10 Steps to Prepare for Marketing Automation September 13, 2012 Larissa DeCarlo Susan Munné Copyright 2012. All rights reserved. Introduction §  We use a 10-step methodology to help companies select and prepare for the use of marketing automation software §  We will highlight the elements of this methodology that can be applied when you want to optimize your process, align your organization, or make other major changes – or improvements – to the way you work Copyright 2012. All rights reserved. 2 A Little Peer Pressure 1-800-flowers.com, 3M, Abercrombie & Fitch, ABN-AMRO, ABSA, Accor Hotels, Administaff, Aeroplan, Aetna, AIG VALIC, AIS, Alapage, Alcatel-Lucent, Alcoa, Aldo, Allstate, Altria Group, AmBank, American Chemical Society, American Express, American Intl. Group, AmerisourceBergen, Amgen, Apple, Aramark, Archer Daniels Midland, Armstrong, Arval, Astra Zeneca, AT&T, Autodesk, Avans Hogeschool, AVEBE, AXA Bank, BAI, Bank of America Corp., Bass Pro Shops, BC Card, BCC, Berkshire Hathaway, Best Buy, Bicycling, BJs, Blair.com, Bloomberg.com, Bloomingdale's, Blue Cross/Blue Shield, BMO Bank of Montreal, Boeing, Boursorama, Bouwfonds, Boxford Nederland, Bristol-Myers Squibb Company, Brookstone, BT, CA, Cabela's, Cadillac Fairview, Calendars.com, Calyon, Campmor, Canada Trust, Canadian Mental Health Association, Candlewood Suites, Canon, CapitalOne, Cardinal Health, Caremark Rx, Carnival Cruise Lines, Carrefour, Caterpillar, Cathay Pacific, CDW, Centex, Centrum voor Werk en Inkomen (CWI), Chevron, Choice Hotels International, Cisco Systems, Citigroup, Club Internet/T-Online, Coca-Cola, Coke.net, Coldwater Creek, Colgate-Palmolive Company, collectiblestoday.com, Collette Vacations, Comcast, ConocoPhillips, Continental Airlines, Corio, Corporate Express, Costco Wholesale, Countrywide Financial, cpa2biz, Crate&Barrel, Credit Union of Texas, Crowne Plaza, Cummins Inc., Cuna Mutual Group, Cushman & Wakefield LePage, CVS/Caremark, D&B, DaimlerChrysler Overseas Services, Dassault Systems, DBSBank, Debitel, debitel Netherlands, Deere, Dell, Delphi, Delta Lloyd, Desso, Deutsche Telekom, DHL International, Diageo, Diapers.com, diettv.com, Disneyland Resort, dm, Dollar Bank, Dow Chemical, D-Reizen, Dreyer's, DuPont, E*TRADE, Easter Seal Society, ECI, Economist.com, Eddie Bauer, eImprovement.com, Elderhostel, EMI Music, Enterprise rent-a-car, Essent Energie, Expedia/Voyages-SNCF.com, Exxon Mobil, Fairmont Hotels & Resorts, Federated Dept. Stores, FedEx, Finaref, First Franklin, Fnac (PPR), FootSmart, Ford Motor, Fortis Bank, Freddie Mac, GE Real Estate, General Dynamics, General Electric, General Motors, Genzyme, Georgia-Pacific, Getronics, PinkRoccade, Goldman Sachs Group, GoodLife Fitness Clubs, Google, Grolsch, Hager, Halliburton, hanna Andersson, HanoverDirect, Inc., Hanzehogeschool Groningen, Hartford Financial Services, Harvard Business Online, Havas Media, HBOS, HCA, Heijmans, Hess, Hewlett-Packard, Hogeschool INHOLLAND, Hogeschool Utrecht, Hogeschool van Arnhem en Nijmegen, Holiday Inn, Holland Casino, Home Depot, Honeywell Intl., Hoorray, Hoovers, Hotel Indigo, Hotwire.com, Houra/Cora, HSN.com, Humana, Ingram Micro, Intel, Intercontinental Hotels Group, International Paper, International Speedway, IBM, Intrawest, Intuit, Iron Mountain, J.P. Morgan Chase & Co., JCPenney, Johnson & Johnson, Johnson Controls, JonDon, Juvenile Diabetes Research Foundation, Karft, Kennisnet, KodakEasyShareGallery, Kohl's, KPN, Kroger, L.L. Bean, L’Oreal, La Perla, La Poste, Lands' End, Lastar, Laurentian Bank, Lehman Brothers Holdings, Lenovo, Liberty Mutual Ins. Group, Liberty Travel, Lindt, L'Occitane, Lockheed Martin, LogicaCMG, Los Angeles Times, Lowe's, Macy's, Marathon Oil, Mariani, MarketDay, Marks & Spencer Money, Marriott, Massachusetts Mutual Life Insurance, McCann-Erickson WorldGroup, McKesson, Medco Health Solutions, Men'sHealth, Menzis, Mercedes-Benz, Merck, Merrill Lynch, method, MetLife, MEXX, Microsoft, monster, Moody's – KMV, Morgan Stanley, Mosaid, Motorola, nab, National Retail Federation, NebraskaFurniture Mart, Nespresso, Nestle, Neteller, New Balance, New York Life Insurance, News Corp., Nike, Nordstrom, Northrop Grumman, Nouvelles Frontieres, NUON, NY & Co., OfficeDepot, OfficeMax, OHRA, OKI, Oral B, Orange, Ordina, Orkin, Orlando Sentinel, Orvis, OTTO Nederland, Packard Bell, Panasonic, Peets Coffee & Tea, PepsiCo, Petco.com, Petit Bateau, Peugeot, Pfizer, Picard, Plantronics, Porsche, Portman Travel, Positron, PotteryBarn, Prijsexplosie.nl, Procter & Gamble, Profile Tyrecenter, Prudential Financial, Publicis, QuickArrow, Quicken Loans, Rabobank, RadioShack, Randstad International , Raytheon, RBC Financial Group, Reader's Digest, REI, Renault, Rewards Network, Rijksoverheid (European Tender), Rodale, Rogers, RTL, Saab, Safeway, SAP, SAS Scandinavian Airlines, Scotiabank , Scottish Enterprise, Sears Holdings, Sephora, Seton Hall University, ShareBuilder, Shop.nl, shop.org, Sigma-Alorich, Silicon Laboratories, Skynet Belgacom, sleepnumber, Smart/Daimler Chrysler, SNS Bank, Sony PlayStations, Southwest, Spoke, Springer, Sprint Nextel, Stables, Stade de France, Consortium, Staedtler, Starbucks (EMEA), Starwood, State Farm Insurance Cos, Staybridge Suites, Stork, Streamline Corp, Sun Trust, Sunoco, Sybase, syngenta, Sysco, Target, TD Ameritrade, Tech Data, Televisier, TeliaSonera, Tempo Team, Ten Star, The Bradford Exchange, The Hager Group, The Institute of Directors, The Mortgage Centre, The Star Tribune Company, Thermo, Thomson West, Thus, TIAA-CREF, Time Warner, Timing, TNT, Toshiba, Travelers Cos., Tribune, TRUenergy, TUI Travel, TVgids.nl, Tyson Foods, UAL, Union Bank of California, United Parcel Service, United Technologies, UnitedHealth Group, Unive, upromise, USG People, Valero Energy, Vedior, Vegas.com, Verizon Communications, Versatel, Victoria's Secret, VirginMobile, Visa, Vodafone, VolkerWessel, Volvo, Voxify, VTR GlobalCom, VWR, Wachovia Corp., Walgreen, Wal-Mart Stores, Walt Disney, Wanadoo Data/Yellow Pages, Washington Mutual, WBR: Worldwide Business Research, WebMD, Weekend Company, Wellpoint, Wells Fargo, Williams-Sonoma, Wired2fish, Wolters Kluwen, YACHT, Zavvi/Virgin Megastores, Zeker Weten, Zurich Financial Services Group Copyright 2012. All rights reserved. 3 A Legitimate Market Marketing automation software, a $2.8 billion market in 2011, is expected to have year-over-year double-digit growth for the next three years Marketing Automation Adoption and Usage to Increase Throughout 2012 Marketing Automation Adoption Rises Revenues for business-to-business (B2B) marketing automation systems will grow 60% in 2012 Raab Associates Inc. The past several years have seen rapid adoption of increasingly sophisticated b-to-b marketing approaches, including lead scoring, nurturing, portfolio marketing and better analytics to drive continuous improvement. Copyright 2012. All rights reserved. 4 Who We Are Copyright 2012. All rights reserved. Marketing Operations Works §  A strategic consultancy that improves marketing performance by optimizing processes, systems, and data §  Using proven methodologies, tools, and templates, coupled with best practices, real-world experience, and a deep understanding of complex organizations and infrastructures, we help clients with: –  Strategic assessment and stakeholder alignment –  Process modeling and requirements definition –  Marketing automation vendor selection –  Change management –  Metrics review and dashboard design Copyright 2012. All rights reserved. 6 Consulting Engagements Founded in 2009, Marketing Operations Works supports world-class companies: Copyright 2012. All rights reserved. 7 The 10 Steps to Prepare for Marketing Automation 1 2 3 4 5 6 7 8 9 Copyright 2012. All rights reserved. 10 Preparing for Marketing Automation: 10 Steps 1.  Identify the Need for Marketing Automation/Improvement 2.  Launch a Project 3.  Conduct Discovery 4.  Validate and Prioritize Findings with Stakeholders 5.  Document Processes and Requirements 6.  Evaluate Technology 7.  Develop a Business Case, Secure Funding 8.  Select a Vendor, Negotiate Contract 9.  Prepare for Change 10.  Deploy System in Phases 1 2 3 4 5 6 7 8 9 10 9 Copyright 2012. All rights reserved. 2. Launch a Project 1 2 3 4 5 6 7 8 9 Copyright 2012. All rights reserved. 10 Build a Team §  Because marketing automation will be used by a team, and because it requires a change to the way people work, it’s worth the effort to assemble a set of teams with clear roles and responsibilities –  –  –  –  –  –  1 2 Exec Sponsor – Buck stops here Program Sponsor – Business owner Program/Project Manager – Day to day management Core Team – Business and IT Extended Team – Cross-functional subject matter experts (SMEs) Stakeholders – People who will be affected and need to know 3 4 5 6 7 8 9 10 11 Copyright 2012. All rights reserved. Identify Stakeholders §  Adoption is critical §  The best way to ensure adoption is to involve users early in the decision-making process –  You are asking people to change the way they do their job –  Don’t underestimate the significance of this change §  Key stakeholders include: –  –  –  –  The users People who will be affected downstream Their management Don’t forget the regions §  There are industry best practices for identifying stakeholders: RACI, RASIC, DACI models 1 2 3 4 5 6 7 8 9 10 12 Copyright 2012. All rights reserved. 3. Conduct Discovery 1 2 3 4 5 6 7 8 9 Copyright 2012. All rights reserved. 10 Stakeholder Interviews §  Ask each stakeholder (users, affected, management): –  –  –  –  What’s working well today? What’s not working so well? What do you think should be changed? How will you know success when you see it? §  Consolidate feedback and present it back to stakeholders for validation and prioritization –  –  –  –  1 2 What’s most painful today? What will generate the greatest return? What’s easiest to do now? What can we put off until later? 3 4 5 6 7 8 9 10 14 Copyright 2012. All rights reserved. Discovery Stakeholder interviews and in-depth analysis 1 2 3 4 5 6 7 8 9 10 15 Copyright 2012. All rights reserved. 4. Validate and Prioritize Findings with Stakeholders 1 2 3 4 5 6 7 8 9 Copyright 2012. All rights reserved. 10 Agree on Business Drivers, Prioritize §  §  §  §  Summarize and analyze discovery results Present results to stakeholders (ideally at an in-person workshop) Have stakeholders validate and prioritize business drivers The stakeholder validation and prioritization can be easily turned into a roadmap –  Phase the deployment by breaking it into manageable increments –  Consider urgency, ease (quick wins), and complexities or dependencies when sequencing the phases 1 2 3 4 5 6 7 8 9 10 17 Copyright 2012. All rights reserved. 5. Document Requirements 1 2 3 4 5 6 7 8 9 Copyright 2012. All rights reserved. 10 The Hardest and Most Productive Step §  PROCESS! –  Define “as-is” processes –  Define “to-be” processes –  Translate into business requirements 1 2 3 4 5 6 7 8 9 10 19 Copyright 2012. All rights reserved. Define Current State §  Use process modeling to document the “as-is” process 1 2 3 4 5 6 7 8 9 10 20 Copyright 2012. All rights reserved. Define To-Be State Visualization and analysis of detail process flows and operating cycles 1 2 3 4 5 6 7 8 9 10 21 Copyright 2012. All rights reserved. Translate into Business Requirements §  Capture and document requirements at each step of the process –  What the process is doing and the business capability you want to enable – identify areas of opportunity and gaps –  Identify the data needs and technology/integration pieces –  Document priority –  Document dependencies/constraints that could impact timing 1 2 3 4 5 6 7 8 9 10 22 Copyright 2012. All rights reserved. 7. Develop Business Case, Secure Funding 1 2 3 4 5 6 7 8 9 Copyright 2012. All rights reserved. 10 Develop a Business Case §  Let’s face it – it’s hard to quantify the return on marketing automation §  The key is to consider all costs, savings, and incremental revenue opportunities up front – and track actuals against these projections §  Look at total cost of ownership across 3 years (typical life of a marketing automation contract) §  1 Note: the cost of marketing automation tools range from $10,000/year to $1,000,000+/year 2 3 4 5 6 7 8 9 10 24 Copyright 2012. All rights reserved. Sample Business Case Costs Year 1 Year 2 Year 3 Total Year 1 Year 2 Year 3 Total Year 1 Year 2 Year 3 Total Software License/Hardware Software Implementation Training Software Maintenance/ Support Software Management (HC or agency) Savings Existing Software-Related Expenses Marketing Efficiency: Automated Lead and Data Management; Marketing Mix Optimization Sales Efficiency: Less Time Spent on Low Quality Leads Incremental Revenue New Deals Driven by Improved Segmentation, Targeting, Nurturing and Personalization New Deals Driven by Additional Insight Available to Sales 1 2 3 4 5 6 7 8 9 10 25 Copyright 2012. All rights reserved. 9. Prepare for Change 1 2 3 4 5 6 7 8 9 Copyright 2012. All rights reserved. 10 Change Management §  §  §  §  §  §  §  1 Develop a governance model Draft a change management plan Develop success criteria/metrics Develop a glossary of common language Build a communications plan Build a training plan Define long-term support of end-users 2 3 4 5 6 7 8 9 10 27 Copyright 2012. All rights reserved. Measure Progress §  Define metrics that enable judgment of the success or failure of project, and ongoing return on project investment §  Establish a benchmark against which future progress can be measured §  Activity-based metrics are important initially, but should ultimately yield to measurable results –  E.g. At first: Increased system usage from X to Y to Z Then: 5% improvement on lead conversion rate §  Measure at the beginning, middle, and end of the project; then incorporate into routine reporting 1 2 3 4 5 6 7 8 9 10 28 Copyright 2012. All rights reserved. Evaluation Define project success metrics, measure results, and incorporate into reporting cadence. 1 2 3 4 5 6 7 8 9 10 29 Copyright 2012. All rights reserved. Summary Copyright 2012. All rights reserved. 30 Key Take-Aways §  §  §  §  §  §  1 Start with the end in mind (change management and funding) Involve stakeholders throughout Take an unemotional, deep look at current and to-be states Differentiate between process and system requirements Validate, prioritize, and phase your approach Measure and report progress throughout 2 3 4 5 6 7 8 9 10 31 Copyright 2012. All rights reserved.