Marketing Campaign Management: The Next Level of Value-Added Services

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1 February 2009 Strategic Assessment Marketing Campaign Management: The Next Level of Value-Added Services Authors Barb Pellow Published by Business Development Solutions Consulting Service - Europe Abstract An integrated marketing campaign is a marketing tool that delivers the right offer or message to individuals at the right time, while delivering the highest value to customers and the greatest profitability to the client. The goal of this type of campaign is to develop a more relevant customer relationship based on growing knowledge about that customer. If effectively used, these campaigns increase response rates, market awareness, and revenue, thereby maximising profits. Integrated marketing campaigns are focused on consistent and relevant communication with customers across multiple touch points. Some marketers view integrated marketing campaigns as the key to driving business growth InfoTrends, Inc. For More Information If you would like to order extra copies of this report, receive permission to use any part of the report, or be informed of upcoming market updates, reports, and related projects, please us at Headquarters: Europe: Asia: 97 Libbey Industrial Parkway 3 rd Floor, Sceptre House Hiroo Office Building Suite Castle Street Hiroo, Shibuya-ku Weymouth, MA Luton, Bedfordshire Tokyo United States United Kingdom, LU1 3AJ Japan

2 Table of Contents Abstract... 1 Introduction: Where Does Marketing Campaign Management Fit?... 3 Marketing Acronym Definitions... 3 CRM (Customer Relationship Management) The Corporate Customer Data Repository... 3 SFA (Sales Force Automation) Managing Leads from Multiple Sources... 3 MPM (Marketing Performance Measurement) Across All Media Channels... 4 ECM (Enterprise Content Management) Protecting the Brand... 4 Integrated Direct Mail Marketing Campaign Management: Where the Graphic Communications Service Provider Fits... 5 Marketing Campaign Management How Hard Can It Be?... 5 Elements of Integrated Campaign Management... 6 What is an Integrated Marketing Campaign?... 6 The Technology and Terminology... 6 The Value Proposition... 8 The Next Wave InfoTrends, Inc.

3 Introduction: Where Does Marketing Campaign Management Fit? As new and improved computing and workflow technologies were introduced to the market, business processes became more automated: finance was automated in the 60s, human resources was automated in the 70s, manufacturing was automated in the 80s, and sales and customer service in the 90s. This is the decade for marketing automation. Marketing is under tremendous scrutiny to justify and validate marketing spend against Return on Investment (ROI). As with all business processes, executive focus, and technology infrastructure need to be in place for effective automation to occur. The executive focus among CMOs is evident. Their top issues and concerns include: Inability to acquire an integrated view of the customer The need to compress the campaign design-to-execution cycle to improve time to market The need to leverage low cost Web and media Inability to measure results from marketing campaigns Inability to measure and justify marketing ROI Marketing process automation has given rise to a whole new set of acronyms that the graphic communications market will need to learn and embrace. While this trend is prevalent in high tech industries, the tendency to use acronyms among marketing professionals is becoming more common as the world of marketing becomes more automated through advances in technology. It is necessary to learn what these enterprise marketing systems are, and how they can be used to make marketing efforts more effective. Marketing Acronym Definitions CRM (Customer Relationship Management) The Corporate Customer Data Repository CRM (customer relationship management) is an information industry term for methodologies, software, and Internet capabilities used to help enterprises manage customer relationships in an organised way. For example, an enterprise might build a database about its customers that describes relationships in sufficient detail so that management, salespeople, and the people providing service could access information, match customer needs with product plans and offerings, remind customers of service requirements, and know what other products a customer had purchased. SFA (Sales Force Automation) Managing Leads from Multiple Sources SFA is often used interchangeably with CRM; however, the term CRM does not necessarily refer to the automation of sales tasks. Sales force automation pulls leads from multiple sources and gives sales personnel and management the ability to track and follow the quality of leads and the effectiveness of the sales process within an organisation. Sales force automation (SFA) software includes programs that automate the sales process. A comprehensive SFA package performs functions such as contact management, note and information InfoTrends, Inc.

4 sharing, quick proposal and presentation generation, product configurations, calendars, to-do lists, and analysis of sales forecasts and performance. Businesses may have a custom version developed specifically for their needs or they can choose from existing sales automation software products such as Sage CRM Solutions ACT!, FrontRange Solutions GoldMine and online solutions such as SalesForce.com. SFA packages typically include a Web-ready database, an package, and customisable templates. A three-tiered architecture is typically used to separate the database, server, and application to reduce programming demands on clients. A module-based design is generally used to allow users to customise the package to suit their needs. MPM (Marketing Performance Measurement) Across All Media Channels Marketing Performance Measurement, or MPM, has gained in importance over the last year or so. In the U.S., this trend has been driven by the efforts of the CMO Council, which has done an excellent job of raising awareness about MPM among its members, which include more than 1,000 executive-level marketers, primarily from technology companies. MPM provides companies with the tools necessary to create a framework for measuring the quantitative values of marketing efforts within an organisation. Efficiency metrics describe the costs of executing marketing projects. These projects are typically called campaigns or programs. The two major efficiency metrics are staff hours per project and cycle time per project. These metrics are often correlated, and in many cases reducing the cycle time (getting campaigns out the door more quickly) improves results in ways that are much more important than any internal cost savings. This is why cycle time and staff hours must be measured separately. Program metrics measure program effectiveness by comparing their costs and results. Marketing executives want to evaluate the ROI for each program that is developed and delivered to the market. For mass media campaigns, the success measure may be improved brand awareness, which is a precursor to buying product. Web- and print-based direct mail programs generate a set of marketing contacts. Some contacts are worth more than others, depending on the number and quality of responses they generate. In today s competitive market, the cost per contact of either direct or print media is not enough. Instead, program metrics must calculate the value of the results. MPM systems look across all marketing programs, not just direct mail or Internet campaigns. This allows marketers to have an automated approach for assessing the value of the entire marketing investment from direct mail, telesales, and mass media. ECM (Enterprise Content Management) Protecting the Brand Enterprise Content Management (ECM) encompasses any of the strategies and technologies employed in the information technology industry for managing the capture, storage, security, revision control, retrieval, distribution, preservation, and destruction of documents and content. In today s market, ECM is not regarded as an optional expense. It is essential for the preservation and re-use of content, and to the control of access to content based on privacy legislation. Recent trends in business and government reflect that ECM is becoming a core investment for organisations of all sizes and that it is more immediately tied to organisational goals than in the past InfoTrends, Inc.

5 From a marketing perspective, ECM is related to the protection of branding assets. Brand managers must access and integrate information from multiple sources and use it to promote a brand through all lifecycle stages. Brand managers depend on the effective integration of , instant messages, phone conversations, and meeting notes with text documents, spreadsheets, graphics, and rich media in a way that maintains information context. At the same time, this information must be integrated with legacy systems and structured data (such as sales results) in a globally accessible and scalable environment. Enterprise Content Management (ECM) software solutions are being implemented in corporations for brand asset management services. These solutions allow marketing, creative services, advertising, promotions, and anyone else who is involved in creating brand content to access and collaborate around a central database of pre-approved digital brand assets (logos, taglines, images, and brand guidelines) to ensure ongoing brand integrity. Integrated Direct Mail Marketing Campaign Management: Where the Graphic Communications Service Provider Fits While CRM, SFA, ECM, and MPM are all interconnected IT systems, the graphic communications service provider s role is to extract information from or put information into these systems in the delivery of integrated direct mail marketing campaign management. Integrated marketing campaign management is the method of marketing that delivers the right offer to the right individual at the right time through the right channel. With a blend of Internet and print communications, the goal is to deliver campaigns that increase response rates, market awareness, and revenue, thereby maximising profits. The most effective campaigns reach customers via a blend of print, Web, and . The first step is working with the customer to appropriately identify the right target market and offer. Data from the enterprise CRM database is used to generate a mailing list and develop a relevant offer for the targeted customer. Next a printed direct mail or message is sent. This document must be designed to attract attention. All customer communication needs to comply with corporate branding standards, so digital assets including logo treatment and images from the ECM system must be extracted. Integrated marketing campaigns are often designed to link the customer to a personalised URL and customised landing pages. The landing page has the ability to link to a survey page to gather additional customer data that can be used to update the enterprise CRM database. In addition, the data gathered can determine the quality of a lead, and these new leads can be forwarded to the sales force and integrated with the SFA system. Metrics, including click-throughs to personalised web landing pages and lead conversions, can be tracked and put into the enterprise MPM system to prove the effectiveness of integrated direct mail marketing campaigns. Marketing Campaign Management How Hard Can It Be? In the world of automation, acronyms are here to stay. When talking to the marketing executive, the message is simple. You can take data from his CRM database and merge it with logos and images from his ECM system to generate customised marketing pieces that feed leads into his SFA and enhance his overall MPM. How hard could it be? InfoTrends, Inc.

6 Elements of Integrated Campaign Management In today's world of one-to-one marketing, especially with privacy restrictions and regulations predominant throughout the European Union and the UK, it seems appropriate to re-evaluate the technology being used to effectively communicate with customers and prospects. Just a few years ago, marketing via and the Web was a novelty. Today, companies are using these new forms of media to retain existing customers and attract new ones through more innovative marketing campaigns. For the graphic communications service provider, this is creating a new opportunity for marketing in uncharted waters. This section of the report is designed to provide an overview of the terminology and components associated with an integrated marketing campaign. What is an Integrated Marketing Campaign? From the perspective of a marketing executive, an integrated marketing campaign is a comprehensive marketing process that delivers the right offer or message, as well as response, to individual requests at the right time, while delivering the highest value to customers as well as the greatest profitability to the organisation. The goals include development of a deeper and more relevant customer relationship based on growing knowledge about that customer. If effectively used, these campaigns increase response rates, market awareness, and revenue, thereby maximising profits. Integrated marketing campaigns are focused on consistent and relevant communications with customers across multiple touch points. A touch point is defined as all of the communication customer s experiences during their relationship lifecycle with an organisation. Whether it is an ad, Web site, sales person, store, or office, touch points are important because customers form perceptions about organisations based on their cumulative experiences. Some marketers look at integrated marketing campaigns as the silver bullet to driving business growth. There are essential elements that need to be in place to make an integrated marketing campaign effective. First, the client needs to have a clear and coherent marketing strategy in place that succinctly defines the target market. Second, an attractive and appealing offer is critical for driving response rates. Third, there needs to be good creative execution with a sound marketing message. Finally, the strategy, offer, creative execution, and marketing message need to be backed with quality data sourced either internally or through external lists. Without these four elements, no campaign will be successful, regardless of the technology used. The Technology and Terminology The Internet introduced new channels for marketing and created new consumer behaviours. To achieve the highest level of effectiveness, marketers need to reach customers via print, Web, and . By tying them all together in an integrated campaign, marketers have the ability to collect more customer data for use in the next stage, track responses with personalised URLs, and learn which media is most likely to get a response from each contact for more successful, cost-effective follow-ups. The integrated marketing campaign starts with mail. It could be a printed direct mail piece or an . The document must be designed to attract attention. If it is strictly being sent electronically, designers need to ensure that it can be opened by the individual s browser. Appealing colour and unique sizes (for printed pieces) are important, but the most critical aspect of any direct mail campaign is the actual offer intended to drive the recipient to the next step. The offer is typically presented as a link to a personalised URL. The campaign's Mail File (list of direct mail recipients) is used to generate Personalised URLs for InfoTrends, Inc.

7 each recipient. These PURLs are then woven into the design of the direct mail piece, along with other variable data. 5 Direct Sales Call Database Sales & Marketing 4 Alert! to Sales 1 Postcard or Campaign Responses Saved in Database Thank You or Letter 3 Personalised Survey Page with Info Filled In 2 Campaign Leads to Personalised URL When recipients type their personalised URLs into a browser, they arrive on personalised Web pages (landing pages or VIP pages) populated with copy, images, and offers also based on customer data. These are frequently called microsites. Personalised Web pages can be as simple or advanced as the needs of a marketing program dictate. From there, the measurement and reporting of results begins. Once the individual has arrived at the personalised microsite, creative marketers can gather additional data about the prospect. The offer strategy should be designed to entice the respondent to complete a brief survey or provide data relative to interests and needs. The objective is to ensure a high level of interaction with the prospect. Systems available in the market today include built-in tracking to enable continuous monitoring of the campaign s progress as customers enter their personalised pages and provide additional relevant information. Campaign response rates, visitor response patterns, and detailed lead information can be available at all times as the campaign unfolds. Because systems are template driven, adjustments to messaging and offers can be done in a matter of hours versus days or weeks. This allows marketers to make changes in the campaign in near-real-time based on results they are seeing. Reports can be generated so the marketing executive can share the impact of critical marketing programs with the entire management team. This kind of response tracking service can turn a print provider into a marketing partner who can help the marketer accurately pinpoint the effectiveness of a campaign and understand how to best target campaign resources and improve returns on the marketing investment. Based on the responses to survey questions, systems are designed to proactively forward leads to sales staff. Systems can route leads to the appropriate representatives via multiple communications platforms, including CRM, , cell phones and pagers InfoTrends, Inc.

8 The Value Proposition By targeting customers with a highly relevant and personalised message and integrating that message across media channels, companies are finding that they can capture the attention of customers and generate impressive results. While not all systems have the same feature set, Bluetree, MindfireInc, Pageflex, Responsive Solutions and XMPie are examples of solutions that can help graphic communications service providers participate in this emerging market opportunity. The primary value proposition for marketers is that customers respond to relevant messages, and their level of response increases as messages are integrated across media channels. However, tools today have additional value for the marketing executive, including: Creating Brand Consistency: While demands on marketing teams increase, centralised marketing resources within companies are decreasing. Integrated campaign management tools help ensure brand consistency by allowing marketing teams to manage and control marketing assets centrally, yet offering others throughout the company the ability to access those assets to execute easily. Increased Facility in Establishing an Integrated Approach: Integration of data as well as integration in marketing strategy is important in keeping a 360-degree view of the customer as well as building synergies across marketing channels. Delivering Personalised Communication: Collecting customer data is fairly easy. Using customer data to deliver highly relevant and personalised communication is more challenging. Integrated marketing campaign tools can help marketers execute highly personalised communications based on customer needs and attributes at an individual level. Leveraging Interactive Technology: Interactive media provide marketers with the ability to create efficiencies as well as two-way communication channels not possible with traditional media. Integrated marketing campaign tools help maximise those efficiencies by managing marketing, Web sites, electronic surveys, and landing pages. Demonstrating Accountability: With challenging economic conditions and flat to only slightly increasing marketing budgets, marketing professionals are being asked to justify their marketing budgets and being held accountable by top executives for results. Response dashboards can help marketers access quantifiable results to better understand their return on marketing investments. They translate marketing campaigns into real sales leads that can be acted on quickly. Creating Customer Value: In today s competitive environment, competing on price and product features alone can be dangerous. Marketers need to build a relationship that gives them a competitive advantage in serving their customers needs. Integrated marketing campaign tools help clients understand customers needs and create a relationship that has greater value than products or services alone. Most importantly, by offering integrated marketing campaign services, the graphic communications firm now has a new value-add opportunity. As competition drives down margins, selling true marketing ROI enables real competitive differentiation and allows increasingly sustainable profit margins. When graphic InfoTrends, Inc.

9 communications service providers focus on marketing ROI solutions, they move away from the commodity sale and toward higher-margin, value-added services. The delivery of integrated marketing campaigns not only strengthens customer loyalty for clients, but it helps develop closer links to the client s core business. The Next Wave As the economic power moves from the producers of products to consumers, the role of marketing will grow in importance. Success with the marketing executive will be crucial to the success of graphic communications service providers. Marketing is evolving from an art to a science with a heavy focus on ROI and analytics. The emphasis on interactive multi-channel campaigns is climbing. As multi-channel marketing gains momentum, there will be more focus on accountability and the ability to prove how campaigns translate into growth and profitability. Marketers will want to optimise campaigns and improve their performance. Marketers must elevate contacts to the right level in the organisation, ensure that they have the right tool set in place, and deliver the right value to the client to be successful in light of the changes that are taking place. This material is prepared specifically for clients of InfoTrends, Inc. The opinions expressed represent our interpretation and analysis of information generally available to the public or released by responsible individuals in the subject companies. We believe that the sources of information on which our material is based are reliable and we have applied our best professional judgment to the data obtained InfoTrends, Inc.

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