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Aquent CRE8 Conference, Orlando FL 2008 - Measurement in Marketing Operations

Aquent CRE8 Conference, Orlando FL 2008 - Measurement in Marketing Operations

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  • 1. Measuring Marketing Results Mayer G. Becker National Practice Director MarketSphere Consulting LLC mayer.becker@marketsphere.com (312) 357-4405 CRE8 Conference 2008 CRE8Summit.com | Presented by AGI agitraining.com
  • 2. Welcome! Mayer G. Becker 25-year career in marketing Director of Marketing – American Bar Association Director US Marketing Communications, Computer Associates Inc. Vice President, Hill & Knowlton, Inc. Director, Corporate Marketing - Tribune Company (In-house CRM & agency) VP Marketing – Telenisus Corp. Director of Marketing Communications (Global), United Airlines Inc. National Practice Director, Enterprise Marketing Management, MarketSphere Consulting LLC Chicago AMA Chapter Member, Voting Member, DMA CRE8 Conference 2008 | CRE8Summit.com January 24, 2008 © 2007 MarketSphere Consulting LLC 2
  • 3. MarketSphere EMM Practice The MarketSphere Enterprise Marketing Management (EMM) Practice addresses the needs of the Chief Marketing Officer (CMO) and the marketing organization. Our unique transformational approach combines process and organizational change with adoption of new marketing automation technologies that drive customer, financial and operational insights, more effective marketing programs and a higher return on Marketing Investment (ROMI). MarketSphere services include vision and roadmap development together with software selection, marketing process improvement, software implementation and product training for the Aprimo® and Unica® EMM product suites. CRE8 Conference 2008 | CRE8Summit.com January 24, 2008 © 2007 MarketSphere Consulting LLC 3
  • 4. Agenda Taking your pulse – what’s important to you? Framing the challenge for marketing Why talk measurement? 3 Dimensions of Marketing Measurement An introduction to Marketing Operations Enterprise Marketing Management Resources to learn more Q&A CRE8 Conference 2008 | CRE8Summit.com
  • 5. A vignette from the past Mutli-national software company with 375 products/16 product lines Problem: Marketing materials needed to support field sales activities were almost never on-time, direct mail was dropping late, there was “chaos” and not order in the MarCom area as priorities changed hourly. Late fees were the routine and staff was stressed. Challenge: Establish a process that ensured all marketing materials are created and distributed on time to meet marketing objectives. Solution Established standards and key milestones for each type of activity Established a quarterly planning process – forward looking 4 quarters (2/2) Built a home-grown Marketing Ops application that organized projects and provided reports and status to all marketing stakeholders (published weekly on Monday) Enlisted EVP Marketing to support change CRE8 Conference 2008 | CRE8Summit.com
  • 6. Problem-solving results Result: 90-day changeover to a full plan, delivery of 89% of all projects on time within 12-months (versus 50%), reduced rush charges $900K, earned new revenue of $10MM from direct mail. Help Improve Apply People Process Technology Change 4 Qtr Planning Management tool Weekly Report & Horizon to track projects Red Flag Status Integrated Reports based on EVP Support Calendar Milestones Deliver as Standards Promised CRE8 Conference 2008 | CRE8Summit.com
  • 7. Framing the challenge for marketing Internal issues External issues CEO urges marketing to lead • Consumers have more choice innovation and growth • Faster time-to-market CFO wants visibility into • 24x7 markets marketing performance; more • Traditional competitors have accountability; Sarbanes-Oxley become more effective marketers Disconnect between the • New competitors from internet languages of finance and sites marketing • Manage and integrate proliferating New Chief Marketing Officer communication channels (CMO) every 24 months. • Agencies as project resources New CEO, CFO versus long-term AOR Flat or reduced budgets and • Agency staff turnover headcount in marketing (and • Short-term, quarterly financial elsewhere) reporting for public companies Staff turnover CRE8 Conference 2008 | CRE8Summit.com January 24, 2008 © 2007 MarketSphere Consulting LLC 7
  • 8. Industry snapshot The Marketing function is the last major business function to be addressed by technology, beginning with CRM in the late 1990’s Since 2003 global companies have been re-defining their marketing operations: Identify more accurately and conclusively the return on marketing investment at all levels of detail, to demonstrate value Gather and analyze significant amounts of customer data, to enable greater insight into customers Gather and analyze operational and financial data, to improve the effectiveness of programs while driving down the cost of marketing Preserve and protect marketing intellectual property, to insure compliance, facilitate reusability and preserve corporate memory The result is the adoption of marketing governance (investment portfolio management), creation of a PMO and implementation of Marketing Resources Management software within the marketing department. CRE8 Conference 2008 | CRE8Summit.com
  • 9. Forrester Research “Marketers should buck this trend [CMO turnover] by establishing a contract with the CEO, in writing, that outlines success metrics and targets for the department that are clearly aligned with corporate business goals. Marketers should reach out and partner with finance to construct the contract and enlist IT to build dashboards for tracking progress towards goals. By building executive credibility, marketing stands to gain additional budget dollars and executive support. A financial services CMO tells us: quot;Our tests proved that budget was sustained and increased by adding transparency and accurate metrics.quot; Peter Kim, Forrester Research, March 9, 2007 CRE8 Conference 2008 | CRE8Summit.com
  • 10. Ancient adage “If it can be measured, it can be managed. Quote of Unknown Origin, 20th Century? CRE8 Conference 2008 | CRE8Summit.com
  • 11. 3 dimensions of marketing measurement Measures customer performance against Customer established targets Measures financial performance against Financial established targets Measures operational performance Operational against established targets CRE8 Conference 2008 | CRE8Summit.com
  • 12. 3 dimensions of marketing measurement Measures customer performance against established targets: • Customer lifetime value Customer • Intent to re-purchase • Customer satisfaction quotient • Average invoice or revenue per sales Financial ticket • Number of visits or purchases/time period • Churn (especially trend) Operational • Net new customers • Cost per acquisition or retained customer • Brand recognition CRE8 Conference 2008 | CRE8Summit.com
  • 13. 3 dimensions of marketing measurement Measures financial performance against established targets: Customer • Financial measures; “budget to actual” • Brand asset value • Customer financial measures; lifetime Financial value, cost of acquisition, cost of retention • Return on Marketing Investment (ROMI) • Cost per lead, cost per sale • Gross and net profit margins Operational CRE8 Conference 2008 | CRE8Summit.com
  • 14. 3 dimensions of marketing measurement Measures operational performance against established targets: Customer • Number of projects • Projects on time/within X days • Staff hours utilized; agency hours Financial • Ratio of staff to freelance hours • Agency satisfaction scores • Vendor satisfaction scores Operational • Performance against annual / quarterly objectives CRE8 Conference 2008 | CRE8Summit.com
  • 15. How to approach measurement Decide what to measure, and why it is important Establish a baseline and “key performance indicators” (kpi’s) Put into place data collection systems Collect the data Analyze and understand the information, develop insights and circulate the results Take action (challenge, remediate, or celebrate!) And most importantly, integrate measurement goals into performance plans CRE8 Conference 2008 | CRE8Summit.com
  • 16. Marketing measurement overview CRE8 Conference 2008 | CRE8Summit.com
  • 17. Marketing as “Operations” Operations is often overlooked as an integral part of marketing Marketers are skilled brand builders, product developers and managers, creative artists and writers and campaign managers, but not necessarily “supply chain” or operations experts Marketing IS a supply chain Traditionally marketers are not trained in professional project management Marketing Communications, Marketing Services or agencies often serve as the de-facto project manager Calendars and projects are not integrated into a single, comprehensive and holistic view of marketing activities Software applications specific to marketing management have been available for only a few years Status is correct until one minute after you ask for it. “Why would I need automation. I have it all in my head!” CRE8 Conference 2008 | CRE8Summit.com
  • 18. The 5th Role of Marketing Product & Brand Innovation Marketing Operations Voice of the Revenue Customer CRE8 Conference 2008 | CRE8Summit.com
  • 19. The Marketing Operations Function CRE8 Conference 2008 | CRE8Summit.com
  • 20. What should Marketing Operations do? • Establish, manage and report on the linkage of objectives with results CRE8 Conference 2008 | CRE8Summit.com
  • 21. What should Marketing Operations do? • Establish, manage and report on the linkage of objectives with results • Run the marketing “business” (Project Management Office) • Manage and optimize resources (Marketing Governance) • Make it easy for everyone else to get their jobs done! CRE8 Conference 2008 | CRE8Summit.com
  • 22. The Marketing Operations Function Most commonly in-sourced to respective departments CRE8 Conference 2008 | CRE8Summit.com
  • 23. Marketing Operations Marketing Marketing Planning/Project Management Office Planning/PMO Create and monitor the annual Marketing Plan Create and monitor the integrated Marketing Calendar Work with Brand, Product/Innovation, Voice of the Customer and Life Cycle Marketing to translate corporate goals into action plans Hold quarterly reviews in conjunction with the CMO Monitor and publish reports and dashboards that combine customer, operational and financial metrics and Key Performance Indicators Key Technologies: Marketing Resources Management (MRM), Marketing Performance Management (MPM) Measurement: On-time and on-budget performance of action plans in conjunction with assigned managers CRE8 Conference 2008 | CRE8Summit.com
  • 24. High-level workflow at a major corporation CRE8 Conference 2008 | CRE8Summit.com
  • 25. Marketing Operations Budget & Budget and Finance Finance Manage and control the marketing budget Monitor and report financial and operational metrics Translate “finance speak” into “marketing speak” Assist Marketing Planning with mapping of corporate objectives to budgets, and results Recommend to CMO the optimal allocation of marketing dollars Provide Sarbanes-Oxley oversight Measurement: performance against plan(s), increased Y-O-Y ROMI CRE8 Conference 2008 | CRE8Summit.com
  • 26. Marketing Operations Shared Shared Services Services Manage marketing services Graphic arts and writing Web and email operations Marketing research & analytics Traffic and production management Manages day-to-day relationship with Agencies of Record Manage or coordinate with other marketing-related functions like Customer Service, Call Centers, or Fulfillment Centers Maintain labor standards and hire the optimal mix of staff, freelance and agency resources Maintain service level standards and enforce brand consistency Measurement: reduce cost of marketing while improving service delivery to other marketing units CRE8 Conference 2008 | CRE8Summit.com
  • 27. Marketing Automation Ecosystem Legend CRM: Customer Relationship Marketing ERP: Enterprise Resource Planning COMPANY KPI: Key Performance Indicators Ver 2.2 MOM: Marketing Operations Management SFA: Sales Force Automation Entity SALES MARKETING FINANCE Function Lifecycle Marketing Channel & MPM/ Marketing Corp. Comm Brand/Product Sales Operations Demand Management Partner Analytics & Communications PR Management Customer Service Mgmt ** Research Marketing Svcs Analytic Tools SFA Campaign Digital Marketing Procurement CRM PR/Media Database Mgmt ** Asset Operations ------------ Management Mgmt Mgmt Accounting Application KPI MARCOM Dashboards Sales Self-Service Enablement System Marketing Corporate Data Mart Info Systems Optionally, MOM could connect directly to an ERP system for replenishment of packaging & print materials (i.e., user manuals) Rented Lists/ Company Company Content Knowledge External Intranet/ Website Management Management CUSTOMERS Sources Extranet VENDORS Repository Repository AGENCIES **Note: Companies operating Partner & Channel © 2007 MarketSphere Consulting LLC EMPLOYEES Management programs use PRM solutions. CRE8 Conference 2008 | CRE8Summit.com
  • 28. Example of a Solution Topology _Business Units _Corporate Marketing _Agencies/Suppliers User Portal 3rd Party Vendor Marketing (Instructions Only) Marketing Budgets & Marketing Offer & Integrated Campaign Forecasts Campaign Campaign Marketing Execution ----------- Planning Workflow Calendar (Future) Financial Financials Information Connectivity Digital Asset Management Administration & Reporting Infrastructure Ariba _Central Repository of Marketing Charters _Documentation of Approvals Marketing _Financial Information System _Creative, Media and Project Briefs of Record _Integrated Calendars & Project Status _Creative Materials (bridge to DAM) _Workflow rules ** Customer Contact Rules and Event Triggers (later) CRE8 Conference 2008 | CRE8Summit.com
  • 29. EMM Functionality Marketing Campaign Email, Web and Digital Fulfillment, Marketing ROI, Resource Management, Website Digital Asset Key Performance Management Customer Analytics Analytics Management Indicators & & Modeling Dashboards Marketing Profiling & Email Production Digital Asset Analytical data mart Planning Portal Segmentation Management Web Forms Hyperion, Cognos, or Planning Campaign Mgmt. Workflow Business Objects Web Content (Audience Selection) Calendar Management Job Starter Custom-built for direct mail, e-mail, marketing information Workflow Web Analytics Procurement & RFP telemarketing, direct dashboards Job Starter Collateral sales Reporting Tools Customization & Financials* Lead Management Self-Publishing* Procurement & Event-based RFP* Marketing Predictive Modeling CRM/Marketing data mart SAS Analytics add-on Marketing System of Record CRE8 Conference 2008 | CRE8Summit.com
  • 30. Expected outcomes Help Vision & Improve Apply People Roadmap Process Technology Change Successful linkage between company strategy and marketing tactics Reduction in unaligned projects Better insight into marketing’s return on investment and performance across product lines, markets and time periods Forward visibility into an integrated marketing calendar and future resources needs/requirements “New money” found from reduced cost of re-work and consolidation of vendors Higher work-place satisfaction and growth opportunities for staff CRE8 Conference 2008 | CRE8Summit.com
  • 31. Suggestions Educate yourself and your peers Learn about available software applications Aprimo Unica Others (mid-market or departmental) Learn more about marketing measurement If you see an opportunity to improve operations: Find a corporate objective that would benefit directly from a more operationally effective marketing department Engage an executive sponsor Partner early with IT and Finance Design a roadmap detailing the steps to be taken Include programs for change management Have patience, a lot of patience CRE8 Conference 2008 | CRE8Summit.com 31
  • 32. Resources For more information, contact: Aquent Consulting www.aquent.com MarketSphere emm.marketsphere.com Destination CRM (Marketing Automation) www.destinationcrm.com Henry Stewart Conference on Marketing Operations www.damusers.com Ian Michaels / Aberdeen Group www.aberdeen.com Suresh Vittal / Forrester Research www.forrester.com Kim Collins, PhD. / Gartner Group www.gartner.com Gary Katz / Marketing Operations Partners www.mopartners.com Pat LaPointe / MarketingNPV www.marketingnpv.com Aprimo Inc. www.aprimo.com Unica Corp. www.unica.com CRE8 Conference 2008 | CRE8Summit.com
  • 33. Q&A Let’s hear your questions and comments! CRE8 Conference 2008 | CRE8Summit.com
  • 34. Wrap Up Thanks for attending today’s session! For a copy of the PowerPoint slides: mayer.becker@marketsphere.com CRE8 Conference 2008 | CRE8Summit.com