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Customer World Marketing Operations
 

Customer World Marketing Operations

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This was a presentation I gave at Siebel Customer World. ...

This was a presentation I gave at Siebel Customer World.

Presentation was given before most marketing operations companies existed. It had two goals:
1) To explain what Siebel does to improve marketing ROI, effectiveness, and efficiency.
2) Cover detail on how we manage the people, process, and technology responsible for the marketing department's goals, budgets, target audiences, segments, campaigns, leads, and overall performance.

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  • Siebel@Siebel (IT): How Siebel's Marketing Department Uses Siebel Marketing and Business Analytics to Substantially and Rapidly Improve Marketing ROI and Effectiveness (TBD) This session explores how the Siebel marketing organization uses Siebel Business Analytics and Siebel Marketing to set goals, identify market segments, budget for and execute marketing campaigns, follow up on leads, monitor progress, and measure and report program effectiveness and marketing organization's contributions and value to Sales and the company. This closed-loop process allows Siebel to significantly improve marketing ROI and expedite the lead-to-close process . Attendees will learn how to ensure a smooth Siebel Marketing and Analytics deployment as well as acquire best practices in the areas of Sales-Marketing alignment , right and responsibility assignments, user adoption of systems and processes, and IT-Marketing partnership to produce best results. In addition, they will learn about the obstacles faced, lessons learned, and ROI achieved from the rollout of Siebel Email Marketing, Siebel Marketing Resource Management (MRM), and Siebel Marketing Analytics . The above applications and best practices have helped our marketing organization achieve major improvements in marketing effectiveness and have led to industry recognition, including IDC’s Best Practice Award for Aligning Marketing and Sales and the ITSMA Marketing Excellence Award.
  • Q: Does anyone know what this is? A: It’s either an endangered species or a dinosaur. Q: How many people still use these to do some portion of their marketing process? - This is an actual shot of a Siebel Marketing Budget Notebook from several years ago.
  • How many business? IT? Implemented already? Haven’t implemented?
  • When Siebel was first founded back in 1995 the main focus of our marketing efforts was in establishing our brand and the CRM market. Essentially – ensuring when our sales team called on customers – they knew our name. During this time, the primary purchasers of our solutions were the innovators/early adopters (using Geoffrey Moore’s description of technology purchasers). As we all know, the technology industry around late 2000 began to experience a significant slump as did most industries. At the same time, we needed to sell to on a tougher audience - the “Early and Late Majority”. To deal with these two factors, we directed our efforts towards demand generation and to focus our efforts on a specific audience. It wasn’t that hard – there are only 1000 companies in the Fortune 1000. The key was getting the messages, solutions to those customers and create more demand for our solutions. Therefore, we created the Field Marketing organization to focus on demand generation.
  • Getting marketing and sales to work together is not a new challenge, but the challenges are made more difficult by today’s marketing realities. The heightened expectations for revenue growth plus the increased complexity that we all operate in put added pressures on the relationship. In addition, the need to get marketing and sales working more effectively together is even greater for companies who are migrating from a product selling to solution selling.
  • Actually, saying marketing and sales are “disconnected” understates the problem. There is a real perception chasm when it comes to the issue of lead management. Not enough leads to meet revenue targets Too many unqualified leads By the time we get a lead, it is stale I need leads to meet this quarter’s target – not next quarter’s Why can’t marketing do a better job? Marketing, naturally, has a different perspective No follow-up on the leads we generate No feedback from sales on what’s working We emailed the new leads…what happened? Sales needs to develop the leads not just take orders Why can’t sales do a better job?
  • At Siebel we have three groups that work together as one team. There is my group which handles all of the planning and execution of the marketing plan. (“The Marketers”) Then there’s the Sales Development group which qualifies the prospects and does all follow-up and then passes on opportunities to the sales team. And of course, there is the Field Sales reps who role is to confirm the opportunities and propose and demonstrate the solution and ultimately to secure closer of the opportunity.
  • Require all opportunities to have a source value – this is the fundamental link between the marketing process and the sales process
  • Analytic types love it, many creative types are interested too. Today’s internet-connected world demands it.
  • Let’s take a look at one of the most challenging aspects of the marketing to sales process – response and lead management. When you look at this slide it appears the process is fairly orderly ….responses come in from multiple channels…get captured and acted upon and get routed out to the right sales person or channel to get converted into a nice sized order.
  • Let’s take a look at one of the most challenging aspects of the marketing to sales process – response and lead management. When you look at this slide it appears the process is fairly orderly ….responses come in from multiple channels…get captured and acted upon and get routed out to the right sales person or channel to get converted into a nice sized order.
  • If you're like many B2B sales and marketing professionals, your acquisition efforts take longer, cost more, and don't generate the responses and new sales necessary to grow your business. In fact, the median response rate for B2B campaigns is less than 1.5%. Moreover, according to a study of marketing executives by Accenture, the average campaign takes 3 to 4 months from planning to execution. But driving revenue growth is more than just increasing response rates. The Direct Marketing Association estimates that organizations in the United States spent nearly $120 billion in 2002 on lead generation. Yet leading analyst firms such as Gartner and The Yankee Group estimate that between 40 and 80 percent of these leads are never acted upon, resulting in wasted investments and foregone revenues. By applying appropriate technology and response and lead-management best practices, organizations can dramatically improve results and ensure that the right leads get to the right individuals at the right time.
  • Two Sides to the equation - Investment and Return Cost – (MRM Budget Requests) Every Program we run has a budget line item in Siebel Marketing Return – (Opportunity Revenue) Every Opportunity we create has a source Keep or Get cost information in Siebel Marketing – this will significantly improve your ability to directly measure ROI
  • No blue arrows: Primary Metrics Blue arrows: Secondary Metrics We’re going to look at data warehouse reports which analyze every angle of this process.
  • - Cross processes - Delivered daily
  • Stage metrics Timeliness
  • A really valuable piece of information that we can provide to the Field Sales team to communicate how we touched our customers and prospects, is a week report that we email to the team that shows who has registered and attended the events we did the previous week as well as any net new opportunities. The registrants and attendees are highlighted in yellow while the net new opportunities are highlighted in green. This makes it easy for a Field Sales person to review the list to see who has shown interest in our products and which specific product they may be looking to purchase in the near future.
  • Organization often have no idea where they are or where they want to be with their marketing efforts. When asked if they are seeing real results from their marketing initiatives, they often can’t answer definitively what those results have been. Well due to our having implemented a solid process around our organization in the area of sales and marketing, along with utilizing our own best in industry products, we’ve been able to truly understand how we’re doing as an organization. This provides us with the ability to look at all key areas of the business relative to our objective and see where we are and were we still need improvement. How are we doing with respect to increasing the percentage of closed opportunities sourced by marketing? Are we increasing the percentage of closed opportunities touched by marketing? As you can see we have move the needle but there is still more to be done. The key thing is that we’ve able to now review this information and take further action to improve.
  • Siebel@Siebel (IT): How Siebel's Marketing Department Uses Siebel Marketing and Business Analytics to Substantially and Rapidly Improve Marketing ROI and Effectiveness (TBD) This session explores how the Siebel marketing organization uses Siebel Business Analytics and Siebel Marketing to set goals, identify market segments, budget for and execute marketing campaigns, follow up on leads, monitor progress, and measure and report program effectiveness and marketing organization's contributions and value to Sales and the company. This closed-loop process allows Siebel to significantly improve marketing ROI and expedite the lead-to-close process . Attendees will learn how to ensure a smooth Siebel Marketing and Analytics deployment as well as acquire best practices in the areas of Sales-Marketing alignment , right and responsibility assignments, user adoption of systems and processes, and IT-Marketing partnership to produce best results. In addition, they will learn about the obstacles faced, lessons learned, and ROI achieved from the rollout of Siebel Email Marketing, Siebel Marketing Resource Management (MRM), and Siebel Marketing Analytics . The above applications and best practices have helped our marketing organization achieve major improvements in marketing effectiveness and have led to industry recognition, including IDC’s Best Practice Award for Aligning Marketing and Sales and the ITSMA Marketing Excellence Award.

Customer World Marketing Operations Customer World Marketing Operations Presentation Transcript

  • OUR FOCUS IS ON YOU! Siebel @ Siebel: Marketing Improving ROI, Effectiveness, & Efficiency Adam B. Bloom – adam.bloom@siebel.com Marketing Operations and Online Community Tuesday 10.18.2005
  •  
  • “It’s much different when marketing is an investment and not an expense.”
    • Presentation Goals:
    • Explain what we do to improve marketing ROI, effectiveness, and efficiency.
    • Cover how we manage the people, process, and technology which is responsible for the Marketing Department’s Goals, Budgets, Segments, Campaigns, Leads, and overall Performance.
    1 Organizational and Process Challenges 3 Measurement/Tech Challenges 2 Organizational and Process Solutions 4 Measurement/Tech Solutions
  • Background: Evolution of Marketing at Siebel
    • Late 1990s – 2001
      • Broad based marketing - more strategic ( “flood light” )
      • No consistent technology or logic/structure to marketing process/reports
      • Little process and support for lead-gen activities
    • 2002
      • Increasing pressure: justify marketing budget
      • Need to become more tactically focused – lead generation ( “laser beam” )
    • 2002 – 2004
      • Developed Call Center model for outbound lead generation
      • Aligned the Field Marketing function with Sales teams to improve demand generation
      • Focused efforts to improve the deployment of Siebel Marketing
      • Goal – measure the effectiveness of marketing activities
        • Collect information to improve reporting/decision making
  • Background: Siebel Marketing Organization Today Field Marketing
    • Corporate Marketing (San Mateo)
    • Communications and Events
    • Direct Marketing
    • Web Marketing
    • Advertising
    • Public Relations
    • Customer Marketing
    • Integrated Marketing
    • Marketing Operations
    Field Marketing Call Centers (8 FM’s) (20 FM’s) (6 FM’s)
  • Organizational Challenges: Today’s Environment is Complicated Governance, Compliance, & Accountability Severely Constrained Resources Solution Complexity Organizational Complexity Competitive Complexity Migration to Solution Selling Sales and Marketing Teams Not Aligned & Not Optimized Heightened Expectations for Revenue Growth
  • Organizational Challenges: Conflicting Dynamics Between Sales and Marketing Sales Perception
    • Not enough leads to meet revenue targets
    • Too many unqualified leads
    • By the time we get a lead, it is stale
    • I need leads to meet this quarter’s target – not next quarter’s
    • Why can’t marketing do a better job?
    Marketing Perception
    • No follow-up on the leads we generate
    • No feedback from sales on what’s working
    • We emailed the new leads…what happened?
    • Sales needs to develop the leads not just expect that they can just take orders
    • Why can’t sales do a better job?
  • Organizational Solutions: One Process, One View of Results, Aligned Team Common: Customer Objectives Plans Budgets Language Pipeline Reviews Key Fields Metrics
    • Design, execute, and follow-up programs:
      • Develop Campaign Plans and Budgets
      • Plan and Execute Events
      • Prepare Campaign Follow-up
    • Qualify contacts and generate new leads:
      • Qualify Prospects
      • Gather Vital Account Data
      • Create and Route New Opportunities to Sales
    • Move leads through pipeline & close sales:
      • Validate Opportunities
      • Propose and Generate Solutions
      • Secure Customer Commitment
    Field Marketers Sales Development Reps Field Sales Reps
  • Organizational Solutions: Focus on User Adoption Across the Marketing Department
    • Low User Adoption and Usage = Low ROI
      • Marketers are in the business of change
    • Implementing CRM in a Marketing Department is not a one-time event
      • Marketers are good at communications, promotion, and education
    • Managers who:
      • Are accountable for metrics pay attention to the system
      • Pay attention to the system have employees who pay attention too
    • How We Started: Provide accountability: Performance Reports
    • How We Changed:
      • Provided value to end users in addition to Executives
        • Field Marketers, Email Marketers, Segmentation
        • Alignment (Marketing and Sales)
      • Developed a culture of accountability
        • Objectives, Dashboards, and Alignment (Marketing and Sales)
  • Organizational Solutions: Require Opportunity Source/Acceptance and Monitor It
    • Sales Process:
    • Opportunity Assessment
    • Outreach
    • Value Proposition
    • Proposal Generation
    • Negotiation
    • Close
    • Serve and Support
    • Marketing Process:
    • Budget Management
    • Program Execution
    • Event Execution
    • Campaign Follow-up
    • Lead Qualification
    • Opportunity Generation
    • Opportunity Routing
    • Opportunity Source ties the Marketing process to the Sales process:
      • Make it required and easy to complete
    • Opportunity Accepted => Valid and Timely
    Opportunity Source/Accept
  • Organizational Solutions: Marketers Desire a Measurable Impact
    • Marketers tend to get along
    • well with analytical numbers,
    • charts, and
    • graphs.
  • < Previous Next >
    • Organizational Challenges:
      • Today’s Environment is Complicated
      • Conflicting Organizational Dynamics
    • Organizational Solutions:
      • One Process, One View of Results, Aligned Team
      • Focus on User Adoption = ROI
      • Use Common Opportunity Info
      • Marketers Desire Impact
    1 Organizational and Process Challenges 3 Measurement/Tech Challenges 2 Organizational and Process Solutions 4 Measurement/Tech Solutions
  • Measurement Challenges: Marketing Effectiveness and Efficiency
    • Marketing Effectiveness: Did we achieve the desired outcome?
      • # Responses, Leads, and Orders
      • Average Order Revenue
      • Pricing and Discounts
    • Marketing Efficiency: Was there a minimum waste of resources used to achieve the goal?
      • Response Rate (Target Audience’s Interest in Message/Channel/Offer)
      • Lead Quality and Conversion Rate
      • Cost Per Lead and/or Order
      • Cost Events, Lists, and Media Buys
      • Cost of Marketing and Production Staff
    • Goal of Firm: Maximize Profit
    • Revenues
      • Sales
      • Deal Size/ARPU
      • Discounts
      • Time to Market/Provisioning
      • Offer Availability/Fulfillment
    • Operating Expenses
      • Cost of Sales and Marketing
      • R&D
      • G&A, IT, Finance, HR, etc.
    • Net Income (Profit)
    • (Wallstreet watches…demands)
  • Measurement Challenges: Response and Lead Management Complexity Call Center Partner/Dealer Direct Mail Web.eMail Wireless Field/ Branch CUSTOMERS Capture Response Attribute Campaign Ensure Data Quality Enhance Response Qualify Response Prioritize Lead Assign/Route Lead Notify Recipient Assess Lead Act on Lead MARKETING & SALES MANAGEMENT Call Center Monitor Process Partners/ Dealers Telesales Field/ Branch Divisions Geography
  • Measurement Challenges: Response and Lead Management Complexity Call Center Partner/Dealer Direct Mail Web.eMail Wireless Field/ Branch CUSTOMERS Capture Response Attribute Campaign Ensure Data Quality Enhance Response Qualify Response Prioritize Lead Assign/Route Lead Notify Recipient Assess Lead Act on Lead MARKETING & SALES MANAGEMENT Call Center Monitor Process Partners/ Dealers Telesales Field/ Branch Divisions Geography Web, Email, Fax, Phone Spreadsheets or Hard Copy Documents Disparate Sales and Marketing Systems Poor Lead Qualification Complex Territory Assignment Limited Lead Acceptance & Follow-Up No Visibility into Campaign Effectiveness Poorly Defined Roles & Processes
  • Measurement Challenges: The Impact on the Business is Significant
    • U.S. companies spend $100+ Billion on lead generation yet 40 to 80% of leads never get acted upon.
      • Source: Direct Marketing Association and Yankee Group:
      • Increasing Revenue By Optimizing Lead Management, Aug 2002
    • Nearly 20% of marketing spend is wasted AND Marketing executives cannot calculate the ROI for between 40% and 60% of their spend
      • Source: Marketing Leadership Council, 2003 Benchmark Study
    Disparate sales and marketing systems = Up to 15% Poorly defined roles and processes = Up to 10% Poor lead qualification = Up to 20% No visibility into marketing effectiveness = Up to 10% Source: Yankee Group: Increasing Revenue By Optimizing Lead Management Aug 2002 40% to 80% of Leads Escape The Funnel! Web, email, fax, phone, spreadsheets and other docs = up to 10% Wrong territory assignment = Up to 6% Limited lead acceptance and follow-up = up to 20%
  • Measurement Solutions: Cost and Revenue in the Same System Marketing Return on Investment Business Analytics Marketing Investment Company Revenue Every Opportunity has a Source and Amount Each Marketing Program has Budget Line Items Marketing Process and (Integrated) Information
  • Measurement Solutions: Marketing Process Overview Marketers: Field Marketing Follow Up: Call Leads/ Contacts Sales Sales Dev Reps Execute: Outbound Responses Follow Up: Create Opptys Measure Results Plan & Budget Execute: Inbound Responses Execute: Create Campaigns Set Objectives, Analyze Markets 1 2 3 4 5 3 3 Follow Up: Work Opptys 4 Follow Up: Accept or Reject 4 4 Customer Responses
  • Measurement Solutions: How Siebel Defines Marketing ROI
    • Primary Metrics
      • # Opportunities Created by Marketing and Accepted by Sales
        • % Pipeline that is Marketing Sourced (Creation)
      • # Opportunities Touched by Marketing
        • % Pipeline that is Touched by Marketing (Acceleration)
      • Cost per Opportunity
        • $ invested in Program / Number of Opportunities Accepted
      • Return on Marketing Investment
        • Closed Revenue / Program Cost
        • Difficult to measure with 9 – 12 month sales cycles
        • Difficult to measure when selling through channels
    • Secondary Metrics
      • Program, Campaign, or Channel Tactical or Overall Improvements
      • # New Contacts & Accounts
      • Cultivation of Demand and Lead Maturation
  • Measurement Solutions: Gather Regional Pipeline Insight to Plan Programs For Example, we might see that the pipeline for the Manufacturing and Distribution Industry is low and that a specific organization has impacted our results.
  • Measurement Solutions: Compare Program Effectiveness to Plan Programs
    • Every Program we run is measured against consistent metrics
      • Accepted Opportunities
      • Cost per Accepted Opportunity
    • Are we seeing certain Programs outperform others?
    • Where do we allocate more budget to get better results?
  • Measurement Solutions: Understand and Track Program Execution
  • Measurement Solutions: Follow Up Calls: Be Timely and Allocate Time Wisely 1 Day 1 Day 1 Day Release To Assign 2 Days 2 Days 2 Days Assign To First Call 2 Days 2 Days 2 Days First Call To Close Record Other Tactics Siebel.com Registrations Events & Direct Mail Goals Per Stage Per Channel Category 10 Days 2 Days 10 Days Immediate 10 Days 2 Days Close Record To Accept Opportunity Event To Release
  • Measurement Solutions: Understand Opportunity Quality and Distribution
  • Measurement Solutions: Easily Review Incoming/Pending Opportunities
    • View Pending Opportunities by Sales Rep and Days Pending
  • Measurement Solutions: Keep Sales Appraised of Active Accounts
    • Increasing the Bond between Sales and Marketing
      • eMail “iBot” pushed to field sales based on recent marketing activities
  • Measurement Solutions: Analyze Marketing ROI by Region, Industry, & Product Note: This Cost per Opportunity calculation is only for direct Program Spend. It does not take into account other lead generation channels such as the web. Including these other channels brings the overall Cost per Opportunity down.
  • Measurement Solutions: Analyze Marketing ROI by Program Type Note: This Cost per Opportunity calculation is only for direct Program Spend. It does not take into account other lead generation channels such as the web. Including these other channels brings the overall Cost per Opportunity down.
  • Measurement Solutions: Marketing Return on Investment
    • Before, we didn’t know…It’s easier to make decisions when you know.
    • We know the cost of an opportunity and typically are positive within 2 quarters.
    • ROMI based on Demand Generation investment is very high (5-8 X)
    ROMI – Closed Revenue / Total Spend ROMI (Demand Gen) – Closed Revenue / Demand Generation Spend (does not include fixed costs)
  • Results: 2002-05: Making Good Progress with Room to Improve “ It’s much different when marketing is an investment and not an expense.” % of Leads Accepted and Pursued Response Rate Pipeline Generated Cost per Marketing-Generated Opportunity % of Closed Opportunities Sourced By Marketing % of Closed Opportunities Touched By Marketing 33% 20% 60% $3000 2% xxx 95% 50% $4500 1.5% xxx 90% 10% 20% $8000 0.5% 80% Progress Towards Goal Initial Value Current Value Goal xxx
  • Results: Siebel Industry Recognition
    • &quot;The Siebel marketing and sales alignment strategy demonstrates a compelling and well-executed response to a problem that bedevils many organizations.”
      • - Paul Wiefels, IDC CMO Advisory Panelist & Co-founder and Managing Director of The Chasm Group
    • &quot;Their solution is very impressive.&quot;
      • - Jonathan Angel, IDC CMO Advisory Panelist & S enior editor of ADWEEK’s Technology Marketing magazine
    IDC’s CMO Advisory Panel has recognized Siebel Systems for their Marketing and Sales Alignment best practices Selected from entries submitted by technology marketing vendors across the IT software, hardware and services sectors for effectively coordinating marketing and selling activities Diamond Award for Marketing Excellence from the Information Technology Services Marketing Association (ITSMA) for “Building Marketing Accountability” Best in class company as measured by: Innovation; Execution; Business Results “ We were very impressed with Siebel’s project,” said Dave Munn, president and CEO, ITSMA. “Siebel’s efforts to strengthen its financial accountability for marketing have demonstrated excellent results for the company. By identifying clear targets, conducting regular reviews, aligning its marketing and sales activities and integrating its marketing processes and metrics to allow for ongoing improvement, Siebel has developed a winning solution that should be an example to other companies facing similar challenges.”
  • The New Siebel Online Community
    • Why Join
    • Over 1500 other discussions on CRM best practices! Continue the dialogue on this and other topics
    • Subscribe and learn something new every day
    • Share experiences, improve your business and technology operations
    • Gain access to CustomerWorld presentations and other valuable content
    • How to Participate
    • Check your email for registration information or visit the site
    • Encourage colleagues to join
    • Visit the CustomerWorld Knowledge Center to meet the Community Managers
    http://www.siebelcommunity.com
  • Q&A OUR FOCUS IS ON YOU! Siebel @ Siebel: Marketing Improving ROI, Effectiveness, & Efficiency Adam B. Bloom – adam.bloom@siebel.com Marketing Operations and Online Community Tuesday 10.18.2005