rethinking the role of marketing
TRANSCRIPT
Ian MichielsPrincipal Analyst & CEO
Gleanster Research
Featured Speakers:
WEBINAR
Rethinking the Role of MarketingAn innovative look at the evolving link between Marketing and the end-to-end customer lifecycle
COMPLIMENTS OF:
Atri ChatterjeeCMO
Act-On Software
Rethinking the Role of Marketingin B2B Customer Engagement
Key Findings from over 750 Marketers in Midsize B2B Firms
Ian MichielsPrincipal & CEOGleanster Research
Agenda
Setting the Stage: The Ultimate Hypothesis
The Many Key Findings from the Survey
Practical Recommendations for Marketers
What’s keeping you up at night?
Empowered & Educated Buyers
Too Many Marketing Channels
Sales and Marketing Alignment
Lack of Time / Resources / Budget
Technology Fragmentation
LEADS & OPPORTUNITY CREATION
Difficulty with Attribution
Improve the Customer Experience
Marketing Executive
What’s keeping you up at night?
The customer experience is the sum total of all interactions a prospect or customer has with a brand.
Marketing
Sales
Service
Cust
om
er
Experie
nce
Marketing Executive
Partners & Affiliates
Improve the Customer Experience !?!
A Litany of Nebulous Concepts
Customer Relationship
Management (CRM)
Customer Experience
Customer Engagement
Customer Lifecycle
Customer Journey
Who is actually responsible for:
Marketing is the Only Function to Touch All Stages
MarketingSales Service
Key Questions to Explore
What is the state of CRM and marketing’s role in CRM?
How do marketers perceive their role in managing the customer lifecycle?
What are the major challenges with managing customer engagement?
Benchmark best practices and tactics used TODAY
Key Finding
Given what we know Top Performers are doing, it’s time to re-think the role of marketing in customer lifecycle engagement.
Ramifications on:
Measurement & Attribution
Technology
Compensation
Strategy & Tactics
REVENUE!
Survey Demographics
All results are biased by marketers perceptions.
Performance data is self-reported and anonymous.
Identifying Top Performers
Apply filters to the data and analyze how a subset of companies answered specific questions.
AVERAGE B2B FIRM
B2B
50-1000 Employees
All others excluding Top
Performers
TOP PERFORMERS
Top 2%
B2B
50-1000 Employees
Beat 2013 Revenue Objectives
“Very Effective” at managing end-to-end marketing lifecycle
Estimate >90% of customers are happy
Only 2% of respondents (15) companies did a “good” job at customer lifecycle engagement in marketing!?!
Here’s how the story unfolds:
1. What is the current state of affairs in customer lifecycle engagement?
2. What does customer lifecycle success look like?
3. What can we learn from these findings?
Marketers don’t feel like they are “primarily responsible” for
managing the customer lifecycle.
Breaking the Customer Lifecycle into Stages
Marketing
Marketing / Sales
Service
Sales
According to marketers – who is the
primary owner?
What do CMOs think?
56%
51%
79%
0% 50% 100%
Expansion
Retention
Awareness /Acqusition
CMO (n=56)
Percentage of CMOs who believe marketing holds primary responsibility for [x] activity?
* Multiple answers allowed
Should Marketing Own CRM?
Scratch that… how do marketers define CRM?
How much time, effort, and budget are allocated to different stages?
The average annual marketing spend - $1.3M.
11% 10% 14% 19% 18% 16% 7% 4% 3%
<$50k $50k -$75k
$75k -$100k
$101k -$500k
$500k -$1M
$1M -$2M
$2M –$5M
$5M -$10M
> $10M
Marketers generally feel like they are effective at
end-to-end customer engagement.
Marketers are Generally Confident –
But is it Justified
Are You Effective At Managing The End-to-end Customer Experience?
37% 50% 13%
Very Effective Effective
NotEffective
56% 44%
Very Effective Effective
AVERAGE
TOP PERFORMERS
Top Performers allocate more time and effort on retention and
expansion.
Top Performers spend more on awareness and up-selling.
How much time, effort, and budget are allocated to different stages?
Average Companies spend
Effort acquiring new customers:Average companies spend 67%Top Performers spend 52%
Average Companies spend
Budget acquiring new customers: Average companies spend 54%Top Performers spend 46%
Why Marketers Should Focus on Retention?
1. Finite products and services = Finite campaigns
2. You can automate campaigns with behavioral data to up-sell to existing customers
3. Attribution to real revenue!
What’s the difference between Top Performers and Average Firms?
What’s the difference between Top Performers and Average Firms?
Top challenges remain virtually the same as they did 10 years ago.
Themes: People, Process, Technology
What are the top challenges that cause you to struggle with current marketing objectives?
58%
60%
73%
80%
83%
90%
95%
Our processes are inefficient
We don't collect the rightcustomer data
Internal skills and expertise
Limitations with currenttechnologies
Fragmented marketing systems
Marketing alignment with sales
Access to existing customer data
All Respondents
Deeper Dive on People Challenges
39%
55%
48%
48%
50%
25%
28%
36%
41%
92%
Internal skills and expertise
No accountability for processimprovement
Leadership doesn't value emergingB2B tactics
Marketing and sales collaboration
Hiring skilled resources
Top Performers Average
Deeper Dive on Process Challenges
71%
82%
59%
30%
39%
50%
Lack of processimprovement
Decisions not metricbased
Legacy processes partof culture
Top Performers Average
Deeper Dive on Technology Challenges
84% 83% 59%41% 92% 56%
Configuringcampaigns
Multiple systemsmanage separate
channels
Marketing & salestechnology doesn't
integrate
Top Performers Average
90% of B2B firms still measure marketing on inquiries and marketing qualified leads
(Acquisition Metrics).
You can’t manage the customer lifecycle or make people accountable unless you
measure and compensate for the right behavior.
Where’s the accountability?
TOP PERFORMERS ARE 2X MORE LIKELY TO TIE MARKETING OBJECTIVES TO THE ENTIRE CUSTOMER LIFECYCLE
Marketers are in an ideal position to manage and optimize
the end-to-end customer lifecycle.
Marketers aren’t compensated appropriately for the effort.
Three key findings:
1. Marketing technology is the central conduit for monitoring, measuring, and engaging with customers across the entire customer lifecycle.
2. There is currently a massive misalignment of efforts at average B2B mid-size firms. Nobody is actually accountable for optimizing the holistic customer lifecycle.
3. The customer lifecycle needs a leader.
Managing the customer lifecycle is very difficult with fragmented
technologies.
B2B companies still rely heavily on legacy technologies like stand-alone
email.
What marketing technologies support the customer lifecycle?
Top Performers were 20% more likely to use Marketing Automation
* All Respondents
Other Marketing Automation Trends in the Research
2010-Present
Marketing automation helps to activate customer data (implicit & explicit) because it unifies fragmented channels.
Top Performers are typically 5-7x more likely to use marketing automation.
Marketing automation allows marketers to automate campaigns that capture more revenue from customers.
Companies report an average of 120% boost in sales-ready leads as a result of MA.
Marketing automation makes CRM more valuable and encourages reps to use CRM.
Top Performers are 2x more likely to use behavioral data to trigger
engagement.
BUT the vast majority of companies struggle with relevance.
How are companies leveraging personalization?
29%
39%
45%
36%
42%
39%
38%
56%
63%
63%
75%
75%
0% 50% 100%
Segmentation with psychographicattributes (interests)
Segmentation with demographicattributes (industry, role)
Segmentation with purchasehistory data
Personalizing customer campaignswith CRM data
Adjust messaging based onprospect behavior
Personalizing messaging by stagein the customer lifecycle
Top Performers Average
Recommendations
Prioritize Customer Engagement Efforts
Overcome the desire to cast the net wide
Struggling with segmentation in existing marketing tools – use CRM data to isolate trends sales conversions
Identify 1-5 target audiences
Refine content efforts to proven segments
Only 50% of B2B firms had a blog
Move from static campaigns to behavior-based and segmented engagement.
6 out of 10 companies used marketing automation
The right tools are not being used effectively
-or- the right tools don’t exist
87%
67%
13%
33%
0% 50% 100%
Top Performers
Average
Yes No
Take a stab at documenting the customer journey –
look for potholes
Attribution in Retention Efforts!
Marketing Attribution? 10%? 20%? 30%?
Sales
Hiring and Retaining Talent
90% of SMB companies that invested in marketing automation did not find it necessary to hire new headcount.
Additional Recommendations
Focus on new customer acquisition AND engagement with existing customers
Partner with an agency to get specialized help & step up your game
Segment and personalize to improve engagement
Marketers need to step up and showcase their impact on the end-to-end customer lifecycle. Make a case for more budget, financial incentives, and attribution.
Summary Findings
1 There is a massive misalignment of efforts and objectives at average B2B mid-size firms.
2 The customer lifecycle needs a leader
3 Marketing technology is key to monitoring,
measuring, and engaging with customers across the entire lifecycle
Q&AIan MichielsPrincipal & [email protected]@gleanster.com