Marketing Operations: The Engine Behind Predictive Analytics Presented by Gary Katz at Predictive Analytics World, February 18, 2009 San Francisco, Calif. ©2009 Marketing Operations Partners

Your metrics for success are ill-defined Your people are slammed Your institutional memory is leaky Your innovation and creativity are suffering from constipation Your team, cross-functional or supplier relationships are poorly-aligned Your decision-making process is tough to justify Your marketing portfolio is not delivering expected results You Know Your Marketing Resources (and Job) are at Risk When . . . ©2009 Marketing Operations Partners The Seven Deadly Sins of Marketing Marketing Operations: Why It’s Needed

Your metrics for success are ill-defined

Your people are slammed

Your institutional memory is leaky

Your innovation and creativity are suffering from constipation

Your team, cross-functional or supplier relationships are poorly-aligned

Your decision-making process is tough to justify

Your marketing portfolio is not delivering expected results

Marketing Operations: A Definition A systematic end-to-end operational discipline to: A holistic framework to apply processes, technology, guidance and metrics to run Marketing as a: Drive efficiency, consistency, alignment, accountability Replicate best practices Build a foundation for Marketing Excellence © Marketing Operations Partners, 2009 Profit/value center Growth driver Change catalyst Fully-accountable business

A systematic end-to-end operational discipline to:

A holistic framework to apply processes, technology, guidance and metrics to run Marketing as a:

Drive efficiency, consistency, alignment, accountability

Replicate best practices

Build a foundation for Marketing Excellence

Profit/value center

Growth driver

Change catalyst

Fully-accountable business

MO Best Practice Framework Metrics Process Guidance Infrastructure Management Technology Strategy Ecosystem Alignment © Marketing Operations Partners, 2009

Marketing Operations: Sphere of Influence Scaling for Growth Enterprise Strategic Agenda Customer Profitability Sales Acceleration Accountability Alignment with Stakeholders ©2009 Marketing Operations Partners Marketing Intelligence

Six Top Marketing Challenges and How MO Addresses Them Converting Insight into Value Accelerating Sales/Buying Process Scaling Marketing for Growth Delivering Strategic Agenda Optimizing Customer Profitability Demonstrating Return on Marketing ©2009, Marketing Operations Partners

Converting Insight into Value

Accelerating Sales/Buying Process

Scaling Marketing for Growth

Delivering Strategic Agenda

Optimizing Customer Profitability

Demonstrating Return on Marketing

Challenge: Converting Insight into Value Lack of Confidence in Marketing Intelligence Knowledge Gaps Seat-of-the-Pants Decision-Making Disagreement over “Facts” If We Build It They will Come ©2009 Marketing Operations Partners

Solutions: Converting Insight into Value No or Slow Growth Anticipate Market/ Customer Shifts Benchmark Against Industry Norms Create Customer- Driven Solutions Learn from Wins & Losses MO Breeds Intelligence and Innovation ©2009 Marketing Operations Partners

Challenge: Accelerating Selling/Buying Process No or Slow - Growth... Disappointing Revenue Results Sluggish Pipeline? Unforeseen Obstacles to Sales Clearing Objections Takes Time Missed Opportunities ©2009 Marketing Operations Partners

Solutions: Accelerating Selling/Buying Process No or Slow Growth Feed the Sales Pipeline Engage Customers to Sell & Market Optimize Marketing & Sales Handoffs Grow Synergies, Grow Results MO Aligns Sales/ Marketing Effort ©2009 Marketing Operations Partners

Challenge: Scaling Marketing for Growth Marketing in Reaction Mode Need to Satisfy Mix of Stakeholders Dynamic Competitive Market Unmanageable Complexity Reaching Strategic Objectives is in Question ©2009 Marketing Operations Partners

Solutions: Scaling Marketing for Growth Marketing in Reaction Mode Assess Marketing Optimization Opportunities Tap Infrastructure as Accelerator Manage Ahead of Change Assert Performance Leadership MO Raises Bar ©2009 Marketing Operations Partners

Challenge: Delivering the Strategic Agenda Every Strategy Cycle, Every Budget Cycle -- is a Challenge Disconnect Between Facts & Direction Tough Getting Buy-in Vision Ineffectively Executed Team Relationships Less Than Functional ©2009 Marketing Operations Partners

Solutions: Delivering the Strategic Agenda Strategy / Budget Cycles are a Challenge Drive Innovation & Messaging Alignment Develop Visioning as a Tool for Results Bring Discipline to Marketing Governance Win Buy-in for Marketing Change Marketing Operations Guides Process ©2009 Marketing Operations Partners

Challenge: Optimizing Customer Profitability The Price of Acquiring & Keeping a Customer is Growing Customer Insight Stays in the Field Land Account, Hope for Profits Customer Experience/ VOC are Buzzwords High Customer Churn ©2009 Marketing Operations Partners

Solutions: Optimizing Customer Profitability The Price of Acquiring & Keeping Customers is Growing Maximize Customer Lifetime Value Leverage Customer Decision Drivers Win Back At-Risk Customers Mobilize Resources to Meet Customer Expectations Marketing Operations Builds Customer Intimacy ©2009 Marketing Operations Partners

Challenge: Demonstrating Return on Marketing Marketing on Defensive to Show Contribution Marketing Perceived as Cost Center Difficulty Defining Meaningful Metrics Poor Visibility of Results Infrastructure for Measurement Lacking ©2009 Marketing Operations Partners

Solutions: Demonstrating Return on Marketing Marketing on Defensive To Show Contribution MO Enables Account-ability Leverage Metrics Blueprint to Drive Measurement Identify Leading & Lagging Indicators Via Dashboards Track & Manage Individual and Team Performance Fine-tune Forecasting with Predictive Modeling ©2009 Marketing Operations Partners

Predictive Analytics and MO Maturity Advanced Processes (LEAN, Six Sigma, Supply Chain)‏ Change Management Competency Development Customer Profitability Enterprise Marketing Management Enterprise Metrics Alignment Marketing Governance Portfolio Management Predictive Analytics Shared Vision Strategic Management Org. Learning Facilitation Fundamental Marketing Operations Budget Management CRM Marketing Services Measurement Vendor Management Expanded Marketing Operations Sophisticated Marketing Operations Behavior-Rewards Alignment Best Practices Campaign Automation Cross-Functional Alignment Knowledge Management Metrics MOM / MRM / DAM Process Mapping & Design *CRM = Customer Relationship Management DAM = Digital Asset Management MOM = Marketing Operations Management MRM = Marketing Resource Management ©2009 Marketing Operations Partners

Profile of MO Best Practices With Sales With Enterprise Metrics > 20% CAGR ’ 03-’07 Strong Brand Identity Execution Excellence Process Excellence Budgeting Brand Management Customer Management Planning Product Lifecycle Management Predictive Analytics for Revenue Budget Planning Processes Alignment © 2007 Marketing Operations Partners

With Sales

With Enterprise Metrics

Budgeting

Brand Management

Customer Management

Planning

Product Lifecycle Management

Predictive Analytics for Revenue

Budget Planning Processes

Why Predictive Analytics Needs MO Marketing is likely the most hungry consumer of PA MO provides a robust application sandbox for PA MO may very well own the business case for PA If technology investment is part of the PA proposition (typical), MO may well own the deployment process PA doesn’t operate in a vacuum – without MO to drive understanding and alignment and catalyze change, insight from PA may never translate to action ©2009, Marketing Operations Partners

Marketing is likely the most hungry consumer of PA

MO provides a robust application sandbox for PA

MO may very well own the business case for PA

If technology investment is part of the PA proposition (typical), MO may well own the deployment process

PA doesn’t operate in a vacuum – without MO to drive understanding and alignment and catalyze change, insight from PA may never translate to action

Why MO needs Predictive Analytics PA enables MO to become more scientific, consistent, predictable PA is a powerful tool to help demonstrate Marketing’s value Helps focus on long-term initiatives, not just short-term results PA is key to aligning vision with metrics, forecasts with results PA is an indicator of MO maturity and an attribute of MO best practice ©2009, Marketing Operations Partners

PA enables MO to become more scientific, consistent, predictable

PA is a powerful tool to help demonstrate Marketing’s value

Helps focus on long-term initiatives, not just short-term results

PA is key to aligning vision with metrics, forecasts with results

PA is an indicator of MO maturity and an attribute of MO best practice

Thanks for Attending! For More Results, Contact Us: Phone: 408-243-7881 E-mail: [email_address] Web: www.mopartners.com Blog: http://mopartners.typepad.com/ Marketing Operations Evangelists Group: To join, e-mail [email_address] Journey to Marketing Operations Maturity Benchmarking Study: http://www.mopartners.com/services/MORbenchmark.php © 2009 Marketing Operations Partners