2013 Marketing Automation Trends Benchmark Study

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2013 Marketing Automation Trends Marketing executives at major financial instiutionsweigh in on evolving technologies and strategies

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Technological advances are completely reinventing the ways people bank. Prospects and customersalike research your products when ever they choose, across a wide range of mediums, and accessoffers with the click of a mouse. Customers connect with their banks online anytime, anywhere,leaving digital footprints and behavioral clues that offer a wealth of information. Banking industryprofessionals are struggling to stay abreast of this flood of data at their fingertips.

There are enormous opportunities for companies looking to capitalize on this development. Intandem with the actions customers take online, parallel technologies are emerging that enablefinancial institutions to capture and harness the big data that results from those actions, to achievebusiness objectives ranging from lead generation to customer retention.

According to a 2012 Oracle survey of more than 300 US and Canadian C-level executives: 93% ofrespondents believe they’re losing revenue because they aren’t able to access or act on informationalready available to them. One of the biggest challenges will continue to be turning this unstructureddata into structured, measurable data.

Achieving this goal requires skill sets not found in a typical marketing department and great effort.Increasingly, financial companies are filling the gap with tools such as marketing automation, whichallows businesses to analyze data, leverage it, and gain actionable insight on website visitors. Itallows the capture of more response data, enables lead scoring, creates individual activity historiesfor unique prospects, fuels behavioral segmentation, allows pin-point timing for triggered messages,and saves time by automating much of each process.

For the financial industry, the biggest difficulty lies in finding the transparency, resources, and time tocreate and execute personalized customer acquisition and retention strategies. Given that marketingautomation tools can scale process down to a granular level to engage individuals — and scale up tomanage large populations and aggregate data — it’s no surprise that industry experts foresee majorgrowth in adoption in the years ahead.

NetFinance, the Digital Marketing Conference for Financial Marketing Executives, has compiled its 2013 Trends Report to further evaluate current needs, risks, and opportunities for institutions andprofessionals in the marketing automation realm. This report compiles the responses of 100participants from the 2013 NetFinance conference held in April of 2013. Professionals fromcompanies including Bank Of America, AllState, Wells Fargo, Moven, BlackRock and morecontributed to the survey’s results.

Marketing Automation Trends 2013 NetFinance

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Introduction ....................................................................................................................2

Research Findings ....................................................................................................3-18

About NetFinance ........................................................................................................19

About WBR/WBR Digital ..............................................................................................20

About Act-On ..............................................................................................................21

Table of Contents

When you see this symbol; it signifies a key findingto pay attention to.

2013 NetFinance Marketing Automation Trends



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Q1How important is the 360-degree viewof the customer?

64% Very important, but we are having a hard time getting results and reconciling behavioral data

22% Very important and we can consolidate and report with confidence on the results of ourprograms

13% Somewhat important and we are dedicating budget and resources this year towardsimproving our view

1% Not important, we let the customer choose their channel and we rely on that channel tocommunicate efficiently with them

of those surveyed consider the 360-degree view of thecustomer very important, butfind it difficult to get theaccurate results andbehavioral data.

64%

““My answer isn't just one of these, but a combination ofseveral. [The 360-degree view of the customer] is somewhatimportant, but I would have a very hard time getting data. I amnot surprised that the majority chose [the first option]. It seemsthis view is hard for everyone, just due to the nature of bankcore systems and segments.”Kristy Brandon, Vice President, eBanking Channel at Comerica




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Q2What are your biggest marketingchallenges? (Check all that apply)

55% Resources needed to build more sophisticated campaigns like triggered and nurturingbased on segment

45% Not enough time – too many things to prioritize

44% Technology and solutions are disparate and difficult to juggle – they create manual processes

38% Lack of budget to launch more programs

37% Ability to quantify campaign results

60

50

40

30

20

10

0

Att

end

ee R

esp

ons

e (%

)

Biggest marketing challenges

37%38%

55%

45%44%

of respondents find that theirbiggest marketing challenge ishaving the resources neededavailable in order to build moresophisticated campaigns, liketriggered campaigns and nurturingcampaigns based on segment.

More than half

As is true in many industries, the ability to acquire the data that will lead to yourpotential buyer can often be fragmented and complicated. The findings suggest thatthe lack of resources indicates a need for more productive tools. To manage thecomplexity of data and streamline the results, programs like marketing automation havebeen implemented as key time-saving features, that would manage and coordinatemultiple-point tools such as (but not limited to): marketing campaigns, channelmanagement, reporting, analytics, email and webinar management applications, and/or theneed to integrate such tools with contact management and CRM platforms and programs.

The “ability to quantify” is an overarching issue for the industry, proved later in the reportwhen examining data segmentation (Q10) and tool management (Q13).




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Q3What types of solutions and partners areyou currently using?

Typ

es o

f so

lutio

ns a

nd p

artn

ers

curr

ently

usi

ng

Attendee Response (%)

62% CRM

59% Marketing Database

58% ESP (Email Service Provider)

50% Sales/ Transactional Database

45% Digital Marketing Agency

44% Free Google Analytics

38% Paid Analytics (not Google)

36% Marketing Automation

23% Email Software Solution Installed In-House

21% Webinar

62% CRM

59% Marketing Database

58% ESP (Email Service Provider)

50% Sales/ Transactional Database

45% Digital Marketing Agency

44% Free Google Analytics

38% Paid Analytics (not Google)

36% Marketing Automation

23% Email Software

21% Webinar

0 10 20 30 40 50 60 70

62%of those surveyed

named CRM as the top solution they are using. A close second; 59%of respondents reported using marketing databases, followed by58% who used email service providers, and 50% who are integratingsales/transactional databases into their marketing campaigns.




6 2013 NetFinance Marketing Automation Trends

The findings suggest that financial institutions today areserious about customer response and lead management,and finding the right person to manage that lead tunnel isa top concern. By sifting through the responses on the toptools and solutions currently implemented at firms, our resultsindicate that there is an opportunity for better segmentation.

As the survey suggests, there is a need for better tools thatcould not only automate processes, but could also improvethe cohesiveness between departments by repairing theoperational rift between sales and marketing teams. Strongercollaboration and transparency with regards to data collectionbetween departments could help move the needle towardbetter conversion rates of qualified leads. Solutions areevolving to provide deeper segmentation with help frombehavioral response data from outbound programs, tied toinbound areas of interest.



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Q4If you could consolidate [marketing]vendors and get the same or bettermarketing execution and improve ROI –would you?

73% Yes

27% No

YES

NOsaid that they wouldconsolidate vendors if theycould get the same orbetter marketing executionand improve ROI.

73%

“78% of Fortune 1000 CMOs say the #1 challenge marketers face istechnology eats too many resources.”- CMO Magazine

The majority of respondents said they would consolidate vendors if they could get the sameROI. However, a few respondents still find value in keeping functions separate. Their responsessuggest that they are skeptical that this is possible. Those who opted not to consolidatevendors cited concerns that:

However, this directly contradicts a recent article in CMO magazine which said

“Too many business units and systems to consolidate.”

“Variety from multiple vendors”“I don't believe it would be the same

ROI or better.”

“Kristy Brandon, Vice President, eBanking Channel, Comercia, said, “It isalmost always better to consolidate to become more efficient unless thereis a differentiating factor that would outweigh such a decision.” Responsesshow that most people agree.Kristy Brandon, Vice President, eBanking Channel, Comerica




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Q5

What role does IT play with marketingdatabases and technology solutions thatare implemented?

52% Ongoing support

28% Consultative only

20% Decision making

said that ongoing support isneeded to enable error-freereference data workflowacross their companies.

52%

Our findings suggest that our survey population calls for ongoing technicalsupport. Marketing automation software can often negate the need for customintegration, and frees up time for the IT department to focus on more crucialmatters like making sure companies' website performance is stable and canhandle high volumes of inbound traffic. For our respondents, ongoing support isimportant, but the decision making capabilities for these databases do not lie withIT. In other words, marketers recognize the need for technical support, but they stillhold the decision making power and control their marketing campaigns.

In question four of this study, 73% of firms reported that they would consolidatevendors if they could get the same or better marketing execution and improvetheir ROI. Marketing automation software can allow that possibility to become areality; by eliminating the need for multiple vendors and streamlining themarketing and lead management processes.




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Q6Which functional groups manage yourB2C and/or B2B marketing programs?

48% Departmental orChannel

42% Corporate

10% Field or DivisionBranch Level

of companies surveyedmanage their B2C and/orB2B marketing programsremotely, through field ordivision departments; inother words, at thebranch level.

Only 10%

Our findings suggest that those surveyed did not have a “one-size-fits-all”option in regards to B2B and B2C marketing management at their firms.They also suggest that very few financial institutions are handling marketing atthe branch level. This points to the need for a common denominator, particularlyfor firms that are dealing with both B2B and B2C marketing efforts, andsometimes within the same department.

More automated solutions can lead to better efficiency for marketers trying toconsolidate their departments’ efforts. Unlike vendors who tailor their softwareto customer-centric or B2B marketers, implementing a data management toolcould provide companies the capability to manage both through one program.Automation tools provide lead management, but also the ability to managecontent marketing, automated campaign design and management, andpersonalized messaging, all of which can benefit both B2C and B2B efforts.




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Q7Are you currently implementing nurturingcampaigns that provide information aboutyour products to potential leads andexisting customers?

47% Yes

27% No - it's not a priority

26% No - but it's on the plan for this year

YESNO

NObut it's on theplan for this year

it's not a priority

of those surveyedare currentlyimplementing.

Almost

50%

Lead nurturing campaigns are making inroads at many financialcompanies, with 47% currently using lead nurturing programs in some formand another 26% evaluating platforms to adopt. Advances in technology aresimplifying the process for businesses to create mechanisms to nurture theirprospects and current customers.




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52% Yes, customers heavily researching product before they buy

37% Maybe, customers heavily researching product before they buy but not sure

11% No, customers not heavily researching product before they buy

89%

Q8Are your customers heavily researchingyour product before they buy?

““Customers are going online to research products before buying. I wouldbe curious to take this one question further, and ask if after researching, is the customer buying online, calling, or going into a branch to purchase?”Kristy Brandon, Vice President, eBanking Channel, Comerica

52% surveyed said that their customers are heavily researching their productsbefore they buy. This data points to the need for companies to implement astrategic triggered marketing campaign, including tools that will enable them toengage their site visitors proactively and capitalize on a sales-ready lead. Newemerging tools help companies see a complete report of customer behavior,including which referring sites, search engines, and organic visits garner thehighest volume of visitors.

YES

NO

MAYBE

said that theircustomers are, ormight be, heavilyresearching theirproduct beforethey buy.




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84%

84% Visiting our website

80% Web

65% Email

53% Direct Mail

46% Social Media (including ourpresence on social media sites)

24% Webinars

84% Visiting Our Website

80% Web

65% Email

53% Direct Mail

46% Social Media

24% Webinars

Q9How are customers receiving researchinformation from you?

Met

hod

s o

f rec

eivi

ng r

esea

rch

info

rmat

ion

Attendee Response (%)

0 20 40 60 80 100

of those surveyed saidcustomers find informationby visiting the companywebsite, followed by 65%who acquire researchinformation via email and53% who receive theirinformation from direct mail.

““I think there is some good potential in webinars or similar technology thatisn't being utilized as effectively as it could and should be.”Kristy Brandon Vice President, eBanking Channel at Comerica


The proliferation of social media and online tools has enabled customers toresearch products on their own time through a variety of mediums. Todecipher the seemingly insurmountable amount of data, companies are turning tosolutions that allow businesses a deeper insight into their web visitors than everbefore. Such tools enable comprehensive data capture, lead scoring and thetracking of activity history.



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Q10How heavily are you using behavioralresponse data to segment your database?

33% Not going beyond basic segmentation

27% Heavily segmenting

25% Segmenting somewhat based on intial response/purchase data

15% Segmenting somewhat based on prospect stage

of those surveyed are not going beyondbasic segmentationwhen attempting tosegment theirdatabase.

33%

““I think everyone wants to get here, and conductssurveys/research to try and get there. The practical deploymenthasn't happened universally yet.”Kristy Brandon, Vice President, eBanking Channel, Comerica

In the past, segmentation was complicated and marketers were forced toexecute at a basic level due to complexity, time, and resources not beingaligned. Analytics and data crunching was only possible through outside vendorswith expertise, and was managed by business analysts. Fast forward to today:marketing automation tools capture and bring together multi-channel campaignresponse data enabling deeper segmentation in turn fostering highly relevantmarketing campaigns.




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Q11What types of marketing does yourorganization spend its time on?Please rate 1 to 4 (1 being highest priority).

Companies surveyed ranked acquisition marketing, including brand,thought leadership, and content marketing as a top priority. Given that theaverage ranking for social media marketing came in at 3.5, we can deduce thatmarketers still are not prioritizing this at their financial institutions.

AVERAGERATING:

1.6AVERAGERATING:

1.9AVERAGERATING:

3AVERAGERATING:

3.5

1

2

3

4

Acquisition marketing includingbrand, thought leadership, andcontent marketing?

Customer retentionmarketing including upsell,loyalty and promotion?

Training andeducationalmarketing

Socialmediamarketing




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Q12What percent of prospects and customersare interacting with you in your mobilechannel? How do you see this changingin 12 months?

Responses to this question varied significantly. Here is a sampling of responses:


Mobile has transformed the way in which consumers access information.Smartphones have not only changed the way people connect; the ubiquity ofmobile devices has also transformed the way in which people handle the routineof the day-to-day: how they shop, organize, and increasingly, how they bank. Usingmobile apps, consumers can check their statements, pay their bills and deposittheir checks with the snap of a picture. The convenience of mobile has broughtfinance to the masses, and this research confirms that it’s catching on.

Prospects can't interact in themobile channel; we don't look atcustomers on an individual level,

as not all have accountsaccessible through mobile. We doexpect an increase in mobileinteractions, as consumer

purchases through smartphoneand tablets increase.

25%

10% ANDINCREASING OVER 12 MONTHS

0%; mobile capabilitiesnot a planned project

at this point

65%

35%

100%

Only via mobile banking

90%UNKNOWN

Unknown. Notsomething I am

actively engaged inunder my product set.

In the next 12months should be 50%+

80%

Not developed; have IT consultant

working on a proposal for mobile devices.

<20%

DON'TKNOW



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“ “ Twenty eight percent of allmobile phone users and 48percent of smartphone usershad used mobile banking in thepast 12 months.” This was anincrease of seven percentagepoints from December 2011.During the same period,

consumers using phones topurchase items tripled to

six percent. Federal Reserve Board on Nov. 2012 Industry Statistics




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Q13What are your top two concerns withtools you are currently using?

45% Ease and consolidation of tracking, reporting, analyzing

29% Time involved to manage them*

27% Resources needed to manage them*

27% Management by different departments such as IT, corporate, divisional or functional

21% Management of too many systems*

20% Cost

50

40

30

20

10

0

Att

end

ee R

esp

ons

e (%

)

Top two concerns with tools you are currently using

21%* 20%

29%* 27%* 27%

When listing their concerns with thetools being used at their respectivecompanies, 45% cited a product’sease of use as the top priority.

Ease of use:

““Consolidation and insight is definitely the most important, everythingelse is pretty even. It shows the need for insight out of data.” Dan Latimore, SVP Banking Group, Celent Research

45%

77% of those surveyed find that the amount of systems, lack oftime and lack of resources to manage data are a top concern.




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35

30

25

20

15

10

5

0

Att

end

ee R

esp

ons

e (%

)

Q14How sophisticated are your paid searchstrategies?

35% Basic key word buying/managing results by clicks

26% No paid search - Just organic or non-paid search

22% Some level of optimization based on conversion

17% Full usage of automated bid mangement tools and full ROI outcomes

Paid Search Strategies

ONLY 17%

of respondents are using sophisticated paid searchstrategies, like bid management tools and full ROI outcomes,as part of their marketing strategy.

17% 22% 26% 35%

This suggests that the general perception does not reflect the reality of wherefinancial institutions stand with paid search strategies.




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Q15On a scale of 1 to 10, how would you rateyour online marketing programs today?Respondents ranked their marketing programs from 1-10; 1 needing the most improvement, 10 being the best it could be.

1-3

4-6

7-9

10

ONLY

3%rated their current online marketing programs asa 10. Therefore, the majority of those surveyed seetheir online marketing programs as an area in needfor improvement.

““I was surprised and (somewhat happy) to see that the majority ofrespondents are struggling in areas where I am as well. For example,everyone finds that their online marketing programs have room forimprovement (most people rated them at a 6). It seems like many others arehaving concerns with the ease and consolidation of tracking, reporting andanalyzing using their current tools. In short, I think it is interesting that acrossindustries and organizations of varying size, we all seem to be strugglingwith similar issues facing the industry today.”

Melina Young, Director of Marketing, Verity Credit Union

18%

52%

27%3%

Satisfactory

Above Average

Perfect

Needs The MostImprovement




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Since its launch in 2007, NetFinance has become the industry's #1 multi-channelmarketing conference specially designed for Financial Institutions - 93% of our pastattendees would recommend the event to a colleague. NetFinance has proven to be arich industry resource for networking, strategy, and cutting-edge information.

NetFinance is a high level conference that continues to bring together the most seniorlevel speaker faculty, enabling attendees to hear from the people making real decisions.In fact, 85% of speakers are at a VP level or above. They have carved out three days inthe midst of a still challenging business environment because the payback istremendous at this event. Learning the latest trends in data innovation, mobile, andcross-channel customer experience will add value to your organization in the long run.

NetFinance combines a large exhibition hall, with unparalleled networking,benchmarking and learning opportunities to create a first class event.

About NetFinance

“It was beneficial for me to attend NetFinance to gain perspective on howothers are approaching the business, technology and marketing challengesof our industry. In addition to the presentations, the one-to-oneconversations and relationship building are key takeaways for me.”Ralph Betters, CIO, Third National Bank




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WBR is the world’s biggest large-scale conferencecompany and part of the PLS group, one of the world’sleading providers of strategic business intelligence with16 offices worldwide. Our conference divisionsconsistently out-perform their industry sector competitorson the quality of the events we produce and therelationships we nurture with both attendees andsponsors.

Every year over 10,000 senior executives from Fortune1,000 companies attend over 100 of our annualconferences – a true “Who’s Who” of today’s corporateworld. From Automotive events in Bucharest to Logisticsconferences in Arizona to Luxury conferences in New Yorkand Finance summits in Hong Kong, WBR is dedicated toexceeding the needs of its customers around the world.

Media Contact Deanna [email protected]

About Worldwide BusinessResearch/WBR Digital

In addition to our industry leading conferences, ourprofessional services marketing division, WBR Digital,connects solution providers to their target audienceswith year-round online branding and engagement leadgeneration campaigns. WBR’s marketers act as anextension of your team relieving strain on your internalresources while promoting your brand and solutions toyour prospects. Solution providers can target identifiedaccounts or relevant industry/function segments ofWBR’s entire global database of over 500K senior-leveldecision makers.

“"While we're an innovative B2B company focused on social and mobile commerce,we still rely on tried and true demand generation tactics. As part of our efforts we'realways testing and learning, trying different ways to get access to and compel digitalmarketers at top retail brands to consider our offerings. We've tried many differenttactics and sources of leads and WBR has consistently exceeded response goalsand more importantly, the quality of leads have been outstanding. This year wecommitted to a package of activities with WBR including email, webinars, events andresearch. The WBR team working on our account has been professional, responsive,fun and have delivered above and beyond, I couldn't recommend them higher."Marko Z Muellner , Sr. Director of Marketing, ShopIgniter





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Act-On Software’s multi-channel marketing automation suite is the foundation ofsuccessful marketing programs; from simple and direct, to sophisticated and globallyexecuted campaigns. Act-On is a cloud-based solution that features an integratedmarketing platform that enables marketers to tie inbound, outbound and nurturingprograms together in a single dashboard. Bundled together in an intuitive package,Act-On is fast to implement, easy to use and powerful.

Act-On’s technology features an Instant-On™ database for accelerated campaignimplementation; an easy, highly intuitive user interface; and a comprehensive, feature-rich solution set. This includes a best-in-class email engine with one-click integrationto leading web conferencing and CRM solutions; tools for website visitor tracking, leadscoring, lead nurturing and social media prospecting; design tools for web forms,landing pages and emails; and more.

Act-On is headquartered in Beaverton, Oregon, with offices in Roseville and San Mateo, California, and Bangalore, India.

Media Contact Paige Musto650-251-4770 [email protected]

About Act-On


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• After listening to 50+ sessions from more than 60 reference financial serviceleaders, you’re bound to come back with take-aways to move your businessforward.

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Call our customer service team to get the best available discounts for your firmat 1.888.482.6012, or email us at [email protected]

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2013 Marketing Automation Trends Benchmark Study

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