With prospects doing more research on their own and waiting until later in the buying cycle to interact with sales, the role of marketing teams is more critical than ever in generating demand and influencing deals. In this landscape, tracking marketing data is essential for proving the value of marketing to a company’s bottom line. How can you make sure your CRM system will track and monitor all your sales and marketing activity, while also tying it to total revenue?
We’re happy to have Andrea Wildt, vice president of products and marketing at Silverpop partner Full Circle CRM, share with us the power of using your CRM system to track the effectiveness of your marketing campaigns:
Leveraging CRM Systems to Optimize Your Marketing Mix
One of the biggest challenges marketers face today is proving the value of their marketing programs to the executive team and their counterparts in sales. Or to put it in simpler terms – conveying exactly how marketing contributes to company revenue. This isn’t a simple exercise because each company cares about different metrics and utilizes a variety of tools to try and measure them. I’ve found the easiest place to track and measure your marketing data is inside CRM systems like salesforce.com.
The main reasons for tracking your marketing metrics in a CRM system are these:
- If you want sales to trust or even look at your marketing data, it needs to be in the same place they access their own data
- All the underlying data you use in your marketing automation (MA) solutions gets pulled into your CRM system to complement your sales data, giving you a rich data set to analyze
There are two main things you need to measure in your CRM system to get a solid understanding of your campaign performance and start making changes to your marketing mix that actually affect revenue: campaign attribution and funnel analysis
There are different ways to do this inside of salesforce.com, but the best way we’ve found is by using weighted campaign influence models. Weighted campaign influence is a means of assigning campaign attribution where you build a few models and assign different types of campaigns weights.
For example, you could have three campaigns: event, Webinar and email. Let’s say you think the event is the most valuable, the Webinar is the next most valuable, and the email is the least valuable. You might weight events at 5, Webinars at 3, and emails at 2. If, for example, a deal for $100,000 closed that had each of these campaigns associated with it, the event would be attributed $50,000, the Webinar $30,000, and the email $20,000.
This methodology provides more insight into actual campaign performance because instead of assigning all the revenue credit to the first touch or last touch campaign or spreading it evenly across all campaigns, it enables you to differentiate between your various campaigns and see what’s truly working. The trick here is setting up and running multiple models at the same time so you can iterate on them and find something that works for your company (much like you would do when setting up a lead scoring model).
The second piece of the equation is having accurate demand generation funnels set up that can measure three key metrics: volume, conversion rates and velocity. Volume tells you the raw number of responses your campaigns are generating, conversion rates lets you know how your campaigns are performing through every stage in the demand generation cycle, and velocity shows how long it takes for responses to make it all the way through your funnel. If you want more detail on these metrics, check out this blog post from our CEO.
These insights can be invaluable because they can tell you things like:
- What campaigns to run when you need to find deals that will close quickly in Europe
- Which campaigns you should use when trying to generate a lot of new leads in mid-sized companies
- How leads in California convert to opportunities from an email blast versus how leads in Georgia convert from that same email
- If you set up your demand generation funnels properly, eventually you can uncover critical insights into your whole demand generation process that will enable you to identify bottlenecks and maximize your revenue streams across all your different departments, as well as verticals, channels or geographies.
The point is this: If you can show your executive team which campaigns actually influence revenue and can accurately measure the volume, conversion rates and velocity of your funnels, you’ll not only be able to optimize you marketing mix to provide the most “bang for your buck,” but you’ll be able to prove marketing’s contribution to the bottom line and earn yourself a seat at the revenue table.
Full Circle CRM gives Salesforce marketing users a complete marketing performance management solution that answers all marketing questions in one place and helps drive more revenue from every campaign with best-practice response lifecycle management. The cloud-based product is built 100 percent on the Salesforce platform and is compatible with Silverpop’s leading marketing automation solution. Learn more at www.fullcirclecrm.com.
1) Blog: “6 Tips for Approaching the Revenue Attribution Discussion”
2) Video: “3 Tips for Getting Started with Revenue Attribution”
3) White Paper: “Revenue Attribution: How to Measure the Impact of Your Marketing Efforts”