The document discusses strategies for improving marketing effectiveness by breaking down silos and integrating various marketing tactics into a cohesive framework. It emphasizes the importance of a structured testing process, an analytical environment, and the use of technology to optimize customer experience and measure long-term results. Additionally, it highlights the role of social media and the need for careful planning, resource assessment, and a focus on customer relationship management.

1. Breaking Down Silos for Breakthrough Results David M. Raab Raab Associates Inc. [email_address] www.raabassociatesinc.com

2. Marketing, 2010

3. So Many Choices How do I… optimize customer experience? integrate social media? choose the right technology? -80% -60% -40% -20% 0% 20% 40% 60% Change in Marketing Budget Allocation in 2009 According to US B2B Marketers, by Tactic (% of Respondents) 13% 14% 15% 15% 17% 21% 23% 25% 28% 30% 31% 31% 32% 34% 36% 39% 41% 42% 47% 47% TV advertising Sponsorships Outdoor media Print advertising Tradeshows, conferences (in-person) Radio Direct mail Virtual trade shows Online display ads - banners, pop-ups Public relations Other Web 2.0 media Inside sales/telemarketing Executive breakfasts, seminars and events Blogs Discussion forums, social networks or communities E-mail Webinars, Webcasts Online video, podcasts or rich media Company Website Search Marketing Source: MarketingProfs and Forrester Research, 'B-to-B Marketing in 2009: Trends in Strategies and Spending', March 2009 increase decrease

4. Short Answer: Test Design test Execute test Read results

5. Why Testing Isn’t Enough individual tests can’t measure long-term results optimal experience is based on interaction of multiple programs integrated measurement requires integrated technology

6. Real Answer: Analytical Environment

7. Analytical Environment: Three Components formal business model structured testing process integrated technology platform Assess resources Design test Execute test Identify Options Define objectives Deploy winners Select project Read results Learn and refine Orders Marketing Service Web Phone Media Web Email Data Integration Marketing Execution Marketing database retain grow acquire

8. Formal Business Model define customer life cycle (=lifetime value components) identify leverage points within each component evaluate differences by channel, by customer segment assess incremental impact of individual programs compare to past performance, industry benchmarks retain grow acquire

9. Formal Business Model: Self-Assessment Business Model level 1 level 2 level 3 marketing value measure no reporting; capture response capture response rates and cost/response measure lifetime value, understand customer flow, relationships among programs benchmarking no benchmarks compare vs. own previous performance compare vs. industry standards, best-in-class marketing planning track cost and schedule set targets based on past results & program goals measure short- and long-term impacts, actual vs expected marketing optimization none; allocate spend based on history set targets for media mix based on incremental ROI formal modeling for marketing impact and mix optimization

10. Structured Testing Process careful test selection standardized test execution routine deployment continuous learning Assess resources Design test Execute test Identify Options Define objectives Deploy winners Select project Read results Learn and refine

11. Structured Testing Process: Self-Assessment Testing Process level 1 level 2 level 3 test selection select test programs randomly define program goals by customer lifestage set lifestage targets and select tests to reach; portfolio approach test design informal testing occasional testing, aimed at immediate response formal plans for all tests, with long-term measures and deployment plans deployment use outside vendors for new media hire specialist staff for new media formal training for new media; organize by customer or product

12. Integrated Technology Platform central marketing database, as integrated as possible individual data for known customers segment & survey data for mass media, some online add new data sources as they appear integrate on multiple keys, not just name/address Orders Marketing Service Web Phone Media Web Email Data Integration Marketing Execution Marketing database

13. Integrated Technology Platform multi-channel execution platform coordinated cross-channel treatments mix of batch and real time programs dynamic content for cross-channel personalization Orders Marketing Service Web Phone Media Web Email Data Integration Marketing Execution Marketing database

14. Integrated Technology Platform: Self-Assessment Technology Platform level 1 level 2 level 3 data management silos; no central database marketing database w/ CRM and transactions; no online integrated online w//offline execution separate systems for each medium outbound campaigns from central system inbound and outbound from same system, including real time online testing capabilities none simple a/b response tests long-term stream tests

15. Benefits of Analytical Environment understand current customer experience highlight key leverage points systematic testing process continuous improvement platform for adding new channels

16. Poll: How would you rate your company’s current ability to manage cross-channel campaigns? level 1: every channel is managed separately level 2: we compare short-term results across channels, but don’t integrate them operationally level 3: we have integrated online and offline channels and measure the long-term impact on customer value of our programs

17. Self-Assessment level 1 level 2 level 3 Technology data management silos; no central database marketing database w/CRM and transactions; no online integrated online w//offline execution separate systems for each medium outbound campaigns from central system inbound and outbound from same system, including real time online testing capabilities none simple a/b response tests long-term stream tests Business model marketing value measure no reporting; capture response capture response rates and cost/response measure lifetime value, understand customer flow, relationships among programs benchmarking no benchmarks compare vs. own previous performance compare vs. industry standards, best-in-class marketing planning track cost and schedule set targets based on past results & program goals measure short- and long-term impacts; compare vs expected results marketing optimization none; allocate spend based on history set targets for media mix based on incremental ROI formal modeling for marketing impact and mix optimization Testing Process test selection select test programs randomly define program goals by customer lifestage set lifestage targets and select tests to reach; portfolio approach test design informal testing occasional testing, aimed at immediate response formal plans for all tests, with long-term measures and deployment plans deployment use outside vendors for new media hire specialist staff for new media formal training for new media; organize by customer or product

18. What About Social Media?

19. 1. Social Media Does It All goals: explain new product awareness of company create relationship awareness of capability credibility as competent vendor quality of service competitive superiority media strengthen relationship advertising & PR x x SEM and display x x SEO and Web site x x x x x social media x x x x x x x x email, mail, phone x x Web events x x x trade shows x x x nurture email x x x x x x in-person events x x x retain grow acquire

20. 2. Many Social Media Also: photo sharing reviews/rating location check-in

21. 3. Many Social Media Objectives Also: customer support market research competitor monitoring

22. Different Social Media for Different Objectives wikis photo sharing location check-in online video podcasting blogging message boards reviews/ratings Twitter social networks Media customer support engage customers monitor & respond marketing (lead gen) awareness engage influencers competitor monitoring market research Objectives x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x

23. … Also Different Resource Needs staff experience funding web analytics media reach public interest technology customer data Resources x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x wikis photo sharing location check-in online video podcasting blogging message boards reviews/ratings Twitter social networks Media

24. Match Media to Objectives and Resources wikis photo sharing location check-in online video podcasting blogging message boards reviews/ratings Twitter social networks Media customer support engage customers monitor & respond marketing (lead gen) awareness engage influencers competitor monitoring market research Objectives x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x staff experience funding web analytics media reach public interest technology customer data Resources x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Assess resources Design test Execute test Identify Options Define objectives Deploy winners Select project Read results Learn and refine

25. Example: Automobile Recall Wikis photo sharing location check-in online video podcasting blogging message boards reviews/ratings Twitter social networks Media customer support engage customers monitor & respond marketing (lead gen) awareness engage influencers competitor monitoring market research Objectives x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x staff experience funding web analytics media reach public interest technology customer data Resources x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Assess resources Design test Execute test Identify Options Define objectives Deploy winners Select project Read results Learn and refine

26. Example: Automobile Recall Wikis photo sharing location check-in online video podcasting blogging message boards reviews/ratings Twitter social networks Media customer support engage customers monitor & respond marketing (lead gen) awareness engage influencers competitor monitoring market research Objectives x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x staff experience funding web analytics media reach public interest technology customer data Resources x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Assess resources Design test Execute test Identify Options Define objectives Deploy winners Select project Read results Learn and refine

27. Example: Automobile Recall Wikis photo sharing location check-in online video podcasting blogging message boards reviews/ratings Twitter social networks Media customer support engage customers monitor & respond marketing (lead gen) awareness engage influencers competitor monitoring market research Objectives x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x staff experience funding web analytics media reach public interest technology customer data Resources x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Assess resources Design test Execute test Identify Options Define objectives Deploy winners Select project Read results Learn and refine

28. Design Test Assess resources Design test Execute test Identify Options Define objectives Deploy winners Select project Read results Learn and refine Design Issues Automobile Recall goals monitor & respond, customer support metrics Web traffic, sentiment, offline opinion polls size & timeframe huge, on-going value brand impact

29. Execute & Read Assess resources Design test Execute test Identify Options Define objectives Deploy winners Select project Read results Learn and refine Execution Issues Automobile Recall process definition evolving training & monitoring experienced staff external resources as needed metrics gathering part of platform, external as needed Evaluation Issues short vs long term short term: volume, sentiment long term: attitudes, purchase intent, purchases often indirect for social media many ‘lurkers’; measure via offline surveys; track opinion leaders link to individuals or segments group registration, geotargeting, referring sites

30. Deploy & Learn Assess resources Design test Execute test Identify Options Define objectives Deploy winners Select project Read results Learn and refine Deployment Issues Automobile Recall scalability human monitoring and response is expensive content generation user-generated, repurposed press materials shelf-life short-term project; usually want community data integration use standard systems; low priority knowledge transfer use in-house staff from start Learning Issues consistent reporting ad hoc project insights segment results, use of different content & media adequate budget for routine testing formal optimization best for stable situations portfolio approach balance risk/reward, channel mix, long-term strategy

31. Lessons Learned analytical environment combines business model, testing and technology platform platform is the foundation business model is the framework testing fills in the details all are needed to optimize customer experience

32. Lessons Learned structured testing process match projects to applications and resources careful test design: goals, metrics, evaluation use outside resources as necessary

33. Lessons Learned social media is difficult, but not impossible many different kinds of social media; must pick carefully measurement and data integration are especially challenging structured testing is still the key

34. What Now? Don’t Panic new media are a fraction of total spend everybody else is learning too Make a Plan assess platform, business model, and test capabilities set long-term objectives Execute short-term tests for immediate results long-term changes to build infrastructure

35. Thank You email: [email_address] Web: www.raabguide.com blog: http://customerexperiencematrix.blogspot.com/ Twitter: @draab phone: 914-241-2117