At today’s Pardot User Conference Elevate 2011, Scott Voigt did a great job talking about a number of topics, one of which was marketing measurement. One example that he presented, and I thought was especially valuable, was that of the waterfall model, also known as a cohort or vintage model. The idea is simple but has several parts:
- Time is a challenge for marketing data as it is hard to attribute marketing-contributed value in an exact manner
- One of marketing’s most important KPIs is the number of opportunities created from marketing-generated leads
- Marketing-generated leads often don’t turn into opportunities immediately so it’s important to look at time series analytics
- A waterfall model takes the number of leads generated in a specific month, then tracks the number of opportunities generated from those leads in that month as well as subsequent months on a monthly basis
Here’s an example waterfall/cohort model for tracking marketing-generated leads that turn into pipeline opportunities:
In the table above, note how leads generated in one month turn into opportunities over the course of time. Without this type of analysis it’s difficult to understand marketing’s on going effectiveness.
Scott did a great job with his presentation and I enjoyed hearing his theories on marketing.
What else? What are your thoughts on the waterfall method for marketing measurement?