In the October 2008 issue:

• First: The Relationship Between IT and Marketing
• What's Hot: Give New Accounts the Attention They Deserve
• The Interview: Getting Payback from Community
• Research Desk:
  • Ask ITSMA: How Do I Shop for a Public Relations Firm?
  • Recent ITSMA Thought Leadership
  • Classic Insight
• News & Notes
  • Upcoming ITSMA Events

First

Who’s to Blame in the Relationship Between IT and Marketing?

By Chris Koch, ckoch@itsma.com

Here’s a scary finding: In our recent survey on marketing automation, nearly 70% of respondents said they have no formal IT strategy. Marketers don’t think it’s their fault, however—67% of respondents blamed the lack of strategy on a lack of support from IT.

Clearly, we have a relationship problem here. When we asked people about their biggest challenge in marketing automation, 70% said money. But everyone always says that. It’s a bit of a red herring. Our belief is that it’s the relationship with IT that’s really getting in the way here. Following closely behind money as the primary challenges were organizational support and change management processes. Who in the organization is supposed to provide support for technology? And who is supposed to develop change management processes for the implementation of technology? I hope you said IT.

Marketing Needs Help

Having a technology strategy is going to become more and more important to success in marketing because marketing needs more automation—especially as so much of our work begins migrating online. IT decisions have gotten much more complex. Years ago, marketers could get away with approaching their major IT decisions much as consumers do: Discover a need, find a tool, and install it for yourself and perhaps for a few colleagues. But today you need to carefully weigh issues such as scaling the tool to all areas of marketing, data storage and retrieval, and integration. These are not decisions that marketers are equipped to make on their own.

Marketing needs to take steps to fix the relationship with IT. Though IT is the natural target for blame, marketing needs to take a share of it, too. In our survey, we found that only half the marketers had tried to develop a formal liaison relationship with IT (and vice versa). This has to change. If it doesn’t, it’s unlikely that marketing will ever achieve its goals with automation. If you lose the ongoing dialogue with IT below the C level, it’s unlikely that things will go your way at the C level, either.

Find a Volunteer

This is something you can look into and fix today. Do you have someone in your marketing organization who loves IT and is interested in working with IT? Find out who they are and make them your spokesperson. It costs you nothing. They can still do their day jobs.

There are many other mechanisms for creating a better dialogue with IT that are more formal, such as steering committees, periodic joint off-sites, colocating IT and marketing people together, and, at the ragged edge of reality, a coup d’etat. At one of our member companies, the CMO literally took over the responsibility for IT. As you can guess, there were no issues with the marketing automation budget after that.

So before you start being one of those outlaws who goes around IT when you need software, first pick up the phone and see if you can enlist IT’s help. It will hold up your plans a bit, I know, but it’s becoming ever more critical to success.

Join the conversation on my blog at http://chriskoch.wordpress.com.

What's Hot

Give New Accounts the Attention They Deserve

By Jeff Sands, jsands@itsma.com; and Ajit Maira, amaira@itsma.com

New customers get a bad rap: They’re expensive to find and win.

It’s much easier to focus on cross-selling and up-selling existing customers. Indeed, in ITSMA’s recent survey on penetrating new accounts, we found that just one-third of the marketing budget is devoted to acquiring new accounts.

There’s certainly a lot of value to focusing on existing customers, but we think that the balance is out of whack—and we say that with full knowledge that economic conditions are bound to get worse. In fact, we would argue that devoting more resources to acquiring new accounts is even more important during down times.

ITSMA research shows that companies are consistently trying to pare down the number of solution providers with whom they do business, to reduce costs and management complexity. As companies pare back their list of providers, they create opportunities for new providers to step in and sell their capabilities. We think marketers need a unique strategy, a unique process—and perhaps even unique staff—for new account development.

New account development is a necessary process to keep the balance as existing customers leave the fold. For example, if your core markets are North America and Europe, both of which are slowing, you need to look at markets that have more growth potential, such as Asia. If Asia is traditionally an underserved market for you, you need to make a disproportionate investment in new customer acquisition to have any hope of seeing healthy growth overall.

Don’t Use the Same Approach with New Accounts

Of course, you can’t market to new customers in the same way that you approach existing accounts. The overall tactics may be the same, but the campaigns and value propositions are different, according to 88% of the marketers in our survey.

Building awareness is the primary goal with new customers because they may be completely unfamiliar with your company and your position versus competitors. So we’re seeing a majority of marketing dollars for penetrating new accounts going to programs that can make potential new customers aware of who you are, what you represent in the market, and how you can help them address some of the problems that they are facing.

For example, case studies prove that you know what the customer’s situation is, you have worked this problem for others before, and that you have an approach that is the most viable for them to consider as they think about how they are going to address their problems. Executive briefings help position you as a thought leader in certain areas. Inviting key executives from target new customers to these events gives them the ability to network among themselves but also positions you as the expert in this area.

Consider Separate New Account Teams

Perhaps the biggest decision you face is whether to create separate account teams for pursuing new accounts. We are seeing more companies forming new account development teams that are focused on working with marketing on greenfield programs that can help identify new areas or markets and then finding new accounts. In some cases, these take the form of a telesales operation; in others, they are territory salespeople that focus exclusively on developing new accounts.

Another option is to use your channel partners to help build new relationships. Very frequently, a partner company may have a relationship with a potential customer, whereas you might find it difficult to establish the new relationship yourself. But if you have a trusting relationship with the channel partner, who in turn has a trusted relationship with the target customer, you can leverage that relationship to build your own relationship. We see this as especially effective for smaller companies that don’t have the sales and marketing resources to create a dedicated new accounts team.

Pay Attention to Personalities

If you do decide to create a separate new accounts team, you need to choose staff carefully. We have all heard of the hunter/farmer mentality within sales. Well, the same categorizations also apply across the sales and marketing continuum. Some people naturally have that instinct to go after greenfield and newer opportunities, whereas other people are more comfortable servicing existing needs. You need to match people’s own goals and personalities to the job at hand.

Build Awareness

Remember that no matter what path you choose for new accounts, marketing can and should play a leadership role to make prospects more familiar with you. Through a unique set of processes designed specifically for new customers, you can move them to the point where they want to know even more. That provides the opportunity for sales to then go in and present your story directly to these new accounts.

The Interview

Getting Payback from Community

How should B2B marketers focus their community efforts to provide compelling content for members and business value for their companies? For some answers, we went to Bill Johnston, who blogs about online community strategy and runs the Online Community Research Network, a membership organization of online community professionals working to better understand the principal challenges of building and managing online communities. Johnston is also director of Community and Research for research company Forum One Communications and has built B2B communities for software maker Autodesk and IT research and publishing company TechRepublic.

ITSMA: Bill, you recently did a survey of your members about the ROI of community. So, are marketers getting value from communities?

Bill Johnston: The caveat that will be hanging off many of my answers is it depends, because different organizations have different goals and therefore different ways to quantify or qualify value. For example, content creation often is a more legitimate source of value to these companies than fiduciary-based measurement.

ITSMA: Does the lack of direct financial return pose a threat to the future of communities?

Johnston: Even though there is not a direct bottom-line dollar figure coming back to the community sponsors, they are at this point still okay investing in them as a growth mechanism. No one is giving up on them.

The net on benefits is that people have cited everything from deeper engagement to actual improvement on sales conversions for folks participating in a community.

But the one that comes up the most is that communities help solve problems faster and more efficiently. It's exponentially more expensive for companies to provide one-on-one support to customers than it is to provide peer-based support through communities—particularly around technology products. Forrester Research found that the cost per interaction in customer support averages $12 via the contact center versus $0.25 via self-service options. And when you consider that Cisco’s own research found that 43% of its support forum visits are in lieu of opening up a support case, the savings become significant.

ITSMA: Are there other paybacks?

Johnston: Folks in communities are extending product knowledge well beyond this domain of the company that created the product. For example, they may come up with novel uses that the company’s designers never contemplated.

Many folks are also reporting increases in traffic to their main Websites from the communities and more time spent on-site. For example, we had verbatim responses in the survey that said things like, “Our members consumed 49% more page views per session than nonmembers.” They are also seeing a quantifiably more engaged relationship with customers and prospects because of the community site.

ITSMA: What are the business benefits of that increased engagement?

Johnston: We are still building a data set to quantify that, but I would say—this is officially my own opinion at this point—but I would say that it definitely leads to more loyalty and in some cases more evangelism.

I know that when I ran the community at [software provider] Autodesk, our community members skewed higher on brand loyalty to Autodesk and were more likely to recommend Autodesk products than nonmembers were.

ITSMA: Let me play devil's advocate on that one and ask, aren't people who tend to join user communities already more likely to be satisfied users than those who don't join communities?

Johnston: Excellent question. My response to that is, you are aggregating a base of very passionate and active users, and so what's the problem with that? Because you are giving these guys a place to play, you are giving these guys concepts and activities to rally around; the byproduct of that is going to be creating users who are even more passionate.

ITSMA members will receive the full interview with Johnston later this month.

Research Desk

Ask ITSMA: How Do I Shop for a Public Relations Firm?

By Bob Baginski, Senior Vice President, ITSMA

Each month, ITSMA receives a number of queries through Ask ITSMA, a resource designed to give members a quick and easy way to get insight on important services and solutions marketing questions they face. In this column, we will publish some of our favorite questions along with excerpts from our replies.

Is there a referral service for public relations agencies that specialize in technology?

The Public Relations Society of America is a good place to start to get names. But you also need to get recommendations from people you trust. Talk to friends inside other companies who use external PR firms, and ask the PR firms themselves for customer referrals.

Cast a wide net if you are thinking of hiring a firm for a significant relationship. Identify the top 12 firms or so and reach out to them. You may quickly find that many have a competitive conflict—that is, only a few will not be working with one of your competitors. This will be especially true if you work in a large, diverse company. There are exceptions, and some firms play fast and loose, but generally they honor and protect their current clients and have noncompete agreements preventing them from working with clients’ competitors.

I think PR can be a great ROI, but the firms need to be carefully managed. Business executives, who are generally skeptical of the value of PR, need to know that you are in charge.

Beware of agencies that profess to be global. Few truly are, though many have subcontractors in various geographies and are skilled at adding FTEs around the world as business dictates.

	Do you have a sales or marketing question? Visit Ask ITSMA to access our experience, insight, and research results.

Recent ITSMA Thought Leadership

How to Create Marketing Content That Sales Will Actually Use
http://www.itsma.com/research/abstracts/V0043.htm

Most marketing materials are usually too broadly focused or too complex to help salespeople in the heat of the sale. Indeed, 80% of marketing content goes unused. In this Viewpoint, John Aiello, CEO of sales enablement software provider SAVO, offers tips for creating types of content that will work better for salespeople and for tapping into the “black market” of content that salespeople develop on their own.

Are Spreadsheets and CRM Sufficient? Marketing Automation in the 21 st Century
http://www.itsma.com/research/abstracts/OLB080909.htm

The incentives for marketing to automate its operations for more efficiency and effectiveness have never been greater. In this Online Briefing, we untangle the complexity of marketing automation and offer valuable advice—including results from ITSMA’s exclusive survey of best practices, challenges, and ROI from top marketing decision makers’ use of marketing automation technologies.

What Really Matters to Decision Makers? Insight into Key Buying Criteria for Services and Solutions
http://www.itsma.com/research/abstracts/OLB080812.htm

Uncertain times call for razor-sharp marketing focus. This requires a deep and thorough understanding of how customers buy—what really matters most to decision makers. In this Online Briefing, ITSMA’s Julie Schwartz and TechTarget’s Marilou Barsam present the latest results from ITSMA’s annual research program on How Customers Buy Services and Solutions. Survey data and case study examples illuminate ways to align marketing vehicles and content to customers’ acquisition process.

17 Ways to Create More Valuable Leads
http://www.itsma.com/research/abstracts/V0042.htm

Brian Carroll wants us to get passionate about one of marketing’s most important tasks: finding and nurturing leads—80% of which wind up being ignored or discarded. In this Viewpoint, Carroll, who is CEO of InTouch, a lead generation optimization services firm, explains 17 ways to make B2B lead management more effective.

Classic Insight

Check out these ITSMA Online Briefings that were rated highly by ITSMA members:

Online Reputation Management: Bolstering Your Brand Through Conversation and Community
http://www.itsma.com/research/abstracts/OLB071016.htm

Just as important as what you say about your company is what others are saying about you. Today, marketers are looking for the best ways to leverage the Web to enhance their reputations and build their brands. In this Online Briefing, Brian Harvey, senior director of global marketing and strategy at Accenture; Vic Odryna, CEO, Zazzle Technology; and ITSMA’s Bob Baginski discuss how to proactively shape and amplify your reputation online.

Account-Based Marketing: Best Practices and Critical Success Factors
http://www.itsma.com/research/abstracts/OLB070213.htm

ITSMA's Jeff Sands, IBM's Naomi Wilsey, and Xerox's Liz Vega co-present this Briefing on best practices and critical success factors for Account-Based Marketing (ABM), a hot new approach that helps companies deepen relationships and increase revenue with key accounts.

News & Notes

Upcoming ITSMA Events

To view all events, please go to http://www.itsma.com/aspfiles/events/calendar.asp

Marketing 3.0: Challenging the Paradigm and Embracing Change
Annual European Marketing Forum
October 8 (dinner) and 9
Beaumont House, Berkshire, England
http://www.itsma.com/Events/event_desc/08AF10E31.htm

ITSMA’s European Forum brings together the region’s top marketing practitioners and thought leaders every year to discuss where the profession is and where it is going. This year’s event is focused on change and the way leading organizations are shifting their behavior and adopting new approaches. You’ll hear from marketing leaders from BT, Google, HP, and IBM, along with Prof. Malcolm McDonald from the Cranfield School of Management, Richard Lewis from Richard Lewis Communications, Des Lee from Executive Change, and ITSMA’s own Richard Seymour and David Munn, among others.

Some of the 2008 Forum themes that will be explored include:

• Marketing and the Share Price Mindset
• The CIO’s Changing Agenda
• Digital Media and How It Is Changing B2B Marketing
• The Expanding “Spheres” of Influence
• Marketing and the Cultural Dimension
• The Explosion of Key Account Marketing
• Brand Migration and the Role of Reputation Management
• Offshore Marketing and Global Sourcing

Maximizing Marketing’s Influence: The New Marketing Rules
15th Annual Marketing Conference, November 4 and 5
Renaissance Boston Waterfront Hotel
http://www.itsma.com/Events/event_desc/08AC11N32.htm

No more excuses: It’s time for marketing to step up to the plate and lead. Now more than ever we need to maximize our influence and create bold new marketing rules. Join us as we hear insights and success stories from marketing leaders on a wide variety of vital topics—each with a window into what they did, how they led, and the results they achieved. Our keynote speakers will be Jonathan Zittrain, one of the world's leading Internet scholars and author of The Future of the Internet—And How to Stop It, and Thomas H. Davenport, a world-renowned thought-leader and scholar who has helped hundreds of companies revitalize their management practices. Other speakers include:

• Krishnan Chatterjee, Associate Vice President, Business Marketing, HCL Technologies
• Ed Daly, Senior Director, US & Canada Theater Operations & Marketing, Cisco Systems
• Malcolm Frank, Senior Vice President, Marketing & Strategy, Cognizant
• Reed Holden, CEO, Holden Advisors
• Nancy Lyskawa, Vice President, Support Services Marketing, Oracle
• Kelly Nelson , Leader, Strategic Initiatives, Deloitte
• Katharyn White, Vice President, Marketing, IBM Global Business Services

Subscription Information

ITSMA E-ZINE is a monthly email newsletter that provides highlights of new ITSMA research, analysis, ideas, tools, and events relating to marketing and selling technology services and solutions. ITSMA E-ZINE is available without charge and is sent only to opt-in subscribers.

Subscriptions are available in text and HTML versions. To SUBSCRIBE or to change the format of your subscription, visit http://www.itsma.com/aspfiles/press/ezine.asp.

To UNSUBSCRIBE, please email us at unsubscribe@itsma.com or mail us at ITSMA Subscriptions, 420 Bedford Street, Suite 110, Lexington, MA 02420, USA.

Branch information for recipients located in Europe: ITSMA, Grenville Court, Britwell Road, Burnham, Buckinghamshire. SL1 8DF. Company No: FC023364 Branch No: BR006173. Branch registered in England and Wales. VAT Number GB 840 4681 32.

Back issues of ITSMA E-ZINE are available at http://www.itsma.com/News/ezine/default.htm.

(c) Copyright 2008, ITSMA

Please forward this newsletter, but only in its entirety.

Public citation or publication of any information herein is encouraged but subject to U.S. and international copyright law and conventions. Any citation must include full attribution to ITSMA. Individual graphics or paragraphs can be published without permission as long as attribution to ITSMA is included. Publication of longer selections or complete articles requires ITSMA permission. For permission or more information, contact pr@itsma.com