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Building a Business Case for Localized Marketing Automation

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Join Gleanster Principal Analyst for a look at building a business case for localized marketing automation. You'll learn how to frame the challenges internally, how LMA technology can help facilitate ...

Join Gleanster Principal Analyst for a look at building a business case for localized marketing automation. You'll learn how to frame the challenges internally, how LMA technology can help facilitate cost savings and sales lift, and most importantly - how to justify the investment with tangible numbers.

Michiels references an ROI model built by Gleanster that allows marketers to calculate the benefits of localized marketing using internal numbers.

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  • Consumers are local, and truly have always been local. Until mass media came along, brands were local too.But from the time of mass media until now, national brands built awareness and created demand for their products using national tactics like national advertising and broadcast and even their national website, and then they relied on their local affiliates (channel partners, agents, etc) to capture the final consumer demand and make the sale.But the way consumers investigate products and services, and the way they shop has changed. We’ve all read the stats, of course, but the fact that :97% of consumers use online media to shop locally (BIA/Kesley)78% of mobile phone searches result in a purchase (comScore)is remarkable…. AND when you consider that …consumers use 10+ mediums before making a purchase decision. (BIA Kelsey), the national brands marketers job just got a whole lot harder. In fact, I recently read that over 75% of marketers believe there has been more changes to the marketing landscape in the last 2 years, than in the previous 50.So what are leading national brands doing? At Balihoo, we have the opportunity to work with some of the top brands in the country, including Aflac, Geico, Wendy’s, New Balance, and Kohler (I think one of our Kohler client’s is actually on the webinar today) and there are over 350,000 local affiliates who access our platform.________________________________________________On top of that, even though consumers use the internet to investigate and make purchase decisions, they ultimately shop in their local markets. In fact, 80% of consumer shopping is done within 20 miles of home or office. (DMA)
  • This shift in the marketing landscape has provided National Marketers with a huge opportunity at the national marketing level…Better TargetingBetter AnalyticsMore measurable ROI…but has caused a serious problem for brands who rely on local outlets to sell their products. Local marketers can not keep up with the changing landscape.
  • Local marketers are comfortable doing traditional tactics. In fact. Balihoo’s data on over 350,000 local marketers, show that over 95% of these local affiliates, even when given digital campaigns and tactics, will choose to traditional tactics. It’s what they know how to do and it is what they are comfortable doing. Brands who rely on local marketers to execute local miss 50% of the local marketing mix and, they potentially miss 50% of consumer interest.Local marketers stay to the left with traditional, less targeted, tactics.
  • Balihoo frequently analyzes trends in local affiliate media usage with the campaigns that are running through Balihoo’s platform. As you can see on this chart, local marketers do what they are most comfortable executing—traditional media. The first digital tactic to appear on this chart is email at #12 in terms of $s spent.
  • Talking points:Yet, there is a noticeable difference between local marketers being left to make their own decisions (on the previous slides—the almost exclusively traditional tactics) and when national brands direct the strategy and execution (digital—search, local websites, email).Leading national brands are offering subscription based digital programs to their channel. And, in many cases they are choosing to execute on behalf of their local affiliates, instead of taking a “Build it and they will come” approach.
  • Traditionally, national brands used the “by” approach. Offering their local channel partners tools and templates and allowing them to run the campaigns how they wish using brand compliant materials and some co-op incentives. We have some clients that still do this, and this weekend, I ran in to one of this brand’s local resellers. Turns out our kids go to the same school. She told me her corporate brands has all kinds of great materials for her, but it still takes her 2 weeks of work to plan all her marketing for the year and get it set up. I mentioned the idea of subscription-based campaigns and PPC campaigns where all she’d have to do is say “yes, sign me up” and that it would run on her behalf…and she was amazed. She said “I have a business to run, if the marketing was easier, quicker and worked, I’d be thrilled”And, that’s what our more successful national brand customers are doing. They are using the Balihoo LMA platform to execute digital programs either in conjunction with or on behalf of, their local customers. And, they are still making the traditional tools available for the those local resellers and affiliates who want them.Interestingly, brands who take the build it and they will come approach, typically see 15-20% engagement of programs from their local affiliates, whereas national brands who offer with and for programs, see between 80-100% engagement._______________________________________________________________________________Additional notes for hard copy readers of slides:There are three modes of local marketing automation, and many brands choose to use a combination of the three. I’ll provide you with a quick overview and then we will look at an actual use cases.By Local – In the “By Local” mode, the lion’s share of decisions are made by the local marketer when executing a local campaign, but they do so within the guidelines set up by the national brand to ensure that campaign assets are brand-compliant. The local marketer makes the decisions on budget, timing, media channels, frequency, etc.With Local – The “With Local” mode combines a shared execution between the brand and the local affiliate in which the brand makes most of the sophisticated decisions and the affiliate makes some of the simpler, but often extremely valuable decisions in terms of a given tactic. These decisions should could be data-based or it could be decided which campaign to run/subscribe/fund. For Local – The “For Local” mode is used when brands have enough quality data and knowledge to act on behalf of the local affiliates. This mode works particularly well for digital tactics where the local marketer likely does not have the skill, resources, or time to properly plan and execute the campaign.
  • Talking points:Balihoo is the premier provider of local marketing automation technology. Our cloud-based technology incorporates a full suite of solution modules allowing national brands and agencies to think big and execute precisely. By marrying powerful technology and data (yours,ours and third party) brands and agencies are able to activate national campaigns at scale with personalized, geo-specific targeting and measurable results. Balihoo's customers quickly realize decreased marketing expenses and increased local sales revenue.

Building a Business Case for Localized Marketing Automation Presentation Transcript

  • 1. Ian Michiels Principal Analyst Gleanster Research Featured Speaker: WEBINAR Building a Business Case for Local Marketing Automation COMPLIMENTSOF: SusanTormollen VP of Marketing Balihoo
  • 2. Building a BusinessCase for Local MarketingAutomation March ,2014 Ian Michiels Principal & Managing Director Gleanster Research COMPLIMENTSOF:
  • 3. Agenda  What is Local Marketing Engagement? Why is it necessary?  What tools are critical to supporting local efforts?  How do you quickly build a business case for Localized Marketing Automation?  Recommendations for making the case stick.  Justification by the numbers.  Best practices for national brands
  • 4. TODAY’S STATS Total survey responses: 914 PERFORMANCE BASEDALGORITHM All Respondents 2013 LMA Survey (Nov. 2013) n= 265 Digital Engagement (Sept. 2013) n= 649 Top Performers: Respondents that achievedTopQuartile performance in key KPI’s Everyone Else Gleanster Benchmark Stats
  • 5. Importance of Digital for Brand Marketers Digital is critical to future success I understand how to use digital Lack of time Lack of resources Unsatisfied with digital execution Internal support 84% 61% 76%! ? ? ? * n= 78 Brand Marketers, November 2013 Gleanster LMA Survey
  • 6. Distributed Marketing Environments HaveUnique Challenges CORPORATE MARKETING LOCALAFFILIATES 86% Top Performers ranking personalized customer engagement as a top 3 imperative for revenue growth in 2014. 74% Local affiliates who believe they have a "better level of understanding about local target audiences” than corporate marketing.
  • 7. Distributed Marketing Environments HaveUnique Challenges CORPORATE MARKETING LOCALAFFILIATES NATURE OF CUSTOMER RELATIONSHIPS HOLISTIC / BROAD PERSONAL / 1:1 NATURE OFTHE BRAND STRATEGY BROAD / STRATEGIC TARGETED / PERSONALIZED / FLEXIBLE
  • 8. Distributed Marketing Environments HaveUnique Challenges CORPORATE MARKETING LOCALAFFILIATES NATURE OF MARKETINGTECHNOLOGY INFRASTRUCTURE CORPORATE MARKETINGTOOLS & AGENCIES • Email • DAM • Social Media • Campaign Management LOCAL MARKETINGTOOLS & AGENCIES • Website hosting • Paid Search • Email • Social Media
  • 9. Distributed Marketing Environments HaveUnique Challenges CORPORATE MARKETING LOCALAFFILIATES NATURE OF OPERATIONAL EXECUTION & EFFICIENCY CUSTOMER DATA CAMPAIGN REPORTING BRAND CONSISTENCY DOMAIN EXPERTISE
  • 10. Challenges Managing Brand Consistency 68% Brand consistency in locally executed marketing campaigns is a top 3 challenge with marketing communications. CMO SUITE
  • 11. Redundant Technologies & Fragmented Customer Data 89% Percentage of local marketers utilizing multiple marketing channels in marketing campaigns (email, paid search, landing pages, social media, direct, etc.) LOCAL MARKETING
  • 12. Lack of Visibility on Campaign Performance 52% Local marketers operated marketing technologies that captured data that was not integrated with corporate marketing platforms. ALL RESPONDENTS
  • 13. Redundant Spend & Agency Relationships 77% Local affiliates and local marketers that managed relationships with local agencies and consultants to create localized versions of marketing materials (outside of what corporate marketing provided). LOCAL MARKETING
  • 14. Building a Business Case
  • 15. If you don’t know these, you have no case. What are you trying to accomplish? • Pressing reasons to implement • Clearly defined challenges • Current-to-future state understanding Quantifiable Benefits • What do we get? • How long will it take? • How much will it cost?
  • 16. What are Local Marketing Automation Tools? • EmailCampaigns • EmailTemplates • BasicAnalytics • List Management • Drip Marketing • Landing Page Hosting • WebAnalytics • Lead Scoring • CRM Integration • Trigger Marketing • Social Marketing • Preference Management • DynamicTemplates • Permissions & Security • Asset Management • VersionControl • LocalWebsites • Paid Search • Local List Management • Comm. Frequency Caps • Workflow & Approvals • HolisticAnalytics • Co-Op Fund Management EMAIL MARKETING MARKETINGAUTOMATION LOCAL MARKETINGAUTOMATION GeneralCapabilities/Features
  • 17. Why doTop Performers Invest in LMA? 28% 32% 41% 42% 47% 49% 55% 59% 65% 76% 0% 25% 50% 75% Customer preference management Regulatory compliance Empower local marketers Reduce campaign cycle-time Visibility on marketing effectiveness Control budget variance Personalize local marketing materials Control agency spend Reduce costs Increase revenue Top Performers Revenue Cost / Efficiency
  • 18. Basics of a Solid Business Case Preparation Understanding Funded Investment
  • 19. A quick checklist for preparing the business case  Pressing reason to act  Documented current state  Understanding of future state  2-3 options for solving the challenges  Understanding of stakeholders impacted  Expected benefits (Quantifiable)  Timeline  Cost Decision makers need to buy into your initiative over x many others.
  • 20. Bridging the gap between current and future state Current State Future State??? Is your Business Case • What will we solve? • What is required to solve it? • Who will be involved? • What’s the benefit? • When will the benefit be realized?
  • 21. Basic Process SwimlaneTool
  • 22. Stakeholder Management - From 20/20 Project Management - From DocStoc
  • 23. Let’sTalk Numbers
  • 24. 3 Benefits to Link to Tangible Return REVENUE Sales AverageOrderValue Up-Selling Cross-Selling Frequency of Sale Customer Retention COST Time Savings (Resource Costs) Agency Spend Technology Licenses Asset Licenses Data Integration and IT Support CUSTOMER EXPERIENCE Personalized Messaging CentralizedCommunication Frequency Management Improved Segmentation BrandConsistency Unified Multi-Channel Communications Percentage of Top Performers that justify ongoing success of local marketing automation by successfully achieving increased QoQ sales objectives. Versus 11% of All Other organizations who claimed the same. 52% Everyone Else Top Performers
  • 25. Document CurrentStats
  • 26. On theCost SavingSide of Things
  • 27. On the Boosting RevenueSide ofThings
  • 28. Recommendations  Be open to changing processes.  Engage all stakeholders and have a plan for managing them.  Consider a phased rollout.  Benchmark existing stats before starting the implementation.  Marketers who know this stuff have very successful careers because most marketers don’t want to know this stuff.
  • 29. © BALIHOO 2014 // ALL RIGHTS RESERVED. NATIONAL BRAND BEST PRACTICES
  • 30. © BALIHOO 2014 // ALL RIGHTS RESERVED. THE LOCAL LANDSCAPE THE SHIFT TO DIGITAL This shift has been a huge opportunity for marketers at the national level… …but has caused a serious problem for brands who rely on local outlets to sell their products. Local marketers can not keep up with the changing landscape. Better Targeting Better Analytics More measurable ROI
  • 31. © BALIHOO 2014 // ALL RIGHTS RESERVED. THE LOCAL LANDSCAPE THE SHIFT TO DIGITAL Brands who rely on local marketers to execute local: Miss 50% of the local marketing mix And, they potentially miss 50% of consumer interest Your brand needs to be here.
  • 32. © BALIHOO 2014 // ALL RIGHTS RESERVED. LOCAL MARKETERS PREFERRED TACTICSSOURCE: BALIHOO PLATFORM DATA, 300,000+ AFFILIATE ACCOUNTS $SPENT 97%OF LOCAL MARKETERS 3%OF LOCAL MARKETERS
  • 33. © BALIHOO 2014 // ALL RIGHTS RESERVED. SUBSCRIPTIONS VIA BALIHOO APPLICATION Search Local Sites Email Direct Mail SUBSCRIPTIONS #OFORDERS 10%WHEN NATIONAL BRAND MANAGES 90%WHEN NATIONAL BRAND MANAGES
  • 34. © BALIHOO 2014 // ALL RIGHTS RESERVED. THREE MODES OF LOCAL MARKETING AUTOMATION EX: Local marketer accesses web-based LMA system to customize a newspaper ad. They download the ad and place the media directly with the vendor. EX: Local marketer accesses web-based LMA to opt-in to paid search program. Program is executed and results are communicated. EX: Websites published for every local affiliate using known data. Local marketers have the option to access web-based LMA system to modify, but it’s not required.
  • 35. © BALIHOO 2014 // ALL RIGHTS RESERVED. BALIHOO CUSTOMER RESULTS 15-20% Engagement 80-100% Engagement Triggered email and DM campaigns: 13 to 1 ROI. 80-100% Engagement Page 1 SERP 22:1 Conversion Phone vs. Form
  • 36. © BALIHOO 2014 // ALL RIGHTS RESERVED. ABOUT BALIHOO Balihoo is the premier provider of Local Marketing Automation technology. Our cloud-based platform allows national brands to think big and execute precisely. A FEW BRANDS WE WORK WITH…
  • 37. Complimentary Deep Dive ResearchReport IncludesCost and Revenue JustificationsWorksheets
  • 38. Thanks! Q&A Ian Michiels Gleanster Research @InsightFanatic ian.michiels@gleanster.com SusanTormollen Balihoo @tormollen stormollen@balihoo.com