the leader in software value management page 1 of 40 daniel greenberg vp worldwide marketing...

The Leader in Software Value Management of 40

Daniel Greenberg

VP Worldwide Marketing

Macrovision

Integrating Market Research into the

Full Marketing Mix


MACROVISION BACKGROUND

• NASDAQ: MVSN; founded 1983

• Industry standard in software for installations & licensing

• Software deployed on more than 500 million desktops worldwide

• $150M+ revenues; profitable 34Qs in a row


PHILOSOPHY

• Research is a means to an end, not an end in and of itself

• “Customer centricity” means incorporating customer feedback into everything that touches a customer

• Research is a means to an end, not an end in and of itself

• “Customer centricity” means incorporating customer feedback into everything that touches a customer


RESEARCH SHOULD INFORM ALL STAGES OF THE MARKETING CONTINUUM

Qualitative Research

Quantitative Research

MRD

PRD

UI Mockup

Usability Testing

<a miracle happens>

Beta TestPricing

Collateral

Sales Training

Public Relations

General Availability

Advertising

Direct Marketing

ROI Analysis

CustomerFeedback

Product Management

MarketingCommunications


AGENDA

• Background

• Diagnostics

• Decisions

• Tools


Product A Product B Product C Product D Product E

MARKETMARKET

Growing Market W-Flat/M-Gro Flat Increasing Increasing Increasing

Level of Penetration W-Hi/M-Low Low Low Low Low

Competitive Position Strong Strong Strong Strong Neutral

PRODUCTPRODUCT

Pricing OK OK OK OK OK

Feature Set High Value High Value High Value Average Low Value

Quality/Bugs Average Average Average Average High

SALES & MARKETINGSALES & MARKETING

Aware./Brand Equity W-Hi/M-Low Low – 15% Low Low Low

Volume of Leads/Rep W-Ad./M-Low Low Adequate Adequate Low

Sales Tools Average High Value Adequate Inadequate Inadequate

Channel Strength Strong Weak Weak Average Weak

Q4 STRATEGIC BAROMETERCOMPANY X PRODUCTS

NEWMATURE MATURITY


Q3-Q4 TACTICAL BAROMETERCOMPANY X PRODUCTS

Product A Product B Product C Product D Product E

SALESSALES

Sales Cycle Flat Long Flat Flat Longer

Rep Productivity Decreasing Increasing Flat Flat Decreasing

Channel Devmt. Improving Low Flat Increasing Increasing

MARKETINGMARKETING

Leads/rep Decreasing Increasing Flat Decreased Increasing

SUPPORTSUPPORT

Days open Increasing Declining Flat Flat Flat

# of Inquiries Increasing Flat Flat Flat Flat

Productivity Flat Increasing Unknown Flat Decreasing

FINANCIALSFINANCIALS

$ Bookings Slightly up Declining Good Flat Increasing

Units Declining Declining Flat Flat Down

$ Maintenance Flat Flat Flat Flat Down

Direct Prod. Profit Flat Flat Improving Flat Flat


Key Metrics - Marketing

Category Metric Source Frequency

Awareness, Preference, & Thought Leadership

% Aware & % Prefer Commissioned tracking study

Annual

# of Articles placed PR agency Monthly

# of Speaking opps PR agency Monthly

# of Unique visitors to website Webtrends Monthly

Leads #of Qualified leads per rep CRM system Monthly

$ Cost per lead Marketing system Quarterly

$ Cost per sale CRM system Quarterly

Sales Cycle Length

Avg time between oppty & close

CRM system Quarterly

Avg Selling Price $ ASP by product line Financial reporting system

Quarterly

Expenses $ Variance from budget Financial reporting system

Monthly


Category Metric Source Frequency

External Customer Satisfaction

Tracking study Survey with customers

Annual

Lost Business Tracking study Survey with lost prospects

Quarterly

Internal Customer Satisfaction

Salesforce satisfaction 57% Quarterly

Leads per rep Survey with salesforce

Quarterly

Collateral (literature, ppts, website) Survey with salesforce

Quarterly

Awareness Survey with salesforce

Quarterly

Product Lifecycle Deliverables

Completion of PRDs/MRD’s on time

CRM system Quarterly

Launch products on time Financial reporting system

Quarterly

Key Metrics - Marketing


SALESFORCE SATISFACTION


SALESFORCE SATISFACTION

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Responsiveness of ProductManagement

Follow through on commitments& promises

Understanding of yourcustomers’ needs

Understanding of your needs

Responsiveness of MarketingCommunications

Quality of output (collateral,products, etc)

Professionalism

OVERALL SATISFACTIONWITH MARKETING

Salesforce Satisfaction with Marketing (all products)

Very Unsatisfied Unsatisfied Neutral Satisfied Very Satisfied

62 Salespeople Responding

REGRESSION EQUATION:Overall Satisfaction = .34 Output* + .29 FollowThru* + .18 Understanding Your Needs + .17 CustomerNeeds + .05 Marcom Responsiveness + .02 ProdMgt Responsiveness {Professionalism is not correlated}

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Responsiveness of ProductManagement

Follow through on commitments& promises

Understanding of yourcustomers’ needs

Understanding of your needs

Responsiveness of MarketingCommunications

Quality of output (collateral,products, etc)

Professionalism

OVERALL SATISFACTIONWITH MARKETING

62 Salespeople Responding

REGRESSION EQUATION:Overall Satisfaction = .34 Output* + .29 FollowThru* + .18 Understanding Your Needs + .17 CustomerNeeds + .05 Marcom Responsiveness + .02 ProdMgt Responsiveness {Professionalism is not correlated}


AGENDA

• Background

• Diagnostics

• Decisions

– Product Development

– Pricing

– Promotion

– Channel/Sales Support

– Team

• Tools


• Customer driven feature prioritization

Definitely Would Buy><Definitely Would Not Buy

21%

42%

20%

15%

30%

32%

25%

20%

30%

0%

5%

10%

15%

15%

16%

40%

45%

50%

CodewarriorCompatibility

Linux Security

LDAP Integration

Auto Logging

Usage Tracker

Channel Empowerment

Commercial DatabaseCompatibility

Trial Licensing

Reliability of LicenseServers

Probably Would Not Use Definitely Would Not Use Probably Would Use Definitely Would Use

PRODUCT REQUIREMENTS: Feature Prioritization


PRODUCT DEVELOPMENT: Usability Testing


0

10

20

30

40

50

60

70

80

90

DefinitelyWould NOT

Buy

Might NOTBuy

Might Buy DefinitelyWould Buy

Now that you have tried Product AHow likely are you to buy it?

PRODUCT DEVELOPMENT: Beta Testing


PRICING

• Test: – New pricing on e-store

• Controls: – Original prices in channel– No promotional activity– vs. previous month


BRANDING

• Test potential names with prospects & customers

Results based on 20 customer interviews completed April, 2003


BRANDING

• Test potential brand attributes with customers & prospects



BRANDING

• Determine how the company is perceived today


PACKAGING & COLLATERAL

• Test key themes and purchase drivers with customers

• Collateral & advertising copy based on research findings


More Important><Less Important

-2 -1.5 -1 -0.5 0 0.5 1 1.5 2

Mobility

Platforms

Ease of Integration

Security

License Models

Flexible Packaging

Tracking & Monitoring

End user experience

Reliability / Performance / Scalability


CHANNEL/SALES SUPPORT

0% 5% 10% 15% 20% 25% 30% 35% 40%

PM Access

Collateral

Awareness of Macrovision

Testimonials

Website

Product Awareness

Pricing

Sales Product Training

More Leads

Lead Quality

Features

How can we make it easier for you to sell Product A?

• Identifying chief impediments to sales


CHANNEL/SALES SUPPORT

Where have your best leads come from?

• Identifying best sources of leads

0% 10% 20% 30% 40% 50% 60% 70% 80%

SoftSummit

Online Ads

Magazine Articles

Magazine Ads

Direct Mail

Whitepaper

Telemarketing

Email

Conferences

Cold Calling

Webinars

Referrals


PUBLIC RELATIONS

• Tracking of PR activity

Public Relations Results

5 6

1 1

6 6

1 2

11

17

6

10

5

13

5

2

6 5

1 2

6

1 2

5 5 4

1 1 2 11 1 1 2 13

1 1 21

4

1 1 1

6

0

10

20

30

40

50

60

70

80

90

100

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Nu

mb

er

STG Articles

Press Meetings

Analyst Meetings

By-lined Articles-Placed

Speaking Opps-Placed

Analyst Mentions

Editorial Opps-Placed


PUBLIC RELATIONS

• Quantifying PR results

Quantification of PR ResultsRolling 12 Month Cumulatives ($,000)

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

2004

NET Benefit (Equivalent Ad Exposure - PR Expense)

PR Expense

IS Acquisition


ADVERTISING

• New campaign introduced in 2004

• California Test Market


ADVERTISING

• Year-on-year aided & unaided awareness

0

710

48

85

50

40

30

37

410

51

15

67

MacrovisionFLEXnet

FLEXnet Manager SAMsuite PlatformIntelligence

IBM Tivoli/LicenseManager

Sassafras K2 Own company'sinternally

developed software

2003 Total Awareness (Aided & Unaided)

2004 Total Awareness (Aided & Unaided)


DIRECT MARKETING: Source Testing


DIRECT MARKETING: Creative Testing


Form factor Form factorTotal Impressions CTR Clicks Conversion Reg

End to end rate Media cost

Cost Per Registrants

Business Week 707214 2460 49 13,434.95$ 274.18$ Homepage Banner 468x60 204160 0.12% 244 1.23% 3 0.0015%Homepage Eyeblaster Eyeblaster 758 NA 13 0.00% 0 0.0000%Tech Newsletter160x600 34541 0.10% 33 12.12% 4 0.0116%Technology Eyeblaster 135909 0.96% 1305 0.69% 9 0.0066%Technology 728x90 331846 0.26% 865 3.82% 33 0.0099%NY Times 1877747 4218 98 13,018.21$ 132.84$ ROS Banner 468x60 727946 0.09% 644 0.47% 3 0.0004%Tech 728x90 365234 0.16% 594 6.73% 40 0.0110%Tech Skyscrape 429016 0.36% 1540 2.86% 44 0.0103%Technology Section EyeblasterEyeblaster 355551 0.41% 1440 0.76% 11 0.0031%SIIA 113400 77 6 1,125.55$ 187.59$ Newsletter Tracking Pixel 105000 0.47% 49 12.24% 6 0.0057%Press release 8400 0.33% 28 0.00% 0 0.0000%Softletter 5014 87 33 1,250.61$ 37.90$ Email 5014 1.74% 87 37.93% 33 0.6582%CMP High Tech DB 5000 127 12 2,347.82$ 195.65$ Email 5000 2.54% 127 9.45% 12 0.2400%SoftwareCEO 16462 44 16 1,304.36$ 81.52$ Banner 468x60 8167 0.17% 14 21.43% 3 0.0367%Text Ad 8295 0.36% 30 13Software Business 17660 31 8 1,000.13$ 125.02$ Newsletter 468x60 17660 0.18% 31 25.81% 8Wall St. Journal 46395 53 4 4,454.06$ 1,113.52$ Tech 300x250 23162 0.16% 36 8.33% 3 0.0130%Tech 120x600 23233 0.07% 17 5.88% 1 0.0043% 1,484.69$ Total unique universe 2788892 0.26% 7097 3% 226 1.0122% 37,935.69$ 167.86$

Form factor Form factorTotal Impressions CTR Clicks Conversion Reg

End to end rate Media cost

Cost Per Registrants

Business Week 707214 2460 49 13,434.95$ 274.18$ Homepage Banner 468x60 204160 0.12% 244 1.23% 3 0.0015%Homepage Eyeblaster Eyeblaster 758 NA 13 0.00% 0 0.0000%Tech Newsletter160x600 34541 0.10% 33 12.12% 4 0.0116%Technology Eyeblaster 135909 0.96% 1305 0.69% 9 0.0066%Technology 728x90 331846 0.26% 865 3.82% 33 0.0099%NY Times 1877747 4218 98 13,018.21$ 132.84$ ROS Banner 468x60 727946 0.09% 644 0.47% 3 0.0004%Tech 728x90 365234 0.16% 594 6.73% 40 0.0110%Tech Skyscrape 429016 0.36% 1540 2.86% 44 0.0103%Technology Section EyeblasterEyeblaster 355551 0.41% 1440 0.76% 11 0.0031%SIIA 113400 77 6 1,125.55$ 187.59$ Newsletter Tracking Pixel 105000 0.47% 49 12.24% 6 0.0057%Press release 8400 0.33% 28 0.00% 0 0.0000%Softletter 5014 87 33 1,250.61$ 37.90$ Email 5014 1.74% 87 37.93% 33 0.6582%CMP High Tech DB 5000 127 12 2,347.82$ 195.65$ Email 5000 2.54% 127 9.45% 12 0.2400%SoftwareCEO 16462 44 16 1,304.36$ 81.52$ Banner 468x60 8167 0.17% 14 21.43% 3 0.0367%Text Ad 8295 0.36% 30 13Software Business 17660 31 8 1,000.13$ 125.02$ Newsletter 468x60 17660 0.18% 31 25.81% 8Wall St. Journal 46395 53 4 4,454.06$ 1,113.52$ Tech 300x250 23162 0.16% 36 8.33% 3 0.0130%Tech 120x600 23233 0.07% 17 5.88% 1 0.0043% 1,484.69$ Total unique universe 2788892 0.26% 7097 3% 226 1.0122% 37,935.69$ 167.86$

DIRECT MARKETING: ROI Measurement


OTHER APPLICATIONS OF RESEARCH: Team Assessment

• DISC assessment of team members


OTHER APPLICATIONS OF RESEARCH: Employee Satisfaction

• Employee satisfaction leads to customer satisfaction


AGENDA

• Background

• Diagnostics

• Decisions

• Tools


TOOLS: Qualitative Research

• No longer “lost in translation”…

MP3

• …Bringing the voice of the customer to the ears of management


TOOLS: Online Vendors

• Zoomerang – low cost, inflexible

• SurveyMonkey – slightly higher cost, more flexible

• InsightExpress – very high cost, most flexible

• Cheetahmail – email marketing system


SOME LEARNINGS

• Begin with the end in mind

• Create your PPT charts before you write your survey

• Begin with the end in mind

• Create your PPT charts before you write your survey

the leader in software value management page 1 of 40 daniel greenberg vp worldwide marketing...

Documents