Accelerating Revenue

by Jon Russo Jon Russo No Comments

LIKE: new SiriusDecisions Demand Waterfall

Yesterday in the 106 degree Arizona weather, we received a needed waterfall – SiriusDecisions unveiled their upgraded view of the latest demand waterfall model at their annual conference.  With an array of color codes and arrows, the new direction is spot as it accounts for revenue sourcing across all elements of the business rather than taking a more myopic view of just what marketing does for the business for net new revenue.  It is no longer the ‘marketing waterfall’ but the ‘business waterfall’ in the 2.0 approach.

 

Here are my views of the new structure and why it is positive:

  • At an executive level, one should be measuring the velocity and cost of the source of leads converting to new revenue, regardless of the source (inbound, outbound, teleprospecting, sales).  According to Adobe’s 2012 CMO report, fewer than 20% measure their ROI on marketing, this framework will help contribute to defining the ROI element.
  •  At a more tactical inquiry level, a senior marketer needs to make a more intentional decision around resource allocation across inbound and outbound marketing mix and tactics.  When the demand creation model was created 10 years ago, social media (LinkedIn as an example) was less prevalent than that of today).
  • The model highlights the importance of the teleprospecting function in accepting, qualifying leads, and generating leads – this function’s importance is often underestimated or routinely outsourced without thinking through strategic revenue implications.  (See previous post here).  It’s the toughest job in the business in my opinion.  By explicitly calling out outbound teleprospecting accountability, a key skillset for account executives, sales leaders should welcome this new framework as it also spells out a clearer career path for teleprospectors.
  • Within the marketing qualification step, by putting more accountability within teleprospecting to ‘accept’ the leads rather than work all leads by marketing, the chances of marketing dumping several unqualified leads onto sales is further reduced.

There are nuances depending on the type of business that the model may need to be tweaked for – specifically around channel partners or other 3rd party mechanisms that generate revenue though the idea and flow should largely be the same.   Also, what’s not discussed is how to implement this kind of waterfall depending on the current stage of current processes – it will take an organization a committed period of time, so phasing and testing should be key to implementation. Lastly, I’ve surprisingly found a number of organizations, particularly larger ones, dancing around the conversation of ‘sourced’ vs. ‘influenced’ revenue, with some larger companies driving in one direction or the other rather than looking at both.   As SAP CMO @jbecher tweeted from the audience yesterday, ‘culture eats strategy’.  Specifically, one needs to be aware of the rigor and thoroughness this model represents and the willingness of the company to absorb the model.

It is critical for companies to do this kind of measuring to improve performance.  It is the right thing to do.

What are your views of the model?

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CMO Changes & Challenges: Cisco, Xerox, GE

The Chief Marketing Officers from Cisco and from Xerox presented at today’s Philadelphia America Marketing Association (AMA) on “Changes and Challenges CMOs face” and I attended with about 100 others.

Much of what they said reinforced recent observations I’ve had with client and prospect companies in terms of what are executive marketing priorities.  The theme was ‘measure and be accountable but don’t be afraid to go with the gut’.  There are 3 specific areas that were covered today that are worth delving into:

  • Segmentation – There are several key questions to be asking which will later inform the content creation and/or marketing automation strategy to reach prospective customers.  Usually this step is surprisingly overlooked in prospect companies of mine where they have not done enough recent diligence to understand how their buyer buys today (not how they bought 3 years ago) and Cisco reaffirmed this position by offering up some basic questions to review such as – who is our customer?  Do we really understand what is happening in our buying cycle?  Do we understand what message resonates and why?
  • CRM/Marketing Automation – Cisco invested billions in new company acquisitions but the back end infrastructure has not kept pace.  Consequently, the nirvana of a ‘closed loop’ lead system is not yet in place where one can track inquiry to close, likely because of several instances of CRM and/or marketing automation.   A strategy in place to not only identify how to consolidate these instances but how to measure the impact is needed.
  • Experimenting – Xerox emphasized the importance of keeping 5% of their annual budget as an ‘experiment’ budget that gets used with CMO approval.  So often, prospect companies that I work with have hamstrung themselves so much, that the ‘experiment’ promise sounds really good, but executing to that is really challenging.  A good experiment bet to make right now is LinkedIn (see my prior posts here.)

 

GE Healthcare’s CMO who was an audience member asked how both aligned with emerging market sales efforts.  There seemed to be universal agreement that China and Russia were growth markets.  However, Cisco (and I later discovered in GE) really do not have the marketing resource today to invest in branding and campaigns in these regions, so much of the marketing is event driven marketing.  This is where the puck is headed for marketing and in business – to understand how to get to these new markets by leveraging cost effective technology that has been proven in mature markets.  This runs under the assumption that in region, campaigns are accepted in a digital format (in China for example, YouTube is not allowed/utilized in the buying process.)  This is probably an emerging opportunity for marketing to consider as they plan their campaigns to reach new prospects globally.

What have you found as your burning priorities?

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Improving Conversion through Win/Loss

Most organizations have a quantifiable goal toward improving KPIs and analytics on more closed marketing sourced revenue.   An effective method to accomplish conversion improvement is to do a ‘win/loss’ analysis on specific areas of the buying process. One really important element here is to make sure sales and marketing understands and buys into what you are trying to accomplish – the goal is not to audit company losses to fingerpoint, the goal is to improve on conversion rates once armed with data/information on what is and is not working in the buyers cycle.


The key process flow areas to measure are within the CRM system on closed lost opportunity, closed lost leads, and open leads. Try to keep to a maximum of ten questions with an incentive to fill out the survey (though I’ve not found a correlation to an incentive and survey responses.)  You’ll need a big enough pool to get a statistically valid sample size to work, a recent example is we had about a 2% response rate.  There is some validity in having an outside party do these surveys vs. inside party, though depending on budgets and timing, inside may need to suffice.   Externally, firms charge approximately $1250 for each completed survey.

There are two approaches we typically use – ongoing and retroactive.  Most organizations fall into the retroactive category because it’s the best way to get aggregate data quickly, though there are substantial benefits to establishing an ongoing approach.

1.  For an ongoing approach, you’ll get real time feedback as to how you are performing.  How to do this is to create process flow survey questions and structures via CRM/SFDC workflows within key trigger points of buying cycle, thus providing REAL TIME feedback to marketing.  SFDC has a number of surveying tools that are free and can be utilized via the app exchange (note for some SFDC editions, there are a limit of the number of apps that can be deployed.)

2.  Rear view mirror looking – Best used by deploying a survey to a pre-determined pool of closed lost opportunities and closed lost leads for interpretation of data.  While CRM systems allow this batch communication to occur, it’s likely a prospect or existing customer will need to remember what their buying cycle experience was like at the time of purchase.  Looking rear view mirror also allows you to use other tools (SurveyMonkey) for a pulling in of results.

Ideally, the information should be captured in your CRM and/or Marketing Automation instance such that an ongoing analysis can take place on the data.  If it is captured, the prospect will have to reveal their identity (required for the incentive), otherwise they may prefer the SurveyMonkey or anonymous route.  Lastly, if doing this on your own, there may be some survey bias versus having an external firm or company do this.

What have you found that works for you?

 

 


by Jon Russo Jon Russo 1 Comment

B2B LinkedIn – Take 2

For years, I’ve been raving publicly about LinkedIn and was one of the very early adopters in Silicon Valley of this technology.  LinkedIn has some compelling newer offers to consider in the B2B segment.

Many B2B Marketers have felt a bit burnt by prior years performance of text based LinkedIn ads – investing quite a bit of money at a high CPM rate with little to no conversion, so LinkedIn has some work to do to earn trust back.  However, B2B Marketers that may not have taken a recent look at their advertising capabilities and may be missing out on highly targeted new offers.  As I talk with my global clients particularly with those that are sales oriented are consistently using LinkedIn to get account, opportunity and lead intelligence information – it is by far the global standard for information relative to other comparables (Data.com, Hoovers, D&B, etc.) that are either largely North American centric or English country centric.

Let’s quickly delve into a couple of the newer advertising capabilities of LinkedIn.

First, it is really important to understand what your company is trying to do – drive more revenue, speak more frequently to customers, gain more market intelligence, etc.  Each tactic could use a different LinkedIn strategy.

  • In the newer partner based advertising models, emails can be targeted on a job title basis with open rates on their emails according to one representative from LinkedIn range from 20% to 40% – with click through rates of 10%.  The more granular one can get with the right industry, title, etc, the better these ads perform.  At a cost of $2.50 per message (approximate estimation), it is costly, but  worth the investment for the response rate if you know exactly who your target sponsor, influencer or end user you want to reach by title.  This information was reverified at a recent Sales 2.0 conference which I attended where an enterprise client claimed a 15x open rate vs. conventional email.
  • LinkedIn Polls provide a dialogue and a light weight market research mechanism.   It allows for more engaging dialogue by a community and gives flexibility to virally share ads.  This is probably not ideal for lead generation purposes.
  • Lastly, LinkedIn company pages allow companies to target followers, who are likely to be existing customers or existing ‘net promoters’ of the product (sans competitors of course).  This approach allows direct communication with the follower base through status updates – and the added benefit that information shared with the follower is also seen by the followers network of people.  This seems to be targeted to either customer retention or upsell capabilities within an existing customer base.

LinkedIn continues to innovate.  I’m test driving some of the above concepts more aggressively with my clients in our search to convert more leads to revenue and will let you know what I find out.  In the mean time, I’m curious what your experience is – particularly around other social media mechanisms that are getting more aggressive in the B2B lead generation segment.

 

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Improving Conversions – what to measure?

Many B2B companies look to improve conversions from lead to revenue and increase the productivity of their direct sales arm.  Here are 4 reports that can be run immediately in your CRM that can impact conversion positively without having to invest more money in new marketing programs.

  • Lead disposition reports:  when this report is run, it gives an overall status of how marketing is doing with handling of leads to and through the inside sales function.  Symptoms of problems in this area are a large pool of ‘open’ leads with no disposition.  what this means is inside sales is not taking action on these, which is cause for root cause analysis as marketing is producing a great quantity with no quality conversions.

 

  • Opportunity reports – look at the ‘closed opportunity’ status pick list (if there is one).  If there are choices that speak to ‘not qualified’ ask yourself or your team, why is it that they were promoted to an opportunity prior to being not qualified?  Within opportunities, look at aging reports, the number of days on average a deal sits in any one cycle.  Because an arthimetic mean is provided, give careful study to the outliers of deals that have sat in queue for a very long time.

 

  • Funnel metric reports – do an analysis by either lead and/or opportunity (sales accepted opportunity) to study the entire shape of the ‘funnel’.  Is it indeed a funnel or is it a snowman (heavy bottom) or inverted funnel (due to deals getting clogged up in legal review).  Against the backdrop of aging reports, funnel metric reports can be very helpful for sales and for marketing to determine what sales enablement strategy need to be put in place.

 

  • Duplication reports – do some basic analysis in/around fields within the record structure of your CRM – account duplications, lead duplications, and contact duplications.  Salesforce administrators sometimes overlook plugins that can prevent these duplications from happening – consequently, poor performing outbound campaign performance is symptomatic of the cause of poor data hygiene practices.  Poor campaigns = poor conversion.

What reports have you found helpful?

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Mobility: Raising Campaign Effectiveness

There are 3 key steps in raising email campaign effectiveness via mobile devices.

Mobility is playing an increasingly important role in reaching prospective customers for companies.  Studies show and my own recent customer data indicate that 9% to 30% of email (not necessarily campaign) views are done on mobile devices and that mobile traffic is rising VERY fast – one would expect campaign performance to follow in that same range.  However, companies on the B2B side are missing strategies  to reach these mobile devices – a key question to ask is, ‘are the campaigns sent actually viewed by an end user?’  Consequently, campaigns not optimized for mobile devices may not get viewed due to poor display or performance – no conversion means no revenue and that is a conundrum to avoid.

To my surprise, some of the B2B marketing automation toolset vendors in my studies do not have a deep level of mobile capability– in fact I have found a few vendors that have no ability to check the rendering (display) of email campaigns on different platforms, different email clients, or different devices.  Consequently, what may look really great to a creative marketer may make no sense to an end user, and therefore no conversion happens!

STEP 1 – Inventory how large your mobile audience is.  Tools like Litmus, polling subscribers, adding a link to your campaigns specific to a mobile version to see how it works, adding a mobile option to the subscription page, looking at your Google Analytics statistics are just a few ways to start.

Step 2 – Optimize content for the device experience– flash does not usually work on all mobile devices.  Studies show that 70% of mobile searches are within 1hr of need, compared to 1 month on the desktop. Mobile users have different priorities, operate in a different context, have more distractions and less time.  Litmus may be a good solution here as well.

Step 3 – Measure campaign performance. Companies like ReturnPath which is more on the B2C side versus pure B2B has tools like Campaign Insight and Campaign Preview, when combined allow an end user to see which campaigns are working and why in addition to checking for rendering.

There are other strategies that can augment mobile devices such as an SMS strategy, though that kind of advertising is specific to a mobile phone vs. a tablet device.  Take a measured approach when considering a campaign strategy that reaches mobile devices.  What strategies have you found effective?

 

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Marketing ROI through automation

There are 3 system components to getting effective marketing ROI leveraging marketing automation:  Content, Process, and Data.  Think of ROI as a 3 legged stool – the automation (seat) is supported by 3 legs of Content, Process, and Data.  The stool falls over if any one element is missing.  Let’s dive in.

 

Content:  Must be relevant for the segment of audience we are going after, and built to keep the segment engaged over a period of time.  Lead nurturing, or the art of keeping in front of a prospective buyer with their permission is the key stage leveraged here.  The example I use in presentations is think about the JetBlue or other airline emails you receive at home – the content is relevant as the emails focus on your local airport and they keep in front of you on a regular basis even when you are not considering an airline purchase.

Process:  Can vary depending on organization size and structure and is most acutely needed when handing off sales ready leads to the sales organization from the marketing organization.  Processes need to be built for the ‘not now, maybe later’ buyer where sales has a clear disposition path of these inquiries.  Processes need to be considered a ‘system’, not a ‘handoff’ – the prospect to customer conversion experience must be seen as one whole, not as two parts with a handoff.

Data:  Quality makes the difference between good conversions and so-so conversions.  This area is often overlooked, particularly around field integrity and processes that eliminate duplication in entries.  In some clients, I’ve seen up to 60% bad data in their database.  Marketing campaign effectiveness is directly proportional to database quality.

When these three areas are tackled, marketing ROI can be measured and improved upon.  Focusing on just one of these elements risks not getting the right return – leads that are hung up in bad processes can not be fixed with good content or good data.  Think of ROI as a system and not as individual pieces and you’ll be on the right road of success.

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Who owns the contact data?

“3 out of every 4 commercial businesses believe that they are losing as much as 73% of revenue due to poor data quality”…Experian – QAS. U.S. Business Losing Revenue Through Poorly Managed Customer Data


A common issue I see in enterprise companies is the ‘perceived’ ownership around ‘data’ amongst sales and marketing – specifically I see marketing underestimating the value of clean contact data and overestimating sales ownership of contact information.  CRM systems like Salesforce.com and others have been around for 10+ years and many larger enterprises have a Salesforce admininstrator, reporting into sales, responsible for the policies and procedures within their company’s CRM System.   So naturally, marketers tend to say ‘contact data is a sales problem.’  I disagree.  Data Integrity is a business issue.  Marketing needs to take a more active role in data ownership and data quality around the contact level – and the need is acute if all contact level data is housed in the CRM system as it is likely the marketing organization is not digging in their CRM system as often as they should be.

With more B2B companies leveraging the capabilities of marketing automation vendors to do batch and blast email among other tactics, suddenly, the contact information has become very relevant to marketers – clean contact data means more conversions which means more revenue.

A variety of issues cause the data to be bad or incorrect.  With this in mind, marketing can take a business leadership  position by inspecting data samples or sets– to then present to the heads of marketing and sales on what the quality is. As an example, either sales or marketing should reports to analyze the following areas:

  • Complete a Country Code analysis
  • Look at Duplicates (even Leads that duplicate Contacts or Accounts)
  • Verify and enrich address data (data appending)
  • Compare external data to CRM data for accuracy
  • Run Reports on fields, test to see how often fields are used
  • Analyze all or a subset of your records for verification

With this information in hand, a leader will have a more precise understanding of the effectiveness of your marketing campaigns.  Better data = better campaigns = better conversion which makes for the right business mix.

What have you found successful in your data analysis?

by Jon Russo Jon Russo No Comments

Sales & Marketing – Your Prospect Database

 

Your prospect database is like a sight and scope on a rifle. If the sight is set on your rifle correctly, you’ll hit your revenue target easily when you squeeze the trigger to execute on your inside sales and marketing efforts.  If the site is off by the slightest amount, as you shoot your weapon (ie try to get revenue), you’ll miss your target.

Several issues contribute to poor data quality – technology, executives, segmentation, and processes. Let’s dive into each.

Today’s technology enables an end user to enter in multiple variations of a company name or contact affiliation.  Salesforce.com fields for a company name may include variations on company names such as I.B.M., IBM, and International Business Machines.  Consequently, data duplication issues may exist as a result.

Executives often overlook the importance of database health.  The technology is new, inbound marketing and inbound selling is also an emerging area in terms of importance, so as these two areas collide, it sometimes can be counterproductive.  Prospect databases are typically owned by marketing – yet when marketing struggles to measure its own value via metrics, this metric is not always considered enough or relevant to make it a key performance indicator.  What gets measured gets improved upon so no measurement means high risk.

Segmentation is often overlooked by marketers relative to database size and quality.  If a sales and marketing element agree on what a ‘perfect prospect profile’ looks like, how many of the prospect database actually fit the description of the target?  How wide is the overall contact or total available market for contacts?  Dun and Bradstreet 360 can help solve this type of concern primarily for North America market segments;  globally, data is much more challenging to segment.

Processes are also missing at the tactical level.  People often change companies within the prospect database.  Is there a strategy to ‘retire’ dead prospects, or does the company keep marketing to those prospects until the point where the company renders its email campaigns ineffective?  Is there a process to monitor the database quality at the tactical marketing level to ensure the site of the rifle is constantly fine tuned?

This element of marketing is one of the least ‘sexy’ or glorified for those that are non-analytical or are big into branding.  Yet the branding, the marketing campaigns, and the PR can be rendered ineffective efforts if the database is not healthy.

What have you found to work effectively for your database?

by Jon Russo Jon Russo No Comments

CMO Roundtable @Velocidi

Along with 35 others, I participated in a terrific CMO roundtable hosted by digital agency @Velocidi moderated by @MargaretMolloy in NYC.  @JeffreyHayzlett, the recent head of marketing for Kodak and current head of The Hayzlett Group, was our guest speaker for heads of marketing in a variety of B2B and B2C companies.  Velocidi is the next generation digital agency leader in NYC with global offices and definitely a company to keep an eye on what’s happening next in the digital marketing space.

The topic of conversation was CMOs – what are the key issues we face and was based on some research Jeff had completed.  He had several areas that were important to consider as part of his research and he prompted breakout sessions to validate (or not validate) the research based on our own experiences.  In our breakout session, we had 4 takeaways that were mostly business oriented vs. marketing tactic oriented:

  • Be accountable to ROI – this was a reaffirmation of the research findings, though there was some side debate about ‘just because something could be measured, doesn’t necessarily mean it needs to get measured’.   There was also some side debate about the actual connection to some activity to meaningful results as there is not always a 1 for 1 correlation.
  • Be the steward of change and growth – swing for the fence when culturally appropriate.  The visual of ‘swing for the fences’ seemed to resonate well with others.  Although there was some debate about the degree a company could change, there was no debate that the CMO had to be the steward of the process.
  • Have courage in making tough decisions.  Whether it be people that work for the team or with the team, this element seemed to be a really important area for those that were responsible for implementing change in the organization.
  • Plan for a 3 month to 12 month horizon rather than do an extended planning process.  Technology is changing too quickly to plan beyond this time frame.   Be prepared to adapt people and processes for this planning horizon – there was a published article in Marketing Week that reaffirmed this view.

It was an excellent conversation.   What have you found in your experiences?