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How do marketing automation projects typically crash and burn?
What are some things that should companies watch out for? Answers may be included in a report.
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9 Answers
Lauren:
There has been lots of research that shows why companies are not getting value from their automation solution.
1. Gartner, Sirius Decisions and Forrester have all shown research over the last 6-months that organizations that develop a solid lead management process and look to automation as the enabler of that process, will get more value and more revenue production. Furthermore last year Frost & Sullivan and Bulldog Solutions performed - http://propellingbrands.com/ a study that showed that more than 40% of respondents stated lack of process was preventing them from getting the value from their automation solutions.
Developing a Lead Management Framework(SM) goes well beyond scoring, nurturing and agreeing on a common definition. A solid process framework includes:
- Data Management
- Lead Planning
- Lead Routing
- Lead Qualification (this is where scoring and definitions come in)
- Lead Nurturing
- Content Mapping
- Metrics
Companies who develop these processes in a collaborative marketing+sales fashion will see the alignment issues dissolve and revenue increase. http://trueinfluence.com/blog/campaign-automation/420-calculating-the-roi-of-...
2. Personnel
The Frost & Sullivan - Bulldog study I referenced above also had the same amount of respondents stating lack of the right or enough people was a barrier to success. Organizations need to understand there is a skills gap with the traditional B2B marketer and the solution is training and education. This goes beyond just training them how to use an automation solution. The training and education needs to focus on the new world of the B2B buyer and the B2B organization. If you do not know how to engage buyers effectively, no amount of automation will change that.
3. Content
Relevant, timely, engaging content is the fuel that makes automation go. Many companies have content in various sources, but they do not have a good understanding of their ideal buyer so they do not deliver it at the right time. Other companies have little content and the development process is daunting. A lack of content or poorly delivered content can derail automation.
4. The Customer
Ultimately my three previous points all come down to this . . . the buyer/customer. Having the right process, the right people and solid content are all about engaging the buyer in a 1-1 dialogue. However, most companies look at automation as a way to make their department more effective or more efficient. Companies need to look at automation as to how it will help them better align with their customers. If it continues to be an inward looking approach the chances of success will be limited.
Carlos Hidalgo
The Annuitas Group
@cahidalgo
Having been a VP of Sales & Customer Success for a Marketing Automation vendor for nearly a decade, here are my experiences with crash and burn (in no particular order and trying to keep it short):
1. Lack of buy in - Don't have enough executive buy-in and/or don't involve key users in the decision-making process. This also includes not getting sales involved in the process and plan. Sales using the features to their fullest extent requires getting them excited about it and making them part of the process.
2. Lack of process - See bullet 1 from Carlos above.
3. Lack of content - Not having enough content to feed the system and take advantage of the 1-1 capabilities. No plan on re-purposing content.
4. Lack of a plan / clear goals and objectives - The result? You use your MA platform as a glorified email tool. Define the goals, then plan the steps to get there.
5. Poor data quality - The most often overlooked and least discussed. Data is the fuel of your engine. Does not matter how good your programs, processes and content are, if your data quality is poor so will be your results.
6. Boiling the ocean - having a run before you walk approach. Start with some of the basics and then add on as you go. When you first get going don't set up this massive drip program combined with a massive scoring model. Start, test, refine, test, refine, add, test ....
7. No testing and refinement - Setting it and forgetting it is not the way to go. Scoring models, drip campaigns and testing should be under constant review
Happy hunting.
Hi Lauren
The single largest issue with MA is a misalignment between sales and marketing objectives. Example: poor definition of a "good lead" or an "active prospect." MA should dovetail with sales efforts, making the most of valuable sales resources (when a human touch is critical) by attracting relevant prospects, and then nurturing them until they are sales ready.
Another big issue here is that marketing and sales are often compensated for entirely different objectives. I like what Matt Heinz (http://heinzmarketing.com) said: "the ultimate measure of marketing effectiveness is not activity, it's results. incentivize (marketing and sales) on a short term sales goal."
MA is only as effective as the overall plan that calls out what it is for and what it does.
Good points Carlos and Dan. I'd like to follow on to Dan's reference to "results". Its very important that the marketing team employ a strategy in the 1st 90 days that delivers quantifiable results that capture the sales team's attention. There are a number of different campaigns that can deliver a quick win that gets buy-in from sales and executive management. Marketing automation has developed a reputation for taking 9-12 months before significant results are realized and acknowledged. With today's ADHD executive impatience, that is just too long and is not a function of the technology, but if the implementation strategy and plan. In every project I'm involved in, we are always to find 1 or 2 low-hanging fruit opportunities to wow the sales team with qualified leads they were missing out on.
Though I agree with what Carlos has detailed, the implementation plan has to approach putting the processes and programs in place as if we are changing all four tires on the car while still going 60 mph. Process change for any company takes time and patience, and this is especially true when dealing with sales and marketing. The most successful MA projects ensure periodic wins at least every 60-90 days to capture and keep sales attention and to satisfy the ADHD executive.
With all due respect, Peter, but are you on a "copy & paste"-mission to bash marketing automation?
I personally don't find it very respectful towards the questioners to paste the same reply to everybody. So far I counted 5 discussions where you posted exactly the same content.
Great answers here. IMHO, planning and processes are the key to success in marketing automation. Getting everyone on the same team, agreeing on definitions, crafting buyer personas and getting answers to the questions buyers need answered at all key elements in a successful marketing automation project.
For more, visit our free education page:
http://www.findnewcustomers.com/education
Primary reasons for MA failure (in no particular order):
1) No content marketing plan
2) Blind focus on the technology solving the problem instead of mixing 'art' and human resources into the MA plan & execution.
3) Business doesn't understand who their ideal customer is - no buyer personas or profiles (which leads to development of the content marketing plan, website, nurture tracks, scoring, etc.)
This is a great question and I really like the answers given, especially Carlos, Justin, and Henry.
I would add my $0.02 here and say you have three points of potential failure in a MA (and probably any software implementation) project.
1. Prior to beginning the installation
2. During the installation
3. After the system is running
As Justin pointed out, unless you have buy-in, the project is doomed from the start. This means buy-in from senior management (do you really have the budget approved?) as well as Sales. Also, getting the necessary resources (time, money, people) is key if the project is to be successful.
Planning, as Dave mentioned, especially a content marketing plan is probably something that can bite you during and after the installation is complete. No content or no plan for creating content won't take you far.
During the implementation you have to ensure data quality, lead definition, etc. as others pointed out.
Finally, to ensure the system will actually be used, it boils down to content, content, and more content. What seem to work in some cases is to start small and slowly build more content, refine the scoring model and metrics being used, and get feedback from sales.
It would be interesting to see the final report you put together, Lauren. Please share with the community! :-)
This may give you some clues as to the problems...
1. Marketing Automation is built on the old-fashioned push model of marketing.
2. MA is based on the discredited “Marketing makes leads for Sales” ideology.
3. MA is designed for enterprise corporations, not mid-market B2B companies.
4. Email is no longer a powerful prospecting tool.
5. MA doesn’t integrate social media.
6. Few web visitors fill out a form – and most form fillers are not the decision maker.
7. Most B2B deals have multiple decision makers – MA finds only one.
8. Lead nurturing relies on too rigid a decision making model.
9. Lead scoring is an inaccurate view of buyer intent.
10. MA doesn’t collect data from buyers, and wastes what it finds.
11. MA ends up running the marketing department, rather than being a tool for it.
12. MA doesn’t show you how to improve and integrate all of your marketing programmes.
13. MA doesn’t give you the reporting you require to show marketing ROI in the boardroom.
14. MA separates marketing and sales as they see different data.
For more details go here...
http://www.marketingpipeline.co.uk/downloads/LeadFormix_move_on_from_MA.pdf
You might also find this interesting as it questions the methodologies behind nurturing:
http://www.marketingpipeline.co.uk/when-is-a-lead-really-a-lead/
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