The Importance of Buyer Behavior for Agile Marketing Metrics. By Chris Barron Huruda LLC
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1 The Importance of Buyer Behavior for Agile Marketing Metrics By Chris Barron Huruda LLC
2 Introduction Chris Barron Co-Founder, Principal Consultant Huruda LLC Training, coaching and consulting in Agile Product Management, Product Development and Product Marketing
3 The Problem
4
5 Marketers Have Lousy Metrics We have some metrics:
6 Marketers Have Lousy Metrics We have some metrics:
7 Marketers Have Lousy Metrics We don t use the metrics non-marketers care about:
8 Marketers Have Lousy Metrics We don t use the metrics non-marketers care about:
9 Too Many Don t Know Impact of branding campaigns? How re-tweets move the needle? The $ value of customer satisfaction?
10 You re Not Alone Of 252 firms surveyed ($53B annual mktg) 53% do not use campaign forecasts or performance metrics 57% do not use business case for campaigns 61% do not have a process to evaluate campaigns 69% do not compare vs. a control group 55% say staff doesn t understand metrics like CLTV Data Driven Marketing: The 15 Metrics Everyone in Marketing Should Know by Mark Jeffery, ISBN 10:
11 How Can We Improve? Can t improve what you can t measure Can t measure what you can t define
12 How Can We Improve? Can t improve what you can t measure Can t measure what you can t define Need better than: Step 1: Someone is interested in our stuff. Step 2: They buy or don t buy our stuff.
13 Agile Marketing Manifesto 7 Values 1. Validated learning over opinions and conventions 2. Customer focused collaboration over silos and hierarchy 3. Adaptive and iterative campaigns over Big Bang campaigns 4. The process of customer discovery over static prediction 5. Flexible vs. rigid planning 6. Responding to change over following a plan 7. Many small experiments over a few large bets
14 Principle: Validated learning over opinions and conventions
15
16
17 Principle: The process of customer discovery over static prediction
18 Target Segments
19 Segmentation Criteria - Consumer Geographic Demographic Psychographic Behavioral Region Population Metro size Climate Age Gender Family Generation Income Education Occupation Nationality Ethnicity Religion Social class Opinions Attitudes Values Activities Interests Usage pattern Loyalty Intent to buy Events
20 Segmentation Criteria B2B Geographic Firmographic Behavioral Region Distance Industry Company size Revenue Structure Management Usage pattern Buying status Purchase process
21
22 Marketing Funnel & Sales Pipeline
23 The Marketing Funnel Awareness Consideration Conversion Loyalty Various versions Start with knows nothing End with referals Farther up you start, the more $$ you spend Advocacy
24 Marketing Funnel Example Awareness Consideration Conversion Loyalty Advocacy Raise awareness of disease that most people don t know Positions new drug treatment Sales reps train doctors to Patients receive special offers Patients and doctors recommend it to others
25 Marketing Funnel - Metrics Awareness Ads viewed by 1,000,000 people Consideration 10,000 inquiries/responses to ads Conversion 1,000 new prescriptions Loyalty 700 refills after initial prescription Advocacy 75% of patients recommend to others
26 Marketing Funnel - Metrics Awareness Ads viewed by 1,000,000 people Consideration 10,000 inquiries/responses to ads Conversion 1,000 new prescriptions Loyalty 700 refills after initial prescription Advocacy 75% of patients recommend to others
27 Lead Generation Funnel Lead Inquiry Qualified Lead Various versions Campaigns deliver leads Vetted for accuracy and fit = prospects Prospect Customer
28 Lead Generation Example Lead Inquiry Qualified Lead Prospect Customer Mailing list for major trade journal Invite to webinar Pre-sales verifies fit Qualified leads passed to sales as prospects Go through sales pipeline
29 The Sales Pipeline Initial Contact Meeting Presentation / Demo Proposal Contract Various versions of this concept Steps to follow bringing prospect closer to buying Metrics at each step enable estimation Billing
30 The Sales Pipeline Some Metrics Initial Contact Meeting Presentation / Demo Proposal Most sales teams measure the pipeline Same playbook over and over Easier for forecasting than marketing funnel Contract Billing
31 Better Than Nothing But Awareness Consideration Conversion Loyalty Multiple campaigns and tactics at each phase Aggregate leads and $ Why are conversions down this month? If I turn this nob Advocacy
32 Buyer Personas
33 Marketers Need to Research Create Detailed Buyer Personas Template.aspx 3 3
34 Interpreting Services Manager Triggering Event Her manager is questioning the size and growth of her budget Her doctors in the Emergency Department are complaining about insufficient services She is seeing growth in the LEP patient population Her onsite vendors are breaking her budget. What Does Success Look Like? A reduction in cost per patient encounter of at least 30% Ability to handle more patients without proportional growth in budget Patients and clinicians like the new system Complaints to her office go down Maria Attributes Cautious Protective of her people Wants to provide the best patient experience Not particularly analytical Little power within the organization Comfort with technology varies, but tends to be low Interpreter quality is important Under appreciated, deals with complaints Decision Criteria Perceived quality of interpreters Perceived quality of patient experience Ability to keep her interpreters, if she has them Availability of languages Reporting Influencers Other interpreting services managers Finance/CFO (sometimes) Nursing and clinical leadership Onsite interpreting agencies Onsite interpreter unions Telephonic agencies Deaf rights community Real or Perceived Barriers You re going to replace all my people and they ll be fired Video can t possibly provide as good an experience as in person interpreters We had a bad experience with VRI in the past I don t want to train thousands on a new system Key Product Features No scheduling eliminates a major headache within her organization Language selection Qualified/certified interpreters Minimal IT involvement Quickly access interpreters Reporting Information Sources National groups and conferences: IMIA conference, the national board of certification for medical interpreters, NCIHC, DiversityRx, CCHI, RID Local groups: Seattle area interpreting leadership (SAIL), WASCLA Newsgroups, listserves, (CLASTalk, NCIHC, Common Sense Advisory) Sales presentations, s, direct mail
35 Buyer s Journey
36 Different Buyers = Different Journeys Journey Stacy New College Grad Amanda Working Pro & Mother Trigger Starting a job Oldest child needs a car Discovery Online research for 1 st time car buying tips Asks parents for advice Consideration Auto sites and CL Talks to friends and colleagues Talks to prior car s salesperson Visits dealerships Criteria: 1. Price (TCO) 2. Reliability 3. Fun Decision Test drive Parents evaluation Financing options Loyalty Prefers service at dealer Responds to promos Criteria: 1. Sporty & sophisticated image 2. Performance 3. Price Test drive Share selfie on social media for feedback Prefers service at dealer Repeat business
37 Different Buyers = Different Journeys Journey Stacy New College Grad Amanda Working Pro & Mother Trigger Starting a job Oldest child needs a car Discovery Online research for 1 st time car buying tips Asks parents for advice Consideration Auto sites and CL Talks to friends and colleagues Talks to prior car s salesperson Visits dealerships Criteria: 1. Price (TCO) 2. Reliability 3. Fun Decision Test drive Parents evaluation Financing options Loyalty Prefers service at dealer Responds to promos Criteria: 1. Sporty & sophisticated image 2. Performance 3. Price Test drive Share selfie on social media for feedback Prefers service at dealer Repeat business
38 Different Buyers = Different Journeys Journey Stacy New College Grad Amanda Working Pro & Mother Trigger Starting a job Oldest child needs a car Discovery Online research for 1 st time car buying tips Asks parents for advice Consideration Auto sites and CL Talks to friends and colleagues Talks to prior car s salesperson Visits dealerships Criteria: 1. Price (TCO) 2. Reliability 3. Fun Decision Test drive Parents evaluation Financing options Loyalty Prefers service at dealer Responds to promos Criteria: 1. Sporty & sophisticated image 2. Performance 3. Price Test drive Share selfie on social media for feedback Prefers service at dealer Repeat business
39 Different Buyers = Different Journeys Journey Stacy New College Grad Amanda Working Pro & Mother Trigger Starting a job Oldest child needs a car Discovery Online research for 1 st time car buying tips Asks parents for advice Consideration Auto sites and CL Talks to friends and colleagues Talks to prior car s salesperson Visits dealerships Criteria: 1. Price (TCO) 2. Reliability 3. Fun Decision Test drive Parents evaluation Financing options Loyalty Prefers service at dealer Responds to promos Criteria: 1. Sporty & sophisticated image 2. Performance 3. Price Test drive Share selfie on social media for feedback Prefers service at dealer Repeat business
40 Different Buyers = Different Journeys Journey Stacy New College Grad Amanda Working Pro & Mother Trigger Starting a job Oldest child needs a car Discovery Online research for 1 st time car buying tips Asks parents for advice Consideration Auto sites and CL Talks to friends and colleagues Talks to prior car s salesperson Visits dealerships Criteria: 1. Price (TCO) 2. Reliability 3. Fun Decision Test drive Parents evaluation Financing options Loyalty Prefers service at dealer Responds to promos Criteria: 1. Sporty & sophisticated image 2. Performance 3. Price Test drive Share selfie on social media for feedback Prefers service at dealer Repeat business
41 Different Buyers = Different Journeys Journey Stacy New College Grad Amanda Working Pro & Mother Trigger Starting a job Oldest child needs a car Discovery Online research for 1 st time car buying tips Asks parents for advice Consideration Auto sites and CL Talks to friends and colleagues Talks to prior car s salesperson Visits dealerships Criteria: 1. Price (TCO) 2. Reliability 3. Fun Decision Test drive Parents evaluation Financing options Loyalty Prefers service at dealer Responds to promos Criteria: 1. Sporty & sophisticated image 2. Performance 3. Price Test drive Share selfie on social media for feedback Prefers service at dealer Repeat business
42 Buyer s Journey and Marketing/Sales Strategy content marketing by.html
43 Another Example
44 Segmentation vs Buyer Persona Segmentation Information Statistical data Demographics Firmographics Methods Quantitative surveys Uses Market sizing Quick qualification Example Soccer Mom car buyer is suburban, middle American, spends lots of time transporting kids. Buyer Persona Insights into buyer behavior and motivations Qualitative interviews Buyer process Content creation Always puts needs of family first; needs ways to show individual worth.
45 Funnel & Pipeline vs Buyer Journey Funnel & Pipeline Concept Processes to feed inputs and yield output through exclusion Organized By Marketing and sales activities Based On Segmentation Example Marketing team funnels leads to SMB sales teams Buyer Journey Understand how buyers behave and get them to come to you Buyer activities Buyer Personas SMB buyer personas based on company owner, and based on mid level manager
46 Mutually Exclusive? buyer_behavior_helps_b2b_marketers_guide_the_buyers_journey
47 Applying Metrics
48
49 15 Metrics from Data-Driven Marketing 1. Brand awareness 2. Test-drives 3. Churn 4. Customer sat. 5. Take rate 6. Profit* 7. NPV 8. IRR 9. Payback 10. CLTV 11. CPC 12. Conversion rate 13. ROA 14. Bounce rate 15. WOM Non financial Financial Holy grail Internet
50 15 Metrics from Data-Driven Marketing Survey Count Them Renewals Survey Obvious Shop Talk 1. Brand awareness 2. Test-drives 3. Churn 4. Customer sat. 5. Take rate 6. Profit* 7. NPV 8. IRR 9. Payback 10. CLTV 11. CPC 12. Conversion rate 13. ROA 14. Bounce rate 15. WOM Non financial Financial Holy grail Internet
51 From the Ground Up
52 From the Ground Up
53 From the Ground Up
54 From the Ground Up
55 From the Ground Up
56 From the Ground Up
57 Sample Marketing Dashboard Journey Phase Metric Frequency Measurements Discover Awareness Annual* Rank, Change Consideration Test Drives Tracking Total, Change Decision Average AC Tracking Total, Change Decision Rev / Leads Tracking Total, Change Retention Churn Annual* Total, Change Referral CSAT Annual* Rank, Change Lifetime CLTV Annual* Total, Change
58 Scenario Modeling
59 Journey vs Funnel: Making Better Decisions 1. Identify issue from the dashboard 2. Drill-down to campaign / tactics 3. Identify tactics and personas affected 4. Use insights to consider impact on overall journey 5. Use insights to consider impacts on other personas 6. User personas and journeys to explain
60 Summary
61 We Need More Metrics That Matter Measure performance Show value Make decisions
62 Useful Metrics Apply generic metrics instead of tweets / CPC / likes / etc. Provide aggregate view of marketing Enable drill-up / drill-down to see effects of decisions
63 Funnels & Pipelines Traditional Enables straight-forward metrics Marketing and sales-centric perspective
64 Buyer s Journey Becoming mainstream Better insight into what works and why Better decisions about how to tune / fix
65 Learn More ASPE-ROI Agile Marketing Boot Camp ASPE-ROI Agile Marketing Webinars ASPE-ROI Blog Agile Marketing Manifesto:
66 Q&A
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