Dan Fannin: VP Business Process Excellence @ Regal Beloit CEMA Dan Fannin: VP Business Process Excellence @ Regal Beloit Marketing & Measuring ROI

The Burning Question? How do we Measure Marketing Success? Objectives Strategy Fine-Tuning Marketing Strategy Success Metrics Strategy Deployment

Campaigns Marketing Product Price Target Market Place Promotion E-mail Marketing Advertising Trade Shows Digital Social Media Sales Promotions Direct Public Relations Literature Publications

Marketing Campaign Models Digital Traditional Event/Field Merchandising Demonstrations Trade Events Field Sales PR/Media Relations In Store/P.O.S. Direct Mail Print Collateral Website Social Media/YouTube Web Banner Ads eMail SMS/Mobile Print Advertising Customers today interact with brands via multiple channels, often simultaneously. For marketers, the fundamental business imperative is to make the customer experience truly seamless and highly relevant across a growing spectrum of channels. Selecting Communication Venues Ways to interact How to interact Where to interact Three key customer touchpoints

Marketing Campaigns Designed for one thing – Lead Generation Tradeshow Leads eMail Blast Leads Trade Publication Leads Targeted Industry Research Other Leads Goal: Marketing campaigns are to convert leads to customers. This Photo by Unknown Author is licensed under CC BY-SA

Marketing Campaigns Designed for one thing – Lead Generation Tradeshow Leads eMail Blast Leads Trade Publication Leads Targeted Industry Research Other Leads Hand off to company Sales Professionals This Photo by Unknown Author is licensed under CC BY-NC

Marketing Campaigns Lead Generation to Customer Sales Professional Role is convert Leads to Orders This Photo by Unknown Author is licensed under CC BY-NC-ND

2017 Gleanster and Forrester Study 25% of the leads you generate are totally unqualified; they won't ever buy. 50% of the leads generated are qualified; but not ready to buy right now. 25% leads are legitimate and should advance to sales. Sales reps make 1.3 (average) call attempts before giving up on a lead. Research: Source: 2017 Gleanster Research and Forrester Research studies

Current State of Lead Generation Tradeshow Leads eMail Blast Leads Trade Publication Leads Targeted Industry Research Other Leads Research shows only 20% of sales leads are ever followed up. In other words, 80% are lost without trace simply due to lack of follow-up. https://www.marketingdonut.co.uk/sales/sales-techniques-and-negotiations/why-you-must-follow-up-leads This Photo by Unknown Author is licensed under CC BY-NC-ND

Tangible In-Tangible Lead Definitions Lead: Opportunity Generation - The Science Focuses on capturing contact information for follow-up. A lead has a known data profile and can be counted, scored and traced to specific financial outcomes. Lead: Demand Generation - The Art Focuses on shaping perception and creating interest in your product or service. The goal is to engage the largest portion of your audience as possible and make them want what you offer. Opportunity Generation – primary objectives Know and profile of your audience Identify quality leads and prospects Identify specific contact for sales follow-up Provide qualified leads and pass to sales Demand Generation – primary objectives Generate interest and demand Educate and provide insight Drive brand awareness and perception Increase audience ‘top of mind’ Tangible In-Tangible

Tangible In-Tangible Lead Definitions Lead: Opportunity Generation - The Science Focuses on capturing contact information for follow-up. A lead has a known data profile and can be counted, scored and traced to specific financial outcomes. Lead: Demand Generation - The Art Focuses on shaping perception and creating interest in your product or service. The goal is to engage the largest portion of your audience as possible and make them want what you offer. Opportunity Generation – primary objectives Know and profile of your audience Identify quality leads and prospects Identify specific contact for sales follow-up Provide qualified leads and pass to sales Demand Generation – primary objectives Generate interest and demand Educate and provide insight Drive brand awareness and perception Increase audience ‘top of mind’ Tangible In-Tangible

In-Tangible Metrics Web & SEO Social Media eMail Marketing Total Visits First Time Visitor Pages Visited Return Visits Traffic Source Click Thru Rate Time on Page Content Download Unique Visitors Pg View /Session Referral Traffic Traffic Rate New Content Map Heat Map / Web Pg Key Word Perform SEO Traffic No. Pageview /Pg Content Backlog New Content Views Avg Time / Content Top Post Viewed Domain Authority Link Building Metric Page Load time Mobil Ready Organic Search Registration Use of Apps & Tools Social Media eMail Marketing Twitter Tweets Twitter Followers Twitter Share Facebook Likes Facebook Views Facebook Share Facebook Comment YouTube Likes YouTube Views YouTube Shares Instagram LinkedIn Social Interactions Follower KPI Bad Email Address Bounce Rate Delivered Rate Total Open Rate Unique Open Rate Click thru Rate Unique Click Thru Spam Capture Rate Unengaged Rate Forward Rate List Growth Rate Opt-out Rate Subject/Open Rate Complaint Rate

In-Tangible In-Tangible Metrics Web & SEO Social Media eMail Marketing Total Visits First Time Visitor Pages Visited Return Visits Traffic Source Click Thru Rate Time on Page Content Download Unique Visitors Pg View /Session Referral Traffic Traffic Rate New Content Map Heat Map / Web Pg Key Word Perform SEO Traffic No. Pageview /Pg Content Backlog New Content Views Avg Time / Content Top Post Viewed Domain Authority Link Building Metric Page Load time Mobil Ready Organic Search Registration Use of Apps & Tools In-Tangible Social Media eMail Marketing Twitter Tweets Twitter Followers Twitter Share Facebook Likes Facebook Views Facebook Share Facebook Comment YouTube Likes YouTube Views YouTube Shares Instagram LinkedIn Social Interactions Follower KPI Bad Email Address Bounce Rate Delivered Rate Total Open Rate Unique Open Rate Click thru Rate Unique Click Thru Spam Capture Rate Unengaged Rate Forward Rate List Growth Rate Opt-out Rate Subject/Open Rate Complaint Rate Unknown order conversion rate. “Ratio to Sales” metrics can build ROI metrics to measure campaign effectiveness. Unknown order conversion rate.

The Challenger Sale Compete and win in a customer-empowered world 2011 by Matthew Dixon & Brent Adamson Research from InsideSales.com shows that 35–50% of sales go to the vendor that responds first. https://www.gartner.com/en/sales-service/insights/challenger-sale

Tangible In-Tangible Lead Definitions Lead: Opportunity Generation - The Science Focuses on capturing contact information for follow-up. A lead has a known data profile and can be counted, scored and traced to specific financial outcomes. Lead: Demand Generation - The Art Focuses on shaping perception and creating interest in your product or service. The goal is to engage the largest portion of your audience as possible and make them want what you offer. Opportunity Generation – primary objectives Know and profile of your audience Identify quality leads and prospects Identify specific contact for sales follow-up Provide qualified leads and pass to sales Demand Generation – primary objectives Generate interest and demand Educate and provide insight Drive brand awareness and perception Increase audience ‘top of mind’ Tangible In-Tangible

The Burning Question? How do we Measure Marketing Success? Historically: Number of New Products Introduced! Number of New Catalogs Produced Number of New Trade Publications Ads / Articles Number of Sales Promotions and People Trained Number of Distributor Visits and Number Trained Number of OEM Visits and Number Trained Number of New Customers (Count) Number of Sales Dollars Generated (about once every 3 years) But, when the market slowed, Marketing Budgets were the first to be reduced.

The Burning Question? How do we Measure Marketing Success? “ROI is the most important measurement for marketing.” The best way to measure marketing effectiveness is to calculate the return on investment using three factors: What is the new Customer Lifetime Value? What is the Cost to Acquire Customer? What Call To Action converted them to a paying customer? Having these three pieces of data allows us to make smarter marketing decisions and where we should spend money.

What is the new Customer Lifetime Value? Customer Lifetime Value (CLV) Measure the amount of gross profit or sales that is generated from a customer over the entire time they do business with a company. Customer Lifetime Value – Marketing Campaign Marketing Campaign Or, measure annual volume of sales that is generated from a customer. Annual Sales – Marketing Campaign Marketing Campaign or Gross Profit – Marketing Campaign Marketing Campaign https://www.investopedia.com/articles/personal-finance/053015/how-calculate-roi-marketing-campaign.asp

What is the Cost to Acquire Customer? Cost to Acquire Customer (CAC) Cost of acquisition is a term used across business and accounting to describe the total costs incurred when signing a new customer. As a business sales term, cost of acquisition is tied to marketing and sales campaigns because the more streamlined those campaigns become, the lower the customer cost of acquisition will be. Sales Activity + Engineering Support + Marketing Campaign # New Customers Since these costs can be quite high, it is a standard rule of thumb in business that it costs more to sign a new client than to retain a current client. https://www.investopedia.com/terms/c/costofacquisition.asp

What is the Cost to Acquire Customer? An out of balance business model Cost to Acquire a Customer (CAC) Samples Cost Engineering Cost Monetization (LTV) Sales Cost Marketing Cost

What is the Cost to Acquire Customer? A well balanced business model Monetization (LTV) Cost to Acquire a Customer (CAC)

What Call To Action converts lead to customer? Call To Action (CTA) Call to Action is a campaign comparison model designed to maximizing spend. Customer Lifetime Value – Tradeshow Marketing Campaigns (All shows) Tradeshow Marketing Campaigns (All shows) VS. Customer Lifetime Value – Web Marketing Campaigns (All) Web Marketing Campaigns (All) VS. Customer Lifetime Value – Publication Marketing Campaigns (All) Publication Marketing Campaigns (All) https://www.investopedia.com/articles/personal-finance/053015/how-calculate-roi-marketing-campaign.asp

Summary Tangible In-Tangible What is the new Customer Lifetime Value? What is the Cost to Acquire Customer? What Call To Action converted them to a paying customer? In-Tangible Use ‘Ratio to Sales’ metrics and build ROI metrics to measure campaign effectiveness. As you consider or expand your Marketing Metrics, Metrics should have Orders or Sales in the calculation!

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