Marketing Automation Roundtable

I participated in a great round table discussion at the Mass Technology Leadership Council this morning. The group discussion touched on a wide range of issues related to deploying marketing automation systems. Some of the key success factors are summarized below by stage:
Executive buy-in and expectation management: To be successful, marketing automation projects require integration with other enterprise systems and repositories. Getting top level support for cross departmental cooperation is critical to long term success. However, project leaders must also be very concerned about executive expectations in terms of how quickly they will see measurable improvements in revenue. This is a function of your sales cycle and executives must have a clear vision of the time it will take to get hard numbers to report on.
Data management: MA systems are only as good as the fuel you put in them. Data quality measured by consistency, accuracy, and freshness will determine the fate of your MA project. Typical challenges include: de-duping contacts and accounts, harmonizing account hierarchies (who owns whom), enterprise standards for customer data, ongoing resources for data governance.
Cross departmental support: In the long run, MA systems, unlike other enterprise systems such as CRM, billing, support, etc. are wholly dependent on how well they are integrated with other systems. Specifically, the extent and efficiency of the closed loop reporting process from response to revenue. This requires cross functional support in terms of:
Data standards
SLAs between groups regarding issues such as:
Definitions for lead advancement
Engagement commitments (how long and how many touches to accept, reject, claw back, etc.)
Transparency and visibility of customer touch points from marketing to sales, finance, service, and support.
Scoping and Roadmap: Defining your marketing automation project vis-à-vis business objectives is critical for success. The project leader, business users, executives, as well as your implementation partner and vendor all need to have a very clear vision of where you will start and how you will build over time. At each stage of the roadmap It is important to scope, define, and communicate:
What processes are being automated
What metrics will be used to measure the success of the project and the performance of the system
What resources are necessary to implement, support and use the system
What output is expected from the system
Staffing and skills: MA systems require new skill sets and approaches to marketing. Technical skills with MA tools and analytics, as well as good process mapping are in high demand. They are difficult to hire, and once trained will raise the market value of your staff so be prepared.
Campaign workflows: The key is not to get too far into the weeds in terms of nurturing workflow models. MA tools are capable of designing incredibly complex routing – marketers should err on the side of simplicity when getting started and build based on business drivers not just technical capabilities.
Integration: System level integration with the CRM is a must out of the gate. If not available from the start, integration with other systems should be planned on the roadmap for the MA implementation.
Training: MA requires new skills in terms of campaign design, execution, and analytics. This is a lot to ramp up on for the novice MA user. Training programs should be designed specifically for each type of user as they will have very different use cases with respect to system functionality.
Post Implementation
Measurement and reporting: This remains a commonly cited weakness of most MA implementations. All leading providers have decent reporting capabilities built into their solutions. But it can be confusing about what to report to whom. This gets more complicated the higher you go on the marketing org chart. The needs of a campaign managers can be met with data that is germane to the system , but marketing executives need a perspective that goes beyond the marketing department. They need metrics that show influence on the sales pipeline, into deal size and velocity, and customer lifetime value. Marketing has a key role to play in all stages of the customer experience.
Social/inbound marketing activity is another common point of disaggregation. IDC expects that to see new tools to better assimilate unstructured social data into the formal lead management process so that, at least retroactively, marketers can measure the outcomes related to social engagement.
Overall, the marketing automation landscape continues to be highly fragmented with new media, channels, and tools cropping up daily. While there has been some consolidation over the past three years, IDC expects to see much greater M&A activity over the next three as major tech players look to build infrastructure offerings that integrate all customer facing functions.

Channel Marketing from a Sales and Marketing Perspective

Complexity and Diversity at Scale
Channel marketing in large high tech companies is one of the most complex and diverse operational activities in all of marketing. Complexity and diversity are pervasive across: market, product, program, even organizational structure. Channel Management groups typically report to either marketing or sales. The trend today favors the sales reporting approach, especially for regions outside of the US. The in-country channel manager will either be or report to the regional head of Sales. Channel Marketing typically sits within channel management or corporate marketing. In many companies the main function of the channel marketing team is to act as a conduit between business units/product management and worldwide channels. This creates an inherently complex organizational structure from which a wide range of additional sources of complexity and diversity must be managed.
The Sales Perspective
From a sales perspective, channel management is all about recruiting and performance – identifying key opportunities and the partners best suited to capitalize on them, and investing in their success. This typically involves working with key partners to develop business plans, including staffing, investment planning, and performance goals. However, it is rare that these business development plans include specific marketing plans developed in conjunction with the vendor’s channel marketing team.
This is a critical point of failure for many channel programs. Most partners do not have the marketing expertise needed to manage full scale, long term strategic branding and lead generation campaigns. Many do not even have marketing staff. As a result, much of the marketing effort focuses on discrete expenditures such as events – it is not managed as a coordinated set of campaigns optimized for a multi-channel, multi-touch, long sales cycle lead generation process.
The Marketing Perspective
From a marketing perspective, channel management is all about programs. Programs for recruitment, training, and of course, performance. Given the immense diversity in the channel it is impossible to offer a one-size-fits-all approach to channel marketing programs. But it is equally impossible to individually serve the needs of every partner.
The Partner Perspective
From a partner perspective, channel management is about of all things, consistency. It takes on average about a year for new partner programs to be fully adopted and implemented so changes must be highly rationalized and carefully rolled out by vendors.
Standardization and Specialization
Thus the need to find a balance between standardization and specialization. To find the right balance, specialization decisions have to be made first and the first specialization decisions that have to be made are about standards. The question is: what can we offer to every partner in each category and what opportunities/requirements are there for custom programs? This should be asked across a defined set of categories:
y Partner class: (Platinum, Gold, Silver, etc.): this one is obvious and universally addressed.
y Partner type: (Dev, VAR, ISV, SI, etc.) This one is also obvious but there is a lot of room for creativity. For example, do VARs get a special “turnkey” product offering that is not available to others?
y Region: This is an especially challenging area for channel marketers as there are real market differences in terms of culture, technology adoption/maturation, regulation, as well as language that make regional marketing more decentralized.
y Technical/Product focus: The need for specialization here is largely determined by the breadth of your offering portfolio. But companies with hundreds of solutions need to be especially careful not to overwhelm the partner community.
y Strategic alignment: Making changes to your market direction or product mix requires a huge commitment from the channel and they will require not only special programs but also special monitoring and guidance to ensure effective changes are made. Data is particularly important and additional incentives for feedback may be necessary.
y Partner potential: This is a two-fold problem – identifying the high potential partners and understanding the specific drivers of their business with your brand. Getting these research issues right is critical to moving the most valuable growth opportunities up the performance curve.
Standard marketing programs, campaign models, events, collateral and other go to market assets can be designed for each of these categories. Then specialized programs can be overlaid to facilitate coverage of partner capabilities relative to market opportunities.
It is important to understand that marketing programs for high tech sales must be highly leveraged over a wide range of media and market segments. They must be managed with a long term perspective. Most MDF, JDF, co-marketing approval processes focus on short term, discrete activities such as an event and are measured on 30 day or 60 day timelines. However, this is not an effective way to market complex solutions that require great education and deliberation on the part of the buyer.
IDC Recommends
To address this, IDC recommends that companies better coordinate their sales and marketing teams with respect to channels. Channel marketing should develop marketing plans as a normal part of the business planning and market development process. In addition, the partner community should be researched and assessed with the same depth and regularity applied to the markets they serve so any changes in business drivers can be quickly identified and incorporated into channel programs in the most appropriate way.