What Will Campaign Management Be Like In 2020? December 30, 2008Posted by Elana Anderson in Database Marketing, Integrated Marketing, Marketing, Marketing Technology, Online Marketing, Product Marketing, Web Analytics.
Tags: Campaign Management, Database Marketing, Enterprise Marketing Management, Marketing Automation, Marketing Operations Management, Marketing Resource Management, Marketing Technology
I was recently asked what I thought Campaign Management software would be like in 2020. My quick (and somewhat flip) answer is to bemoan the seemingly slow pace at which marketing software has evolved to date. After all, as scary as it may be, 2020 is only 11 years away!
What were you doing 11 years ago? I was working on a project with Eddie Bauer to build a big marketing data warehouse and implement software to explore and mine customer data. Our business objectives? Better understand and drive cross-channel behavior, increase the effectiveness of EB’s catalog marketing efforts, and increase the synergy between the direct (catalog) and and retail channels. Fast forward to today, I continue to see lots of projects that sound very much like that one.
But, to be fair, the marketing world has also changed dramatically in 11 years. Eleven years ago, eCommerce was new and order volumes were low. Eddie Bauer and most other leading multi-channel retailers, were still printing online orders and entering them by hand into the catalog order system. Marketing (and CRM) technology has also largely evolved in this same time period. We’ve seen the growth and demise of great companies like Exchange Applications, Prime Response, and Epiphany. We’ve seen the development of categories like eCommerce and Web Analytics (Omniture has evolved a lot from its early days as SuperStats.com and MyComputer.com).
So, back to the question at hand. What will Campaign Management be like in 2020? I preface my comments with the above to explain why I apply a measure of realism to my fantasies around how dramatically Campaign Management will change in the next 11 years. The technology will change at the rate at which marketing organizations can absorb it. And, the biggest barrier to technology absorption — at least in my experience — is the maturity of the marketing organization and its processes. IT can be another key barrier — a barrier which can be reduced to an extent by on demand solutions. The other bright side of on demand — as I wrote about more than two years ago on Forrester’s Marketing Blog — is that the development innovation cycle can be dramatically decreased.
With the above as preface, my thoughts (appropriately influenced by my current and former colleagues — some of the brightest minds in the marketing technology sector) on Campaign Management in 2020…
What is Campaign Management Anyway?
One key thing that the industry (vendors, analysts, et al) needs to consider is that what we think of as Campaign Management today is not campaign management at all from the marketer perspective. Specifically, the industry largely defines Campaign Management as technology to support outbound direct marketing campaigns. It’s time to take a broader view. To start, we must incorporate the management of marketing communications through inbound marketing channels into the definition. But beyond that, if you really think about how marketers define “campaigns” ( i.e., inclusive of a much broader set of campaign types ranging across direct, online, and traditional mass media), then the definition of Campaign Management needs to expand to enable marketing to manage, automate, and measure any type of marketing campaign. Interestingly, this makes what the industry defines today as Marketing Resource Management (MRM) or Marketing Operations Management (MOM) really Campaign Management (I have never been that keen on terms anyway;-)… It also means that what we know of today as Campaign Management really becomes Centralized Customer Decisioning, Customer Decision Management, or Customer Message Management (none of those are great and I’d love to hear more suggestions, but you get the idea).
Immediate Evolution of Campaign Management
In the immediate term, we absolutely need to see campaign management solutions expanding to provide two key things:
- Integrated support for inbound and outbound marketing. Simply put, Campaign Management solutions can no longer just support outbound marketing. Response rates to outbound marketing activities are continuing to decline and inbound channels (online and offline) offer a tremendous opportunity to interact with an engaged customer. While some CM solutions today have inbound capabilities, the fact that these capabilities are not integrated with the outbound capabilities presents another significant challenge to marketers. The vast majority of companies identify “improving customer experience” as a key corporate priority. The idea of centralized decisioning — which integrates inbound and outbound messaging driven by rich interaction history — is core to helping firms carry interactions seamlessly beyond a single channel.
- Integrated support for online and offline. Most of us recognize that companies can no longer treat the Internet as “new media” or a standalone skunk works marketing function separate from the rest of the marketing organization. Interestingly, the kinds of things that onlinemarketing groups are trying to do today requires many of the core capabilities that most Campaign Management applications possess. But Campaign Management also needs to evolve to deal much more effectively with visitor anonymity, online behavioral data, and web channels. Beyond that, it must also better support marketing’s need to integrate across online channels themselves (yes, current technologies do a poor job of helping marketers integrate their online efforts much less online and offline!) as well as offline or traditional channels.
What Will Happen to Campaign Management Next
When we think beyond the more immediate future, there are some important mid-term priorities:
- Campaign Management must improve and consolidate response attribution. Campaign Management solutions across the board do a mediocre job of capturing and attributing responses. And, this ability needs to extend beyond the attribution to direct marketing offers, but also merge that with touch points such as: an organic search click through, a TV commercial that is running in the area of the customer with a reach of x% of that area’s population, even a banner or video insert ad view on the Internet at the extreme. The other major piece is the ability to evaluate a series of responses to marketing messages to understand the role that each message or the combination of messages has in getting to the final outcome.
- Campaign Management must evolve to support new channels. We are finally starting to see interest in mobile channels really heat up (in the US, not just EMEA and APAC). So far execution (i.e., real action) is still primarily focused on SMS/MMS but the exciting shift will be as more consumers adopt advanced mobile devices and further leverage mobile browsers, GPS, etc. Socialchannels are another good example, Campaign Management needs to figure out how to integrate with and support messaging through social networks and communities. Some of this is possible today but the capabilities need to be fleshed out in much more detail.
- Open EMM will emerge. Feeding off of the need to support new channels, Campaign Management vendors must recognize and accept that innovation is happening the fastest within the channels and media itself. We’ll see technology like HTML, Flash, SVG, TV, eInk/flexible displays, etc. changing so significantly that our notions of landing pages and website offers, web calls to action, and product placement must change along with it. Marketing software has to be brilliant at decisioning, optimization, and integration as well as pulling all marketing activities together to support cohesive planning, management, and measurement, but the software should never hold back the media and channel innovators from pushing the envelope. So, Campaign Management (call it Enterprise Marketing Management if you like) must provide a system of record and flexible application framework into which channel applications can effectively “plug in.” There will never be a single application that does everything for marketing soup to nuts (and marketing groups will never accept one), the key is for the core software platform to provide the organizing framework, the message decisioning infrastructure, and the measurement capability.
- SaaS CM will rise and then move into the cloud. Over the next five years the lion’s share of marketing technology innovation will be in software-as-a-service (SaaS) solutions. As the definition of Campaign Management expands (as noted above) and extends from core direct marketing groups into online groups and into new vertical markets, appetite for easy-to-implement, easy-to-use, lower TCO solutions will escalate. As I also noted previously, a nice by-product of SaaS will be more rapid innovation in the marketing technology sector. But, few highly successful software companies manage their own hosting operations — applications are designed for mega hosting infrastructures (e.g., Microsoft, IBM, Google, Amazon) that have a-million-plus-nodes hosting infrastructure. Smart software companies will design and optimize their apps to leverage virtual servers and storage offered by emerging cloud computing infrastructures.
Beyond these ideas we can dream of technology that supports fully automated marketing processes and black box decisioning, tools that simplify marketing complexity and support collaborative, viral, and community marketing (I don’t know about you, but the ads on Facebook are already starting to get to me!)… We can further imagine that marketing and buyers have a mutual love:love relationship and that marketing has ceased its shouting and focuses purely in a service-oriented role. We’ll continue to work towards that and I’ll continue to preach to it, but if you want me to put my money on the table, I’m telling you that this kind of nirvana is more than 11 years away.
Happy New Year everyone! I’d love to hear what you are thinking along these lines.
See my interview on InsideCRM December 9, 2008Posted by Elana Anderson in Database Marketing, Integrated Marketing, Marketing, Marketing Technology.
Tags: Campaign Management, EMM, Interactive Marketing, Marketing Automation
I’ve gotten some comments and emails from blog readers recently asking me where I’ve been and why I haven’t posted lately. SORRY! The new job at Unica has been very, very busy – somewhat all consuming really. I have been traveling a ton recently and spending a lot of time with customers and prospects. I will pull myself together and share some more detailed thoughts soon.
In the mean time, here are a couple of links to recent publications and events:
- 10 Questions For Unica’s Elana Anderson
- Webcast: Unifying Inbound and Outbound Marketing Communications: the Next Generation of Campaign Management
- The Evolving Marketing Platform: How Unica Makes Marketing Interactive
I’ll be back again soon.
Participate in Forrester Research Direct Marketing Survey August 31, 2008Posted by Elana Anderson in Database Marketing, Marketing Technology.
Tags: EMM, Enterprise Marketing Management, Forrester Research, Marketing Automation, Technology Adoption
My former colleagues at Forrester Research have launched a survey focused on marketing technology usage and adoption as well as marketer’s relationships with internal and external partners. The survey is global in scope and focused on marketing decision-makers having broad responsibility over direct and relationship marketing programs. In exchange for participating in the survey, Forrester is offering a free copy of a recent report and will also share the research report(s) that result from the survey once they are published.
If you are a marketing decision-maker from a large company, please take 10-15 minutes to respond to the survey. Thank you in advance for your participation!
Technology’s Role In Differentiating Customer Experiences April 29, 2008Posted by Elana Anderson in Customer Experience, Database Marketing, Integrated Marketing, Marketing, Marketing Technology, Online Marketing.
Tags: Campaign Management, Enterprise Marketing Management, Marketing Automation, Marketing Resource Management, Marketing Technology Backbone
Marketing organizations are contributing to customer experience initiatives by working to deliver more relevant content in both outbound and inbound channels. While technology is certainly no silver bullet, marketing organizations are turning to technology to help them:
- Automate. As marketing organizations seek to deliver more relevant and individualized customer experiences they begin to change their marketing communications mix away from a pure outbound push model to incorporate messaging tactics driven by customer behaviors and actions. In addition to being very responsive to the customer, these tactics are ideal because they can be automated. Today’s campaign management solutions are maturing beyond support for the traditional push campaigns to facilitate campaign automation through functions like real-time data integration and event detection, multi-stage campaign process flows, and business-rule-driven automation.
- Collaborate. Relevance is not just about the message. Relevance requires an equal focus on time and place. And, when considered from the customer’s perspective, relevance is inherently multichannel and integrated. As marketing organizations work to increase their relevance, become more customer-focused, and create differentiated customer experiences, they will need to collaborate more – a lot more – with other marketing teams and with other functional areas of the company (like customer service). Marketing resource management technology can help facilitate collaboration by providing a consolidated marketing calendar, establishing common work areas for virtual teams, and facilitating processes, as interdisciplinary teams work to design, build, and launch integrated programs.
- Integrate. Integration is a fundamental requirement of relevant marketing. Whether it is integrating disparate data from various systems across the enterprise or integrating teams to streamline marketing processes, technology is required. Moreover, marketing application suites that are themselves integrated and support the entire marketing process – from planning through design, execution, and measurement – can dramatically simplify the complexity that marketers face as they work to become more relevant and customer-focused.
Marketing Organizations Must Increase Their Technology IQ
Just as technology is a critical enabler of relevant marketing, it can also be a major barrier. Why? Many marketing organizations don’t take enough ownership of technology. Marketers – and the technology groups that support them – must recognize that technology is a key component of marketing operations – that relevant marketing requires day-to-day access to data and iterative levels of analysis, needs not well-met by traditional project-focused IT organizations. Marketing organizations that want to differentiate customer experiences through customer-focused and relevant marketing communications and content delivery must bring technology expertise under the umbrella of the marketing organization – either internally or through a trusted services partner that behaves as an extension of the marketing team.