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TRANSCRIPT
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Marketing leaders are faced with the growing gap between marketing strategy and execution. As the pressure to prove ROI increases, how can marketing leaders successfully answer, in dollars and KPIs, the promise of technology in building smarter, more profitable omnichannel campaigns?
Price, Product, Promotion and Place are still key considerations in building a solid marketing strategy. However, modern digital marketing requires its own set of 4 Ps to account for the ever-growing availability of marketing technology platforms, new data sets and processes that come with them. The general G-STIC framework isn’t strong enough to plan for Implementation and Control today. Enter CRM. CRM and the New 4 Ps of Digital are an easy way to understand and prepare for the last two stages of marketing in today’s environment.
CRM and the New 4 Ps of Digital are an easy way to understand and prepare for the last two stages of marketing in today’s environment.
EXECUTIVE SUMMARY
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The New 4 Ps of Digital: Process, People, Platforms and Performance bridge the gap between marketing strategy and execution. A roadmap for CRM emerges by examining the importance of each P within the context of the customer lifecycle and journey. Only then can an organization, no matter the size, ensure a successful performance-based marketing strategy, quantified by clear and measurable results that align with business objectives.
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We will discuss the following: Factors widening the Strategy to Execution Gap
Using the New 4 Ps of Digital to outline a CRM Roadmap
A simple, high-level CRM checklist
Alignment with business objectives
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Today’s marketing leaders are under pressure to deliver on organizational strategy and brand engagement. As importantly, they are responsible for the critical operational processes and marketing technology stack to support revenue goals and other business objectives. The head of any marketing department has grown octopus arms to juggle strategy, internal processes and personnel and then coordinate that through technologies to profitably execute and prove ROI. Using the New 4 Ps of Digital and CRM, marketing leaders can take control of the intersection of marketing, sales, technology and operations to successfully drive growth.
CMO @ THE CROSSROADS
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As the focus magnifies on the marketing department’s ability to function at both a strategic and operational level, the CMO fields one or more of these questions from executives and team members alike: Is our brand ready for today’s marketing environment? Do we have all the pieces in place? How do we market to the correct audiences, stay relevant, personalize messaging at greater scale and respond to interest immediately? How do we translate our company’s needs and goals into an operational marketing strategy? Can we justify the budget and quantify return? Will this solution fit with the company’s data governance or Master Data Management (MDM) strategy? Do we have the people, bandwidth, competency and right partners to put all this in place?
Answering any of the above is a direct invitation to invoke a mythological reference such as Herculean task or Pandora’s box. Why? Starting to unpack an organization’s marketing and operational baggage is hard to execute and requires bandwidth, and it’s not easy to identify and accept gaps in the department. Strategic marketing consultants such as Response Media have experience guiding marketing leaders through this process.
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Martech(Grand View)
MgmtM
ktg Tech
Today’s marketing leaders sit at the confluence of multiple disciplines that have evolved separately but are now inextricably intertwined. Product, Price, Promotion and Place, the marketer’s mainstay, are still current and required in today’s environment.
However, each of these Ps sits somewhat precariously on processes and technologies that cross departmental lines and ownership/responsibility. If those processes and technologies don’t deliver, the original 4 Ps won’t be enough in today’s market. CMOs today, more than ever, are navigating a new discipline.
Marketing technology, as detailed in Scott Brinker’s MarTech Manifesto, sits squarely within the overlap of marketing, technology and management.
FIGURE 1 from Scott Brinker’s MarTech Manifesto
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This is further broken down in the lover’s triangle featuring People, Process and Technology, which serve as the key components to effectively implement marketing technology within an organization and grow the people and processes that fuel its engine.This holistic view allows for a better understanding of the marketer’s workload. A marketer jumps departmental borders daily to create, deploy and report on a campaign. What this means for the team leader is a better understanding of what those touchpoints are and how well they work.
Technology
People Process
Martech
FIGURE 2 from Scott Brinker’s MarTech Manifesto
Whereas yesterday’s marketing leader was solely focused on handing off marketing strategy to their teams to execute, today’s leaders have a more extensive task list to bridge the growing gap between strategy and execution and make sense of the increasing complexity left for their teams to decipher.
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Technology
People Process
Martech
A stellar marketing strategy will fail without an actionable roadmap to bring it to life. Yet, the internal translation of strategy into execution evades many organizations that are focused, more than ever, on measuring and optimizing their customer journeys.
These organizations look to technology to scale campaign management, drive personalization, automate tasks and collect insights with the end goal of achieving profitable, higher-engaged consumer relationships at scale. Marketers should ask themselves, “Is it actually delivering on that goal or at least helping to realize I’m not delivering on that goal?”
THE GAP: STRATEGY TO EXECUTION
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While technology promises greater opportunity to promote a product, service or offer at the right place and right time, how it fits into the executable strategy is not always clearly mapped. Simply put, the goal is to develop a cohesive executable strategy that is going to have real outputs aligned to business objectives instead of generic recommendations or shallow performance metrics.
Technology solutions to help marketing teams accomplish their goals can be expensive to implement - not only the purchase price but also the steep internal operational cost when these questions are not properly addressed: What organizational goals are met by purchasing this platform? To what extent will this be implemented and over what time period? What does the implementation team look like? Are the benefits worth the cost?
Leaving these key questions unanswered creates hesitation and slows down your decision on what technologies to purchase and how to implement while staying within budget. Channeling your inner project manager has its benefits. A successful leader can produce a plan with the following: A high-level outline to satisfy executives Critical, granular level tasks to satisfy both team member and budgetary concerns alike Accurate measures of success and ROI
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As new marketing technology emerges, the gap widens and execution becomes more complex. Oftentimes, new technology means new data sources that are not adequately integrated within an organizational system and campaign workflow. Of marketers surveyed in Deloitte’s 2017 survey of CMOs, 32.2% cite a lack of adequate tools and processes to measure success. The key here is processes. If tool usage is not mapped to underlying processes, the outputs will uncover large holes in the way an organization understands its performance.
The need for an encompassing framework like the New 4 Ps of Digital and CRM is essential.
From Gartner’s CMO SPEND SURVEY 2017-2018: BUDGETS RECEDE AMID DEMAND FOR RESULTSMartech acquisition inadequacies place pressure on CMOs. Furthermore, poorly selected, underperforming or underused marketing technology forces marketing teams and agencies to rely on manual processes, which hurts marketing efficiency and effectiveness.
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Success means knowing one’s marketing operations intimately: what activities occur, over which channels, the order in which they occur, and the ownership at each stage. Only then can a team map those activities to the right technology. It’s a balancing act of keeping several parallel processes/initiatives going while trying to implement a common framework/platform/solution. This framework serves to better automate campaigns and measure their effectiveness (ROI and KPI) across all channels.
It’s a balancing act of keeping several parallel processes/initiatives going while trying to implement a common framework/platform/solution.
Define scope Messaging, database marketing 100% Define scope
Create list of assets to migrate Messaging, database marketing 100% Create list of assets to migrate Messaging, database marketing
Finalize format for schema, segments, database key and data flow
Architecture, database marketing 100% Finalize format for schema, segments, database key Architecture, database marketing
Scope definition complete 100% Scope definition complete
Business unit set up Messaging 100% Business unit set up
Get list of database users/viewers and create logins Messaging 100% Short list of users/viewers Messaging
Place ticket for BU Management 100% Place ticket for BU Management
Set up enterprise BU Management 100% Set up enterprise BU
Designate FTP account for imports Management 100% Designate FTP account for imports Management
Designate domain name Messaging 100% Designate domain name IPs Messaging
Get new IPs Management 100% Management
Log database cause for BU name Messaging 100% Messaging
Deliver database to tech Messaging 100% Messaging
Database implementation Tech 100% Database implementation
Validate database set up Tech 100% Validate database setup
Set up email service integration Architecture 100%
Sign off on data blueprint Management 100%
Finalize data schema in database 100%
Business unit set up complete 100%
Asset assembly/build Database marketing 100% Asset assembly, build
Migration asset inventory Database marketing 100%
Review data segments and consolidate data segment strategy Messaging 100%
Management
Deliver database tech
Log case for database for BU name
FIGURE 3
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THE BRIDGE: THE NEW 4 Ps OF DIGITAL & CRMThe purpose of the New 4 Ps of Digital is to act as a roadmap and ensure the original 4Ps are successful. That roadmap is more commonly known as CRM.
Forrester defines CRM:The business processes and supporting technologies that support the key activities of targeting, acquiring, retaining, understanding, and collaborating with customers.
Developing a solid CRM solution means bucketing and organizing the business processes and technology that support targeting, audience insights, customer acquisition and retention, and, most importantly, conversion and loyalty. Then, and only then, an organization can map all of that to the customer lifecycle for effective performance measurement.
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A construct for grouping these activities is the New 4 Ps of Digital: Process, People, Platforms and Performance.
The New 4 Ps of Digital are pillars that support the original four Ps, the tenets of traditional marketing strategy. The New 4 Ps of Digital are defined as:
Process - The processes you use to market your product.
People - The people, internally and externally, who help you offer your service or market your product.
Platforms - The tools you use to identify and reach your audience and get them to engage with and purchase your product/service where and when they want to.
Performance - How you collect and analyze data to attribute your marketing efforts to achieving business objectives.
PLATFORMS
PERFORMANCE
PROCESS
PEOPLE
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The distinctions in tactical strategy among B2C, B2B and B2B2C become less and less of a dividing line due to the underlying technology that supports marketing automation. At the most basic level, the seed capability for any type of solution is to deploy to subscribed customers/accounts and attribute activity data back to a unique record for insights and further nurture. The tree of features and capabilities, however, branches without end after that seeded touchpoint.
The hesitation to act happens when business strategy is not translated accurately into the key activities and technologies that need to support it.
Forrester’s Q4 2016 report listed 54% of decision makers had already implemented or were planning to expand their CRM solutions. In 2017, this still left a good chunk of companies without adequate solutions.
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The customer lifecycle provides a solid framework to bucket requirements into a scalable solution. The customer lifecycle, regardless of vertical, is complex. Segmentation adds layers of personalization needed for each persona’s journey map. For simplification, the lifecycle can be distilled into four stages as represented in Figure 4:
FIGURE 4
Path-to-Purchase
Before Purchase
Path-to-Purchase Path-to-Repurchase
During Purchase During Use After Use
Path-to-Repurchase/Loyalty
Display Ads Television
Search
Social
Selectionprocess
Gets emailsGets emails
Retailersites
Signs upfor emails
Gets emails Gets emails
Checkout
ContactsCustomer
Care
Sharesexperiences
on forums and social media
Plans to buy again
Uses/eats/drinksproduct
ProductSite
Reviews
BlogsF+F
Pro-rollPR
Influencers Word ofMouth
Friends
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The promotion of a product at each stage in the customer lifecycle directly affects the overall price since the places where we market have moved beyond traditional forms into dynamic community and one-to-one channels of dialogue. Some segments may not need discounts or coupons to convert, others will.
Most marketers know the questions their audiences ask at the first two stages. However, how well do you manage the later stages? How well are you able to answer the internal questions at each stage in creating the full customer lifecycle or journey?
For example: What are the goals for each stage?
What strategies should you develop for each stage?
Which efforts along the journey are most successful in terms of:
- ROI (initial purchase, repurchase, LTV)?
- Community or audience engagement?
- Audience insights (segmentation, behavior)?
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The customer lifecycle can also be distilled into a table which buckets each stage and creates a clean outline for a CRM/marketing automation solution.
More importantly, bucketing campaigns by priority and effectiveness provides the criteria for implementing a solution in a stepped-out, cost-effective way. Like the journey map, a bucketing outline can be complex, yet for this paper, we have a simplified template.
LifecycleStage
Campaigns Channels(s) Goals Technology CostPriority/
Effectiveness
BeforePurchase
DuringPurchase
During Use
AfterUse
19
Once the lifecycle, journey maps and campaign buckets are outlined, a CRM Implementation Checklist will ensure everything is in place to execute a marketing strategy effectively. It is not necessary to cover every aspect of the checklist to execute a successful campaign, but it will identify marketing readiness and expose gaps or redundancies that keep the strategy from running optimally and effectively.
Process People Platforms Performance
Diagram of data sources
High-level sales process(es)
Data maintenance processes
Data library
Data storage
Data encryption
Campaign logic
Segmentation
Campaign creation
Automated vs. manual steps
A prioritized list of use cases
Team roles inside/outside departments
Partners
List of touchpoints and hand off during execution
Ownership of processes by role
What are their skillsets?
Are they being under-utilized?
Where are the knowledge gaps?
What are their ideas and solutions?
Developer or marketer skill set
List of third-party tools in use and their integration points
List of owners for above
List of current automated and manual processes by platform
Team processes mapped to platform features Extent of custom vs. out-of-the box integration work required
Business objectives the platform impacts
Cost of the platform
Old business goals
New business goals
Stated business goals
Unstated business goals
How are these tracked?
How are these calculated?
What is the true state of my current performance compared with my future performance following implementation?
Delta between state of current performance and future performance following implementation.
CRM IMPLEMENTATION CHECKLIST
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CONCLUSIONThe accelerating pace of technology and big data has forced CMOs to not only show they are directly connecting with consumers across all touchpoints but also attribute performance directly to business objectives. The New 4 Ps of Digital and CRM provide the roadmap and bridge between the original 4 Ps and the modern era of dynamic marketing. While this is hard work, brands that accept, explore and integrate this new approach will remain relevant to their consumers and outperform competitors that lag behind.
Response Media helps brands optimize and substantiate their marketing budgets and strategies by increasing revenue, share and volume, consumer loyalty, and lifetime value through performance-based acquisition-to-advocacy CRM.
Contact us to help you take control of your marketing and benefit from stronger consumer relationships at scale.
For more information, please contact Alex Perroy
Director, Client Development(P) 770-220-5064
ADDITIONAL RESOURCES● MarTech Manifesto by Scott Brinker● https://www.marketingweek.com/2017/11/16/marketing-budget-growth-stalls-cmos-fail-prove-roi/● Gartner: CMO Spend Survey 2016 -2017● https://www.gartner.com/smarterwithgartner/gartner-cmo-spend-survey-2016-2017-shows-marketing- budgets-continue-to-climb/● Forrester CRM Report - Q4 2016● Deloitte CMO Survey 2017
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