SMBs: Crossing the Chasm with

Marketing Automation Is it time to move from email marketing to marketing

automation?

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Ian Michiels Gleanster @InsightFanatic

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Agenda for Today…

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• Emerging requirements for competitive parity

• Email vs. Marketing Automation for SMB

• Key Considerations

• Recommendations

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About the Research Findings

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Email Personalization

Gleansight (Q2’11)

Top Performers: Respondents that achieved Top Quartile performance in key KPI’s Everyone Else: Everyone Else

<$1M 6%

$1-10M 30%

$10-100M 28%

$100M-$1B 39%

>$1B 12%

Small Business (1-250

Emp.), 134

Everyone Else, 536

REPORT STATS

Total survey responses: 670 Qualified survey responses: 549

COMPANY SIZE INDUSTRIES

REVENUE AVG CLICK-THROUGH AVG OPEN RATE LEAD-TO-SALES CONVERSION

Marketing Automation Gleansight

(Q4’11)

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• Lack of resources to develop content

• Lack of skilled staff

• Fragmented sales and marketing processes

• Disparate data

• Poor marketing processes

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Challenges for Small Business Marketers

Source: Q2’11 Email Personalization Survey, n= 367 Survey Respondents

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• Are there tradeoff’s between Email and Marketing Automation?

• How do we justify the investment?

• How will it impact the organization / performance?

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Crossing the Chasm with Marketing Automation

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Top Two Most Profitable Channels are Digital

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

Third-Party Articles

Industry News

Direct Mail

Case Studies

Product Information

Telephone Calls

Thought Leadership Studies

White Papers

Blogs

Newsletters

Webinars

Email

9%

3%

36%

16%

6%

61%

9%

27%

34%

30%

54%

72%

6%

14%

27%

33%

34%

40%

45%

54%

57%

64%

65%

72%

Top Performers Everyone Else

Source: Q2’11 Email Personalization Survey, n= 367 Survey Respondents

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Technology Adoption Trends

Source: Q2’11 Email Personalization Survey, n= 367 Survey Respondents & Q4’11 Marketing Automation, n=

85%

43%

59%

23%

76%

3%

96%

16%

0%

20%

40%

60%

80%

100%

Web Analytics MarketingAutomation Tool

Stand-Alone EmailMarketing Tool

Landing Page Tool

Top Performers Small Business (1-250 Emp.)

Currently Using Tool

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Technology Adoption Trends for Top Performers

Source: Q2’11 Email Personalization Survey, n= 367 Survey Respondents

85%

43% 59%

36% 23%

15%

10%

41% 9%

9%

16%

12%

0%

20%

40%

60%

80%

100%

Web Analytics MarketingAutomation Tool

Email MarketingTool

Open Source CMS Landing Page Tool RecommendationServices

Currently Using Planning to Use

Top Performers Use and Planned Use of Technology

Shift from Email Tools to More Comprehensive Marketing Platforms

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Past - Present - Future

ONE TO MANY DIALOGUE

OFFLINE ONLINE

INFORMATION CENTRALIZED 24X7 MOBILE ACCESS TO INFORMATION

MARKETERS HELD INFLUENCE CUSTOMERS HAVE INFLUENCE

A FEW CHANNELS CHANNEL PROLIFERATION

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Today’s Buyer in a Nutshell Eggshell

“I get hundreds of emails in my inbox, why should I care about yours?”

I expect to have a consistent customer experience regardless of channel.

If it’s not relevant, it’s spam.

I do research online before I make purchases. I pride myself in making informed decisions.

I’m vocal about the customer experience. I use Twitter and Facebook, and I have a blog.

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Today’s Buyer in a Nutshell Eggshell

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Marketing Automation • Tools that automate customer engagement

across two or more channels. – Same as: Lead Management, Automated Demand Generation,

Revenue Performance Management Platforms

• Features include: Email, Landing Page Hosting,

Web Analytics, Segmentation, CRM Integration, Lead Scoring, Campaign Execution, Social Media Integration

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Quick Definition

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Top 3 Reasons to Implement Email Marketing

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What’s driving adoption? (according to Small Business)

It’s affordable / fits my budget

Allows me to respond to

market changes quickly

Our customers want / like

email communication

Top 3 Reasons to Implement Marketing Automation

Generate revenue

Generate more leads

Increase marketing efficiency

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Critical to Understand the Buyers Journey

Attention

• Known Problem?

Interest

• Recognized need

Desire

• Seek solution to need

Action

A purchase decision is a series of interactions over one or more channels.

Customer Buying Cycle

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Top Performing organizations are 4 times more likely than Everyone Else to engage in

nurture marketing tactics.

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Lead Nurturing is a set of interactions triggered by:

1. Time = Drip Marketing

2. Behavior / Action = Trigger Marketing

Lead Nurturing helps automate the right message, at the right time, in the right

place.

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Personalization Demands Automation

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Use of Lead Nurturing Tactics

Everyone Else

Top Performer

0%

20%

40%

60%

80%

100%

Drip Campaigns

Trigger Campaigns

Lead Scoring

Everyone Else 89% 19% 5%

Top Performer 78% 43% 23%

Pe

rce

nta

ge

usi

ng

Ta

ctic

Tactics: Using Lead Nurturing

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What’s the best vehicle for delivering more timely and relevant customer

engagement?

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Let’s Get Ready to Ruuuummmmble!

EMAIL MARKETING

MARKETING AUTOMATION

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Email Marketing vs. Marketing Automation

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What’s the difference?

Email Marketing

Marketing Automation

Drip Marketing Email Communications

Event Based Email Communications

CRM Integration

Business Rules to Automate Engagement

Business Rules to Route Leads

Multi-channel Monitoring and Engagement

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Disparate Systems = Disparate Customer Experiences

Email Marketing

Email

Social Media

Mobile

List Mgmt.

Email Marketing

Web Analytics &

Forms

Business Rules

CRM Integration

Marketing Automation

• One system to manage multiple channels • Automation personalized engagement • Transparency into Marketing and Sales performance

Fragmented Customer Data “8 out of 10 Small Business marketers use 3 or more marketing technologies.”

Email Marketing

Marketing Automation

Web Analytics

CRM

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• Gordon

• Prospect for Anger Management Software

• Doesn’t know it exists…

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How do you create relationships with each prospect?

• Tina

• Needs project management software and is comparing features and functions

Manual interactions with

each prospect isn’t realistic.

A single channel (Email) also isn’t

realistic.

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How do we create relationships with each prospect?

Clicks on Link

Resources on Website

Fills out Form

Use technology to automate and track multi-channel engagement

Call with Sales

Email Campaign

Fills out form.

Product Information

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• What can you accomplish with Marketing Automation that you can’t with Email Marketing?

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Marketing Automation Benefits

– Multi-channel nurture marketing campaigns to keep in touch with prospects that aren’t ready to buy.

– Pre-qualify sales opportunities for finite sales resources- focus on short-term opportunities.

– Centralize all prospect activity for improved marketing and forecasting

– CRM integration providing sales visibility into marketing activity and customer behavior.

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So…should you run out and adopt Marketing Automation?

Not necessarily…

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It take the right tools…

… but, it also takes an Artist with the skill to use them appropriately.

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Considerations and Recommendations

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Four Major Considerations for a SMB

Resources Content

Sales and Marketing Alignment

Divestiture Strategy

Considerations

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• Marketing Automation tools will require at the least a part time resource: – Responsibilities:

• Manage business rules on an ongoing basis

• Configure multi-channel campaigns

• Monitor performance and recommend changes

• This person will also be required to interface with sales and will likely need to be somewhat analytical to hold sales and marketing accountable for performance.

• Mix of Technical Resource & Business Resource

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Resources

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Email Personalization Resources

Do you have dedicated resources that are accountable for managing digital engagement?

56%

44%

Top Performers

Yes

No

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• Content is the fuel that powers Marketing Automation

• Don’t get caught up in the features and benefits, these will be useless without quality content:

– You can repurpose content

– You can chop it up for targeted campaigns

• Content needs to map to the customer buying cycle

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Content

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• Plan on automating at least 2 lead nurturing campaigns

– Set and forget – optimize over time

– Top Performing SMB Marketers tend to have fewer lead nurturing campaigns

• Targeted content drives targeted leads

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Content

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Traditional Roles will Change

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How do Top Performers Justify Investments?

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• SMB’s tend to generate demonstrable return on Marketing Automation because they are quick to adopt and quick to adapt

• But, change is hard, so you don’t want to revert to old processes. Force the change.

• Plan to divest of redundant systems- email, web analytics, etc.

– Factor these licensing costs into the justification for the Marketing Automation investment

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Divestiture Strategy

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• Choosing between Email Marketing and Marketing Automation is a risk/reward thought process.

– Time is not on your side

• Top Performers outperform Everyone Else by 2-3x in revenue growth and lead-to-sales conversion.

– Relevance Drives Revenue

• The more you attempt to personalize the greater the demand for automation.

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Final Thoughts

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Additional Insights:

Deep Dive: Measuring the Impact of Lead Nurturing on the Sales Pipeline

How Top Performers Justify Lead Nurturing Initiatives

Wrap-Up and Q& A

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