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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
Content




          Introduction

          Pitfalls in campaign
          management

          Solutions for increasing
          campaign effectiveness

          Our approach




                    Copyright © 2011 Capgemini Consulting. All rights reserved.
                                                                                  2
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
Content




          Introduction

          Pitfalls in campaign
          management

          Solutions for increasing
          campaign effectiveness

          Our approach




                    Copyright © 2011 Capgemini Consulting. All rights reserved.
                                                                                  4
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
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
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
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
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
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
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
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
Content




          Introduction

          Pitfalls in campaign
          management

          Solutions for
          increasing campaign
          effectiveness

          Our approach




                    Copyright © 2011 Capgemini Consulting. All rights reserved.
                                                                              13
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
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
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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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

Notes de l'éditeur

  1. Ander plaatjevoormannetje –opvangen -