The Modern Marketer's Workshop: Marketing Performance Management

The Modern Marketer’s
Workshop: Marketing
Performance Management
October 18th, 2017
©Heinz Marketing 2017

Housekeeping
• Printed your worksheets?
• Fill them out as we go through the workshop
• Interactivity is highly encouraged (questions, ideas, etc.)
• Send us a note in the chat box!

Presentation Layout

About the speakers
Matt Heinz
President
@HeinzMarketing
matt@heinzmarketing.com
Brian Hansford
Senior Director
@RemarkMarketing
brian@heinzmarketing.com

2017
BrightFunnel
MPM
Workshop
Agenda
The
Climate
• What Marketing Performance Management is and is not
• Why is MPM and Attribution important
• Forces driving MPM
Groundwork
• Benchmarking – current state of pipeline performance
• Marketing Sourced and Influenced Revenue
Planning
• Revenue Goals & KPIs
• Programs and Campaigns
• Budgeting for accountability and success
Turn
Budget into
Revenue
• Understanding Attribution and Influence Models
• Marketing Sourced Revenue
• Content Attribution
Guiding
Future
Performanc
e
• Identify highest performing channels and content
• Focus resources appropriately on opportunities or problems
• MPM and Planning Checklist

The Climate for Marketing
and Attribution
©Heinz Marketing 2017©Heinz Marketing 2017

Let’s
Define
MPM
Marketing performance
management is the systematic
management of marketing resources
and processes to achieve measurable
gain in revenues, while maintaining
quality in customer experience.

A Comprehensive
Process
Project
Management
Budget ROI
Campaign
Performance
Attribution
Forecasting
Models
Channel
Performance
Funnel
Diagnostics &
Benchmarks

Marketing Performance Management is NOT
Just another
reporting tool
Focused on
historical data
only
Vanity metrics
Activity
reporting
About
generating
MQLs
More
marketing
technology
Attribution
only

WHY Marketing Performance Management?
Marketing is the most
strategic role within an
organization.
Marketers at all levels are
under pressure to deliver
and prove business results.
The C-Suite wants to rely
on Marketing to show
where business comes
from and how to pursue
future sales goals.
Facts and data will always
trump guessing and
assumptions
Marketing is the only
function that touches
customers in multiple ways
from pre-inquiry through
post-sale.
More than ever, marketing
technology enables
marketers to capture data
that measures revenue
influence.

Who Uses and Values MPM and Attribution Data?

Executive
• CEO
• CFO
• CSO
• CTO
• CIO
• Investors
• Board of Directors
Sales Team
• Field
• Inside Sales
• Channel
Broader Marketing
• Full Marketing Team
• Corporate, Field, Subs
Customer Success
• Managers
• Team Leads
• Reps
CMO
Strategic MPM &
Attribution

Building C-Suite Credibility with MPM
Focus on revenue performanceImpact
Marketing is the most strategic function in any companyLeadership
Use financial regimen and reliable data to prove revenue
performance
Credibility

Create the MPM Mindset
• A strategic process that measures how demand generation
contributes to overall sales revenues while looking at customer
touch points, campaigns, channels, budget, and timelines.
• MPM evaluates marketing results or output compared against
its objectives and goals.
• The process of tracing each dollar of revenue back to activity
touchpoints that source the revenue opportunity.

• 71.3% of marketing organizations
have increased accountability for
revenue goals
• 61.8% achieve or exceed revenue
goals as a result of increased
marketing accountability and
responsibility
• The #1 ranked success factor for
achieving revenue goals is an
effective marketing and sales
partnership

CMOs must show business impact
Via the CMO Council
• 2016 saw record CMO job loss
• #1 Reason: CMO’s unable to show
business impact
• Critical: Financial impact analytics
“…there’s nothing more necessary
to CMO success and longevity than
having the proof of how marketing
is driving the business forward in a
multiplicity of unique and powerful
ways…”
-Donovan Neale-May, CMO
Council
“Marketers appear to be doing a poor job of quantifying and communicating the business value and financial impact
their campaigns and investments. Less than a quarter of respondents believe they are doing this extremely well or qu
30% nearly are still putting measurement systems in place or have no solution for tracking business outcomes.”

How CEO’s and CFO’s Scrutinize Marketing
1
What are the
revenue
results to-
date?
2
How is budget
and actual spend
tied to current
revenue results?
3
How much will
marketing
contribute to
future revenue?
4
How can past
performance
determine
future revenue
outcomes?
5
What are the
implications of
increasing or
decreasing the
marketing budget?

MPM Starts with Benchmarks

Benchmarking Process
Know where you are to get where you want to be
Accounts that drive the most business
Funnel conversion performance
Process consistency at each stage
Leads volume
Marketing Sourced Revenue
Marketing Influenced Revenue
Sales Driven Revenue
New Business
Repeat Business

Funnel Benchmarking – Conversion Stages
Sales Won, Lost, No
Decision
Identify the opportunity conversion – Opportunity
Revenue
Opportunity
Projected sales number for prospect
Sales Qualified Lead
(SQL)
Depending on the threshold. For BrightFunnel – meeting stage
Sales Accepted Lead
(SAL)
Identify the qualification verification stage – Sales Accepted
Marketing Qualified
Lead (MQL)
Identify the first qualification stage – Marketing Qualified Lead
Marketing Inquiry Identify the first lead identification point - Captured Lead
Anonymous Touch Measure the engagement starting point – Anonymous Touch
Each
transition
and
conversion
stage
presents
opportunitie
s to improve
performance
and process
consistency

Benchmarking from Bottom Up – Conversion Percentages
Opportunit
y
The customer buys the product or service.
Sales Qualified
Lead
Projected sales number for qualified prospect
Sales Accepted
Lead
Identify the qualification verification stage – Sales Qualified
Marketing
Qualified Lead
Identify the first qualification stage – Qualified Lead
Marketing
Inquiry
Identify the first lead identification point - Captured Lead
Anonymous
Touch
Measure the engagement starting point – Anonymous Touch
40%
20-30%
20-30%
25%
7% -10%
Starting Point
Industry Goal Gap

Benchmarking from Bottom Up – Cont.
Opportunity The customer buys the product or service.
Sales
Qualified
Lead
Projected sales number for qualified prospect
Sales
Accepted
Lead
Identify the qualification verification stage – Sales Qualified
Marketing
Qualified
Lead
Identify the first qualification stage – Qualified Lead
Marketing
Inquiry
Identify the first lead identification point - Captured Lead
Anonymous
Touch
Measure the engagement starting point – Anonymous Touch
Current Goal GapTime Req’d

Identify the
Funnel
Strengths and
Weaknesses
(with Data)
Top Funnel Strength & Mid-
Funnel Weakness?
Low Opportunity Win-rate?
Opportunity time to close
too long?
High MQLs and Low
Opportunities?
Non-Marketing Sourced
Revenue Higher than
Sourced?
How many MQLs per Sales
Win?
Are sales processes
consistently followed
between stages?

Causes and
Contributing
Factors
Top Funnel Strength &
Mid-Funnel
Weakness?
Opportunity win-rate?
Opportunity time to
close?
High MQLs and Low
Opportunities?
Non-Marketing
Sourced Revenue
Higher than Sourced?
How many MQLs per
Sales Win?
Are sales processes
consistently followed
between stages?
Outbound email without progressive
nurtures
Add sales enablement. Add deep funnel
content.
Sales enablement. Create new eval tools
and ROI calculators
Re-define MQL threshold. Review SDR
data and process.
Review lead gen and MQL data
Too many MQLs? Not enough? Mid-
funnel breakdown?
Consistent prospecting and opportunity
management? Sales enablement?

Planning, Revenue Goals & KPIs

The Planning Process
Assess the
Current State
1
Objectives,
Timeline,
Goals
2
Program and
Campaign
Strategy
3
Budget
4
Technology &
Data
5
KPI’s
6
Measure &
Adjust
7

What are the Sales and
Revenue Goals?
• How much pipeline needed to hit goals?
• Map the benchmarks against the goals
• What channels will support the pipeline?

Goal Setting

Marketing Programs and Campaign Strategy
• Use the Benchmark data to identify strong and weak points
Full Funnel Marketing
• Sourced Revenue Goals
• Influenced Revenue Goals
Align programs and campaigns to stages to achieve goals
• Offline and Online
• Owned, Paid, Earned
Channels and Content

5 Heavyweight KPIs
1. Percent of Revenue Contribution (sourced)
2. Percent of Pipeline Contribution (influenced)
3. Opportunities Created
4. Revenue Attribution by Channel
5. Pipeline Velocity

Marketing
Sourced
and
Marketing
Influenced
Revenue
Opportunities that are initially
engaged and nurtured via marketing
programs before escalation for sales
follow up. Resurrected opportunities
can be sourced if sales was inactive for
an agreed-to period of time.
Percent
Revenue
Contribution
Opportunities that are engaged via
attributable marketing programs
during an active sales engagement
Percent
Pipeline
Contribution

Channel
Attribution
and
Opportunity
Creation
Attributing revenue back to each
channel that sourced, influenced, and
created the opportunity for a won deal.
Channel
Attribution
Opportunities created from marketing
sourced & influenced leads
Opportunities
Created

Velocity
Pipeline velocity is the measure of
how well your leads are moving
through the sales process, so you
can better predict when your
current leads will convert from
potential sales to actual revenue
you can count on.
V = #Opps x Avg Deal Value xWin%
Length Sales Cycle
Sales Pipeline
Velocity

Wrap Up + Review
• Questions?
• To prepare for tomorrow, you can print these worksheets
• Marketing Sourced Revenue Calculator
• 2018 MPM and Planning Checklist
• Agenda for tomorrow
• Continue discussing Planning and Budgeting
• Measuring to Manage Performance
• Attribution
• Marketing & Sales Alignment
• Future Programs
• Planning for 2018

The Modern Marketer’s
Workshop: Marketing
October 19th, 2017

Planning and Budgeting for Success Continued

Marketing
Sourced
and
Marketing
Influenced
Revenue
• Sourced Revenue
• Opportunities that are initially engaged and
nurtured via marketing programs before
escalation for sales follow up. Resurrected
opportunities can be sourced if sales was
inactive for an agreed-to period of time.
• Influenced Revenue
• Opportunities that are engaged via
attributable marketing programs during an
active sales engagement

Where does your marketing revenue come from?
Marketing Sourced Revenue Marketing Influenced Revenue
Total Revenue Goal $10,000,000
Percentage of Total Goal 30%
Marketing Sourced
Revenue
$3,000,000
Budget Breakdown 40% of demand gen
budget
Primary Objectives New customer
acquisition
Total Revenue Goal $10,000,000
Percentage of Total
Goal
40%
Marketing Influenced
Revenue
$4,000,000
Budget Breakdown 60% of demand gen
budget
Primary Objectives Sales acceleration
*Use the Heinz Marketing Sourced Lead Calculator

Marketing Sourced Lead Worksheet

Measuring to Manage Revenue Performance

Planning to
Measure and
Manage
Performance
• System of Record
• Use Marketing Performance and Attribution
Technologies
• Data management discipline
• Standardization of opportunity stages, channels,
naming, field definitions, and attributes
• Standardize on monthly and quarterly reporting
requirements
• Ensure all stakeholders agree to data attributes and
reporting systems

Common
Attribution
Models
• First Touch
• Last Touch
• First and Last Touch
• Account Based
• Linear - Evenly Weighted
• Predictive Attribution

Attribution credit weighing
example
Stage Name First Touch Lead
Creation
Lead
Nurture
Lead to
Opportunity
Full Funnel Machine
Learning
Custom
First Touch 100% 0% 40% 30% 22.5% 27.54% 20%
Lead Creation 0% 100% 40% 30% 22.5% 27.54% 20%
Opportunity
Creation
0% 0% 0% 30% 22.5% 19.48% 20%
Closed
(Lost,Won)
0% 0% 0% 0% 22.5% 15.45% 20%
Middle
Touches
0% 0% 20% 10% 10% 10% 20%

Attribution credit weighting example with a
$100,000 Sale and 10 touchpoints
Stage Name First Touch Lead
Creation
Lead
Nurture
Lead to
Opportunity
Full Funnel
Event
Weighted
Machine
Learning
Custom
First Touch 100% 0% 40% 30% 22.5% 27.54% 20%
$100,000 $40,000 $30,000 $22,500 $27,540 $20,000
Lead Creation 0% 100% 40% 30% 22.5% 27.54% 20%
$100,000 $40,000 $30,000 $22,500 $27,540 $20,000
Opportunity
Creation
0% 0% 0% 30% 22.5% 19.48% 20%
$30,000 $22,500 $19,480 $20,000
Middle
Touches
0% 0% 20% 10% 10% 10.01% 20%
$20,000 $10,000 $10,000 $10,010 $20,000
Closed
(Lost,Won)
0% 0% 0% 0% 22.5% 15.45% 20%
$22,500 $15,450 $20,000

Campaign Attribution

ABM – Marketing Engaged Accounts
• Visibility into most engaged accounts
• Data enables sales and marketing alignment

Measuring
Campaign
Budget ROI

Anticipate CEO Objections to Attribution
No standardized
KPI’s, reports,
system of record
Bad data
Avoid ‘too good to
be true’ culture
shock
Too much info

Converting Budgets into
Revenue
• Top performing CEO’s have strong financial
backgrounds
• Understanding Attribution
• Trace revenue to activities that sourced
opportunities
• Tells you the ‘why’ behind marketing
contribution
• Understanding Influence
• Activities that influenced revenue bookings
• BOTH are needed

Investing in
Future
Marketing
Programs
Direct budget resources to the best performing
campaigns and channels based on goals.
Experiment and measure success against KPIs.
Budget
Eliminate or cut low performing campaigns and
channels
Eliminate
or cut
Correlate percentage pipeline increase to
percentage of budget investmentCorrelate

Budgeting for Success
• Setting the revenue goals
• Core focus areas to achieve the
goals
• Events
• Customer Marketing
• Channel Programs
• Integrated Programs
• Website
• Content
• Advertising
• Expected ROI outcomes
• Events =
• Customer Marketing =
• Channel Programs =
• Integrated Programs =
• Website =
• Content =
• Advertising =

B2B Marketing Budgets - % of Revenue
• Slow Growth Budget
• 5-8% of revenue
• “Average” Growth Budget
• 10-12%
• High Growth Budget
• 20-30%

Campaign Themes Objectives Channels Content Budget
Power Theme 1
Marketing Sourced Revenue &
Top Funnel Lead Gen
LinkedIn
Website-LP
Tradeshow Event
Content syndication
Video
E-Book
$5,000 content
$10,000 channels
$25,000 events
Rocking Revenue Marketing Sourced Revenue &
Top Funnel Lead Gen
LinkedIn
Website-LP
Workbook $5,000 content
$15,000 channels
Power Theme 2
Awareness-Thought
Leadership
ABM Ad Platform White paper $6,000 content
$7,500 channels
Exec Success
&
Mid-Funnel Nurture
Personalized Email
Retargeting
Buyers Guide
Customer stories
$2,500 content
$7,500 channel
Super Hero
& Opportunity Sales
Acceleration
Personalized email
Personalized video
ROI Calculator
Customer stories
$15,000 content
Customer Gratitude Customer Advocacy Personalized email
Teamwork Sales Enablement Personalized email Sales guide & campaign
messaging

Campaign Themes Objectives Channels Budget Expected Return
Luke Skywalker
Top Funnel Lead Gen
LinkedIn
Website-LP
Tradeshow Event
Content syndication
$5,000 content
$10,000 channels
$25,000 events
X% Marketing Sourced
X% Marketing Influenced
The Force – Thought
Leadership
Top Funnel Lead Gen
LinkedIn
Website-LP
$5,000 content
$15,000 channels
X-Wing Aircover Marketing Sourced Revenue &
Awareness-Thought
Leadership
ABM Ad Platform $6,000 content
$7,500 channels
Millennium Falcon Marketing Influenced Revenue
&
Mid-Funnel Nurture
Personalized Email
Retargeting
$2,500 content
$7,500 channel
Chewbaca Marketing Influenced Revenue
& Opportunity Sales
Acceleration
Personalized email
Personalized video
$15,000 content X% Marketing Sourced
C3PO – Serving the
Master
Customer Advocacy Personalized email
R2D2 Sales Enablement Personalized email

Marketing & Sales Alignment
• Attribution models MUST benefit both Sales and Marketing
• Educate Sales how marketing sources and influences revenue
• Shared Goals: Marketing accountability to revenue performance
• Don’t jump into buying marketing technology and reporting without a plan.
• Attribution: Use facts and data
• Customer touchpoints through funnel – track consistently
* Benchmark Example: Marketing delivers 30% of new customer business

Closing Recommendations
Strategic
thinking and
engagement
1
Accept
Revenue
Accountabilit
y
2
Financial
regimen –
partner with
your finance
exec
3
Revenue
metrics matter
the most
4
Strong data
management
policy and
practice
5
Use the right
technologies
6
Transparent
Comms
7

2018 Planning and MPM Checklist (page 1)
Category Stakeholders Description Benefits Organizational
Readiness & Required
Actions
Strategic Alignment CMO, CFO, CSO The most critical part of
successful MPM. Cross
functional departments accept
their roles in sourcing,
influencing and driving revenue
Teams are focused on shared
revenue goals and roles for
achieving success. Transparency
also builds trust and teamwork.
Review 2017 Performance CMO Review the current year’s
revenue performance. Only use
vanity metrics as research
footnotes to support overall
data.
Provides insights on the
starting point to compare
performance in the new year.
Benchmark Funnel Performance CEO, CMO, CSO Deep data dive into reviewing
the full funnel from Inquiry,
MQL, SQL, Opportunity and
Close. Benchmarks show
performance at each stage and
identify areas to optimize and
improve in campaigns, channels,
training, sales process
consistency across reps.
Focus resources where they are
most needed. Significant
revenue lift can occur by
improving sales process and
deep funnel nurture campaigns.
2018 Revenue Goals CEO, CMO, CFO, CSO Marketing agrees to Sourced
and Influenced Revenue
Cross organizational alignment
and focused effort with revenue
goals.

Category Stakeholders Description Benefits Organizational Readiness
& Required Actions
2018 Campaign Strategy CMO Plan the campaigns that will source
and influence revenue with full
funnel marketing. 2017
performance metrics help guide
the best areas to invest in and the
best performing channels.
Full funnel marketing sources and
accelerates revenue. Marketing
isn’t just focused on lead
generation. Sales can accelerate
with deep funnel marketing
campaigns.
Budget Planning – Invest for
Success
CMO and CFO The financial model that shows
where sourced revenue will come
from.
A financial model puts the CMO
and CFO on the same page to help
plan for the best areas to invest or
cut budgets.
Organizational Expectations CMO, CSO, C-Suite, Department
Heads
Communicate where marketing is
accountable and focused as well as
areas not covered. Set the
guardrails to prevent mission creep.
Reinforces alignment by setting
expectations where marketing
resources are focused for revenue
success. Prevents the inevitable
scope creep that often falls to
marketing.
Data Management CMO Reliable measurements require
accurate data.
Critical for effective MPM.
Capture accurate data to provide
reliable and credible insights
Systems, Tools, Process CMO A central system of record is the
single source of truth. All
technologies with relevant data
must integrate with the SOR. MPM
and attribution are essential to the
mix.
MPM and attribution solutions
aggregate the necessary data to
identify sourced and influenced
revenue as well as budget ROI.

Category Stakeholders Description Benefits Organizational
Readiness & Required
Actions
Standardized Reports CMO Monthly, quarterly, and annual
reporting should focus on
revenue metrics that matter..
Marketing spends too much
generating monthly reports
with metrics that don’t matter.
All revenue stakeholders must
agree to standardize of the
critical funnel metrics. Rathole
drill down exercises can be
handled on a case-by-case
basis.
Assess, Adapt, Optimize All – Execs and Team Leads Review the Big 5 KPIs for
leading indicators to improve
or pursue.
Successful modern marketing
requires continual
improvement. Encourage
experimentation, testing,
innovation.
Guide Future Performance CMO Where Marketing Performance
Management delivers true
value by guiding future
revenue efforts in the most
efficient and effective means
possible.
Historical data on revenue
performance helps guide
where to invest budget
resources in the right
channels.

Wrap Up + Recap
• Questions?
• Feedback Survey

Additional Resources
Heinz Marketing – Marketing Performance
Management Research
BrightFunnel – The Definitive Guide to Multi-
Touch Revenue Attribution

The Modern Marketer's Workshop: Marketing Performance Management

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