Maximizing return on marketing investments

Are you maximizing your return on
marketing investments?
Point of view
2012

Marie-Christien van Wensen
Marie-christien.van.wensen@capgemini.com

Transform to the power of digital

Content

Introduction

Pitfalls in campaign
management

Solutions for increasing
campaign effectiveness

Our approach

Copyright © 2011 Capgemini Consulting. All rights reserved.
2

This document shows how B2B organizations can improve marketing effectiveness by
automating their campaign processes

Introduction

Context Objectives & scope of this document

 Marketing needs to improve return on marketing investments  To explain how organizations can improve their marketing
(ROMI) effectiveness by automating the campaign management
 As a consequence marketing is tasked to improve campaign processes
effectiveness  In scope:
 To be able to do so marketing needs to — B2B campaigns
— Understand the behaviour and attitudes of the customer
— Review its nurturing strategy
— Assess how campaign performance is tracked and measured
— Analyze campaign processes and the tools supporting these
— Review whether current skills and staffing are in line with
campaign management needs
— Asses the sales funnel and how leads are moved through that
funnel
 Based on the above assessment, the marketing organization
may conclude that it needs to transform its campaign
management

3

Content

Introduction

management

Solutions for increasing
campaign effectiveness

Our approach

4

At B2B marketing organizations, often funnel stages are undefined and campaign
management processes are not mapped or automated

Typical pitfalls in B2B campaign management process

Campaign management & strategy

 Funnel stages and responsibilities are undefined  No nurturing strategy in place
 No seamless handover of leads from marketing to sales  Campaign management processes are not mapped
 No efficient automated lead qualification in place  Campaign management processes are not automated

Customer insights Define campaign Design Execute Evaluate
& segmentation objectives campaign campaign campaign

 Lack of data  Objectives/ KPIs  Ineffective supplier  Campaign  Campaign is not
enriched database are not defined management performances is evaluated
and insight  Sales is not  No true not well monitored  Analysis is not
management involved in personalization  Leads created are translated into
 Lack of customer campaign  Learnings of not properly learnings
segmentation objectives previous followed up or  Evaluation not in
 No 360 degree  Marketing campaigns are not handed over to line with campaign
insight into responsible for incorporated sales objectives
customer lead generation in  Tools used are not  Tools used for
stead of revenue state of the art monitoring track
generation insufficient data
 No A/B testing

5

There are 6 main challenges preventing B2B organizations from having an effective
campaign management

Our view on why campaigns are not sufficiently effective

Strategy Lead management
 There is no clear campaign or nurturing  Lead management processes are not well
strategy and no long term campaign planning defined between marketing and sales

Customer centricity Tools
Campaign effectiveness
 Available campaign management tools don’t
 Campaign processes are often ad-hoc and not
have the needed functionalities for adequate
well defined
automation

Skills & staffing
Monitoring
 No sufficient campaign management expertise
 KPIs are not defined, unclear, monitored or
present (internal or external with agencies)
acted upon
 Lack of resources

6

In B2B markets, marketing & sales functions are key in creating a competitive advantage,
but they have difficulties in achieving return on marketing investments

Challenges in effective B2B marketing

What are the biggest challenges according
marketeers?
Generating more leads 50%

Reaching decision-makers 46%

Improving lead quality 44%

Increasing product/service awareness 41% Challenges in the marketing organization
Demonstrating marketing impact on business 40%  Marketing focuses on lead quantity at the
Working within budget/economic constraints 37% expense of lead quality
Developing the company’s brand 34%  Having visibility into the progress and
Enabling sales, improving sales support 32% outcomes of leads once they’re distributed
Retaining customers, developing loyalty 30% to sales
Understanding buyer/prospect behavior 27%  Awareness and engagement with B2B
Improving customer data quality and availability 25%
decision-makers
Deepening customer insight/relationships 22%

Allocating the marketing budget across the mix 22%

Making partner relationships more productive 20%

Source: Forrester, 2010

7

The state of B2B demand generation is weak due to absence of a lead management process,
no alignment of marketing & sales and no adoption of marketing automation

Reasons for the weak state of B2B demand generation
“Which best describes your lead management process?" "How does a prospect perceive the experience of interacting
with your company?"

Marketing generates leads and passes them all to sales 39% Generated leads and throws them over the wall to sales 42%

Marketing and sales agree on funnel definitions 38% Marketing is as facilitating between products&sales teams 28%

Marketing and sales follow a mapped process 18% Marketing and sales operate autonomously 16%

Marketing and sales follow a seamless process 5% Marketing consistently generates sales-ready leads 14%

"Which best describes your adoption of marketing
automation?"
Reasons for lack of demand generation
Have not implemented 42%  Most B2B firms don’t have a lead management
Implemented but barely scratching the surface 23%
process
 Marketing and sales teams work at arm’s length
Implemented and making great progress 12%
 Marketers educate but don’t engage
Evaluating 10%
 Marketing and sales woefully underutilize marketing
In the process of implementing 9%
automation opportunities
Sophisticated users 4%

8

B2B organizations risk to lose huge sales potential without having an effective nurturing
strategy in place

Importance of a nurturing strategy

All leads Active leads Cold leads

20% is 20% don’t
followed up 30% is buy
qualified

80%
80% buys anyway
gets no 70% from you or
follow up is disqualified your
competitor!

Marketing automation helps B2B organizations to stay on top of mind of
unqualified leads
Source: Sirius decisions, 2009
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Inefficient leads qualification results in waste of sales time, high marketing costs and lost
opportunities

Ineffective lead qualification

Leads leak out the sales funnel

Sales Sales
Qualified €€
Suspect Prospect Accepted Qualified
Lead Customer
Lead Lead

Leads leak out of the funnel
Issue:
Sales cherry pick
leads, letting longer-
time-frame leads leak
out
Issue: Issue:
Marketing hands off Marketing spends
leads too early. Leads more to recapture
waste sales’ time lost leads

10

Laggards underperform both on campaign analysis and data quality

Measurement performance

Marketing campaigns driven by numbers Data quality and accessibility, by best-in-class

48%
48% Satisfied with custoomer data quality
36%
Deliver marketing analysis on a 18%
programmatic and channel basis
32%
20% Dissatisfied with customer data quality
44%

43% 48%
Satisfied with customer data accessibility
Customer behavior is used to 44%
target and segment more 29%
effectively
16% 36%
Dissatisfied with customer data accessibility
40%

Best in class Average Laggards
Best in class All others

To improve marketing effectiveness, campaign measurement has to be in place
Source: Aberdeen, 2011

11

Changes in customer behavior are making the marketing automation mission crucial for
B2B organizations

Changing customer behaviour

Changes Consequences for organizations

 Business buyers have increased the time they spend talking to peers and colleagues
Buyers do more research on
their own before engaging with vendor sales reps, and they do this increasingly online
 This requires marketers to use automation to monitor the information needs of the
potential customer to deliver additional information that helps buyers move to the
next stage of the problem-solving cycle.

 While buying cycles are getting longer, a smaller percentage of prospects in the
There are fewer active buyer
marketing database are in active buying cycles at any one time
cycles
 Marketers need automation to listen for buying signals

 More stakeholders affect the purchase decision than in the past, including line-of-
More stakeholders are involved
in buying decisions business managers, IT, finance, and procurement
 Marketing needs to deliver information that explains the offerings and business
outcomes as they relate to the particular interests and concerns of each
stakeholder


12

Content

Introduction

management

Solutions for
increasing campaign
effectiveness

Our approach

13

Building a lead-to-revenue-management process supported by marketing automation
ensures that marketing focuses on things that matter, ultimately resulting in more revenue

Our view on campaign effectiveness

Campaigns Lead capture Lead qualification Sales funnel Reports & Dashboard

 Track which campaigns  Track marketing
 (automatically) Assign  Follow leads through the sales
lead to leads effectiveness
scores to specific leads funnel
(revenue, ROI etc.)
 Track the behavior of  Assign leads to specific  Provide content to help close
prospect  Track sales force
sales reps. the deal
effectiveness
 Supply content based on  Nurture leads by providing (conversion, effort etc.)
person’s behavior relevant content

A solid campaign management approach avoids leakage in the funnel and
provides 100% visibility on campaign effectiveness

14

All elements of the Capgemini Marketing Automation Model needs intention to increase
the return on marketing investments

Capgemini’s Campaign Effectiveness Model
1. Assess current maturity
2. Define campaign management 1. Analyze current sales funnel
goal & vision
2. Develop improved sales funnel
3. Design nurturing strategy
together with sales for a seamless
handover of leads

Nurturing
1. Assess current campaign processes Lead
2. Identify improvements area strategy
management
3. Implement new processes processes

Campaign 1. Analyze business requirements
effectiveness 2. Assess available marketing automation
Customer tools
Marketing 3. Implement tools and integrate
Centric automation with CRM
Culture tools

Skills &
1. Assess needed people & skills Campaign
Staffing
2. Identify gap performance
3. Training & education Monitoring
1. Define KPIs of campaign performance
2. Develop continious learning cycle
(benchmark & best practices)
3. Set-up dashboard

15

Send us an e-mail and we will provide you with the whole presentation and additional
content about how to increase return on marketing investments

Contact details

Marie-Christien van Wensen
Senior Consultant Digital Transformation

Phone: +31 653317218
E-Mail: marie-christien.van.wensen@capgemini.com

16

Maximizing return on marketing investments

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Editor's Notes