1. Evaluating Your Multi-channel Marketing Investments
July 12, TJukes
Evaluating Your Multi-channel Marketing Investments
ECMOD
London, Oct 6-7th, 2010
Terry Jukes - President
B2B Direct Marketing Intelligence, LLC.

2. July 12, 2007 www.B2BDMI.com TJukes
We Are “Conductors”!
Most B2B marketers today are “conductors” of their multi-channel “orchestra”.
“Conducting” has become increasingly complicated with many “new instruments”.
Historically, spending on outbound telesales has steadily grown.
Recently online marketing expenditures have skyrocketed.
ECMOD

3. B2B Marketing Investments
Typical B2B DM’ers invest in….
Catalog/solo/mailings
Inbound sales & marketing
Outbound sales & marketing
Online
Web presence/online catalog
Paid search
Organic search
Other?
WWW @
ECMOD

4. … Plus Other Marketing Investments
July 12, TJukes
… Plus Other Marketing Investments
Offline:
Retail stores?
PR?
Sponsorships?
Distribution deals?
Field sales?
Dealer networks?
Wholesale?
Online:
1. Webinars?
2. Podcasts?
3. Online videos?
4. Blogging?
5. Landing pages?
6. “Net gnat” brands?
7. Content
ECMOD

5. How do we evaluate our various activities in a way that allows us to constantly adapt and re-balance our investments?
ECMOD

6. Where To Begin?
How do you effectively measure all your diverse activity with a common yardstick and effectively allocate your scarce marketing dollars?
How do you move towards “real time, automated, customer driven, interactive, marketing spending”?
Where do you start?
ECMOD

7. What are some of the commonly used measurements?
ECMOD

8. Common Campaign Measurements
Orders #
Sales $
Net RRs %
New orders, sales, RRs.
Incremental orders, sales, RRs.
AOV, MOV
Margin $,%
Costs (fixed and variable)
Contribution margin
New site/name acquisition costs.
Repurchase rates
Retention
LTV
Others?
ECMOD

9. Mail Measurements: Catalog, Solo Mail
RR, AOV, MOV, LPO, UPO, $/cat, $/page,
Sales first 14 or 21 days…to forecast
Sales by product category
Performance vs. forecast (curve)
Yr/Yr results
Merge/purge results, match back results
Seed measurements-timeliness, quality
Marketing contribution
Others?
ECMOD

10. Inbound Phone Measurements
By Dept.
Sales, calls, orders, total talk time, man-hours, payroll, $sales/$payroll, available time/paid time, data collection, up sell, retention,
By Rep:
Sales, calls, orders, UPO, LPO, available time, total talk time, avg talk time, quality (qualitative), data collection, up sell, retention
Product test scores (training)
Others?
ECMOD

11. Outbound (Program) Telesales
By Dept.
Net leads, Calls, connects, presentations, talk time, closes, rejects, Sales, AOV, MOV, UPO, LPO, coverage/penetration of file, returns, payroll/overhead to sales, retention/react.
By Rep.
Calls, connects, presentations, talk time, available time, closes, rejects, Sales, AOV, UPO, LPO, performance rank, returns, retention/react, quality.
Other?
ECMOD

12. Account Management Sales
By rep:
# accts assigned, Q/Q, Y/Y acct growth/decline and comparison to control, site penetration (share of wallet), product category penetration, sales trends by site, calls, talk time, personalized faxes/ s sent/received, quotes presented, talk time, available talk time, paid time, $/names managed/mailed, AOV, LPO, UPO, personalization/custom order rate, name/site retention/order frequency….and the qualitative measures.
By dept.
All of the above, payroll/overhead to name, site and revenue growth.
Other?
ECMOD

13. Website Measurements WWW Traffic sources, search terms, site rank
Direct entry URL
Proprietary versus non-proprietary search terms
Organic listing or PPC
Links/Affiliates/ => landing page
Pages opened, viewed, printed, time spent.
New visitors vs. repeat visitors.
Registrations…varying levels.
Total visits, page views, driver of visit?
Abandon shopping carts.
Other?
WWW
ECMOD

14. Measuring Multi-channel Marketing
July 12, TJukes
Measuring Multi-channel Marketing
For each activity, develop a summary of what you put out (costs, time) compared to what you get back and when/where.
Where you don’t have hard numbers, assign a judgmental value or allocation.
Come to a “bottom line” to be used for comparing and balancing your marketing investments.
Continue to improve and refine your measurement system.
Find ways to make it work versus reasons why it can’t.
Avoid “silo” decision making.
ECMOD

15. What Could Another $100K Produce?
Activity
Last $100K?
Next $100K
Action
Prospect Mail
Generate sales
($50,000)
($75,000)
Hold
Acquire new customers
$100,000
$75,000
Invest
Customer Mail
$200,000
Retain names/sites
$50,000
$10,000
Inbound sales training
$300,000
OBTM
Program 1
$500,000
Program 2
Program 3
($90,000)
Reduce
Program 4 - New
$400,000
Test
Online Mktg
Site
$1,000,000
$250,000
SEM
$1,500,000
PPC
$700,000
$2,000,000 PR
Sponsorships
Field Sales
Other
ECMOD

16. MatchBack PLUS Is there an opportunity to improve matchback processes?
Capture source data for online orders.
Direct entry (branded)URL
Proprietary or non-proprietary search term
Click on search result or PPC ad.
Capture sales rep code
National acct rep and OBTM rep
ECMOD

17. Fractionally Allocate Orders
What marketing activity gets what % of the credit?
Online order, direct entry URL, assigned rep?
Online order, proprietary search, PPC click, no catalog mailed?
Online order, non-proprietary search, catalog mailed?
Online order, non-proprietary search, PPC, competitor’s catalog mailed.
Inbound phone order, OBTM called?
Online order from campaign?
ECMOD

18. Case Study – B2B Catalog
Situation: B2B Catalog with inbound, outbound (program and relationship) and online marketing efforts. How were various efforts measured, assessed, rewarded?
ECMOD

19. Case Study – B2B Catalog Inbound Sales
July 12, TJukes
Case Study – B2B Catalog
Inbound Sales
Reps given training & quality standards
Comparative performance posted and discussed
Monthly bonuses for top quartile performers
Sales, Gross Margin
AOV
Up-sell = units per order/UPO
Cross-sell = lines per order/LPO
Did not reward calls, call length, time connected, etc.
ECMOD

20. Case Study – B2B Catalog Program telemarketing
Dials, talk time, file penetration, presentations coached with guidelines.
Orders, sales and margins rewarded with percentage commission.
Credit given for inbound orders received from customers pitched within 14 days.
No extra credit given for callback (inbound)orders.
ECMOD

21. Case Study – B2B Catalog Relationship sales
Approx. 500 assigned accounts with prior year orders/revenue/margin base established.
Annual/quarterly goals set. New account and penetration of existing goals set.
Monthly commission paid on incremental gross margin generated.
All catalog and promotional expenses charged to the rep’s “P&L”.
Ghost territory held for comparison
ECMOD

22. Case Study – B2B Catalog Catalog mailings
Source code tracking with quarterly match back analysis.
Catalogs had item pre-fix codes and some had special pricing ($.97)
Direct entry and proprietary search term orders 80% allocated to the mailings.
“White mail” 100% catalog
ECMOD

23. @ Case Study – B2B Catalog Email programs Triggered Promotional
Order, Ship confirmation, Abandon Cart, New customer (name), Account details change, Lapsed customer
Promotional
Consumables continuity
Seasonal products and annual events (i.e. back to school)
New product introductions
Cross-sell offers
Non-seasonal events (i.e. oil spill)
CTRs, conversion, promo products vs. other. @
ECMOD

24. Case Study – B2B Catalog WWW 100% to activity SEM
Non-proprietary search terms captured to order
80% credit to SEO, 20% site maintenance
PPC
Non-proprietary search terms,
Click PPC -80% SEO, 20% PPC
Click organic listing – 100% SEO
Affiliates & Online advertising
100% to activity
WWW
ECMOD

25. Thank you! Questions? Terry Jukes - President
B2B Direct Marketing Intelligence LLC