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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.
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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 15, 2010
January 26, 2010
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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October 11, 2009
Yep, Marketing Operations 2.0 is really upon us! I’m going to be presenting a web seminar on the topic, “Marketing Operations: MObilizing Marketing in a Web 2.0 World” for the Business Marketing Association on Tuesday, October 20 at 10:30 a.m. Central, 8:30 a.m. Pacific time. Check out the details below:
BMA Web Seminar
Date:
October 20, 2009
Time:
10:30 a.m. CST
Cost:
BMA Members — No Charge
Non-Members — $99
Registration:
- Click here to register.
- Reserve your slot in the web seminar. After registering, a receipt page will open. On this page, click the link asking you to reserve your slot to complete the reservation process.
This BMA web seminar, led by Gary Katz, CEO of Marketing Operations Partners and founder of the Marketing Operations Future Forum, details the emergence of MO 2.0, how it intersects with Web 2.0, what it is, the types of challenges it addresses, why it’s important and how it evolves toward maturity within organizations.
Web Seminar Details:
The new marketing paradigm we know as Web 2.0 and its sidekick, Social Media, have captured our imaginations. Complementary concepts have emerged of late to reinforce these new visions of stakeholder engagement: Inbound Marketing, Marketing 2.0 and Sales 2.0.
But none of these new models of engagement will reach their vast potential if not supported by a driving force from within the organization – one that delivers the same type of systems approach and collaborative framework that Web 2.0 provides externally.
Marketing Operations 2.0 (MO 2.0) is that MObilizing force.
The emerging discipline of Marketing Operations 2.0 is integral to helping enterprises manage this transition from the old to the new. As focus intensifies on organizational transparency and accountability, a key role of MO 2.0 is to help enterprises stay in integrity by ensuring that their deeds match their promises. Where once marketing was valued for its creativity and ability to put a compelling spin on company activities, MO 2.0 integrates operational muscle, measurement rigor and holistic, cross-functional alignment behind the marketing strategy and associated tactics.
Gary
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August 25, 2009
In previous posts, I’ve mentioned Bernie Borges of Find and Convert, a good friend and Social Media guru whose new book, Marketing 2.0: Bridging the Gap between Seller and Buyer through Social Media Marketing, recently became available on Amazon. At just $15.61 for 312 highly-readable pages, Bernie’s book is a real steal. I should know. I was one of the book’s early reviewers, and liked his thinking so much that I agreed to contribute a chapter on Marketing Operations 2.0 and be one of his commenters on the book back cover.
Here’s what I had to say about this timely, highly relevant and impactful book:
“Marketing 2.0 helps CEOs and CMOs navigate the new social web by providing a roadmap and driving instructions to our desired destination. Bernie skillfully explains the history of the Web 2.0 phenomenon and the lay of the land, warns us about the road hazards, and spells out the potential rewards. With these new social media tools at our disposal, marketing will never be the same again. Small companies can now compete on an even playing field with giants. Large companies can become irrelevant in the blink of an eye if they fall asleep at the wheel. In short, Marketing 2.0 is a must read for anyone in business who wants to succeed with social media marketing.”
Now, sure, I gussied up my comments a bit, knowing they were going to be in print for posterity. But this is truly one great book. And the opportunity to glean so much of Bernie’s insight in the equivalent of a playbook is a real gift to social media marketers everywhere, whether you are a newbie or a seasoned professional.
So break out your credit card, go to Amazon and start reading this insightful book today. And once you’ve finished this great read, I strongly suggest you contact Bernie to get help translating the fundamental understanding he provides into a customized strategy that harnesses the power of Social Media and Marketing 2.0 to achieve your organization’s objectives.
Gary
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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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May 4, 2009
by Gary Katz
Web 2.0 has transformed how most organizations do marketing from the outside in. It provides us with:
* New channels and tools to more efficiently reach our audience
* A collaborative platform to engage and dialogue with customers and other stakeholders
* A greater focus on organizational integrity and transparency (often due to external scrutiny)
It provides:
* New initiatives and tools to strengthen operational muscle and agility
* A holistic framework to mobilize cross-functional alignment and accountability behind Marketing strategy * A greater emphasis on organizational integrity and transparency (ideally due to a proactive desire to align external messaging with performance, before the organization is scrutinized)
While Web 2.0 provides the state-of-the-art external transportation system (the latest version of the Information Superhighway), MO provides the internal transportation system and supporting infrastructure. This includes:
* The entire vehicle – including the engine and other subsystems (the means of transportation)
* The highways, roadways and bridges (the integration elements)
* The traffic controls, signals, rules of the road, law enforcement (marketing/brand governance)
* Mechanics equipped with testing, calibration and alignment tools to maximize the vehicle’s performance (optimization)
* Driver’s education and training (competency development)
* The roadmaps and navigation resources to get from here to there (strategic direction/shared vision)
You get the picture.
No surprisingly, savvy executives are embracing MO because they see how it can help them (the navigators) and their program managers (the drivers) to plot the optimal course to reach their destinations inthe new world of Web 2.0.
Defining Marketing Operations
As a relatively new discipline, it’s important to have a common understanding of what is meant by Marketing Operations.
Marketing Operations is 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 enabling infrastructure. In addition, MO seeks to nurture a collaborative, well-aligned ecosystem, both within and outside the Marketing department, to drive achievement of enterprise strategic objectives.
A key vision for Marketing Operations is to help transform the Marketing function from a service organization (think marcom shop or tactical vehicle) into a vital strategic partner for the CEO and the rest of the executive team.
To accomplish this lofty objective, MO needs to help Marketing substantially raise its game. Here’s how:
* Convert insight to value
* Accelerate the Sales and Buying process
* Scale the Marketing function for growth
* Deliver the enterprise strategic agenda
* Maximize customer profitability
* Demonstrate measurable Return on Marketing
Convert Insight to Value
Many companies are guilty of under-investing in their marketing intelligence. Even those organizations that invest heavily may lack confidence in the integrity of the data or data source. Knowledge gaps are prevalent, as insight tends to stay in the field. Disagreement over how to interpret a “fact” is the norm. Often, because executives don’t hold one another accountable to explain the assumptions underlying their thinking processes, the modus operandi is “gut feel” and seat-of-the pants decision-making. Power and authority tend to rule the day, not necessarily the best business case.
MO uses tools such as gap analysis, win-loss analysis, SWOT analysis, competitive and industry benchmarking, surveys and customer advisory boards to document key lessons, anticipate market/customer shifts, benchmark against best practices, better understand where customers are in the buying cycle and create innovative, customer-driven products and services. Marketing needs to be more than a data aggregator. Marketing needs to be a key center of business intelligence for our enterprises – an integral resource to empower them to make the best decisions possible, to become learning organizations.
Accelerate the Sales and Buying Process
Marketing is typically vested with generating sales leads, but often is seen as guilty of providing Sales with unqualified leads. The result, according to Sirius Decisions, is that only 20% of the ”leads” from lead generation programs are followed-up by Sales, 70% of which are disqualified. Shockingly, 80% of those “disqualified” leads buy anyway, within 24 months – from the company, or worse, a competitor. A key role of MO is to ensure that the campaigns and sales tools Marketing develops are geared toward enabling Sales to help its customers to buy. We must actively work to align the prospecting, selling and buying processes. We need to take ownership of lead nurturing – proactively identifying and addressing the “low touch” prospects that are not ready to buy today and need to be nurtured through the sales funnel. Tools such as lead scoring methodologies and automated permission-based lead nurturing systems and processes enable Sales to focus on “high-touch,” ready-to-buy qualified leads. We can also apply this same nurturing strategy to the customer reference challenge. We can build a pipeline of qualified customer references that support both Sales and Marketing requirements and ensure that our customer reference assets are a renewable resource. By providing this type of value, MO can help the Marketing-Sales brotherhood become a true partnership, rather than an antagonistic relationship.
Scale the Marketing Function for Growth
As companies grow, they tend to become increasingly complex, and, correspondingly, inefficient. This tends to lead to poor resource utilization, siloed thinking, duplication of efforts, ineffective knowledge transfer and a variety of other ills.
MO must tackle this challenge by conducting regular ‘health checks” to determine investment leverage areas, uncover inefficiencies and define a prescriptive or “shared vision” (depending on the need) roadmap for change. It is incumbent on marketers to take responsibility to manage what seems like “unmanageable complexity,” using all the tools at our disposal as appropriate: charter definition, roles and responsibilities clarification, rules of engagement, process mapping and design, business cases, best practices documentation, knowledge management, centers of excellence and, of course, marketing automation. Marketing automation is listed last on purpose. Most companies lead their Marketing Operations efforts with marketing automation (CRM, campaign management, Marketing Resource Management, dashboards). The tough lesson learned is that technology is a means, not an end in itself, and that the most successful marketing automation deployments are holistic in nature. They are specified and built from a comprehensive understanding of the enterprise’s knowledge, its cross-functional processes, its culture and its business objectives. Marketers must ensure that marketing automation investments are embraced and utilized – through executive-level sponsorship, education, socialization and enlisting stakeholder champions and data stewards.
Delivering the Enterprise Strategic Agenda:
Marketing has a significant opportunity to play a more influential role at the enterprise strategy table. In order to do so, priorities must be aligned with the enterprise strategic agenda.
Through methodologies such as messaging alignment, building shared purpose and vision, and marketing governance aimed at helping the organization “live the brand,” a vital role in linking strategy to execution is created. Perhaps most importantly, through education and socialization to achieve buy-in for new Marketing initiatives, change is catalyzed both in- and outside Marketing to overcome employee ambivalence, confusion, resistance and passive-aggressive behavior that can be unintentionally or consciously transferred to customers, partners, press, analysts and other target audiences. In short, MO can raise the stature of Marketing from a perceived cost center and a resource drain to a valued strategic partner.
Maximizing Customer Profitability
Thanks to the level playing field the Internet provides, customers are becoming more sophisticated than ever. As a result, it’s continually more expensive to entice new customers in the midst of exponential fragmentation of advertising technologies and venues. Companies that can retain high-value customers have great advantages in cost reduction, market share, price premium and profitability compared to those companies that focus on customer acquisition alone.
Some of the approaches used in MO to optimize customer profitability include Customer Lifetime Value and Customer Franchise Value calculation; capturing Voice of the Customer through advisory boards, user groups, blogs, surveys, complaints and other forums; mobilizing customer-facing resources to meet customer expectations; and refocusing resources to win back at-risk customers. A key part of a marketer’s value proposition is linked to the contribution toward helping our enterprises to retain their best customers and give them the best customer experience possible.
Demonstrating Measurable Return on Marketing
Most executives view the ability to demonstrate Marketing’s value, the return on Marketing, as the Holy Grail for MO.Over the past decade in particular, company executives have demanded, with growing intensity, clarity in the return on investment related to marketing expenditure. In many companies, this has put Marketing in a defensive position to prove its value to the organization, to quantitatively select marketing projects with the highest expected return, and to prove the necessity of funding its marketing strategies and staffing levels through compelling business cases – often with a short-term orientation.
MO is vested with overcoming this challenge through strategies such as metrics definition; linking CEO-level goals and to activity-level goals via a cascading methodology; identifying and tracking leading and lagging indicators through dashboards and balanced scorecards; tracking and managing individual and team performance; and fine-tuning forecasting with predictive modeling. By putting operational focus on the measurement process, MO enables Marketing to be more accountable and in better control of its charter, its resources – and ultimately – its destiny.
The Potential Impact of Marketing Operations in Organizations
Since it is still in its relative infancy, Marketing Operations is often viewed in a limited way – as a service organization or an efficiency vehicle or “the process police.” This narrow view of Marketing Operations reinforces and perpetuates the status quo of Marketing. What we need is a new modus operandi for Marketing, and a holistic, strategic approach to Marketing Operations can be the vehicle for change.
It’s hard work and it will be a challenge to unlearn some of our old ways of thinking, but a new modus operandi for Marketing in organizations holds great promise for executives and marketers alike.
If you’re a marketing professional:
* You’ll be in a stronger, less vulnerable position when budgets are scrutinized
* You’ll be part of a learning-oriented environment where you’ll develop the fundamental skills and enabling infrastructure to operate effectively, stay accountable, and benefit from Marketing Operations-driven improvement programs, such as new competency development
* You’ll be happier, better utilized for your unique talents and more motivated to stay with your organization
If you’re a CMO, you’ll be blessed with:
* An injection of left-brain thinking into the typically right-brained Marketing function
* The means to shift your enterprise’s priorities from short-term fixes to long-term strategic initiatives, increasing your likely tenure.
* An operational partner – a Chief of Staff – that is solely focused on optimizing your scarce resources, making course corrections, measuring results, and winning enterprise-wide support
If you’re a CEO:
* Your cross-functional teams – Marketing, Sales, IT, etc. – will work in greater collaboration and alignment, mobilizing your resources
* Your employee turnover and, consequently, your customer churn, will decrease
* Your Marketing function will contribute more substantially toward your top- and bottom-line growth, achieving your enterprise strategic agenda and helping you win in the market
Resistance is futile. It’s in your best interests to fully embrace a holistic, strategic view of Marketing Operations (Marketing Operations 2.0) today. No matter what role you play in your organization, MO is the best means to navigate toward your personal, team and enterprise goals inthe new world of Web 2.0.
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