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Slide 1: RETURN ON MARKETING INVESTMENT A Lenati Point of View Jennifer Winter, Managing Partner Martin Mehalchin, Prinicipal mmehalchin@lenati.com 1
Slide 2: Elevating Marketing Using An ROI Mindset
Slide 3: The Marketing Executive’s Dilemma Average tenure for CMOs at the top 100 branded companies is just 22.9 months CMO Tenure – Slowing Down the Revolving Door (Spencer Stuart) Complexity & Sophistication Growth  Marketing organizations can/should take on many responsibilities for the organization –Product Marketing, Customer Research, Customer Segmentation, Go To Market Strategy, Customer Experience Programs – Pre/Post Sales, Brand, PR, Integrated Marketing/Demand Generation  Marketing channels continue to increase (search, 3rd party websites, affiliate marketing, social networking, influencer networks, viral/citizenship marketing) requiring investment trade-offs. Marketing continues to become more dependent on data and technology to achieve results requiring left and right brained talent 
Slide 4: Barriers to Optimizing Marketing’s Value/Promise • LEADING Strategy, Structure, Process • • • Access to evolving, specialized marketing capabilities and skills Proliferation of strategic objectives and marketing activities Visibility and accountability for outcomes versus credit for “looking good” Inconsistent connections between marketing and sales • Lack of common or shared goals • Sales not connected to campaign rollout/training efforts • LAGGING Data & Infrastructure • Lack of systemic, reliable information to make data driven decisions around optimizing marketing investment Typically limited ability to demonstrate the causal relationship between the impact of marketing and the achievement of overall business outcomes
Slide 5: Pathway to Tapping Marketing’s Potential - Step 1 1 Strategic Value & Intent Representative Strategic Themes Expand our Share of Mind to new Verticals and or horizontals Scale Our Offer In Our Chosen Market-space to “Be THE One” Impact Deliver The Base Promise Presence And Trust For Existing Customers Time • • • • Create a marketing strategy roadmap Prioritize strategic objectives and phase implementation over time Define and charter focus areas with success criteria Identify needed improvements to infrastructure and capabilities
Slide 6: Pathway to Tapping Marketing’s Potential - Step 2 2 Customer Centric Marketing Perceptual Journey of the Customer Awareness Consideration / Interest Need to Understand Value Evaluation Purchase Acquire/ Implement Obtain Solution and Implement Use Advocate Unaware of Capabilities Want to investigate Ready to buy Use and Maintain Want to share / engage Marketing Conversion Sales Conversion Post Sale Experience • Understand how customers buy, and their decision stages • Align programs and campaigns to decision points and deliver via customer-preferred channels
Slide 7: Pathway to Tapping Marketing’s Potential - Step 3 3 Operational Measurement & Alignment Operational Measurement & Alignment • Measurement & clear accountability for marketing outcomes • Productivity Measures – Are we delivering outcomes we committed to? • Efficiency Measures – Are we good stewards of allocated company resources? • Effectiveness Measures – Are the results achieving what we intended? • Marketing operations cadence • Monthly operations reviews • Marketing dashboards • Monthly contribution and funnel analysis • Quarterly Business Reviews (QBR’s) • Annual strategy review and evolution
Slide 8: Marketing Measurement Using Scorecards The typical CMO—according to our research—is able to neither measure nor systematically communicate on the fundamental business processes in the marketing function and their results. This can set the stage for a CMO's failure. CMO Council Report – Define & Align the CMO Scorecard Objectives Clarify and define the role and value of marketing Enable a learning organization that makes decisions on facts supplemented with experiential intuition rather than lots of intuition punctuated by a few facts; Creates a culture of performance and success and provides a tool to communicate why/how marketing matters to the business Elevate marketing accountability to earn the trust and confidence of the CEO, the CFO, and others throughout the company. ROI is a Mindset ROI is not a financial calculation. It is a measurement mindset that requires you to continually ask the following questions: Objectives: What am I trying to achieve? Audiences: Who am I trying to impact? Metrics: How will I define success? Resources: What will I need to invest? Results: How well did I do? Learning: How can I do better next time?
Slide 9: Category Spend Analysis – A 1st Step Toward ROI-driven Marketing
Slide 10: Structured Analysis Approach Return on Marketing Investment (ROMI) – Category Spend Analysis Framework Evaluate Spend/Cost Driver Categories • “Should we be spending on this at all?” • “Are we ignoring good opportunities?” • Category examples: online, traditional media, trade shows Evaluate Share of Spend • “Are we spending the right amounts?” • “Should we allocate more to `X’ and less to `Y’?” Evaluate Within Category • “Are we maximizing the opportunity?” • “Is marketing connected to sales? Are we generating leads?” • “Can we approach this category differently?”
Slide 11: Availability of Data Will Drive Precision of Analysis • Quantitative Sources – CRM data – Survey data – Benchmarking data • Qualitative Sources – Staff interviews (chiefly inside & outside sales) – Channel interviews (dealers, distributors, sales agents etc.) – End customer interviews If mostly qualitative input is available, then implement change as a series of measurable test and learn exercises
Slide 12: Process Based Analysis – Trade Show Example Forward Analysis Activity Trade show # of leads Inside Sales % of leads resulting in appts. Outside Sales Resulting closed sales (# & $ value) Reverse Analysis Sample set of closed sales Trace the history of the sale Where were the marketing touch points? Which touch points influenced the purchase decision? Did the decision maker attend a trade show? Metric Identify initial point of contact Was it a trade show?
Slide 13: About Lenati
Slide 14: Company Overview OUR BUSINESS Lenati is a services firm that designs, implements and optimizes marketing, sales and services experiences for companies who want to build stronger customer connection. We believe product innovation and pricing are no longer sufficient to drive competitive advantage – today it depends on a company’s ability to deliver a compelling experience across the entire customer lifecycle. We have the solutions and the team to get you there. OUR PEOPLE As part of our drive to be a services industry leader in helping organizations maximize their market performance, we have assembled a small, high powered group of professionals and strategic partnerships that help us deliver innovative solutions that can help your organization make an immediate impact in the marketplace. OUR SOLUTIONS We have five core service lines that we use to deliver stronger customer connection for our clients: • Go to Market Strategy • Market Assessment and Product Planning • Marketing Program Design & Optimization • Sales and Channel Program Design & Optimization • Relationship Management and Influencer Program Design & Optimization
Slide 15: Solutions Lenati offers a complete set of solutions to help your sales and marketing efforts to drive customer connection and satisfaction and increase revenue GTM Plan Business Plan Development Customer Segmentation Campaign Strategy Customer Loyalty & Retention Community & Influencer Programs Channel Strategy & Execution Partner Strategy & Management Tele/Online Sales Strategy Support Strategy & Org. Design Cross-Sell Strategy & Programs Acct Mgmt. Program Design Customer Experience Sales & Marketing Processes Competitive Assessment Pricing Strategy STRATEGIZE Market Assessment Market Assessment & Sizing Pricing Strategy Go to Market Strategy Persona Development Product Roadmap Development MONETIZE Marketing Strategy & Programs Relationship Marketing Programs Sales & Marketing Alignment Sales & Channel Strategy Lead Gen Strategy & Execution Comp & Quota Strategy OPTIMIZE Service & Support Programs Satisfaction Programs Sales & Service Alignment Marketing & Sales Optimization Marketing Spend ROI Sales & Marketing Analytics