Friday, April 15, 2011

The Marketing Operations Role: Where To, From Here?

Looking Back, Briefly:

Marketing Operations has been the fastest growing job role in tech marketing over the past few years. When IDC first started its surveys of marketing spend and staffing back in 2003, Marketing Operations wasn't even on the job roster at most organizations. Today, the "MO" role represents about 6.5% of the total staff and it is the fourth largest job "category" for a large marketing department. So, what happened? The rise of this role was the response of the CMO to the general condemnation that marketing was not acting like a business. The Marketing area was perceived as offering up no accounting, and no accountability... but also offering no end to the pleas for more budget. And so Marketing Operations as the "staff accountant" role started to turn up at the larger and more complex marketing organizations. As the MO role really took off, the general job description would include four areas: budgeting and planning; measurement and reporting; technology deployment (marketing automation technology); and process improvement.

Looking at Today:

Of the four job areas described above, the most problematic, right now, is technology. There is a vast new set of IT tools available for marketing organizations: Marketing Resource Management; Content Management; Performance measurement; Analytics; Social Media Platforms and Monitoring; and the list goes on. The problem is that in general, marketing organizations do not have the staff skill sets to effectively evaluate, deploy and use these tools. In our 2011 Role Survey of Marketing Operations professionals, respondents said that their number one problem today is the sorry state of the "Automation Infrastructure" and that their number one goal is "Finding the People that know how to fix this". There is an equally large and underlying issue "below" the technology level, and this is the database and data management issue. With so much marketing automation now in place, the first output that this new technology is producing is crystal-clear visibility to the fact that: "Wow, we have REALLY POOR customer records". And so a very major issue for the Marketing Operations role is finding the database-savvy personnel who can help with this challenge.

Looking Forward:

Given how fast the MO role has grown and given the significant challenges of today, I want to offer three areas of "Essential Guidance" for CMO's and their MO "lieutenants". The first step is to re-visit the job description. In a series of executive interviews that I recently completed, many MO professionals complained that "Our Marketing Operations area has become the dumping-ground for all the unwanted marketing tasks that no one else wants to do!". Now, whose fault is that?

Job number one, therefore, is for the CMO with the MO team to define and then re-articulate its role to other parts of marketing; so that it does NOT become the dumping-ground! Job number two is to then conduct an "Activity assessment" of what the MO personnel are actually doing, as held against that job description This may all sound like a junior league management exercise but my strong suspicion is that because the role has grown SO fast over the past four years that it MAY be the case that role clarity and scope are due for a closer look. This assessment should also include the organizational placement of the MO role. Why are so many of our MO staff at corporate headquarters? Why are these staff not within our product lines and in the field? These are questions worth asking. Job number three is then to ask "Where do we go from here?" regarding the role and staffing. I believe that the "future" of MO role effectiveness and impact is not in more staff as measured by headcount. In fact, the MO role as a percentage of staff is likely reaching an upper limit at this point. My hunch is that it may "cap out" at perhaps 8 to 10% of staff. However, the MO roles of tomorrow will be more strategic than they are today. The nature of the role will evolve. While today's MO staff are largely involved with individual execution (within the job description mentioned previously), the MO role of the future will be more about educating and infusing other parts of the marketing organization with a marketing process-excellence mentality, skills, and tools. In this way, the MO staff will become a more "leveraged" function. This leverage will include improving the influence and impact of MO across the entire marketing organization, not just at the corporate marketing location(s). As you further deploy the MO role, think about not hiring more Marketing Operations staff....think about driving the existing "smarts" and influence of MO down and through your entire marketing organization.


-- Rich Vancil

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Monday, March 21, 2011

Essential Guidance for 2011

Building the Intelligent Sales & Marketing Organization.

IDC's best and brightest analyst teams were assembled in Boston and San Jose during the past two weeks to present their latest insight and guidance for creating the global intelligent economy; focusing specifically on the impact of social, mobile and virtual technologies on this vision. Morning speakers discussed how to position for the third wave of IT industry growth driven by mobility, clouds, big data and intelligent industries. In the afternoon, one of the many tracks included presentations by IDC's Sales and Marketing Advisory team about the vision of the intelligent sales and marketing organization and they key success factors required to achieve this vision. A few key take-aways from each of the presentations in this track are provided below.

Executing for Marketing Excellence in 2011 by Rich Vancil:

Start – or accelerate – your social business transformation
 With communication cycle-times dropping and the purchase decision influence continue to shift to buyers, a shift to "social business" is imperative for your success;
 41% of businesses have already implemented an enterprise social software solution
 Focus on building "peer-to-peer" connections, not "vendor-to-customer"
Make a deeper investment in intelligence and operations
 Drive marketing operations and market intelligence initiatives and investment down through the organization, across the business units and into the regions
 Better establish and govern the processes for sales enablement and data quality to improve sales intelligence and their ability to leverage insight and resources.
Build a better budget (IDC CMO and Sales Advisory clients should refer to IDC's combined marketing and sales investment benchmarks data)
 As marketing budgets recover, allocate new investments with the needs of a new reality – digital marketing is here to stay, and is only increasing in its ability to drive awareness building and demand generation; and greater alignment with sales will require continued investment in campaign management, sales enablement and lead management extending into what has traditionally been considered sales' domain.


Building the Intelligence Sales Organization by Michael Gerard:

Listen to your buyers:
 Technology buyers indicated a desire to reduce their buying cycle time by 40%.
 Two-thirds of the delay between desire vs. actual buying cycle time is the result of buyers' internal funding and decision-making processes; however, vendors' sales teams can impact this part of the delay!

Drive sales to be more strategic by investing in a next generation sales operations team which focuses on – sales strategy, productivity and automation. Team with marketing, your learning and development organization and IT to gaps in sales intelligence – customer intelligence for sales and sales enablement.

Push the limits on sales performance measurement
 Establish a sales analyst function to better measure sales productivity
 Improve data quality with the aid of other parts of the organization
 Analyze the sales pipeline, rep performance and the impact of sales productivity improvement initiatives to help impact strategic and tactical decision-making



The Sales & Marketing Automation Imperative by Gerry Murray:

o Investment in sales and marketing automation continues to increase as companies recognize the value of technology in adapting to new market realities
o However, sales and marketing need to better align across their own teams as well with other parts of the organization to create a more holistic experience for customers (e.g., marketing, sales, finance, services, support)
o Your company should establish a customer data czar, with team members in sales and marketing, to execute and govern data quality processes.
o Evolve to a more comprehensive sales enablement platform (i.e., beyond a content portal) centered on integrated customer experience management

Clients of IDC's Sales Advisory Service [http://www.idc.com/eagroup/sales.jsp] and CMO Advisory Service [http://www.idc.com/eagroup/cmo.jsp] should contact us for a full overview of any of these areas as well as access to our latest research schedule and listing of published research.

Please do provide any comments on this topic below or reach out to us to participate in upcoming sales and marketing research.

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Saturday, March 5, 2011

Do Customers Deconstruct Advertising?


It's all too easy to get bogged down in analysing advertising given the investment of time, money and reputation that it represents. I'm not always sure what good it does and I'm far from certain that non-marketing professionals ever do that - unless of course we foolishly ask them to do so in focus groups.

But I'm going to do it anyway because this ad from a company close to my heart has appeared everywhere. Can you see what grabbed my attention? It's the small i in innocent, juxtaposed with the capital J in juicy in the line at the bottom - a design conceit that means that the start of both sentences is different and, to me, visually jarring.

Designers rightly talk about fonts being important - but what's the point if simple consistency is overlooked? In the great scheme of things, it probably doesn't matter. It's unlikely to stop people from buying juice, but it irritated me and I wonder if I am not alone in that.

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Tuesday, February 15, 2011

Customer Service Personified.

"There's so much we can do in this crazy world with a little effort and imagination." Especially if you really know your product/service and why your customers are your customers, as is perfectly demonstrated here

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Tuesday, February 8, 2011

Update on Social Business Transformation





















Social Media in the B2B world has got a bit of a bad rap right now. Let’s frame the problem. The obstacles might be spoken (or whispered) as:

• "These new communication platforms, and this social media movement within our company…is …who knows? Well, let’s just keep an eye on it. Let’s see what develops. But for the time being these are…
• NOT the valid business-communications media we should be using to communicate with the serious audience we wish to reach. "

These obstacles may be over-observed.

Let’s broaden the definition and talk not about Social Media, but about "Social Business Transformation". The real Transformation lies not in what you see: with Twitter or LinkedIn or FaceBook. For personal networking, these tools may be the whole game: you are involved in connections that are one or two links deep. But at the enterprise level these tools are merely the surface layer. Social Business Transformation is about deep communications adaptation; changes in culture; new rules of engagement; shifts in organizational centers-of-influence; and then (lastly) the associated tools and technologies that enable communications on the surface.

IDC is digging deeper to uncover this major trend and transformation in business communications. "Social" will continue to press its way into the enterprise - into our lives as business professionals.

With my research partner and IDC’s Social Business expert Erin Traudt, IDC has just completed a series of interviews with IBM about their own Social Business Transformation We are impressed with IBM’s accomplishments.

To boil it down, here are three observations for Social Business Transformation success:

1. Tap in to the Professional Ego.

You say that you enter into a web community because you want to "connect". But I would suggest that most of the energy behind any personal or business Social Media activity has a strong element of: "Here I am!" None of us would enter a single Social keystroke unless we wanted to satisfy an ego need. The need to feel important. And, (fingers-crossed), the desire to be recognized! By extension, would not the math argue that if we spend nine or ten hours each day at the workplace, that this dynamic should be a more powerful force in the business world ("Look at my great new technical workaround!") than in the personal world ("Look at my cool new postcard collection!")

The IBM developerWorks website is a technical resource for the IBM developer community. Established in 2000, it is now one of the largest IBM sites, with over 4 million unique visitors per month. It is a resource where developers in the IBM ecosystem offer their knowledge and skills. About one-half of the content on this vast site is posted from outside of IBM: developers, partners, and customers. Why does it work? Professional ego! But it takes time and investment. developerWorks has been an eleven-year work-in-progress for IBM.


2. You can’t force interaction.

The viable and vibrant IBM communities we have studied are years in the making. It takes significant time and investment to devlop a community to the point where it is somewhat self-sustaining. One IBM executive noted that Community development is like planting a tree where the first year of nurturing, watering and pruning requires almost constant attention. And more than one IBM community that we examined was several years underway and still under active investment mode. It is also notable that each Community only becomes self-sustaining because of the external contributions (see above). Our estimate would be that for every one community that is self sustaining, that there are hundreds in "push" mode (hoping that our voices will be heard and enjoined).

"If the people don’t want to come, all the marketing in the world won’t stop them".


3. Construct and Adhere to Policy.

This is interesting. I think we all are a bit attracted to the Social Media because we can express ourselves in a way that allows us to put our corporate toes across the corporate line, if even for an instant! However, the successful sites that are viable today are here in part to some basic and sensible policing. We have to. We all need to protect our customers, to do the best by them.

Our sense is that sustained and successful Social Business Transformation efforts are going to be more powerful than we have ever imagined. Good examples (such as with IBM) are already in place. Of course there are challenges; but these obstacles will over time be trumped by the benefits (see Figures).
How is your company coming along on its own Social Business Transformation?
- Rich Vancil

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Sunday, January 30, 2011

Three's Not A Charm.

I noted a tweet in which the author complained that he'd be on hold with a customer service phone-line for so long that he'd realised that the music being played to him was a loop of three tunes and he'd hung up.

Now, obviously, he'd been kept holding for far too long. But it's also true that the company in question had idiotically ensured that he realised this by limiting the music to a cycle of three. The first priority is to deal with the customer swiftly, the second is to ensure they don't feel taken for granted.

In this case, the company got it wrong on both counts. If I were him, I'd ring up and complain. Or maybe not.

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Wednesday, January 26, 2011

Making Things Better.

Making good stuff from scratch is really difficult.

Removing bad stuff is relatively simple.

The former is to be encouraged, the latter is compulsory.

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