Ontraport Revamps Its Small Business Marketing Automation System

It’s five long years since I wrote a detailed review of OfficeAutoPilot (now Ontraport), which is a lifetime in industry terms. But, while the product has steadily expanded its features during that period, the basic interface and structure have remained unchanged. I speak with particular authority here, since Ontraport is the marketing automation system of record at Raab Associates – in part because they give me a free account, but mostly because it has the particular mix of email, Web forms, order processing, automation, and WordPress integration that suits my needs and have provided great customer support. Nor does it hurt that I enjoy their corporate sense of humor – see their recent announcement of integration with Wistia for video display, featuring 9-year-old “Girl CEO” Phoebe Ray, daughter of the company founder.

Great customer support has been important because setting up work flows in Ontraport, such as order processing for the VEST report, was pretty darn complicated. It was especially hard for someone like me who only touches those features once or twice a year. Ontraport recognized the issue some time ago and has in fact been working on a complete rebuild for more than two years. They finally released it last week, at least for new clients. Existing installations will be converted over the next few months. But I saw a beta version some time ago and it looks like a major improvement.

The basic workflow approach is still the same: customers define a list of steps without a graphical flow chart. This is somewhat simplistic but adequate for most small businesses. What’s changed is that emails within the workflow are now read from a central library, avoiding the common mistake (at least by me) of editing the library copy without realizing that the system sends a separate copy stored within the workflow itself. The other big improvement, also a pain point for Yours Truly, is that data capture forms and order forms are now the combined: previously, they were created and stored separately. The new version also allows users to store incomplete steps while building a sequence, to assign actions to different task outcomes, and to track response using Google Analytics tags. Those haven’t been issues for me personally but they should be valuable to others. Ontraport can now send and receive SMS messages as well.

I’m only talking here about new enhancements. Ontraport already provided rich features for CRM, task management, marketing automation, order capture, and partner and membership programs. An open API lets it integrate with third-party systems for shopping carts, payment processing, and webinars, as well as with WordPress for Web content management and Facebook for social sign-on. In addition to email and SMS, the system supports postcard mailings through integration with a network of printers. Beyond standard customer support, users can pay a “concierge service” to execute projects for them. Pricing remains a very affordable $297 per month for up to 25,000 contacts, 100,000 emails per month, and two users.

Ontraport reports about 5,000 clients, about half of whom are on SendPepper, a lower priced system for email, postcards, and landing pages. This makes it one of the industry's larger vendors, although the company has kept a relatively low profile.  It’s certainly worth a look if you’re in the market for a small business all-in-one sales and marketing system.

Marketo Spark Targets Small Business Marketing Automation

Marketo today announced the launch of Spark, a new brand aimed at small and mid-size business. Functionally, Spark is pretty much identical to the standard Marketo system. Exceptions are advanced features including revenue cycle reporting, email deliverability assistance, API access, fine-grained user rights management, and the Sales Insight salesperson application. Most of these aren’t of interest to small business, and several involve additional charges even for Marketo’s regular packages.

So the news here is price. Spark starts at $750 per month with no annual contract, compared with Marketo’s $2,000 per month minimum and annual contract for its full-featured Professional Edition. Marketo has discontinued its $1,200 per month Small Business Edition, which lacked some features now included with Spark.

In other words, this is a price cut. To me, it looks like a reaction to the success of other low cost small business systems, including HubSpot, Act-On Software, and Pardot. (HubSpot and Act-On have similar pricing to Spark, while Pardot runs a bit higher.)  Some of those firms are actually growing at a faster rate than Marketo, although on a smaller base.  Spark should help to blunt their momentum while increasing Marketo's own client total -- a closely watched metric, regardless of the associated revenue per client.

Whether Marketo actually makes any money at Spark's price is questionable. It really depends on the sales and support costs, and Marketo doesn’t appear to have changed how those are delivered to keep them down. Other small business specialists have designed sales and support models that are not as staff-intensive as traditional approaches. By contrast, Marketo is stressing that Spark includes services to help clients take advantage of their systems.

Of course, Marketo could have lowered its entry price without creating a new brand.  So why bother to launch Spark?

One reason may be to avoid cannibalizing sales of its other, higher-priced editions.  But, let’s face it, any sentient buyer will notice that Spark is out there. I think the more important reason is that Spark lets Marketo address small businesses separately from larger companies.  The two groups do have different needs and neither wants a system designed for the other.  Spark lets Marketo position itself as a small business specialist when selling to small businesses, without alienating big-business marketers who would consider a small business system an unsuitable toy. 


This is a delicate game.  For one thing, "small business" means different things to different people.  Small business specialists like Infusionsoft and OfficeAutoPilot actually serve a different market -- one that I label "microbusiness" and put at under $5 million revenue.  Those products have a different configuration from Spark, HubSpot, Pardot, or Act-On.  Specifically, Infusionsoft and OfficeAutoPilot have starting prices around $300 per month and offer built-in shopping carts and CRM.  (Other micro-business specialists like Genoo and MakesBridge also have a sub-$500 monthly price, but no CRM or shopping.)  Although Spark is not aimed at the micro-business market, some people may not recognize the distinction.


Nor it is clear that the Spark brand will be enough let Marketo play in both the small and mid-size business segments ($5 to $500 million revenue, by my definition) and the big business segment (more than $500 million revenue.)   Nearly every other marketing automation vendor focuses on one or the other.  The main exception is HubSpot, which is also trying to add larger clients without losing its small business base -- and facing some positioning challenges of its own.  

Spark also poses a financial challenge.  Marketo has said it will earn around $30 million revenue in 2011, and will have an average of around 1,100 clients.  That comes to about $2,500 per client per month, a figure Marketo has been striving to increase.  A large number of Spark clients at $750 per month would dramatically reduce its average.  The profit margins, if any, will surely be lower as well, again dragging down the corporate average.

Now, this is all interesting stuff, but does it matter to anyone who isn't a Marketo investor?  Probably not.  Spark may push prices a little lower and may put a small crimp in some competitors' growth rates.  It may also give small business marketers another fine set of resource materials to complement those from HubSpot and others.  But the bottom line is that similar capabilities were already available at a similar price point from Marketo and others. Spark just doesn't change much.

 

B2B Marketing Automation Report Is Now Available Online. Thanks, OfficeAutoPilot

Thanks to the heroic efforts of my friends at OfficeAutoPilot, the new B2B Marketing Automation Vendor Selection Tool (VEST) is finally available for online sales. You can click here to access the new landing page and order forms.

There's a long story behind this, with many lessons that reinforce and illuminate the basic premise behind marketing automation: that is, marketers need a system that makes it easy to do their jobs. I don't have the energy to write that at the moment, however. But I will point you to the animated video on the OfficeAutoPilot home page, which is laugh-out-loud funny (to me, at least) and makes the fundamental case quite clearly.

I'll qualify this a bit by pointing out that OfficeAutoPilot is one of the systems aimed at small businesses, which means it includes the CRM and e-commerce components you don't find in products aimed at larger organizations. This is what made it perfect for Raab Associates' own needs, since the specific roadblock to selling the VEST on the existing Raab Guide Web site was that the e-commerce bit wasn't working.

Even more important, OfficeAutoPilot (again like other small business specialists) has recognized that its clients need a great deal of help in setting up their systems and has organized accordingly. The OfficeAutoPilot staff spent nearly two full days working to get me running, drawing on best practices to create a much more sophisticated process than I would have started with by myself. More to the point, they did this without charging a penny -- which I'm pretty sure is what they do for all their clients, not just industry analysts like me. In fact, although OfficeAutoPilot owner Landon Ray did give me a free subscription to the system (full disclosure), the staff who worked on my project didn't seem to have any particular sense of what I do.

This gets to the heart of the marketing automation deployment challenge, which is helping marketers get real value from their systems from the start. Industry gurus, myself included, rant about this endlessly. So I wasn't particularly surprised to find myself living it, but I was pleasantly surprised to find that OfficeAutoPilot really works to solve it in the most direct way possible: by just doing the stuff for clients who need help. I fully recognize that life isn't so simple at bigger organizations, but it's still an important example to hold up as one type of ideal.

Ok, I guess I wrote a little more about this than I had planned--it's my way of winding down after an intense several weeks of first getting the VEST created and then finally putting it into the market. The job isn't really done: I need to toss the old Joomla-based Raab Guide site and create a new one in WordPress that I can maintain personally. And at some point I still need to do a more detailed review of OfficeAutoPilot itself, which I'll say in general I'm finding quite satisfactory. But for now the real story is just to say thanks to the folks at OfficeAutoPilot who took such good care of me, and I am quite certain will continue to do so in the future.