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Customer World Marketing Operations

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This was a presentation I gave at Siebel Customer World.

Presentation was given before most marketing operations companies existed. It had two goals:
1) To explain what Siebel does to improve marketing ROI, effectiveness, and efficiency.
2) Cover detail on how we manage the people, process, and technology responsible for the marketing department's goals, budgets, target audiences, segments, campaigns, leads, and overall performance.

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Customer World Marketing Operations

  1. 1. OUR FOCUS IS ON YOU! Siebel @ Siebel: Marketing Improving ROI, Effectiveness, & Efficiency Adam B. Bloom – adam.bloom@siebel.com Marketing Operations and Online Community Tuesday 10.18.2005
  2. 3. “It’s much different when marketing is an investment and not an expense.” <ul><li>Presentation Goals: </li></ul><ul><li>Explain what we do to improve marketing ROI, effectiveness, and efficiency. </li></ul><ul><li>Cover how we manage the people, process, and technology which is responsible for the Marketing Department’s Goals, Budgets, Segments, Campaigns, Leads, and overall Performance. </li></ul>1 Organizational and Process Challenges 3 Measurement/Tech Challenges 2 Organizational and Process Solutions 4 Measurement/Tech Solutions
  3. 4. Background: Evolution of Marketing at Siebel <ul><li>Late 1990s – 2001 </li></ul><ul><ul><li>Broad based marketing - more strategic ( “flood light” ) </li></ul></ul><ul><ul><li>No consistent technology or logic/structure to marketing process/reports </li></ul></ul><ul><ul><li>Little process and support for lead-gen activities </li></ul></ul><ul><li>2002 </li></ul><ul><ul><li>Increasing pressure: justify marketing budget </li></ul></ul><ul><ul><li>Need to become more tactically focused – lead generation ( “laser beam” ) </li></ul></ul><ul><li>2002 – 2004 </li></ul><ul><ul><li>Developed Call Center model for outbound lead generation </li></ul></ul><ul><ul><li>Aligned the Field Marketing function with Sales teams to improve demand generation </li></ul></ul><ul><ul><li>Focused efforts to improve the deployment of Siebel Marketing </li></ul></ul><ul><ul><li>Goal – measure the effectiveness of marketing activities </li></ul></ul><ul><ul><ul><li>Collect information to improve reporting/decision making </li></ul></ul></ul>
  4. 5. Background: Siebel Marketing Organization Today Field Marketing <ul><li>Corporate Marketing (San Mateo) </li></ul><ul><li>Communications and Events </li></ul><ul><li>Direct Marketing </li></ul><ul><li>Web Marketing </li></ul><ul><li>Advertising </li></ul><ul><li>Public Relations </li></ul><ul><li>Customer Marketing </li></ul><ul><li>Integrated Marketing </li></ul><ul><li>Marketing Operations </li></ul>Field Marketing Call Centers (8 FM’s) (20 FM’s) (6 FM’s)
  5. 6. Organizational Challenges: Today’s Environment is Complicated Governance, Compliance, & Accountability Severely Constrained Resources Solution Complexity Organizational Complexity Competitive Complexity Migration to Solution Selling Sales and Marketing Teams Not Aligned & Not Optimized Heightened Expectations for Revenue Growth
  6. 7. Organizational Challenges: Conflicting Dynamics Between Sales and Marketing Sales Perception <ul><li>Not enough leads to meet revenue targets </li></ul><ul><li>Too many unqualified leads </li></ul><ul><li>By the time we get a lead, it is stale </li></ul><ul><li>I need leads to meet this quarter’s target – not next quarter’s </li></ul><ul><li>Why can’t marketing do a better job? </li></ul>Marketing Perception <ul><li>No follow-up on the leads we generate </li></ul><ul><li>No feedback from sales on what’s working </li></ul><ul><li>We emailed the new leads…what happened? </li></ul><ul><li>Sales needs to develop the leads not just expect that they can just take orders </li></ul><ul><li>Why can’t sales do a better job? </li></ul>
  7. 8. Organizational Solutions: One Process, One View of Results, Aligned Team Common: Customer Objectives Plans Budgets Language Pipeline Reviews Key Fields Metrics <ul><li>Design, execute, and follow-up programs: </li></ul><ul><ul><li>Develop Campaign Plans and Budgets </li></ul></ul><ul><ul><li>Plan and Execute Events </li></ul></ul><ul><ul><li>Prepare Campaign Follow-up </li></ul></ul><ul><li>Qualify contacts and generate new leads: </li></ul><ul><ul><li>Qualify Prospects </li></ul></ul><ul><ul><li>Gather Vital Account Data </li></ul></ul><ul><ul><li>Create and Route New Opportunities to Sales </li></ul></ul><ul><li>Move leads through pipeline & close sales: </li></ul><ul><ul><li>Validate Opportunities </li></ul></ul><ul><ul><li>Propose and Generate Solutions </li></ul></ul><ul><ul><li>Secure Customer Commitment </li></ul></ul>Field Marketers Sales Development Reps Field Sales Reps
  8. 9. Organizational Solutions: Focus on User Adoption Across the Marketing Department <ul><li>Low User Adoption and Usage = Low ROI </li></ul><ul><ul><li>Marketers are in the business of change </li></ul></ul><ul><li>Implementing CRM in a Marketing Department is not a one-time event </li></ul><ul><ul><li>Marketers are good at communications, promotion, and education </li></ul></ul><ul><li>Managers who: </li></ul><ul><ul><li>Are accountable for metrics pay attention to the system </li></ul></ul><ul><ul><li>Pay attention to the system have employees who pay attention too </li></ul></ul><ul><li>How We Started: Provide accountability: Performance Reports </li></ul><ul><li>How We Changed: </li></ul><ul><ul><li>Provided value to end users in addition to Executives </li></ul></ul><ul><ul><ul><li>Field Marketers, Email Marketers, Segmentation </li></ul></ul></ul><ul><ul><ul><li>Alignment (Marketing and Sales) </li></ul></ul></ul><ul><ul><li>Developed a culture of accountability </li></ul></ul><ul><ul><ul><li>Objectives, Dashboards, and Alignment (Marketing and Sales) </li></ul></ul></ul>
  9. 10. Organizational Solutions: Require Opportunity Source/Acceptance and Monitor It <ul><li>Sales Process: </li></ul><ul><li>Opportunity Assessment </li></ul><ul><li>Outreach </li></ul><ul><li>Value Proposition </li></ul><ul><li>Proposal Generation </li></ul><ul><li>Negotiation </li></ul><ul><li>Close </li></ul><ul><li>Serve and Support </li></ul><ul><li>Marketing Process: </li></ul><ul><li>Budget Management </li></ul><ul><li>Program Execution </li></ul><ul><li>Event Execution </li></ul><ul><li>Campaign Follow-up </li></ul><ul><li>Lead Qualification </li></ul><ul><li>Opportunity Generation </li></ul><ul><li>Opportunity Routing </li></ul><ul><li>Opportunity Source ties the Marketing process to the Sales process: </li></ul><ul><ul><li>Make it required and easy to complete </li></ul></ul><ul><li>Opportunity Accepted => Valid and Timely </li></ul>Opportunity Source/Accept
  10. 11. Organizational Solutions: Marketers Desire a Measurable Impact <ul><li>Marketers tend to get along </li></ul><ul><li>well with analytical numbers, </li></ul><ul><li>charts, and </li></ul><ul><li>graphs. </li></ul>
  11. 12. < Previous Next > <ul><li>Organizational Challenges: </li></ul><ul><ul><li>Today’s Environment is Complicated </li></ul></ul><ul><ul><li>Conflicting Organizational Dynamics </li></ul></ul><ul><li>Organizational Solutions: </li></ul><ul><ul><li>One Process, One View of Results, Aligned Team </li></ul></ul><ul><ul><li>Focus on User Adoption = ROI </li></ul></ul><ul><ul><li>Use Common Opportunity Info </li></ul></ul><ul><ul><li>Marketers Desire Impact </li></ul></ul>1 Organizational and Process Challenges 3 Measurement/Tech Challenges 2 Organizational and Process Solutions 4 Measurement/Tech Solutions
  12. 13. Measurement Challenges: Marketing Effectiveness and Efficiency <ul><li>Marketing Effectiveness: Did we achieve the desired outcome? </li></ul><ul><ul><li># Responses, Leads, and Orders </li></ul></ul><ul><ul><li>Average Order Revenue </li></ul></ul><ul><ul><li>Pricing and Discounts </li></ul></ul><ul><li>Marketing Efficiency: Was there a minimum waste of resources used to achieve the goal? </li></ul><ul><ul><li>Response Rate (Target Audience’s Interest in Message/Channel/Offer) </li></ul></ul><ul><ul><li>Lead Quality and Conversion Rate </li></ul></ul><ul><ul><li>Cost Per Lead and/or Order </li></ul></ul><ul><ul><li>Cost Events, Lists, and Media Buys </li></ul></ul><ul><ul><li>Cost of Marketing and Production Staff </li></ul></ul><ul><li>Goal of Firm: Maximize Profit </li></ul><ul><li>Revenues </li></ul><ul><ul><li>Sales </li></ul></ul><ul><ul><li>Deal Size/ARPU </li></ul></ul><ul><ul><li>Discounts </li></ul></ul><ul><ul><li>Time to Market/Provisioning </li></ul></ul><ul><ul><li>Offer Availability/Fulfillment </li></ul></ul><ul><li>Operating Expenses </li></ul><ul><ul><li>Cost of Sales and Marketing </li></ul></ul><ul><ul><li>R&D </li></ul></ul><ul><ul><li>G&A, IT, Finance, HR, etc. </li></ul></ul><ul><li>Net Income (Profit) </li></ul><ul><li>(Wallstreet watches…demands) </li></ul>
  13. 14. Measurement Challenges: Response and Lead Management Complexity Call Center Partner/Dealer Direct Mail Web.eMail Wireless Field/ Branch CUSTOMERS Capture Response Attribute Campaign Ensure Data Quality Enhance Response Qualify Response Prioritize Lead Assign/Route Lead Notify Recipient Assess Lead Act on Lead MARKETING & SALES MANAGEMENT Call Center Monitor Process Partners/ Dealers Telesales Field/ Branch Divisions Geography
  14. 15. Measurement Challenges: Response and Lead Management Complexity Call Center Partner/Dealer Direct Mail Web.eMail Wireless Field/ Branch CUSTOMERS Capture Response Attribute Campaign Ensure Data Quality Enhance Response Qualify Response Prioritize Lead Assign/Route Lead Notify Recipient Assess Lead Act on Lead MARKETING & SALES MANAGEMENT Call Center Monitor Process Partners/ Dealers Telesales Field/ Branch Divisions Geography Web, Email, Fax, Phone Spreadsheets or Hard Copy Documents Disparate Sales and Marketing Systems Poor Lead Qualification Complex Territory Assignment Limited Lead Acceptance & Follow-Up No Visibility into Campaign Effectiveness Poorly Defined Roles & Processes
  15. 16. Measurement Challenges: The Impact on the Business is Significant <ul><li>U.S. companies spend $100+ Billion on lead generation yet 40 to 80% of leads never get acted upon. </li></ul><ul><ul><li>Source: Direct Marketing Association and Yankee Group: </li></ul></ul><ul><ul><li>Increasing Revenue By Optimizing Lead Management, Aug 2002 </li></ul></ul><ul><li>Nearly 20% of marketing spend is wasted AND Marketing executives cannot calculate the ROI for between 40% and 60% of their spend </li></ul><ul><ul><li>Source: Marketing Leadership Council, 2003 Benchmark Study </li></ul></ul>Disparate sales and marketing systems = Up to 15% Poorly defined roles and processes = Up to 10% Poor lead qualification = Up to 20% No visibility into marketing effectiveness = Up to 10% Source: Yankee Group: Increasing Revenue By Optimizing Lead Management Aug 2002 40% to 80% of Leads Escape The Funnel! Web, email, fax, phone, spreadsheets and other docs = up to 10% Wrong territory assignment = Up to 6% Limited lead acceptance and follow-up = up to 20%
  16. 17. Measurement Solutions: Cost and Revenue in the Same System Marketing Return on Investment Business Analytics Marketing Investment Company Revenue Every Opportunity has a Source and Amount Each Marketing Program has Budget Line Items Marketing Process and (Integrated) Information
  17. 18. Measurement Solutions: Marketing Process Overview Marketers: Field Marketing Follow Up: Call Leads/ Contacts Sales Sales Dev Reps Execute: Outbound Responses Follow Up: Create Opptys Measure Results Plan & Budget Execute: Inbound Responses Execute: Create Campaigns Set Objectives, Analyze Markets 1 2 3 4 5 3 3 Follow Up: Work Opptys 4 Follow Up: Accept or Reject 4 4 Customer Responses
  18. 19. Measurement Solutions: How Siebel Defines Marketing ROI <ul><li>Primary Metrics </li></ul><ul><ul><li># Opportunities Created by Marketing and Accepted by Sales </li></ul></ul><ul><ul><ul><li>% Pipeline that is Marketing Sourced (Creation) </li></ul></ul></ul><ul><ul><li># Opportunities Touched by Marketing </li></ul></ul><ul><ul><ul><li>% Pipeline that is Touched by Marketing (Acceleration) </li></ul></ul></ul><ul><ul><li>Cost per Opportunity </li></ul></ul><ul><ul><ul><li>$ invested in Program / Number of Opportunities Accepted </li></ul></ul></ul><ul><ul><li>Return on Marketing Investment </li></ul></ul><ul><ul><ul><li>Closed Revenue / Program Cost </li></ul></ul></ul><ul><ul><ul><li>Difficult to measure with 9 – 12 month sales cycles </li></ul></ul></ul><ul><ul><ul><li>Difficult to measure when selling through channels </li></ul></ul></ul><ul><li>Secondary Metrics </li></ul><ul><ul><li>Program, Campaign, or Channel Tactical or Overall Improvements </li></ul></ul><ul><ul><li># New Contacts & Accounts </li></ul></ul><ul><ul><li>Cultivation of Demand and Lead Maturation </li></ul></ul>
  19. 20. Measurement Solutions: Gather Regional Pipeline Insight to Plan Programs For Example, we might see that the pipeline for the Manufacturing and Distribution Industry is low and that a specific organization has impacted our results.
  20. 21. Measurement Solutions: Compare Program Effectiveness to Plan Programs <ul><li>Every Program we run is measured against consistent metrics </li></ul><ul><ul><li>Accepted Opportunities </li></ul></ul><ul><ul><li>Cost per Accepted Opportunity </li></ul></ul><ul><li>Are we seeing certain Programs outperform others? </li></ul><ul><li>Where do we allocate more budget to get better results? </li></ul>
  21. 22. Measurement Solutions: Understand and Track Program Execution
  22. 23. Measurement Solutions: Follow Up Calls: Be Timely and Allocate Time Wisely 1 Day 1 Day 1 Day Release To Assign 2 Days 2 Days 2 Days Assign To First Call 2 Days 2 Days 2 Days First Call To Close Record Other Tactics Siebel.com Registrations Events & Direct Mail Goals Per Stage Per Channel Category 10 Days 2 Days 10 Days Immediate 10 Days 2 Days Close Record To Accept Opportunity Event To Release
  23. 24. Measurement Solutions: Understand Opportunity Quality and Distribution
  24. 25. Measurement Solutions: Easily Review Incoming/Pending Opportunities <ul><li>View Pending Opportunities by Sales Rep and Days Pending </li></ul>
  25. 26. Measurement Solutions: Keep Sales Appraised of Active Accounts <ul><li>Increasing the Bond between Sales and Marketing </li></ul><ul><ul><li>eMail “iBot” pushed to field sales based on recent marketing activities </li></ul></ul>
  26. 27. Measurement Solutions: Analyze Marketing ROI by Region, Industry, & Product Note: This Cost per Opportunity calculation is only for direct Program Spend. It does not take into account other lead generation channels such as the web. Including these other channels brings the overall Cost per Opportunity down.
  27. 28. Measurement Solutions: Analyze Marketing ROI by Program Type Note: This Cost per Opportunity calculation is only for direct Program Spend. It does not take into account other lead generation channels such as the web. Including these other channels brings the overall Cost per Opportunity down.
  28. 29. Measurement Solutions: Marketing Return on Investment <ul><li>Before, we didn’t know…It’s easier to make decisions when you know. </li></ul><ul><li>We know the cost of an opportunity and typically are positive within 2 quarters. </li></ul><ul><li>ROMI based on Demand Generation investment is very high (5-8 X) </li></ul>ROMI – Closed Revenue / Total Spend ROMI (Demand Gen) – Closed Revenue / Demand Generation Spend (does not include fixed costs)
  29. 30. Results: 2002-05: Making Good Progress with Room to Improve “ It’s much different when marketing is an investment and not an expense.” % of Leads Accepted and Pursued Response Rate Pipeline Generated Cost per Marketing-Generated Opportunity % of Closed Opportunities Sourced By Marketing % of Closed Opportunities Touched By Marketing 33% 20% 60% $3000 2% xxx 95% 50% $4500 1.5% xxx 90% 10% 20% $8000 0.5% 80% Progress Towards Goal Initial Value Current Value Goal xxx
  30. 31. Results: Siebel Industry Recognition <ul><li>&quot;The Siebel marketing and sales alignment strategy demonstrates a compelling and well-executed response to a problem that bedevils many organizations.” </li></ul><ul><ul><li>- Paul Wiefels, IDC CMO Advisory Panelist & Co-founder and Managing Director of The Chasm Group </li></ul></ul><ul><li>&quot;Their solution is very impressive.&quot; </li></ul><ul><ul><li>- Jonathan Angel, IDC CMO Advisory Panelist & S enior editor of ADWEEK’s Technology Marketing magazine </li></ul></ul>IDC’s CMO Advisory Panel has recognized Siebel Systems for their Marketing and Sales Alignment best practices Selected from entries submitted by technology marketing vendors across the IT software, hardware and services sectors for effectively coordinating marketing and selling activities Diamond Award for Marketing Excellence from the Information Technology Services Marketing Association (ITSMA) for “Building Marketing Accountability” Best in class company as measured by: Innovation; Execution; Business Results “ We were very impressed with Siebel’s project,” said Dave Munn, president and CEO, ITSMA. “Siebel’s efforts to strengthen its financial accountability for marketing have demonstrated excellent results for the company. By identifying clear targets, conducting regular reviews, aligning its marketing and sales activities and integrating its marketing processes and metrics to allow for ongoing improvement, Siebel has developed a winning solution that should be an example to other companies facing similar challenges.”
  31. 32. The New Siebel Online Community <ul><li>Why Join </li></ul><ul><li>Over 1500 other discussions on CRM best practices! Continue the dialogue on this and other topics </li></ul><ul><li>Subscribe and learn something new every day </li></ul><ul><li>Share experiences, improve your business and technology operations </li></ul><ul><li>Gain access to CustomerWorld presentations and other valuable content </li></ul><ul><li>How to Participate </li></ul><ul><li>Check your email for registration information or visit the site </li></ul><ul><li>Encourage colleagues to join </li></ul><ul><li>Visit the CustomerWorld Knowledge Center to meet the Community Managers </li></ul>http://www.siebelcommunity.com
  32. 33. Q&A OUR FOCUS IS ON YOU! Siebel @ Siebel: Marketing Improving ROI, Effectiveness, & Efficiency Adam B. Bloom – adam.bloom@siebel.com Marketing Operations and Online Community Tuesday 10.18.2005

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