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B2B State of Enterprise Demand Generation Report


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Do you understand what Demand Generation actually is? Are you suffering with the same issues as the rest of the industry? Perhaps you’re struggling to get the most of your Demand Generation activity? Well you’re not alone. This report created in partnership with Marketo and B2B Marketing provides the latest insights and analysis on the biggest issues in the industry in 2014 and is designed specifically to help you identify your own weaknesses.

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B2B State of Enterprise Demand Generation Report

  1. 1. State of Enterprise B2B Demand Generation A B2B focused survey in collaboration with Marketo and B2B Marketing
  2. 2. 2 State of Enterprise B2B Demand Generation What is Demand Generation and why care? . 3 What does Demand Generation mean to you?. 4 Priorities . 5 Current state of adoption. 6 The role of technology. 9 Technology best practices. 11 Sales and marketing alignment. 12 Sales and marketing best practices. 15 Skills (and gaps) . 17 Skills best practices. 20 Measurement, reporting and ROI . 21 Measurement best practices . 23 The future?. 24 Closing summary. 26 Contents In partnership with: Share
  3. 3. 3 State of Enterprise B2B Demand Generation The world of B2B marketing is in a constant state of flux, transition is the name of the game, and keeping up can be incredibly difficult…and expensive. Due to its constantly developing nature Demand Generation is an extremely difficult term to define. Its ambiguity often leaves it open to interpretation and this is regularly to the detriment of wider understanding as different parties come to different conclusions on its meaning. When broken down to its most basic level, Demand Generation is considered to involve the application of targeted marketing programs to drive awareness and nurture prospects to a buyer ready state. The power of Demand Generation activity remains understated. In the 21st century where the consumer has all of the information and all of the power, it is an essential concept to pursue. More traditional interruptive methods of communication have become redundant and outdated in the modern marketing environment. What is Demand Generation and why care? Share
  4. 4. 4 State of Enterprise B2B Demand Generation What does Demand Generation mean to you? Despite our best estimates we are often left guessing where the next transition will occur. It is this very inability to prepare that leaves us vulnerable and even scared of change. This report should help you not only gain some perspective on fellow companies but also appreciate the wider B2B marketing environment. Using data returned from our B2B focused survey in collaboration with B2B Marketing and Marketo, we have summarised the results and created an easy to read document focused upon the trends and general direction of the industry. Supporting sales 4% 22% Lead generation 52% Marketing from first touch point to beyond sale 22% Driving revenue growth 0% 10% 20% 30% 40% 50% 60% 70% “ Only 4% of respondents are happy with the performance of their Demand Generation activity.” Share
  5. 5. 5 State of Enterprise B2B Demand Generation Priorities The industries’ priorities are pretty clear; with over 50% of respondents identifying Demand/Lead Generation as the most important element of the organisation’s marketing function, the importance of the nurturing process can no longer be understated. The process of creating and nurturing leads has now become of paramount importance and its value in modern B2B marketing is finally being recognised. Number 1 priority for organisation’s marketing function Demand/lead Generation Brand awareness Customer retention Pipeline/revenue generation “ 50% of respondents identified Demand/Lead Generation as the most important element of the organisation’s marketing function.” Check out our Demand Generation phrase book for a better appreciation of the key B2B terms. Click here Share
  6. 6. 6 State of Enterprise B2B Demand Generation With so many activities encompassed in Demand Generation, it can be difficult to identify which are worth prioritising. With that being said, some justifiably take precedent over others. Email marketing in particular dominated the activity for the majority of those sampled, with low cost entry and the opportunity to send valuable messages to a highly targeted audience; it’s easy to see why. The decision to use email marketing, website activity and content marketing over alternatives makes sense when based upon investment in correlation with delivery. ROI is unsurprisingly the number one influencer. In the 21st century results and data drive marketers more than any other factor. With the website and content marketing coming in 2nd and 3rd it’s becoming increasingly apparent that inbound marketing techniques are now a prominent element of Demand Generation, relegating the likes of more traditional marketing methods down the list. Interestingly few identify the typical powerhouse of social marketing as a key contributor, the effective application of such a flexible tool still remains relatively unfound in the realm of B2B. Current state of adoption Which three marketing activities do you use the most in your Demand Generation activity? Email Marketing 81% Website 43% Content Marketing 38% Search Marketing 38% Social Marketing Nurture Campaigns 38% Trade-Shows 38% Direct Mail 19% Virtual Events (webinars) 14% Telemarketing 10% Social Marketing 5% Online Advertising (display/banner) 5% Other 5% PR 0% Print Advertising 0% Share
  7. 7. 7 State of Enterprise B2B Demand Generation Which two of these are the most challenging elements of your Demand Generation activities? Lack of budget Lack of time Lack of understanding about the process of Demand Generation Lack of sales alignment Skills gap Lack of support from senior management No challenges Other Best Practices n The best performing organisations have a clear relationship between tactics used and strongest performing tactics as they understand ROI n Implement a regular review process into the campaign timeline to keep up-to-date on measurement and refinement opportunities “ Lack of budget and time are biggest challenges for companies running Demand Generation activities” Share
  8. 8. n Alignment n Best Practices 1 2 8 State of Enterprise B2B Demand Generation This report will cover four key areas of Demand Generation; each of these has been identified as a major element of modern marketing activity and plays an integral role in efficient operations. 1. Technology and IT n Technological Infiltration n Marketing Automation n Best Practices 3. Staff and Skills n Skill Gaps n Best Practices 2. Sales and Marketing 4. Reporting and ROI n Measurement n Best Practices 3 4 Share
  9. 9. 9 State of Enterprise B2B Demand Generation The Growth of Technology Technology has become an integral part of modern B2B marketing. No longer is it merely an opportunity, effective 21st B2B operations now heavily rely on the capabilities of these developing platforms. Despite the newly found opportunities technological progression offers, the typical issues still rear their ugly head, a lack of time and budget to fulfil objectives are still major concerns. Marketing Automation Platforms Lead the Way Marketing Automation Platforms (MAPs) are an excellent example of the technological progress the B2B industry has made towards greater efficiency and lead generation capabilities. 63% of our respondents claimed to have a MAP, with just over a third of those not planning to implement one within the next year. This was still below the industry average (73%) reported by Ragalix in 2014. The Role of Technology 63% of our respondents claimed to have a MAP, below the industry average of 73%. You may also like: Marketing Automation Selection Cheatsheet Share
  10. 10. 10 State of Enterprise B2B Demand Generation Unsurprisingly CRM claimed the top spot for the most used technology solution in Demand Generation activity. This is to be expected in the 21st century where customer organisation and management are integral in the nurturing process. Over half of respondents signalled intent to invest in new technologies within the next 12 months. There is an evident focus in particular on marketing automation and CRM systems with 44% reporting implementation of either technology in the near future. What technology solutions support your Demand Generation activities? Which of the following technologies do you plan to implement in the coming 12 months? Email marketing software Marketing automation CRM Web analytics None Other (please specify) 8% 33% 21% 13% 42% 17% Email marketing software Marketing automation CRM Web analytics None Other (please specify) 67% 63% 83% 71% 0% 8% Share
  11. 11. 11 State of Enterprise B2B Demand Generation Technology best practices Simplification is often identified as one of the key benefits of technological solutions. By automating standard process and reducing the amount of human input required both costs and time required can be reduced. Technological solutions can be incredibly complex, it is often their ability to manage complicated processes that makes them so valuable. As a result of this complexity testing is absolutely crucial, with so many factors in play you must ensure everything is fully operational before putting it into action. “ Enterprises see simplification as a strategic ‘Must’ over the coming years.” Best Practices n Simplification – With more systems, more platforms and more channels, the best performing organisations prioritise simplifying activity. n Technology should enable you to meet objectives – not be the focus of them. n Don’t make assumptions, test everything beforeimplementation. Quality assurance is essential. Share
  12. 12. 12 State of Enterprise B2B Demand Generation Sales and marketing alignment Unsurprisingly, 100% of our respondents claimed there was a desire for greater alignment between their sales and marketing departments. Alignment is understandably a massive priority in the industry, the value of such an intertwined relationship is clearly recognised, however the action required encouraging such development seems less certain. 40% of those questioned did not have a common definition of what constitutes as a lead. Such miscommunication has the potential to be extremely problematic as different teams work towards different goals and operational expectations. A common understanding between both sales and marketing is essential for a smooth prospect transition process between teams. YES Don’t know NO Is there a common understanding between sales and marketing on what a lead is? “ No respondents said they had full alignment between sales and marketing.” Share
  13. 13. 13 State of Enterprise B2B Demand Generation 0% 10% 20% 30% 40% 50% 5 4 3 2 1 No alignment = 1 Full alignment = 5 Achieving sales and marketing alignment is absolutely essential if your Demand Generation activity is to fulfil its full potential. Unfortunately this is not an easy objective to achieve. Just 20% of our respondents claimed to have already achieved alignment. Surprisingly more than 50% still lack shared KPIs despite acknowledging that consistency across teams would improve alignment. To assist in the alignment process over 50% use sales enablement toolkits and asset libraries. These utilities can be particularly useful for sales to reinforce their pitch in the closing stages. “ 50% of organisations say shared KPIs between sales and marketing would help alignment.” Sales and Marketing Alignment Share
  14. 14. 14 State of Enterprise B2B Demand Generation Which, if any, of the following do you have in place to encourage greater alignment with sales? Sales and marketing alignment is often very difficult to achieve. There are usually multiple obstacles preventing progress and these can be difficult to overcome. 40% of respondents claimed a lack of time and sales credibility ranked as the greatest barriers to convergence. On top of that a lack of KPIs was also cited as a major issue. 60% 50% 40% 30% 20% 10% 0% Asset library Agreed methodology for ranking/prioritising leads Structured selling process Sales enablement initiatives Other (please specify) Prospect data analysis reports Service Level Agreement (SLA) Shared KPI/reporting 58% 21% 50% 21% 33% 38% 54% 4% Share
  15. 15. 15 State of Enterprise B2B Demand Generation Sales and marketing best practices It’s clear for the most part there is no preferential method of passing leads to sales. The results show an inconclusive split between the three primary methods. This showcases the diversity of the relationships between marketing and sales within different organisations. 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Leads ranked so sales can be prioritised by sales team All leads passed to sales, regardless of quality Only win-ready leads are passed to sales Other (please specifiy) 29% 29% 32% 10% How are leads passed over to sales in your organisation? Share
  16. 16. 16 State of Enterprise B2B Demand Generation Marketing and sales would be better aligned if: We developed campaigns jointly Communication was improved We trusted each other Expectations were realistic Other (please specify) The evenly distributed results in the table emphasise that there is no silver bullet in sales and marketing alignment. Different companies will find alignment with different solutions. As this is purely a working relationship issue, it cannot be categorically solved with a single resolution. Best Practices n Creating a Service Level Agreement n Common/Shared KPIs n Communication is the key to success, both sales and marketing teams must show understanding and appreciation for the other’s input and role. You may also like Sales Level Agreement Cheatsheet Create Love Between Sales and Marketing Guide Share
  17. 17. 17 State of Enterprise B2B Demand Generation Skills (and gaps) In regards to skills gaps the results were conclusive, a massive 98% of respondents claimed to suffer from a skill gap in at least one key area within the business. With a majority of teams consisting of less than 10 people it’s unsurprising to see significant skill gaps emerging, after all, your employees can only do so much. Our research illuminated two key skills in particular that the consensus agrees appear to be lacking in the B2B market, content creation and data analysis. 30+ 11 – 20 Less than 5 21 – 30 5 – 10 How many members are there in your marketing team? 50% 40% 30% 20% 10% 0% 5% 18% 9% 41% 27% “ 98% of respondents claimed to suffer from a skill gap in at least one key area within the business.” Share
  18. 18. 18 State of Enterprise B2B Demand Generation 30% 25% 20% 15% 10% 5% 0% Data analysis Creativity Buyer/market understanding Other (Please specify) Technical capabilities Content creation We have no skills gap 27% 17% 10% 27% 12% 2% 5% Which of the following skills gaps are most pronounced in your marketing team? Key Points n Over 50% said lack of skills in data analysis n Over 50% said lack of skills in content creation n Only 2% have no skills gap n Under 5% state buyer/market understanding “Only 2% have no skills gap at all!” Share
  19. 19. 19 State of Enterprise B2B Demand Generation With an increased emphasis on quality content and the importance of its role in Search Engine Results Pages (SERPS), it’s not unsurprising to see companies identifying content creation as an area of weakness. Google’s increasingly stringent focus on quality has made poor quality irrelevant copy almost obsolete and as such the pressure is greater than ever to produce valuable and worthwhile content. Data analysis skills are becoming increasingly important in the modern marketing environment with the prevalence and rise of big data. It’s more important than ever that businesses have the personnel to cope with such a powerful and influential entity. Every decision made in the modern market needs justification and it is these data analysis professionals who provide you with the evidence you require to reinforce your choices. “ Over 50% of marketers believe they have a data analysis and content creation skill gap in their team.” Share
  20. 20. 20 State of Enterprise B2B Demand Generation Skills best practices The business environment develops at breakneck speed and as such it’s essential you appreciate the evolving skill sets required in the modern marketing workplace. Unsurprisingly skills gaps are becoming particularly problematic in companies with small teams and a low employee turnover as they lack the flexibility to adapt to new market conditions. When the opportunity arises staff turnover should be identified as an opportunity to diversify the skill set of your workforce and maximise your flexibility. More often than not if an activity is too obscure or challenging for your team to realistically manage, it may be necessary to outsource and call in specialists to ensure standards are maintained. “ Staff turnover should be identified as an opportunity to diversify the skill set of your workforce and maximise your flexibility.” Best Practices n Look to the future, ensure you appreciate the skills that will be integral to maintaining your business in the years to come n See staff turnover as an opportunity to minimise skill gaps and reduce the knowledge deficit n Identify activities that can be outsourced to add value. Understand what makes sense to do internally and externally You may also like Persona Development Cheatsheet Buyer Journey Cheatsheet Share
  21. 21. 21 State of Enterprise B2B Demand Generation Measurement, reporting and ROI Over 66% of those questioned stated they can measure marketing’s impact on demand. It’s clear that metrics are more accurate and provide more actionable data than ever before. We can now see and measure effectively the correlation between marketing activity and its associated impacts. This unsurprisingly has become a priority for many in the B2B sector as it allows those involved to determine what is, and isn’t working. Sales qualified leads 50% Value of opportunity pipeline Web traffic New names acquired Marketing qualified leads Closed revenue value 46% 42% 25% 21% 21% 21% Content consumption Other (specified) Appointments set Volume deals/sales closed Form completion Clicks and opens Enquiries Volume of opportunities created 29% 13% 0% 0% 8% 8% 4% “ Only 42% measure with closed revenue won.” Share
  22. 22. 22 State of Enterprise B2B Demand Generation Metric Priority? Unsurprisingly both Marketing Qualified Leads (MQL) and Sales Qualified Leads (SQL) came out on top when it came to identifying the most valuable Demand Generation metrics. In direct contrast, only 8% recognised the consumption of content as a high value metric, clearly the lack of commitment such a metric entails means that the resultant data is often less than worthwhile. The most effective and useful metrics provide solid evidence to show prospects are making progress in the buyer journey. They highlight not only where the lead sits but also the journey they have taken to get there. Lacking Collaboration Less than 50% of respondents claimed internal departments had a universal definition for what constitutes as a SQL. This is majorly problematic as a communication disconnect at this stage of the nurturing process is likely to lead to unnecessary tension between both marketing and sales departments. It is essential both departments have a mutual understanding to ensure only those leads with genuine potential make it through to sales. Both Marketing Qualified Leads (MQL) and Sales Qualified Leads (SQL) came out on top when identifying the most highly valued metrics for Demand Generation. Share
  23. 23. 23 State of Enterprise B2B Demand Generation Measurement best practices Data can be both our friend and our enemy. With the power of CRM systems and Google Analytics at our fingertips, it’s easy to get lost in the mountains of data up for grabs. Of course the ultimate question you need to ask yourself is, what does this data do for me? Reporting on data for the sake of it is a pointless exercise. Just because there happens to be new data available does not necessarily mean it is useful. Only items that are considered genuinely actionable are worth reporting. “ Marketers need to remember to feed the pig, not just measure it!” Best Practices n Only focus upon the data that actually offers insightful information. Just because you can measure everything doesn’t mean you should n Standardise dashboards n Only report on items that are actionable Share
  24. 24. 24 State of Enterprise B2B Demand Generation Showing what marketing activities drive sales The future? Looking to the future, respondents expect improved revenue-touch attribution to be the most efficient indicator in driving better marketing performance. Lead scoring and qualification Implementing new systems Time Data quality Digital technology expertise Sales and marketing alignment Creating engaging content Digital technology expertise Implementing inbound marketing ROI Refreshing digital campaigns Understanding the buyer and market Improving campaign conversion Resources Lead follow up Building lead nurturing programs Lead scoring and qualification Data quality Time Implementing new systems Lead follow up Implementing new systems Showing what marketing activities drive sales Implementing inbound marketing Understanding the buyer and market Refreshing digital campaigns Creating engaging content Share
  25. 25. “ Despite its value, Demand Generation is not a silver bullet.” 29% 19% 25 State of Enterprise B2B Demand Generation B2B marketing is an extremely difficult field to operate within. Maintaining competitive advantage can be exceptionally difficult and unless you are prepared for the unknown, you’ll never know if you’re walking down the right path until it’s too late. While the industries’ integration of marketing technologies is promising and reflects the flexibility now exhibited by modern developments, there still are companies unprepared to adapt to the digital environment. It is these businesses that will suffer as the B2B marketing process becomes increasingly automated and content focused. The likes of Marketing Automation Platforms (MAP) and Customer Relationship Management systems (CRM) are no longer an option but are becoming mandatory parts of the modern B2B nurture process. The value of Demand Generation cannot be understated, with the proper application it can assist and drive better value on a more regular basis. Despite its value, Demand Generation is not a silver bullet, while it may be effective there are a wide range of growing challenges. Closing Summary What delivers better marketing value? Marketing technology capability Understanding of our buyers Alignment between sales and marketing Nurture streams 19% 33% Share
  26. 26. 26 State of Enterprise B2B Demand Generation 60% 50% 40% 30% 20% 10% 0% Guaranteed longer term budgets A combined sales and marketing force All encompassing marketing technologies Accurate revenue touch attribution Which of the following would allow you to drive better marketing performance? Surprisingly none of the participants claimed guaranteed longer term budgets would actively encourage better marketing performance. “ Over 50% of respondents said they would be able to provide better marketing value if accurate revenue-touch attribution could be achieved.” 20% 27% 0% 53% Share
  27. 27. You may also enjoy reading: 5 Ways Marketing Automation helps Sales Enablement Buyer Journey Cheatsheet Download > Download > Download > About Ledger Bennett DGA We are a B2B Demand Generation agency that uses sales and marketing know-how to help customers increase revenue by deploying Inbound Marketing, Content Marketing and Marketing Automation strategies. Our highly focused Demand Generation programmes drive our customers’ business performance, helping them to: n Generate more opportunity n Convert that opportunity into sales n Retain customers and grow their value Using more measurable and cost effective techniques than traditional full service marketing agencies we are able to maximise business revenue in the modern world where the internet has fundamentally changed the behaviour of the buyer. Telephone: +44 (0)8458 383883 Email: Milton Keynes: Ledger Bennett DGA Tungsten House, Warren Road Little Horwood, Milton Keynes MK17 0NR London: Ledger Bennett DGA 1st Floor Centric House 390-391 Strand, London WC2R 0LT Your Wish List The Perfect World of Marketing and Sales Download > Resource Centre Share