Transcript of "Five reasons you may not be spending enough on content marketing"
Five Reasons You May Not Be Spending Enough on ContentMarketingInteractive Smart Content™ and Dynamic Sales Tools Required to Meet Changing Buyer NeedsMarketing of B2B solutions has clearly become more difficult over the past several years, evident in researchfrom IDC indicating that: 62% of B2B vendors now need more leads in order to generate the same amount of sales; 72% indicate an increase in buying cycle time over the past six months, while the buying cycle timeframe has increased over 10% in the past 12 months.Two economic downturns over the past decade have made buyers more spendthrift, and more skeptical ofvendor claims. Fueled by a wealth of online resources and social networks, buyers have seized control of thebuying cycle, engaging with sales representatives later and later, and further elongating sales cycles.Marketers are scrambling to address the power shift and overcome lead generation and conversion issues bydelivering more content and tools over more channels to actively engage ever more empowered, skepticaland frugal buyers.According to research by Junta42 & MarketingProfs, ―Engage or Perish,‖ is becoming the defining taglinedriving many new B2B marketing strategies with: 51% of B2B marketers increasing their spending in content marketing over the next 12 months; Over a quarter of the total marketing and communications budget now going toward content marketing; 9 of 10 B2B marketers leveraging content marketing as part of their marketing programs.In our research with IDC, SiriusDecisions and other partners, we have found that there are five key trends, inbuyer behavior reinforcing one other to define the need for different and perhaps even more investment incontent marketing programs into 2011 and beyond: 1. Internet Fueled Buying Cycles – buyers more than ever are taking charge of the buying cycle, using online content to drive research, comparisons and purchase decisions. Having the right content and tools to help fuel buyer’s decision making process is essential. This requires the right content at each stage of the buying cycle; 2. Information Overload – buyers are inundated with more marketing messages over more channels than ever before, becoming overloaded and confused, leading to stalled decision cycles. Better content targeting and personalization is required to end the ―carpet bombing‖ techniques and make meaningful connections.
3. Matter of Trust – although the research indicates that buyers truly rely on vendor content to help drive purchase decisions, with so much noise, buyers have become skeptical of vendor claims. Content that is created by or endorsed by peers and analysts is becoming more and more essential to create credible connections and engagements, and win over skeptical buyer trust. 4. Frugalnomics – with two economic downturns over the past decade, buyers are focused more than ever on what solutions can do to help them ―do-more-with-less,‖ drive savings and realize quantifiable bottom-line impact. Content and tools that help buyers assess the economic impact of implementing the proposed solutions, or the cost of ―doing nothing,‖ are essential. 5. Death of a Salesman? – research from IDC indicates that buyers view sales professionals as adding less and less value to the decision making process, and as a result, are involving them later and later in the sales cycle. Extending this trend over the next five years means that sales may be completely bypassed in some B2B markets, and certainly will be shaped differently by this trend in all markets. Marketing needs to develop content and assessment tools to help sales professionals add value earlier in the sales process, helping to morph current product / solution sales methodologies towards value selling engagements.These five buyer trends will truly define the next decade in marketing, creating a roadmap for additionalcontent marketing investments. Content marketing needs to grow and evolve to thrive in this changed buyingenvironment, and should include the following five initiatives: 1. Buying-Cycle Aligned Content – investment in the right content and tools to empower buyers through the prospect driven buying cycle, including in the: a. Early stages (to help buyers understand what problem they have and how others have solved it) providing market opportunity and research white papers and webinars, e-books and magazines, advice blog posts, peer forums, and interactive executive assessment tools. b. Middle Stages (to help buyers understand what solutions are available and the value in solving the issues) providing solution white papers and webinars, product information and interactive demos, solution focused blog posts, benefit assessments, ROI calculators, case studies, testimonials and peer forums. c. Later Stages (to help buyers know what it will take to purchase and implement the solution and how proposed solutions compare to the competition) providing evaluation and pilot programs, feature comparisons, quoting and configuration tools, competitive intelligence articles and blog posts, and total cost of ownership (TCO) comparison tools. 2. Personalized Content – developing not just more, but ―smart content,‖ to help cut through the noise and create a one-to-one dialogue with buyers, using prospect profile, opportunity and pain point information to present just the right personalized content at the right time, including personalized e- mail blasts, website content, interactive white papers and executive assessment tools;
3. Building Trust – leverage of third party endorsements from buyer’s peers, analysts and other trusted sources to overcome skepticism and gain buyer trust, especially independent or validated reviews, peer forums, testimonials and success stories; 4. Fight Frugalnomics – for buyers forced to ―do-more-with-less,‖ and focused more than ever on bottom-line impact and best value from all investments, the creation of more economic focused content and interactive tools to helping buyers quantify the value of solutions, especially benefit focused white papers, benefit assessments, ROI calculators and TCO comparison tools; 5. Sales Enablement – content to empower sales professionals to engage earlier in the buying process, before prospects have already made their purchase decision, and with a value selling versus product / solution focus. For example, this could include methodologies, presentations, white papers and assessment tools to help sales professionals identify and illuminate buyer issues, benchmark buyers versus competitors and best practice leaders, and create / drive solution roadmaps to help resolve the most pressing customer issues.The organizations that recognize these significant and fundamental B2B buyer changes, and align theircontent marketing budgets to empower buyers, engage one-to-one, build trust, address economically focusedbuyers and enable sales to engage with more value will be the winners in the next decade.Let us examine each of the trends and research in detail.Internet Fueled Buying CyclesThe Internet has made more information available via more channels, and this wealth of information is beingleveraged by buyers to make key purchase decisions, redefining how, when and where buyers engage, selectand purchase your solutions.In the B2C space, the Internet has dramatically impacted how books, apparel, electronics, music, cars andother goods are bought and sold. The consumer is now in charge: researching specifications, configuring andcustomizing solutions, getting peer reviews and advice, comparing prices, and ―buying now.‖ In manyinstances, sales forces and channel partners have been disinter-mediated, whereby direct contact with thebuyer has been totally replaced with online interaction. And the shift to ―buyer control‖ has seen the rise ofnew retail channels and marketing sites with substantial competitive impact for those that embraced andleveraged the shift, and those that lagged behind.These B2C buyers now rely on vendor web-sites, independent buyer guides, and social networks to help guidetheir decisions, and as a result, B2C marketers have had to visibly change to meet these demands. Importanthas been the marketer’s development and delivery of on-line content and decision making tools to fuel andautomate the buying cycle, reviews and transaction. For example, automotive sites now provide more toolsthan ever to guide buyer’s decisions including customized configurators and pricing tools, competitivecomparison tools, video brochures, and Facebook ―fan‖ pages.
Analysts such as Forrester and Gartner are highlighting ―consumerization‖ of business as a key trend for thenext several years, and B2B marketing is one area that will face the ―consumerization‖ change, making contentmarketing and interactive decision support tools more important than ever before.Evidence of this shift can be found in IDC’s 2010 Customer Experience Survey. When asked, over 200 B2Bsolution buyers now felt that the most important part of the overall purchase process was Vendor Content,with over 1/3rd of the buyers indicating this content as key to the purchase decision. Content may indeed beKing to the Internet fueled buying cycle.IDC survey results indicate that buyers rely on Vendor Content greatly, exceeding the value of direct vendorengagements with technical teams, sales representatives and executives in making key purchase decisions.With a wealth of information available at the click of a mouse, buyers are doing more of their own researchand evaluations online, relying less and less on vendor interaction to progress through the decision makingcycle. Sales teams are being engaged later and later in the sales cycle. Marketers recognizing this shift areproviding the content needed at each stage of the lifecycle to fuel the decision making process.According to SiriusDecision buyer studies, the most favored sources of content during the early stages of b-to-b decision-making are: White papers (64.4%) Peer referrals (51.1%) Webinars (48.9%) Trials or demos (42.2%) Analyst reports (37.8%)In later stages of the sales cycle, analyst reports and peer referrals reign supreme.
Information OverloadAlthough buyers extensively use and rely on vendor information to make purchase decisions, most of today’sbuyers indicate that they suffer from ―Information Overload‖ as a result of current ―carpet bombing‖marketing strategies.Many of us have experienced this phenomenon, getting more content from more sources than ever before.According to SiriusDecisions, just looking at e-blasts alone, the typical buyer receives over 20 e-mail marketingmessages a week, up 32% over the past four years. And this is but one of several traditional and onlinechannels that are proactively providing information on a daily basis to prospects. Instead of being engaged,buyers are now inundated with more meaningless product information, offers and ―noise,‖ creating acondition often referred to as ―marketing fatigue.‖One of the keys to cutting through the noise is to provide buyers with more personalized and meaningfulcontent to transcend generic messaging to create an engaging dialogue.The power of personalization is real, where according to MarketingSherpa and KnowledgeStorm surveys,when content is customized, buyers indicate that the content is much more effective at capturing prospectattention, and most importantly, converting prospects into buyers. The study examined the customizationtechnique and percentage of buyers who indicated customized content is more valuable when customized bythis technique: By Industry = 82% more effective By Role / Job Function = 67% more effective By Company Size = 49% more effective By Geography = 29% more effectiveAnd this is but a fraction of the customization that could be made to personalize content. Pivot points tocustomize the content could include customization by stage in buying cycle, specific pain points, specificopportunities and needs, and competitive considerations.The customization of the content can be generated in different ways to be sure it is relevant to the particularpersona and characteristics of the buyer, such as using:
Visitor click activity to determine what information is presented next on the website, or what offers / content to serve; Registration profiles to customize the online web content presented, or scheduled e-mail blast content sent; Interactive white papers and assessment tools that asks the customer a few questions and then tune the white paper content or customized assessment benchmark results interactively based on profile (industry, location, size, role), stage in buying cycle, opportunity, pain points and need.According to a marketing automation firm Silverpop survey of B2B marketers, even though customization isvery effective, only 35 percent of marketers said they were using dynamic content today. However, of thosethat did, the results of personalized content have been impressive, with 93 percent said it worked better forthem than traditional content, and 43 percent reported that it ―worked great.‖Matter of TrustAlthough buyers clearly rely on Vendor content to do research and make important purchase decisions, andnot having this content in today’s Internet fueled buying cycle can be fatal, a conundrum exists where vendorsare not always perceived as a trusted source. Perhaps because of the overload of marketing messagesreceived daily, or the boldness of such messages / claims, or the fact that at the end of the day the Vendor isultimately there to sell something, but the research indicates that buyers are clearly skeptical of vendorproduced and provided content.Buyer survey results from SiriusDecisions indicate that the most trusted sources of marketing contentinformation through the buying lifecycle are industry analysts (cited by 31.4% of respondents), and peers(28.7%), especially early in the lifecycle. The influence of vendors as a trusted source of information lagsdramatically, at only 8.1% this year, an increase from 3.1% in 2006, but still much lower on the trust scale thanalmost all other sources.Internet fueled buying decisions rely on creating a credible and meaningful connection to the buyer,overcoming the virtual nature of the medium to create trust. Because buyers are researching solutions online,they cannot look a salesperson in the eyes to determine credibility.To overcome the skepticism, it is important for content marketers to provide the right content to bridge thecredibility gap, including analyst reviews, user testimonials and success stories, third party validation ofresearch and financial justifications, and cultivation of independent peer reviews and feedback. Personalizingthis content so that it matches buyer’s pain points, industry, location, size and opportunity, helps engage withboth credibility and customization today’s overloaded and skeptical buyers demand.FrugalnomicsAccording to Forrester analyst Scott Santucci, go-to-market models always change during periods ofdisruption, and Great Recession has certainly caused its share of turmoil. ―The more buying organizations areforced to do-more-with-less they adopt different business patterns,‖ says Mr. Santucci.
We term the current shift Frugalnomics, where two successive economic downturns over the past decade haveresulted in an increasingly economic focused buyer that demands quantifiable proof that each investment willyield a beneficial bottom-line impact and provide maximum value compared to alternatives.According to Forrester’s Mr. Santucci, the Frugalnomics focus has significant and fundamental strategyimplications. ―Today, buyers are looking for business partners that will help them drive business results oroutcomes – rather than bundle their products and services into solutions.‖With Frugalnomics, buyers are inclined to not make significant investments or changes, and as a result,customers need to be armed with the tools to ―make the case for change.‖ Unfortunately, most buyers areinclined to ―do nothing‖ during periods of uncertainty; however, there is a ―cost to doing nothing.‖ Customersneed to be armed with the tools to quantify the cost of indecision and the positive bottom-line impact thesechanges can have.In order to attract, connect and capture frugal buyers, marketers need to produce content that raiseseconomic interest, quantifies value, and boosts urgency in a time where it’s easier to do nothing than make awrong investment. According to IDC research, over 90% of surveyed decision makers now require quantifiableproof of bottom-line benefits on most projects. The larger the purchase, the more formal financial duediligence is required.However, even though financial impact analysis is required, two-thirds (65%) of buyers indicate that they donot have the knowledge or tools needed to do business value assessments and calculations. As a result, over81% of buyers expect vendors to quantify business value of proposed solutions.Content marketers must develop content to engage and empower economic buyers, including research, interactive andtraditional white papers, webinars and dynamic sales tools to help quantify the value of proposed solutions, return oninvestment (ROI) calculators, and competitive total cost of ownership (TCO) comparisons.Death of a Salesman?Because of Internet Fueled Buying Cycles, sales is being invited later and later the table, and in some cases,not at all. Buyers can now use the Internet to research and assess opportunities for improvements, find andget solution recommendations, make the financial case for change, compare and contrast competitive optionsand pricing, and often make the purchase online. So what is the role of a salesperson in such an empoweredbuyer environment, and will this lead to the ―Death of a Salesman?‖According to SiriusDecisions, focusing on marketing costs per sales person indicates that on averagecompanies invest a significant $43,011 / salesperson, an estimated 3%-7% of the opportunity value of thesales pipeline.
However, research by IDC recognizes that although sales enablement investments are significant, theinvestments may not be delivering on promises. Surveys reveal that buyers are not satisfied with the valuesales professionals are delivering to engagements. In a recent survey, 24% of buyers indicated that the salesreps are not prepared for presentations at all, 30% indicate that they are somewhat prepared, and only 29%indicate that they are well prepared. The lack of preparation has been directly shown to drive inefficientconversion, longer sales cycles, more discounting, and higher competitive losses.So why are the sales enablement investments not paying off? Are sales professionals resisting the fact that buyers and the buying lifecycle have fundamentally changed? Are marketing and sales enablement teams producing the right presentations, white papers and tools for sales professionals to use in customer engagements? Is the sales force aware of these tools, and have knowledge to select or are prompted as to which tools to use when? Is the sales force using the presentations, white papers and tools at all (research by AMA indicates that 90% of marketing materials are not used by sales)? Or is it an issue of acceptance, where the methodology, presentations, collateral and tools are not being accepted by customers as valuable?Over the next five years it is clear that sales has to change to meet empowered buyer needs and continue toadd value to the engagement. Content marketing plays an important role in arming sales professionals withthe right content and dynamic sales tools to reshape the way they engage and connect with ever more frugal,skeptical and empowered buyers.Marketing needs to play a clear role to either help redefine the sales role and empower sales professionalswith the content and tools needed to add value in the buying cycle, or simply remove sales from the processaltogether, empowering buyers directly with the content, tools and channel to make their own decisions andbuy on their own. Likely, as we have seen in B2C, marketing will need to both help redefine sales engagementsand empower direct buying content and channels.
Communicate: Stop the Noise & Start Real Dialogues with Prospects, http://www.silverpop.com/marketing-resources/white-papers/download/b2b-marketing-success.htmlScott Santucci - Forrester Sales Enablement Blog: http://blogs.forrester.com/scott_santucci2010 B2B Content Marketing Benchmarks, Budgets and Trends, American Business Media, Business Marketing Association, Junta42 and MarketingProfssurveyed over 1,100 North American B2B marketers from diverse industries and a wide range of company sizes. Published: September 15, 2010,http://www.contentmarketinginstitute.com/2010/09/b2b-content-marketing/