Like most CEOs, I’m interested in having clear visibility into our company’s spend. When it comes to our marketing spend, having insight into our RETURN on that marketing spend is even more important. Return equals revenue. I always want to know what is the impact on revenue, and what is our predicted planned impact on revenue. I wanted to share how our own CMO uses our own software to share critical information with the Allocadia C-Suite and Board, to share ideas on how one of your peers is benefiting from Marketing Performance Management.
At a recent Allocadia Board meeting, our CMO James Thomas presented year-to-date marketing results using Allocadia. James is a former customer who knows that marketing needs to be a revenue-driven function. His team uses Allocadia to gain predictable, actionable insights into our marketing’s performance. Using Allocadia, we can decide if we want to reallocate where we invest our marketing dollars, and we can better forecast marketing performance. We are able to determine the planned outcome or ROI on our spend, and our CMO and marketing teams can understand the future revenue impact of each decision. As a result, we know how marketing is performing, and we can change on the fly. What’s more, at the recent Board meeting, we were able to spend our time discussing where we wanted Allocadia marketing to go rather than wasting time trying to decipher all of our data.
So how do we use it?
Our marketing team tracks all our different marketing spend in our system – from online Google ads to tradeshows, website costs, content marketing and more – in our system. We also input annual company revenue targets, influenced marketing revenue target, and top-down lead and funnel targets. We also capture average deal size and funnel conversion rates. Once this data is inputted (a one time process) the team tags different spend and campaigns in Allocadia with a bottoms-up target of “number of leads”. We also leverage our Salesforce CRM Performance Connector to track our plan against our actual, and leverage our campaign attribution modelling.
What’s an example of the output?
With this approach, we can measure actual results and predict our revenue pipeline. This screenshot is an example of the Allocadia report we used to show our own marketing performance to our Board. (Click on the image to expand.) The numbers and data aren’t real in this example, but I think it shows how at a glance Allocadia is helping our marketing team be accountable to the Board. It highlights where we are succeeding and where we need to invest more to continue to drive leads into the pipeline. James’ presentation was a great example of how a CMO can showcase the information that the C-Suite cares about when looking at marketing ROI.
As CEO of Allocadia, I’ve had to learn to lead in a rapidly growing, fast-moving market. And as marketers building Allocadia, we have learned a lot about selling to CMOs: their needs and challenges, and the exciting opportunities that lie ahead in this new Marketing 2.0 world. This Leading in Change: CEO Blog Series is intended to help inspire CMOs and marketing operations to lead and build data-driven marketing organizations.
Read more Leading in Change posts here, and please send me any feedback through @kristinesteuart.