maximizing return on marketing investments

Transform to the power of digital

Are you maximizing your return on marketing investments?Point of view

2012

Marie-Christien van Wensen

[email protected]

mailto:[email protected]

Copyright © 2011 Capgemini Consulting. All rights reserved.

Content

Introduction

Pitfalls in campaign

management

Solutions for increasing

campaign effectiveness

Our approach

2


Context

Marketing needs to improve return on marketing investments (ROMI)

As a consequence marketing is tasked to improve campaign effectiveness

To be able to do so marketing needs to— Understand the behaviour and attitudes of the customer — Review its nurturing strategy — Assess how campaign performance is tracked and measured— Analyze campaign processes and the tools supporting these— Review whether current skills and staffing are in line with

campaign management needs— Asses the sales funnel and how leads are moved through that

funnel Based on the above assessment, the marketing organization

may conclude that it needs to transform its campaign management

Objectives & scope of this document

To explain how organizations can improve their marketing effectiveness by automating the campaign management processes

In scope:— B2B campaigns

Introduction

This document shows how B2B organizations can improve marketing effectiveness by automating their campaign processes

3


Content

Introduction


management

Solutions for increasing

campaign effectiveness

Our approach

4


5

Typical pitfalls in B2B campaign management process

At B2B marketing organizations, often funnel stages are undefined and campaign management processes are not mapped or automated

Objectives/ KPIs are not defined

Sales is not involved in campaign objectives

Marketing responsible for lead generation in stead of revenue generation

Ineffective supplier management

No true personalization

Learnings of previous campaigns are not incorporated

Tools used are not state of the art

No A/B testing

Campaign performances is not well monitored

Leads created are not properly followed up or handed over to sales

Tools used for monitoring track insufficient data

Campaign is not evaluated

Analysis is not translated into learnings

Evaluation not in line with campaign objectives

Customer insights & segmentation

Define campaign objectives

Designcampaign

Execute campaign

Evaluate campaign

Lack of data enriched database and insight management

Lack of customer segmentation

No 360 degree insight into customer

Campaign management & strategy

Funnel stages and responsibilities are undefined No seamless handover of leads from marketing to sales No efficient automated lead qualification in place No nurturing strategy in place

Campaign management processes are not mapped Campaign management processes are not automated


Our view on why campaigns are not sufficiently effective

There are 6 main challenges preventing B2B organizations from having an effective campaign management

6

Customer centricity

Strategy There is no clear campaign or nurturing

strategy and no long term campaign planning

Campaign effectiveness Campaign processes are often ad-hoc and not

well defined

Skills & staffing No sufficient campaign management expertise

present (internal or external with agencies) Lack of resources

Lead management Lead management processes are not well

defined between marketing and sales

Tools Available campaign management tools don’t

have the needed functionalities for adequate automation

Monitoring KPIs are not defined, unclear, monitored or

acted upon


In B2B markets, marketing & sales functions are key in creating a competitive advantage, but they have difficulties in achieving return on marketing investments

Challenges in effective B2B marketing

Source: Forrester, 2010

What are the biggest challenges according marketeers?

Challenges in the marketing organization Marketing focuses on lead quantity at the

expense of lead quality Having visibility into the progress and

outcomes of leads once they’re distributed to sales

Awareness and engagement with B2B decision-makers

Demonstrating marketing impact on business 40%

Increasing product/service awareness 41%

Improving lead quality 44%

Reaching decision-makers 46%

Generating more leads 50%

Making partner relationships more productive 20%

Allocating the marketing budget across the mix 22%

Deepening customer insight/relationships 22%

Improving customer data quality and availability 25%

Understanding buyer/prospect behavior 27%

Retaining customers, developing loyalty 30%

Enabling sales, improving sales support 32%

Developing the company’s brand 34%

Working within budget/economic constraints 37%

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The state of B2B demand generation is weak due to absence of a lead management process, no alignment of marketing & sales and no adoption of marketing automation

Marketing and sales follow a seamless process 5%

Marketing and sales follow a mapped process 18%

Marketing and sales agree on funnel definitions 38%

Marketing generates leads and passes them all to sales 39%

"Which best describes your adoption of marketing automation?"

Marketing consistently generates sales-ready leads 14%

Marketing and sales operate autonomously

42%

28%Marketing is as facilitating between products&sales teams

16%

Generated leads and throws them over the wall to sales

Sophisticated users 4%

Implemented and making great progress 12%

In the process of implementing 9%

Evaluating 10%

Have not implemented 42%

Implemented but barely scratching the surface 23%

Reasons for the weak state of B2B demand generation


“Which best describes your lead management process?" "How does a prospect perceive the experience of interacting with your company?"

Reasons for lack of demand generation Most B2B firms don’t have a lead management

process Marketing and sales teams work at arm’s length Marketers educate but don’t engage Marketing and sales woefully underutilize marketing

automation opportunities

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Importance of a nurturing strategy

B2B organizations risk to lose huge sales potential without having an effective nurturing strategy in place

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80%gets no

follow up

80%buys anyway from you or

your competitor!

70% is disqualified

20% is followed up 30% is

qualified

20% don’t buy

All leads Active leads Cold leads

Source: Sirius decisions, 2009

Marketing automation helps B2B organizations to stay on top of mind of unqualified leads


Ineffective lead qualification

Inefficient leads qualification results in waste of sales time, high marketing costs and lost opportunities

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Leads leak out the sales funnel

Suspect ProspectQualified

Lead

SalesAccepted

Lead

SalesQualified

Lead

€€Customer

Issue:Marketing hands off leads too early. Leads waste sales’ time

Issue:Marketing spends more to recapture lost leads

Issue:Sales cherry pick leads, letting longer-time-frame leads leak out

Leads leak out of the funnel


Measurement performance

Laggards underperform both on campaign analysis and data quality

Marketing campaigns driven by numbers Data quality and accessibility, by best-in-class

48%

16%

20%

43%

29%

18%Deliver marketing analysis on a programmatic and channel basis

Customer behavior is used to target and segment more effectively

AverageBest in class Laggards

Dissatisfied with customer data quality44%

32%

Satisfied with custoomer data quality36%

48%

36%

Satisfied with customer data accessibility48%

44%

Dissatisfied with customer data accessibility40%

All othersBest in class

To improve marketing effectiveness, campaign measurement has to be in placeSource: Aberdeen, 2011

11


Changing customer behaviour

Changes in customer behavior are making the marketing automation mission crucial for B2B organizations

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Consequences for organizationsChanges

Buyers do more research on their own

Business buyers have increased the time they spend talking to peers and colleagues before engaging with vendor sales reps, and they do this increasingly online

This requires marketers to use automation to monitor the information needs of the potential customer to deliver additional information that helps buyers move to the next stage of the problem-solving cycle.

There are fewer active buyer cycles

While buying cycles are getting longer, a smaller percentage of prospects in the marketing database are in active buying cycles at any one time

Marketers need automation to listen for buying signals

More stakeholders are involved in buying decisions

More stakeholders affect the purchase decision than in the past, including line-of-business managers, IT, finance, and procurement

Marketing needs to deliver information that explains the offerings and business outcomes as they relate to the particular interests and concerns of each stakeholder



Content

Introduction


management

Solutions for

increasing campaign

effectiveness

Our approach

13


Our view on campaign effectiveness

Building a lead-to-revenue-management process supported by marketing automation ensures that marketing focuses on things that matter, ultimately resulting in more revenue

Campaigns Lead capture Lead qualification Sales funnel Reports & Dashboard

Track which campaigns lead to leads

Track the behavior of prospect

Supply content based on person’s behavior

(automatically) Assign scores to specific leads

Assign leads to specific sales reps.

Follow leads through the sales funnel

Provide content to help close the deal

Nurture leads by providing relevant content

A solid campaign management approach avoids leakage in the funnel and provides 100% visibility on campaign effectiveness

Track marketing effectiveness (revenue, ROI etc.)

Track sales force effectiveness (conversion, effort etc.)

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Capgemini’s Campaign Effectiveness Model

All elements of the Capgemini Marketing Automation Model needs intention to increase the return on marketing investments

Nurturing strategy

Lead management

processes

Campaign effectiveness

Skills & Staffing Campaign

performanceMonitoring

Marketingautomation

tools

Customer CentricCulture

1. Analyze current sales funnel

2. Develop improved sales funnel together with sales for a seamless handover of leads

1. Analyze business requirements2. Assess available marketing automation

tools3. Implement tools and integrate

with CRM

1. Define KPIs of campaign performance2. Develop continious learning cycle

(benchmark & best practices)3. Set-up dashboard

1. Assess needed people & skills2. Identify gap

3. Training & education

1. Assess current campaign processes2. Identify improvements area

3. Implement new processes

1. Assess current maturity2. Define campaign management

goal & vision3. Design nurturing strategy

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Contact details

Send us an e-mail and we will provide you with the whole presentation and additional content about how to increase return on marketing investments

16

Marie-Christien van WensenSenior Consultant Digital Transformation

Phone: +31 653317218E-Mail: [email protected]

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