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Archived Research

2009 Marketing ROI & Measurements Study

Lenskold Article Series

by Jim Lenskold

2009 Marketing ROI & Measurements Study

This research was completed in 2009, just after the economic downturn in 2008. The study includes very interesting insight into how marketing ROI and measurement increase in importance when budgets get tight.


  • How is marketing ROI adoption trending over time?
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  • What is the impact of economic changes on marketing?
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  • How does the presence of marketing operations function impact marketing performance?
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  • What characteristics exist for high growth firms and highly effective and efficient marketing organizations?
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  • How can marketing ROI and measurements create a competitive advantage in a slow economy?

Here is a highlight that is very relevant in terms of economic pressures. Download the report for more details.

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Archived Research

2008 Lead Generation ROI Study

Lenskold Article Series

by Jim Lenskold

2008 Lead Generation ROI Study

This was the first research that branched off to dig into B2B Lead Generation marketing (the general marketing research continued in during this year as well). 


  • Benchmark study for B2B Lead Generation Marketing
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  • What are the most important lead generation objectives to drive high performance?
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  • How is marketing balancing lead quantity vs. lead quality metrics?
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  • How does alignment with the sales organization drive highly effective lead generation marketing performance?

Here is a featured highlight from this study:

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Archived Research

2010 B2B Lead Generation Marketing ROI Study

Lenskold Article Series

by Jim Lenskold

2010 B2B Lead Generation Marketing ROI Study

This research archive offers good insights into using marketing ROI and measurements to guide lead quality and lead nurturing marketing.

 

  • Which types of lead generation marketing programs are most effective at driving high quality leads?
 
  • What are the strengths and shortfalls for current measurement practices for lead generation marketing?
 
  • Where are the best opportunities to improve lead generation ROI and support incremental budget? (Hint: good info for your lead nurturing programs)
Key issues of measuring and improving lead generation marketing effectiveness were explored in the 2010 Lead Generation Marketing ROI Study. The results were drawn from 231 respondents who indicated that they were marketing practitioners in B2B companies (half or more of their revenues generated from business customers), whose marketing group generates leads for a sales organization or channel partners. The full 31 page report includes detailed findings, recommendations and incorporates comparative adoption from 2008 to 2009. This 2010 research study with B2B lead generation marketers explored practices and priorities for using measurements and return on investment (ROI) to improve marketing effectiveness. Several key findings emerged from this research:  
  • Marketers with sufficient insight to estimate the profit potential from an increase in lead generation marketing indicate that there is untapped profit potential. Of those B2B lead generation marketers providing an estimate of the incremental profits from a 10% increase in their budget, 6 in 10 expect a profit increase of greater than 10%. The challenge is that almost half (44%) of the B2B lead generation marketers surveyed lack the insight to estimate the profit potential, responding “don’t know” when asked how much could profits be increased with the additional 10% increase in marketing budget.
  • Highest profit potential lies with nurturing stalled leads, reported by 58% of lead generation marketers. Close to half indicated that all other areas examined also have untapped profit potential. This is very consistent with the results of 2009 where nurturing also topped the list.
  • B2B lead generation marketers using ROI metrics were more likely to anticipate much greater growth than their competitors (22% vs. 10% of all others).
  • Organizations that use marketing ROI metrics reported higher use of lead quality measures based on customer revenue generated from the initial sale (51% vs. 21% of organizations that use only non-financial metrics) and lead quality based on sales conversion rates (63% vs. 34%).
View this webinar for detailed findings, conclusions and recommendations from the 2010 B2B Lead Generation Marketing ROI Study. Here is one of the many findings from this research:

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By submitting this form with the Subscribe button checked, you are granting: Lenskold Group, 601 Bangs Avenue, Suite 402, Asbury Park, New Jersey, 07712, United States, http://www.lenskold.com permission to email you. You may unsubscribe via the link found at the bottom of every email. (See our Email Privacy Policy for details.) Your e-mail will be kept private and only used for educational content from Lenskold Group as outlined in our Privacy Policy. By clicking on the link delivered via e-mail to download content, you consent to use of a cookie that will provide you access to all other content without completing the form again.

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Recorded Webinars

Improving Lead Generation Marketing Effectiveness & ROI

Lenskold Article Series

by Jim Lenskold

Improving Lead Generation Marketing Effectiveness & ROI

Learn about best practices from highly effective and efficient organizations and the secrets behind higher growth companies as identified in the 2010 Lead Gen Marketing Effectiveness research study.

You can also read the complete 2010 Lead Generation Effectiveness Study.

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rio resources White Papers

Maximizing Lead Generation Marketing ROI

Lenskold Article Series

by Jim Lenskold

Maximizing Lead Generation Marketing ROI

This white paper combines a four-part article series on Maximizing Lead Generation Marketing ROI. It builds from the basics of strategy and organizational alignment to measurements and metrics.

Part 1: Lead Quality Counts

Part 2: Insight, Alignment & Action

Part 3: Measuring Effectiveness

Part 4: Dashboard Metrics

Loaded with actionable information, this is one of our most popular papers.

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By submitting this form, you are consenting to receive marketing emails from: Lenskold Group, 601 Bangs Avenue, Suite 504, Asbury Park, NJ, 07712, http://www.lenskold.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

By submitting this form with the Subscribe button checked, you are granting: Lenskold Group, 601 Bangs Avenue, Suite 402, Asbury Park, New Jersey, 07712, United States, http://www.lenskold.com permission to email you. You may unsubscribe via the link found at the bottom of every email. (See our Email Privacy Policy for details.) Your e-mail will be kept private and only used for educational content from Lenskold Group as outlined in our Privacy Policy. By clicking on the link delivered via e-mail to download content, you consent to use of a cookie that will provide you access to all other content without completing the form again.

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rio resources Article Library

The Defining Moments of Marketing ROI

Lenskold Article Series

by Jim Lenskold

The Defining Moments of Marketing ROI

How does your company define marketing ROI? A survey conducted by Forrester and the Association of National Advertisers (ANA) found “a lack of consensus among marketers on how to measure/define their return on investment (ROI) in marketing.” The top choices were Incremental Sales Revenue Generated by Marketing Activities (66%) and Changes in Brand Awareness (57%). Other top choices referred to purchase intentions, attitudes, market share and leads. There is a lack of consistency in the industry, but more importantly the industry is still slow in embracing marketing accountability with measures that have financial integrity.


Is there a right answer to how marketing ROI is defined? If you were to ask individuals how they defined and measured the ROI on their stock portfolio, what kind of responses would you expect? Most investors will not be satisfied if their stock portfolio returns are defined as most popular or most likely to grow. They also won’t be satisfied if they get high growth rates that are more than offset by high commission fees. Bottom line is the return on investment means exactly that – the profits (not revenues) generated in excess of the initial investment, discounted to net present value and shown as a percent of the initial investment.


Even with agreement on the ROI definition at this high level, the quality and success of your marketing ROI processes are dependent on establishing additional definitions for your calculations and measures. Definitions provide consistency, which is especially important for areas where some interpretation or judgment is required.


The marketing ROI process requires definition of:


  • The marketing investment – The marketing budget for a campaign or activity is typically obvious but what about brand campaigns running concurrently, salaries and overhead, supporting technology and the sales channel? You have choices here that will influence the ROI calculation.

  • Incremental customer value – Your definition must consider the immediate purchase, incremental future purchases, and the time period for future value, less deduct costs that are sales-driven.

  • Return vs. investment categorization – Certain expenses fall on both the return and investment side of the equation, such as price discounts, rebates, and sales premiums.

  • Baseline measures – A clear and consistent definition is needed for the baseline projection from which the incremental profits are derived. Control groups, modeling and other measurement methodologies are part of this definition, along with decisions for the frequency and precision of the measures.

  • Customer behaviors – Even basic terms we take for granted require definitions. When is a customer fully acquired? After the first sale, a repeat sale, or a steady purchase level? Is defection clearly defined as well as retained, saved and won back customers?

These are just a few key categories that are part of implementing a highly effective marketing ROI process. This is where errors often exist. Setting definitions requires good planning and is driven by one primary principle – will this drive the right decisions in creating and executing more profitable marketing strategies? Once the standards are set, the same principle is used as the quality check to make improvements.

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rio resources Article Library

Don’t Forget the Financial Meaning of ROI

Lenskold Article Series

by Jim Lenskold

Don’t Forget the Financial Meaning of ROI

There have been a number of webcasts about maximizing the return on marketing investment that fall short of the session topic. One in particular featured very good speakers and was informative. As each person spoke about their marketing programs, the results presented were in the form of response rates, leads generated, revenue generated or enhancement of the customer relationship. These are all important metrics but what about profits generated?


As marketers, we do not always have control or access to sales and profitability data. We often need to assess and decide to implement future marketing programs before actual customer value can be determined. Regardless, there has to be a greater focus on profits generated if marketing is going to contribute to critical corporate objectives and raise its stature within the company. Without analysis of customer value, how can we determine if one marketing initiative generates better customers than another? We’re all aware that roughly 20% of the customers will generate 80% of the profits so we must be looking for quality sales, not quantity.


Here’s a few tips to keep in mind:


  • Where actual customer value is not available, use benchmark values and run the complete ROI analysis to estimate your financial contribution to the company. There are opportunities for profit improvements whether you are running below or running much higher than your ROI threshold (read the book to know why high ROI represents untapped profit opportunities).

  • In situations where you use estimated customer value and assumptions related to the sales pipeline, such as knowing that a certain percentage of the leads generated generally result in closed sales, be sure to validate these assumptions with actual analysis. The surprises you may find can significantly change your strategies and decisions.

  • Set goals for constant improvement in your measurement processes and analytical capabilities. If competitors get ahead of you on this, they will be guiding their investments toward the highest value customers and your assumed values will surely decline.

Think of marketing ROI as financial intelligence that you must use to guide future strategic and tactical decisions.

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rio resources Article Library

Making Your List and Checking it Twice

Lenskold Article Series

by Jim Lenskold

Making Your List and Checking it Twice

At the end of each year when you head into the gift-giving season, it makes sense to consider what the key people supporting the company’s marketing will value most next year. Here are a few suggestions to get you started.

Chief Marketing Officer – What the CMO really wants is a seat at the table. The company is so dependent on marketing for top-line growth yet the language gap between traditional marketing metrics and the CEO objectives seems to get in the way year after year. Boardroom respect and a career path leading to the CEO position would be appropriate for those CMOs who have been exceptionally good and attentive to their contribution to corporate profits this past year.
Marketing Managers – Marketers are getting pressured to take on greater accountability so how about equipping them with planning tools, analytic staff, and enough budget for testing and analysis to help them succeed? A reliable and consistent marketing ROI process can be just the right gift to nurture the exceptional strategic and creative talents of marketing managers.
Brand Managers – Your brand managers are the tough ones on your list. Many are comfortable with what they have and receiving anything new may be perceived as disruptive. What brand managers ultimately need is clear connection to bottom-line results and an actionable approach to manage brand equity. You may have to look hard and invest some time to deliver just what they are looking for but it will be worth it.
Researchers & Analysts – There are the obvious gifts they’d love such as better data, new analytic tools or more sophisticated marketing models but what really may thrill them is a solid framework for measuring and managing marketing ROI. This includes mapping a detailed sales and marketing funnel, creating a process for measuring and assessing progression through the funnel, and understanding the key drivers of profitability. And simple gratitude for those attuned to the right metrics will bring the spirit of the season to life.
Sales – Those companies with separate sales and marketing teams need to wrap up and deliver a nice package of faith for their sales team. Sales needs to have more faith in marketing which will only come as marketing can demonstrate their commitment to driving more sales. Aligning the objectives of sales and marketing will start you on the path to peace and harmony. And don’t forget that tighter integration and a seamless sales and marketing funnel are the types of gifts that keep on giving.
The CEO and CFO – Now here are some folks you can really surprise with the right gift and it’s quite a simple one. All they want from marketing is an idea of what’s being generated from the budgets provided. Give them the answer in terms they can understand (i.e. profits, ROI, stock value, etc.) and they will be your friends for life. They are likely to reciprocate with faster budget decisions and potentially increased budgets. And they just might be willing to offer that coveted seat at the table for your CMO.
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rio resources Recorded Webinars

Marketing Mix Modeling Mini-Webinar

Lenskold Article Series

by Jim Lenskold

Marketing Mix Modeling Mini-Webinar

An Introduction to Marketing Mix Modeling by Lenskold Group’s president, Jim Lenskold, this 10-minute mini webinar answers the question “What is Marketing Mix Modeling?” Topics include why mix modeling is needed and an overview of the steps necessary to complete a model as well as an assessment of the methodology’s strengths and weaknesses.

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rio resources Recorded Webinars

Lead Generation Marketing Effectiveness Report: Key Findings

Lenskold Article Series

by Jim Lenskold

Lead Generation Marketing Effectiveness Report: Key Findings

Jim Lenskold and Debbie Qaqish share key takeaways from their 2012 Lenskold Group/Pedowitz Group Lead Generation Marketing Effectiveness Study.