Elements of a Modern Demand Generation Plan by Adam Needles]
The Key Elements of aSuccessful, ModernDemand Generation Plan02/24/2011Adam B. NeedlesVP, Demand Generation StrategyLeft Brain DGATwitter: @abneedles
About my company• Help enterprise companies design and execute successful, modern demand generation programs.• Combine: – Process: Leverage The Left Brain Model – Content: Centered around Buyer 2.0 – Technology: Powered by marketing automation• Deliver strategy, production, analytics and optimization.
Presentation agenda• ‘Real state’ of modern demand generation• Guiding principles• Getting focused• Building it out• Optimizing demand generation• Takeaway points
‘Real state’ of moderndemand generation … Twi$er: @abneedles
Our rates of conversion?Source: SiriusDecisions, “Regional Diﬀerences in the Demand Waterfall”
Our use of marketing automation? Among adopters of marketing automation technology, “fewer than 10% of them are deploying those tools to address programs later in the buying cycle.”Source: Heuer, Email Interview re: SiriusDecisions Sea Change Data
A ‘digital divide’? Best-in-class nurturing: • Double the bid-win-ratio on nurtured leads • Nurtured leads delivered 47% higher average order valuesSource: Aberdeen Group, "Lead Nurturing: The Secret to Successful Lead GeneraJon"
Challenge #1We implement technology to solve our B2Bdemand generation problems, but we fail tosubstantially update our underlyingprocesses and roles; thus, we findtechnology by itself has not really solved ourproblems.
US marketing technology adoption • CRM adoption has grown from 53% in 2003 to 75% in 2010. (CSO Insights) • Marketing automation adoption is 7-10%, projected to rise to 30% by 2015. (SiriusDecisions)Sources: SiriusDecisions Summit 2010; CRM Magazine, "CRM: Then and Now"
UK enterprise CRM adoption % of UK Enterprises Using CRM for MarkeEng 60.0% 51.8% 50.0% 46.8% 46.2% 45.8% 39.6% 40.0% 30.0% 20.0% 10.0% 0.0% 2006 2007 2008 (iniJal) 2008 (rev) 2009 Source: UK Oﬃce for NaJonal StaJsJcs, “Use of InformaJon and CommunicaJon Technology (ICT) and e-‐commerce acJvity by UK businesses”
Starting the process, but ….Source: Bulldog SoluJons/Frost & Sullivan, "The ExecuJve Benchmark Assessment"
Not following through …Source: Bulldog SoluJons/Frost & Sullivan, "The ExecuJve Benchmark Assessment"
People + process + contentSource: Bulldog SoluJons/Frost & Sullivan, "The ExecuJve Benchmark Assessment"
Challenge #2We still struggle when it comes to linking ourB2B marketing tactics to revenue outcomes;thus, we have a hard time proving (andbetter targeting) the specific impact ofinvestments in content offers anddemand generation programs.
Lead source? Only ~1/3 of B2B marketers attribute multiple buyer touches: • 21% split credit across multiple touchpoints • 14% use the more reliable techniques of market testing or modeling to isolate the impact of specific tacticsSource: Lenskold Group, “2010 Lead GeneraJon MarkeJng ROI Study”
Marketing analytics? “Only 50% of marketers in our survey said they had analytics programs, and of these, few were focused on predicting behavior; most were simply reporting past behavior. Even rarer is the ability to carry those analytics all the way through to a sale.”Source: Chris Koch, “We Need an App for That”
Where to start? “[S]o many marketing organizations are struggling with determining what to track and how to track it. As a result, many end up measuring with no clear purpose in mind.”Source: The Annuitas Group, “Metrics – Tying It All Together”
Challenge #3We too often don’t start with our targetedbuyer when it comes to developing B2Bdemand generation programs, nor do werationalize the content and pacing of ournurturing against the buyer’s decision-making process.
Go-to-market strategy? Only one in three B2B marketing and sales organizations today have crafted their go-to-market strategies specifically based on their target market.Source: SiriusDecisions Summit 2010
Relevant messaging? “86% of the unique benefits touted by vendors were not perceived as unique or having enough impact to create preference.”Source: Tim Riesterer, "Three B2B Value-‐ProposiJon Rules That Create Preference, Not Just Parity"
Guiding principles …• Educating buyers, not merely ‘selling’ to them• Inbound to outbound integration, tracking• Iterative content + progressive profiling• Buyer pull vs. mass push• Tight lead management integration• Closing the loop between revenue outcomes + content-based engagement
Operational, process mindset• Revenue goals• Demand stages, linkages, flow• Sales Ready Lead (SRL) definition• SRL volume needed to meet sales goals• Sales + marketing roles• Linkage between content + revenue
Lead quality is key to sales. “[S]ales reps that focused on fewer, more winnable deals tend to do better. Flooding the rep with low quality/high quantity leads only increases their inefficiencies … .”Source: SiriusDecisions, “The Perfect Pipeline: When Less Is More”
Example: Reverse funnel math (1/2) Source: Lep Brain DGA
Example: Reverse funnel math (2/2) Source: Lep Brain DGA
Catalyst for B2B buying … 72% of the time ‘fit for a specific need at a specific time’ is the number one reason for a B2B purchase today.Source: Forrester MarkeJng Forum 2010 presentaJon
Inbound is more critical than ever “[C]urrently, more than half of all new inquiries are generated through the Web; we believe that by 2015, this number will rise to nearly 75%. Inbound marketing [is not] new in theory, but ... marketers must plan for it ... .”Source: SiriusDecisions, “Inbound MarkeJng, the Sirius Way”
Example: Connecting the dots Growing Revenue Customer Focus MarkeEng & Sales Agility Key XYZ Basis for Increasing ProducEvity Business + Blogging + ROI = Technology TweeEng + Proﬁts QuesEons CommenEng Budget Management Compliance IT IntegraEon Reducing Costs IT Resourcing OperaEng Costs Identify the Solution Frame the Issue Categorize Business Issue Source: Lep Brain DGA
B2B demand-gen is a numbers game • Only 2-5% of raw inquiries coming into the top of the B2B marketing and sales ‘funnel’ convert to sales. • 25-30% of B2B marketing databases have bad or incomplete records.Source: SiriusDecisions Summit 2010
The nurturing loop MarkeEng Sales AutomaEon to IniEal Human Sales Nurturing CRM Sync Contact Follow-‐up + CRM Email Sent IniEal Buyer Collect Buyer Follow-‐up / Interest Insights + Route Content Oﬀer MarkeEng Nurturing Web Form Scoring + Data CollecEon SegmentaEon + + RouEng MarkeEng AutomaEon Add. Explicit + Behavioral Data CollecEon More Buyer Interest + AcEon Inbound MarkeEng Outbound MarkeEng Source: Lep Brain DGA
Nurturing layers PROSPs RESPs QRs SRLs Buying Cycle Content BCC1 BCC2 BCC3 BCC4 PromoEonal Content PC1 PC2 PC3 PC4 Drip Content DC DC DC DC Source: Lep Brain DGA
Example: Scoring model Scoring Model +160 pts (210 total) Category Type Response Pts Response Pts Response Pts Response Pts Qualiﬁed Respondents? BCC3 Industry Demographic Target industry 20 Non-‐target industry 10 Size of company Demographic SMB range 1 40 SMB range 2 30 Enterprise 20 Viewed demo Behavioral Yes 15 Length of Jme viewed demo Behavioral Threshold 15 Below 10 BCC4 Key pain points Demographic Tight ﬁt 40 Loose ﬁt 30 No ﬁt 0 Went to decision tool Behavioral Yes 15 Number of quesJons on decision tool Behavioral Threshold 15 Below 5 PC3 (wait 1 day) Opportunity to complete core BCC3/4 data Download analyst tool Behavioral Yes 30 PC4 (wait 7 days) Opportunity to complete core BCC3/4 data Click on other resources Behavioral Each 20 Note: Need score of 200 to be a Qualiﬁed Respondent. If not, will get sent to promoFonal tracks and/or drip track unFl you meet the threshold. Source: Lep Brain DGA
Building your program … Engagement AcquisiEon Nurturing Content markeEng programs Lead management processes Technology infrastructure Source: Lep Brain DGA
Takeaway points• Start with the buyer; put him/her at the center• Apply an operations, process mindset• Shift from mass/push to one-to-one/pull• Successful demand generation is – Organic, always-on, 24/7 – Buyer-driven – A living, breathing ‘system’ that must be managed – Optimized against revenue performance
Thank You The Key Elements of a Successful, Modern Demand Generation Plan Adam B. Needles VP, Demand Generation Strategy Left Brain DGA firstname.lastname@example.org (617) 413-6087 @abneedles www.linkedin.com/in/abnedles