Laura Ramos, Vice President, Principal Analyst Webinar Fund Your L2RM Business Case With A Focus On People And Process Laura Ramos, Vice President, Principal Analyst January 22, 2014. Call in at 10:55 a.m. Eastern time

Agenda Why prioritize marketing automation? The L2RM business case: What’s required to transform marketing? Skills and training needed to refit the B2B marketing mindset Examples of L2RM successes

L2RM reasons to invest seem obvious Source: December 18, 2013, “CMOs Must Prepare For Lead-To-Revenue Investments Now” Forrester report

Automation makes us more productive Launch more campaigns. Get inbound working. Increase lead quality and volume. Develop demand through nurturing. Qualify leads with scoring. Promote them to sales. Close more deals, faster. No problem. We’re automated!

The marketing automation dilemma Source: October 4, 2006, “Improving B2B Lead Management” Forrester report

Things get complex in age of customer Source: March 28, 2013, “The New Physics Of Lead-To-Revenue Management” Forrester report

The fallacy of technology-led investment Source: March 28, 2013, “The New Physics Of Lead-To-Revenue Management” Forrester report

Think bigger about L2RM investment Architect of customer engagement Top-notch lead supplier L2RM: integrated goals, processes, and metrics that shape marketing practices from lead generation to revenue events, focused on customer engagement and measured against revenue performance — from new customer acquisition through lifetime value

L2RM helps engage customers across the entire life cycle Attract/inbound Educate Target Monitor behavior Segment Build interest/score Create awareness Qualify Advocate Short-list Loyalty Provide comparison Upsell/cross-sell Persuade Achieve best practices Negotiate/purchase Implement Onboard Source: August 29, 2013, “Make Customer Obsession Pay Off With The Customer Life Cycle” Forrester report

Why does customer marketing matter? Customer retention versus customer acquisition 6 or 7 25% to 95% Number of times more costly it is to acquire a new customer than retain an existing one1 Amount of increased profits that can come from boosting customer retention rates by as little as 5% Loyal versus average customers Source: Frederick Reichheld, Bain & Company, published in the Harvard Business Review and 2012 CEB Marketing Leadership Council Survey 50% more Likely to try a new product2

A winning L2RM business case

Technology investments are modest ___________________________ Size of company Investment category Small (<$20M) Mid ($20M < $250M) Enterprise ($250M+) Type of cost Technology (software) $10K to $25K $25K to $50K $200K to $750K Recurring Avg. investment: $20K to $40K (annualized) As low as a few hundred dollars per month Costs scale with increases in users and activity. Source: December 18, 2013, “CMOs Must Prepare For Lead-To-Revenue Investments Now” Forrester report

Here’s what comes with SW investment Data? Workflow? Content? Process maps? Scoring models? Image source: Topliners (http://topliners.eloqua.com/)

What’s needed for L2RM transformation Map end-to-end process. Data management Image source: PrestatoolBox (http://www.prestatoolbox.com/), Procom Computers Technologies (http://procom.kbo.co.ke/), Spark Up Arts (http://sparkuparts.com/), and Dynaton (http://www.dynaton.eu/) Content Integration

Map end-to-end process. Rethink L2RM processes Map end-to-end process. 38% = poor lead processes* Use a results chain to model ideal engagement with buyers. Engage sales to focus on revenue delivery. Image source: PrestatoolBox (http://www.prestatoolbox.com/) Source: Q4 2012 US And Europe B2B Marketing Tactics And Benchmarks Online Survey

Fund data management Aids segmentation and targeting Helps to model propensity to buy Fund data hygiene as ongoing concern. Data management Image source: Procom Computers Technologies (http://procom.kbo.co.ke/) Source: November 19, 2012, “How Analytics Drives Customer Life-Cycle Management” Forrester report

Gear up content creation Content quality correlates to engagement. Invest in journalists. Co-create and curate to generate volume. Develop for “chunkable” publication — delivered through buyer’s preferred channels. Go visual. Content Image source: Spark Up Arts (http://sparkuparts.com/) Source: January 12, 2012, “Content Marketing Is A Key Differentiator For Tech Marketers” Forrester report

Integrate to transform Bring in difficult-to-hire marketing, system, and data management experts. Integration makes automation more effective. Integration Image source: Dynaton (http://www.dynaton.eu/) Source: July 2, 2012, “The State Of Lead-To-Revenue Management” Forrester report

Size up the required investments ________________________________ Size of company Investment category Small (<$20M) Mid ($20M < $250M) Enterprise ($250M+) Type of cost Process change $10K to $25K Equivalent to initial technology investment $75K to $150K Two to three times initial technology investment $600K to $3M: • Three to five times initial technology investment • Requiring six-month effort prior to technology implementation Recurring Data management $25K In-house project $100K Hiring database specialist to clean and standardize customer data $250K Retaining database services firm to clean and standardize data Content creation $10K to $50K $75K to $150K: • Content creation • Execution support $250K+: • Execution • Sales support Integration $50K to $100K $150K to $300K+ Dependent on number of systems, data sources, etc. One-time Source: December 18, 2013, “CMOs Must Prepare For Lead-To-Revenue Investments Now” Forrester report

Finance skills and training to refit the marketing mindset

L2RM requires change in perspective . . . Source: February 21, 2013, “Rethinking Marketing In The Buyer’s Context” Forrester report

. . . and new roles and skill to succeed What does this role do differently? Key skills required Campaign, industry or solutions Focus on buyer’s journey and delivery of relevant content at each stage. Direct marketing, tactical outbound, message creative Inbound marketing Create online dialogues, monitor social discussions/topics/groups, and add value to conversations. Digital, SEM/SEO, website, blogging, social media engagement, community management Marketing operations Oversee marketing automation, technologies, and data initiatives; report business results. Data management, system integration, tool set skills, technology management, sales ops Telemarketing (inside sales) Qualify demand for sales, provide 1-to-1 nurturing, and relationship building. Communication and follow-up skills, deliver on quotas, track and monitor leads Editor in chief Set content strategy, manage editorial calendar, and establish thought leadership platform. Creative/journalism background, strong point of view, test/measure content effectiveness Content marketing Translate product features into business needs, engage in storytelling, and share key points of view. Copywriting, press savvy, visual design, creative thinking, journalistic writing Source: December 18, 2013, “CMOs Must Prepare For Lead-To-Revenue Investments Now” Forrester report

To properly fund L2RM talent Assess skill gaps on current team. Budget for dedicated leadership. Expect training costs to exceed tech investment. Make skill development a continuous process. Augment skills with consultants or agencies. Investment category Small (<$20M) Mid ($20M < $250M) Enterprise ($250M+) Type of cost Headcount $50K to $100K One FTE or agency $100K to $150K One FTE plus agency fees $300K to $500K One director plus two to five FTEs Recurring Training $10K to $25K $25K to $50K Duration: up to two quarters of training $100K+ Duration: up to three quarters of training One-time for technical marketing staff Recurring for users Source: December 18, 2013, “CMOs Must Prepare For Lead-To-Revenue Investments Now” Forrester report

Proof and success stories help to seal the L2RM deal

Persuasive business cases include: Clear, quantitative facts. Arguments centered on sales productivity and predictability. Believable stories — similar company, shared situations, and credible results.

Smartling redefined end-to-end process to gain real-time pipeline visibility Score = buying behavior Grade = demographic match Image source: Smartling (http://www.smartling.com/)

SunGard content leans on pop culture to spark interest and engage buyers Image source: SunGard (http://www.sungardas.com/)

ReadyTalk integrates L2RM to streamline webconferencing management Image source: ReadyTalk (http://www.readytalk.com/)

Visage Mobile automates ongoing client interactions to build loyalty and value Image source: Visage Mobile (http://visagemobile.com/)

Small business MedQuest Pharmacy drives greater efficiency when delivering local events Image source: MedQuest Pharmacy (http://mqrx.com/)

Making value and benefits tangible Source: December 18, 2013, “CMOs Must Prepare For Lead-To-Revenue Investments Now” Forrester report

Keep the L2RM business case focused on vision; effectiveness will follow Sign up for a number — or prepare to trade off programs. Use short-term gains to justify needed long-term change. Share you vision about transforming marketing.

Questions?

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Laura Ramos +1 650.581.3812 lramos@forrester.com Twitter: @lauraramos http://blogs.forrester.com/laura_ramos