Develop your organization to consistently deliver successful products
Not all organizations are at the same level of maturity when it comes down to implementing a Revenue Attribution model. We distinguish 5 different maturity levels that describe how well a company can steer its marketing activities.
We use the generic Maturity Level Model with following definitions as defined by ‘The Open Group’;
Level 1 - Initial
It is characteristic of processes at this level that they are (typically) undocumented and in a state of dynamic change, tending to be driven in an ad hoc, uncontrolled and reactive manner by users or events. This provides a chaotic or unstable environment for the processes. (Example - a surgeon performing a new operation a small number of times - the levels of negative outcome are not known).
Level 2 - Repeatable
It is characteristic of this level of maturity that some processes are repeatable, possibly with consistent results. Process discipline is unlikely to be rigorous, but where it exists it may help to ensure that existing processes are maintained during times of stress.
Level 3 - Defined
It is characteristic of processes at this level that there are sets of defined and documented standard processes established and subject to some degree of improvement over time. These standard processes are in place. The processes may not have been systematically or repeatedly used - sufficient for the users to become competent or the process to be validated in a range of situations. This could be considered a developmental stage - with use in a wider range of conditions and user competence development the process can develop to next level of maturity.
Level 4 - Managed (Capable)
It is characteristic of processes at this level that, using process metrics, effective achievement of the process objectives can be evidenced across a range of operational conditions. The suitability of the process in multiple environments has been tested and the process refined and adapted. Process users have experienced the process in multiple and varied conditions, and are able to demonstrate competence. The process maturity enables adaptions to particular projects without measurable losses of quality or deviations from specifications. Process Capability is established from this level. (Example - surgeon performing an operation 100's of times with levels of negative outcome approaching zero).
Level 5 - Optimizing
It is a characteristic of processes at this level that the focus is on continually improving process performance through both incremental and innovative technological changes/improvements.
Holding this mirror against our Marketing Credit Model, we can distinguish the following criteria as indicators of the maturity level;
By measuring the maturity on these four important topics, a company can determine how far it is on the Marketing ROI journey.
Translating these parameters to the Maturity Level Framework, provides us with the following insights;
In this stage, very little data is structural available. The organization does not measure any activities in a consistent way.
There are no processes nor KPI’s installed to measure marketing’s effectiveness. Management does not drive the quest for growth in marketing productivity and as a result, no investments were made in supporting systems.
Marketing typically operates in a silo different from the sales organization.
The company is already tracking one or two stage-gates for which it systematically collects the relevant data. For most companies this starts with measuring leads that come in through the owned websites using tools like Google Analytics. These get reported on a joint meeting of Sales and Marketing.
Some organizations already have a prototype of revenue attribution in place and began placing a value on these leads
Often, there is still considerable discussion between sales and marketing on the quality of the leads and the speed of follow-up.
The company is collecting structural data on all stage-gates, both in the physical and the virtual world. A management process is implemented and joint KPI’s between sales and marketing are defined. On a regular basis, sales and marketing sit together to discuss progress.
Systems are in place to capture and manage all relevant information. Unfortunate these systems still operate as islands and transfer of data happens manually.
But nevertheless, the company is able to measure the ROI of almost all its marketing activities.
Marketing is playing a more prominent role in the organization and is regularly invited to meetings of the Executive Team.
The company is now also measuring on the marketing and sales activities leading up to certain stage-gates. With this information, the organization starts determining the ROI on activity level.
Within level 4, all information is tracked with short time intervals, allowing to change attribution rates on a weekly or even daily rhythm.
All necessary systems are in place; ERP, CRM, marketing automation tools and partner relationship management systems. They all provide their data to a central data warehouse on which extensive Business Intelligence reports are run.
Marketing serves as a member of the extended Executive Team and becomes part of the core strategic team.
The organization is now in full control of its full sales and marketing arsenal. The team now succeeds in measuring ROI of all that happens.
All systems are fully integrated resulting in the real time tracking of all sales and marketing actions. Powerful algorithms assist management to take decisions when and where needed.
Marketing has become a full-time member of the Executive Team and sits at the table for all major decisions.
Table 1 Maturity Levels Marketing Revenue Attribution shows a schematic overview of these five maturity levels.
TABLE 1 MATURITY LEVELS MARKETING REVENUE ATTRIBUTION
When embarking on a journey to implement the Revenue Attribution Model, it helps to understand what level one is at. Based on this information, priorities can be set to make the journey as swift as possible.