The CMO Imperative | Data Driven Results
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The CMO Imperative | Data Driven Results
- 1. The CMO Imperative| Data Driven Results 15 years experience 1,000 global partners 12,000 customers worldwide integrate accelerate™
- 2. The CMO Imperative| Data Driven Results Peter Chase Executive Vice President and Founder Scribe Software @PeterRChase peter.chase@scribesoft.com Brendan Peterson ISV Technical Evangelist Scribe Software @scribenerd Brendan.peterson@scribesoft.com integrate accelerate™ 2
- 3. Today’s Presentation • the changing landscape • data driven marketing strategies • data driven marketing in action • wrap up integrate accelerate™ 3
- 4. Marketing Automation is Hot Marketing automation will lead CRM application segment growth with a 10.7% compound annual growth (CAGR) through 2016, reaching a total market value of $4.6B. Gartner, 2013 integrate accelerate™ 4
- 5. Data is King 4.5 The hours per week the 15% The percent of businesses average employee spends that have fully integrated tracking down information their customer-facing 55% they need to do their job.1 systems3 The percentage of businesses that consider data integration 70% $14B to be a critical component of their information management strategy according to Ventana Research The percent of businesses The size of the CRM market in that plan to spend more on 2013 according to Gartner, data-related marketing December 2012.4 initiatives in 20132 1 Data Growth and Protection Survey, March 2012, Symform & StorageCraft integrate accelerate™ 2 Infogroup, January 2013 3State of Data Integration Survey, Scribe Software, March 2012 4CRM Revenue Forecast, Worldwide 2009 – 2016, Gartner, Dec 5 2012
- 6. Data is King CMOs in outperforming organizations invest more effort in integrating and using data to foster customer relationships. How Customer Data is Used: • Segmentation/targeting [67%] • Pre-sale product education [56%] • Needs-based content [54%] • Delivering offers to buy [58%] From Stretched to Strengthened IBM Institute for Business Value Global CMO Study integrate accelerate™ 6
- 7. Integrated Marketing Delivers Results 38% Higher Lead Conversion with IMA Source: 2011 Lead Generation Marketing ROI Study, The Lenskold Group integrate accelerate™ 7
- 8. The Data Integration Gap integrate accelerate™ Source: The State of Customer Data Integration 2012, Scribe Software
- 9. Today’s Presentation • the changing landscape • data driven marketing strategies • data driven marketing in action • wrap up integrate accelerate™ 9
- 11. Why is Integrated Marketing So Elusive? We don’t fully understand what it is We don’t know where to start We don’t know how to finish integrate accelerate™
- 12. What is NOT Effective Integrated Marketing? • Simply extending parts of your Marketing Automation platform into CRM • Don’t cripple the best tools for the job! • Integrating data and process across applications at every level • Let the crazy ones solve the unified customer database / MDM problem • Avoid death by tight coupling integrate accelerate™
- 13. Closing the Gap ERP CRM data capture| customer driven campaigns 1 Marketing CSS Automation more targeted| more personalized Social Other data delivery| from programs to field 2 actionable| more effective data aggregation| measurement 3 visibility| entire sales & marketing funnel integrate accelerate™ 13
- 14. Today’s Presentation • the changing landscape • data driven marketing strategies • data driven marketing in action • wrap up integrate accelerate™ 14
- 15. Steps to Success 1. Utilize a platform that provides for expansion and change 2. Utilize an experienced implementation partner 3. Define discreet use cases (who, what, when) 4. Define the logical data mapping (including any pre-requisites) 5. Prioritize based on business value vs. cost/complexity 6. Implement 7. Repeat for the next priority integrate accelerate™
- 16. Example Use Case: When a customer order is processed in our ERP application for over $10,000, capture the customer and contact data and pass it to our MA system for inclusion in our weekly Elite customer program campaign. Business Value: Increased sales to high value customers through exclusive promotions in the Elite customer program. Expected add’l annual revenue of $1 MM ($500 per Elite customer at 2,000 new Elite customers per year). Logical Data Map: MAP #1: CAPTURE LARGE CUSTOMER ORDERS FROM ERP AND SEND TO MA FOR ELITE INVITATION Use Case(s) Supported: 1 Frequency: Every 24 hours Data Volume: up to 100 records per day Latency: 90 minutes Source: ERP Target: Marketing Automation Object Filter Lookup Key Object Operation Lookup Key API (s) Contacts All main billing contacts contactid (GUID) Subscriber Update or insert CustomerNumber CreateSubscriber that have a related UpdateSubscriber order record that was newly created and was over $10,000. Notes: The CustomerNumber which is maintained in ERP and shared with CRM needs to be stored in the subscriber record in the MA system. integrate accelerate™
- 17. Product Demonstration 1. create subscribers from Dynamics AX and associate them with an Elite customer list 2. update Subscribers with attribute data from Dynamics CRM 3. execute send to subscribers from within ExactTarget 4. update Dynamics CRM with send and subscriber level metrics for analysis and follow-up Product purchase history Send + Subscriber Metrics Contacts + Leads + Marketing Lists integrate accelerate™ 17
- 18. ROI on Data in Marketing is Big Money B2B Example % Baseline New Improvement Improvement Number of emails sent per month 50,000 50,000 Email open rate 15.0% 15.5% 0.5% 3% Monthly open volume 7,500 7,750 250 Conversion rate 5.0% 5.2% 0.2% 4% Average sales price $ 20,000.00 $ 20,000.00 Email driven revenue per month $ 7,500,000 $ 8,060,000 $ 560,000 7% B2C Example % Baseline New Improvement Improvement Number of emails sent per month 10,000,000 10,000,000 Email open rate 10.0% 10.5% 0.5% 5% Monthly open volume 1,000,000 1,050,000 50,000 Conversion rate 20.0% 20.5% 0.5% 2% Average sales price $ 100.00 $ 100.00 Email driven revenue per month $ 20,000,000 $ 21,525,000 $ 1,525,000 8% integrate accelerate™ 18
- 19. What Next 1. Get started on it tomorrow 2. Pick off the low hanging fruit 3. Build experience and momentum 4. Tackle the more complex high value use cases 5. Achieve Effective Integrated Marketing Automation integrate accelerate™
- 20. The CMO Imperative| Data Driven Results Peter Chase Executive Vice President and Founder Scribe Software @PeterRChase peter.chase@scribesoft.com Brendan Peterson ISV Technical Evangelist Scribe Software @scribenerd Brendan.peterson@scribesoft.com Stop by our booth number 420, visit www.scribesoft.com or talk to our ISV partners: integrate accelerate™ 20
Editor's Notes
- Welcome and thanks for joining our discussion about the changing role of the CMO and how data is the key to achieving success in this new socially connected world. My name is Peter Chase and I am joined by Brendan Peterson. We work closely with SaaS providers in the CRM and digital marketing spaces to develop capabilities that enable their customers to better leverage data across systems so they can more closely connect with prospects and customers to drive greater topline results. We have about 35 - 40 minutes of content today which should leave us enough room to keep the entire session interactive. If you have any questions or thoughts, lets take them as they come. If we get too far off track, I reserve the right to move us along.
- I will start today by sharing some interesting industry data demonstrates how leveraging data and information is becoming more and more important to successful marketing strategies. We will then explore some strategies to better leverage this data and information. The strategies discussion will followed by a more detailed review of how to successfully implement these strategies. Brendan will provide a brief software demonstration that highlights an implementation in action.
- Marketing automation, whether that be outbound execution via email or mobile or inbound web tracking and lead scoring, companies are beginning to invest heavily in the segment. By a show of hands, how many folks have implemented a marketing automation system? Of those that have, how many are using one of the applications like Click Dimensions or CoreMotives that run within the Dynamics CRM platform. How many are using an enterprise platform like ExactTarget, Silverpop, Marketo, or Eloqua?
- Integration is front and center today. Its on the minds of CIOs, CTOs, and CMOs and often tops the list. Interestingly though with huge investments being made in CRM – an estimated $14B in 2013 according to Gartner and in marketing initiatives, there is still a significant lack of integration amongst customer facing systems, which has a real impact on employee productivity. Valuable time is wasting tracking down and cobbling together data that could be better spent selling, marketing, processing orders and improving customer satisfaction. This problem is only getting more complex with the growth in cloud and mobile applications.
- IBM conducts some of the best executive level research in the IT industry. In their recent Global CMO study, they found that the outperforming organizations were better at integrating and leveraging the data that they had to develop and grow customer relationships. Whether it was to improve the targeting and segmentation of their communication efforts or to deliver a more personalized experience, organizations that were successful with their integration strategies delivered better top and bottom line results from their marketing efforts.
- Further reinforcing this point, the Lenskold Group conducted another study and found similar results. They looked at some key performance indicators and what they found was they a much higher percentage of customers that integrated their customer data with their marketing automation platforms showed improvement at a much higher percentage than those that did not. Just look at the lead conversion statistic alone. There was a 38% gap, a stark contrast.
- Not to be outdone, we performed our own study. The following comes from a Survey of about 275 organizations that Scribe commissioned lastyear on the state of Customer Data Integration. As you can see, 60% of respondents said that integrating their CRM system with their Marketing Automation efforts was very important…a pretty high percentage. However, when asked whether they felt that they had fully integrated these two activities, only between 18 and 29% felt they had. Another interesting note is that those that used 3rd party system integrators had fully integrated their efforts at a 50% greater rate. Scribe delivers its products exclusively through a network of over 1,000 System Integrators across the globe. We understand the key role that these SIs play in delivering successful solutions for customers.So why does this gap between desire and achievement exist? We will come back to that in a minute.
- Shifting gears, I will now walk through a way to think about approaching the data challenge within your own organization.
- This chart represents the ideal. If only I could rationalize and organize all the data I have collected about my customer and leverage it across all of the channels of communication with that customer. My life would be easier, my marketing efforts would be more effective, and my companies yield on marketing spend would go up dramatically. Collecting data is the easy part, the real challenge is connecting the different types of data across multiple channels. This is where companies will win and lose. It drives higher revenue, higher customer satisfaction and lower cost. Customers today have a plethora of touchpoints through which they receive and send data and those touchpoints feed a variety of applications which traditionally have been owned by a particular department or function within an organization. Today the amount of data moving back and forth has grown exponentially, the touchpoints have grown exponentially and its all residing in different platforms – some in the cloud and some on premise. And to meet customer expectations, that data needs to easily and instantly flow across the organization . This shift has completely changed the integration needs of companies. For many marketers, this chart makes their eyes gloss over. Do you mean to tell me that I have to solve all of this to be an effective marketer. Like any big challenge, this will not be solved in the short-term…it is a longer-term journey. In the meantime, how do you get started on tackling the problem.
- Our experience is that the biggest obstacle is a lack of understanding of what integrated marketing automation really is…and therefore many companies do not know where to start or when they have fully integrated their efforts. So let’s talk about what integrated marketing is for a second…but first let’s start with what it is not.
- Most of the enterprise-class marketing automation platforms, like ExactTarget, Silverpop, or Marketo, provide a basic level of integration where a limited set of the marketing functionality is exposed inside of the CRM application, either through an iFrame of a set of customizations in the CRM system. They enable users to create lists or groups of contacts and execute an email campaign for example against that group. The marketing engine takes over in the background, delivers on the campaign and then reports back results into CRM. While this is good functionality, it is not fully integrated marketing. What it does not enable is the power marketer to take advantage of all of the powerful capabilities of the marketing platform, while leveraging the data in CRM and other systems within the business.On the other extreme, it is not integrating all of a companies data and process across every application at every level. You can accomplish fully integrated marketing without solving the unified customer record / master data management problem. Most of us in the room don’t have the time, patience, and political will to tackle that thorny organizational issue. Also, if you tie applications together too tightly they begin to diminish each other’s effectiveness…they were designed for a specific purpose and may not fit together perfectly for that very reason.
- A solid strategy for integrating marketing across your systems should focus on 3 key objectives. First, how do I capture data from across my other systems, including CRM, customer support, ERP, and other to drive more targeted and personalized communications with customers, whether that be outbound or inbound? Second, once my marketing outreach has done its job and identified a customer or prospect that we should engage with more proactively, how does that get consistently and immediately delivered to the right channels for follow up. It could be having a sales person following up on a hot opportunity or opening a support ticket so that a product specialist can follow up on a customer frustration. Finally, how do you gain a complete understanding of the entire marketing and sales funnel to create greater visibility into the success (or lack thereof) of your marketing initiatives so you can adjust your investments and tactics accordingly?
- Let’s drill down one level deeper to the tactical implementation of these strategies.
- First, (and this is the shameless self promotion portion of the presentation) it is really helpful to utilize a flexible platform for creating and managing your integration efforts. As we will see, the best way to achieve integrated marketing is through iterative efforts. Speed, agility, and flexibility are key…a good integration platform will provide that.Second, going back to the survey earlier, and this also reflects our experience at Scribe. Companies that leverage 3rd party experts achieve much better results with integration. It is a specialized skill and our partners demonstrate their prowess here every day.Third, start with the use cases that support your discreet marketing objectives. What data do I need to drive this objective, where does the data exist, when do I need to capture it, etc. One of the biggest mistakes we see at this step is trying to mix design into requirements. This is requirements…state them clearly in plain language. Once you have done that, you can define the logical data maps that will drive the integration itself. These are the design requirements. Some integration efforts have a set of prerequisites, typically some data synchronization that needs to occur before the key information can be delivered. For example, if I want to pass back detailed click through metrics into CRM, I need to have synchronized the contact record in MA with the contact or lead in CRM…I need a place to attach the data to. This needs to be built into the design. You can then prioritize the integration use cases by their return versus the cost and complexity to implement. Start with the high value, low effort items first, then move on to the higher effort ones later.Implement a few processes and then repeat down your priority.
- The following is an example of steps 3 through 5 from the steps on the previous chart.
- Brendan is now going to walk us through a demonstration of this use case in action. For purposes of the demo, we will showcase an integration between ExactTarget and Dynamics CRM. We will also be bringing in the purchase data from Dynamics AX. Brendan…
- Here we see examples from our integrated marketing automation ROI calculator. The calculator focuses on the yield on a customer outbound email campaigns. What it demonstrates is that a small change in the open rate on emails, driven more targeted and personalized messages along with an increase in the conversion rate from email open to close driven by more consistent and timely field execution, can have a profound impact on the top and bottom line. The chart provides both a B2B and B2C example. B2B tend to be smaller email volumes yet higher sales price with B2C the opposite.
- To summarize…
- Thanks for your time today. If you would like to learn more about data integration, please stop by our booth number 420 in the next hour and a half or you can visit our Web site. I would also encourage you to check in with some of our ISV partners to discuss how they are driving success through data. The ones shown here are at the show.