Marketing Automation: Best Practices in a Rapidly Changing World

Transcription

1 Marketing Automation: Best Practices in a Rapidly Changing World In partnership with

2 THE MARKETING AUTOMATION TRANSFORMATION The smart management of marketing technology is what gives a company an advantage over the competition today. More tools than ever before are available to scale marketing efforts, cast a wide net and reach a large audience, while capturing an inbound prospectʼs propensity to buy in real time. Marketers can clone their best buyers using an immense amount of available data, and increase the impact and relevance of their programs through analytics, marketing management, drip and lead nurturing, and compelling content and offers. When marketers look at marketing from just five or 10 years ago, most companies were niche-focused, and with plenty of individual tools but little ability to get a complete picture of their market and campaign performance. Today, marketing demands that the modern marketer be thoroughly creative as always, but also tech and financially savvy. Marketers have to know strategy combined with a thorough understanding of marketing technology, allowing them to derive a strong return on marketing spend, and to drive increased revenue. CONTENTS 1. Essential action items 2. From awareness to adoption 3. The value proposition 4. Challenges and opportunities 5. What this means for marketers 6. Notes & resources! Methodology! Contributors! About BtoB! About Marketo In partnership with Marketo

3 ESSENTIAL ACTION ITEMS There are several essential action items that inform this report, that transformative marketers intent on success are focused on doing. They include: 1. Determine whatʼs essential. Marketing automation is rapidly moving from being niceto-have to must-have for all kinds of companies. Large enterprises have long found value in the technology, but in fact small-to-midsize businesses make up the largest growing segment in the marketing automation space. Increasingly, companies across all verticals including industries such as healthcare, financial services, media and entertainment, and retail are adopting marketing automation for its real-time, relationship-oriented approach to maintaining and extending customer engagement. 2. Plan for growth. Marketers need a solution thatʼs easy to buy, easy to own and easy to use. But at the same time, itʼs crucial that marketers make sure they wonʼt outgrow the solution that they buy today. Going too small or too cheap without aligning to future requirements is a clear path to failure. Marketers are choosing vendors that make it easy to accomplish marketing tasks fast, but also that offer powerful tools to solve future real-world challenges as they move up the maturity curve. The best marketing automation implementations adhere to the adage, Think big, start small, move quickly. Win small victories fast to show results your company values. 3. Think big, start small. The best marketing automation implementations adhere to the adage, Think big; start small; move quickly. If you dream big, youʼll position yourself to achieve the grand albeit granularly articulated vision of what you want success to look like. Start small so you donʼt get stuck in analysis paralysis, and win small victories quickly to show results in a way your organization values. These small wins will cultivate stakeholder buy-in across your organization, and increase your chances for success over the short and long term Marketo

4 FROM AWARENESS TO ADOPTION Marketing automation appears to be following the CRM pathway of a decade or so ago, in its application of smart technology. Almost all marketers are aware of marketing automation. It isnʼt a mystery to them; only 8% indicate theyʼre not aware of its use or applications. Its adoption among marketers, however, may be at the same stage as customer relationship management (CRM) applications were a decade or so ago. Marketing automation appears to be following a similar path in its application of smart technology, analysis and automated messaging designed to feed the sales funnel. The definition of marketing automation can vary. The most encompassing description is cloud or server-based software that automates repetitive marketing tasks. For many marketers that might include marketing platforms, basic website analytics applications, or even content marketing and social media marketing solutions that aggregate simple performance metrics. For the more sophisticated marketing teams, it can entail full-fledged applications whose features include marketing intelligence and analysis, multivariate testing and optimization, lead scoring and the automation of appropriate messaging, drip marketing/nurturing, campaign analysis and advanced workflow automation, among many other features. One thing is for sure: The adoption of marketing automation is increasing (Figure 1). Figure 1 The level of marketing automation adoption Stage four. Complete adoption, with integration of marketing automation into sales and marketing initiatives Stage three: Strong adoption Stage two: Moderate adoption Stage one: Some adoption N=204, 2013 Source: BtoB Among those marketers currently using marketing automation in some form, 38% of respondents to BtoBʼs survey say they have accomplished some or moderate adoption during 2013 (red bars). Further, 52% indicate that their companies are strong or full Marketo

5 adopters of marketing automation. And the trend isnʼt slowing down. Companies that are strong or full adopters of marketing automation will rise to 81% of all marketing automation users in 2014 (green bars). Meanwhile, the percentage of tepid adopters characterized as some or moderate users of marketing automation will shrink to 19% of B2B companies by CHALLENGES AND OPPORTUNITIES There are a variety of challenges marketers face in their purchase and implementation of marketing automation packages. Interestingly, while price is not generally considered a major factor in the purchase of appropriate platforms, it rises to the top when marketers consider obstacles to effectiveness. Figure 2 Obstacles that prevent more effective use of marketing automation Budget constraints Poor integration between sales and marketing Poor infrastructure to collect/analyze data Lack of lead data & support from sales Complexity of marketing automation software Inability to find trained employees Poorly defined ROI Compatibility/interoperability issues Belief that current methods are OK Lack of performance standards Automation cannot overcome internal organizational flaws. But with processes in place, budgets can loosen up. N=204, 2013 Source: BtoB Obstacles, as the saying goes, are opportunities in disguise. And much depends on internal transformation, not the least of which is optimal sales-marketing alignment and cooperation. The best automated marketing package on the market cannot overcome internal organizational flaws. However, the issues of budget constraints in effecting strong marketing automation implementation marketersʼ No. 1 challenge can be solved as marketers demonstrate the effectiveness of their marketing automation implementation, and its positive impact on lead generation, sales pipeline, conversion and sales. Powerful demonstrations here can loosen up budgets dramatically Marketo

6 THE VALUE PROPOSITION The time required to implement marketing automation solutions isnʼt particularly lengthy (Figure 3). Fully 87% of marketers who have deployed marketing automation have gotten it up and running within 1 year, and most took less than 6 months. Figure 3 Length of time for full implementation of marketing automation Not applicable Less than 1 month 1-6 months 7-12 months More than 12 months N=204, 2013 Source: BtoB The need for dashboards to see campaign metrics quickly and easily are considered of primary importance to marketers. When assessing marketing automation packages, marketers indicate that several key features are indispensable. Most prominent is marketing analytics the ability to determine the performance and effectiveness of various campaigns followed by elements that improve lead generation, that are integrated with the sales departmentʼs CRM system, that impact lead management, and that help improve outreach. There also are a number of factors considered crucial to the purchase process of the platform, its full implementation and marketing success. When considering the importance of various elements of a marketing automation solution, marketers cite most often the need for dashboards that is, the ability to see campaign performance metrics quickly and easily. In fact, the need for simplicity and performance transparency are recurring themes Marketo

7 Marketers are clear that the chief benefit of any automated system is to improve conversion rates. Marketers value ease of use, a short learning curve and readily available technical support. This is not surprising given the feature-heavy qualities they expect of marketing automation platforms, and the skill set required to wrangle them into something that produces real business results. Finding a way to handle marketing automation within the marketing department instead of outsourcing it to a remote IT department could be considered the subtext here. Surprisingly, price is not a deal-breaker. Marketers appear willing to find the funds, if possible, to buy and implement a marketing automation platform if it will achieve business objectives. Marketers also are pretty clear that the chief benefit of any marketing automation system is its ability to improve conversion rates that is, changing prospects into real leads, and leads into customers (Figure 4). Figure 4 Relative importance of marketing automation benefits (scale of 10) Improved conversion rates Increased click-throughs Increased Web traffic Improved open rates Reduction in bounce rates Reduction in website bounce rates Reduction in overall database size N=204, 2013 Source: BtoB The anticipated impact on is clear from these results; is marketersʼ No. 1 channel, and marketing automation is expected to support, fulfill and optimize marketing, among its other perceived benefits. But there are many other marketing automation features that marketers say are of value. Among the key activities marketers would use their marketing automation platform for, lead generation tops the list (Figure 5) Marketo

8 Figure 5 Relative importance of marketing automation benefits Online lead generation Website visitor tracking Marketing campaign management Lead activity tracking Lead scoring/qualification Behavior-based lead nurturing Drip marketing Offline lead gen Multichannel tracking Life stage marketing N=204, 2013 Source: BtoB Another critical need for marketers is to determine return on investment (ROI), the degree to which the costs of marketing automation purchases and training are offset by financial results. Seen in Figure 6 are various measurements that marketers look for when assessing their marketing automation implementation, many of which have a strong impact on customer lifetime value, awareness and efficiencies. Figure 6 The marketing automation metrics marketers say are key Marketing productivity/throughput More effective messaging Shortened sales cycles Increased revenue per customer Increased customer retention Brand differentiation Other N=204, 2013 Source: BtoB Marketo

9 Among the benefits that rate most highly is simple marketing productivity, cited by 28% of marketers, indicating their desire to increase the volume of message throughput and the number of campaigns. Also important is more effective messaging, presumably in the ability of marketing automation to identify prospects and to trigger content tailored to prospect behavior. Other important metrics include shortened sales cycles, increased revenue per customer, better customer retention and brand differentiation. Prerequisites for adequate marketing automation adoption include an informed installation; a clean, unified database; and superior salesmarketing alignment. However, there are a number of factors that may stand in the way of fuller adoption of marketing automation, including: 1) the technological and marketing sophistication required by full-fledged marketing automation installations; 2) the necessity to have clean, unified databases across siloes, or to eliminate data siloes entirely, both of which are difficult tasks to accomplish; and 3) the need for better sales-marketing alignment, which also is hard to realize but necessary for marketing automation to work well. But as is made clear below, overcoming the myriad obstacles and challenges can often result in competitive opportunities Marketo

10 WHAT THIS MEANS FOR MARKETERS " Gain small victories quickly. The rapid implementation of marketing automation platforms following purchase may be due to its newness among many B2B companies. Marketers at first tend to use just a few modules of their marketing automation solutions to address a handful of use cases, and grow from there. Think big, start small and move quickly to gain competitive advantages over those companies lagging behind. " The vendor advantage. While marketing automation requires a commitment to understand technology and often the hiring of new staff, marketers are able to get the technology up and running relatively quickly. This points to an already-present commitment to the all-important vendor relationship. Marketers should pick vendors who can extend their team through training and support, and be a part of it for the long haul. " Simplify, simplify. Simplicity of use and ease of learning are rated very highly by marketers when assessing vendor and platform qualities. Marketers are aware of the power of technology. They just donʼt to be at its mercy and buy complex technology for its own sake, whether theyʼre large or small companies. " Growth is key. Simplicity is just the first step. The whole purpose of adopting marketing automation in the first place is to grow the companyʼs revenue and profits, and lay the groundwork for continued growth and future successes. As is clear from BtoBʼs study, while budgets are tight platform price isnʼt paramount to marketers. Marketers say they want to choose a platform first and foremost that can scale, as they use it to achieve future success. " Sales, sales and more sales. Donʼt get caught up in a metrics maze. Yes, marketers want their marketing automation package to improve such benchmarks as clicks, opens, bounces, etc. All that is fine. The bottom line, however, is the bottom line improved lead gen, shortened sales cycles, increased revenue and better customer retention. Keep your eye on the (real) prize, and let your marketing automation package run free in accomplishing it. " Get real. Extend the time and energy you estimate to spend on implementing marketing automation, and set expectations with your management appropriately. This process is not for the faint at heart, but the investment will pay off handsomely for marketers who push their performance and skill to levels never before possible Marketo

11 NOTES & RESOURCES Methodology BtoBʼs study is based on a survey of 204 business marketers conducted in April Of those, 53% were from companies with less than $100 million in annual revenue, although 28% reported annual revenue of $1 billion and more. Technology companies predominated, at 45% of all respondents, with financial services, consulting, nontechnical and medical/pharmaceutical companies also represented. Contributors! John DiStefano, Research Director, BtoB: [email protected]! Christopher Hosford, East Coast Bureau Chief, BtoB: [email protected]! Jon Miller, cofounder, VP-marketing & strategy, Marketo: [email protected] Marketo

12 About BtoB BtoB is the only media brand dedicated to integrated business-tobusiness marketing. The magazine, its newsletters and website content are read by 140,000 b-to-b marketers, with every issue filled with game-changing strategies and tactics needed for success, including news, analysis, benchmarks and best practices. BtoB publishes a wide variety of e-newsletters addressing specific areas of b-to-b marketing, and hosts webcasts, virtual trade shows and live events. In addition, BtoB publishes BtoBʼs Media Business for business publishing executives. Advertising offices 711 Third Avenue, 3rd Floor, New York, NY website: [email protected] Editorial offices 150 N. Michigan Ave., 17 th floor, Chicago, IL website: [email protected] Corporate headquarters 1155 Gratiot Avenue, Detroit, MI website: About Marketo Marketo (NASDAQ: MKTO) provides the leading cloudbased marketing software platform for companies of all sizes to build and sustain engaging customer relationships. Spanning todayʼs digital, social, mobile and offline channels, the Marketo solution includes a complete suite of applications that helps organizations acquire new customers more efficiently, maximize customer loyalty and lifetime value, improve sales effectiveness, and provide analytical insight into marketingʼs contribution to revenue growth. Marketoʼs applications are known for their breakthrough ease-of-use, and are complemented by the Marketing Nation, a thriving network of more than 150 LaunchPoint ecosystem partners and over 30,000 marketers who share and learn from each other to grow their collective marketing expertise. The result for modern marketers is unprecedented agility and superior results. Corporate headquarters 901 Mariners Island Blvd., San Mateo, CA USA / direct: website: [email protected] Other offices in Portland, OR, USA; Dublin, Ireland; Sydney, Australia Marketo