Demand Generation (new!)

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What’s The Impact Of The New Demand Unit Waterfall?

As published in DemandGen Reports, May 2017

By Jon Russo, Founder B2B Fusion, @b2bcmo

For B2B revenue leaders that are contemplating adoption of the new SiriusDecision’s Demand Unit Waterfall, here are five impact areas on B2B strategies and initiatives to consider:

  1. Develop a data strategy: install proper data processes, match leads to accounts (Ringlead, Full Circle, Lean Data, etc.) and establish the right global account hierarchies. After Fuze CMO Brian Kardon and his team invested significant time and energy in a data strategy, his team experienced massive growth success.
  1. Embrace an Account Based approach. CMO Peter Herbert of VersionOne describes his very successful Account Based journey as, “real progress B2B revenue teams are making towards a more intelligent, proactive, and efficient way of going to market.”  This new approach reinforces a need for an ABM strategy of account identification and investments (Engagio, DemandBase, Radius, Everstring, Oceanos, Terminus, Kwanzoo, Big Willow, etc.)
  1. Align and measure. Herbert says, “B2B teams are shifting from working in silos to capture and handoff leads to working together to engage — in a more compelling way.”  Build supporting Salesforce structures, data lakes with Business Intelligence overlays like Anish Jariwala at Informatica has created, or leverage tools that measure most of this new waterfall (Engagio, Full Circle Insights, etc.)
  1. Select attributes of the buying committee but...anticipate challenges identifying the right buying authorities from scouts or key influencers, especially if roles change deal to deal. Expect assumptions and manual intervention as Sales uses Salesforce contact roles sparingly, Marketers create personas, and roles change.
  1. Retain the right internal and external talent to support this new waterfall and maximize technology investment ROI. Augment internal teams with knowledgeable external sales and marketing performance firms that extend internal strategy reach and best practice system capabilities to improve odds of visible success and to move in a more agile manner.
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2015 Sales & Marketing Predictions: Data Relevance

Michael Dell, the founder of Dell Computers, recently said, ‘Data is the key competitive differentiator in today’s business environment.’  I believe he is right.  Data is the star of the 2015 sales and marketing show; enterprises will generate new business, optimize their current state of data, and close more deals as a result of the improvement in data quality.

According to Aberdeen, nearly 91% of B2B Enterprises have not properly optimized their lead flow process.  Proper data is a key ingredient in that optimization.  Despite data not being a ‘balance sheet’ item historically was overlooked by non-marketing executives, executives will begin to assign company initiatives to improve data as they realize the direct correlation of the effectiveness of the inquiry to close conversion process to that of the quality of data in their customer relationship management and marketing automation databases.  CMO’s career credibility relies heavily on the data quality when reporting on their impact to the business and they, too, will invest more cycles in improving the current state of their data.

From this point, companies will begin to experiment with data predictability models.   SaaS based enterprises with large volumes of inquiries and with client usage data will continue to be earlier adopters of such predictive data technology.  SaaS companies will sort out the most probable to deal close or most probable to upgrade, with other companies eventually following suit.  The overall predictive market in 2015 for marketers using data will still be very nascent (<$100M for all companies in the sales and marketing use case) but will be the fastest growth as a percentage quarter over quarter of any marketing technology in 2015.

Lastly, the term ‘Big Data’ will become increasingly meaningless in 2015 as the executive question will pivot from ‘what are we doing in Big Data?’ to ‘how can our data be used to increase productivity…increase sales…decrease customer churn…etc.?’

What do you think will happen in 2015?

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Marketing Credibility: 2015 and beyond

credibility

Here is a valuable blog today from what appears to be a US head of sales in how he views marketing in his business in a tech company contrasting to a non-tech company – it can be inferred from the post that marketing’s compensation is getting tied to revenue performance, that’s where we also see the puck headed for all companies and where true marketing credibility comes into play – it isn’t just in the gymnastics or theory of SLAs, scoring, definitions, or dashboards – it’s in the output of where he (and others) can depend on marketing’s annual growth, lead contribution, and bookings for the business overall and where marketing can belly up to the bar with their own revenue contribution.

The most salient excerpt:

We are fanatical about complete sales and marketing team alignment.  In addition to corporate and product marketing, our marketing department is responsible for directly contributing to 50% of our annual pipeline growth and 50% of our new business bookings every year.  Marketing has SLA’s (service level agreements) with sales for qualified lead definitions and we have specific target goals for those numbers as well as the top stages of our single, shared lead/opportunity funnel or pipeline.  We track, measure and report on our performance at each of those stages in terms of both the actual number and the conversion ratios for lead movement from stage to stage.  We also benchmark our performance for all of that against an industry standard for comparably sized SaaS technology companies.

We see these trends in enterprises as well – though sometimes it is easy to lose sight of the forest through the trees when a company needs to embark on transformational change.  They get bogged down in tactics (predictive analytics, scoring, SLAs) – which are all fundamentals – but lose sight of the overall goal.

Excellent article.  What are you seeing?

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Marketing Tech Investments: Beyond Silicon Valley

This past week, I facilitated another round table discussion with twenty business to business digital leaders as part of the Marketing Operations Cross Company Alliance (MOCCA) group.   Companies represented ranged from large companies like CA Technologies, SAP, and MetLife, to smaller companies like Talkpoint (acq. PGi) and XLGroup.  We also had a technology venture managing partner join our round table discussion.

One topic of conversation was the recent VentureBeat article citing @chiefmartec Scott Brinker’s landscape of marketing technology.  Scott presented this chart to us in our last meeting so we had context.  We asked the question to the group – ‘are 1400 marketing technology vendors sustainable as an overall market?’

Market expansion responses:

  • The marketing technology company quantity will double (to 2800) because the pace of innovation is moving fast
  • Big companies (Oracle, SAP, SFDC) can’t innovate, therefore big companies will acquire so there will be a need for smaller companies continuously
  • To be competitive today, the advantage in the market is that of speed as value propositions blur – and technology enables that speed edge, so the market will continue to expand to get faster
  • It is a game of arbitrage – once all competitors buy a technology (like predictive analytics), they no longer have that advantage so they’ll seek new technology to go faster
  • Salesforce.com has the app exchange with thousands of companies, marketing is no different with Marketo with Launchpoint

Market contraction responses:

  • Technology has changed so fast, it is starting to outstrip the organization’s ability to respond and keep up
  • I spend my day dodging calls and emails from marketing technology vendors unless that vendor has something really unique I should look at
  • My budget is staying relatively flat, there is only so much technology I can invest in credibly and present to my boss
  • My companies priorities shape how I’m able to absorb marketing technology and we can barely get done what we need to get done
  • I check to see how long a vendor has been in business because I want to make sure they are sustainable for the long term

Based on my own experiences as a head of marketing in Silicon Valley and NYC companies for 10 years and recent discussions with my enterprise clients, I bend toward a market contraction.

  • Some companies will fade away completely and be replaced by newer innovations with the overall pool of companies remaining the same at first, slowly contracting with either exits through larger companies or exits because of lack of revenue.
  • While somewhat obvious, Silicon Valley companies are more likely to be industry leading in terms of their investment threshold for new marketing technologies as they are more apt to pilot/test and risk success;
  • East coast companies are a very different beast both in organizational risk appetite as well as the importance of marketing as part of the sales process.  It is likely east coast companies will need to digest what is in front of them now technology wise and prove ROI on existing investments before getting too far ahead on net new investments.

An area of opportunity is for one vendor to bring order to chaos, by simplifying one interface to get multiple tools to work together properly and coherently.

One thing we all agree on, there is no better time to be an enterprise marketer.

How do you see the technology marketing market shaping up?

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3 Enterprise Takeaways from SiriusDecisions Summit

This was posted on Oracle’s Blog this past week.  Reposting if you missed it.

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Today’s post comes courtesy of Jon Russo, founder of B2B Fusion, an agency that focuses exclusively on modernizing old demand generation practices to new to drive more revenue for clients like Thomson Reuters, Level(3) Communications, and Blackboard, among others. Jon serves on the Board of Directors for MOCCA, the leading enterprise association for Marketing Operations professionals. Prior to founding B2B Fusion, Jon held global CMO roles for 10 years in private and public technology companies in Silicon Valley, NYC, and Luxembourg.

This week in Orlando, 2,000 attendees had the opportunity to participate in the SiriusDecisions Summit, the granddaddy conference for the B2B marketing industry. Sirius analysts presented eight new frameworks and enterprise clients shared success stories, each group illustrating paths toward transformational growth for 2014 and beyond.

So what are the new themes from enterprises this year versus the seven prior conference years that I’ve attended?  Here are three new 2014 themes that emerged from the enterprise discussions:

1. Think globally, act locally. Enterprise presenters took a global planning approach to their demand planning versus more North America centric presenters of years past, possibly because companies see more growth in markets outside of North America. Polycom CMO Jim Kruger leveraged regional team presenters by sharing a global success story of installing an inquiry to opportunity process. Joseph Puthussery, Vice President of Demand Generation for Cisco, invested four years in architecting and building a global demand center, began his planning efforts in London, and leveraged successes within each global theater of operation.  Joseph previously ran APAC marketing efforts for Cisco from Singapore and emphasized how important it was to get outside of headquarters to think through architecting a demand center.

2. Data is foundational to true business insights. Pete Koliopoulos, Vice President of Marketing for Arrow Electronics, provided an incredibly thoughtful approach to Arrow’s data governance strategy to help elevate marketing to a true business partner. He presented screenshots of a whitespace report with product penetration by channel account, which enabled sales and marketing to drive campaign strategies to attack the whitespace. Arrow cleansed its internal owned data, appended external DUNs hierarchy data, and applied proper data governance to get to the dashboard destination.  Data strategy is often overlooked in other enterprises as executives overlook the impact data strategy has on sales & marketing productivity and business insights.

3. Marketing & Sales pivot toward a predictable science versus pure art. CMO Jim Bell of Jaspersoft and Vice President of Demand Marketing Meagen Eisenberg of Docusign proved how SaaS marketing has become more predictable than that of years past. SaaS companies have a clear advantage over other older enterprise companies as SaaS typically target new markets, deploy state of the art sales/marketing tools to attack those markets, and pinpoint customer retention trends in cohort clusters.

Jim illustrated how in a smaller organization, he doubled the inquiry to close rate from his baseline by installing rigor around funnel definition and discipline around the process.

Meagen explained how she leveraged intelligence from Docusign’s 90 nurture tracks, 20+ personas, and analytic/data vendors like Lattice Engines and Mintigo. Scott Barmmer, Meagen’s sales counterpart, commented how marketing brings an informed point of view to the conversation, one that has evolved and interpreted versus just presenting data. This interpretation leads to greater trust in the evolving sales and marketing relationship.

It was an exciting 2014 conference filled with another year of terrific networking and great enterprise audience growth from years past!  What can we expect in 2015 and beyond?  None of the presenters focused much energy on the success or impact of mobile initiatives; perhaps mobility will be an emerging theme in 2015.

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The Many Faces of Marketing Automation

(Reposted from DemandGenReports Blog)

 

When I recently attended Oracle’s Marketing Cloud kickoff event, where Oracle COO Mark Hurd gave his presentation to 100 of us, we had a chance to ask him questions at the conclusion. My question for him was, “how are you using Eloqua internally, what is your use case and roadmap vision?”

There were multiple use cases shared for marketing automation, each requiring different elements from their CRM or end users depending on the type of company. Let’s take a look at three of those models.

Model 1: Share of Wallet – Hurd said Oracle already has 400,000 global accounts, and doubted that he could expand that to 800,000. However, given that Oracle has been acquiring companies rapidly, Hurd said his objective now is to infuse other Oracle products into the company’s existing 400,000 client base via his newly acquired company, Eloqua.

For large, global enterprise companies, marketing comes down to the share-of-wallet, and gaining more spend from existing clients with products other than the core product. It’s about nurturing the relationships you already have, finding out what products they’re missing within the vendor portfolio, and working to expand the size of the accounts. In each of these scenarios, having the proper product information structured properly in the CRM system is critical and an often overlooked area. Duplicate accounts or contacts, sometimes caused by ERP systems, crush a marketer’s ability to properly upsell and cross sell.

Model 2: Market Share – Smaller organizations, by contrast, are typically concerned with gaining rapid market share. Their marketing efforts are more top-of-the-funnel oriented, with efforts aimed at expanding their client base. For SaaS companies in particular, they may extend offers, trials, and freemiums via marketing automation, dripping those freemiums into qualified opportunities at the right time. It is critical to set up the campaign integration with CRM properly in this scenario as well as a consistent campaign naming hierarchy such that campaign performance can be later analyzed to see what campaigns are driving conversions.

Model 3: Customer retention – Customer retention is a function found in both large organizations and in smaller SaaS companies. It’s oftentimes overlooked by marketers who prioritize how much revenue is being sourced or influenced.  CRM information on current contracts and products are critical, and are the ideal fields that indicate product usage so that nurturing can be based off renewal dates or usage (or lack thereof). Of the enterprises I’ve inspected, this area has the most upside potential for marketers to impact, yet it is very challenging for marketers to measure overall effectiveness.

There are a number of different ways marketing automation can be shaped to solve business challenges in the enterprise. What are you seeing?

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Gap Analysis – Marketing Automation

A colleague asked me to compare and contrast what marketing automation deployments we’ve seen prospect and customer wise – what their use case is relative to the gap with best practices.

To execute on a need he had committed to a client, I came up with the following list for him to consider.

Symptoms of enterprises struggling with marketing automation – marketing automation has (been):

  • Referenced internally as a ‘Ferrari in the garage collecting dust’
  • Perceived as a ‘black box’ to non-marketing executives who don’t understand its impact
  • Delivered a ‘Batch and Blast’ or large quantity of email experience, alienating subscribers
  • Enabled a first generation lead scoring model that has little, if any, business impact
  • Amplified non-standardized CRM data, thus frustrated sales and marketing users
  • Underutilized relative to installed customer base

What marketing automation should be or do potential wise:

  • Improves conversions by keeping in touch with not now, maybe later buyers
  • Delivers relevant and targeted personalized content to end users to engage at the right time vs. all of the time
  • Accelerates reporting ability when working properly with CRM, thus is transparent value vs. black box value
  • Minimizes non-standard data to maximize deliverability impact
  • Enables inside sales and sales prioritize workload via effective lead scoring model
  • Provides cross sell /up sell capabilities to an installed base

I think a better question to ask in framing this entire situation is around the use case – what is the business problem you are trying to solve with marketing automation?  From that point with the end in mind, marketing automation can then be deployed and configured to address your business needs vs. deploying against its technical capabilities.

What do you think?

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2013: Great Expectations For Marketing ROI

Here is my brief view of what to expect in 2013.

During 2013, organizations will demand significantly more revenue value out of their existing sales and marketing ecosystem investments including CRM, Marketing Automation, and list acquisition purchases.  Non-marketing executives at these firms will demand greater accountability for return on these investments.

 

As a result, marketers will need the ability to execute campaigns with surgical precision and to tie their marketing investments explicitly to ROI. This includes:

 

Generating more qualified leads. Successful marketers can and should claim the lion’s share of leads that close to revenue within their organizations. Focus here on the details: standardizing data fields within CRM and marketing automation systems, for example, is critical to proper segmentation and targeting. Data-driven segmentation is especially critical to executing targeted campaigns and increasing ROI.

 

Optimizing business processes. Many companies use less than 10% of their marketing automation capabilities because they haven’t deployed these tools effectively. That’s why it’s so important to map every aspect of your customer acquisition and onboarding process – from inquiry to close and beyond – to and through your CRM and marketing automation tools.

 

Connecting marketing activity to new revenue. An entire industry has evolved around the ability to measure marketing-sourced and marketing-influenced revenue – and to extend these analytics far beyond what’s available from an out-of-the-box CRM or marketing automation system. It’s hard to overstate the importance of these tools; their power lies in their ability to give executives “one view of the truth” for reporting sales and marketing ROI.

 

Organizations that put together these pieces and execute a revenue-driven marketing strategy will have a far more successful 2013 than those that don’t.

 

What do you think will happen?

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How To Achieve B-to-B Marketing ROI Nirvana

There is a need for B2B Marketing ROI yet we’re still not there.  According to Adobe’s 2012 CMO report, fewer than 20% of executive B2B marketers have the ability to measure ROI.  SiriusDecisions reported in  their 2012 CMO survey that CMOs number one concern was demonstrating ROI.  Unlike the B2C marketer who has one consumer that could be making a single web commerce transaction which is tracked from start to finish, B2B marketers are faced with a buying committee  of six to eight purchasers and a buying path that has become more digital over the years yet does not mirror the accuracy of digital tracking that a B2C marketer has.

There are 3 key ingredients that repeat themselves in companies that have been able to successfully measure B2B Marketing ROI

  • An ecosystem of partners –  Concur Software, has consistently grown revenue over 20% year over year and won a number of recent industry awards based on their marketing ROI performance.  Their executive team relied heavily on an ecosystem of the right partners to implement their best in class CRM, Marketing automation, and data gathering/measuring techniques.  One integration partner of Concur’s is DemandGen, who implemented the lead scoring processes so the Concur sales team could work more effectively on the right prospects instead of all prospects, thus improving the chances for higher return (conversion) on marketing campaigns.
  • Data quality – I use the ‘sight on the rifle’ analogy with data.  If your rifle sight is off by the slightest, you’ll miss your target by a mile when you squeeze the trigger.  This area is often the most misunderstood by executives yet directly impacts productivity.  Without complete data beyond account level information (contact names, phone numbers, email addresses) and a process to minimize data duplications, sales teams invest an inordinate amount of research time to find the right contact information and marketing teams waste energy with campaigns that never reach its intended target.  ROI is strongly correlated to proper data hygiene and strategies
  •  Buyer cycle knowledge – a surprising number of companies underestimate the need to build out content around their buying cycle.  Why is this?  With a buying committee, marketing teams do not fully understanding the ‘moments of truth’ of how their buyers actually buy and when buyers leverage digital technology to buy.  A great example of enabling the right content is how Rackspace leverages the LinkedIn product page with over 500 peer/client recommendations to help with their funnel conversion process;  no different from an eBay or Amazon purchase with recommendations from ‘peers’, Rackspace has enabled a savvy capability that shows which peers are also buying their product.

 

With these three ingredients in place, marketing ROI is achievable.  Measuring and tracking performance with systems can be tricky as it will take people energy, processes, and tools to get the right data reported on but without taking these steps in advance of measuring, you won’t know what areas to improve in.  Veracity of measuring may come into question when data is formatted outside of CRM systems, so be prepared to identify all assumptions in data gathering and use those assumptions consistently.

B2B Marketers continue to improve their journey of ROI measuring as marketing becomes more accountable at the executive level for a quantifiable impact on revenues.

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Bigger deals that close faster!

We’re still not yet hitting the full promise of what marketing 2.0 could be delivering on.  In an informal poll of 3 CMOs of B2B companies with revenues from $50M to $5B, I asked about their progress with new revenue acquisition effectiveness around gaining bigger deal sizes with decreased sales cycle time by leveraging effective marketing automation deployments and other inbound techniques of marketing.  The findings mirror what MOCCA (Marketing Operations Community) reported in January 2012 in a webinar survey of over 200 companies – on balance, companies that invested in marketing automation platforms experienced better (and more) leads at a lower cost per lead, not yet bigger deals that closed or a faster close time.

How do you get better conversion and more effective utilization out of your technology investments, specifically around your marketing automation platform?  Here are 3 suggestions:

  • Data – I use the ‘sight on the rifle’ analogy with data.  If your rifle sight is off by the slightest, you’ll miss your target by a mile when you go to shoot at it.  The single biggest area which is most often misunderstood by executives is the integrity of your company data.  Without complete data (contact names, phone numbers, email addresses), sales teams invest an inordinate amount of research time to get the right information.  (see previous post on the cost of this).  There have been tools that have improved ascertaining some of this information (LinkedIn plugin to salesforce.com, Data.com, InsideView, RainKing, etc.) to start down this path.  However, even the tools in and of themselves do not solve for data integrity issues of appending, cleansing, and preventing duplications at the contact or account level.  With the right up front planning, sales effectiveness can be increased.
  • Buyer cycle knowledge – a surprising number of organizations way underestimate the need to build out content around their buying cycle.  First, organizations miss on understanding the ‘moments of truth’ of how their buyers actually buy and when buyers leverage digital technology to buy.  How they can get a better understanding here is through surveys, customer forums, and unpacking previously won deals to piece together successful elements.  The second area they miss out on is targeting the right content at the right time in the cycle.  As an example, Rackspace does an exceptional job of targeting end of funnel conversion by leveraging LinkedIn recommendations by clients such that other potential clients can see what their friends purchased.
  • Metrics/Reporting – probably the trickiest area of all and at the nexus of data, process, and content.  Without the other pieces in place, marketing ROI is a myth.  The vendors in the space are happy to sell you their capabilities which are either set up leveraging very specific use cases or require a fair amount of care and feeding to get operating correctly.  It will take people energy and an excel template to get the right data reported out on but without doing this, you won’t know what areas to improve in.  Veracity always comes into question when data is formatted outside of CRM systems, so be prepared to identify all assumptions in data gathering and use those assumptions consistently.

How have you improved your processes in getting bigger deals with shorter sales cycles?