Marketing automation, the basicsSo, here is a list of the Top 10 things you should know – today. My goal is to provide you with the who what whys and hows – and as we go along, I will attempt to address the issues from the business side and the technology implications, and provide some insights into best practices for getting started with marketing automation in your organization.
The Universal ProblemDoes this ring a bell with any of you?? I loved this photo when I first saw it. This slide really sums up the problem in so many organizations and represents the greatest opportunity for marketing automation systems. As Maricor stated, I have been a marketing professional for almost 25 years, A marketing executive for the past 12, and worked at over 40 companies in my consulting practice. And this disconnect is something I have worked hard on with my VP of sales colleagues to bridge this gap. I wish I could find a photo with IT on it too as it represents the business and the application challenges of process alignment.So, what IS marketing automation?
WHO SHOULD CARECEOsThey want to improve efficiencies and need better ways to manage, track and analyze how the business is doing and how it will grow. By integrating sales and marketing systems, with advanced analytics capabilities, they can now monitor end-to-end process flows from Offer to Order. CMOs As a former CMO, and VP of Marketing, I understand how hard it is to justify marketing spend and track program effectiveness, as well as where the inherent disconnects are between marketing and sales. Now, with integrated sales and marketing systems, businesses can capture data for both tactical and strategic initiatives. CMOs can better analyze program effectiveness, gain operational efficiencies, and target offers to prospects and customers more easily. VP SalesSales execs be somewhat aware that marketing automation solutions can help generate higher conversion rates, more qualified leads, and shorten sales cycles. Yet, they are more likely interested in whether their team is going to hit its quarterly targets . Now, with one-click integration of marketing automation with the CRM systems, sales can have up- to-the-minute information about prospects as well as richer lead data and analytics. We will get into more details about how.CFOsCFOs, of course, have traditionally been chartered with managing the P&L for the business, as well as preparing all of the financial statements for the organization. Today, more and more CFOs are being asked to drive operational efficiencies and improve process flows. They rely on the data from the CRM systems to predict revenue and to capture many business metrics and want to make sure this information is reliable. . A big complaint from CFOs is the lack of visibility into how marketing spend is translated into actual revenue. Based on conversations I have had, they are very bullish on the promise of integrated sales and marketing information in the CRM system. CIOsCIOs are not only responsible for all of the systems in the organization but are frequently tasked with improving business and system alignment. They often create panels or process teams that function as the go-between between the business units and the IT department to ensure the applications are delivering what the business needs. More and more, CIOs are looking at the cost of on-premise applications and are evaluating moving to cloud based solutions. As CRM solutions are leading the way, the interest is growing to expand this functionality in the CRM with marketing automation.
Here is an good diagram of what marketing automation encompasses. This comprehensive system is often called EMM, or enterprise marketing management. It covers the entire lifecycle of the marketing process and can be broken down into two main functional categories (and also represent product categories) or sold as modules of enterprise systems.Marketing Management Automation. This encompasses automation of internal marketing processes. These might include things like budgeting and planning, workflow and approvals, the marketing calendar, internal collaboration, digital asset creation and management, and essentially everything that supports the operational efficiency of the internal marketing function.Customer Engagement Automation. This encompasses automation across one or more marketing channels: email, the Web site, microsites, direct mail, and dozens of marketing channels. In other words, the technology helps automate the process of engaging with customers across one or more channels. This might include setting up an email campaign, sending it out, and tracking performance; or creating a new landing page with a form capture element; or more importantly, managing communication with a prospect across multiple channels (email, the Web site, microsites), and tracking their behavior to identify the relative propensity to purchase.We are going to focus on the customer engagement functionalities as they apply to brand development and demand creation using marketing automation.
Campaign Management Simplifies the Development, Execution and Measurement of Marketing ProgramsCampaign mangement is about automating and integrating the key demand generation functions of direct and interactive marketing, prospect profiling, nurturing, scoring and distribution of sales leads -It allows marketers to target specific prospects by a range of segmentation criteria to create successful demand generation programs to engage, nurture and qualify sales leads. Campaign management is designed to automate the way markers think and the way that they work, and provides visibility into the results of campaigns - which in turn gives them the ability to better evaluate and improve the success of marketing programs.Give a few examples – talk about what we are doing at CapGemini -
The software application features an intuitive campaign planning environment designed to match how marketers approach campaign development. Marketers can manage multi-part campaigns in a single complete on-demand environment. They can set up, execute and report on multi-step, multi-touch campaigns and group dozens of marketing assets such as emails, landing pages, web forms and SMS messages into a single campaign. They can then quickly deploy, analyze and adjust campaigns on the fly to maximize results
Research indicates that companies spend 92 percent of their field marketing dollars to get prospects in to the top of the ‘sales funnel,’ meaning that only 8 percent of field marketing budgets are left to support sales in their conversion of these leads to opportunity and then to closed business – marketing automation helps shift that balance and make better use of these dollars for better results.Traditionally, lead management in the CRM system starts when a sales rep is assigned a lead. There is an age-old dialog between sales and marketing about how well qualified the lead is - and sales often will reject (read: won't call) the leads they don't think are good, and instead, ask for more. Based on the lack of marketing's ability to really target and pre-qualify a prospect this is understandable; in order to meet their numbers, sales reps have to focus on the leads with the highest probability to move to a sale.Now, with one-click integration of marketing automation with the CRM systems, sales can have up- to-the-minute information about the prospect as well as richer lead data. Marketing teams gather, pre-qualify and nurture leads and provide sales with vital updates on the behavior, interests, and intent of prospects, in real-time. Now, processes can be tracked from the beginning including the campaign strategy and prospect profile. And these systems can automate, based on the level of pre-qualification, where the lead gets routed for follow up.Using Lead scoring rules, users can precisely define lead quality based on specific types of desired campaign responses.
These systems tightly integrates with CRM and SFA systems to ensure that sales and customer service teams can see how their contacts are responding to marketing communications, including summary activity metrics and dashboards, so they can plan their follow up accordingly.New contact activity overview dashboards show both marketing and sales teams their prospects’ digital body language – like email responses and web site activity – so they can quickly qualify those leads that are demonstrating buying behavior.
CEOs - This alignment, and the analytics capabilities in these systems means CEOs (and COOs) can track the business from when marketing defines a strategy, creates a campaign, captures a name, qualifies it as a prospect, turns it over to sales as a lead, and then how sales moves it through the pipeline to the quote stage and then to an order and new customer (as well as afterwards through service and support). Sales Management - How does this help sales management? Everyone understands how sales opportunities are qualified, distributed and cultivated. The process flows much easier. Better qualified leads mean fewer leads go untouched. Sales reps are more productive because they focused on the most highly-qualified prospects. Sales funnels and pipeline analysis is much easier and revenue forecasting is more predictable, which makes executive staff and board meetings run smoother as well. Communication with the CMO and the product management team is enhanced as more data about preferences, requirements, and behavior can be shared by all. CMOs can better analyze program effectiveness, gain operational efficiencies, and target offers to prospects and customers more easily. As a result, marketing is turning over more highly-qualified leads that convert to sales faster. Marketing can now be viewed as a revenue generator rather than as a cost center, as it is directly impacting revenue and higher close rates. Predictability and accountability is what CFOs need, and integrated marketing and sales systems can give them valuable, granular information to better run the business. Now, if marketing budgets are being cut or if sales staff are hired or fired, the data in the system will help them evaluate the impact of these decisions and they can adjust plans accordingly.
Most applications have flexible reporting features let marketing departments analyze campaign results in a way that matches their business organization. Now marketers can see how their campaigns performed compared to others, and predict what type of campaign responses will provide the highest return on investment.
Efficiency (process)Visibility (management, decision making)Productivity (less people required)Flexibility (change process, change workflows)Communications (common goals, shared results)Better mapping to needs of customers, activity, behaviorThe benefit of this visibility is that business is more predictable, cost versus revenue is more measurable, departments are more accountable, and customer data is richer than ever before.
For those that don’t know what I mean by Cloud, Cloud computing is Internet-based computing, whereby shared resources, software and information are provided to computers and other devices on-demand, like a public utilityCIOs are under pressure to keep costs in line. system update and hardware but its programming resourcesCIOs They have historically focused the CRM system roadmap based on what the sales teams need and have been less concerned with marketing's needs. This is understandable, particularly when the on-premise marketing systems were expensive to purchase and maintain and integration with other systems was difficult. Now, with more and more SaaS options and the ability to more easily integrate sales and marketing solutions with each other as well as with the backend ERP systems, CIOs have more options to turn to with less risk. If these systems don't deliver the desired results, they simply discontinue the monthly service and try another option.
To be realistic, there are still many process and system challenges to work through which will require communication and negotiation with the business units - and the global regional offices. For example, getting consensus on terminology is a great first step at the tactical level - agreeing on what a "name" is, a "lead", a "suspect", a "prospect", a "customer", and which data fields to track, etc. But, the ability to have one central source for all prospects, contacts and customers - with their behavior, preferences and purchases - is easier than it has been ever before.
In terms of best practices, The good news is the technology is available to do some pretty amazing things with marketing automations systems. Cloud computing has made it much more accessible. But it always has to start with organizational alignment. You can’t ask a system to automate a process flow in there are inherent disconnects in the way your company does business.Marketing and sales goals, processes and systems are frequently misaligned. We all know the challenges are more likely to lie in organizational structure, process disconnects and inefficiencies, and the difficulties in changing the way we do things: "We have always done it this way…" In addition, there is a lot of system and process work that is required for these solutions to deliver the full value they are capable of returning. For example, simply getting a centralized contact database created that includes both prospects and customers across the regions is a monumental task and is often bypassed in favor of expediency. Marketing automation can dramatically increase the ability to up sell to the current installed base, and unless these systems and processes are more integrated, this will still be a difficult challenge. It is important for both the business and IT to be on the same page about what the systems can do and what the business priorities are. Is the application mapping to the business or the business to the application. An example – a large technology vendor was building the roadmap from Siebel on premise to SFDC, with marketing functionality. The on premise version had over 600 custom business objects that made it possible to maintain. Now, they wanted to promote out of the box functionality only – that doesn’t always work either, particularly if you want people to use the system. Getting through these requirements and expectations early will improve your chances for success.Therefore, the successful adoption of marketing automation requires not only a feature-rich solution and a good systems integrator, but system and process evaluation between the departments, regions, and with IT. And, the companies that succeed usually set 90 to 120 days milestones that show some incremental progress and users see value. And most importantly, executive-level sponsorship is essential to the success of these initiatives. The tremendous benefits of marketing automation to executives at all levels of the organization confirm my belief that marketing automation is going to be the "next big thing." For successful implementations, communication is the key at both the executive level and in the trenches. I truly believe that if people take a "team" approach and everyone understands their role in the process of building the business, and systems are put in place to automate this, we will, in fact, be able to track the business from "Offer to Order."
What is Marketing Automation? Barbara Angius Saxby 5/18/10
Senior executive with nearly 25 years experience in strategic marketing, management and international business development
Focus on process alignment and automation, executive management, marketing and sales operations
Domain expertise in CRM, BI, ERP, EMM and SCM including SaaS applications and a range of infrastructure technologies
Trusted partner of both Eloqua and Echo Lane hiSoft
Marketing Automation – The Basics What is Marketing Automation? Who Should Care? What are the Key Functions? What is Campaign Management? What is Lead Management? How Does it Improve Operations? What are the Business Benefits? Why Be “In The Cloud”? What is the Impact on IT? What are Best Practices?
1. What is Marketing Automation? ServicePartners Technology Metrics Service-LevelAgreements Lead FlowProcess Handoffs CampaignExecution LeadTaxonomy TargetMarketing Adaptable, situational application principles and technology coupled with next-generation best practices that better facilitate and support buying and sales cycles from cold to close Systematic Repeatable Predictable Requires Sales and Marketing Collaboration Source: SiriusDecisions 5
2. Who Should Care? Company: ACME CEO Marketing Sales Finance IT Chief Financial Officer Chief Information Officer Chief Marketing Officer Vice President Sales
3. What are the Key Functions? Analyze Business and Customers Plan and Budget Target Customer Segments View Program Spend and Performance Plan and Execute Campaigns and Events Track Results from Offer to-Order
4. What is Campaign Management? Executing & automating a program Targeting specific prospects Repetitive touch –mindshare Brand building and lead nurturing Capturing behavior and preferences
5. What is Lead Management? Move a “name” to a prospect Pre-qualify to “lead” through scoring Elevate high priority leads to sales Provide rich behavior-based insight Track progression through the pipeline
6. How Does it Improve Operations? Aligns marketing and sales Increases predictability of sales cycle More accurate pipeline forecasts More effective program metrics Improved reporting and analytics
7. What are the Business Benefits? Efficiency Visibility Productivity Flexibility Communications
8. Why Be In the Cloud? Apps On Demand Rapid Deployment Reduce costs Reduce risk Improve user adoption Increased flexibility Cloud
9. What is the Impact on IT? System alignment Integration Global adoption Streamline analytics Manage IT spend
10. What are Best Practices? Organizational alignment Agree on business goals Align database strategies System expectations and priorities Simplify workflows Short-measurable milestones Executive-level sponsorship
Contact Info Strategic Marketing, Sales, and Process Alignment Barbara Angius Saxby email@example.com 415-459-0529