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EXPERT ADVICE
The proliferation of marketing channels represents a key challenge for every CMO seeking
to optimize return on marketing investments. Today, the marketing department is tasked
with maximizing return across dozens of marketing channels.
Most organizations have become intimately familiar with the need to leverage multiple
technologies in marketing -- search engine marketing, marketing automation, Web
analytics, affiliate marketing, e-mail marketing, lead management, etc.
The use of multiple technologies results in silos of valuable information that could be
useful to both marketing and sales. The challenge is figuring out how to deliver actionable
timely information to end users in a way that aids consumption and use.
Recent research from the Aberdeen Group, "The Convergence of Sales and Marketing
Technology," explores the current and planned integration between sales and marketing
technologies among organizations of all shapes and sizes.
Sixty percent of organizations in the December 2007 study indicate the top pressure
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driving integration between sales and marketing technology is the need to increase
top-line revenue. Aberdeen's "Best-in-Class" organizations are enabling sales and
marketing with cross-functional data to drive effectiveness at the operational level,
delivering tangible increases to top-line revenue. Seventy-three percent of Best-in-Class
organizations are integrating one or more marketing tools at the prospect or account level
within CRM.
For the purpose of the research, integration between sales and marketing technology
includes any integration effort that extends the actionable and timely insight of marketing
and/or sales information within marketing and sales technologies.
The average organization in the study (comprised of 315 organizations) uses two to three
different marketing tools (e-mail marketing, marketing automation, keyword, Web
analytics, etc.). Each one of these enabling technologies contains data that is valuable to
marketing and sales.
For this reason, many organizations are starting to focus strategic initiatives to integrate
CRM and a host of applications: Web analytics, e-mail marketing, marketing automation,
affiliate marketing, search, search engine optimization, lead management, etc. This
integration has the potential to deliver enhanced return on marketing investments,
enabling sales to sell more effectively and ultimately increasing top-line revenue.
One of the reasons for conducting the research was to identify the measurable value of
integrating sales and marketing technologies. Is there any value? Should I waste my
organization's time and money on it? If so, what should I hope to accomplish?
The bottom line is that the research suggests that integration results in a measurable
impact to key performance indicators, such as bid-to-win ratio (increased by 21 percent on
average), lead conversion rate (increased by 20 percent on average), average revenue per
account (increased by 21 percent on average), average deal time (decreased by 12
percent on average), and return on marketing campaigns (increased by 20 percent on
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average).
Below is a partial list of benefits that can be realized through sales and marketing
technology integration:
Sales: Qualify prospects more effectively with knowledge of Web site activity.
What products/pages did they view? For how long? How often do they visit?, etc.
Sales: Qualify prospects more effectively. Identify how many times prospects have
been touched with marketing campaigns, the types of campaigns. Are they ready to
buy? (Based on e-mail click-throughs, Web site activity, form completion, or call
center activity, etc.).
Integration Recommendations
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The following recommendations may help mitigate the challenge of working with existing
technology:
Consider replacing outdated legacy solutions -- despite how deeply rooted they may be
within the organization. Legacy systems can slow integration efforts to a crawl. Ironically,
early adopters of integration between sales and marketing tools are at a disadvantage
when it comes to gaining a return on integration initiatives. Today, vendors
wholeheartedly embrace the value of integration between sales and marketing, and thus
support modules or pre-built capabilities to address the challenge of integrating with other
solutions (i.e., most marketing technology providers will address the ability to integrate
with CRM applications).
Aberdeen's research revealed that of the Best-in-Class companies that currently integrate
sales and marketing technology, 54 percent leveraged custom built in-house integration
techniques, and only 18 percent plan to do this in the future. However, 37 percent of the
Best-in-Class plan to use prebuilt integration modules from vendors for future integration
efforts -- an indication that the use of customer-built in-house integration initiatives may
have produced sub-optimal results.
Formalize a periodic performance review between marketing and sales. Fifty-eight percent
of the Best-in-Class have the capability to periodically review performance. These
meetings can be used to discuss the quality of integration efforts. What can be changed?
How can the marketing message be altered, or the sales process optimized? Ultimately,
Best-in-Class achieve superior performance because technology investments are
consistently supported with formalized processes and organizational capabilities to
optimize integration efforts.
Focus on automation. Lead prioritization and scoring tools help automate the flow of leads
from marketing to sales (and often vice versa). Seventy-eight percent of Best-in-Class
currently integrate lead management and CRM. Automation ensures the process does not
get broken by organizational changes or attrition. Consider marketing and sales
integration to be a continuous process of refinement and optimization. The true value of
integration is the ability to constantly adjust and learn from customer behavior.
Technology delivers structure around these processes, but also allows flexibility in changes
to processes. Use lead prioritization or scoring to automatically enter individuals into the
pipeline after reaching marketing milestones.
Start by making sure your sales and marketing functions are working in alignment. This is
a key capability within Best-in-Class organizations. Seventy-three percent have formalized
processes for sharing data between sales and marketing, 58 percent support the periodic
review of sales and marketing success and failure, 73 percent share the same definition
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for "lead" and "qualified lead." Integration is a joint effort and requires constant
optimization from both sides. Executive support is also essential to make sure both
functions are accountable for deliverables and metrics.
1. Prioritize a list of strategic objectives for sales and marketing. (For example,
reduce sales cycle time, increase qualified leads by x percent, improve e-mail
conversion rates, etc.)
3. Map the source(s) of the information in Step 2. Where does the data reside?
Can we even get this information?
The statistics suggest there is, in fact, measurable value in the cross-pollination of sales
and marketing information within CRM and marketing technologies. Aberdeen's report
reveals Best-in-Class companies are integrating these tools. More importantly, they have
achieved increases in key performance indicators as a direct result.
Remember, Best-in-Class organizations are also supporting the tools with people and
processes. One thing is for sure: Integration is not cheap. It requires expensive
investments in people, process and technology. However, when done correctly, integration
between sales and marketing technologies can lead to increases in revenue, higher
conversion, and increased return on marketing investments.
The Aberdeen report, "The Convergence of Sales and Marketing Technologies," is available
for free on the Aberdeen Web site.
Ian Michiels is a senior research analyst at the Aberdeen Group. Michiels covers marketing management and digital
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