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Marketing Automation - Beyond Customer Acquisition

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Marketing Automation – Beyond Customer Acquisition
Today’s Presenters Laura Ramos Atri Chatterjee Vice President & Principal Analyst Forrester Research, Inc. CMO Act-On Software
Chat
Twitter #ActOnSW
Topics for Today • Importance of customer marketing • Automating customer marketing • Content’s role in customer marketing • Measuring – and getting – results • Budgeting and getting started
WHY HAS THE BUYER’S JOURNEY CHANGED?
The Digital Age of the Customer is Here Source: October 10, 2013 “Competitive Strategy in the Age of the Customer” report. © 2013 Forrester Research, Inc. Reproduction Prohibited 7
Information power favors buyers Attention Abundance Information Overload Information Scarcity Pre-Web Attention Scarcity Web 1.0 Social Web Where buyers get information • Your sales people • Google • Your web site • Peers/colleagues • Experts • Your customers What buyers know before seeking sellers • Brand perception • Brand perception • Features/benefits • Alternatives • Brand perception • Features/benefits • Alternatives • Comparisons • Reputations • Customer opinions •… © 2013 Forrester Research, Inc. Reproduction Prohibited 8
WHAT IS CUSTOMER MARKETING TODAY?
Customer marketing builds relationships across the life-cycle The customer defines the actions and messages that marketing and sales should take © 2013 Forrester Research, Inc. Reproduction Prohibited 10
WHAT ARE THE BUSINESS DRIVERS?
Why Does Customer Marketing Matter? Customer Retention vs. Customer Acquisition Number of times more costly it is to acquire a new customer Amount of increased profits that can come from boosting than retain an existing one 1 customer retention rates by as little as 5% Loyal Customers vs. Average Customer Spent with a supplier than the average customer 2 Likely to try a new product 2 1) Source: Frederick Reichheld, Bain & Company, published in the Harvard Business Review 2) CEB Marketing Leadership Council Survey
DO MARKETERS INVEST IN CUSTOMER MARKETING?
Marketing’s Evolution © 2013 Forrester Research, Inc. Reproduction Prohibited
Retention Marketing Looks Like Acquisition What are the 4 most effective B2B demand management tactics for retention? Email marketing Tradeshows Company sponsored in-person events Webinars Social marketing Content marketing Public relations Digital advertising Industry trade/user groups Virtual events Search engine optimization Print advertising All respondents (N = 328) Tele-prospecting Analyst relations Pay per click advertising Radio, TV advertising 0% 5% 10% 15% 20% 25% 30% 35% Base: Marketing decision-makers at B2B companies in the US and Western Europe with 100 or more employees; Source: Q4 2012 US and Europe B2B Technology Marketing Tactics And Benchmarks Online Survey © 2012 Forrester Research, Inc. Reproduction Prohibited
Customer Retention is Low Priority for Marketing Automation Investment Source: December 2013, “Balance People And Process To Fund L2RM” Forrester report. © 2013 Forrester Research, Inc. Reproduction Prohibited
CAN MARKETING AUTOMATION HELP BUILD CUSTOMER RELATIONSHIPS?
Apply Science to Customer Marketing Advocates Customers Qualified Leads Known Prospects Anonymous Visitors Inbound Marketing Outbound Marketing Sales Automation Lead Nurturing Customer Success Customer Advocacy Customer Nurturing
Automation Enhances Communication Across the Lifecycle Investigate approaches Define requirements Commit to change Understand problem/opportunity Identify possible solutions Build business case Advocate for an approach Expand use of solution Compare alternatives Measure and share results Adopt and use solution © 2012 Forrester Research, Inc. Reproduction Prohibited Acquire solution components 19
WHAT TYPES OF CAMPAIGNS APPLY?
Relationships Start With Onboarding Harland Clarke found banks that “onboard” have attrition rates 4-5% below peers. © 2013 Forrester Research, Inc. Reproduction Prohibited 21
Build Relationships Thru Enrichment Customer enrichment campaigns delivered via automated programs: › Education › Domain know-how › Ongoing Product training © 2013 Forrester Research, Inc. Reproduction Prohibited 22
Build Relationships Using Community LexisNexis moderates community to design new features © 2013 Forrester Research, Inc. Reproduction Prohibited 23
HOW CAN I NURTURE CUSTOMER RELATIONSHIPS THROUGH CONTENT MARKETING?
Content shows how you solve problems © 2013 Forrester Research, Inc. Reproduction Prohibited 25
Reinforce Relationships Through Education Develop a curriculum and content plan that matches a customer’s journey. Be both relevant and timely. Become a trusted advisor by educating throughout the dialogue. Reinforce content across multiple channels.
Use Nurturing Programs to Improve Education
WHAT SHOULD I MEASURE?
Track & Report the Metrics that Matter • Satisfaction with your products/services – Regular surveys at intermediate milestones – Usage and change in usage • Advocacy – # and growth of advocates – Level of engagement – # and quality of referrals • Expansion – Increase in revenue from customer – New customer referrals
Satisfaction Results in More Business Source: Forbes.com
WHAT BENEFITS CAN I EXPECT?
Key Financial Benefits of Customer Marketing • Lower Cost of Sales – Cost effective to market/sell to known entities • Higher Profitability Per Customer – Shorter time to upsell – Easier to communicate cross-sell advantages • Higher Marketing ROI
Qualitative Benefits Abound As Well © 2013 Forrester Research, Inc. Reproduction Prohibited 33
HOW MUCH SHOULD I BUDGET?
B2B marketers short change retention 55% “What % of budget dedicated to customer enrichment or retention vs. new acquisition?” “Do you dedicate marketing program budget to customer retention or enrichment?” 33% Base: 57 B2B marketing leaders Source: Forrester/Business Marketing Association November 2013 Marketing Budgets Online Survey © 2013 Forrester Research, Inc. Reproduction Prohibited 35
Budget Rules of Thumb › Growth orientation: 30% of program budget on customer onboarding and cross-sell, upsell › Mature orientation: up to 50% on onboarding, enrichment, advocacy, and retention › Use automation to personalize messages and “keep in touch” with customer post sale © 2013 Forrester Research, Inc. Reproduction Prohibited 36
HOW DO I GET STARTED?
Ready to Learn More? Interested in a demo Call +1 (877) 530-1555 Email sales@act-on.com Web www.act-on.com

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Marketing Automation - Beyond Customer Acquisition

  • 1. Marketing Automation – Beyond Customer Acquisition
  • 2. Today’s Presenters Laura Ramos Atri Chatterjee Vice President & Principal Analyst Forrester Research, Inc. CMO Act-On Software
  • 5. Topics for Today • Importance of customer marketing • Automating customer marketing • Content’s role in customer marketing • Measuring – and getting – results • Budgeting and getting started
  • 6. WHY HAS THE BUYER’S JOURNEY CHANGED?
  • 7. The Digital Age of the Customer is Here Source: October 10, 2013 “Competitive Strategy in the Age of the Customer” report. © 2013 Forrester Research, Inc. Reproduction Prohibited 7
  • 8. Information power favors buyers Attention Abundance Information Overload Information Scarcity Pre-Web Attention Scarcity Web 1.0 Social Web Where buyers get information • Your sales people • Google • Your web site • Peers/colleagues • Experts • Your customers What buyers know before seeking sellers • Brand perception • Brand perception • Features/benefits • Alternatives • Brand perception • Features/benefits • Alternatives • Comparisons • Reputations • Customer opinions •… © 2013 Forrester Research, Inc. Reproduction Prohibited 8
  • 9. WHAT IS CUSTOMER MARKETING TODAY?
  • 10. Customer marketing builds relationships across the life-cycle The customer defines the actions and messages that marketing and sales should take © 2013 Forrester Research, Inc. Reproduction Prohibited 10
  • 11. WHAT ARE THE BUSINESS DRIVERS?
  • 12. Why Does Customer Marketing Matter? Customer Retention vs. Customer Acquisition Number of times more costly it is to acquire a new customer Amount of increased profits that can come from boosting than retain an existing one 1 customer retention rates by as little as 5% Loyal Customers vs. Average Customer Spent with a supplier than the average customer 2 Likely to try a new product 2 1) Source: Frederick Reichheld, Bain & Company, published in the Harvard Business Review 2) CEB Marketing Leadership Council Survey
  • 13. DO MARKETERS INVEST IN CUSTOMER MARKETING?
  • 14. Marketing’s Evolution © 2013 Forrester Research, Inc. Reproduction Prohibited
  • 15. Retention Marketing Looks Like Acquisition What are the 4 most effective B2B demand management tactics for retention? Email marketing Tradeshows Company sponsored in-person events Webinars Social marketing Content marketing Public relations Digital advertising Industry trade/user groups Virtual events Search engine optimization Print advertising All respondents (N = 328) Tele-prospecting Analyst relations Pay per click advertising Radio, TV advertising 0% 5% 10% 15% 20% 25% 30% 35% Base: Marketing decision-makers at B2B companies in the US and Western Europe with 100 or more employees; Source: Q4 2012 US and Europe B2B Technology Marketing Tactics And Benchmarks Online Survey © 2012 Forrester Research, Inc. Reproduction Prohibited
  • 16. Customer Retention is Low Priority for Marketing Automation Investment Source: December 2013, “Balance People And Process To Fund L2RM” Forrester report. © 2013 Forrester Research, Inc. Reproduction Prohibited
  • 17. CAN MARKETING AUTOMATION HELP BUILD CUSTOMER RELATIONSHIPS?
  • 18. Apply Science to Customer Marketing Advocates Customers Qualified Leads Known Prospects Anonymous Visitors Inbound Marketing Outbound Marketing Sales Automation Lead Nurturing Customer Success Customer Advocacy Customer Nurturing
  • 19. Automation Enhances Communication Across the Lifecycle Investigate approaches Define requirements Commit to change Understand problem/opportunity Identify possible solutions Build business case Advocate for an approach Expand use of solution Compare alternatives Measure and share results Adopt and use solution © 2012 Forrester Research, Inc. Reproduction Prohibited Acquire solution components 19
  • 20. WHAT TYPES OF CAMPAIGNS APPLY?
  • 21. Relationships Start With Onboarding Harland Clarke found banks that “onboard” have attrition rates 4-5% below peers. © 2013 Forrester Research, Inc. Reproduction Prohibited 21
  • 22. Build Relationships Thru Enrichment Customer enrichment campaigns delivered via automated programs: › Education › Domain know-how › Ongoing Product training © 2013 Forrester Research, Inc. Reproduction Prohibited 22
  • 23. Build Relationships Using Community LexisNexis moderates community to design new features © 2013 Forrester Research, Inc. Reproduction Prohibited 23
  • 24. HOW CAN I NURTURE CUSTOMER RELATIONSHIPS THROUGH CONTENT MARKETING?
  • 25. Content shows how you solve problems © 2013 Forrester Research, Inc. Reproduction Prohibited 25
  • 26. Reinforce Relationships Through Education Develop a curriculum and content plan that matches a customer’s journey. Be both relevant and timely. Become a trusted advisor by educating throughout the dialogue. Reinforce content across multiple channels.
  • 27. Use Nurturing Programs to Improve Education
  • 28. WHAT SHOULD I MEASURE?
  • 29. Track & Report the Metrics that Matter • Satisfaction with your products/services – Regular surveys at intermediate milestones – Usage and change in usage • Advocacy – # and growth of advocates – Level of engagement – # and quality of referrals • Expansion – Increase in revenue from customer – New customer referrals
  • 30. Satisfaction Results in More Business Source: Forbes.com
  • 31. WHAT BENEFITS CAN I EXPECT?
  • 32. Key Financial Benefits of Customer Marketing • Lower Cost of Sales – Cost effective to market/sell to known entities • Higher Profitability Per Customer – Shorter time to upsell – Easier to communicate cross-sell advantages • Higher Marketing ROI
  • 33. Qualitative Benefits Abound As Well © 2013 Forrester Research, Inc. Reproduction Prohibited 33
  • 34. HOW MUCH SHOULD I BUDGET?
  • 35. B2B marketers short change retention 55% “What % of budget dedicated to customer enrichment or retention vs. new acquisition?” “Do you dedicate marketing program budget to customer retention or enrichment?” 33% Base: 57 B2B marketing leaders Source: Forrester/Business Marketing Association November 2013 Marketing Budgets Online Survey © 2013 Forrester Research, Inc. Reproduction Prohibited 35
  • 36. Budget Rules of Thumb › Growth orientation: 30% of program budget on customer onboarding and cross-sell, upsell › Mature orientation: up to 50% on onboarding, enrichment, advocacy, and retention › Use automation to personalize messages and “keep in touch” with customer post sale © 2013 Forrester Research, Inc. Reproduction Prohibited 36
  • 37. HOW DO I GET STARTED?
  • 38. Ready to Learn More? Interested in a demo Call +1 (877) 530-1555 Email sales@act-on.com Web www.act-on.com