2 25991 deep_dive_new_rules_of_digital_engagement_12-2012


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2 25991 deep_dive_new_rules_of_digital_engagement_12-2012

  1. 1. December 2012 Deep Dive The New Rules of Digital Engagement As 2012 comes to a close, it’s a great time to take stock of lessons learned and emerging best practices in marketing – especially with About the Pie Chart respect to digital engagement. Emerging channels, data proliferation, The data presented in the pie and changing consumer preferences leave many marketers chart is derived from the Q3 2012 Marketing Automation survey overwhelmed. It’s hard enough to stop and reflect on what is and isn’t (n=243). The data serves as the working in your own marketing department, much less benchmark basis for this Gleansight Deep Dive, which provides analyst commentary performance among competitors. This Deep Dive takes a closer related to a particular aspect of the look at the most notable trends and lessons learned in 2012, and the topic. The objective is to provide additional perspective and illuminate implications for 2013 marketing strategy. We will explore best practices certain key considerations regarding in the context of Top Performing organizations to identify exactly how the implementation of the related technology-enabled business initiative. industry leaders are positioned for success in 2013, and where the average organization typically falls short in digital engagement. Additional survey data utilized: »» Q4 2012 Gleansight benchmark report on Revenue Performance Management (n=158) 89% To learn more about Gleanster’s research methodology, please click 68% here or email research@gleanster.com. You’ll learn: ercentage of Top Performers that regard “Generate • Critical strategies that should Percentage of Top Performers ranking “online marketing channels” as a be incorporated in yourmer Insights” as a top reason to monitor Social Media top three source of competitive advantage in 2012. 2013 marketing plan • How Top Performing organizations approach digital engagement to maximize success Lessons Learned from 2012 agnostic approach to marketing • How to avoid pitfalls and lessons communications. But let’s face it, learned by Top Performers in 2012 Digital channels have forever changed nothing really changed significantly marketing. Today we don’t tell – we in 2012. The goals are largely the guide, engage, and contribute to same – revenue growth, market share, earn share of wallet. Competition customer satisfaction, etc. These are all is fierce, informed target audiences great goals, but without a strategy every are bombarded with messaging, and path seems equally likely to lead to a yesterday’s tactics have reached successful outcome. Note: This document is intended for individual diminishing returns (and can even have use. Electronic distribution via email or by posting on a personal website is in violation of a negative impact on top line success). the terms of use. At the end of the day, what differentiates The new rules of digital engagement a Top Performing organization from demand a customer-centric, channel- Entire content © 2012 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction prohibited.
  2. 2. The New Rules of Digital Engagement for 2013 2 Everyone Else is strategy. At times this expectations for personalization strategy is informed by best practices, among decision makers. Having said but many times Top Performers that, marketing automation is still anTop Performers Defined are early adopters of emerging emerging technology, and the volumeGleanster uses 2-3 key performance technologies, tactics, and processes, of companies that have invested inindicators (KPIs) to distinguish “Top so they have to learn the hard way. As marketing automation is still very low.Performers” from all other companies(“Everyone Else”) within a given data Ernest Hemingway once said, “It is good As a result, early adopters are settingset, thereby establishing a basis to have an end to journey toward; but it the bar with respect to personalization,for benchmarking best practices.By definition, Top Performers are is the journey that matters, in the end.” leaving a window of opportunitycomprised of the top quartile of Gleanster conducted over 30 marketing that gives them an advantage whilequalified survey respondents (QSRs). surveys in the second half of 2012, and competitors catch up. Over time,The KPIs used for distinguishing Top the results continue to highlight the fact marketing automation will likely becomePerformers focus on performance that old habits die hard. Indeed, the bar a competitive parity, especially for B2Bmetrics that speak to year-over-year improvement in relevant, is actually quite low for Top Performers marketers.measurable areas. Not all KPIs to achieve a competitive advantage.are weighted equally. The KPIsused for this Gleansight are: Most organizations have yet to embrace Despite continued growth in marketing a channel-agnostic preference engine automation adoption, research • 12-month change in revenue also suggests old habits die hard. for customers. Most organizations still • 12-month change in don’t do a great job segmenting target Diminishing returns on generic lead-to-sales ratio audiences or developing targeted messaging and batch-and-blast • Growth in new customer communications. Most organizations campaigns often form the basis acquisition don’t rely on campaign ROI to inform for justifying marketing automation future strategy. As a result, there is a investments. Some organizations window of opportunity in 2013. Despite reported click-through rates on mass years of talk about personalization, email campaigns as low as 0.3 to relevance, and customer dialog, the 0.5 percent. Rented lists are just not average organization does a poor job effective any longer. It’s about earning with digital engagement. the right to communicate with prospects through opt-in or even double opt-in That said, there are a number of new tactics. But research shows that 85% and emerging areas that marketers of all respondents continue to rely on should take stock of in 2012. The generic messaging tactics, even after proceeding sections highlight some of implementing marketing automation the key lessons learned in 2012, and the (see Figure 1). implications for 2013. Figure 1: Using Marketing Automation - Sending Validation for Marketing Batch Emails Automation 2012 was a great year for marketing automation. Adoption of marketing automation tools grew at an estimated rate of 25-30% in 2012. Research indicates that Top Performing organizations are 4x more likely to invest in marketing automation toolsNote: This document is intended for individualuse. Electronic distribution via email or by than Everyone Else. Top Performersposting on a personal website is in violation of use marketing automation to automatethe terms of use. relevant and timely engagement and meet today’s exceedingly highEntire content © 2012 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction prohibited.
  3. 3. The New Rules of Digital Engagement for 2013 3 In fact, only 23% of all respondents the top five milestones Top Performers actually engage in trigger-based accomplish in the first 30 days with communications initiated by prospect or marketing automation (see Figure 2). customer behavior. Gleanster survey results also reveal a Further analysis reveals that two year-over-year increase in the numberPeople and Process Remain primary challenges impede best of survey respondents indicating theiras Important as Technology practice adoption of marketing company had used more than one automation: general knowledge of lead marketing automation solution. On oneOne thing that hasn’t changed in 2012 is nurturing tactics, and finding the time to hand, the fact that organizations seekthe need to revisit marketing and salesprocesses as part of the implementation manage the tool on an ongoing basis. to replace the capabilities marketingof marketing automation. Automation One common mistake organizations automation brings to the table bywill only accelerate mediocre resultsunless organizations address people, make when investing in marketing trying new and different solutionsprocess, and technology value drivers. automation is over-engineering the is another testament to the value ofVendors have a vested interest in implementation process. There’s no these solutions. On the other hand,teaching customers how to leverage need to create complicated and highly this suggests that ease of use and thethe tool and services, and learningprograms are starting to become an customized communication strategies. user interface (an otherwise subjectiveout-of-the box deliverable for marketing Survey results from Top Performers criteria) are increasingly playing aautomation investments. However,it’s important to think of the long-term shows that within the first 30 days, role in how organizations evaluatestrategy for training and supporting Top Performers are capable of using the success of marketing automationthe tool. What happens if the person more features and benefits from investments and/or embrace the toolsmanaging marketing automationleaves the organization or takes a marketing automation than most other altogether. Today, the landscape fornew role? That’s another reason it’s organizations accomplish after the first marketing automation includes robustimportant to avoid overcomplicating theconfiguration – it becomes that much year of adoption. It turns out that Top tools that meet the most sophisticatedharder for new personnel to understand. Performers simplify adoption by limiting requirements of a large enterprise as configuration and customization on a well as the basic capabilities needed by new implementation. Figure 2 identifies small and midsize businesses. Figure 2: Key Milestones for the First 30 Days with Marketing Automation (According to Top Performers)Note: This document is intended for individualuse. Electronic distribution via email or byposting on a personal website is in violation ofthe terms of use.Entire content © 2012 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction prohibited.
  4. 4. The New Rules of Digital Engagement for 2013 4 Fragmented Systems In the age of the empowered customer, the only way to rise above the marketing Reach a Breaking Point noise and capture mindshare is through The average organization supports relevance and personalization. As such, marketing with two or more marketing what is actually needed is a multi- technologies. One of the biggest channel digital platform that can engage challenges cited by CMOs in 2012 customers based on business rules was the proliferation of data and the and customer preference management. complexity of managing disparate Marketing automation grew in popularity solutions. One of the key takeaways because it largely integrates email, from 2012 regarding the new rules of web analytics, landing page hosting, digital engagement is the idea that webinars, events, social media, and customers are channel agnostic. mobile data and makes that data Customers don’t evaluate each actionable through automated business interaction in the confines of a marketing rules. It’s not about executing separate channel; it’s the holistic customer campaigns on separate channels, it’s experience that matters. Fragmented about orchestrating a communication marketing technology investments (such strategy and engaging prospects based as web analytics, email marketing, on customer preference. That’s just landing page hosting, social media not possible with multiple fragmented marketing, list management, etc.) systems. Research from the Q2’12 ultimately leave marketers with disparate Campaign Management survey sources of customer data. While these revealed that 85% of Top Performers disparate offerings were a necessity are currently engaging in or planning a decade ago, today the need for on a system consolidation initiative in consolidation has never been greater. marketing (versus 44% of Everyone Else). That makes Top Performers Over the last five years, Top Performers almost twice as likely as Everyone displayed a clear affinity for centralizing Else to start positioning marketing all customer data within CRM solutions. communication infrastructure around the As such, organizations turned to channel-agnostic customer.What Is Big Data? pre-configured modules that integrated with CRM rather than custom APIs andOne widely accepted definition refers Big Data Is Not a Fadto big data as “data that is so large configuration. From a data managementand complex it has outgrown the standpoint, this is the right approach A quick check on Google Trends revealsability to aggregate and process it the term “big data” saw exponentialfrom a single database or repository.” because CRM becomes the coreThink about accessing all the different system of record for customer data growth in search results from 2011 tocustomer data in your organization (and both marketing and sales). As 2012 (see Figure 3). While it may not beacross every marketing interaction; such, modules and pre-configured a key line item on the 2013 marketingnow layer in finance, operations,sales, and customer service data. integration have been a common strategy, big data has the potential toThat’s big data, and it’s far too profoundly impact the way marketersmuch data for one database. differentiator for marketing technology providers. But integrating multiple justify investments in technology and separate marketing technologies within optimize marketing execution. Today CRM still doesn’t entirely address the customer data is the number one problem. Meanwhile, in many cases the catalyst for big data initiatives, and level of out-of-the box integration from marketers have the most to gain fromNote: This document is intended for individual pre-configured modules may not be as better use of customer data. Whenuse. Electronic distribution via email or byposting on a personal website is in violation of robust as desired. you think about the massive volume ofthe terms of use. data the average organization collects on a daily basis, and how much of thatEntire content © 2012 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction prohibited.
  5. 5. The New Rules of Digital Engagement for 2013 5 Figure 3: Google Trends Search Results: “big data” data goes largely untapped, it’s not can be used for data-driven decisions hard to understand why the term “big and engagement. If the data exists, data” became popular. Web analytics then business rules can be applied data, customer purchase data, social to that data to trigger highly relevant media interactions, customer segments, communications. Despite years of behavioral attributes and demographics research and recommendations on – all of it grows exponentially over time, “automating marketing with data,” particularly with repeat purchases from organizations still struggle to do this loyal customers, new products, etc. effectively; big data could potentially It’s a problem that has reached epic mitigate this challenge for marketers proportions in 2012, and it will only (see Figure 4). continue to expand. Figure 4: Does your organization regularly make Overall, marketers love to hate the marketing decisions using term big data. It’s not really sexy, it’s measurement and data? not clearly defined, and it seems an awful lot like something IT should worry about. However, big data has some implications for marketers moving into 2013, and it makes sense to at least be aware of them. Real-time access to marketing analytics. Big data solutions include software and hardware that align structured and unstructured data from different systems and make it accessible for business users (marketers for example). As we move into 2013, Shift in marketing expectations. companies are still laser focused on Big data demands a business top-line growth, and investments in justification from the CMO suite, but the revenue-generating infrastructure CIO will be paramount to execution. As continue to be easier to justify than a result, CMOs and CIOs need to startNote: This document is intended for individualuse. Electronic distribution via email or by productivity and operational efficiency. developing a three-five year roadmapposting on a personal website is in violation of As such, marketers need to be thinking for marketing technology investments.the terms of use. about how consolidated customer data Keep in mind that eight out of 10 TopEntire content © 2012 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction prohibited.
  6. 6. The New Rules of Digital Engagement for 2013 6 Performing organizations are already Inbound marketing strategy generates doing just that. Additionally, to the demand through thought leadership, extent big data will make analytics effectively earning a role for the more accessible for marketing, it will organization as a trusted advisor and demand marketing leaders who seek compelling prospects to take action analytical questions. The demand for rather than telling prospects to take marketers who are not only creative but action. The 4Cs offers a quick and dirty also have analytical skills to validate framework to keep marketers focused the effectiveness of creative outputs on the new rules of digital engagement. will continue to rise in 2013. Even for marketers who hate numbers, these Content: Content marketing is the trends demand you learn to hire, new black in B2B marketing. The manage, and work with numerically best way to rise above the noise experienced marketing resources. is to become a trusted advisor during a prospect’s buying cycle. CIOs and CMOs unite. This year, Top Performing organizations are Gartner released a stat suggesting that 6x more likely than Everyone Else over the next five years, CMOs would to utilize nurture marketing triggers spend more on technology than CIOs. that automate engagement based on Naturally, this has some CIOs slightly on prospect behavior. It’s worth noting edge because the nature of marketing that the number one challenge with technologies over the last decade has respect to nurture marketing in 2012 allowed marketers to largely circumvent was finding the time and resources to IT with low-cost on-demand offerings. develop relevant content. However, lack Since many CMOs are now turning to of content and failure to incorporate IT for help with fragmented data, the nurture marketing campaigns in discussion around the long-term viability marketing communications is also of customer data strategies has picked the number one reason organizations up between CMOs and CIOs. More fail to extract value from marketing than anything, CMOs will need to start automation. engaging CIOs with justifiable business requirements for data analytics and Context: Content is only half the battle. access to analytical tools. That means The type of content and the tone of the CMO will need to be comfortable the content must align to the customer at least understanding some of the buying cycle to maximize results. If nuances of data management and big new prospects are pounded over the data solutions. head with overtly “salesy” materials when all they want to do is research or The 4Cs augment the 4Ps identify a solution to a problem, they are unlikely to continue to engage. The 4Ps (Product, Price, Place, and As such, relevance, timeliness, and Promotion) are foundational elements personalization matter with respect to of the marketing discipline. And while customer engagement. It’s not about the 4Ps are just as relevant today as automating any old communication; they were 50 years ago, the new rules it’s about automating just the right of digital engagement are demanding communication, at just the right time, inNote: This document is intended for individual an augmented approach. Today it’s ause. Electronic distribution via email or by just the right channel. While marketersposting on a personal website is in violation of good idea to also account for the 4Cs,the terms of use. have always been chasing this reality, especially for B2B marketers: Content, Top Performers actually do a pretty Context, Connection, and Conversation.Entire content © 2012 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction prohibited.
  7. 7. The New Rules of Digital Engagement for 2013 7 good job at this and continued to New Rules of Digital move away from mass communication techniques in 2012. Engagement The question remains, as a result of the Connection: The complex sales cycle key trends and lessons learned in 2012, demands a certain degree of intimacy what are the actual implications for these days. Automation for the sake of 2013? How does your organization stay automation comes across as robotic on top of the fast-paced ever-changing and pandering. In fact, research from world of marketing? Gleanster suggests that communication fatigue is reduced if messages actually For one thing, the new rules of digital resonate as personal and relevant. engagement are purely focused That’s right: you can actually send more on a customer-centric approach to communications if prospects perceive marketing. Organizations continue to them to be relevant. reach diminishing returns on traditional techniques such as mass email and Conversation: Marketers can no longer single-channel communication. In afford to push messaging and expect fact, two out of three Top Performers to generate a return. The explosive indicated their single most compelling growth in social channels demands that source of competitive advantage companies earn a conversation with in 2012 was the digital customer prospects. It’s a dialog, and the nature experience. Across the board, from of a dialog demands some degree of B2B to B2C businesses, the website listening. As such, marketers must is considered the most profitable and actively monitor all marketing channels effective communication channel – and make data-driven decisions followed by email. Email is not dead, about how to optimize communication and it continues to be the backbone strategies (see Figure 5). of multi-channel communications for Figure 5: Top Performing Best Practices in Social Media EngagementNote: This document is intended for individualuse. Electronic distribution via email or byposting on a personal website is in violation ofthe terms of use.Entire content © 2012 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction prohibited.
  8. 8. The New Rules of Digital Engagement for 2013 8 Top Performers. But it’s important mostly because many of the systems for organizations not to become too are making it easier to incorporate. focused on just online or just offline Progressive profiling allows marketers to communications. In 2013, start to frame ask a smaller number of questions over marketing communications around the time through value added engagements. customer experience. What does it look Prospects trade content for small bits of like for the average customer to engage information that eventually aggregate to with your organization? Ask them. Find a complete profile. out where your organization might be missing a chance to streamline the What channel mix? Customers are sale or make a more compelling value channel agnostic, so make it easy to proposition. engage with your brand. If multiple marketing technologies are being used The following are key areas of the to deliver separate campaigns across 2013 marketing plan that should get a marketing channels, then there’s a good little extra attention based on lessons chance the overall customer experience learned in 2012: is suffering. Try orchestrating the same communication across multiple Automate segmentation. A core channels. If that’s too difficult, then system of record for marketing data it might be time to start evaluating a is essential to ongoing optimization. system consolidation initiative. Many marketers have access to data that could inform more targeted Focus on influencers. Social media segmentation, but it’s difficult to find is unlikely to generate a justifiable return the time to do the analysis. Marketing for B2B marketers unless efforts are automation tools can help trigger highly focused on a goal. In social media, relevant communications based on form five influencers are more beneficial completions. As such, if you can identify than a million followers or likes. Your one or two new segments in 2013 and goal should be to compel a select develop a few lead nurturing campaigns few individuals to utilize their brand for each, you’d be performing at a Top to share your messaging. Doing this Performer level with respect to lead effectively is a tremendous amount of nurturing. work, but the benefits realized by Top Performers suggest this is definitely Shorten those forms. There is a something to think about in 2013. Eight direct correlation between the number out of ten Top Performers indicated of fields being requested and the active engagement with influential drop-off rate on forms. In fact, Gleanster customers was a top three value driver research estimates that every field for social media marketing (according to after 5 fields increases the drop-off rate research from the Q2’12 Social Media by up to 15%. Progressive profiling is Engagement survey). starting to find a niche in B2B marketing,Note: This document is intended for individualuse. Electronic distribution via email or byposting on a personal website is in violation ofthe terms of use.Entire content © 2012 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction prohibited.
  9. 9. The New Rules of Digital Engagement for 2013 9 Deep Dive Talking Points • Manual processes can’t scale the way customers are demanding to engage. The new rules of digital engagement demand a customer-centric, channel- agnostic approach to marketing communications. • 85% of Top Performers are currently engaging in or planning on a system consolidation initiative in marketing (versus 44% of Everyone Else). • Automation doesn’t have to be complicated. In fact, Top Performers simplify processes by using a handful of standardized templates for email, landing pages, and nurture campaigns. Change the content, don’t change the formatting. • Top Performers accomplish more within the first 30 days of adopting marketing automation than all other organizations typically accomplish within the first year. The key to success in marketing automation is simplicity. There are 5 common tactics that pave the way to a return on investment in marketing automation. • Don’t waste time branding on social media channels, focus on value-added interactions: engage, enrich, entertain.Note: This document is intended for individualuse. Electronic distribution via email or byposting on a personal website is in violation ofthe terms of use.Entire content © 2012 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction prohibited.
  10. 10. The New Rules of Digital Engagement for 2013 10 Related Research Recently published research that may be of interest to senior industry practitioners include: Deep Dive: 5 Key Milestones for the First 30 Days with Marketing Automation . Deep Dive: 5 Marketing Automation Capabilities Top Performers Can’t Live Without . Deep Dive: A Crash Course on Big Data . . . for Marketers Headquarters Deep Dive: Best Practices for Establishing a Lead Nurturing Roadmap Gleanster, LLC Marketing Automation Gleansight 825 Chicago Avenue - Suite C Evanston, Illinois 60202 Deep Dive: Quantifying the Value of Social Media Engagement in B2B Marketing . For customer support, please contact support@gleanster.com The Gleanster website also features carefully vetted white papers on these and or +1 877.762.9727 other topics as well as Success Stories that bring the research to life with real- world case studies. To download Gleanster content, or to view the future research For sales information, please agenda, please visit www.gleanster.com. contact sales@gleanster.com or +1 877.762.9726 About Gleanster Gleanster benchmarks best practices in technology-enabled business initia- tives, delivering actionable insights that allow companies to make smart business decisions and match their needs with vendor solutions.Note: This document is intended for individualuse. Electronic distribution via email or by Gleanster research can be downloaded for free. All of it.posting on a personal website is in violation ofthe terms of use. For more information, please visit www.gleanster.com.Entire content © 2012 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction prohibited.