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April 13, 2010
In previous blog posts, I explored the relationship of Marketing Operations to Social Media and the ”instant gratification” Marketing ROI organizations are unrealistically expecting from the Social Media channel. Before jumping into another plug for our partner, Newcomm Forum 2010: The Social Web. .. Redefining Business, I want to touch on an aspect of Social Media ROI that is easily overlooked but has significant relevance in today’s world: Social Media Monitoring. Before an organization can even hope to assess the impact of Social Media on its marketing effectiveness, it needs a way to be able to effectively track and monitor activity and relationships online in communities such as LinkedIn, Facebook, Twitter, YouTube, etc.. As is often the case with technology-based solutions and services, the plethora of options available is overwhelming and buyer confusion is the norm. Recently I met with Stephen DeBruyn, who is addressing this challenge with true passion. Steph is a protege of my friend and communications measurement guru Katie Paine, having worked with her at Delahaye Group (now Cision) before Katie left that firm to found KD Paine & Partners. Steph shared with me a fantastic resource he and Connie Benson have developed to take the mystery out of social media monitoring. Their website, Tools and Best Practices for Monitoring Social Media, includes a Guide to Social Media Monitoring Tools, Purchase Criteria, Insights & Trends, Resources, Best Practices/Social Media Case Studies and Definitions. Check it out!
Now on to the NewComm Forum plug!
As you know by now, Marketing Operations Partners is a proud sponsor of:
NewComm Forum 2010: The Social Web. .. Redefining Business
April 20 — 23, 2010
Marriott San Mateo
San Mateo, CA
http://www.commforum.com
We hope you’ll be able to join us next week at NewComm Forum, the premier conference for unlocking the power of social media for business. This is a great opportunity to get up-to-speed on the latest developments in the Social Media world, hear about best practices, explore new tools and applications, and network with users, vendors and thought leaders in the field.
Friends of Marketing Operations Partners can take advantage of special discounts by using the below discount codes.
Come for the entire conference or just a day!
NewComm Forum will feature a who’s who of social media experts and practitioners from leading companies presenting 40 sessions in five comprehensive tracks including:
- Online Communications & Communities
- Social CRM
- Markets are Conversations: From Theory to Practice
- Understanding the New Media Landscape
- NewComm Essentials
Keynoters include:
- Jackie Huba, online marketing expert and author
- Dave Carroll, singer/songwriter, “United Breaks Guitars”
- Scott Monty, Ford
- Jack Holt, US Dept. of Defense
- Tim Westergren, Pandora
- Neville Hobson, WeissComm
Choose from a variety of intensive ½-day and full-day pre-conference workshops on Tuesday, April 20th. See details at: http://www.newcommforum.com/Social-Media-Workshops.
Use discount code NCFW100 to save $100 on a pre-conference workshop.
And, wrap up your Forum experience on Friday, April 23rd in our special one-on-one workshop with conference faculty and SNCR Fellows — included in your conference fee. It’s like getting a half-day of expert consulting FREE! See more details at: http://www.newcommforum.com/Social-Media-Strategy
Register for the full conference now at www.newcommforum.com with special discount code for NCF300 to save $300 off your full conference fee!
Or, just join us for one day on Wednesday, April 21st:
The NewComm Forum 2010 One-day Pass Includes:
- Full Access Pass for Wednesday, April 21st
- 3 Keynote Sessions: Jackie Huba, online marketing expert and author; Dave Carroll, singer/songwriter, “United Breaks Guitars” and Tim Westergren, founder, chief strategist, Pandora
- Access to all conference sessions – choose from 16 breakout sessions in five tracks. Featured presenters include: Shel Holtz, Jen McClure, Paul Chaney, Eric Schwartzman, Francois Gossieaux, Brian Solis, Katie Paine, Dharmesh Shah, Beth Kanter, Kami Huyse and more!
- Networking Activities and Food & Beverage Events: Breakfast, Luncheon featuring Dave Carroll of “United Breaks Guitars” fame & Cocktail Reception
Cost: Only $395! Register now and use code NCF1D.
We hope you’ll join us for NewComm Forum, the premier conference for unlocking the power of social media!
Gary
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March 24, 2010
Today our Marketing Analytics team lead, Creig Foster, dives into the sexy topic of predictive analytics (PA). Why are we so enamored with PA? One of my students, the Marketing Operations leader at fast-growing software company, captured the essence of why PA is compelling in a recent essay: “I have a better chance of my marketing department growing and my personal relevance moving up the food chain if I can predict the future – plain and simple.” So if that’s the case, why aren’t more marketing leaders actively applying PA in their marketing strategies (particularly in the B2B world)? Perhaps they just don’t yet understand the many PA applications that are available to run their Marketing Operations better. Creig’s aticle takes some of the mystery out of the magic of predictive analytics. Gary
Increasing the Value of Marketing Operations with Predictive Analytics
by Creig Foster
A recent blog post by James Kobielus of Forrester Research advances the idea that business success depends on your company’s capability to see likely future outcomes and take appropriate steps now to realize them. He goes on to say that predicting future scenarios successfully, laying plans and deploying the needed resources is critical in seizing opportunities, minimizing threats and mitigating risks. I fully support this view and believe that for a company to be successful these days it must use predictive analytics to its fullest extent.
So what is Predictive Analytics? From the all knowing source, Wikipedia, “Predictive analytics encompasses a variety of techniques from statistics, data mining, and game theory that analyze current and historical facts to make predictions about future events.” You might ask yourself what is the big deal; humans do this sort of thing all the time. Yes, but predictive analytics takes in huge amounts of data, analyzes complex interrelationships, and discerns patterns in the data that the human mind could not possibly see. Besides, the models can do their processing 24/7 without making a mistake.
Kobielus goes on to state that the “grand promise of predictive analytics – still largely unrealized in most companies – is that it will become ubiquitous, guiding all decisions, transactions, and applications.” For a company (large or small) to become a truly predictive enterprise, I believe it will take more than an investment in the technology and people to accomplish this transition. It also takes a change in how a company thinks about its business.
Instead of a reactive response to challenges and opportunities as they are presented, I believe that a proactive and investigative approach to building the business is enabled by predictive analytics. Yes, I know we all plan with the best intentions of positive outcomes. What I am suggesting is using predictive analytics in making decisions about future directions and strategy. In other words, the use of predictive analytics should become part of the way a company thinks about its business and a cornerstone of the overall business strategy.
Read the complete article here.
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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.
_____________________________________________________________
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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January 11, 2010
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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Our partner, VisionEdge Marketing, is conducting its annual 2008 Marketing Performance Survey and you still have until this Sunday, February 10 to register your opinions. The survey, which takes about 15 minutes to complete, is a national Web survey intended to track how companies are adopting marketing metrics today. As a participant in this study you can request a complimentary copy of the survey summary, which will be sent to you in early March after the survey closes. This report will give you insight into which performance indicators are being tracked by other companies. It will also help you assess where your company is in relation to the metrics movement: at the vanguard, about average, or adopting metrics more slowly than average. Also, if you provide your name and email address VisionEdge will enter you into a drawing for a $50 gift certificate from either Amazon.com or iTunes.
This should be a no-brainer for marketing leaders who care about demonstrating the value of marketing to their organizations and raising the stature of our profession in the C-suite and in general.
Click here to participate in the survey.
Gary
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October 12, 2009
If one could simplify the discipline of Marketing Operations to a few core components, the emphasis would probably be on process, technology, people and metrics.
Each of these areas is a significant challenge but the one that has the most people twisting their brains in frustration is undoubtedly metrics.
The CMO Council (CMOC), which represents more than 2300 senior marketing decisions makers who control more than $60 billion in annual marketing spend, is tackling this challenge through its highly acclaimed Mastering MPM Program. MPM stands for Marketing Performance Measurement and has become one of the standards among senior marketing leaders for developing useful metrics and measurement programs in their companies, programs that will improve ROI and increase the value, impact and importance of marketing in the business enterprise.
As a loyal reader of this blog, you can take advantage of M.O. Partners’ international relationship with the CMOC to received MPM training and certification at a substantial discount, even if you are not member of the CMOC. The Fall 2006 Mastering MPM Certificate online program is a three-month semester beginning September 11, 2006 and running through November 17, 2006. The cost is very nominal at $395 for M.O. Partners members. To take advantage of this program and the savings you must register by August 31 at http://www.mpmforum.org/register.asp? pid=mopa.
The curriculum consists of an initial audit of your individual knowledge by MPM faculty, readings of specially selected white papers and analyst reports, three webinars, and a final project that will be evaluated and graded and will provide the basis for your MPM Certification.
If you are a corporate marketer, the benefits are obvious. And the more people on your staff you can train, the better aligned your initiatives will be from plans to metrics. If you are a marcom specialist you’ll benefit from knowing how your clients will be measuring the work you do for them.
The time is right for this program. You can see how much more you can add to your professional development profile or that of your staff, by learning more at http://www.mpmforum.org/courses.html.
But…and this is very important…in order to secure the discount, you must register at http://www.mpmforum.org/register.asp? pid=mopa by August 31. This tells the CMOC that you are an M.O. Partners member and entitled to the special offer. The registration fee includes a one-year no-charge access to the CMO Council’s MPM Forum Library, alone a $250 value.
If you have any questions, you can contact the CMO Council at 650-328-5555 ext 120, or email Bob Nelson at bnelson@globalfluency.com
Gary
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June 4, 2009
May 28, 2009
The world of Web 2.0 and the age of accountability are on a collision course.
Social media offers a variety of new channels in which to engage with our customers and other stakeholders. The tempation is strong to shift from traditional marketing programs to primarily (or entirely) online marketing programs - especially during the worst economy many of us have experienced in our lifetimes.
But if we put most or all of our eggs in the social media basket, how can we ensure that we are getting the most from our investment of time and resources? How do we know we aren’t sacrificing effectiveness in our quest for greater efficiency?
Our resident expert, Jerry Hart, has given great thought to this challenge and has prepared a free 20-page white paper on why, when and how to get the most out of social media. You can register to download it here. When you download “Winning in a Web 2.0 World: Metrics-Driven Success,” you’ll also have the opportunity to participate in an online initial social media strategy and ROI assessment.
Jerry’s white paper is full of examples and illustrations, so the cost of admission — your e-mail address — is a great bargain.
Download it here.
Gary
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April 23, 2009
In Fall 2007 Marketing Operations Partners published the benchmarking study, “Journey to Marketing Operations Maturity.” At the time, the study found that the biggest challenge marketers faced was demonstrating measurable return on marketing. In addition, marketing accountability was identified as the key area where the greatest improvement was expected between current performance and near-term (one year) performance. The results from VisionEdge Marketing’s just-released Marketing Performance Management & Measurement Survey reminds us that a focus on accountability and measurement alone is not enough to realize our own self-expectations of improvement, let alone pacify our C-team. Gary
VisionEdge Marketing announced the results of its eighth annual Marketing Performance Management and Measurement (MPM) Survey. Two hundred and thirty business and marketing executives and professionals responded to the online study conducted mid-February through mid-March. This year’s survey results reveal three findings:
1. Marketing still has a long way to go in ensuring it is aligned to the business and measuring its performance.
2. Marketing still lacks the skills and capabilities to run like a business.
3. When it comes to customer-centricity, Marketing is not always looking at the right metrics. The findings from the study indicate that marketing still remains challenged with the basics of an MPM practice and is losing ground in its ability to represent its value to the company. The results show that while Marketing is still focused on MPM as a priority, Marketing and marketing professionals continue to be challenged with actually following through in practice. Despite continued emphasis on MPM, Marketing is losing ground in its ability to represent its value to the company. “Without improving marketing’s ability to measure performance, marketing will continue to see a gap in alignment with business objectives and will lack the ability to improve effectiveness and efficiency,” said Laura Patterson, president of VisionEdge Marketing. Last year’s survey results indicated four key disconnects. Unfortunately, this year’s findings indicate that gaps for two of these disconnects, alignment and metrics, still exist and that for two others, skills and best practices, the gap is increasing. Marketing leadership may believe they are aligned with the business, but in fact that is not the case as they are unable to show how marketing activities are linked to business goals, demonstrate how marketing impacts the business and measures its financial contribution. Six key takeaways from the study include: Marketing is still not making the grade. Marketing Leadership (CMOs/VPs) assume CEOs give them high marks when in reality only a small portion would actually give Marketing an ’A’. The real story is the disconnect between Marketing Leadership and CEOs. Only 17% of CEOs would give marketing an ’A’ where as 48% of Marketing Leadership thinks this is the grade they would receive. The Marketing Operations function is under utilized. While the majority of marketing organizations (80%) have a marketing operations department to institute an MPM practice, it is under utilized, lacking the necessary analytic skills, process, tools, and access to data to be effective. The majority of marketing operations organizations (60% or more) do not support performance measurement capabilities.
Satisfaction with data analytics, measurement and process skills still remains low. Despite the lack of satisfaction, training budgets to offset this gap remain minimal. Marketers don’t leverage best practices when it comes to MPM. Benchmarking and audits, considered a best practice, are typically not conducted on a regular basis or conducted at all. However, this contradicts the fact that marketers find following best practices important. The link between marketing and the business remains weak. There is a high expectation for executive and operational metrics that link to business goals to be reported on. But in practice, this is not happening and for many marketing organization there are no plans to track these metrics. Customer-centric metrics are too low on the metrics list. Economic conditions are forcing businesses to be more customer-centric and focus on customer retention. Only a third of the study participants track metrics such as length of customer tenure, purchase frequency and recency, and the value of the overall customer base. Even fewer track customer lifetime value and share of wallet. For a performance-driven marketing culture to thrive, marketing organizations are going to need to invest in the process, skills, tools, and data. The findings suggest Marketing professionals and leaders need to reskill, retool and put better MPM processes to improve marketing measurement and accountability. To go beyond activity reporting, marketers need training to enhance their analytics, process, measurement, and reporting skills. The 2009 Report, “Closing the Gap between Marketing and the Business,” provides the complete findings and can be purchased for $200 for a limited time, a 20% savings. In light of findings, VisionEdge Marketing’s book, Metrics in Action: Creating a Performance-Driven Marketing Organization continues to be highly relevant. Marketing Metrics in Action provides a roadmap to address the gaps identified in the study. The book covers topics such as how to create outcome-based metrics for your organization, develop a dashboard, and align marketing closer to the business. The book can be ordered directly from the publisher.
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