1.Marketing Operations ROI: Its Simpler . . .And Way Harder Than You Think

2. About Your Guide: Gary M. Katz Founder and Chief Strategy Officer of MarketingOperations Partners First ready-to-go COO and change managementteam for the marketing department Chairman of Marketing Operations Future Forum 20+ years experience leading corporate marketing,marcom, PR, IR, demand gen & changemanagement Certified Strategic Planning Process Facilitator (ICA) Noted educator, author, speaker and leader inMarketing Operations field MS in Organization Development, BA in PublicRelations2012MarketingOperationsPartners,Inc.AllRightsReserved. 3. From a Marketing ROI Fantasy to aMarketing Operations MindsetExercise: Measuring ROI Whats Behind the Numbers Marketing Operations Mini Self-AssessmentWhy is Measuring Marketing ROI so Freaking Difficult?What is Marketing Operations 2.0? 1.0 vs. 2.0: Whats the difference? Six top marketing challenges and how MO tackles themMarketing Operations Maturity What it takes to get to Meaningful ROI 2012 Marketing Operations Partners, Inc. All Rights Reserved. 4. Marketing ROI Tied to EffectivenessKey Findings 2009 Marketing ROI and Measurements Study Number reporting the use of ROI and profitability metrics has remained steady since 2008 Organizational pressure from senior management is quite high Firms using ROI are more likely to report expecting greater growth than competitors Firms reporting that they calculate ROI are 3 times more likely to report marketing as highly effective and efficient Source: 2009 Lenskold Group / MarketSphere Marketing ROI and Measurements Study Available at www.lenskold.com. 2012 Marketing Operations Partners, Inc. All Rights Reserved. 5. But There`s a Lot More to ROI than a Number 2012 Marketing Operations Partners, Inc. All Rights Reserved. 6. Why is Measuring ROI So Difficult?Metrics, Metrics, Too Many Metrics 7. OrganizationalExternal Measures Customer Management Revenue Customer lifetime value Profit Share of wallet Gross margin Up-selling customers Market share Cross-selling customers Number of customers References customers Stakeholder satisfaction Reference-driven new customers Brand equity New customers average # of customers Distribution availability Lost customers avg # of customers Win-back customers avg # of customersInternal Measures % Dissatisfied, neutral, satisfied Awareness of goals % customers who would rebuy Commitment to goals % customers who would recommend brand Resource adequacy % target market aware of brand Skill levels % customers preferring brand Freedom to fail Perceived quality vs. brand competitor Employee satisfaction % customers who know USPSource: Used with permission: 2008 ClearAction. All rights reserved. 2012 Marketing Operations Partners, Inc. All Rights Reserved. 8. Efficiency Sales Force Efficiency Advertising Efficiency Revenue sales calls Costs sales calls Cost 1K buyers reached per vehicle Daily calls salesperson % Audience who remember an ad Sales call time contacts Opinions on ads content & effectiveness Entertainment cost sales calls Before-ad & after-ad brand attitudes Orders per 100 sales calls Inquiries stimulated by an ad New customers per period Costs inquiries Lost customers per period CTR = click-through-rate Sales force cost total sales Effective frequency or reach Sales Promotion Efficiency Distribution Efficiency Logistics costs revenue Logistics costs revenue % Orders filled correctly % Orders filled correctly % On-time delivery % On-time delivery % Error-free invoices issued % Error-free invoices issuedSource: Used with permission: 2008 ClearAction. All rights reserved. 2012 Marketing Operations Partners, Inc. All Rights Reserved. 9. PerformanceReturn on Investment Market Share[Valuew/Investment] - [Valuew/o Investment][Penetrated market target market] Investment = ROI Customers = penetrated market Potential market: product interest Benefits costs Available market: interest + capability Includes non-cash benefits & costs Served market: available mkt nicheAdvertising Potential Sales Potential{ [% Brands U.S. sales in a region] Frequency = [Exposures Reach][% U.S. population in the region] } GRP = [Reach x Frequency]x 100 = BDI CPM = [Ad Cost] [Subscribers 1K] BDI = Brand Development Index GRP = gross rating points { [% Categorys U.S. sales in a region] = exposures [% U.S. population in the region] }= gross impressionsx 100 = CDI CPM = cost per thousand exposures CDI = Category Development IndexSource: Used with permission: 2008 ClearAction. All rights reserved. 2012 Marketing Operations Partners, Inc. All Rights Reserved. 10. FunctionalOperational Efficiency Program-to-people ratio = % program spend/ total Marketing spend Marketing productivity ratio =marketing program $/marketing employee Marketing budget ratio = % marketing budget/overall revenue Marketing investment change ratio =% increase or decrease YoYSource: Used with permission: 2008 ClearAction. All rights reserved. 2012 Marketing Operations Partners, Inc. All Rights Reserved. 11. What are You Measuring and Why ?AccountabilityROI Performance Cause & Management Effect Used with permission 2008 Alex Eldemir 2012 Marketing Operations Partners, Inc. All Rights Reserved. 12. Information Overload Measurable data in 2000Metric Data MetricData Measurable data now Fine granularity needed for better decisions 2012 Marketing Operations Partners, Inc. All Rights Reserved. 13. GIGO Dashboards 2012 Marketing Operations Partners, Inc. All Rights Reserved. Source: Courtesy of Aprimo, 2007 14. SilosWebAlliancesEventsPRChannel MktgSocial MediaLead GenProduct Mgmt Marcom 2012 Marketing Operations Partners, Inc. All Rights Reserved. 15. Misalignment with Enterprise Strategy?START Goals & Gaps Gaps to EconomicClose ExperiencePriorities BusinessLeverage(Ethics,Principles, Alignment of Balanced Now vs. LaterValues) Stakeholders Returns towith eachEachother Stakeholder Maximum Decisions &Success!Overall Enterprise DoingSatisfaction Strategic InvestmentsObjectives Measures Gap Closing Programs Over some Initiativesperiod of time Activities Objective #1 Alignment Objective #2 2012 Marketing Operations Partners, Inc. All Rights Reserved. 16. 7 Deadly Sins, Letterman-StyleYour metrics for success are ill-definedYour people are slammedYour institutional memory is leakyYour innovation and creativity are suffering from constipationYour team, cross-functional or supplier relationships are poorly- alignedYour decision-making process is tough to justifyYour marketing portfolio is not delivering expected results 2012 Marketing Operations Partners, Inc. All Rights Reserved. 17. Myths Marketers (& Their Bosses) Gotta Stop Buying Ill just hire me one of them superstars If everyone just picks themselves up by their bootstraps (or workssmarter, etc) If we can just get some of that Marketing Automation, that will solveour problems If we cant quantify it, we shouldnt do it I dont care what it takes, just get it done We cant spare a dime to invest in research We dont have time to examine our own navels 2012 Marketing Operations Partners, Inc. All Rights Reserved. 18. Behind the ROI Trusted Data and Actionable Insight A Clearly-Defined and Well-Aligned Strategy A Means to Mobilize People Processes to Manage the Chaos Metrics That Matter Technology to Aid Tracking, Measurement, Reporting In other words, a Marketing Operations Mindset 2012 Marketing Operations Partners, Inc. All Rights Reserved. 19. What is Marketing Operations 2.0? 20. Defining Marketing Operations 2.0MO 1.0MO 2.0 An Operational DisciplineEfficiency Accountability A Best Practice EnablerConsistency SustainabilityA Holistic FrameworkAlignment IntegrationA Strategic Foundation for Marketing Excellence 2012 Marketing Operations Partners, Inc. All Rights Reserved. 21. Marketing Operations: Sphere of InfluenceMarketing Customer Intelligence ProfitabilityEnterpriseAccountability Alignment with StrategicStakeholders Agenda Scaling for BuyingGrowth Acceleration 2012 Marketing Operations Partners, Inc. All Rights Reserved. 22. 6 Top Marketing Challenges & How MO Tackles Them Challenge: Converting Insight into Value Lack of Confidence in Business Intelligence 2012 Marketing Operations Partners, Inc. All Rights Reserved. 23. Solution:Converting Insight into Value Baseline What WeKnow/What WeBenchmark Best Dont Practices MO Breeds ActionableLack of Confidence in Insight andBusiness Intelligence InnovationValidateAssess Market DemandInsight/Opportunity Gaps 2012 Marketing Operations Partners, Inc. All Rights Reserved. 24. Challenge: Maximizing Customer Profitability The Price of Acquiring & Keepinga Customer is Growing 2012 Marketing Operations Partners, Inc. All Rights Reserved. 25. Solution:Maximizing Customer Profitability Calculate CustomerCapture Customer Lifetime Value Decision Drivers MOThe Price of Acquiring & DeliversKeepingCustomer Customers is Growing ExperienceMobilize to Win BackMeet Customer At-Risk Customers Expectations 2012 Marketing Operations Partners, Inc. All Rights Reserved. 26. Challenge:Delivering the Strategic AgendaEvery Strategy/Budget Cycle-- a Free-for-All 2012 Marketing Operations Partners, Inc. All Rights Reserved. 27. Solution:Delivering the Strategic Agenda Ensure MessageCatalyzeIntegrityShared VisionMOStrategy / Budget Cycles Realizes are Free-for-AllsStrategy Live theSocializeBrandMarketing Change 2012 Marketing Operations Partners, Inc. All Rights Reserved. 28. Challenge:Accelerating Selling/Buying Process No or Slow - Growth... Disappointing Revenue Results 2012 Marketing Operations Partners, Inc. All Rights Reserved. 29. Solution:Accelerating Selling/Buying Process IntegrateFeed Sales Buying/SellingPipeline CycleMO AlignsSales/No or Slow GrowthMarketingEffortLeverage LoyaltyOptimize Sales/AssetsMarketingHand-offs 2012 Marketing Operations Partners, Inc. All Rights Reserved. 30. Challenge: Scaling Marketing for Growth Marketing in Reaction Mode 2012 Marketing Operations Partners, Inc. All Rights Reserved. 31. Solution: Scaling Marketing for GrowthDiagnose MarketingDevelop MarketingHealthCompetencyMO Marketing in Reaction Mode MObilizesResources Architect EnablingOptimize Marketing Shared ProcessesInvestment 2012 Marketing Operations Partners, Inc. All Rights Reserved. 32. Challenge:Demonstrating Return on MarketingMuch of what marketing can contribute right now is seen as less tangiblebecause we lack the metrics Dawn Hudson, CEO, Pepsi North AmericaMarketing on Defensive to Show Contribution 2012 Marketing Operations Partners, Inc. All Rights Reserved. 33. Solution: Demonstrating Return on Marketing AlignDefine and TrackMarketing/Enterprise Key Metrics viaObjectivesDashboardsMarketing on DefensiveMO Enables To ShowAccount-Contribution ability Fine-tune Forecasting Track Individual and thru Predictive Team PerformanceAnalytics 2012 Marketing Operations Partners, Inc. All Rights Reserved. 34. Marketing Operations MaturityWhat It Takes To Get To Meaningful ROI 35. A MOdel for Sustainable SuccessStrategyGuidanceProcess MetricsTechnology Ecosystem Alignment Infrastructure Management Marketing Operations Best Practice Framework 2012 Marketing Operations Partners, Inc. All Rights Reserved. 36. Profile of MO Best Practices > 20% CAGR 03-07 Strong Focus Outcomes Brand IdentityAlignment With Sales With Enterprise Metrics Execution Predictive Analytics for Revenue Excellence Budget Planning Processes BudgetingProcess Brand Management Excellence Customer Management Planning Product Lifecycle Management 2012 Marketing Operations Partners, Inc. All Rights Reserved. 37. The Roadmap to MO Maturity Sophisticated MOChange ManagementCompetency DevelopmentEnterprise Metrics AlignmentExpanded MO Org. Learning CatalystMarketing AutomationStrategic ManagementBest PracticesRewards Alignment Fundamental MO Process DesignKnowledge ManagementBudget ManagementCRMMarketing ServicesVendor Management 2012 Marketing Operations Partners, Inc. All Rights Reserved. 38. When Should You Invest in Marketing Ops?EXTERNAL DRIVERSVALUE DRIVERS MOBILIZATION DRIVERSDynamicBig Investment,Cross-functional Competitive HeightenedAlignment MarketAccountability CriticalUnder Need to RaiseM&AMedia/ Strategic IntegrationRegulatoryGame Challenges Scrutiny 2012 Marketing Operations Partners, Inc. All Rights Reserved. 39. Benefits of Mastering Marketing Ops 40. Internal Transportation System: MO 2.0 2012 Marketing Operations Partners, Inc. All Rights Reserved. 41. Highways, Roadways and Bridges . . . 2012 Marketing Operations Partners, Inc. All Rights Reserved. 42. Means of Transportation 2012 Marketing Operations Partners, Inc. All Rights Reserved. 43. Mechanics Tuning the Engine 2012 Marketing Operations Partners, Inc. All Rights Reserved. 44. Driver`s Ed, Training & Licensing 2012 Marketing Operations Partners, Inc. All Rights Reserved. 45. Driver`s Handbook 2012 Marketing Operations Partners, Inc. All Rights Reserved. 46. Traffic Controls & Signals 2012 Marketing Operations Partners, Inc. All Rights Reserved. 47. Navigational System 2012 Marketing Operations Partners, Inc. All Rights Reserved. 48. Roadmap 2012 Marketing Operations Partners, Inc. All Rights Reserved. 49. Alignment Specialist 2012 Marketing Operations Partners, Inc. All Rights Reserved. 50. More Meaningful MetricsSource: 2006 VisionEdge Marketing 2012 Marketing Operations Partners, Inc. All Rights Reserved. 51. See What Marketing Ops Thought Leaders are Saying!Benchmarking study:Online talk show withadopt best practices, execs from Autodesk, Follow our blog! avoid pitfalls,Clorox, Genworth, NetApp, MOpartners.com/blog build your MO roadmap! and more!MOpartners.com/resources/storetinyurl.com/Mktg-Ops 2012 Marketing Operations Partners, Inc. All Rights Reserved. 52. Jump-start Your Organizations Awarenessof Marketing Operations Improvement Opportunities Socialize your assessment results through this coffee table book with more than2 dozen analyses and recommendations. Excerpts from 88-page MO:DNA report: www.MOpartners.com/resources/MO-DNA 2012 Marketing Operations Partners, Inc. All Rights Reserved. 53. Advance Your Expertise in Marketing Operations Marketing Operations Essentials: 4 modules available online, in-person, or hybrid1) Impact & Promise of Marketing Ops2) Mobilizing Strategic Impact for Corporate Growth3) Designing Marketing Infrastructure for Results4) Journey to Marketing Ops Maturitywww.MOpartners.com/resources/ 2012 Marketing Operations Partners, Inc. All Rights Reserved. 54. Join the Marketing Operations Future Forum The Forum takes you on a discovery process that alters your viewpoint to manage any aspect of marketing more efficiently and effectivelywww.MOfutureforum.com 2012 Marketing Operations Partners, Inc. All Rights Reserved. 55. Lets Keep in Touch! tinyURL.com/MOfutureforumChangeMyMO@MOpartners.com @MOpartners US +1 408 243 7881 @MOfutureforum London +44 (0)20 7193 7682 tinyurl.com/Mktg-OpsSingapore +65 8183 4022 2012 Marketing Operations Partners, Inc. All Rights Reserved.