The Annuitas Group Blog

SIRIUS DECISIONS SUMMIT 2009

Two posts ago I spoke about the Silverpop 2009 conference (See Silverpop Client Summit – 2009 – May 17).  In that post I also mentioned the 2009 Sirius Decisions Summit I attended.  Having finally dug out of being away from the office for two weeks, and being able to sift through the content and notes I had taken, I am now taking the time to briefly comment on it.

As is commonly known in the industry, Sirius Decisions provides some of the richest content available regarding sales and marketing alignment. At this summit they definitely delivered yet again.  From the Sirius personnel sessions to the corporate case studies provided, each presentation was an education on how to improve on marketing and making your marketing dollar count.

During these sessions though there was one theme that came up repeatedly:  the need for process. While there was talk of marketing automation, CRM, and other technology, by and large the prevailing theme was that process is key to success.  I couldn’t agree more!

Marketing Automation Obstacles?

I’m part of a conversation in a LinkedIn group that started with the following question:

What do you perceive as the single greatest obstacle to marketing automation success?
 
Here’s my answer:
 
The lack of understanding on the part of marketers with regard to what marketing automation's role should be.  The misunderstanding comes when marketers fail to define their processes (lead qualification process, lead routing process, etc.) before implementing marketing automation.  Marketing automation tools are not "wizard tools".   They are designed to SUPPORT the marketing process, not CREATE it.  When marketers jump into a tool with ideas like, "This tool will create my lead scoring plan," then they are doomed to frustration. 
 
Process before tools, not the other way around.

Silverpop Client Summit – 2009

In the last two weeks I have been to two conferences. The first was the Seventh Annual Silverpop Client Summit in Atlanta (I’ll tell you more about the second one in another post).  If I may, I’d like to divert from the usual “marketing thoughts” we blog about, and instead, give you our impressions from the Silverpop Customer Summit:

Here’s an overview and some highlights from the conference:

• The new Engage B2B GUI!  Silverpop introduced the new Campaign Manger GUI, which uses a drag-n-drop interface for the building of multi-touch campaigns.  This new interface will allow marketers to build their campaigns in the same “visual” way that they are diagrammed (think “Visio”).  This new feature certainly enhances the experience for marketers and makes it easier for Silverpop Engage B2B customers to launch and manage their marketing campaigns.
• The focus on Process.  Speaker after speaker highlighted the importance and the need for a systematic, documented process to get the most from your marketing automation platform.  Without process, automation is limited.
• More attention on B2B. It was very exciting to see and hear that Silverpop is dramatically paying more attention to the B2B world, and its Engage B2B platform.  In breakout sessions, and keynote addresses, Silverpop has made the commitment to build around this market leading solution set.
• Noted Speakers. We had the privilege of attending sessions and networking with speakers such as Forresters’ Laura Ramos and Sirius Decisions’ John Neeson
• Co-Presenting.  We also had the privilege of co-presenting a case study with one of our clients, USA Financial.  We explained how they established a lead management process, and as a result, have aligned sales and marketing, and improved their marketing ROI.

Overall it was a great conference and we came away with even more enthusiasm regarding the partnership between The Annuitas Group and Silverpop, and the tremendous value that partnership is delivering to the marketplace.

Measuring for Dollars Helps Close the Gap

Over the last few days I have had a running discussion regarding the value and impact that marketing has on sales revenue.  The debate isn’t about IF marketing affects sales revenue.  After all, when sales closes on leads that were either generated or nurtured by marketing, then it’s certainly reasonable for marketing to take credit for having an effect on sales outcomes.  What the conversation is really about is HOW MUCH marketing affects revenue, and to what degree should they be measured on sales?  Or, to put it in the form of a question, “Why aren’t most marketing organizations measured or held accountable based on sales outcomes?”

Both “sides” tend to look at the argument differently.  Marketing makes the case, “We have no control over the sales process.  We can pass the sales team really good leads, and they can botch the sale on every one.  There’s nothing we can do, so to hold us accountable on sales outcomes isn’t fair”.   Sales responds with, “We have to rely on marketing for leads.  If they don’t provide us quality leads, then it becomes harder for us to sell. If they don’t do their job, then we don’t meet our numbers.”

This typical back-and-forth bickering is simply another example of the deep divide that exists between many marketing and sales teams. In this particular case, the issue is that marketing and sales are traditionally measured on completely different levels, and with completely different metrics.  But if both marketing and sales have the same ultimate objective, shouldn’t their being measured be more comparable? 

There is much that goes into aligning and integrating marketing and sales.  Metrics and accountability is one area that can’t be ignored when doing so. When it comes to rating both marketing and sales, it’s good to make sure both have the proverbial “skin in the game”.   For example, “closing rates on qualified leads” could be a measurement for both.  Marketing wants to see closing rates on qualified leads increase, so they work to provide the most qualified leads possible.  Sales also wants to see closing rates on qualified leads increase, so they work hard to close them when they come.  A team approach to a single metric, with both “sides”, dedicated to reaching the overall goals.

For the Wrong Reasons

"Metrics" has been a buzz word in marketing circles for a long time.  It seems that more than ever, marketers are chasing the elusive ROI metric so they can prove that marketing really does make an impact on sales.  I won't argue that metrics are vital for marketing, or that companies would do well do invest in new processes and systems for measuring their effectiveness.   As a matter of fact, most executives I speak to know that they need to measure.  What kills me, however, is the REASON they say they want the metrics.

Too often, when I speak with marketing executives about metrics, and I ask them why they want to measure, the number one reason usually comes back as a  military metaphor: 

• - "I want to arm my marketing team so they can combat sales' when they
     attack, when they tell us that we don't provide any real value."
• - "I need the metrics to battle sales when they say that we don't generate
     enough leads for them."
• - "Having metric data allows me to defend my position."

(And we wonder why there's a gap between marketing and sales?)

Rather than using the metrics to arm yourself for battle, use metric data to improve upon past successes and avoid past failures. I rarely speak with or consult marketers whose mindset is to use metrics in this fashion. But it makes sense.  When it comes to metrics, the process should be...

Launch - Measure - Analyze - Adjust - Re-launch.

If your primary use of metrics follows this formula, you will exponentially improve the value of your marketing dollars. 

Number Crunching

I hate math. I despise it. But sometimes in order for us marketers to prove our point we have to use it.  Take the following numbers from a recently published Aberdeen Research Study report by Ian Michaels:

• Only 16% of leads that are deemed sales opportunities actually close
• 2005 research indicates 60-70% of marketing qualified leads are not followed-up by sales
• Only 43% of organizations currently use any kind of lead nurturing strategy or framework
• Nurtured leads in best in class organizations delivered 47% higher average ordered values than non-nurtured leads

This is great news.   Do the math.  In a time when organizations world-wide are wondering what steps they need to take to offset the economic down turn, this research indicates that companies do in deed have sales leads.  The key is to qualify and nurture them effectively through to closing the sale.

Maybe the new math for leads is quality, not quantity!

Don't Be Afraid

Happy New Year to all! As you can see we took a holiday break from the blog but are now back at it.  We sincerely hope that you all had a great time of rest and relaxation with your families and loved ones.

With every New Year come all the promises of things we'll accomplish, things we'll stop doing or adjustments we'll make.  Personally, mine came the day after New Year's Day when my friend asked me to join him in participating in a triathlon this coming summer.  Although I'm in decent shape, I'm not in triathlon shape so I accepted the challenge and have begun my training.  I say all that to tell you that as I was running this morning, and listening to music on my iPod, a song came on that starts with a quote from Nietzsche that says "All great things must first wear a terrifying and monstrous mask in order to inscribe themselves on the hearts of humanity."

This got me thinking about some of the conversations I've had in the last year with several marketing executives when discussing their lack of lead management process (this is what one thinks about when they do not want to focus on their old aching legs).  Many of these people know their process is broken, or at best, that it lacks the necessary elements to make it solid.  Yet they refuse to fix it. Why? I believe the main reason is that they they're afraid of what they'll find.  Perhaps they're afraid that fixing the process may take too long. Or maybe fixing it will disrupt things (they find comfort in status quo).  Or maybe they're afraid of the interpersonal conflict that comes with identifying and fixing a broken process. Fear is a paralyzing agent.

But fear shouldn't keep us from doing what should be done. Will taking the necessary steps to fix your lead management process have an impact on the "hearts of humanity"?  I highly doubt it. But it will have an incredible impact on the revenue your sales force can generate, and the impact your marketing programs will have on your company's revenue goals. Sometimes making the necessary changes is, in the words of Nietzsche, "scary and monstrous".  But if we have the courage to fix it, the results will be fantastic.

Economics

Even though it’s in the news every day, it’s really not news anymore.  It’s more of an update: Our economy has fallen on some pretty hard times.  The news (or updates) simply lets us know about the most recent layoffs, budget freezes or bailouts.  Yes, these are uncertain times, but there is one thing of which you can be sure:  smart companies are going to make certain that their investments return value. 

This demand of value will especially be true of marketing.  Traditionally, marketing at many companies is viewed at best, as an expense. At worst, it’s a necessary evil.  But this view is changing as marketers take a process-based approach when developing and implementing their strategy.  The process based approach includes planning, testing, measuring and analyzing.  With this approach, smart marketers can show the value they bring from an ROI perspective.

In the economic downturn, some executives will call for marketing expenses to be slashed. However, true survival, and even success, will come when companies  take a process-based approach to marketing and sales, ultimately improving the return on these investments.  Marketers who do this will prove marketing’s value, and generate a higher rate of return….even in a down economy.

Leads for Sale!!!

Last night I was driving out to the store to grab a few grocery items and as is my custom, I began flipping through the radio stations.  I was mindlessly turning from station to station when I stopped at a commercial that caught my attention. The announcer asked, "Are you in sales or do you own a business?"  Because I could answer "yes" to both, I continued to listen.  The commercial went on to state that not getting good qualified leads for a business can be the main factor that stands in the way of a business making money.  The commercial then offered their solution to the problem:  leads delivered right to your sales people's inbox every day. The results?  Your business will grow, revenue will increase, quotas will be met and everyone will retire to Millionaire Estates just like in the game of LIFE!!!  OK, the last one I added. It wasn't really part of the commercial.

While it certainly is true that good qualified leads can make the difference in a sales career or for a business, I've yet to see where this "silver bullet" approach works.  After all, if it was as easy as subscribing to an email service, wouldn't every one in sales be succeeding? 

As I continued my "radio scanning" exercises, I thought about the issues that the "leads" commercial brings to light, many of which are not being effectively addressed at the majority of companies.  These are issues such as...

• Lack of clarification on the definition of a lead. What does sales say a lead is? What about marketing? What about customer service? Most companies cannot definitively describe what a lead looks like for their business.
• Lack of qualification criteria. At a significant number of companies, different groups are using differing weights and measures to determine a lead's viability.
• Lack of centralization for lead qualification. Many companies allow leads to be qualified at the point of entry instead of through one central repository and process.
• Lack of "on going" lead qualification, or lead nurturing. Most companies don't have a plan for ongoing lead nurturing for those leads that are not "sales-ready".

Making sure you have the answers to these and other questions is the start of defining and developing a sales and marketing process that will enable you to improve the return on the sales leads you receive, no matter where they come from. 

We Don't Talk Anymore!

There’s been much talk lately about marketing and sales integration.  It seems most of the discussion centers around how marketing and sales technologies will integrate.  “Does our email program ‘connect’ to the contact manager?” “How will our marketing automation application interact with our CRM system?”  “How are the systems connected?” After all, marketing/sales integration is a technology issue, right?

Well, not really.  Yes, integration of systems is important.  But long lasting integration occurs when marketing and sales teams first address how to integrate their processes.  Before the discussion of technology tools occurs, marketing and sales teams should be looking for ways to integrate what they do from an operational level.  And the best way to do this is to talk about it. 

You may be thinking, “Well duh!”  But you’d be surprised.  Many of the organizations with which we’ve worked or interacted have had silo mentality when it comes to sales and marketing process. As is often the case between marketing and sales, one hand doesn’t know what the other is doing.  This often is the result of one entity simply not sharing information with the other.  And as the saying goes, in the absence of information, the imagination takes over. 

But this can be overcome.  When implementing lead management programs for companies, we usually suggest that marketing “reach across” to sales to begin the discussions on how to integrate.  This can be done by conducting group sessions, or independent interviews with a representative sample of the sales team. Areas of discussion should be assessment of current lead management processes, standardizing definitions, lead qualification practices, lead scoring, lead nurturing, lead routing, metrics, etc.  When the discussions are complete, summarize and communicate the findings, results and next steps. Schedule regular updates, and keep the communication “two-way”, allowing for feedback.

Bridging the gap between marketing and sales may seem impossible, but it can be done.  And doing this before moving forward with implementation will significantly reduce the roadblocks that otherwise could lie ahead.  It will ease the integration of marketing and sales processes, allowing the two to work together as a cohesive unit.