Six C s of Customer Engagement: Accelerate Revenue and Measure Marketing s Contribution

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1 Six C s of Customer Engagement: Accelerate Revenue and Measure Marketing s Contribution Laura Patterson President & Author laurap@visionedgemarketing.com Twitter:@LauraVEM Facebook: 1. You had a set of measurable performance standards 2. You could show the relationship between Marketing and business results 3. Marketing was perceived as an investment instead of an expense Improve Your Probability for Success VisionEdge Marketing. All rights reserved. Not for reproduction or redistribution without written permission. 1

2 About VisionEdge Marketing Experienced Practitioners in Improving and Proving the Value of Marketing A business consulting firm that specializes in helping companies: Make fact based decisions regarding customers, markets, products and competitors Create a competitive business advantage by leveraging data, analytics, process, and measurement Pioneers in the marketing performance measurement and management segment Patent pending Outcomes and Measurement Methodologies: Avantage and Accelance Founded in 1999, Headquartered in Austin, Texas 100+ Customer; 250+ Engagements Why Companies Invest in Marketing Understand the market and customers Develop and execute a strategy to create consideration and preference that enables the organization to Acquire more of something Acquire it faster Acquire it cheaper Need to demonstrate we are getting the job done Otherwise, might as well just put more feet on the street Improve Your Probability for Success VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 3 Improve Your Probability for Success VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission

3 3 Things Marketing is Expected to Produce Marketing s 3 Roles Align with 3 Biz Needles 1. Find Profitable Customers The process of acquisition New customer acquisition net new business Find/Secure Profitable Customers Keep Customers Grow Customer Value 2. Keep Profitable Customers The process of retention/renewals Engaged customers more likely to renew Acquisition Penetration Monetization 3. Grow Profitable Customers The process of increasing the value of your customer franchise and brand up and cross-selling Market Share Lifetime Value Brand/ Customer Equity Improve Your Probability for Success VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 5 Improve Your Probability for Success VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission

4 Outcome Based Metrics BIC Versus the Rest 5 Market Share Indicators Our Job Points the Way to the Metrics Share of Preference Share of Voice Share of Distribution Pipeline Contribution Rate of Growth:Market 4 Lifetime Value Indicators Purchase Frequency Share of Wallet Advocacy/Loyalty Tenure 5 Customer/Brand Equity Indicators Price Premium Net Advocate Score Customer Franchise Value New Product Acceptance/ Adoption Rates Product Margins BIC Companies Experience 85% of marketing leads passed to sales are actioned Only 27% for Industry Average 5% for Laggards 22% YOY increase in marketing s contribution to the pipeline Only 7% increase for Industry Average Only 1% for Laggards 18% YOY rise in marketing s contribution to revenue 6% for Industry Average 0 for Laggards Source: Marketing and Sales Alignment; Aberdeen 2013 Improve Your Probability for Success VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 7 Improve Your Probability for Success VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission

5 How Best in Class Organizations Do It! Let s Follow Their Journey 1. Take a customer-centric approach to the buying process 2. Align Sales and Marketing 3. Collaboratively develop an opportunity scoring model around the customer buying process Source: Aberdeen 2011, 2012, Create a customercentric opportunity pipeline 2. Overlay touch points, channels, and content 3. Establish performance targets and measure Improve Your Probability for Success VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 9 Improve Your Probability for Success VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission

6 BICs Start with the Customer Buying Pipeline Pipeline Approach Enables Common Definitions and Metrics A pipe suggests that a) different marketing programs may be needed at different stages along the way segmentation b) targeting, and qualification are extremely important to reducing waste and customer acquisition costs Customer buying pipeline suggests a) A process owned by BOTH sales AND marketing b) Focus on customer buying signals ENGAGEMENT BEHAVIOR Reduces ambiguity behavior is observable and measurable Clarifies what is a qualified opportunity Defines where the stages are in the process and who owns it Improve Your Probability for Success VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 11 Improve Your Probability for Success VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission

7 Measure What Matters! Success Indicators MEASURE MARKETING S IMPACT IN TERMS OF: Quality of Opportunities Quantity of Opportunities Cost to Create Opportunity Value of Marketing Generated Opportunities Conversion Rate of Opportunities Win Rate of Opportunities Improve Your Probability for Success VisionEdge Marketing. All rights reserved. Not for reproduction or redistribution without written permission. Improve Your Probability for Success VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 14 Improved: Best Practices Sharing Forecast Accuracy Order Processing Accuracy Communications Win Rates Increased: Margins Revenues Reduced: Administrative Burden on Sales New Sales Rep Ramp-up Time Sales Cycle 7

8 A 6 Step Iterative Process Take Baby Steps! Start Today! Step 1: Define the customer buying process and each incremental behavior Step 2: Validate Step 3: Create the buying stages that map to the buying process Step 4: Determine the Stage Owners Step 5: Map marketing and sales tools to each stage Step 6: Monitor, measure and report results and payback Change can be daunting, but alignment is too critical to avoid Do it together, get in the same room, leverage an expert Start with a blank slate, not your current paradigm Do 1 thing differently Improve Your Probability for Success VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 15 Improve Your Probability for Success VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission

9 Thank You & Affordable Resources Download Don t Waste Your Bullets white paper Purchase e-book Gone Fishin : Marketing and Sales Alignment for Finding, Hooking, Keeping and Growing Customers Purchase self-paced workbook, Using the Customer Buying Process to Align Sales and Marketing & Create 3 Key Sales Enablement Tools in Touch laurap@visionedgemarketing.com marketing Improve Your Probability for Success VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 17 Improve Your Probability for Success VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission