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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 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
January 26, 2010
January 11, 2010
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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Is Marketing Operations a key part of your job?
- Are you leading or in the process of establishing an MO function?
- A member of the MO team?
- A member of the marketing, sales, operations, customer experience, strategy, finance, quality or IT staff who needs to align with Marketing Ops to do your job and help your enterprise succeed
- Interested in Marketing Operations as a career
- A vendor, consultant, integrator or business leader who wants to align your organization or clients to Marketing Operations best practices
If MO is core to your career and/or your organization, you owe it to yourself to build your Marketing Operations competency. You need to know what you don’t know and learn what you need to know.
For the first time, you can make a commitment to that professional development in a structured, focused, self-paced setting through UCSC Extension’s Marketing Operations: The Engine of Marketing, a new 7-week online course beginning January 25 and taught by me, Gary Katz.
Today is the last day to register for the class to save 10% on the tuition. Spread the word!
Following is a complete description:
MARKETING OPERATIONS: THE ENGINE OF MARKETING
Course Description:
Marketing can be the growth driver, the voice of the customer, the agent of change in organizations. But the sad reality is that today’s Chief Marketing Officer has an average tenure of just over 26 months, less than half the time of the average CEO. This brief tenure has motivated many Marketing leaders to take a short-term and tactical orientation, which has led to Marketing having limited scope and influence within many organizations. The inability of Marketing to demonstrate its long-term value has, in turn, led to slashed budgets and head-count. The age of the ”individual contributor” director is upon us and Marketing is no longer a fun job at many companies.
Marketing Operations is an evolving discipline that brings operational discipline and a change management approach to the marketing function to literally transform how we are viewed internally and how we see ourselves. By adding a dedicated Marketing Operations focus, organizations can leverage process, technology, guidance and metrics to run the marketing function as a profit center and a fully accountable business. By embracing Marketing Operations, professionals can increase their value and raise their stature within their organizations, while enhancing their job satisfaction and career opportunities.
Topics Include:
- Marketing operations ecosystem
- Interdisciplinary tools
- Achieving organizational alignment
- Designing, deploying and managing marketing infrastructure
- Marketing operations lifecycle.
Applies Towards the Following Certificate(s) & Award(s): Certificate Program in Marketing Management
Register now.
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October 18, 2009
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