driving revenue in a volatile economy

www.act-on.com | @ActOnSoftware | #ActOnSW

Lori Wizdo, Principal Analyst, Forrester ResearchAtri Chatterjee, CMO, Act-On Software

Driving Revenue In A Volatile Economy (DRIVE)


Welcome! Thanks for joining us today.

Lori WizdoPrincipal Analyst, Forrester Research

Atri ChatterjeeCMO, Act-On Software


Q&A

• Submit questions for the Q&A session


Agenda

• About this study

• Key Findings

• Recommendations


WHAT• Study of small and mid-sized businesses

conducted by Forrester for Act-On• Survey completed in August and September 2012

WHO• 208 companies in North America• B-to-B and B-to-B-to-C

WHY• Understand the effects of the economic slowdown

on SMB marketing• Understand how SMBs are marketing and

compare them to larger companies• Determine any differences between top

performers & the rest

50 to 249 employees

48%

250 to 499 em-ployees

16%

500 to 999 employees

14%

1,000 to 2,499

employ-ees22%

Executive 1% Head of

Marketing17%

Executive in Marketing

37%

Manager of Marketing

45%

Basics of the Study


Industries & Performers

• Participation from various types of industries from manufacturing to service

• Respondents across all major verticals

Business Services

30%

Other30%

Computers, aerospace,

automotive, etc.Transportation, banking, insurance,

etc.

Consulting, accounting, construction,

professional services, etc.

Manufacturing40%


Agenda


• Key Findings

• Recommendations


Base: 208 Marketing Decision-makers

Source: "SME Marketing Tactics and Metrics Survey", a commissioned study conducted by Forrester Consulting on behalf of Act-On Software, Inc., August, 2012

SMB Marketers Fielding a Mighty Marketing Mix

Over 50% are using 13 or more marketing techniques (traditional and digital)




SMBs Gravitate to Traditional Techniques

Top 5 tactics are traditional and hard to scale




SMBs Lag Behind in Digital Techniques

SMB use of webinars is 58%; in enterprises it is 93%


Base: 144 IT Decision-makers

Tell us about your use of the following social vehicles

Facebook Page

Twitter Posts

Video marketing (YouTube, etc.)

LinkedIn Page

Twitter Content Offers/Invites

Community Engagement (Dis-cussion Forums and Groups,

etc.)

Blogging

Q&A sites

Pinterest

11%

14%

23%

13%

45%

31%

26%

53%

58%

3%

8%

10%

8%

9%

17%

19%

13%

12%

4%

4%

1%

3%

5%

1%

1%

1%

4%

32%

27%

15%

26%

13%

10%

12%

11%

11%

28%

26%

33%

32%

15%

28%

31%

16%

11%

21%

21%

18%

17%

13%

13%

10%

5%

3%

Not using; not planning to start Not using; but planning to start in the next 12 months

Not working; will be decreasing We're using, but don't know if it's working

Working; will continue at present levels Working; will increase usage in the next 12 months


Although 69% are marketing on social networks, more than 1 in 3 do not know how to measure if it is working

SMBs are Taking a “Leap of Faith” on Social


What are your firm’s plans to adopt the following software technologies to automate some of your marketing processes? – Overall

Customer Relationship Management (CRM)

(e.g. Microsoft Dynamics, Salesforce.com)

Marketing and lead management automation

(e.g. Act-On, Marketo, Pardot)

Email marketing platform (e.g. ExactTarget, Re-

sponsys)

19%

41%

35%

13%

28%

17%

12%

12%

13%

16%

5%

8%

24%

9%

20%

16%

5%

6%

Not currently interestedInterested, but no plansActively evaluating and planning to implement within the next yearImplemented, re-evaluating, have not met goals/are not happyImplemented, we have met our goals/ are happyExpanding / upgrading implementation



Marketing Automation: 19% v. 45%

SMBs are not as Automated as “Enterprises”

CRM: 56% v. 75%




SMB Marketing IS Driving Pipeline


The Tough Economy Has Impacted All SMBs, but Some Have Done Better

Everyone has been impacted• Establishment deaths > births by 37%• 70% of respondents have cancelled or

delayed any business expansion• 71% of respondents have either reduced or

kept marketing expenses stagnant• Still 56% of respondents have exceeded

their plan.

Above Plan, 56%

Below or at Plan,

44%

Performance to Plan

The Great Recession Revealed a New SMB Success Profile




Top Performers Invest in Marketing

44%

56%

27%




Top Performers Focus on New Customer Acquisition


Other

We don't use online marketing tactics

Online marketing is a game-changer, allow-

ing us to complete more broadly

Online marketing is an important part of our

marketing mix, but no more important than

offline tactics

0%

12%

20%

68%

2%

15%

32%

51%

Top Performers (n=117)

Laggards (n=41)



Online Marketing is a “Game Changer” for Top Performers

“Which of the following statements most reflects your perception of online marketing?”

Online marketing is important to the majority of SME marketers. But 32% of top performers say it’s a game-changer.


What are your firm’s plans to adopt the following software technologies to automate some of your marketing processes? – Overall

Customer Relationship Management (CRM)

(e.g. Microsoft Dynamics, Salesforce.com)

Marketing and lead management automation

(e.g. Act-On, Marketo, Pardot)

Email marketing platform (e.g. ExactTarget, Re-

sponsys)

19%

41%

35%

13%

28%

17%

12%

12%

13%

16%

5%

8%

24%

9%

20%

16%

5%

6%

Not currently interestedInterested, but no plansActively evaluating and planning to implement within the next yearImplemented, re-evaluating, have not met goals/are not happyImplemented, we have met our goals/ are happyExpanding / upgrading implementation



Marketing Automation: Top Performers: 28%Bottom Performers: 5%

Top Performers strategically use technology

CRM: Top Performers: 61%Bottom Performers 46%




Use of Marketing Automation Correlates with Strong Business Performance

71% of those who are using marketing automation are above plan, versus only 53% of those who are not


You said you were using lead nurturing as a tactic, tell us a little bit about your lead nurturing tactics

We do not use any of the above tac-tics

We only use email to engage leads during the nurturing phase

We use email and phone calls to en-gage leads during the nurturing phase

We use a dedicated team (e.g. inside sales, business development reps) to

nurture likely prospects

0%

12%

69%

73%

3%

11%

66%

71%

Total (n=143)

Have Marketing Au-tomation (n=35)



SME Marketers are serious about lead nurturing.


You said you were using lead nurturing as a tactic, tell us a little bit about your lead nurturing processes

On average, we have fewer than 5 touches (email or phone call) before a

lead passes to sales

On average, we have more than 5 touches (email or phone call) before a

lead passes to sales

56%

44%

54%

46%

Total (n=143) Have Marketing Automation (n=35)



SME Marketers are Serious about Lead Nurturing


You said you were using lead nurturing as a tactic, tell us a little bit about your lead nurturing timeframes

On average we nurture a lead for less than a month before we pass the lead

to sales

On average, we nurture a lead for 1-3 months before we pass the lead to

sales

On average, we nurture a lead for more than 3 months before we pass

the lead to sales

40%

49%

11%

36%

47%

17% Total (n=143)Have Marketing Au-tomation (n=35)



SMEs with Marketing Automation Nurture Leads a Little Longer


Which of the following do you measure?

Other, please specify

Net promoter (ratio of promoters to detractors)

Channel productivity

Salesperson satisfaction with marketing

Customer lifetime value

Lead Funnel conversion ratios

Market engagement via social channels, networks

Lead-related metrics

Customer acquisition costs

Campaign payback

Marketing’s contribution to revenue

Competitiveness/win ratio

Brand awareness

Customer satisfaction

0%

20%

23%

23%

23%

48%

35%

40%

28%

48%

28%

43%

45%

48%

2%

10%

16%

21%

21%

24%

25%

27%

28%

31%

33%

34%

40%

48%

Total (n=206) Currently implemented (n=40)Source: "SME Marketing Tactics and Metrics Survey", a commissioned study conducted by Forrester Consulting on behalf of Act-On Software,

Inc., August, 2012

SMBs Who are Automated Measure More

Significant differences in what companies with marketing automation can and do measure




Top Performers are Getting Results!


Agenda


• Key Findings

• Recommendations


7 Habits of Top Performers

1. Emphasize online versus offline strategies• Top Performers see online marketing as a game changer• Almost 3 out of 4 marketing automation users are top performers

2. Focus on new business leads and customer lifetime value over reducing costs• Top Performers are spending more

to get new customers while Bottom Performers are trying to eke out more from existing customers and their budgets

3. Use digital to its fullest• Go multi-channel• Combine email, webinars, content and social



4. Use advanced techniques like lead nurturing• More than 50% of Top Performers

nurture leads for between 1 and 3 months

5. Measure the things that count• Top Performers analyze everything

while 44% of Bottom Performers are not measuring anything!

6. Increase collaboration between sales and marketing• Plan objectives together and measure

results together



7. Maintain marketing budgets even during a tough economy• Almost 2 out of 3 Top Performers maintained

or increased marketing budgets during the great recession

“Be fearful when others are greedy. Be greedy when others are fearful.”

–Warren Buffet


For More Information….

For more information on the Forrester Study and the eBook on 7 Marketing Habits of Highly Effective SMBs,

go to:

www.act-on.com/DRIVE

driving revenue in a volatile economy

Documents

sme marketing tactics

salesfor marketing

marketing andcompare

marketing processes

behalf of act

commissioned study

forrester consulting

metrics survey