Metrics That Matter The Latest Research Stefan Tornquist

Metrics That Matter: The Latest Research Stefan Tornquist, Research Director, Marketing. Sherpa Scott Santucci, CEO, Blue. Print Marketing More data on this topic available from: : Tuesday, October 24, 2006 1

Be Careful, Metrics Can Be Dangerous “I know I can cut 50% of the marketing budget, I just don’t know which 50%. . . Yet. More data on this topic available from: : 2

How Dangerous, Really? More data on this topic available from: : 3

What They Don’t Know Can Hurt You More data on this topic available from: : 4

“Our organization has gained a lot of credibility over the year. This credibility has come with our ability to track leads to pipeline and demonstrate marketing value and accountability. ” - Boston Summit Attendee More data on this topic available from: : 5

Cost Per Lead Example • Reduced costs in list acquisition lower quality of contacts • Cut content budget Set up for failure lower quality events Cost per Lead ! More data on this topic available from: : • Cut promotion budget Lower attendance Well paid but fired marketer Unhappy sales 6

What we Should Try to Quantify Ø Why is demand generation needed? Ø What exactly is a lead? Ø What are the expectations of the lead? Ø What visibility to the lead does marketing have afterwards? Ø What factors prevent success? More data on this topic available from: : 7

What exactly is a lead? More data on this topic available from: : 8

What are the expectations of the lead? More data on this topic available from: : 9

What visibility does marketing have after it passes a lead to sales? More data on this topic available from: : 10

Phases Strategy Objectives Planning Measurement Program • Baseline • Quantifiable Objectives • Operating Plan Tactics • Responsibility Execution • Performance Results • Program Summary More data on this topic available from: : 11

Measure Phases Objectives Communicate Measurement Program • Finance • Sales Leadership • Marketing Team • Finance • Sales Teams • Marketing Teams • Finance • Marketing Team • Delivery Team • Finance • Sales Leadership • Marketing • Sales Team • Marketing Team • Define the Problem • Publish Assumptions • Gain Buy In • Pick the Mechanics • Get it Done Strategy Objectives Planning Tactics Execution • Communicate the Success Results More data on this topic available from: : • Baseline • Quantifiable Objectives • Operating Plan • Responsibilities? • Performance • Program Summary 12

Phases Objectives Communicate Measurement Program • Finance • Sales Leadership • Marketing Team • Finance • Sales Teams • Marketing Teams • Finance • Marketing Team • Delivery Team • Finance • Sales Leadership • Marketing • Sales Team • Marketing Team • Define the Problem • Publish Assumptions • Gain Buy In • Pick the Mechanics • Get it Done • Communicate the Success Strategy Objectives Planning Tactics Execution Results Measure More data on this topic available from: : • Baseline • Quantifiable Objectives • Operating Plan • Responsibilities? • Performance • Program Summary 13

Strategy: Build the Baseline Stakeholder Proficiency Pipeline Mechanics More data on this topic available from: : Content Audit 14

Goals: Quantifiable Objectives Ø Improve sales transaction size 50% § Ø Decrease sales cycle 33% from § Ø (from $36, 183 to $54, 275) (3 months to 2 months* est. ) Improve our close rate 33% § (from 17%) More data on this topic available from: : 15

Implications: Gaining Buy In Cause (Objective) Improve sales transaction size 50% Decrease sales cycle 33% from Improve our close rate 33% Do all three at the same time More data on this topic available from: : Effect (Impact on Revenue) 50% increase in revenue ($28. 9 M) 28% increase in revenue ($16. 2 M) 10% increase in revenue ($5. 9 M) 150% increase in revenue ($85. 9 M) 16

One Route to Buy In More data on this topic available from: : 17

Integrated Demand Generation Program Sales process Exposure Qualification Sales Manager Proof of Concept Commitment Sales Manager Implementation Sales Manager Conference Immersion Workshop TC’s Sales Training Tele. Conference TC’s Events Follow-Up Kits Power Summit TC’s Follow-Up Kits TC’s Content Development & Delivery More data on this topic available from: : SME Program Management Content SME Program Management Commitment of client Simplicity of content 18

Communicating Results 1 2 3 More data on this topic available from: : 4 19

Gaining Credibility More data on this topic available from: : 20

Scorecard Quantifiable Objective B+ Result Improve sales transaction size 50% 41% increase Decrease sales cycle 33% from 25% decrease Improve our close rate 33% 6. 5% close rate B+ D More data on this topic available from: : 21

Performance Measures Analysis per event Close rates / event Revenue / 1. 78% 3. 36% 3. 01% 8. 70% 6. 54% $57, 813 $51, 350 $20, 125 $55, 554 $51, 114 sale § § § Teleconference Power Summits Conferences Multiple attend Total continuum Distribution of attendees § More data on this topic available from: : § § 26% pure prospects 24% clients 50% client prospect Cost per new client § $7, 400 22

Thank You Stefan Tornquist Marketing. Sherpa stefant@marketingsherpa. com (877) 895 -1717 Scott Santucci Blue. Print Marketing More data on this topic available from: : scott. santucci@blueprintmarketing. com (866) 240 -4872 23