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Ian Michiels
Principal Analyst & CEO
Gleanster Research
Featured Speakers:
WEBINAR
Rethinking the Role of Marketing
An innovative look at the evolving link between Marketing and the end-to-end customer lifecycle
COMPLIMENTS OF:
Atri Chatterjee
CMO
Act-On Software
Rethinking the Role of Marketing
in B2B Customer Engagement
Key Findings from over 750 Marketers in Midsize B2B Firms
Ian Michiels
Principal & CEO
Gleanster Research
Agenda
 Setting the Stage: The Ultimate Hypothesis
 The Many Key Findings from the Survey
 Practical Recommendations for Marketers
What’s
keeping you
up at night?
Empowered & Educated Buyers
Too Many Marketing Channels
Sales and Marketing Alignment
Lack of Time / Resources / Budget
Technology Fragmentation
LEADS & OPPORTUNITY CREATION
Difficulty with Attribution
Improve the Customer Experience
Marketing Executive
What’s
keeping you
up at night?
The customer experience is the sum total of all
interactions a prospect or customer has with a
brand.
Marketing
Sales
Service
CustomerExperience
Marketing Executive
Partners & Affiliates
Improve the Customer Experience !?!
A Litany
of Nebulous
Concepts
Customer Relationship
Management (CRM)
Customer Experience
Customer Engagement
Customer Lifecycle
Customer Journey
Who is actually responsible for:
Marketing is
the Only
Function to
Touch All
Stages
Marketing
Sales
Service
Key
Questions to
Explore
 What is the state of CRM and
marketing’s role in CRM?
 How do marketers perceive their role in
managing the customer lifecycle?
 What are the major challenges with
managing customer engagement?
 Benchmark best practices and tactics
used TODAY
Key Finding
 Given what we know Top Performers are
doing, it’s time to re-think the role of
marketing in customer lifecycle engagement.
 Ramifications on:
 Measurement & Attribution
 Technology
 Compensation
 Strategy & Tactics
 REVENUE!
Survey
Demographics
All results are biased by marketers
perceptions.
Performance data is self-reported
and anonymous.
Identifying
Top
Performers
Apply filters to the data and analyze how a
subset of companies answered specific questions.
AVERAGE B2B FIRM
 B2B
 50-1000 Employees
 All others excluding Top
Performers
TOP PERFORMERS
Top 2%
 B2B
 50-1000 Employees
 Beat 2013 Revenue Objectives
 “Very Effective” at managing end-
to-end marketing lifecycle
 Estimate >90% of customers are
happy
Only 2% of respondents (15) companies did a “good” job at customer
lifecycle engagement in marketing!?!
Here’s how
the story
unfolds:
1. What is the current state of affairs in
customer lifecycle engagement?
2. What does customer lifecycle success
look like?
3. What can we learn from these findings?
Marketers don’t feel like they
are “primarily responsible” for
managing the customer
lifecycle.
Breaking the
Customer
Lifecycle into
Stages
Marketing
Marketing / Sales
Service
Sales
According to
marketers – who is the
primary owner?
What do
CMOs think?
56%
51%
79%
0% 50% 100%
Expansion
Retention
Awareness /
Acqusition
CMO (n=56)
Percentage of CMOs who believe marketing
holds primary responsibility for [x] activity?
* Multiple answers allowed
Should
Marketing
Own CRM?
Scratch that… how do marketers define CRM?
How much
time, effort,
and budget
are allocated
to different
stages?
The average annual marketing spend - $1.3M.
11% 10% 14% 19% 18% 16% 7% 4% 3%
<$50k $50k -
$75k
$75k -
$100k
$101k -
$500k
$500k -
$1M
$1M -
$2M
$2M –
$5M
$5M -
$10M
> $10M
Marketers generally feel
like they are effective at
end-to-end customer
engagement.
Marketers are
Generally
Confident –
But is it
Justified
Are You Effective At Managing The
End-to-end Customer Experience?
37% 50% 13%
Very
Effective Effective
Not
Effective
56% 44%
Very
Effective Effective
AVERAGE
TOP PERFORMERS
Top Performers allocate more
time and effort on retention and
expansion.
Top Performers spend more on
awareness and up-selling.
How much
time, effort,
and budget
are allocated
to different
stages?
Average Companies
spend
Effort acquiring new customers:
Average companies spend 67%
Top Performers spend 52%
Average Companies
spend
Budget acquiring new customers: Average companies spend 54%
Top Performers spend 46%
Why
Marketers
Should Focus
on
Retention?
1. Finite products and services = Finite
campaigns
2. You can automate campaigns with
behavioral data to up-sell to
existing customers
3. Attribution to real revenue!
What’s the
difference
between Top
Performers
and Average
Firms?
What’s the
difference
between Top
Performers
and Average
Firms?
Top challenges remain virtually the
same as they did 10 years ago.
Themes: People, Process, Technology
What are the
top challenges
that cause you
to struggle
with current
marketing
objectives?
58%
60%
73%
80%
83%
90%
95%
Our processes are inefficient
We don't collect the right
customer data
Internal skills and expertise
Limitations with current
technologies
Fragmented marketing systems
Marketing alignment with sales
Access to existing customer data
All Respondents
Deeper Dive
on People
Challenges
39%
55%
48%
48%
50%
25%
28%
36%
41%
92%
Internal skills and expertise
No accountability for process
improvement
Leadership doesn't value emerging
B2B tactics
Marketing and sales collaboration
Hiring skilled resources
Top Performers Average
Deeper Dive
on Process
Challenges
71%
82%
59%
30%
39%
50%
Lack of process
improvement
Decisions not metric
based
Legacy processes part
of culture
Top Performers Average
Deeper Dive
on
Technology
Challenges
84% 83% 59%41% 92% 56%
Configuring
campaigns
Multiple systems
manage separate
channels
Marketing & sales
technology doesn't
integrate
Top Performers Average
 


90% of B2B firms still measure
marketing on inquiries and
marketing qualified leads
(Acquisition Metrics).
You can’t manage the customer
lifecycle or make people
accountable unless you
measure and compensate for
the right behavior.
Where’s the
accountability?
TOP PERFORMERS ARE 2X MORE LIKELY TO TIE MARKETING
OBJECTIVES TO THE ENTIRE CUSTOMER LIFECYCLE
Marketers are in an ideal
position to manage and optimize
the end-to-end customer
lifecycle.
Marketers aren’t compensated
appropriately for the effort.
Three key
findings:
1. Marketing technology is the central conduit
for monitoring, measuring, and engaging with
customers across the entire customer
lifecycle.
2. There is currently a massive misalignment of
efforts at average B2B mid-size firms.
Nobody is actually accountable for
optimizing the holistic customer lifecycle.
3. The customer lifecycle needs a leader.
Managing the customer lifecycle is
very difficult with fragmented
technologies.
B2B companies still rely heavily on
legacy technologies like stand-alone
email.
What
marketing
technologies
support the
customer
lifecycle?
Top Performers were 20% more likely to use Marketing Automation
* All Respondents
Other
Marketing
Automation
Trends in the
Research
2010-Present
 Marketing automation helps to activate customer
data (implicit & explicit) because it unifies
fragmented channels.
 Top Performers are typically 5-7x more likely to
use marketing automation.
 Marketing automation allows marketers to
automate campaigns that capture more revenue
from customers.
 Companies report an average of 120% boost in
sales-ready leads as a result of MA.
 Marketing automation makes CRM more valuable
and encourages reps to use CRM.
Top Performers are 2x more likely to
use behavioral data to trigger
engagement.
BUT the vast majority of companies
struggle with relevance.
How are
companies
leveraging
personalization?
29%
39%
45%
36%
42%
39%
38%
56%
63%
63%
75%
75%
0% 50% 100%
Segmentation with psychographic
attributes (interests)
Segmentation with demographic
attributes (industry, role)
Segmentation with purchase
history data
Personalizing customer campaigns
with CRM data
Adjust messaging based on
prospect behavior
Personalizing messaging by stage
in the customer lifecycle
Top Performers Average
Recommendations
Prioritize
Customer
Engagement
Efforts
 Overcome the desire to cast the net wide
 Struggling with segmentation in existing
marketing tools – use CRM data to isolate
trends sales conversions
 Identify 1-5 target audiences
 Refine content efforts to proven
segments
 Only 50% of B2B firms had a blog
Move from
static
campaigns to
behavior-
based and
segmented
engagement.
 6 out of 10 companies used marketing
automation
The right tools are not being used effectively
 -or- the right tools don’t exist
87%
67%
13%
33%
0% 50% 100%
Top Performers
Average
Yes No
Take a stab
at
documenting
the customer
journey –
look for
potholes
Attribution in
Retention
Efforts!
Marketing Attribution?
 10%?
 20%?
 30%?
Sales
Hiring and
Retaining
Talent
90% of SMB companies that invested in marketing
automation did not find it necessary to hire new headcount.
Additional
Recommendations
 Focus on new customer acquisition AND
engagement with existing customers
 Partner with an agency to get specialized help &
step up your game
 Segment and personalize to improve engagement
 Marketers need to step up and showcase their
impact on the end-to-end customer lifecycle.
Make a case for more budget, financial incentives,
and attribution.
Summary
Findings
1 There is a massive misalignment of efforts
and objectives at average B2B mid-size firms.
2 The customer lifecycle needs a leader
3 Marketing technology is key to monitoring,
measuring, and engaging with customers across the entire
lifecycle
Q&A
Ian Michiels
Principal & CEO
@InsightFanatic
ian.michiels@gleanster.com

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Rethinking the Role of Marketing

  • 1. Ian Michiels Principal Analyst & CEO Gleanster Research Featured Speakers: WEBINAR Rethinking the Role of Marketing An innovative look at the evolving link between Marketing and the end-to-end customer lifecycle COMPLIMENTS OF: Atri Chatterjee CMO Act-On Software
  • 2. Rethinking the Role of Marketing in B2B Customer Engagement Key Findings from over 750 Marketers in Midsize B2B Firms Ian Michiels Principal & CEO Gleanster Research
  • 3. Agenda  Setting the Stage: The Ultimate Hypothesis  The Many Key Findings from the Survey  Practical Recommendations for Marketers
  • 4. What’s keeping you up at night? Empowered & Educated Buyers Too Many Marketing Channels Sales and Marketing Alignment Lack of Time / Resources / Budget Technology Fragmentation LEADS & OPPORTUNITY CREATION Difficulty with Attribution Improve the Customer Experience Marketing Executive
  • 5. What’s keeping you up at night? The customer experience is the sum total of all interactions a prospect or customer has with a brand. Marketing Sales Service CustomerExperience Marketing Executive Partners & Affiliates Improve the Customer Experience !?!
  • 6. A Litany of Nebulous Concepts Customer Relationship Management (CRM) Customer Experience Customer Engagement Customer Lifecycle Customer Journey Who is actually responsible for:
  • 7. Marketing is the Only Function to Touch All Stages Marketing Sales Service
  • 8. Key Questions to Explore  What is the state of CRM and marketing’s role in CRM?  How do marketers perceive their role in managing the customer lifecycle?  What are the major challenges with managing customer engagement?  Benchmark best practices and tactics used TODAY
  • 9. Key Finding  Given what we know Top Performers are doing, it’s time to re-think the role of marketing in customer lifecycle engagement.  Ramifications on:  Measurement & Attribution  Technology  Compensation  Strategy & Tactics  REVENUE!
  • 11. All results are biased by marketers perceptions. Performance data is self-reported and anonymous.
  • 12. Identifying Top Performers Apply filters to the data and analyze how a subset of companies answered specific questions. AVERAGE B2B FIRM  B2B  50-1000 Employees  All others excluding Top Performers TOP PERFORMERS Top 2%  B2B  50-1000 Employees  Beat 2013 Revenue Objectives  “Very Effective” at managing end- to-end marketing lifecycle  Estimate >90% of customers are happy Only 2% of respondents (15) companies did a “good” job at customer lifecycle engagement in marketing!?!
  • 13. Here’s how the story unfolds: 1. What is the current state of affairs in customer lifecycle engagement? 2. What does customer lifecycle success look like? 3. What can we learn from these findings?
  • 14. Marketers don’t feel like they are “primarily responsible” for managing the customer lifecycle.
  • 15. Breaking the Customer Lifecycle into Stages Marketing Marketing / Sales Service Sales According to marketers – who is the primary owner?
  • 16. What do CMOs think? 56% 51% 79% 0% 50% 100% Expansion Retention Awareness / Acqusition CMO (n=56) Percentage of CMOs who believe marketing holds primary responsibility for [x] activity? * Multiple answers allowed
  • 17. Should Marketing Own CRM? Scratch that… how do marketers define CRM?
  • 18. How much time, effort, and budget are allocated to different stages? The average annual marketing spend - $1.3M. 11% 10% 14% 19% 18% 16% 7% 4% 3% <$50k $50k - $75k $75k - $100k $101k - $500k $500k - $1M $1M - $2M $2M – $5M $5M - $10M > $10M
  • 19. Marketers generally feel like they are effective at end-to-end customer engagement.
  • 20. Marketers are Generally Confident – But is it Justified Are You Effective At Managing The End-to-end Customer Experience? 37% 50% 13% Very Effective Effective Not Effective 56% 44% Very Effective Effective AVERAGE TOP PERFORMERS
  • 21. Top Performers allocate more time and effort on retention and expansion. Top Performers spend more on awareness and up-selling.
  • 22. How much time, effort, and budget are allocated to different stages? Average Companies spend Effort acquiring new customers: Average companies spend 67% Top Performers spend 52% Average Companies spend Budget acquiring new customers: Average companies spend 54% Top Performers spend 46%
  • 23. Why Marketers Should Focus on Retention? 1. Finite products and services = Finite campaigns 2. You can automate campaigns with behavioral data to up-sell to existing customers 3. Attribution to real revenue!
  • 26. Top challenges remain virtually the same as they did 10 years ago. Themes: People, Process, Technology
  • 27. What are the top challenges that cause you to struggle with current marketing objectives? 58% 60% 73% 80% 83% 90% 95% Our processes are inefficient We don't collect the right customer data Internal skills and expertise Limitations with current technologies Fragmented marketing systems Marketing alignment with sales Access to existing customer data All Respondents
  • 28. Deeper Dive on People Challenges 39% 55% 48% 48% 50% 25% 28% 36% 41% 92% Internal skills and expertise No accountability for process improvement Leadership doesn't value emerging B2B tactics Marketing and sales collaboration Hiring skilled resources Top Performers Average
  • 29. Deeper Dive on Process Challenges 71% 82% 59% 30% 39% 50% Lack of process improvement Decisions not metric based Legacy processes part of culture Top Performers Average
  • 30. Deeper Dive on Technology Challenges 84% 83% 59%41% 92% 56% Configuring campaigns Multiple systems manage separate channels Marketing & sales technology doesn't integrate Top Performers Average    
  • 31. 90% of B2B firms still measure marketing on inquiries and marketing qualified leads (Acquisition Metrics).
  • 32. You can’t manage the customer lifecycle or make people accountable unless you measure and compensate for the right behavior.
  • 33. Where’s the accountability? TOP PERFORMERS ARE 2X MORE LIKELY TO TIE MARKETING OBJECTIVES TO THE ENTIRE CUSTOMER LIFECYCLE
  • 34. Marketers are in an ideal position to manage and optimize the end-to-end customer lifecycle. Marketers aren’t compensated appropriately for the effort.
  • 35. Three key findings: 1. Marketing technology is the central conduit for monitoring, measuring, and engaging with customers across the entire customer lifecycle. 2. There is currently a massive misalignment of efforts at average B2B mid-size firms. Nobody is actually accountable for optimizing the holistic customer lifecycle. 3. The customer lifecycle needs a leader.
  • 36. Managing the customer lifecycle is very difficult with fragmented technologies. B2B companies still rely heavily on legacy technologies like stand-alone email.
  • 37. What marketing technologies support the customer lifecycle? Top Performers were 20% more likely to use Marketing Automation * All Respondents
  • 38. Other Marketing Automation Trends in the Research 2010-Present  Marketing automation helps to activate customer data (implicit & explicit) because it unifies fragmented channels.  Top Performers are typically 5-7x more likely to use marketing automation.  Marketing automation allows marketers to automate campaigns that capture more revenue from customers.  Companies report an average of 120% boost in sales-ready leads as a result of MA.  Marketing automation makes CRM more valuable and encourages reps to use CRM.
  • 39. Top Performers are 2x more likely to use behavioral data to trigger engagement. BUT the vast majority of companies struggle with relevance.
  • 40. How are companies leveraging personalization? 29% 39% 45% 36% 42% 39% 38% 56% 63% 63% 75% 75% 0% 50% 100% Segmentation with psychographic attributes (interests) Segmentation with demographic attributes (industry, role) Segmentation with purchase history data Personalizing customer campaigns with CRM data Adjust messaging based on prospect behavior Personalizing messaging by stage in the customer lifecycle Top Performers Average
  • 42. Prioritize Customer Engagement Efforts  Overcome the desire to cast the net wide  Struggling with segmentation in existing marketing tools – use CRM data to isolate trends sales conversions  Identify 1-5 target audiences  Refine content efforts to proven segments  Only 50% of B2B firms had a blog
  • 43. Move from static campaigns to behavior- based and segmented engagement.  6 out of 10 companies used marketing automation The right tools are not being used effectively  -or- the right tools don’t exist 87% 67% 13% 33% 0% 50% 100% Top Performers Average Yes No
  • 44. Take a stab at documenting the customer journey – look for potholes
  • 46. Hiring and Retaining Talent 90% of SMB companies that invested in marketing automation did not find it necessary to hire new headcount.
  • 47. Additional Recommendations  Focus on new customer acquisition AND engagement with existing customers  Partner with an agency to get specialized help & step up your game  Segment and personalize to improve engagement  Marketers need to step up and showcase their impact on the end-to-end customer lifecycle. Make a case for more budget, financial incentives, and attribution.
  • 48. Summary Findings 1 There is a massive misalignment of efforts and objectives at average B2B mid-size firms. 2 The customer lifecycle needs a leader 3 Marketing technology is key to monitoring, measuring, and engaging with customers across the entire lifecycle
  • 49. Q&A Ian Michiels Principal & CEO @InsightFanatic ian.michiels@gleanster.com