Transcript

© 2014 Demand Metric Research Corporation in Partnership with Ascend2. All Rights Reserved.

Benchmark Report

Marketing Automation:

Sponsored By:

TABLE OF CONTENTS

3

4

5

6

7

8

Executive Summary

Revenue Performance

Marketing Automation Objectives

Marketing Automation Success

Marketing Automation Obstacles

Resources for Marketing Automation

11

13

About Marketo

Appendix – Survey Background

9

10

Marketing Automation Features & Factors

Marketing Automation Metrics

12 About Demand Metric & Ascend2

EXECUTIVE SUMMARY

Marketing automation has dramatically increased the effectiveness and efficiency of finding, nurturing and converting customers.

But what will marketing automation success look like in the year ahead and how will marketers achieve it?

To find out, Demand Metric, in partnership with Ascend2, fielded the Marketing Automation Benchmark Survey and completed

interviews with 291 business, marketing and sales professionals from around the world. We thank these busy professionals for

sharing their valuable insights with you.

The charts in this edition of our study, titled Marketing Automation Benchmarks by Revenue Performance, compare the

strategies and practices of companies that have achieved or exceeded their revenue goals with those that have not.

This research has been produced for your use. Put it to work in your own marketing strategy planning and presentation

materials. Clip the charts and write about them in your blog or post them on social media.

Please share this research credited as published.

- Jerry Rackley, Chief Analyst – Demand Metric

3

13%

45%

42%

Current Revenue Performance

Exceedingrevenue goals

Achievingrevenue goals

Not achievingrevenue goals

REVENUE PERFORMANCE

The charts in this report compare the strategies and

practices of companies responding to the Sales Experience

Quality Benchmark Survey that are achieving or exceeding

their revenue attainment goals.

58% of participating organizations are achieving or

exceeding their revenue goals, while 42% of

participating organizations are not currently achieving

their revenue goals.

Figure 1: Current Revenue Attainment for Organizations Participating in Study

Marketing Automation Benchmark Survey, Demand Metric and Ascend2, July 2014, n=291

4

MARKETING AUTOMATION OBJECTIVES

Figure 2: Most Important Marketing Automation Objectives for the Upcoming Year

This study endeavored to understand the most important

goals for marketing automation programs.

Participants were asked to choose all objectives that apply

to their program. The collection of responses is presented

in Figure 2.

Companies achieving or exceeding their revenue goals

indicated they were more likely to target the improvement of

lead nurturing, lead generation and marketing productivity.

While companies not achieving revenue goals

responded that an improvement in marketing

productivity was their most important objective, they

were more likely to rate an increase in sales revenue as

a key objective rather than lead nurturing or lead

generation. It is important to note that an increase in sales

revenue would be greatly impacted by an improvement in

lead nurturing and an increase in lead generation, which it

seems that achieving organizations have already learned

for their processes.

5

Marketing Automation Benchmark Survey, Demand Metric and Ascend2, July 2014, n=291

13%

20%

24%

40%

49%

41%

50%

37%

18%

25%

28%

38%

41%

42%

42%

46%

0% 20% 40% 60%

Reduce sales cycle

Improve marketing-sales alignment

Improve performance measurement

Improve lead quality

Increase sales revenue

Increase lead generation

Improve marketing productivity

Improve lead nurturing

Most Important Marketing Automation Objectives

Achieved or Exceeded Revenue Goals Did Not Achieve Revenue Goals

CURRENT MARKETING AUTOMATION SUCCESS

Figure 3: Self-Assessment Ratings of Current Marketing Automation Success

Study participants were asked to provide a self-assessment

of their current marketing automation success.

The aggregate data collected from these ratings can be

seen in Figure 3 to the left.

Overall, the majority of participants, no matter their revenue

performance, rated their marketing automation program as

either “Very successful” or “Somewhat successful.” 92% of

under-achieving companies reported some level of

success with marketing automation; and their

achieving counterparts reported a 93% success rate.

Although most organizations are reporting some level

of success with marketing automation, companies that

are achieving or exceeding revenue goals were twice

as likely to rate their program as “Very successful.” On

the other hand, both categories of revenue performance are

reporting their programs as unsuccessful at an almost

equal rate.

6

Marketing Automation Benchmark Survey, Demand Metric and Ascend2, July 2014, n=291

28%

65%

7% 14%

78%

8%

0%

20%

40%

60%

80%

Very successful Somewhat successful Not successful

Ratings of Current MA Success

Achieved or Exceeded Revenue Goals Did Not Achieve Revenue Goals

MARKETING AUTOMATION OBSTACLES

Figure 4: Most Challenging Obstacles to Marketing Automation Success

As with any strategy or implementation, we may encounter

obstacles in order to become successful.

This study examined the most challenging obstacles to

marketing automation success and the responses are

detailed in Figure 4.

Not surprisingly, budget limitations was ranked as the

most challenging obstacle for achieving companies

and the second most challenging obstacle for non-

achieving companies.

Most notably, more than half (52%) of all companies

not achieving revenue goals indicated that lack of an

effective strategy as the most challenging obstacle to

obtaining success with a marketing automation

program. Developing and implementing an effective

strategy for marketing automation would most likely

eliminate the likelihood that these organizations would

encounter any other challenges in their processes.

7

Marketing Automation Benchmark Survey, Demand Metric and Ascend2, July 2014, n=291

20%

18%

25%

22%

42%

28%

52%

45%

9%

16%

22%

22%

38%

41%

42%

44%

0% 20% 40% 60%

Not enough leads

Ineffective metrics

Lack of management buy-in

Difficult to use interface

Lack of skilled staff

Insufficient data quality

Lack of an effective strategy

Budget limitations

Obstacles to Marketing Automation Success

Achieved or Exceeded Revenue Goals Did Not Achieve Revenue Goals

RESOURCES FOR MARKETING AUTOMATION

8

Figure 5: Description of Resources Used for Marketing Automation Campaigns

This study attempted to discover what resources were most

commonly used to implement, manage and track marketing

automation programs.

Participants indicated whether they used an outsourced

agency/consultancy, in-house resources or a combination

of both. The results of this inquiry appear in Figure 5.

More than half of companies not achieving revenue

targets and nearly half of those achieving or exceeding

their goals indicate using in-house resources only to

run their marketing automation campaigns.

Interestingly, companies achieving or exceeding their

revenue goals are more likely to outsource all or part

of their automated marketing campaigns, gaining

expertise not found internally.

Consequently, the revenue achieving organizations may

obtain a higher level of marketing and revenue

performance.

Marketing Automation Benchmark Survey, Demand Metric and Ascend2, July 2014, n=291

9%

45% 47%

5%

37%

57%

0%

10%

20%

30%

40%

50%

60%

Outsourced to an agency orconsultancy

Combination of outsourced andin-house resources

In-house resources only

Resources Used for MA Campaigns

Achieved or Exceeded Revenue Goals Did Not Achieve Revenue Goals

MARKETING AUTOMATION FEATURES & FACTORS

9

Figure 6: Most Important Features & Factors Considered for Marketing Automation Systems

The marketing automation technology landscape is rapidly

expanding with many new features and functionality. There

are many factors that need to be considered in order to

select the system that fits best with an organization.

Study participants were asked to select the most important

features and factors to be considered in order to select a

marketing automation system.

Respondents had the ability to choose any and all options

that apply to their selection process and the responses are

detailed in Figure 6.

The ability to analyze and report on marketing

performance is the most important factor in choosing a

marketing automation system for companies achieving

or exceeding revenue goals. While this functionality

was second on the list for under-achieving companies,

the most important factor for these organizations was

a system’s ease-of-use.

Marketing Automation Benchmark Survey, Demand Metric and Ascend2, July 2014, n=291

6%

12%

15%

19%

25%

29%

24%

34%

45%

33%

37%

9%

12%

18%

20%

25%

25%

26%

34%

36%

36%

42%

0% 10% 20% 30% 40% 50%

Landing page builder

Message personalization

Website visitor ID and tracking

CRM included

Lead segmentation and scoring

Pricing and/or pricing model

Lead capture and management

Email and campaign management

Ease of use

All-in-one solution

Analytics and reporting

Important Factors for MA System Selection

Achieved or Exceeded Revenue Goals Did Not Achieve Revenue Goals

MARKETING AUTOMATION METRICS

10

Figure 7: Most Useful Metrics to Measure Marketing Automation Performance

As analytics and reporting functionality were rated as one of

the most critical factors in selecting a marketing automation

system, this study attempted to understand what the most

useful metrics were to measure the success of marketing

automation program.

Participants were asked to select all choices that apply to

their program and the results are presented in Figure 7.

For both achieving and under-achieving organizations,

more than half of respondents indicated that the most

useful metric was lead conversion rates.

After the top rated metric, we begin to see discrepancies

between the two revenue performance categories.

Companies achieving or exceeding revenue targets

rank lead generation ROI and revenue generated as the

second and third most useful metrics, respectively.

Those companies not achieving revenue targets

ranked revenue generated and leads generated as the

second and third most useful metrics, respectively.

Marketing Automation Benchmark Survey, Demand Metric and Ascend2, July 2014, n=291

18%

19%

41%

26%

32%

49%

32%

56%

16%

22%

25%

31%

32%

38%

47%

57%

0% 20% 40% 60%

Website traffic

Open/click-through rate

Leads generated

Pipeline value generated

Cost per lead

Revenue generated

Lead generation ROI

Lead conversion rate

Metrics for Marketing Automation Performance

Achieved or Exceeded Revenue Goals Did Not Achieve Revenue Goals

ABOUT MARKETO

Marketing Software. Easy. Powerful. Complete.

You want results and you want them fast. The Marketo platform is built by marketers, for marketers. Everything you need –

marketing automation, social campaigns, inbound marketing, sales apps, ROI reporting, - all in one place.

For more information, visit www.marketo.com.

11

ABOUT DEMAND METRIC & ASCEND2

About Demand Metric

Demand Metric is a global marketing research & advisory firm serving a membership community of over 40,000 marketing

professionals, CEOs, and business owners with advisory services, 100+ research & benchmark reports, 20+ consulting

methodologies, 50+ training e-workshops & courses, and a library of 500+ practical tools and templates.

Using Demand Metric resources, members complete projects faster and with greater confidence, boosting respect for the

marketing team and making it easier to justify needed resources. Our 1,200+ corporate clients range from start-ups to consulting

firms to members of the Global 1000.

To learn more about Demand Metric, please visit: www.demandmetric.com.

About Ascend2

Ascend2 is a market research firm with over 50,000 research subscribers and survey panelists comprised of sales & marketing

professionals. Each month they field new research studies and generate reports that typically include 12 to 18 pages of charts and

analytical commentary.

Demand Metric partners with Ascend2 to leverage their panel of research survey panelists and develop additional benchmark

reports for community members. Learn more about Ascend2 at www.Ascend2.com.

12

APPENDIX – SURVEY BACKGROUND

13

Surveys are conducted online from a panel of more than 50,000 Ascend2 research subscribers, representing US and

international marketing and sales decision-makers and practitioners in a range of contact roles, company types, sizes and

geographic regions.

The questionnaire used incorporates standardized research practices across all studies while maintaining a proven 3-minute

survey format. Survey findings are examined in a quantitative context by experienced analysts and reported objectively.

The Demand Metric and Ascend2 2014 Marketing Automation Benchmark Survey was administered online in July 2014. During

this period, 291 responses were collected for inclusion in the analysis.

Summarized below is the basic categorization data collected about respondents:

Primary Role of Respondent:

C-level Executives (33%)

Marketing VP, Director or Manager (37%)

Sales VP, Director of Manager (5%)

Marketing or Sales Staff (16%)

Other (9%)

Employee Size:

More than 500 (25%)

50 to 500 (27%)

Fewer than 50 (49%)

For more information, visit us at:

www.demandmetric.com

Demand Metric Research Corporation 562 Wellington Street

London, ON, Canada N6A 3R5

© 2013 Demand Metric Research Corporation. All Rights Reserved.

Benchmark Report

© 2014 Demand Metric Research Corporation in Partnership with Ascend2. All Rights Reserved.


Recommended