10 Steps to Prepare for Marketing Automation September 13, 2012 Larissa DeCarlo

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.
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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.
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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.
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Who We Are
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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
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Consulting Engagements
Founded in 2009, Marketing Operations Works supports world-class companies:
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The 10 Steps to Prepare for
Marketing Automation
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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
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2. Launch a Project
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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
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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
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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:
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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
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3. Conduct Discovery
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Stakeholder Interviews
§  Ask each stakeholder (users, affected, management):
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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
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What’s most painful today?
What will generate the greatest return?
What’s easiest to do now?
What can we put off until later?
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Discovery
Stakeholder interviews and
in-depth analysis
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4. Validate and Prioritize Findings
with Stakeholders
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Agree on Business Drivers, Prioritize
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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
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5. Document Requirements
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The Hardest and Most Productive Step
§  PROCESS!
–  Define “as-is” processes
–  Define “to-be” processes
–  Translate into business requirements
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Define Current State
§  Use process modeling to document the “as-is” process
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Define To-Be State
Visualization and analysis of
detail process flows and
operating cycles
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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
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7. Develop Business Case,
Secure Funding
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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)
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Note: the cost of marketing automation tools range
from $10,000/year to $1,000,000+/year
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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
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9. Prepare for Change
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Change Management
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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
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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
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Evaluation
Define project success metrics,
measure results, and incorporate
into reporting cadence.
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Summary
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Key Take-Aways
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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
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