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Maximizing return on marketing investments
1.
Are you maximizing
your return on marketing investments? Point of view 2012 Marie-Christien van Wensen Marie-christien.van.wensen@capgemini.com Transform to the power of digital
2.
Content
Introduction Pitfalls in campaign management Solutions for increasing campaign effectiveness Our approach Copyright © 2011 Capgemini Consulting. All rights reserved. 2
3.
This document shows
how B2B organizations can improve marketing effectiveness by automating their campaign processes Introduction Context Objectives & scope of this document Marketing needs to improve return on marketing investments To explain how organizations can improve their marketing (ROMI) effectiveness by automating the campaign management As a consequence marketing is tasked to improve campaign processes effectiveness In scope: To be able to do so marketing needs to — B2B campaigns — Understand the behaviour and attitudes of the customer — Review its nurturing strategy — Assess how campaign performance is tracked and measured — Analyze campaign processes and the tools supporting these — Review whether current skills and staffing are in line with campaign management needs — Asses the sales funnel and how leads are moved through that funnel Based on the above assessment, the marketing organization may conclude that it needs to transform its campaign management Copyright © 2011 Capgemini Consulting. All rights reserved. 3
4.
Content
Introduction Pitfalls in campaign management Solutions for increasing campaign effectiveness Our approach Copyright © 2011 Capgemini Consulting. All rights reserved. 4
5.
At B2B marketing
organizations, often funnel stages are undefined and campaign management processes are not mapped or automated Typical pitfalls in B2B campaign management process Campaign management & strategy Funnel stages and responsibilities are undefined No nurturing strategy in place No seamless handover of leads from marketing to sales Campaign management processes are not mapped No efficient automated lead qualification in place Campaign management processes are not automated Customer insights Define campaign Design Execute Evaluate & segmentation objectives campaign campaign campaign Lack of data Objectives/ KPIs Ineffective supplier Campaign Campaign is not enriched database are not defined management performances is evaluated and insight Sales is not No true not well monitored Analysis is not management involved in personalization Leads created are translated into Lack of customer campaign Learnings of not properly learnings segmentation objectives previous followed up or Evaluation not in No 360 degree Marketing campaigns are not handed over to line with campaign insight into responsible for incorporated sales objectives customer lead generation in Tools used are not Tools used for stead of revenue state of the art monitoring track generation insufficient data No A/B testing Copyright © 2011 Capgemini Consulting. All rights reserved. 5
6.
There are 6
main challenges preventing B2B organizations from having an effective campaign management Our view on why campaigns are not sufficiently effective Strategy Lead management There is no clear campaign or nurturing Lead management processes are not well strategy and no long term campaign planning defined between marketing and sales Customer centricity Tools Campaign effectiveness Available campaign management tools don’t Campaign processes are often ad-hoc and not have the needed functionalities for adequate well defined automation Skills & staffing Monitoring No sufficient campaign management expertise KPIs are not defined, unclear, monitored or present (internal or external with agencies) acted upon Lack of resources Copyright © 2011 Capgemini Consulting. All rights reserved. 6
7.
In B2B markets,
marketing & sales functions are key in creating a competitive advantage, but they have difficulties in achieving return on marketing investments Challenges in effective B2B marketing What are the biggest challenges according marketeers? Generating more leads 50% Reaching decision-makers 46% Improving lead quality 44% Increasing product/service awareness 41% Challenges in the marketing organization Demonstrating marketing impact on business 40% Marketing focuses on lead quantity at the Working within budget/economic constraints 37% expense of lead quality Developing the company’s brand 34% Having visibility into the progress and Enabling sales, improving sales support 32% outcomes of leads once they’re distributed Retaining customers, developing loyalty 30% to sales Understanding buyer/prospect behavior 27% Awareness and engagement with B2B Improving customer data quality and availability 25% decision-makers Deepening customer insight/relationships 22% Allocating the marketing budget across the mix 22% Making partner relationships more productive 20% Source: Forrester, 2010 Copyright © 2011 Capgemini Consulting. All rights reserved. 7
8.
The state of
B2B demand generation is weak due to absence of a lead management process, no alignment of marketing & sales and no adoption of marketing automation Reasons for the weak state of B2B demand generation “Which best describes your lead management process?" "How does a prospect perceive the experience of interacting with your company?" Marketing generates leads and passes them all to sales 39% Generated leads and throws them over the wall to sales 42% Marketing and sales agree on funnel definitions 38% Marketing is as facilitating between products&sales teams 28% Marketing and sales follow a mapped process 18% Marketing and sales operate autonomously 16% Marketing and sales follow a seamless process 5% Marketing consistently generates sales-ready leads 14% "Which best describes your adoption of marketing automation?" Reasons for lack of demand generation Have not implemented 42% Most B2B firms don’t have a lead management Implemented but barely scratching the surface 23% process Marketing and sales teams work at arm’s length Implemented and making great progress 12% Marketers educate but don’t engage Evaluating 10% Marketing and sales woefully underutilize marketing In the process of implementing 9% automation opportunities Sophisticated users 4% Source: Forrester, 2011 Copyright © 2011 Capgemini Consulting. All rights reserved. 8
9.
B2B organizations risk
to lose huge sales potential without having an effective nurturing strategy in place Importance of a nurturing strategy All leads Active leads Cold leads 20% is 20% don’t followed up 30% is buy qualified 80% 80% buys anyway gets no 70% from you or follow up is disqualified your competitor! Marketing automation helps B2B organizations to stay on top of mind of unqualified leads Source: Sirius decisions, 2009 Copyright © 2011 Capgemini Consulting. All rights reserved. 9
10.
Inefficient leads qualification
results in waste of sales time, high marketing costs and lost opportunities Ineffective lead qualification Leads leak out the sales funnel Sales Sales Qualified €€ Suspect Prospect Accepted Qualified Lead Customer Lead Lead Leads leak out of the funnel Issue: Sales cherry pick leads, letting longer- time-frame leads leak out Issue: Issue: Marketing hands off Marketing spends leads too early. Leads more to recapture waste sales’ time lost leads Source: Forrester, 2011 Copyright © 2011 Capgemini Consulting. All rights reserved. 10
11.
Laggards underperform both
on campaign analysis and data quality Measurement performance Marketing campaigns driven by numbers Data quality and accessibility, by best-in-class 48% 48% Satisfied with custoomer data quality 36% Deliver marketing analysis on a 18% programmatic and channel basis 32% 20% Dissatisfied with customer data quality 44% 43% 48% Satisfied with customer data accessibility Customer behavior is used to 44% target and segment more 29% effectively 16% 36% Dissatisfied with customer data accessibility 40% Best in class Average Laggards Best in class All others To improve marketing effectiveness, campaign measurement has to be in place Source: Aberdeen, 2011 Copyright © 2011 Capgemini Consulting. All rights reserved. 11
12.
Changes in customer
behavior are making the marketing automation mission crucial for B2B organizations Changing customer behaviour Changes Consequences for organizations Business buyers have increased the time they spend talking to peers and colleagues Buyers do more research on their own before engaging with vendor sales reps, and they do this increasingly online This requires marketers to use automation to monitor the information needs of the potential customer to deliver additional information that helps buyers move to the next stage of the problem-solving cycle. While buying cycles are getting longer, a smaller percentage of prospects in the There are fewer active buyer marketing database are in active buying cycles at any one time cycles Marketers need automation to listen for buying signals More stakeholders affect the purchase decision than in the past, including line-of- More stakeholders are involved in buying decisions business managers, IT, finance, and procurement Marketing needs to deliver information that explains the offerings and business outcomes as they relate to the particular interests and concerns of each stakeholder Source: Forrester, 2011 Copyright © 2011 Capgemini Consulting. All rights reserved. 12
13.
Content
Introduction Pitfalls in campaign management Solutions for increasing campaign effectiveness Our approach Copyright © 2011 Capgemini Consulting. All rights reserved. 13
14.
Building a lead-to-revenue-management
process supported by marketing automation ensures that marketing focuses on things that matter, ultimately resulting in more revenue Our view on campaign effectiveness Campaigns Lead capture Lead qualification Sales funnel Reports & Dashboard Track which campaigns Track marketing (automatically) Assign Follow leads through the sales lead to leads effectiveness scores to specific leads funnel (revenue, ROI etc.) Track the behavior of Assign leads to specific Provide content to help close prospect Track sales force sales reps. the deal effectiveness Supply content based on Nurture leads by providing (conversion, effort etc.) person’s behavior relevant content A solid campaign management approach avoids leakage in the funnel and provides 100% visibility on campaign effectiveness Copyright © 2011 Capgemini Consulting. All rights reserved. 14
15.
All elements of
the Capgemini Marketing Automation Model needs intention to increase the return on marketing investments Capgemini’s Campaign Effectiveness Model 1. Assess current maturity 2. Define campaign management 1. Analyze current sales funnel goal & vision 2. Develop improved sales funnel 3. Design nurturing strategy together with sales for a seamless handover of leads Nurturing 1. Assess current campaign processes Lead 2. Identify improvements area strategy management 3. Implement new processes processes Campaign 1. Analyze business requirements effectiveness 2. Assess available marketing automation Customer tools Marketing 3. Implement tools and integrate Centric automation with CRM Culture tools Skills & 1. Assess needed people & skills Campaign Staffing 2. Identify gap performance 3. Training & education Monitoring 1. Define KPIs of campaign performance 2. Develop continious learning cycle (benchmark & best practices) 3. Set-up dashboard Copyright © 2011 Capgemini Consulting. All rights reserved. 15
16.
Send us an
e-mail and we will provide you with the whole presentation and additional content about how to increase return on marketing investments Contact details Marie-Christien van Wensen Senior Consultant Digital Transformation Phone: +31 653317218 E-Mail: marie-christien.van.wensen@capgemini.com Copyright © 2011 Capgemini Consulting. All rights reserved. 16
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