Download considerations for marketing automation

Should We
or
Shouldn’t We?
Considerations for
Marketing Automation
Marketing automation may be in your future,
but there are solutions that can fill your current
needs with fewer challenges
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TABLE OF CONTENTS
Introduction3
The Current State Of Marketing Automation 5
The True Cost Of Marketing Automation 6
A User’s Perspective 7
Specialized Tools To Get The Job Done 8
Finding The In-Between Solutions 9
Conclusion10
About netFactor and Demand Gen Report 11
Should We or Shouldn’t We? Considerations for Marketing Automation | 2
Should We or Shouldn’t We?
Considerations for
Marketing Automation
Marketing automation may be in your future, but there are solutions that can
fill your current needs with fewer challenges
Introduction
Today there is a lot of noise in the
marketplace regarding marketing
automation, making it a challenge
to manage the wide range of
solutions and processes currently
in place, much less devise a
strategy for the future. While
many companies aspire to get to
the “promised land” of ultimate
marketing automation integration,
not everyone has the need, budget
or resources for such a major
commitment.
The marketing automation space
is growing at a rapid pace.
Marketing automation revenues
are expected to hit $750 million
by the end of 2013. Specialist
vendors, such as Eloqua, Marketo,
Infusionsoft and HubSpot, account
for $525 million revenue, according
to the 2013 B2B Marketing
Automation Vendor Selection Tool
(VEST) report by Raab Associates,
a marketing consultancy. That
leaves a great deal of investment
in solutions that address specific
pain points. Industry estimates put
the adoption rate of marketing
automation in the range of 10%
to 35%, so clearly there are
opportunities for in-between
solutions.
Another driving factor is that
budgeting for B2B purchases
has shifted significantly in favor
of unbudgeted purchases.
These are projects that were
deemed necessary after looking
at a solution’s impact on other
adopters and building an internal
business case for the solution.
This has resulted in more ad hoc
purchases to address a specific
concern, necessitating the need
to integrate more disparate
technologies.
Marketing automation is not a
quick panacea, as many marketers
have discovered. “If you think
marketing automation will change
your life, it won’t,” said Dela Quist,
CEO of Alchemy Worx, in an
article titled Email Marketer Insight:
What’s next for email? in the Sept.
16, 2013 issue of BtoB Magazine.
“In theory, if you have everyone
on your list and you’ve worked out
the perfect frequency and have
all the perfect offers, maybe the
only place left is to use marketing
automation tools. But the point is,
most marketers are far away from
that stage.”
The marketing automation space is
growing at a rapid pace. Marketing automation
revenues are expected to hit
$750 million by the
end of 2013.
Should We or Shouldn’t We? Considerations for Marketing Automation | 3
If the time is not right to invest in
a full-blown marketing automation
system, what can companies
do in the meantime to make sure
their investments are working
effectively as they build on their
success?
Only
62% of
companies
that have adopted
marketing
automation say
they are “strong”
or “full” adopterS.
Some of the topics to be covered in this white paper include:
• While the goal is to have the most up-to-date marketing automation
platform, companies must take into consideration the marketing
teams and growth plans as they plot to get to the next level. Many
companies that have marketing automation are not using all of the
capabilities available.
• One of the biggest challenges of today’s marketers is the fact
that B2B buyers complete anywhere from 50% to 75% of their
research online before ever contacting a salesperson. Due to their
preference to engage with sales later in the process, many do not
identify themselves when they visit web sites.
• As the responsibilities of the marketing and sales departments
blur and companies restructure their teams, it will be increasingly
important to integrate solutions to meet changing demands of
today’s dynamic environments.
• Among the tools available, technology that identifies “anonymous”
visitors to your web site can help gather vital information that will
improve the chances of converting a lead to a sale. Sending out
an alert when a particularly “high-value” prospect visits your web
site, even anonymously, is essential to success as many marketers
are now being held responsible for meeting revenue goals and
conversion rates.
• Being able to reach to the prospect when they are most likely to be
engaged can improve the chances of a win.
Should We or Shouldn’t We? Considerations for Marketing Automation | 4
Roadblocks
To
Success
52%
Generating the
Firms That
quality of leads
expected
37%
Generating the quantity of
leads expected
Source:
Lead
Generation
Strategy
Outlook
Report
from
Ascend2
20%
Implementing
marketing automation
Froze
Or
Reduced
Marketing
Spend
201231.7%
201342.5%
Source:
2013 Lead Management
Optimization – Key Trends
Analysis from CSO Insights
The Current State Of Marketing Automation
Marketing automation systems
have generated a lot buzz over
the past several years, due to
the increased number of mergers
and acquisitions, as well as the
heightened interest in trends such
as content marketing.
While marketing automation
is making inroads at many
B2B companies, adoption and
implementation rates are still
below 50%, and many companies
are not using all of the capabilities
of their marketing systems,
according to a study by BtoB
Magazine. The study revealed that
46% are currently using marketing
technologies in some form, while
another 20% are evaluating
platforms to adopt.
Even those who have adopted
marketing technology are not
using their systems to the fullest.
Among those marketers currently
using marketing technology, 62%
said they are “strong” or “full”
adopters. When asked about the
obstacles that are preventing them
from using marketing automation
more effectively, one third of
respondents to BtoB Magazine’s
survey cited budget constraints.
Marketing budgets are expected
to remain lean for the foreseeable
future. According to the report
2013 Lead Management
Optimization – Key Trends
Analysis from CSO Insights, the
percentages of firms that froze or
reduced their marketing spend
for the year increased from 31.7%
in 2012 to 42.5% in 2013. These
findings indicate that marketers
must find creative, lower-cost,
higher-return solutions as they
look to support the sales effort.
Marketers are also feeling the
pressure to ensure that as many
leads as possible turn into sales.
Generating the level of lead quality
expected by sales is consistently
the most challenging obstacle to
success, according to the Lead
Generation Strategy Outlook
Report from Ascend2. Generating
the quality of leads expected was
cited by 52% of respondents as a
roadblock to success, while 37%
reported that they were hampered
by the ability to produce the
quantity of anticipated leads. Only
20% cited implementing marketing
automation as a factor that was
holding them back.
“In some cases
it can be
three
times the
cost
of marketing
automation — if not
more — to develop
all of the content
and processes
necessary to fully
power a marketing
automation system”
-Brett A. Schklar, CEO,
Market Creation Group
Should We or Shouldn’t We? Considerations for Marketing Automation | 5
The True Cost Of Marketing Automation
Although some companies may
have the budget for a marketing
automation platform, the cost
of marketing automation goes
beyond the cost of the technology,
explained Brett A. Schklar, the
CEO of the Market Creation
Group, a full-service marketing
firm focused on B2B technology.
“The question is, are you willing
not to just invest in the tool,
but also invest the time and
methodology to make that tool as
useful as possible,” he stated.
Schklar noted that in some cases
it can be three times the cost
of the marketing automation
system — if not more — to
develop all of the processes and
content necessary to fully power
a marketing automation system.
“The engine doesn’t do you much
good if it is not connected to the
car,” he said. “The tool is just
the ‘how.’ You still need to focus
on things such as developing
personas and key messaging.“
While the concept of one
platform that can provide all of
the support necessary for true
marketing success is intriguing
to many marketers, strategic
tools that solve specific problems
can provide a greater return in
many instances. “Marketing
automation can be great, but
it can also be the 300-pound
gorilla in the room,” Schklar said.
“Marketing automation provides
incredibly robust reporting, and
that is a big part of what you
pay for. Companies have to ask
themselves if they need that level
of sophistication, or do they just
need certain data points?”
“Enhanced
lead
generation”
and “ability to track
web site visitors”
were cited as top
goals, ACCORDING TO
B2B Magazine’s
2013 Marketing
Automation Best
Practices study.
Should We or Shouldn’t We? Considerations for Marketing Automation | 6
A User’s Perspective
Such was the case at SheerID, a
business that helps companies
protect their special offers by
instantly verifying customer
segments, such as military
members or college students. The
company was intrigued by the
potential of marketing automation
to identify anonymous web
visitors with follow-on email
marketing.
After gaining some experience
with marketing automation,
SheerID realized it did not use the
full functionality of the system.
“They kept wanting to integrate
more and more with our systems
and web site, and it was just too
much for us,” said Marci Hansen,
Chief Marketing Officer at SheerID.
It would have cost $1,500 a month
for all of the functionality that
SheerID needed from the system.
SheerID decided to concentrate
on anonymous web visitor tracking
and moved to a focused solution
to meet their lead generation
needs. By going with netFactor’s
VisitorTrack, a simpler, à la carte
solution to track anonymous web
visitors, the company was able to
reduce costs by 75%. In addition
to anonymous visitor tracking, the
company also uses the system
for analytics, business intelligence
and keeping tabs on search terms
to reduce its pay-per-click costs.
“They kept
wanting to
integrate
more and more
with our systems
and web site,
and it was just too
much for us.”
-Marci Hansen,
Chief Marketing Officer
Should We or Shouldn’t We? Considerations for Marketing Automation | 7
Specialized Tools To Get The Job Done
While many marketing automation
systems have some ability to track
anonymous users, they typically
use a closed system and track
the web visits of people who are
already in the customer database.
However, there is a heightened
interest in learning more about
web visitors that are not part
of the current database. Sales
success hinges on the ability to
identify active prospects through
their digital body language and
firmographics. In fact, B2B
Magazine’s 2013 Marketing
Automation Best Practices study
cites “enhanced lead generation”
and “ability to track web site
visitors” as the top goals amongst
marketers implementing a system.
It is estimated that buyers are
anywhere from 50% to 75%
of the way through the buying
cycle before they contact a
salesperson. As B2B buyers
engage with sales much further
along in the sales cycle, being
able to identify and engage with
anonymous web buyers is going
to be a more critical component of
the marketing strategies of many
companies going forward. Users
are even reluctant to enter their
email address to download a white
paper out of concern that they
will be bombarded with product
pitches. The need is growing to
collect detailed information about
site visitors in an unobtrusive way.
When asked about the most
challenging obstacles to achieving
lead generation objectives,
“optimizing lead-to-visitor rate”
was among the top challenges
cited by respondents to the Lead
Generation Strategy Outlook
Report from Ascend2.
For anonymous web visitor
tracking to be of value, it needs
to provide relevant reporting.
There is a lot of noise that has to
be filtered out, such as the web
addresses associated with ISPs.
Knowing the visitor’s behavior,
firmographic data and geographic
location can also help the sales
person target their efforts.
The best-of-breed providers
also integrate detailed contact
records, which reveal executive
names, titles, email addresses,
Anonymous web
visitor tracking,
email tracking
and reporting
tools, web form
builders and
landing pages
are among the
alternatives to
full-blown
marketing
automation.
phone numbers and more. If a
salesperson’s territory is financial
services companies in California,
they want a way to quickly
pinpoint those leads and make
contact with specific and relevant
prospects. When a high-value
prospect fitting that profile makes
a visit to the site, the salesperson
can get an immediate alert to take
quick action to bring them into the
sales funnel.
Email marketing is another strong
player when it comes to lead
generation; however, a successful
email marketing strategy doesn’t
necessarily entail all of the
bells and whistles provided by
marketing automation. While
email, open and click-through
rates are helpful metrics, they
don’t have a true impact unless
those leads are identified and
contacted quickly. The best way
to accomplish this is through
marketing-sales integration and
actionable data on the person and
company who has clicked on your
emails.
Marketers are charged with
identifying top prospects, so
they need a high level of detail
on who is clicking through from
email campaigns. Powerful new
specialty tools can provide greater
visibility into the visitor, and
bolster the information available
about who clicked on an email
and visited your web site. These
active prospects can then be
identified in real time, with rich
profile intelligence to drive selling
and marketing effectiveness to
the most qualified — without a
marketing automation system.
Should We or Shouldn’t We? Considerations for Marketing Automation | 8
Finding The In-Between Solutions
Marketers who may not need or be
ready for or need a full marketing
automation suite have a number
of options for lead generation.
Among them are:
Anonymous web visitor tracking.
One of the fundamental questions
every marketer has is “who visited
my web site?” VisitorTrack from
netFactor is a powerful application
for capturing detailed information
on a web site’s business visitors
in real time. As many B2B
buyers are reluctant to provide
contact information while they
are in the exploratory phase of
their research, the information
is captured in an unobtrusive
manner. The visitor is matched to
a B2B database with more than 65
million business contacts to attach
names, titles, phone numbers
and email addresses to those
anonymous visitors.
Email tracking and reporting
tools. netFactor’s email2lead
connects the visibility of web
site visitor tracking to emails
sent through email service
providers, such as iContact,
Vertical Response and MailChimp.
Marketers who rely upon these
systems to deliver email can
get the same kinds of tracking
capabilities as provided by
marketing automation platforms.
The tracking data is enriched with
powerful business intelligence to
reveal a comprehensive profile for
email respondents in real time.
This tool can be integrated with
the anonymous web tracking
capabilities of VisitorTrack to
provide person-level detail about
those coming to a web site from
an email campaign.
Web forms builders. Capturing
data about your prospects is a
critical function of marketing.
After all, you can’t follow up with
the person who downloaded
your white paper, signed up for
your newsletter or attended your
webinar if you don’t have the
ability to collect and manage
the relevant information. These
free or low-cost tools are easy to
implement. There are a number
of third-party sources than can
enhance the basic contact data
with rich demographic and
firmographic details. This can help
identify the leads that fit your ideal
buyer profile and are most likely to
result in sales.
Landing pages. Content
management systems (CMS) are
another set of free or low-cost
options to power a lean marketing
operation. A CMS can be used to
build landing pages to direct web
traffic when you want to prompt
a certain action or result, such as
signing up for a product demo or
downloading a piece of content.
Done correctly, a landing page can
provide customized content for
each visitor.
Social media monitoring
applications. There is a wealth
of activity taking place on social
media sites, and there are a
number of affordable solutions to
help turn social interactions into
leads. These tools offer analytics,
campaign management, and the
ability to link social media actions
to your prospect and customer
databases.
While marketing
automation may be
the ultimate goal,
success truly
hinges on moving
the lead generation
forward. There are
a number of
alternatives that
can
achieve that
objective.
Should We or Shouldn’t We? Considerations for Marketing Automation | 9
Companies that
identify their most important lead
generation efforts,
and employ the tactics and
technologies to get them there,
have the greatest
chance of success.
Conclusion
Although companies almost
universally aspire to the latest
marketing automation platform
— and some even have the
budgets and resources to reach
those goals — most need to bring
together disparate technologies,
teams and processes. Few
companies can support complex
projects and, instead, take
incremental steps to reach their
goals and keep the business
moving forward.
As the responsibilities of the
marketing and sales departments
blur and companies restructure
their teams, it will be increasingly
important to integrate solutions
to meet changing demands of
today’s dynamic environments.
Buyer behavior also continues
to evolve, and the “new norm”
is for customers to engage with
the sales team much later in the
purchase cycle. Being able to
identify those prospects early and
respond to their needs quickly and
efficiently is critical.
Companies that identify their
most important lead generation
efforts, and employ the tactics
and technologies to get them
there, have the greatest chance of
success.
Should We or Shouldn’t We? Considerations for Marketing Automation | 10
About NetFactor
About NetFactor
netFactor Corporation provides a suite of products to drive new levels of
sales performance from Internet marketing for the BusinesstoBusiness
market. VisitorTrack®, the company’s core technology platform, is the
world’s leading application for website visitor tracking. VisitorTrack®
integrates lead generation, marketing intelligence and web analytics
into a powerful toolset used by B2B sales teams and marketers for
website lead generation it’s like “Caller ID for Your Website®.” netFactor
is privileged to serve customers in nearly every industry to include
software, telecom, healthcare, technology, financial, professional
services, manufacturing, and transportation. For more information on
netFactor Corporation’s performance driven products and services for
Internet marketing, please visit http://www.netFactor.com.
About Demand Gen Report
6041 S. Syracuse Way, Suite 105
Greenwood Village
CO, 80111
P: 720.489.5534 About Demand Gen Report
Demand Gen Report is a targeted e-media publication spotlighting the
strategies and solutions that help companies better align their sales and
marketing organizations, and ultimately, drive growth. A key component
of the publication’s editorial coverage focuses on the sales and
marketing automation tools that enable companies to better measure
and manage their multi-channel demand generation efforts.
411 State Route 17 South
Suite 410
Hasbrouck Heights, NJ 07604
P: 201.257.8528
F: 201.426.0181
[email protected]
Should We or Shouldn’t We? Considerations for Marketing Automation | 11