on target 2014 julian archer, siriusdecisions
DESCRIPTION
On Target 2014 is the Go-To Conference for B2B Sales & Marketing. How to increase win rate with new sales and marketing technologies ? Julian Archer talks about the changing world and how the B2B marketing budget is being spent in different parts of the world and the effect and ROI of the different activities.TRANSCRIPT
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Adopting to new B2B buyer behaviour in a connected and digital world
Julian Archer Research Director
Demand Creation Strategies LinkedIn: julianarcher Twitter: JulianArcher
[email protected] Tel: +31 653392741
© 2014 SiriusDecisions. All Rights Reserved
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SiriusDecisions Advisory Services
Interfaces Receive:
• Dedicated Account Team • Research portal access • Analyst inquiry • Access to benchmark data • Annual custom benchmark
assessment • Executive peer roundtables/
forums • Monthly research Webcasts
Executive Edge CMO
Demand Creation Strategies
Strategic Communications Management
Sales Operations Strategies
Channel Management Strategies
Marketing Operations Strategies
Portfolio Marketing
Adv
isor
y S
ervi
ces
Sales Enablement Strategies
Account-Based Marketing
Product Management
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Select Client List
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Executive Summary
• Key issues
- B-to-b demand creation is increasing in complexity. This is driving the need for greater sales and marketing alignment
- Changes in buyer behaviour require marketers to adapt their strategies to align with buyers’ needs and preferences throughout the buying cycle
- Many organisations lack the process discipline and technology to measure marketing’s contribution to the business
• What you will walk away with
– Current reported tactic budget spend and perceived effectiveness driving enquiries at the top of the Demand Waterfall across EMEA
– An understanding of content’s evolving role in demand creation,
– An understanding of technology and measurement approaches that can drive companies to better performance
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SiriusDecisions: EMEA Demand Creation Study
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Our Methodology
ü Series of qualitative interviews
ü Large-scale quantitative study
UK, 13%
France, 15%
Germany, 13%
Spain, 16%
Italy, 16%
Netherlands, 13%
Nordics, 13%
Ø Countries and regions represented
ü Over 400 Organisations
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Profile of Participating EMEA Organisations
Industry
4%
7%
29%
17% 10%
7%
8%
18%
Software - SaaS based
Software - On premise
Professional services
Financial Services
Information Services
Computer/Telecommunications Hardware Healthcare
Other (please specify)
Go To Market Model
43%
20%
17%
13%
7%
Direct Sales Force
Inside Sales Force
Third Party Channel Partners Retail
14%
20%
13% 12%
11%
9%
21%
Less than 40 million EUR 40 to less than 200 million EUR 200 to less than 500 million EUR 500 to less than 1000 million EUR 1000 to less than 5000 million EUR More than 5000 million EUR Don’t know
EMEA Revenue
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EMEA Demand Creation Study Budget Allocation by Tactic
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SiriusPerspective:
12.9% 11.2%
10.1% 10.4%
6.6% 4.9%
4.7% 4.7% 4.6%
4.4% 4.2%
3.9% 3.1%
2.8% 2.6% 2.5%
2.2% 2.1% 2.0%
Online Banner Advertising Email campaigns
Live events (seminar / road show) Tradeshows
Direct Mail User Conferences
SEO Newsletter
Virtual Events Association Marketing
Search Keyword Sponsorship Contact list rental/purchase
Trials White Paper Downloads
Online Communities (external) Content Syndication
Demos Videos
Online Communities (Internal)
EMEA Budget Allocation by Tactic Today, 35 percent of the marketing budget is used for demand creation; of that, almost half is allocated to four tactics.
45%
34%
21%
Source: SiriusDecisions, EMEA Demand Creation Study, April 2013
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EMEA Budget Comparisons: Top 5 Tactics
Online Banner Advertising
Live Events (seminar/ road show)
Email Campaigns
Direct Mail
Tradeshows
UK FR IT DE SP NL NO
11.6
10.7
10.5
10.1
11.6 13.2 15.1 15.9 9.8 8.5 7.9
14.6 11.9 11.3 10.5 8.8 8.3 8.2
11.9 12.8 11.2 14.5 8.6 8.4 7.5
12.6 11.8 11.3 10.5 9.5 7.4 7.4
7.2
5.3
4.1
6.8 7.4 8.1 8.5 10.1
Average #OnTarget2014
EMEA Demand Creation Study Most Effective Tactics Reported by EMEA Marketers
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SiriusPerspective: 5 Most Effective EMEA Tactics: Seller’s View
Five tactics were reported to be most effective in driving responses in EMEA.
#2
#3CV
#4
Exploring Possible Solutions
Committing to a Solution
#1
Suspect
Committing to Change
Suspect
Online Banner Ads
User Conferences
Trade Shows Live Events Email
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SiriusPerspective:
Tac$c Email campaigns Tradeshows
Live events
Online banner ads
User conferences Direct mail
Newsle=er
SEO
Most Effective Tactics for Driving Inquiry: Country-Level Three of the same tactics were rated the most effective across all key markets.
Nordic NL ES IT FR DE UK
39.0% 29.4% 31.0% 30.3% 40.5% 39.5% 34.1%
31.5% 29.4% 42.5% 31.5% 39.3% 36.8% 44.7%
38.4% 51.7% 36.0% 56.0% 42.1% 40.0% 42.6%
36.3% 37.9% 37.1% 29.8% 30.3% 35.3%
28.1% 33.8%
35.3%
31.5%
30.6%
31.0% 30.3%
29.9%
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SiriusPerspective: Tactics: Seller’s vs. Buyer’s View
While sellers rely heavily on outbound tactics, EMEA b-to-b buyers utilise other sources to educate themselves.
15
#2
#3CV
#2
#4
Exploring Possible Solutions Com
mitting to a Solution
Online Banner
Ads #2
#3CV
#2
#4
Exploring Possible Solutions Com
mitting to a Solution
Committing to Change
Call a Peer
Vendor Web site
Search Engines
Search Online
Ask Team
#1 Committing to Change
User Conf.
Trade Shows Email
Online Banner
Ads
Live Events
Direct Mail SEO
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SiriusPerspective: What Drives Change? B-to-B Buyer Behaviour
Up to 67 per cent of the buyer’s journey now occurs digitally, shortening the actual time for sales engagement.
① Loosening of the Status Quo
Vendor Selection
Phase
Solution Phase
Education Phase
② Committing to Change
③ Exploring Possible Solutions
④ Committing to a Solution
⑤ Justifying the Decision
⑥ Making the Selection Point of Prospect Intersection With Rep
Marketing
Sales
Marketing Is Taking the First
Sales Call
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Link Content to Buyer’s Journey
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Align Content and Programs to Buying Cycle
We may have a problem, or we are conceiving
a vision.
Virtual Events Social Media Trade Shows White Papers
Blogs
Thought Leadership
Web Site/SEO Webcasts Self-‐Guided
Demos Product Collateral
We understand the problem and how it
connects to our business.
Solution Knowledge
Your solution applies to our
need.
Sales Presentations Webcasts Live Events Case Studies Internal Blogs
Value Story
Your solution will have the
greatest impact on our
business.
Trials Proofs of Concept Competitive Tools
SME Access
Solution Differentiation
The business case is justified
internally.
ROI Tools TCO Tools
Business Case Financial Presentation
Live Events
Financial Justification
We are confident on
moving forward.
Executive Briefings Analyst Reports Customer References
Decision Validation
Loosening of the Status Quo
Committing to Change
Committing to a Solution
Solution Education Vendor Selection
Exploring Possible Solutions
Justifying the Decision
Making the Selection
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Link Complexity of Buying Team from Cold to Close
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The SiriusDecisions Re-architected Demand Waterfall
Close
Sales Qualification
Marketing Qualification
Inquiry Outbound Inbound
Teleprospecting Qualified Leads (TQLs)
Teleprospecting Accepted Leads (TALs)
Sales Generated Leads (SGLs)
Sales Accepted Leads (SALs)
Automation Qualified Leads (AQLs)
Teleprospecting Generated Leads (TGLs)
Sales Qualified Leads (SQLs)
Won Business PATENT PENDING
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Link Importance of Technology to Demand Creation - MAP
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The Usual B-to-B Scenario
Sales Qualified Leads
Close 417 inquiries to
close 1 deal
Sales Acceptance
Marketing and Tele Qualification
Sales Qualification
Inquiries
417 inquiries to close 1 deal
Sales Acceptance
Marketing and Tele Qualification
Inquiry
Sales Qualification
80% No nurture/ qualification
100% Sales accepts everything/nothing
3% - ?? Inefficient use of sales resources
SQL 10% - ??
Poor pipeline dynamics
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The Best-in-Class B-to-B Scenario
Sales Qualified Leads
Close 417 inquiries to
close 1 deal
Sales Acceptance
Marketing and Tele Qualification
Sales Qualification
Inquiries
70 inquiries to close 1 deal
Sales Acceptance
Marketing and Tele Qualification
Inquiry
Sales Qualification
9.3% Real lead qualification
85% Strong process that is adhered to
62% Sales becomes more efficient
SQL 29% - ??
Pipeline dynamics improve
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Benefits of Marketing Automation
1. Visibility and Insight
• Better measurement and diagnosis of cold to close process
2. Lead Nurturing Optimization
• Clear disposition of each and every customer and prospect
3. Improved Conversion Rates
• More efficient execution with process automation
• Focus on data quality to support segmentation and targeting
• Focus on sales and marketing alignment
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SiriusPerspective: MAP Technology: Nordics Adoption and Utilization
Implementing multi-touch, integrated demand creation programs requires a marketing automation platform.
#3
#5
#1
#2
#3CV
#2
#4
Q) MAP currently in place? Of those having a MAP in place, 37.5% have standardized its usage. Most common usages include:
Q) Planning to implement within the next 24 months?
Source: SiriusDecisions, EMEA Demand Creation Study, April 2013
Yes 16%
No 84%
Yes 26%
No 74%
12.5% 25.0%
0.0% 50.0%
25.0% 37.5%
12.5% 0.0% 0.0%
12.5% 0.0% 0.0%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
Lead nurture programs
Lead scoring capabilities
Social Media Monitoring
Personalized content
Progressive forms
Personalized landing pages
Automatic lead conversion
Account scoring
Content reporting
Task creation
Partner acquisition
Other (please specify)
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SiriusPerspective:
Outbound Only Integrated Programs Lead to Close 15.3 7.2 Sourced Pipeline 15.5% 30%+ Close Rate 19% 24.5% Influenced Pipeline 52% 70% + Marketing Touches 25 + 15 - 20 Programs 50 + < 30% Program Design Single-Channel Multi-Channel Campaign Focus Product Solution Primary Source Email Web Marketing Pipeline Cost 2% - 3% .5% -1.5%
Best Practice: Integrated Marketing Mix – Why Bother? When inbound and outbound approaches are combined, more leads are generated at a lower cost.
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Action Plan
• To drive differentiation in a highly competitive market, understand your buyers and their information needs at each stage of the buying process
• As the marketing mix continues to evolve, avoid spreading your budget too thinly across various tactics
• Continue to experiment and ensure tactics are aligning with buyer interaction preferences and information needs
• Determine marketing’s contribution using the SiriusDecisions Demand Waterfall
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Thank You!
Julian Archer [email protected]
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