Imagine spending millions on marketing campaigns but having no clear way to measure their success. Sounds like a nightmare, right? That’s the reality many CMOs face daily. 

At our recent “CMOs Tell All” session, we gathered marketing leaders in the Mavuus community to discuss, debate, and divulge their secrets for tackling this challenging topic. Here’s a recap of their expert advice on mastering ROI and making every marketing dollar count. 

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What is Marketing Attribution?

Our discussion began with a fundamental question: What is marketing attribution? 

One participant shared his perspective based on his experience reporting to a Chief Revenue Officer. He highlighted that “marketing ROI is the cost of generated pipeline, essentially the cost of a sale.” This viewpoint emphasizes the importance of focusing on revenue generation rather than just cost per lead or opportunity.

However, as we collectively acknowledged, there is no one-size-fits-all definition. For some, it’s about the entire journey from lead to sale, while others might focus on specific touchpoints. Nonetheless, the consensus was clear: understanding and defining marketing attribution should be tailored to your organization’s unique needs and goals.

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Early-Stage Attribution: Is It Necessary?

One of the most passionate debates was about the necessity of setting up attribution models in the early stages of a company’s growth. As one participant pointed out, “VCs and PE firms push hard for efficient growth and measurement, but many early companies are still figuring out their best lead sources.” 

This sparked a lively discussion on whether it's more important to build the infrastructure for attribution or to focus on finding repeatable success first. The general agreement was that while attribution is important, it shouldn't overshadow the primary goal of identifying and capitalizing on the best opportunities.

One participant’s controversial yet insightful point was that the early focus should be on building the pipeline and figuring out the most effective strategies rather than getting bogged down in detailed attribution models.

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Influenced vs. Generated Pipeline

A significant portion of our session delved into the debate over-influenced versus directly generated pipelines. Many participants emphasized that marketing impacts 100% of everything. This includes creating the website, generating leads, and everything in between. 

However, the challenge lies in getting executives to recognize and value this impact.

• Generated Pipeline: Directly attributed to marketing efforts such as campaigns, ads, and promotions.
• Influenced Pipeline: Indirectly attributed through brand awareness, content marketing, and other efforts that support the sales process.

Another participant shared a pragmatic approach, stating, “We need to be able to say that we are generating pipeline. That’s how businesses continue.” The consensus was that while influenced pipeline is significant, clear metrics on the generated pipeline are crucial for demonstrating marketing’s direct impact on revenue.

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Strategic Budgeting and ROI

Budget allocation and ROI measurement were also hot topics. 

One participant’s approach to budgeting is for their marketing team to aim for a 4x coverage model. “80% of the budget was focused on demand generation, with the remaining 20% on brand activities,” she said. This strategy ensures a balance between immediate returns and long-term brand building.

Another marketing leader also highlighted the importance of setting realistic expectations for ROI. He mentioned, “For performance marketing, Google ads might generate $3 of pipeline for every $1 invested, while events could aim for $10 due to higher costs.” These benchmarks help in setting clear, achievable goals.

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Tools and Resources

Throughout the session, several tools and resources were recommended to help with marketing attribution and ROI measurement:

• Insight Partners Reports: These were highlighted as credible sources for benchmarking and strategic planning.
• Gartner: Regularly cited for comprehensive research and reports on marketing trends and benchmarks.
• OpenView: Despite recent changes, OpenView was noted for its historical data and valuable insights.

If you’re a marketing leader looking to navigate the complex world of marketing attribution and ROI, the Mavuus community is here to support you. Our sessions bring together top CMOs to share their experiences, best practices, and strategies, helping you learn and grow.

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