Get What You Need: How to Build a Winning Business Case and Budget for Technology & Innovation
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1 Get What You Need: How to Build a Winning Business Case and Budget for Technology & Innovation #IRCE17 ECOMMERCE TECHNOLOGY WORKSHOP June 6, 2017
2 Get What You Need: How to Build a Winning Business Case and Budget for Technology & Innovation #IRCE17 Brian Thompson Director of ecommerce Marta Dalton Director of ecommerce IRCE 2017 Tech Workshop 2
3 What is Needed to Make a Case for Technology Investments? #IRCE17 Answers We Don't Create Structured Business Cases for Investments 6% Proof that a Solution Will Address the Issue, Deliver Results 64% A Well Defined Problem that Management Recognizees 30% Answers
4 Building a strong business case for technology investments is key to overcoming many of the obstacles retailers are facing. 48.2% IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 4
5 Fundamentals and Best Practices in Building a Business Case Companies are seeing the merge of these two once distinctly different marketing paths.
6 IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 6
7 COMPANIES ARE SPENDING MORE ON MARKETING TECHNOLOGY (MARTECH) THAN ON ADVERTISING source: chiefmartec.com IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 7
8 Digital Marketing Infrastructure It s not just about marketing programs any more. 33% of marketing budgets go to technology 28% of that is spent on infrastructure Servers Networks Storage Cloud Hosting source: gartner.com/digitalmarketing IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 8
9 Marketing is Not a Cost Center but a Profit Center Not all leadership teams are convinced Accountable for every dollar spent Projected return on spend is required
10 in comes the business case IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 10
11 A Marketing Technology business case can be confusing and hard to sell to executive leadership. IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 11
12 Goals to consider Make it thought provoking Keep it brief, share only what s needed Don t use jargon, assume they know nothing Clearly lay out vision Provide business value
13 Five Key Sections 1 The Problem 3 Implementation 4 Recommendations 2 Options 5 ROI IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 13
14 let s review each one individually IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 14
15 We ll start with The Problem IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 15
16 1 The Problem Wasted time on tasks (compiling customer information) Website KPI s under performing (high bounce rates, cart abandonment) Increased unsubscribes Significant custom development hours Source: IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 16
17 There has to be supported Options IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 17
18 1 The Problem 2 Options Wasted time on tasks (compiling customer information) Website KPI s under performing (high bounce rates, cart abandonment) Increased unsubscribes Significant custom development hours What happens if we do nothing Are there multiple solutions Always provide a recommendation and justification Source: IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 18
19 Implementation can lead to many questions IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 19
20 1 The Problem 2 Options 3 Implementation Wasted time on tasks (compiling customer information) Website KPI s under performing (high bounce rates, cart abandonment) Increased unsubscribes Significant custom development hours What happens if we do nothing Are there multiple solutions Always provide a recommendation and justification How does it fit with my current stack Do we have the people to implement Onboarding / Training Long term support Source: IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 20
21 Recommendations IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 21
22 1 The Problem Wasted time on tasks (compiling customer information) Website KPI s under performing (high bounce rates, cart abandonment) Increased unsubscribes Significant custom development hours 2 Options What happens if we do nothing Are there multiple solutions Always provide a recommendation and justification 3 Implementation How does it fit with my current stack Do we have the people to implement Onboarding / Training Long term support 4 Recommendation Describe what marketing could be with the new technology Talk about the efficiencies this could deliver Describe any long term cost savings Include all relevant details Source: IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 22
23 Finally, what is my ROI IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 23
24 1 The Problem Wasted time on tasks (compiling customer information) Website KPI s under performing (high bounce rates, cart abandonment) Increased unsubscribes Significant custom development hours 2 Options What happens if we do nothing Are there multiple solutions Always provide a recommendation and justification 3 Implementation How does it fit with my current stack Do we have the people to implement Onboarding / Training Long term support 4 Recommendation Describe what marketing could be with the new technology Talk about the efficiencies this could deliver Describe any long term cost savings Include all relevant details 5 ROI Time savings Lead Generation Site Conversion Most technology vendors have an ROI breakdown to share Source: IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 24
25 without a strong ROI, you re doomed IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 25
26 So what has worked? Lay out a timeline of anticipated milestones Commit to your financial deliverables Setting an ROI projection Calculate the efficiencies Demonstrate multi channel metric improvement Remember, it s OK to share metrics across your marketing technology.
27 Close out strong IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 27
28 Present the hard sell, next steps and questions Remind them what they will get when approving this business case Cost Savings Revenue Generation Increased MQLs Present clearly defined next steps Let them know when you will get back to them Ask for buy in Are we prepared to move forward? It s your idea, if you believe strongly, don t be afraid to ask for the money
29 Unique Visitors Average Order Value THE REVENUE RECIPE Cost to Serve Conversion Rate IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 29
30 Your own data Industry Data BUILD YOUR CASE IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 30
31 Enhancement Dynamic cross sell & up sell Primary Metric Average Order Value Data Source Industry OR A/B EXAMPLE #1 Industry Data Cross sell lift 0.2% to 1.5% Up sell lift 2% to 4% A/B No cross sell/up sell Manual cross sell/upsell IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 31
32 Enhancement Creating a mobile app Primary Metric Conversion Rate Data Source Proof of Concept & Voice of the Customer EXAMPLE #2 Proof of Concept Responsive website Include same features as full site Track most used features in GA Voice of the Customer Surveys via Use of mobile at location Most needed features IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 32
33 Enhancement Additional website languages Primary Metric Unique Visitors Data Source Web Analytics EXAMPLE #3 Web Analytics Create country users as advanced segment Track negative metrics such as exit %, abandoned searches, nonconverting products, zero results internal search, etc Provide feedback boxes on site or post checkout IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 33
34 PRIORITIZING MUST SHOULD COULD NOPE IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 34
35 A) STRATEGIC PRIORITIES B) REVENUE & EFFICIENCY 1. Business critical 2. Next in line 3. Pretty important 4. Strong contender 5. Proposed by the Boss s son TWO DATA SOURCES IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 35
36 BUILDING YOUR BUDGET IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 36
37 BEST ROI TECHNOLOGIES IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 37
38 Marta Dalton MyCoke.com cola.com Brian Thompson Winston Brands For additional questions: IRCE 2017 Tech Workshop How to Build a Winning Business Case and Budget for Technology & Innovation 38
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