Applying 80-20 Principles To Marketing Automation ROI

 

Marketing Automation – The Basics

If you are like most Enterprise Marketers, your Company has implemented marketing automation within the past couple of years. You have your first set of lead nurturing programs in place. Your landing pages are built and are capturing inbound leads. You may be the 1 in 4 marketers who have implemented some type of lead scoring. You are starting to think about the ROI on your marketing automation technology investment. That’s bound to come up at budgeting time for next year. You also want to know, are you spending your limited time and resources on the right priorities? Are you asking all the right questions to maximize your ROI? Are you optimizing the right knobs, and pulling the right levers?

Your “First Order” Metrics

As you think of your marketing spend across technology and programs, here are some key measures that you may be tracking already:

  • Top of Funnel: Number of net new leads generated for your revenue funnel this month.
  • Mid and Lower Funnel: How leads are progressing through your revenue funnel, as they move from prospects, to sales-qualified-leads (SQLs) which then turn into opportunities (Opps) and deals-won

Some key metrics you may be tracking already include:

  • raw leads that turn into prospects (paid) by channel e.g. $82
  • raw leads that turn into prospects (organic) e.g. 40%
  • cost per lead by channel, and average across all channels e.g. $120
  • % leads that turn into opportunities e.g. 6%
  • cost per opportunity e.g. $2000
  • opportunity/customer e.g. 33.5%
  • cost per customer (deals-won) e.g. $5,900 on say $30,000 in annual contract value
Are we separating the forest from the trees?

As we work with many enterprise B2B customers, we see a lot of energy that goes into driving for the lowest cost possible for raw leads. But if you really think about it, here is how it all breaks down for the typical B2B demand generation process:

  • Let’s say your raw leads cost anywhere from $30 to $150 for a product or service that generates $30,000 in annual contract value.
  • By the time these leads are nurtured, and turn into an opportunity, your costs are up at $2000 per opportunity.
  • Assume that it takes 6 to 10 additional (say 8 on average) mostly “digital” touches before you can turn a lead into an opportunity.
  • Each lead nurturing “digital touch” of the prospect will therefore cost you around $250. Now factor in the elapsed time between touches, and the number of different nurturing email campaigns and content offers needed to get to a qualified lead that turns into an opportunity. The impact or value of each successful “digital touch” with a prospect is in fact a lot more!

Question:  Are you better off by focusing on new ways to accelerate “digital touches” by your existing prospects? Will that have greater impact on your revenue than focusing on optimizing cost per raw lead? [Our quick take: YES!]

80-20 Principles for Marketing Automation ROI

You have made a significant investment in your marketing automation technology.  We understand that any new campaign strategy or technology that you add into the mix needs to seamlessly extend and dramatically improve what you do today.  Here are a few 80-20 principles for you to think about, as you look to maximize your ROI:

More than 80% of your prospects will never visit your website! It’s just the way it is. They are out on the web, and you need to reach out, engage, profile and capture information about them, right where they are! They are influencers, even decision makers for your  B2B complex sale cycle. They may have a voice in the purchase decision, but may not know your brand at all.  They are the “other 7 people in the room”, and when one of them is in your marketing automation database, you have only reached 1 out of 8 of them, via your own website!

We have thought a lot about this. Instead of waiting for your prospects to come visit you, why not go out to them? Build and deploy branded, cross-channel campaign assets, everywhere. Apply a range of tactics with smart polls and mini surveys with targeted offers, smart banners with content offers, and branded, in-banner lead forms with offers. Catch your prospects where they are, engage, gather insights, have a conversation, and influence them.

Not just 80%, but 100% of your prospects today remain “unknown” to you outside your website, and that is a significant missed opportunity! Just imagine if you could engage with all prospects that are “known” to your marketing automation platform, all across the web. Serve them highly relevant messages, promotions and offers since you know who they are. Then record their interactions back inside your automation system.  You can now accelerate your high impact lead nurturing cycle not just inside your own outgoing email campaigns, but all across the web!

80% and more often, 90+% of your prospects will not click through your lead nurturing email to your landing page. They may completely miss your primary call to action. This is why you will want to drop in a “secondary” call to action such as an in-email poll, where you learn a bit more about the prospect, but then send them on to the same landing page to drive additional clicks and conversions.  You can get not just one, but two “digital touches” completed. One via the poll, and the second on your landing page when you get them to download an asset, or register for a webinar. Again take any insights you can collect back into marketing automation to accelerate lead nurturing.

Not just 80%, but over 99% of your prospects are unlikely to ever click on your banner ad or promotion. Typical banner ad click through rates are well under 0.1%. Since this is a critical channel to reach a new set of prospects, it becomes all the more important that we engage with each prospect effectively. Present targeted promotions with A/B testing, or better yet, personalize the promotion using intelligence on the prospect’s target account, or other attributes of the individual prospect, straight from your marketing automation system. This is the only way to maximize your paid media ROI, and tap this channel effectively.

Not just 80%, but well over 95% of B2B marketers are yet to generate leads from social media. We are seeing that folks are interested in doing this, but very few have taken the steps necessary to make it happen. We have been fortunate, in working with a few B2B “trailblazers” who have had good success with this type of program. SAP, for instance, recently ran a campaign on Facebook that saw a 5X relative to their landing page conversion rates!

There is much to discuss around marketing automation ROI, applying 80-20 principles, and how to keep things simple around measurement and metrics, while executing on the highest impact strategies. Have more questions? Drop us a note. Or please leave us a comment below with your thoughts.

Kwanzoo News Updates – April 2012

In this issue:                                                                       04/18/2012

Features update: Lead nurturing beyond your website
Focus Roundtable: May 1st, 1 PM PT/4PM ET
Meet the Kwanzoo team at local marketing events

New Feature: Nurture Leads Everywhere, Not Just on Your Website

Kwanzoo units already enable lead capture everywhere. Eloqua customers can now use Kwanzoo polls & lead forms to nurture leads well beyond their own website. Kwanzoo units, regardless of where they are placed, can now identify visitors who are “known” in the customer’s Eloqua database.

Easily configure Kwanzoo to capture each known visitor’s poll responses, and content download actions, back inside Eloqua. Associate all the new visitor actions and data with a specific Eloqua contact record. Drive additional Eloqua program steps based on the data appended. Nurture and qualify leads faster, to dramatically impact revenue.

Focus Roundtable: Cutting Edge Content Marketing Strategies, May 1, 1 PM PT / 4 PM ET

Explore new approaches that can significantly boost your B2B content marketing initiatives. You’ll learn how to

  • Manage buyer personas, offers and content assets across your marketing automation and CMS systems  
  • Use new self-service platforms, tools, and interactive approaches that empower marketers to better match prospect interest  
  • Measure campaign results and integrate data and insights across platforms 

Register Now

Meet us at your local marketing events

The Kwanzoo team will be present at the following events in the Bay Area and we would love to meet you in person. Contact us to set up a meeting:

Eloqua’s Road to Revenue, 4/26: A forum for all marketers to learn the latest ideas and practices that can help you and your organization excel.
Marketo User Summit, May 22-24: Listen to the experts on marketing automation, sales effectiveness, and the three words that changed marketing forever — Revenue Performance Management.

Regards,
The Kwanzoo Team

Kwanzoo News Update – November 2011

Welcome to our November Newsletter!

It’s that time again to reflect on the year gone by and plan for the year ahead.  This month, we launch our 5 part series on B2B marketing trends for 2012 as we turn our attention to what will matter most to marketers in the new year. In other news, Kwanzoo added Salesforce.com support to our latest Platform release. Our Eloqua Partnership was covered by DemandGen Report and much more. Read on…

B2B Marketing 2012 Trends Part 1: Maximizing Your RPM Investment

This past year saw the growing adoption of Revenue Performance Management (RPM) systems at mid-to-large enterprises. But how do we as marketers make the most of this investment? Follow our 5 part series as we explore this and other 2012 B2B trends. New installments will be added to our blog each week. Read Part 1->

Kwanzoo at Online Marketing Summit, Feb 6-10, 2012

Join us at the premier global online marketing education conference in San Diego and take part in over 100 high-impact sessions, workshops and case studies covering email marketing, search marketing, demand gen, mobile, and much more! Meet over 1,500 of your marketing and internet peers. Save 25% on registration->

Coming in January! Webinar: Kwanzoo + Eloqua – Trends in B2B Engagement Marketing

Eloqua CTO Steven Woods and Kwanzoo CEO Mani Iyer will be co-presenting a Thought Leadership webinar in January 2012. Date to be announced soon. Follow @Kwanzoo on Twitter for updates.

Kwanzoo in the News

DemandGen Report interviewed our CEO, Mani Iyer onKwanzoo’s impact on B2B Marketers.

Business2Community posed 6 thought-provoking questions to us on social media.

Ready to launch a Kwanzoo campaign?

B2B Marketing 2012 Trends Part 2: Campaign and Funnel Automation

[Note: This is Part 2 of a 5-part post. You can read Part 1 here. We will have a new post up each week. Want to be notified when the next post is up? Just enter your email address and hit “Subscribe”, or follow @kwanzoo on Twitter.]

The World Today for B2B Marketers
If you are a marketer at a mid-to-large B2B enterprise today, you and your colleagues probably work with a broad mix of marketing systems and tools. Here are just a few of them:

Website Tools:

  • Content Management System (CMS) to manage your corporate website
  • Blogging system (WordPress, Typepad or similar) to run your corporate blogs
  • Community Management platform (Open Text, Lithium, or similar) where your prospects and customers can interact with each other
  • Analytics tools (Omniture, Webtrends, Coremetrics, or similar)
  • Landing page building tools (Adobe Test-and-Target, or similar)

Marketing Infrastructure:

  • Marketing Automation / RPM system (Eloqua, Marketo, or similar) to understand prospect and customer behavior on your website, and nurture with emails along your sales funnel
  • One or more email marketing systems for push campaigns, third party email lists to drive more inbound demand

Advertising & Media Buying:

  • Ad platform, that may be hosted and managed by your Agency partner to help drive brand awareness, and generate more top-of-funnel leads
  • Media yield optimization platforms & tools
  • A range of third party ad networks (PPC, Display, Remnant, Text Links, Media Exchanges)
  • Affiliate networks (Commission Junction, or similar) and partner marketing systems

Social & Mobile:

  • Social presence (Facebook pages, corporate Twitter accounts, LinkedIn Groups)
  • Mobile platform, for your mobile website, mobile apps, and more

And we’ve probably missed a few other tools, for data cleansing, sales outreach (Salesforce.com), customer service, data segmentation, customer feedback, and more.

The 2012 Imperative: Do More, Do It Better, Across More Channels
As you sit down with your colleagues, and go through your 2012 planning exercise, you are probably pondering these questions:

  • What can we do in marketing that could be a “Game Changer” in terms of driving revenue for our business?
  • How can we turn each $1 in technology investment into $3 or more in ROI?
  • How can we empower our existing staff to be 2X or more productive? How can we best leverage their time, so we optimally tap their knowledge of the business to drive results?
  • What should we do about social? Mobile? Increasing campaign relevance to the user regardless of the channel where they interact with our brand?
  • Can we deliver on everything we need to, while still having fun, and not have too much to do everyday?

The Core Issue: We have Single or Dual Channel Tools for a Multi-Channel World
As you go down the list of marketing systems and tools, you will notice something interesting. Most of these systems were designed before we started seeing the recent  explosion of marketing channels. Traditional B2B marketing occurred primarily over 3 online channels – email, website, search/display and 1 offline channel – the sales rep on the telephone to the prospect. Many of these tools pre-date the more recent social and mobile channels, and richer data (geo, company, industry, and more) that is now available on the online visitor or user.

The world today has changed. Your customers and prospects are everywhere. And no system can assume that your prospect will make contact with your brand, or engage with your business, only through that specific system’s sphere of control. All marketing systems need to integrate better with each other, to greatly improve the end user experience.

A New Approach to Campaign Design
The traditional B2B campaign execution model assigned different owners for each of the marketing channels, who planned and executed their own campaigns. There is a limited level of campaign concept re-use across channels. While the concept of the B2B “Buyer’s Journey” as discussed by Christine Crandell, Babcock Jenkins, and the Content Marketing Institute  among others makes a lot of sense, a key challenge for B2B marketers is translating conceptual marketing models into campaigns, that deliver both a superior experience to the user, and the desired ROI for the marketer.

Reusable Campaign Components
It is now possible to think in terms of small re-usable campaign components that reinforce the brand, engage the prospect, customer or web visitor, learn more about what they are interested in, and direct them to the most appropriate marketing offer or content asset. These re-usable, interactive, content units (or ad units) can be quickly deployed across all channels where the concept will resonate with the audience.

Interactive Experiences on Every Channel
It’s now possible to rapidly A/B test and multi-variate test multiple campaign concepts, make changes in real-time, and iterate to an optimized campaign execution. As users get more sophisticated in their demand for richer content format experiences (polls, mini surveys, social experiences, videos, slides – all enabled for social sharing and lead capture), we will see these content units deliver similar experiences everywhere. The typical campaign flow will change from banners prompting users to click through to landing pages and fill-out lead forms to rich, interactive branded experiences everywhere. Provide the user a rich experience, ask questions to learn more about them, adapt incentives and rewards to best fit their interests, then seek their opt-in, or word-of-mouth mention or support of the brand with their business colleagues and friends.

A New Way to Look At Existing Templates & Pages
By thinking in terms of re-usable campaign components, instead of an entire web page, landing page, email template or Facebook page, marketers can put themselves in the shoes of their prospects and customers, and think more carefully about how to make each interaction with the brand across channels more interesting, and rewarding for the user.

Here at Kwanzoo, we have thought hard about how we can make it easy for marketers to create and manage such campaign components, easily embed them everywhere, enable A/B and split testing, display the most relevant version based on all known information about the visitor, track the analytics, and help improve all of the ongoing campaigns across marketing channels.

Funnel Acceleration: Grow Insights from Campaigns you have Already Run
It is well known that the B2B prospect does not want to be over “touched”. Thus it’s important that each touch is carefully planned. Each touch is an opportunity to move the prospect further along in a long sales cycle. By leveraging known intelligence about a prospect, and combining that with highly relevant question-based engagement of the prospect, marketers can now gain specific insights, very quickly, directly from the prospect, to accelerate the sales funnel. Managing and executing this entire process inside lead nurturing emails, with the right questions presented to the right prospects, in the right sequence, can result in  significant sales funnel acceleration.

Shared Intelligence Delivers Higher Relevance
Another key recent learning for us has been the power of sharing intelligence, insights, data and objects between an RPM system (such as Eloqua) and a platform for managing re-usable, interactive content units (such as Kwanzoo). Imagine being able to drag-and-drop interactive content units developed on Kwanzoo, onto the Landing Page builder or Email Template design tool inside your RPM system. What if you could instantly drop in an interactive poll, survey, tell-a-friend social promotion so they show up on any web page or email?

When these interactive units are served on a third party media site for a paid media placement, or on a display ad network, imagine being able to target your campaign concepts, creative, and delivered content offers and assets precisely to a web visitor based on her affiliation with a specific Company or Industry. Then collect a lead right inside the unit, and send the user onto a content asset (with no landing page involved). We are not alone in seeing this as the next opportunity for B2B marketers. The good folks at Babcock Jenkins are also recommending Target Account-based marketing as a key B2B initiative to consider in 2012

Wanted: Campaign Dashboards for Non-Geeks
As marketing channels proliferate, and enterprise marketers look to automate campaign execution, and accelerate their sales funnel it becomes even more critical for all marketing systems to support push and pull of campaign and funnel metrics from other systems into a centralized dashboard. It really should not matter if your campaign views are built around your RPM system, your CMS platform or your website analytics engine.  As a marketer, you want to be able to review, analyze and optimize your ongoing campaigns, quickly and easily.

We may not get it all in 2012. But these sure are exciting times. We look forward to working with all of our B2B, B2C and Events customers, as you consider  your campaign and funnel automation plans in the new year. Questions? Are there more discussion points that we’ve missed here? Please drop us a note or write a comment below.

p.s. Also see Part 1 of this 5-part Blog Post series here, B2B Marketing 2012 Trends Part 1: Maximizing Your RPM Investment

See Part 3 – Go Social, Go Cloud without ITwhere we look at new opportunities for marketers to incorporate social and cloud technologies, and enable social interactions, and tap social data and insights when engaging prospects.
You can also hear us discuss some of these ideas and approaches in our Insights Webinar with Eloqua. Catch it live or recorded here.