Accelerating Your 2012

Marketing ROI through Cloud

CRMJustin MahonHead of International Business

DevelopmentCRM Applications

Sage

Introduction

The Sage Perspective

o 30 year’s experience helping SMBs and divisions of larger enterprises to grow profitably and manage their business processes more effectively

o 6m customers globallyo Supported by 30,000 certified business

partnerso 72,500 organizations using Sage CRM

Solutions, equating to over 3m individual users

o Largest provider of business applications to SMBs globally - IDC

Global Economic Confidence,

02/'11

Domestic Economic

Confidence, 02/'11 UK

France

US

Germany

Canada

Negative

Global economic sentiment dropped from 53.13 to 44.47 in 6 months; UK has most

negative outlook at 40.65; and second most negative for the domestic economy

at 42.41

Sage Business Index – Q3 2011

Germany UK France United States

Canada South Africa

Singapore & Malaysia

Spain Austria

Neutral

Positive

2006

Q2

'06

Q3

'06

Q4

'06

2007

Q2

'07

Q3

'07

Q4

'07

2008

Q2

'08

Q3

'08

Q4

'08

2009

Q2

'09

Q3

'09

Q4

'09

2010

Q2

'10

Q3

'10

Q4

'10

2011

Q2

'11

Q3

'11

Q4

'11

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

IPA Bellwether Report – Q4 2011

total

Media

Sales promotion

Direct Marketing

Other

Internet

Search

-8.00% -3.00% 2.00% 7.00% 12.00%Confidence index – respondent company’s financial prospectsQuarterly adjustment to respondent’s marketing budget Confidence index – respondent industry’s financial prospects

Confidence & Spend by Quarter Q4 ’11 Δ in Marketing Spend by Category

Headlineso Confidence is down significantly due to market uncertaintyo Q4 2011 marketing budgets up marginally – up .6% in Q4 compared to net increase of 3.4% in Q3o 2012 budgets expected to rise at lowest levels in 3 yearso Managing budgets tightly in anticipation of challenging trading conditions throughout 2012o Internet advertising rising at the highest rateo Traditional media being cut in favour of online, direct marketing and sales promotionso Spending to protect current market share

Source: IPA Bellwether Report, Q4 2011; copyright permission provided by Markit Economics

Not understanding what works / doesn’t work – managing by anecdote

Difficulty putting forward a compelling

business case

Unable to target the highest potential

opportunitiesFewer inbound leads

Limited / poor intelligence on target market and prospect

profiles

Customer information spread across multiple

departments and systems

Inability to link campaigns to specific revenues, customer retention or brand

recognition

Heavily reliant on 3rd party providers

Takes a long time to roll out new marketing

programmes

Very difficult to get real-time performance

information

Too much time spent on administration

Process bottlenecks

• Seen as a cost centre, not revenue driver

• Lower returns from traditional demand generation activities

• Budgets under pressure

• Revenue driving marketing spend, not the other way around

• Viewed as discretionary• Resources – need to

deliver more with less• Not able to execute

quickly enough

Headline challenges for Marketing:

And the underlying causes....

2012 Challenges for Marketing

The Big Question for 2012….

Is Marketing a good investment?

Getting the Basics Right

Clearly defined stages throughout the entire demand creation process accompanied by formalized processes, checkpoints and KPIs

Tools to support planning, execution, reporting and analysis

Every activity has a specific call-to-action

Clear differentiation between KPIs that simply measure activity and those that truly drive revenue, margin, and cost avoidance

Conversion rates at each stage makes revenue impact of marketing investment highly predictable – investment driven by business case, not anecdote

Real-time performance data

Direct linkage to revenue at an opportunity level

Greater ownership of revenue generation for marketing

Full audit trail; complete transparency

Re-Engineering Marketing – Essentials

The Great Unwashed

First Pass Qualification

Qualified Lead

Forecasted Opportunity

First Interaction

Nurture Cycle

QSO

Identifiable engagement – registration on website,

attendance at event, request for call, click-through on email

Total population of touch points across all marketing activities – offline and online

Headline attribute(s) identified in First Interaction used to disqualify based on geography, company size etc

Orchestration of targeted, personalized and intelligent

nurture program to generate ‘Suspects’ from NN and IB

Qualified against specific sales criteria – product / service fit,

budget and decision maker

Intent and timeframe for purchase – converted from Suspect to Lead

Active sales opportunity committed to sales forecast with specific close probability

Formalizing your Marketing Practice

Customer additions

Revenue growth

Margin growth

Database refinementProcess optimization

Enablement through CRMCampaign Management

Social MediaE-Marketing

Performance ManagementLead Capture &

ManagementData Segmentation &

EnrichmentProductivity & Automation

Tools

Revenue Funnel

Leveraging CRM toDrive through

TransformativeChange

Campaign ManagementTypical Challenges Encountered by our Customerso No single place to plan and manage campaignso Juggling multiple marketing channels is difficulto Difficulty targeting the correct profile of target customer; difficulty identifying cross-sell and

up-sell opportunities with current customers; lists are always out-of-dateo Team collaboration and activity management is pooro Leads and opportunities become orphaned from the marketing programmeo Performance metrics are piecemeal and after-the-event

How CRM helps Campaign, waves and activities Multi-channel support – offline and

online Granular list definition and

management Workflow & execution Budgeting control with alerts Central library for marketing assets Team activity and collaboration

management tools Lead and opportunity tracking

Social MediaTypical Challenges Encountered by our Customerso Playing catch-up; have not operationalized social media; no policy or governanceo No ownero Not integrated with other marketing activitieso Not integrated with customer contact recordso Difficulty embracing wide range of blogs, communities, micro blogs, video podcasts etco Difficulty separating value from noiseo Measuring activity, not effectiveness

How CRM helps Manage social activities centrally Social feed aggregation from

Communities, blogs and other sources

Contact enrichment with Linkedin Track companies, contacts or

topics on Twitter Tweets presented as feeds Integrate Twitter into outbound

marketing campaigns Add Tweets to contact records Full audit trail

Campaign: TimeNExpense Marketing Campaign

Social Media

Social Media – Separating Value from Noise

Measuring Activity vs. Value of Social Media

Key Questions to ask about your organization’s use of social mediao Is social media driving a specific, measureable outcome on your revenue

funnel? o Which social channels have the greatest impact?o Is the correlation clear enough to predict ROI?o Is the ROI worthwhile?

E-MarketingTypical Challenges Encountered by our Customerso Standalone activity – divorced from data and other marketing activitieso Manually intensiveo One-size-fits-all mass email; limited personalizationo Not intelligento High bounce rateso Oversaturationo Difficulty accommodating compliancy requirements

How CRM helps Full integrated within CRM Set and forget WYSIWYG template editor Intelligent nurture streams Automatic generation of lists based

on responses Supports mass personalization Powerful template editor Real-time performance management Advanced Spam checking Enforces compliancy requirements

and reporting

E-Marketing

Set and Forget

E-Marketing Nurture Stream

Lead ManagementTypical Challenges Encountered by our Customerso Leads not captured or tracked effectively o Leads not followed up on-time; no SLA; no escalationso Lack of clear criteria for handover to saleso No way to enforce formalized lead qualification and grading criteriao Unstructured, subjective feedback on lead qualityo Leads and opportunities are not associated back to their source or originating campaigno No mechanism for re-cycling

How CRM helps Web-to-lead capture with campaign

landing zones Full lifecycle management Configurable lead qualification and

scoring capabilities. Rules-based, automatic allocation Alerts and notifications Lead-to-opportunity conversion

workflow Full audit trail and detailed KPIs

around qualification, conversion and close

Performance Management & AnalyticsTypical Challenges Encountered by our Customerso Viewed as administration / overheado Multiple, disparate sources – finance, web analytics, E-Marketing, sales forecasts etc.o Days spent pulling information togethero Tools are not intuitiveo Rigid formats; not easy to edito Historic snapshoto Not situational

How CRM helps Fully situational – KPIs baked into

the workspace Performance management in real-

time Team and individual dashboards Surface information and services

that are important to each individual Can be fully personalized Fully contextual - link dashboard

components; full drill down Empowerment drives opt-in Reporting Suite

Performance Management & Analytics

Productivity & Automation ToolsTypical Challenges Encountered by our Customerso Disconnected customer information spread across applications, departments, users and deviceso Spending too much time on administrationo Collaborating across teams and departments is challengingo Difficulty remaining productive while out of the officeo Time spent re-entering information from one system to the nexto Process bottlenecks impacting on marketing performance

How CRM helps 360 degree view of customer and

prospect data across departments and interactions

Mobile and Tablet support Team collaboration tools Graphical workflow orchestration Maps integration Task and calendar management Exchange integration

Productivity & Automation Tools

Quantifying Impact,Cost of Not Solving

& ROI

The Great Unwashed

First Pass Qualification

Qualified Lead

Forecasted Opportunity

First Interaction

Nurture Cycle

QSO

Quantifying CRM ROI

Capture qualification information about your visitors

using Web-to-Lead and Landing Zones

Increase targeted visitors to your website through Social Media

Identify nurture candidates through Workflow and Automated List Building

Increase the number of leads through nurture E-Marketing &

Social Media

Ensure qualified opportunities are followed up on a timely

basis through Automatic Lead Allocation, Alerts and

Notifications

Prioritize using Lead Qualification & Scoring Tools

Full traceability back to originating lead sources and campaigns through Opportunity Management

Marketing Effectiveness and Efficiency Improved through:

Campaign Management, Performance Management, Productivity & Automation

Tools

In a more predictab

le way

At a lower cost

Delivered in less time

More of them

Better qualified

opportunities

Higher Value

‘Need to Have’ Metricso Estimated X% increase in the number of

qualified opportunitieso Estimated X% increase in the average

value of an opportunityo Estimated X% improvement in the

opportunity close rate?o Estimated X% increase in the number of

cross/up sell opportunities to existing customers?

o Estimated X% decrease in cost of sale?o Estimated X% reduction in avoidable

marketing spendo Estimated X% increase in the number

customer contracts renewed each year?o Estimated X% increase in the average

contract value?

‘Nice to Have’ Metricso Estimated X% reduction in the length of the

average sales cycle?o Estimated X% improvement in the lead-to-

opportunity conversion rate?o Estimated X% increase in the number of

responses generated by marketing campaigns?

Calculating Top and Bottom Line Impact for 1 Year

Best Practice Case Studies

Parcelforce

o Worldwide Express Parcel division of Royal Mail; delivers over 40 million packages on behalf of its customers annually

o 450 users across marketing and saleso Project to replace multiple, disparate legacy

applications and paper trails with a single, integrated CRM environment

o Solution, based on Sage CRM, manages, orchestrates and tracks all marketing campaigns without oversaturation and improves sales efficiency

o Complete visibility on all marketing interactions with customers and potential customers; granular ROI calculation for each individual campaign

o Doubled ROMI in the first year; project breakeven in less than 1 year (a project requirement); and significant reduction in contract turnaround times

Buffalo Sabres

o NY-based, NHL Eastern League membero 35 Sage CRM users across marketing and

customer serviceo Project to replace multiple, disparate legacy

applications and paper trails with a single, integrated CRM environment

o Solution, based on Sage CRM, delivers sophisticated, yet easy-to-execute database marketing and lead management capabilities – maximizes cross-sell and up-sell opportunities without oversaturation

o Covering season tickets, mini-packs, all access suites, Blue & Gold club membership, corporate packages, Sabres Insiders, Poweplay luncheons, Community and Kid’s Club

o 25% increase in ticket sales and 20% reduction in customer service cost in 1st year

Why Cloud?

o Ideally suited to departmental / workgroup POC

o Rapid roll-outo Frictionless, automatic

upgradeso Limited administrative

overheado Reduces / eliminates the

need for IT resourceo Opex – frees working capital

for core projectso Low up-front cost; spreads

cost more evenly over the

lifetime value of the systemo Predictable cost scalability

Rapid Route-to-Value

Find out more

Sage CRM Solutions provide flexible and robust customer relationship management (CRM) solutions, including Sage ACT!, Sage SalesLogix and Sage CRM.

To find out more visit www.sage.co.uk/crm or call 0845 111 99 88.