Webinar B2B Marketing Measurement: How To Graduate From Reporting Outputs To Impacting Outcomes Laura Ramos, Vice President, Principal Analyst Laura Patterson, President, VisionEdge Marketing Julie Schwartz, Senior Vice President, Research And Thought Leadership, ITSMA December 3, Call in at 10:55 a.m. Eastern time

Marketing performance management?

© 2013 Forrester Research, Inc. Reproduction Prohibited3 Your hosts today › Laura Ramos, Vice President and Principal Analyst, Forrester Research › Serving CMOs for more than 9 years; recently returned after 2½ years at Xerox › Focus on B2B marketing best practices and trends › Julie Schwartz, Senior Vice President, research and thought leadership, ITSMA › ITSMA is a research-based membership organization that helps leading professional services, technology, and communications providers market and sell solutions more effectively. › Laura Patterson, President, VisionEdge Marketing › Laura and her team specialize in enabling organizations to accelerate revenue and create a competitive advantage by leveraging data, analytics, processes, and alignment to address marketing accountability and performance management.

© 2013 Forrester Research, Inc. Reproduction Prohibited4 Agenda › Managing marketing performance › Measurement still fails to link to business results. › Leaders shift from reporting outputs to impacting outcomes. › How marketers make this shift

© 2013 Forrester Research, Inc. Reproduction Prohibited5 Agenda › Managing marketing performance › Measurement still fails to link to business results. › Leaders shift from reporting outputs to impacting outcomes. › How marketers make this shift

© 2013 Forrester Research, Inc. Reproduction Prohibited6 Base: 117 B2B marketing leaders; Source: Forrester/Business Marketing Association May 2013 Global Marketing Online Survey Why does measurement matter? 78% “The marketing organization’s influence on corporate strategy is much greater.” “Our leadership team judges the success of marketing initiatives faster than before.” 76% 4 or 5 on a scale of 1 (strongly disagree) to 5 (strongly agree)

© 2013 Forrester Research, Inc. Reproduction Prohibited7 Base: 117 B2B marketing leaders; Source: Forrester/Business Marketing Association May 2013 Global Marketing Online Survey Pace of change heightens the challenge “Planning is challenging because pace of change is so much faster.” “The pace of change in technology and marketing will continue to accelerate.” 4 or 5 on a scale of 1 (strongly disagree) to 5 (strongly agree)

© 2013 Forrester Research, Inc. Reproduction Prohibited8 How does marketing use data, analytics, and metrics to manage performance?

© 2013 Forrester Research, Inc. Reproduction Prohibited9 Base: 174 B2B marketing leaders; Source: Forrester/ITSMA/VEM May 2013 Global Marketing Executive Performance Management Online Survey 2013 good news: B2B marketers improve performance management capabilities Improved 61% Stayed the same 37% Gotten worse 1% “Compared to 2012, the marketing organization’s ability to measure and report the contributions of its programs to the business has... ?” Don’t know 1%

© 2013 Forrester Research, Inc. Reproduction Prohibited10 “The link between marketing activities and business goals is clear.” “It is clear to our leadership how marketing impacts the business.” “Marketing is good at improving business performance measures.” Base: 174 B2B marketing leaders; Source: Forrester/ITSMA/VEM May 2013 Global Marketing Executive Performance Management Online Survey Marketing boosts its business impact

© 2013 Forrester Research, Inc. Reproduction Prohibited11 Base: 174 B2B marketing leaders; Source: Forrester/ITSMA/VEM May 2013 Global Marketing Executive Performance Management Online Survey Marketing boosts its business impact (cont.) “Marketing is good at using data and analytics to make course judgments.” “Marketing’s financial value is clear to the business.” “Marketing is good at using data and analytics to make strategic recommendations.

© 2013 Forrester Research, Inc. Reproduction Prohibited12 Agenda › Managing marketing performance › Measurement still fails to link to business results. › Leaders shift from reporting outputs to impacting outcomes. › How marketers make this shift

© 2013 Forrester Research, Inc. Reproduction Prohibited13 Base: 174 B2B marketing leaders; Source: Forrester/ITSMA/VEM May 2013 Global Marketing Executive Performance Management Online Survey Despite progress, performance management challenges persist

© 2013 Forrester Research, Inc. Reproduction Prohibited14 Base: 174 B2B marketing leaders; Source: Forrester/ITSMA/VEM May 2013 Global Marketing Executive Performance Management Online Survey Marketing measures its activities proficiently

© 2013 Forrester Research, Inc. Reproduction Prohibited15 Base: 174 B2B marketing leaders; Source: Forrester/ITSMA/VEM May 2013 Global Marketing Executive Performance Management Online Survey Marketing struggles with forward-looking measures and metrics

© 2013 Forrester Research, Inc. Reproduction Prohibited16 Base: 174 B2B marketing leaders; Source: Forrester/ITSMA/VEM May 2013 Global Marketing Executive Performance Management Online Survey Execs don’t factor marketing metrics into their decision-making

© 2013 Forrester Research, Inc. Reproduction Prohibited17 Agenda › Managing marketing performance › Measurement still fails to link to business results. › Leaders shift from reporting outputs to impacting outcomes. › How marketers make this shift

© 2013 Forrester Research, Inc. Reproduction Prohibited18 Imagine › Increasing marketing’s relevance to the C-suite. › Improving marketing performance management. › Creating a marketing center of excellence.

© 2013 Forrester Research, Inc. Reproduction Prohibited19

© 2013 Forrester Research, Inc. Reproduction Prohibited20 A few marketers have cracked the code Source: Forrester/ITSMA/VEM May 2013 Global Marketing Performance Management Survey and 2012 ITSMA/VEM Marketing Performance Management Survey, 2011, 2010, 2009, 2008, 2007 MARKETING’S ABILITY TO DEMONSTRATE ITS VALUE AND CONTRIBUTION TO THE BUSINESS

Leaders have a game plan for performance management

© 2013 Forrester Research, Inc. Reproduction Prohibited22 How they do it › Tackle alignment. › Change the conversation from activities and outputs to outcomes. › Build data and analytics muscle. Data chains Data inventory Metrics catalog Models › Move from data to insights. › Develop and use actionable marketing dashboards. Measurement and reporting processes, tools, skills

© 2013 Forrester Research, Inc. Reproduction Prohibited23 It’s the only way to answer these burning questions › Can you prove how marketing affects... Share price? Revenue? Market share? Customer value?

© 2013 Forrester Research, Inc. Reproduction Prohibited24 Agenda › Managing marketing performance › Measurement still fails to link to business results. › Leaders shift from reporting outputs to impacting outcomes. › How marketers make this shift

© 2013 Forrester Research, Inc. Reproduction Prohibited25 Case study: CSC’s dashboard ties marketing activity to business results

© 2013 Forrester Research, Inc. Reproduction Prohibited26 How CSC made the shift › Reorganized and placed sales and marketing in one organization reporting to a senior VP › Started with a plan and got help › Focused on the KPIs that their senior leadership cared about most › Measured what matters, not what’s easy › Created an integrated digital infrastructure › Prioritized the dashboard look and feel

© 2013 Forrester Research, Inc. Reproduction Prohibited27 Create an integrated digital infrastructure

© 2013 Forrester Research, Inc. Reproduction Prohibited28 Focus on the KPIs senior management cares about most

© 2013 Forrester Research, Inc. Reproduction Prohibited29 Provide drill-down detail

© 2013 Forrester Research, Inc. Reproduction Prohibited30 Measure what matters, not what’s easy

© 2013 Forrester Research, Inc. Reproduction Prohibited31 Build models to predict the best return on marketing investments

© 2013 Forrester Research, Inc. Reproduction Prohibited32 CSC’s lessons learned › Establish a common vocabulary. › Over communicate. › Recognize that it is an iterative process. › Hire the smartest people you can find. Ecosystem architect Marketing technologist Marketing business process driver Sales business process driver Demand gen campaign expert

Marketing = control center for managing business outcomes

© 2013 Forrester Research, Inc. Reproduction Prohibited34 Revise marketing metrics to focus on business impact › Focus on outcomes that the business wants — and needs — to achieve. › Go beyond ROMI to expose the full scope of marketing’s influence. › Improve how you model and monitor customer lifetime value. › Shine a performance light on existing customers.

© 2013 Forrester Research, Inc. Reproduction Prohibited35 Questions?

Thank you Laura Ramos #B2BMPM mos Laura Patterson #B2BMPM Julie Schwartz #B2BMPM