Building a Business Case for Localized Marketing Automation

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Join Gleanster Principal Analyst for a look at building a business case for localized marketing automation. You'll learn how to frame the challenges internally, how LMA technology can help facilitate cost savings and sales lift, and most importantly - how to justify the investment with tangible numbers.

Michiels references an ROI model built by Gleanster that allows marketers to calculate the benefits of localized marketing using internal numbers.

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Building a Business Case for Localized Marketing Automation

  1. 1. Ian Michiels Principal Analyst Gleanster Research Featured Speaker: WEBINAR Building a Business Case for Local Marketing Automation COMPLIMENTSOF: SusanTormollen VP of Marketing Balihoo
  2. 2. Building a BusinessCase for Local MarketingAutomation March ,2014 Ian Michiels Principal & Managing Director Gleanster Research COMPLIMENTSOF:
  3. 3. Agenda  What is Local Marketing Engagement? Why is it necessary?  What tools are critical to supporting local efforts?  How do you quickly build a business case for Localized Marketing Automation?  Recommendations for making the case stick.  Justification by the numbers.  Best practices for national brands
  4. 4. TODAY’S STATS Total survey responses: 914 PERFORMANCE BASEDALGORITHM All Respondents 2013 LMA Survey (Nov. 2013) n= 265 Digital Engagement (Sept. 2013) n= 649 Top Performers: Respondents that achievedTopQuartile performance in key KPI’s Everyone Else Gleanster Benchmark Stats
  5. 5. Importance of Digital for Brand Marketers Digital is critical to future success I understand how to use digital Lack of time Lack of resources Unsatisfied with digital execution Internal support 84% 61% 76%! ? ? ? * n= 78 Brand Marketers, November 2013 Gleanster LMA Survey
  6. 6. Distributed Marketing Environments HaveUnique Challenges CORPORATE MARKETING LOCALAFFILIATES 86% Top Performers ranking personalized customer engagement as a top 3 imperative for revenue growth in 2014. 74% Local affiliates who believe they have a "better level of understanding about local target audiences” than corporate marketing.
  7. 7. Distributed Marketing Environments HaveUnique Challenges CORPORATE MARKETING LOCALAFFILIATES NATURE OF CUSTOMER RELATIONSHIPS HOLISTIC / BROAD PERSONAL / 1:1 NATURE OFTHE BRAND STRATEGY BROAD / STRATEGIC TARGETED / PERSONALIZED / FLEXIBLE
  8. 8. Distributed Marketing Environments HaveUnique Challenges CORPORATE MARKETING LOCALAFFILIATES NATURE OF MARKETINGTECHNOLOGY INFRASTRUCTURE CORPORATE MARKETINGTOOLS & AGENCIES • Email • DAM • Social Media • Campaign Management LOCAL MARKETINGTOOLS & AGENCIES • Website hosting • Paid Search • Email • Social Media
  9. 9. Distributed Marketing Environments HaveUnique Challenges CORPORATE MARKETING LOCALAFFILIATES NATURE OF OPERATIONAL EXECUTION & EFFICIENCY CUSTOMER DATA CAMPAIGN REPORTING BRAND CONSISTENCY DOMAIN EXPERTISE
  10. 10. Challenges Managing Brand Consistency 68% Brand consistency in locally executed marketing campaigns is a top 3 challenge with marketing communications. CMO SUITE
  11. 11. Redundant Technologies & Fragmented Customer Data 89% Percentage of local marketers utilizing multiple marketing channels in marketing campaigns (email, paid search, landing pages, social media, direct, etc.) LOCAL MARKETING
  12. 12. Lack of Visibility on Campaign Performance 52% Local marketers operated marketing technologies that captured data that was not integrated with corporate marketing platforms. ALL RESPONDENTS
  13. 13. Redundant Spend & Agency Relationships 77% Local affiliates and local marketers that managed relationships with local agencies and consultants to create localized versions of marketing materials (outside of what corporate marketing provided). LOCAL MARKETING
  14. 14. Building a Business Case
  15. 15. If you don’t know these, you have no case. What are you trying to accomplish? • Pressing reasons to implement • Clearly defined challenges • Current-to-future state understanding Quantifiable Benefits • What do we get? • How long will it take? • How much will it cost?
  16. 16. What are Local Marketing Automation Tools? • EmailCampaigns • EmailTemplates • BasicAnalytics • List Management • Drip Marketing • Landing Page Hosting • WebAnalytics • Lead Scoring • CRM Integration • Trigger Marketing • Social Marketing • Preference Management • DynamicTemplates • Permissions & Security • Asset Management • VersionControl • LocalWebsites • Paid Search • Local List Management • Comm. Frequency Caps • Workflow & Approvals • HolisticAnalytics • Co-Op Fund Management EMAIL MARKETING MARKETINGAUTOMATION LOCAL MARKETINGAUTOMATION GeneralCapabilities/Features
  17. 17. Why doTop Performers Invest in LMA? 28% 32% 41% 42% 47% 49% 55% 59% 65% 76% 0% 25% 50% 75% Customer preference management Regulatory compliance Empower local marketers Reduce campaign cycle-time Visibility on marketing effectiveness Control budget variance Personalize local marketing materials Control agency spend Reduce costs Increase revenue Top Performers Revenue Cost / Efficiency
  18. 18. Basics of a Solid Business Case Preparation Understanding Funded Investment
  19. 19. A quick checklist for preparing the business case  Pressing reason to act  Documented current state  Understanding of future state  2-3 options for solving the challenges  Understanding of stakeholders impacted  Expected benefits (Quantifiable)  Timeline  Cost Decision makers need to buy into your initiative over x many others.
  20. 20. Bridging the gap between current and future state Current State Future State??? Is your Business Case • What will we solve? • What is required to solve it? • Who will be involved? • What’s the benefit? • When will the benefit be realized?
  21. 21. Basic Process SwimlaneTool
  22. 22. Stakeholder Management - From 20/20 Project Management - From DocStoc
  23. 23. Let’sTalk Numbers
  24. 24. 3 Benefits to Link to Tangible Return REVENUE Sales AverageOrderValue Up-Selling Cross-Selling Frequency of Sale Customer Retention COST Time Savings (Resource Costs) Agency Spend Technology Licenses Asset Licenses Data Integration and IT Support CUSTOMER EXPERIENCE Personalized Messaging CentralizedCommunication Frequency Management Improved Segmentation BrandConsistency Unified Multi-Channel Communications Percentage of Top Performers that justify ongoing success of local marketing automation by successfully achieving increased QoQ sales objectives. Versus 11% of All Other organizations who claimed the same. 52% Everyone Else Top Performers
  25. 25. Document CurrentStats
  26. 26. On theCost SavingSide of Things
  27. 27. On the Boosting RevenueSide ofThings
  28. 28. Recommendations  Be open to changing processes.  Engage all stakeholders and have a plan for managing them.  Consider a phased rollout.  Benchmark existing stats before starting the implementation.  Marketers who know this stuff have very successful careers because most marketers don’t want to know this stuff.
  29. 29. © BALIHOO 2014 // ALL RIGHTS RESERVED. NATIONAL BRAND BEST PRACTICES
  30. 30. © BALIHOO 2014 // ALL RIGHTS RESERVED. THE LOCAL LANDSCAPE THE SHIFT TO DIGITAL This shift has been a huge opportunity for marketers at the national level… …but has caused a serious problem for brands who rely on local outlets to sell their products. Local marketers can not keep up with the changing landscape. Better Targeting Better Analytics More measurable ROI
  31. 31. © BALIHOO 2014 // ALL RIGHTS RESERVED. THE LOCAL LANDSCAPE THE SHIFT TO DIGITAL Brands who rely on local marketers to execute local: Miss 50% of the local marketing mix And, they potentially miss 50% of consumer interest Your brand needs to be here.
  32. 32. © BALIHOO 2014 // ALL RIGHTS RESERVED. LOCAL MARKETERS PREFERRED TACTICSSOURCE: BALIHOO PLATFORM DATA, 300,000+ AFFILIATE ACCOUNTS $SPENT 97%OF LOCAL MARKETERS 3%OF LOCAL MARKETERS
  33. 33. © BALIHOO 2014 // ALL RIGHTS RESERVED. SUBSCRIPTIONS VIA BALIHOO APPLICATION Search Local Sites Email Direct Mail SUBSCRIPTIONS #OFORDERS 10%WHEN NATIONAL BRAND MANAGES 90%WHEN NATIONAL BRAND MANAGES
  34. 34. © BALIHOO 2014 // ALL RIGHTS RESERVED. THREE MODES OF LOCAL MARKETING AUTOMATION EX: Local marketer accesses web-based LMA system to customize a newspaper ad. They download the ad and place the media directly with the vendor. EX: Local marketer accesses web-based LMA to opt-in to paid search program. Program is executed and results are communicated. EX: Websites published for every local affiliate using known data. Local marketers have the option to access web-based LMA system to modify, but it’s not required.
  35. 35. © BALIHOO 2014 // ALL RIGHTS RESERVED. BALIHOO CUSTOMER RESULTS 15-20% Engagement 80-100% Engagement Triggered email and DM campaigns: 13 to 1 ROI. 80-100% Engagement Page 1 SERP 22:1 Conversion Phone vs. Form
  36. 36. © BALIHOO 2014 // ALL RIGHTS RESERVED. ABOUT BALIHOO Balihoo is the premier provider of Local Marketing Automation technology. Our cloud-based platform allows national brands to think big and execute precisely. A FEW BRANDS WE WORK WITH…
  37. 37. Complimentary Deep Dive ResearchReport IncludesCost and Revenue JustificationsWorksheets
  38. 38. Thanks! Q&A Ian Michiels Gleanster Research @InsightFanatic ian.michiels@gleanster.com SusanTormollen Balihoo @tormollen stormollen@balihoo.com

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