Since then, it’s become popular with every marketing automation technology provider who uses to help explain a fundamental problem: how potentially good leads leak out of the demand generation process and how marketers must then spend more time, effort, and money recapturing them and putting these opportunities back in the sales pipeline. Which begs the question, “What am I really getting for my marketing dollar if some portion of the demand generation activity gets wasted?”
A CMO study sponsored by IBM last year found that, by 2015, most marketing departments will measure success using return on investment (ROI) as the primary metric. Most CMOs, however, struggle to demonstrate marketing’s ROI in a reliable way. Why? Because we haven’t instilled measurement discipline in marketing — or the technology, process, and automation to back it up. Since John Wannamaker turned his famous phrase about advertising, marketers have taken the easy way out by assuming much of marketing can’t be measured in a meaningful way.
But is the idea of measuring what matters in marketing that unattainable? Recently, I joined Bonnie Crater, CEO of Full Circle CRM (a start up firm I advise), in a conversation about why it’s important to plug a leaky demand generation process. Bonnie drew a great analogy to the book Moneyball: The Art of Winning an Unfair Game by Michael Lewis, which details Oakland Athletic general manager, Billy Beane’s focus on an analytical, evidence-based approach to assembling a competitive baseball team, despite Oakland’s disadvantaged revenue situation.
Like putting together a championship sports program, marketing teams must run a broad range of programs from advertising, public relations, and social media campaigns to lead nurturing and customer engagement programs. And they must do all of this with shrinking budgets and resources, against competitors who seemingly always have more (like the New York Yankees who brought in 3X the revenue when compared to the A’s). Showing how each of these programs contributes to the business requires a way to track every marketing generated response without overstating or distorting the results.
Using a response-based solution to automate this process helps level the playing field by allowing marketers to track, differentiate and report on the ROI of each program — and to connect multiple program touches to the people in the account where opportunities are developing. With response-centric intelligence, marketing executives can better optimize their portfolio and drive demand more efficiently. Automation allows marketers to be more like Billy Beane and the Oakland A’s, where you can use statistics and evidence to figure out which marketing tactics to ”draft” and how best to put the lineup together.
Check out Bonnie and my conversation about what it takes to move to response-based marketing and see why marketing automation can help you get there.