Marketing Campaign Management

Page 1

MARKETING CAMPAIGN MANAGEMENT DESIGN

Using the Integrated Performance Solution (IPS)® to create effective marketing campaigns

Copyright 2013 George B. Lampere, Ph.D.

Page 2

Issue: The traditional approach to creating marketing campaigns no longer is effective. Internal data, existing CRM systems, outdated workflow, combined with outdated perceptions and behaviors has created costly and inefficient marketing campaigns. Approach: Using the activities of the Integrated Performance Solution®, a structured, collaborative method was used to aligning the People / Organization, the Business Processes, the Technology, and the information / Knowledge Management.Solution: Senior leadership had a transformational blueprint and road map to create a marketing campaign management process within 8 weeks that was fully supported and aligned with the business.


Page 3

Key Best Practices Operational goals are defined forecasted, and planned. Analysis of previous campaigns can be used within the campaign planning

process to maximize success and avoid previous failures. Historic information allows precise campaign targeting. Leads are qualified and scored before passing to Sales to maximize their time

spent selling. Leads that are not yet sales ready can be fed into nurturing campaigns. Leads are tracked by Marketing through the sales cycle to see if the leads they

generated were of the correct type and quality. Campaigns can be analyzed by the number and quality of leads they

generated, the number of leads passed to sales, the sales cycle length, the number won and lost.

Can provide ROI measurement of marketing budget and help in forecasting marketing expenditure based on sales targets.

Closed Loop Campaign Management

The closed loop campaign management process provides continuous feedback to refine product offerings and campaigns to improve both retention and lead qualification.


Page 4

1. Planning 4. Evaluating2. MODELING 3. Executing

Level 1 - Future State Campaign Management Process

The campaign management process is divided into four distinct sub-processes.

Each sub-process has a clearly defined input and output with results that are measurable.

This is an iterative process, designed to provide refinement of each campaign to achieve a level of efficiency and performance for the business.

The campaign management process is built upon industry defined functionality, proven best practices, and capabilities achievable in the updated CRM and the supporting architecture.

The primary goal is to provide a holistic profile of the target customer using multiple data sources. Workforce automation and workflow shift competencies away from administrative tasks toward a collaborative team environment focused on problem-solving and decision-making.


Page 5

1. Planning 4. Evaluating2. Modeling 3. Executing

Planning Process


Page 6

Con

cept

10. Detailed Action Plan

9. Marketing Budget

8. Create Alternative Plans

7. Forecasts of Expected Results6. Marketing Objectives & Strategy

5. Marketing Assumptions

3. Marketing Audit4. SWOT Analysis

2. Corporate Objective

1. MissionGoal Setting

Analyzing the current Situation

Creating the Marketing Strategy

Allocating Marketing Resources & Monitoring

Several activities have to be completed to arrive at a strategic marketing plan. This strategic planning process aligns the business goals to the marketing effort, and will define the campaign.

Marketing Planning Process links the business goals to the campaign


Page 7

Process Description: The strategic planning process starts by identifying and defining the operational goals and priorities that are

needed by the marketing department to generate revenue. Budgets are established at a high level which will be divided into the variety of campaigns. Resources are allocated at a high level to support the various marketing campaigns. Financial forecasts are made to determine program ROI.

Products and services are designed to satisfy specific customer populations. Customer needs are analyzed and adjusts are made to the products and services based upon selected target

markets, and business needs. Once the products and services have been developed, the marketing department segments the market to

position the offerings.


Page 8

Process Name

1. Operational Strategy and Planning Process

Purpose The business goals and operational strategy is translated into short term opportunities that defined by product and service objectives to be developed. These products and services are positioned into marketing campaigns that will target specific customer segments

Owner & Description

Owner:Description: Strategic planning is a high level activity that translates the business goals into practical plans where resources can be defined such as: people, time, finances, and effort. Products and Services are identified to meet the needs of both the customer and the business. Each offering is designed to target a specific segment with a defined service life. Understanding these requirements is essential for the development of marketing campaigns.

Beginning & Ending

Begins with: Business strategy, priorities, goals and operational objectivesEnds with: Defined products and services for specific target audiences

Inputs & Outputs

Inputs / Triggers: Resources, budgets, priorities Outputs: Product and Service requirements

Key decisions

• Prioritization of objectives• Financial forecasting and budget to manage campaigns• Competitor products and services• Selecting appropriate target markets• Prioritization of customer needs• Selecting and supporting innovation opportunities

Operational Strategy and Planning Process


Page 9

Industry Best Practices – Operational Strategy and PlanningBest Practices Description

Use a Balanced Scorecard

The balanced scorecard is used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.

Manage by defined metrics

Metrics focus on the performance against customer requirements and value. In campaign management, performance metrics are used to assess the health of the campaign and consist of the measuring of six criteria: time, cost, resources, scope, quality, and actions.

Include operational culture alignment as part of the transformation initiative

Creating an adaptive, constructive operational culture is an important factor in achieving increased financial ROI. Research indicates on average 900:1 increase.

Use analytic toolsAnalytic tools provide a multi-dimensional view of the business operation for planning and forecasting over conventional reports.

Create a customer centric process

Placing the customer in the center of the process provides greater collaboration and ability to respond quicker and more accurately than a customer focused approach which tends to be reactive.

Implement Knowledge Management

A knowledge management system / process enables your organization to capture and evaluate knowledge, and lessons learned from past performance so that past mistakes or inefficiencies will not be repeated.

Closed-loop, iterative process

Campaign management is a continuous process where with each iteration, the process is refined and adjusted to meet the evolving requirements of the business and the customers.


Page 10

Strategic Planning Metrics

Description

Revenue Factor Takes the revenue a campaign generates and attributes this to each regular full-time equivalent (FTE).

Income Factor Takes the pre-tax profit a campaign generates and attributes this to each regular full-time equivalent (FTE).

Management Ratio The number of regular headcount employees each manager and executive supports (AKA span of control).

Human Capital ROI The pre-tax profit an organization generates for each dollar invested in regular employee pay and benefits after non-human expenses are removed.

Employee Cost Factor The average compensation paid to each regular full time equivalent (FTE) employee.

Training Cost Factor The average amount spent on training for each regular employee receiving training.

Operating Margin The ratio of operating income divided by net sales

Product / Service Metrics

Description

Customer Satisfaction

The level of satisfaction that the customer expresses to a particular product or service

Life Span Ratio The forecasted product / service duration compared to the actual duration

Market Segmentation The target market segment ratio that the product is specifically designed to the total target population

Fulfillment Ratio The number of existing customers vs. the number of new customers forecasted that the product/service is designed

Operating Strategy and Planning Metrics


Page 11

Segmentation Sub-Process


Segmentation


Page 12

Con

cept

What is the “Ideal” customer for the product or service offering?

What would that “Ideal” customer look like?

Modeling creates a 360 degree view of the customer


Page 13

Public Records for People and Companies• Real estate sales and ownership • Postal service change-of-address

records • Telephone books, past and present • Automobile registration records • Other vehicle registration, i.e.,

boats, private airplanes • Subscription lists for magazines

and periodicals • National marketing databases • National email directories • Voter registration lists • Bankruptcy filings • Court proceedings/judgments • Professional licenses • SEC filings • Tax lien records • Credit bureau records • Whois domain name registration

records • Social Security Death Index

Company Information

• Hoovers• Duns (D&B)• OneSource• Market Watch• Goliath• Company Web sites

Information available on the Web• Equifax• Experian• Tans union• Zebra Search• US Search• Canada 411• People find• People Search• Google• Face book• Twitter• Linked In

• Create a 360 Degree View of your Target Customer through profiling.

• Better understand your customers needs.

• Match campaigns to a specific target audience.

• Use the information to filter the campaign.

• Information is available internally (customer records) and through external sources.

Information available to crate a profile of the target customer and to define the marketing campaign.

Con

cept


Page 14 Copyright 2013 George B. Lampere, Ph.D.

Page 15

Process Name

Segmentation and Targeting Process

Purpose Segmentation and targeting is needed to match the customer or potential customer with the most appropriate product or service with the least amount of resources.

Owner & Description

Owner:Description: Profiles are created based upon a variety of filters defined by sociographic, demographic, and psychographic criteria to create an “ideal” profile of the customer that would best fit the product or service offering. The data is collected using a variety of sources both internal and external. The data is sorted and cleansed to reveal a single version of the truth. Then the target segments are matched against the product or service.

Beginning & Ending

Begins with: Identifying the segmentation filtersEnds with: Targeting segmented population to the appropriate product or service

Inputs & Outputs

Inputs / Triggers: Identification of the segmentation filtersOutputs: Segmented target audience groups

Key decisions

• Selecting the various segmentation filters• Determining existing customer requirements and satisfaction needs• Identification of the “Ideal” customer profile for the product / service• Rating and prioritizing high value characteristics• Determining the appropriate version of the truth of the data source• Identification of target audience characteristics by product / service

Segmentation and Targeting Process


Page 16

Best Practices Description

Reduce manual data entry

Manual data entry can create errors and take time. Capturing data and populating fields from various databases reduces the administrative task

Profile target audience

Create a complete view of target audience characteristics to create a profile prospective customers. Use Sociographic, (education, economic, employment); Demographic (age, generational, family size) and Psychographic (values, lifestyles, personality, culture)

Adjust target parameters during the campaign

During the campaign, filters and parameters can be adjusted to regulate the response.

Identify the best version of the truth

There are a number of data sources that provide the same or similar information but report different values. Determine which source is most reliable to select as the standard

Recognized aged data

On average the rate of data change is 2% per month or stated in other terms, an organization will completely purge all of their information about every three years. Outdated data is worthless and costly to maintain

Do not duplicate data, use meta data to draw from

Data storage is costly and time consuming. Multiple sources of the same data is difficult to manage. Using meta data will define the characteristics of the data to be accessed.

Keep data accessible as possible

Limit the controls placed on accessing data in the workplace to allow various groups to make a complete analysis to perform problem-solving and making informed decisions

Limit the use of reports

Reports are primarily management tools used for compliance, and process control. Reports show one point of view and are a moment in time. They often limit the ability to make quick operational decisions.

Use analytic tools for problem-solving and decision-making

Analytic tools enable the user to view the problem from differing points of view. Using real-time data, analytic tools assist the user in making quick, informed choices.

Dashboards provide monitoring at a glance

Dashboards provide a graphic display of key performance indicators that are identified at various stages of the process. The information is provided in real time where adjustments can be quickly made

User defined portals assist in managing the process

Each defined position has unique decision-making requirements. Allowing the user to identify their specific needs and display them in a user defined portal enhances their performance.

Industry Best Practices – Segmentation and Targeting


Page 17

Segmenting and Targeting Metrics

Description

Requirement satisfaction The number of requirements identified to the number of requirements satisfied per product or service

Trend rate That rate of changing segmentation requirements per target group

Sales Close ratio The number of sales closed per target groupQualified lead to sales close by target The number of qualified leads of a particular target group that ended in a saleLead to qualified lead by

target The number of unqualified leads that qualify by target group

Qualified lead to sales close by product / service type

The number of qualified leads that result in a sales close by product / service type

Lead to qualified lead by product / service type

The number of unqualified leads that qualify by product / service type

Segmentation and Targeting Metrics


Page 18


Modeling Process


Page 19

Con

cept

12; 12%

18; 18%

6; 6%

21; 21%2.5; 3%

9.5; 10%

11; 11%

4.5; 5%

7.5; 8%

2; 2%1; 1%2.5; 3% 2.5; 3% GenderAge GroupIncomeEm-ploy-mentIncome levelLocationIn-vest-mentsMarital sta-tusFamilyJob typeCreditTax

ProductProduct

ProductProduct

The purpose for modeling is to allow your marketing campaign to focus on the subset of prospects that are "most likely" to purchase your product / service offering. If done properly this will help to insure the highest return for your marketing/sales expenditures.

Modeling uses “Filters” that can refine the target population to get the best return.

Modeling aligns the target population to the appropriate product or service offering



Page 21

Process Name

Campaign Modeling Process

Purpose To test and analyze the results prior to executionOwner & Description

Owner:Description: The campaign modeling process is designed to replicate a the live campaign to forecast ROI and resources without actually committing resources to determine if it will yield the expected results.

Beginning & Ending

Begins with: The design of the specific marketing campaignEnds with: A decision to execute based upon a forecasted model

Inputs & Outputs

Inputs / Triggers: business objectives and priorities, available resources, and a forecasted outcomeOutputs: A well analyzed and planned marketing campaign.

Key decisions

• Are the business goals and priorities defined specifically for this campaign• Are the marketing objectives clear for this campaign• Do the appropriate resources exist to support and sustain the marketing campaign• Does the marketing research support the projected returns for this campaign• Do the forecasting models show projected returns by channel and target audience group• Have the alternatives been identified and evaluated• Do the alternatives provide a viable solution• Are alternatives available if needed• Does the marketing mix provide the most effective results based upon a cost / benefit

analysis• Is the organization and products / services ready to commit to going live with the marketing

campaign

Campaign Modeling Process


Page 22


Provides an open source solution to the enterprise that utilizing centralized metadata

Only meta data is stored to save money and avoid duplication of data.

Application configured an a way that reduces the need for manual input of data

The manual entry of data created an increase of errors and will slow the process. There should be very little need for the call center to implement data. Allow the customer to input data.

Ability of access data from all data sources

The new CRM system functionality is designed with SOA that allows the application to accept various sources of data from different formats.

A single administration portal or screen is used to support multiple marketing administration functions, different product lines, geographies, and customer segments.

For ease of administration, a portal or screen is used to administer all campaigns. Using a screen or portal for each campaign creates a administrative nightmare that is uncoordinated.

Analytic tools are used to perform a cost / benefit analysis for the campaign.

It is important to determine the financial return on investment for the specific campaign. This analysis will include the cost per marketing channel, the number of staffing resources, advertising dollars spent, the lead generation rate per channel, and the lead qualification rate.

Stored / Archived campaigns

It may be determined that the present market conditions are not favorable to support a specific marketing campaign. Unapproved campaigns can be stored and used when conditions are more favorable with little effort.

Business rules and workflow creates used in the approval process

Inputs to the campaign such as budgets and other resources control the cost associated with the campaign. If the model shows that the controls exceed the defined limits, then the budget can not be approved unless other conditions are met.

Industry Best Practices – Campaign Modeling Process


Page 23

Campaign Modeling Metrics

Description

Campaign cost/benefit The overall expense of the campaign vs. the forecasted revenue.

Channel Cost The expense of the marketing channel vs. the forecasted revenue produced by that channel

Target to Product ratio The forecasted target population that will respond to the product being marketed

Channel mix ratio The forecasted target population per marketing channel

Plan marketing mix The percentage of target audience segments per offering in the campaign

Channel access time The amount of time to generate a given number of leads from a specific marketing channel compared to other channels

Data quality by source

The level of quality (completeness, accuracy) of the data that is provided from an outside vendor

Campaign Modeling Metrics


Page 24

Lead Management Sub-Process


Lead Management


Page 25

• Leads

• Prospects

• Clients

• A• Attract Attention

• I• Raise Interest

• D• Create Desire

• A• Generate Action

A sales pipeline or sales funnel refers to the multiple states in the customer interactions that must be properly managed.

Here is an example of a simple sales pipeline that defines three stages. The AIDA approach is used for each of the three stages.

The purpose of performance management within a pipeline is to monitor sales efforts in relation to existing and potential customers, thus forecasting short-term sales and workload.

Con

cept

The Sales Pipeline



Page 27

Process Name

Lead Management Process

Purpose For better utilization of resources, the Lead management process is designed to identify unqualified leads and turn them into qualified leads to allow the sales staff to focus on closing the sale.

Owner & Description

Owner:Description: Unqualified leads are captured from various channels and routed to the appropriate area or person. These leads are validated, information is updated or verified, then go through the qualification process. If qualified, the lead will be routed to the appropriate sales associate. Those leads that are not qualified will get archived for later processing.

Beginning & Ending

Begins with: An active campaign will capture unqualified leads through various channelsEnds with: Qualified leads are funneled to a sales associate to close. Unqualified leads are archived for use in new campaigns.

Inputs & Outputs

Inputs / Triggers: Target customer responds to campaignOutputs: Qualified leads to appropriate sales associates / unqualified leads for future campaigns.

Key decisions

• Determination of how unqualified leads are assigned• Determination of qualifying questions• How are leads validated• What determines qualification questions• Determination of assigning qualified leads to sales associates

Lead Management Process


Page 28


Develop leads prior to selling

Lead development is the process of using the Web, e-mail, phone, social media, and other online and offline channels to build relationships with qualified prospects who are not yet sales ready.

Use thought leadership to qualify leads

Demonstrate the value to provide and to position the client as a trusted partner to provide the product or service

Determine when a lead is sales ready Develop criteria to determine what steps or qualifying questions need to be asked

Monitor a lead’s online activity

Using web 2.0 the ability to monitor online activity is available to determine when they are ready to make the next move. Tack clicks, downloads, web page visits, etc.

Score lead activity Lead scoring provides a level of interest based upon their behavior not just their words. This is well suited for web functions

Provide a smooth transition from lead qualification to Sales

Provide the sales associate with detailed information that the qualified lead was seeking. Include any other important information that will help provide the sales associate with enough information to move forward.

Use templates and scripts to qualify

Create a list of qualifying questions, use a script when talking by phone, or an email temple. Reference marketing materials that the lead may have viewed or downloaded.

Adjust lead thresholds

Make adjustments to the qualification scoring criteria based upon business conditions

Archive leads for further follow up

Leads and opportunities that do no result in a sale close should be recycled to provide them with other opportunities based upon various campaigns

Track every marketing activity not just lead source

Identify which campaigns have the greatest influence on the sales pipeline. Determine which type of lead responds to the campaign

Track anonymous visitors and tie their data to new leads

Imbedded coding or cookies on web sites helps to track anonymous visitors who make repeat visits. Track and link email, SMS, and other forms of electronic messaging to leads

Industry Best Practices – Leads Management Process


Page 29

Lead Management Metrics

Description

Cost per opportunity The total cost involved from taking an unqualified lead to the opportunity

Cost per qualified lead The total cost involved from lead capture to being qualified Lead volume per

qualification The amount of unqualified leads per every qualified lead expressed in a ratioQualified lead to close time The amount of time it will take for a qualified lead to a closed saleLead capture to

qualified timeThe amount of effort in time it will take from acquiring a lead to the time it takes to qualify the lead

Total actions The total number of actions it will take to qualify a lead. This is from lead capture through qualification

Qualification Rate per campaign

The rate expressed in percent of the conversion from a unqualified lead to a qualified lead per each campaign

Benchmark qualification rate

The difference between the estimated qualified leads to the actual qualified leads per campaign

Lead Management Metrics


Page 30

Conversion and Retention Sub-Process

Conversion & Retention


Lead Management


Page 31

Con

cept

Primary focus of customer management and retention process is the reduction of manual processes.

Workforce automation, work triggers, and integration transitions the work from administrative activities to problem-solving and decision-making roles.

• User defined business rules allow specific actions to occur

• Workflow automation routes information to the most appropriate person• Triggers are set by specific actions performed.• Integrated data eliminates or reduces manual entry by the staff thereby

reducing both time, and errors.

Shift work from administrative duties to a knowledge-based role



Page 33

Process Name

Conversion and Retention Process

Purpose The ability to be proactive to converting and retaining customers after leaving their place of employment or entering into retirement.

Owner & Description

Owner:Description: The process is designed to proactively respond to changes in the member status of their existing account by providing automated triggers, coordinated and complete information and multiple access points for the client customer to access. The activities are coordinated to respond quickly with the right information and provide the appropriate level of service based upon defined criteria and business rules.

Beginning & Ending

Begins with: Member inquiry or action to either convert or change their accountEnds with: The member making a choice to convert to another product or transfer their account

Inputs & Outputs

Inputs / Triggers: Member Inquiry or action via one of multiple access modesOutputs: Member provided required package information or other product / service offerings to make an informed decision quickly.

Key decisions

• What business rules are needed per action• What are the termination events, their sequence, and timing• What are the key triggers that will automate the distribution of package options• What literature needs to be sent based upon the request• What is the appropriate time that the information needs to be sent• What is the appropriate delivery mode for the information• What are the factors that direct the member to either the call center of a field sales rep• Is the information complete, up-to-date, and accurate• How are opt out choices being captured and treated

Conversion and Retention Process


Page 34


Multiple access modes available to customers

Provide customers with multiple ways to access the system to make inquires or take actions 24/7. Options include but not limited to: post, email, phone (live), phone voice response, texting, web, SMS, or in-person

Workflow triggers can be set based upon customer response and other conditions.

Based upon business rules and other criteria, automated triggers are used to start or stop events. The customer and/or representative has the ability to control these triggers

Workflow automationEliminate the administrative tasks that are associated with processing an action. This allows the representative to focus on managing the customer and not the process

User defined business rules

Business rules that control the triggers and workflow activities can be configured by the business user and not the IT department. These business rules can customized to each product or service offering

Activities and tasks can be triggered based upon customer responses

User defined business rules that are incorporated into the application which allows specific automated triggers for specific actions to occur

Customer responses can be processed automatically

Depending upon the access point, a customer can create an action without having to talk to a representative. The action is identified by the representative.

Depending upon the way the customer / prospect responds, their response can be routed differently to provide quicker and accurate service.

There are priority levels that are establish to funnel the customer to the right person or area. For example: low value accounts may be directed to the call center, where high value accounts are directed to an agent.

Workflow automation allows for approvals among key stakeholders defined in the process

Paper is eliminated through the use of workflow and automation to speed the processing of key events. Timing may be set if a person does not respond within a predefined time.

Industry Best Practices – Conversion and Retention Process


Page 35

Conversion and Retention Metrics

Description

Entry access ratio The number of times a particular access is used by a customer compared to other access points. (Phone, email, web, etc.)

Call volume per call center

The number of product or service calls the call center receives over a given period of time

Call volume per agent The number of product or service calls an agent receives over a given period of time

Redirected calls The number of calls received by the call center that need the attention of an agent

Resolution percent The number of issues that were resolved on the first call

Retention Ratio The number of customers retained from the customers action to leave the company or retire

Accuracy rate The percentage of correct responses based upon automated triggersService to product ratio The number of service related calls vs. product sales calls

Conversion and Retention Metrics


Page 36


Evaluating Process


Page 37

Using the Integrated Performance Solution®, a new and effective Marketing Campaign process was created.Listed are some of the key elements that made this successful:1. Creating an end-to-end process of the marketing

campaign process2. Using the technical capabilities of the CRM, Analytics, and

Social Networking enhance the process, not drive the process.

3. Redefining the organizational structure, job roles, competencies, and behaviors to support the process

4. Leveraging the information from several sources to create an “Ideal” profile of the customer.

5. Using metrics and measures throughout the process.

Summary


Page 38

For more information contact:George B. Lampere, Ph.D.Managing DirectorNavitsumo Consulting Ltd.847-794-8910www. [email protected]

The Integrated Performance Solution and IPS is a registered trademark of George B. Lampere, Ph.D.

mailto:[email protected]