The document summarizes key findings from a study conducted by Forrester Research for Act-On Software on how small and mid-sized businesses are driving revenue in a volatile economy. Some of the main findings include: 1) SMB marketers are using a wide variety of traditional and digital marketing techniques but lag larger enterprises in their use of techniques like webinars; 2) those using marketing automation have higher business performance and are more likely to exceed their plans; 3) top performing SMBs emphasize online marketing, focus on new customer acquisition, and strategically use technologies like CRM and marketing automation.
1. Driving Revenue In A Volatile
Economy (DRIVE)
Lori Wizdo, Principal Analyst, Forrester Research
Atri Chatterjee, CMO, Act-On Software
www.act-on.com | @ActOnSoftware | #ActOnSW
2. Welcome! Thanks for joining us today.
Lori Wizdo Atri Chatterjee
Principal Analyst, Forrester Research CMO, Act-On Software
www.act-on.com | @ActOnSoftware | #ActOnSW
4. Agenda
• About this study
• Key Findings
• Recommendations
www.act-on.com | @ActOnSoftware | #ActOnSW
5. Basics of the Study
WHAT 1,000 to
2,499
• Study of small and mid-sized businesses
employees
22%
50 to 249
conducted by Forrester for Act-On employees
48%
• Survey completed in August and September 2012
500 to 999
employees
WHO 14%
• 208 companies in North America 250 to 499
employees
• B-to-B and B-to-B-to-C 16%
Executive
WHY 1% Head of
Marketing
17%
• Understand the effects of the economic Manager
of
slowdown on SMB marketing Marketing
45%
• Understand how SMBs are marketing and
compare them to larger companies
Executive
• Determine any differences between top Individual
in
Marketing
performers & the rest contributor 37%
0%
www.act-on.com | @ActOnSoftware | #ActOnSW
6. Industries & Performers
• Participation from various types of industries from manufacturing to
service
• Respondents across all major verticals
Computers, aerospace
, automotive, etc.
Transportation,
banking, insurance,
etc. Other
30% Manufacturing
40%
Business
Consulting, accounting, Services
construction,
professional services, etc. 30%
www.act-on.com | @ActOnSoftware | #ActOnSW
7. Agenda
• About this study
• Key Findings
• Recommendations
www.act-on.com | @ActOnSoftware | #ActOnSW
8. SMB Marketers Fielding a Mighty
Marketing Mix
Over 50% are using 13 or
more marketing
techniques (traditional
and digital)
Base: 208 Marketing Decision-makers
Source: "SME Marketing Tactics and Metrics Survey", a commissioned study conducted by Forrester Consulting on behalf of Act-On Software, Inc., August, 2012
www.act-on.com | @ActOnSoftware | #ActOnSW
9. SMBs Gravitate to Traditional Techniques
Top 5 tactics are
traditional and hard to
scale
Base: 208 Marketing Decision-makers
Source: "SME Marketing Tactics and Metrics Survey", a commissioned study conducted by Forrester Consulting on behalf of Act-On Software, Inc., August, 2012
www.act-on.com | @ActOnSoftware | #ActOnSW
10. SMBs Lag Behind in Digital Techniques
SMB use of webinars is 58%;
in enterprises it is 93%
Base: 208 Marketing Decision-makers
Source: "SME Marketing Tactics and Metrics Survey", a commissioned study conducted by Forrester Consulting on behalf of Act-On Software, Inc., August, 2012
www.act-on.com | @ActOnSoftware | #ActOnSW
11. SMBs are Taking a “Leap of Faith” on Social
Tell us about your use of the following social vehicles
Facebook Page 11% 3%4% 32% 28% 21%
Twitter Posts 14% 8% 4% 27% 26% 21% Although 69% are
Video marketing
marketing on social
23% 10% 1% 15% 33% 18%
(YouTube, etc.) networks, more than 1 in
LinkedIn Page 13% 8% 3% 26% 32% 17% 3 do not know how to
measure if it is working
Twitter Content Offers/Invites 45% 9% 5% 13% 15% 13%
Community Engagement
31% 17% 1% 10% 28% 13%
(Discussion Forums and …
Blogging 26% 19% 1% 12% 31% 10%
Q&A sites 53% 13% 1% 11% 16% 5%
Pinterest 58% 12% 4% 11% 11% 3%
Not using; not planning to start Not using; but planning to start in the next 12 months
Not working; will be decreasing We're using, but don't know if it's working
Working; will continue at present levels Working; will increase usage in the next 12 months
Base: 144 IT Decision-makers
Source: "SME Marketing Tactics and Metrics Survey", a commissioned study conducted by Forrester Consulting on behalf of Act-On Software, Inc., August, 2012
www.act-on.com | @ActOnSoftware | #ActOnSW
12. SMBs are not as Automated as “Enterprises”
What are your firm’s plans to adopt the following software technologies to automate
some of your marketing processes? – Overall
Customer
Relationship
Management (CRM) 19% 13% 12% 16% 24% 16% CRM:
(e.g. Microsoft 56% v. 75%
Dynamics, Salesfor…
Marketing and lead
management
41% 28% 12% 5% 9% 5%
automation (e.g. Act-
On, Marketo, Pardot)
Email marketing Marketing
platform (e.g.
ExactTarget, Respon
35% 17% 13% 8% 20% 6% Automation:
sys) 19% v. 45%
Not currently interested
Interested, but no plans
Actively evaluating and planning to implement within the next year
Implemented, re-evaluating, have not met goals/are not happy
Implemented, we have met our goals/ are happy
Expanding / upgrading implementation
Base: 208 Marketing Decision-makers
Source: "SME Marketing Tactics and Metrics Survey", a commissioned study conducted by Forrester Consulting on behalf of Act-On Software, Inc., August, 2012
www.act-on.com | @ActOnSoftware | #ActOnSW
13. SMB Marketing IS Driving Pipeline
Base: 208 Marketing Decision-makers
Source: "SME Marketing Tactics and Metrics Survey", a commissioned study conducted by Forrester Consulting on behalf of Act-On Software, Inc., August, 2012
www.act-on.com | @ActOnSoftware | #ActOnSW
14. The Tough Economy Has Impacted All
SMBs, but Some Have Done Better
Everyone has been impacted
• Establishment deaths > births by 37%
• 70% of respondents have cancelled or
delayed any business expansion
• 71% of respondents have either reduced or
kept marketing expenses stagnant
Performance to Plan
• Still 56% of respondents have exceeded
their plan.
Below or Above
at Plan, Plan,
The Great Recession Revealed 44% 56%
a New SMB Success Profile
www.act-on.com | @ActOnSoftware | #ActOnSW
15. Top Performers Invest in Marketing
44%
56%
27%
Base: 208 Marketing Decision-makers
Source: "SME Marketing Tactics and Metrics Survey", a commissioned study conducted by Forrester Consulting on behalf of Act-On Software, Inc., August, 2012
www.act-on.com | @ActOnSoftware | #ActOnSW
16. Top Performers Focus on New Customer
Acquisition
Base: 208 Marketing Decision-makers
Source: "SME Marketing Tactics and Metrics Survey", a commissioned study conducted by Forrester Consulting on behalf of Act-On Software, Inc., August, 2012
www.act-on.com | @ActOnSoftware | #ActOnSW
17. Online Marketing is a “Game Changer”
for Top Performers
“Which of the following statements most reflects your perception of online marketing?”
Online marketing is
an important part of 51%
our marketing
mix, but no more 68%
important than…
Online marketing is
a game- 32%
changer, allowing Top Performers (n=117)
us to complete 20%
more broadly Laggards (n=41)
We don't use online 15%
marketing tactics 12%
Online marketing is important to the majority
2% of SME marketers. But 32% of top
Other
0% performers say it’s a game-changer.
Base: 208 Marketing Decision-makers
Source: "SME Marketing Tactics and Metrics Survey", a commissioned study conducted by Forrester Consulting on behalf of Act-On Software, Inc., August, 2012
www.act-on.com | @ActOnSoftware | #ActOnSW
18. Top Performers strategically use technology
What are your firm’s plans to adopt the following software technologies to automate
some of your marketing processes? – Overall
Customer
Relationship
Management (CRM) 19% 13% 12% 16% 24% 16% CRM:
(e.g. Microsoft Top Performers: 61%
Dynamics, Salesfor… Bottom Performers 46%
Marketing and lead
management
41% 28% 12% 5% 9% 5%
automation (e.g. Act-
On, Marketo, Pardot)
Email marketing
Marketing Automation:
platform (e.g.
35% 17% 13% 8% 20% 6% Top Performers: 28%
ExactTarget, Respon Bottom Performers: 5%
sys)
Not currently interested
Interested, but no plans
Actively evaluating and planning to implement within the next year
Implemented, re-evaluating, have not met goals/are not happy
Implemented, we have met our goals/ are happy
Expanding / upgrading implementation
Base: 208 Marketing Decision-makers
Source: "SME Marketing Tactics and Metrics Survey", a commissioned study conducted by Forrester Consulting on behalf of Act-On Software, Inc., August, 2012
www.act-on.com | @ActOnSoftware | #ActOnSW
19. Use of Marketing Automation Correlates with
Strong Business Performance
71% of those
who are using
marketing
automation are
above plan,
versus only 53%
of those who are
not
Base: 208 Marketing Decision-makers
Source: "SME Marketing Tactics and Metrics Survey", a commissioned study conducted by Forrester Consulting on behalf of Act-On Software, Inc., August, 2012
www.act-on.com | @ActOnSoftware | #ActOnSW
20. SME Marketers are serious about
lead nurturing.
You said you were using lead nurturing as a tactic, tell us a little bit about your lead nurturing tactics
We use a dedicated team (e.g.
inside sales, business 71%
development reps) to nurture likely 73%
prospects
We use email and phone calls to 66%
engage leads during the nurturing
phase 69%
11% Total (n=143)
We only use email to engage leads
during the nurturing phase 12%
Have Marketing
Automation (n=35)
We do not use any of the above 3%
tactics 0%
Base: 208 Marketing Decision-makers
Source: "SME Marketing Tactics and Metrics Survey", a commissioned study conducted by Forrester Consulting on behalf of Act-On Software, Inc., August, 2012
www.act-on.com | @ActOnSoftware | #ActOnSW
21. SME Marketers are Serious about Lead Nurturing
You said you were using lead nurturing as a tactic, tell us a little bit about your lead nurturing processes
46%
On average, we have more than 5
touches (email or phone call)
before a lead passes to sales
44%
54%
On average, we have fewer than 5
touches (email or phone call)
before a lead passes to sales
56%
Total (n=143) Have Marketing Automation (n=35)
Base: 208 Marketing Decision-makers
Source: "SME Marketing Tactics and Metrics Survey", a commissioned study conducted by Forrester Consulting on behalf of Act-On Software, Inc., August, 2012
www.act-on.com | @ActOnSoftware | #ActOnSW
22. SMEs with Marketing Automation
Nurture Leads a Little Longer
You said you were using lead nurturing as a tactic, tell us a little bit about your lead nurturing timeframes
17% Total (n=143)
On average, we nurture a lead for
more than 3 months before we
Have Marketing
pass the lead to sales 11% Automation (n=35)
On average, we nurture a lead for 47%
1-3 months before we pass the
lead to sales 49%
On average we nurture a lead for 36%
less than a month before we pass
the lead to sales 40%
Base: 208 Marketing Decision-makers
Source: "SME Marketing Tactics and Metrics Survey", a commissioned study conducted by Forrester Consulting on behalf of Act-On Software, Inc., August, 2012
www.act-on.com | @ActOnSoftware | #ActOnSW
23. SMBs Who are Automated Measure More
Which of the following do you measure?
Customer satisfaction 48%
48%
40%
Brand awareness 45%
34%
Competitiveness/win ratio 43%
Marketing’s contribution to revenue 33%
28%
31%
Campaign payback 48%
Customer acquisition costs 28%
28%
27%
Lead-related metrics 40%
Market engagement via social channels, networks 25%
35%
Lead Funnel conversion ratios 24%
48%
21%
Customer lifetime value 23%
21%
Salesperson satisfaction with marketing 23%
Significant differences in
16%
Channel productivity 23% what companies with
10%
Net promoter (ratio of promoters to detractors) 20% marketing automation
Other, please specify
0%
2%
can and do measure
Total (n=206) Currently implemented (n=40)
Source: "SME Marketing Tactics and Metrics Survey", a commissioned study conducted by Forrester Consulting on behalf of Act-On Software,
Inc., August, 2012
www.act-on.com | @ActOnSoftware | #ActOnSW
24. Top Performers are Getting Results!
Base: 208 Marketing Decision-makers
Source: "SME Marketing Tactics and Metrics Survey", a commissioned study conducted by Forrester Consulting on behalf of Act-On Software, Inc., August, 2012
www.act-on.com | @ActOnSoftware | #ActOnSW
25. Agenda
• About this study
• Key Findings
• Recommendations
www.act-on.com | @ActOnSoftware | #ActOnSW
26. 7 Habits of Top Performers
1. Emphasize online versus offline strategies
• Top Performers see online marketing as a game changer
• Almost 3 out of 4 marketing automation users are top performers
2. Focus on new business leads and
customer lifetime value over
reducing costs
• Top Performers are spending more
to get new customers while Bottom
Performers are trying to eke out more
from existing customers and their budgets
3. Use digital to its fullest
• Go multi-channel
• Combine email, webinars, content and social
www.act-on.com | @ActOnSoftware | #ActOnSW
27. 7 Habits of Top Performers
4. Use advanced techniques like
lead nurturing
• More than 50% of Top Performers
nurture leads for between 1 and 3
months
5. Measure the things that count
• Top Performers analyze everything
while 44% of Bottom Performers are
not measuring anything!
6. Increase collaboration between
sales and marketing
• Plan objectives together and measure
results together
www.act-on.com | @ActOnSoftware | #ActOnSW
28. 7 Habits of Top Performers
7. Maintain marketing budgets even
during a tough economy
• Almost 2 out of 3 Top Performers maintained
or increased marketing budgets during the
great recession
“Be fearful when others are greedy.
Be greedy when others are fearful.”
–Warren Buffet
www.act-on.com | @ActOnSoftware | #ActOnSW
29. For More Information….
For more information on the Forrester Study
and the eBook on 7 Marketing Habits of Highly Effective SMBs,
go to:
www.act-on.com/DRIVE
www.act-on.com | @ActOnSoftware | #ActOnSW