Software Business 2008 Conference


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Relationship Marketing 2.0

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  • Software Business 2008 Conference

    1. 1. Relationship Marketing 2.0: The Strategy Imperative for B2B Marketing Client Acquisition Success Henry Bruce, President The Rock Annand Group October 30, 2008 +
    2. 2. What Will We Cover? <ul><li>Why traditional approaches are not effective </li></ul><ul><li>Three macro trends working against marketers </li></ul><ul><li>Key challenges for marketers </li></ul><ul><li>Relationship Marketing 2.0 model defined </li></ul><ul><li>Case study: Thought leadership at its best </li></ul><ul><li>Wrap up & questions </li></ul>
    3. 3. About The Rock Annand Group <ul><li>My Focus: Software and SaaS solution companies </li></ul><ul><li>Typical engagement scope/deliverables: </li></ul><ul><ul><li>Client acquisition strategy/program development </li></ul></ul><ul><ul><li>Go-to-market strategy/positioning/messaging </li></ul></ul><ul><ul><li>Sales and marketing alignment </li></ul></ul><ul><ul><ul><li>Strategic sales tools to drive pipeline performance/execution </li></ul></ul></ul><ul><ul><li>Interim VP/Director of Marketing </li></ul></ul><ul><li>My Background: VP Sales/Marketing/Strategy </li></ul><ul><ul><li>Extensive sales and field ops/exec management experience </li></ul></ul><ul><ul><li>Check me out: </li></ul></ul><ul><ul><ul><li> </li></ul></ul></ul><ul><ul><ul><li>LinkedIn Profile> http:// </li></ul></ul></ul>
    4. 4. RA Clients: Software & Services From Start-ups to Established Players
    5. 5. Something’s GOT to Change!! <ul><li>This practice is NOT innovative </li></ul><ul><ul><li>Reduces sales efficiency and increases costs </li></ul></ul><ul><ul><li>Increases buyer frustration and ambivalence </li></ul></ul>Forrester Research, Laura Ramos October 2006 B2B Marketers can no longer afford to emphasize lead volume over quality “ ”
    6. 6. Some interesting stats to consider … <ul><li>Only 12.5% of leads have immediate demands </li></ul><ul><li>70 – 80% of “inquiries” have “latent” demand and therefore go uncalled on by the sales team </li></ul><ul><li>87 out of 100 deals were initially left behind by sales </li></ul><ul><li>Takes 7 – 9 proactive communications to get attention </li></ul><ul><li>Over 7x improvement in sales closure if leads responded to within 48 hours </li></ul><ul><li>95 – 97% of prospect are not ready to buy </li></ul><ul><li>>50% of existing leads are viable and qualified, but not sales-ready </li></ul>
    7. 7. Three Macro Trends <ul><li>We can’t get thru to our Target Audiences </li></ul><ul><ul><li>Sales: Your prospects don’t want to SEE you </li></ul></ul><ul><ul><li>Marketing: Your audience can’t HEAR you </li></ul></ul>Awareness does NOT drive behavior anymore John Coe, Fundamentals of B2B Sales & Marketing “ ”
    8. 8. Three Macro Trends <ul><li>We can’t get thru to our Target Audiences </li></ul><ul><li>Buying process is much more complex </li></ul><ul><ul><li>Disconnected from traditional “Sales Cycle” </li></ul></ul><ul><ul><li>Discretionary spend is funding SW purchases </li></ul></ul><ul><ul><ul><li>Competition for those $ within firm is the big driver </li></ul></ul></ul><ul><ul><li>The buyer is “in control” </li></ul></ul><ul><ul><ul><li>More channels, delivery models, competitors to choose from </li></ul></ul></ul>
    9. 9. Three Macro Trends <ul><li>We can’t get thru to our Target Audiences </li></ul><ul><li>Buying process is much more complex </li></ul><ul><li>Consumerism and the social groundswell </li></ul><ul><ul><li>Buyers look to peers for information over sellers </li></ul></ul><ul><ul><li>Forrester survey: Peers #1 information source </li></ul></ul><ul><ul><li>Word-of-Mouth reviews increasing in importance </li></ul></ul>
    10. 10. #1 Marketing Challenge: Generating Qualified Leads Target Market Universe of Opportunity Developed List Responses Qualifications Marketing DB Requirement Responses to 6 campaigns Over 12 months What is Qualified? 100,000 25,000 3,000 600 200 Q Leads 33% 20% 12% 25% Demand Creation Marketing Source: Sirius Decisions 2006 <ul><li>Converting “hand-raisers” into qualified buyers and evaluators. </li></ul><ul><li>Study revealed avg of 15:1 conversion rate of suspects from initial response to qualified lead for sales follow-up </li></ul><ul><li>Market leaders convert at 8:1, delivering twice as many qualified then study group. </li></ul><ul><li>“ One and done” campaigns still the norm. </li></ul><ul><li>Study shows that marketing turns over leads after 1 to 1.5 interactions. This is common practice for “lead-starved” sales organizations </li></ul>
    11. 11. #2 Marketing Challenge: Building Integrated Multi-Channel Approach <ul><li>Multi-channel, multi-track marketing processes and programs drive ROI </li></ul><ul><li>Well-executed multi-channel marketing campaigns generate a sales lift ranging form 7-34% </li></ul><ul><li>65% of marketers say that: </li></ul><ul><ul><li>“ my company yields a better ROI through a multi-channel approach.” </li></ul></ul><ul><li>Source: Internet Advertising Bureau / </li></ul><ul><li>Direct Marketing Association </li></ul>
    12. 12. Relationship Marketing 2.0 Innovation starts with you! <ul><li>Committing to your target audience: </li></ul><ul><ul><li>Make evaluation and active buy process easy (self-serve) </li></ul></ul><ul><ul><li>Understand the rules of Web/Marketing 2.0 </li></ul></ul><ul><ul><ul><li>Think conversations and building communities </li></ul></ul></ul><ul><ul><ul><li>Permission-based marketing – no SPAM </li></ul></ul></ul><ul><li>Think/Communicate like sales people </li></ul><ul><ul><li>Market intelligence – database not lists </li></ul></ul><ul><ul><li>Send only value-based messages (buyer decides) </li></ul></ul>Everyone shows up once .... who will be the one to show up each and every time? Dan Kennedy, Glazer-Kennedy Insider’s Circle “ ”
    13. 13. RM 2.0 Fundamentals: Getting Everyone on the Same Page <ul><li>Start with an Honest Assessment </li></ul><ul><li>How do you … </li></ul><ul><ul><li>CAPTURE leads? (multiple sources) </li></ul></ul><ul><ul><li>SCORE/ROUTE all leads from all sources? </li></ul></ul><ul><ul><li>QUALIFY prospects NOT ready to buy? (nurture) </li></ul></ul><ul><ul><li>MEASURE effectiveness of campaigns, strategy? </li></ul></ul>
    14. 14. RM 2.0 Fundamentals: Getting Everyone on the Same Page <ul><li>Start with an Honest Assessment </li></ul><ul><li>Sales and Marketing needs to agree on: </li></ul><ul><ul><li>Profile of the ideal or PERFECT client? </li></ul></ul><ul><ul><li>What is a SALES-READY lead? </li></ul></ul><ul><ul><li>How do you qualify/score/route YES/MAYBE/NO </li></ul></ul><ul><ul><li>Brian Carroll, “Lead Generation for the Complex Sale” </li></ul></ul>
    15. 16. RM 2.0 Fundamentals: Establish Lead Management Platform Telemarketing Online Marketing Direct Mail Web site Email Trade Shows Sources Database (CRM System) Targeted Communications & Qualification Lead Evaluation & Scoring – How sales ready? Sales External Partners/Sellers Automated Ongoing Communications Sales Ready (Yes) Not Sales Ready (Maybe) Lead Gen & Management Relationship Management Drive to Buy/Refer Build Relationships Influencers/Buyers Source: Forrester, Aberdeen Group, Sirius Decisions
    16. 17. RM 2.0 Fundamentals: Nurturing 95-97% that are “Not Sales Ready” <ul><li>Marketing’s goal is to nurture “hand-raisers” into level 3/4 leads vs premature “dumping” to Sales </li></ul><ul><ul><li>HOW >>> Nurture with well thought out “theme-based” content </li></ul></ul><ul><li>Lead scoring should look at: </li></ul><ul><ul><li>Demographics – title, type company, contact profile </li></ul></ul><ul><ul><li>Activity/Behavior – # of meaningful interactions </li></ul></ul><ul><ul><li>BANT – budget, authority, need timeline </li></ul></ul>The initial contact with prospect designed to create interest 1 st Interaction Subsequent interactions usually designed for those in early stages of buying cycle (education) 3 rd X Interaction Interaction designed to assess future viability of prospect and determine where they are in buying cycle 2 nd Interaction
    17. 18. RM 2.0 Fundamentals: Recommended Campaign Strategy <ul><li>Establish “Welcome Campaign” for Everyone: </li></ul><ul><ul><li>When someone hits the web site or opts-in for newsletter or downloads content as part of specific campaign (or other) </li></ul></ul><ul><ul><li>Qualify interest (preferences) </li></ul></ul><ul><ul><li>Kicks off drip campaign of selected articles tied into TL below </li></ul></ul><ul><li>Thought Leadership – runs 2-4 times/yr </li></ul><ul><ul><li>Develop TL themes </li></ul></ul><ul><ul><ul><li>Decide if it is problem based or role based (rep vs mgr) or combo of both </li></ul></ul></ul><ul><ul><li>Develop campaign cycle that includes: </li></ul></ul><ul><ul><ul><li>Theme articles, whitepapers (NA and 3rd parties) </li></ul></ul></ul><ul><ul><ul><li>Webinar – usually 5-6 weeks after sending theme white paper/article </li></ul></ul></ul><ul><ul><ul><ul><li>Record to add to resource center and to follow up to all who missed to day/time of day issue </li></ul></ul></ul></ul><ul><ul><ul><li>Drip campaign of related articles, case studies that support theme </li></ul></ul></ul>
    18. 19. RM 2.0 Fundamentals: Recommended Campaign Strategy <ul><li>Professional Network – quarterly </li></ul><ul><ul><li>Continue to update network on events and ask for names </li></ul></ul><ul><li>Newsletter – quarterly </li></ul><ul><ul><li>Aggregates various parts of other campaigns for those that missed individual promotional email for whitepaper/webinar </li></ul></ul><ul><li>Direct mail – </li></ul><ul><ul><li>Develop postcard for individual promotions of whitepaper, webinar, speaking events to those who tend to ignor emails </li></ul></ul><ul><ul><li>Use for nurturing those that opted-in, but not ready to buy for special promotions </li></ul></ul>
    19. 20. <ul><li>STRATEGY: Capitalize on thought leader position/references </li></ul><ul><ul><li>Challenge: become perceived leader through effective lead generation and qualification of sales-ready opportunities </li></ul></ul><ul><li>SOLUTION: Develop automated Thought leadership campaigns </li></ul><ul><ul><li>Theme-based landing pages, content-rich webcasts, segmented follow up </li></ul></ul><ul><li>RESULTS : Over 300% growth in qualified suspects </li></ul><ul><ul><li>Suspect quantity & quality - from 4360 to >20,000 </li></ul></ul><ul><ul><li>Each Campaign produced 500-1500 new suspects </li></ul></ul><ul><ul><li>Now run webinars (w/o analysts) – over 850 attendees </li></ul></ul><ul><li>WHAT’S NEXT?? </li></ul>
    20. 21. Summary and Take Aways What does Relationship Marketing Mean? <ul><li>Innovation starts with you </li></ul><ul><ul><li>Marketing needs to think/communicate like sales people </li></ul></ul><ul><ul><li>Focus on fundamentals before you start </li></ul></ul><ul><ul><li>Get on same page and stay there </li></ul></ul><ul><li>Establish platform that fosters community </li></ul><ul><ul><li>Become a facilitator NOT a broadcaster/promoter </li></ul></ul><ul><ul><li>Start practicing “Community Marketing” </li></ul></ul><ul><li>Test and measure everything ,,, </li></ul><ul><ul><li>then test again and again and again and again … </li></ul></ul><ul><li>Treat your prospects with respect </li></ul>
    21. 22. Thank you … Any questions?? <ul><li>Graphics & Design by </li></ul>Henry Bruce The Rock Annand Group [email_address] 781-710-2484