b2b online - marc god - dsm
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e-vangelists: How to turn conviction into cashTactics and lessons from implementing digital Marketing and CRM in a global multidivision b2b company
Marc God, Director e-business, DSM
EMERCE B2BApril 7, 2011
Purpose of today
• Dealing with the realities of ‘the interim state’:Tactics and lessons from implementing CRM and digital marketing across a global multi-division b2b company
• Focus on the ‘How To’ as this is the tricky part
• Assumptions: – We all know the key trend in b2b marketing (the ‘why’)– We therefore all know what to do– Yet we are struggling with how to do it, …
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How can we turn conviction of the value of ‘e’ into €€€’s for our
company’s?
Just to be sure
• What is the key trend in (b2b) marketing?• What is ‘the interim state’?
The key trend in marketing (or the world for that matter) is …
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We need Technology to work for us rather than the other way around
Low cost Connectivity (as a utility)anytime, anywhere, in anyway
I describe ‘the interim state’ as this decade where we are not there yet
The purpose of this presentation is to either • help some of you better appreciate the challenges we face or• help some others of you with some tactics to shorten ‘the interim
state’
“The next 5 years will see an explosion of Marketing Technology” Scott Brinker, Marketing Technologist
Outline
• Intro– DSM– E-business @ DSM: a brief history
• 3 Cases– CRM pilot– Global CRM Program– e-marketing, a real life case
• Key Lessons
• Discussion
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DSM: A story of transformation
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DSM: looking forward
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E-business with DSM: a brief history …
• 2000-2006: High e-ordering adoption (~70% of revenue ordered online)– Webshop, B2B ordering (Elemica, ..)– E-Logistics (ORBIT, VMI, ..)– Internet 1.0 (primarily publishing)
• Observation end ‘06: nice progress, but how do we support new needs?– New DSM, new priorities: commodities -> specialties, market
driven innovation, emerging markets– Opportunity to explore new technologies (CRM, digital
marketing, ..)– Decentralized e-business lacks drive for innovation/sharing
• Decision: re-vitalize central e-business team under CMO– support ‘New’ DSM priorities– drive e-biz innovation and adoption– Define and lead CRM program (pilot, vision/strategy, roadmap)– Validate new opportunities (e.g. digital marketing, social media)
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CASE1: CRM pilot*
• Assess feasibility MS Dynamics CRM for DSM
• Develop CRM Vision / Strategy for DSM
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• Initially little support for shared Vision/Strategy. Parked till after first successes proved good tactic
Objective
• Initial start as IT project• Governance, steering,
project methodology at first unclear
• Pilot delivered successfully after rough start
• Go ahead for CRM Program
*) Pilot scope: account/contact mgmt, visit reporting, lead & sample mgmt, order history
Project Key Lessons
• Ensure effective business engagement to overcome potential resistance (assess all stakeholders)
• Key to agree on R&R and have one (1) project lead
• Iterative approach to define business requirements, especially for sales people
Approach
Results
CASE2: Global CRM Program*
• Roll out CRM to 4 BGs globally & 600 users
• Expand functionality• Define a shared (cross
BG) CRM Vision / Strategy
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• Central funding helps to get internal BG clients on board
• Modular approach and convergence to best practices vs imposing standards works
Objective
• Held kick-off mtg with BG reps, IT, Process Experts, consultant, e-biz team
• Defined objectives, scope, Roadmap, governance
• Executed in steps
*) Program scope: roll out pilot functionality to 5 BGs and 800 users; add more functionality (e.g. complaint handling, quotations, key account planning)
Project Key Lessons
• Start with business client’s problem for full engagement**
• Hybrid solution works for all stakeholders (shared platform with some BG specific tailoring)
• Adapt your program approach to your company culture. Be sure to document it well
Approach
Results • Successful Program (now 1500+ users across M/S/S)
• 2009 CRM award finalist• Significant value
created**) Next page
Shared business objectives driving CRM Program
• Get better customer insight– contacts, visit reports, order status, samples,
complaints, ..– Integrated view on key accounts and transparent view
along value chain
• Improve market understanding (value chain)– Maintain and share competitor and market
information
• Decrease time to market for new innovations– Transparent opportunity pipeline
• Increase sales force effectiveness– Increased visibility of sales force activity
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Unique CRM Approach
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• Strong business engagement• Modular implementation• Viral adoption
• Anchored in DSM strategy• Top down commitment• Integrated Approach
Tangible Results
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Tangible Results
Before• Product push • Inconsistent service• Unaligned actions
“With the use of CRM we managed to increase our margin with 17% in our key accounts”
“Leadtime sampling was instantly reduced by 62% “
Since introduction in early 2008• 1000+ employees are CRM enabled• 5 out of 8 divisions work with CRM
Global Key Account: “DSM’s sales force now seems to know us better than we know ourselves...”
After• Global consistent pricing & service• Customer needs key focus• Segment and individual offering
“Improved Product Launch of Brewers Clarex through better Intelligence”
“10-fold increase in contact database leading to much more complete customer satisfaction surveys“
CASE3: www.dyneemaexperience.com*
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*) real life case
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Dyneema® Pro Sailing Test Team
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The Dyneema® Sailing ExperienceHow are we doing it?
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The results so far…
# of Sailor Subscriptions: 405
# of CrewMembers: 3814
# of Facebook accounts: 220# of Twitter accounts: 72# of YouTube accounts: 68# of Flickr accounts: 20 # of Blog accounts: 43
Evaluating the results so far…• Is this good?
– “ Yes, the Dyneema® sailing marketing team is happy, the partners are impressed with the interim results, the organic search results for Dyneema® are sky rocketing…”
• Would we do something like this again, perhaps for a different Dyneema® segment?– “Most likely, yes”
• Are we on track for good Marketing ROI?– “ We think so, but how would you define ROI?”
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The Lessons• Hard to define success upfront; it’s more establishing a base and
improve• ROI seems hard to define and measure• A good digital marketing campaign requires careful planning and
coordination of many specialists and technologies• And where does Sales get hooked in (closing the loop M/S/S)
What’s next: Supporting the closed loop
Increase sales forceeffectivenessIncrease sales forceeffectiveness
Spend marketing money better (ROI)Spend marketing money better (ROI)
Reduce order handling costReduce order handling cost
Improve“go to market”Improve“go to market”
Increase marketing effectivenessIncrease marketing effectiveness
Increase salespredictabilityIncrease salespredictability
Improve customer satisfactionImprove customer satisfaction
Market Focus and Market Focus and Customer SuccessCustomer SuccessMarket Focus and Market Focus and Customer SuccessCustomer Success
Capitalize on customer relationshipsCapitalize on customer relationships
Improve supply chain efficiencyImprove supply chain efficiency
Lifestages of Innovation (‘hard’ axis)
New ProcessPilot Infrastructure
Repeated ProcessPilot Infrastructure
Best-Practice ProcessProduction Infra
Standard ProcessProduction Infra
Marketing leading IT deparment leads
Discover
Repeat Deploy
Standardize
DiscoverCombination of new process and new technology. Approach: Experiment / Agile to discover Business Value
RepeatA succesful deployment exists, we need to make it replicable, and, define the requirements for production infrastructure
DeployProcess and Requirements are defined, Best Practice setup can be rolled out on top of production infra
StandardizeIncrease service levels, optimize cost, potentially outsource
Business Model: create WOM and e-vangelists
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Small eBusiness successes (Quick Wins) => Transformation and Growth
High Performance
e-business Network
Organization (Marketing, IT,
agents, ..)
- Execute projects for BGs- Provide shared services- Leverage shared platforms
Create value for DMUs and DSM
- New projects- e-vangelists- Testimonials
Gain trust
Some Final Thoughts• Think about your role as b2b marketeer and decide how you add
most value (facilitator, connector, project manager, advisor, general contractor)
• Understand and manage your internal business stakeholders. Start from their perspective: what business problem are you trying to solve. Consider the likely resistance to change you may get. Manage their expectations. Effective e-marketing is a process of do-learn-adjust-do-learn-adjust-
• Effective alignment and collaboration between Marketing and IT is essential. Consider your respective roles and responsibilities over the lifetime of your e-business offerings: from piloting new concepts to cost-effective maintenance of your standard toolset
• Gain trust and momentum by orchestrating for small successes that you share and celebrate. Create word of mount and e-vangelism.
• Keep an open mind: things change @ warp speed. Who knows what comes next and when.Page 22
My doubts about Marketing ROI (or ROMI)
•It is “financial” language, not marketing language– Rate of return;– Where it doesn’t work: if the return cannot be calculated
precisely enough
•It makes us narrow minded: focus mostly on what we can measure in financial terms
•It seems to be looking back, not forward; it makes us think conservatively
•Does not answer the basic question: “if I had one more dollar to spend, where to spend it tomorrow?”
•The ROI buzzword: sometimes we are kidding ourselves– It’s marketing!
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