I just found Mr. Kfir Pravda’s article “Revenue attribution 101” Mr. Pravda’s key question was: How do you measure revenue attribution – money and profitability for marketing activities. He had split the revenue attribution measurement according to touchpoint sequence from last to first and combined as customer journey. I agree with his measurement frame and guidelines. It’s a great article. I would recommend reading it.
Mr. Pravda’s article got me thinking about how do I actually approach this subject in my planning and implementation process.
First: I always start attribution modeling from owned channels
What is their capacity to bring traffic and visitors (eg. stores and online)?
What is their capability to convert recognized customers?
What do people actually look in to and buy?
Who are the customers actually – what kind of attributes, motives, interest contexts etc. do they share?
Once you have your own channel conversion, increased owned media demand generation impact and marketing automation tuned effective for the first time purchase t’s time to get more people interested.
Second: With the knowledge about contexts, customers and motives that generate interest and traffic it’s rather easy to recognize interfaces and channels that enable you to present a relevant and appealing messages for customers. This first touch planning is very much data directed iterative testing and learning process. What ever works, you scale up and automate in any given channel from online to direct marketing, telesales, face-to-face sales or advertising. I do prefer channels that I can measure direct ROI from, but I’ve also seen how media marketing has created stronger customer relationships and willingness to pay premium. These secondary KPI’s are about brand attributes, preference and willingness to pay premium.
Third stage is about learning and planning how to increase customers’ basket size, purchase frequency and expand customer’s buying behavior to more than one category. This stage is about using marketing automation technology in order to create service automation customer care programs for great customer experience and sales.
This process is completely founded on customer journey analysis and understanding in an omni-channel environment.
I think you might find these articles interesting:
Marketing departments in many companies are currently losing their importance and budgets. The world of commerce and marketing is truly in great turbulence right now.. Tornado really. The change is like force of nature and it is so fierce, because several megatrends are colliding simultaneously:
Customer Experience design and metrics mania (NPS)
Corporate Identity as a holistic concept, not just brandbook but experience
Integration of service & marketing = Business Process Design & LEAN process requirement for efficiency
Design thinking breakout for innovation and business model generation
CRM and automation capabilities increase: Increase CIO’s, Sales director’s and business management’s involvement in marketing
Social brand and open dialogue with customers (rating and feedback is ever present issue + the rise of Open Innovation as part of customer relationships)
Revenue Performance Management requirement and Analytics
Decline in traditional marketing & Own media’s tremendous influence increase
Organisational changes – Torn Silo walls makes marketing everyone’s business > “We are all marketeers now” said McKinsey’s article
Requirement to deliver better results with lower budgets
What I’ve heard and observed is, that business management has already got used to thinking in terms of processes due to ERP and CRM technology development and implementation. They are also very familiar with cost/performance analysis and practical implementation to processes. It is easier for them to think about Customer Journey and CX design pragmatically and apply the ideas in practice. Sadly, CMO’s in many companies are strangers to such consideration and thinking. Branding used to be about doing things according to the brand book and design guidelines. Now brand is both an idea about something great that stands for something and something that you can experience with all your senses. The Corporate brand identity is more about such holistic experience than images, jingle’s or tone of voice. They are still important, but the other factors are increasing their influence exponentially.
This community was created because we wanted CMO’s to take advantage of the turbulence that would enable major increase in their influence and improve productivity in organisations. Now it feels like marketing departments influence and capacity to deliver results is dividing in two and this change is escalating as two roadmaps: a) Marketing becomes the driving force for corporate business development (= CMO’s take the driver’s seat leading the change) or b) Marketing becomes second grade support organisation without power (= CMO’s continue their work as they have done before). I wish more companies and CMO’s would choose the roadmap A.
I participated in DMA event in 2004. There Nectar’s (Loyalty Management UK’s) CEO Robert Giergink presented his case about coalition loyalty management program and their results for the first couple of years. His co-speaker was a University Professor whose name I can’t recall anymore, but he said that loyalty programs might represent the future of Marketing in general. I was deeply impressed, enlightened really, about Nectar’s case and find it still very inspiring. In my opinion that professor hit the point exactly. Currently all marketing is about Customer Journey and Experience management, individualized dialogue and event based, triggered and service oriented communications. That is exactly what loyalty programs are supposed to do. However, until recently such approach was ridiculously expensive or impossible. Right now, the technology is very cost efficient and the ROI capacity is absolutely amazing. While this is true with all recognized customers it’s now becoming possible also for customer’s that have left no identification about them.
Naturally the online revolution and social media storm have made everything above even more important and possible and that is why these things have become management imperatives. I’m looking at the CMO’s position in the light of generic Must Win Battles shared by many companies:
Best customer experience (Goals: loyalty, LTV, cross & upsell, high NPS)
Continuous and cost-efficient new business (Goals: new customers, demand generation and stronger conversion)
BOTTOM LINE STRENGHT:
Lean and effective operations and processes – strong bottom line (Goals: highly productive organisation capable of delivering superb customer experience at comparatively low expences by using new technologies, self service and help, Social customer service, online environments and automation)
Creation of winning corporate culture: Inspirational and very satisfying workplace capable of understanding and driving development and change. Recognition as very prominent employer for hungry and innovative new talent, Topline growth energize the company’s employees and partners focusing their minds on opportunities, innovation and growth
Such MWB considerations should become the heart of marketing strategy development. I’m currently involved in such cases and I’m witnessing the great change and impact such consideration has on the organisations. Creation of new and exploration of unknown are naturally inspiring and when they also deliver financially measurable success it is certainly worthy of your undivided attention.
Word of encouragement: Very few people are truly experienced in this game. Go ahead and learn by doing. I can promise you it is great!
I’ve come to the conclusion that the name “marketing automation” for new breed technologies is simply too narrow. In the projects I have been working, it has been evident that the core challenges companies have lie in their business processes. As a customer, you expect to know what is going on and understand what the company you are paying for is doing for you. Not knowing equals emotions of neglect, inconsideration and generally drive criticism towards the company. As an outcome the Net Promoter Score doesn’t look too good, even if the company would be very good in something. However, gaining great increase in NPS only require erasing the issues leading to critic path of customer experience.
I would suggest to consider marketing automation as a methodology for service automation and start service designing the entire customer relationship. Such an approach put the customer in to a spotlight and helps you analyse the internal processes and multi-channel encounters in a new way. When you do analyze the engagements, customers’ motivation and contexts driving customers you can mirror it with customer touch poits with sales, customer service, billing, purchase confirmation communications, online service etc. While studying these touch points and their impact, also consider what is the technical platform for that specific touch point. Having this mapped enable you to look at the entire IT infrastructure and recognize gaps between them. In case you don’t have the necessary data available for answering customers’ questions you will make your company look autistic.
Fixing the gaps in IT infrastructure enable you to fix the reasons why people have doubt and negative experiences along their customer relationship. This is when you can start automating the customer communications. In many cases you have the means to cure the reasons for eg. negative customer service contacts by keeping the customer updated, feeling secure and well served. Considering the full customer journey and relationship help you increase lean process efficiency and simultaneously increase NPS. In current economic environment you can squeeze a lot more efficiency and synergies delivering higher customer value with current or even lower resources (Check out HBR article about managing complexity).
The same tool allowing you to do segmented emailing and event based marketing can be used for process automation and customer care. This is why I think the marketing automation technology should also be leveraged as service automation solution.
The companies often have an existing CRM already in place, like Salesforce,MS Dynamics or such. These mainstream CRM’s are relatively easy to integrate with Marketo, Eloqua, Neolane, ISAS or Hubspot (the price variation between these technologies is huge – you really need to know what want to do when comparing options). BM’s Unica is a fullblown solution for CRM & Automation and a lot of these challenges can be solved with Salesforce and MS Dynamics too. In many cases the company infra already has much more to offer than is being used. In a best case scenario you already have what it takes. You just need to make choices that work best in your existing systems and requirements. The only thing I’m saying is, it is well worth the effort. In case you only really need triggered messaging, eg. Silverpop is an option.
Many of these technologies are associated with B2B markets and it’s true that they have been developed for B2B and high invenstment B2C categories. This is because the value of single customer is so high that you should really take great care of them and it’s worth the investment. However, in B2C business the sheer number of customers and transactions is so huge that the automation makes sense and the technology price goes down/customer too. The most applied position for these technologies has to do with lead management process. I think, such approach is only a tip of an iceberg.
Let’s look at this challenge from the CMO’s perspective. Majority of critics in NPS measurements are actually an outcome of poor operational experiences. However, these experiences have a major impact on brand perception. I would consider this to be an opportunity for CMO’s to enforce brand identity at experience level and really help driving the brand promise and it’s practical delivery in to all touchpoints accross the company. Marketing is a great influencer in corporate culture and I think these new opportunities only enhance the capability of CMO to make the company better.
I’d really love to hear your experiences and opinions about marketing automation and service automation. Please, let’s learn together.
For more, check out online (others have training, but I haven’t found great tutorials online)
Here’s also Marketo’s “Marketing RFP” that I find quite instructional although it has been done by a vendor who optimize the RFP for their technology 🙂 Marketing automation-RFP
Yes, Business Process Design is business owner’s responsibility, but CMO’s need to understand how to leverage BPM in customer engagements and their outcomes measured with Net Promoter Score. Here’s a brief video on Business Process Management
Most companies approach CRM and marketing automation inside out, I prefer looking outside in. It’s the difference in perception, not in technology that matters. Here’s how Salesforce.com presents their approach as an infograph. It’s a valid approach, I’m just saying that there is more to discover than this: