Marketing Automation

Slide 1: Marketing Automation Webinar March 14, 2006

Slide 2: Topics to be covered  Process for capturing, qualifying, and transferring leads  Major functions the technology must support: • Data management – validation and normalization • Target list creation and segmentation • Campaign management • Marketing reporting  Marketing automation choices  Pitfalls of some of the solutions • Information silos: marketing database vs. SFA vs. CSS Survey of large company CIO's: CRM has been the number one enterprise application failure over the last five years

Slide 3: Context For The Discussion • • •• B2B • • •• • • •• • • • • • • •• •• • • •• • • • B2C •• • • Cost of customer acquisition (CCA)  CCA in general grows in concert with Length of the sales cycle • Price of the product or service • Perceived complexity by the target market segment • Complexity in the Sales channel •

Slide 4: Lead Management and Nurturing Process Qualified Business Unqualified Opportunities Leads Win Sales Sheets, White Papers, Case Studies, Lead Nurturing List Purchases Sales Marketing Database SFA/CRM Marketing Feedback Delayed Opportunities and Lost Deals Marketing Feedback eMarketing, Search Engine Marketing, Reports: Direct Response, Lead Gen ROI, Seminar and Webinar Tele-prospecting Lead Flow Account Profiling Trade Shows, Marketing Lead Quality Lead Branding, Strategy Generation Awareness Management  All leads are captured in a central database  Qualified leads are passed to sales  Sales force’s confidence in leads rises  Delayed opportunities are incubated  Marketing feedback is assured

Slide 5: Simple High Level Process Flow Sales /Service person • Web Warm / Hot Pre-qualification • Cold calls Leads Leads • Email Wins • DM & ads Marketing responses SFA Mktg DB • Referrals Operations Postponed or • Networking lost Trade Shows Lost • Events Dis-qualified Opportunity Outbound Marketing Programs

Slide 6: Example - FEI  Global company with $500m in annual revenue  Sells electron microscopes - $200K+  Historically sold extensively into academia and semiconductors  Long sales cycle  Generated leads globally from trade shows, referrals, and events  Expanding into new markets  Needed a process for managing many new leads

Slide 7: Sample: Lead Management Process Qualify Capture Score Nurture Hand-off Mktg Mktg Mktg Mktg Sales Outbound Marketing or Sales Lead Hand-off Data Validation Fill out fields Qualify Add into database Score lead Nurture Confirm Follow-up N Y N Warm/Hot ? Qualified Strategic Acct? Track Y Y N Win Set Aside 1 week

Slide 8: Fill the Pipeline With Leads and Nurture  Process and database in place  Centralize all leads from trade shows, cold calls, referrals  Follow up with qualification calls  Send product information  Invite educational webinars  Add to eNewsletter distribution  Send product update information  Measure touches and time required to warm up prospects

Slide 9: Example – OneCreditSource.com  Smaller private firm that sells consumer credit reports and employment screening to businesses with permissible purpose  Growing rapidly and winning contracts with national building and construction franchises  Want to focus their internal sales team on high value clients  Revenue per client is very modest so the cost of Marketing and Sales has to be kept lean  Shorter sales cycle

Slide 10: Lead Nurturing Process Flow with Telesales Team – Small B2B Hand-off Lead Generation Lead Nurturing Sales List Purchase Add into db Hand-off TeleMktg Call Cultivate Import to Set N Validate Data Interested? SFA Aside Y N Lead Gen ISR Call N Close? High Value? Activity Y Y N Loss or Close Deferral Win Y Win

Slide 11: Lead Generation and Nurturing  Stage DM drops to prospects  Follow-up with telesales calls  Qualify opportunities  Send product information  Offer demonstrations  Add to newsletter distribution  Communicate product changes and updates  Track web downloads  Track all prospect interactions in a database

Slide 12: Process – Key Take Away  If you haven’t defined your lead capture, qualification, nurturing, and handoff process, don’t think about automating it yet!  A 2002 Butler Group report found that 70% of CRM implementations fail. Gartner cites 55% Lead Qualify Capture Nurture Hand-off

Slide 13: Major Functions the Technology Must Support  Data management – validation and normalization  Target list creation and segmentation  Campaign management  Marketing reporting Capture data Data Target / Segment Manage Campaign Management Reports

Slide 14: Data Management  Important fields you need to support your business  Importing data from many sources  Validating the data  Finding and removing ‘duplicates’  Consistency issues and normalizing data  Retiring or expunging data  Profiling data

Slide 15: Data Fields and Tables  Opportunities versus accounts versus contacts  Unique IDs  Retired contacts, not deleted  Campaigns and activities  Scoring for multiple purposes  Usage and expiration of lists, ownership  Do not call, do not mail, do not fax, opt-in, and opt-out  Region, industry, account rep, created date, last modified date, created by, last modified by

Slide 16: Importing Data  Goes into staging area first  Preserving sanctity of data - GIGO  InfoUSA , D&B, Web, Sales, Trade shows, etc.  Tracking id, deleted entries  Import suppression lists  Importing “back” from Sales force (multiple entry)  Merge with installed base data  Recording the source of leads  Getting responses back from campaigns

Slide 17: Validation  Basic contact info required before addition to db • Name, company name, phone, email  Zip code validation – CAS certified  5-10% bad from list vendors, set a goal to get to 1%  Process for returns  What if Sales changes or worse yet deletes records in SFA

Slide 18: Removing or Merging Duplicates  How do you detect duplicates • Some combination of name and phone number or company name • Mobile phone number • Don’t want to be too restrictive nor too loose  Deciding which data is “more correct” • Date created or modified • What title to keep – most senior? Sales Executive vs. Director • Source of data – your sales force versus a purchased list

Slide 19: Consistency Issues and Normalizing  The more people you let enter data the more inconsistency you get  You can normalize your queries or normalize the database  Normalizing data: Vice President of Marketing and Founder V.P. of Marketing Vice-President of Marketing Senior VP Marketing Chief Marketing Officer EVP Marketing and Sales VP Marketing Executive Vice President of Marketing  Normalize fields likely to be used in search and targeting Titles, addresses, phone numbers, CASE, regions, interest, competitor • Normalize currency in marketing expenditures and opportunities •

Slide 20: Retiring or Expunging Data  Wyatt Starnes moved as CEO of Tripwire to CEO of SignaCert Do we delete the old record and start a new one with a new ID • Do we simply replace the company id and phone numbers • Do we retire his old record but add a new record with the same id •  When you expunge data you may lose track of the macro data around some previous campaign

Slide 21: Profiling Data  How many contacts do I have with valid email addresses?  How many VPs of Marketing are in my database?  How many have I touched, or touched us in the last year?  How many prospects do I have in the PNW?  How many contacts have opportunities associated with them?  How many companies are represented in the database?

Slide 22: Target List Creation and Segmentation  Requires profiling and perhaps a mechanism to score leads  Create target lists based on score for specified criteria • For campaigns • For hand-off to sales based on score • For quarterly reports based on pipeline quality  Qualitative measure to track the quality of leads • Improve lead quality over time • Improved lead quality will lead to improved Sales pipeline

Slide 23: Lead Scoring Criteria   Lead source Likely purchase timeframe   Lead age Opportunity value  Strategic account  Funded project   Job title Familiar with solution   Region, address Prior user of solution   Market segment Probability they will pick us  Product interest  Primary competitor   Customer need Contact is decision maker   Customer application Contact is key influencer   Fit with our solution Contact controls budget  Opt-in for newsletter/updates

Slide 24: Hand-off Email to Sales Rep and Their Manager Aletheia, 1 new hot lead is in your queue, Company name Qunitera Corp Budget $500,000 Budget Approval Status Approved Application Rubber ducky race for charity Product Deluxe Edition Purchase Timeframe 3 months Market 501.c3 Contact Info: John Q. Psymthe, President Quintera Corp 503-555-1212 johnq@quintera.com Opportunity name quintera-122505 Assigned Sales Rep Aletheia Winalot You have 7 days to establish contact, assess opportunity and update lead information in the database with a confirmation note Thank you

Slide 25: Multi-touch Campaign Management  Recording multiple touches  Track campaigns-activities linked to contact id (not company)  Track campaign and activity costs and time stamps  Track response times and response rates  Telemarketing or “sales development” interface  Define what an activity is: AMA presentation is an activity  Ability to capture responses from all forms of lead generation activity

Slide 26: Campaign Reports  Who are the best and worst qualified leads?  What are the sources of the best and worst leads?  What percentage of revenue is attributable to marketing leads?  What is the marketing cost per order dollar and cost per lead?  What combination of touches in what order produces the best leads?  What is the most cost effective means to get qualified leads?  Which leads resulted in the most and least revenue and profit?  Which leads became ready for Sales attention fastest and slowest?  What are the best up-sell and cross-sell opportunities?  How fast are Sales following up on leads transferred to them?  What is the geographic distribution of my generated leads?

Slide 27: Reports Are Your Marketing Dashboard  If you can’t see the results from lead generation and lead nurturing activities, you’re flying blind

Slide 28: Categories for CRM SFA CSS Amdocs Goldmine Oracle/Siebel ACT! SAP Salesnet BMC Remedy Saratoga Salesforce.com RightNow Epiphany Onyx MS Dynamics Epicor/Clientele SalesLogix Vtrenz Eloqua Unica SugarCRM Aprimo Rubicon Marketing Automation (MRM, EMM, MOM)

Slide 29: Data Silos or Integrated? Sales Service Finance SFA CSS Opportunities Customers Companies Contacts Customer contacts Accounts Sales Orders Sales Funnel Service Tickets Investors MRM Marketing Customers Customer contacts Prospect companies Prospect contacts Interactions

Slide 30: Relevant Function Categories for Marketing  Data Management Capabilities  Targeting and segmenting  Multi-touch Campaign Management  Reporting and analytics  ASP versus software installation  Integration with other tools (email and calendaring s/w)  Response tracking  Marketing mailing and content assistance  Workflow  B2B vs. B2C focus

Slide 31: Pitfalls of Many SFA and Marketing Automation Tools  Don’t support multi-touch campaigns  Allow too many people to enter data – inconsistency  Try to enforce a workflow – their workflow  Don’t support fields for important criteria to marketing  Don’t support lead scoring  To be useful you have to buy their SFA and CSS modules too  Integrated CRM solutions frequently aren’t…  Integration with common desktop tools, mail, calendaring etc.  Some are open source which has pros and cons  Deployment and configuration options Heavy weight clients • Hosted •

Slide 32: Keys to Nurturing and Marketing Automation  Define the process before you attempt to automate it Define the roles of the individuals involved • Define the time periods for each stage • Define the quality of data required for hand-off • Design in a feedback from Sales • Add into db Hand-off TeleMktg Call Cultivate Set N Validate Data Import to Aside Interested? SFA Y N Lead Gen ISR Call N Activity Close? High Value? Y  Put in place the metrics before you automate it  Test the process before you automate it  Select a technology or services partner that best fits your processes  Implement, measure, refine.

Slide 33: Related Rubicon Services  In addition to lead generation and lead nurturing services Rubicon offers the following services Lead Management Process definition • Data Management • – Cleansing, merging, normalization, validation, de-duping, retiring, profiling Lead targeting and segmenting • – Lead scoring, suppression list creation and application Multi-touch campaign management • – Recording responses from multi-wave, multi-channel campaigns Reporting • – For marketing operations, management, program managers – For Sales management and executive management