What does the marketing performance management space look like in 2017? Where does multi-touch marketing measurement fit and what are the benefits?
Allison Snow is a Senior Analyst on Forrester’s B2B marketing team with a focus on marketing performance management. She recently discussed her research and perspective on the marketing performance management space, including Bizible’s role as a multi-touch marketing measurement and insight solution.
She begins by discussing the challenges and opportunities that B2B marketers face, then moves on to her research in marketing performance management, offering insights into the benefits of the right mindset. With this context, she then discusses the findings of Forrester Consulting’s study conducted on behalf of Bizible, including an ROI of 734%, a net present value of over $4 million, and a payback period of less than one month.
Here is the transcript (lightly edited):
Challenges and opportunities facing B2B marketers
It’s no understatement to say that marketers are flying blind when it comes to prioritizing programs and building budgets – they largely can’t connect marketing efforts to pipeline and revenue.
Forrester survey results reflect that the single biggest challenge faced by B2B marketers as they set budgets is "attributing program spend to revenue results." Their second biggest challenge is "demonstrating a clear return on marketing investment."
The imperative of marketing performance management is reinforced by several trends identified in Forrester’s research:
- Insights-driven firms are 39% more likely to report year-over-year revenue growth of 15% or more. Marketers need to reflect on their roles in insights-driven firms and determine paths to provide critical and actionable data.
- 82% of CMOs have goals that align with revenue targets. Marketers need to define and align what metrics matter – those that are attached to revenue-relevant decisions.
There’s a wide gap between activity metrics and business results. B2B marketers want to fill that gap, but struggle to meet the demands of insight-hungry organizations.
- First, existing measurement infrastructure doesn’t support management. Trying to manage with tools designed to measure isn’t sustainable. It’s not possible to patch together a cogent story about performance by manually reconciling what influenced each deal one at a time.
- Marketers can’t see anything. Without visibility into which interactions ultimately drove revenue, marketing is unable to run programs that are likely to drive leads, opportunities, and conversions.
Overview of research in MPM space and benefits of a marketing performance management mindset
For organizations that do replace a measurement mindset with a marketing performance management strategy, the payoffs will be huge.
- Marketers have an opportunity to catapult their departments from one that relies on C-level support for credibility and influence to one that empowers the C-suite with actionable data.
- They can get into the trenches with Sales by sharing their goals and working toward metrics that demonstrate marketing’s impact on revenue and business objectives.
- They can access and leverage data that reveal which efforts correlate with the creation of opportunities and which to desist.
- They can stop sharing dashboards and reports and instead share recommendations for optimization.
- They can stop having conversations about “what happened” and instead have conversations about what levers to pull to make things happen.
- They can make immediate adjustments to campaigns-in-progress, shifting budget from low-performing to high-performing campaigns for considerable collective impact.
- They can measure engagement in target accounts in support of high-visibility ABM initiatives.
- They can demonstrate the impact of marketing programs to business audiences like financial managers, operations managers, boards of directors, and investors.
- They can attribute revenue to marketing touches that performed across channels.
- And finally, they can reduce the cost required to acquire leads that will perform throughout the customer lifecycle – not just for qualification by marketing.
But know that the movement toward marketing performance management is not organic and won't simply happen with time. Instead, it is a purposeful adoption of new and enhanced methods to manage marketing planning, investment, execution, and assessment on a continuous basis.
What was the study about? What were the results? What were the benefits?
In December 2016, Forrester Consulting delivered a Total Economic Impact, or TEI, case study analysis to quantify and articulate the value of Bizible’s multi-touch marketing measurement and insight solution.
Forrester Consulting’s analysis was based on interviews with 4 current Bizible customers to understand the economic benefits that B2B marketers may experience through implementing Bizible for marketing performance management.
Based on our interviews, Forrester Consulting designed a composite organization and built a three-year risk-adjusted financial model resulting in a 734% ROI, a net present value of over $4.1 million, and a payback period of under one month.
Forrester Consulting’s analysis uncovered a number of quantified benefits in this case study, including profit growth from an increase in marketing lead volume and improved marketing lead quality, reduced cost per marketing qualified lead, and reduced marketing operations costs.
In order to adopt Bizible, the composite organization invested in Bizible licenses, dedicated resources to plan, configure, and implement Bizible within its marketing organization, and tasked a number of employees with ongoing marketing performance monitoring, management, reporting, and optimization activities.