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Elements of a Modern Demand Generation Plan by Adam Needles]


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Elements of a Modern Demand Generation Plan by Adam Needles]

  1. 1. The Key Elements of aSuccessful, ModernDemand Generation Plan02/24/2011Adam B. NeedlesVP, Demand Generation StrategyLeft Brain DGATwitter: @abneedles
  2. 2. 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.
  3. 3. Presentation agenda•  ‘Real state’ of modern demand generation•  Guiding principles•  Getting focused•  Building it out•  Optimizing demand generation•  Takeaway points
  4. 4. ‘Real state’ of moderndemand generation … Twi$er:    @abneedles  
  5. 5. Challenged.
  6. 6. Our rates of conversion?Source:    SiriusDecisions,  “Regional  Differences  in  the  Demand  Waterfall”  
  7. 7. 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  
  8. 8. 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"  
  9. 9. What about the other 90%?
  10. 10. Challenged.
  11. 11. 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.
  12. 12. 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"  
  13. 13. 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”  
  14. 14. A study of marketing automationadopters …
  15. 15. Starting the process, but ….Source:    Bulldog  SoluJons/Frost  &  Sullivan,  "The  ExecuJve  Benchmark  Assessment"  
  16. 16. Not following through …Source:    Bulldog  SoluJons/Frost  &  Sullivan,  "The  ExecuJve  Benchmark  Assessment"  
  17. 17. People + process + contentSource:    Bulldog  SoluJons/Frost  &  Sullivan,  "The  ExecuJve  Benchmark  Assessment"  
  18. 18. 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.
  19. 19. 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”  
  20. 20. 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”  
  21. 21. 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”  
  22. 22. 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.
  23. 23. 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  
  24. 24. 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"  
  25. 25. Buyer 2.0 is the greatest challenge.
  26. 26. Buyer 2.0 expects more. “Buyers have higher expectations for intimacy.”Source:    Chris  Koch,  “Why  you  need  to  turn  your  customers  into  stalkers”  
  27. 27. Buyer 2.0 is forging own path.Source:    Enquiro,  “Integrated  Persuasion:    Online  and  Offline”  
  28. 28. Buyer 2.0 listens to groundswell.Source:    B2B  MarkeJng/Base  One,  "BUYERSPHERE,  Survey  of    B2B  Buyers  Use  of  Social  Media"  
  29. 29. Guiding principles … Twi$er:    @abneedles  
  30. 30. 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
  31. 31. Our ‘dirty’ past …
  32. 32. Getting focused … Twi$er:    @abneedles  
  33. 33. Buyer-centric.
  34. 34. Buyer-centric•  Who is our buyer?•  Buying process•  Content consumption pattern•  Engaging the buyer
  35. 35. B2B buyer decision cycle ReconsideraJon   SaJsfacJon   SelecJon   Acknowledgment   InvesJgaJon   Decision   Measurement   Criteria   Source:    R.  Jolles  
  36. 36. Example: Buyer content consumption Resource  Websites   Inbound  |  Social   Outbound  |  Nurturing   Inbound  |  Search   Source:    Lep  Brain  DGA  
  37. 37. Operational, process mindset.
  38. 38. Operational, process mindset•  Revenue goals•  Demand stages, linkages, flow•  Sales Ready Lead (SRL) definition•  SRL volume needed to meet sales goals•  Sales + marketing roles•  Linkage between content + revenue
  39. 39. Lead quality is key to sales. “[S]ales reps that focused on fewer, more winnable deals tend to do better. Flooding the rep with low quality/high quantity leads only increases their inefficiencies … .”Source:    SiriusDecisions,  “The  Perfect  Pipeline:  When  Less  Is  More”  
  40. 40. Example: Reverse funnel math (1/2) Source:    Lep  Brain  DGA  
  41. 41. Example: Reverse funnel math (2/2) Source:    Lep  Brain  DGA  
  42. 42. Building your program … Twi$er:    @abneedles  
  43. 43. Building your program …       Engagement   AcquisiEon   Nurturing   Content  markeEng  programs   Lead  management  processes   Technology  infrastructure   Source:    Lep  Brain  DGA  
  44. 44. The basics …
  45. 45. Content marketing programs Source:    Lep  Brain  DGA  
  46. 46. Lead management processesThe  LeZ  Brain  Model  for     CLOSED-­‐WON  Demand  GeneraEon   SALES   NON-­‐SOs   OPPORTUNITIES   SALES  READY   NON-­‐SRLs   LEADS   QUALIFIED   NON-­‐QRs   RESPONDENTS   RESPONDENTS   NON-­‐RESPs   PROSPECTS   Source:    Lep  Brain  DGA  
  47. 47. Technology systems Marketing Analytics Ad/Site Tracking Social  Media   AcJvity  Tracking Link Source Tracking CRM  Plaqorm Inbound Website + Blog Marketing Marketing CMS Automation Optimization Source:    Lep  Brain  DGA  
  48. 48. Integrating, rationalizing …
  49. 49. Engagement.
  50. 50. 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  
  51. 51. 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”  
  52. 52. 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  
  53. 53. Acquisition.
  54. 54. Example: Acquisition model Inbound  |  Search   Outbound   Nurturing  Program   Source:    Lep  Brain  DGA   Inbound  |  Social   Resource  Websites  
  55. 55. Nurturing.
  56. 56. 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  
  57. 57. 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  
  58. 58. 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  
  59. 59. Example: Nurturing logic Source:    Lep  Brain  DGA  
  60. 60. 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  
  61. 61. Building your program …       Engagement   AcquisiEon   Nurturing   Content  markeEng  programs   Lead  management  processes   Technology  infrastructure   Source:    Lep  Brain  DGA  
  62. 62. Optimizing demand generation … Twi$er:    @abneedles  
  63. 63. Focusing on results …•  Inbound / outbound activity •  Nurturing program conversion rates•  Prospect acquisition –  Total rate of conversion performance –  Intermediary rates –  # Prospects / channel –  Cost / Prospect / channel •  Demand Gen program ROI –  Cost / revenue / channel –  # Prospects acquired –  # Sales Opportunities•  Content marketing –  Total value of current Sales performance Opportunities –  Revenue elasticity –  Revenue influenced –  Offer to close time –  ROI ratios –  Cost / revenue / offer
  64. 64. Takeaways Twi$er:    @abneedles  
  65. 65. 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
  66. 66. Thank You The Key Elements of a Successful, Modern Demand Generation Plan Adam B. Needles VP, Demand Generation Strategy Left Brain DGA (617) 413-6087 @abneedles
  67. 67. Source:    ITSMA,  “How  Customers  Choose  SoluJon  Providers.”  
  68. 68. Source:    ITSMA,  “How  Customers  Choose  SoluJon  Providers.”  
  69. 69. Source:    B2B  MarkeJng/Base  One,  "BUYERSPHERE,  Survey  of    B2B  Buyers  Use  of  Social  Media"