On Target 2014 Julian Archer, SiriusDecisions

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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.

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On Target 2014 Julian Archer, SiriusDecisions

  1. 1. © Copyright SiriusDecisions. All Rights Protected and Reserved. 1
  2. 2. Adopting to new B2B buyer behaviour in a connected and digital world Julian Archer Research Director Demand Creation Strategies LinkedIn: julianarcher Twitter: JulianArcher julian.archer@siriusdecisions.com Tel: +31 653392741
  3. 3. © 2014 SiriusDecisions. All Rights Reserved 3 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 AdvisoryServices Sales Enablement Strategies Account-Based Marketing Product Management #OnTarget2014#OnTarget2014
  4. 4. © Copyright SiriusDecisions. All Rights Protected and Reserved. Select Client List #OnTarget2014
  5. 5. © 2014 SiriusDecisions. All Rights Reserved 5 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 #OnTarget2014
  6. 6. SiriusDecisions: EMEA Demand Creation Study
  7. 7. © 2014 SiriusDecisions. All Rights Reserved 7 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 #OnTarget2014
  8. 8. © 2014 SiriusDecisions. All Rights Reserved 8 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/ Telecommunicat ions 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 #OnTarget2014
  9. 9. EMEA Demand Creation Study Budget Allocation by Tactic
  10. 10. © 2014 SiriusDecisions. All Rights Reserved 10 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
  11. 11. © 2014 SiriusDecisions. All Rights Reserved 11 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 15.99.88.57.9 14.611.911.3 10.58.88.38.2 11.9 12.811.2 14.58.68.47.5 12.611.811.310.59.57.47.4 7.2 5.3 4.1 6.8 7.4 8.1 8.5 10.1 Average #OnTarget2014
  12. 12. EMEA Demand Creation Study Most Effective Tactics Reported by EMEA Marketers
  13. 13. © 2014 SiriusDecisions. All Rights Reserved 13 SiriusPerspective: 5 Most Effective EMEA Tactics: Seller’s View Five tactics were reported to be most effective in driving responses in EMEA. #2 #3 CV #4 Exploring Possible Solutions Committing to a Solution #1 Suspect Committing to Change Suspect Online Banner Ads User Conferences Trade ShowsLive EventsEmail #OnTarget2014
  14. 14. © 2014 SiriusDecisions. All Rights Reserved 14 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% #OnTarget2014
  15. 15. © 2014 SiriusDecisions. All Rights Reserved 15 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. 1 5 #2 # 3 C V #2 # 4 Expl orin g Poss ible Solu tions Com mittin g to a Soluti on Online Banner Ads #2 # 3 C V #2 # 4 Expl orin g Poss ible Solu tions Com mittin g to a Soluti on Com mittin g to Chan ge Call a Peer Vendor Web site Search Engines Search Online Ask Team #1 Com mitti ng to Chan ge User Conf. Trade Shows Email Online Banner Ads Live Events Direct Mail SEO
  16. 16. © 2014 SiriusDecisions. All Rights Reserved 16 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 #OnTarget2014
  17. 17. © 2014 SiriusDecisions. All Rights Reserved 17 Link Content to Buyer’s Journey #OnTarget2014
  18. 18. © 2014 SiriusDecisions. All Rights Reserved 18 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 SolutionEducation Vendor Selection Exploring Possible Solutions Justifying the Decision Making the Selection
  19. 19. © 2014 SiriusDecisions. All Rights Reserved 19 Link Complexity of Buying Team from Cold to Close #OnTarget2014
  20. 20. © 2014 SiriusDecisions. All Rights Reserved 20 The SiriusDecisions Re-architected Demand Waterfall Close Sales Qualification Marketing Qualification Inquiry OutboundInbound 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
  21. 21. © 2014 SiriusDecisions. All Rights Reserved 21 Link Importance of Technology to Demand Creation - MAP #OnTarget2014
  22. 22. © 2014 SiriusDecisions. All Rights Reserved 22 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 #OnTarget2014
  23. 23. © 2014 SiriusDecisions. All Rights Reserved 23 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 #OnTarget2014
  24. 24. © 2014 SiriusDecisions. All Rights Reserved 24 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 #OnTarget2014
  25. 25. © 2014 SiriusDecisions. All Rights Reserved 25 SiriusPerspective: MAP Technology: Nordics Adoption and Utilization Implementing multi-touch, integrated demand creation programs requires a marketing automation platform. #3 #5 #1 #2 #3 CV #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)
  26. 26. © 2014 SiriusDecisions. All Rights Reserved 26 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.
  27. 27. © Copyright SiriusDecisions. All Rights Protected and Reserved. 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 2 7#OnTarget2014
  28. 28. © 2014 SiriusDecisions. All Rights Reserved 28 Thank You! Julian Archer julian.archer@siriusdecisons.com #OnTarget2014

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