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Tactic Attribution Project

Objective

This project estimates the impacts of various marketing tactics on a company’s sales, revenues, and/or profi t. Using predictive analytics, it combines internal data on marketing tactics with external data on economic and market conditions, relative prices, and underlying trend factors to quantify the contributions of multiple factors – including marketing and individual marketing tactics. The estimated statistical relationships yield valuable insights that help refine marketing tactics and constitute a competitive advantage in the go-to-market strategy.

Problem

CMOs and other marketing leaders need to understand which individual marketing tactics and which combinations of tactics generate MQLs and, ultimately, sales. The purpose of tactic attribution is to measure the degree to which emails, online content, events, forums, advertising, and other marketing tactics contribute to sales, revenues, and/or profits after accounting for other major business drivers such as economic and market conditions, relative prices, underlying trends, seasonal factors, and others. Organizations use various methods to attribute business to marketing tactics. If they don’t include all of the major drivers, then their analyses are incomplete and flawed.

Solution

For this custom consulting engagement, SiriusDecisions Consulting uses a comprehensive approach to analyze and attribute business activity to marketing tactics. Using

predictive analytics modeling methods, internal data are combined with external data to account for as many business drivers as possible. The key inputs include:

Internal Data (provided by client)

  • Sales, revenues, and/or profits in total and by product group, market segment, or account

  • Marketing tactics from a marketing automation platform

  • Digital activity from an online tracking service

  • Pipeline activity from a sales force automation platform

  • Advertising expenditures by type

  • Average selling prices

  • All data should cover at least the last 2½ to 3 years at a daily, weekly, or monthly frequency

  • Descriptions of market segments or lists of sales by customer

External Data (provided by SiriusDecisions)

  • Economic factors

  • Market factors tailored to represent the client’s market segments

  • Specific prices indexes tailored to represent the client’s products or services

  • Broad price indexes

  • Underlying trend factors (if appropriate)

  • Seasonal factors (if appropriate)

  • All data will cover at least the last 3 years at a weekly or monthly frequency

At the request of the client and with the required data, the analysis delineates the impacts by product group and by market segment or key customer to yield more detailed insights about the business drivers and the ability of marketing tactics to boost sales, revenues, and profits.

This project will answer the following questions:

  • How much does each business driver contribute to the company’s financial performance?

  • What portion of the company’s sales, revenues, and/  or profits is attributable to each marketing tactic and to marketing in total?

  • How do the contributions from each factor change over time? Do the impacts of some marketing tactics increase or decrease over time?

  • Are some marketing tactics (e.g. emails, content downloads, advertising, etc.) leading indicators of MQLs or closed sales weeks or months later?

  • Does the estimated contribution for each tactic exceed its cost or level of effort?

  • How do contributions of each tactic compare to other major drivers of the company’s sales, revenues, and profits?

Who Should Participate?

  • CMOs

  • Marketing Executives and Managers

  • Marketing Analytics leaders and analysts

Typical Prerequisite Work

To prepare for this project, SiriusDecisions will work with the client’s project team to collect and review base line data and information such as the following:

  • Detailed data on the company’s sales, revenues, profits, total marketing expenditures, marketing tactics, digital activity, paid advertising expenditures, pipeline activity, average selling prices, and market segment descriptions (provided by the client) as noted above

  • Current and historical external data on economic and market conditions for specific  industries and countries, relative prices for specific products/services and groups of products/services, underlying trend factors, and seasonal factors (provided by SiriusDecisions) as noted above

  • Relevant content from the SiriusDecisions repository for team members to review

Typical Project Deliverables

Key deliverables from this project will include:

  • Detailed description of the data, statistical methods, analytical results, and business insights using mutually agreed report formats

  • Project related SiriusDecisions research materials

  • Ongoing support to answer questions, discuss methods, make recommendations, provide guidance on next steps

Sample Timelines

Weekly or bi-weekly status meetings ensure open communications with the client and keeps the project on track for timely completion.

Consulting Process and Data-driven Methodology

Projects begin with a kickoff that includes clear outline of the detailed approach, schedule of status updates, next steps and deliverables. The SiriusDecisions Consulting process outlined below guides clients through a set of coordinated steps and milestones to a successful outcome. One of the most important steps is the “review and revise” phase, which allows initial feedback to be incorporated into the development of a fi set of prioritized recommendations and deliverables. All process steps and milestones are designed to work in concert to apply operational intelligence, SiriusDecisions frameworks, models and best practices to create actionable plans and results.

SiriusDecisions Consulting leverages a unique methodology for collecting insights about the current state of an organization and then comparing these findings to similar organizations.  The SiriusIndex™ is used to compare best practices achieved by a peer group (organization size, industry, go to market approach, etc.), relative to the current CMO results as well as best in class organizations. These comparisons provide context and inform recommendations  in both an interim review and final report. Final reports are typically presented in an onsite working session followed by a final PowerPoint report and relevant SiriusDecisions research.

Scalable Solutions to Help B-to-B Leaders Grow Their Business

SiriusDecisions provides research-informed consulting services that operationalize our market-leading models, frameworks, best practices, benchmark data and research to address business problems or opportunities and drive profitable growth. With SiriusDecisions Consulting, you will broaden understanding, adoption, application, utilization and impact of SiriusDecisions methodologies within and across teams and go-to-market ecosystems.



 

 


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