Maximizing return on marketing investments
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Transcript of Maximizing return on marketing investments
Transform to the power of digital
Are you maximizing your return on marketing investments?Point of view
2012
Marie-Christien van Wensen
Copyright © 2011 Capgemini Consulting. All rights reserved.
Content
Introduction
Pitfalls in campaign
management
Solutions for increasing
campaign effectiveness
Our approach
2
Copyright © 2011 Capgemini Consulting. All rights reserved.
Context
Marketing needs to improve return on marketing investments (ROMI)
As a consequence marketing is tasked to improve campaign effectiveness
To be able to do so marketing needs to— 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
Objectives & scope of this document
To explain how organizations can improve their marketing effectiveness by automating the campaign management processes
In scope:— B2B campaigns
Introduction
This document shows how B2B organizations can improve marketing effectiveness by automating their campaign processes
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Copyright © 2011 Capgemini Consulting. All rights reserved.
Content
Introduction
Pitfalls in campaign
management
Solutions for increasing
campaign effectiveness
Our approach
4
Copyright © 2011 Capgemini Consulting. All rights reserved.
5
Typical pitfalls in B2B campaign management process
At B2B marketing organizations, often funnel stages are undefined and campaign management processes are not mapped or automated
Objectives/ KPIs are not defined
Sales is not involved in campaign objectives
Marketing responsible for lead generation in stead of revenue generation
Ineffective supplier management
No true personalization
Learnings of previous campaigns are not incorporated
Tools used are not state of the art
No A/B testing
Campaign performances is not well monitored
Leads created are not properly followed up or handed over to sales
Tools used for monitoring track insufficient data
Campaign is not evaluated
Analysis is not translated into learnings
Evaluation not in line with campaign objectives
Customer insights & segmentation
Define campaign objectives
Designcampaign
Execute campaign
Evaluate campaign
Lack of data enriched database and insight management
Lack of customer segmentation
No 360 degree insight into customer
Campaign management & strategy
Funnel stages and responsibilities are undefined No seamless handover of leads from marketing to sales No efficient automated lead qualification in place No nurturing strategy in place
Campaign management processes are not mapped Campaign management processes are not automated
Copyright © 2011 Capgemini Consulting. All rights reserved.
Our view on why campaigns are not sufficiently effective
There are 6 main challenges preventing B2B organizations from having an effective campaign management
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Customer centricity
Strategy There is no clear campaign or nurturing
strategy and no long term campaign planning
Campaign effectiveness Campaign processes are often ad-hoc and not
well defined
Skills & staffing No sufficient campaign management expertise
present (internal or external with agencies) Lack of resources
Lead management Lead management processes are not well
defined between marketing and sales
Tools Available campaign management tools don’t
have the needed functionalities for adequate automation
Monitoring KPIs are not defined, unclear, monitored or
acted upon
Copyright © 2011 Capgemini Consulting. All rights reserved.
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
Source: Forrester, 2010
What are the biggest challenges according marketeers?
Challenges in the marketing organization Marketing focuses on lead quantity at the
expense of lead quality Having visibility into the progress and
outcomes of leads once they’re distributed to sales
Awareness and engagement with B2B decision-makers
Demonstrating marketing impact on business 40%
Increasing product/service awareness 41%
Improving lead quality 44%
Reaching decision-makers 46%
Generating more leads 50%
Making partner relationships more productive 20%
Allocating the marketing budget across the mix 22%
Deepening customer insight/relationships 22%
Improving customer data quality and availability 25%
Understanding buyer/prospect behavior 27%
Retaining customers, developing loyalty 30%
Enabling sales, improving sales support 32%
Developing the company’s brand 34%
Working within budget/economic constraints 37%
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Copyright © 2011 Capgemini Consulting. All rights reserved.
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
Marketing and sales follow a seamless process 5%
Marketing and sales follow a mapped process 18%
Marketing and sales agree on funnel definitions 38%
Marketing generates leads and passes them all to sales 39%
"Which best describes your adoption of marketing automation?"
Marketing consistently generates sales-ready leads 14%
Marketing and sales operate autonomously
42%
28%Marketing is as facilitating between products&sales teams
16%
Generated leads and throws them over the wall to sales
Sophisticated users 4%
Implemented and making great progress 12%
In the process of implementing 9%
Evaluating 10%
Have not implemented 42%
Implemented but barely scratching the surface 23%
Reasons for the weak state of B2B demand generation
Source: Forrester, 2011
“Which best describes your lead management process?" "How does a prospect perceive the experience of interacting with your company?"
Reasons for lack of demand generation Most B2B firms don’t have a lead management
process Marketing and sales teams work at arm’s length Marketers educate but don’t engage Marketing and sales woefully underutilize marketing
automation opportunities
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Copyright © 2011 Capgemini Consulting. All rights reserved.
Importance of a nurturing strategy
B2B organizations risk to lose huge sales potential without having an effective nurturing strategy in place
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80%gets no
follow up
80%buys anyway from you or
your competitor!
70% is disqualified
20% is followed up 30% is
qualified
20% don’t buy
All leads Active leads Cold leads
Source: Sirius decisions, 2009
Marketing automation helps B2B organizations to stay on top of mind of unqualified leads
Copyright © 2011 Capgemini Consulting. All rights reserved.
Ineffective lead qualification
Inefficient leads qualification results in waste of sales time, high marketing costs and lost opportunities
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Source: Forrester, 2011
Leads leak out the sales funnel
Suspect ProspectQualified
Lead
SalesAccepted
Lead
SalesQualified
Lead
€€Customer
Issue:Marketing hands off leads too early. Leads waste sales’ time
Issue:Marketing spends more to recapture lost leads
Issue:Sales cherry pick leads, letting longer-time-frame leads leak out
Leads leak out of the funnel
Copyright © 2011 Capgemini Consulting. All rights reserved.
Measurement performance
Laggards underperform both on campaign analysis and data quality
Marketing campaigns driven by numbers Data quality and accessibility, by best-in-class
48%
16%
20%
43%
29%
18%Deliver marketing analysis on a programmatic and channel basis
Customer behavior is used to target and segment more effectively
AverageBest in class Laggards
Dissatisfied with customer data quality44%
32%
Satisfied with custoomer data quality36%
48%
36%
Satisfied with customer data accessibility48%
44%
Dissatisfied with customer data accessibility40%
All othersBest in class
To improve marketing effectiveness, campaign measurement has to be in placeSource: Aberdeen, 2011
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Copyright © 2011 Capgemini Consulting. All rights reserved.
Changing customer behaviour
Changes in customer behavior are making the marketing automation mission crucial for B2B organizations
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Consequences for organizationsChanges
Buyers do more research on their own
Business buyers have increased the time they spend talking to peers and colleagues 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.
There are fewer active buyer cycles
While buying cycles are getting longer, a smaller percentage of prospects in the marketing database are in active buying cycles at any one time
Marketers need automation to listen for buying signals
More stakeholders are involved in buying decisions
More stakeholders affect the purchase decision than in the past, including line-of-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.
Content
Introduction
Pitfalls in campaign
management
Solutions for
increasing campaign
effectiveness
Our approach
13
Copyright © 2011 Capgemini Consulting. All rights reserved.
Our view on campaign effectiveness
Building a lead-to-revenue-management process supported by marketing automation ensures that marketing focuses on things that matter, ultimately resulting in more revenue
Campaigns Lead capture Lead qualification Sales funnel Reports & Dashboard
Track which campaigns lead to leads
Track the behavior of prospect
Supply content based on person’s behavior
(automatically) Assign scores to specific leads
Assign leads to specific sales reps.
Follow leads through the sales funnel
Provide content to help close the deal
Nurture leads by providing relevant content
A solid campaign management approach avoids leakage in the funnel and provides 100% visibility on campaign effectiveness
Track marketing effectiveness (revenue, ROI etc.)
Track sales force effectiveness (conversion, effort etc.)
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Copyright © 2011 Capgemini Consulting. All rights reserved.
Capgemini’s Campaign Effectiveness Model
All elements of the Capgemini Marketing Automation Model needs intention to increase the return on marketing investments
Nurturing strategy
Lead management
processes
Campaign effectiveness
Skills & Staffing Campaign
performanceMonitoring
Marketingautomation
tools
Customer CentricCulture
1. Analyze current sales funnel
2. Develop improved sales funnel together with sales for a seamless handover of leads
1. Analyze business requirements2. Assess available marketing automation
tools3. Implement tools and integrate
with CRM
1. Define KPIs of campaign performance2. Develop continious learning cycle
(benchmark & best practices)3. Set-up dashboard
1. Assess needed people & skills2. Identify gap
3. Training & education
1. Assess current campaign processes2. Identify improvements area
3. Implement new processes
1. Assess current maturity2. Define campaign management
goal & vision3. Design nurturing strategy
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Copyright © 2011 Capgemini Consulting. All rights reserved.
Contact details
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
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Marie-Christien van WensenSenior Consultant Digital Transformation
Phone: +31 653317218E-Mail: [email protected]