Which KPIs to Measure, and When

January 14, 2016

Maybe you’re the CMO (Chief Marketing Officer), the Chief Sales Officer (CSO), or the one doing it all (sing: C-I-E-I-O). In any case, you are deeply involved with setting strategy, goals and KPIs that will help you make your number. Which measurements matter most, and why? Are you swimming in data and metrics, and confused by the options? You are not alone. Here’s why, and how to solve it.

Today, almost all of a buyer’s journey happens online before they speak with your company.  Often you aren’t even aware, although that can be fixed too (separate forthcoming post; follow this blog).

This means Marketing and Sales have to jointly engage potential buyers over a longer period of time, using multiple touchpoints, to reliably focus on helping the most needy customers and likely buyers.

Geting Organized

Knowing what to measure, and when to measure it, for each Tactic (video, whitepaper, etc.) and each Buyer Journey stage (people ask different questions as they proceed through to a decision), helps you optimize your relationship building efforts and improve sales and service.

The dizzying array of measurements and KPIs (Key Performance Indicators) often hinders progress, so we have reviewed the results of a number of client engagements to bring you an easy single-page reference table that you can use with any CRM system to guide your setup of meaningful measurements, accurately gauge progress, and know where your next sale is coming from.  Your own circumstances may be unique, but this is a start.

A Handy Funnel / KPI Planner Tool

Marketing Funnel KPI clip PreviewClick the spreadsheet snippet here to preview a .pdf of this free organizer tool that guides you through the most important KPIs to set for each Funnel stage, each Goal, and each Tactic you use to make customers and happiness happen. Sales and Marketing people across a number of client projects have tried this tool and liked it.

Get the Actual Working Tool – it’s free

The native file is much easier to work with than the Preview.  It is an ordinary Excel spreadsheet, and I have pre-set it with split windows so you can scroll right to reveal over 30 KPIs that apply for each Stage, Goal and Tactic, without losing sight of the main row and column headers. Check the last box on the list on this online order form to order your free copy.

Get the KPI planner tool - free

Over to You

Try it! I welcome your reactions, comments and suggestions. This KPI Chart will be added to our Resources page shortly, after it has been “out to play” among you for a little while and we have gathered your feedback. Of course, you will be notified of those updates, if you have downloaded the file.

As always, we couldn’t do what we do in this blog without your input, and from the valuable experience we gain working with clients and the many CRM, sales force automation and “social hive” tools we implement for them, too numerous to mention here.  Thanks!

Cheers, ~Ed


Are You the Toast of Your Customer, or just Toast?

October 28, 2013

on Sales & Marketing tech as core competencies

Spoiling customers rotten is the new black, the new mantra, the new grail quest.  Worst case: it seems out of reach, and you are toast.

champagne or toastWe see it everywhere.  We have come to expect each next interaction with our product and service providers to feel like progress, not another blind date.  Is that too much to ask?  It certainly has become a new watershed basis for satisfaction.  Ask any Amazon customer.  Examine your banking relationships.

As William Gibson famously said: “The future has arrived – it’s just not very evenly distributed”.  It seems that every day we are yanked between extremes. At one moment we are marveling at modern convenience, and the next moment we are musing about its glitches and unmet expectations, as if somehow entitled.  Maybe we are.  Maybe your customers think so.

Measuring up

Some organizations are equipped, focused and successful at doting on their audiences and customers.  Are you?  If so, great.  If not, why not; what’s keeping you from getting started?  The answer: a lot less than you think.  Of course you could cite the usual hindrances like people, time and resources, and yet today competing at selling, serving and pleasing customers is not an option or a choice, or even a competitive advantage. It’s a baseline expectation.  Table stakes.

Right now, as you read this, your business is either delivering value before, during and after each transaction, or you risk being replaced by a phone app (yep, there’s an app for that).  You can prevent ending up in that scrap heap by making up your mind to compete – affordably, and at scale. The tools are becoming easier to use and more sophisticated.  You just have to be motivated to change.

Our inflated expectations

Before even getting into a discussion on Sales CRM or Marketing Automation software, let’s look at one simple example of how tech tools have changed our behavior: the lowly appointment calendar.

Today, you can easily set your calendar software to remind you ahead of each appointment and keep you punctual, reliable and prepared. In business, we use it to update meeting schedules, locations and agendas, synchronize participants, and keep progress on track. Without it, we risk gridlock, confusion, wasted time and missed opportunity.

Getting and staying in calendar-sync, in some organizations, is a baseline expectation – not a choice. Indeed, for some, being on time is a core part of the business model. From Fedex to Comcast to Delta, we can now know precisely when the next step will occur, often within a time window measured in mere minutes.

Likewise, you can program your Sales CRM software and your Marketing ARM software to notify you when a potential buyer or customer is visiting your website, asking a question, mentioning your brand name in an online forum, or complaining.  If you’re not listening and participating, that’s the same as ignoring.  Is that the reputation you want?  Wouldn’t you rather be as aware as everyone else when your customers praise or complain?  Are you making it difficult for people to buy? Are you even listening? Isn’t ignoring a customer complaint posted on a social media channel the same as ignoring their emails and phone calls?

Expand your capacity

This seemingly new competitive edge – marketing and sales automation – has actually been going on for years in leading organizations. If you are not using CRM or ARM solutions, admit it:  you are limited by human scale and fallibility. You have limited visibility, difficulty forecasting, an over-reliance on intuition and guesswork, and are probably making costly but avoidable mistakes.  What’s worse, you don’t even know the extent of your self-inflicted damage because you aren’t equipped to pay attention.

Conversations today are rife with examples of fumbled relationships and millions of dollars in lost deals that could have been prevented, if only the right hand had known what the left hand was doing. Has this ever happened to you? If you answered no, how can you be sure? Do I smell burning toast?

Quick quiz: assess your readiness for CRM

Imagine what’s possible

With a tuned, integrated “software layer” embedded in your business, you can:

  • create self-guided online experiences, complete with landing pages, call/response email exchanges, up-sell and cross-sell processes, social media engagement incentives, and other valuable interactions;
  • detect the faint signals of purchase intent or dissatisfaction, and intervene to guide decisions;
  • enable your customers, prospects and suspects to research solutions, evaluate yours, and even whimsically waltz among various decision stages and feedback loops toward eventually deciding whether to inquire, pay, receive and use your offerings, all with minimal human intervention; of course you can program it to notify you at key junctures, so you can intervene and assist.

You might think this online commerce model only makes sense in big businesses, large catalogs, complex workflows or servicing a previous purchase, but not in yours.  On the contrary; just about any organization can benefit from marketing and sales automation to help you scale up, optimize your business, and use the reports to discover ways to simplify, improve service, and get better results.

Put simply: there are 7 billion humans, and not enough time or resources to do each task by hand.  It’s time to automate.  Put differently:  we are now all technology companies.  From Amazon and Nordstrom to state and federal government services, we expect technology to facilitate everything from transactions to relationships.  Right?

So, how big is it?

Virtually all the major business analyst firms, from Gleanster and Aberdeen Group to Gartner Group and Altimeter Group, report that top performing organizations are performing better partly as a result of adopting marketing and sales process automation solutions.  Personally, having spent over 15 years programming these customer decision journeys for companies large and small, using a broad palette of tools (see right sidebar),  I have seen the transformation firsthand: clients scaling up to cost effectively satisfy more people, to more cost-effectively and efficiently manage buyer, customer and user interactions, discover customer and buyer behaviors that indicate satisfaction or need, and more.

CRM and ARM software can make you more productive and competitive, freeing you to focus on the creative, intuitive and intellectual  aspects of improving your business, and support you in making better-informed decisions.  Marketing, sales and service organizations are doubling down on tech; indeed, analysts and industry forecasters expect Marketing and Sales organizations’ tech budget growth to outpace Information Technology departments in coming years.  This isn’t necessarily a replacement of the IT organization; rather, IT can be your closest ally when evaluating tech options.  Knowing one another’s agendas can help you transition more effectively to a premises / cloud blend of agile business resources.

The choices

So, if you’re feeling bogged down in drudgery, overwhelmed by the escalating demands and expectations of your customers, outpaced by better performing competitors, working harder yet not gaining ground, or possibly even mystified about flattening or declining business, please know that it doesn’t have to be that way.  You can enhance your chances of growth and success by having the right systems in place.  Consider investing in Marketing ARM and sales CRM tools.  Or not.  The choice is yours.  There’s that burned toast smell again.

Take this quick quiz to size up your growth opportunity.

As always, I welcome your comments, questions and suggestions.


How our Email Marketing Beats “Best in Class”

January 30, 2013

at sign dollar sign

“I loved your email!”

“Great email, thanks! ”

 – Quotes from our audience. What do yours say? 

Higher email conversion rates are “found money”, so why should you accept mediocre results from your email marketing?  At a time when email inboxes, while still hugely relevant, are increasingly locked down by users to ward off irrelevant content, the ability to get improved email results is a complex and coveted skillset – part brand journalism, part technology, part consigliere.  Our ability to repeatedly outperform marketplace benchmarks for our clients – and our own audience – underscores our expertise at leveraging that skillset.

Crushed It Again This Year; You Can, Too

In reviewing our portfolio of client sales and marketing campaigns related to events, new products, brand building, sales expansion, environmental and business development, we repeatedly find our results to be at or above “best in class” benchmarks as reported by Eloqua, a category-leading CRM software solution provider.

The free, downloadable presentation below offers a simple cheat sheet to help you monetize your email marketing, meet or beat “Best in Class” benchmarks, and turn your organization into a Fan Foundry.

Why your open rate may seem low

Like most email marketers, you are probably haunted by the question: what about the 3/4 of our list members who did not appear to “open” our emails?  Bear in mind, the vast majority of people preview email.  This doesn’t create a “hit” in the “Opens” bucket, but they still consume the first visible screen of your email.

Your results may vary from ours also based on what you measure.  The “Best in Class” numbers pictured in the presentation above represent a combination of all email list activity across many campaigns; naturally, “raving fan” lists far outperform other general interest lists and content.  Our Fan lists generally see an open rate north of 60%.

Note, too, that this article isolates email marketing from all other digital marketing we do (mobile, websites, etc.), which we measure separately.  For a sampling of some of the CRM, email marketing, Sales and marketing automation solutions we support for our clients, see this site’s right sidebar.

Dollars and Cents, Illustrated

Using the “Email click rate” data in the table on slide #2 above, you might reasonably assume that if you are among those “best in class” companies and attaining a 5% Click rate, and your annual click-through sales are $5M, then just by being our client last year you might instead have enjoyed our benchmark-beating 7.37% click-through (average) results, thereby attaining $7.37M in revenue.  Who couldn’t use that additional $2.7M?  In fairness, there are many success factors involved and your own results may vary. Here’s how.

This is How We Do It  – Year after Year (not a fluke!)

That answer to this headline is multi-faceted, but the key factors we found (see slide #4 above) were:

  • Benefits-oriented messaging (more on this below)
  • Data / list quality
  • Thoroughly leveraging marketing technology
  • Compelling content
  • Mobile-first formatting – fully half of all email opens are on mobile devices
  • Simple, “3-clicks to convert” navigation
  • Continuous refinement in all of the above areas

Benefits-oriented Messaging

Put simply, you give get.  Lead with a relevant offer, and follow up by exceeding expectations.  In practice, we found it even more effective to give, give, and – oh yes – give again, without expecting anything in return.  As one example, our success in producing the sales, marketing and digital media event series “North by North Shore” illustrates how treating even unknown remote prospects to a “friends and family” plan resulted in a tripling of the audience size and a corresponding lift in attendance.   To read more about that case, click here.

Obligatory Disclaimer

We report only aggregated results.  While our total activity reflects messaging in the hundreds of thousands, and the Eloqua study covers millions of messaging units, nonetheless we are encouraged by both the consistency of our year-over-year results and our painstaking methodology in capturing, measuring, reporting and verifying those results for our clients so that we can confidently report them here – and, incidentally, win some repeat business.

Learn More about the “How”

Subsequent blog posts (and some previous ones – see Related Articles below) will cover the other  “How We Did It” success factors in greater detail.   Use the “Keep in Touch” button (above, right) to get those updates.  Meanwhile, if you have a question, or would like to have us present our case to your organization, or to explore ways we might help you succeed, feel free to contact us.

Cheers,

Ed

Related articles


Big Data in Marketing: 3 Prep Steps

October 11, 2012

In preparing case studies for my talk titled “Be a Big Data Voodoo Daddy” at Boston’s October 2012 FutureM conference, I noticed that almost half of our 40+ client projects over the recent years had to first devolve from “Implementation” projects to “Readiness” projects – equally valuable, and absolutely necessary.  How’s yours going?

Is your marketing automation, CRM, analytics, email marketing or other automation project going to deliver your desired payback?  Here are my top 3 warning signs that it may take longer to pay off than you think.

Stated differently, here are 3 must-do’s to ensure near-term ROI.

1.  The Right Stuff (Value based Goals).

Let’s first assume that you’ve already connected with the concept of Marketing as Moneyball.   Still, you may find that you are not gathering useful, relevant data to help you accomplish your stated strategic goal and implement the right CRM or analytics solution.  This may stem from having broad, imprecise goals.  For example:

  • “Grow revenue” is a great goal, but the paths are varied and nuanced.
  • “Increase Partner Channel Revenue” is, well, getting warm.
  • “Double Partner Channel Service Contract Revenue” is more like it.  Now you have a specific channel, identified players, and a specific product/service element attached to a numeric goal.  Specific, measurable goals and then measuring the right things are both essential elements if you are to to yield any meaningful analysis to motivate and support change.  No matter how efficiently you automate the wrong data, you risk stretching out the time horizon for any meaningful payback or, worse, running in multiple or wrong directions and wasting effort.  Strategy comes first.

2.) The Stuff, Right (Data Analysis and Process Maps).

Typically, your data is not homogeneous and some necessary processes don’t exist yet.  Data often exists in a variety of formats ranging from locked spreadhseets and various departmental databases to unstructured documents, such as paragraph text and visuals.  Processes that don’t yet exist can’t be mapped to a system; you can’t automate a vacuum.

Significant effort is involved in standardizing and preparing data for upload into your new automated solution, as well as  selecting the right tools to enable you to access and mine insights from unstructured  information.  At Fan Foundry, we are familiar with an array of powerful tools, and can develop custom, reusable upload frameworks to help clients address current and future needs for unstructured data.

This is where the scope of a project almost always expands, as additional valuable information repositories become included, because we often discover additional insights using all available data that just would not be possible otherwise.  You never know where the breakthrough “aha” discoveries may lie.  If you don’t have the luxury to expand your analysis, though, then rigorously insist on only analyzing the most salient data.

3) The Players (People).

The talent shortage is legendary.  If you are inadequately staffed or trained to assume the role of data manager, analyst and strategist, or transformational leader, let alone carry on administratively after implementation, you shouldn’t start the project.  The time to assign roles is up front.  Get any necessary talent aligned first so they can be involved in the project.  Some of your team can adapt; sometimes you need to extend your team to include a capable partner.  The single most effective way to stretch out the payoff time horizon is to not involve its eventual owners and primary users, or not have the stomach to lead a transformation effort.  Be prepared to change, or else don’t start.

The full list of must-do’s is extensive, but if you tend to these three first, most of the rest will fall in line, and you’ll enjoy a successful implementation.

Toward a “Measurement Culture”

You’ll know you are succeeding when you have established a “culture of measurement” in which the right things get measured, the data supports meaningful analysis, all meaningful data is reflected in a single, integrated, centrally accessible “record of truth”, and you are using the insights you have gained to achieve transformations like improve margins, speed to market, pricing accuracy, supply chain efficiency, sales growth, and other incremental and transformational improvements.

Finally, it must be stressed that human judgment is not taking a back seat to data.   Interpreting analytics in light of pragmatic experience and using that knowledge to take calculated risks is a hallmark of success.


The Sales & Marketing Alignment Conversation

October 27, 2011

The path to sustained sales and marketing alignment can be a simple one – simple to do, simple to repeat, simple to remember.  All you need is a map.  In that spirit, I attempt here to boil down some alignment opportunities for Sales and Marketing leaders.

The chart below shows the three main focus areas each for Sales and Marketing which, if approached collaboratively, can improve business results and transform the relationship.  Below the chart is a set of definitions, followed by a few examples of how to apply it to your own situation.

Sales and Marketing Alignment topics chart

Sales and Marketing Alignment topics

3 Sales goals – Value, Volume, Velocity

Value.  Since it is almost as costly to close a small sale as it is to close a large sale, Sales professionals would be wise to focus on increasing the potential Value of each sale.  In larger organizations, differently skilled teams manage different sized deals.

Volume.  The more deal flow you can create, the better your chances of growing the customer base and improving the company’s financial ability to innovate and fulfill their evolving needs.

Velocity.  Increasing the speed of deal flow through the pipeline also increases your capacity to sell, grow the customer community, and learn from them to help you innovate and improve.

3 Marketing goals – Content, Community, Conversion

Content.  The more compelling and relevant your content, the more you will attract the audience most likely to benefit from your offerings.

Community.  The more your content resonates within and among audiences, the greater your capacity to build a community and engage in dialogue to improve sales, products, services, and support.

Conversion.  The more effectively you convert sales, the more you can learn from experience about how to improve the conversion process.

Conversations Worth Starting

Using the 3×3 chart above, look at the 9 intersecting boxes and ask the questions implied by the two nouns whose paths cross in each box.

Example 1:  Value + Content.  In the upper left intersecting box, where Value and Content intersect, Marketing might ask: How can we improve our Content to increase the Value of each sale?  Sales might ask:  How can the improved Value of each sale guide us in improving Content?  It’s the same question, asked from different perspectives, that aligns your response.

Example 2:  Conversion + Velocity.  In the bottom right box, where Conversion and Velocity intersect, Marketing might be asking: How can we improve the Conversion process to accelerate the Velocity of Sales?  Sales might ask: What sales accelerators can we use as input for improving the Conversion process?

See how it works?  You may come up with better questions to suit your organization’s culture and challenges.  Now, formulate your own questions using the relevant nouns for each intersecting box, turn those questions loose in your organization, and watch what happens.

Measuring results with analytics, sales CRM and marketing automation solutions can help you measure and manage your improvement.  If you need assistance here, contact us.

How’s it working for you?  What questions would you ask your colleagues to help you get better aligned?  Drop us a comment here; we’d love to hear your feedback!  Visit our Resources page for more free strategy tool downloads.




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