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Transcript of PIA Leadership Summit 2014
1 © 2014 InfoTrends www.infotrends.com © 2014 InfoTrends
Crea%ng Client Value 2014 Print Leadership Summit
Kate Dunn Director June 3, 2014
2 © 2014 InfoTrends www.infotrends.com
Objec%ves
• Why the Value Discussion is Important
• Defini%ons of Value • Calcula%ng the Value • Next Steps
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$0
$40
$80
$120
$160
'89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19
Analog Print
Digital Adver%sing and Promo%on
Digital Print
U.S. Print and Online Adver%sing Revenues ($B)
Disrup%on and Transforma%on
Segments: U.S. Department of Commerce, IAB, InfoTrends
Graphic Communica%ons: A Market in Transi%on
4 © 2014 InfoTrends www.infotrends.com
0
100
200
300
400
500
600
2011 2012 2013 2014 2015 2016
Ann
ual I
mpr
essi
ons
(B)
Process Color
B&W
Source: InfoTrends’ U.S. Print On Demand 2012–2017 Market Forecast
Overall 1.1% CAGR 582 B 550 B
Annual Impressions: Produc%on Copying and Digital Prin%ng
-‐5.6% CAGR
14.2% CAGR
5 © 2014 InfoTrends www.infotrends.com
8.0 5.7
29.2 33.1
0
10
20
30
40
50
2012 2017
$Bill
ions
Process Color
B&W
$37.2 Billion $39.8 Billion
Print on Demand Market Retail Value of Print: 2012-‐2017
Source: InfoTrends’ U.S. Print On Demand 2012–2017 Market Forecast
Overall 0.8% CAGR
-‐6.8% CAGR
2.5% CAGR
6 © 2014 InfoTrends www.infotrends.com
26.6% 22.4%
6% 6%
12.6% 12.5%
31.7% 32.7%
9.7% 10.8%
13.3% 15.6%
0%
20%
40%
60%
80%
100%
2011 2013
Value-Added Services
Wide-Format Digital Printing
Digital Printing
Finishing
Other Conventional Printing
Offset Printing
N = 687
Focus on the Growth Opportunity PSP Revenue by Service
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Not Important at All 10.4%
Somewhat Unimportant
12.1%
Neither Important nor Unimportant
32.7%
Somewhat Important 32.3%
Extremely Important 12.6%
Enterprises Want their PSPs to Offer Integrated Marke%ng Services
How important is it for a print services vendor to offer mulX-‐channel integrated markeXng?
N = 896 Source: Understanding Ver-cal Markets: Enterprise Communica-on Requirements; InfoTrends 2012
Nearly 45% of respondents think it’s important for a print
services vendor to offer mul%-‐channel integrated
marke%ng.
8 © 2014 InfoTrends www.infotrends.com
One to One Gulfcoast: Helping Non-‐Profits
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• Business will double this year
• Since the company’s incep%on in 2003, it will have generated more than $100 million in new funds for clients by year end
It’s About Results!
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External Vendor Focus
For every $1 spent with external
produc%on vendors, the organiza%on spends $6-‐ $14 on internal processes.
Source: Point Balance, Four Reasons to Use a Marke-ng Asset Management Solu-on
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InnerWorkings: Managing the Supply Chain
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A Focused, Well-‐ Defined Approach
“InnerWorkings is a global print management provider. We use technology to drive cost savings throughout our customers' markeXng and print supply chain.”
Record Results in Our Industry
• $201.4 million in revenues
• 29% YOY increase • 19% organic revenue growth
Record Results
13 © 2014 InfoTrends www.infotrends.com
N = 166 Source: U.S. Produc-on So@ware Investment Outlook, InfoTrends 2013
Which of the following are your most profitable markeXng services?
20.5%
6.6%
7.2%
7.2%
8.4%
9.0%
9.0%
12.0%
18.1%
40.4%
55.4%
0% 20% 40% 60%
We don’t offer marketing services
Other
Personalized URLs
Marketing campaign tracking
Social media advertising
Personalized e-‐mail marketing services
Data cleansing/management
Social media marketing
Custom Web/Storefront development
Personalized, 1:1 print communications
Print related marketing
Most Profitable Marke%ng Services
Three Responses Permifed
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Has the Transi%on to MSP Worked?
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This?
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Or This?
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True Differen%a%on
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Product Leadership Opera%onal Excellence
Price-‐ vs. Product-‐Based Differen%a%on
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Customer In%macy
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So What’s The Problem?
Crea%ng customer in%macy the right way requires:
• A focus (horizontal or ver%cal) • In%mate knowledge of the niche: Your customer’s business,
its markets, and its compe%tors
• A different sales approach, calling on different decision-‐makers and using a different sales methodology
• Universal commitment to the niche by the company − The enXre company must understand what you do, who you do it for,
and why it’s important
21 © 2014 InfoTrends www.infotrends.com
What Are You Striving For?
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Crea%ng Value
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We Surveyed…
2,010 Small and
Medium-‐Sized Businesses (26 Different
Types)
1,026 Enterprises across
8 VerXcal Markets
24 © 2014 InfoTrends www.infotrends.com
1%
15%
17%
18%
18%
18%
19%
22%
33%
37%
74%
0% 20% 40% 60% 80%
Other
Generate leads/demand
Increase brand awareness
Introduce new products or services
Improve business productivity
Enter new markets or geographies
Strengthen relationships with customers/increaserenewals
Reduce and control operational costs
Retain existing customers
Expand existing customer relationships
Gain new customers
Customers are the Top Three Business Priori%es
Three Responses Permifed
What are your top business markeXng prioriXes for the next 12 months?
N = 2,010 Small & Medium-‐Sized Businesses Source: Capturing the SMB Marke-ng Automa-on Opportunity, InfoTrends
25 © 2014 InfoTrends www.infotrends.com
Most Companies Manage Marke%ng Internally
Yes, we have dedicated employee(s)
53.6%
No, we use an outside service for
all marketing activities7.4%
Yes, multiple employees share the responsibilities
39.0%
Does your business have employees responsible for managing markeXng acXviXes?
N = 2,010 Small & Medium-‐Sized Businesses Source: Capturing the SMB Marke-ng Automa-on Opportunity, InfoTrends
26 © 2014 InfoTrends www.infotrends.com
Top Media Channels Used to Promote Business
4%
4%
5%
6%
7%
9%
10%
12%
17%
17%
19%
43%
10%
9%
15%
16%
39%
14%
19%
30%
36%
14%
33%
31%
4%
12%
9%
8%
4%
12%
13%
14%
8%
7%
10%
13%
12%
13%
20%
9%
10%
6%
4%
5%
0% 20% 40% 60% 80% 100%
Billboard
Television
Radio
Catalog
Print directory (e.g., Yellow Pages)
Telemarketing
Magazine ads
Newspaper ads or ad inserts
Printed direct mail (e.g., postcard)
Wireless/Mobile (e.g., SMS)
Signage/Point of sale advertising
e-‐Mail
Yes, and use will increase Yes, and use will stay constant Yes, but use will decrease No, but considering use
Do you currently use the following mass media or direct markeXng channels to promote your business?
MulXple Responses Permifed
N = 2,010 Small & Medium-‐Sized Businesses Source: Capturing the SMB Marke-ng Automa-on Opportunity, InfoTrends
27 © 2014 InfoTrends www.infotrends.com
8.7%
8.2%
7.6%
7.6%
6.0%
0% 2% 4% 6% 8% 10%
Print, e-‐mail, web landingpages, and mobile
marketing
Print, e-‐mail, and weblanding pages
Print and web landingpages
Print and e-‐mail
Print only
What is the average RESPONSE rate of campaigns that use the following combinaXons of media channels? (Means)
N = Varies; Base: All respondents Source: Capturing the SMB Marke-ng Automa-on Opportunity, InfoTrends
More Campaign Channels Mean a Beker Response!
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Of the people who responded, what percentage purchased or were converted into new business? (Means)
19.0%
16.5%
15.3%
18.3%
16.2%
0% 5% 10% 15% 20% 25%
Print, e-‐mail, web landingpages, and mobile
marketing
Print, e-‐mail, and weblanding pages
Print and web landing pages
Print and e-‐mail
Print only
More Campaign Channels Mean Beker Business Results!
N = Varies; Base: All respondents Source: Capturing the SMB Marke-ng Automa-on Opportunity, InfoTrends
29 © 2014 InfoTrends www.infotrends.com
3.9%
9.2%
10.2%
11.3%
11.3%
13.6%
14.7%
17.8%
19.8%
38.9%
61.2%
3.2%
3.8%
10.8%
1.4%
8.4%
9.0%
11.1%
13.5%
12.5%
15.8%
18.5%
35.4%
54.5%
0% 20% 40% 60% 80%
Do not know
Other
Signage/Point of sale advertising
Magazine ads
Online directory
Print directory
Search engine marketing
Social network presence
Newspaper ads or ad inserts
Printed direct mail
e-‐Mail
Company Website
Customer Acquisition
Business Awareness
Three Responses Permifed
What are the top media channels responsible for business awareness or customer acquisiXon?
No Clear Difference for Awareness vs. Acquisi%on
N = 2,010 Small & Medium-‐Sized Businesses Source: Capturing the SMB Marke-ng Automa-on Opportunity, InfoTrends
30 © 2014 InfoTrends www.infotrends.com
Top Challenges When Marke%ng to Exis%ng Customers
0.6%
1.3%
10.7%
11.5%
14.6%
14.9%
15.6%
20.3%
21.9%
23.3%
29.6%
39.2%
41.4%
0% 10% 20% 30% 40% 50%
No challenges
Other
Don't know where to begin
Designing collateral
Finding the right external provider
Personalization of marketing collateral
Lack of expertise
Lack of customer or prospect data
Not enough staff
Measuring results or ROI
Understanding and using new marketing channels
Not enough time
Campaign costs
Three Responses Permifed
What are your business’ top challenges when markeXng to exisXng customers and prospects?
Exper%se
Cost Time
N = 2,010 Small & Medium-‐Sized Businesses Source: Capturing the SMB Marke-ng Automa-on Opportunity, InfoTrends
31 © 2014 InfoTrends www.infotrends.com
How is/will your company’s total spending (be) distributed by the following types of communicaXon?
N = 1,026 Source: Understanding Ver-cal Markets: Enterprise Communica-on Requirements; InfoTrends 2012
Projected Annual Growth
Rate
8.8%
-‐2.1%
1.5%
4.9%
-‐6.2%
Key Findings
• Mobile is the fastest-‐growing channel, followed by online/web
• Spending on print is the highest, but this is a declining channel
• Print remains the largest channel even aqer 2 years, but by a small margin
Communica%on Spending Distribu%on
34.1% 29.9%
25.3% 27.8%
16.2% 16.7%
11.7% 11.2%
10.2% 12.0%
0%
20%
40%
60%
80%
100%
Last 12 Months Next 2 Years
Print Online/Web Video Audio Mobile Other
32 © 2014 InfoTrends www.infotrends.com
Growth of Mobile Communica%ons Channel Spending
• Among all communica%on channels, the mobile channel will experience the highest growth rate in terms of spending.
• Online/web has the next highest growth rate.
Spending Growth Rates by Channel
Print Video Audio Online / Web Mobile
Educa%on -‐7.3% 7.6% 3.5% 0.3% 9.3%
Financial -‐8.8% 3.1% -‐1.3% 5.0% 17.5%
Healthcare -‐4.6% 5.1% -‐2.1% 5.2% 0.0%
Hospitality -‐8.7% 1.0% 1.4% 6.5% 6.4%
Insurance -‐8.4% 1.4% -‐0.9% 7.0% 13.8%
Manufacturing -‐5.2% 2.0% -‐3.0% 6.4% 4.7%
Retail -‐5.4% -‐4.5% -‐9.3% 9.4% 17.6%
U%li%es -‐1.9% 0.8% -‐2.5% -‐0.8% 8.4%
33 © 2014 InfoTrends www.infotrends.com
What percentage of your customer communicaXons or markeXng campaigns fit into the following categories?
Segmented marketing
(One-‐to-‐few) 33.4%
Personalized marketing
(One-‐to-‐one)29.2% Mass marketing
(One-‐to-‐many)37.4%
Audience Targe%ng Approaches
N = 1,026 Source: Understanding Ver-cal Markets: Enterprise Communica-on Requirements; InfoTrends 2012
34 © 2014 InfoTrends www.infotrends.com
How many different media types does your company use for a typical customer communicaXon/markeXng campaign?
Key Findings • Average number of media
types used in a campaign: 3
• 47% of printed markeXng materials were linked to online digital channels in past 12 months
N = 1,026 Source: Understanding Ver-cal Markets: Enterprise Communica-on Requirements; InfoTrends 2012
Number of Media Channels
One 8.8%
Two 30.2%
Three 36.4%
Four 13.4%
Five or more 3.7%
Don’t know 7.6%
35 © 2014 InfoTrends www.infotrends.com
14.8%
15.6%
20.4%
21.2%
25.7%
26.2%
29.4%
31.5%
32.0%
33.9%
0% 10% 20% 30% 40%
Create buzz
Competitors are doing it
Expand my brand beyond products featured in a printedpiece
Experimentation with emerging technology
Add interactivity to traditional media
Capture information
Integrate social media
Boost response rates
Reach a target demographic
Reach a broader audience
What are your company’s top reasons for blending print and digital channels?
N = 378 Respondents who are blending print and digital channels Source: Understanding Ver-cal Markets: Enterprise Communica-on Requirements; InfoTrends 2012
Three Responses Permifed
Reasons for Blending Media Channels
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How oqen do you use a print services vendor for mulX-‐channel integrated markeXng?
N = 402 Respondents who see the importance of ancillary services Source: Understanding Ver-cal Markets: Enterprise Communica-on Requirements; InfoTrends 2012
Always 11.7%
Omen 35.6%
Some%mes 40.5%
Never 12.2%
Key Finding
• Print service providers are commonly used for mulX-‐channel integrated markeXng campaigns.
Using Printers for Integrated Marke%ng
37 © 2014 InfoTrends www.infotrends.com
Services Model Transforma%on
PSP Model
Agency Model
MSP Model
• Cunng-‐edge/Trendy
• Services-‐focused (w/ produc%on partnerships)
• Strategy/Idea generators
• Resource/Rela%onship management
• ProacXve • Full service • Cross-‐media
• Value-‐driven • Customer/Program-‐focused
• Reac%ve • Produc%on-‐oriented • Fulfillment
• Contract/Job-‐focused
38 © 2014 InfoTrends www.infotrends.com
Crea%ng Value
• Capturing an opportunity • Elimina%ng a pain
39 © 2014 InfoTrends www.infotrends.com
How Much Do Companies Spend on Marke%ng?
Type of Company Marke%ng Spend
Consumer Products 6% to 10% of revenues
B2B Companies 2% to 6% of revenues
Companies launching new products or brands or opening up new markets
As much as 20% of revenues
Source: 2010 Chief MarkeXng Officer (CMO) Council Report
Many upscale, high-‐image consumer product brands also spend a significantly greater amount of their revenues on markeXng.
40 © 2014 InfoTrends www.infotrends.com
Dissec%ng Spending
At least 50% of companies spend at least 20% of their
markeXng budget on markeXng materials.
Almost a third of companies devote at least 30% of their markeXng budgets to such
materials.
41 © 2014 InfoTrends www.infotrends.com
The Real Story
• 50% of the spending associated with markeXng materials oqen results from product obsolescence and acXviXes such as storage, fulfillment, shipping, and inventory management.
• Only 25% of marketers have performed a comprehensive analysis of the costs and process efficiencies in their markeXng materials supply chain.
• Only 11% of marketers have implemented new workflow systems to reduce costs and inefficiencies in their markeXng supply chains.
• The companies that have studied their collateral supply chain found that at least 20% of their spend is lost to obsolescence.
Source: CMO Council Research
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Capturing the Costs
Source: Four Reasons to Use a Marke-ng Asset Management Solu-on, G. David Dodd of Point Balance 2011
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The Iceberg
Source: Four Reasons to Use a Marke-ng Asset Management Solu-on, G. David Dodd of Point Balance 2011
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Ques%on Answer
How much do you typically spend on markeXng annually?
1,000,000
Then the approximate amount spent on collateral is:
200,000
Probable cost of obsolescence plus acXviXes such as storage, fulfillment, shipping, and inventory management:
$100,000
Quick Qualifier: How Much Pain Might There Be?
45 © 2014 InfoTrends www.infotrends.com
Administra%ve Costs: Requests for Marke%ng Materials
Number of Dealers 100
Number of Requests Annually by Dealer 24
Total Annual Requests 2,400
Average Processing Time (Minutes) 25
Total Annual Processing (Hours) 1,000
Annual Base Salary $40,000
AddiXonal Cost Benefits, Taxes, etc. $8,000
Fully Loaded Labor $48,000
Hourly Rate $24.00
Total Annual Request Processing (Labor Only)
$24,000
Quan%fying the Pain
Source: Four Reasons to Use a Marke-ng Asset Management Solu-on, G. David Dodd of Point Balance 2011
46 © 2014 InfoTrends www.infotrends.com
Miami University
Campus visits increased by 32%; Incoming class
enrollment exceeded goal by 31%
Source: PODi
47 © 2014 InfoTrends www.infotrends.com
Current Enrollment
Your Ins%tu%on Percentage Using Miami Univ. Best Prac%ces
Percentage Increase
Inquiries 21,027
Applicants 1,854 8.8%
Admits 889 47.9%
Visits 670 75.3% 884 32%
Enrollees 311 46.4 407 31%
University Recrui%ng
48 © 2014 InfoTrends www.infotrends.com
Current Enrollment
Typical Ins%tu%on Percentage Using Miami Univ. Best Prac%ces
Percentage Increase
Inquiries 21,027 21,027
Applicants 1,854 8.8%
Admits 889 47.9%
Visits 670 75.3% 884 30%
Enrollees 311 46.4 407 31%
Business Case (1)
Tui%on Avg Discount Rate
Revenue Per Student
Total Revenue
311 $42,000 35% 27,300 33,961,720
407 $42,000 35% 27,300 44,444,400
Revenue Increase 10,482,720
$10,478,720
49 © 2014 InfoTrends www.infotrends.com
Current Enrollment
Typical Ins%tu%on Percentage Using Miami Univ. Best Prac%ces
Percentage Increase
Inquiries 21,027
Applicants 1,854 8.8%
Admits 889 47.9%
Visits 670 75.3% 871 30%
Enrollees 311 46.4 407 30%
Business Case (2)
What’s possible here using the same best prac%ces?
50 © 2014 InfoTrends www.infotrends.com
• Research gives you an idea of the value − TransacXon amount
− LifeXme value of a customer
− Cycle Xme/personnel involved
• Conversa%on uncovers… − Lead conversion rate
− Length of the sales cycle
− Leakage points
− Current goals
Rep calculates value of moving the needle
The Results
51 © 2014 InfoTrends www.infotrends.com
• Early in the sales cycle, it’s about genng the prospect excited about the possibili%es. − Use case studies to calculate a possible return.
• Later in the sales cycle, it’s about what is realis%c. − Limit projecXons once you can show a reasonable return.
What’s Good?
52 © 2014 InfoTrends www.infotrends.com
ConversaXon with Target ExecuXves
Share Insight
Start a two-‐way conversaXon
Confirm that insight Is intriguing
Suggest the process to vet the opportunity
Confirm that you have a mobilizer
Qualifying the Suspect: Part 1
53 © 2014 InfoTrends www.infotrends.com
Mobilize the Team
QuanXfy the value or pain
Develop a business case that projects a realisXc return
Understand what happens if they don’t buy or don’t buy from
you
Confirm your credibility
Qualifying the Suspect: Part 2
54 © 2014 InfoTrends www.infotrends.com
Keys to Success
• Figure out your differen%a%on strategy − Value you provide, who you provide it for, why they should choose you
• Research your account and deliver insight designed to introduce an opportunity to the prospect.
• The needs analysis will enable you to confirm your assump%ons or collect account-‐specific informa%on.
• You are not promising anything; you are genng the prospect excited about a poten%al opportunity. You have the rest of the sales cycle to vet the opportunity and develop the actual business case.
• Consider both the transac%on and life%me value for your customer when developing your insight.
55 © 2014 InfoTrends www.infotrends.com
Thank You! [email protected]