marketing ROI

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3 Enterprise Lessons Learned from MME16

As part of Oracle’s Modern Marketing Experience (#MME16), over 2200 modern marketers listened to CMOs from Clorox, Sears, and Western Union share their data driven transformation journeys.  Eric Reynolds, CMO of Clorox commented on his digital transformation on how ‘it takes courage to start down a road where you don’t know where it will end.’  In this environment of constant technology innovation and the pressure to perform, many of us could relate to that statement.

Throughout the week, several other enterprise peers presented their digital learnings with an emphasis on the MarTech stack that best enabled their data driven decisions.  While there were several other announcements regarding the B2C Oracle Marketing Cloud, here were three other lessons learned from MME16 that B2B enterprise attendees could use as next steps to execute against.

  1. Speed matters. In his keynote address, Oracle CEO Mark Hurd called out the macro economic trends by framing up the pressure he and his peer CEOs are under to perform, correlating that pressure as to why we as marketers need to respond with tangible results.   With S&P 500 top line revenue growth nearly flat over the last five years and IT global spend down by over 5% in the last year, modern marketers need to move quickly, test, and experiment to achieve measurable results.
  2. Account Based Marketing (ABM) is more than just the new black. In her ABM breakout session, Meagen Eisenberg, CMO of MongoDB leveraged Eloqua and Demandbase among fifteen other marketing technologies for a new account based strategy, targeting and nurturing approach.   Meagen displayed her dashboards and revenue conversion rates on her ABM efforts.  Oracle announced an account based score and account nurturing capability that streamlines a manual Eloqua process; each could be valuable for marketers to consider as they plan their ABM strategy.
  3. Bringing order to data chaos through integration: Allen Wagner, head of Marketing Operations for Deltek, echoed a common theme of other enterprise presenters in finding a ton of value in utilizing the Eloqua API to connect islands of information.  Specifically, having the ability to pull and push data to and from disparate sets of data to Eloqua to personalize, segment, and report effectively was of significant importance in getting a complete view of his customer or prospect interaction.

From an informal attendee poll, several attendees felt the breakout sessions on company use cases of technology led by company spokespeople, not vendor or multiple panel members, provided the most valuable insight, more so than in years past.  Many of us left MME16 with a renewed focus, more urgency, and a clearer picture of where an overall Eloqua and Marketing cloud strategy fits as part of a MarTech cloud strategy stack to drive new digital customer acquisition.

Today’s blog contribution comes from Jon Russo, founder of B2B Fusion, a sales and marketing performance firm focused on connecting marketing investment to new revenue.  Enterprise clients include Anthem, Ricoh, Thomson Reuters, and Level(3) among others.  Jon currently serves on the Board of Directors for MOCCA, the leading enterprise association for operational excellence in Digital Marketing.  Prior to founding B2B Fusion, Jon held global CMO roles for 10 years in private and public technology companies in Silicon Valley, NYC, and Luxembourg.

by Jon Russo Jon Russo No Comments

LinkedIn Jumps into Marketing Automation

LinkedIn as a company is an innovator jumping into a new marketing automation market, leveraging their recent Bizo acquisition.   This is worthy of study.

linkedin

Here are strengths of the LinkedIn offer relative to that of marketing automation:

  • Their ability to target anonymous users with customized ad content relevant to the end user makes this a compelling offer
  • Their ability to reach these users on the LinkedIn network and off of the network makes this very compelling
  • Their autofill form capability which should in theory improve conversion (though few companies use this well today I find on marketing automation which major platforms have a similar capability)
  • The fact that LinkedIn sits on a treasure trove of accurate user data is helpful for any enterprise struggling with data quality

As for the future, here are some questions that come up:

  • Bizo integrates with marketing automation providers today such as Eloqua and Marketo, it will be interesting to see how LinkedIn develops their APIs on Bizo – will LinkedIn continue the open approach with APIs or like the rest of LinkedIn, will the APIs eventually be limited and those integrations get impacted?
  • How global of an offer this is, will it work best in English speaking countries where IP addresses are more known (US, England, Canada, Australia, Singapore, etc.) vs. globally like all marketing automation has the ability to do?
  • How does the data actually integrate with the CRM system when LinkedIn prides itself on owning its data and not selling it to others?

Pricing for enterprise is at least $25k/quarter.

Facebook is also dabbling in the marketing automation segment, although I’d expect that use case to be more B2C and commerce oriented vs. the enterprise approach LinkedIn is using.

We are in for an interesting new era in reaching prospects with relevant content facilitated by marketing automation!

by Jon Russo Jon Russo No Comments

2015 Sales & Marketing Predictions: Data Relevance

Michael Dell, the founder of Dell Computers, recently said, ‘Data is the key competitive differentiator in today’s business environment.’  I believe he is right.  Data is the star of the 2015 sales and marketing show; enterprises will generate new business, optimize their current state of data, and close more deals as a result of the improvement in data quality.

According to Aberdeen, nearly 91% of B2B Enterprises have not properly optimized their lead flow process.  Proper data is a key ingredient in that optimization.  Despite data not being a ‘balance sheet’ item historically was overlooked by non-marketing executives, executives will begin to assign company initiatives to improve data as they realize the direct correlation of the effectiveness of the inquiry to close conversion process to that of the quality of data in their customer relationship management and marketing automation databases.  CMO’s career credibility relies heavily on the data quality when reporting on their impact to the business and they, too, will invest more cycles in improving the current state of their data.

From this point, companies will begin to experiment with data predictability models.   SaaS based enterprises with large volumes of inquiries and with client usage data will continue to be earlier adopters of such predictive data technology.  SaaS companies will sort out the most probable to deal close or most probable to upgrade, with other companies eventually following suit.  The overall predictive market in 2015 for marketers using data will still be very nascent (<$100M for all companies in the sales and marketing use case) but will be the fastest growth as a percentage quarter over quarter of any marketing technology in 2015.

Lastly, the term ‘Big Data’ will become increasingly meaningless in 2015 as the executive question will pivot from ‘what are we doing in Big Data?’ to ‘how can our data be used to increase productivity…increase sales…decrease customer churn…etc.?’

What do you think will happen in 2015?

by Jon Russo Jon Russo 1 Comment

Marketing Credibility: 2015 and beyond

credibility

Here is a valuable blog today from what appears to be a US head of sales in how he views marketing in his business in a tech company contrasting to a non-tech company – it can be inferred from the post that marketing’s compensation is getting tied to revenue performance, that’s where we also see the puck headed for all companies and where true marketing credibility comes into play – it isn’t just in the gymnastics or theory of SLAs, scoring, definitions, or dashboards – it’s in the output of where he (and others) can depend on marketing’s annual growth, lead contribution, and bookings for the business overall and where marketing can belly up to the bar with their own revenue contribution.

The most salient excerpt:

We are fanatical about complete sales and marketing team alignment.  In addition to corporate and product marketing, our marketing department is responsible for directly contributing to 50% of our annual pipeline growth and 50% of our new business bookings every year.  Marketing has SLA’s (service level agreements) with sales for qualified lead definitions and we have specific target goals for those numbers as well as the top stages of our single, shared lead/opportunity funnel or pipeline.  We track, measure and report on our performance at each of those stages in terms of both the actual number and the conversion ratios for lead movement from stage to stage.  We also benchmark our performance for all of that against an industry standard for comparably sized SaaS technology companies.

We see these trends in enterprises as well – though sometimes it is easy to lose sight of the forest through the trees when a company needs to embark on transformational change.  They get bogged down in tactics (predictive analytics, scoring, SLAs) – which are all fundamentals – but lose sight of the overall goal.

Excellent article.  What are you seeing?

by Jon Russo Jon Russo No Comments

3 Enterprise Takeaways from SiriusDecisions Summit

This was posted on Oracle’s Blog this past week.  Reposting if you missed it.

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Today’s post comes courtesy of Jon Russo, founder of B2B Fusion, an agency that focuses exclusively on modernizing old demand generation practices to new to drive more revenue for clients like Thomson Reuters, Level(3) Communications, and Blackboard, among others. Jon serves on the Board of Directors for MOCCA, the leading enterprise association for Marketing Operations professionals. Prior to founding B2B Fusion, Jon held global CMO roles for 10 years in private and public technology companies in Silicon Valley, NYC, and Luxembourg.

This week in Orlando, 2,000 attendees had the opportunity to participate in the SiriusDecisions Summit, the granddaddy conference for the B2B marketing industry. Sirius analysts presented eight new frameworks and enterprise clients shared success stories, each group illustrating paths toward transformational growth for 2014 and beyond.

So what are the new themes from enterprises this year versus the seven prior conference years that I’ve attended?  Here are three new 2014 themes that emerged from the enterprise discussions:

1. Think globally, act locally. Enterprise presenters took a global planning approach to their demand planning versus more North America centric presenters of years past, possibly because companies see more growth in markets outside of North America. Polycom CMO Jim Kruger leveraged regional team presenters by sharing a global success story of installing an inquiry to opportunity process. Joseph Puthussery, Vice President of Demand Generation for Cisco, invested four years in architecting and building a global demand center, began his planning efforts in London, and leveraged successes within each global theater of operation.  Joseph previously ran APAC marketing efforts for Cisco from Singapore and emphasized how important it was to get outside of headquarters to think through architecting a demand center.

2. Data is foundational to true business insights. Pete Koliopoulos, Vice President of Marketing for Arrow Electronics, provided an incredibly thoughtful approach to Arrow’s data governance strategy to help elevate marketing to a true business partner. He presented screenshots of a whitespace report with product penetration by channel account, which enabled sales and marketing to drive campaign strategies to attack the whitespace. Arrow cleansed its internal owned data, appended external DUNs hierarchy data, and applied proper data governance to get to the dashboard destination.  Data strategy is often overlooked in other enterprises as executives overlook the impact data strategy has on sales & marketing productivity and business insights.

3. Marketing & Sales pivot toward a predictable science versus pure art. CMO Jim Bell of Jaspersoft and Vice President of Demand Marketing Meagen Eisenberg of Docusign proved how SaaS marketing has become more predictable than that of years past. SaaS companies have a clear advantage over other older enterprise companies as SaaS typically target new markets, deploy state of the art sales/marketing tools to attack those markets, and pinpoint customer retention trends in cohort clusters.

Jim illustrated how in a smaller organization, he doubled the inquiry to close rate from his baseline by installing rigor around funnel definition and discipline around the process.

Meagen explained how she leveraged intelligence from Docusign’s 90 nurture tracks, 20+ personas, and analytic/data vendors like Lattice Engines and Mintigo. Scott Barmmer, Meagen’s sales counterpart, commented how marketing brings an informed point of view to the conversation, one that has evolved and interpreted versus just presenting data. This interpretation leads to greater trust in the evolving sales and marketing relationship.

It was an exciting 2014 conference filled with another year of terrific networking and great enterprise audience growth from years past!  What can we expect in 2015 and beyond?  None of the presenters focused much energy on the success or impact of mobile initiatives; perhaps mobility will be an emerging theme in 2015.

by Jon Russo Jon Russo No Comments

The Many Faces of Marketing Automation

(Reposted from DemandGenReports Blog)

 

When I recently attended Oracle’s Marketing Cloud kickoff event, where Oracle COO Mark Hurd gave his presentation to 100 of us, we had a chance to ask him questions at the conclusion. My question for him was, “how are you using Eloqua internally, what is your use case and roadmap vision?”

There were multiple use cases shared for marketing automation, each requiring different elements from their CRM or end users depending on the type of company. Let’s take a look at three of those models.

Model 1: Share of Wallet – Hurd said Oracle already has 400,000 global accounts, and doubted that he could expand that to 800,000. However, given that Oracle has been acquiring companies rapidly, Hurd said his objective now is to infuse other Oracle products into the company’s existing 400,000 client base via his newly acquired company, Eloqua.

For large, global enterprise companies, marketing comes down to the share-of-wallet, and gaining more spend from existing clients with products other than the core product. It’s about nurturing the relationships you already have, finding out what products they’re missing within the vendor portfolio, and working to expand the size of the accounts. In each of these scenarios, having the proper product information structured properly in the CRM system is critical and an often overlooked area. Duplicate accounts or contacts, sometimes caused by ERP systems, crush a marketer’s ability to properly upsell and cross sell.

Model 2: Market Share – Smaller organizations, by contrast, are typically concerned with gaining rapid market share. Their marketing efforts are more top-of-the-funnel oriented, with efforts aimed at expanding their client base. For SaaS companies in particular, they may extend offers, trials, and freemiums via marketing automation, dripping those freemiums into qualified opportunities at the right time. It is critical to set up the campaign integration with CRM properly in this scenario as well as a consistent campaign naming hierarchy such that campaign performance can be later analyzed to see what campaigns are driving conversions.

Model 3: Customer retention – Customer retention is a function found in both large organizations and in smaller SaaS companies. It’s oftentimes overlooked by marketers who prioritize how much revenue is being sourced or influenced.  CRM information on current contracts and products are critical, and are the ideal fields that indicate product usage so that nurturing can be based off renewal dates or usage (or lack thereof). Of the enterprises I’ve inspected, this area has the most upside potential for marketers to impact, yet it is very challenging for marketers to measure overall effectiveness.

There are a number of different ways marketing automation can be shaped to solve business challenges in the enterprise. What are you seeing?

by Jon Russo Jon Russo No Comments

2013: Great Expectations For Marketing ROI

Here is my brief view of what to expect in 2013.

During 2013, organizations will demand significantly more revenue value out of their existing sales and marketing ecosystem investments including CRM, Marketing Automation, and list acquisition purchases.  Non-marketing executives at these firms will demand greater accountability for return on these investments.

 

As a result, marketers will need the ability to execute campaigns with surgical precision and to tie their marketing investments explicitly to ROI. This includes:

 

Generating more qualified leads. Successful marketers can and should claim the lion’s share of leads that close to revenue within their organizations. Focus here on the details: standardizing data fields within CRM and marketing automation systems, for example, is critical to proper segmentation and targeting. Data-driven segmentation is especially critical to executing targeted campaigns and increasing ROI.

 

Optimizing business processes. Many companies use less than 10% of their marketing automation capabilities because they haven’t deployed these tools effectively. That’s why it’s so important to map every aspect of your customer acquisition and onboarding process – from inquiry to close and beyond – to and through your CRM and marketing automation tools.

 

Connecting marketing activity to new revenue. An entire industry has evolved around the ability to measure marketing-sourced and marketing-influenced revenue – and to extend these analytics far beyond what’s available from an out-of-the-box CRM or marketing automation system. It’s hard to overstate the importance of these tools; their power lies in their ability to give executives “one view of the truth” for reporting sales and marketing ROI.

 

Organizations that put together these pieces and execute a revenue-driven marketing strategy will have a far more successful 2013 than those that don’t.

 

What do you think will happen?

by Jon Russo Jon Russo No Comments

How To Achieve B-to-B Marketing ROI Nirvana

There is a need for B2B Marketing ROI yet we’re still not there.  According to Adobe’s 2012 CMO report, fewer than 20% of executive B2B marketers have the ability to measure ROI.  SiriusDecisions reported in  their 2012 CMO survey that CMOs number one concern was demonstrating ROI.  Unlike the B2C marketer who has one consumer that could be making a single web commerce transaction which is tracked from start to finish, B2B marketers are faced with a buying committee  of six to eight purchasers and a buying path that has become more digital over the years yet does not mirror the accuracy of digital tracking that a B2C marketer has.

There are 3 key ingredients that repeat themselves in companies that have been able to successfully measure B2B Marketing ROI

  • An ecosystem of partners –  Concur Software, has consistently grown revenue over 20% year over year and won a number of recent industry awards based on their marketing ROI performance.  Their executive team relied heavily on an ecosystem of the right partners to implement their best in class CRM, Marketing automation, and data gathering/measuring techniques.  One integration partner of Concur’s is DemandGen, who implemented the lead scoring processes so the Concur sales team could work more effectively on the right prospects instead of all prospects, thus improving the chances for higher return (conversion) on marketing campaigns.
  • Data quality – I use the ‘sight on the rifle’ analogy with data.  If your rifle sight is off by the slightest, you’ll miss your target by a mile when you squeeze the trigger.  This area is often the most misunderstood by executives yet directly impacts productivity.  Without complete data beyond account level information (contact names, phone numbers, email addresses) and a process to minimize data duplications, sales teams invest an inordinate amount of research time to find the right contact information and marketing teams waste energy with campaigns that never reach its intended target.  ROI is strongly correlated to proper data hygiene and strategies
  •  Buyer cycle knowledge – a surprising number of companies underestimate the need to build out content around their buying cycle.  Why is this?  With a buying committee, marketing teams do not fully understanding the ‘moments of truth’ of how their buyers actually buy and when buyers leverage digital technology to buy.  A great example of enabling the right content is how Rackspace leverages the LinkedIn product page with over 500 peer/client recommendations to help with their funnel conversion process;  no different from an eBay or Amazon purchase with recommendations from ‘peers’, Rackspace has enabled a savvy capability that shows which peers are also buying their product.

 

With these three ingredients in place, marketing ROI is achievable.  Measuring and tracking performance with systems can be tricky as it will take people energy, processes, and tools to get the right data reported on but without taking these steps in advance of measuring, you won’t know what areas to improve in.  Veracity of measuring may come into question when data is formatted outside of CRM systems, so be prepared to identify all assumptions in data gathering and use those assumptions consistently.

B2B Marketers continue to improve their journey of ROI measuring as marketing becomes more accountable at the executive level for a quantifiable impact on revenues.

by Jon Russo Jon Russo No Comments

MOCCA DC – Trends in Marketing Operations

Marketing Operations as a B2B discipline is rapidly growing.  As one data point that supports its growth, we had our largest attendance to date for today’s MOCCA meeting in Washington DC with Andrew Gaffney and Amanda Batista of Demand Gen Report covering recent readership survey results on trends in marketing measurement, changes in b2b buyers, and shifts in content preferences.  Rather than rehash the survey results which are available on DemandGen’s website, here are 4 key takeaways from our hour long question and answer session that followed the presentation:

Content:  this area was the theme and background of DemandGen, so it was not a surprise to hear this topic come up.  We spent considerable time discussing the pros and cons of webinars, both live and recorded, and came to the conclusion they are a worthy, cost effective tactic to consider as part of the overall marketing mix.  With today’s integration in marketing automation platforms, there are more benefits reporting wise to use webinars versus in years past.  Video is also a tactic that can be repurposed toward mobile devices and non-mobile devices.  There were a few audience members who suggested that having  4 videos of 5 minutes each were more powerful than one 20 minute video and easier for a buyer to digest.

Data Warehouse:  this is an emerging area for enterprise companies that are trying to do data manipulation and more sophisticated reporting.  B2B companies are realizing a shortcoming of their CRM systems and marketing automation systems in terms of lack of data reporting flexibility.  Thus, they are looking to front end load their systems with a data warehouse that interoperates with disparate data sets and can do sophisticated reporting through easier manipulation of data.

Mobile:  this area remains an enigma for b2b marketers (my data points extend beyond this session with the CMOs of both Cisco and Xerox confirming this same data).  Contrary to what is happening in the market, marketers are just not yet ready to think about rendering b2b campaigns in mobile, either through their marketing automation platform or through companies like Litmus Technologies.  One company mentioned it was beginning to source 15% of its lead flow (not web traffic) from mobile devices yet the majority were not optimizing campaigns or content specifically toward mobile devices.  There are likely too many other competing priorities for marketers to be focused on, thus crowding out mobile for the moment.  Everyone knows they should be doing it (like working out at a gym), but few actually do it.

Reporting:  the majority of companies were at the early stages of connecting marketing investment to new revenue struggling with both systems as well as cultural – cultural meaning does marketing ‘source’ revenue or do they ‘influence’ revenue.  The theory models would suggest marketing does both, but not every culture absorbs that methodology.

We didn’t have time to cover it, but data and its accuracy seems to be the next hot topic for MOCCA to talk about.  What areas in marketing operations are you seeing that is hot?

 

 

by Jon Russo Jon Russo 2 Comments

Next Gen Marketing Automation Platforms – Revenue Impacting

It’s time for the next generation of marketing automation – a revenue generating marketing automation system that focuses across new areas of predictability, effectiveness, and a wholistic view of a prospect/customer situation with the right analytics.  As a former high tech CMO that understands SaaS companies and platforms, I’ve implemented multiple instances of marketing automation platforms and more recently started a business digging deep at the marketing automation/CRM ecosystem to get more revenue, quicker.

 

Here are 4 areas that I think the next generation of marketing automation will solve for:

Predictive:  while the lead scoring models of yester-year are a good start to sorting out the needles from the hay, people are starting to realize that companies cannot ‘set and forget’ to hope the scoring methodology works long term.  Buying behaviors change and a buying committee in B2B is complex.  A predictive element with newer analytic capabilities is emerging in the B2B world, leveraging similar technologies that B2C marketers use (i.e. Amazon and best picks).  A company can then determine what products or solutions are most likely to be purchased based on similar demographic or segmentation sets.

Raise Sales&Marketing Effectiveness:  as I’ve previously posted on my blog, the data element is the single most important area for companies to understand and harvest, yet at the executive level it is often the least understood.  Bad data is like a rifle with its sight off;  if your sight is off by a ¼ inch, you’ll miss your end target by a mile.  If the data is bad, you’ll never reach your target or lose valuable time trying to reach the target.  Newer marketing automation systems that leverage the right SaaS integration will be more sophisticated to go beyond the deduplication at the account, contact, and lead level (like they do today or with other 3rd party tools like CRM Fusion, Dupe Blocker, etc.) by providing real time feedback on phone numbers and contact information to increase the effectiveness of the inside sales organization.  Outsourced data cleansing strategies will become less prevalent as time goes on.

Assist with 360 view of a prospect:  with SaaS environments leveraging CRM (Salesforce.com) and new integration technologies (Dell Boomi, etc), there is a newer way to get intimate understanding of your customer prior to sales reaching out real time.  Billing information, trouble tickets, and other service questions can theoretically be displayed to a sales person so they are not ‘surprised’ calling into a new or existing account trying to up-sell.  With a 360 view, coupled with the predictive element, there will be new ways to get more revenue for companies that are savvy. Customer marketing (up-sell, cross-sell) is the hardest type of marketing to do and measure, this 360 view will help complete that circle. The single most important aspect is to make it easy for sales rep to get access to it from their current system.

Analytics that are meaningful:  the first generation SaaS marketing automation vendors have made an attempt at analytics, either licensing 3rd party software (Micromuse, Good) or attempting to build on their own.  The next generation analytic dashboards will be visible by anyone that has CRM access, not just marketing users with marketing data.  These analytics will show the areas above – marketing influenced revenue, 360 viewpoint, and data quality.  While some of this can be reported in systems today, it’s challenging at best.

What do you think, what are you seeing for future marketing automation environments to get more revenue, quicker?  Where are the pain points and shortcomings in your environment?