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The definitive guide to marketing automation


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The definitive guide to marketing automation

  1. 1. The Definitive Guide toMarketingAutomation
  2. 2. TABLE OF CONTENTS03 Introduction04 Part One: What is Marketing Automation?13 Part Two: Why is Marketing Automation So HoT Right Now?20 Part Three: How is Marketing Automation Different From...?36 Part FOUR: Common Features in Marketing Automation51 Part five: Business Case for Marketing Automation72 Part six: Getting Successful with Marketing Automation – More than Technology80 Part seven: Buying Marketing Automation89 Part eight: Future of Marketing Automation95 Part nine: Marketo’s Marketing Automation97 Conclusion98 appendix: Key Marketing Automation Experts99 About this guide
  3. 3. introductionwhy should i read the definitiveguide to marketing automation?Every business has one thing in common: the desire to achieve higher revenue and faster growth.But many companies struggle to align their people, processes, and technology to achieve these goals.Marketing automation is the technology This Definitive Guide to Marketing We’ve also included worksheets that youthat allows companies to streamline, Automation is designed to answer any can use to discern whether your companyautomate, and measure marketing and all questions you have about the is ready for marketing automation and howtasks and workflows so they can topic. It will show you what marketing it will help you increase your revenue andincrease operational efficiency and automation is and how it can help your attain your other business goals.grow revenue faster. company. It will show you how to select the right system, and what investments We hope this guide will be your ticket to a are required for success. It will new world of more effective, efficient, and also explain: lucrative marketing. • Why marketing automation is so hot right now • How marketing automation differs from other technologies such as CRM and email marketing solutions • The common features and advanced functions of marketing automation tools • How to build a business case and convince internal stakeholders to act • The future of marketing automation 3
  4. 4. part oneWhat is marketingautomation?
  5. 5. part one: What is marketing automation?some contextLet’s do an exercise. Do you have the ability to look at a list of potential customers and prioritize themRaise your hand if your company has the based on fit with your business andability to send marketing emails. likelihood to buy?I mean it. Don’t just read along – really, Can you filter leads by level of engagementraise your hand. This one’s easy. I’ll wait. and interest in your brand?OK. Now, keep it raised if your company Is your hand still up?can easily create new landing pages foreach campaign. Last question. Keep your hand raised if you can measure the revenue contributionIs it still up? of each of your marketing programs.Now keep it raised if your marketing team If your arm is still up, you probably alreadycan set up all the emails for an event before know what marketing automation is andit starts, and let it run ‘lights-out’. No one you are using it effectively.looking. All parts whirring—and working. Congrats! Give yourself a fist pump, andYes, I know—that one’s a little trickier. Just go ahead and skip to the next section toa few more. I know your arm may be learn why marketing automation is so hotgetting tired. right now. Everybody else… read on. 5
  6. 6. part one: What is marketing automation?Marketing automation definedLet’s begin with a definition:WHAT: Marketing automation is a category of software.HOW: It streamlines, automates, and measures marketing tasks and workflows.WHY: So companies like yours can increase operational efficiency and grow revenue faster.So WHO uses marketing automation?COMPANY SIZES: Large enterprises INDUSTRIES: Companies across allhave long found value in the technology, industries are using it. The earlybut it’s important to point out that adopters were primarily in “business-to-marketing automation isn’t just for big business” (B2B) industries such as Marketing automation is a key technologycompanies. In fact, Small and Mid- high-tech / software, manufacturing, that enables many modern marketingSized Businesses (SMBs) make up the and business services. But increasingly, practices, including:largest growing segment in the companies across all categories –marketing automation technology including “business-to-consumer” (B2C) • Lead generationspace right now. (That’s any company industries such as healthcare, financial • Segmentationwith between $5 and $500 million in services, media and entertainment, and • Lead nurturing andannual revenue.) And thousands of retail – are adopting marketing lead scoringcompanies even smaller than that use automation for its real-time, relationship- • Relationship marketingmarketing automation as well. oriented approach to maintaining and extending customer relationships. • Cross-sell and up-sell • Retention • Marketing ROI measurement Some of these practices are possible at small volumes without marketing automation, but technology becomes essential with any scale. 6
  7. 7. part one: What is marketing automation?Marketing automation definedFeatures of marketing automation platformsFeatures include email marketing, landingpages and forms, campaignmanagement, lead nurturing/scoring, Email Marketinglead lifecycle management, CRMintegration, social marketing capabilities, Landing Pagesand marketing analytics. Campaign ManagementBut hold up. Put that hand down tosteady yourself. We’ll take a deep-diveinto common features in Part Four. Marketing Programs Lead Generation Prediction/Scoring Marketing Lead Management Automation CRM Integration Social Marketing Resource Management Marketing Analytics 7
  8. 8. part one: What is marketing automation?Marketing automation definedWhat marketing automation is NOT We’ve talked about what marketingautomation is. Now we need to coverwhat it is not:1. A fancy name for email marketing 2. A way to send spam – Like anything 3. A solution that only benefits 4. A solution that delivers value– Not even close. Like the term suggests, else, marketing automation technology marketing – Yes, the marketing without effort – If only you could just buymarketing automation encompasses delivers results based on how you use it. department benefits from marketing marketing automation technology, then sitmarketing campaigns across all Yes, it can be used for bad marketing, like automation. But high-quality marketing back and watch the results producechannels—from direct mail and phone spam. But it can also be used for automation usage ultimately is about themselves. But no. Marketing automationcampaigns to online and social initiatives. exceptional marketing that truly connects increasing revenue. When you think about is not a panacea by itself. To deliver, itWhat’s more, marketing automation with customers. it, that’s how things should be. requires the support of a comprehensivecombines robust, insight-focused strategy that integrates the rightcapabilities from your CRM, lead processes, people, content, data, andmanagement system, web analytics more. In other words, success is notplatform, and other systems to create guaranteed. Want to know what it takes?something that’s more than the sum of See Part Six.the parts. That means you get insight thatcan knock company revenue out of sight. 8
  9. 9. part one: What is marketing automation?What marketing automation doesBeyond the time-saving and efficiency benefits of automation, marketing automation enables modernbusiness processes that are essential to any modern marketing department. For B2B companies, thisincludes lead nurturing, lead scoring, and lead lifecycle management. For B2C companies, it includescross-sell, up-sell, and retention. And for all companies, it includes marketing ROI analytics.Nurture relationships with leads that Retain and extend customeraren’t ready to buy. On average, only relationships. The marketer’s job is far20% of leads are sales-ready when they from finished once someone becomes a “Without marketing automation, you are just guessingfirst come in. This means you need a customer. For most industries, the realdisciplined process – known as lead value comes from retaining and deepening – just hoping that people will take the bait and be readynurturing – to develop qualified leads until the customer relationship over time. This to buy your products. Statistics show that buyers don’tthey are sales-ready. Done well, includes selling more of the same productnurturing can result in 50% more to the customer (up-sell), selling additional do that. They want to learn at their own pace and besales leads at 33% lower cost products to the customer (cross-sell), as reached when they need more information or are readyper lead. well as customer loyalty and retention. Note that relationship marketing means more to buy. A well-constructed marketing automationTo learn all about this important process than sending a monthly newsletter. You strategy makes that a reality.”download Marketo’s need multiple tracks for each buyer personaDefinitive Guide to Lead Nurturing and buying stage that “listen” to how the( customer behaves, and adjusts accordingly – just like a real-world relationship. – John McTigue, Kuno Creative 9
  10. 10. part one: What is marketing automation?What marketing automation doesBuild alignment with sales. Prove – and improve – marketing ROI.Many of the so-called “leads” you Marketing automation goes beyondgenerate are not true potential buyers for process automation to help marketing “Marketing automation enables marketers toyour products. You need “demographic executives get much-needed insight into adopt an integrated approach to generating,lead scoring” to find the customers that which marketing programs are working andfit your target profile. You also need which aren’t. It gives CMOs the metrics they nurturing and converting leads into customers“behavioral lead scoring” to find the hot need to speak confidently to the C-suite by automating various marketing techniquesones displaying buying behaviors that about Marketing’s revenue impact.indicate that they are ready to engage and processes to optimize the marketing-with you and make a purchase. And, For more, check out:once you’ve identified a lead as “hot,” The Definitive Guide to sales pipeline. It is rapidly becoming ayou want to make sure Sales follows up Marketing Metrics and ROI. standard practice, with an increasing numberquickly – and in a relevant manner, so ( need integration with CRM and of organizations turning to marketingautomation of processes like sales automation to solve problems, such asalerting, lead recycling, and service levelagreements (SLA). According to the diminishing lead quality, proving contributionMarketo Benchmark on Revenue to the sales pipeline, and difficulty evaluatingPerformance, companies thatimplement this kind of lead scoring enjoy a lead’s readiness for sale.”28% better sales productivity and 33%higher revenue growth than companies – Econsultancy Marketing Automationwithout lead scoring. Buyer’s GuideLearn more by downloading ourDefinitive Guide to Lead Scoring.( 10
  11. 11. part one: What is marketing automation?Worksheet: are you readyfor marketing automation?Use this worksheet to determine if your company is ready to use marketing automation.For each category, select the appropriate Disagree Agree To interpret your results, tally your score. Factornumber. If you strongly disagree, choose 1 2 3 4 5 • If you scored > 35, you’re ready for1. If you strongly agree, choose 5. Thenumbers in between 1 and 5 correspond Our revenue process is complicated. It involves multiple touches from marketing your level of agreement, neutrality, or Marketing and/or Sales. • If you scored between 20 – 35,disagreement. Tally your score when We target sophisticated buyers who do a lot of research before they you’re moving in that direction. Youyou’re finished, and follow the engage with us. should consider getting started withinstructions at the end. Our company requires more insight into the exact value that our marketing automation very soon. Marketing programs deliver, so we can quantify our investment. • If you scored under 20, you may not Our customer base out-sizes our Sales team (assuming you have be ready for marketing automation one), so we lack direct personal relationships with all of our quite yet. But that doesn’t mean you customers and prospects. can’t keep reading! It would be impossible to personally call every potential customer or new lead that we generate. Regardless of your score, there’s good news: where you are now is exactly where Many of our new leads aren’t yet ready to buy from us. They require nurturing. you need to be in order to get more leads, get better leads, and know how to tell the We would improve our sales results if Marketing played a bigger role good from the bad. in our revenue process, particularly as it applies to nurturing relationships with target early stage prospects. So flip over into Part 2, and let’s get this We already use most, or all, of the capabilities of our current email party started. marketing service provider. Data drives almost every decision that our marketing team makes. Our marketing team is generating (or has specific plans to generate) significant amounts of personalized content for our target prospects. **This evaluation was based on research from Gleanster. 11
  12. 12. Thought leader Snapshot:justin gray, CEO leadmdJustin Gray is the CEO of LeadMD. He Just as the combustible engine changed JG: Marketing automation is a journey. If executives experience often. Also, befounded the company in 2009 with the the way we work, then the computer you think it’s at all like a light switch that prepared to admit that you’re notvision of transforming traditional advanced us leagues ahead, and now you can just flip on, you will fail. If you think measuring correctly – or at all – right now.“grassroots” marketing efforts through software is delivered via the cloud – the you don’t need a strategy or can afford tothe use of marketing automation and next revolution of progress lies in just skip over the planning process, you’ll Sounds risky, I know, but hear me out.CRM solutions. connected data. I think we’ll see Marketing also be quick to fail. The reality is that Why admit this? Because you’re not really Resource Management (MRM) emerge marketing automation is bigger than CRM able to measure properly with the archaic,With 13 years of experience in the industry, again as a component of MA – but this and higher on the proverbial food chain of non-integrated tools currently at yourGray has seen the potential for growth in time with ease of use as data. Too many people are treating disposal. Many marketers are looking forthis space and the willingness mid-size a centerpiece. marketing automation as a tool, as if it’s ROI on marketing automation, but thecompanies have to join the SaaS revolution just an email platform, and it’s limiting the kicker is that a vast majority of themas it pertains to their marketing processes. Marketing automation as the mouthpiece growth of the space. As we see the weren’t measuring what they had for forming conversations was step one, ecosystem grow, the respect for it will previously been doing. So, how do youMarketo interview with Justin Gray and now the next step will be to shape this grow as well. And once marketing compare something to nothing? You can’t. platform to listen to, react, and share the automation is treated as a platform forMKTO: What do you think the future of data of other systems in response. The success, it will become precisely that. The first step in selling marketingmarketing automation will look like in the heart of that evolution boils down to automation to your executive team isnext few years? integration. As we expand our skillsets, MKTO: What should you focus on when admitting you have a problem. Then, step best practices, plugins, and apps, we selling marketing automation to your two is using marketing automation toJG: Marketing automation, as it currently develop a true ecosystem – the future of executive team? What are some things establish a benchmark. Wondering wherestands, is software, but it won’t be long marketing automation. This platform will that might resonate with a CEO, CFO, or improvement fits into the process? It’s stepbefore it’s a full platform. I know – that then become much greater than the sum Sales? number three. Too many organizations tryconcept isn’t revolutionary in and of itself, of its parts and will be set apart as the to jump right to improvement, right frombut it’s important to note that skill sets are place where marketers spend their day. JG: Three things comprise the language the beginning. Don’t be that guy (or gal) – itwhat will drive this change. The ecosystem I’m excited. that is spoken by the CEO, CFO, and Head never ends well.that evolves around software takes of Sales – efficiency, scalability, andmarketing automation from being simply MKTO: What are the most important ROI–both tangible and intangible. Leada “tool” into being a real element things you have to keep in mind in order to with these heavy hitters because they’llof change. be successful with marketing automation? translate well to the pain points these 12
  13. 13. part twoWhy is marketingautomation so hot right now?
  14. 14. part two: why is marketing automation so hot right now? trends driving marketing automation Marketing automation is not a new concept. According to the Google Ngram Viewer, the term was first used in 1980, and then started to gain traction in the late 1990s, peaking around 2004. The term then started to decline in usage, reaching a low point in 2007 before it slowly began to rise again. Today, it’s back up near the 2004 peak. Source: Google Ngram View, keyword “marketing automation” Source: Google Trends, keyword “marketing automation”10080604020 2005 2006 2007 2008 2009 2010 2011 2012 14
  15. 15. part two: why is marketing automation so hot right now?trends driving marketing automationThe dot-com boom and bust Today: The rise of The first rise and fall of marketing Software-as-a-Service Solutionsautomation was tied to the dot-com The middle of the 2000s marked another shiftboom and bust. The late 1990s brought for marketing automation, when nextan explosion of marketing automation generation vendors like Eloqua (now owned byvendors, including Annuncio, Aprimo, Oracle), InfusionSoft, and Marketo emerged. AtBroadbase, Epiphany, MarketFirst, the same time, marketing automation started toParagren, Prime Response, Revenio, get hot again – much hotter than before. This isRubric, SAS, Siebel, and Unica – just to likely due to three key trends:name a few. 1. Changing buyer behaviors forcedBut then the bust happened. Not one of companies to change how they marketthose companies (with the exception of and sell.privately-held SAS) survived as a 2. The 2008 recession permanently alteredstand-alone vendor. how companies approach revenue generation and measurement.Some of the solutions are still in themarket today. For example, Epiphany is 3. A new software delivery model unlockedpart of Infor Epiphany CRM solutions; many new sales opportunities.Unica is part of IBM; Aprimo is part ofTeradata; and Siebel is part of Oracle.But overall, the bust left marketingautomation with a somewhattarnished reputation. 15
  16. 16. part two: why is marketing automation so hot right now?trends driving marketing automationTrend #1. Changing buyer behaviorsforced companies to changehow they market and sell.Before the internet and social networks, But this solution posed a challenge of itsbuyers had limited ways to obtain the own: the problem of scale. Self-empoweredpurchase information they needed, so buyers demand relevant, personalized “In a business of any size – especially onethe seller controlled the buying process. conversations on their own timeframe. If you with an engaging web and social mediaBut then buyers moved into the power don’t provide that experience, they’re likelyposition. They could access the to opt out of your communications. But how presence – buyer interactions can numberinformation they wanted on their own do you manage individual dialogues withonline, anywhere and at any time. And hundreds of thousands, even millions, of in the thousands, millions, or eventhey could delay engaging with selling potential customers? hundreds of millions. Without the rightrepresentatives until they knew as much(or more) than the salesperson did. This is precisely why having a marketing tools to automate the planning, execution,For example, think about how you automation platform became so critical in and measurement, even the hardest-approach buying a car. You don’t go to a the mid-2000s. There literally wasn’t anydealer until you know exactly what model other way to keep up with the demands of working marketer can be overwhelmed byyou want, and how much you want to modern marketing. As Lucille Ball famously the complexity.”pay, right? demonstrated at a candy factory, attempts to implement such massive processesTo address the challenge, Marketing without the right systems quickly create – Phil Fernandez, Revenue Disruptionstarted to play a larger role in the revenue colossal messes and lost opportunities.process. They nurtured relationshipswith early-stage prospects until theybecame ready. 16
  17. 17. part two: why is marketing automation so hot right now?trends driving marketing automationTrend #2. The 2008 recessionpermanently altered howcompanies approach revenuegeneration and measurement. No business completely escaped the At the same time, budget cuts made itimpact of the economy in 2008. But while more important than ever to measure thesome organizations hunkered down to effectiveness of their marketingweather the recession, cutting resources investments, even as new highly-and headcount, leading companies measurable digital channels raised therecognized that growth was their ticket not expectation for measurement across allonly to survive – but also thrive. So they channels. Empowered with these newreorganized their processes to increase tools, companies determined what wasrevenue effectiveness. They refused to working and what wasn’t, and thentolerate traditional dysfunctions between scientifically re-allocated their resources tomarketing and sales departments, and operate more strategically. 2008those associated with measurement toolslike spreadsheets. Instead, they invested intechnology that automated andstreamlined critical revenue processes. 17
  18. 18. part two: why is marketing automation so hot right now?trends driving marketing automationTrend #3. A new software delivery model unlocked many new sales opportunities. ConclusionUnlike prior generations of marketing These two factors are critical. Marketing Given this history, you can understand “This is the first time in theautomation, today’s leading companies is unfortunately seen as a cost center at why SMBs are the fastest-growingprovide their solutions using “software as most companies. This made it a group of marketing automation history of B2B marketing ina service” (SaaS) – meaning marketers challenge for marketing to get the capital adopters—because only after marketing which marketers arecould access the tools in a browser with investment and IT support needed by automation software was offered as alittle or no IT support. Also, these traditional solutions. But at the same service could it be available and responsible for purchasingsolutions are sold as a recurring time, marketers have large discretionary affordable to them. This shift drove rapid operating budgets that they easily spend growth in the space. As the industry and managing theirsubscription, so marketers can buythem using operating budgets instead on marketing programs such as began to mature, businesses from all own technology.”of making capital investments. tradeshows, online advertising, and sectors began to cross the chasm and agency services. By enabling companies join early adopters from high-technology – Carlos Hidalgo, ANNUITAS to buy marketing software like any of organizations. Soon, even traditionally these services, the SaaS-based conservative and pragmatic companies marketing automation vendors removed started to use marketing automation, the largest impediment to marketing which has resulted in the phenomenal automation adoption. growth we see today. 18
  19. 19. Case study:algonquin collegeHighlights Challenges The marketing organization is now in a With campuses in Ottawa, Canada’s position to move from basic nurturing to • Improved lead generation by 28% Capital, and across the Ottawa Valley, what they term “advanced nurturing” - year-over-year and increased Algonquin College has over 19,000 where they use a set of elaborate sales by 18% full-time students and more than 36,000 campaigns and triggers to launch relevant, continuing education students. targeted content at the instant the • Lowered cost of distribution prospect expresses interest. This will allow and marketing To generate student leads, the Algonquin to further refine lead • Enabled precise measurement of organization operated essentially in batch segmentation and ensure they deliver the which campaigns are most valuable email mode, leaving the college in the dark right message at the right time. in terms of closing new business in terms of tracking the effectiveness of its marketing content. In addition, because of Benefits • Able to understand what is required the diverse student base, the sales cycle With marketing automation, Algonquin 28% to move prospective students from could range from just a few days to four College has gained deep, actionable consideration to buying years. It was clear they needed a solution insight to determine the content that has that was flexible enough to provide the most immediate positive impact on • Allows Marketing to measure ROI detailed insight into prospect behavior and lead generation, open rates, conversion and take a leadership role in driving the sales pipeline. rates, and closed sales. higher revenues lead generation Solution As a result, they have improved deal flow Algonquin College considered several and are able to move prospects through year-over-year marketing automation products before the buying cycle faster. In fact, the college 18% they ultimately selected Marketo based on has improved lead generation by 28% its ease-of-use and Salesforce integration, year-over-year and increased sales by which were at the top of the requirement 18%, all while lowering its cost of list. However, the college was particularly distribution and marketing. In addition, impressed with Marketo’s ability to provide their ability to measure ROI has first-hand insight into how customers progress through the website, interact with dramatically improved with Marketo, allowing Marketing to take a leadership increased sales landing pages, and respond to marketing role in driving higher revenues. campaigns in real time. 19
  20. 20. part threeHow is marketing automationdifferent from...?
  21. 21. part three: how is marketing automation different from...?contextWe already know that marketing technology is not a new thing. For example, companies already use solutions for emailmarketing and Customer Relationship Management (CRM), so many marketers are confused. What does marketingautomation replace, and what does it complement? Furthermore, how does marketing automation compare to other newtechnologies and marketing trends, such as content marketing, inbound marketing, and social marketing?This section answers those questions. 21
  22. 22. part three: how is marketing automation different from...?relationship to crmMany CRM systems already have a module for marketing, which is why marketers wonderwhether they really need marketing automation to run their modern marketing departments.If you dig into the design and capabilities, In the end, marketing automation systems CRM Marketing Automationyou’ll find that while CRM systems provide focus on the needs of the marketingindispensable value to any kind of sales department in a way that CRM simply Business Goal Track opportunities and Develop customer relationships,organization, the reality is that they fall cannot, while CRM provides a must-have pipeline, manage contact automate marketing programs,short for most marketing departments. solution to the sales department (as well as and account information measure marketing ROICRM systems are designed and optimized many others). Most importantly, given the Departmental Primarily sales and Primarily marketing and marketingfor a very different purpose, which is what advanced integration capabilities of Focus sales management, management, some salescreates the whitespace for marketing today’s platforms, the two categories of some marketingautomation vendors. technology are designed to work together in a way that was never possible before. Communication Individual communications Communications to groups and Style (sales rep to buyer) segments (may be personalizedFrom a functional perspective, CRM Both systems are necessary, and it’s and triggered 1:1)systems typically do not provide necessary to understand what each onefunctionality for things like email marketing, does for you – and what it doesn’t. Architecture Database-oriented, Workflow-oriented, highly detailedprospect behavior tracking, and marketing transactional queries behavioral data queriesprogram management. And it’s true thatmany CRM systems can be customized tohandle things like automated campaignflows, lead scoring, and de-duplication.But it’s hard. “When it comes to marketing automation capabilities, using CRM is like building a car from a kit. All the parts are there, but you need the time and skill to put it all together. Using marketing automation is like buying the car you want or need, with all the features you want already installed and some gas in the tank, ready to drive. In either case, you still need to know how to drive and where you want to go.” – Mac McIntosh, Marketing Automation Expert 22
  23. 23. part three: how is marketing automation different from...?relationship to email marketingVirtually every company has invested in having the ability to send emails to their customers.In fact, MarketingSherpa’s 2012 B2B In reality, much of the email marketing The answer is to use email solutionsMarketing Benchmark report ranks you see today is pretty terrible. Messages that do more—coordinating withemail marketing as one of the top three are untargeted. Their delivery is ill-timed other tools, delivering more dialogues “A marketing automationmarketing tactics. On average, and poorly formatted. It’s no wonder that that build relationships and engage solution delivers essentially allcompanies with over 100 people allocate engagement—the holy grail of email buyers (not companies) on their9% of their marketing budget to email response rates—is falling along with timetables. That’s where marketing the benefits of an emailalone, and those with fewer than 100 declining open and click rates. automation comes in. marketing solution along withemployees up the ante to 16%. Other traditional marketing tools—such integrated capabilities thatThe fact is, email still works really well. as CRM, landing pages, social media,But the world is changing. The inbox is and web analytics—only compound the would otherwise need to befragmenting like never before. Marketers problem. Because they don’t integrate cobbled together using varioushave to deliver their messages in more with the email solution, email is left in aformats to multiple devices. And their silo. It suffers from limited segmentation, standalone technologies.”messages have to be more relevant, and creates excessive amounts ofdelivered more frequently, and somehow administrative work for marketing teams – Gleanster Researchstill make it into the “most important” who endeavor to connect theirsection of their buyer’s inbox. processes and consolidate reporting manually. Costs quickly escalate for ad hoc solutions that deliver poor ROI, and revenue flounders because companies deliver inconsistent, unpersonalized experiences to their customers. 23
  24. 24. part three: how is marketing automation different from...?seven signs you need tograduate from emailSeven Signs You Need to 6.Graduate from Email to 7.Marketing Automation sad sales can’t tell if emailThere are 7 signs that will indicate that yourcompany is ready to graduate from email team is driving pipelineto marketing automation. or revenue 1. Email blasts, not customer dialogues 3. email in a silo 5. trigger insensitivity 2. wasting time on manual campaigns 4. difficult oR imprecise targeting & segmentation 24
  25. 25. part three: how is marketing automation different from...?seven signs you need tograduate from email1. You’re sending email blasts rather 2. You’re being inefficient by wasting 3. Your email marketing exists than engaging in customer dialogue. time on manual campaigns. in a silo. Email is divorced from your otherCustomers are savvy. They don’t want to Consider ShipServ, the world’s leading customer interaction channels. It would be “While there’s certainly value inbe blatantly marketed to, and they are marine marketplace. Before they started awkward to walk up to a customer ingetting better and better at screening out using marketing automation, they had a person and start a conversation without using marketing automationmass emails. However, customers are set of marketing tools, but were ineffective referencing the conversation where you solutions to send email, andwilling to engage with relevant content, when it came to nurturing customer left off last time you talked. Yet that isand they’re willing to build relationships relationships. They could see the open rate exactly what happens with most marketing create landing pages andwith companies that they like, who on an email campaign, but they had no emails. In addition, email marketing website forms, it’s a bit likeapproach them in the right way. In order to way to take the next step and respond to platforms are generally divorced from webengage in a relevant customer dialogue, these stats in an automated way. As a site pages. using a supercar to drive Missyou need what we call “multi-step drip result, they were constantly analyzing data Daisy around town.”campaigns” to nurture your relationships manually, creating lists and setting A customer who clicks through to yourwith customers patiently, over time, and calendar notices in order to simulate a company’s web site after receiving anmove them through their purchase journey. personalized marketing experience for email campaign becomes lost. You’re each customer. Needless to say, this leaking opportunity because your emailThe first step in making your email blasts difficult and cumbersome task limited their marketing is unrelated to other marketing.engaging is to map out workflows, but it’s ability to scale their business. Instead ofimportant to note that the workflows must being able to clone and individually tweakbe adaptable — never static. You should similar campaigns, they were stuckalways adjust your email campaigns to the building fresh campaigns from scratchresponses and behaviors of your each time — a huge time-suck.prospective customers. This is wheremarketing automation comes in. Without it,you are limited to “batch and blast” emailcampaigns that are based on your owntimetable — not the buyers’. You’redecreasing your ability to get relevantcontent to your customers on time. 25
  26. 26. part three: how is marketing automation different from...?seven signs you need tograduate from email4. Your segmentation and targeting works for. In addition, behavioral filters— 5. You have “trigger insensitivity”are subpar. This is arguably the most which web sites customers visit, what problems. Triggers are the ability toimportant of the seven signs. The ability to keywords they click on, what they say on listen and respond in real-time with a “Marketing automation isprecisely micro-segment your database social networks—are key metrics. If your one-to-one response that goes breaking free of email.”and target your list of leads and contacts email exists in a silo, you’re missing out directly to the customer displaying ais a crucial part of your marketing on the ability to target the right people in particular behavior. Real-time triggers – Eric Wittlake,campaign. An old (and still valid) rule of the right way based on their behaviors. can include:thumb is that 50% of your success in a B2B Marketing Expertcampaign comes from how well and how Jupiter (now part of Forrester) did a study • When a customer visits a web pagespecifically you target your list. The more a few years ago and found that • When a customer fills out a formyou target, the more relevant your companies who target their emails • When a customer’s leadmessage, the better your response based on behavior have up to a 350% score changesrates… and your economics. increase in open rates and a 50% • When an opportunity is updated increase in conversions. That’s a lot. in the CRM systemGood targeting today means bothdemographic and firmographic filters— It’s also important to know where your • When an activity is loggedin other words, who the person is, and if buyer is in their buying cycle. Are they an When any of these activities occurs,necessary what company the person early-stage prospect? An active lead? marketing automation can trigger an email An engaged customer? Without a way to to that customer. It’s relevant and timely. segment your customers according to And timeliness is everything where they are in the buying cycle, you with marketing. can’t send the right message at the right time. According to research done at MIT recently, the difference between following up to a customer hand-raise in 30 minutes versus 5 minutes means the difference between a 100 exchange in the contact rate and a 21 exchange in the likelihood of actually qualifying that lead. 26
  27. 27. part three: how is marketing automation different from...?seven signs you need tograduate from email6. You can’t tell if your email is 7. You’ve got a “sad Sales team.”driving pipeline or revenue. Email They don’t know which leads are good orplatforms can tell you about open rates who to follow up with, and they can’t send “I can explain a move from an Email Service Providerand click-through rates, but what you their own marketing emails. When youreally need to find out is which activities don’t have Marketing and Sales working (ESP) to a marketing automation platform with anare leading to actual revenue. If you can’t closely together, Sales becomes analogy – still photographs versus video. ESPs are likemake this connection, you can’t frustrated and sees less value indetermine marketing ROI. Marketing. Sales and Marketing must be still photographs – you can get great stats from using closely aligned for success. one, but each campaign is effectively a snapshot in time. Marketing automation platforms are like videos – you can see the behavior of people in multiple campaigns over time, taking all the snapshots and connecting them together to make a “flip movie” or video out of them.” – Joseph Zuccaro, Founder and President of Allinio LLC 27
  28. 28. part three: how is marketing automation different from...?relationship to inbound marketingInbound marketing is: The process of helping potential customers find your company – often before they areeven looking to make a purchase – and then turning that early awareness into brand preference, whichultimately creates leads and revenue.Inbound marketers create relevant and • Better brand preference. Where Inbound compelling content to attract and convert Brand preference trumps brand Marketing Falls Short leads—for the purpose of building awareness any day, so inbound Inbound marketing is a highly effectiveaudiences and attracting attention. Their marketing builds preference by strategy, but it will fail for most companiesjob is not to find leads, but to help leads engaging with buyers early, often if executed alone.find them. before they are intending to make a purchase. All other things being Two of the most critical limitations are:Inbound marketing can deliver: equal, people are more likely to buy from a company with whom they 1. It’s hard to target specific 2. Inbound marketing doesn’t • Increased brand awareness. have a relationship. audiences with inbound marketing. motivate people to act. By definition, Buyers must find you before they can Inbound marketing can’t effectively reach inbound marketing waits for buyers to take buy from you. If your company shows • More leads for less investment. a specific set of contacts—for example, action when they’re ready. It’s not a good up high in the search results, you’ll get Inbound marketing has a tendency to decision makers at a list of target solution when you need someone to act “free” brand awareness when build on itself. Great content pays off accounts. To use a military analogy, on a specific timetable, such as signing up customers seek information. Also, you dividends for a long time, multiplying inbound marketing is like an “air war.” It for an event. All good marketers readily earn highly relevant brand exposure as you create more content. allows you to efficiently carpet-bomb acknowledge inertia and recognize that when they share your content. broad areas, but it’s harder to use it to hit people sometimes need a push not a pull, specific targets. In contrast, you need to take action. This is especially true for “ground war” tactics (think Marines and targeting pragmatists and late adopters snipers) to target specific objectives and who don’t actively seek out alternatives hold territory. and new solutions. 28
  29. 29. part three: how is marketing automation different from...?relationship to inbound marketingMarketing Automation + Inbound Marketing TogetherBecause of the limitations of inbound Above all, it’s critical to remember that “The best marketers are usingmarketing, a complete marketing inbound marketing is a strategy, not a both inbound marketing andstrategy needs to incorporate a full technology. Many technology solutionsportfolio of approaches, including can help with inbound marketing, including marketing automationevents, webinars, email, and blog software, content management, SEO, together, and they areadvertising—plus inbound tactics. and social media monitoring. These can sit alongside a marketing automation getting great returns.”To extract the maximum value from solution. So, definitely pick the rightinbound marketing, companies need to inbound marketing tools and the right – Greg Head,combine it with relationship marketing, marketing automation platform for yourscoring, and other components of business, but don’t handicap yourself by CMO of InfusionSoftmarketing automation. We call this the thinking of it as an either-or proposition.Inbound Marketing Multiplier. Without it,you simply generate raw names for yourbusiness – without turning those namesinto leads and customers. 29
  30. 30. part three: how is marketing automation different from...?relationship to inbound marketingCommon Misconceptions The reality is, marketing automation is a Misconception Responseabout Marketing Automation tool that can be used for good marketingVendors who promote inbound marketing that people love, or bad marketing that Doesn’t build the list Complete marketing automation systems include functionalitytechnology like to pit inbound marketing people hate. It’s not the tool itself but how for lead generation, including online and offline events, pay-per-and marketing automation against each it’s used that matters. In fact, in most click, and tradeshows, as well as organic programs such asother, vilifying marketing automation as a cases, marketing automation provides social and content marketing.source of robotic communications and behavioral segmentation and 1:1 targeting Too narrow, too email While modern marketing automation started with email, manyunwanted spam. But while this “good” vs. capabilities that improve the relevance of focused platforms today provide a single source of truth for everything“evil” debate may make good copy, it communications. you know about a prospect or customer. They combineoversimplifies the problem and favors an information from your CRM system, social activity, your websiteisolated agenda. Here are some of the inaccurate claims and blog, buyer purchase history, and other behavioral made about marketing automation. information. With this complete view of a customer’s needs and interests, you can trigger relevant interactions at the right time, over any channel. Not Social Today’s marketing automation systems directly provide or integrate with social capabilities including social profiles, campaigns, sign-on, and promotions. This means you can trigger marketing actions based on any of these activities, such as making a tweet, sharing a post, and so on. Ignores customers Marketing automation is not just about new business. The same segmentation and nurturing capabilities can and should be used to develop and deepen relationships with customers, not just prospects. 30
  31. 31. part three: how is marketing automation different from...?relationship to social andcontent marketingSocial marketing has become an integral part of the marketing mix, and content marketing plays anincreasingly dominant role as well. But while social and content marketing are both hot tactics for buildingawareness and generating leads, they still require marketing automation to convert those leads into revenue.Without marketing automation, you also can’t measure the effectiveness of these programs.Social marketing is the process of Content marketing is the process of The Need for Automationbuilding relationships online on social creating and distributing highly relevant Like inbound marketing, social and “Marketers are beginning toplatforms and influencing buyers even and valuable content to attract, acquire, content marketing are essential ways tobefore they’re identified as potential leads. and engage clearly defined and adapt to and leverage changing buyer realize that the quality of understood target audiences—with dynamics in today’s era of information content is crucial to successA few years ago, everyone was talking the objective of driving profitable overload. Clearly, all three strategies deliverabout the importance of social listening, customer action. results and should be part of any in both lead generation andalong with having a presence on sites like marketing portfolio.Facebook and Twitter. Today, the Content strategies operate on the lead nurturing. Marketingconversation has shifted. Leading belief that buyers will ultimately reward But don’t forget that these three tactics are automation will yield highermarketers recognize that social is more businesses who deliver consistent, also all mostly “Top of the Funnel” (TOFU)than just a channel or tactic; it is a strategy ongoing information with their business strategies. In other words, they build conversion rates and ROIthat should be present in every aspect of and loyalty, so the ROI of your content awareness and can generate new names because campaigns areyour marketing. Leading marketers ask marketing hinges on your ability to for your database. However, the vastthemselves, “How can I entice and communicate with prospects and majority of these leads will not be ready to better targeted towards theengage my audience to share my customers without selling. When content make a purchase—particularly because right persona and utilizemessage and be a brand ambassador? offers relevant and valuable information good content, inbound, and socialHow can I socialize every campaign?” that makes buyers more intelligent, marketing tends to entertain and inform consistently high quality, instead of pitching products or services, broadly, rather than promote specific buyers look forward to receiving it. They products. In other words, while highly relevant content.” also engage with your content, and effective, these three tactics cannot deliver amplify your message by sharing it with revenue on their own. –John McTigue, their networks. Kuno Creative 31
  32. 32. part three: how is marketing automation different from...?relationship to event marketingEvent marketing serves as an important way to connect in person with potential customers. Events also offerthe unique opportunity for prospects and customers to interact with solution providers and get a firsthandsense of the company’s focus, perspective, and personality.Events help: While you can’t automate all aspects of a great event, there are many areas where • Generate leads technology can play a significant role in making that event seamless and • Build brand awareness professional. For this reason, the event • Increase customer and technology category is growing fast. This Marketing automation + Event technology prospect engagement includes webinar platforms, virtual event equals the ability to run dozens or hundreds of providers, and event registration solutions. great events with minimal work. • Educate your market Marketing automation complements and integrates with such event technology solutions, thus eliminating the need to waste time manually importing data from each platform and risk costly errors. It also provides direct event capabilities itself. Examples include email invitations, registration landing pages, reminders and follow-ups, and event reporting and analytics—and the ability to clone previous events to streamline the process and increase productivity and efficiency. 32
  33. 33. part three: how is marketing automation different from...?relationship to RevenuePerformance management (rpm)At the end of the day, revenue is every company’s most important objective.Revenue Performance Management (RPM) is a strategy to optimize interactionswith buyers across the revenue cycle to accelerate predictable revenue growth.RPM arose out of marketing automation Revenue Performance Managementas a strategy to optimize interactions with transforms the way Sales and Marketingbuyers across the revenue cycle. work together. In order to achieve this kindMarketing automation itself is not always of transformation, RPM requiresa CXO-level priority, but every company companies to address their organization,has an objective to improve revenue compensation and incentives, job roles, Without marketing automation, performance. RPM bridges this gap by and work practices as well as their Revenue Performance Managementshattering obsolete approaches to technology infrastructure. It’s important to (RPM) can be slow, error-prone, andMarketing and Sales while providing the note that RPM is a business strategy—not inconsistent across an organization.blueprint for building a far more effective a technology. But it requires marketingand efficient revenue process in automation tools for implementation.companies of all sizes. 33
  34. 34. part three: how is marketing automation different from...?relationship to RevenuePerformance management (rpm)Six Sigma for RevenueOver the last couple of decades, we’ve Now, we need to apply that same rigor to The sales process needs to start withseen other core business processes the demand chain, which is why we’re marketing, and the same trackingundergo fundamental transformations to seeing the rise of Revenue Performance methods need to be applied to the entireimprove efficiency, quality, and Management. RPM is doing for revenue process, from start (marketing) to finishcontributions to profitability. In the 1980s, what earlier process transformations have (the sale) in a single integrated revenueGeneral Electric, under the leadership of accomplished for other key business model. RPM is creating a new mindsetJack Welch, started a trend by instituting functions. In the 1980s, it was Six Sigma. that maximizes a company’s revenuethe Six Sigma set of practices to improve In the 1990s, it was Supply Chain by merging the Sales andtheir manufacturing processes and Management. In the early years of the Marketing processes.eliminate product defects. Six Sigma 2000s, there was Agile Development. All offocuses on measuring, analyzing, these revolutionary processes have led us To achieve breakout revenue growth,improving, and controlling company- to where we are today: RPM. businesses need to transform everywide business processes. It has created aspect of how they create revenue. Theya lot of opportunities for the supply chain Traditionally, companies have been must re-think the roles, responsibilities,in enterprises because of a continuous focused on the sales cycle. But in a world metrics, and processes that are used byfocus on measurement and improvement where Marketing is taking more and more their departments on the front-line ofof processes. responsibility for revenue, just analyzing revenue creation—specifically Marketing and perfecting the sales cycle is no longer and Sales. enough. A key principle of RPM is aligning Marketing and Sales. From the buyer’s We’ll see more of RPM in Part Five, where perspective, there is only one buying we talk about Marketing Automation cycle, but from a traditional company Maturity. You can also take a side trip to perspective, Marketing and Sales our RPM cheat sheet at cycles have always been separate. 34
  35. 35. Thought leader Snapshot:jason kort, editor formarketing automation timesJason Kort is a Senior Consultant at MKTO: What are the most important Process: Having a repeatable business Recently I helped a customer troubleshootakaCRM and one of the forces behind things you have to keep in mind in order to cycle allows for a more predictable their marketing automation solution. TheirMarketing Automation Times, a blog be successful with marketing automation? marketing ROI. internal team tried to fix the issue and wasdedicated to providing the latest news and so frustrated that they hired me as aninformation on the world of marketing JK: You would not build a house without Reporting: Learn much more than who outside resource. Once inside I found thatautomation. Jason is an experienced a blueprint and yet many companies rush clicked what and when. With marketing there were some simple fixes that resolvedonline marketing professional with a history into marketing automation without a automation you can monitor prospect the problem and allowed the customer toof developing personalized, relevant and plan. Marketing automation is a tool behavior throughout the purchase process start using the solution. The marketingtimely communications to help businesses that requires careful planning for it to and target relevant messages that matter. automation company involved alsoclose more sales. be successful. You can also better understand what type agreed to do more end user training of content works as well as messaging. with the customer.Marketo interview with Jason Kort It all starts with great content, so always start with an audit of your marketing The Power of Now: Instant notifications The point of this story is that oftenMKTO: What do you think the future of materials. After that, build customer and lead scoring allow your sales team to technology needs a helping hand from amarketing automation will look like in the personas to understand what your quickly react and reach customers when human being. Make sure your marketingnext few years? customer needs and then match the right they are ready to talk. automation provider can provide you content with those customers. with help.JK: The end user experience will continue MKTO: What are the most importantto improve as each marketing automation Think of marketing automation as the things to look for in a marketingcompany deploys more of the same pipeline for delivery and reporting. automation vendor?design interface that can be found on the Content is the fuel that fills the pipeline.consumer web (i.e. Apple, Google, JK: Like many industries, I think service isAmazon). Passive reports and MKTO: What are some benefits of the most important element in selecting adashboards will be replaced by more marketing automation that you would marketing automation vendor. Theactionable reporting elements as the point out to someone who is considering technology platform is important but theultimate goal is to help Marketers be better switching from their Email Service program that trains and supports yourMarketers. CRM integration will continue to Provider (ESP)? team is equally important.advance and those relationships will growstronger. The customer wants a one-stop JK: Automation: The ability to haveshop for all customer marketing activities. multiple campaigns triggered based on activities is a huge time saver. 35
  36. 36. part fourcommon features inMarketing automation
  37. 37. part four: common features in marketing automationfeatures overviewMarketing automation platforms provide broad functionality including email marketing, landing pages andforms, campaign management, lead nurturing/scoring, lead lifecycle management, CRM integration, socialmarketing capabilities, and marketing analytics.Each vendor has different strengths andcapabilities across these categories, sowe’ve also indicated how common eachfeature is in the tables below: common Variance sometimes 37
  38. 38. part four: common features in marketing automationEmail and online marketing COMMON VARIANCE SOMETIMESEmail marketing is the often the most Real-Time Triggered Emails Testingimportant online marketing channel and is Triggered emails give you the ability to listen for An effective split-testing strategy drills into whateven more powerful when combined in a specific customer behaviors and events and works to maximize response rates, and can raisesingle platform with landing pages and respond with an appropriate real-time email. For your conversions by 48% or more, according toforms. Marketing automation systems can example, when a prospect clicks on a specific MarketingSherpa. You can test emails (subjectusually replace an email service provider link, a sales rep logs a call, or a lead score goes lines, copy, graphics, calls to action, frequency,(ESP), though the depth of email above a certain threshold, you can automatically timing, etc.) as well as landing pages, forms,functionality does vary across vendors. send the right message at the right time. and so on. Personalized, 1:1 emails based on real-time behavioral data can increase open rates by 50% Dynamic Content and conversion rates by 350% Emails and landing pages that have been (Jupiter Research). customized for specific segments drive much higher engagement. Customize text, images, Batch Email Marketing Landing Pages and calls-to-action based on criteria, including Email marketing is the ability to create The landing page is an essential part of many location, industry, job title, and much more. “what-you-see-is-what-you-get” (WYSIWYG) marketing campaigns. By directing clicks to a For example, send different messages to emails and newsletters with easy-to-use design landing page customized for a specific email current active opportunities than to early- tools, send emails to groups of customers and rather than a generic home page, marketers can stage prospects. prospects, and track and report on deliveries, significantly improve their conversion rates. That’s opens, and clicks. It gives you a complete view why many marketing automation systems include Mobile Optimized of email performance. the ability to build WYSIWYG pages with a As mobile devices become increasingly popular graphical interface, without help from IT or the in business, the marketing system must support Email Deliverability and Web department. mobile-optimized emails and landing pages. Reputation Management Simply sending emails cannot impact revenue if Forms Sales Emails the emails do not make it to the recipients’ Registration forms can be placed on landing This is the ability to personalize “from addresses” inboxes. Since marketing automation typically pages, microsites, and corporate websites. When and signatures on behalf of individual sales reps, replaces a stand-alone email service provider a prospect or customer fills out the form, it so that automated emails appear to come from (ESP), your vendor should offer functionality and captures the activity and adds the lead to the the specific sales owner. services to ensure inbox delivery. This can include database (if new). Some systems have opt-in management, bounce handling, “progressive profiling,” which are smart forms that unsubscribe processing, and suppression lists, recognize known visitors and ask different as well as higher-end services such as dedicated questions to build out the profile over time. Some IP addresses and capabilities like email preview, systems also allow for “social sign-on,” letting spam checking, link validation, and users register on landing pages using their delivery monitoring. social credentials. 38