Critical success factors for integrated marketing communications Sept 2013

Driving Growth Through

Customer Centricity

The 90 Day Plan

Change Marketing … Improve your Revenue & Become More Effective

James Vander Putten

2

Change Marketing To Drive Customer Centricity

In order to improve revenue, Marketing needs to change!

The Critical Success Factors (CSFs) define the core marketing

competencies necessary to drive customer centricity and

marketing efficiency. They are:

– Formalized Commitment To Customer Centricity

– Strategic Thinking

– Program And Campaign Planning

– Campaign Execution

– Communications’ Relevance

– Content And Offer Supply Chain Management

– Online Marketing: Reputation, Engagement. Demand Generation

– Funnel And Pipeline Management

– Knowledge Management And Sharing

– Data Warehousing & CRM Infrastructure

3

‘Best In Class’ means:

– The CEO has declared a Customer strategy

– Thee are corporate goals for Customer loyalty

– The strategic driver of your business is long-term customer value

– Business owners manage Customer portfolios

– There are operationalized routes to market

– Customer requirements are validated through market research

– Customers become advocates

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Formalized Commitment To Customer Centricity

4

Customer/Channel … Not Product Management

When you change marketing, Customer Portfolio Managers

use product portfolios to drive share and revenue

Product Portfolio Managers do not go seeking a market

Product

Portfolio

Product

Portfolio

Product

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Portfolio

Product

Portfolio

Product

Portfolio

Product

Portfolio

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Portfolio

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Build What Customers Need

Financial Services Example

Large

Enterprise (> $500.0mm, > 1.0k employees)

$ Opportunity for

“X” Pain

Solution

RTM

Mid-size

Enterprise (>$101.0mm - $500.0mm

> 50, < 1.0k employees)

$ Opportunity for

“X” Pain

Solution

RTM

Small (>$50.0mm - $100.0mm

> 50 employees)

$ Opportunity for

“X” Pain

Solution

RTM

And deliver the solutions through the right channel for that

Customer Portfolio

6

Why Formal Customer Focus Matters

Ramifications of Failure:

– Product- based marketing creates confusion about who you are

– You annoy customers though redundant touch

– You experience longer product adoption curves

– You struggle for customer advocacy

– You have higher costs for customer acquisition and retention

– You diminish you Brand Value

Benefits of Success:

– You become easier to do business with

– You create more loyal customers

– You do not have to work as hard to sell

– Your marketing investments have better returns

– You improve your Brand Value

7

Strategic Thinking


– Insight derived from customer research and behavior analysis is the

foundation for business, product and marketing planning

– Cross functional dashboards and scorecards are reviewed weekly by

senior managers

– Advanced knowledge workers are valued and seen as vital

– Analytic skill is a “rated competency” for the entire business

– The business knows its customers’ lifetime values, which ones are

growing, which ones are declining … and why

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8

Analytics Align Customer Requirements to the Business

The more you know, the better you communicate, the better you

are understood, the better you sell

Profitability

Relationship

Relevance

Insight

Knowledge

Information

Data

Data

Process

Analytic

Process

Marketing

Process

Business

Process

9

How Analytic Thinking Helps


– You don’t know why and which aspects of marketing and funnel

management works

– You defend anecdotal decision making

– Credibility of the Marketing Organization suffers as a driver of

business versus being a cost of business


– The organization can create and invest in winning strategies

– The organization can defend and amend resource allocation

– Marketing costs go down

– Total customer experience improves

– The organization can better drive revenue

10

Program and Campaign Planning

1 2 3 4 5 6 7

‘Best in class’ means:

– Formal 1 and 3-5 Year Plans and business goals are in-place defining

revenue, margin, regional focus, and high-level product strategies

– 1 Year business goals cascade down from the C-suite to: Customer

Portfolio Management, Product Management, Sales, Service, Campaign

Marketing

– Program, Campaign Marketing , Sales and Services coverage

commitments build upwards

– Business cases rationalize program and campaign investment

– Roles, responsibilities, and deliverables for all members of cross-

functional teams are governed by formal SLAs and RACIs

– Executive dashboards and quantifiable metrics provide transparency

– The business owners use Project Management to optimize the process

and your entire organization embraces it

11

Cascading Planning Process

Pla

n

Strategic Business Plan

Out-puts: Financial Requirements

(X Product Lines, Geographies), Services requirements

Plus New Strategic Opportunities

Inputs: Product History, Financial History, Financial

Requirements, Market Research, Market Readiness

Product Management & Marketing Plan

Out-puts: Program Plan Including: Operational Segmentation, Core

Messaging, Value Props, White Papers, Offers (X Products and

X Regions), Services Requirements Plus Product Requirements &

Availability

Product

Pipeline

New

Products

Steady-

State New

Release

Product

Management

Service Sales

Marketing

Revenue

Pipeline

Marketing &

Sales

Marketing &

Sales

Interlock

Resu

lts

12

Why Better Planning Matters


– Organizational misalignment and friction

– Inability to prioritize marketing resource allocation

– Down-stream execution team frustration and burnout

– Failure comes as a surprise … and is repeated

– You miss your numbers


– Resource investments align with strategic opportunities

– Organization is able to “get on board” and embrace the goals as

cross functional teams gain ownership of the plan

– You learn from your mistakes

– There is a better chance to hit your numbers

13

Campaign Execution

‘Best In Class’ means-

– Activities are executed with-in acceptable and agreed to timing and

cost allowances as determined through formal SLAs

– Production metrics are in-place and are formally tracked and reported-

on to appropriate levels of senior management

– The marketing organization achieves continuous improvement (CI)

across all campaigns

– Cost per touch continuously goes down over time

– Lead quality goes up

– Marketing automation is enabled

– Marketing outcomes and Expense to Revenue (E:R) ratios are

predictably reliable

1 2 3 4 5 6 7

14

Four Standard Messaging Strategies

Product life stage, Customer status drives messaging strategy

15

Business and Marketing Objectives Determine Campaign Architecture

16

Value of Good Campaign Execution


– Cross BU friction

– Loss of in-market impact and marketing traction

– The process keeps getting more expensive resulting in tactical cuts versus tactical optimization

– It is difficult to manage highly targeted, automated campaigns

– You don’t get better at this


– Cross BU camaraderie and support

– Marketing investments create better impact in the market place

– Nurturing and micro-segmented execution is reasonably accomplished

– Lower cost per touch

– You can adjust campaigns on the fly easier

– You can shorten GTM cycles

17

Communications’ Relevance

Best In Class’ means:

– Customers believe that you understand them

– There is an agreed upon messaging architecture that leads with

business value, not product features and benefits

– A formal content supply chain is in place for core messaging and

robust offers

– Content varies based on customer buying cycle: Awareness,

Consideration, Purchase, X-sell and Up-sell with formal refresh

cycles

– Content addresses specific roles and tasks using the right touch-

point

– Brand guidelines exists and are monitored and adhered to

– “Site stickiness” is achieved and repeat visitor rates increase

– Your customer engagement and reputation improves

1 2 3 4 5 6 7

18

Different Task … Different Communication

Influencers and decision makers have different needs at different

stages in the buyer’s journey

Business

Value

Product

Value

Competitive

Value

Product

Features

VP

s &

C S

uite

Pro

du

ct

Users

Buyer’s Journey

Awareness

Consideration

Trial

Purchase

Loyalty

Advocacy

Buyer’s Journey

Awareness

Consideration

Trial

Purchase

Loyalty

Advocacy

19

The Value of Relevance

Relevance drives commerce, not the other way around

Communicate in a manner that tells customers that you

understand their needs and have solutions for them

Profitability

Relationship

Relevance

Insight

Knowledge

Information

Data

20

Why Relevance Matters

Ramifications Failure:

– Reduced customer engagement with your marketing messages …

“there is nothing there for me”

– Insufficient “give” by High-Tech to encourage the visitor to provide

crucial lead profile data

– Need for continuous and expensive marketing “push” techniques

– Longer sales cycles

– Branding suffers


– More customer “pull”

– Leads cost less

– Shorter sales cycles

– More advocates

– Better connection to Branding

21

Content and Offer Supply Chain Management


– Content owners are dedicated to creating customer facing content

based on:

Role and Task

Buying cycle and Product cycle

Freshness requirements

– Roles and responsibilities for core content, offer development

creation and publishing are formalized

– Dynamic personalization can be supported online

– Offers are being tested and evaluated

– Content is re-used across touchpoints … white paper to a blog … to

a tweet … to a slide share etc.

– Content is readily accessible in a DAM

1 2 3 4 5 6 7

22

Content Supply Chain Optimization

Product Marketing takes the lead, but Sales and Marketing GTM

teams are highly engaged in the process

23

Good Content Supply Chain Management


– Campaigns are not as efficient as they can be

– Content is not as relevant as it should be

– The organization claims “ I have no content”

– Content creation is very expensive

– Branding suffers

– Organizational friction


– The organization knows who drive content creation

– The organization knows where the right content is

– Escalation for “missing content” is enabled without rancor

– Content becomes more relevant

– Personalization is enabled

– Customer think “you get them” … you have their answers

24

Online Marketing: Branding, Reputation, Engagement, Demand Generation


– Role and task communications strategy live on the web

– Personalization is enabled and automated on the public website

– Viable “content supply chain” in-place

– Content has been optimized for Search

– Product Managers can “publish”

– Social engagement is measured focused on engagement and relevance

– Global syndication of content is reasonably accomplished

– Partner portals enable eService and eCommerce

– Analytics that enable constant test and learn capabilities are in place

– Tele-web is enabled for lead qualification optimization and sales support

– Campaigns are “always on” driving awareness, engagement, nurturing and X-sell

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Nurture, Nurture, Nurture

25

2,000 3.9%

Campaign Responses

Inquiries 78 58%

Marketing Qualified

Leads MQL 45 49%

Add to Pipeline as

Sales Accepted Leads SAL 22 23%

Opportunity Sales

Qualified Leads SQL 5

New Client Closed-Won @ 400.0k/

Deal

$2.0MM

Nurturing is the

process of interacting

with prospects across

the engagement cycle

to qualify them as leads

that Sales wants

Why Should You Care

26

2,000 3.9% 9.7%

Campaign Responses

Inquiries 78 / 194 58%- 74.5%

Marketing Qualified

Leads MQL 45 / 144 49% - 60.5%

Add to Pipeline

Sales Accepted Leads SAL 22 / 87 23% - 30.7%

Opportunity Sales

Qualified Leads SQL 5 / 26 5 X Return

New Client Closed-Won @ 400.0k/

Deal

$2.0MM

$10.4MM

B2B companies that

deploy rich

nurturing and lead

qualification actions

can improve their

business outcomes

~5X!

27

Always On Campaigns

1,2,3

< 1

28

Marketing Optimization Through Online


– Reliance on expensive touches such as trade shows and tele-marketing for lead qualification

– Campaign go-to-market takes too much time

– Longer lead times

– Greater cost of ownership

– Reduced Brand value


– Marketing investments have better returns

– Campaigns are always available to customers and prospects

– Shorter lead and sales cycles

– Marketing becomes more productive, drive better E:Rs

– You become easier to do business with

– Improved Brand Value

– Lower cost of acquisition and customer ownership

29

Funnel and Pipeline Management


– A CRM tool such as SF.com, MS Dynamics etc. has been

operationalized

– The Sales Force embraces the tool; data has high integrity

– The SFA tool is the sole source of pipeline reporting and revenue

projection

– Marketing manages lead qualification optimization and customer

development campaigns using the tool

– Marketing ROI and Sales efficiency are accurately quantified

– Tele-web lead management and inside sales goals are aligned

– Product Marketing, Sales and Marketing (campaigns and branding)

share bonus incentives relative to the pipeline:

1 2 3 4 5 6 7

30

Pipeline Revenue Management

Across the customer portfolio, product portfolio, lead source and geographies Sr., Sales, Product and Marketing Management needs to know:

Productivity Metrics-

Aging

flow-thru %

Close Rates %

Efficiency Metrics-

Cost Per Lead (CPL)

CPD

CPO

CPD

Suspects

Prospects

Qualified

Leads

Opportunities

Deals

Pipeline Metrics-

Total $

$s at Stage

$s at Probability of

close

5 %

Flow-thru

31

Why Best In Class Funnel Management Counts


– Regional VPs and TSM cannot effectively “drive” the business

– Hard to make reliable revenue projections

– It takes too long to adjust lead generation tactics

– Pipeline measurement is a fire-drill and cause for universal

frustration


– Regional VPs and TSM can “drive” the funnel

– Sr. Managers will know what is going on

– Slippage with leading indicators can be addressed before disasters

arrive … and before opportunities slip away

– Lead optimization costs can be reduced… > web, < tele

– The future is somewhat predictable and the organization can manage

change

32

Knowledge Management And Sharing


– There are adopted and made readily available organizationally

consistent metrics that define:

Customer value

Campaign measurement

Funnel management

– The organization speaks in easily understood terms not acronyms

– Skill-sets of staff managers and directors migrate well between SBUs

and learning curves are reduced

– BUs embrace sharing information

– BUs adopt/use shared information

– Formal KM tool is in-place and embraced by the organization

– Learning is a key priority for anyone you retain and hire

– Your organization values/becomes a “learning organization”

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33

From Babel to Brilliant … Business Process

Efficiency

KM drives organizational learning and alignment through

common “business slang” and metrics

The organization wants to learn more and “connect”

KM tools optimize business process such as virtual communities

and work rooms

Silo

Silo

Silo Silo

Silo

Silo

Silo

Community

&

Productivity

Community

Productivity

Efficiency

Community

Productivity

Efficiency

KM

an

d K

M T

oo

ls

Silo

Silo

Silo

Silo

Silo

Silo

Silo

34

How KM Improves All Processes


– You don’t understand each other

– You fail to leverage good ideas and people; you re-invent the wheel

– You do not learn as well or as fast as you could

– Senior management cannot bridge results and concepts across regions

– Processes cannot scale easily

– Doing business costs more


– You understand each other

– The organization improves

– Everyone gets smarter

– Processes can scale

– Doing business is more efficient

– You get more done … more quickly

35

Data Warehousing & CRM


– Databases support all marketing and sales activities

– Lead funnel management is automated

– Web personalization is enabled

– Marketing automation is enabled and Always On

– Customer profiling and lead scoring is automated

– Systematic database infrastructure changes are not onerous

– Management dashboards are automated across all regions

– There is general alignment with financial systems

1 2 3 4 5 6 7

CRM As The Single Source of Truth That Enables Marketing Optimization

The right tools for the right jobs

Data Keywords Social Metrics Event Venues Privacy &Preferences

Campaign History Geographies Clicks Leads & Opportunities Revenue

Touch SEM Nurture Social Web

Trade Shows Partner Portals Email Tele

Insight Offer Optimization Nurture Changes SEO Targeting

Personae Prediction Touch Cadence Tactic Optimization

Customer Behavior Become Aware, Engage, Buy

Plan &

Execute Measure &

Optimize

37

How DW/CRM Impacts Marketing Optimization


– Total customer experience on line and off is sub-optimal

– Difficult to develop true program and campaign ROI and IRR

– Customer targeting cannot be effectively accomplished or optimized

– Marketing costs keep going up while marketing efficiency keeps

going down


– Marketing spend can be rationalized as an investment

– Generate more leads… and more business

– Marketing automation is enabled

– Dynamic web personalization is enabled and leads to a better

customer experience

– Leading indicators can help you prepare for the future

Critical success factors for integrated marketing communications Sept 2013

Self Improvement

drive customer

regional vps

marketing

product management

senior management

financial

services requirements

marketing