increasing marketing’s relevance to the business

Note: This Abbreviated Summary highlights some of the significant findings from 2013 ITSMA/VEM/Forrester Marketing Performance Management Survey:

Increasing Marketing’s Relevance to the Business A more in-depth analysis can be found in the full report available for purchase at:

http://www.itsma.com/2013-marketing-performance-management-survey-summary/

Abbreviated Summary | June 2013

Increasing Marketing’s Relevance to the Business

2013 ITSMA/VEM/Forrester Marketing Performance Management Survey

Matt Kerwick, PhD, Senior Analyst, VisionEdge Marketing

Dianne Kim, Research Associate, ITSMA

Laura Patterson, President, VisionEdge Marketing

Laura Ramos, Vice President, Principal Analyst Serving CMOs, Forrester

Julie Schwartz, Senior Vice President, Research and Thought Leadership, ITSMA

©ITSMA/VEM/Forrester 2013 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.

Key Takeaways The Situation Only a handful of senior executives are relying

on marketing data to make decisions.

Furthermore, more than half of marketers are

not confident that they know which metrics and

outcomes its key stakeholders care about.

What’s going on?

Marketers are reporting:

1. Marketing activity, not business outcomes

2. Operational efficiency, not effectiveness

3. Past performance, not predictive insight

The Solution

To capture the C-suite’s attention, marketers

need to create a clear line of sight between

marketing activities with business outcomes.

The best-in-class marketers:

• Speak the language of the business

• Understand how the business leaders

evaluate marketing effectiveness

• Connect marketing activities to

business results

• Produce actionable marketing dashboards

• Present marketing’s dashboard to the

executive team

• Use data and analytics to report past

history and as a predictive tool

• Employ analytics talent

• Invest in analytical tools

• Build analytical models


http://www.itsma.com/research/increasing-marketings-relevance-to-the-business/



Remarkably, just 40% of marketers today believe that measuring marketing’s value and contribution to the business is very important or critical

In your organization or

company, how

important is it that

marketing is able to

measure its value and

contribution to the

business? Mean Rating (N~396)

.

Source: ITSMA/VEM/Forrester Marketing Performance Management Survey, May 2013

Very

Important

or Critical

40%





And only a handful of senior executives are relying on marketing data to make decisions

To what extent are

your key stakeholders

using the data,

metrics, and/or

analyses

developed by

marketing? % of Respondents

(N~383)


Relies on

marketing data to

make decisions

BU or Division Leaders

CEO

16

13

9

Sales

CFO/Finance 6





9

12

24

18

12

10

6

5

2

2

Extremely Confident = 10

9

8

7

6

5

4

3

2

Not at all Confident = 1

55%

Most marketers don’t know which metrics and outcomes its key stakeholders care about How confident are you that you know which metrics/business outcomes your

key stakeholders (e.g., CEO/CFO/BU leaders) care about? Mean Rating (N=394)

Note: Mean Rating based on a 10-point scale where 1=Not at all confident and 10=Extremely confident.


Mean Rating=6.8





Marketers are reporting on marketing activity and associated costs, rather than reporting on metrics executives use to set direction Which performance metric categories are included on marketing’s dashboard? % of Respondents (N=163)

Note: Multiple responses allowed.


77

62

53

44

33

31

24

21

19

18

6

Sales pipeline (leads, conversion rates, win rates)

Marketing spend

ROI (e.g., campaign ROI, event ROI, lead ROI)

Brand awareness/equity

Customer satisfaction/loyalty

On-time delivery of marketing programs

Marketing contribution to customer retention/loyalty

Marketing contribution to market share

Marketing contribution to category ownership

Other

Marketing

Activity

and

Efficiency

Business

Outcomes

Marketing contribution to customer

penetration/expansion/share of wallet





Most marketers use data and analytics to report on past performance rather than provide predictive insight


Are data and analytics being used as a predictive tool

or to report past performance? % of Respondents (N=342)

To report past

performance

As a predictive

tool

Not applicable,

we don’t use

analytics

11%

25%

64%





A few exceptional marketers are able to demonstrate value and contribution to the business

90–100:

Marketing was able to measure

and report the contribution of its

programs to the business

80–89:

Marketing programs made a

difference but the contribution to

the business goals were not

measured and reported

70–79:

Marketing appears to have made

some impact on the business, but

it is not clear if the impact was

material, nor is it measured

69 or

lower:

Marketing programs didn’t make a

difference—there is no clarity as

to how marketing is contributing

to the business

For 2012, using a 100 point scale, please select what grade the CEO (or you, if

you are the CEO) would give your marketing organization for its ability to

demonstrate its value and contribution to the business. % of Respondents (N=424)


27%

38%

29%

6%





The “A” marketers align their marketing activities to business metrics that executives care about

Speak the

language of the

business

Understand how

the business

leaders evaluate

marketing

effectiveness

Connect

marketing

activities to

business results Output-

Based

Operational

Outcome-

Based

Leading

Indicators

Predictive

Media Mentions

Trade Show Leads

Click Through Rates

Lead/Rep

Lead Aging

Campaign ROI

Market Share

Category Ownership

Lifetime Value

Share of Wallet

Rate of Growth: Market

Share of Preference

Campaign Lift Modeling

Predisposition to Purchase

Likelihood to Defect





Produce actionable

marketing dashboards

Present marketing’s

dashboard to the

executive team

“A” marketers establish clear data chains between marketing activities, objectives, and business outcomes to produce actionable dashboards

Business

Outcomes

Marketing

Objectives

Marketing

Programs

Marketing

Tactics





“A” marketers use analytics to inform future decisions

Use data and

analytics to report

past history

and as a

predictive tool

Employ analytics

talent

Invest in

analytical tools

Build analytical

models

How well does your marketing organization use

data and analytics to enable the following?

Mean Rating

7.5ab

7.0ab

6.0ab

6.3a

5.7a

4.7a

5.7b

5.0b

4.2b

Make tactical

marketing

recommendations

Make strategic

business

recommendations

Predict customer/

market behavior

The “A’s” (N=76)

Middle ofthe Pack(N=105)

Laggards(N=101)

Note: Mean Rating based on a 10-point scale where 1=Poorly and 10=Extremely well. ab indicate a statistically significant difference.







Web-based Survey

Survey invitations were

emailed during March

and April 2013 to the

ITSMA, VEM, and

Forrester communities.

In addition, survey

invitations were

extended via social

media outlets such as

Twitter and LinkedIn.

424 people completed

the survey

The Data Was

Analyzed by:

•A’s: Marketing

demonstrates contribution

to the business (Grade: A)

• Middle of the Pack:

Marketing makes a

difference, but

contribution not measured

(Grade: B)

• Laggards: Marketing may

have an impact, but not

known if impact is

material

(Grade: C/D)

Marketing

Performance

Grade

Study Methodology





Type of Company % of Respondents (N=424)

43%

36%

21%

Primarily sell

services

Sell both

products and

services

Size of Company % of Respondents (N=424)

Industry Subsector % of Respondents (N=424)

Primarily sell

products

Manager

Director

Member of the

functional or LOB

leadership team

Individual contributor

34

6 7

4

16

8

25

Lessthan

$50M

$50Mup to$99M

$100Mup to

$499M

$500Mup to

$999M

$1Bup to$4.9B

$5Bup to$9.9B

$10Bor

more

Software solutions

IT professional services/consulting

Telecommunications and network systems and solutions

Computer systems and solutions

Marketing services/ advertising agency

Management consulting

Other services

Other product manufacturing

Other technology hardware systems and solutions

Outsourcing

Architecture/engineering/ construction

Other

20

17

12

9

6

5

5

4

3

3

3

13

34%

29%

28%

9%


Study Methodology Respondent Titles % of

Respondents

(N=294)





Table of Contents for 2013 MPM Survey

For More Information Julie Schwartz

Senior Vice President

Research and Thought Leadership

ITSMA

[email protected] | +1-407-788-8220

www.itsma.com

Increasing Marketing’s

Study Buy the Member: $295

Non-member: $495

Laura Patterson

President

VisionEdge Marketing

[email protected]

+1-512-681-8800, Ext. 12

www.visionedgemarketing.com

Laura Ramos

Vice President

Principal Analyst Serving CMOs

Forrester

[email protected] | +1-650-581-3812

Slide

Executive Summary 3

Methodology and Respondent Demographics 30

Detailed Findings 43

Marketing Performance Management 43

Data and Analytics 64

Dashboards and Models 90

Business Outcome and Sales Metrics

Performance 110

Appendix: Study Definitions 117

Relevance to the Business


http://www.visionedgemarketing.com/

mailto:[email protected]?subject=2013 ITSMA/VEM/Forrester Marketing Performance Management Survey




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