Q & A

Getting Marketing and IT on the Same Page: Q&A with Cisco's Theresa Kushner

One of the struggles that many companies face today is creating a collaborative environment for their marketing and information technologies departments. These areas are often at odds, with each department often not fully appreciating or understanding the other. But each business area works differently, and each is very necessary to the overall success of your company. This means that a healthy working relationship between the IT and marketing departments is a must.

At the MarketingProfs Business-to-Business Forum, June 8-9 in Boston, Cisco’s Theresa Kushner will lead a session that will explore this challenge, look at how companies can move past it, and help your company get its marketing and IT departments on the same page, and working together.

Q – At the MarketingProfs B2B Forum, you'll be leading a session entitled Marketing and IT: Forging a Unique Partnership. Many companies seem to struggle with getting their marketing and IT departments on the same page, why do you think this is?

A – It's a case of left brain, right brain. Marketers are traditionally more creative, for every problem they can find at least 50 different solutions. That doesn't often work well for IT who often seems to be more analytical in the approach to a problem—one problem, a few possible solutions, one best solution. While marketing wonders why it takes 6 months to update a system, IT is wondering why Marketing can't understand that system updates are very complicated matters. This difference in the way both approach a problem that sets the organizations on different planes to start then you add in the language barriers—techspeak versus marketspeak—and you have a real standoff.

Q – One of the topics you plan to cover in your session is the necessary roles that both marketing and IT fill in most businesses. Do you think part of the disconnect between these two departments is often due to neither fully understanding the impact of the other, or appreciating the importance of each area?

A – Absolutely. And the disconnect begins with the objectives that each has. IT is concerned with stability, integration, control and management. Marketing, on the other hand, values speed to market and innovation born of an iterative process—trying several avenues before something really works. Imagine IT employing that philosophy—let's just try these three new applications first before we decide which one will integrate best with our sales, manufacturing and financial systems. Although marketers know that IT is critical to their success, IT doesn't always consider marketing among the "mission critical" applications and systems that they support. It's very necessary for both organizations to understand the impact that each has and to appreciate the differences in their approaches.

Q – What are some red flags that a company should look for to alert them to potential communication issues between their marketing and IT departments?

A – The first red flag is the proliferation of systems outside the control or management of the IT department. Marketing is usually very expert at getting their systems built "under the radar of IT." They build databases, deploy workflow systems, and generally "shadow" as much IT capability as they can without being put in the corporate penalty box. Another red flag that IT and marketing are not playing well is the cost in time and money. If marketing and IT are not working together, you may see project delays that result in increased IT costs.

Q – Finally, you no doubt know of many companies that have marketing and IT departments that work very well together. What are some of the steps that these companies took to foster healthy relationships between their marketing and IT departments?

A – Generally, the companies that were born on the Internet (Google, Yahoo, Amazon, etc) do a better job of integrating marketing and IT. They have to—the business is technology dependent. The technology companies, in general, often do a good job of understanding why marketing and IT need to work closely together, but some are better than others. Oracle comes to mind as a company that really understands how to integrate IT and marketing. The purchase of Siebel brought some of that capability to Oracle.

Most of the companies that are good at bringing together IT and marketing are also good at integrating IT into the fabric of their business. That means that they usually have a CIO who views his or her job as the facilitator of the company's success. Another sign of companies that have figured this out is the existence of a Marketing Technologist, a position dedicated to making technology work for marketing. LinkedIn shows over 7000 people who combine marketing and technology. There's hope.


How Better Measurements Can Improve Your Profitability And Bottom Line —Q&A With Jim Lenskold

Companies in every industry are struggling to put effective measurement systems in place that track the metrics that are important to their business.  But even if your company has a solid measurement system in place, is that enough?  Are you still able to distill the results into insights that can help your company better understand how data gained from multiple touchpoints affects performance and lead generation?  Jim Lenskold, President of the Lenskold Group will lead a session at the B2B Forum that will not only show you how to improve your measurement efforts, but also how to tie the results gleamed into your business’ larger strategies for revenue and lead generation growth.  Here, Jim gives us preview of what he’ll be covering during his session at the B2B Forum, and also some advice for B2B companies that are looking to improve their measurement systems and lead generation efforts.

Q – At the Marketing Profs B2B Forum, you'll be leading a session on Putting Measurement Into Action to Improve Leads, Conversions, and ROI.  In your experience, are most B2B companies struggling to measure the 'right things' when tracking conversions and lead generation, or is applying what they have learned to improve their overall strategies a bigger issue?
A – The two really go together. Defining the “right things” to measure requires a clear vision for how you will apply what you’ve learned to improve strategies and performance. As B2B marketers identify key strategic and tactical decisions where they can have the most significant impact on ROI, they can define and prioritize measurements and metrics. Big wins can come from new insights into marketing’s impact on lead quality, lead outcomes, and customer value. Putting measurements into action builds credibility and executive support which leads back to better measurement discipline.

Q – What are some areas that most B2B companies overlook when it comes to improving lead generation?
A – The most significant gaps are associated with lead quality and tracking lead outcomes after the handoff to sales. Marketing generates a return on investment by driving incremental sales and profits. From the customer’s perspective, the marketing and sales cycles are one continuous process that they experience while in their purchase funnel. When companies divide those responsibilities and fail to align and integrate their efforts, it allows significant “leakage” from that purchase funnel. The marketing ROI process helps marketing and sales shift from “competing for credit” on new sales, to “collaborating for credit,” which better reflects the fact that both contribute to influence sales.

Q
– During your session, you'll also talk about the importance that multiple touchpoints have in contributing to lead generation and sales revenue.  For most B2B companies, do they have difficulties in not measuring all of the potential touchpoints, or in understanding how they all work together to drive the end sale/lead generation?
AMeasuring multiple touchpoints certainly adds a bit of complexity compared to just giving full credit to the final lead source. Marketers know it takes multiple touchpoints to engage and win a customer so it is worth the effort to put the right measurements in place that better reflect this reality. My co-presenter at the B2B Forum, Karin McEwen from the global software company The Mathworks, will share the approach they are using to attribute sales credit across multiple touchpoints with basic tracking. We’ll also cover some of the more sophisticated techniques for companies that want the additional precision.

Q
– It seems like having more effective measurement systems in place would improve a B2B company's strategies, and ultimately pay for itself. Given that, why are so many B2B companies struggling to put practical measurements in place, and act on the insights gained?

A – There is no question that better insight into marketing performance and ROI can pay for itself since research has shown companies applying these practices are more likely to be outgrowing their competitors. The culture is the primary barrier and that includes a combination of marketing organizations that are not numbers-oriented, marketing organizations that are not staffed to handle the additional measurement and analytic responsibilities, and companies that are sales-dominant and don’t care to understand how marketing can increase sales performance. But the solution can be quite simple if companies run pilot measurement projects to build a track record of capturing and putting new insights into action.


 
What’s the Recipe for Marketing Success with Social Media? —Q&A with Sandy Carter

As social media usage continues to skyrocket, companies are trying to get up to speed on not only using these tools, but finding a way to successfully integrate them into their existing business strategies.  At the B2B Forum, Sandy Carter will help attendees not only learn more about social media, but also how and when these tools should be added to a company’s existing marketing mix.  In this interview, Sandy gives us her take on the importance of social media for businesses, and some background on some of the topics she’ll be covering during her session at the B2B Forum in Boston:

 
Q – At the Marketing Profs B2B Forum, you'll be leading a session entitled Marketing 2.0: Integrating Social Media Into Your Marketing Mix. How important is it for a company to consider integrating social media into their existing marketing plan, or should they try to make social media separate from the company's other communication efforts?

A – I believe firmly that social media represents a new set of marketing tools. By integrating the Web 2.0 technologies into a marketing plan, you strengthen the plan overall to drive business. If you isolate your social media team, you will not see the results that you need. In fact, I think just as strong compelling value propositions are core to all marketing, social techniques and the use of Web 2.0 technology should be core to all integrated marketing going forward. (You can learn more about a formal methodology I recommend by visiting the site for my recent book, “The New Language of Marketing 2.0”) For example, if you run in-person events today to drive your business, you can add in a Twitter drive to the event to increase registrations. You can generate customer loyalty -- or fans -- by having them tell their stories on blogs, or post pictures on Flickr. You can even use web 2.0 to help follow-up on the leads with enurturing or form an online community to supplement your in-person customer boards. The point is that the magic is in the marketing mix. Not the tools!
 
Q – You obviously work at a very large company. What special considerations do you think a large company faces in trying to use social media, that a small business for example, might not have to worry about?

A – Well, I think everything is a trade-off. There are some advantages that the small companies have and some that the big companies have. Since I work for a large company, I am envious at times at how fast a small company can experiment. This area is changing so rapidly and so many new tools are being added daily, that I think that being able to change on a dime is crucial or to add in a new tool without having to get tons of signoffs could make the difference in a first-mover advantage. But large companies have more resources. And that comes with an advantage as well.

However, the bottom line is I think the primary difference here is not in big or small. But the difference is in how close you are to your customers. The hair stylist I go to just recently used Facebook to increase the purchase of one of his services by 500%. Why? Because he used social media tools with his traditional customer retention methods. He understands what his customers are looking for and could add value. This is similar as to when IBM really listens to its customers and develops its next product by learning not only from its current customers, and focus groups, but by dialoguing in the blogs on product requirements and betas. The bottom line is do you know your goals and your differentiation well enough to use the tools appropriately?
 
Q – As you know, many companies are interested in learning more about social media. What do you think are some of the common misconceptions these companies have about social media?

A – Great question! I think there are a few! First, some companies believe that social media is a magic elixir. They don't realize that social media is just another set of tools to add to the marketing toolbox. Second, some companies focus on the coolness of social media. They get enamored with the tools themselves, and don't focus on what they are trying to do -- drive business! And finally I think that companies don't realize that this is brand new. It is not what they studied in college and is bigger than marketing. It encompasses the business. Social technologies should be part of your market intelligence, your strategic delivery, your development cycle, your customer support, your marketing and your sales. It is a cultural change in how we create business.
 
Q – One of the biggest concerns about using social media, is finding a way to get measurable results. For the company that's wanting to find the ROI of their social media efforts, what should they be looking to track to tell if their social media initiatives are effective?

A – We are all already in the practice of tracking the effectiveness of all the elements of our marketing mix. So it is a great thing to measure the value of social media. I love what Dell did with its Twitter channel by using a special discount code to enable it to track the value. At IBM we add in Web 2.0 elements and measure the effectiveness -- whether driving new opportunities or progressing current opportunity -- over time. That said, think about the value of a relationship -- it is hard to measure that personal relationship just as it is in measuring the online one ! Now even as I write this, IBM and MIT did try to estimate the value of the online connection. IBM Research and MIT's Sloan School of Management found that the average e-mail contact was worth $948 in revenue. To unearth that and other data, they used math formulas to analyze the email traffic, address book and buddy lists of 2600 IBM consultants over a year!

However, you can't measure everything and just because you can measure something doesn't mean that it is the right thing to be watching!
 
Q – Is social media right for every business?

A – I think that this question is the wrong one. The right one is -- what is your overall goal for your company and its business model? What is your compelling value proposition that truly sets you apart? Then you can decide which social media tools to add to your overall company strategy and execution.

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