elements of a modern demand generation plan by adam needles]
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The Key Elements of a Successful, Modern Demand Generation Plan
Adam B. Needles VP, Demand Generation Strategy Left Brain DGA Twitter: @abneedles
02/24/2011
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About my company
• Help enterprise companies design and execute successful, modern demand generation programs.
• Combine: – Process: Leverage The Left Brain Model – Content: Centered around Buyer 2.0 – Technology: Powered by marketing automation
• Deliver strategy, production, analytics and optimization.
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Presentation agenda
• ‘Real state’ of modern demand generation • Guiding principles • Getting focused • Building it out • Optimizing demand generation • Takeaway points
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‘Real state’ of modern demand generation …
Twi$er: @abneedles
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Challenged.
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Our rates of conversion?
Source: SiriusDecisions, “Regional Differences in the Demand Waterfall”
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Our use of marketing automation?
Among adopters of marketing automation technology, “fewer than 10% of them are deploying those tools to address programs later in the buying cycle.”
Source: Heuer, Email Interview re: SiriusDecisions Sea Change Data
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A ‘digital divide’?
Best-in-class nurturing:
• Double the bid-win-ratio on nurtured leads
• Nurtured leads delivered 47% higher average order values
Source: Aberdeen Group, "Lead Nurturing: The Secret to Successful Lead GeneraJon"
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What about the other 90%?
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Challenged.
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Challenge #1
We implement technology to solve our B2B demand generation problems, but we fail to substantially update our underlying processes and roles; thus, we find technology by itself has not really solved our problems.
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US marketing technology adoption
• CRM adoption has grown from 53% in 2003 to 75% in 2010. (CSO Insights)
• Marketing automation adoption is 7-10%, projected to rise to 30% by 2015. (SiriusDecisions)
Sources: SiriusDecisions Summit 2010; CRM Magazine, "CRM: Then and Now"
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UK enterprise CRM adoption
39.6% 46.8% 46.2% 45.8%
51.8%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
2006 2007 2008 (iniJal) 2008 (rev) 2009
% of UK Enterprises Using CRM for MarkeEng
Source: UK Office for NaJonal StaJsJcs, “Use of InformaJon and CommunicaJon Technology (ICT) and e-‐commerce acJvity by UK businesses”
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A study of marketing automation adopters …
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Starting the process, but ….
Source: Bulldog SoluJons/Frost & Sullivan, "The ExecuJve Benchmark Assessment"
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Not following through …
Source: Bulldog SoluJons/Frost & Sullivan, "The ExecuJve Benchmark Assessment"
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People + process + content
Source: Bulldog SoluJons/Frost & Sullivan, "The ExecuJve Benchmark Assessment"
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Challenge #2
We still struggle when it comes to linking our B2B marketing tactics to revenue outcomes; thus, we have a hard time proving (and better targeting) the specific impact of investments in content offers and demand generation programs.
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Lead source? Only ~1/3 of B2B marketers attribute multiple buyer touches:
• 21% split credit across multiple touchpoints
• 14% use the more reliable techniques of market testing or modeling to isolate the impact of specific tactics
Source: Lenskold Group, “2010 Lead GeneraJon MarkeJng ROI Study”
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Marketing analytics?
“Only 50% of marketers in our survey said they had analytics programs, and of these, few were focused on predicting behavior; most were simply reporting past behavior. Even rarer is the ability to carry those analytics all the way through to a sale.”
Source: Chris Koch, “We Need an App for That”
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Where to start?
“[S]o many marketing organizations are struggling with determining what to track and how to track it. As a result, many end up measuring with no clear purpose in mind.”
Source: The Annuitas Group, “Metrics – Tying It All Together”
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Challenge #3
We too often don’t start with our targeted buyer when it comes to developing B2B demand generation programs, nor do we rationalize the content and pacing of our nurturing against the buyer’s decision-making process.
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Go-to-market strategy?
Only one in three B2B marketing and sales organizations today have crafted their go-to-market strategies specifically based on their target market.
Source: SiriusDecisions Summit 2010
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Relevant messaging?
“86% of the 'unique benefits' touted by vendors were not perceived as unique or having enough impact to create preference.”
Source: Tim Riesterer, "Three B2B Value-‐ProposiJon Rules That Create Preference, Not Just Parity"
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Buyer 2.0 is the greatest challenge.
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Buyer 2.0 expects more.
“Buyers have higher expectations for intimacy.”
Source: Chris Koch, “Why you need to turn your customers into stalkers”
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Buyer 2.0 is forging own path.
Source: Enquiro, “Integrated Persuasion: Online and Offline”
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Buyer 2.0 listens to groundswell.
Source: B2B MarkeJng/Base One, "BUYERSPHERE, Survey of B2B Buyers' Use of Social Media"
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Guiding principles …
Twi$er: @abneedles
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Guiding principles …
• Educating buyers, not merely ‘selling’ to them • Inbound to outbound integration, tracking • Iterative content + progressive profiling • Buyer pull vs. mass push • Tight lead management integration • Closing the loop between revenue outcomes +
content-based engagement
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Our ‘dirty’ past …
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Getting focused …
Twi$er: @abneedles
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Buyer-centric.
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Buyer-centric
• Who is our buyer? • Buying process • Content consumption pattern • Engaging the buyer
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B2B buyer decision cycle SaJsfacJon
Acknowledgment
Decision
Criteria
SelecJon
InvesJgaJon
ReconsideraJon
Measurement Source: R. Jolles
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Example: Buyer content consumption
Inbound | Search
Inbound | Social Outbound | Nurturing
Resource Websites
Source: Lep Brain DGA
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Operational, process mindset.
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Operational, process mindset
• Revenue goals • Demand stages, linkages, flow • Sales Ready Lead (SRL) definition • SRL volume needed to meet sales goals • Sales + marketing roles • Linkage between content + revenue
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Lead quality is key to sales.
“[S]ales reps that focused on fewer, more winnable deals tend to do better. Flooding the rep with low quality/high quantity leads only increases their inefficiencies … .”
Source: SiriusDecisions, “The Perfect Pipeline: When Less Is More”
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Example: Reverse funnel math (1/2)
Source: Lep Brain DGA
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Example: Reverse funnel math (2/2)
Source: Lep Brain DGA
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Building your program …
Twi$er: @abneedles
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Building your program …
Engagement
Nurturing
AcquisiEon
Content markeEng programs
Technology infrastructure
Lead management processes
Source: Lep Brain DGA
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The basics …
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Content marketing programs
Source: Lep Brain DGA
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Lead management processes
QUALIFIED RESPONDENTS
SALES READY LEADS
PROSPECTS
RESPONDENTS
SALES OPPORTUNITIES
CLOSED-‐WON
NON-‐RESPs
NON-‐QRs
NON-‐SRLs
NON-‐SOs
The LeZ Brain Model for Demand GeneraEon
Source: Lep Brain DGA
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Technology systems
CRM Plaqorm
Link Source Tracking
Website + Blog CMS
Marketing Automation
Inbound Marketing
Optimization
Marketing Analytics
Social Media AcJvity Tracking
Ad/Site Tracking
Source: Lep Brain DGA
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Integrating, rationalizing …
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Engagement.
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Catalyst for B2B buying …
72% of the time ‘fit for a specific need at a specific time’ is the number one reason for a B2B purchase today.
Source: Forrester MarkeJng Forum 2010 presentaJon
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Inbound is more critical than ever
“[C]urrently, more than half of all new inquiries are generated through the Web; we believe that by 2015, this number will rise to nearly 75%. Inbound marketing [is not] new in theory, but ... marketers must plan for it ... .”
Source: SiriusDecisions, “Inbound MarkeJng, the Sirius Way”
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Example: Connecting the dots
Categorize Business Issue Frame the Issue
Identify the Solution
Reducing Costs
Growing Revenue Customer Focus
MarkeEng & Sales
Agility ProducEvity
ROI
Budget Management Compliance IT IntegraEon IT Resourcing
OperaEng Costs
Increasing Profits
Key XYZ Business + Technology QuesEons
=
Basis for Blogging + TweeEng + CommenEng
Source: Lep Brain DGA
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Acquisition.
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Example: Acquisition model
Inbound | Search
Inbound | Social Resource Websites
Outbound
Nurturing Program
Source: Lep Brain DGA
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Nurturing.
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B2B demand-gen is a numbers game
• Only 2-5% of raw inquiries coming into the top of the B2B marketing and sales ‘funnel’ convert to sales.
• 25-30% of B2B marketing databases have bad or incomplete records.
Source: SiriusDecisions Summit 2010
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The nurturing loop
Outbound MarkeEng Inbound MarkeEng
IniEal Buyer Interest
Collect Buyer Insights + Route
Follow-‐up / Content Offer
More Buyer Interest + AcEon
IniEal Human Contact
Sales Follow-‐up
MarkeEng Nurturing
+ MarkeEng AutomaEon
Sales Nurturing
+ CRM
Scoring + SegmentaEon +
RouEng
Add. Explicit + Behavioral Data
CollecEon
MarkeEng AutomaEon to CRM Sync
Email Sent
Web Form Data CollecEon
Source: Lep Brain DGA
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Nurturing layers
BCC1 BCC2 BCC3 BCC4
PC1 PC2 PC4 PC3
DC DC DC DC
Buying Cycle Content
PromoEonal Content
Drip Content
PROSPs RESPs QRs SRLs
Source: Lep Brain DGA
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Example: Nurturing logic
Source: Lep Brain DGA
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Example: Scoring model
Scoring Model +160 pts (210 total)
Category Type Response Pts Response Pts Response Pts Response Pts
Qualified Respondents? BCC3
Industry Demographic Target industry 20 Non-‐target industry 10 Size of company Demographic SMB range 1 40 SMB range 2 30 Enterprise 20 Viewed demo Behavioral Yes 15 Length of Jme viewed demo Behavioral Threshold 15 Below 10
BCC4 Key pain points Demographic Tight fit 40 Loose fit 30 No fit 0 Went to decision tool Behavioral Yes 15 Number of quesJons on decision tool Behavioral Threshold 15 Below 5
PC3 (wait 1 day) Opportunity to complete core BCC3/4 data Download analyst tool Behavioral Yes 30
PC4 (wait 7 days) Opportunity to complete core BCC3/4 data Click on other resources Behavioral Each 20
Note: Need score of 200 to be a 'Qualified Respondent.' If not, will get sent to promoFonal tracks and/or drip track unFl you meet the threshold.
Source: Lep Brain DGA
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Building your program …
Engagement
Nurturing
AcquisiEon
Content markeEng programs
Technology infrastructure
Lead management processes
Source: Lep Brain DGA
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Optimizing demand generation …
Twi$er: @abneedles
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Focusing on results …
• Inbound / outbound activity
• Prospect acquisition performance – # Prospects / channel – Cost / Prospect / channel – Cost / revenue / channel
• Content marketing performance – Revenue elasticity – Offer to close time – Cost / revenue / offer
• Nurturing program conversion rates – Total rate of conversion – Intermediary rates
• Demand Gen program ROI – # Prospects acquired – # Sales Opportunities – Total value of current Sales
Opportunities – Revenue influenced – ROI ratios
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Takeaways
Twi$er: @abneedles
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Takeaway points
• Start with the buyer; put him/her at the center • Apply an operations, process mindset • Shift from mass/push to one-to-one/pull • Successful demand generation is
– Organic, always-on, 24/7 – Buyer-driven – A living, breathing ‘system’ that must be managed – Optimized against revenue performance
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Thank You
Adam B. Needles VP, Demand Generation Strategy Left Brain DGA [email protected] (617) 413-6087 @abneedles www.linkedin.com/in/abnedles
The Key Elements of a Successful, Modern Demand Generation Plan
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Source: ITSMA, “How Customers Choose SoluJon Providers.”
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Source: ITSMA, “How Customers Choose SoluJon Providers.”
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Source: B2B MarkeJng/Base One, "BUYERSPHERE, Survey of B2B Buyers' Use of Social Media"