Modern Marketing Center of Excellence Report

1. Modern Marketing Center of Excellence Report Practical GrowthBuilding a Modern Marketing Center of Excellence (MMCoE) TM Best Practices Report by: Jesse Hopps, Founder & CEO Demand Metric Research Corporation © 2014 Demand Metric Research Corporation. All Rights Reserved.

2. EXECUTIVE SUMMARY Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) Why spend 15 minutes reading this report? In March 2014, Demand Metric collaborated with Pardot/Salesforce to conduct a research study entitled “Marketing Report Card: Keeping our Seat at the Table” to identify how Marketing as a function is being perceived. While many of the insights drawn were expected, there were a few that were shocking. Only 15% of organizations claimed to have an easy time justifying their marketing budget. Furthermore, just 12% of organizations felt that Marketing is perceived as a highly profitable revenue center, whereas 59% perceive Marketing as a ‘necessary’ or even ‘unnessary’ expense. This best practices report will discuss how organizations can build a Modern Marketing Center of Excellence (MMCoE) TM , turn these perceptions around, and drive revenue growth.   10% 27% 48% 11% 4% Very difficult Difficult Neither difficult nor easy Easy Very easy Difficulty Justifying the Marketing Budget 8% 51% 8% 21% 12% Unnecessary expense Necessary expense Breakeven center Modestly profitable revenue center Highly profitable revenue center Internal Perception of Marketing Fig. 2 Marketing Report Card, Demand Metric, March 2014 n=207Fig. 1 Marketing Report Card, Demand Metric, March 2014 n=207 2 EXECUTIVE SUMMARY Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) Why spend 15 minutes reading this report? In March 2014, Demand Metric collaborated with Pardot/Salesforce to conduct a research study entitled “Marketing Report Card: Keeping our Seat at the Table” to identify how Marketing as a function is being perceived. While many of the insights drawn were expected, there were a few that were shocking. Only 15% of organizations claimed to have an easy time justifying their marketing budget. Furthermore, just 12% of organizations felt that Marketing is perceived as a highly profitable revenue center, whereas 59% perceive Marketing as a ‘necessary’ or even ‘unnessary’ expense. This best practices report will discuss how organizations can build a Modern Marketing Center of Excellence (MMCoE) TM , turn these perceptions around, and drive revenue growth.   10% 27% 48% 11% 4% Very difficult Difficult Neither difficult nor easy Easy Very easy Difficulty Justifying the Marketing Budget 8% 51% 8% 21% 12% Unnecessary expense Necessary expense Breakeven center Modestly profitable revenue center Highly profitable revenue center Internal Perception of Marketing Fig. 2 Marketing Report Card, Demand Metric, March 2014 n=207Fig. 1 Marketing Report Card, Demand Metric, March 2014 n=207 2

3. INTRODUCTION Read this Best Practices Report to learn: §  The 4 Levels of Modern Marketing Maturity §  How to improve your Marketing effectiveness §  What is a Center of Excellence (CoE)? How does it function? §  Why build a Center of Excellence? What are the business benefits? §  Key success factors for building a sustainable MMCoE §  How does the MMCoE fit into the organization? What is its role? §  The Modern Marketing Center of Excellence (MMCoE) TM Model §  6 Key Marketing Functions required to build an MMCoE §  Why to consider working with Demand Metric The purpose of this Best Practices Report is to provide organizations with pragmatic advice and recommendations for improving their marketing maturity and operational effectiveness by developing a Modern Marketing Center of Excellence (MMCoE) TM . You’ll learn about Demand Metric’s Modern Marketing Maturity Model and World Class Marketing Assessment (no charge to instantly download), a 67-point diagnotic tool to determine your organization’s current level of marketing maturity across 8 key drivers of marketing effectiveness. This report will also introduce ‘Centers of Excellence’ (CoEs), which have been heavily adopted in the I/T world for providing defined, repeatable, and measurable business processes that add clear and quantifiable business value to their organizations. Next, we extend the notion of a CoE to the needs of the modern marketing organization and introduce the concept of a Modern Marketing Center of Excellence (MMCoE) TM . Reading this report will also provide insight into the resources Demand Metric has created for its members that can help you with building your own Modern Marketing Center of Excellence (MMCoE) TM to drive improved marketing maturity and operational effectiveness. Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) 3 © 2014 Demand Metric Research Corporation. All Rights Reserved. INTRODUCTION Read this Best Practices Report to learn: §  The 4 Levels of Modern Marketing Maturity §  How to improve your Marketing effectiveness §  What is a Center of Excellence (CoE)? How does it function? §  Why build a Center of Excellence? What are the business benefits? §  Key success factors for building a sustainable MMCoE §  How does the MMCoE fit into the organization? What is its role? §  The Modern Marketing Center of Excellence (MMCoE) TM Model §  6 Key Marketing Functions required to build an MMCoE §  Why to consider working with Demand Metric The purpose of this Best Practices Report is to provide organizations with pragmatic advice and recommendations for improving their marketing maturity and operational effectiveness by developing a Modern Marketing Center of Excellence (MMCoE) TM . You’ll learn about Demand Metric’s Modern Marketing Maturity Model and World Class Marketing Assessment (no charge to instantly download), a 67-point diagnotic tool to determine your organization’s current level of marketing maturity across 8 key drivers of marketing effectiveness. This report will also introduce ‘Centers of Excellence’ (CoEs), which have been heavily adopted in the I/T world for providing defined, repeatable, and measurable business processes that add clear and quantifiable business value to their organizations. Next, we extend the notion of a CoE to the needs of the modern marketing organization and introduce the concept of a Modern Marketing Center of Excellence (MMCoE) TM . Reading this report will also provide insight into the resources Demand Metric has created for its members that can help you with building your own Modern Marketing Center of Excellence (MMCoE) TM to drive improved marketing maturity and operational effectiveness. Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) 3 © 2014 Demand Metric Research Corporation. All Rights Reserved.

4. ORIENTATION operational, not strategic, no plan, reactive still reactive, some campaign planning, no strategic plan working from a strategic marketing plan and campaign plans marketing plan aligned with and drives business planning LEADERSHIP no senior leadership in Marketing, possibly a Manager Director of Marketing, with Project or Program Managers VP, Director of Marketing, Program Managers CMO, VPs, Directors, Managers and Program Managers, MMCoE formed STAFFING informal roles & responsibilities, no job descriptions basic job descriptions in place but rarely updated job descriptions & performance reviews done regularly CMO compensation tied to revenue & marketing performance, MMCoE Team BUDGETING no budget exists, spending is ad hoc a small budget exists for items such as trade shows a budget exists and business cases are created to justify spend budgeting is connected to revenue growth targets, driven by steering committee PROCESSES no processes, activities done ad hoc, reactive activities are repeatable and some processes are defined all processes are defined and some measurement in place all processes are defined, measured, managed, and optimized by MMCoE TECHNOLOGY minimal marketing technology in place legacy customer database or CRM system, email marketing CRM, marketing automation, with some integration. all systems fully integrated, analytics & business intelligence used for decisions METRICS no metrics or a focus on advertising: #impressions, #ads operational metrics such as open rates, click-thrus, registrations cost per lead (CPL), renewal rate %, #sales qualified leads created revenue, customer lifetime value (CLV), return on marketing investment (ROMI), PERCEPTION cost-center, not a strategic function cost-center, sales support function cost-center, flashes of brilliance source of revenue, strategic function Level 2: Revenue Neutral THE MODERN MARKETING MATURITY MODEL Level 4: Profit Center (MMCoE) Level 3: Revenue Contributor Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) Fig. 3 Modern Marketing Center of Excellence (MMCoe)TM Level 1: Cost Center ORIENTATION operational, not strategic, no plan, reactive still reactive, some campaign planning, no strategic plan working from a strategic marketing plan and campaign plans marketing plan aligned with and drives business planning LEADERSHIP no senior leadership in Marketing, possibly a Manager Director of Marketing, with Project or Program Managers VP, Director of Marketing, Program Managers CMO, VPs, Directors, Managers and Program Managers, MMCoE formed STAFFING informal roles & responsibilities, no job descriptions basic job descriptions in place but rarely updated job descriptions & performance reviews done regularly CMO compensation tied to revenue & marketing performance, MMCoE Team BUDGETING no budget exists, spending is ad hoc a small budget exists for items such as trade shows a budget exists and business cases are created to justify spend budgeting is connected to revenue growth targets, driven by steering committee PROCESSES no processes, activities done ad hoc, reactive activities are repeatable and some processes are defined all processes are defined and some measurement in place all processes are defined, measured, managed, and optimized by MMCoE TECHNOLOGY minimal marketing technology in place legacy customer database or CRM system, email marketing CRM, marketing automation, with some integration. all systems fully integrated, analytics & business intelligence used for decisions METRICS no metrics or a focus on advertising: #impressions, #ads operational metrics such as open rates, click-thrus, registrations cost per lead (CPL), renewal rate %, #sales qualified leads created revenue, customer lifetime value (CLV), return on marketing investment (ROMI), PERCEPTION cost-center, not a strategic function cost-center, sales support function cost-center, flashes of brilliance source of revenue, strategic function Level 2: Revenue Neutral THE MODERN MARKETING MATURITY MODEL Level 4: Profit Center (MMCoE) Level 3: Revenue Contributor Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) Fig. 3 Modern Marketing Center of Excellence (MMCoe)TM Level 1: Cost Center

5. HOW TO IMPROVE YOUR MARKETING MATURITY Step 2 – Conduct a Self-Assessment Once you have studied the maturity model, take 15 minutes to refine your focus and identify your strengths and areas for improvement by using Demand Metric’s free World Class Marketing Assessment. This self-assessment is a 67 point diagnostic tool that will highlight your capabilities and provide you with a benchmark to measure your improvement over time. Step 1 – Determine Your Current Level of Maturity There are four stages of organizational maturity as it relates to Modern Marketing. These stages of maturity are:     1.  Cost-Center: Marketing is largely a sales support function with no executive leadership. Marketing department viewed as a cost-center with no ability to demonstrate its contribution to revenue. 2.  Revenue Neutral: Marketing is focused on Lead Generation, Events and Communications. Marketing & Sales work together to define lead quality and track operational metrics such as # impressions or # click-thrus but Marketing still viewed as a cost-center. 3.  Revenue Contributor: Marketing tracks metrics such as Cost Per Lead, Cost Per Opportunity but does not have a ability to clearly demonstrate direct contribution to revenue. 4.  Profit Center: Marketing viewed as a strategic enabler of scalable, predictable revenue. Metrics include Customer Lifetime Value, Return on Marketing Investment (ROMI) and Cost of Acquisition. Marketing is part of senior leadership and is highly respected. Fig. 4 World Class Marketing Assessment Download! Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) 5 HOW TO IMPROVE YOUR MARKETING MATURITY Step 2 – Conduct a Self-Assessment Once you have studied the maturity model, take 15 minutes to refine your focus and identify your strengths and areas for improvement by using Demand Metric’s free World Class Marketing Assessment. This self-assessment is a 67 point diagnostic tool that will highlight your capabilities and provide you with a benchmark to measure your improvement over time. Step 1 – Determine Your Current Level of Maturity There are four stages of organizational maturity as it relates to Modern Marketing. These stages of maturity are:     1.  Cost-Center: Marketing is largely a sales support function with no executive leadership. Marketing department viewed as a cost-center with no ability to demonstrate its contribution to revenue. 2.  Revenue Neutral: Marketing is focused on Lead Generation, Events and Communications. Marketing & Sales work together to define lead quality and track operational metrics such as # impressions or # click-thrus but Marketing still viewed as a cost-center. 3.  Revenue Contributor: Marketing tracks metrics such as Cost Per Lead, Cost Per Opportunity but does not have a ability to clearly demonstrate direct contribution to revenue. 4.  Profit Center: Marketing viewed as a strategic enabler of scalable, predictable revenue. Metrics include Customer Lifetime Value, Return on Marketing Investment (ROMI) and Cost of Acquisition. Marketing is part of senior leadership and is highly respected. Fig. 4 World Class Marketing Assessment Download! Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) 5

6. HOW TO WORK THE MODERN MARKETING MATURITY MODEL The final step is to set realistic goals for improvement in each key area. Then, gather resources, train your staff, get expert advice, and identify other creative ways to meet your improvement goals. Step 4 – Improve Capabilities and Re-Assess Over the next 6-12 months, use the Modern Marketing Maturity Model, World Class Marketing Assessment, and Prioritization Tool as your blueprint for implementing your performance and productivity plans. You may need to implement new technology systems to help you execute and measure your activities more accurately, standardize your key Marketing processes, or augment your organization’s skill set by adding additional staff or contractors. This is essentially how a Center of Excellence operates: assess, prioritize, improve, re-assess. After you have worked the process for at least 6 months, re-assess your organization using the World Class Marketing Assessment to demonstrate a measurable improvement to your capabilities and gain more support for your Modern Marketing Center of Excellence (MMCoE) TM . Step 3 – Set Incremental Goals for Improvement If you have completed the assessment, you will now have a report card with benchmarks for your current capabilities across the 8 key functions required to have a Modern Marketing Center of Excellence (MMCoE) TM . The next step in the process is to prioritize which areas of improvement will have the most immediate impact on your organization. You can use Demand Metric’s Prioritization Tool (no charge to downoad) to logically rank each initiative and get a visual output of your results. Fig. 5 Prioritization Tool Download! Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) 6 HOW TO WORK THE MODERN MARKETING MATURITY MODEL The final step is to set realistic goals for improvement in each key area. Then, gather resources, train your staff, get expert advice, and identify other creative ways to meet your improvement goals. Step 4 – Improve Capabilities and Re-Assess Over the next 6-12 months, use the Modern Marketing Maturity Model, World Class Marketing Assessment, and Prioritization Tool as your blueprint for implementing your performance and productivity plans. You may need to implement new technology systems to help you execute and measure your activities more accurately, standardize your key Marketing processes, or augment your organization’s skill set by adding additional staff or contractors. This is essentially how a Center of Excellence operates: assess, prioritize, improve, re-assess. After you have worked the process for at least 6 months, re-assess your organization using the World Class Marketing Assessment to demonstrate a measurable improvement to your capabilities and gain more support for your Modern Marketing Center of Excellence (MMCoE) TM . Step 3 – Set Incremental Goals for Improvement If you have completed the assessment, you will now have a report card with benchmarks for your current capabilities across the 8 key functions required to have a Modern Marketing Center of Excellence (MMCoE) TM . The next step in the process is to prioritize which areas of improvement will have the most immediate impact on your organization. You can use Demand Metric’s Prioritization Tool (no charge to downoad) to logically rank each initiative and get a visual output of your results. Fig. 5 Prioritization Tool Download! Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) 6

7. MODERN MARKETING CENTER OF EXCELLENCE (MMCoE) What is a Center of Excellence (CoE)? A CoE is generally a team of people that work together to develop and deploy ‘Best Practices’ around a specific function or focus area that drive improved business results. Some popular examples include: Lean, Six Sigma, TQM, ISO, ITIL, COBIT, PMO, etc. Experts in the field, Kerrine Bryan and Ian Herbert, define a CoE as: “The CoE may comprise a functional or cross-functional team looking both inside and outside the organisation to capture new knowledge and practices. It may be set up as a physical or virtual team, but it will have a permanent rather than just a project status. The defining feature of a CoE is knowledge management.” Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) Key Functions of a Center of Excellence (CoE): All CoE’s are unique but many focus on the following functions: §  Best Practices: Business Process Management (BPM) design and re- engineering based on third-party research & industry best practices §  Support: deliver shared services, policies, training, templates, etc. §  Direction: standardize processes in field/business units and provide methodologies, tools and knowledge centers to train staff §  Training: skills assessments, courses, e-learning, workshops, professional development plans, certification programs, academies §  Measurement: analyze results to demonstrate ROI of the CoE §  Technology: vendor/system standardization, technology expertise to enable automation of key processes across the whole enterprise §  Governance: budgeting & staffing, resource allocation, prioritization, decision-making, performance mangement, funding 7 © 2014 Demand Metric Research Corporation. All Rights Reserved. MODERN MARKETING CENTER OF EXCELLENCE (MMCoE) What is a Center of Excellence (CoE)? A CoE is generally a team of people that work together to develop and deploy ‘Best Practices’ around a specific function or focus area that drive improved business results. Some popular examples include: Lean, Six Sigma, TQM, ISO, ITIL, COBIT, PMO, etc. Experts in the field, Kerrine Bryan and Ian Herbert, define a CoE as: “The CoE may comprise a functional or cross-functional team looking both inside and outside the organisation to capture new knowledge and practices. It may be set up as a physical or virtual team, but it will have a permanent rather than just a project status. The defining feature of a CoE is knowledge management.” Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) Key Functions of a Center of Excellence (CoE): All CoE’s are unique but many focus on the following functions: §  Best Practices: Business Process Management (BPM) design and re- engineering based on third-party research & industry best practices §  Support: deliver shared services, policies, training, templates, etc. §  Direction: standardize processes in field/business units and provide methodologies, tools and knowledge centers to train staff §  Training: skills assessments, courses, e-learning, workshops, professional development plans, certification programs, academies §  Measurement: analyze results to demonstrate ROI of the CoE §  Technology: vendor/system standardization, technology expertise to enable automation of key processes across the whole enterprise §  Governance: budgeting & staffing, resource allocation, prioritization, decision-making, performance mangement, funding 7 © 2014 Demand Metric Research Corporation. All Rights Reserved.

8. BENEFITS OF A MMCoE TO THE ORGANIZATION Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) Why Build a Center of Excellence (CoE)? Executives at Forrester, Gartner and Accenture go on record to state that when organizations implement Business Process Management (BPM) initatives to improve their core operations and processes, they have much more success when they couple them with the creation of a Center of Excellence (CoE). Connie Moore, VP at Forrester Research states: “We have found a correlation between centers of excellence and BPM success.” The oppposite is also true, Moore goes on to state that: “BPM failures often go hand-in-hand with the lack of a CoE… It's hard to over- emphasize the importance of putting your core business process improvement skills in a central group.” In a Forrester survey, 67% of respondents who reported receiving clear and measurable benefits from their BPM initiatives had formal CoEs. For those who reported BPM failures, only 14% had CoEs in place. Forrester isn't alone in evangelizing the value of CoEs. A recent Gartner research report states bluntly that organizations without such cross-functional centers “will find that their efforts do not deliver the promised results, and their BPM initiatives will subsequently be disbanded.” Fully 50% of BPM projects conducted without CoE support go belly-up, according to Gartner. Asim Akram, senior manager of Accenture's Process Architecture Group, describes the CoE as an important bridge between short-term projects and taking a long-term and more strategic approach to BPM. In a recent article, Akram states: “While focusing on tactical needs, organizations tend to overlook areas such as process ownership and governance, roles and responsibilities, service levels and standards that should be associated with any process initiatives.” 8 BENEFITS OF A MMCoE TO THE ORGANIZATION Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) Why Build a Center of Excellence (CoE)? Executives at Forrester, Gartner and Accenture go on record to state that when organizations implement Business Process Management (BPM) initatives to improve their core operations and processes, they have much more success when they couple them with the creation of a Center of Excellence (CoE). Connie Moore, VP at Forrester Research states: “We have found a correlation between centers of excellence and BPM success.” The oppposite is also true, Moore goes on to state that: “BPM failures often go hand-in-hand with the lack of a CoE… It's hard to over- emphasize the importance of putting your core business process improvement skills in a central group.” In a Forrester survey, 67% of respondents who reported receiving clear and measurable benefits from their BPM initiatives had formal CoEs. For those who reported BPM failures, only 14% had CoEs in place. Forrester isn't alone in evangelizing the value of CoEs. A recent Gartner research report states bluntly that organizations without such cross-functional centers “will find that their efforts do not deliver the promised results, and their BPM initiatives will subsequently be disbanded.” Fully 50% of BPM projects conducted without CoE support go belly-up, according to Gartner. Asim Akram, senior manager of Accenture's Process Architecture Group, describes the CoE as an important bridge between short-term projects and taking a long-term and more strategic approach to BPM. In a recent article, Akram states: “While focusing on tactical needs, organizations tend to overlook areas such as process ownership and governance, roles and responsibilities, service levels and standards that should be associated with any process initiatives.” 8

9. Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) Key Success Factors for Building a MMCoE There are four key success factors to consider when building a MMCoE: 1.  Documented and Agreed Upon Charter of the MMCoE 2.  Strong MMCoE Leadership 3.  Executive Level Sponsorship & Buy-In 4.  Defined Roles & Responsibilities Documented & Agreed Upon Charter of the MMCoE The MMCoE charter is a formal document that defines the scope, purpose, authority and operating procedures of the MMCoE. It should be detailed and include the current level of marketing maturity along with specific goals, tied to key metrics, for measuring improvements. Strong MMCoE Leadership The leader of the MMCoE should be analytical, process-oriented, and have the ability to work effectively with key stakeholders and executive- level sponsors. A consulting background in BPM is an asset. Executive Level Sponsorship & Buy-In Without a full commitment from senior management to support the MMCoE with the required budget, resources, and attention, there is a solid chance that the initiative will go belly-up inside of 12 months. Enterprise-wide initiatives are notorious for failing, so be sure to set reasonable expectations and don’t attempt without the required buy-in. Defined Roles & Responsibilities Like any high functioning team, each group and individual member of the MMCoE needs to have clearly articulated a role & responsibilities, metrics to measure their performance, and goals & objectives. It is imperative to document these roles & responsibilities to ensure that everyone is on the same page, new MMCoE members get up to speed quickly, and you can clearly communicate to senior-level stakeholders how the MMCoE functions from an operational perspective. THE MODERN MARKETING CENTER OF EXCELLENCE (MMCoE) TM 9 © 2014 Demand Metric Research Corporation. All Rights Reserved. Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) Key Success Factors for Building a MMCoE There are four key success factors to consider when building a MMCoE: 1.  Documented and Agreed Upon Charter of the MMCoE 2.  Strong MMCoE Leadership 3.  Executive Level Sponsorship & Buy-In 4.  Defined Roles & Responsibilities Documented & Agreed Upon Charter of the MMCoE The MMCoE charter is a formal document that defines the scope, purpose, authority and operating procedures of the MMCoE. It should be detailed and include the current level of marketing maturity along with specific goals, tied to key metrics, for measuring improvements. Strong MMCoE Leadership The leader of the MMCoE should be analytical, process-oriented, and have the ability to work effectively with key stakeholders and executive- level sponsors. A consulting background in BPM is an asset. Executive Level Sponsorship & Buy-In Without a full commitment from senior management to support the MMCoE with the required budget, resources, and attention, there is a solid chance that the initiative will go belly-up inside of 12 months. Enterprise-wide initiatives are notorious for failing, so be sure to set reasonable expectations and don’t attempt without the required buy-in. Defined Roles & Responsibilities Like any high functioning team, each group and individual member of the MMCoE needs to have clearly articulated a role & responsibilities, metrics to measure their performance, and goals & objectives. It is imperative to document these roles & responsibilities to ensure that everyone is on the same page, new MMCoE members get up to speed quickly, and you can clearly communicate to senior-level stakeholders how the MMCoE functions from an operational perspective. THE MODERN MARKETING CENTER OF EXCELLENCE (MMCoE) TM 9 © 2014 Demand Metric Research Corporation. All Rights Reserved.

10. . How does the MMCoE fit into the organization? What are the Key Roles & Responsibilities? Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) Executive Marketing Leadership Team Key Stakeholders in Business Units Marketing Steering Committee Fig. 7 Modern Marketing Center of Excellence (MMCoe) Structure Planning, Program Prioritization, Budgeting, Resource Allocation, Governance, Business Alignment, Program Performance Review, MMCoE Team Selection Business Unit Marketing Priorities, Business & End User Requirements, Alignment with Sales Organization, Technology Implementation & Adoption Business & Marketing Directives, Prioritization, Marketing Program Funding, Executive Level Support, Senior Management Reporting, Decision-Making Shared Services Delivery, Process Definition & Optimization, Research & Best Practices, Training & Certification, Marketing & Sales Operations, Analytics Field Marketing, Events, Marketing Program Execution, Analytics, Reporting Product Development, Market Research & Analysis, Product Lifecycle Management THE MODERN MARKETING CENTER OF EXCELLENCE (MMCoE) TM 10 MODERN MARKETING CENTER OF EXCELLENCE MMCoE Field Marketing Product Management Sales & Channel Organizations Customer Acquistion, Retention, Customer Requirements CIO CFO EVP Sales

11. . 11 Demand Metric defines the Modern Marketing Center of Excellence (MMCoE)TM as: “the processes, practices, technologies and tools that improve the performance and productivity of the Marketing organization in an effort to drive a measurable contribution to revenue.”   Improving marketing effectiveness is a complex task, especially for mid-sized and large organizations. To assist in this mission, Demand Metric has created a model (figure 6) for understanding which functions and competencies are required to build a Modern Marketing organization that is viewed as a strategic driver of revenue. Additionally, Demand Metric has established a research practice for each of these competency areas to develop relevant research, tools, training and advice for organizations seeking to operationalize the ‘Best Practices’ employed by world-class marketing organizations. MMCoE Strategy & Operations Product Management Digital Marketing Demand Generation Sales Enablement Customer Engagement Fig. 6 Modern Marketing Center of Excellence (MMCoe)TM Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) THE MODERN MARKETING CENTER OF EXCELLENCE (MMCoE) TM © 2014 Demand Metric Research Corporation. All Rights Reserved.

12. . THE MODERN MARKETING CENTER OF EXCELLENCE (MMCoE) TM Key Function #1 - Marketing Strategy & Operations A solid Marketing strategy is just unrealized potential without sound marketing operations to facilitate the execution and measurement of its strategic objectives. Demand Metric has 1,000+ resources to help you develop your marketing strategy and implement it effectively with an infrastructure of systems, processes and skills that operationalize ‘Best Practices’. Here are a few practical resources for improving Marketing Strategy & Operations:   §  Strategic Guidance: check out these strategic Marketing Frameworks, Maturity Models, Assessments, and Metrics Dashboards. §  Methodology & Tool-Kit : use our Marketing Strategy Plan, methodology and associated tool-kit to develop your strategy. §  Technology Research: learn about technology solution providers quickly and without vendor fluff and bias with our Solution Studies, Best Practices Reports, Vendor Profiles and Vendor Matrices. §  Benchmarking Reports: read our Benchmark Reports to see how you compare to your peers in our community of 50,000+ senior marketers. Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) Fig. 6 Modern Marketing Center of Excellence (MMCoe)TM 12 MMCoE Strategy & Operations Product Management Digital Marketing Demand Generation Sales Enablement Customer Engagement

13. . Key Function #2 - Product Management While it’s a myth that over 80% of product launches fail, the Product Development Institute (PDI) found that top performing organizations have a failure rate of 38% while bottom performers fail 55% of the time*. Having your entire product management team operating from the same proven methodology can be the difference between a successful launch or a costly failure. Following are resources to help you develop Product Management excellence: §  Assessments: benchmark and evaluate your opportunities for improvement with our Market Research Capabilities Assessment and our fundamentals-based Product Development Assessment. §  Methodologies & Tool-Kits: operationalize ‘Best Practices’ with our proven Market Research, Product Development, Product Marketing Plan methodologies and associated tool-kits. §  DMU Training Courses: empower your team and provide them with training for Market Research, Product Development and Product Marketing. *Learn more about the PDI study results here. Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) THE MODERN MARKETING CENTER OF EXCELLENCE (MMCoE) TM Fig. 6 Modern Marketing Center of Excellence (MMCoe)TM 13 MMCoE Strategy & Operations Product Management Digital Marketing Demand Generation Sales Enablement Customer Engagement

14. . Key Function #3 - Digital Marketing Demand Metric surveyed over 600 organizations and found that only 22% of organizations are creating 'advanced' digital experiences. For organizations whose digital marketing sophistication is ‘advanced’, 83% are also experiencing revenue growth*. This means that digital experiences have a significant impact on revenue growth, but 78% of organizations are struggling to create them.   Develop better digital marketing experiences with these resources: §  Best Practices: review our Digital Marketing Framework, Maturity Model and Best Practices Report to discover how top organizations operate. Also, compare yourself to your peers with our Digital Marketing Benchmark Report. §  Technology Solution Studies: learn about vendors, trends and best practices for Video Marketing, Mobile Marketing, Social Media and Public Relations. §  DMU Training Courses: get knowledge, tools and a proven process for Agency Management, Video Marketing, Website Redesign, Public Relations Mobile Marketing, and Social Media. *Digital Marketing Landscape Report. Get it here. Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) THE MODERN MARKETING CENTER OF EXCELLENCE (MMCoE) TM Fig. 6 Modern Marketing Center of Excellence (MMCoe)TM 14 MMCoE Strategy & Operations Product Management Digital Marketing Demand Generation Sales Enablement Customer Engagement

15. . Key Function #4 - Demand Generation In our Lead Generation benchmark study, we found that just 9% of companies report having a highly effective lead generation process and 58% of participants say their process doesn’t produce enough leads. Also, 52% of companies don’t have an effective definition or standard for a ‘lead’ that is agreed on by Sales & Marketing*. From this data we can see that lead generation is one of the greatest points of friction between the Sales and Marketing team. These resources will help you improve your lead generation process: §  Assessment: take our Lead Generation Maturity Assessment to understand your current strengths & weakness and identify areas to improve. Read our Marketing Automation Solution Study to get up to speed on the market. §  Methodology & Tool-Kit: use our Lead Generation Plan Methodology to implement an effective lead generation strategy, process & infrastructure. §  DMU Training Courses: train and equip your team with a proven process for Lead Generation, Content Marketing, Webinars, & Events. *Lead Generation Benchmark Report. Get it here. Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) THE MODERN MARKETING CENTER OF EXCELLENCE (MMCoE) TM Fig. 6 Modern Marketing Center of Excellence (MMCoe)TM 15 MMCoE Strategy & Operations Product Management Digital Marketing Demand Generation Sales Enablement Customer Engagement

16. . *Sales Experience Quality Benchmark Report. Get it here. Key Function #5 - Sales Enablement A recent Demand Metric study revealed that 72% of sales and marketing professionals agree that there is an immediate loss of revenue after a bad sales meeting*. For 70% of organizations in this study, the recovery from a bad sales interaction can take from a few months to a few years. The biggest predictor of bad sales meetings was the failure of the marketing team to perform. Following are resources to help you drive revenue with better sales enablement: §  Best Practices: review our Sales Enablement Framework, Maturity Model and Best Practices Report to discover how top organizations enable Sales. §  Benchmark Reports: compare yourself with peers by reading our reports on Sales Enablement and Sales Experience Quality. §  Technology Solution Studies: learn about vendors, trends and best practices for Enablement KM, CPQ, CRM, Sales Intelligence & Sales Communication. §  DMU Training Courses: operationalize best practices with our training on Sales Enablement, Sales Training, and CRM. Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) THE MODERN MARKETING CENTER OF EXCELLENCE (MMCoE) TM Fig. 6 Modern Marketing Center of Excellence (MMCoe)TM 16 MMCoE Strategy & Operations Product Management Digital Marketing Demand Generation Sales Enablement Customer Engagement

17. . Key Function #6 - Customer Engagement In our Content & The Buyer’s Journey study we found that the most frequently encountered problem with content marketing efforts is that “content doesn’t create enough opportunities for interaction and engagement”, experienced by 58% of study participants. Companies need to look beyond their content marketing efforts to effectively engage their customers. These resources will help you drive improved customer engagement and loyalty: §  Assessment: take our Customer Experience Management Assessment to understand your current strengths & weakness and identify areas to improve. §  Benchmark Reports: read our reports, Content & The Buyer’s Journey and Website Optimization to learn how top organizations engage their customers. §  Tools & Models: use our Customer Lifetime Value (CLV) Calculator and Customer Journey Map tools to map out the journey and calulate the long-term economic value of an engaged and loyal customer. *Content & The Buyer’s Journey Report. Get it here. Practical Growth: Building a Modern Marketing Center of Excellence (MMCoE) THE MODERN MARKETING CENTER OF EXCELLENCE (MMCoE) TM Fig. 6 Modern Marketing Center of Excellence (MMCoe)TM 17 MMCoE Strategy & Operations Product Management Digital Marketing Demand Generation Sales Enablement Customer Engagement

18. . Best Practices Report Thank you for taking the time to review this report. Demand Metric understands that consulting firms, industry analyst firms, and training firms do not provide a cost-effective method for delivering high-quality research, tools, training and advice at scale. These firms charge hundreds of thousands to millions of dollars to tackle Marketing effectiveness improvement projects. We don’t operate that way; it just doesn’t drive enough value. Instead, our business & pricing model is more akin to the SaaS model, and many of our clients pay just a few hundred dollars a month to access our vast library of 1,000+ practical resources, and tap into our expert Analysts and Consultants for help on their projects. Our mission is to empower Marketing organizations by conducting research on how top performing companies operate and then build extremely practical tools, templates, and training to help our clients ‘operationalize’ the Best Practices we identify in our research. If you give us the opportunity to explain how our business model works, we are confident you will see how we can deliver so much value at such a low price point. If you’re tired of paying ridiculous fees to consulting, analyst and training firms, give us a chance to earn your business. We look forward to learning more about your current marketing challenges and strategic objectives, and demonstrating how we are helping our 50,000+ member community and 1,000+ global clients implement Modern Marketing Centers of Excellence (MMCoE) to improve their operational effectiveness and efficiency, and, most importantly, drive a measurable contribution to revenue growth. Cheers, Jesse Hopps, Founder & CEO at Demand Metric WHY CONSIDER WORKING WITH DEMAND METRIC? 18

19. . Best Practices Report 19 WE ARE THE MARKETERS BEHIND THE MARKETERS In just 8 years, we are fortunate to have added 50,000+ members to our community and worked with 1,000+ clients including some of the world’s leading brands, marketing thought leaders, and leading consulting firms & agencies.

20. . "...(Demand Metric) is always there to help, always there to provide feedback.... A great company, led by a terrific CEO, and staffed by fantastic people. ....If you are looking to solve a business problem or find other experts that can help, then Demand Metric is your place to go!” – CMO at Continuum, former VP Marketing at HubSpot "I've used Demand Metric for several projects, since 2008.... (they) are always responsive, creative and solutions- oriented. The analysts are great to work with and offer a plethora of ideas and information! I've used several of the product and marketing tool sets and find them to be essential in defining a solid product management methodology that fits in with any corporate audit and compliance framework.” - SVP Product Management, Cadence Bank Demand Metric gives me that confidence because I can trust they know today's marketing challenges and are current on all the innovations. Their analysts know marketing cold, and have always been attentive to detail and extremely responsive and creative. I speak to 50-70 companies representing themselves a year, and maybe 5 to 10% have the clients interest at heart. Demand Metric was in that 5%. I highly recommend Demand Metric for their knowledge of marketing services. – SVP Marketing, Vree Health Best Practices Report 20 CUSTOMER FEEDBACK & TESTIMONIALS

21. . Best Practices Report Demand Metric is a global marketing research & advisory firm serving a membership community of over 50,000 marketing professionals, CEOs, and business owners with advisory services, custom research & benchmarking reports, vendor studies, consulting methodologies, training, and a library of 500+ tools and templates. Using Demand Metric resources, members complete projects faster and with greater confidence, boosting respect for the marketing team and making it easier to justify needed resources. Our 1,000+ clients range from start-ups to members of the Global 1000. TO LEARN MORE ABOUT DEMAND METRIC To discover how Demand Metric can help you become more strategic, please visit us online at www.demandmetric.com CLIENT SUPPORT For information, inquiries and general support, please contact us toll-free at +1 866 947 7744, or info@demandmetric.com We offer discounts for academic and nonprofit institutions, provide group memberships and license our content to associations and large enterprises for use on corporate universities and intranets. ABOUT DEMAND METRIC © 2014 Demand Metric Research Corporation. All Rights Reserved.