The CMO's Guide to Technology- Preview

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According to SiriusDecisions, 70% of CMOs plan to increase their technology spend in 2014.
But with all the new options for platforms and tools, deciding which ones to invest in can be incredibly challenging. That’s why we partnered with Craig Rosenberg of TOPO to create valuable content for CMOs and marketing leadership on the ever-evolving landscape of marketing technology.

To view the full ebook visit, http://pages.lattice-engines.com/CMOsGuidetoTechnology.html

Published in: Marketing, Business, Technology

The CMO's Guide to Technology- Preview

  1. 1. THE CMO’s GUIDE TO TECHNOLOGY Sneak Preview
  2. 2. Introduction ACCORDING TO SIRIUSDECISIONS, 70% OF CMOs PLAN TO INCREASE THEIR TECHNOLOGY SPEND IN 2014. But with all the new options for platforms and tools, deciding which ones to invest in can be incredibly challenging. That’s why we partnered with Craig Rosenberg of TOPO to create valuable content for CMOs and marketing leadership on the ever-evolving landscape of marketing technology. Craig Rosenberg 2 s s s s INTRODUCTION
  3. 3. 3 s s s s A Blueprint for Designing Integrated Demand Systems WE WORKED WITH THE FOREMOST EXPERTS IN VARIOUS ASPECTS OF MARKETING TECHNOLOGY TO COLLECT INSIDER TIPS AND CASE STUDIES ON: • How today’s leading marketing technologists build their infrastructures • Common buying mistakes and how to avoid them • Ways to align your IT and sales operations departments with marketing This ebook highlights a sample of the content. For the full CMO’s Guide to Tech, visit http://bit.ly/1fSRcFs. INTRODUCTION
  4. 4. 4 s s s s 3 Emerging Trends for Marketing Some common trends emerged between the individual segments: Understand the buyer and buying process first. Almost all of the thought leaders recommend that CMOs build their strategy, process, people and technology around the buyer and their buying process. Adam Needles, Chief Strategy Officer of An- nuitas: “The fundamental design of your marketing has to be patterned on how your buyer seeks solutions to pain points, and the questions and issues they’re going to move through as they go through their buying process.” Strategy, people and process come before technology. Even though we were focused on writing an ebook about technology, the vast majority of advice shared by industry thought leaders centered on issues with business processes and hiring. Vala Afshar, CMO of Extreme Networks: “Technology is the last piece. I don’t buy technology and build processes around it. I define the process and then research which technology can help me accelerate the journey we want to be on.” Technology is driving a change in the types of roles in the marketing organization. Marketing is changing and the job functions and types of people working in the marketing organization are changing. An example of a new role in the marketing department is the Chief Marketing Technologist. Scott Brinker, co-founder and CTO, ion interactive: “Technology was inspiring and powering many new kinds of marketing…and so, quite naturally, technologists began to join the ranks of marketing.” INTRODUCTION
  5. 5. 5 s s s s Today's CMO by Craig Rosenberg based on an interview with John Neeson, SiriusDecisions THE CMO’S PRIORITIES In 2013, SiriusDecisions found that CMOs are primarily focused on three major priorities: 1. Greater marketing ROI. Over the years, marketers have actually gotten a lot better at measuring demand generation. Now that there are better tools to help measure marketing efforts, most organizations are able to justify having even more demand generation programs and investment. CMOs also believe they need to invest more in marketing operations capabili- ties so they get better at tracking ROI in areas outside of demand generation such as brand and awareness. Finally, CMOs feel the need to bring all their marketing measurements into a single dashboard. 2. Expanding digital marketing. The importance of digital marketing continues to rise. There are three areas of expansion: The marketing mix continues to move toward digital, the majority of campaigns are now run via technology and social media is rising in importance. John Neeson, SiriusDecision TODAY'S CMO
  6. 6. 6 s s s s The CMO sees an increasing need to improve the skills and level of expertise in areas such as social media and web marketing to support this upward trend. 3. Product Breadth Market “Specialization”. CMOs are faced with lots of new product offerings especially with new business models such as the cloud. Additionally, many mar- kets are becoming more specialized and competitive, making it more difficult for CMOs to create differentiation. In order to support this trend, CMOs are rapidly moving towards solution marketing which will focus less on product and more on the impact their solutions will have on a customer’s business. To support this change, marketing organizations have an increased need to create content and provide sales enablement. An emerging role to sup- port the insatiable need for content is the “content strategist” to oversee the content across numerous solutions and product groups. ANOTHERVERYIMPORTANTTRENDWITHCMOsHASBEENINBOUNDMARKETING CMOs agree that the buyer’s journey is changing. For example, in their survey of buyers, Sirius- Decisions found that 67 percent of the buyer’s journey is done digitally. As a result, more CMOs are fundamentally re-evaluating their approach to managing the Web with a heavy emphasis on building the foundation to support a more robust inbound marketing channel. Over the years, marketers have actually gotten a lot better at measuring demand generation. ‘‘‘‘ TODAY'S CMO
  7. 7. 7 s s s s CMOs REALIZE THAT THEY CAN’T BE SUCCESSFUL WITHOUT TECHNOLOGY In a recent planning survey, 70 percent of CMOs said they intend to increase their technology spend. They have to in order to compete, especially as technology becomes one of the primary platforms by which they deliver their campaigns. SiriusDecisions believes that by 2015, at least 50 percent of marketing campaigns will be delivered using automation. The right technology infrastructure will be a critical component in supporting these numbers. CMOs whose organizations are technology-driven are seeing better results than those that aren’t. Marketing departments that spend five percent or more on technology have 35 percent or higher con- version rates than the ones who don’t. Yet marketers still know they can do more with technology as 50 percent say they don’t use marketing automation to its fullest capacity. Consequently, CMOs have increased the role of marketing operations to support the systems, data, planning and reporting. CMOs KNOW THEY NEED BETTER INSIGHT INTO THEIR DATA Marketing automation has helped generate lots of data. The key for CMOs is to become better at managing and using the insights from the data to their advantage. At a recent SiriusDecisions CMO Forum, CMOs said big data is just an IT/technology term, but what’s more important to them is what big data can do for them. 50 percent say they don’t use marketing automation to its fullest capacity. —SiriusDecisions ‘‘‘‘ TODAY'S CMO
  8. 8. 8 s s s s As big data continues to trend upward, SiriusDecisions predicts two things are likely to occur by 2015: • Big data will be more realistic for the CMO • Predictive analytics must become a competency MORE TRAITS OF HIGHLY EFFECTIVE MARKETING ORGANIZATIONS For the average company with a $50,000 ASP or greater, it takes 16 leads to close a deal. (Leads are defined as BANT qualified leads meaning they have budget, authority, need and timeframe). The best companies can close deals with less than seven BANT leads. There are a number of reasons these organizations are more successful than others: • They are better at targeting and using data • They have flexible programs that are used in a number of areas in the buyer's journey • They effectively use technology For the average company with a $50,000 ASP or greater, it takes 16 leads to close a deal. ‘‘‘‘ TODAY'S CMO
  9. 9. 9 s s s s THE ROLE OF SOCIAL MEDIA IN THE NEW ERA OF DIGITAL MARKETING For CMOs, social media is a top priority, as it becomes a bigger part of digital marketing. CMOs are changing social from a role in the organization to a skill their marketers need to have. Many CMOs are integrating social media into their demand waterfall by providing the buyer with the ability to get to related content along their journey. Companies that have taken this approach have seen a 20 percent improvement in campaign response. HOW CMOs SHOULD MEASURE THEIR PERFORMANCE The flaw in trying to understand the ROI of marketing is the desire to have B2B emulate B2C in terms of reporting. In B2C, a marketer can launch a coupon campaign, which can be easily tracked on a one-to-one basis. In B2B, there are lots of marketing activities that happen over the course of the buying cycle and it is difficult to decide which cam- paigns deserve attribution and which campaigns don’t. First of all, marketing should look at its multiple touches as a portfolio and then track and report on the following: • Overall yield from the portfolio • Impact on sales pipeline—for this reporting, organizations should look at the effects of the multiple touches as well as which opportunities were uniquely sourced The flaw in trying to understand the ROI of marketing is the desire to have B2B emulate B2C in terms of reporting. ‘‘‘‘ TODAY'S CMO
  10. 10. 10 s s s s WHAT IS BIG DATA? WHAT DOES IT MEAN FOR MARKETERS? According to IDC, more data is being created every day than existed in the year 2000. What’s happened over the last few years is that the marketing organization is sitting on top of large amounts of growing data. The data is coming from a wide variety of sources, including: • Web analytics. Data is being created every second on clicks, traffic, visitors and views from applications such as Google Analytics, Webtrends or Omniture. • Marketing automation platforms. Data is being created on emails we send such as open rates, hard bounces and unsubscribes. • Social data. Tweets, retweets, followers, blog comments, etc. The Rise of Big Data and Predictive Marketing by Craig Rosenberg with Brian Kardon, Lattice Engines THE RISE OF BIG DATA Brian Kardon, Lattice Engines
  11. 11. 11 s s s s What started 20 years ago as direct mail has become more hyper because everything’s digital, and because it’s digital you can measure it. The marketers who figure out what to do with the data have an advantage. The marketers who don’t know what to do with the data are frozen. THE IMPORTANCE OF BIG DATA AND THE CMO. CMOs can gain competitive advantages with big data by getting key insights into a couple of critical areas. The first insight is cus- tomer retention. With big data, you can determine which customers are staying and which customers are leaving. Marketers can do analysis to predict which customers will likely attrite. For instance, analysis might expose certain patterns such as a customer who hasn’t logged on in 30 days or hasn’t used a certain feature in a while. With the knowledge that a customer is going to attrite, the organization can remediate. The results are higher levels of renewal, customer retention and customer satisfaction. THE BIGGEST OPPORTUNITY WITH BIG DATA IS THE GENERATION OF NEW BUSINESS. In large organizations, most salespeople are responsible for thousands of accounts. The biggest time waster for salespeople is actually not paperwork or meaningless tasks. The biggest time waster is actually time spent with the wrong customer, that is, the customer who’s never going to buy. If a salesperson could magically understand which of all of his or her pros- pects is most likely to buy, then that’s where he or she will spend their time. Now, with analytics, organizations can understand which of their prospects is more likely to buy. For example, one of Lattice’s customers was proud of how persistent their sales guys were. One of its sales reps was applauded for his ability to get out dozens of emails to a customer and call the prospect over and over again. However, the data shows that if prospects don’t respond after the sixth touch, they’re never going to buy. The rest of those touches are actually a waste of time. 71% of sales leaders believe a big data strategy can lead to increased sales. —CSO Insights THE RISE OF BIG DATA
  12. 12. 12 s s s s PREDICTIVE ANALYTICS AND BIG DATA IS ALSO CHANGING THE WAY MARKETERS VIEW LEAD SCORING. Just because someone has a high lead score that doesn’t mean they’re going to buy. If a lead score is based on downloading a whitepaper or watching a video, big data can tell you that their credit rating declined, they stopped posting new jobs, or they just fired an entire division. You can learn a lot about a company in real-time that can tell you where you should and should not focus. The future of big data is now. Big data analysis is already happening today. In the B2C world there are powerful recommendation engines from companies such as Netflix, Pandora and Amazon. The recommendation engines are effective because they know a buyer’s economics. They can analyze your purchase history, your zip code and your clicks on the website. As a result, retailers know if you’re going to pay full price or need a discount. The analysis is happening in real time. It’s all based on algorithms. Internal data. The company has lots of data that marketing often doesn’t get to see. Examples of this data are from the ERP systems such as purchase or payment history, or from the support desk such as complaints, etc. External data. Data in their SEC filings, job changes and news scraped off of websites, etc. Social data. All of the likes, tweets and connections on LinkedIn, Facebook, Twitter, etc. THE THREE BIG BUCKETS OF BIG DATA: Big data encompasses three categories Let science take the lead. Learn more about predictive lead scoring. http://bit.ly/1iyxonB THE RISE OF BIG DATA
  13. 13. 13 s s s s Years ago, traders on Wall Street had a dozen screens open to analyze all of the data. Now on Wall Street, all the firms have hired financial analysts who evaluate market trading conditions mathematically known as “quants” to write programs and bots to analyze the data and actually execute the trades. The people who are really successful on Wall Street are not the guys in the pit, instead it’s the Ph.D.s in computer science who can crawl through the data and write programs that perform better than human beings. A SIMILAR REVOLUTION IS HAPPENING IN MARKETING. An MIT study found that if someone is on your website right now, and you call them, you’re four times more likely to be able to sell to them than if you wait until the next day. In other words, there is a huge decay rate. No salesper- son can know all of these things that are happening at the same time, but an algorithm can. PREDICTIVE MARKETING IN ACTION. The early marketing adopters of big data and predictive analytics are organizations that implemented marketing automation three or four years ago and are ready to do more. These organizations believe in automation and measure- ment, and predictive marketing is the logical next step. In the future, big data will be baked into the workflow of the marketer and salesperson. ‘‘‘‘ THE RISE OF BIG DATA
  14. 14. 14 s s s s THE RISE OF BIG DATA Typically marketers have access to about one to five percent of data that is knowable about customers and prospects. That's like seeing just the tip of the iceberg. WHAT INFORMATION IS KNOWABLE? 1-5%
  15. 15. 15 s s s s THE RISE OF BIG DATA CAN YOU USE DATA TO PREDICT BUYER INTENT? The fact is that statistically, we know that we can. Before big data, we weren’t capturing the data. We didn’t have the math. We didn’t have the software that could do the analysis in real time. We’re not talking about an Excel spreadsheet. We’re talking about mega databases. Factually, predictive marketing was not possible a decade ago. The recommended approach for predictive marketing: 1. Marketing Operations should be the point person. They are most comfortable with technology and data. 2. CMO should pair up with the VP of Sales. The key conversation between these two stakeholders is to understand how we can use the data to more accurately predict who will buy next. 3. The CIO has a role in this process. A major feature is the use of internal data and the CIO can help leverage the ERP system, purchase history, support desk data and other rele- vant internal applications. The data is not in one place, it is in different silos. The CIO is also critical with security especially when companies in the banking industry leverage big data. 4. Start with a pilot. Use a smaller group to prove the concept. THE FUTURE OF BIG DATA. Sales will follow the pattern that marketing is following and move from art to science. Ten to fifteen years ago, marketing was very bespoke and custom-made. Now marketing can easily upload data, create their own landing pages, etc. Today, sales is the last bastion of art. It’s all about the relationships with the client. In the future, big data will be baked into the workflow of the salesperson and marketer.
  16. 16. 16 s s s s About the Author and Contributors BRIAN KARDON As CMO, Brian is responsible for the company's market positioning, demand generation, thought leadership, and integrated marketing to ensure strong connections with customers and constituents. Prior to Lattice Engines, Brian was a driving force behind Eloqua's explosive growth and leadership in the Revenue Performance Management sector. Before Eloqua, Brian was Chief Strategy and Marketing Officer at Forrester Research, where he helped turn the brand into a leader in the technology research sector. He also served as CMO at Reed Business Information, the largest B2B publisher in the world. Brian received his BS and MBA degrees from The Wharton School of the University of Pennsylvania. Follow Brian on Twitter: @bkardon. JOHN NEESON John Neeson is Managing Director and Co-Founder of SiriusDecisions. He is a well-recognized thought leader in business-to-business marketing, with more than 25 years of experience focused on marketing, product development, sales management, communications and general management. Follow John on Twitter: @jneeson. CRAIG ROSENBERG Craig Rosenberg is a co-founder of TOPO, a research company that helps marketing and sales design great buying experiences. By delivering exceptional buying experiences, Craig's clients are able to grow 2X faster than their peers. Craig is also a well-known sales and marketing thought leader who frequently contributes to e-books, webinars and a range other digital content. Many in the industry also know him as The Funnelholic. On his popular blog, Craig tackles a wide range of sales and marketing topics. Follow Craig on Twitter: @funnelholic. ABOUT THE AUTHOR AND CONTRIBUTORS
  17. 17. 17 s s Lattice is pioneering the predictive applications market for marketing and sales. Lattice helps companies win more customers by making complex data science easy to use through a suite of secure cloud applications. By combining the industry's largest source of external buying signals with a company's internal data and applying proven predictive analytics, Lattice increases conversion and win rates by as much as 10 times. Lattice customers include innovative companies of every size. Lattice is backed by Sequoia Capital and NEA with headquarters in San Mateo, CA. Learn more at www.lattice-engines.com and follow @Lattice_Engines. For the full CMO’s Guide to Tech, visit http://bit.ly/1fSRcFs. About Lattice ABOUT LATTICE

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