How to justify the investment in modernizing your marketing with the

Executive Board

David Dorling, Swiss Post Solutions

14th March, 2012

What I hope to share

• It is about change management

• That organisational alignment will continue to be a challenge

• That the strategy message takes time to filter down to the coal-face

• There are cultural nuances that need to be managed

• Focus on measurement & accountability

• The context and background for our project

• The issues we addressed through our project

• Centre of Excellence• Results and benefits

achieved• Lessons learnt and next

steps

Background & Context:

Individual systems, processes and methods & capabilities

There is but one constant - Change

– How our customers buy

– The level and complexity of our competitive marketplace

– How we differentiate ourselves

– What we sell and to whom

– Our value proposition

– Organizational structures

– Skills and capabilities

– Business processes and systems

– Objectives, targets & measures

CHALLENGE 1The decline of the

physical document

CHALLENGE 2“Caught in the middle”

market positions

CHALLENGE 3Intensifying and

asymmetric competitive environment

CHALLENGE 4We are in the midst of a

fundamental re-organisation

Document and Business Process Outsourcing

• Our Customers

• Archive

• e-Archive

• IT Systeme

• (z.B. ERP)

• DOCUMENT MANAGEMENT• SERVICES

• BUSINESS PROCESS SOLUTIONS

• Consumers

• Document Manageme

nt • (ECM)

•P

hysic

al

•Ele

ctr

on

ic•

Ph

ys

ical

•Ele

ctr

on

ic

Systems, Processes & PeopleWhat had to change

• We were historically an operations led organisation• Marketing was viewed as a sales support function• Senior management viewed marketing as a cost function rather than a

revenue contributor• Our marketing activities were executed in silos• There was a lack of coordination, standardisation and consistency in our

G2M activities• We were incurring unnecessary costs• We were reducing our staffs efficiency and productivity• We were not investing in the development of our staff • We were engaging with our target market too late in the buying process• We found it difficult to measure the performance and effectiveness of our

activities

Starting Point 17 December 2009Goals of the approved SPS Sales Concept

Sales Concept Key Topic Lead Lifecycle Management

Evaluating the Market

• Vendor identification in Summer 2010 - LeadLife, Marketo, M2L, Eloqua, Silverpop, Aprimo

• Vendor short list – six step process completed December 2010:– Silverpop– Eloqua– M2L (due to acquisition by Oracle)

• Vendor evaluation – six step process, February to April 2011• Vendor decision – Eloqua:

– Fit to functional requirements– CRMOD integration– Implementation model and services– Sales enablement– Privacy & security

What were the risks

Project Risks:• Lack of Exec Mgmt buy-in &

support• Not achieving alignment

between sales & marketing and BU’s

• People: availability, skills, capability, capacity

• Oracle CRMOD Integration• Available project budget • Content availability• Data management,

governance & legislation• Vendor support

Not doing project:• We will continue to lack visibility

of our customers & prospects interests

• We will continue to plan and execute in silos

• Marketing’s contribution will continue to disappoint

• It will delay our capability to have consistency in our G2M activities

• We will continue to fund duplicate systems

• We will not be able to assess what is and is not working

Critical Building Block: Marketing Automation Centre of Excellence

Implementation Scope and Governance

• Phase 1 - six business units in scope: Switzerland, Germany, United Kingdom, United States, France and eProduct House

• The project had three major workstreams, started late September 2011 and had duration of 16 weeks:

– Functional deliverables– CRM integration– CMS integration

• Project Governance– Project Board: Project Sponsor (member of Executive Board), Head

Global Sales, Head Solution Management, CIO – Project Team: Business Unit Marketing & Communications, CRMOD

Owner, Website Owner– Involvement of other stakeholders as required

SPS Marketing Automation Model

• Demand Funnel

• Scoring • Nurturing

• Data Governance

• Demand Creation

(Inbound/Installed)

• Sales Enablement

•M

etri

cs &

Rep

orti

ng •P

eople & S

kills

SPS Applied Demand Funnel

SPS Nurturing Strategy Architecture

• Master Router

• Welcome Program (per segment)

• Extended Solution 1

• Extended Solution 2

• Extended Solution 3

• Solution 1 • Solution 2 • Solution 3

• Event-Management

• Route

• Welcome/

Profile• Convert/

Qualify• Stay top of mind/

educate• Transac

tional

Benefits & Results Achieved

What have we delivered• Integration of six websites

• Subscription Model

• Internal and external newsletters

• Event Management Program

• Telemarketing integration

• Oracle CRMOD Sales Reporting and Lead Integration

• Multi-solution Lead Scoring

• Marketing Objectives & Performance Measurement

• Nurture templates that be can be adapted by country

What have we achieved

• Benchmark Performance

• Open Rates 31.6%

• Click Through 6.9%

• Bounceback Rate 1.5%

• Nurture Example

– Cost £14k– Opportunities of

£10.5m (PO & AO)– AO of £3.4m– Cost to revenue: £1

gains £72 (c35% of AO)

What has changed…

• Marketing has contribution targets recognised by the Executive Board

• There is formal agreement on lead handover process between marketing & sales – common definitions

• We are able to communicate with our target market more effectively• Marketing is able to analyze, measure and report on performance of

activities• We have a global model for nurture program development• We have improved coordination & standardization • We have increased efficiency • We have integrated with CMS & CRM• We are able to support sales with additional tools

We still have some way to go….– Closer alignment with sales

– common and shared goals & metrics and focus

– Marketing organization & skills development

– Introduction of integrated campaign program management

– Greater standardization and consistency in G2M – brand management

– Market profiling: Ideal customers, Buyer Personas – value proposition

Our conclusions

• It was (and continues to be) a change management project • That marketing automation should not become its own silo• That the theory differs from the practice • That there is no one size fits all (regardless of what vendors

say)• That as you learn you recreate (be willing to take one step

back to go forward)• That there is no such thing as a standard interface• That you will underestimate the investment required to fully

exploit the investment that you have made• Easy to say market aligned organization – cultural and

process realignment

A few final thoughts…

• CMO tenure hits 43 months in 2012, from 23 months in 2006 (Spencer Stuart research)

• By 2017 the CMO will manage more IS spend than CIO (Gartner)• Business Strategy and Digital Execution are CMO priorities

(Forrester Research and Heidrick & Struggles)• Four key challenges; data explosion, social platforms, channel &

device options, shifting demographics• A change agent by owning customer insight • By 2015 two-thirds of CMOs believe marketing ROI will be their top

effectiveness measurement (IBM)• In 2017 the Marketing Operating Officer will have replaced CMO

Thank you Q&A