chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de B2B Inbound Marketing How to win active Prospects as Clients

B2B-Inbound-Marketing chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de The Active Prospect I According to Marketing Sherpa’s “B2B Lead Generation Handbook” 80 % of all clients found their vendors by themselves. Therefore, 20 % of all clients are the result of direct marketing, tele-marketing and sales calls. Which strategies do companies use to better reach this 80 %? Current discussion is mostly about activities instead of strategies, mostly online-marketing on a trial-and-error-basis. A structured, strategic basis for Whitepapers, SEM or Weblogs is needed.

According to Marketing Sherpa’s “B2B Lead Generation Handbook” 80 % of all clients found their vendors by themselves.

Therefore, 20 % of all clients are the result of direct marketing, tele-marketing and sales calls.

Which strategies do companies use to better reach this 80 %?

Current discussion is mostly about activities instead of strategies, mostly online-marketing on a trial-and-error-basis. A structured, strategic basis for Whitepapers, SEM or Weblogs is needed.

B2B-Inbound-Marketing chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de The Active Prospect II New situation: Active prospects search for vendors and contact vendors when they are ready. This is possible because of the volume of information available from vendors, market analysts, media and other sources, mostly via internet. Additionally, as corporate decision-making has gotten more and more complex, a fast ROI is mandatory and the decision-making climbs up the corporate ladder, the preparation must be right to the point. Therefore, a new strategic approach is necessary: B2B-Inbound-Marketing

New situation: Active prospects search for vendors and contact vendors when they are ready.

This is possible because of the volume of information available from vendors, market analysts, media and other sources, mostly via internet.

Additionally, as corporate decision-making has gotten more and more complex, a fast ROI is mandatory and the decision-making climbs up the corporate ladder, the preparation must be right to the point.

Therefore, a new strategic approach is necessary:

B2B-Inbound-Marketing

B2B-Inbound-Marketing chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de B2B Inbound Marketing Companies exist to integrate and transfer their micro-segmented competencies into complex value propositions relevant to the needs of their clients. B2B Inbound Marketing is the ability of a company to adjust their value propositions to the clients and value needs of individual clients. B2B Inbound Marketing follows the processes of a client (decisions, production, SCM etc.). Basics of Inbound marketing are competencies, relationships and information/content.

Companies exist to integrate and transfer their micro-segmented competencies into complex value propositions relevant to the needs of their clients.

B2B Inbound Marketing is the ability of a company to adjust their value propositions to the clients and value needs of individual clients.

B2B Inbound Marketing follows the processes of a client (decisions, production, SCM etc.).

Basics of Inbound marketing are competencies, relationships and information/content.

B2B-Inbound-Marketing chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de B2B Inbound Marketing in Lead Generation B2B inbound marketing in lead generation follows the decision processes of a client. Targets: Inform the prospect, so he starts the contact with the vendor Demonstrate competency and ability/strengths of a solution Reduce the client’s risk evaluation Pre-qualify the prospect for the sales contact Highly individualized communications is needed in inbound-marketing. Don Peppers/Martha Rogers: “As the interactive age arrives, every enterprise has to learn to treat different customers differently”.

B2B inbound marketing in lead generation follows the decision processes of a client.

Targets:

Inform the prospect, so he starts the contact with the vendor

Demonstrate competency and ability/strengths of a solution

Reduce the client’s risk evaluation

Pre-qualify the prospect for the sales contact

Highly individualized communications is needed in inbound-marketing.

Don Peppers/Martha Rogers: “As the interactive age arrives, every enterprise has to learn to treat different customers differently”.

B2B-Inbound-Marketing chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de Decision process I Separates itself into preparing for the decision and then making it. Inbound marketing focuses on the preparation: Recognize and describe problems Time-table for an investment Develop requirements for products and suppliers Choose suitable solutions and vendors Research dependencies with current infrastructure Research costs (investment, service, usage, maintenance etc.) Define necessary process changes, market or other (dis)advantages Evaluate make or buy

Separates itself into preparing for the decision and then making it.

Inbound marketing focuses on the preparation:

Recognize and describe problems

Time-table for an investment

Develop requirements for products and suppliers

Choose suitable solutions and vendors

Research dependencies with current infrastructure

Research costs (investment, service, usage, maintenance etc.)

Define necessary process changes, market or other (dis)advantages

Evaluate make or buy

B2B-Inbound-Marketing chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de Decision process II The preparation (as well as the decision making) is rarely a well structured process. The person responsible for the preparation can’t rely on routines. His job is very complex and he welcomes any relief. The person preparing to make a decision needs to feel he can trust the vendor and their information.

The preparation (as well as the decision making) is rarely a well structured process.

The person responsible for the preparation can’t rely on routines. His job is very complex and he welcomes any relief.

The person preparing to make a decision needs to feel he can trust the vendor and their information.

B2B-Inbound-Marketing chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de The 5 “I” of B2B Communication to build Trust Developed by Kleinenkamp/Ploetner (1996) Intensity: Trust can only be built long-term and in small steps. Individuality: As every prospect prefers different content and presentation forms, trust must be built on an individual basis. Irradiation effects: As competence and reliability are hard to perceive in advance, prospects look for alternate information, e.g. size of vendor. Intelligence: To communicate intelligently means to deliver the right, risk-reducing information to the decision maker. References are helpful. Integration: Integration means that all communication activities and the prospect have to be involved.

Developed by Kleinenkamp/Ploetner (1996)

Intensity: Trust can only be built long-term and in small steps. Individuality: As every prospect prefers different content and presentation forms, trust must be built on an individual basis.

Irradiation effects: As competence and reliability are hard to perceive in advance, prospects look for alternate information, e.g. size of vendor.

Intelligence: To communicate intelligently means to deliver the right, risk-reducing information to the decision maker. References are helpful.

Integration: Integration means that all communication activities and the prospect have to be involved.

B2B-Inbound-Marketing chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de Content Marketing I Eingine of inbound marketing is content that: Focus on decision makers & show solutions from different perspectives (Individuality) Meet decision maker‘s interests, i.e. are relevant (Individuality, Intelligence) Help decision making/preparation because of personal/prof. reasons (Intelligence) Are somewhat exclusive (Individuality) Are consistent and complete (Integration) Allow a long-term dialogue and a step-by-step increase in expertise (Intensity) Make the competence of a vendor and the capability of a solution tangible (Irradiation effects, Intelligence) Are easily available, e.g. registration for download (Integration)

Eingine of inbound marketing is content that:

Focus on decision makers & show solutions from different perspectives (Individuality)

Meet decision maker‘s interests, i.e. are relevant (Individuality, Intelligence)

Help decision making/preparation because of personal/prof. reasons (Intelligence)

Are somewhat exclusive (Individuality)

Are consistent and complete (Integration)

Allow a long-term dialogue and a step-by-step increase in expertise (Intensity)

Make the competence of a vendor and the capability of a solution tangible (Irradiation effects, Intelligence)

Are easily available, e.g. registration for download (Integration)

B2B-Inbound-Marketing chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de Content Marketing II The vendor needs a concrete content marketing strategy. He must define Who (decision maker, preparer, influencer) should receive Which content (messages) in which detail Because of which influencing factors Via which communication channels and activities The vendor needs to see himself as a publisher of high-quality content competing with other information publishers. Content is released on corporate blogs, Twitter, micro sites or external web sites (e. g. whitepaper portals). Holding back information like before is counter productive.

The vendor needs a concrete content marketing strategy. He must define

Who (decision maker, preparer, influencer) should receive

Which content (messages) in which detail

Because of which influencing factors

Via which communication channels and activities

The vendor needs to see himself as a publisher of high-quality content competing with other information publishers.

Content is released on corporate blogs, Twitter, micro sites or external web sites (e. g. whitepaper portals).

Holding back information like before is counter productive.

B2B-Inbound-Marketing chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de Content Marketing III Marketing has to know the person it wants to connnect with. Buyer persona (David Meerman Scott): Instead of large target groups marketing should reach personalized decision makers. Make buyer persona more lively with names, positions, biographies A buyer persona needs to identity his needs, responsibilities and risk evaluation in marketing communications. All members of a buyer center must be considered. Make it easy for everyone to get hold of your content.

Marketing has to know the person it wants to connnect with.

Buyer persona (David Meerman Scott): Instead of large target groups marketing should reach personalized decision makers.

Make buyer persona more lively with names, positions, biographies

A buyer persona needs to identity his needs, responsibilities and risk evaluation in marketing communications.

All members of a buyer center must be considered.

Make it easy for everyone to get hold of your content.

B2B-Inbound-Marketing chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de Content Marketing IV Risk evaluation of a buyer persona depends on: Investment type Product, system or plant Recurring purchase, purchase with changes or first-time purchases Technology diffusion along the technology adoption lifecycle ( Everett M. Rogers/ Geoffrey A. Moore) Innovators Early adopters Early majority Late majority Laggards

Risk evaluation of a buyer persona depends on:

Investment type

Product, system or plant

Recurring purchase, purchase with changes or first-time purchases

Technology diffusion along the technology adoption lifecycle ( Everett M. Rogers/ Geoffrey A. Moore)

Innovators

Early adopters

Early majority

Late majority

Laggards

B2B-Inbound-Marketing chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de Micro-positioning I A vendor must communicate their value propositions (capabilities) to each buyer persona = Persona propositions. This general approach is reflected in the content and the level of detail. All influence factors/parties have to be considered. The difference to classical positioning is in the micro-orientation towards the buyer persona. There are three way to get an insight into what a buyer persona wants: Internal or external expertise Analysis of requirement specifications Qualitative, field research

A vendor must communicate their value propositions (capabilities) to each buyer persona = Persona propositions.

This general approach is reflected in the content and the level of detail.

All influence factors/parties have to be considered.

The difference to classical positioning is in the micro-orientation towards the buyer persona.

There are three way to get an insight into what a buyer persona wants:

Internal or external expertise

Analysis of requirement specifications

Qualitative, field research

B2B-Inbound-Marketing chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de Micro-positioning II Basic messages (persona propositions) are developed based on the expertise or the results of the analysis or field research: per buyer persona per investment type per risk evaluation

Basic messages (persona propositions) are developed based on the expertise or the results of the analysis or field research:

per buyer persona

per investment type

per risk evaluation

B2B-Inbound-Marketing chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de Three Steps of B2B Inbound Marketing The 3-step-process to support prospects in their decision making process and to generate them as leads is: Find Providing information and getting contacted by prospects Nurture marketing and lead qualification Generally it is best, if marketing and sales define together, what a sales ready lead is. One possible way is, that marketing is responsible for these first three steps. If the (pre-qualified) prospect wants concrete information on solution, sales steps in.

The 3-step-process to support prospects in their decision making process and to generate them as leads is:

Find

Providing information and getting contacted by prospects

Nurture marketing and lead qualification

Generally it is best, if marketing and sales define together, what a sales ready lead is. One possible way is, that marketing is responsible for these first three steps. If the (pre-qualified) prospect wants concrete information on solution, sales steps in.

B2B-Inbound-Marketing chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de Find I Prospects do not only limit their supplier search to the internet. To reduce risks they will (Enquiro Research): Look for existing/certified suppliers Ask colleagues inside and outside their own company Ask existing suppliers with other solutions Comb through general information of suppliers But in most cases they will research potential suppliers online first. Additionally, most information research and dialogue will happen online – especially early in the sales cycle.

Prospects do not only limit their supplier search to the internet. To reduce risks they will (Enquiro Research):

Look for existing/certified suppliers

Ask colleagues inside and outside their own company

Ask existing suppliers with other solutions

Comb through general information of suppliers

But in most cases they will research potential suppliers online first.

Additionally, most information research and dialogue will happen online – especially early in the sales cycle.

B2B-Inbound-Marketing chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de Find II No separation between online & offline. Users are savvy to navigate in-between. Central B2B inbound marketing activities are: Search engine optimization (SEO) Search engine marketing (SEM) Blogs & Twitter Social media Public relations Exhibitions Public speaking Industry associations

No separation between online & offline. Users are savvy to navigate in-between.

Central B2B inbound marketing activities are:

Search engine optimization (SEO)

Search engine marketing (SEM)

Blogs & Twitter

Social media

Public relations

Exhibitions

Public speaking

Industry associations

B2B-Inbound-Marketing chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de Providing information and getting contacted by prospects As soon as an evaluator starts to consider a concrete, complex solution, he needs a connection to the vendor. To inform himself and to initiate he uses channels the supplier offers: Websites Blogs, Podcasts & Twitter RSS-Feeds Whitepapers Webinars Product tests Bulletin boards E-Books Call-back buttons Online Chats

As soon as an evaluator starts to consider a concrete, complex solution, he needs a connection to the vendor.

To inform himself and to initiate he uses channels the supplier offers:

Websites

Blogs, Podcasts & Twitter

RSS-Feeds

Whitepapers

Webinars

Product tests

Bulletin boards

E-Books

Call-back buttons

Online Chats

B2B-Inbound-Marketing chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de Nurture Marketing and Lead Qualification I Vendors have to nurture the prospects until they are ready to decide. This might take months. Marketing establishes a continuous information exchange and a dialogue with the prospect. The care consists mainly of materials that the prospects chooses by himself (newsletter, webinars, whitepapers). In parallel the vendor tries to speed up the decision process. The buyer persona might need additional information to push the decision process internally or to see the relevance of a decision.

Vendors have to nurture the prospects until they are ready to decide. This might take months. Marketing establishes a continuous information exchange and a dialogue with the prospect.

The care consists mainly of materials that the prospects chooses by himself (newsletter, webinars, whitepapers).

In parallel the vendor tries to speed up the decision process. The buyer persona might need additional information to push the decision process internally or to see the relevance of a decision.

B2B-Inbound-Marketing chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de Nurture Marketing and Lead Qualification II Sales takes over as soon as the prospects is sales ready. Marketing and sales should decide on when it‘s the case. As the prospect builds up expertise during the process, sales efforts will decrease. During the process and the dialogue the vendor receives information for the lead qualification. Web analytics can be very helpful.

Sales takes over as soon as the prospects is sales ready. Marketing and sales should decide on when it‘s the case.

As the prospect builds up expertise during the process, sales efforts will decrease.

During the process and the dialogue the vendor receives information for the lead qualification. Web analytics can be very helpful.

B2B-Inbound-Marketing chain relations || Torsten Herrmann || 24.07.2009 || page www.chainrelations.de chain relations Torsten Herrmann Georg-Speyer-Straße 2 D-60487 Frankfurt am Main Tel. +49/69/31 01 90 11 [email_address] http://www.chainrelations.de http://www.twitter.com/torstenherrmann http://www.linkedin.com/in/torstenherrmann https://www.xing.com/profile/Torsten_Herrmann