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March 12, 2010
Whether in a new business process, in conversation with current client executives or via a daily supply of Tweets from Social Media experts and wannabees alike, the subject of ROI has become a mantra for those either advocating or trying to embrace Social Media.
If I hear one more marcom director ask me what kind of ROI they can expect from an investment in Social Media, I might just throw a bucket of water on him or her (<:}.
Or perhaps, more appropriately, his or her boss.
It seems people have forgotten that the purpose of Social Media:
- To build quality two-way relationships with customers, partners and other stakeholders.
- To mutually exchange information, insight and thought leadership.
- To naturally attract the right people with whom to do business when they are willing and ready to do business with you
Social Media is not a replacement for a company or product brand, but it certainly can help reinforce brand (it can wonderfully augment public relations and customer service, for example).
It is not a lead generator, though over time a company will organically receive leads through Social Media efforts (a strong Social Media presence is a powerful support system for new product launches and gaining critical insight from customer and developer communities, for example, to hone the innovation process).
Social Media is not a vehicle for aggressive, “won’t take no for an answer” salespeople or spin-doctor marketers to apply their old-school sales and marketing tactics to manipulate customers to buy. (in face, the use of such invasive and overly-persuasive approaches is actually a barrier to the wholehearted embracement of Social Media).
So what about ROI?
Well first, let’s remember this a brand new channel so when your company decides to enter the Social Media world, do so with an investment mentality. The payout is highly unlikely to be in a few months. It might be a few years.
Second, defining what ROI is for Social Media is not straightforward. What do you measure and track? How does that measurable outcome link back to your enterprise strategic objectives? How does Social Media fit into your overall Marketing strategy in contributing to the success of the enterprise?
Remember, Social Media is an unchartered and mostly standard-less world. Even if your company has established what it is going to measure and track, it probably doesn’t have enough history with Social Media to be able to project specific desired outcomes with a high degree of confidence. Examples of success in Social Media are still the exception, not the norm. Few companies can state with absolute certainty that a success triggered through a Social Media effort wouldn’t have happened anyway through some other marketing or sales approach.
So, Social Media ROI??? Good to think about. Good to begin to define. Good to track. But, ROI? Forgetaboutit! At least until you have a seriously well-established SM program, anyway.
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Speaking of Social Media, as you may recall, Marketing Operations Partners is a sponsor of NewCommForum 2010.
Today is the final day to register and take advantage of Early Bird discounts for NewComm Forum 2010.
If you want to take advantage of a significant price break, register today at http://www.facebook.com/l/18c3d;www.newcommforum.com
Use the Marketing Operations Partners discount code, NCF2010MOP, to save an additional $100.
NewComm Forum will feature:
* 5 in-depth workshops with experts Geoff Livingston, Kami Huyse, Katie Paine, Shel Holtz, Paul Gillin, Susan Getgood, Chuck Hester, and Nancy Duarte for only $195 each for a 1/2-day or $295 for a full-day workshop if you register today!
* 40 sessions in five tracks covering everything from social CRM to social media program development, management and measurement, from online communities to online video and podcasting.
* 5 keynote presentations by online marketing expert and author Jackie Huba; Tim Westergren, founder of Pandora; Scott Monty of Ford; Jack Holt of the DoD; and social media and communications expert Neville Hobson.
Hope to see you San Mateo, CA next month!
Gary
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February 28, 2010
As a tough economy and demanding CEOs call for more disciplined, streamlined, accountable marketing, what impact does this new reality have on how marketing professionals are valued and treated by their organizations?
Is Marketing Operations a protector of individual marketers, helping them optimize and mobilize their talents toward achieving enterprise strategic objectives. Or is it a sinister means to shift responsibility from the system to individuals, making them even more vulnerable and disposable in the name of efficiency and profitability?
It all depends, really, on an organization’s fundamental view of its people. Are your people truly valued or easily replaceable?
A Marketing Operations mindset, and related aspirations such as a culture of measurement and accountability, can be used for good or evil. They can empower marketers or enslave them.
Empowered Marketers
- Have a clear sense of what is expected of them and wholeheartedly buy into the vision
- Are able to focus on what is important, not just urgent
- Continually earn the trust of their management through their willingness to stay accountable, challenge their own mental models (discussed in my ”Building Upon the 5Ts of Marketing Operations post), and act with clarity and courage
- Understand and are able to demonstrate how their efforts contribute to the success of the organization
Enslaved Marketers
- Blindly do what they’re told, what’s always been done, refusing to rock the boat (even when it is sinking)
- Focus on firefighting, pleasing the boss, pointing fingers and playing politics
- Live in constant fear of ”Big Brother”; of being exposed, losing their power (if they have any) and, ultimately, their jobs
- Spend much more time justifying their existence than creating real value
What type of marketer are you, empowered or enslaved?
If your organization empowers you, you have an incredible opportunity to really experience the best of Marketing Operations — to be part of the transformation, the shift in Modus Operandi (MO).
If you’re inside an organization that enslaves you, Marketing Operations is yet another vehicle to maintain the status quo — to keep a sick system sick. Is this the future you envisioned for yourself when you first entered the workplace?
You have a choice.
For more on the relationship of Marketing Operations to the stature of Marketing and Marketing professionals, check out my article, “Integrated? Strategic? Why Marketing Needs a New MO”
Gary
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February 15, 2010
February 4, 2010
Marketing and IT are arguably two of the most overloaded and under-resourced functions in the enterprise. As marketing complexity increases, a key aspect of a scalable marketing strategy is the automation of repetitive, manual processes. In most organizations, Marketing cannot advance these automation initiatives through its own resources. It needs IT. Today, our newest associate partner, Simon Daniels, offers an insightful prescription on exactly what Marketing needs – and doesn’t need – from IT. The following article is republished from Database Marketing magazine — Gary
What Marketing Needs from IT
by Simon Daniels
It’s well known that Sales and Marketing are like cats and dogs in many companies. Constant conflicts take place over the value of marketing activity, the quality of leads and their subsequent follow-up and the appropriate assignment of credit for opportunities that result in new business wins. These issues are much discussed and suggested solutions abound.
What though, of the relationship between Marketing and IT? Technology is crucial to modern marketing in the form of database systems, campaign automation, digital and interactive platforms, analytics and much more. We turn to our IT colleagues for solutions in these areas to help us manage customer lifecycle, campaign execution, measurement and many other aspects of marketing activity. Alongside systems deemed business critical in finance and operations though, Marketing is often afforded lower priority and left to fend for itself.
Continue reading Simon’s article on the Marketing Operations Partners website.
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January 26, 2010
January 11, 2010
I'm finishing up Bill Stinnett's excellent book, Think Like Your Customer, which should be required reading for anyone in Sales and Marketing, especially if you market high-value products and services.
A glaring Marketing Operations disconnect for many companies is our tendency to over-focus on What and How we want to sell, when we really need to develop a deeper understanding of What, Why and How our customers buy. Those of us in MO need to assert leadership in aligning our company's sales process with our customers' buying process.
The healing starts at home. Our collective lack of effectiveness in supporting one of our primary customers, Sales, surely speaks to the growing emphasis today on Sales and Marketing alignment.
Yes, Sales and Marketing have equal roles in this often dysfunctional relationship. Yet it is incumbent on us as marketers to take responsibility for cleaning up our side of the house if we want a shot at a healthy, mutual partnership with Sales. If you've been in a long-term business relationship or a marriage, you know what I mean. Our unilateral thinking and actions impact the overall health of the system, for better or for worse.
So how does all of this relate to Stinnett's book? I've gleaned a couple of key insights below that are especially meaningful to me. I also discuss some possible implications of these insights, which I recommend my fellow marketers and MO practitioners seriously ponder:
1. We need to remember our customers are buying a desired outcome, not a solution. Our organizational focus should be on understanding the gap between our customers'/prospects' current state and their desired future state – the motive, the urgency, the payback, the consequences of inaction, the means to act, the perceived risks in acting.
Implications for marketers: We can best support Sales by providing the process and means to better understand this gap. We also need to deliver collateral and marketing programs that attract prospects interested in bridging the gap. We need to continually ask ourselves some key questions to ensure that our selling process is not just aligned with the customer, but with our business goals. How well can we fill the gap for the customer and still meet our profit objectives? How can we support Sales to ensure that new sales reps are properly trained to act in accord with this customer-centric approach?
2. We need to understand our customers' buying process and imperative to buy. Where are they in the buying process? What do they need to do next? Who else is part of the decision process? How can we enable our customer champions to take the next step in the buying process? We need to understand the motive behind the potential selling opportunity motive to support sales reps. Is the reason to buy a planned replacement, an unplanned replacement, a
new purchase to keep up with the competition or a new purchase to get
ahead? Is the initiative supported from the top-down or is it
bottom-up? How does this initiative rank in terms of priority compared to other initiatives the customer might choose to fund? If we don't understand these fundamental buying factors, we won't be able to support Sales with strategic intent. We'll just be providing air cover, absent a battle.
Implications for marketers: The programs we establish, the campaigns we develop, the tools we create need to be geared toward helping Sales help our customers to buy. Does Sales believe our marketing programs, campaigns and sales tools contribute to gaining greater access to qualified prospects? Reaching "hidden" decision makers? Equipping customer champions to sell on our behalf? Is there significant tension for the customer to buy? Our credibility with Sales is at stake. Our sales reps need to trust that the leads we provide are legitimate qualified opportunities. They'll have much greater respect for us and the quality of our leads if we take the responsibility to nurture prospects until they are truly ready to buy. This means, when the customer has demonstrated that they know what they are buying, why they are buying and how they are going to buy it. The last thing we want to do is waste our sales resources on a sourcing decision ("Who will I buy from?") when we (and/or our prospect) don't have a strong handle on the why, what and how.
It really comes down to aligning our internal sales and marketing process (with our internal customer, Sales) with our customer buying process. This is a fruitful area for Marketing Operations to focus. Our contributions can make a real difference in our organization's ability to:
- Attract and win the right prospects and customers
- Nimbly and appropriately respond to sales opportunities, based on a sound understanding of where prospects are in their buying cycles
- Optimize our sales resources to focus on high-touch, ready-to-buy opportunities
- Empower our customer champions to be highly effective advocates of our value proposition
- Mobilize our marketing resources – programs, campaigns, collateral – where they will have the greatest impact
Gary
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In addition to our webinar, I’ll be speaking about Marketing Operations before the Sales & Marketing SIG of the East Bay IT Group (EBIG) this Thursday, November 16 at 6:30 p.m. For more information, visit http://www.ebig.org/sig/sig.aspx? SIGid=27&EventID=806&old=.
Gary
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In conjunction with his new book, Bernie Borges recently interviewed me about Marketing Operations 2.0. We’ve received a lot of great feedback about the value of the conversation. Check out the podcast.
I thought it also would be instructive to share what Bernie wrote in his blog in introducing me and the podcast. I’m sure you’ll appreciate his interpretation of the work I (and fellow Marketing Operations practitioners) perform every day to help change the MO of Marketing. Gary
Gary Katz is CEO of Marketing Operations Partners, located in Silicon Valley. Gary has a background in PR. He developed a concept which intrigued me because it fits well with the mindset shift in my book.
Gary authored a chapter in my book, Marketing 2.0, appropriately named Marketing Operations 2.0. Here is the definition of Marketing Operations (MO) from that chapter.
“Marketing Operations is a relatively new discipline that can be defined as a comprehensive, end-to-end operational discipline that leverages processes, technology, guidance, and metrics to run the marketing function as a profit/value center, growth driver, change catalyst and fully accountable business. MO reinforces marketing strategy and execution with a scalable and sustainable infrastructure. MO seeks to nurture a collaborative, well-aligned ecosystem, both within and outside the marketing department, to drive achievement of strategic objectives.”
MO Delivers the Operating Plan for the Marketing Department
When I asked Gary to translate that explanation into plain English, he used an analogy which I believe does the job. Gary says that the Chief Marketing Officer (CMO) of a business is like the driver of a car. The purpose of getting into a car is to drive to a destination. The driver is responsible for the outcome, but there are many other factors that must be in place to get there. The car’s engine must be operating well. The tires must have enough air. The wheels must be aligned to drive safely. The roadways must offer an efficient pathway. And, the driver must have knowledge of the roadways or have a navigation system for guidance. And, the car needs periodic maintenance to stay prepared for ongoing use.
MO builds a high performance car and makes sure there is a plan to get to the destination. Gary points out that MO is essentially like an operating plan for the CMO. He refers to his company, Marketing Operations Partners as a COO for the CMO. This explanation makes sense to me because the CMO needs an operational plan to manage all the marketing activities which include a myriad of marketing campaigns comprised of advertising, email, SEO, SEM, social media marketing, media relations, etc.
Gary says that MO places a lot of emphasis on alignment of messaging with the rest of the company. MO helps deal with change management for the marketing function acting as a chief of staff for the CMO to guide in effective execution of all marketing activities. In other words, the CMO is like the CEO of their business. MO is the COO to the CMO.
Accelerating the Sales Process
In my book, Gary addresses how MO can accelerate the sales process. Here are two key points on this popular topic.
1) Lead Flow: Nurtuing prospects who are not ready to buy today into prospects of tomorrow. A Sirius Decisions study indicates only 20% of leads get followed up by sales, 70% of which are disqualified. Shockingly, 80% of those leads buy from someone within 24 months. The issue for any CMO is the pressure to show ROI in the face of so much waste.
MO offers a lead process supported by a technology solution. Many companies put in place the technology (CRM systems, tracking systems, etc.) before creating the lead development and nurturing process. Can you say “cart in front of the horse?”
2) Alignment of Sales Process with Buying Process: Since social media is meant to be a platform where conversations occur and relationships are built, new processes must be defined. Remember MO is also a mindset. Gary was inspired from the book Think Like your Customer. He encourages marketers to ask: “How attractive are we to our prospective buyers?”
Thinking Differently
Businesses need to think differently in an environment where economic pressures ask you to close deals this quarter. Sellers have big pressures. But, buyers don’t want to be engaged in a sales pressure situation. Sellers need to get the buyer to “like you.” MO provides the roadmap for a CMO to implement marketing strategies with process and discipline. Organize marketing activities around the customer. Break down the silos that exist in your business. Examine how the functions in your business align with marketing such as customer service, P.R. sales, manufacturing/distribution, etc. They are all part of the marketing function. If they are not aligned, those who touch the customer directly will reflect a different message or attitude than your marketing message.
Demonstrating Measurable Returns on Marketing
Using MO to measure results always comes back to the business goals. Social media is a new channel. You can measure details such as RSS subscriptions, website traffic from new keywords used in social media, names of employees producing great content, etc. The challenge for many companies is that using social media is still new. There is no history or benchmark. The analytics usually provides indicators but not results. Executives ask the CMO how these metrics impact revenue today? In most cases they will affect revenue in the future, not the immediate present. So, it’s imperative the CMO has strategic alignment with the CEO and all other key stakeholders in the business for short term survival and long term success.
MO Take Away
Regardless of the size of your company here’s the take-away on marketing operations…How do you execute a marketing strategy regardless of individuals? How can you build a marketing organization that sets the right processes and can scale effectively as the company grows? The more you grow, the more marketing programs you run and the more challenges you will face in measuring, managing and staffing.
Companies are wise to think with an MO mindset before you get into trouble. You can’t defend your marketing budget, your people or your programs without processes. You’ll get marketing programs (or people) cut when things go wrong without MO processes in place. Often senior management doesn’t understand the value of what was cut in the absence of MO processes until after it’s been cut. Reduce your risk and maximize your long term success with an MO mindset.
If this topic interests you, you can learn more from Gary Katz and his company Marketing Operations Partners at his website, his MO blog, his LinkedIn groups, and his MO presentations on Slideshare. You can also follow Gary on Twitter.
So, what’s your take away from this MO discussion?
Bernie Borges
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