cmo summit customer acquisition & growth

Martyn Christian, CMO, Kofax

Grant Johnson, CMO, Pega

B2B Customer Acquisition, Retention and Expansion

04/27/11

2© 2011 Pegasystems Inc.


Discussion

Customer Acquisition Approach

Customer Retention/Expansion Approach

What’s working/not for us

What’s working/not for you

3 © 2011 Pegasystems Inc. 3 © 2011 Pegasystems Inc.

New Customers vs. CurrentSiriusPerspective: Despite the generally accepted truth that it pays to sell to current customers, few companies do so systematically.

Source: SiriusDecisions




Selling Cycle vs. Buying Cycle

One Size Fits All vs. Audience Segmentation

Monologue vs. Dialogue

Hard Sell vs. the Customer Journey




Adapt Your Marketing Activities to Buying Cycle StagesLaura McLellan – VP Gartner Buying Cycle vs.

Selling Cycle Understand the

problem Sales & marketing

integration Research & SME

knowledge Solutions vs.

Product focus



Customer Acquisition Approach – IBM CxO Studies

Collection of customer insights and opinions

Engaging customers in dialog

Establishing a positive brand perception as a “listener” not a “seller”

Helps define positioning Extend into local demand

generation programs Multi-media options Localization options


Customer Acquisition Approach – IBM CxO Studies



The Customer Acquisition Journey

Source:, Forrester Research


MarketingMarketing

Anatomy of the Journey

3/15Targeted Campaign

3/15Targeted Campaign

4/26Pega.com

visits

4/26Pega.com

visits

December Community

Regs

December Community

Regs

6/21Tradeshow

Meeting

6/21Tradeshow

Meeting

12/15VOC

12/15VOC

1/20Negotiation

1/20Negotiation

Feb:Close/Won

Feb:Close/Won

NovemberNewsletter Sign-Ups

NovemberNewsletter Sign-Ups

11/1Proof Of Concept

11/1Proof Of Concept

JanuaryWeb &

Community

JanuaryWeb &

Community

8/15Contact Us

Web Request

8/15Contact Us

Web Request

8/18Qualification

SQL

8/18Qualification

SQL

October15 Unique

Web Visitors

October15 Unique

Web Visitors

10/1Initial

Meeting and Demo

10/1Initial

Meeting and Demo



Engagement Levels as “Heat Indicator” Engagement levels: continuous tracking, based

on contact’s last engagement activity date̶F Active: last activity within X days̶F Casual: last activity between X and Y days̶F Inactive: activity older than Y days



Poll

How many spend >50% program budget on acquisition?

Where increasing? Acquisition or Expansion? Where would you put an extra $500k? A or E? Where are you on the Sales & Marketing

Alignment Continuum?̶F A) Finger pointing is an art̶F B) We have a healthy dynamic tension̶F C) We agree on investment and program priorities̶F D) We are aligned up and down the organization



Customer Retention/Expansion Approach

Lifetime customer value

Leveraging customer success

Expansion in multi-influencer, multi-stage markets

Campaign framework strategies

Customer loyalty lessons learned


Improve Operations

Optimize Customer Service

Grow Revenue

Customer Expansion: Global Financial Services

2. Multi-Channel Customer Service

2. Multi-Channel Customer Service

1. Operations Case

Management

1. Operations Case

Management

4. Service Case Management4. Service Case Management

3. Enterprise Agility Platform3. Enterprise Agility Platform

6. Conversation Management

6. Conversation Management

5. New Business5. New Business

1.1. Visa Division purchases Pega Visa Division purchases Pega to automate credit card to automate credit card disputes disputes

2.2. Company adds program to Company adds program to renew the CSR desktop with renew the CSR desktop with Card CPMCard CPM

3.3. Selects Pega Platform for Selects Pega Platform for various Case Management various Case Management applications applications

4.4. Company purchases cross-Company purchases cross-channel service managementchannel service management

5.5. Company selects Pega for an Company selects Pega for an on-line account opening on-line account opening solutionsolution

6.6. Selects Pega for upsell, Selects Pega for upsell, cross-sell and retentioncross-sell and retention

1.1. Visa Division purchases Pega Visa Division purchases Pega to automate credit card to automate credit card disputes disputes

2.2. Company adds program to Company adds program to renew the CSR desktop with renew the CSR desktop with Card CPMCard CPM

3.3. Selects Pega Platform for Selects Pega Platform for various Case Management various Case Management applications applications

4.4. Company purchases cross-Company purchases cross-channel service managementchannel service management

5.5. Company selects Pega for an Company selects Pega for an on-line account opening on-line account opening solutionsolution

6.6. Selects Pega for upsell, Selects Pega for upsell, cross-sell and retentioncross-sell and retention

ROI

Phases


Client SuccessClient Success

Public AwarenessPublic Awareness

Case Case StudiesStudies PressPress SpeakingSpeaking AwardsAwards

Leveraging Customer Success

ReferencesReferences


Recognize and Reward


The Results



Customer Expansion

Many points of influence and input within customer

Messaging needs to be appropriate for stage in sales cycle and audience

Multi-product offerings complicate this further

Cross-sell and up-sell requires careful planning


Customer Expansion – Campaign Framework

18

Offerings for Sale

Product 1

Product 2

Product 3

Product 4

Product 5Product 6

Product 7

Product 8


Customer Expansion – Campaign Framework

Offerings for Sale

Product 1

Product 2

Product 3

Product 4

Product 5Product 6

Product 7

Product 8

Campaign Framework

Lea

de

rsh

ip

Ind

ustr

y V

ert

ical

1

Solution Set 3

Upgrade Offer

Inds

utry

Ve

rtic

al 4

Ind

ustr

y V

ert

ical

3

Ind

sutr

y V

ert

ical

2

Horizontal Segment

SolutionSet 1

SolutionSet 2

Channel 1

Channel 2



Customer Expansion – Role Based Marketing

Increases relevance but increases complexity

Role based messaging requires SME’s

Campaign managers need to invest in planning as well as execution



Results – Customer Loyalty Works

Loyalty Survey & Methodology (NetPromoter)

Marketing should sponsor and lead integration across the business

Pragmatic insight and solutions for cross functional problems

Result – increased revenue and profitability

Doing more with less



Poll

What are you doing in customer expansion that’s working?

What’s giving you the most leverage in managing the customer journey?

What’s not working and why? What would you do with an extra $500k? If you weren’t CMO, what other seat at the table would

you like?

Martyn Christian, CMO, Kofax

Grant Johnson, CMO, Pega

Thanks!

04/27/11