© 2012 BRUCE PHARR

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“The business enterprise has two and only two basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs.”

– Peter Drucker, The Practice of Management

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CASE STUDY | SYSTEM TECHNOLOGIES, INC. (SMMX)

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JANUARY 2009 – JUNE 2010 In 2009, Symyx initiated an integrated marketing strategy intended to grow revenue and bookings, penetrate new market segments, and increase brand equity for the Symyx Electronic Laboratory Notebook (ELN). The program integrated print advertising, public relations, unified digital marketing (website, micro-sites, banner ads, SEO, webinars, email marketing, and social media), global telemarketing, and sales enablement. Following are the benchmarks, goals, and results for the top-level key performance indicators (KPI).

PERFORMANCE PARAMETER BENCHMARK GOAL RESULT INCREASE

OVERALL REVENUE1 $9.5M NA $18.3M $8.8M 93%

OVERALL BOOKINGS1 $11.3M NA $16.8M $5.5M 49%

NEW MARKET SEGMENT BOOKINGS2 $0.2M $1.6M $2.5M $2.2M 910%

NEW MARKET SEGMENT SALES OPPORTUNITIES2 $1.0M $8.5M $11.8M $10.8M 926%

BRAND AWARENESS3 22% 32% 45% 23 PTS 105%

BRAND CONFIDENCE3 32% 42% 54% 22 PTS 69%

1Benchmark is 2009 actual, and result is 2010 full-year estimate as of June 30, 2010. 2Benchmark is 2009 actual, goal and result is for the 12-month period from July 1, 2009 to June 30, 2010. 3Benchmark is from a third-party study completed November 2008, and result is from same third-party study completed November 2009.

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PRINT ADVERTISING The primary goal of the print advertising campaign was to build brand equity—specifically awareness and confidence. The creative approach appropriated Steve Job’s metaphor of “a bicycle for your mind,” in that the Symyx Notebook took you places that were difficult to reach with a traditional laboratory notebook, and it got you there much easier and faster. It also appealed to scientists who, in general, are more likely to camp, hike, and mountain bike than people in other professions. An early indicator of the ads performance was its number one position in an ad recall study, where it outperformed ads from billion-dollar multinational corporations in pharmaceuticals, analytical instruments, and life science informatics—including Merck KGaA, Shimadzu, and Waters—and achieved a 69% recall, versus a 43% average recall of the 16 ads studied.

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MEDIA RELATIONS & THOUGHT LEADERSHIP

ELNs were initially introduced in the 1990s for individual, domain specific applications. In 2008, Symyx introduced an enterprise ELN that could be used across multiple domains. The media relations’ strategy was to establish Symyx as a thought leader in the emerging enterprise ELN market, and the goal was to author or appear in 12 feature articles in target publications reaching lab scientists in chemistry and biology domains. Between January and December of 2009, Symyx authored or appeared prominently in 16 feature articles in 12 target publications including Bio-IT World, Bioscience Technology, Drug Discovery & Development, Lab Manager, and Scientific Computing.

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BRAND EQUITY METRICS Brand awareness and confidence directly affect whether a buyer will consider purchasing your product. Bio-IT World conducted a brand study in late 2008 to benchmark the Symyx ELN and the leading competitor’s ELN. The study was repeated in late 2009 to measure the effectiveness of the integrated Symyx Notebook print advertising and media relations’ campaign. It showed that brand awareness and confidence for Symyx Notebook had increased 23 and 22 percentage points, respectively, and that gaps between Symyx and the leading ELN competitor had narrowed significantly. BRAND AWARENESS BRAND CONFIDENCE 2008 2009 IMPROVEMENT! 2008 2009 IMPROVEMENT!

SYMYX NOTEBOOK ELN 22%! 45% 23%! 32%! 54%! 22%!

LEADING COMPETITOR’S ELN 49%! 63% 14%! 58%! 65%! 7%!

SYMYX DEFICIT & IMPROVEMENT 27%! 18% 9%! 26%! 11%! 15%!

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SALES ENABLEMENT Scientists are a special class of B2B technology customer. They are very skeptical of advertising claims. On the other hand, they highly value peer recommendations, and they live to publish articles. Symyx published Molecular Connection, a high-quality biannual journal, to take advantage of this desire. In 2009, Molecular Connection included case studies from scientists, laboratory managers, and information technology professionals at pharmaceutical and biopharmaceutical leaders AstraZeneca, Bristol Myers Squibb, Elan, Eli Lilly, Johnson & Johnson, Pfizer, and Millennium.

Case studies are a very effective means of addressing a potential buyer’s question, “How does a product or technology meet my specific business need?” A survey of Symyx sales personnel at the end of 2009 ranked Molecular Connection as the top sales enablement tool, and specifically cited case studies as key to closing several deals. Another highly rated sales enablement tool was webinars, especially those that incorporated case study presentations by customers.

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OVERALL SYMYX NOTEBOOK REVENUE & BOOKINGS The Symyx enterprise sales team sold directly to top 20 (over $1 billion in annual revenue) pharmaceutical and biotech companies. The complex sales cycle averaged 12 to 18 months and produced 7-figure deals. Marketing’s contribution to bookings in early 2009 was primarily through sales enablement. In July 2009 marketing launched a new program that penetrated new markets segments and directly generated opportunities that led to bookings.

$11.3!

$9.6 !

$16.8!

$18.3!

$0.0! $2.0! $4.0! $6.0! $8.0 ! $10.0! $12.0! $14.0! $16.0! $18.0! $20.0!

BOOKINGS!

REVENUE !

Millions (US)!

OVERALL SALES PERFORMANCE – 2009 & 2010!

2010!

2009!

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NEW MARKET SEGMENT PENETRATION & BOOKINGS In July 2009, marketing launched a unified digital marketing program targeting 6-figure deals with the 1,080 pharmaceutical and biotech companies beneath the top 20 (under $1 billion in annual revenue). Between July 1, 2009 and June 30, 2010, $2.5M of new bookings was generated (versus a projected target of $1.6M), and $11.8M of new sales opportunities was added to the pipeline (versus a projected target of $8.5M).

$1.6!

$8.5 !

$2.5!

$11.8!

$0.0! $2.0! $4.0! $6.0 ! $8.0 ! $10.0! $12.0! $14.0!

BOOKINGS!

OPPORTUNITIES!

Millions (US)!

MARKETING DEMAND GENERATION SYSTEM PERFORMANCE – JULY 1, 2009 THRU JUNE 30, 2010!

ACTUAL!

TARGET!

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A UNIFIED DIGITAL MARKETING PROGRAM Between January and June of 2009, Symyx marketing developed a business case for a unified digital marketing operation, and gained approval from stakeholders. This combined the existing website and CRM (salesforce.com) with improved SEO and a new marketing automation (Eloqua) tool which served as a hub for newly launched email advertising, micro-sites, banner ads, webinars, and social media.

The unified digital marketing operation engaged global prospects from the new, target market segment (smaller pharmaceutical and biotech companies), nurtured and tracked them through the early stages of the buying cycle (awareness and discovery), qualified them through global local-language telemarketing, and delivered well-qualified, late-stage prospects to sales. As a result, the enterprise sales team was able to close the smaller, 6-figure deals within 3 months, on average.

A detailed description of the Unified Digital Marketing Operation can be viewed at http://marketingmuses.typepad.com/marketingmuses/2012/05/a-unified-digital-marketing-operation.html. The following pages diagram and describe the overall unified digital marketing operation, the workflow to generate, nurture & qualify prospects, the social media structure & strategy, and an ROI comparison.

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A UNIFIED DIGITAL MARKETING OPERATION

NURTURING

& MONITORING

QUALIFICATION

CONFIRMATION

& PRESALE

PROPOSAL,

NEGOTIATION

& CLOSE

MARKETING ASSETS

ANALYTICS & REPORTING

AWARENESS DISCOVERY VALIDATION

SEARCH,

KNOWLEDGE

SHARING &

DIALOG

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WORKFLOW TO GENERATE, NURTURE & QUALIFY PROSPECTS

Marketing automation serves as a hub to 1) send outbound emails with an offer to target prospects, 2) that click-through to the micro-site in response, 3) where they complete a Web form to access the offer. Thereafter, 4) prospects are tracked as they return to access additional assets and are nurtured through the early stages of the buying cycle (awareness and discovery). Global local-language telemarketing 5) follows up periodically to provide human contact and further qualify prospects. When prospects are qualified as approaching the purchase phase of the buying cycle, 6) sales representatives access detailed prospect profiles with a list of all their activities throughout the buying cycle.

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SOCIAL MEDIA STRUCTURE & STRATEGY In Q2009, we audited our social media environment, and found that scientists, our target market, used Facebook personally, but professionally they used LinkedIn, where ELN communities already existed. Scientists followed blogs and viewed relevant videos and slide ware from YouTube and SlideShare. Guided by the findings and best practices, we integrated the following social media structure into our unified digital marketing strategy.

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RETURN ON INVESTMENT Comparing results from a unified digital marketing program between July 2009 and June 2010 with demand generation in 2008 (tradeshows and outbound sales calls) shows that: • Cost of demand generation programs was 20% lower • Total dollar return of bookings and opportunities increased by a factor of 10 • Percentage return of bookings and opportunities increased by a factor of 15

MARKETING PROGRAM COST AND RETURN JAN – DEC 2008 JUL 2009 – JUN 2010

COST OF DEMAND GENERATION PROGRAM TRADITIONAL EVENTS AND CONTRACT OUTBOUND SALES CALLS $2.0M NEW B2B MARKETING SYSTEM $1.6M

VALUE CREATED FROM DEMAND GENERATION PROGRAM SALES OPPORTUNITIES (SQL) $1.0M $11.8M

BOOKINGS $0.2M $2.5M

RETURN ON INVESTMENT SALES OPPORTUNITIES (SQL) 50% 738%

BOOKINGS 10% 156%

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ABOUT THE AUTHOR

Bruce Pharr lives in the San Francisco Bay Area with his wife and son. He umpires little league baseball games, hikes in the Santa Cruz Mountains, eats good food, drinks good wine, reads, and indulges a passion for the arts.

As a marketing executive, he has a track record of increasing enterprise value by developing and executing successful product and marketing strategies, and by managing technological and organizational change. As Vice President of Marketing at Symyx Technologies, he led development and execution of the program described herein. He has held lead marketing positions at several private and public corporations, and he founded and led a technology marketing consulting firm, for over a decade, with clients ranging from startups to Fortune 500 corporations.

Bruce records ideas, experiences, and reviews on his blog, MarketingMuses.