..
¨  Out of the box - 12 dashboards and up to 55 Marketing
and Sales reports
§  Monthly Engagement with Revenue Marketing Analyst
§  Revenue Marketing Analytics Assessment Workshop
§  Start reporting in a matter of weeks

9
9
What is Marketing Attribution?

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B2B Marketing Attribution – Lead Source
§  Pros:
¨  Had the advantage of at least indicating Marketing Sourced Leads
¨  Very easy to implement
§  Cons:
¨  Opportunities often attached to subsequent Account Contacts – “Sales Prospecting”
¨  Confusion as to the source: PPC Ad, or Gated Content, or Webinar
¨  Generally just used to link Marketing to NEW prospects
¨  Ignores the concept that Marketing sources Accounts, not just leads
¨  Vastly understates the INFLUENCE of Marketing on Revenue
§  Lead Source is not the same as “First Touch Attribution”

11
B2B Marketing Campaign Attribution – True ROI
Calculate an ROI for every Marketing program
§  Pros
¨  Good relative measure of individual programs – correlation to success
§  Cons
¨  Requires accurate allocation and summation of all costs and revenues
¨  Requires setting an end date for gathering revenues and costs
¨  Ignores other influences on revenue success
¨  Can be many months or years before true ROI is known in B2B

Some firms attempt to measure “Return” in terms of SQLs, MQLs, or Opportunities
§  Shortens the period of time required to measure “Return”

12
Marketing Attribution Ideal – Marketing Influence
Begin
Buyer
Journey
Make Decision
Search
Engines
Link to
Chat
Receive
Email
Research
Service
Value Select
Service
Research
Products/
Vendors
Build
Short
List Receive
Value
Gain
Confidence
Receive
Newsletter
Sales
Promotion
Explore
Competitor
options
Receive
Industry WP
Receive
Newsletter
Receive
Reward
Read
Testimonials
Email
Incentive
Acquisition LoyaltyConsideration RetentionConversion
Search Websites Social Live Person MobileEmail@
Identify
business
need
Paid Ads
Increase
Services
Show all of the Marketing activity…
¨  With all of the contacts associated, with all of the revenue in a given quarter
Summarize it by activity type and when it happened:
¨  Weight the various Marketing activities - some more heavily (by time or type)
Pros
¨  Shows ALL Marketing influence on revenue
¨  Shows Marketing influence on new and existing customers

13
Marketing Attribution Ideal
§  Cons:
1.  Connecting the dots between contacts, leads, campaigns and opportunities can
be difficult
2.  Figuring out the right model to attribute revenue to campaigns and programs can
be a daunting task
3.  Interpreting the results and deciding on the best course of action requires a
Marketing analytics analyst

§  Con #1 is solved with effective Marketing BI solutions
§  aka GoodData/TPG Revenue Marketing Analytics Solution
§  Con #2 and #3 is something all firms have to grapple with

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Poll Question
§  What is your primary mechanism for attributing Marketing to revenue?
1.  None
2.  Lead source
3.  Marketing Automation Analytics
4.  CRM Campaign Reporting
5.  Marketing Business Intelligence Platform

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15
How to Get Started?

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#1 Define Your Lead Funnel Stages and KPIs
Added
Progressed
Balance
Avg. Age
351
70
15431
50 Days
35
34
17
2 days
32
37
127
14 days
16
17
35
2 days
11
10
70
56 days
5
-
-
-
2
2
129
65 days
1
-
-
-
Conversion
10%
90%
50%
66%
49%
40%
50%
Lists Web Social EventsSearch
Raw
BDM Accepted Lead
MQL
Inquiry Re-Market
MA Qualified Lead (MAQL)
SAL
SQL
Opportunity
Won
Sales BDM
Junk,
Disqualified

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#2 Connect Campaigns to Revenue
§  Utilize the Campaign and Contact Role in your CRM and synch data from Marketing System
§  Leverage Marketing BI system to connect the dots: Campaigns to Contacts to Accounts to
Opportunities to Revenue

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Types of Marketing Attribution

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First Touch Revenue Attribution
Newsle&er
Sign
up

100%

Download

Asset

0%

A&end

Webinar

0%
Opportunity

§  100% revenue credit given to the first campaign of which a Lead/Contact was a
"responded" member
§  Lead Source is similar, but not the same

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First Touch Revenue Attribution Example
§  Top 10 highest-revenue generating campaigns by Campaign Type and Amount
from the "First-Touch Campaign Attribution" perspective.
§  Business Rule: First campaign response must be within seven days of Lead/
Contact created date

21
Last Touch Revenue Attribution
Newsle&er

Sign
up

0%

Download

Asset

0%

A&end
Webinar

100%
Opportunity

§  100% revenue credit given to the last campaign of which a Lead/Contact was ever
a "responded" member before being converted to an Opportunity
§  Simple, but suspect approach

22
Last Touch Revenue Attribution Example
§  Top 10 highest-revenue generating campaigns by Campaign Type and Amount
from the "Last-Touch Campaign Attribution" perspective
§  The last campaign response must be within seven days prior to the Opportunity
created date

23
Multi Touch – Even Weight Revenue Attribution
Newsle&er
Sign
up

33%

Download
Asset

33%

A&end
Webinar

33%
Opportunity

§  Equally-credits all Marketing touches which the Lead/Contact was ever a
"responded" member
§  Very fair, may overstate the value of some Marketing activities
§  Requires consideration of frequency and recency of some activities

24
Multi Touch – Even Weight Revenue Attribution

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Influencing your Campaign and Content

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Multi Touch – Custom Weighting
Opportunity

Newsle&er

10%

Download
Asset

30%

A&end
Webinar

60%

§  Custom attribution weighting based on asset type, buying process or time decay
§  Requires additional setup and complexity for most marketers not using RMA

27
Multi Touch – Before Opportunity
Newsle&er
Sign
up

33%

Download
Asset

33%

A&end
Webinar

33%
Opportunity

§  Equally-credits all campaigns of which the Lead/Contact was ever a "responded"
member before being converted to an Opportunity
§  Ignores Marketing influence once Sales is driving the opportunity

28
Multi Touch – After Opportunity
Product
Trial

33%

Download
Asset

33%

A&end
Webinar

33%
Opportunity

§  Equally-credits all campaigns of which the contact was ever a "responded"
member only after the Opportunity was created
§  Isolated Marketing influence on the Sales pipeline

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A Vision of the Future of Attribution

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A Vision of the Future of Attribution
Program type
Buying Cycle

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Summary
1.  Define your lead funnel stages and KPIs
2.  Connect campaigns to revenue in CRM and Marketing Automation
3.  Utilize the appropriate attribution model(s) for your buying process
4.  Configure your reporting system for the revenue attribution or utilize RMA solution
5.  Review on a quarterly basis and adjust the model(s) as needed

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Questions or Comments?
Kevin Joyce
VP Marketing Strategy
kevin@pedowitzgroup.com
Cory Vander Jagt
Director, Product Marketing
cvj@gooddata.com

33
Learn More
Follow Us
@revenuemarketer
@gooddata

Free Revenue Marketing Analytics Trial
bit.ly/GDTrial-Mktg

Get In Touch
sales@pedowitzgroup.com

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Thank You!

Measure Marketing's Influence on Revenue With Attribution Models

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