Q&A with Brian Gramer: Marketing Automation Software Allows Companies to Manage, Design, Automate and Analyze Integrated Marketing Campaigns by mThink, March 1, 2006 Marketing automation software allows you to perform both campaign management and execution. It helps marketing executives plan, create, manage, execute,automate, track and analyze their entire marketing portfolio from one central business system. Unlike email-only point solutions orCRM solutions, best-of-breed, on-demand marketing automation allows you to manage and execute multichannel permission-based marketing campaigns, both online and offline. Brian Gramer explains how marketing automation software allows companies to manage, design, automate and analyze integrated marketing campaigns. Brian Gramer Vtrenz CEO and Founder Brian Gramer has an indepth understanding of marketing professionals needs and technology trends. Prior to founding Vtrenz in 1999, Mr. Gramer honed his sales and marketing skills with Michelin Tire Corp., McLeod USA and founded AnyCollege.net. Defying the Limits: Can you explain what ondemand marketing automation software is? Brian Gramer: Marketing automation software allows you to perform both campaign management and execution. It helps marketing executives plan, create, manage, execute, automate, track and analyze their entire marketing portfolio from one central business system. Unlike email-only point solutions or CRM solutions, best-of-breed, on-demand marketing automation allows you to manage and execute multichannel permission-based marketing campaigns, both online and offline. DTL: Whats different about automation software as opposed to the old systems? BG: In the past and still today many businesses use either CRM systems or marketing point solutions such as email-only tools to manage or execute campaigns. However, neither CRM solutions nor marketing point solutions have the necessary functionality to allow you to manage, design, automate and analyze multichannel permission-based marketing campaigns. Most CRM systems have a campaign management component but not the necessary execution components. Most email vendors give you limited execution capabilities but rarely any campaign management capabilities. Neither the CRM industry nor marketing point solutions do a very good job at campaign automation. Consequently, marketing departments have had to do complicated, expensive integrations among several point solutions in order to have the necessary capabilities for them to manage their entire relationship marketing process. The limitations of current CRM systems and point solutions is evident in the fact that almost all CRM systems allow integration by third-party vendors in order to execute marketing campaigns. The problem with this option is that it often requires integration of two to four point solutions into a CRM system to do what iMarketing Automation can do, and marketing professionals are finding this to be difficult, expensive and time-consuming to manage especially at the SMB level. Email-only tools are the most common tools for integration into CRM solutions. However, because email-only tools are not built on a relational database, you cannot get historic campaign reporting nor can you manage multichannel campaigns and therefore do not have all the functionality needed to truly automate your marketing processes. For example, you need certain components in a marketing automation product in order to plan, create, manage, execute, automate, track and analyze multichannel permission-based marketing campaigns. Some of the components needed include: a survey or form tool, a landing page or microsite tool, an email tool, a direct mail tool, a relational database, a segmentation tool, an analysis tool and much more. All those components should be tied together when you develop a campaign so that your analysis of the campaign provides a macro- and a microperspective. This allows you to see the results of the campaign as a whole. The level of reporting is crucial in order to make future decisions on product enhancements, pricing changes and who a company wants to market to. With a fully integrated marketing system, I can see who responded to the form that I embedded in the email sent to X group of people and how they responded to that campaign. I can see how many people opened the email and what actions they took within the email such as clicked on a link to download a white paper. I can see how many emails bounced and many other details. Tying in the automation component then allows the user to automate the delivery of additional communications via email or other channels such as direct mail to recipients of a campaign that have taken an action within the original campaign. Triggers can be set up based on campaign behaviors, demographic information or any other information collected on the customer or prospect. The marketing automation product allows you to have all those components in one tool and manage it from your desktop. You can integrate iMarketing Automation into a CRM system much like a point solution, and still have that relational database underneath it. However, you dont need a customer relation management system; iMarketing Automation can also be used stand-alone. DTL: How was it developed? BG: iMarketing Automation was developed by a team of marketing and technology experts, based upon years of research in the marketplace. We talked to marketing people to find out what it is that they want when theyre managing and executing marketing campaigns. Its almost like CRM exclusively for marketing people. Its a component of CRM, a cousin to the CRM industry, but its much different because it was designed from the perspective of marketing professionals. And because it was designed for marketing professionals, it allows you to blend campaign management with execution to do rules-based marketing, which is truly marketing automation. Rules-based marketing allows you to take the way people respond to a campaign, and based on business rules that you establish, send additional communications to them. You can even send them different content based on how they respond. It is impossible to efficiently execute and analyze the information if you dont have a management tool and an execution tool integrated on top of a relational database platform. Theres no way that you can effectively manage and automate integrated marketing campaigns if you dont have these tools working together. DTL: What are the chief advantages of the technology? BG: One of the chief advantages of marketing automation is that it allows you to put your marketing execution into a repeatable, proven process that actually runs itself. You set up the business rules, you set up the content and all you need to do from that point forward is edit the content and review your results. Combine this with the advantages of an ASP (application service provider) or on-demand model in which you dont incur the capital cost of hardware or software or the expense of IT people to manage it and you can literally be turned on and be using the product within minutes. You can customize it to your specific marketing needs, or its ready to go as is. All resulting in a quick return on your marketing investment. Most companies push customers to their website where they capture leads. They may have thousands of people visiting their website each day. And, sometimes they are not even collecting the visitor information. If they are collecting the information, theyre doing it through one form, or maybe even two forms. These forms collect some basic information, and then typically an email notification is generated and routed to somebodys inbox within the company. Somebody then has to manually take that email and either print it off or forward it to somebody else in the organization to get that visitor the information they need. That process is antiquated. We find that it frequently takes weeks, sometimes up to a month, for anybody to follow up to a prospect or customer. In fact, in 2003, META Group (Gartner Group) reported 70 to 90 percent of leads generated from marketing activities go uncalled on by the companys sales department. If your marketing plan is to drive potential customers to your website, why not have a system that automatically segments visitors and immediately sends not just a single generic auto responder email, but a series of autoresponses with highly relevant information that they want? Sending relevant content to the right people at the right time is the key to turning suspects into prospects and customers into repeat customers. iMarketing Automation allows companies to manage, track, easily access and utilize all data being collected from your website so that you can provide relevant information back to prospects and customers in real time. DTL: How is this approach changing the marketplace? BG: People are realizing its just too expensive to pay for custom-built tools. The cost of paying a custom development company to write your back-end business rules and update your back-end database, and to implement some marketing tool isnt comparable to the cost of iMarketing Automation. Marketing is fluid, so every time you design a campaign, if you use the custom development model, youve got to go to a custom developer and tell them what you want to do. Theyve got to custom develop the online forms and the business rules that tie it to the database, and by the time youre done with that, youve spent thousands of dollars. To do some simple marketing activities requires many companies to commit thousands of dollars to their IT people, outsourcing and manual marketing activities. With iMarketing Automation, you can plan, create, manage, execute, automate, track and analyze all of your multichannel permission-based marketing activities with one system, starting at less than $1,000 per month, depending on your specific marketing needs. Custom development shops cant compete. In addition, ad agencies are changing the way they do business. In the past, a traditional ad agency only focused on branding, content, creative and delivering the communication via traditional mass mediums such as TV, radio, print, billboards, etc. You would get these big bills from your ad agency and it was hard to determine whether or not you were getting ROI. Now, an ad agency can use iMarketing Automation to help their clients build permission-based marketing communities by driving prospects from traditional mass mediums to campaign-specific landing pages or Internet portals. Through these portals, companies can interact with their prospects and customers and provide them with relevant information at the right time in an effort to more efficiently move them through the buying cycle. In addition, by creating a separate landing page (portal) for each media used or by utilizing click sources to track the point of origination allows advertising agencies the ability to better track ROI. If they do direct mail, drive them to a landing page. If they do TV, drive them to a landing page. If they do radio, drive them to a landing page. With that approach, you can analyze what media is working best for you. So were changing the way ad agencies work in that were changing the way that theyre accountable for what they do. Were also providing the ad agencies with additional revenue streams. For example, an advertising agency can do all of their offline and online multichannel permissionbased marketing campaigns utilizing Vtrenz iMarketing Automation. Vtrenz provides the technology platform for advertising agencies and then they can provide marketing solutions to their clients. One of the most interesting things about iMarketing Automation is that we are allowing small and mid-size businesses the ability to utilize advanced marketing techniques to increase their business. The cost of developing a product like iMarketing Automation internally is in the millions; no small or mid-size business would have the means to invest that kind of money to build a technology platform that is going to help them manage and execute their marketing campaigns. It would be less expensive to do it manually or to outsource it. But since Vtrenz hosts the technology, iMarketing Automation can be delivered to a range of businesses at a nominal cost because the business does not have to have the hardware, software or IT people to manage it. iMarketing Automation is truly software as a service, a company pays a subscription fee and thats it. Even Fortune 1000 companies have been utilizing our technology. Theyve been paying millions of dollars to manage technology that does what our model does. But now they are realizing that it doesnt make sense to continue to do that. DTL: What do you see as the future of this application? BG: I believe that all B-to-B communications and many of the B-to-C communications are going to be driven electronically, and theyre going to become more and more permissionbased. Businesses and consumers are inundated with communications more than any other time in history and it is getting worse. Today we have TV, TiVo, websites, blogs, instant chat rooms, email, Internet portals, radio, billboards, direct mail, park bench advertising, indoor advertising, point of purchase marketing and so much more. People are tuning out and deleting spammers. And email is not the only spam medium; every mass medium is delivering spam. Spam by definition is any unsolicited communication that you send to an audience. Did you know 88 percent of houses with TiVo do not watch any TV commercials? The marketers who are going to win are going to be the ones that start building communities by embracing multichannel permission-based marketing tactics. This type of marketing will allow companies to get their prospects and customers relevant information at the right time in order to move them quickly through the buying cycle and at the same time give them an experience that gets them to want to tell other people. The only way that youre going to be able to do that is if you have a tool that allows you to automate communications back to people in a dynamic way that allows the content to change based on what theyre asking for. This cant be done manually because the number of requests and business rules necessary to deal with those requests are going to be too enormous to keep up with. DTL: What about mobility? Can the system work offline? BG: It is mobile. For example, if your cell phone has the ability to send email back and forth or if you can get on a website or touch some kind of info collection form, then you can trigger a response from the system. A simple way to look at marketing automation is if youre an airline using a form that allows customers to register for a flight. Customers can sign up to be text messaged via cell phone if their flights going to be late. Some airlines are already doing this, but they are paying millions of dollars to build this internally when they can use iMarketing Automation instead. Any communication coming from a company is a marketing communication. Communications are going to happen in all kinds of different ways. The only concern by industry analysts with on-demand systems has been their view that they are less customizable and integratable. These concerns are no longer valid and are being proven wrong every day. Filed under: Article, CRM Project, Customer Experience, Customer Intelligence, Knowledge, Marketing, Sales Performance, Tools and Processes Tagged under: Hosted Solutions, Targeted Communications