Software evaluation for marketing automation and CRM: a step-by-step guide

The following list provides an overview of why companies initiate these types of projects:

• Updating the email infrastructure: The email marketing systems currently in use are getting on in years and no longer meet current requirements.
• GDPR also arrives in Switzerland: With the revision of the Swiss Data Protection Act, marketing software needs to be reviewed regarding its support of legal standards and replaced if necessary.
• Connecting the marketing tech stack: The end-to-end customer journey, which is digitally driven largely by software, needs to be integrated so that customer data flows without resistance. If this is not possible, the current software will be called into question.
• Automation of customer communication: The increasing digitalization of customer communication also allows and requires automated marketing. The software may therefore need to be upgraded.
• Boom in cloud software: A cloud-based IT architecture makes it possible to use functionally better software. This means that better and automated marketing functions can be introduced and the customer has better marketing cards on the market.
• Direct to consumer: The development of direct sales and the internationalization of the brand, marketing and sales is only possible if the customer touchpoints are offered digitally. Marketing automation is a building block that enables the development of this strategic option.

Most common stumbling blocks and mistakes

The introduction of marketing software often does not comply with the structured standards that apply to software introduction in other specialist areas. Here are some common mistakes made in practice:

• The software decision is made out of tactical necessity
• No end-to-end customer journey is used as a vision and therefore as a basis for requirements
• Three to five-year business cases rarely exist - a full cost model is rarely available
• The projects are managed by project managers without project experience
• The CEO says: "We need this tool"
• The software provider's vision becomes the company's own vision
• Purchasing synergies are not clarified
• Automation does not mean that there is nothing more to do operationally. The operational skills required to operate the software are usually not known
• The stakeholders of the software or the software service are only partially known

Creating the right conditions: Understanding the current setup and developing a customer-centric vision
Before the evaluation of new software begins, it is essential to understand the current setup and document it well. This involves much more than just the IT infrastructure. Existing marketing processes, process flows and customer journeys also need to be recorded in writing. Data plays a particularly important role here. It must be clear where the customer data comes from, where the information is stored and which actions lead to an update of this data. The following aspects should be taken into account to ensure that nothing is forgotten during the inventory:

• Software inventory: collect and document software product, version, costs, APIs and database
• Data flow diagrams: Where is the data created, stored and through which processes does it flow
• Core processes (customer-oriented): Documentation of processes from the customer's perspective (how is communication with the customer currently taking place)
• Budget & business case: A budget over three to five years must be available for the entire marketing stack, but also for the software to be evaluated
• Responsibilities: Who is responsible for what in the company
• GDPR compliance: Where does the company stand with regard to the implementation of the European Data
• Protection Directive and Swiss data protection law

Based on the analysis of the current situation, a customer-centric vision must be developed. In this phase, the critical marketing processes must be viewed from the customer's perspective, scrutinized and redesigned. As the new software allows new ways of communication, these new target processes should be documented in a concept that answers the question: "How should the customer interact with our brand and our offer in an automated environment and what do these processes look like in detail?". In this context, it is important to remember that marketing automation is always associated with a paradigm shift from mass communication to individualized 1-2-1 communication. To ensure optimal customer-centric technical implementation, it is advisable to work with user stories according to SCRUM (Business Wissen, 2019) as part of the concept.

7 steps to the right software

Once the current status and the desired future situation have been documented and designed, the effective software evaluation can begin using seven simple steps.

1. Create a requirements catalog or functional specification: All relevant information and requirements that are to be covered by the software are documented in this document.
2. Create research and longlist: Now it's time to create a longlist of relevant software. This list should include as many, but also only the relevant software providers and describe the critical areas. The longlist should comprise around 15-20 providers.
3. Shortlist: Now, based on the strategically important aspects, software architecture, package deals, range of functions, availability of service providers, dedicated hosting, usability and, depending on the use case, other aspects, the list is shortened. The shortlist should contain around three to five solutions.
4. Cost comparison and business case: At this point, it's important that I know the financial flight altitude. To do this, the total costs over three to five years must be known. To do this, I recommend making a small RfI (Request for Information) for the exact costs. Alternatively, the costs are part of a detailed RfQ (Request for Quote).
5. Document the impact on the environment: To ensure that the integration of the software, the interfaces, hosting and support can later be calculated financially and the scope is clear, it is advisable at this point of the evaluation to think outside the box and describe the exact impact of a software implementation.
6. Ready to sign: It is recommended that a contract with negotiated costs over three years is available for all providers on the shortlist.
7. Selection and licensing: Once the software has been selected, the software is licensed and the project can begin.

The most important facts in brief

• The evaluation should always be carried out from the customer's perspective in the form of customer processes or customer journeys. Based on this view, the appropriate software is then evaluated.
  The structured approach allows the best solution for the customer added value to be selected at predictable costs using the available skills and employees. This avoids bad investments and strategic dead ends.

• If you are thinking about introducing new marketing automation software or CRM and would like to find out more, please contact us personally. Martin Widmer will be happy to advise you. We are happy to support you with our evaluation packages in various forms.

   

  Sources:

  (Adzine, 2020): https://www.adzine.de/2020/08/state-of-martech-nutzung-herausforderungen-und-der-einfluss-von-corona/
  (Business Knowledge, 2019): https://www.business-wissen.de/artikel/scrum-so-erstellen-sie-gute-user-stories