smbs: crossing the chasm with marketing automation
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SMBs: Crossing the Chasm with Marketing Automation
Is it time to move from email marketing to marketing automation?
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Ian MichielsGleanster@InsightFanatic
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Agenda for Today…
• Emerging requirements for competitive parity
• Email vs. Marketing Automation for SMB
• Key Considerations
• Recommendations
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About the Research Findings
Email Personalization
Gleansight(Q2’11)
Top Performers: Respondents that achieved Top Quartile performance in key KPI’s
Everyone Else: Everyone Else
<$1M6%
$1-10M30%
$10-100M28%
$100M-$1B39%
>$1B12% Small Business
(1-250 Emp.), 134
Everyone Else; 536
REPORT STATS
Total survey responses: 670Qualified survey responses: 549
COMPANY SIZE INDUSTRIES
REVENUEAVG CLICK-THROUGHAVG OPEN RATELEAD-TO-SALES CONVERSION
MarketingAutomationGleansight
(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
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?
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
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=
0%
20%
40%
60%
80%
100%85%
43%
59%
23%
76%
3%
96%
16%
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
0%
20%
40%
60%
80%
100%
85%
43%59%
36%23% 15%
10%
41% 9%
9%16%
12%
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
The Customer Experience is
Fragmented for Most SMBs
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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
Quick Definition
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Top 3 Reasons to Implement Email Marketing
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
needAction
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 Marketing2. Behavior / Action = Trigger Marketing
Lead Nurturing helps automate the right message, at the right time, in the right
place.
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%
Per
cen
tage
usi
ng T
acti
c
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
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…
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?
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
Resources
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Email Personalization Resources
Do you have dedicated resources that are accountable for managing digital engagement?
56%
44%
Top Performers
YesNo
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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
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
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
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.
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
Q& A
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