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The definitive guide to marketing automation
 

The definitive guide to marketing automation

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This guide will be your ticket to a new world of more effective, efficient, and lucrative marketing

This guide will be your ticket to a new world of more effective, efficient, and lucrative marketing

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    The definitive guide to marketing automation The definitive guide to marketing automation Presentation Transcript

    • The Definitive Guide toMarketingAutomation
    • TABLE OF CONTENTSIntroductionPart One: What is Marketing Automation?Part Two: Why is Marketing Automation So HoT Right Now?Part Three: How is Marketing Automation Different From...?Part FOUR: Common Features in Marketing AutomationPart five: Business Case for Marketing AutomationPart six: Getting Successful with Marketing Automation – More than TechnologyPart seven: Buying Marketing AutomationPart eight: Future of Marketing AutomationPart nine: Marketo’s Marketing AutomationConclusionappendix: Key Marketing Automation ExpertsAbout this guide03041320365172808995979899
    • 3introductionwhy should i read the definitiveguide to marketing automation?Marketing automation is the technologythat allows companies to streamline,automate, and measure marketingtasks and workflows so they canincrease operational efficiency andgrow revenue faster.This Definitive Guide to MarketingAutomation is designed to answer anyand all questions you have about thetopic. It will show you what marketingautomation is and how it can help yourcompany. It will show you how to selectthe right system, and what investmentsare required for success. It willalso explain:• Why marketing automation is sohot right now• How marketing automation differsfrom other technologies such as CRMand email marketing solutions• The common features andadvanced functions of marketingautomation tools• How to build a business case andconvince internal stakeholders to act• The future of marketing automationWe’ve also included worksheets that youcan use to discern whether your companyis ready for marketing automation and howit will help you increase your revenue andattain your other business goals.We hope this guide will be your ticket to anew world of more effective, efficient, andlucrative marketing.Every business has one thing in common: the desire to achieve higher revenue and faster growth.But many companies struggle to align their people, processes, and technology to achieve these goals.
    • part oneWhat is marketingautomation?
    • 5part one: What is marketing automation?some contextLet’s do an exercise.Raise your hand if your company has theability to send marketing emails.I mean it. Don’t just read along – really,raise your hand. This one’s easy. I’ll wait.OK. Now, keep it raised if your companycan easily create new landing pages foreach campaign.Is it still up?Now keep it raised if your marketing teamcan set up all the emails for an event beforeit starts, and let it run ‘lights-out’. No onelooking. All parts whirring—and working.Yes, I know—that one’s a little trickier. Justa few more. I know your arm may begetting tired.Do you have the ability to look at a list ofpotential customers and prioritize thembased on fit with your business andlikelihood to buy?Can you filter leads by level of engagementand interest in your brand?Is your hand still up?Last question. Keep your hand raised ifyou can measure the revenue contributionof each of your marketing programs.If your arm is still up, you probably alreadyknow what marketing automation is andyou are using it effectively.Congrats! Give yourself a fist pump, andgo ahead and skip to the next section tolearn why marketing automation is so hotright now.Everybody else… read on.
    • 6part one: What is marketing automation?Marketing automation definedSo WHO uses marketing automation?COMPANY SIZES: Large enterpriseshave long found value in the technology,but it’s important to point out thatmarketing automation isn’t just for bigcompanies. In fact, Small and Mid-Sized Businesses (SMBs) make up thelargest growing segment in themarketing automation technologyspace right now. (That’s any companywith between $5 and $500 million inannual revenue.) And thousands ofcompanies even smaller than that usemarketing automation as well.INDUSTRIES: Companies across allindustries are using it. The earlyadopters were primarily in “business-to-business” (B2B) industries such ashigh-tech / software, manufacturing,and business services. But increasingly,companies across all categories –including “business-to-consumer” (B2C)industries such as healthcare, financialservices, media and entertainment, andretail – are adopting marketingautomation for its real-time, relationship-oriented approach to maintaining andextending customer relationships.Marketing automation is a key technologythat enables many modern marketingpractices, including:• Lead generation• Segmentation• Lead nurturing andlead scoring• Relationship marketing• Cross-sell and up-sell• Retention• Marketing ROI measurementSome of these practices are possible atsmall volumes without marketingautomation, but technology becomesessential with any scale.Let’s begin with a definition:WHAT: Marketing automation is a category of software.HOW: It streamlines, automates, and measures marketing tasks and workflows.WHY: So companies like yours can increase operational efficiency and grow revenue faster.
    • 7part one: What is marketing automation?Marketing automation definedFeatures of marketing automation platformsFeatures include email marketing, landingpages and forms, campaignmanagement, lead nurturing/scoring,lead lifecycle management, CRMintegration, social marketing capabilities,and marketing analytics.But hold up. Put that hand down tosteady yourself. We’ll take a deep-diveinto common features in Part Four.Email MarketingLanding PagesCampaign ManagementMarketing ProgramsLead GenerationPrediction/ScoringLead ManagementCRM IntegrationSocial MarketingResource ManagementMarketing AnalyticsMarketingAutomation
    • 8part one: What is marketing automation?Marketing automation definedWhat marketing automation is NOT We’ve talked about what marketingautomation is. Now we need to coverwhat it is not:1. A fancy name for email marketing– Not even close. Like the term suggests,marketing automation encompassesmarketing campaigns across allchannels—from direct mail and phonecampaigns to online and social initiatives.What’s more, marketing automationcombines robust, insight-focusedcapabilities from your CRM, leadmanagement system, web analyticsplatform, and other systems to createsomething that’s more than the sum ofthe parts. That means you get insight thatcan knock company revenue out of sight.3. A solution that only benefitsmarketing – Yes, the marketingdepartment benefits from marketingautomation. But high-quality marketingautomation usage ultimately is aboutincreasing revenue. When you think aboutit, that’s how things should be.2. A way to send spam – Like anythingelse, marketing automation technologydelivers results based on how you use it.Yes, it can be used for bad marketing, likespam. But it can also be used forexceptional marketing that truly connectswith customers.4. A solution that delivers valuewithout effort – If only you could just buymarketing automation technology, then sitback and watch the results producethemselves. But no. Marketing automationis not a panacea by itself. To deliver, itrequires the support of a comprehensivestrategy that integrates the rightprocesses, people, content, data, andmore. In other words, success is notguaranteed. Want to know what it takes?See Part Six.
    • 9part one: What is marketing automation?What marketing automation doesNurture relationships with leads thataren’t ready to buy. On average, only20% of leads are sales-ready when theyfirst come in. This means you need adisciplined process – known as leadnurturing – to develop qualified leads untilthey are sales-ready. Done well,nurturing can result in 50% moresales leads at 33% lower cost per lead.To learn all about this important processdownload Marketo’sDefinitive Guide to Lead Nurturing(www.marketo.com/DG2LN)Retain and extend customerrelationships. The marketer’s job is farfrom finished once someone becomes acustomer. For most industries, the realvalue comes from retaining and deepeningthe customer relationship over time. Thisincludes selling more of the same productto the customer (up-sell), selling additionalproducts to the customer (cross-sell), aswell as customer loyalty and retention. Notethat relationship marketing means morethan sending a monthly newsletter. Youneed multiple tracks for each buyer personaand buying stage that “listen” to how thecustomer behaves, and adjusts accordingly– just like a real-world relationship.“Without marketing automation, you are just guessing– just hoping that people will take the bait and be readyto buy your products. Statistics show that buyers don’tdo that. They want to learn at their own pace and bereached when they need more information or are readyto buy. A well-constructed marketing automationstrategy makes that a reality.” – John McTigue, Kuno CreativeBeyond the time-saving and efficiency benefits of automation, marketing automation enables modernbusiness processes that are essential to any modern marketing department. For B2B companies, thisincludes lead nurturing, lead scoring, and lead lifecycle management. For B2C companies, it includescross-sell, up-sell, and retention. And for all companies, it includes marketing ROI analytics.
    • 10part one: What is marketing automation?What marketing automation doesBuild alignment with sales.Many of the so-called “leads” yougenerate are not true potential buyers foryour products. You need “demographiclead scoring” to find the customers thatfit your target profile. You also need“behavioral lead scoring” to find the hotones displaying buying behaviors thatindicate that they are ready to engagewith you and make a purchase. And,once you’ve identified a lead as “hot,”you want to make sure Sales follows upquickly – and in a relevant manner, soyou need integration with CRM andautomation of processes like salesalerting, lead recycling, and service levelagreements (SLA). According to theMarketo Benchmark on RevenuePerformance, companies thatimplement this kind of lead scoring enjoy28% better sales productivity and 33%higher revenue growth than companieswithout lead scoring.Learn more by downloading ourDefinitive Guide to Lead Scoring.(www.marketo.com/DG2LS)Prove – and improve – marketing ROI.Marketing automation goes beyondprocess automation to help marketingexecutives get much-needed insight intowhich marketing programs are working andwhich aren’t. It gives CMOs the metrics theyneed to speak confidently to the C-suiteabout Marketing’s revenue impact.For more, check out:The Definitive Guide to Marketing Metrics and ROI.(www.marketo.com/DG2MM)“Marketing automation enables marketers toadopt an integrated approach to generating,nurturing and converting leads into customersby automating various marketing techniquesand processes to optimize the marketing-sales pipeline. It is rapidly becoming astandard practice, with an increasing numberof organizations turning to marketingautomation to solve problems, such asdiminishing lead quality, proving contributionto the sales pipeline, and difficulty evaluatinga lead’s readiness for sale.”– Econsultancy Marketing AutomationBuyer’s Guide
    • 11part one: What is marketing automation?Worksheet: are you readyfor marketing automation?For each category, select the appropriatenumber. If you strongly disagree, choose1. If you strongly agree, choose 5. Thenumbers in between 1 and 5 correspondto your level of agreement, neutrality, ordisagreement. Tally your score whenyou’re finished, and follow theinstructions at the end.Factor Disagree Agree1 2 3 4 5Our revenue process is complicated. It involves multiple touches fromMarketing and/or Sales.We target sophisticated buyers who do a lot of research before theyengage with us.Our company requires more insight into the exact value that ourMarketing programs deliver, so we can quantify our investment.Our customer base out-sizes our Sales team (assuming you haveone), so we lack direct personal relationships with all of ourcustomers and prospects.It would be impossible to personally call every potential customer ornew lead that we generate.Many of our new leads aren’t yet ready to buy from us. They requirenurturing.We would improve our sales results if Marketing played a bigger rolein our revenue process, particularly as it applies to nurturingrelationships with target early stage prospects.We already use most, or all, of the capabilities of our current emailmarketing service provider.Data drives almost every decision that our marketing team makes.Our marketing team is generating (or has specific plans to generate)significant amounts of personalized content for our target prospects.**This evaluation was based on research from Gleanster.To interpret your results, tally your score.• If you scored > 35, you’re ready formarketing automation.• If you scored between 20 – 35,you’re moving in that direction. Youshould consider getting started withmarketing automation very soon.• If you scored under 20, you may notbe ready for marketing automationquite yet. But that doesn’t mean youcan’t keep reading!Regardless of your score, there’s goodnews: where you are now is exactly whereyou need to be in order to get more leads,get better leads, and know how to tell thegood from the bad.So flip over into Part 2, and let’s get thisparty started.Use this worksheet to determine if your company is ready to use marketing automation.
    • 12Thought leader Snapshot:justin gray, CEO leadmdJustin Gray is the CEO of LeadMD. Hefounded the company in 2009 with thevision of transforming traditional“grassroots” marketing efforts throughthe use of marketing automation andCRM solutions.With 13 years of experience in the industry,Gray has seen the potential for growth inthis space and the willingness mid-sizecompanies have to join the SaaS revolutionas it pertains to their marketing processes.Marketo interview with Justin GrayMKTO: What do you think the future ofmarketing automation will look like in thenext few years?JG: Marketing automation, as it currentlystands, is software, but it won’t be longbefore it’s a full platform. I know – thatconcept isn’t revolutionary in and of itself,but it’s important to note that skill sets arewhat will drive this change. The ecosystemthat evolves around software takesmarketing automation from being simplya “tool” into being a real elementof change.Just as the combustible engine changedthe way we work, then the computeradvanced us leagues ahead, and nowsoftware is delivered via the cloud – thenext revolution of progress lies inconnected data. I think we’ll see MarketingResource Management (MRM) emergeagain as a component of MA – but thistime with ease of use asa centerpiece.Marketing automation as the mouthpiecefor forming conversations was step one,and now the next step will be to shape thisplatform to listen to, react, and share thedata of other systems in response. Theheart of that evolution boils down tointegration. As we expand our skillsets,best practices, plugins, and apps, wedevelop a true ecosystem – the future ofmarketing automation. This platform willthen become much greater than the sumof its parts and will be set apart as theplace where marketers spend their day.I’m excited.MKTO: What are the most importantthings you have to keep in mind in order tobe successful with marketing automation?JG: Marketing automation is a journey. Ifyou think it’s at all like a light switch thatyou can just flip on, you will fail. If you thinkyou don’t need a strategy or can afford tojust skip over the planning process, you’llalso be quick to fail. The reality is thatmarketing automation is bigger than CRMand higher on the proverbial food chain ofdata. Too many people are treatingmarketing automation as a tool, as if it’sjust an email platform, and it’s limiting thegrowth of the space. As we see theecosystem grow, the respect for it willgrow as well. And once marketingautomation is treated as a platform forsuccess, it will become precisely that.MKTO: What should you focus on whenselling marketing automation to yourexecutive team? What are some thingsthat might resonate with a CEO, CFO, orSales?JG: Three things comprise the languagethat is spoken by the CEO, CFO, and Headof Sales – efficiency, scalability, andROI–both tangible and intangible. Leadwith these heavy hitters because they’lltranslate well to the pain points theseexecutives experience often. Also, beprepared to admit that you’re notmeasuring correctly – or at all – right now.Sounds risky, I know, but hear me out.Why admit this? Because you’re not reallyable to measure properly with the archaic,non-integrated tools currently at yourdisposal. Many marketers are looking forROI on marketing automation, but thekicker is that a vast majority of themweren’t measuring what they hadpreviously been doing. So, how do youcompare something to nothing? You can’t.The first step in selling marketingautomation to your executive team isadmitting you have a problem. Then, steptwo is using marketing automation toestablish a benchmark. Wondering whereimprovement fits into the process? It’s stepnumber three. Too many organizations tryto jump right to improvement, right fromthe beginning. Don’t be that guy (or gal) – itnever ends well.
    • part twoWhy is marketingautomation so hot right now?
    • 14part two: why is marketing automation so hot right now?trends driving marketing automationMarketing automation is not a new concept. According to the Google Ngram Viewer, the term was firstused in 1980, and then started to gain traction in the late 1990s, peaking around 2004. The term thenstarted to decline in usage, reaching a low point in 2007 before it slowly began to rise again. Today, it’sback up near the 2004 peak.2005204060801002006 2007 2008 2009 2010 2011 2012Source: Google Ngram View, keyword “marketing automation”Source: Google Trends, keyword “marketing automation”
    • 15The dot-com boom and bustThe first rise and fall of marketingautomation was tied to the dot-comboom and bust. The late 1990s broughtan explosion of marketing automationvendors, including Annuncio, Aprimo,Broadbase, Epiphany, MarketFirst,Paragren, Prime Response, Revenio,Rubric, SAS, Siebel, and Unica – just toname a few.But then the bust happened. Not one ofthose companies (with the exception ofprivately-held SAS) survived as astand-alone vendor.Some of the solutions are still in themarket today. For example, Epiphany ispart of Infor Epiphany CRM solutions;Unica is part of IBM; Aprimo is part ofTeradata; and Siebel is part of Oracle.But overall, the bust left marketingautomation with a somewhattarnished reputation.Today: The rise of Software-as-a-Service SolutionsThe middle of the 2000s marked another shiftfor marketing automation, when nextgeneration vendors like Eloqua (now owned byOracle), InfusionSoft, and Marketo emerged. Atthe same time, marketing automation started toget hot again – much hotter than before. This islikely due to three key trends:1. Changing buyer behaviors forcedcompanies to change how they marketand sell.2. The 2008 recession permanently alteredhow companies approach revenuegeneration and measurement.3. A new software delivery model unlockedmany new sales opportunities.part two: why is marketing automation so hot right now?trends driving marketing automation
    • 16Trend #1. Changing buyer behaviorsforced companies to changehow they market and sell.Before the internet and social networks,buyers had limited ways to obtain thepurchase information they needed, sothe seller controlled the buying process.But then buyers moved into the powerposition. They could access theinformation they wanted on their ownonline, anywhere and at any time. Andthey could delay engaging with sellingrepresentatives until they knew as much(or more) than the salesperson did.For example, think about how youapproach buying a car. You don’t go to adealer until you know exactly what modelyou want, and how much you want topay, right?To address the challenge, Marketingstarted to play a larger role in the revenueprocess. They nurtured relationshipswith early-stage prospects until theybecame ready.part two: why is marketing automation so hot right now?trends driving marketing automationBut this solution posed a challenge of itsown: the problem of scale. Self-empoweredbuyers demand relevant, personalizedconversations on their own timeframe. If youdon’t provide that experience, they’re likelyto opt out of your communications. But howdo you manage individual dialogues withhundreds of thousands, even millions, ofpotential customers?This is precisely why having a marketingautomation platform became so critical inthe mid-2000s. There literally wasn’t anyother way to keep up with the demands ofmodern marketing. As Lucille Ball famouslydemonstrated at a candy factory, attemptsto implement such massive processeswithout the right systems quickly createcolossal messes and lost opportunities.“In a business of any size – especially onewith an engaging web and social mediapresence – buyer interactions can numberin the thousands, millions, or evenhundreds of millions. Without the righttools to automate the planning, execution,and measurement, even the hardest-working marketer can be overwhelmed bythe complexity.” – Phil Fernandez, Revenue Disruption
    • 17Trend #2. The 2008 recessionpermanently altered howcompanies approach revenuegeneration and measurement. No business completely escaped theimpact of the economy in 2008. But whilesome organizations hunkered down toweather the recession, cutting resourcesand headcount, leading companiesrecognized that growth was their ticket notonly to survive – but also thrive. So theyreorganized their processes to increaserevenue effectiveness. They refused totolerate traditional dysfunctions betweenmarketing and sales departments, andthose associated with measurement toolslike spreadsheets. Instead, they invested intechnology that automated andstreamlined critical revenue processes.part two: why is marketing automation so hot right now?trends driving marketing automationAt the same time, budget cuts made itmore important than ever to measure theeffectiveness of their marketinginvestments, even as new highly-measurable digital channels raised theexpectation for measurement across allchannels. Empowered with these newtools, companies determined what wasworking and what wasn’t, and thenscientifically re-allocated their resources tooperate more strategically.2008
    • 18Trend #3. A new software delivery model unlocked many new sales opportunities.Unlike prior generations of marketingautomation, today’s leading companiesprovide their solutions using “software asa service” (SaaS) – meaning marketerscould access the tools in a browser withlittle or no IT support. Also, thesesolutions are sold as a recurringsubscription, so marketers can buythem using operating budgets insteadof making capital investments.part two: why is marketing automation so hot right now?trends driving marketing automationThese two factors are critical. Marketingis unfortunately seen as a cost center atmost companies. This made it achallenge for marketing to get the capitalinvestment and IT support needed bytraditional solutions. But at the sametime, marketers have large discretionaryoperating budgets that they easily spendon marketing programs such astradeshows, online advertising, andagency services. By enabling companiesto buy marketing software like any ofthese services, the SaaS-basedmarketing automation vendors removedthe largest impediment to marketingautomation adoption.“This is the first time in thehistory of B2B marketing inwhich marketers areresponsible for purchasingand managing theirown technology.” – Carlos Hidalgo, ANNUITASConclusionGiven this history, you can understandwhy SMBs are the fastest-growinggroup of marketing automationadopters—because only after marketingautomation software was offered as aservice could it be available andaffordable to them. This shift drove rapidgrowth in the space. As the industrybegan to mature, businesses from allsectors began to cross the chasm andjoin early adopters from high-technologyorganizations. Soon, even traditionallyconservative and pragmatic companiesstarted to use marketing automation,which has resulted in the phenomenalgrowth we see today.
    • 19Case study:algonquin collegeChallengesWith campuses in Ottawa, Canada’sCapital, and across the Ottawa Valley,Algonquin College has over 19,000full-time students and more than 36,000continuing education students.To generate student leads, theorganization operated essentially in batchemail mode, leaving the college in the darkin terms of tracking the effectiveness of itsmarketing content. In addition, because ofthe diverse student base, the sales cyclecould range from just a few days to fouryears. It was clear they needed a solutionthat was flexible enough to providedetailed insight into prospect behavior andthe sales pipeline.SolutionAlgonquin College considered severalmarketing automation products beforethey ultimately selected Marketo based onits ease-of-use and Salesforce integration,which were at the top of the requirementlist. However, the college was particularlyimpressed with Marketo’s ability to providefirst-hand insight into how customersprogress through the website, interact withlanding pages, and respond to marketingcampaigns in real time.The marketing organization is now in aposition to move from basic nurturing towhat they term “advanced nurturing” -where they use a set of elaboratecampaigns and triggers to launch relevant,targeted content at the instant theprospect expresses interest. This will allowAlgonquin to further refine leadsegmentation and ensure they deliver theright message at the right time.BenefitsWith marketing automation, AlgonquinCollege has gained deep, actionableinsight to determine the content that hasthe most immediate positive impact onlead generation, open rates, conversionrates, and closed sales.As a result, they have improved deal flowand are able to move prospects throughthe buying cycle faster. In fact, the collegehas improved lead generation by 28%year-over-year and increased sales by18%, all while lowering its cost ofdistribution and marketing. In addition,their ability to measure ROI hasdramatically improved with Marketo,allowing Marketing to take a leadershiprole in driving higher revenues.Highlights• Improved lead generation by 28%year-over-year and increasedsales by 18%• Lowered cost of distributionand marketing• Enabled precise measurement ofwhich campaigns are most valuablein terms of closing new business• Able to understand what is requiredto move prospective students fromconsideration to buying• Allows Marketing to measure ROIand take a leadership role in drivinghigher revenues28%lead generationyear-over-year18%increased sales
    • part threeHow is marketing automationdifferent from...?
    • 21part three: how is marketing automation different from...?contextWe already know that marketing technology is not a new thing. For example, companies already use solutions for emailmarketing and Customer Relationship Management (CRM), so many marketers are confused. What does marketingautomation replace, and what does it complement? Furthermore, how does marketing automation compare to other newtechnologies and marketing trends, such as content marketing, inbound marketing, and social marketing?This section answers those questions.
    • 22Many CRM systems already have a module for marketing, which is why marketers wonderwhether they really need marketing automation to run their modern marketing departments.part three: how is marketing automation different from...?relationship to crmIf you dig into the design and capabilities,you’ll find that while CRM systems provideindispensable value to any kind of salesorganization, the reality is that they fallshort for most marketing departments.CRM systems are designed and optimizedfor a very different purpose, which is whatcreates the whitespace for marketingautomation vendors.From a functional perspective, CRMsystems typically do not providefunctionality for things like email marketing,prospect behavior tracking, and marketingprogram management. And it’s true thatmany CRM systems can be customized tohandle things like automated campaignflows, lead scoring, and de-duplication.But it’s hard.In the end, marketing automation systemsfocus on the needs of the marketingdepartment in a way that CRM simplycannot, while CRM provides a must-havesolution to the sales department (as well asmany others). Most importantly, given theadvanced integration capabilities oftoday’s platforms, the two categories oftechnology are designed to work togetherin a way that was never possible before.Both systems are necessary, and it’snecessary to understand what each onedoes for you – and what it doesn’t.CRM Marketing AutomationBusiness Goal Track opportunities andpipeline, manage contactand account informationDevelop customer relationships,automate marketing programs,measure marketing ROIDepartmentalFocusPrimarily sales andsales management,some marketingPrimarily marketing and marketingmanagement, some salesCommunicationStyleIndividual communications(sales rep to buyer)Communications to groups andsegments (may be personalizedand triggered 1:1)Architecture Database-oriented,transactional queriesWorkflow-oriented, highly detailedbehavioral data queries“When it comes to marketing automation capabilities, using CRM is like building a car from a kit. All the partsare there, but you need the time and skill to put it all together. Using marketing automation is like buying thecar you want or need, with all the features you want already installed and some gas in the tank, ready todrive. In either case, you still need to know how to drive and where you want to go.” – Mac McIntosh, Marketing Automation Expert
    • 23Virtually every company has invested in having the ability to send emails to their customers.part three: how is marketing automation different from...?relationship to email marketingIn fact, MarketingSherpa’s 2012 B2BMarketing Benchmark report ranksemail marketing as one of the top threemarketing tactics. On average,companies with over 100 people allocate9% of their marketing budget to emailalone, and those with fewer than 100employees up the ante to 16%.The fact is, email still works really well.But the world is changing. The inbox isfragmenting like never before. Marketershave to deliver their messages in moreformats to multiple devices. And theirmessages have to be more relevant,delivered more frequently, and somehowstill make it into the “most important”section of their buyer’s inbox.In reality, much of the email marketingyou see today is pretty terrible. Messagesare untargeted. Their delivery is ill-timedand poorly formatted. It’s no wonder thatengagement—the holy grail of emailresponse rates—is falling along withdeclining open and click rates.Other traditional marketing tools—suchas CRM, landing pages, social media,and web analytics—only compound theproblem. Because they don’t integratewith the email solution, email is left in asilo. It suffers from limited segmentation,and creates excessive amounts ofadministrative work for marketing teamswho endeavor to connect theirprocesses and consolidate reportingmanually. Costs quickly escalate for adhoc solutions that deliver poor ROI, andrevenue flounders because companiesdeliver inconsistent, unpersonalizedexperiences to their customers.“A marketing automationsolution delivers essentially allthe benefits of an emailmarketing solution along withintegrated capabilities thatwould otherwise need to becobbled together using variousstandalone technologies.” – Gleanster ResearchThe answer is to use email solutionsthat do more—coordinating withother tools, delivering more dialoguesthat build relationships and engagebuyers (not companies) on theirtimetables. That’s where marketingautomation comes in.
    • 24part three: how is marketing automation different from...?seven signs you need tograduate from emailSeven Signs You Need toGraduate from Email toMarketing Automation There are 7 signs that will indicate that yourcompany is ready to graduate from emailto marketing automation.1.Email blasts,not customer dialogues5.triggerinsensitivity7.sad salesteam2.wasting time onmanual campaigns3.email ina silo4.difficult oR imprecisetargeting & segmentation6.can’t tell if emailis driving pipelineor revenue
    • 251. You’re sending email blasts ratherthan engaging in customer dialogue. Customers are savvy. They don’t want tobe blatantly marketed to, and they aregetting better and better at screening outmass emails. However, customers arewilling to engage with relevant content,and they’re willing to build relationshipswith companies that they like, whoapproach them in the right way. In order toengage in a relevant customer dialogue,you need what we call “multi-step dripcampaigns” to nurture your relationshipswith customers patiently, over time, andmove them through their purchase journey.The first step in making your email blastsengaging is to map out workflows, but it’simportant to note that the workflows mustbe adaptable — never static. You shouldalways adjust your email campaigns to theresponses and behaviors of yourprospective customers. This is wheremarketing automation comes in. Without it,you are limited to “batch and blast” emailcampaigns that are based on your owntimetable — not the buyers’. You’redecreasing your ability to get relevantcontent to your customers on time.2. You’re being inefficient by wastingtime on manual campaigns.Consider ShipServ, the world’s leadingmarine marketplace. Before they startedusing marketing automation, they had aset of marketing tools, but were ineffectivewhen it came to nurturing customerrelationships. They could see the open rateon an email campaign, but they had noway to take the next step and respond tothese stats in an automated way. As aresult, they were constantly analyzing datamanually, creating lists and settingcalendar notices in order to simulate apersonalized marketing experience foreach customer. Needless to say, thisdifficult and cumbersome task limited theirability to scale their business. Instead ofbeing able to clone and individually tweaksimilar campaigns, they were stuckbuilding fresh campaigns from scratcheach time — a huge time-suck.part three: how is marketing automation different from...?seven signs you need tograduate from email3. Your email marketing exists in a silo. Email is divorced from your othercustomer interaction channels. It would beawkward to walk up to a customer inperson and start a conversation withoutreferencing the conversation where youleft off last time you talked. Yet that isexactly what happens with most marketingemails. In addition, email marketingplatforms are generally divorced from website pages.A customer who clicks through to yourcompany’s web site after receiving anemail campaign becomes lost. You’releaking opportunity because your emailmarketing is unrelated to other marketing.“While there’s certainly value inusing marketing automationsolutions to send email, andcreate landing pages andwebsite forms, it’s a bit likeusing a supercar to drive MissDaisy around town.”
    • 26part three: how is marketing automation different from...?seven signs you need tograduate from email“Marketing automation isbreaking free of email.” – Eric Wittlake,B2B Marketing Expert4. Your segmentation and targetingare subpar. This is arguably the mostimportant of the seven signs. The ability toprecisely micro-segment your databaseand target your list of leads and contactsis a crucial part of your marketingcampaign. An old (and still valid) rule ofthumb is that 50% of your success in acampaign comes from how well and howspecifically you target your list. The moreyou target, the more relevant yourmessage, the better your responserates… and your economics.Good targeting today means bothdemographic and firmographic filters—in other words, who the person is, and ifnecessary what company the personworks for. In addition, behavioral filters—which web sites customers visit, whatkeywords they click on, what they say onsocial networks—are key metrics. If youremail exists in a silo, you’re missing outon the ability to target the right people inthe right way based on their behaviors.Jupiter (now part of Forrester) did a studya few years ago and found thatcompanies who target their emailsbased on behavior have up to a 350%increase in open rates and a 50%increase in conversions. That’s a lot.It’s also important to know where yourbuyer is in their buying cycle. Are they anearly-stage prospect? An active lead?An engaged customer? Without a way tosegment your customers according towhere they are in the buying cycle, youcan’t send the right message at theright time.5. You have “trigger insensitivity”problems. Triggers are the ability tolisten and respond in real-time with aone-to-one response that goesdirectly to the customer displaying aparticular behavior. Real-time triggerscan include:When any of these activities occurs,marketing automation can trigger an emailto that customer. It’s relevant and timely.And timeliness is everythingwith marketing.According to research done at MITrecently, the difference between followingup to a customer hand-raise in 30 minutesversus 5 minutes means the differencebetween a 100 exchange in the contactrate and a 21 exchange in the likelihood ofactually qualifying that lead.• When a customer visits a web page• When a customer fills out a form• When a customer’s leadscore changes• When an opportunity is updatedin the CRM system• When an activity is logged
    • 27part three: how is marketing automation different from...?seven signs you need tograduate from email6. You can’t tell if your email isdriving pipeline or revenue. Emailplatforms can tell you about open ratesand click-through rates, but what youreally need to find out is which activitiesare leading to actual revenue. If you can’tmake this connection, you can’tdetermine marketing ROI.“I can explain a move from an Email Service Provider(ESP) to a marketing automation platform with ananalogy – still photographs versus video. ESPs are likestill photographs – you can get great stats from usingone, but each campaign is effectively a snapshot intime. Marketing automation platforms are like videos– you can see the behavior of people in multiplecampaigns over time, taking all the snapshots andconnecting them together to make a “flip movie” orvideo out of them.”– Joseph Zuccaro,Founder and President of Allinio LLC7. You’ve got a “sad Sales team.”They don’t know which leads are good orwho to follow up with, and they can’t sendtheir own marketing emails. When youdon’t have Marketing and Sales workingclosely together, Sales becomesfrustrated and sees less value inMarketing. Sales and Marketing must beclosely aligned for success.
    • 28Inbound marketing is: The process of helping potential customers find your company – often before they areeven looking to make a purchase – and then turning that early awareness into brand preference, whichultimately creates leads and revenue.part three: how is marketing automation different from...?relationship to inbound marketingInbound marketers create relevant andcompelling content to attract and convertleads—for the purpose of buildingaudiences and attracting attention. Theirjob is not to find leads, but to help leadsfind them.Inbound marketing can deliver:• Increased brand awareness.Buyers must find you before they canbuy from you. If your company showsup high in the search results, you’ll get“free” brand awareness whencustomers seek information. Also, youearn highly relevant brand exposurewhen they share your content.• Better brand preference.Brand preference trumps brandawareness any day, so inboundmarketing builds preference byengaging with buyers early, oftenbefore they are intending to make apurchase. All other things beingequal, people are more likely to buyfrom a company with whom theyhave a relationship.• More leads for less investment.Inbound marketing has a tendency tobuild on itself. Great content pays offdividends for a long time, multiplyingas you create more content.Where Inbound Marketing Falls Short Inbound marketing is a highly effectivestrategy, but it will fail for most companiesif executed alone.Two of the most critical limitations are:1. It’s hard to target specificaudiences with inbound marketing.Inbound marketing can’t effectively reacha specific set of contacts—for example,decision makers at a list of targetaccounts. To use a military analogy,inbound marketing is like an “air war.” Itallows you to efficiently carpet-bombbroad areas, but it’s harder to use it to hitspecific targets. In contrast, you need“ground war” tactics (think Marines andsnipers) to target specific objectives andhold territory.2. Inbound marketing doesn’tmotivate people to act. By definition,inbound marketing waits for buyers to takeaction when they’re ready. It’s not a goodsolution when you need someone to acton a specific timetable, such as signing upfor an event. All good marketers readilyacknowledge inertia and recognize thatpeople sometimes need a push not a pull,to take action. This is especially true fortargeting pragmatists and late adopterswho don’t actively seek out alternativesand new solutions.
    • 29part three: how is marketing automation different from...?relationship to inbound marketingMarketing Automation + Inbound Marketing TogetherBecause of the limitations of inboundmarketing, a complete marketingstrategy needs to incorporate a fullportfolio of approaches, includingevents, webinars, email, andadvertising—plus inbound tactics.To extract the maximum value frominbound marketing, companies need tocombine it with relationship marketing,scoring, and other components ofmarketing automation. We call this theInbound Marketing Multiplier. Without it,you simply generate raw names for yourbusiness – without turning those namesinto leads and customers.Above all, it’s critical to remember thatinbound marketing is a strategy, not atechnology. Many technology solutionscan help with inbound marketing, includingblog software, content management, SEO,and social media monitoring. These can sitalongside a marketing automationsolution. So, definitely pick the rightinbound marketing tools and the rightmarketing automation platform for yourbusiness, but don’t handicap yourself bythinking of it as an either-or proposition.“The best marketers are usingboth inbound marketing andmarketing automationtogether, and they aregetting great returns.” – Greg Head,CMO of InfusionSoft
    • 30part three: how is marketing automation different from...?relationship to inbound marketingCommon Misconceptions about Marketing AutomationVendors who promote inbound marketingtechnology like to pit inbound marketingand marketing automation against eachother, vilifying marketing automation as asource of robotic communications andunwanted spam. But while this “good” vs.“evil” debate may make good copy, itoversimplifies the problem and favors anisolated agenda.Misconception ResponseDoesn’t build the list Complete marketing automation systems include functionalityfor lead generation, including online and offline events, pay-per-click, and tradeshows, as well as organic programs such associal and content marketing.Too narrow, too emailfocusedWhile modern marketing automation started with email, manyplatforms today provide a single source of truth for everythingyou know about a prospect or customer. They combineinformation from your CRM system, social activity, your websiteand blog, buyer purchase history, and other behavioralinformation. With this complete view of a customer’s needs andinterests, you can trigger relevant interactions at the right time,over any channel.Not Social Today’s marketing automation systems directly provide orintegrate with social capabilities including social profiles,campaigns, sign-on, and promotions. This means you cantrigger marketing actions based on any of these activities, suchas making a tweet, sharing a post, and so on.Ignores customers Marketing automation is not just about new business. The samesegmentation and nurturing capabilities can and should beused to develop and deepen relationships with customers, notjust prospects.The reality is, marketing automation is atool that can be used for good marketingthat people love, or bad marketing thatpeople hate. It’s not the tool itself but howit’s used that matters. In fact, in mostcases, marketing automation providesbehavioral segmentation and 1:1 targetingcapabilities that improve the relevance ofcommunications.Here are some of the inaccurate claimsmade about marketing automation.
    • 31part three: how is marketing automation different from...?relationship to social andcontent marketingSocial marketing has become an integral part of the marketing mix, and content marketing plays anincreasingly dominant role as well. But while social and content marketing are both hot tactics for buildingawareness and generating leads, they still require marketing automation to convert those leads into revenue.Without marketing automation, you also can’t measure the effectiveness of these programs.Social marketing is the process ofbuilding relationships online on socialplatforms and influencing buyers evenbefore they’re identified as potential leads.A few years ago, everyone was talkingabout the importance of social listening,along with having a presence on sites likeFacebook and Twitter. Today, theconversation has shifted. Leadingmarketers recognize that social is morethan just a channel or tactic; it is a strategythat should be present in every aspect ofyour marketing. Leading marketers askthemselves, “How can I entice andengage my audience to share mymessage and be a brand ambassador?How can I socialize every campaign?”Content marketing is the process ofcreating and distributing highly relevantand valuable content to attract, acquire,and engage clearly defined andunderstood target audiences—withthe objective of driving profitablecustomer action.Content strategies operate on thebelief that buyers will ultimately rewardbusinesses who deliver consistent,ongoing information with their businessand loyalty, so the ROI of your contentmarketing hinges on your ability tocommunicate with prospects andcustomers without selling. When contentoffers relevant and valuable informationthat makes buyers more intelligent,instead of pitching products or services,buyers look forward to receiving it. Theyalso engage with your content, andamplify your message by sharing it withtheir networks.“Marketers are beginning torealize that the quality ofcontent is crucial to successin both lead generation andlead nurturing. Marketingautomation will yield higherconversion rates and ROIbecause campaigns arebetter targeted towards theright persona and utilizeconsistently high quality,relevant content.”–John McTigue,Kuno CreativeThe Need for AutomationLike inbound marketing, social andcontent marketing are essential ways toadapt to and leverage changing buyerdynamics in today’s era of informationoverload. Clearly, all three strategies deliverresults and should be part of anymarketing portfolio.But don’t forget that these three tactics arealso all mostly “Top of the Funnel” (TOFU)strategies. In other words, they buildawareness and can generate new namesfor your database. However, the vastmajority of these leads will not be ready tomake a purchase—particularly becausegood content, inbound, and socialmarketing tends to entertain and informbroadly, rather than promote specificproducts. In other words, while highlyeffective, these three tactics cannot deliverrevenue on their own.
    • 32part three: how is marketing automation different from...?relationship to event marketingEvents help:• Generate leads• Build brand awareness• Increase customer and prospect engagement• Educate your marketWhile you can’t automate all aspects of agreat event, there are many areas wheretechnology can play a significant role inmaking that event seamless andprofessional. For this reason, the eventtechnology category is growing fast. Thisincludes webinar platforms, virtual eventproviders, and event registration solutions.Marketing automation complements andintegrates with such event technologysolutions, thus eliminating the need towaste time manually importing data fromeach platform and risk costly errors. It alsoprovides direct event capabilities itself.Examples include email invitations,registration landing pages, reminders andfollow-ups, and event reporting andanalytics—and the ability to clone previousevents to streamline the process andincrease productivity and efficiency.Event marketing serves as an important way to connect in person with potential customers. Events also offerthe unique opportunity for prospects and customers to interact with solution providers and get a firsthandsense of the company’s focus, perspective, and personality.Marketing automation + Event technology equals the ability to run dozens or hundreds ofgreat events with minimal work.
    • 33RPM arose out of marketing automationas a strategy to optimize interactions withbuyers across the revenue cycle.Marketing automation itself is not alwaysa CXO-level priority, but every companyhas an objective to improve revenueperformance. RPM bridges this gap byshattering obsolete approaches toMarketing and Sales while providing theblueprint for building a far more effectiveand efficient revenue process incompanies of all sizes.Revenue Performance Managementtransforms the way Sales and Marketingwork together. In order to achieve this kindof transformation, RPM requirescompanies to address their organization,compensation and incentives, job roles,and work practices as well as theirtechnology infrastructure. It’s important tonote that RPM is a business strategy—nota technology. But it requires marketingautomation tools for implementation.Without marketing automation, Revenue Performance Management(RPM) can be slow, error-prone, andinconsistent across an organization.part three: how is marketing automation different from...?relationship to RevenuePerformance management (rpm)At the end of the day, revenue is every company’s most important objective.Revenue Performance Management (RPM) is a strategy to optimize interactionswith buyers across the revenue cycle to accelerate predictable revenue growth.
    • 34Six Sigma for RevenueOver the last couple of decades, we’veseen other core business processesundergo fundamental transformations toimprove efficiency, quality, andcontributions to profitability. In the 1980s,General Electric, under the leadership ofJack Welch, started a trend by institutingthe Six Sigma set of practices to improvetheir manufacturing processes andeliminate product defects. Six Sigmafocuses on measuring, analyzing,improving, and controlling company-wide business processes. It has createda lot of opportunities for the supply chainin enterprises because of a continuousfocus on measurement and improvementof processes.Now, we need to apply that same rigor tothe demand chain, which is why we’reseeing the rise of Revenue PerformanceManagement. RPM is doing for revenuewhat earlier process transformations haveaccomplished for other key businessfunctions. In the 1980s, it was Six Sigma.In the 1990s, it was Supply ChainManagement. In the early years of the2000s, there was Agile Development. All ofthese revolutionary processes have led usto where we are today: RPM.Traditionally, companies have beenfocused on the sales cycle. But in a worldwhere Marketing is taking more and moreresponsibility for revenue, just analyzingand perfecting the sales cycle is no longerenough. A key principle of RPM is aligningMarketing and Sales. From the buyer’sperspective, there is only one buyingcycle, but from a traditional companyperspective, Marketing and Salescycles have always been separate.part three: how is marketing automation different from...?relationship to RevenuePerformance management (rpm)The sales process needs to start withmarketing, and the same trackingmethods need to be applied to the entireprocess, from start (marketing) to finish(the sale) in a single integrated revenuemodel. RPM is creating a new mindsetthat maximizes a company’s revenueby merging the Sales andMarketing processes.To achieve breakout revenue growth,businesses need to transform everyaspect of how they create revenue. Theymust re-think the roles, responsibilities,metrics, and processes that are used bytheir departments on the front-line ofrevenue creation—specifically Marketingand Sales.We’ll see more of RPM in Part Five, wherewe talk about Marketing AutomationMaturity. You can also take a side trip toour RPM cheat sheet atwww.marketo.com/rpm.
    • 35Thought leader Snapshot:jason kort, editor formarketing automation timesJason Kort is a Senior Consultant atakaCRM and one of the forces behindMarketing Automation Times, a blogdedicated to providing the latest news andinformation on the world of marketingautomation. Jason is an experiencedonline marketing professional with a historyof developing personalized, relevant andtimely communications to help businessesclose more sales.Marketo interview with Jason KortMKTO: What do you think the future ofmarketing automation will look like in thenext few years?JK: The end user experience will continueto improve as each marketing automationcompany deploys more of the samedesign interface that can be found on theconsumer web (i.e. Apple, Google,Amazon). Passive reports anddashboards will be replaced by moreactionable reporting elements as theultimate goal is to help Marketers be betterMarketers. CRM integration will continue toadvance and those relationships will growstronger. The customer wants a one-stopshop for all customer marketing activities.MKTO: What are the most importantthings you have to keep in mind in order tobe successful with marketing automation?JK: You would not build a house withouta blueprint and yet many companies rushinto marketing automation without aplan. Marketing automation is a toolthat requires careful planning for it tobe successful.It all starts with great content, so alwaysstart with an audit of your marketingmaterials. After that, build customerpersonas to understand what yourcustomer needs and then match the rightcontent with those customers.Think of marketing automation as thepipeline for delivery and reporting.Content is the fuel that fills the pipeline.MKTO: What are some benefits ofmarketing automation that you wouldpoint out to someone who is consideringswitching from their Email ServiceProvider (ESP)?JK: Automation: The ability to havemultiple campaigns triggered based onactivities is a huge time saver.Process: Having a repeatable businesscycle allows for a more predictablemarketing ROI.Reporting: Learn much more than whoclicked what and when. With marketingautomation you can monitor prospectbehavior throughout the purchase processand target relevant messages that matter.You can also better understand what typeof content works as well as messaging.The Power of Now: Instant notificationsand lead scoring allow your sales team toquickly react and reach customers whenthey are ready to talk.MKTO: What are the most importantthings to look for in a marketingautomation vendor?JK: Like many industries, I think service isthe most important element in selecting amarketing automation vendor. Thetechnology platform is important but theprogram that trains and supports yourteam is equally important.Recently I helped a customer troubleshoottheir marketing automation solution. Theirinternal team tried to fix the issue and wasso frustrated that they hired me as anoutside resource. Once inside I found thatthere were some simple fixes that resolvedthe problem and allowed the customer tostart using the solution. The marketingautomation company involved alsoagreed to do more end user trainingwith the customer.The point of this story is that oftentechnology needs a helping hand from ahuman being. Make sure your marketingautomation provider can provide youwith help.
    • part fourcommon features inMarketing automation
    • 37Marketing automation platforms provide broad functionality including email marketing, landing pages andforms, campaign management, lead nurturing/scoring, lead lifecycle management, CRM integration, socialmarketing capabilities, and marketing analytics.part four: common features in marketing automationfeatures overviewEach vendor has different strengths andcapabilities across these categories, sowe’ve also indicated how common eachfeature is in the tables below:common Variance sometimes
    • 38part four: common features in marketing automationEmail and online marketingTestingAn effective split-testing strategy drills into whatworks to maximize response rates, and can raiseyour conversions by 48% or more, according toMarketingSherpa. You can test emails (subjectlines, copy, graphics, calls to action, frequency,timing, etc.) as well as landing pages, forms,and so on.Dynamic ContentEmails and landing pages that have beencustomized for specific segments drive muchhigher engagement. Customize text, images,and calls-to-action based on criteria, includinglocation, industry, job title, and much more.For example, send different messages tocurrent active opportunities than to early-stage prospects.Mobile OptimizedAs mobile devices become increasingly popularin business, the marketing system must supportmobile-optimized emails and landing pages.Sales EmailsThis is the ability to personalize “from addresses”and signatures on behalf of individual sales reps,so that automated emails appear to come fromthe specific sales owner.Batch Email MarketingEmail marketing is the ability to create“what-you-see-is-what-you-get” (WYSIWYG)emails and newsletters with easy-to-use designtools, send emails to groups of customers andprospects, and track and report on deliveries,opens, and clicks. It gives you a complete viewof email performance.Email Deliverability and Reputation ManagementSimply sending emails cannot impact revenue ifthe emails do not make it to the recipients’inboxes. Since marketing automation typicallyreplaces a stand-alone email service provider(ESP), your vendor should offer functionality andservices to ensure inbox delivery. This can includeopt-in management, bounce handling,unsubscribe processing, and suppression lists,as well as higher-end services such as dedicatedIP addresses and capabilities like email preview,spam checking, link validation, anddelivery monitoring.Email marketing is the often the mostimportant online marketing channel and iseven more powerful when combined in asingle platform with landing pages andforms. Marketing automation systems canusually replace an email service provider(ESP), though the depth of emailfunctionality does vary across vendors.COMMON VARIANCE SOMETIMESReal-Time Triggered EmailsTriggered emails give you the ability to listen forspecific customer behaviors and events andrespond with an appropriate real-time email. Forexample, when a prospect clicks on a specificlink, a sales rep logs a call, or a lead score goesabove a certain threshold, you can automaticallysend the right message at the right time.Personalized, 1:1 emails based on real-timebehavioral data can increase open rates by 50%and conversion rates by 350%(Jupiter Research).Landing PagesThe landing page is an essential part of manymarketing campaigns. By directing clicks to alanding page customized for a specific emailrather than a generic home page, marketers cansignificantly improve their conversion rates. That’swhy many marketing automation systems includethe ability to build WYSIWYG pages with agraphical interface, without help from IT or theWeb department.FormsRegistration forms can be placed on landingpages, microsites, and corporate websites. Whena prospect or customer fills out the form, itcaptures the activity and adds the lead to thedatabase (if new). Some systems have“progressive profiling,” which are smart forms thatrecognize known visitors and ask differentquestions to build out the profile over time. Somesystems also allow for “social sign-on,” lettingusers register on landing pages using theirsocial credentials.
    • 39part four: common features in marketing automationLead managementMarketing DatabaseA marketing database is the system of record foryour most important marketing assets: yourleads and contacts. It should include more thanthe data in your CRM system, providing a richview of all marketing interactions between eachperson and your company, including websitevisits, email clicks, scoring changes, dataupdates/history, and so on.Single View of the CustomerThe more powerful marketing automationsolutions extend the marketing database toinclude data from third-party systems, socialnetworks, in-house applications, and more. Theyprovide a true single view of your customer andprospect. This enables the platform to trigger“right-time, right-message” interactions andextend beyond marketing into broad customerlifecycle management.SegmentationThe ability to precisely micro-segment yourdatabase and target the exact right list of leadsand contacts is essential to the success of allmarketing activities. These filters should includea combination of demographic, household, andfirmographic attributes (title, company size,location), as well as behavioral filters and CRMinformation. Here are some example lists:high-score leads in a particular region whovisited your website in the last seven days;contacts at active opportunities who registeredfor an upcoming webinar; or prospects whoreceived an email offer and did not click throughbut visited your website anyway.Multi-touch Campaigns / Lead NurturingThis is the ability to automate “drip marketing”campaigns that send relevant messages overtime, based on prospect behaviors and pre-defined campaign steps. This can includeautomated email marketing flows, but can alsoinclude other channels as well. Often, thiscapability is used to run lead nurturing workflowsthat are designed to maintain and deepenrelationships with prospects over the long term.Online Behavior TrackingThis is the ability to track which emails prospectsopen and click, what webpages they visit, whatkeywords they use, even what they say on socialnetworks – all with the goal of understandingwho they are, what they are interested in, andwhere they are in the buying process withyour company.Lead Scoring and GradingWith lead scoring, you automatically qualify leadsbased on demographics and BANT criteria aswell as specific prospect behaviors, includingrecency and frequency. By tracking each ofthese factors and assigning appropriate weightsto each, you get a comprehensive view ofprospect interest and engagement. Moreadvanced capabilities include reducing scoresbased on inactivity, and supporting multiplescoring models that separate demographic fitfrom behavioral interest, as well as scores fordifferent products, divisions, etc.The bread and butter of marketingautomation, most vendors provide at leastsome level of lead management functionality.COMMON VARIANCE SOMETIMES
    • 40part four: common features in marketing automationlead managementCOMMON VARIANCE SOMETIMESData Quality and AppendCRM data is often full of duplicates and missingrecords. This isn’t a problem for salespeople whowork with one record at a time, but it’s hard touse for Marketing. Data quality is an essentialunderpinning to any successful marketingprogram, consisting of de-duplication, cleansing,and appending. De-duplication recognizes leadsand contacts you already have in your database,prevents duplicates before they enter, andmerges any duplicates that already exist.Cleansing standardizes data, such as titles andcompany names, and removes bad data, suchas contacts that are no longer with the company.Appending means filling in missing or incompletedata by adding additional contacts to an accountor filling in missing fields, such as phone numberor industry.Automated Sales Alerts and TasksThis is the ability to create tasks automaticallyand provide real-time sales alerts over email,RSS, or mobile device. It can be important toensure that Sales receives and acts on leadinformation in a timely fashion.Sales IntelligenceSales intelligence provides account executiveswith easy access to the key interesting momentsand prospect behaviors, so they can focus onthe hottest leads and opportunities—and know what the prospect wants to talkabout. Some solutions provide reps with drill-incapabilities to see which emails are opened andclicked, which web pages the prospect visits,and how the lead score changesover time.Sales CampaignsSome solutions allow Marketing to createcampaigns that Sales can add prospects into, oreven run targeted campaigns of their own.Revenue Cycle ModelingThis is the ability to define the stages for howleads flow through the revenue cycle, automatethe rules for how leads move from stage tostage, and to provide an easy-to-understandframework for the sales and marketing process.It provides the foundation for establishing clearrules governing how leads transition from onestage to the next and assigning Service LevelAgreements (SLAs) for lead responseand disposition.CRM Integration (Data Sync)Marketing automation solutions have varyinglevels of integration with CRM systems. Whilesome require manual mapping of fields, othersdo it automatically and maintain the connectionover time. Some sync information in nearreal-time; others less frequently. Some systemsprovide access primarily to lead and contactinformation; others give access to opportunityand custom objects as well. This is a particularlycomplex area with high variance amongsolutions, so it’s worth taking the time tounderstand your needs and yourvendor’s capabilities.Lead Lifecycle WorkflowsThis takes marketing automation beyond emailand web marketing, extending the workflowengine to integrate with the CRM system tocreate complete lead management workflows. Itincludes automated data field updates (e.g.update lead status based on changes to the leadscore); automated list management; and leadrouting / territory assignment rules. It also letsyou ensure sales follow-up by creating tasksdirectly in the CRM system, reassigning leads ifthey don’t follow-up, and converting hot leads toopportunities. And it supports lead recyclingprocesses, where sales leads are passed backto Marketing for further nurturing.
    • 41part four: common features in marketing automationmarketing programs/lead generationProgram ManagementManage marketing campaigns and programsacross multiple channels, including online ads,video campaigns, mobile, virtual events, andsocial media. Create and optimize programassets such as landing pages, emails,campaigns, and lists. Track program objectives,results, and costs to assess theprogram ROI.Event Marketing including WebinarsFrom attracting attendees to registrationadministration to post-event follow up, the eventmanagement lifecycle can be laborious. Eventmarketing capabilities streamline the entire eventprocess, including personalized invitations,registration, reminders, and post-event follow-up. They can also provide analytics, so knowhow many people have registered, how manyattended, and so on. For online events, somemarketing automation systems integrate withtools like Cisco WebEx®, Adobe Connect, CitrixGoToWebinar, ON24, and Readytalk tostreamline the process further.Believe it or not, marketing automation didnot originally provide capabilities for runningbroad marketing programs or generatingleads. As a result, many platforms do notprovide deep functionality in this area. Butsome vendors do, so once again, it’s worthunderstanding your requirements here.COMMON VARIANCE SOMETIMESCloningEach marketing program contains multipleemails, landing pages, campaigns, and lists,but many programs are similar in structure.The ability to clone an existing program can savesignificant time and resources, especially if yoursystem makes it easy to edit all programparameters in one place and automaticallyupdate all the underlying assets (e.g. emails).Program Import/ExportSome systems provide access to a sharedlibrary of pre-built verified programs and theability to exchange marketing programs withother users. This means you can take advantageof their best practices to jump-start yourimplementation and see results faster and withless effort.
    • 42part four: common features in marketing automationsocial marketingSocial Listening and TrackingMonitor what leads and contacts say on sitessuch as Facebook, Twitter, YouTube, LinkedIn,blogs, and online communities, and use thosesocial insights to segment prospects, triggercampaigns, change lead scores, and more.Social Sharing and CampaignsAdd intelligent share buttons to your campaignsand content so your audience can amplify yourmessage to drive broader reach – and then trackwho shares your content and drivesconversions. Most tools let you customize thedefault share message and image for eachshare; some provide triggered capabilities toprompt the share at the right time.Social CampaignsSchedule automated posts to one or more socialaccounts. Use or integrate with URL shorteningservices. Measure likes, comments, replies,retweets, etc.Marketing automation vendors have beenadding social functionality for the last fewyears, but each vendor offers a different setof functionalities – so take the time tounderstand what your vendor provides.Note: For much more on all aspects of socialmarketing, see the:Definitive Guide to Social Marketing.(www.marketo.com/DG2SM)COMMON VARIANCE SOMETIMESSocial ProfilesIncorporate social profile data to enhancesegmentation and scoring, including name,location, and description – as well as a history ofsocial sharing activity.Social Engagement and PromotionSocial applications such as polls, sweepstakes,and referral programs can enhance audienceengagement and encourage people to amplifyyour message. Some tools let you easily createand include such social content on your website,landing pages, Facebook pages, and emails sothat you can tap into your customers’ andprospects’ social networks.Social AnalyticsBy adding tracking to social sharing applications,you get insight into who shares your content,your social conversion rates, how much “sociallift” you are getting from your campaigns, andhow social impacts your bottom line.
    • 43part four: common features in marketing automationanalyticsWeb AnalyticsThis capability tells you why prospects visit yoursite, which pages they visit, and how often theycome back. It can even tell you who visits yoursite when visitors aren’t in your database, thanksto anonymous company lookup, and can senddaily alerts to sales reps so they know whichcompanies are interested. When prospects doregister, you also have the complete history oftheir prior web activity as part of their recordand lead score.SEO/Keyword AnalyticsMonitor and track how you rank for relevantkeywords on major search engines and compareyour overall performance to competitors.Basic ReportingThe ability to access pre-built and build customreports and dashboards to measure leads bysource/campaign/month, email performance,landing page performance, web activity, and soon. Systems vary in report depth, such as theability to use custom metrics and queries. Somesystems let you create report subscriptions thatautomatically send updates to your teamand executives.Reporting and analytics reside at theintersection of marketing art and marketingscience. They give you the ability to provethe impact of your marketing efforts. Allvendors provide some level of marketingmeasurement and analytics, but the depthof functionality – especially in terms ofmeasuring impact on revenue and ROI– varies greatly, from extremely basic toextremely deep.COMMON VARIANCE SOMETIMESMulti-Touch Revenue AttributionCustomers do not purchase your productbecause of just one campaign. Rather,marketing usually impacts a sale multiple timesacross multiple people. Multi-touch attribution isthe ability to allocate credit (pipeline, revenue)among all the marketing activities that havesuccessfully touched a sale as it moves throughthe revenue process. Some systems alsoprovide a visual way to see all the marketingprograms and touches that influence thecontacts associated with a sale as it movesthrough the funnel.Program ROI AnalyticsThis is the ability to measure and comparerevenue performance by channel or programalong metrics like revenue, pipeline, investment,ROI, prospects generated, etc. As a result, youcan see which marketing investments generatethe greatest return, and get visibility into how themarketing budget should be allocatedgoing forward.Revenue Cycle MetricsThese metrics analyze how leads flow througheach stage of the revenue process, fromanonymous to customer and beyond, soMarketing and Sales can adjust businessprocesses to increase pipeline and revenue. Keyperformance metrics for each stage can includebalance, flow, conversion rate, and velocity.
    • 44part four: common features in marketing automationresource managementSome marketing automation systemsinclude functionality for marketingresource management, helping tocoordinate internal processes andincrease marketing efficiency.COMMON VARIANCE SOMETIMESBudgetingThis can cover all aspects of managing marketinginvestments, including assigning top-down budgetsto various groups and divisions, planning marketingspend across programs, tracking open-to-spend,ensuring budget compliance, coordinatingworkflows and permissions, and reconciling planswith actual invoices.CalendaringIt can be tedious to maintain a marketing calendaracross multiple groups and to communicate thecalendar and activities to interested groups, such asSales. This functionality is about managing thecalendar for the entire marketing department, frompromotions to content to PR and so on.
    • 45part four: common features in marketing automationinfrastructureUser Roles and PermissionsAssign permissions that align with specificpieces of functionality or tasks. Example userroles include a role that gives the ability to createbut not approve landing pages or emails, and arole that can create but not activate a campaign.Secure Partitions / WorkspacesThis is the ability to give users access to onlyspecified lead partitions and assets (e.g.campaigns, landing pages, emails, reports). Thislets you create different organizational views thatalign with how your organization is structured, sodifferent groups can use the system without riskof interfering with each other – while stillsupporting sharing as appropriate acrossfunctions and the demand center.Larger enterprises and more complexorganizations may have needs for additionalinfrastructure capabilities such as securityand integration.COMMON VARIANCE SOMETIMESSandboxA sandbox is a testing environment that isolatesuntested changes and outright experimentationfrom the production environment. This lets theenterprise test out changes to the productionsystem with less risk.API/IntegrationsAn application programming interface (API) is aspecification that tells other systems how to callinto the marketing automation platform to getdata or perform an action. Other integrationsallow the marketing automation system to triggeractions in other systems. In both cases, it allowsthe platform to interoperate with the othersystems in the enterprise.EcosystemAn ecosystem is a complementary set ofsolutions that amplify the power of the underlyingplatform. A strong ecosystem can help ensurethat your needs will continue to be met even asyou require additional capabilities.
    • 46part four: common features in marketing automationAdvanced functionsAs mentioned directly above (and noted by the word “variance”), functionalities for unique marketingautomation categories may vary significantly across vendors. For example, two vendors may have CRMintegration, but differ greatly in the level of depth and quality that they offer.To streamline your evaluation process,here are some key capabilities you may notfind in all systems. While the list isn’tcomprehensive, it will give you a sense ofwhat you may want to look for.Usability / Speed• An auto complete feature—to suggest campaigns andfield names when you enterspecific values.• The ability to clone an entiremarketing program—whilekeeping multiple emails, landingpages, links, and segments intact.• Tokens—that let you input yourevent location, date, and timeonce, and then auto-populate thefields into every relevant email andlanding page associated withthe event.• A pre-built library of bestpractice marketingprograms—including email andlanding page templates, events likewebinars and tradeshows, andlead scoring and nurturingworkflows. This library should beincluded inside the application.Email and Online Marketing• A/B testing—so you can quicklyand easily set up A/B testing formultiple landing pages or emails.• Dynamic content—that containstext, graphics, or HTML, and canbe personalized in a landing pageor email, based on behavioral anddemographic segmentation.• Progressive profiling—to easilycreate dynamic forms thatrecognize known visitors, pre-populate any existing fields, andgather additional information tocomplete lead records.• Hidden form field population—based on a URL parameter or acookie without custom code. Forexample, you might capture thelead source and search keywordas a hidden field.Social• Facebook registration pagepublication—to improve yourlead registration programs’EdgeRank inside Facebook.• Social campaigns—includingpolls and voting, referral programsand sweepstakes. For example,you might reward $100 to thosewho refer three friends to an event,or enter a user to win an iPad ifthey share the content you create.
    • 47part four: common features in marketing automationAdvanced functionsLead Management• Real-time, behavior-basedtrigger responses—based onreal-time behaviors, not just pre-setschedules. For example, if yourcustomer visits a key webpagetwice in one week, you might sendhim a special offer and alert thesales team immediately.• Advanced segmentation—combine real-time triggers,demographic fields, and behavioralattributes in a single list.• IP lookup—by inferred companyand geocoding by zip code, state,region, and so on.• Multiple lead scoring models—to track interest and engagement formultiple products or businesses.• Separate lead scores for leaddemographics and behaviors—according to the MarketoBenchmark on RevenuePerformance, companies thatimplement this kind of lead scoringenjoy 23% better sales productivityand a staggering 33% higherrevenue growth than companiesthat only use demographic scoring.• Decay score—based oninactivity, sales recycling, orother behavioral triggers.CRM integration• Sales campaigns—whichempower sales reps to sendtrackable marketing automationemails and add contacts tocampaigns from inside your CRM.• Advanced data sync—offers theability to immediately synchronizeyour marketing database withCRM opportunities, activities,campaigns, and custom objectinformation. Also makes thosefields available for segmentation,scoring, and reporting.• Self-healing schema—identifiesand syncs changes to specificCRM fields, such as new fieldnames or values, andautomatically adds newcustom fields.• Data triggers—used to activatemarketing workflows in real-timebased on data changes inopportunities and custom objectsin your CRM.Other• Work groups—to define groupsof leads, campaigns, and assetsthat are only accessible forMarketing purposes by certainspecified users.• Role-based access—that allowsonly certain functions for certainusers. For example, you mightrequire manager approval for newcampaigns, or limit access forcustomers and third party users.• Technical—to ensure systemuptime and email deliverability.downloadfull RFPtemplate(www.marketo.com/RFP)
    • 48Case study:ringcentralChallengesRingCentral is a leading provider of cloudbusiness phone systems designed fortoday’s mobile and distributedworkforce. For years, the companyoperated purely on an e-commerce,self-service sales model.To support the company’s growth,multiple sales channels were developedand marketing outreach initiativesevolved to include emailcommunications, landing pages,webinars, demos, advertising and socialmedia. However, while the marketingoutreach was forging ahead, themarketing and sales teams lacked theability to reach, engage and createmeaningful dialogues with prospectivecustomers as well as with the existingclient base.The problem was exacerbated due tothe massive business customer base ofover 280,000 companies and thousandsof leads. Armed with only a mix ofhomegrown marketing tools, thecompany recognized the need to find acomprehensive marketingautomation solution.SolutionWith limited marketing resources,RingCentral knew the task of reachingout and engaging with their hugecustomer and lead database was amajor undertaking. They needed asolution that could provide scalabilitywithout having relying on IT to managethe marketing system.Social has also been a core part of theRingCentral’s product and marketingplatform. Further, the company realizedthat traditional marketing methods donot work for everyone. Thus, socialintegration was a key factor in thedecision to select Marketo.Marketo’s B2B social marketingintegration leverages sharing behavior,not only increasing the reach and impactof marketing messages, but enabling thecompany to close more business.Highlights• 12% increase in revenues throughnurturing programs• 42% increase in revenues viaemail prospecting• Over 2,000 leads converted tosales opportunities• Amplified social marketing programsBenefitsWith Marketo, RingCentral has beenable to develop a comprehensivedemand generation and sales funnelthat captures, educates, and qualifiesleads and efficiently advances themthrough to close. As a result, RingCentralhas been able to accelerate the salesprocess, generate higher revenues,convert more leads to sales, increaseupsell opportunities, and improvesales efficiency.These benefits equate to tangible resultsthat include a 12% increase in revenuesthrough nurturing programs, a 42%increase in revenues based on improvedemail prospecting, and over 2,000 leadsconverted to sales opportunities usingMarketo Sales Insight.RingCentral also launched a Facebookpoll on their customers’ views of the2012 election using Marketo’s socialmarketing technology. This singlecampaign resulted in 1,300 surveyrespondents, 28% sharing the pollsocially, and 189,000 social impressions.12%increased revenuefrom nurturing programs42%increased revenuefrom email prospecting
    • 49Thought leader Snapshot:carlos hidalgo, ceo & principaladam needles, Chief Strategy officerThe annuitasCarlos Hidalgo is the CEO and Principal ofANNUITAS, a demand generation firm thathelps B2B marketing and sales leaders atenterprise organizations TranformDemand. As CEO of ANNUITAS, Carlosdrives strategy and leads ANNUITAS corepractice teams to Transform DemandSMforclients. Most recently, Carlos was namedone of the 50 Most Influential People inSales Lead Management for the fourthyear and was named as a Who’s Who inBtoB Marketing in 2011.Adam B. Needles is the Chief StrategyOfficer and Principal of ANNUITAS.Needles is a passionate B2B marketingchange agent — helping ANNUITASclients build successful, modern, buyer-centric demand generation programs andtransform their lead-to-revenue DemandProcesses. He is the author of Balancingthe Demand Equation: The Elements of aSuccessful, Modern B2B DemandGeneration Model – a book written forB2B marketing leaders.Marketo interview with Carlos Hidalgo & Adam NeedlesMKTO: What do you think the future ofmarketing automation will look like in thenext few years?CH: I believe that over the next few yearswe will continue to see more consolidationin the space by technology vendorsfocused on delivering a more complete,end-to-end solution to marketers for trulystrategic demand generation.I also see automation expanding into awider array of industries in the comingyears. Manufacturing and B2B financialservices are great examples of industriesthat are beginning to wake-up to thebenefits that marketing automation canbring as they seek to better align with theircustomers. I think this is only a sign ofgood things to come for this space asa whole.AN: I’d echo Carlos’ comments about thevertical focus becoming an important partof marketing automation in 2013. Taking astrategic approach to demand issomething that is taking hold in B2Bmarketing and sales teams at enterpriseorganizations across industries. It’sincumbent upon both marketingautomation vendors and their partners tocollaborate to develop more tailoredapproaches to these industries.MKTO: What are the most importantthings to look for in a marketing automationvendor?CH: There are quite a few importantaspects, but I will cover a few that somefolks may not have considered beyondthe traditional checks of support, trainingand pricing.When searching for a vendor I think it isimportant that you partner with someonewho understands the new B2B marketingchallenges and more importantly, the newB2B buyer landscape.If the vendor issimply going todiscuss all of theirfeatures andfunctions, that is awarning signal. Make sure they are able toarticulate how those features andfunctions are going to better equipmarketers to improve their buyerengagement and sales enablement.An organization should be looking for avendor that can provide the necessaryguidance on how to best use their solutionto advance and mature their marketingapproach. One good way to measure thisis to go and read some of their thoughtleadership pieces. Are they truly thoughtleadership or veiled sales pitches?
    • 50MKTO: What should you focus onwhen selling marketing automation to yourexecutive team? What are some thingsthat might resonate with a CEO, CFO,or Sales?CH: The focus here is outcomes – how willthis automation solution help drive betteroverall business outcomes? If the CMOand their staff can clearly articulate this,then they will be well on their way.When discussing outcomes, rememberthis is not showing increased clicks, opensand impressions. The outcomes we arediscussing are positive impact to pipeline,improved lead conversions by stage,overall impact to revenue, ability to betterenable Sales and help them achievequota. All things that lead to increasedrevenues.When you make it simply aboutmarketing, it loses quite a bit of luster andmay be perceived as lacking substancefrom an executive point of view.AN: To me, the sales leadership must bebought in. They know how to design,deliver and repeat interactions withbuyers to convert them to revenue.They must understand that successfulmarketing automation drives perpetualdemand generation that – upstream ofsales interactions – really is just acontinuation of what sales willdo downstream.Thought leader Snapshot:carlos hidalgo, ceo & principaladam needles, Chief Strategy officerThe annuitasWhen they see this and realize thealignment it can bring betweenmarketing and sales to deliver revenue,it becomes a powerful valueproposition. And, honestly, whilemarketers have to fight for budget,sales leaders can move mountains(successfully) if they think it will increaserevenues. Bottom line, make sureSales is behind your purchase ofmarketing automation.
    • part fivebusiness case formarketing automation
    • 52When discussing marketing automation’s ROI potential, nothing is more convincing than cold, hard data.part five: business case for marketing automationROI researchHere are some of Nucleus Research’sfindings on the effectiveness ofmarketing automation:• By instituting marketing automationcapabilities, companies can expect toachieve an increase in marketing staffproductivity between 1.5 and 6.9percent. The biggest boost, of course,will come to companies transitioningfrom a labor-intense manualmarketing system.• Enabling marketing automation canreduce administrative overhead to asavings of 3.4 percent (on average),with most companies saving between1.5 and 5.2 percent.• Sales productivity can be expected toincrease by an average of 4 percent,with two-thirds of companiesexperiencing sales force productivitygains between 1.6 and 6.4 percent.Source: Nucleus Research
    • 53part five: business case for marketing automationROI researchWith marketing automation, companies canexpect three core benefits: more pipeline, moreproductive Sales reps, and higher revenue.Here’s another benchmark analysis done byMarketo which tells essentially the same story:The Lenskold Group conducted a study in 2012 onGeneration Marketing Effectiveness. Their resultsshowed that companies using marketingautomation report faster growth than ones thatdon’t. Here is a visual:Source: Marketo Benchmark on Revenue Performance as a Sept 15, 2012 (N=489) Source: The Lenskold Group 2012 Lead Generation Marketing Effectiveness Study% Pipeline Sourcedfrom Marketing% Sales TimeSpent Selling% Revenue PlanAttainmentIntegratedMarketing AutomationNo MarketingAutomation45%45%Better22%Better25%Better62% 84% 66%26%8%50%38%12%31% 51% 67%Marketing Automation Users Non-Marketing Automation Users Greater GrowthSame GrowthSlower Growth20%40%60%80%100%
    • 54part five: business case for marketing automationcontextIn fact, the majority of companies see ROI fromusing marketing automation within a year,according to this Focus Research Study:Source: Focus Research Study: Marketing Automation, March 20111+ Years7-12 Months2-6 Months≤ 1 Month12%32% 32%24%Time to Marketo Automation ROI
    • 55part five: business case for marketing automationThe return on marketingautomation: core business case1. Save Money and TimeIf you can build your business case formarketing automation on its ability tosave you time and money, that’sgenerally the best way to get CFOsignoff. Here are three bulletproof waysto save your company money withmarketing automation:• Less Human Resources —Modern relationship marketingrequires you to interact withcustomers in a modern way. Forexample, say you want the ability tofollow up on marketing emails bysending different emails to thosewho responded and those whodidn’t. Without marketingautomation, that means a lot ofThere are three core benefits to marketing automation.1. Save time and money2. Measure and optimize marketing investments3. Faster revenue growthoverhead in terms of hiring humans todo the work manually. By investing inthe technology to automate theseprocesses, companies are able toreduce the campaign managementbudget by 80%.• D.I.Y. Marketing — Marketingautomation saves time and money byallowing companies to D.I.Y. (Do ItYourself). Instead of outsourcingthings like landing pages to expensivedesign firms, marketing automationtechnology gives the ability buildmarketing campaigns in-house. Notonly does this save money, but it alsosaves time and makes a companymore agile.“By using advanced marketingautomation and analyticssoftware, marketers arestrengthening their agilityand increasing their offensivecapabilities to grow revenuemore consistentlyand profitably.”– Phil Fernandez,Marketo CEO• Simplifying Approval andCompliance — Marketingautomation saves time and money bysimplifying approval and complianceprocesses. Especially for largecompanies or those in highlyregulated industries, sending amarketing campaign might requiremany levels of sign-off. Marketingautomation simplifies andstandardizes this process, andmeans fewer spreadsheets totrack and update.
    • 56part five: business case for marketing automationThe return on marketingautomation: core business case2. Measure and Optimize Marketing InvestmentsIn today’s world it’s important to be ableto measure Marketing under pressureand prove that it can deliver. Executiveteams are eager for analytics, andcampaigns like pay-per-click are provingthat Marketing can (and should) bemeasurable.Marketing automation helps measure andoptimize your marketing investments infour ways:• A system of record — Marketingautomation provides the core systemof record for all your marketinginformation. If you don’t have asystem of record for your marketingefforts, you can’t measure.• Measure and test — The ability torun tests (this landing page vs. thatlanding page; this offer vs. that offer)helps your company learn whatworks over time, which ultimatelygives you better optimization andmore revenue.“Today’s marketers need tospeak the language that theirCEO and CFO can relate toand understand. Gone are thedays where marketers talkabout website hits andFacebook likes. Today’smarketers need to ensure thatthey have both pipeline andrevenue targets.”– Will Scully-Power,Managing Directorof Datarati• Prove program ROI — What is thespecific amount of revenue generationfrom a marketing program? How canthe results be compared? Marketingautomation dials into which marketingcampaigns are directly affectingrevenue. Thus, you can spendyour money where it’s provento work best.• Funnel impact — How does yourfunnel work? What is your conversationrate from a name into a lead? From anopportunity to a close? Marketingautomation will help you understandhow leads are moving through yourfunnel and help you make forecastsaround the nuances of the impactmarketing has on revenue.Gleaning all of this information about yourmarketing efforts allows your company tooptimize its marketing decisions to directlyimpact revenue growth.
    • 57part five: business case for marketing automationThe return on marketingautomation: core business case3. Faster Revenue GrowthMarketing automation drives revenue byhelping you:• Focus on the right customers.• Develop relationships before theyare ready to make a purchase.• Engage at the right time.• Scale personalized interactionswith each customer.5 Key Metrics to Measure Marketing Autmation Success1. Conversion rate of new names intomarketing qualified leads2. Number of marketing qualified leads3. Win rate on marketing qualified leads4. Percentage of pipeline sourcedby Marketing5. Investment per marketing-sourcedcustomer (acquisition cost)• Engage in personalized andinteractive multi-channel dialogueswith their prospects and customers.• Capture data about, analyze andrespond to consumer behavior bothonline and offline.• Closely integrate marketing activitiesand information with other parts of theorganization, such as sales or callcenters, to create a seamlessexperience for buyers.The result is deep, long-lastingrelationships that increase customerlifetime value.Read-on to learn how to quantify these benefits.Post-SaleAfter the purchase, marketing automation letscompanies more effectively and efficiently buildand retain long-term customer relationships. Itdoes this by enabling companies to:
    • 58part five: business case for marketing automationThe return on marketingautomation: core business caseThe ChallengeIt can be dizzying for marketing executivesto juggle the complex array of programsand activities needed to reach targetcustomers across a broad range of onlineand offline channels—from social mediaand other web channels, to email, directmail, events, and more. And they mustconstantly adapt these campaigns basedon new insights, competitor moves, newtechnologies, and so on.Still, research from theMassachusetts Institute ofTechnology (MIT) shows agile firmsgrow revenue 37% faster than non-agile companies.The SolutionTo succeed and win in this highly complexand lightning-fast business environment,marketers must possess a high level ofagility—that is, they must have the ability toquickly optimize marketing activities basedon changes in market conditions orcustomer preferences and behavior. Thismeans marketers must always test and trynew things, and respond with nimbleness,control, and finesse.Putting It to PracticeMarketers lay the foundation formarketing agility by:1. Gathering in-depth information oncustomer preferences and behavior2. Quickly creating new campaigns andadapting existing onesAs such, platforms that automatemarketing processes can be an essentialtool for the agile marketer, because theirmarketing databases offer you a singleview of your customer.Visio-style flow charts crumble in the faceof these complex needs, no matter hownice they look during a demo. It can bevery difficult to edit the spaghetti ofconnected steps. Instead, look for modularuser interfaces that are based on triggers,listening to customers and respondingwith the appropriate actions. They not onlyoffer easy-to-use interfaces, but also areeasier to evolve and maintain over time.Marketing Agility
    • 59part five: business case for marketing automationimpact of maturity onrevenue growthHow can you create a quantitative businesscase for faster revenue growth? It dependson how well you use the system to modifyyour revenue processes.The Marketo Benchmark on RevenuePerformance identified four levels of maturity:RevenueperformanceManagementtraditionalmarketingdemandgenerationintegratedpipeline30%43%18% 9%• Coordinated, optimized,multi-channel campaigns• Single revenue team(Marketing and Sales)• Sophisticated leadmanagement across therevenue cycle• Disciplined multi-touchROI measurement• More sophisticatedsegmentation• Lead nurturing and scoring• Integrated marketing and sales processes• ROI and revenue impact measurement• Manual campaigns• Basic lead management• Sales and Marketingremain in silos• Operational marketingmetrics only• Low targeting• Immature sales andmarketing alignment• Limited marketing ROI measurementFour levels of marketing automation maturity, and what percentage of companies are at each level.
    • 60part five: business case for marketing automationimpact of maturity onrevenue growthThe Benchmark study found that your company’s levelof maturity significantly impacts its results and ROI frommarketing automation.In fact, the most mature users of marketing automationachieve 32% greater revenue than averagecompanies—and a whopping 79% more than theleast mature companies.% Revenue Plan AttainmentBenchmark research also showed that conversionrates improve as maturity increases throughout therevenue cycle.RevenueperformanceManagementtraditionalmarketingdemandgenerationintegratedpipelineSource: Marketo Benchmark on Revenue Performance as of Sept 15, 2012 Source: Marketo Benchmark on Revenue Performance as of Sept 15, 2012TraditionalMarketingDemandGenerationIntegratedPipelineRevenuePerformanceManagementMQL = Marketing Qualified Lead(ready to call)SQL = Sales Qualified Lead(engaged in active opportunity)20%40%60%80%100%101%81%74%56%Name to MQL: 11%MQL to SQL: 20%SQL to Win: 21%1 in 221Name to MQL: 28%MQL to SQL: 25%SQL to Win: 22%1 in 66Name to MQL: 24%MQL to SQL: 30%SQL to Win: 27%1 in 53Name to MQL: 33%MQL to SQL: 38%SQL to Win: 39%1 in 20
    • 61part five: business case for marketing automationbringing it togetherThe key steps are:1. Gather your baseline revenue metrics suchas annual revenue, gross margin, numberof annual deals, and average deal size.2. Establish your baseline conversion rates forName to MQL, MQL to SQL, and SQL towin3. Estimate how marketing automation willimprove your marketing maturity andtherefore your conversion rates4. Calculate how improved conversion rateswill translate into improved lead flow, wins,and ultimately revenueYou can access an ROI calculator atwww.marketo.com/marketing-automation,or if you’d like more support, contactsales@marketo.com and we can work withyou to build a detailed business case as shown.Now it’s time to combine the improvement in marketing maturity and assumed changes in conversion ratesto estimate how your organization could improve deal flow and revenue using marketing automation.
    • 62part five: business case for marketing automationInvestment and CostsWhile yesterday’s legacy, on-premisesolutions were sold as software licenses,most modern marketing automationplatforms are delivered via SaaS asrecurring subscriptions. Available on amonthly, quarterly or annual basis,subscriptions can start as low as $1,000and scale up to six figures per month.Many vendors provide discounts for theannual commitments.Once you estimate the returns from marketing automation, you need to developthe other side of the business case by understanding the investment required.The main factors that drive the cost ofyour subscription are:1. The number of leads andcontacts in your marketingdatabase. This includes those forwhom you have contactinformation, such as email address,postal address, or phone number.2. The functionality in eachedition. Many vendors providedifferent editions of their solutions;for example, an edition to facilitatelower-cost entry and others withmore powerful, higher-endfunctionality. For example, Marketoprovides a Spark edition, which isoptimized for small businesses andfirst-time marketing automationusers; a Standard edition that addsmore capabilities that areappropriate for most companies;and a Select edition for companieswith highly sophisticatedmarketing requirements.Most solutions do not typically chargefor each marketing user, and provideaccess for an unlimited number ofemails (within reason). Many vendorsalso have an additional per-seat chargefor named Sales users to get insightand action inside the CRM system.For sample pricing, seewww.marketo.com/pricing.Marketing Automation as a Percentage of BudgetOn average, large technology companies reportthat marketing automation accounts for 3.1% oftheir programs budget, and 1.6% of staffallocations, according to IDC’s 2013 MarketingPlanner. Meanwhile, MarketingSherpa’s 2012Marketing Benchmark indicates that companiesspend an average of 7% of their overall budgetson marketing automation.(Note: MarketingSherpa reports a largerpercentage because it surveys smallercompanies across more industries than IDC.)
    • 63part five: business case for marketing automationInvestment and CostsOther Investment FactorsMost marketing automation vendors offeradd-ons to their basic softwaresubscriptions—including new-customerenablement, premium support packages,consulting services and instructor-lededucation and training. The purpose is toaccelerate ROI and time to value, andcosts tend not to exceed 20% of thesoftware subscription.Moreover, the best results come fromlooking beyond only the software. Youshould also look at the end-to-endprocess to make sure you have all theingredients for success.Here are some questions to ask:1. Do I generate enough leads?2. Do I have enough content?3. Do I need to modify my end-to-endbusiness revenue process and/orimprove marketing-sales alignment?4. Do I have the right skills on staff?Depending on the complexity of thevendor you select, your marketingautomation maturity, and ROI goals, youmay need to look at additionalinvestments in these areas. (See Part Sixfor a deeper-dive into non-technologyinvestments required for marketingautomation success.)Time to ValueAs a metric, Time to Value—the span of timebetween a project’s start and when theoperational system delivers value—can be asimportant as Return on Investment. Noexecutive wants to wait long to get results.Nobody wants to explain why all those“promised benefits” have yet to arrive.The critical concept here is the time topayback—when cumulative benefits exceedcumulative costs. Make sure you ask yourmarketing automation vendor how longimplementation and ramp-up will take, as well ashow quickly you can expect to see value.
    • 64When you’re trying to gain internal supportfor a marketing automation purchase,position it based on the problems that youroverall business has now, and how thatimpacts every individual. Otherwise, yourorganization won’t see your business caseas a priority for the current moment.Your ability to deliver a compellingbusiness case for marketing automationhinges on how well you structure yourargument to resolve the chief challengesand priorities of your audience.No matter which executive you want toconvince, make sure to manageexpectations about the time to value andeffort required. Don’t overpromise andunder-deliver. Marketing automation is notsomething you just turn on and see instantresults. Getting value takes time and effort.As you invest more, you’ll start to crawl,then walk, then run. Your peers willappreciate and respect your pragmatic,level-headed approach.part five: business case for marketing automationselling marketingautomation internallySometimes, your executive team won’t immediately see the value of a marketing automation investment. To convincethem, you’ll need to understand their priorities—and what challenges stand in their way. Then, you can connect thedots for them and position marketing automation to address their specific concerns.“Every business has problems. Yourbusiness has unique problems to it, and youhave a different sense of priorities of howyou’re going to address those problems.Start with the headache that your CMO hasevery night when she goes home and istrying to figure out how to fix it. Start withwhat the CEO announced during yourcompany’s annual meeting and said are hisor her priorities.”– Steve Gershik,Demand Generation Expert &VP Marketing, StackMob
    • 65Does Marketing Lack Credibility?80% of CEOs admit they do not really trustand are not very impressed by the workdone by Marketers, according to TheFournaise Marketing Group. Andaccording to the VisionEdge Marketingand Marketo 2010 Marketing PerformanceMeasurement and Management Survey,more than 2/3 of CEOs give theirmarketing departments a B or C grade.Marketing is too often perceived as an artsand crafts function that throws parties andcreates color brochures. At a minimum,many execs think of it as a cost center, nota revenue-driving department.part five: business case for marketing automationselling marketingautomation internallyMany executives are loath to invest moreresources into a cost-center. Whyautomate marketing processes, theyask, if it will just produce mediocreresults faster?Needless to say, you’ll need to addresssome of these perceptions head-onwhen making the case formarketing automation.“Marketing is a highly creative endeavor. It requiresthinking and planning. And it touches people…creative marketing people, salespeople, and mostimportantly, customers. So marketing automation isbest done in a way that doesn’t stifle creativity, doesn’tcreate a burden for your salespeople, and doesn’toffend your customers.” – Joe Martinico, Editor, marketingautomation.com
    • 66Five Tips for Selling MarketingAutomation Internally, according toCarlos Hidalgo of ANNUITAS1. Seek to understandmanagement’s objectives.Understanding their collective andindividual goals will help you presenta case that meets their felt needs.2. Create a financial case that linesup with their objectives. The keyis to work backwards from the mainobjectives that your executive teamholds dear. If revenue is the mainobjective, make your case basedon revenue.part five: business case for marketing automationselling marketingautomation internally3. Discuss, don’t present. Startby asking questions that seek tounderstand what they are looking toachieve. Then transition by saying,“If I could show you how to meetthose objectives efficiently andeffectively, would you be interestedin learning more?”4. Support your case with real lifecase studies. This will help youanswer the potential question, “Thisall sounds good in theory. How doyou know it will work?”5. Be ready if they say yes. Have your high level plan ready,an overview of the next steps,timeframes, and required resources.
    • 67Chief Concerns:• Drive customer intimacy• Measure and prove marketing ROI• Build alignment with Sales• Improve Marketing credibilityin the organization• Manage and leverage growingcomplexity of changing buyerbehaviors, channels and technologiesChief Concerns:• Grow revenue and “makingthe number”• Manage costs, meet shareholderexpectations for profitability• Attract and retain talent• Innovate and out-executethe competition• Build and align the organization,enhancing collaboration• Manage riskConnect the Dots:• Highlight marketing automation’sability to measure the ROI ofindividual programs, show howMarketing impacts revenue, andsubstantiate budget requests.• Reduce the threat of increasingcomplexity by positioningmarketing automation as the keyto improving Marketing’s abilityto adapt to changes and testinnovative strategies.• Discuss marketing automation as akey function for bringing Marketingand Sales into better alignment.What CMO doesn’t want to hearpraises, not complaints, from thehead of sales?• Rally support from the rest of theexecutive team, so the CMOperceives an investment inmarketing automation as a low-risk decision. This will protecthis/her credibility.Connect the Dots• Contextualize marketingautomation as the key to businessgrowth. Position it as a solution toenhance sales effectiveness andget more from every sales person.Instead of talking about marketingautomation, refer to RevenuePerformance Management (RPM),the modern strategy that spansMarketing and Sales to optimizeinteractions with buyers across theentire revenue cycle andaccelerate predictable businessgrowth. (Refer to Section 3 for adescription of RPM.)• Talk about the predictedperformance improvements thatyou’ll gain from knowing preciselywhich marketing programs driverevenue, which waste it, and howto optimize Marketing’s spend.part five: business case for marketing automationHow to position marketingautomation for each executiveCMO CEO
    • 68Chief Concerns:• Make quota• Get an accurate forecast• Beat the competition• Expand market share• Make customers successful• Develop the teamConnect the Dots:• Show how the Sales department isoften the primary beneficiary of amarketing automation investment.• Tell Sales it can expect morehigh-quality, “win-ready” leads,along with greater insights for Salesreps to use for prioritizing their timeon the right leads and opportunities.• Discuss plans for marketingautomation-powered lead scoring,which can result in fewer overallleads passed to Sales. This is agood thing because it means fewerpoor-quality or premature leads willbe passed on. Instead, set theexpectation that Marketing willnurture relationships with leads thataren’t yet ready, so the sales teamdoesn’t have to.part five: business case for marketing automationHow to position marketingautomation for each executiveHead of Sales“Companies that implement lead scoring enjoy 28% better salesproductivity and 33% higher revenue growth than companies withoutlead scoring.”– Marketo Benchmark on Revenue Performance, 2012Example of how marketing automation helps Sales focus on the hottest leads and opportunities- Marketo Sales Insight.
    • 69Chief Concerns:• Manage expenses• Contain risk• Enable profitable growth• Plan for the futureChief Concerns:• Make investments that supportthe business• Manage security and risk• Innovate and evolve infrastructurefor the future—from mobile, social,SaaS, etc.• Control costsConnect the Dots:• Do the math. Present yourdeveloped business case. Don’tworry too much about the fact thatyou’re making estimates, providedthey’re clearly labeled. You’ll buildcredibility simply by walking in thedoor with a spreadsheet ofnumbers, showing you can speakthe CFO’s language.• Project the implications of havingthe ability to better measure whatyour organization gets for itsmarketing investments—namely,connecting Marketing’s spend torevenue, reducing waste, andoptimizing expenses.Connect the Dots• Project a reduced IT workload,since Marketing will be able tosafely take on some of the tasksthat previously required IT help,such as landing page creation.• Highlight the value of a morecohesive reporting environmentfrom data that’s integrated acrossformerly disparate systems (CRM,email, website, and social).Explain that marketingautomation can also improvedata integrity and quality.• Answer specific technicalquestions about security, datamanagement, integration, andother IT requirements bypartnering with yourproposed vendor.part five: business case for marketing automationHow to position marketingautomation for each executiveCFO CIO
    • 70Here are some common reasons why people may delay investing inmarketing automation, and how you can overcome them.part five: business case for marketing automationthe cost of delayingObjection Response“We have too manyimportant campaigns andevents coming up.”All the more reason to bring in marketing automation, since it canincrease the ROI of every other program you run. You need to beprepared to effectively nurture all the new names and leads about toenter your system. The longer you wait, the lower your chances are ofconverting these early-stage names into buyers.“We have to do somethingelse first—like finish ourwebsite, implement CRM,fix our data, etc.”Once these projects are done, there will always be more projects, andmore after that. In fact, the nature of marketing is such that you’realways doing something new. The good news is that marketingautomation platforms are built to adapt as you evolve. The sooner youinvest, the sooner you’ll learn how to incorporate its value into all ofyour programs – so you get more results from everything you do.“We lack the staff to run the programs.”It’s true that marketing automation doesn’t run itself. The more you putin, the more you get out. That said, you can hire consultants oragencies to help you get up and running. From there, many companiesfind they only need to spend a few hours a week—to run some reportsand tweak your campaigns and workflows—to get decent ROI.Of course, at this level of usage you won’t get the same ROI ashighly-sophisticated users, but you can certainly do better than youwould without marketing automation. And if you pick the right system,you can do more sophisticated work and get even more from thesystem as your staff grows in size and skill.“We don’t have enoughcontent in place.”Most companies don’t start with tons of content. What’s needed is aplan to create that content. For example, say you want to send outcontent every 3 weeks, and you have 4 pieces at the moment. Youhave 12 weeks to create something new. Simply commit to building anew piece of content every month. Re-use old blog posts. Dividenewsletters into bite-sized chunks. With this approach, you’ll growyour content library over time.In short, there’s never a perfect time to rollout new software or start a new project.Don’t let the delay go on too long. You’llalways be busy. Once you’ve determinedyou’ll benefit from the investment, thelonger you wait to implement marketingautomation, the longer you’ll wait to seeyour revenue move up and to the right.“Stop planning to get ready toset started, and get startedinstead. Then look forcontinuous improvementrather than perfection outof the gate.”– Mac McIntosh,Marketing AutomationExpert
    • 71Thought leader Snapshot:Howard sewell, President,spear marketing groupHoward J. Sewell is president of SpearMarketing Group and a B2B marketingveteran with more than two decades’experience in direct marketing, demandgeneration, and lead management.Marketo interview with Howard SewellMKTO: What are the most importantthings to look for in a marketingautomation vendor?HS: Here are the questions I’d ask:1. How many FT employees (orequivalents) am I going to needto manage the system?2. How easy is it to customize thesystem to our specific businessmodel and/or sales process?3. How easy is it to change ormodify programs if our salesprocess changes?4. How often do you releaseproduct enhancements?5. How quickly can I be upand running?MKTO: What do you think the future ofmarketing automation will look like in thenext few years?HS: I see marketing automation becominga more mission-critical piece of the ITlandscape. For example, look forintegration with other systems beyondCRM (e.g. Finance, ERP). Marketing isincreasingly ROI-driven, and marketingautomation can be not only the platform toprovide that measurement, but the enginethat drives company revenue. Technologythat was only recently regarded as “emailsoftware” is now becoming a vitalcomponent of a company’s sales andmarketing infrastructure.MKTO: What are the most importantthings you have to keep in mind in order tobe successful with marketing automation?HS: Have a plan! It sounds so basic, andyet it’s the primary reason why manycompanies don’t achieve the value theyshould from marketing automation. Sooften, new marketing automationcustomers have a pent-up demand forcampaigns, so they immediately launchinto a series of “one-off” programs andnever take the time to ask the question:what is it exactly that we want marketingautomation to do for us? My advice: don’tjust be a “campaign factory.” Have astrategy in place and orient your use of thetechnology (and the programs you design)towards specific sales, marketing, andbusiness goals.MKTO: What should you focus on whenselling marketing automation to yourexecutive team? What are some thingsthat might resonate with a CEO, CFO,or Sales?HS: Be wary of offering generic benefitslike “increased marketing ROI” or “shorterselling cycles.” Those benefits may belegitimate possibilities, but they carry lessweight when they could apply to anyorganization. Instead, identify the mostpressing sales and marketing challengesat your company, and speak to thosespecific issues. For example:• Increase the rate at which usersupgrade from our freemium version toa paid license• Increase the rate and volume ofqualified leads passed to field sales• Enhance our demand generationeffectiveness by optimizing programspend based on true ROI• Increase the number of pipelineopportunities by more effectivelymarketing to existing leads• Increase the efficiency andbandwidth of inside sales withoutadding headcount
    • part sixGetting Successful withmarketing automation -more than technology
    • 73Would you buy a Ferrari and then keep it in the garage? That’s what happens whencompanies purchase marketing automation without a strategy or plan for using it.part six: getting successful with marketing automation - more than technologygo beyond softwareWhile there are important differencesbetween marketing automationplatforms, success is often primarilydetermined by three things:1. Your strategy and process2. Your content and lead flow3. Your people “I’ve seen over and over where a companywill be unsuccessful with their marketingautomation strategy and they blame thetechnology; they blame the platform. Theysay, ‘Well, we need to switch to a newplatform because this just isn’t workingout.’ And in my observation, 9 times out of10, it’s not the technology’s fault; it’s thefact that the strategy, if it exists, is flawedand is not executed well.”– Matt Heinz,Marketing Automation ExpertWith limited investment in these areas, youcan usually get good (but not great) ROIfrom marketing automation. And as wesaw in Part Five, the more you invest, thehigher you move up the curve, and thebetter your return on investment.The key is to “think big, start small, andmove quickly”. In other words, the bestresults usually come from getting startedwith what you have today, and thenincrementally investing over time to moveup the curve.
    • 74As Bill Gates famously said, “The first rule of any technology used in a business is thatautomation applied to an efficient operation will magnify the efficiency. The second isthat automation applied to an inefficient operation will magnify the inefficiency.”part six: getting successful with marketing automation - more than technologystrategy and processDon’t just automate your old processeswhen you are introducing marketingautomation into your organization. Newtechnology requires new ways of doingthings. When it comes to automatingmarketing, the most important thing tounderstand is that you “still haveto think.”“Start with a process. Marketerstypically work off of intuition,but defining processes is criticalto successful marketingautomation strategies and helpsyou achieve quality,consistency, and collaboration.”– Eric Dukart, COO, SundogSome of the processes that your companyshould examine as it thinks aboutmarketing automation include:Sales and Marketing Alignment• What defines a sales-ready lead?• How does your lead qualificationteam prioritize their time?• How will you implement lead nurturingfor leads that are not yet ready?• How will you recycle sales leadsthat don’t move forward?• What service level agreements (SLAs)will you have for lead follow-up?Marketing automation can drive the mostresults when a company uses it as anopportunity to realign its entire revenueengine around the modern customer’snew buying cycle.Measurement and Metrics• What key metrics do you report on aweekly, monthly, and quarterly basis?• How do you measure campaign ROI?• What key performance indicators(KPIs) will you use to determine if yourrevenue processes are on track?With marketing automation, marketers canlook beyond traditional metrics (clicks,opens, etc.) and starting measuring (andforecasting) what executives really careabout: current and future pipeline,revenue, and profits.Data Quality• Do you have dirty data full ofduplicates and bad records?• Missing or incomplete data?• How will your data get cleansed – andmaintained – to ensure your marketingautomation doesn’t suffer from“garbage in, garbage out”?Quality data is an essentialunderpinning of any successfulmarketing automation implementation.
    • 75If marketing automation is the rocket, then content and lead flow are the fuel.Read on to learn how to fill your tank to full.part six: getting successful with marketing automation - more than technologyContent and lead generation“You have to remember you needcapabilities to manage the marketingautomation, which includes people andprocesses in addition to the technology.That is the key for success.”– Matt Johnson,VP Chief Strategy Officer, InnoveerContentHaving enough content is often the mostunderestimated challenge for successfulmarketing automation. Simply put,content is a must-have for consistentlead generation and nurturing. Ideally,this is based on a solid understanding ofyour buyer personas, so that yourcontent and messages resonate withyour audience. Without this, even themost finely crafted marketing automationprograms can fail to deliver results.Ask yourself:• Do you have a definedcontent calendar?• Do you have content for each stageof the buying process, by persona?If the answer is not yes, then you’ll needto make progress in this area, or risklimiting your long-term marketingautomation success.Lead FlowSome companies have too many leadsand need to score them before handingover only the highest-quality sales-readyleads. Other companies, especially newand small businesses, don’t have enoughleads. Marketing automation can helpleads flow through the funnel moreefficiently, and done right, it can nurtureleads to make them sales-ready. But if youhave nothing coming into the top of yourfunnel, you will have nothing to nurture.If you don’t have enough sales leads, put aplan in place to get more – with contentmarketing, social media, trade shows, andpromotions – anything that will help to getprospects into the top of your funnel.
    • 76Your internal employees as well as external service providersare the most critical aspects of success with your marketing platform.part six: getting successful with marketing automation - more than technologypeopleSome important skills for success are:• Business process design andimplementation. Can your teamenvision demand generation andlead-lifecycle processes that align totoday’s modern buyer? Can they workcross-functionality to implementacross the organization?• Analytics. Do you have someonewho can absorb, visualize, anddiscuss large amounts of data andcomplex concepts, and makedecisions to solve problems based onavailable information?• Technical aptitude. Marketing isincreasingly becoming a technicalprofession that includes proficiencywith technology solutions. Thisrepresents a huge shift in the jobdescription of a marketer, whichpreviously required little to notechnical abilities. Although today’smarketing automation platforms aremuch easier to use than previoussystems, users still need to becomfortable using technology. Basiclevels of technical acumen are a must;having a “marketing technologist”on staff is even better.You’ll need to evaluate the skills of yourteam. If you don’t have the right skillson-staff, you’ll need to augment yourcurrent staff with training, externalconsultants, and/or additional hires.“Success of marketing automation is not justabout the technology. That’s the easy part.This is all about change management andadjusting the way the company thinks aboutthe customer experience. It requires supportand alignment by key stakeholders, acommitment to developing better processes(not doing it the way they have always done itbut with automation) and defining clear usecases on what problems they want to solveand how they will use the technology to solvethe problem – this all drives marketingautomation adoption and success.”– Jeff Pedowitz, President and CEO,The Pedowitz Group
    • 77part six: getting successful with marketing automation - more than technologydream big. Start small.get fast wins. Build from there.All of the factors discussed here are criticalfor marketing automation success, butdon’t let not having all of them keep youfrom getting started.The best marketing automationimplementations adhere to the adage,“think big; start small; most quickly.”… If you dream big, you’ll positionyourself to achieve the grand—albeitgranularly articulated—vision of what youwant success to resemble. Depending onyour organization, this end goal may takethe form of a full RPM transformation. Itmight also be more modest.… If you start small, you won’t get stuckin analysis paralysis, or feel the need towait until all of your content is created. Youwon’t need to map out every singlecampaign, or get your website perfect.Slow and steady wins the race.… If you win small victories quickly,you’ll show results in a way that yourorganization values —whether it’s a newlead generation campaign or a basicsystem for lead scoring. These small winswill cultivate stakeholder buy-in acrossyour organization, and increase yourchances for success over the short andlong term.Overall, be realistic about whatresources you’ll require to achieve yourobjectives, but don’t let the “perfect bethe enemy of good.” Get started. Seevalue. Then, evolve.RevenueperformanceManagementMore Effort,great roisome Effort,good roitraditionalmarketingdemandgenerationintegratedpipeline
    • 78Thought leader Snapshot:david lewis, President & CEO,demandgen international, incDavid Lewis is an early pioneer in Internetmarketing, marketing automation, andCRM systems with over 22 years’experience in marketing and sellingtechnology. In 2007, David Lewis foundedDemandGen International, Inc. a globalconsulting firm helping companies deployand utilize marketing automation and CRMsystems. DemandGen has become thetrusted advisor to the world’s leadingmarketing and sales teams combiningsuperior service, business process, andtechnology expertise.Marketo interview with David LewisMKTO: What are the most importantthings you have to keep in mind in order tobe successful with marketing automation?DL: Three words: people,process, systems.People. Your organization must beculturally aligned, with the right leadersacross Sales and Marketing who viewmarketing and sales as one integratedprocess. Within your organization, youneed team members who are skilled inlead management and associatedsystems: such as marketing operationspeople with strong analytical sense, andtechnical resources on the marketing teamfar beyond the webmaster.Process. Prior to marketing automationalmost all campaigns were on the “oneand done” model: it was all about leadgeneration. Now Marketing is a formal,integrated, repeatable process: it’s aboutunderstanding your B2B buying process,and moving from static lead generationcampaigns into lead management in alogical, automated manner.Systems. Choosing the right systems foryour business is paramount—and everybusiness’ choices are unique. Select withcare, and keep integration top of mind. Theright marketing automation system for yourbusiness also needs to integrateseamlessly and completely with yourCRM, your website, and your othermarketing tools and systems such ascontent management, event marketing,and analytics platforms.MKTO: What are the most importantthings to look for in a marketingautomation vendor?DL: Customer base. A large andstrong base of customers that are “likeyou” is important to demonstrate that thevendor platform has broad appeal, andthat it has been significantly tested by awide range of customers using it fordifferent applications.CRM integration. Marketing automationis only half of the solution: CRM andmarketing automation together representa completely integrated sales andmarketing solution to the same data set.Keep in mind that the MA needs not onlyto integrate with the CRM you’re usingtoday, but also to provide the “hooks” intoany CRM you might use in the future. Besure to look at the add-ons that an MAoffers in terms of adding functionality tothe CRM.Commitment to innovation. Does theplatform keep getting new functionality ona regular basis that expands what itsoffering? Or is it trying to play catch-upwith other leading systems in terms ofease of use or functionality? If you choosea “catch-up” system, you might savesome money in the short term, but you’lllose in the long term: those systems willnever catch up to the others that alreadyprovide the functionality you’ll eventuallyneed, and you’ll have missedopportunities to use that functionality inthe meantime.Ease of use. Look not only at overallease of use, but at the consistency ofease of use across the application. Youwant to make sure that the solution iseasy to use not only in core areas likeemail and landing page development,but also in more sophisticated areassuch as lead scoring, nurturing programdesign, and reporting.Scalability. Your business will grow;will your marketing automation platformgrow with it? Make sure the system youbuy can handle the size of yourdatabase and volume of yourcampaigns now and into the future;how will performance be impacted ifyour business grows significantly?Pricing. Look for a pricing model thatsupports growth. Be sure the vendor’soverall pricing model will enable you togrow and be successful withoutpenalizing you with exorbitant fees.Ensure that the solution pricing modeland contract won’t result in you gettinga surcharge for achieving your plannedgrowth mid-contract.
    • Thought leader Snapshot:david lewis, President & CEO,demandgen international, inc79MKTO: What should you focus on whenselling marketing automation to yourexecutive team? What are some thingsthat might resonate with a CEO, CFO,or Sales?DL: Focus #1: You’ll get more doneand increase your output. When youthink about the shape of the demandfunnel, it’s widest at top and narrowest atbottom; yet the number of resources youhave to address demand are typically inan opposite ratio.Most companies have more salespeopleat the bottom where the funnel isnarrowest, and fewer marketers tosupport the top of the funnel. Thiscommon situation speaks to the need fora solution that can automate many of thetouch points throughout the demandfunnel. Such a solution allows you tofocus marketing resources on strategiesto create demand, while your marketingautomation system automates theprocess of converting this demand intoprospects for Sales.Focus #2: Factory thinking. Putting amarketing automation system in placeenables you to define your processes“from click to close,” establishing thetouch points needed to help prospectsbecome educated on and evaluate yourproduct. The experience of implementingmarketing automation forces yourorganization to think these processesthrough, which enables you to establishand automate them. This kind of “factorythinking” engenders higher and moreconsistent output.Focus #3: Marketing andSales alignment. Because thesesystems are used by both Sales andMarketing, the process of implementingand using your marketing automationsystem essentially forces these twogroups to become one integratedorganization with a tighter relationshipand better communication. In short,working together will produce betterresults for your company.
    • part sevenbuying marketing automation
    • 81So you’ve decided to buy marketing automation. Now you need to select the right solution.part seven: buying marketing automationpurchase processOf course, we think Marketo is almostalways the best solution—yes, we’rebiased. But here’s an unbiasedprocess you can follow to buy themarketing automation solution that isright for your company.Step #1: Write down your goals for the project. To get where you want togo, write it down. Statistically, youincrease your likelihood for successsimply by putting your goals on paper.Hard metrics may include:• More leads and/or betterquality leads• Improved conversion rates• Reduced acquisition cost perMarketing-sourced lead, opportunity,or customerSoft metrics may include:• Improved Sales-Marketing alignment• Better visibility into Marketing ROI• Increased speed and agility to launchnew campaigns and landing pages• Reduced time to pull reportsStep #2: Plan your timeline. Now, identify thesteps you’ll take to get where you want togo. Remember, you aren’t ever “done”with marketing automation, so build timeto evolve and adapt and learn intoyour process.Ask yourself, “When do I want to…”• Start the selection process?• Have detailed vendor presentationsand demos?• Make my final decision?• Start implementation?• See first value?“Plan for growth. No matterhow carefully you define yourneeds, they’ll evolve in waysyou don’t expect. You need avendor that is likely to supportfuture needs, whatever theymay be. So look beyondfor specific features forflexibility and a history ofproduct improvement.”– David Raab, MarketingAutomation Expert
    • 82part seven: buying marketing automationpurchase processStep #3: Identify your requirements.Remember, picking the right solutioninvolves more than just picking theright technology.Take action:• Review your administrative,integration, and technicalrequirements. What othertechnologies do you have that thesystem will need to work with? Whatlevel of integration do you need foryour CRM—are leads and contactsonly okay, or do you also needopportunities, custom objects,and so on?• Check Part Four’s functionalitychecklist. Verify you’ll get what youneed today – and what you’ll want inthe future.• Isolate requirements beyondtechnology. Who will use thesystem? How important is ease ofuse? What level of additional services,training, and support will you need?See Part Six for more on this topic.• Turn the requirements intofunctional “scenarios.” Describereal-world marketing programs andprocesses you want to be able to runinitially, and down the road.The Importance of EasyYou want to select a solution that’s easy tobuy, easy to own, and easy to use.• Fast to get results. It should be easy toget started quickly, so you see initialresults in days. Buying marketingautomation shouldn’t require a leap offaith on your part.• Make it easy to accomplishmarketing tasks faster. Marketersaren’t mechanics, so they shouldn’thave to spend time managing themachine. When a solution is easy touse, it frees up your marketers’ timefor more strategic and creativeaspects of their job.• Don’t spend your time training apower user. Instead, go with amodern platform that makes all ofyour users powerful. This lets youdistribute usage across all themarketers in your organization. Easy is what drives flexibility and agility. Whenthe solution is easy to use, your team canquickly turn ideas into implemented reality –so you get great results faster.The Importance of PowerfulWhile you absolutely don’t want to deal withunnecessary complexity, it’s crucial that youmake sure you won’t outgrow your solutioneither. Going too small or cheap—withoutaligning to your future requirements—is a clearpath to failure. Think about how embarrassingit might be to select a solution, only to have toreplace it later?Instead, choose a vendor that is powerfulenough to solve your real-world challengesnow – and as you move up the maturity curve.Ideally, your solution will let you unleash thepower when you need it, but that powerdoesn’t result in complexity that gets in the waywhen you just need to get something simpledone and out the door.
    • 83part seven: buying marketing automationpurchase processStep #5: Evaluate potential vendors againstyour scenarios. You’ll choose the vendorthat best suits your needs if you followthese recommendations below:• Select vendors to evaluate.Ask each one to demonstrate howthey would deliver your specificprocesses and scenarios.Alternatively, ask for a free trial ofthe solution being considered.• Scour the technology. Check allboxes to cover your administrative,integration, and technical needs.• Look beyond the technology.Evaluate each vendor’s ability to makeyou successful through access tobest practices, community,consulting, support, and training.• Ask tough questions. The vendor shouldn’t haveanything to hide. Make sure thevendors actually show you theyhave what they say they have interms of functionality.• Avoid a feature bake-off. Focus on the process andbusiness needs you identified instep 3, and avoid becomingdazzled by features that don’tdeliver on your criteria. (Thatbeing said, it’s okay to updateyour goals as you learn aboutwhat’s possible. Just makesure it’s compelling enough!)Step #4: Assemble a team to choose andmanage the solution. Make sureyou cover both bases by gettingsign-off from all stakeholders ongoals, requirements, and potentialscenarios—even Sales and IT. Justmake sure you avoid selection bycommittee. Typically, a votingapproach doesn’t create the bestdecision process. While allstakeholders must accept yourchoice, Marketing and the primaryusers of the solution should drivethe decision.The Right CapabilitiesMarketing automation solutions are available in awide range of manageability, capabilities andcosts. Here is a good list to work from whenevaluating the capabilities of marketingautomation solutions.1. Supporting unique business processesbased on best practices.2. System administration doesn’t create aburden the organization can’t support3. Bi-directional synchronization withthe CRM platform4. Flexibility to have hosted forms on corporatedomains and the vendor’s own platform5. Full nurturing support from earlyawareness, consideration through post-sale customer loyalty6. Data management and integrity capabilities7. Engaging customers across multipleplatforms including mobile, social, web,and events8. Global and regional capabilities9. Troubleshooting, technical support, uptime– how will the platform support yourorganization when things go wrong?10. Analytics – consider the platform that offersreporting capabilities needed to measuremarketing effectivenessSource: Marketing automation thought leader MattHeinz, President of Heinz Marketing
    • 84part seven: buying marketing automationpurchase processStep #6: Talk to references. Now it’s time to findout if your vendor can actually makecustomers like you successful.• Ask your vendors for references.Solicit others from your personal andsocial networks.• Look for references that are similarto your organization. Chances are,you’ll succeed with a particular vendorto the degree that companies similarto yours have done, so look forreferences that are similar toyour organization.• Find out whether your situation issimilar to theirs. If you do, you’ll drillinto whether you’re likely to succeedwith that particular solution as well. Asmarketing automation expert DavidRaab points out, you need to askmore than “Are you happy?”• Don’t forget to ask about technicalAND non-technical factors. Howlong was implementation? How muchtraining and additional services wereneeded, if any? How did the vendorhandle any problems that wereencountered along the way?
    • 85part seven: buying marketing automationpurchase processQuestions to Ask During A Reference Call. Success Criteria & Selection• What were the key businessprocesses and goals you set forthis marketing automationproject? How well has the systemdelivered on those goals?• Were you the decision makerresponsible for purchasingthis solution?• What made you choose thesolution you selected? Implementation & Ramp-up• How long did it take you to learnbasic functions, like sending anemail or creating a sales alert?• How long did it take to implementfunctions like lead scoring, leadnurturing, and data quality?• How complete is the integrationwith the CRM system? How hardwas it to set up and maintain?• How long did it take you tointegrate the product’s salesintelligence component?• Can you tell me about yourexperience with implementationand support? Results• What’s your Sales team’sreaction to these new alertsand campaign information?• Have you seen an increasein leads?• What’s the single best thing about thesystem? The worst?• When implementing, what costs didyou incur beyond the solution price?• If you went to another company,would you buy the same systemagain, or look for other options?
    • 86part seven: buying marketing automationpurchase processStep #7: Make a decision. The time has come.Choose the vendor that can best makeyou successful in line with the goals youcreate at the beginning of this process.While this does involve comparingsubscription costs and contract terms,the revenue benefits you’ll enjoy whenyou achieve your goals are usually muchmore significant – so it’s best to choosethe solution that will help you be themost successful.Step #8: Get started. Here we go. You shouldalready have a complete understandingof this part of the process, based on yourinitial review of the vendors. But just incase, look to:• Sync the platform with your CRMsystem. Alternately, you can loadyour leads and contacts directly.• Create email and landing pagetemplates (or have your vendor helpwith this).• Set your email deliverabilitysettings, including your DKIMand SPF records.• Set up your website. Implement DNSmapping for your landing pagesubdomain. Add tracking codes toyour content management system.• Train your users in the system.• Build (or import) your first campaignsand programs. Work with yourvendor’s enablement and consultingteams for best practices.• Press go. Then, measure and sharethe success you’re having.Step #9: Review, optimize, and improve.There’s a lot that could be said here, givenhow endless your possibilities are whenusing marketing automation. But for thepurpose of time and space, here’s anoverview of how to approach this phase ofyour process.• Invest in the training and content youneed to be successful.• After three to six months, do acheck-up, and consider re-engagingwith your vendor’s services. Evaluateadditional services that could take youto the next level.• Engage with your vendor’scommunity to learn and share bestpractices. Suggest ideas for newfeatures while you’re at it.
    • 87part seven: buying marketing automationaddtiional factors to considerYou need to consider factors beyond thefeatures and functions discussed in PartFour. Here’s a list of additional factors totake into account when selecting a vendor.Implementation & Ramp-up• How long does it take to get live at abasic level? A medium level? Anadvanced level?• Do you provide training live oron-demand?• What skills will my users need?Service & Support• What’s your service level agreementfor technical support?• How will you help expose our usersto new marketing ideas andbest practices?• How active is your online community?How quickly will I get answers?• Who are your key service partners?Who provides strategy and processdesign, change management, andtechnical integration support?• What third-party products integratewith your platform? How broad is yourpartner ecosystem?Likelihood for Long-Term Success• What kind of ongoing costs andresources should I expect?• Is your company viable in the longrun? What funding and capital do youhave? What’s your growth rate?• How well does your product roadmapalign with my future needs?“Make sure that the marketingautomation vendor has lots ofresources, such as liveon-demand training,certification programs, and astrong network ofimplementation partners (e.g.agencies and/or consultingcompanies) to help theirclients get their programs upand running, or to take theirmarketing-automation-drivencampaigns and results to thenext level.”– Mac McIntosh, MarketingAutomation Expert
    • 88Case study:christiana care health systemChallengesHeadquartered in Wilmington, Delaware,Christiana Care Health System is one ofthe country’s leading health careproviders, ranking 16th in the nation forhospital admissions and is the largestprivate employer in Delaware.While Christiana Care received verypositive patient reviews, the company didnot have a high level of recognition in themarketplace and was facing threats fromcompetitors. In order to keep their marketshare and remain competitive andprofitable, they needed a marketingautomation solution that would help themcost-effectively reach more prospectivepatients and promote their brand, whilelowering their acquisition and operatingcost per patient.SolutionMarketo’s on-demand model, easyintegration, ease-of-use, and affordabilityput it at the top of Christiana Care’s shortlist. Christiana Care was able to easily fundthe purchase of Marketo’s revenueperformance management solution justby cutting down on direct mail andprint advertising.Beside the costs savings, three otherfactors set Marketo apart. First, themarketing team immediately saw howeasy Marketo was to use. Secondly,they realized how the solution’sDesign Studio capabilities reducedthe workload burden for webdesigners since web landing pagesand email campaigns could becreated without coding skills. Finally,the team learned how marketingautomation could be used for A/Btesting of their marketing content todetermine the best campaigns toachieve their marketing objectives.BenefitsWith marketing automation,Christiana Care has been able to savesignificant costs on advertisingdollars, thus lowering the costs ofpatient acquisition. In fact, they reportthat for every $1 spent on advertising,Christiana is seeing a $30 grossmargin, equating to a 3,000% ROI.Marketo has also allowed thecompany to expand its brand andefficiently run targeted emailmarketing campaigns. Further,marketing automation has beeninstrumental in deploying preventativeHighlights• A phenomenal 3,000% ROI on thehealth system’s promotional andeducation spending• Continuing expansion of theChristiana Care brand• Increased revenues from expandedpreventative care activitiesnurture campaigns, which have helpedreduce the number of emergency visits.As a result, healthcare costs per patienthave dropped while preventative carerevenues have increased.3,000%ROIon Christiana care’spromotional andeducation spending
    • part eightfuture of marketingautomation
    • 90Marketing automation is a dynamic industry, and new capabilities are being introduced all the time.Here are the four key trends that will drive this evolution over the next few years.part eight: future of marketing automationmarketing automation trendsTrend #1. Marketing automation willexpand into more parts of thecustomer lifecycle.Marketing automation vendors, especiallythe new generation of Software-as-a-Service vendors, have historically focusedprimarily on the business problem ofgenerating new business—particularlyvia the process of turning leads intonew customers.Going forward, marketing automation willventure earlier into the funnel to helpgenerate new leads—from organicinbound marketing through social mediaand search engine optimization (SEO), topaid lead generation strategies like displayadvertising, list rentals and retargeting.Trend #2. Social, local, and mobile play an ever larger role in marketing automationThe intersecting trends of social, local, andmobile (SoLoMo) are rapidly changing theface of marketing, and marketing platformsare evolving along with them.Social. Just because many vendors haveadded social functionality to their solutionsdoes not mean the category has matured.In fact, most have barely scratched thesurface. Going forward, enterprises willuse social to track to a wider set ofcustomer behaviors and interact withcustomers over more channels. They’llalso boost existing campaigns bymotivating customers to share and amplifytheir corporate messages.They’ll also focus on a broader set ofbusiness problems across all parts ofcustomer lifetime value, includingrelationship marketing workflows thatimprove cross-sell, up-sell, customerloyalty, referrals, and retention.These shifts will help SaaS-basedmarketing automation appeal to a broaderset of industries, especially business-to-consumer (B2C) sectors like retail, mediaand entertainment, healthcare, financialservices, and telecommunications.Local. Location-based marketing takesadvantage of mobile device GPScapabilities, especially as it applies to localbusiness like restaurants and retailers.Increasingly, sophisticated marketerswill find ways to use location-basedinformation to market all types ofbusinesses, and marketing automationwill be at the center of enabling this.Mobile. As consumers increasingly usetheir smart devices to consumeinformation, marketers will incorporatemobile into their communication strategiesmore and more—from ensuring allmarketing touches are mobile friendly toentirely new campaigns that takeadvantage of mobile. This trend will impacthow users access their marketingautomation tools as well. Analytics anddashboards, for instance, will becomeaccessible from mobile devices.
    • 91part eight: future of marketing automationmarketing automation trendsTrend #3. Marketing automation platformcapabilities will expandMarketing automation will expand toinclude more functionality around bigdata and analytics, dynamicpersonalization, and marketingresource management (MRM).Big data and predictive analyticsBig data is all about a firm’s ability to store,process, and access the data it needs tooperate effectively, make decisions,reduce risks, and serve customers. In thecontext of marketing, big data refers to allthe information created by today’sbuyers—from keywords they use andcontent they share, to the webpages theyvisit and emails they open. Individually, allthat data is just noise – but predictiveanalytics can turn that noise intoactionable intelligence.For example, lead scoring will evolve froma rules-based system to a self-learningalgorithm. Also, big data and predictiveanalytics will allow systems to predict thebest offer for individual customers at themoment of interaction, and marketers todynamically adjust their spending betweenprograms based on a real-timeunderstanding of program ROI.Dynamic personalizationEmail has always been a channel thatcommunicates with the individual. Today,more and more channels are offering thiskind of 1:1 personalization. For example,websites change dynamically to cater toindividual visitors, and ad networks canpresent specific messages to specifictargets based on individual ID trackers oremail addresses. Even television isbecoming capable of showing differentads on specific cable boxes.By combining “big data” intelligence withthe marketing database and individuallyaddressable channels, marketingautomation will become the “brain” thatdecides what message goes to whichcustomer, and when.“When powered by marketing automation, Big Data can meanBig Bucks.”– Sanjay Dholakia,Chief Marketing Officer, Marketo“Core tenants of marketing automation like marketing campaigns,lead generation, scoring and nurturing will continue to evolve in away that does not send all consumers down the same path, butrather dynamically changes to assign a personalized path to eachconsumer.”– Eric Dukart, COO, Sundog“The future of marketing automation? One word. Predictive.Self-learning algorithms will provide automated lead & customerscoring and predictive campaign triggers that use historical datafrom a marketing automation platform to determine the nextcampaign to be triggered.”– Will Scully-Power,Managing Director, Datarati
    • 92part eight: future of marketing automationmarketing automation trendsTrend #3. Marketing automationplatform capabilities willexpand (cont.)Marketing ResourceManagement (MRM)MRM helps marketers increase theoverall efficiency of their operations withprogram planning, projectmanagement, and collaboration.Specific capabilities include:• Assigning top-down budgets tovarious groups and divisions• Planning marketing spendingacross programs• Tracking open-to-spend• Ensuring budget compliance• Coordinating workflowsand permissions• Maintaining a marketing calendaracross multiple groupsHistorically, MRM was a component offirst-generation marketing automationaimed at the largest B2C companies.Increasingly, modern SaaS-basedvendors will incorporate MRMfunctionality into their platforms as well.“At this point in time, peoplewho know how to useMarketing Automationplatforms are scarce andhard to replace, so ease ofuse is paramount. Asmarketers come and go,how are you going to stewardthe processes and data youneed to operate?”– Joseph Zuccaro,Founder and President,Allinio LLCTrend #4. Usability will increaseAlthough many marketing automationsolutions are “easy to use,” there remains ashortage of experts that understand themodern best practices and know how toget the most out of the systems. In thefuture, expect vendors to invest in easierinterfaces, wizards, and expanded librariesof pre-built best practices that can beimported into systems.Also, vendors will increasingly providebenchmarks that help marketerscontextualize their results. Finally, vendorswill also focus on driving customersuccess by investing in everything that sits“around” the technology, includingservices, training, communities, usergroups, and so on.
    • 93Thought leader Snapshot:david raab, principal,raab associatesDavid M. Raab is a Principal at RaabAssociates, Inc., specializing in marketingtechnology and analysis.As a consultant, Mr. Raab advises majorconsumer and business marketers onmarketing processes, technology andservice vendors. Mr. Raab has writtenhundreds of articles on marketingtechnology for publications and he is theauthor of Marketing PerformanceMeasurement Toolkit (Racom Books,2009) and the B2B Marketing AutomationVendor Selection Tool (raabguide.com).Mr. Raab holds a bachelor’s degree fromColumbia University and MBA from theHarvard Business School.Marketo interview with David RaabMKTO: What do you think the future ofmarketing automation will look like in thenext few years?DR: Technically, I expect continuedexpansion of system functions in twodimensions. First, features for leadnurturing will be made more automated,such as lead scoring and contentselection. This will help expand use ofsystems by marketing departments thatlack the necessary skills or staff to takefull advantage of them.Second, features for other functions willbe added, for sales support, leadacquisition (e.g. advertising, trade shows,etc.) and marketing administration(planning, budgets, project management,etc.). This will make B2B marketingautomation more useful across the entiremarketing department, so it has a greaterchance of truly becoming the centralmarketing system.Strategically, I expect vendors to makegreater efforts to help users take fulladvantage of their systems, byexpanding in-house services and partnernetworks. I also expect greaterspecialization by vendors, such asindustry-specific vertical editions. Finally,I expect the largest vendors to continueto set themselves up as “platforms” thatare open to expansion by third partydevelopers, through mechanisms suchas app marketplaces.MKTO: What are the most importantthings you have to keep in mind in orderto be successful with marketingautomation?DR: It’s important to take acomprehensive view of the customer lifecycle, looking at how different programsaffect long-term results rather than justimmediate response rates. This allowsmarketers to correctly optimize theirprograms by shifting resources to themost effective purpose. It relies onsound marketing strategy, bettermeasurements and an analytical mindset. These in turn rely on buildingappropriate staff skills and processes.Finding better, more cost-effectiveways of generating content is anothercritical success factor, which againmust be driven by a strategic view ofthe customer life cycle and howmarketing automation can help movecustomers through the funnel. A baseof customers that are “like you” isimportant to demonstrate that thevendor platform has broad appeal,and that it has been significantly testedby a wide range of customers using itfor different applications.
    • Thought leader Snapshot:david raab, principal,raab associates94MKTO: What are the most importantthings to look for in a marketingautomation vendor?DR: You need to match the vendor to yourown situation, in terms of specificfunctions, level of complexity, and servicesprovided. A system that’s either too simpleor too complex is equally bad, although fordifferent reasons. Similarly, somecompanies need a lot of help while othersdon’t. You also need to worry about thevendor’s stability and resources, since theindustry is increasingly competitive and itwill be hard for some vendors to survive.This doesn’t necessarily mean that onlybig or heavily-funded vendors are safe,since even smaller vendors can befinancially sound.MKTO: What are some benefits ofmarketing automation that you would pointout to someone who is consideringswitching from their ESP?DR: Marketing automation makes it easierto integrate email with landing pages, Webbehavior analysis, lead scoring, multi-stepnurture programs, sales activities, socialmedia, and other tools used for leadacquisition and nurturing. Integration isincreasingly important as marketers needto manage more channels over a longerspan of the customer lifecycle.This integration involves sharing content,coordinating contacts, and pulling togetherdata from all sources. It saves largeamounts of time that can then be used tocreating more effective programs.
    • part ninemarketo’s marketingautomationWARNING POWERFUL
    • 96Why Marketo?part nine: Marketo’s marketing automationcontextFastest Time to ValueProven flexibility and ease of use allowscompanies to get started quicklywithout compromise.Start Simple, Never OutgrowEasy to start simple, yet powerfulenough to satisfy even the mostdemanding requirements.Connected to Your EnterpriseConnects seamlessly with your keybusiness applications through out-of-the-box integrations and extensive API.Your Partner for SuccessAn award-winning community of20,000+ users, innovative Best Practicesand access to an ecosystem of partners,experts and consultants. Marketo hasmade more companies successful withmarketing automation than anyother vendor.Email MarketingIndustry leading deliverability ratesDeep CRM Integration Native, automatic bidirectional syncReal-time Sales IntelligenceDelivered to Sales through a nativeCRM dashboardLead NurturingRules and filters personalize emailsfor specific segmentsMulti-Dimensional Lead ScoringDemographic, behavioral and sociallead scoringSocial Sharing and EngagementVideo share, social polls, form shareEasy. Powerful. Complete.Closed-loop ReportingMeasure revenue impact of allyour campaignsOnline and Offline Event MarketingIntegrates with popular onlinemeeting providersWYSIWYGDrag-and-drop creation of landing pages,emails and formsMulti-step WorkflowsPerform actions based on filters andreal-time triggersSegmentationDynamically send tailored content to leadsA/B TestingOptimize your landing pages and emailsLearn more at www.marketo.comCRM
    • conclusioncontextSo there you have it:everything you ever wantedto know (and then some)about marketingautomation. Whether yourcompany’s annual revenueis $100 billion or $5million—or even less—marketing automation isthe technology that willpropel your business intothe new era of relationship-based marketing withquantifiable results.Marketing automation is constantlyevolving. We’ll continue to stay on theforefront of marketing automation trendsand technologies and keep you up-to-datewith our web site, blog andmarketing automation resources.And if you’d like to speak with arepresentative from Marketo,call 1-877-260-MKTO oremail sales@marketo.com today.
    • 98appendix: Key Marketing automation expertsAdam Sharp@CTMadamCleverTouch Marketingclever-touch.comAdam Needles@abneedlesANNUITASannuitas.comAlexandre Losson@alexlossonKerenson Consultingkerenson.comAnneke Seley@annekeseleyReality Works Groupsales20book.comArdath Albee@ardath421Marketing Interactionsmarketinginteractions.comBarbra Gago@BarbraGagoTIBCObarbragago.comCarlos Hidalgo@cahidalgoANNUITASannuitas.comClaudio Sebastian Gullak@AtcoreAtcoreatcore.dkCraig Rosenberg@funnelholicfunnelholic.comDavid Lewis@demandgendaveDemandGendemandgen.comDavid Raab@draabRaab Associatesraabassociates.comElaine Forth@ElaineForthHyphen8hyphen8.comEric Dukart@edukartSundogsundoginteractive.comEric Wittlake@wittlakeBabcock & Jenkinsb2bdigital.netGavin Heaton@servantofchaosConstellation Researchconstellationorg.comGerry Brown@gerrybrownBloor Researchbloorresearch.comHenry Bruce@hebruceRock Annandrockannandgroup.comHoward J. Sewell@HJSewellSpear Marketing Groupspearmarketing.comJason Kort@MrktingAutomateMarketing Automation Timesmarketingautomationtimes.comJason Stewart@jstewart_1Demandbasedemandblog.demandbase.comJay Famico@JayFamicoSiriusDecisionssiriusdecisions.comJeff Pedowitz@JeffPedowitzThe Pedowitz Grouppedowitzgroup.comJeremy Victor@jeremyvictorMake Good Mediamakegoodmedia.comJoe Martinico@joemartinicoMarketingAutomation.commarketingautomation.comJoel Harrison@joel_b2beditorB2BMarketing.netb2bmarketing.netJohn McTigue@jmctigueKuno Creativekunocreative.comJonathan Block@jblockSiriusDecisionssiriusdecisions.comJoseph Zuccaro@joezucAllinioallinio.comJosh Morse@joshua_morseCloudSense Ltdcloudsense.comJustin Gray@myleadmdLeadMDleadmd.comKen Krogue@kenkrogueInsideSales.comkenkrogue.comKim Collins@Gartner_IncGartnergartner.comLarissa DeCarlo@LarissaDeCarloMarketing Operations Worksmarketingoperationsworks.comLori Wizdo@loriwizdoForresterforrester.comMac Mcintosh@B2B_Sales_LeadsSales Lead Expertssales-lead-insights.comMaria Pergolino@inboundmarketerApttusapttus.comMatt Heinz@HeinzMarketingHeinz Marketingheinzmarketing.comMatt Johnson@MatthewEJohnsonInnoveerinnoveer.comMichael Barnes@mb_analystForresterforrester.com/Michael-BarnesMichael CaponeSmart CEGsmartceg.comPaul Fennemore@PaulFennemoreTitanium Firewww.titaniumfire.comRob Brosnan@brosnaroForresterblogs.forrester.com/rob_brosnanRyan Vong@RyanVongRyan Vong Consultingb2bdigitalmarketing.blogspot.comSam Boush@samboushLeadLizardleadlizard.comScot McRae@mcraeandcompanyMcRae & Co.mcraeandcompany.co.ukScott Brinker@chiefmartecIon Interactivechiefmartec.comShawn Elledge@DemandConDemandCondemandcon.comStephanie Miller@StephanieSAMThe DMAvictorysong.typepad.comStephanie Tilton@StephanieTiltonTen Ton Marketingtentonmarketing.comSteven Deroy@CloudLeaderVivensvivens.comTim Furey@marketbridgeMarketBridgemarket-bridge.comTom Skotidas@tomskotidasSkotidasskotidas.com.auTrish Bertuzzi@bridgegroupincThe Bridge Groupblog.bridgegroupinc.comWill Scully-Power@dataratiDataratidatarati.com.au
    • 99About this guide#DG2MAWritten By:Jon MillerVP of Marketing, Marketo@jonmillerAdditional Contributors:Dayna RothmanContent Marketing Manager, Marketo@dayrothCaitlin RobersonWordisseurDesigned By:Davis LeeCreative Director, MarketoLynn-Kai ChaoGraphic Designer, MarketoAbout Marketo: Easy, Powerful, Complete.Marketo uniquely provides easy-to-use,powerful and complete marketingsoftware that propels fast-growing smallcompanies and global enterprises alike.Marketo® marketing automation and saleseffectiveness software – including theworld’s first integrated solution for socialmarketing automation – streamlinesmarketing processes, delivers morecampaigns, generates more win-readyleads, and dramatically improves salesperformance. With proven technology,comprehensive services and expertguidance, Marketo helps thousands ofcompanies around the world turnmarketing from a cost center into arevenue driver.Known for providing breakthroughinnovation and fueling explosive growth, inboth 2011 and 2012 Marketo received theCRM Market Leaders Awards Winner forMarketing Solutions by CRM Magazine.Salesforce.com customers also honoredthe company with the AppExchangeCustomer Choice Awards for 2012 in themarketing category.Contact MarketoNorth America: +1.877.260.MKTO (6586)Europe: +353 1 242 3000Australia/Asia: +61 1800 352 270Email: info@marketo.comWebsite: www.marketo.comBlog: blog.marketo.comTwitter: @marketo© 2013 Marketo, Inc. All rights reserved.
    • info@marketo.comwww.marketo.comDG2MA-020713 © 2013 Marketo, Inc. All rights reserved.