Buyer s Guide t B2B Marketing Attributin 730 Yale Avenue Swarthmre, PA 19081 www.raabassciatesinc.cm inf@raabassciatesinc.cm 47 Kearny St., Suite 804 San Francisc, CA 94108 www.brightfunnel.cm sales@brightfunnel.cm
Buyer s Guide t B2B Marketing Attributin Intrductin Marketers have always needed t measure the impact f their wrk. The bvius reasn is t justify their budgets t skeptical CEOs and CFOs wh questin the return n marketing investments. But measurement als helps marketers d their jbs better. Knwing which prgrams are ding well tells marketers where they shuld spend mre mney; knwing which are ding prly shws where budgets shuld be cut r changes put in place. Lking beynd financial measures, understanding the impact f marketing prgrams n velcity (hw quickly leads becme custmers) and cnversin rates (hw many leads mve frm ne buying stage t the next) gives imprtant insights and helps t frecast future results. The need fr measurement has nly increased as marketing s rle in custmer acquisitin and retentin has expanded and the number f marketing channels and ptential prgrams has grwn. But measurement hasn t gtten any easier in fact, as marketing becmes mre cmplex, measurement becmes mre difficult. New systems have appeared that can help but chsing a system is itself yet anther task added t every marketer s bttmless t-d list. This paper will help get that task accmplished. It explres the bstacles t marketing measurement, hw t vercme them, and hw t find the right system t d much f the heavy lifting. It cncludes with practical advice n hw t get started with a measurement prgram and steps t take t ensure success. Obstacles In thery, marketing measurement is quite simple. All yu need is perfect data and the right analytical techniques. Unfrtunately, mst marketers have neither. The biggest bstacle is data. T knw what impact each marketing prgram has n business results, yu need t knw which prgrams have influenced thse results. In practical terms, this means tracking which prgrams have reached which individuals, and which individuals were part f each purchase decisin. CRM (custmer relatinship management) systems like Salesfrce r Micrsft Dynamics dn t cme clse t capturing this: they capture nly direct interactins between individuals and salespeple, and rarely assciate all the right individuals with a particular deal. Sme systems let salespeple assign a single campaign t a particular lead r deal as its surce, but this ignres the reality that multiple marketing cntacts influence each purchase decisin. And even this limited infrmatin is rarely cmplete r accurate in mst CRM databases. Marketing autmatin systems d a better jb f capturing direct cntacts between individuals and the cmpany. If implemented prperly, they can usually track emails page 2 2016 Raab Assciates Inc. All rights reserved. www.raabassciatesinc.cm
Buyer s Guide t B2B Marketing Attributin and direct mails sent, email and Web respnses, individually targeted Web advertising, Webinars, trade shw bth visits, and live events. Even sales interactins such as phne calls and meetings can be imprted frm CRM. The data wn t be perfect yu still wn t knw wh saw that Superbwl ad but enugh shuld be available t cver the bulk f yur marketing prgrams. That still leaves the challenge f relating individuals t revenue. In mst B2B situatins, the best surces f revenue infrmatin are the pprtunity r deal recrds maintained in the CRM system. These are assciated with accunts, which are either cmpanies r departments within a cmpany. Unfrtunately fr marketing measurement, salespeple have little reasn t accurately nte which individuals are invlved with each pprtunity; in fact, they may nt even be aware f everyne engaged in the prcess. Salespeple have a little mre need t assciate individuals with the crrect accunts, but they are ntriusly likely t create duplicate recrds fr the same persn instead f rigrusly lking fr existing recrds befre adding a new ne. Such duplicates have little impact n the salespersn s activities, but they can create serius inaccuracies in marketing measurement reprts. The secnd bstacle is analytical methds. Mst marketers tday recgnize the fallacy f simply crediting all revenue t the first r last marketing campaign t tuch an individual assciated with a deal. (In a nutshell: it ignres the impact f all ther prgrams.) But many shy away frm mre meaningful techniques because they re unsure f hw t crrectly allcate the credit acrss all tuches. Even thse wh are familiar with advanced statistical r algrithmic techniques t calculate the actual incremental impact f each tuch usually find that their cmpany lacks the vlume f data fr such methds t wrk. In ther cases, the cst f such systems -- which usually start at several hundred thusand dllars per year is prhibitive. Like data, analytical methds need nt be perfect t be useful. We ll discuss sme practical appraches t bth in the next sectin. Slutins The basic data needed t measure marketing results is held in tw different systems. Marketing autmatin captures which marketing campaigns reached which individuals, while CRM stres the revenue assciated with each accunt. Cmbining thse surces requires a specialized prcess that makes cnnectins nt fund in either system. This usually takes the frm f fuzzy matching that lks at actual names and addresses n individual and accunt recrds t decide which belng tgether. This can cnslidate duplicates amng individual and accunt recrds and link individuals t the right accunts. The result is a cmprehensive, end-t-end view f campaigns t individuals, individuals t accunts, and accunts t revenue. This prvides the data fundatin fr meaningful marketing measurement. page 3 2016 Raab Assciates Inc. All rights reserved. www.raabassciatesinc.cm
Buyer s Guide t B2B Marketing Attributin Slving the analytical challenge is less clear cut. Marketers can chse frm a number f fractinal allcatin methds, such as sharing credit evenly; allcating fixed shares t the first, middle, and last cntacts; setting different weights fr different cntact types (usually, heavier weight t messages with higher engagement); r applying sme ther, user-selected distributin. Nne f these is crrect in the same way as a statistically-based apprach, but mst marketers will be able t select ne they feel is reasnably realistic. In fact, cnsciusly selecting an allcatin methd makes marketers mre aware that any resulting analysis is nt perfectly accurate, a useful cautin t apply t any apprach. Nr shuld marketers let the limits f allcatin techniques blind them t the benefits f ther, simpler measurements. Data imprts frm CRM systems can include the sales stages attached t pprtunities, which can be used t measure the velcity f mvement thrugh the sales cycle and stage-t-stage cnversin rates. These can be cmpared fr chrts f leads frm different surces r time perids, prviding useful insights int marketing effectiveness withut any cncern fr allcatin methds. Cmbined with split tests in marketing autmatin, such measures can cmpare perfrmance f grups that did r did nt receive specific marketing treatments during the sales prcess. Finding the Right System Slving the data and analytical prblems f marketing measurement requires sphisticated systems. Few firms will have the technical resurces t build such systems fr themselves. Even firms that d have the capability will find it s mre csteffective t use a system smene else has develped fr the purpse. General features t lk fr include: Data assembly. This is the set f capabilities needed t imprt data frm CRM and marketing autmatin systems, establish the linkages needed fr measurement analysis, and stre it fr future use. Specific cnsideratins are: Cnnectrs. Ideally, the system will be able t lad data directly frm CRM and marketing autmatin systems using thse systems standard APIs (applicatin prgram interfaces). This avids the need t write custm integratin prcesses. An acceptable alternative is the ability t imprt batch files f data extracted frm thse systems. Either way, the measurement system needs t accmmdate whatever custm fields r bjects have been added t the CRM and marketing autmatin systems. These will likely be mapped t standard fields in the measurement system. Where batch prcesses are cncerned, users shuld be able t specify the scheduling f lad prcesses and have thse execute autmatically. page 4 2016 Raab Assciates Inc. All rights reserved. www.raabassciatesinc.cm
Buyer s Guide t B2B Marketing Attributin Data quality. The imprt prcess needs t check the incming data t be sure it cntains the expected types f values in each field (dates in date fields, numbers in numeric fields, etc.), that thse values are reasnable, and that the distributin f values desn t change t radically frm ne perid t the next. There may als be a need t standardize and transfrm sme values fr example, t cnvert dates frm different systems int the same frmat and t standardize persnal names, cmpany names, and addresses. The system shuld have access t external resurces such as pstal files and cmpany lists t help with the standardizatin prcess. The vendr r implementatin partner will usually prvide technical staff t d the initial set-up, but the transfrmatins and checking prcesses shuld be straightfrward enugh that the cmpany s wn staff can make further mdificatins ver time. The system shuld issue alerts when it finds prblems with imprted data r when imprt prcesses fail t cmplete successfully. These alerts shuld include enugh infrmatin t diagnse the prblem. There shuld als be an ability t remve any bad data that was laded befre the prblem was identified. Matching. The system needs fuzzy matching capabilities t determine which recrds refer t the same persn r cmpany. Matching needs t lk at multiple fields including name, address, cmpany, phne number, and email address. It may use scring methds r patterns t decide which recrds are a match. Users shuld be able t specify which fields are used in the matching, t review and adjudicate questinable matches, t frce matches in selected cases, and have sme cntrl ver hw the matching wrks. (In practice, thugh, few users will want t spend much time tweaking the matching algrithms.) The system may use a master reference file t help with cmpany matching; this wuld cntain lists f subsidiaries and trade names used fr the same crprate entity and may have knwn physical and n-line addresses f cmpany divisins r branches. As with data quality, the system shuld prvide mnitring reprts t shw match rates and shuld issue alerts if there is a sharp deviatin frm the nrm. Snapshts. The system needs t stre infrmatin that might change in the CRM r marketing autmatin system. A primary example is the sales cycle stage f an pprtunity: this is cntinuusly updated in CRM, s the measurement system needs t keep a recrd f when it changes t calculate velcity in mving between stages and stage-t-stage cnversin rates. Other infrmatin that might change ver time culd be deal value r prbability f success, and individual details used in matching such as title, email address r phne number. Attributin calculatins. These are the methds used t estimate the amunt f revenue generated by each marketing prgram. Ideally, the value wuld represent incremental revenue that is, hw much revenue increased ver what wuld have page 5 2016 Raab Assciates Inc. All rights reserved. www.raabassciatesinc.cm
Buyer s Guide t B2B Marketing Attributin been earned had the prgram nt been run. In practice, this is almst impssible t determine, s the calculatins divide ttal revenue amng all prgrams that tuched each buyer. Fixed allcatin methds. The system attributes revenue accrding t a fixed frmula, usually related t when the marketing tuch tk place during the buying cycle. Typical methds include first tuch (attribute all revenue t the first prgram that reached anyne in the accunt), last tuch (attribute all revenue t the last prgram befre the actual purchase), even distributin (attribute an equal fractin f revenue t all prgrams that tuched the accunt), and psitin-based distributin (attribute a fixed percentage t the first and last tuch, and spread the remaining fractin evenly acrss all intermediate tuches). Even thugh each f these is pen t criticism, mst marketers want the ptin t view the results. Custm allcatin methds. Marketers may want t define their wn attributin rules, such as assigning different relative weights t different prgram types r assigning higher weights t cntacts later in the buying cycle. The system shuld prvide such ptins, letting marketers set the precise rules and then ding the calculatins autmatically. Cmparisns. The system shuld give marketers a side-by-side cmparisn f results fr different attributin methds. This makes it easier t understand the implicatins f chsing ne methd ver anther. Chrts. Marketers shuld be able t see attributin estimates fr a subset f custmers, such as thse acquired thrugh a certain type f campaign r during a specified time perid. Cnsistent results acrss different chrts suggest that attributin estimates are realistic; incnsistent results suggest that factrs ther than the marketing prgrams included in the analysis had a majr impact n revenue. Anther type f chrt analysis shws the revenue generated by different segments, whether based n riginal surce, custmer type, r subsequent marketing treatments. This can help t understand the relative value f different grups r campaigns even if it desn t allcate revenue t different campaigns. Reprts. These shw infrmatin ther attributin calculatins, still based n the data assembled by the measurement system. This can prvide useful insights int the relative impact that each prgram is having n results. Velcity. These reprts shw hw quickly leads mve thrugh stages in the sales cycle. This is an imprtant variable in revenue frecasting and a cnsideratin in evaluating lead surces (all ther things being equal, leads that clse faster are mre attractive). Change in velcity is als a prime metric page 6 2016 Raab Assciates Inc. All rights reserved. www.raabassciatesinc.cm
Buyer s Guide t B2B Marketing Attributin fr evaluating marketing campaigns that nurture existing leads. Features t lk fr in velcity reprting include trends, results by segment r chrt, and drill-dwn t individual cases within each grup. Cnversin rates. These shw the percentage f leads wh mve frm ne sales stage t the next. They shw where leads are leaking frm the sales funnel, s marketing and sales teams can fcus their effrts n the mst imprtant weaknesses. As with velcity, the reprts als prvide critical infrmatin fr frecasting, measure the impact f nurture campaigns, and shuld be able t display trends, results by segment and chrts, and drill dwn t individuals. Frecasts. These predict the amunt and timing f future revenue frm current leads and pprtunities, based n deal sizes, cnversin rates and velcities. They prvide a reality check n estimates entered by sales teams. Features shuld include estimated revenue by time perid, ptins t adjust the cnversin rate and velcity assumptins, and detailed analysis f prjectins by lead surce, custmer type, and ther variables. Simulatins. Marketers shuld be able t see the estimated impact f changes in the marketing mix, based n the estimated impact frm each type f campaign. This is an advanced feature that is nt necessarily present in mst systems r relevant t mst marketers. It requires specifying a base scenari usually the actual mix f prgrams and lead prductin fr a previus perid and then making changes, such as adding budget t ne prgram type and remving it frm anther. The simulatin then uses then estimates lead prduct and flw thrugh the funnel, using attributed figures fr each campaign type t estimate the resulting change in revenue. Usability. The right system will nt just have the right functins but als fit the skills f yur rganizatin. This invlves several dimensins. Set-up. What skills and time are needed t install and cnfigure the system at the start? Key tasks t examine include cnnecting with data frm yur CRM and marketing autmatin systems, defining allcatin methds, and selecting segmentatin variables. Be sure yu understand hw much wrk will be dne by the vendr and hw much is required frm yur team. Find ut if the vendr r partners ffer prfessinal services t d wrk that yur team desn t have the time r skills t d n its wn. Maintenance. What skills and time are needed t run the system after the initial implementatin? This cvers nrmal peratins such as regular data lads, quality assurance, and reprt generatin. It als includes rutine changes such as adding new data elements, adjusting attributin mdels, and page 7 2016 Raab Assciates Inc. All rights reserved. www.raabassciatesinc.cm
Buyer s Guide t B2B Marketing Attributin establishing new prgram categries. An n-premise system will require additinal tasks, usually dne by the crprate IT department, such as running backups and applying sftware updates. (These tasks are handled by the vendr in a sftware-as-a-service mdel.) As with set-up, find ut whether the vendr can perfrm these tasks fr yu and what that wuld cst. Ease f Learning. Hw much training is needed t use the system and what srt f skills are needed t be a prductive user? In mst cases, there will be an administratr wh maintains the system, perfrming tasks such as managing the data updates and making rutine changes. This may require anything frm a cuple f hurs t several days f training. End-users need nly t learn hw t run and read reprts, and pssibly t make simple changes such as setting weights in attributin mdels. This shuld require little r n training. Fr bth types f users, yu ll need t assess hw lng it takes t learn the system well enugh t use it efficiently. Ease f Operatin. Once the users have learned the system, hw hard will it be t perate? This is subtly different frm ease f learning: smetimes it takes a lng time t learn all the shrtcuts assciated with a system but, nce learned, the system is very quick and easy t use. Als cnsider the need t balance ease f peratin against the breadth f system features: a system culd be easy t use because it nly has a few functins. If thse functins dn t fill yur needs, the system wuld be a pr chice. Cst. While functinality and usability are the main criteria in evaluating a system, yu d need t understand its cst as well. License fees. These wuld include license and maintenance csts fr an npremise slutin r subscriptin fees fr sftware as a service. Find ut what the initial cst wuld be and hw it wuld change ver time based n usage, data vlume, features deplyed, r ther variables. Include any n-ging fees fr service and supprt if thse are separate frm the license r subscriptin csts. Set-up csts. These include bth external fees and the value f yur cmpany s staff time in marketing, IT, and pssibly ther departments. Sme vendrs have a fixed implementatin fee while thers require a substantial prfessinal services engagement, either using their wn staff r a business partner. Als include training fees. Operating csts. These include marketing and IT staff t maintain the system. An n-premise slutin will als incur charges fr hardware and data center management. Few marketing measurement systems will require new, dedicated staff, but yu can still estimate the number f hurs required t run page 8 2016 Raab Assciates Inc. All rights reserved. www.raabassciatesinc.cm
Buyer s Guide t B2B Marketing Attributin the system and cmpare the estimates fr different vendrs yu are cnsidering. Operating csts culd als include the value f end-user time spent running the system, but this is even harder t calculate mre time spent culd be the result f having lts f great reprts. If yu re really being rigrus, yu can define sme standard tasks, such as running an attributin reprt fr a set f custmer segments, and cmpare the time t d thse same tasks in different systems. What Next? Marketing measurement takes mre than just buying a system. Here are sme suggestins fr a step-by-step apprach t building a successful marketing measurement prgram. Assess yur data. Take a clse lk at yur cmpany s data, especially in CRM and marketing autmatin. Are cntact and cmpany names and addresses reasnably accurate and cmplete? Have duplicates been identified and eliminated? Are pprtunities assciated with accunts and are cntacts assciated with pprtunities? Are pprtunities created early in the sales cycle and is their status updated regularly? Are marketing campaigns classified by type? D yu enter the csts f marketing campaigns in the marketing autmatin system? D yu reliably link respnses t campaigns? Yu ll need t ensure that all these issues are addressed fr marketing measurement t wrk effectively. Assess yur rganizatin. D yu have the technical skills t deply and maintain a measurement system? D yu have the analytical skills t evaluate the results? Perhaps mst critical, is yur marketing leadership ready t actually act n the infrmatin the measurement system prduces that is, t reallcate yur marketing budget t expand the mst effective prgrams and reduce r rethink the thers? Cnversely, d yu trust yurselves nt t ver-react: t recgnize that attributin reprts are rugh estimates at best, and ften miss subtle but imprtant relatinships between marketing campaigns and business results? Define yur requirements. Start with specific gals and define the prcesses yu ll g thrugh t meet them. Then analyze the prcesses t understand what functins yur systems needs t supprt them. It s thse functins that becme the requirements yu ll lk fr in a measurement system. Be very specific in the data, calculatins, and reprting yu need. Build a checklist and sample scenaris t use in evaluating systems. Assess vendrs. Use Internet research, trade publicatins, industry events, peer recmmendatins, and ther surces t identify vendrs wh meet yur general requirements. Cntact a few f the mst prmising and g thrugh yur checklist page 9 2016 Raab Assciates Inc. All rights reserved. www.raabassciatesinc.cm
Buyer s Guide t B2B Marketing Attributin and sample scenaris with them in detail. Keep explring until yu find a cmpany yur cnfident can d what yu need at a cst and service level yu find cmfrtable. Select and deply. Once yu ve chsen a vendr, mve quickly t clean up yur data, install the system, and start using its utputs. Dn t skimp n set-up and training services; a gd system that is prly implemented r used incrrectly wn t deliver much value. Make sure that managers refer t system reprts and use them t guide decisins. Set up tests t ensure that yur system-guided decisins are actually prducing better results. Publicize yur successes and braden use f the system ver time. Summary As marketing becmes mre cmplicated, measurement becmes mre imprtant. Mdern measurement systems prvide slid value even when data and analytics are less than perfect. This paper has described what t lk fr in a measurement system, hw t select the right vendr, and hw t manage a successful deplyment. As a marketer, yu still need t find the time and budget t make measurement a reality. It s hard t d that given all the ther tasks that need yur attentin but sund measurement is essential t manage thse ther tasks effectively. S it s ultimately an essential investment in lng-term marketing success. page 10 2016 Raab Assciates Inc. All rights reserved. www.raabassciatesinc.cm
Buyer s Guide t B2B Marketing Attributin Abut Raab Assciates Inc. Raab Assciates Inc. is a cnsultancy specializing in marketing technlgy and analytics. Typical engagements include marketing architecture planning, business needs assessment, technlgy audits, vendr selectin, results analysis, and dashbard develpment. The cmpany als cnsults with industry vendrs n prducts and marketing strategy Cntact: Raab Assciates Inc. 730 Yale Avenue Swarthmre, PA 19081 www.raabassciatesinc.cm inf@raabassciatesinc.cm Abut BrightFunnel BrightFunnel is the pineer in revenue attributin and frecasting fr B2B marketers. Thrugh multi-tuch attributin and intelligent frecasting, CMOs and their teams can finally get the cmplete picture f Marketing s impact n revenue. We re a grwing team f marketing enthusiasts backed by wrld-class investrs. Cntact: BrightFunnel, Inc., 47 Kearny St., Suite 804 San Francisc, CA 94108 www.brightfunnel.cm sales@brightfunnel.cm page 11 2016 Raab Assciates Inc. All rights reserved. www.raabassciatesinc.cm