Archive for Segmentation

Five Proven Ways to Improve ROI Using Marketing Automation

Posted in B2B, Brand Managment, Consumer Behavior, CRM, eMarketing, Management, Marketing Mix (New Concepts) with tags , , , , on December 4, 2011 by Consultant

Earlier this year, I participated in a 14-city roadshow on revenue marketing with my buddy Jim Lenskold of the Lenskold Group. An expert on marketing return on investment (ROI), Jim has authored a book on the topic, published research, and worked with large, enterprise customers to improve their marketing ROI.

The showstopper for me was one of Jim’s presentation slides titled “Five Main Opportunities to Improve ROI”:

Source: Lenskold Group

What I like about that slide is how strongly it validates the impact of marketing automation on the sales cycle. Furthermore, it details five scenarios for how marketing automation tools help drive revenue.

 

Curious about the five ways marketing automation generates ROI? Here they are, listed in order, from highest to lowest impact.

1. Target high-value, high-potential leads

Sounds so simple, doesn’t it? Yet, many marketers brush over that key element of segmentation. Yet it is one of the most powerful features of marketing automation in that it allows you to segment at any stage of the client buy cycle, and do so automatically.

Lead scoring, personalization, and automatic segmentation based on behavior can be a huge ROI winner. Interestingly, the more mature the revenue marketer is in her overall competency, the more focused she is on No. 1: targeting high-value, high-potential leads.

2. Improve conversion late in the funnel

Think you can’t do that? With marketing automation, you can—and should—because the math is crazy. For most clients, improving conversions late in the funnel is an area of low-hanging fruit and has a huge impact.

For example, a client of my firm converts only 2% of all trials. A trial occurs very late in the cycle, and a 1% uptick in conversion rates has an immediate and incredible impact on revenue and marketing ROI. So the plan is to use the client’s marketing automation system to more effectively nurture the experience, and to do it dynamically based on the response to and use (or nonuse) of the program during the trial.

3. Reduce leakage with better integration

We call this approach “No Good Lead Left Behind,” and with marketing automation the upside is big. Take the time to map out the life of a lead, from cold lead to close, and look at those key areas where leads are leaking or pouring out of the process. Once you understand where and why leads are leaking, you can plug those leaks with automatic nurturing via your marketing automation system, especially when it is integrated with your customer relationship management (CRM) tool.

The example given in No. 2 also serves as an excellent example here. Another example would be a lead that is passed to Sales when the lead is not ready. Typically, that lead will be lost or rebought at a later date. With marketing automation, the sales rep can place that lead back into a nurturing program with two clicks, or Marketing can set up an automatic sweep of aged leads that’ll put them back into the nurture program. Easy.

4. Accelerate leakage of low-potential prospects

In other words, take out the trash frequently. Removing that noise and distraction from the system can have huge benefits for both ROI and Marketing-Sales relations. By working on data quality and instituting a highly effective lead-scoring program to take out the trash early, you can diminish that noise and the revenue drainers.

5. Gain efficiency and eliminate low-impact media

Efficiency and spending money on high-return marketing programs are the hallmarks of an effective marketing automation program. The top reason marketers buy marketing automation software is to attain proof of results and to help them make decisions.

Ever fought with Sales about the effectiveness of going to a tradeshow or on running an ad? Marketing automation, and the reporting that comes with it, will enable you to have a business discussion with proof points.

* * *

The ROI discussion for marketing will not go away or die down. That is the new reality for today’s marketing organization. Using tools, people, and processes to effectively contribute to revenue and demonstrate ROI is job one for all revenue marketers.

Posted in Consumer Behavior, CRM, eMarketing, Management with tags , , , , , , , , , on December 1, 2011 by Consultant

Self Motivation at Work

Self-motivation is a power that drives us to keep moving ahead. It encourages continuous learning and success, whatever be the scenario. Self-motivation is a primary means of realizing our goals and progressing. It is basically related to our inventiveness in setting dynamic goals for ourselves, and our faith that we possess the required skills and competencies for achieving those challenging goals. We often feel the need for self-motivation.

Following are the ways/techniques for self-motivation:

Communicate and talk to get motivated: Communicating with someone can boost up your energy and make you go on track. Talk with optimistic and motivated individuals. They can be your colleagues, friends, wife, or any one with whom you can share your ideas.
Remain optimistic: When facing hurdles; we always make efforts to find how to overcome them. Also, one should understand the good in bad.
Discover your interest area: If you lack interest in current task, you should not proceed and continue with it. If an individual has no interest in the task, but if it is essential to perform, he should correlate it with a bigger ultimate goal.
Self-acknowledgement: One should know when his motivation level is saturated and he feels like on top of the world. There will be a blueprint that once an individual acknowledge, he can proceed with his job and can grow.
Monitor and record your success: Maintain a success bar for the assignments you are currently working on. When you observe any progress, you will obviously want to foster it.
Uplift energy level: Energy is very essential for self-motivation. Do regular exercises. Have proper sleep. Have tea/coffee during breaks to refresh you.
Assist, support and motivate others: Discuss and share your views and ideas with your friends and peers and assist them in getting motivated. When we observe others performing good, it will keep us motivated too. Invite feedback from others on your achievements.
Encourage learning: Always encourage learning. Read and grasp the logic and jist of the reading. Learning makes an individual more confident in commencing new assignments.
Break your bigger goals into smaller goals: Set a short time deadline for each smaller goal so as to achieve bigger goal on time.

 

Posted in B2B, Consumer Behavior, CRM, eMarketing, Marketing Mix (New Concepts) with tags , , , , , , on November 29, 2011 by Consultant

How Vulnerable Are You to Customer Defection?

In the early ’90s, the term “customer relationship management” (CRM) joined the marketing lexicon. Though the idea is often thought to refer to the implementation of some kind of technology, the real idea behind CRM is that the management of customer relationships is a business imperative.

CRM is about deciding which customers or segments to target, and then developing customer acquisition, retention, and growth plans that will attract and keep your best customers. CRM is really about making your customers the heart of your business.

Our job as marketers is to acquire, grow, and retain profitable customer relationships to create a sustainable competitive advantage.

How do you measure customer relationships?

We’ve all come to accept that creating customer loyalty is an integral part of any organization’s strategy and focus. Various factors influence the success of any customer relationship initiative. Here are five critical success factors:

  1. Clearly defined business outcomes related to customer acquisition, retention, and growth
  2. Agreement about who the customer is and what they want and need from your category (and you)
  3. Well-defined customer segments (and their desired behaviors) and customer-experience objectives
  4. A documented, integrated customer strategy
  5. Explicit measures of success, and the data and processes needed to support the metrics

 

Customer satisfaction and loyalty are two of the most common measures of success. A variety of models are used to measure and quantify customer loyalty, ranging from simple recency and referral models to RFM and customer lifetime value models. Recent research is examining those models to ascertain which, if any, truly measure customer loyalty.

Many organizations would agree that a loyal customer…

  • Stays with the brand despite competitive offers, changes in price, negative word-of-mouth, and product failures
  • Increases business/engagement in some way
  • Actively promotes the brand to others

Though there are many approaches to measuring customer loyalty, one metric that many organizations should consider is the Vulnerability Index.

Add the vulnerability index to your marketing KPIs

A vulnerability index serves as a way to measure loyalty in the face of competitive pull. Its purpose is to help you identify your most loyal customers—those who are going to stick with you through thick and thin.

To calculate your vulnerability index, you will need excellent market intelligence about your competitors’ campaign’s channel, offers, and markets. Once you have this information, follow these seven steps to construct your vulnerability index:

  1. Map the competitive activity. Include the competitor’s name, offer, duration of offer, and the offer’s focus area and market.
  2. Generate a list of loyal customers in the market where the campaign ran.
  3. Map their repurchase and engagement cycle based on frequency and last purchase date.
  4. Isolate all the customers whose repurchase or renewal dates fall within the competitor’s campaign period. This is your observation set (OS) and the set of customers who will experience the greatest competitive pull and are, therefore, the most vulnerable.
  5. Define your observation period, which is generally the campaign launch date and one purchase cycle after the last date of the competitor’s campaign.
  6. Monitor the purchases by vulnerable customers. Track all the customers whose purchases drop during the observation period. These customers constitute your vulnerable set (VS).
  7. Calculate the vulnerability index. Divide your VS by your OS and multiply that number by 100:

    Vulnerability Index = (VS/OS) x 100.

The index will give you a good idea of the proportion of customers who are succumbing to competitive pressure and some idea about the level of loyalty in those customers. If the index is high, you know that there is something to worry about. If the index is low, you can assume, with some degree of certainty, that your customers are exhibiting robust loyalty to the brand.

Because Marketing is charged with finding, keeping, and growing the value of customers, customer retention falls within the domain of marketing. Therefore, marketing organizations should have at least one objective aimed at retaining customers.

In addition to monitoring customer loyalty and advocacy and customer churn, Marketing should also keep tabs on customer vulnerability. If your vulnerability index begins to climb and exceed that of your competitors, you can anticipate that your defection rate is going to increase.

By monitoring your vulnerability index, you will know who your most loyal customers are, and you will be able to develop and implement strategies to withstand competitive pressure.

Read more: http://www.marketingprofs.com/articles/2011/4629/how-vulnerable-are-you-to-customer-defection#ixzz1f5bJmseK