Communicating Marketing’s Performance: The CMO Dashboard

Communicating Marketing’s Performance: The CMO Dashboard
November 9, 2017 Marcia Trask Research Director @marciatrask

Agenda Who is SiriusDecisions? Measurement Fundamentals
Five Steps for Building a Better CMO Dashboard Common Dashboard Metrics and Examples Addressing Common Dashboard Pitfalls Q&A What we will cover in this session is the tangible value of aligning the sales, product and marketing functions of an organization, and how this can be accomplished by establishing aligned roles, execution processes, goals and measurements. But, let’s begin with a brief introduction of SiriusDecisions for those of you not familiar with us.

Who Is SiriusDecisions?

Our Business Advisory Designed for executives and teams to help define strategy and support the execution of key initiatives. Provides access to benchmark data, as-needed access to analysts, and best practice research – including operational models and frameworks. Advisory Research-Informed Consulting Research-informed assessments, workshops and project engagements that support key initiatives. Our consultants are experienced leaders in your field who apply Sirius thinking and tools to help solve the challenges you face. Research-Enabled Learning Our learning solutions address practitioners’ skills gaps and extend core concepts across teams to enable consistent execution. Consulting Learning At SiriusDecisions our business is focused on three primary offerings to enable high performance execution. The first is our Advisory Service. Our advisory service delivers insights to clients in a variety of ways including research, models and frameworks, benchmark assessments, tools, peer interaction, in-person events, and analyst inquiry. Second is our learning practice. Our learning solutions address practitioners’ skills gaps and extend core concepts across teams to enable consistent execution. We currently offer more than 25 different courses called SiriusPathways. And third, is our consulting practice. Our consulting business specializes in offering a variety of workshops and custom projects to meet client needs.

Measurement Fundamentals

The State of Measurement and Reporting Today
There is a fundamental disconnect between the questions being asked and the answers being given. Is our investment in marketing paying off? We created 12,735 leads We have 32,458 Twitter followers What’s needed for sales to make its number? More leads! More salespeople! What impact is our product team having upon results? Sales closed $11M in new business Marketing created 3,978 leads

What Does Good Measurement Tell Us?
Measurement enables visibility into the workings of a business and provides a lever for performance improvement. What happened? How does that compare with what we expected? Why did we perform that way? What do we need to fix? Good Measurement: Connects what is done with desired business impact Helps us predict what performance is likely to be Helps identify weakness and problem areas Indicates how well the strategy is being executed against Provides the ability to adjust Answers ‘did we do what we said we would’?

The Three Pillars of Aligned Measurement
Breaking down the complexity of measurement makes it easier to understand, capture data and report. Connection Perspective Hierarchy

Metric Class: Defining Measurement Units
The first step toward aligned measurement requires distinguishing between what is done and the results produced. Class Measure Description Effects against business goals Revenue Market share Profit Impact Direct results of actions Inquiries Proposals Demo requests Output Counts of actions taken sent Calls made Requirements written Activity Preparedness to perform Database size SLA compliance Skills Readiness Part of setting goals measurement goals the right way depends on a foundation of understanding how measurement works. One of the most important things to note is that measurement operates on a variety of levels and needs to be geared toward the decision-making requirements of the people it’s meant to support. You confuse people when you share the wrong metric with the wrong audience. The SiriusDecisions Metrics Spectrum defines a consistent vocabulary for metrics: Impact: The most strategic metric class and command the bulk of attention on executive-level dashboards. Impact metrics are stated in terms of the organization’s business objectives (e.g. revenue growth, profitability, market share, customer lifetime value). They are highly summarized measures. Output: Measure the expected outcomes of activities. Some outputs are the result of a single action (one offer) other output metrics combine the results of multiple actions (the total number of MQLs). It is not required or reasonable to require that each output be directly or wholly tied to specific actions. Activity: The most tactical metric class. Quantify what was done, but stop short of quantifying what occurred as the result. Activity metrics indicate whether plans are being executed and that specific actions have been completed. Readiness: Measures internally-focused activities and outcomes that prepare an organization to achieve business results. Metrics Spectrum At SiriusDecisions, we categorize metrics via a Metrics Spectrum. Readiness metrics depict how “ready” we are to go to market or perform an activity we are expecting to perform. How big our database is compared to the total available market for an industry, or how skilled our employees are are examples of readiness metrics Activity level metrics are typically metrics that should be directed toward a function to quantify what they are doing and to adjust the activity in the near term to perform better. So, for example, things like how many s were sent or how many outbound telemarketing calls did we make tend to be things that are activity based. Moving up the scale, activities are then grouped together to share how the activity performed against an expected output. So, taking the last example, if we were to send 100 s and make 50 telemarketing calls, which of those activities resulted in engagement with our customers or lead creation. How many progressed to marketing qualified leads, and how many were later qualified by sales. And finally, impact level metrics share how the output of the activities are moving the needle for the organization So, how much revenue was attained by our marketing activities, how did we impact our profit margin In this category, the metric should be directly aligned to the business objectives that the corporation has set and the cascading marketing goals that marketing has committed to contribute All measurements are not the same. And we recognized that b-to-b organizations lacked a good way to describe the different types of measures that being used. This is fundamental. When the vocabulary isn’t aligned, there’s no chance the measurement can be aligned. The most basic type of measurement is activity measurement. Activity measurement quantifies what was done. It counts the actions taken. s sent, sales calls made, product requirements written. Doing is the basis of creating value, and we need to be able to count what was done. Once things are done, we expect that that they have a direct result. These direct results need to be quantified. They are called outputs. Examples of outputs may be inquires, proposal requests, or demo requests. These tend to be good things. Desirable things. They tell us that we’re headed in the right direction, but counting sales meetings or qualified leads doesn’t cut it when it comes to reporting business results. We need measures of impact. Impact measures summarize the effects of outputs to describe performance against business goals. Revenue growth and market share are examples of impact measures. Think of things your business needs to achieve. These three classes of measurement tell you what happened. What you did, what you produced, and the related impact. What they don’t tell you is WHY. To answer the WHY question, we need to look a different class of measurement – Readiness. Readiness measures tell us how prepared the organizations is to perform. Your marketing team may have developed the world’s best nurture flow, perfectly targeted at your ideal buyer persona. But your output was disappointing. No one responded. Why? Because your database sucks. We need measure operational readiness if we want to answer the WHY question. Think about things like database size and health, SLA compliance, Skills assessments. These are the type of measures that tells us how prepared we are to get the job done.

Metric Spectrum in Action: Activity to Output to Impact
Impact is created by effectively executing the right combinations of actions across product, marketing and sales functions. Persona Research Impact Output Activity Readiness Revenue Persona Development Product Persona Definitions #1 Event Inbound Tactic Blitz Day Proposal Sales 3 Pipeline Marketing 20 Demand Units Don’t expect a straight line where one activity yields output and impact. It doesn’t work that way. Activities group together.

Like Organizations, Measurement Requires Hierarchy
Although businesses are drowning in performance data, measurement must be aligned with the organizational structure to be meaningful. Organization Levels Organizational Summary 5 Executive/Board Programs 4 Functional Leadership Function 3 Team Leadership Tactic Type 2 Execution Tactic 1

Applying Dimensional Filters to Reporting
Applying filters requires two things: knowing what dimensions are needed and applying them consistently. Industry Geography Product Campaign Sales Marketing Product

The SiriusDecisions Aligned Measurement Framework
This framework provides a tool for structuring appropriate, actionable and aligned measurement and reporting of cross-functional b-to-b results. Views Metric Class Organizational Summary Programs Function Tactic Type Tactic Levels Marketing Sales Product Dimension Geography Product/Solution Industry Channel Campaign Aligned measurement framework: Provides a measurement structure that connects actions and results Applies that measurement structure against an organization and the way work gets done Shows how organizational functions align around common objectives and programs Creates understanding and visibility into the “why” of performance Matches results against an organizational hierarchy representing cross-functional creation of value. Provides perspectives and filters which are applied to measurement deliverables to make them actionable

Marketing Measurement Is a Process
A process-driven approach ensures that measurement is well aligned to its users’ needs, business needs and corporate objectives. Successful measurement organizations expend 60 to 70 percent of their measurement efforts on the social side of the process Refine Strategy Execution Evolution Discovery Alignment Build Launch Monitor Initiation Developing the measurement plan Implementing the measurement plan Managing measurement to drive performance Effort scoped and formalized Identification of key inputs into strategy Mapping deliverables and metrics against priorities Construction of deliverables Rollout planned and executed Ongoing tracking of effectiveness Continued adaptation and improvement

Five Steps for Building a Better CMO Dashboard

Five Steps to Building a CMO Dashboard
Step 1: Know Your Audience Step 2: Understand Audience Business Questions Step 3: Tell a Story Step 4: Use Effective Visualization Step 5: Weave in Analysis, Share Insights, and Specify Actions

Step 1: Know Your Audience
Marketing performance impacts multiple stakeholders – this must be realized and addressed in CMO dashboard development. Perceived Stakeholder Importance Actual Stakeholder Importance Think about THIS – actual stakeholder importance vs. THAT – view that sales is the only stakeholder of value

Marketing should be recognized for the value delivered to all key stakeholders and the CMO dashboard must clearly articulate the larger performance story. Buyers/ Customer Ability to self serve required information Find offering(s) that address audience needs Satisfaction with offerings and company experience Sales Marketing contribution to revenue/pipeline/bookings Increasing deal velocity/size/product mix Making it easier to get in the door/first call Product Product launch support Messaging/content/campaign development Audience insights for product roadmap Partners Ability to self serve required information Easily request/receive resources Satisfaction with offerings and company experience C-Suite/ Board Marketing contribution to business performance Return on investment Customer acquisition costs and lifetime value Sales Access to required and relevant information Connection to subject matter experts Timely and transparent experience with the company Influencers Think about: Stakeholders (Who? Key messages?)) Vehicles (What are they?) Dashboard, s, Town Halls, QBRs, BOD meetings, etc.) Cadence (How often?)

CMOs/marketing leaders must understand the business impacts that key personas in the C-suite care about. CEO CFO CSO/Head of Sales Revenue Generated Customer Acquisition Costs Customer Lifetime Value Retention Rate, NPS Conversion rates Valuations Total Generated Revenue Customer Acquisition Costs Customer Lifetime Value Profitability Budget Management Valuations # of marketing qualified leads (MQLs) MQL conversion rate MQL win rate Marketing pipeline contribution Marketing sourced revenue

CMOs must also know the appropriate information to communicate to the company board of directors. Board of Directors Business contribution Return on investment (MROI or ROMI) Annual Recurring revenues (ARR) and monthly recurring revenues (MRR) Customer insights and feedback Customer acquisition costs and lifetime value Competitive analysis Recent and upcoming key marketing activities Board members like to know the bottom line is getting bigger, that way they can give good report to shareholders. If it's not good, then address the mitigating factors that held up the campaign's effectiveness in the marketplace and what can be done next time to increase profitable response. Think quality, not quantity

Step 2: Understand Audience Business Questions
Understanding the fundamental business questions that stakeholders need answered aligns the dashboard against priority goals and objectives, rather than vanity metrics. What questions does the audience have? What is marketing’s contribution to revenue? How have our campaigns performed? What is the impact of our branding efforts? What is our program ROI? How best can the questions be answered? What key metrics will answer the questions? What data can be accessed to provide answers? Is the data credible? What systems and resources can support measurement? How frequently must the data be updated? Are daily, monthly or quarterly refreshes needed? Is real-time data required? Are there constraints on pulling data? What decisions does the data need to support?

With new leadership and corresponding organizational changes, NetApp seized the opportunity to rethink how marketing describes its value. An explicit reference to the key questions at hand oriented the team to the desired metrics Deck is reflective of marketing strategy; brand to help Gives a sense of their priorities New logo growth and target accounts: also take a central spot on dashboard

With new leadership and corresponding organizational changes, NetApp seized the opportunity to rethink how marketing describes its value. The current dashboard truly echoes marketing’s strategy, and reflects ongoing stakeholder alignment Deck is reflective of marketing strategy; brand to help Gives a sense of their priorities New logo growth and target accounts: also take a central spot on dashboard

Marketing leaders often need separate reporting outputs ⎼ one to convey marketing’s impact and others to manage the marketing function. Business-facing Marketing-facing Sharing marketing’s contribution to creating business value Authoritative tool for managing departmental marketing results Purpose Executive business leadership and senior marketing staff Audience CMO and marketing leadership Focus: Summarized program-level performance linked with business impacts Focus: Function-level performance against defined departmental goals highlighting outputs and readiness Reporting Content Demand creation Reputation Sales enablement Readiness Priority initiatives Field marketing Demand center Communications Marketing operations Portfolio marketing Digital/web/social Connects what is done with desired business impact Helps us predict what performance is likely to be Helps identify weakness and problem areas Indicates how well the strategy is being executed against Provides the ability to adjust Did we do what we said we would?

Step 3: Tell a Story The most compelling view of marketing performance begins with the big picture and logically connects it with the motions marketing makes. Who, what, when, where, why: the most important information Supporting information and key quotes Additional facts, information, and quotes Background and alternative explanations Least important information Reporting an dashboards need to tell a story. Measurement results and data points are not always intuitive or readily actionable.

Step 3: Tell a Story Executive Summary Reputation Demand Creation
The most compelling view of marketing performance begins with the big picture and logically connects it with the motions marketing makes. Functional Readiness Priority Initiatives Sales Enablement Demand Creation Reputation Executive Summary Reporting an dashboards need to tell a story. Measurement results and data points are not always intuitive or readily actionable.

Step 3: Tell a Story Marketing Goals Demand Reputation
Revenue Customer Acquisition Retention Marketing Goals Profitability Market Share Demand Demand Creation Program Performance Waterfall Volumes, Velocity, Conversion Sourced/Influenced Pipeline, Bookings, or Revenue Cost of Pipeline, Bookings, Revenue Reputation Reputation Program Performance Awareness (Reach/Share of Voice) Perception (Sentiment/Association) Preference (Engagement/ Loyalty/Advocacy) Notable Coverage Sales Enablement Sales Enablement Program Performance Program Participation Certification/Training Asset Utilization Velocity Product Mix Deal Size Priority Initiatives Integrated Campaign Performance ABM Pilot Product Launches Proprietary Events Digital Transformation Readiness Measures SLA Compliance Budget Performance Training Database Health/Growth Based on our True Costs of Marketing 2017 data, here are the program dollar budget allocation percentages against these program families: Demand Creation 45% Reputation 29% Sales Enablement 19% Also, marketing is not the only function that sources demand. Sales and tele-teams area also responsible for this.

Pulling It Together - Campaign Measurement Example
Tactic effectiveness needs to be considered relative to its intent and within the context of what needs to be accomplished. Campaign Measurement Framework Addresses campaign-wide achievement against top-level goals Campaign Summary Measure against defined objectives connected to success Programs Reputation Demand Creation Sales Enablement Market Intelligence Shows near-term outputs of tactic performance Tactic Types Advertising SEM PR Social Ad Impressions Clicks Inquiries Cost A 1,000 20 4 $500 B 3,000 10 8 $5,000 C 2,000 200 2 $1,000 Tactic Shares Clicks Subscribes Cost A 12 20 4 $500 B 10 8 $50 C 5 200 2 $0 Tactic Performance

Campaign Measurement Example
Organized by tactic type, program and campaign, view combinations of actions relative to campaign objectives. Campaign Measurement Framework Revenue Goal $$$ Campaign Goal 1: X% Market Share Campaign Goal 2: +Y% Retention Campaign Summary Reputation Goal 1: +Q% Reach Reputation Goal 2: +R% Perception Reputation Goal 3: +S% Preference Programs Reputation Demand Creation Sales Enablement Market Intelligence Tactic Types Advertising SEM PR Social Ad Impressions Clicks Inquiries Cost A 1,000 20 4 $500 B 3,000 10 8 $5,000 C 2,000 200 2 $1,000 Tactic Shares Clicks Subscribes Cost A 12 20 4 $500 B 10 8 $50 C 5 200 2 $0 Tactic Performance

Campaign Measurement Example
Organized by tactic type, program and campaign, view combinations of actions relative to campaign objectives. Campaign Measurement Framework Revenue Goal $$$ Campaign Goal 1: X% Market Share Campaign Goal 2: +Y% Retention Campaign Summary Demand Goal 1: +Q% Pipeline Demand Goal 2: +R% Velocity Demand Goal 3: +S% Influence Programs Reputation Demand Creation Sales Enablement Market Intelligence Tactic Types Webinars Social Content Syndication Events Webinar Reg Attend MQL Cost A 250 120 20 $5,000 B 500 100 8 $8,000 C 125 90 12 $3,000 Event Attend Inq Briefings Cost A 50 12 $8,000 B 300 25 3 $10,000 C 100 20 6 $5,000 Tactic Performance

Step 4: Use Effective Visualization
CMO dashboards feature different impact metrics – visualization enables an audience to focus on the most important elements of performance. Example dashboard was built in Tableau.

Performance vs. Targets Relevant Business Measures Prominence Equals Importance Context for Performance Important Footnotes to the Story What methods help make dashboard information easily consumable? The following guidelines will help dashboard creators to determine how best to display information in a CMO dashboard. Show relevant business measures. To establish the connection between marketing program performance and business impact, dashboard creators must select organizational-summary-level data that pus marketing’s contribution in context of the entire organization’s performance against business-wide objectives (e.g. account growth, retention rates, market share changes). These impact metrics serve as reference points against which marketing’s program-level performance will be evaluated. Include metrics for summary-level objectives assigned to marketing (e.g. loyalty scores). Display additional summary metrics for drivers for marketing’s efforts (e.g. revenue). Summary-level metrics create a basis for comparison; failure to include comparisons may result in tone-deaf assertions that marketing is performing wonderfully, while the key performance indicators that the function is expected to drive are suffering. Put data in context. Show performance relative to targets, so that executives can clearly see how marketing is doing against its goals. If possible, showing performance against trends and external benchmarks also put the data in context. Use intuitive performance symbols. Make it easy to interpret results using graphical cues like a traffic-light color technique (e.g., green, yellow and red) to indicate status of hitting goals or arrows to indicate trends. Prominence equals importance. To ensure the audience “gets” the information quickly, the most important performance metrics should receive the most real estate and/or boldest graphic treatment to attract attention. Tell a story. Consider adding complementary metrics, footnotes, or captions with hyperlinks to drill-down data to cite potential reasons for improvement/erosion. Also, note what has been planned to fix problem areas. We recommend summarizing key takeaways on a concluding page to build on your story behind “why” performance issues exist and how to correct.

Use Intuitive Performance Indicators Make it easy to interpret results using graphical cues like a traffic-light technique or arrows Create Clear Labels Ensure audiences can tell at a glance what information is being displayed Think About Visualization Use visualization techniques to ensure the reader “gets” the information quickly Put Data in Context Show performance relative to goals, trends and external benchmarks if possible Other considerations: Convey priority Organize topically Arrange the story logically Use clear labels Simplify comparisons Avoid overload Include space for commentary

Step 5: Weave in Analysis and Specify Actions
CMO Dashboards should highlight important insights, summarize key takeaways, and clearly call out proposed actions to address problem areas. 1 Look for relationships between data points that can be logically combined or contrasted 2 Add analysis of why the data is as it is 3 Highlight important insights gained from the data analysis 4 Consider the potential reasons for improvement/erosion 5 Add what has been planned or proposed to fix issues and address problem areas Use complementary metrics, footnotes or captions with hyperlinks to drill-down data to cite potential reasons for improvement/erosion. Dashboard creators also should note what has been planned to fix problem areas and summarize key takeaways on a concluding page to build on the story behind why these performance issues exist and how to correct them. @

Notes & Highlights CAC over the last four years has been changing - keeping in perspective the shift in 2012 to start focusing on larger enterprise customers CAC increasing significantly, however, maintaining a steady LTV:CAC ratio to be illustrated below Notes & Highlights In a typical Inside Sales Organization that has M%-CAC at 20-50%, the 40% numbers are in line with expectations for our business. Notes & Highlights Significant increase in spend after FY10 necessary for growth Have maintained close to 4.0 for the duration of the last 2.5 years – indicative of a business model that’s working – as the industry gets more competitive, need to identify whether investing more is required Average investments per customer are increasing year-over-year maintaining a good ratio with our additional spend Example of a BOD reporting package from a high growth SaaS start-up.

Notes & Highlights This chart identifies what channels FY13 prospects have been generated in with the Costs Per Prospect (CPP). Also included are the opportunities generated as a result of the initial lead source to date – which is expected to increase given lag-time from prospect to opportunity. Cost Per Prospect (CPP) is hitting the overall CPP goal, but a new adjustment of channel spend will be required to lower the more expensive channels Focus on inbound channels will be heightened in second half of FY13 with newly acquired content team New webinar upgrades have been made to leverage great CPP Notes & Highlights This chart identifies what initial lead source the 22 FY13 Wins to date originated from and shows what the last marketing touch point was for all wins. Marketing generated prospects account for 18 (82%) of the 22 closed deals in FY13. Overall influence is with 100% of closed deals. Other metrics presented by this company included staffing, demand generation highlights, press coverage, event and webinar highlights, operational improvements and next quarter’s objectives.

Common Dashboard Metrics and Examples

The CMO Dashboard: Primary Metrics
Revenue Customer Acquisition Retention Marketing Goals Profitability Market Share Demand Demand Creation Program Performance Waterfall Volumes, Velocity, Conversion Sourced/Influenced Pipeline, Bookings, or Revenue Cost of Pipeline, Bookings, Revenue Reputation Reputation Program Performance Awareness (Reach/Share of Voice) Perception (Sentiment/Association) Preference (Engagement/ Loyalty/Advocacy) Notable Coverage Sales Enablement Sales Enablement Program Performance Program Participation Certification/Training Asset Utilization Velocity Product Mix Deal Size Priority Initiatives Integrated Campaign Performance ABM Pilot Product Launches Proprietary Events Digital Transformation Readiness Measures SLA Compliance Budget Performance Training Database Health/Growth Based on our True Costs of Marketing 2017 data, here are the program dollar budget allocation percentages against these program families: Demand Creation 45% Reputation 29% Sales Enablement 19% Also, marketing is not the only function that sources demand. Sales and tele-teams area also responsible for this.

Marketing Dashboard Analysis
Italics represents top two most often selected by peers. Category KPIs Metrics Adoption Marketing Strategy Market share Wallet share Customer satisfaction/loyalty Customer retention Customer lifetime value Customer profitability Campaign performance Customer buying cycle length Segment performance Regional performance Solution performance Account penetration All: 20% measure half or more >$1 billion: 20% measure half or more Marketing Investment Marketing spend % of rev. Marketing spend % of pipeline Budget spend actual vs. expected Program/personnel ratio Marketing program $/sales rep. Demand cost/rev. Program allocation Personnel allocation Cost per lead Cost per campaign Cost per new account Cost per inquiry All: 15% measure half or more Reputation Market awareness Share of voice Market tone Brand image/awareness Influencer awareness Web analytics Media mix Social media monitoring Community analytics Analyst positioning All: 10% measure half or more Demand Creation Asset utilization Marketing sourced pipeline Marketing influenced pipeline Database growth # marketing touches to qualify Sources of inquiries Inquiries Marketing qualified leads Sales accepted leads Sales qualified leads Closed/won business All: 65% measure half of more >$1 bill.: 40% measure half or more Sales Enablement Asset utilization by sales Customer engagement Growth of reference database Account-specific growth Certification of reps Deal desk support Lead aging Event participation Marketing influence post-SQL All: 0% measure half or more >$1 billion: 0% measure half or more

Top 10 Marketing Dashboard KPIs
Demand creation, marketing investment and campaign performance are the most tracked marketing measurement categories in marketing dashboards KPIs are measurements that provide insight on the health and performance of the business

Large Territory Accounts: Demand Creation Emphasis
Purpose Demonstrate the ability to efficiently generate demand Program Level Metrics Demand Creation: Marketing sourced pipeline Marketing Influenced pipeline Waterfall stage volumes Waterfall conversions Waterfall velocity Investment-to-pipeline Investment-to-revenue Waterfall stage cost-per-volume Readiness: SLA achievement Contact database quantity Contact database quality Waterfall and Pipeline Contribution Service-Level Achievement 30% Marketing Sourced 50% Marketing Influenced $20/1 Invest-to- Pipeline 10,000 Inquiries 1,000 AQLs 580 TAL 464 TQL 228 SQL $5.3 MM 5 Won $200 Per Inquiry $4000 per AQL 10% Stage Velocity 58.3% Stage Days Target Diff. AQL 20 10 +10 TAL 3 4 -1 TQL Even SQL 18 14 +4 80.1% 49.1% $14,000 per SQL 23.1% Marketing sourced pipelines exceeds 25% of 25% Marketing influenced is under 75% target. Sample Dashboard Components What metrics demonstrate the marketing contribution in large territory markets? Organizations focused on large territories with many accounts put an emphasis on creating demand to support growth through account expansion. Though marketing will run a variety of programs, demand creation metrics will be prominently displayed in the CMO dashboard. The purpose of these dashboard elements is to demonstrate marketing’s ability to both create demand to support the business’s revenue and pipeline goals. Demand Creation. The primary indicators of demand creation performance are marketing-sourced pipeline and revenue (see the brief “Demand Creation Dashboards: Evaluating Demand Creation Performance”). Some dashboards will present a view of the SiriusDecisions Demand Waterfall, while others may isolate and present key quantities and conversion rates against defined targets at specific points within the waterfall. More advanced dashboards may present waterfall velocity data in addition to volumes and conversion metrics. To demonstrate the ability use its demand creation investment efficiently, dashboards present the associated cost per ratios. We recommend presenting cost-per ratios at selected stages (e.g. cost per tele-prospecting qualified lead [TQL] = $500) to demonstrate return at the top end of the funnel, and investment-to-revenue or investment-to-pipeline as an indicator of overall return on investment. Readiness. There are several dimensions of readiness that impact demand creation, which are often noted on CMO dashboards. Performance against service level agreements (SLAs) across marketing, telesales and sales is a key indicator of health of the lead management process, which could be measured by how many leads meet the SLAs at each stage or the days in stage compared to targets. Another key indicator is the status of marketing’s database of addressable contacts, which could be measured in terms of total number of contacts or total by key buying persona within your target markets.

New Markets: Brand and Readiness Emphasis
Purpose Demonstrate the ability for marketing to penetrate new market. Organization Summary Market share Win-Loss ratio New logos Program Level Metrics Reputation: Awareness Perception Preference Share of Voice Sentiment Readiness: Contact database quantity Contact database quality Product launch readiness decrease Brand Awareness Y1 – Y2 increase constant Brand Health Share of Voice Contacts by Region Competitive Win Rates Sample Dashboard Components What marketing metrics are important when organizations are entering a new market? When organizations enter new markets, their top challenges are building reputation and ensuring marketing’s readiness to drive programs in that market. The new market could be a new region, new industry or new buying segment where prospects have little to no experience or knowledge of the organization. According to SiriusDecisions benchmark data, reputation programs can account for 40% or more of the marketing programs budget. Reputation Metrics. Use categories from the “SiriusDecisions Brand Measurement Framework” (awareness, perception, preference) to characterize reputation performance. These categories convey how conscious the market is of the seller as a potential solution provider, how individuals in targeted markets feel about the seller and how likely they are to select the seller’s offerings over alternatives in the marketplace. Sub-components of reputation include share of voice, sentiment, and loyalty and also may be highlighted. Avoid standalone measures, such as Web, social media or press activity without appropriate context, which are more appropriate for function-level dashboards on reputation building tactics. Readiness Metrics. There are many readiness considerations when entering a new market, especially the organization’s readiness for its product launch. Another key indicator is the status of marketing’s database of addressable contacts. Building the database will require work on identifying segments, accounts, titles and personas within the new target, each of which could be measured in terms of total number of contacts or or percent of target required to address the market. Market Traction. When establishing a foothold in a new market, comparative measures of business success help to tell a complete story. Organizational summary measures, such as market share and win rates within the time horizon of your report, will compare and contrast marketing success with business success in the new market. Acknowledge the competitor set used in developing these measures.

Mature Markets: Ensuring Efficient Use of Program Investment
Purpose Convey the influence of marketing’s programs in mature markets. Program Level Metrics Sales Enablement: Sales effectiveness Sales stage acceleration Time-to-productivity Certifications achieved Asset utilization Sales rep satisfaction Reputation: Impressions to Revenue Web visitors to SQLs Sentiment to stage velocity Operational Efficiency: Budget actual vs. plan SLA compliance Inbound/digital capabilities Asset Utilization Training Effectiveness Sample Dashboard Components Actual vs. Planned Budget What performance metrics become relevant in mature, established markets? Organizations that have an established business selling to enterprise accounts are focused on demonstrating efficiency across their programs. Marketing will also focus a larger share of their marketing budget and efforts on sales enablement. SiriusDecisions benchmark data indicates that these organizations spend greater than 40% of marketing program budget on sales enablement, with demand creation investment at 30-40%. Sales enablement metrics. The purpose of this section is to convey the influence of marketing’s actions on improved sales performance, and not as a replacement for activities led by a formal sales enablement function (e.g. sales skills training). Reporting should summarize marketing’s influence on deal cycles in terms of pipeline acceleration, focusing on deal velocity, deal size, touch analysis, product mix and success rates. Certain output metrics, such as asset utilization, certification or training utilization, are appropriate to prove to the executive audience that marketing’s sales enablement programs are being leveraged by the sales teams. Reputation. Reputation programs may be a smaller percentage of overall budget, but they are important to maintain positive perception and preference for the company’s offerings. To support marketing’s case for efficient use of resources, reputation programs is often shown in context of its impact on improving demand creation efforts. This connection can be made through narrative text and supported by comparative trend lines. The challenge in brand measurement is establishing a logical and understandable method for connecting those measures to business value. To do so, we recommend correlating the brand measurements to defined waterfall metrics. Organizations often create indexes of summarized brand measures to create a single index value that can be consistently tracked to convey improvement. You can then plot the index against waterfall stages to see whether improved or degraded reputation is having an impact on cycle time, win rates, deal size or total pipeline. Operational Efficiency. In established markets and organizations that are focused on maintaining profitability, executives will pay close attention to marketing’s own operational performance. Portions of the CMO dashboard will often include budget tracking information that shows how spend compares with forecast, to ensure that utilization is neither too high nor too low. Ability to meet service-level agreements with sales and telesales function demonstrate well-functioning processes. This section may also highlight marketing skills training initiatives, since their purpose is to ensure that the marketing organization is continuing to develop its abilities to meet its objectives. Sample Dashboard Components

ABM: Demonstrate Influence within Target Accounts
Purpose Demonstrate the ability to generate demand with an Account-Based Marketing (ABM) strategy. Program Level Metrics Demand Creation: Revenue growth Upsell/cross-sell pipeline Lifetime value (LTV) Reputation: Key account engagement Retention rates Advocacy participation Sales Enablement: Account knowledge Sales utilization Readiness: Contact growth ABM skills enablement Account Engagement and Revenue by Tier Engagement Development Impact Segment % Contacts Competed % Contacts Engaged Ave. Engaged/ Account Oppty. Pipeline Conv. Rates New Revenue Offering Growth Loyalty Tier I Tier II Tier III Marketing Influenced Revenue Customer Advocacy Account Status Q1 Goal % Referenceable Accts 225 300 75% Marketing engaged 50 75 67% Social advocates 23 46% Award Winners 10 8 125% What metrics demonstrate marketing’s contribution in an account-based marketing (ABM) approach? For organizations that employ account-based marketing (ABM) strategies, demand creation and reputation metrics must represent the focus on a select set of accounts. Marketing efforts in sales enablement and pipeline acceleration also play a more significant role in supplying sales with market and account intelligence. Demand creation across segments. When organizations employ an ABM strategy on specific accounts in segments, but not their entire addressable market, then comparisons across these segments is appropriate. In these instances, if trying to win net new target accounts, viewing waterfall metrics, win rates, deal velocity, deal size, revenue and pipeline contribution for strategic or key accounts versus territory accounts will demonstrate the comparative effectiveness (or ineffectiveness) of the ABM strategy. Progress should be measured against the appropriate targets, as their goals will be different across those segments. Importance of influence. Sales plays a more significant role in sourcing new opportunities, especially in large account ABM models, and pipeline and revenue influence is an important gauge of marketing’s contribution to demand creation. Marketing influence revenue or pipeline is the portion that marketing has touched during a set time period, which could be prior or after it was created as an opportunity. Typically, the demonstration of influence requires the acceptance of a marketing offer through a deliberate action, such as filling out a Web form to download content, and the definition of these parameters must be agreed between marketing and sales. See the brief “Measuring Marketing Influence: Getting Specific” for additional background on measuring influence. Reputation and advocacy within account segments. When an organization selects a set of focused accounts, one of its prime objectives is to become a favored, trusted supplier of its offerings within those accounts. Dashboard creators often use key reputation metrics such as awareness, perception and preference within the target segment. In addition, they will use metrics that support a retention strategy, such as brand loyalty and brand advocacy to demonstrate marketing’s ability foster and leverage growing preference within the account set. Target account readiness. In an ABM strategy, Marketing plays a significant role in support of sales by developing a comprehensive database of the addressable contacts within the accounts, and initiating engagement with its marketing programs. These programs include contact data acquisition and enhancement to identify the key buying personas and both inbound and outbound tactics that get target account contacts to engage and reveal additional contact information. Metrics that demonstrate enablement of ABM skills gaps is another key readiness metric for organizations making the transition. Sample Dashboard Components

Indirect Channels: Represent Performance Across Channel Dimensions
Purpose Demonstrate and contrast marketing performance within channel(s) and direct business. Program Level Metrics Demand Creation: Marketing sourced pipeline Marketing Influenced pipeline Waterfall stage volumes Waterfall conversions Operational Efficiency: Marketing Spend MDF/Co-op Balance & Utilization Average Profit Margin Readiness: Partner Enablement Marketing Campaign Utilization Marketing Content/Tool Adoption Demand Creation by Channel Partner Enablement MKT AM Team 2,700 AQLs 26% 702 SALs Pipeline 238 SQLs $3.1MM 34% Direct MKT AM Team 1,500 AQLs 15% 225 SALs Pipeline 238 SQLs $1 MM 25% Indirect Sample Dashboard Components Won Won MDF Status by Region How do you represent the complexity of performance in an indirect model? Most business-to-business organizations sell and market through both direct and indirect channels. Demonstrating performance in channels, as well as across multiple partner types (e.g., distributors, resellers, systems integrators, etc.) offers several dimensions of added complexity that dashboard creators must consider. See the brief "Route-to-Market Options: Partner Type Definitions". Similar metrics, different targets. Expectations for performance metrics must be different for the channel business, and between different partner types. For example, demand creation metrics such as the percentage of marketing sourced pipeline and waterfall conversion metrics will have different targets based on different processes, partner adoption, and other factors. So, we recommend clearly representing the different targets and progress for both direct and indirect channels, and if necessary different partner types within the indirect channel. Unique metrics demonstrate adoption and readiness. Partners operate their own businesses, and are often representing offerings from multiple suppliers. Channel marketing needs to demonstrate its success in working with partners to adopt its marketing programs and capability to drive demand for the organization’s solutions. In terms of program adoption, key indicators include measures of campaign material utilization, active partners in cooperative marketing campaigns, and utilization of marketing development funds (MDF) and other incentives. In terms of readiness, the number of partners enabled to market, recommend, sell or support the solution, their certifications and the utilization of training content and tools are key indicators that partners are in position to qualify leads and opportunities for the organization’s solutions. The Channel Program Model. Dashboard creators should consider the SiriusDecisions Channel Program model as a guide for channel marketing metric selection for both the CMO dashboard and drill-downs into program and tactic-level views. The model includes the components of plan, recruit, enable, create demand, transact and report, and optimize. For more information, see “Introducing the SiriusDecisions Channel Program Model”.

Complex Organizations Display Metrics Across Multiple Dimensions
Purpose Demonstrate marketing contribution across dimensions that critical to business performance. Metric Dimensions Geography Business Unit Industry/Vertical market Campaign Account Type Product/Solution Horizontal Segment Pipeline by Country, Business Unit and Campaign Demand Waterfall per Segment Sample Dashboard Components How do you represent marketing impact across complex, matrixed organizations? In complex organizations with multiple business units, product lines CMO dashboards must provide a hierarchy of views into performance data that enable individuals in various roles to form conclusions and take action. The challenge is that the more summarized reporting becomes, the less visibility it provides into specific areas where the business is performing well and where additional attention is needed. Typical reporting dimensions that have not been addressed already in this report, include: Geographic. Sales and marketing are often organized by global regions that are frequently divided further into sub-regions and countries that have their own management structures, profit-and-loss statements (P&Ls) and goals. Business unit. Reporting often follows the way the organization funds its operations, resulting in business unit reporting that typically corresponds with defined P&Ls. In some organizations, this produces essentially the same result as product/solution reporting, but in others, a business unit may encompass several offerings. Industry/vertical market. If organizations choose to evaluate their performance across defined industry segments, precise definitions of each industry are required to ensure reporting clarity; customer and prospect accounts are then tagged accordingly. Sales, marketing and product teams also may be organized around these segments. Campaign. As campaign investments are made around defined buyer needs and buying audiences, reporting views show the results for each campaign. While campaigns might have leadership teams responsible for their execution, these teams normally serve as an overlay function, since sales and marketing organizations are typically not built around dedicated campaign support. Product/solution. Organizations may choose to view their performance primarily in terms of products or solutions, tracking results for various product lines or other groups of offerings. These views take a horizontal perspective, cutting across any industry verticals the offerings may be geared toward. Dashboard creators must gain clarity on which dimensions are important for the CMO dashboard to represent early in the planning process of your measurement program. For more information, see the brief “Managing Views for Marketing Reporting”.

Addressing Common Dashboard Pitfalls

CMO Dashboard Common Pitfalls
In addition to design flaws, CMO dashboard usage can be impacted by functional misalignment, process issues, and communication failures. No link to marketing goals Inconsistent metrics Irrelevant metrics Too much complexity Demand measurement myopia Shiny new object syndrome Insufficient communication

Pitfall 1: No Link to Marketing Goals
Quantifiable marketing goals must be established. Without goals, marketing activity, output and impact measurement occurs in a vacuum Business Objectives Marketing Priorities Marketing Goals Marketing Strategy Key Actions Dependencies/Risks Maintain 10% enterprise segment growth to achieve $500MM revenue Source revenue in growth segments (Immediate) Drive business results with the “Efficiency” campaign (Immediate) Produce annual ACME World conference (Immediate) Sustain ACME’s brand reputation and relevance (Long-Term) Build a digital marketing environment for future growth (Long-Term) Increase effectiveness and efficiency of the marketing organization (Long-Term) Increase enterprise customer retention rate by 25% $135MM in upsell/cross-sell pipeline ($15MM sourced, $120MM influenced) Retain: Maintain existing customer base; recapture lost accounts Grow: Drive upsell/cross-sell revenue within customer base Create: Build customer retention program Keep: Maintain ”Efficiency" campaign for enterprise upsell/cross-sell Keep: Expand existing large- account ABM program Ecosystem implications to current field, sales and customer support teams Need to improve ABM skills on field marketing team Resource constraints to execute retention program Drive 35% mid-market growth to achieve $220MM revenue Drive $132MM in sourced pipeline and $400MM in influenced pipeline Grow: Expand mid-market footprint via new customer acquisition Fix: Update ”Efficiency” campaign for mid-market buyers Demand center requires technology investment Gain a foothold in SMB to achieve $30MM revenue Move to #5 in SMB vendor preference, and #2 in share of voice Implement marketing e-commerce infrastructure by launch date Innovate: Enter SMB market via new offerings and delivery channel Create: Establish an SMB reputation program Inside sales team is resourced to support ecommerce model E-commerce infrastructure and SMB product offerings are complete Grow ACME World annual conference attendance by 20% Marketing sources 40% of annual attendance goal Grow: Increase event attendance from mid-market prospects Harvest: Increase event output and control costs Fix: Develop ACME World content for mid-market buyer needs Assumes 10% budget increase for event execution Support 15% company growth rate by attracting and retaining top talent No associated marketing goal, strategy or key actions

Pitfall 2: Inconsistent Metrics
Many marketing organizations struggle to establish common definitions of leads, Demand Waterfall® stages, key terminology, and consistent metrics definitions. Level 0 Unqualified contact. Contact information for a prospect (or an anonymous visitor record) exists in the marketing database. Level 1 Initial inquiry. The prospect has demonstrated an initial level of interest in an offering. Level 2 Profile fit. The prospect matches both the company and individual characteristics of the target profile. Level 3 Activity qualified. Level 2, plus activity (for an individual lead or cumulatively across multiple contacts in an account) has reached a threshold that demonstrates a level of significant interest and engagement. Level 4 Unverified propensity to buy. Relevant information indicating propensity to buy (one or more elements of budget-authority-need-timeframe) has been obtained (e.g. through Web registration) but has not been verified. Level 5 Verified propensity to buy. Relevant information indicating propensity to buy (one or more elements of budget-authority-need-timeframe) has been verified through direct interactions with the prospect or prospects. Level 6 Commitment to engage. Level 5, plus agreement to meet at a specific date/time. Ideally, measurement programs have executive support and are championed by the CMO or even the CEO. A formal or informal champions program also can be effective in identifying, engaging and motivating members of the marketing organization to carry the measurement banner in their parts of the business. In return for their advocacy, champions programs may offer participants an added level of measurement support, recognition for their work and an influential voice in future development. Enable champions with regular briefings and updates to keep them informed of measurement initiatives and successes.

Pitfall 3: Irrelevant Metrics
Alignment with high-level marketing goals and business objectives focuses the CMO dashboards and prevents it from becoming a repository of vanity or irrelevant metrics.

Pitfall 4: Too Much Complexity
Effective dashboards answer executive questions on marketing performance, convey priority, simplify comparisons – and avoid data and reporting overload. ABC-Co.com

Pitfall 5: Demand Measurement Myopia
Often marketing dashboards are demand-creation-centric, so they fail to communicate how marketing’s holistic impact contributes to the business. Dashboards are three times more likely to have good metrics coverage in demand creation than in reputation © Copyright SiriusDecisions. All Rights Protected and Reserved.

Pitfall 6: Shiny New Object Syndrome
While having access to business intelligence software or data visualization tools is useful and recommended for dashboard creation, it is not a requirement.

Sample Campaign Performance Dashboard
This dashboard is entirely built in Excel.

Pitfall 7: Insufficient Communication
While valuable, the CMO dashboard should not be the only vehicle to communicate marketing performance. Vehicles Executive presentations Town hall meetings Team meetings Quarterly/monthly reviews Marketing newsletter Others… Cadence Annually Quarterly Monthly Weekly Ad hoc requests Others… Vehicles and Cadence

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Communicating Marketing’s Performance: The CMO Dashboard

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Communicating Marketing’s Performance: The CMO Dashboard

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