Join Gleanster Principal Analyst for a look at building a business case for localized marketing automation. You'll learn how to frame the challenges internally, how LMA technology can help facilitate cost savings and sales lift, and most importantly - how to justify the investment with tangible numbers.
Michiels references an ROI model built by Gleanster that allows marketers to calculate the benefits of localized marketing using internal numbers.
Building a Business Case for Localized Marketing Automation
1. Ian Michiels
Principal Analyst
Gleanster Research
Featured Speaker:
WEBINAR
Building a Business Case for Local Marketing Automation
COMPLIMENTSOF:
SusanTormollen
VP of Marketing
Balihoo
2. Building a BusinessCase for
Local MarketingAutomation
March ,2014
Ian Michiels
Principal & Managing Director
Gleanster Research
COMPLIMENTSOF:
3. Agenda
What is Local Marketing Engagement? Why is it necessary?
What tools are critical to supporting local efforts?
How do you quickly build a business case for Localized Marketing
Automation?
Recommendations for making the case stick.
Justification by the numbers.
Best practices for national brands
4. TODAY’S STATS
Total survey responses: 914
PERFORMANCE
BASEDALGORITHM
All
Respondents
2013 LMA
Survey
(Nov. 2013)
n= 265
Digital
Engagement
(Sept. 2013)
n= 649
Top Performers:
Respondents that
achievedTopQuartile
performance in key KPI’s
Everyone Else
Gleanster
Benchmark
Stats
5. Importance of
Digital for
Brand
Marketers
Digital is critical
to future success
I understand
how to use digital
Lack of
time
Lack of
resources
Unsatisfied with
digital execution
Internal
support
84%
61% 76%!
? ? ?
* n= 78 Brand Marketers, November 2013 Gleanster LMA Survey
13. Redundant
Spend &
Agency
Relationships
77%
Local affiliates and local
marketers that managed
relationships with local
agencies and consultants
to create localized versions
of marketing materials
(outside of what corporate
marketing provided).
LOCAL MARKETING
15. If you don’t
know these,
you have no
case.
What are you trying to accomplish?
• Pressing reasons to implement
• Clearly defined challenges
• Current-to-future state understanding
Quantifiable Benefits
• What do we get?
• How long will it take?
• How much will it cost?
16. What are Local
Marketing
Automation
Tools?
• EmailCampaigns
• EmailTemplates
• BasicAnalytics
• List Management
• Drip Marketing
• Landing Page Hosting
• WebAnalytics
• Lead Scoring
• CRM Integration
• Trigger Marketing
• Social Marketing
• Preference Management
• DynamicTemplates
• Permissions & Security
• Asset Management
• VersionControl
• LocalWebsites
• Paid Search
• Local List Management
• Comm. Frequency Caps
• Workflow & Approvals
• HolisticAnalytics
• Co-Op Fund Management
EMAIL MARKETING
MARKETINGAUTOMATION
LOCAL MARKETINGAUTOMATION
GeneralCapabilities/Features
17. Why doTop
Performers
Invest in LMA?
28%
32%
41%
42%
47%
49%
55%
59%
65%
76%
0% 25% 50% 75%
Customer preference management
Regulatory compliance
Empower local marketers
Reduce campaign cycle-time
Visibility on marketing effectiveness
Control budget variance
Personalize local marketing materials
Control agency spend
Reduce costs
Increase revenue
Top Performers
Revenue
Cost / Efficiency
18. Basics of a
Solid Business
Case
Preparation
Understanding
Funded
Investment
19. A quick
checklist for
preparing the
business case
Pressing reason to act
Documented current state
Understanding of future state
2-3 options for solving the challenges
Understanding of stakeholders impacted
Expected benefits (Quantifiable)
Timeline
Cost
Decision makers need to
buy into your initiative over
x many others.
20. Bridging the
gap between
current and
future state
Current State Future State???
Is your Business Case
• What will we solve?
• What is required to solve it?
• Who will be involved?
• What’s the benefit?
• When will the benefit be realized?
24. 3 Benefits to
Link to
Tangible
Return
REVENUE
Sales
AverageOrderValue
Up-Selling
Cross-Selling
Frequency of Sale
Customer Retention
COST
Time Savings (Resource
Costs)
Agency Spend
Technology Licenses
Asset Licenses
Data Integration and IT
Support
CUSTOMER EXPERIENCE
Personalized Messaging
CentralizedCommunication
Frequency Management
Improved Segmentation
BrandConsistency
Unified Multi-Channel
Communications
Percentage of Top
Performers that justify
ongoing success of
local marketing
automation by
successfully achieving
increased QoQ sales
objectives.
Versus 11% of All Other
organizations who
claimed the same.
52%
Everyone Else
Top Performers
28. Recommendations
Be open to changing processes.
Engage all stakeholders and
have a plan for managing them.
Consider a phased rollout.
Benchmark existing stats before
starting the implementation.
Marketers who know this stuff
have very successful careers
because most marketers don’t
want to know this stuff.
Consumers are local, and truly have always been local. Until mass media came along, brands were local too.But from the time of mass media until now, national brands built awareness and created demand for their products using national tactics like national advertising and broadcast and even their national website, and then they relied on their local affiliates (channel partners, agents, etc) to capture the final consumer demand and make the sale.But the way consumers investigate products and services, and the way they shop has changed. We’ve all read the stats, of course, but the fact that :97% of consumers use online media to shop locally (BIA/Kesley)78% of mobile phone searches result in a purchase (comScore)is remarkable…. AND when you consider that …consumers use 10+ mediums before making a purchase decision. (BIA Kelsey), the national brands marketers job just got a whole lot harder. In fact, I recently read that over 75% of marketers believe there has been more changes to the marketing landscape in the last 2 years, than in the previous 50.So what are leading national brands doing? At Balihoo, we have the opportunity to work with some of the top brands in the country, including Aflac, Geico, Wendy’s, New Balance, and Kohler (I think one of our Kohler client’s is actually on the webinar today) and there are over 350,000 local affiliates who access our platform.________________________________________________On top of that, even though consumers use the internet to investigate and make purchase decisions, they ultimately shop in their local markets. In fact, 80% of consumer shopping is done within 20 miles of home or office. (DMA)
This shift in the marketing landscape has provided National Marketers with a huge opportunity at the national marketing level…Better TargetingBetter AnalyticsMore measurable ROI…but has caused a serious problem for brands who rely on local outlets to sell their products. Local marketers can not keep up with the changing landscape.
Local marketers are comfortable doing traditional tactics. In fact. Balihoo’s data on over 350,000 local marketers, show that over 95% of these local affiliates, even when given digital campaigns and tactics, will choose to traditional tactics. It’s what they know how to do and it is what they are comfortable doing. Brands who rely on local marketers to execute local miss 50% of the local marketing mix and, they potentially miss 50% of consumer interest.Local marketers stay to the left with traditional, less targeted, tactics.
Balihoo frequently analyzes trends in local affiliate media usage with the campaigns that are running through Balihoo’s platform. As you can see on this chart, local marketers do what they are most comfortable executing—traditional media. The first digital tactic to appear on this chart is email at #12 in terms of $s spent.
Talking points:Yet, there is a noticeable difference between local marketers being left to make their own decisions (on the previous slides—the almost exclusively traditional tactics) and when national brands direct the strategy and execution (digital—search, local websites, email).Leading national brands are offering subscription based digital programs to their channel. And, in many cases they are choosing to execute on behalf of their local affiliates, instead of taking a “Build it and they will come” approach.
Traditionally, national brands used the “by” approach. Offering their local channel partners tools and templates and allowing them to run the campaigns how they wish using brand compliant materials and some co-op incentives. We have some clients that still do this, and this weekend, I ran in to one of this brand’s local resellers. Turns out our kids go to the same school. She told me her corporate brands has all kinds of great materials for her, but it still takes her 2 weeks of work to plan all her marketing for the year and get it set up. I mentioned the idea of subscription-based campaigns and PPC campaigns where all she’d have to do is say “yes, sign me up” and that it would run on her behalf…and she was amazed. She said “I have a business to run, if the marketing was easier, quicker and worked, I’d be thrilled”And, that’s what our more successful national brand customers are doing. They are using the Balihoo LMA platform to execute digital programs either in conjunction with or on behalf of, their local customers. And, they are still making the traditional tools available for the those local resellers and affiliates who want them.Interestingly, brands who take the build it and they will come approach, typically see 15-20% engagement of programs from their local affiliates, whereas national brands who offer with and for programs, see between 80-100% engagement._______________________________________________________________________________Additional notes for hard copy readers of slides:There are three modes of local marketing automation, and many brands choose to use a combination of the three. I’ll provide you with a quick overview and then we will look at an actual use cases.By Local – In the “By Local” mode, the lion’s share of decisions are made by the local marketer when executing a local campaign, but they do so within the guidelines set up by the national brand to ensure that campaign assets are brand-compliant. The local marketer makes the decisions on budget, timing, media channels, frequency, etc.With Local – The “With Local” mode combines a shared execution between the brand and the local affiliate in which the brand makes most of the sophisticated decisions and the affiliate makes some of the simpler, but often extremely valuable decisions in terms of a given tactic. These decisions should could be data-based or it could be decided which campaign to run/subscribe/fund. For Local – The “For Local” mode is used when brands have enough quality data and knowledge to act on behalf of the local affiliates. This mode works particularly well for digital tactics where the local marketer likely does not have the skill, resources, or time to properly plan and execute the campaign.
Talking points:Balihoo is the premier provider of local marketing automation technology. Our cloud-based technology incorporates a full suite of solution modules allowing national brands and agencies to think big and execute precisely. By marrying powerful technology and data (yours,ours and third party) brands and agencies are able to activate national campaigns at scale with personalized, geo-specific targeting and measurable results. Balihoo's customers quickly realize decreased marketing expenses and increased local sales revenue.