Best practices in B2B marketing

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Best practices in B2B marketing

  1. 1. Best practices in B2B marketing Canadian Marketing Association Jeff Lowe April 29, 2009
  2. 2. Is B2B marketing becoming obsolete? “ B2B marketers can no longer afford to emphasize lead volume over lead quality.” “ Marketers Need a More Systematic Approach to demand Generation” “ B2B Marketers Fail the Community Marketing Test” “ Rapid Growth of Lead Databases Posing New Challenges For BtoB Marketers” “ B2B Marketers Struggling to Integrate Web 2.0 Strategies Into Marketing Mix” “ How to avoid B2B Marketing Obsolescence: Community Marketing Transforms the Marketing Role” “ B-to-B Marketers Must Sharpen Measurement Tools” “ B2B marketing needs a makeover – NOW!”
  3. 3. B2B marketers face different challenges than B2C <ul><li>B2B buying requires complex orchestration of activities between multiple parties </li></ul><ul><li>B2B addressable market is a few thousand at best </li></ul><ul><li>Therefore, success is less about generating demand than fostering relationships </li></ul>Buying process characteristics B2C B2B Decision makers Individual Many Decision duration Short Long Purchase approval None Multilevel Product cost Low to medium High Pricing style Retail Negotiated, contractual Consideration Low to medium High Channels Retail, dealers Distributors, service providers. VARs Predominant Web usage Price compare/ purchase Gather information/ evaluate Loyalty Short term Longer term
  4. 4. Five marketing best practices for B2B marketers 5 Measurement : Make quantitative measurement the foundation to accountability and closed-loop marketing. 4 Integration: Use an integrated approach to marketing mix planning that leverages the unique strengths of traditional, interactive and social media. 3 Loyalty : Quantify customer lifetime value and market to customers to advance them from retained, to satisfied, to loyal, to advocates. 2 Demand management: Move from generating demand to actually managing it . 1 New online media: Enhance relationships with customers through social media strategies and online community marketing Five best practices
  5. 5. Five marketing best practices for B2B marketers Five best practices 1 New online media : Enhance relationships with customers through social media strategies and online community marketing 2 Demand management : Move from generating demand to actually managing it. 3 Loyalty : Quantify customer lifetime value and market to customers to advance them from retained, to satisfied, to loyal, to advocates. 4 Integration : Use an integrated approach to marketing mix planning that leverages the unique strengths of traditional, interactive and social media. 5 Measurement : Make quantitative measurement the foundation to accountability and closed-loop marketing.
  6. 6. Prospects & decision makers rely on each other & the Web <ul><li>“ When researching telecom products, how important are these media for informing your purchase decisions?” </li></ul>Base : 2187 telecom and network decision makers Source : Enterprise And SMB Networks And Telecom. Survey, North America And Europe, Q1 2008 Media/information source Highly important Peer/WOM 36% Vendor Web Site 34% Trade/ Industry magazine Web Site 34% Consultants/VARs/SIs 21% Trade magazines/publications 20% Forums/communities 20% Trade shows and conferences 19% Blogs 15% Webinars or online events 14% Web 2.0: video, podcasts, Internet apps, RSS, etc. 14%
  7. 7. Social marketing in B2B: Where to start?
  8. 8. Start by monitoring your share of voice Social media share of voice in the last 30 days Total number of posts based on 2971 conversations TELUS
  9. 9. Example : A different kind of product launch
  10. 10. Social media : Watching the story go viral Jan 22: MobileSyrup.com posts teaser blog BlackBerryRocks.com reposts story with link to Noordinaryphone.com Jan 19: Agency invites MobileSyrup.com to the event via email 1
  11. 11. Social media : Watching the story go viral BerryReview.com TheBlackBerryBlog.com BlackBerryHomePage.com DejaTalk.com TopBlackBerryNews.com MBsTechNews.com IntoMobile.com Jan 27: MobileSyrup.com posts 8350i launch announcement with pricing 2
  12. 12. Social media : Watching the story go viral *With link to Noordinaryphone.com Mippin.com IntoMobile.com* NewMobileTech.com TopBlackBerryNews.com* CDMAandGSM.com TelephoneIssues.com NewTechDirectory.com MBsTechNews.com Mobeel.mobi CrackBerry.com* PhonesReview.co.uk BlackBerryNews.com Jan 28: MobileSyrup.com posts from launch party at AIM Autosport (including a link to Noordinaryphone.com) 3
  13. 13. Online editorial outreach : Momentum building Invitations distributed to bloggers and journalists Product and pricing announced to media Live blogging at media/blogger event held at AIM Autosport MobileSyrup.com posts teaser blog Engadget reviews BlackBerry Curve 8350i AIM Autosport video posted to YouTube
  14. 14. Results to date <ul><li>16 media & bloggers attended the event (target was 10) </li></ul><ul><li>113 blog posts </li></ul><ul><li>5 YouTube postings </li></ul><ul><li>7 online articles </li></ul><ul><li>1 forum posting </li></ul><ul><li>3 print article </li></ul><ul><li>24 Twitter posts </li></ul><ul><li>Over 10,000,000 impressions </li></ul><ul><li>~$2M advertising value for 5% of the cost </li></ul><ul><li>16 media & bloggers attended the event (target was 10) </li></ul><ul><li>113 blog posts </li></ul><ul><li>5 YouTube postings </li></ul><ul><li>7 online articles </li></ul><ul><li>1 forum posting </li></ul><ul><li>3 print article </li></ul><ul><li>24 Twitter posts </li></ul><ul><li>Over 10,000,000 impressions </li></ul><ul><li>~$2M advertising value for 5% of the cost </li></ul>“ Today was no ordinary day for the folks at TELUS. With the launch of the highly anticipated BlackBerry 8350i, also came a by invitation only launch event, hosted at a unusual venue. This has to be one of the very first events I have been to; that successfully demonstrated the importance of the technology that is being celebrated.” “ Here's a cool way to do up the launch event for a new smartphone... TELUS made official their BlackBerry Curve 8350i by holding the press event on location at AIM Autosport, a company (they race stuff fast stuff across North America) that takes advantage of the Push to Talk services offered by TELUS’ Mike system. Sweet. If you have 10 minutes to kill, it's a good vid to watch. Low key, but honest.”
  15. 15. Key takeaway #1 With new social and online media, start by monitoring what is being said about you versus leaping into tactics
  16. 16. Five marketing best practices for B2B marketers Five best practices 1 New online media : Enhance relationships with customers through social media strategies and online community marketing 2 Demand management : Move from generating demand to actually managing it. 3 Loyalty : Quantify customer lifetime value and market to customers to advance them from retained, to satisfied, to loyal, to advocates. 4 Integration : Use an integrated approach to marketing mix planning that leverages the unique strengths of traditional, interactive and social media. 5 Measurement : Make quantitative measurement the foundation to accountability and closed-loop marketing.
  17. 17. The case for demand management Source: October 4, 2006, “Improving B2B Lead Management” report, Forrester Research
  18. 18. Manage demand, don’t just generate it Source: Sirius Decisions The old way The new way HAND OFF TO SALES GENERATE LEADS CLOSED/WON BUSINESS? CLOSED/WON BUSINESS. <ul><li>Total number of handraisers </li></ul><ul><li>Unique metrics for current customers </li></ul><ul><li>Definition through sales/marketing SLA </li></ul><ul><li>Marketing deems ready for handoff </li></ul><ul><li>Basic qualification tenets met </li></ul><ul><li>Sales agrees to work leads </li></ul><ul><li>Opportunity identified </li></ul><ul><li>Now part of pipeline </li></ul><ul><li>Booked revenue </li></ul><ul><li>IDs topline contribution </li></ul>SALES QUALIFIED LEADS SALES ACCEPTED LEADS MARKETING QUALIFIED LEADS INQUIRIES
  19. 19. Results from a 2-week period <ul><li>So what? </li></ul><ul><li>132 leads scored by marketing/sales as qualified </li></ul><ul><li>85% of leads accepted by within 8 hours </li></ul><ul><li>297 marketing leads for nurturing – In past campaigns these would have been lost or passed over to sales as poor leads. </li></ul><ul><ul><li>Closed loop reporting : marketing automation interface with sales automation </li></ul></ul>Channel MQLs Unqualified Not Actioned Open Contacted SQL Total 132 5 26 44 42 15 Total Opt-ins (or Inquiries) Requires Nurturing MQL 429 297 132 6 10% Probability of closing 1 25% Probability of closing 2 50% Probability of closing 4 75% Probability of closing 2 Closed
  20. 20. Key takeaway #2 All leads are not created equal. Collaborate with Sales on how to score leads, nurture inquiries, and track closed business
  21. 21. Five marketing best practices for B2B marketers Five best practices 1 New online media : Enhance relationships with customers through social media strategies and online community marketing 2 Demand management : Move from generating demand to actually managing it. 3 Loyalty : Quantify customer lifetime value and market to customers to advance them from retained, to satisfied, to loyal, to advocates. 4 Integration : Use an integrated approach to marketing mix planning that leverages the unique strengths of traditional, interactive and social media. 5 Measurement : Make quantitative measurement the foundation to accountability and closed-loop marketing.
  22. 22. So what are the key drivers of loyalty in B2B? The Marketing Leadership Council explored more than 100 marketing practices and capabilities commonly believed to contribute to customer loyalty. SOURCE: Marketing Leadership Council Loyalty Survey, Marketing Leadership council research. SAMPLE ATTRIBUTES TESTED FOR IMPACT ON LOYALTY
  23. 23. The road to loyalty is through ‘Satisfaction Station’ The jury is still out. SELECT ATTRIBUTES THAT ARE NOT STATISTICALLY SIGNIFICANT SOURCE: Marketing Leadership Council Loyalty Survey, Marketing Leadership council research. <ul><li>Responding promptly to customer concerns </li></ul><ul><li>Comprehensiveness of customer problem resolution process </li></ul><ul><li>Single point of contact for customer problem resolution </li></ul><ul><li>Formal protocol for follow-up with disloyal customers </li></ul><ul><li>Executive-level loyalty sponsorship teams </li></ul><ul><li>Frequency of account manager turnover </li></ul><ul><li>Resources allocated to customer problem resolution </li></ul><ul><li>Set realistic (not inflated) customer expectations </li></ul>Attributes associated with eliminating dissatisfaction – while critical for satisfaction – seem to have no discernible impact on loyalty “ The road to Loyalty Town goes through Satisfaction Station” FIXING DISSATISFIERS IS TABLESTAKES .
  24. 24. Drivers of customer loyalty Drivers by percentage contribution to customer loyalty Percentage of contribution to customer loyalty Company and brand impact Product and service delivery Value-to- price ratio Purchase experience with Sales MLC1AUTL23 © 2009 Corporate Executive Board. All Rights Reserved. 52% 19% 9% 19% Long-term drivers of loyalty Short-term drivers of loyalty
  25. 25. MLC1AUTL23 © 2009 Corporate Executive Board. All Rights Reserved. Purchase experience loyalty drivers GREATEST DRIVERS OF LOYALTY WEAKEST DRIVERS OF LOYALTY GREATEST DRIVERS OF LOYALTY WEAKEST DRIVERS OF LOYALTY DECISION MAKERS END-USERS AND INFLUENCERS <ul><li>Helps me avoid potential land mines </li></ul><ul><li>Supplier has widespread support across my organization </li></ul><ul><li>Supplier is easy to buy from </li></ul><ul><li>Helps me navigate alternatives </li></ul><ul><li>Offers unique, valuable perspectives on the market </li></ul><ul><li>Educates me on new issues and outcomes </li></ul><ul><li>Provides ongoing advice or consultation </li></ul><ul><li>Helps me quantify financial value </li></ul><ul><li>Portrays a realistic picture of purchase costs and difficulties </li></ul><ul><li>Helps me improve my professional standing and meet KPIs </li></ul><ul><li>Advocates for me within the organization </li></ul><ul><li>Demonstrates a high level of professionalism </li></ul><ul><li>Helps me shorten the buying cycle </li></ul><ul><li>Matches communications to my preferences </li></ul><ul><li>Collaborates with other suppliers </li></ul><ul><li>Remains readily accessible </li></ul><ul><li>Excels in diagnosing our specific needs </li></ul><ul><li>Productively accelerates decision making </li></ul><ul><li>Supplier adjusts to our unique needs and specifications </li></ul>UNIVERSAL VALUE OF TEACHING While decision-makers and end-users differ significantly on many loyalty drivers, both value suppliers’ ability to teach.
  26. 26. Key takeaways <ul><li>In response to a challenging economic environment, Sales and Marketing have aligned around a focus on customer loyalty – because it is the fastest, most profitable path to growth. </li></ul><ul><li>In the short-term, the customers’ purchase experience is, by far, the largest single driver of customer loyalty – larger than product, brand, service, or even price. </li></ul><ul><li>The most effective method for differentiating the purchase experience is to deliver teaching interactions that reframe the way a customer assigns value to areas where the supplier outperforms its competitors. </li></ul><ul><li>Accordingly, leading organizations create effective teaching interactions by addressing the following three key questions: </li></ul><ul><li>What should I teach my customers? </li></ul><ul><li>How do I enable sales reps to teach? </li></ul><ul><li>How do I increase customer demand for teaching? </li></ul>1 2 3 4
  27. 27. Stages of insight and the TELUS teaching tools that align 8 TOOLS 6 TOOLS 5 TOOLS Stage 0 Strategic value high Time and effort required low Product selling Consultative selling Product pusher Researcher Benchmarker Strategic facilitator Stage 3 Stage 2 Stage 1 6 SOURCES OF INSIGHT <ul><li>Lead with products, solutions and benefits </li></ul>Q: When do I use this? A: All accounts Q: When do I use this? A: Top 10 to 20 accounts Q: When do I use this? A: Key “must win” deals
  28. 28. Key takeaway #3 The sales experience is the biggest driver of loyalty in B2B. Marketing’s role is to enable the sales force to teach.
  29. 29. Five marketing best practices for B2B marketers Five best practices 1 New online media : Enhance relationships with customers through social media strategies and online community marketing 2 Demand management : Move from generating demand to actually managing it. 3 Loyalty : Quantify customer lifetime value and market to customers to advance them from retained, to satisfied, to loyal, to advocates. 4 Integration : Use an integrated approach to marketing mix planning that leverages the unique strengths of traditional, interactive and social media. 5 Measurement : Make quantitative measurement the foundation to accountability and closed-loop marketing.
  30. 30. Integrated approach Emotion Experience Relationship Print/radio Sponsorships Online ads Advertising Events Sales interactions Email, direct mail Programs Web site Social marketing Online ads Web … because every buyer is a person. To truly engage that buyer, you need a coordinated mix. Individual tactics won’t achieve that. $ Tactics Customer buying cycle
  31. 31. Integrated approach Event Request Card Online Ads Social Media Conversations Radio Telemarketing Response Email/Direct Mail Response form Opt-in to Permission Based Email Database Print Awareness Interest Desire Action Leads to Sales Channels 5.6 million Impressions 142,000 Inquiries 3% conversion from impressions 5,000 Marketing Qualified Leads 3% conversion from Inquires Web Site Request forms Search Engine Click Thru’s 500 Sales 10% conversion rate from MQL Sponsorships SEM/SEO Email Direct Mail
  32. 32. Key takeaway #4 There is no “silver bullet” tactic. The key is to deploy tactics in an integrated and coordinated fashion.
  33. 33. Five marketing best practices for B2B marketers Five best practices 1 New online media : Enhance relationships with customers through social media strategies and online community marketing 2 Demand management : Move from generating demand to actually managing it. 3 Loyalty : Quantify customer lifetime value and market to customers to advance them from retained, to satisfied, to loyal, to advocates. 4 Integration : Use an integrated approach to marketing mix planning that leverages the unique strengths of traditional, interactive and social media. 5 Measurement : Make quantitative measurement the foundation to accountability and closed-loop marketing.
  34. 34. Marketing dashboard hierarchy Focus only on marketing investments strategically important to the company – then execute, measure and optimize. Marketing Goals & Objectives Organizational Strategy Marketing Activities
  35. 35. TELUS Business Solutions marketing dashboard 2009 Marketing Programs and Customer Communications Dashboard – January YTD Imperative Weight KPI 2008 Actual 2009 Target Imperative 1 Imperative 2 Imperative 3 Imperative 4
  36. 36. Key takeaway #5 When it comes to measurement, define marketing objectives together with non-marketing executives and in context of broader organizational objectives
  37. 37. Summary : Key takeaways <ul><li>Social media strategies . With new social and online media, start by monitoring what is being said about you versus leaping into tactics. </li></ul><ul><li>Demand management . All leads are not created equal. Collaborate with sales on how to score leads, nurture inquiries, and track closed business. </li></ul><ul><li>Loyalty . The sales experience is the biggest driver of Loyalty in B2B. Marketing’s role is to enable the sales force to teach. </li></ul><ul><li>Integration . There is no “silver bullet” tactic. The key is to deploy tactics in an integrated and coordinated fashion. </li></ul><ul><li>Measurement . When it comes to measurement, define marketing objectives together with non-marketing executives and in context of broader organizational objectives. </li></ul>

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