Revenue Attribution Maturity Assessment: The Journey to Reporting Nirvana

MarketingDashboardChallenge: Accurately Reporting Marketing Contribution Without Over-Investing Time and Budget

For many years marketing teams have aimed to identify their contributions to their companies’ success. Over the last five years, there have been significant advances in the tools available as well as the business processes by which data can be managed to support greater insights and gain competitive advantage. In fact, marketing groups today are frequently responsible for driving a specific percentage of company revenue so identifying revenue sourced by Sales or Marketing is critically important to measuring business performance.

But measuring marketing contribution is time, resource, and budget hungry. So how much should you invest? What tools will contribute to success given the maturity of your organization? In working with many different organizations, I have noticed common themes on the road to attribution maturity. Knowing where you are on this maturity timeline will help you plan for what may come next for your organization. While every company is unique, I believe there are common attribution lifecycle stages – and companies move through them as they need greater detail and insight.

So check out where you in attribution maturity so you can balance investment against the value of increasing visibility.

Stage 1 – Early Startup

  • Definition: Sales and Marketing have agreed upon revenue contribution percentages
  • Typical Revenue: $0-$500K ARR
  • Sales-Marketing Alignment: Handshake agreement on total new account revenue sourced by Marketing vs. Sales
  • CRM Deployment: Early deployment often still optimizing data and reporting process/structure
  • CRM Usage: Consistent campaign association is not yet defined for Leads, Contacts and Opportunities; Marketing automation may not be integrated with CRM
  • Attribution Process: Manual monthly or quarterly update of opportunities as Marketing vs. Sales sourced
  • Primary Challenges: Manual update of opportunities becomes overly time consuming

Stage 2 – Maturing Startup

  • Definition: CRM deployed with basic campaign attribution reporting
  • Revenue: $500K ARR – $5M ARR
  • Sales-Marketing Alignment: Attribution to Marketing or Sales identified and defined by first or last touch for new business; starting discussion on up-sell and cross-sell attribution
  • CRM Deployment: CRM standard utilization enforced, Sales forecast process optimization ongoing, Marketing automation integrated
  • CRM Usage: Both Sales and Marketing have created a data dictionary and have established standard processes for updates that have moderately successful usage
  • Attribution Process: CRM reporting using first or last touch for Marketing vs. Sales attribution
  • Primary Challenges: Both first and last touch neither accurately describe opportunity drivers nor comprehensively reflect Marketing and Sales program impacts

Stage 3 – Growth Startup

  • Definition: Specialized attribution software deployed in first version
  • Revenue: $5M ARR – $50M ARR
  • Sales-Marketing Alignment: Comprehensively defined Sales vs. Marketing source new business, upsell/cross-sell business and optimization of handoff processes
  • CRM Deployment: Utilize industry best practices for data integrity and reporting, generally solid compliance from Sales and Marketing teams, and relatively accurate sales forecasting; Initial deployment of third-party attribution tools
  • CRM Usage: Sales operations focusing on tight rep compliance with CRM, Marketing Operations focused on data quality and completeness
  • Attribution Process: Sales vs. Marketing sourced opportunities identified by campaign touches driving the MQL; utilizing both Sourced and Influenced models to optimize marketing performance
  • Primary Challenges: When sourced and influenced models do not accurately capture full account-based attribution impact or when weighted touch models are required to adjust campaign influence over customer journey

Stage 4 – IPO Readiness and Public Company

  • Definition: Specialized attribution software deployed in second iteration
  • Revenue: $50M ARR – $500M ARR+
  • Sales-Marketing Alignment: Business operations teams fully integrated across Sales and Marketing with BI dashboards/reporting; Monthly/Quarterly attribution reviews for program and process optimization; Early deployment of predictive revenue models
  • CRM Deployment: Sophisticated CRM deployment managed by business operations team with sophisticated reporting (BI tools) and data accuracy for regulatory compliance
  • CRM Usage: Well established guidelines and training; key processes are reinforced with end user compliance
  • Attribution Process: Multiple attribution models including weighted touch attribution and account-based models supported by analytics team to assist in utilization and interpretation of the data
  • Primary Challenges: Managing time, cost and complexity of attribution reporting as well as the ability of most marketing team members to absorb the complexity of these models

What has been your experience? Do these levels ring true? Was this helpful to your planning?

Lesson: As organizations grow, so do their needs for better attribution. It is important to make the right investments at the right time to keep attribution management time and costs in line with overall revenue goals.




Want to Improve Your Program Effectiveness by 10x?

Challenge: Companies promote their products and services via direct marketing, advertising, events and more – but still can’t achieve the impact they need. How about a 10x boost?

We are all bombarded with messages every day – online, offline and even when we are on the sidelines.  Therefore buyers have been desensitized to vendors claims – faster, better, cheaper and will even make you more attractive! First off – we make every attempt to ignore ads thrust at us: we skip ads with our DVR, we try to ignore banner ads on websites and we page quickly past print ads. When we want ‘real’ or ‘untainted’ advice, we look for online reviews by other users.  Amazon’s use of product reviews has completely transformed the buying process. We reach out to our social networks to find feedback from customers just like us. What is the value of a positive review? Huge. Just check out all the controversy about Yelp recommendations – because the reviews matter.

Depending on the study, analysts report that 70% or more of the purchase process is made before the buyer visits the vendor’s website. The dramatic rise of social media use by companies further explains this trend as they try to reach up further into the buying cycle. There are an increasing number of social groups for B2B as well.  Certainly LinkedIn has many groups targeted at various professions.  PracticeFusion and Spiceworks are focused social communities serving medical IT professionals. These are communities where professionals can get answers to their questions and read reviews of products.

In the end, any vendor claim is just that – a claim.  However a claim made by an actual user is trusted and valued.  Hence, in my math, vendor claims are worth one point and user claims are worth ten points.  While not scientific, I think we would all agree that real user feedback is the real deal.  So how do you facilitate and support these reviews, comments and posts?  You need customer advocates – customers who love your company and product so much that they are willing to spend time telling others.  The experience of using your product must be so compelling that they want to raise their own reputation by talking about it. The customer service and other support you provide around your product must surprise and exceed your customer expectations. Your customers need to think –  ‘Wow, that was great!’

So how do you give your customers this goose-bump moment? You need to open your company and your product up to your buyers by doing some or any of the following:

  • Give them free product or other recognition in return for product feedback
  • Be honest and humble when they give you candid feedback
  • Listen and respond to their input; more importantly update your product with their feedback
  • Show them you care – by giving them first access to your next product
  • When you stumble, acknowledge it and correct it
  • Make your product dramatically better than anything they have seen before

In sum, give them reasons to be so excited about your product or company that they want to share their experience. Help them reinforce their status as mavens in the community by giving them something new to share with the community.  Show your lead customers the respect they deserve.

Lesson: You post about your product – 1 point.  Your customer posts about your product – 10 points.  Find ways to create groups of advocates who will support and amplify your efforts.