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Note: This Abbreviated Summary highlights some of the significant findings from
2014 ITSMA/VEM Marketing Performance Management Survey:
The Link Between Marketing Performance Management and Value Creation
A more in-depth analysis can be found in the full report available for purchase at:
http://www.itsma.com/research/2014-itsma-vem-marketing-performance-management-survey/
Abbreviated Summary | May 2014
The Link Between Marketing Performance
Management and Value Creation
2014 ITSMA/VEM Marketing Performance Management Survey
Julie Schwartz, Senior Vice President,
Research and Thought Leadership, ITSMA
Laura Patterson, President, VisionEdge Marketing
Dianne Kim, Research Associate, ITSMA
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
Study Highlights
The Situation
Despite marketers’ perceptions that they are
improving, the percentage of “A” marketers has
remained relatively constant.
Marketers must move from campaign producers and
sales enablers and seize the role of business value
creators. Until marketers speak the language of the
business and demonstrate value, they will be viewed
as overhead.
The Right Mindset
1. The “A’s” believe they can measure marketing’s
value and make it a priority
2. The “A’s” hold themselves accountable, even if
senior leadership does not
3. The “A’s” have a plan for continuously improving
marketing performance management
Nailing the Fundamentals
In addition to the right mindset, the “A’s” have nailed
the 5 fundamentals for aligning marketing activities
to business results
The value creators:
 Get clarity around the business outcomes that
matter by engaging in regular two-way dialog
with senior executives
 Select outcome metrics, in addition to activity,
output, and efficiency metrics
 Set and track quantifiable performance targets
 Establish clear data chains to link marketing
investments and activities with business
outcomes
 Build actionable dashboards to communicate
impact on business outcomes and secure
additional budget
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
Marketing organizations are under more pressure than
ever to create business value
% of Respondents (N=380) | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014
How do you see the pressure on marketing to measure its value and contribution to the business?
1% | Decreasing
85%
Increasing
Staying the Same14%
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
90–100
Marketing was able to measure and report
the contribution of its programs to the
business
80–89
Marketing programs made a difference but
the contribution to the business goals were
not measured and reported
70–79
Marketing appears to have made some
impact on the business, but it is not clear if
the impact was material, nor is it measured
69 or
lower
Marketing programs didn’t make a
difference—there is no clarity as to how
marketing is contributing to the business
Still, only 1/4 of marketers can answer the question,
“What is marketing’s impact on the business?”
% of Respondents (N=379) | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014
26%
40%
28%
6%
For 2013, using a 100 point scale, please select what grade the CEO/Division GM would give your marketing
organization for its ability to demonstrate its value and contribution to the business.
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
Where are you on the Marketing Performance
Management Journey?
What do you need to do to be best-in-class?
Campaign
Producers
Sales
Enablers
Business
Value Creators
The
“A’s”
Middle of
the Pack
Laggards
Track Marketing
Activity and
Output
Contribute to
Business
Outcomes
Improve and Manage
Marketing
Performance
Activity Outcomes
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
Two things distinguish “A” marketers
from the rest of their peers
The Right
Mindset
Nailing the
fundamentals of
aligning marketing
activities to
business results
&
Sooner or later,
those who win are those
who think they can.
Paul Tournier
1. Get Clarity
Around the
Business Outcomes
2. Select
the Right Metrics
3. Set Quantifiable
Performance
Targets
4. Establish Clear
Data Chains
5. Build Actionable
Dashboards
What needles does marketing
have to move?
Outcome-based, leading
indicators, and predictive
Well-defined and documented
for each marketing program
Between marketing activities, marketing
objectives, and business outcomes
Regularly presented to and
reviewed with senior
leadership
The “A’s” believe they can measure marketing’s contribution
to the business and hold themselves accountable
Note: Differences are statistically significant. | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014
In your organization or company, how important is it
that marketing is able to measure its value and
contribution to the business?
 Believe It’s Possible
16%
37%
59%
It is difficult, and perhaps even impossible,
to measure marketing’s contribution
to business outcomes
The “A’s”
(N=98)
Middle of
the Pack
(N=151)
Laggards
(N=127)
% of Respondents that Agree
or Strongly Agree
Does your marketing organization have a
revenue goal?
65%
41% 38%
The “A’s”
(N=83)
Middle of
the Pack
(N=120)
Laggards
(N=104)
 Hold Themselves Accountable
% of Respondents with a Revenue Goal
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
71%71%The majority of
the marketing
staff has
business
acumen
1. Get Clarity
Around the
Business
Outcomes
% of Respondents that Agree or Strongly Agree
The “A’s”
(N=97)
Middle of
the Pack
(N=148)
Laggards
(N=122)
The “A’s” speak the language of the business and
regularly engage in two-way dialog with senior executives
Note: Differences are statistically significant. | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014
58%58%
41%41%
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
Activity Outcomes
Effort Counting Efficiency Impact
Likelihood of
Outcomes
Expected
Outcomes
The “A’s”
(N=81) 78 82 83 90 47 47
Middle of
the Pack
(N=116)
75 81 69 61 37 28
Laggards
(N=99) 70 68 57 48 24 20
Output-
Based*
Operational*
Outcome-
Based*
Leading-
Indicators*
Predictive*
Activity
Metrics
% of Respondents Tracking Metric Category
* Indicates a statistically significant difference. | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014
The “A’s” track and report outcome metrics in
addition to activity, output, and efficiency
2. Select the
Right
Metrics
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
The “A’s” not only set quantifiable performance targets,
but they track their performance against those targets
% of Respondents (N=303) | *Differences are statistically significant. | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014
32
52
10
5
1
6
34
35
20
5
Nearly every marketing program has well defined and
documented performance targets and we measure our
performance against those targets
Many, but not all, marketing programs have well defined
and documented performance targets
Few marketing programs have well defined and
documented performance targets
We do not usually set qualtifiable performance targets for
our marketing programs
Don't know
The "A's"
Everyone Else
3. Set
Quantifiable
Performance
Targets
To what extent does your marketing organization set quantifiable performance targets for marketing programs
and objectives?
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
The “A’s” are using data chains to create clear lines
of sight between marketing investments and
business outcomes
Note: Differences are statistically significant.
Source: ITSMA and VisionEdge Marketing, 2014
Business
Outcomes
Market Share
Grow revenue for cloud/mobile
offerings in NA Tier One
Accounts by 15%, secure 17%
market share
Marketing
Objectives
Pilot projects
Increase new pilot
projects among NA Tier
One Accounts by 35%
resulting in 5 full RFQs
Marketing
Programs
Seminars
Conduct 15 seminars in major
NA cities, resulting in 20
meeting requests to explore
pilot projects
Marketing
Tactics
Digital Marketing
Initiate email campaign to
promote cloud/mobile
thought leadership assets to
5,000 NA contacts at Tier
One Accounts, resulting in
300 seminar RSVPs
4. Establish
Clear Data
Chains
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
The “A’s” use their marketing dashboards to boost
marketing’s effectiveness, communicate impact on
business outcomes, and secure additional budget
% of Respondents | Note: Differences are statistically significant. | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014
Does your marketing organization currently produce a marketing dashboard?
45%61%73%
5. Build
Actionable
Dashboards
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
Methodology
Source: ITSMA/VEM Marketing Performance Management Survey, May 2014
Web-based Survey
Survey invitations were
emailed during April 2014
to the ITSMA and VEM
communities. In addition,
survey invitations were
extended via social media
channels such as Twitter
and LinkedIn.
380
people completed
the survey
The Data Was Analyzed by:
A’s: Marketing demonstrates
contribution to the business
(Grade: A)
Middle of the Pack: Marketing
makes a difference, but
contribution not measured
(Grade: B)
Laggards: Marketing may have
an impact, but not known if
impact is material
(Grade: C/D)
Marketing
Performance
Grade
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
Respondent Demographics
42%
40%
18%
Type of Company
% of Respondents (N=380) | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014
Job Title
Industry
Software solutions
IT professional services/consulting
Marketing services/advertising agency
Other services
Telecommunications and network systems and solutions
Other business services
Other product manufacturing
Other technology hardware systems and solutions
Computer systems and solutions
Financial services
Management consulting
Outsourcing (technology/business process)
Other
15
13
12
8
7
7
6
6
6
5
5
5
6
Size of Company
32
6
10
6
17
8
22
Less
than
$50M
$50M
up to
$99M
$100M
up to
$499M
$500M
up to
$999M
$1B
up to
$4.9B
$5B
up to
$9.9B
$10B
or
more
33%
28%
25%
14%
Sell both
products and
servicesPrimarily sell
services
Primarily sell
products
C-level/VP
Director
Manager
Individual contributor
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
Table of Contents for
For More Information
Julie Schwartz
Senior Vice President
Research and Thought Leadership
ITSMA
jschwartz@itsma.com | +1-407-788-8220
2014 Marketing Performance
Management Survey: Increasing
Marketing’s Relevance to the Business
Laura Patterson
President
VisionEdge Marketing
laurap@visionedgemarketing.com
+1-512-681-8800, Ext. 12
Slide
Executive Summary 3
Methodology and Respondent Demographics 32
Detailed Findings 45
Marketing Contribution to the Business 45
Use of Data and Metrics 72
The Marketing Dashboard 87
Appendix: Study Definitions 107
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
About ITSMA
ITSMA is a research-based membership
organization that helps B2B companies market
and sell services and solutions more effectively.
They work with the world’s leading professional
services, technology, and communications
providers to generate increased demand,
strengthen customer relationships, and improve
brand differentiation.
About VisionEdge Marketing
VisionEdge Marketing provides proven expertise to
help companies improve marketing accountability,
measurement and analytics; create outcome-
based marketing metrics; develop dashboards;
leverage processes, data, systems, and use data
and analytics to make strategic market, customer
and product decisions.

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2014 ITSMA/VEM Marketing Performance Management Survey The Link Between Marketing Performance Management and Value Creation

  • 1. Note: This Abbreviated Summary highlights some of the significant findings from 2014 ITSMA/VEM Marketing Performance Management Survey: The Link Between Marketing Performance Management and Value Creation A more in-depth analysis can be found in the full report available for purchase at: http://www.itsma.com/research/2014-itsma-vem-marketing-performance-management-survey/ Abbreviated Summary | May 2014 The Link Between Marketing Performance Management and Value Creation 2014 ITSMA/VEM Marketing Performance Management Survey Julie Schwartz, Senior Vice President, Research and Thought Leadership, ITSMA Laura Patterson, President, VisionEdge Marketing Dianne Kim, Research Associate, ITSMA
  • 2. ©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission. Study Highlights The Situation Despite marketers’ perceptions that they are improving, the percentage of “A” marketers has remained relatively constant. Marketers must move from campaign producers and sales enablers and seize the role of business value creators. Until marketers speak the language of the business and demonstrate value, they will be viewed as overhead. The Right Mindset 1. The “A’s” believe they can measure marketing’s value and make it a priority 2. The “A’s” hold themselves accountable, even if senior leadership does not 3. The “A’s” have a plan for continuously improving marketing performance management Nailing the Fundamentals In addition to the right mindset, the “A’s” have nailed the 5 fundamentals for aligning marketing activities to business results The value creators:  Get clarity around the business outcomes that matter by engaging in regular two-way dialog with senior executives  Select outcome metrics, in addition to activity, output, and efficiency metrics  Set and track quantifiable performance targets  Establish clear data chains to link marketing investments and activities with business outcomes  Build actionable dashboards to communicate impact on business outcomes and secure additional budget
  • 3. ©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission. Marketing organizations are under more pressure than ever to create business value % of Respondents (N=380) | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014 How do you see the pressure on marketing to measure its value and contribution to the business? 1% | Decreasing 85% Increasing Staying the Same14%
  • 4. ©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission. 90–100 Marketing was able to measure and report the contribution of its programs to the business 80–89 Marketing programs made a difference but the contribution to the business goals were not measured and reported 70–79 Marketing appears to have made some impact on the business, but it is not clear if the impact was material, nor is it measured 69 or lower Marketing programs didn’t make a difference—there is no clarity as to how marketing is contributing to the business Still, only 1/4 of marketers can answer the question, “What is marketing’s impact on the business?” % of Respondents (N=379) | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014 26% 40% 28% 6% For 2013, using a 100 point scale, please select what grade the CEO/Division GM would give your marketing organization for its ability to demonstrate its value and contribution to the business.
  • 5. ©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission. Where are you on the Marketing Performance Management Journey? What do you need to do to be best-in-class? Campaign Producers Sales Enablers Business Value Creators The “A’s” Middle of the Pack Laggards Track Marketing Activity and Output Contribute to Business Outcomes Improve and Manage Marketing Performance Activity Outcomes
  • 6. ©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission. Two things distinguish “A” marketers from the rest of their peers The Right Mindset Nailing the fundamentals of aligning marketing activities to business results & Sooner or later, those who win are those who think they can. Paul Tournier 1. Get Clarity Around the Business Outcomes 2. Select the Right Metrics 3. Set Quantifiable Performance Targets 4. Establish Clear Data Chains 5. Build Actionable Dashboards What needles does marketing have to move? Outcome-based, leading indicators, and predictive Well-defined and documented for each marketing program Between marketing activities, marketing objectives, and business outcomes Regularly presented to and reviewed with senior leadership
  • 7. The “A’s” believe they can measure marketing’s contribution to the business and hold themselves accountable Note: Differences are statistically significant. | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014 In your organization or company, how important is it that marketing is able to measure its value and contribution to the business?  Believe It’s Possible 16% 37% 59% It is difficult, and perhaps even impossible, to measure marketing’s contribution to business outcomes The “A’s” (N=98) Middle of the Pack (N=151) Laggards (N=127) % of Respondents that Agree or Strongly Agree Does your marketing organization have a revenue goal? 65% 41% 38% The “A’s” (N=83) Middle of the Pack (N=120) Laggards (N=104)  Hold Themselves Accountable % of Respondents with a Revenue Goal ©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
  • 8. ©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission. 71%71%The majority of the marketing staff has business acumen 1. Get Clarity Around the Business Outcomes % of Respondents that Agree or Strongly Agree The “A’s” (N=97) Middle of the Pack (N=148) Laggards (N=122) The “A’s” speak the language of the business and regularly engage in two-way dialog with senior executives Note: Differences are statistically significant. | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014 58%58% 41%41%
  • 9. ©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission. Activity Outcomes Effort Counting Efficiency Impact Likelihood of Outcomes Expected Outcomes The “A’s” (N=81) 78 82 83 90 47 47 Middle of the Pack (N=116) 75 81 69 61 37 28 Laggards (N=99) 70 68 57 48 24 20 Output- Based* Operational* Outcome- Based* Leading- Indicators* Predictive* Activity Metrics % of Respondents Tracking Metric Category * Indicates a statistically significant difference. | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014 The “A’s” track and report outcome metrics in addition to activity, output, and efficiency 2. Select the Right Metrics
  • 10. ©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission. The “A’s” not only set quantifiable performance targets, but they track their performance against those targets % of Respondents (N=303) | *Differences are statistically significant. | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014 32 52 10 5 1 6 34 35 20 5 Nearly every marketing program has well defined and documented performance targets and we measure our performance against those targets Many, but not all, marketing programs have well defined and documented performance targets Few marketing programs have well defined and documented performance targets We do not usually set qualtifiable performance targets for our marketing programs Don't know The "A's" Everyone Else 3. Set Quantifiable Performance Targets To what extent does your marketing organization set quantifiable performance targets for marketing programs and objectives?
  • 11. ©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission. The “A’s” are using data chains to create clear lines of sight between marketing investments and business outcomes Note: Differences are statistically significant. Source: ITSMA and VisionEdge Marketing, 2014 Business Outcomes Market Share Grow revenue for cloud/mobile offerings in NA Tier One Accounts by 15%, secure 17% market share Marketing Objectives Pilot projects Increase new pilot projects among NA Tier One Accounts by 35% resulting in 5 full RFQs Marketing Programs Seminars Conduct 15 seminars in major NA cities, resulting in 20 meeting requests to explore pilot projects Marketing Tactics Digital Marketing Initiate email campaign to promote cloud/mobile thought leadership assets to 5,000 NA contacts at Tier One Accounts, resulting in 300 seminar RSVPs 4. Establish Clear Data Chains
  • 12. ©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission. The “A’s” use their marketing dashboards to boost marketing’s effectiveness, communicate impact on business outcomes, and secure additional budget % of Respondents | Note: Differences are statistically significant. | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014 Does your marketing organization currently produce a marketing dashboard? 45%61%73% 5. Build Actionable Dashboards
  • 13. ©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission. Methodology Source: ITSMA/VEM Marketing Performance Management Survey, May 2014 Web-based Survey Survey invitations were emailed during April 2014 to the ITSMA and VEM communities. In addition, survey invitations were extended via social media channels such as Twitter and LinkedIn. 380 people completed the survey The Data Was Analyzed by: A’s: Marketing demonstrates contribution to the business (Grade: A) Middle of the Pack: Marketing makes a difference, but contribution not measured (Grade: B) Laggards: Marketing may have an impact, but not known if impact is material (Grade: C/D) Marketing Performance Grade
  • 14. ©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission. Respondent Demographics 42% 40% 18% Type of Company % of Respondents (N=380) | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014 Job Title Industry Software solutions IT professional services/consulting Marketing services/advertising agency Other services Telecommunications and network systems and solutions Other business services Other product manufacturing Other technology hardware systems and solutions Computer systems and solutions Financial services Management consulting Outsourcing (technology/business process) Other 15 13 12 8 7 7 6 6 6 5 5 5 6 Size of Company 32 6 10 6 17 8 22 Less than $50M $50M up to $99M $100M up to $499M $500M up to $999M $1B up to $4.9B $5B up to $9.9B $10B or more 33% 28% 25% 14% Sell both products and servicesPrimarily sell services Primarily sell products C-level/VP Director Manager Individual contributor
  • 15. ©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission. Table of Contents for For More Information Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA jschwartz@itsma.com | +1-407-788-8220 2014 Marketing Performance Management Survey: Increasing Marketing’s Relevance to the Business Laura Patterson President VisionEdge Marketing laurap@visionedgemarketing.com +1-512-681-8800, Ext. 12 Slide Executive Summary 3 Methodology and Respondent Demographics 32 Detailed Findings 45 Marketing Contribution to the Business 45 Use of Data and Metrics 72 The Marketing Dashboard 87 Appendix: Study Definitions 107
  • 16. ©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission. About ITSMA ITSMA is a research-based membership organization that helps B2B companies market and sell services and solutions more effectively. They work with the world’s leading professional services, technology, and communications providers to generate increased demand, strengthen customer relationships, and improve brand differentiation. About VisionEdge Marketing VisionEdge Marketing provides proven expertise to help companies improve marketing accountability, measurement and analytics; create outcome- based marketing metrics; develop dashboards; leverage processes, data, systems, and use data and analytics to make strategic market, customer and product decisions.