SlideShare a Scribd company logo
How to justify the investment in
modernizing your marketing with the
         Executive Board
    David Dorling, Swiss Post Solutions
            14th March, 2012
What I hope to share
• It is about change              • The context and
  management                        background for our project
• That organisational             • The issues we addressed
  alignment will continue to be     through our project
  a challenge                     • Centre of Excellence
• That the strategy message       • Results and benefits
  takes time to filter down to      achieved
  the coal-face                   • Lessons learnt and next
                                    steps
• There are cultural nuances
  that need to be managed
• Focus on measurement &
  accountability
Background & Context:

Individual systems, processes and
      methods & capabilities
There is but one constant -
                Change
– How our customers buy
– The level and complexity of our competitive marketplace
– How we differentiate ourselves
– What we sell and to whom
– Our value proposition
– Organizational structures
– Skills and capabilities
– Business processes and systems
– Objectives, targets & measures
CHALLENGE 1               CHALLENGE 2
The decline of the       “Caught in the middle”
physical document          market positions




    CHALLENGE 3                CHALLENGE 4
   Intensifying and        We are in the midst of a
asymmetric competitive          fundamental
     environment              re-organisation
Document and Business
                 Process Outsourcing
             DOCUMENT MANAGEMENT
                                                      BUSINESS PROCESS SOLUTIONS
                   SERVICES           Our Customers




                                                                               Electronic
Electronic




                                          Document
                           Archive       Management
                                           (ECM)
                                        IT Systeme
                                         (z.B. ERP)




                                                                               Physical
 Physical




                          e-Archive




                                       Consumers
Systems, Processes & People
                      What had to change
•   We were historically an operations led organisation
•   Marketing was viewed as a sales support function
•   Senior management viewed marketing as a cost function rather than a
    revenue contributor
•   Our marketing activities were executed in silos
•   There was a lack of coordination, standardisation and consistency in our
    G2M activities
•   We were incurring unnecessary costs
•   We were reducing our staffs efficiency and productivity
•   We were not investing in the development of our staff
•   We were engaging with our target market too late in the buying process
•   We found it difficult to measure the performance and effectiveness of our
    activities
Starting Point 17 December 2009
Goals of the approved SPS Sales Concept
Sales Concept Key Topic
  Lead Lifecycle Management
Evaluating the Market
•   Vendor identification in Summer 2010 - LeadLife, Marketo, M2L, Eloqua,
    Silverpop, Aprimo
•   Vendor short list – six step process completed December 2010:
              – Silverpop
              – Eloqua
              – M2L (due to acquisition by Oracle)
•   Vendor evaluation – six step process, February to April 2011
•   Vendor decision – Eloqua:
              – Fit to functional requirements
              – CRMOD integration
              – Implementation model and services
              – Sales enablement
              – Privacy & security
What were the risks
Project Risks:                    Not doing project:
• Lack of Exec Mgmt buy-in &      •   We will continue to lack visibility
   support                            of our customers & prospects
• Not achieving alignment             interests
   between sales & marketing      •   We will continue to plan and
   and BU’s                           execute in silos
• People: availability, skills,   •   Marketing’s contribution will
   capability, capacity               continue to disappoint
• Oracle CRMOD Integration        •   It will delay our capability to have
• Available project budget            consistency in our G2M activities
• Content availability            •   We will continue to fund duplicate
• Data management,                    systems
   governance & legislation       •   We will not be able to assess
• Vendor support                      what is and is not working
Critical Building Block:
Marketing Automation
Centre of Excellence
Implementation Scope and
            Governance
• Phase 1 - six business units in scope: Switzerland, Germany, United
  Kingdom, United States, France and eProduct House

• The project had three major workstreams, started late September 2011 and
  had duration of 16 weeks:
   – Functional deliverables
   – CRM integration
   – CMS integration

• Project Governance
   – Project Board: Project Sponsor (member of Executive Board), Head
       Global Sales, Head Solution Management, CIO
   – Project Team: Business Unit Marketing & Communications, CRMOD
       Owner, Website Owner
   – Involvement of other stakeholders as required
SPS Marketing Automation
                              Model
                                 Demand Funnel
Metrics & Reporting




                                                                        People & Skills
                          Scoring                    Nurturing

                          Data       Demand Creation         Sales
                        Governance   (Inbound/Installed)   Enablement
SPS Applied Demand Funnel
SPS Nurturing Strategy
                 Architecture
     Route
                                 Master Router
Welcome/Profile      Welcome Program (per segment)

Convert/Qualify     Solution 1        Solution 2     Solution 3


Stay top of mind/
                    Extended          Extended       Extended
     educate        Solution 1        Solution 2     Solution 3


  Transactional                   Event-Management
Benefits & Results Achieved
What have we delivered
•   Integration of six websites
•   Subscription Model
•   Internal and external newsletters
•   Event Management Program
•   Telemarketing integration
•   Oracle CRMOD Sales Reporting
    and Lead Integration
•   Multi-solution Lead Scoring
•   Marketing Objectives &
    Performance Measurement
•   Nurture templates that be can be
    adapted by country
What have we achieved
• Benchmark Performance
   • Open Rates 31.6%
   • Click Through 6.9%
   • Bounceback Rate 1.5%
• Nurture Example
   – Cost £14k
   – Opportunities of £10.5m
     (PO & AO)
   – AO of £3.4m
   – Cost to revenue: £1
     gains £72 (c35% of AO)
What has changed…
• Marketing has contribution targets recognised by the Executive
  Board
• There is formal agreement on lead handover process between
  marketing & sales – common definitions
• We are able to communicate with our target market more effectively
• Marketing is able to analyze, measure and report on performance of
  activities
• We have a global model for nurture program development
• We have improved coordination & standardization
• We have increased efficiency
• We have integrated with CMS & CRM
• We are able to support sales with additional tools
We still have some way to go….
– Closer alignment with sales
  – common and shared goals
  & metrics and focus
– Marketing organization &
  skills development
– Introduction of integrated
  campaign program
  management
– Greater standardization and
  consistency in G2M – brand
  management
– Market profiling: Ideal
  customers, Buyer Personas
  – value proposition
Our conclusions
•   It was (and continues to be) a change management project
•   That marketing automation should not become its own silo
•   That the theory differs from the practice
•   That there is no one size fits all (regardless of what vendors
    say)
•   That as you learn you recreate (be willing to take one step
    back to go forward)
•   That there is no such thing as a standard interface
•   That you will underestimate the investment required to fully
    exploit the investment that you have made
•   Easy to say market aligned organization – cultural and
    process realignment
A few final thoughts…
• CMO tenure hits 43 months in 2012, from 23 months in 2006
  (Spencer Stuart research)
• By 2017 the CMO will manage more IS spend than CIO (Gartner)
• Business Strategy and Digital Execution are CMO priorities
  (Forrester Research and Heidrick & Struggles)
• Four key challenges; data explosion, social platforms, channel &
  device options, shifting demographics
• A change agent by owning customer insight
• By 2015 two-thirds of CMOs believe marketing ROI will be their top
  effectiveness measurement (IBM)
• In 2017 the Marketing Operating Officer will have replaced CMO
Thank you
  Q&A
How to justify the investment in modernizing your marketing with the Executive Board

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

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

Editor's Notes

  1. NEXT SLIDE: Initially our focus was on our core countries and our B2C business unit