Download Storage Decisions 2003

The Challenges of Marketing
– In a Multi-Channel, Do-Not
Contact World
Chris Selland
Vice President, Sell-Side Research
Aberdeen Group
Agenda
 Today’s multi-channel
marketplace
•
The empowered customer takes
center stage
 Issues facing marketers
•
•
•
•
Overwhelmed (and fed-up)
customers
Overzealous(?) regulators
Alignment with sales
Leveraging technology
 Facing the challenges
 Q&A
E-Commerce Sales Growth ($Billions U.S.)
e-Commerce Sales (US $B)
17.2
18
16
13.77
14
10.788
9.761
12
9.248
10
8
13.2
11.921 12.46
7.079
5.393
5.722
10.465
9.47
8.009
7.904
7.894
6.25
6
4
2
0
Q4 '99 Q1 '00 Q2 '00 Q3 '00 Q4 '00 Q1 '01 Q2 '01 Q3 '01 Q4 '01 Q1 '02 Q2 '02 Q3 '02 Q4 '02 Q1 '03 Q2 '03 Q3 '03 Q4 '03
Targets are Overwhelmed
Commercial and Internet
Messages per Day per Person
3000
Other Consumer
2560 Messages (all media)
650
440
1985
2000
Source: E.piphany, 2002
Total Internet
Consumer Messages
 Direct mail pieces: Up
from 35 million in 1980
to 85.6 million in 1999
 Telemarketing: Number
of calls average
consumer receives today
is 60 to 90 a month
 E-mails: The average
Internet user now
receives tens to
hundreds of e-mail
messages a week —
many of them unsolicited
and unwanted pitches
Enter the Government
 Government legislation increasing
•
•
•
•
•
Do-Not-Call
CAN-SPAM
Graham-Leach-Bliley (Banking)
HIPAA (Health Care)
More coming…
 Marketing primarily targeted
•
Control of names moves to individual/customer
 Outcomes:
•
Budgets shift from marketing to customer support
Marketing in the Enterprise
 Lack of metrics for spending
•
•
Traditionally viewed as cost center
Intense pressure to show “ROI”
 Corporate culture
•
•
Support other operations
 Sales, engineering
Coordinate more than produce
 Limited (so far?) impact of technology
•
•
•
Traditionally a backwater – often by choice
 Hire agencies, don’t buy software
What’s real and what’s hype?
 Failure of personalization, banner advertising, etc..
‘Boil the ocean’ integration requirements
The Root of the Problem
Source: Accenture, 2003
CRM Leadership Study
 “We’ve had believers in Sales & Customer
Service, but have been hindered by Marketing’s
unwillingness to participate.”
 “Marketing brings prospective clients into the
CRM system, but once they’re in it becomes
Sales’ job. There is low marginal benefit to
getting Marketing involved.”
 “We absolutely run Marketing as a profit
center. We look every day at what Marketing is
bringing in - and they hate it.”
 “For marketing, sales attainment is the
ultimate measure of success.”
Source: Reservoir Partners, November 2003
Marketing Mix
Brand/Awareness
Print Ads Online Ads Trade Shows
PR
Speaking
Leads
Partners
DM
Online/Offline
Marketing and Sales
Ownership
Marketing
?
?
?
Sales
Metrics – Soft and Hard
Soft Metrics
Hard Metrics
•Customer loyalty
•Customer lifetime value
•Customer satisfaction
•Churn rate
•Quality of service
•Cost of service
•Sales effectiveness
•Close rate
Invest Now – Profit Later
The Empowered Customer
Customer-controlled product
discovery processes pull
buyers deeper into the sales
funnel
Result?
1. Service-direct: Across all channels
2. Sloppy ball handing: Few will
tolerate clumsy hand-offs
3. Speeders rule: Expectations for
proactive, direct service are
especially high among younger
buyers
4. Brand Risk: Expectations set by
other experiences – and not
necessarily your competitors!
CRM and Channels
Marketing
Sales
Suppliers
Your Company
Support
Channels
Customers
Debating Direct
 How should companies optimize Web sites, product
pages, etc. in their multichannel go-to-market
strategies?
 How can companies best tap the global market reach
and customer-centricity of the online channel?
 When should companies sell direct?
 Is collaborative commerce attainable?
 What investments in e-commerce technologies
should be the priority?
 How does Marketing align with Sales, Customer
Service and channel partners (and processes?)
Marketing Analytics
 Most companies have too much, not too
little, technology
•
Adding more makes the problem worse
 Needed: Single ‘System of Record’
•
•
Touched by multiple functional applications
Data architecture needs to move outside the
application
 Solutions
•
•
Data warehouse
Customer Data Integration (CDI)
Customer Data Integration
2-way updates
CDI Metadata
App A
(SFA)
App B
(ERP)
App C
(Billing)
App D
(Legacy)
etc…
Conclusions
 Marketing needs to be viewed as an
investment
•
Marketing as a ‘profit center’ is incorrect at best,
dangerous at worst
 Metrics are still critical
•
Separate ‘hard’ from ‘soft’ – but use both!
 Beware legislation
•
•
Marketing at the forefront
Organizational alignment separates winners from
losers
 Marketing can no longer afford to be an ‘island’
•
•
Integration – business and technical – is critical!
Analytics – think ‘less’ not ‘more’
AberdeenGroup
Contact
AberdeenGroup
The Trusted Advisor and
Business Value Research Destination of Choice
for the Global 5000 Executive
© 2004 AberdeenGroup • 19