HOW MARKETING PERFORMANCE MANAGEMENT IS CHANGING THE ROLE OF THE CMO

Transcription

1 THE SMART MARKETER S SECRET WEAPON HOW MARKETING PERFORMANCE MANAGEMENT IS CHANGING THE ROLE OF THE CMO hello@allocadia.com

2 2 TODAY S CMO FACES NEW CHALLENGES Across industries, customers have changed the way they buy. Whether a customer is buying a new couch or an enterprise technology software, there s a lot more information available to buyers and they re doing more research. Business-tobusiness customers report getting 57 percent of the way through the decision process before their very first interaction with sales (source: CEB/Google). As a result of this shift in behavior, companies need to change the way they market and sell.

3 3 CMOs are held accountable for every dollar spent and leaders are looking for results. Executive leaders and boards want to see ROI on every marketing campaign. So marketers need to know what their teams are spending and the results to calculate ROI. As marketing becomes more complex, with more online and offline channels to wrangle, it s hard to get visibility into the bottom line. Kristine Steuart was a marketing manager at a large company, managing multimillion-dollar marketing budgets. She had a lot of tools available to track metrics such as clicks, leads and likes, but figuring out how her results tied back to budget (and what her total ROI looked like) was nearly impossible. It was difficult to get information about what she d spent on specific objectives, and getting answers from finance and IT to make forecasts took weeks. So, she set out to create a solution that went beyond spreadsheets a budgeting, planning and analysis tool that was visual, friendly and fast. Steuart needed a way to understand the I the actual investments and dollars spent in ROI before she could analyze the R, her results. She knew there had to be a better way. So she and her twin sister, Katherine Berry, a web designer, built Allocadia. Their goal: solve the problems they d experienced as modern marketers and start developing a new Marketing Performance Management movement. They launched Allocadia in 2010, and since then, Kristine and the growing Allocadia team have found a tribe of marketing futurists smart, revenue-driven marketers who are all looking for ways to solve similar business challenges. allocadia.com Hello@allocadia.com

4 4 CMOS NEED TO GO TO THE BOARDROOM UNDERSTANDING THEIR INVESTMENTS AND THEIR RETURN. MARKETING PERFORMANCE MANAGEMENT PROVIDES THE DATA-DRIVEN VIEW OF MARKETING THAT CMOS NEED TO ANSWER BUSINESS QUESTIONS.

5 5 WHAT IS MARKETING PERFORMANCE MANAGEMENT? Before we look at examples of how Marketing Performance Management is helping marketers track and tell stories about ROI, let s define Marketing Performance Management. No serious organization would expect to manage their sales pipelines from spreadsheets. Sales uses sophisticated CRMs to track prospects, opportunities and customers. Finance has its equivalent in the ERP. Human resources uses similar tools to track job candidates and employee performance. But until recently, almost all of the software designed for marketers was customer-facing. Marketers were tracking budgets, spends, campaigns and outcomes often across several regions around the world in spreadsheets. Marketing Performance Management uses a comprehensive tool to pull together data from customer-focused software (lead-gen systems, marketing automation software and social media tools) with internal systems like financial programs. CMOs need to go to the boardroom understanding their investments and their return. Marketing Performance Management provides the data-driven view of marketing that CMOs need to answer business questions. Marketing Performance Management saves time and money. With all of the data in one place, marketing teams can save weeks of personnel hours otherwise spent tracking, aggregating and reconciling numbers. In the last decade, we have seen exponential growth of technologies that help marketers do their jobs, such as marketing automation, social media management and online marketing management, Steuart explains. These tools have been instrumental in helping marketing execute, automate and do more, and they have become the centerpiece of many marketing technology systems. Recently, however, we are seeing a new trend emerging in marketing technology, as CMOs choose their Marketing Performance Management system first and make budgeting, planning and ROI, the centerpiece of their technology ecosystem. We see more CMOs getting a handle on operational data first and then growing their data strategy from there. allocadia.com Hello@allocadia.com

6 6 WHY YOU NEED MPM FOR BUDGETING, PLANNING AND ANALYTICS. THERE ARE 3 PRIMARY ELEMENTS THAT POWER MPM BUDGET PLANNING PERFORMANCE ANALYTICS

7 7 BUDGETING THE CHALLENGE Budget data is in multiple spreadsheets or locked in the ERP. THE MPM SOLUTION The old way to create an annual marketing budget was to look at the previous year s budget and tweak the numbers. With MPM, CMOs and everyone else on the marketing team can make smarter budgeting decisions. Marketers can build budgets based on strategic priorities, with every spend tied back to bigpicture strategic objectives and every number tied to the ERP. Juniper Networks has a marketing team of more than 200 people spread across the world. Juniper implemented Allocadia s Marketing Performance Management solution to streamline their team s budgeting. The results: Now 100 percent of the marketing team s spend is aligned to specific business objectives. Marketing spend has stayed within 1 percent of budget every quarter since they started using Allocadia. Meanwhile, the team has the flexibility to make changes to the budget and reallocate based on evolutions in the market and their business needs. budgets in a massive Excel document. There was no real-time budget transparency and, at the end of the quarter, they were often over or under budget by thousands of dollars. The Trimble team implemented Allocadia s marketing budgeting software and quickly noticed impressive results. They clearly saw areas of duplicate spending that previously went unnoticed; their quarterly spend has stayed within 2-3 percent of budget since implementing the software; and the quarter-end budget reconciliation, which used to take up to seven days, is essentially eliminated. Jarrod Krug, marketing communications manager of building construction at Trimble, sums up his experience using Marketing Performance Management this way: This tool quickly became a necessity. It was extremely intuitive. It just became one of the ways we do business. To be honest, if they took it away, I d cry. IT S HELPING PEOPLE MAKE DECISIONS. GPS provider Trimble experienced similar budgeting pains. The marketing team created and managed allocadia.com Hello@allocadia.com

8 8 PLANNING THE CHALLENGE Plan data isn t captured anywhere. What are the corporate objectives? How do they tie to specific product and regional marketing? How is marketing going to invest its budget? THE MPM SOLUTION When you start to record and capture information about your marketing plan in the same tool where you track budget and actual spend, all of your data starts to make sense in context. With Marketing Performance Management, marketers can track planned spend for each region, team, program, brand and functional unit. Marketers can understand and report on how budgets are being strategically allocated throughout the organization. Allocadia customer VMWare found that using a centralized budgeting and planning tool helped the company find alignment. Chethan Chandra, a senior manager of business operations at VMWare, says Allocadia built visibility and trust within the company s large and geographically distributed marketing teams. When the VMWare team started its 2014 planning, Allocadia helped bridge marketing and finance, since all of the data they needed was in one place, and all of the marketing teams (VMWare s Product, Field and Global teams) were reporting spend and plan in one tool. It s helping people make decisions, Chandra says. MARKETING PERFORMANCE MANAGEMENT S TRUE POWER IS IN USING INFORMATION ON INVESTMENTS AND RESULTS TO MAKE REAL-TIME, INFORMED DECISIONS ABOUT HOW TO USE MARKETING DOLLARS FOR MAXIMUM ROI.

9 9 PERFORMANCE ANALYTICS THE CHALLENGE Marketing ROI data is captured in multiple campaign systems, including the CRM, marketing automation software and social tools. THE MPM SOLUTION Using Marketing Performance Management to improve budgeting and planning can be transformative. But, the real business changes happen when organizations use the data they ve aggregated to make big-picture decisions and what s working and how they can make changes. Marketing Performance Management s true power is in using information on investments and results to make real-time, informed decisions about how to use marketing dollars for maximum ROI. BUSINESSES ARE TRYING TO MAKE MARKETING AS ACCOUNTABLE AND FORECASTABLE AS THE SALES DEPARTMENT. MARKETERS HAVE TO GET MORE SCIENTIFIC. Juniper uses the easy-to-access data from Marketing Performance Management to improve their reporting and analytics. Inside the marketing team, Allocadia helps plan, forecast and measure global marketing activities. Then, the team pulls information from Allocadia to report to senior executives on strategy and progress. allocadia.com Hello@allocadia.com

10 10 HOW MPM WILL TRANSFORM MARKETING DEPARTMENTS With widespread adoption of marketing automation, business leaders expect marketing reporting at a more granular level, with a focus on ROI says CRM Technologies CEO and Allocadia partner Andrew Freeman. CRM Technologies helps companies maximize their marketing data to make better decisions. Businesses are trying to make marketing as accountable and forecastable as the sales department. Marketers have to get more scientific. He saw a gap in the reporting and budgeting market before Allocadia. Allocadia is closing the loop and helping marketers tie their performance directly to sales.

11 11 WHAT S NEXT? LEARN MORE. Read the Allocadia Blog to learn how smart marketers are improving their budgeting and planning and accurately tracking ROI with Marketing Performance Management. VISIT THE hello@allocadia.com allocadia.com Hello@allocadia.com