How to justify the investment in modernizing your marketing with the Executive Board


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Swiss Post Solutions (SPS) is een divisie van Swiss Post, actief in 15 landen, met 6,400 medewerkers. SPS is de laatste jaren gegroeid door organische groei en overnames en dit resulteerde in 2010 tot een consolidatie van meer dan 30 merken tot 1 merk. Er lag prachtige kans en tevens uitdaging in het op een lijn brengen van de sales en marketing organisatie. David Dorlian vertelt over het moderniseren van de marketing en sales organisatie.

Om de vruchten te kunnen plukken van een nieuwe marketing en sales organisatie moest met name de rol van marketing in de organisatie veranderen. In zijn presentatie gaat David in op deze verandering van de rol van marketing binnen Swiss Post Solutions en de stappen die gezet werden om de investering te verantwoorden. Daarnaast spreekt David over de problemen en uitdagingen die ze tegenkwamen tijdens het veranderproces van het invoeren

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  • How to justify the investment in modernizing your marketing with the Executive Board

    1. 1. How to justify the investment inmodernizing your marketing with the Executive Board David Dorling, Swiss Post Solutions 14th March, 2012
    2. 2. What I hope to share• It is about change • The context and management background for our project• That organisational • The issues we addressed alignment will continue to be through our project a challenge • Centre of Excellence• That the strategy message • Results and benefits takes time to filter down to achieved the coal-face • Lessons learnt and next steps• There are cultural nuances that need to be managed• Focus on measurement & accountability
    3. 3. Background & Context:Individual systems, processes and methods & capabilities
    4. 4. There is but one constant - Change– How our customers buy– The level and complexity of our competitive marketplace– How we differentiate ourselves– What we sell and to whom– Our value proposition– Organizational structures– Skills and capabilities– Business processes and systems– Objectives, targets & measures
    5. 5. CHALLENGE 1 CHALLENGE 2The decline of the “Caught in the middle”physical document market positions CHALLENGE 3 CHALLENGE 4 Intensifying and We are in the midst of aasymmetric competitive fundamental environment re-organisation
    6. 6. Document and Business Process Outsourcing DOCUMENT MANAGEMENT BUSINESS PROCESS SOLUTIONS SERVICES Our Customers ElectronicElectronic Document Archive Management (ECM) IT Systeme (z.B. ERP) Physical Physical e-Archive Consumers
    7. 7. Systems, Processes & People What had to change• We were historically an operations led organisation• Marketing was viewed as a sales support function• Senior management viewed marketing as a cost function rather than a revenue contributor• Our marketing activities were executed in silos• There was a lack of coordination, standardisation and consistency in our G2M activities• We were incurring unnecessary costs• We were reducing our staffs efficiency and productivity• We were not investing in the development of our staff• We were engaging with our target market too late in the buying process• We found it difficult to measure the performance and effectiveness of our activities
    8. 8. Starting Point 17 December 2009Goals of the approved SPS Sales Concept
    9. 9. Sales Concept Key Topic Lead Lifecycle Management
    10. 10. Evaluating the Market• Vendor identification in Summer 2010 - LeadLife, Marketo, M2L, Eloqua, Silverpop, Aprimo• Vendor short list – six step process completed December 2010: – Silverpop – Eloqua – M2L (due to acquisition by Oracle)• Vendor evaluation – six step process, February to April 2011• Vendor decision – Eloqua: – Fit to functional requirements – CRMOD integration – Implementation model and services – Sales enablement – Privacy & security
    11. 11. What were the risksProject Risks: Not doing project:• Lack of Exec Mgmt buy-in & • We will continue to lack visibility support of our customers & prospects• Not achieving alignment interests between sales & marketing • We will continue to plan and and BU’s execute in silos• People: availability, skills, • Marketing’s contribution will capability, capacity continue to disappoint• Oracle CRMOD Integration • It will delay our capability to have• Available project budget consistency in our G2M activities• Content availability • We will continue to fund duplicate• Data management, systems governance & legislation • We will not be able to assess• Vendor support what is and is not working
    12. 12. Critical Building Block:Marketing AutomationCentre of Excellence
    13. 13. Implementation Scope and Governance• Phase 1 - six business units in scope: Switzerland, Germany, United Kingdom, United States, France and eProduct House• The project had three major workstreams, started late September 2011 and had duration of 16 weeks: – Functional deliverables – CRM integration – CMS integration• Project Governance – Project Board: Project Sponsor (member of Executive Board), Head Global Sales, Head Solution Management, CIO – Project Team: Business Unit Marketing & Communications, CRMOD Owner, Website Owner – Involvement of other stakeholders as required
    14. 14. SPS Marketing Automation Model Demand FunnelMetrics & Reporting People & Skills Scoring Nurturing Data Demand Creation Sales Governance (Inbound/Installed) Enablement
    15. 15. SPS Applied Demand Funnel
    16. 16. SPS Nurturing Strategy Architecture Route Master RouterWelcome/Profile Welcome Program (per segment)Convert/Qualify Solution 1 Solution 2 Solution 3Stay top of mind/ Extended Extended Extended educate Solution 1 Solution 2 Solution 3 Transactional Event-Management
    17. 17. Benefits & Results Achieved
    18. 18. What have we delivered• Integration of six websites• Subscription Model• Internal and external newsletters• Event Management Program• Telemarketing integration• Oracle CRMOD Sales Reporting and Lead Integration• Multi-solution Lead Scoring• Marketing Objectives & Performance Measurement• Nurture templates that be can be adapted by country
    19. 19. What have we achieved• Benchmark Performance • Open Rates 31.6% • Click Through 6.9% • Bounceback Rate 1.5%• Nurture Example – Cost £14k – Opportunities of £10.5m (PO & AO) – AO of £3.4m – Cost to revenue: £1 gains £72 (c35% of AO)
    20. 20. What has changed…• Marketing has contribution targets recognised by the Executive Board• There is formal agreement on lead handover process between marketing & sales – common definitions• We are able to communicate with our target market more effectively• Marketing is able to analyze, measure and report on performance of activities• We have a global model for nurture program development• We have improved coordination & standardization• We have increased efficiency• We have integrated with CMS & CRM• We are able to support sales with additional tools
    21. 21. We still have some way to go….– Closer alignment with sales – common and shared goals & metrics and focus– Marketing organization & skills development– Introduction of integrated campaign program management– Greater standardization and consistency in G2M – brand management– Market profiling: Ideal customers, Buyer Personas – value proposition
    22. 22. Our conclusions• It was (and continues to be) a change management project• That marketing automation should not become its own silo• That the theory differs from the practice• That there is no one size fits all (regardless of what vendors say)• That as you learn you recreate (be willing to take one step back to go forward)• That there is no such thing as a standard interface• That you will underestimate the investment required to fully exploit the investment that you have made• Easy to say market aligned organization – cultural and process realignment
    23. 23. A few final thoughts…• CMO tenure hits 43 months in 2012, from 23 months in 2006 (Spencer Stuart research)• By 2017 the CMO will manage more IS spend than CIO (Gartner)• Business Strategy and Digital Execution are CMO priorities (Forrester Research and Heidrick & Struggles)• Four key challenges; data explosion, social platforms, channel & device options, shifting demographics• A change agent by owning customer insight• By 2015 two-thirds of CMOs believe marketing ROI will be their top effectiveness measurement (IBM)• In 2017 the Marketing Operating Officer will have replaced CMO
    24. 24. Thank you Q&A