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Faced with a myriad of challenges that include the economic downturn, an increasingly competitive business landscape, and rising customer expectations, Aberdeen's report Sales & Marketing Alignment: Collaboration + Cooperation = Peak Performance shows that the primary strategy pursued by 46% of all companies is establishing a formal marketing strategy that fits this new business environment. While integrating this strategy into their agendas, Omniture technology users differentiate their marketing efforts with a greater focus toward automating marketing processes and campaigns (43% vs. 28%). This strategy enables them to achieve stronger performance across a number of Key Performance Indicators (KPIs), Figure 1. Figure 1: Effective Marketing Delivers Results
Omniture Technology Users Percent of the sales forecasted pipeline generated by Marketing Percent of marketing generated leads converted into closed business 5% All Others 22% 16%
Maturity Class Definitions The following Key Performance Indicators were used to determine the Bestin-Class for the Sales & Marketing Alignment report: Year-over-year change in annual revenue Percent of the sales forecasted pipeline generated by Marketing Best-in-Class: top 20% of aggregate performance scorers Industry Average: middle 50% of aggregate performance scorers Laggards: bottom 30% of aggregate performance scorers
As illustrated in Figure 1, Adobe users of Omniture technology outperform all others in both marketing generated leads converted to the sales forecasted pipeline and marketing generated leads that result in closed business by 38% and 59% respectively. In addition to these accomplishments, these customers also averaged 10% year-over-year improvement in annual company revenue, as compared to a mere 3% average increase among all others. Why are these particular Key Performance Indicators (KPIs), the most relevant to businesses? Consider what cross-functional business executives reported from around the globe in Aberdeen's August 2010 Quarterly Business Review. Of the 1,600+ business executives surveyed, 48% indicated organic revenue growth is their organization's top goal. This affirms that marketing organizations need to be laser-focused on programs and technologies that deliver leads to the sales pipeline and positively impact conversions to closed business to achieve the top business goal of driving revenue growth through new, non-acquisition related revenue.
campaign on the bottom-line. Best-in-Class companies are more than twice as likely as Laggards to have this capability in place. Figure 2: Omniture Customers Deploy Key Capabilities
Ready access to marketing collateral Process to monitor marketing costs/budget Process for disseminating marketing campaign results Process for tracking and measuring marketing results 20% 37% 64% 37% 40% 60% 80% 100% 56% 71% 89% 68% 81%
Process to disseminate marketing campaign results. The ability to make the right people in the organization aware of campaign results in a timely manner enhances the value of marketing programs and associated results. This process allows users to track specific KPIs (i.e. leads generated, click-through rates, web visitations) from each marketing campaign as well as reporting a detailed and/or summary overview of the achieved results. These performance reports are an invaluable tool providing relevant organizational stakeholders with visibility and understanding of the marketing programs' impact on the business while clarifying expectations and needs for future programs. Indeed, Aberdeen's data shows that companies utilizing this process are 63% more likely than non-users to achieve Best-in-Class results. Measuring results. Companies using Omniture technology are 73% more likely than all others to ensure they are measuring their marketing programs. To this point, Aberdeen's research shows that the primary factor driving top performing companies to deliver superior KPI results involves building marketing programs that can be measured, combined with promptly capturing and disseminating those results. This primarily relates to an organization's need to have visibility into its performance and a clear understanding of the impact on its marketing programs. Measuring program results is crucial in establishing such visibility and replicating successful marketing campaigns while avoiding potential failures. Some of the most common metrics measured by organizations participating in this research include company revenue growth, addition of net-new customers and marketing's contribution to the sales pipeline.
Search engine marketing / optimization tools Content management system Lead management tools and dashboards 20%
Search engine marketing/optimization tools. This technology allows companies to provide prospects/customers with the right content by driving the most relevant online material through search results. Users of this technology are able to promote specific products, services, and websites in coherence with their online marketing strategy. Another benefit of these tools is the ability to
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leverage historical data (i.e. visitations and content consumption) to refine and improve the accuracy of future search results. Content management systems. This technology empowers organizations to create and edit content for various marketing channels and mediums including websites, direct mails, email etc. Organizations utilizing this technology to create, capture and manage content have a greater ability to influence the interaction of prospects and customers with their product(s) and brand(s). In fact, Aberdeen's November 2010 benchmark report on Marketing Asset Management: It's More Than Just An Image shows that companies using this technology achieve 8% year-over-year improvement in lead conversion rate, compared to 0% (no change) for non-users. Lead management tools and dashboards. These tools are key enablers in managing the lifecycle of leads, and streamlining the process to expedite them through to sales for improved lead conversions rates. Successfully deploying these tools into the existing sales and marketing processes helps organizations map the different interactions that take place from capturing a new lead to converting the opportunity into closed business. This improves an organization's ability to manage the leads throughout their lifecycle more effectively, thus maximizing revenue opportunities. Omniture technology users are 57% more likely than all others to deploy these solutions to support their marketing efforts.
services, albeit at an additional cost, to help end-users maximize their use of web analytics. Figure 4: Free Versus Paid Solutions
Website Traffic Volume Conversion Rates Campaign ClickThrough Rates Average Page View Per Visit Revenue Per Visit 0% 64% 46% 53% 21% 45% 24% 44% 24% 25% 10% 20% Users of Free Solutions Users of Paid Solutions 40% 60% 80%
20 individuals from different roles ranging from executive management to marketing staff are able to easily view campaign results. While putting these key capabilities in place, the company established a keen eye toward monitoring the costs of its campaigns to determine which were the successful. Our new solution enabled us to associate returns from each marketing campaign with its respective costs and as a result, we are able to determine marketing campaigns that would deliver the maximum return on investment (ROI) for us, adds Munsell. Careful planning and implementation of its marketing automation strategy gave Dave Ramsey the fruits from its labors. The first year after implementing their new solution, the company generated an ROI greater than 500%. In regards to its online business strategy, marketings contribution to online business has jumped to 50%. Another significant achievement was observed in to time-to-market (time to create and deliver marketing assets or content to market). It used to take us weeks to create content and put on our website, today we do it in almost real-time, states Tim Munsell.
Summary
While a lack of marketing budget and the need to demonstrate results from marketing campaigns are significant pressures faced by marketing organizations, improving annual revenue through organic growth is the top goal for most businesses. Aberdeen's research shows that in the face of these pressures, Adobe users of Omniture technology differentiate themselves from all others by heavily focusing on automating marketing processes and campaigns to improve marketing effectiveness. While Omniture technology customers aren't doing everything perfectly 47% lack defined workflows between sales and marketing - their marketing campaigns and strategies combined with their use of technology are consistently enabling greater contribution to the sales forecasted pipeline and driving greater revenue through higher lead closure rates. Aberdeen's research shows that companies leveraging all the capabilities and enablers outlined in this research paper as a part of their marketing efforts are 45% more likely to achieve Best-in-Class status compared to non-users. Therefore, organizations seeking to truly differentiate their businesses should consider automating marketing programs with the supporting capabilities and technologies listed in this document to achieve Best-in-Class performance.
For more information on this or other research topics, please visit www.aberdeen.com. Related Research
Sales and Marketing Alignment: Collaboration + Cooperation = Peak Performance; September 2010 The 2011 Marketer's Agenda: Accessing and Understanding Customer Experience Data Is Life or Death; July 2010 Customer Analytics Leveraging Customer Data to Fulfill the One-to-One Marketing Imperative; December 2009 Offer Optimization: Using Customer Analytics to Improve Marketing Performance; October 2009 Data Driven Marketing; October 2009 Web Analytics: Actionable Insights for Unlocking the Hidden Potential of Online Data; September 2009
Authors: Omer Minkara, Research Associate, Customer Management Technologies (omer.minkara@aberdeen.com) Chris Houpis, Senior Research Analyst, Marketing Strategy & Effectiveness (chris.houpis@aberdeen.com)
Since 1988, Aberdeen's research has been helping corporations worldwide become Best-in-Class. Having benchmarked the performance of more than 644,000 companies, Aberdeen is uniquely positioned to provide organizations with the facts that matter the facts that enable companies to get ahead and drive results. That's why our research is relied on by more than 2.2 million readers in over 40 countries, 90% of the Fortune 1,000, and 93% of the Technology 500. As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of HarteHanks (Information Opportunity Insight Engagement Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen http://www.aberdeen.com or call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748 or go to http://www.harte-hanks.com This document is the result of primary research performed by Aberdeen Group. Aberdeen Group's methodologies provide for objective fact-based research and represent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc. and may not be reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by Aberdeen Group, Inc. 010110a