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Behavioral Marketing : The end of segmentation in B2B marketing


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Presented at B2B Marketing Forum 2013, Amsterdam, March 14th 2013.
Synopsis: Today’s B2B buyer is not only digitally savvy but is also driving the engagement. As B2B marketers we need to make a shift in how we market. Find out how successful brands are moving from a segmented to a personalised approach, using behaviors to drive relevant, profitable relationships.

Published in: Business
  • Great slides! I'd like add some great tools that work for us: 1- (Paid) and (Free) - Send follow-ups emails; 2- (Paid) - Identify unknown B2B website visitors; 3- (Paid) - Sales prospecting tool on LinkedIn; 4- (Paid) - Viewer engagement analytics for presentations.
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  • Stimulating presentation John!

    As with any presentation with the title the ‘End of marketing, the end of... etc’, it really means the end of poor X. In this case, it's the end of poor segmentation, or rather categorisation.

    Good segmentation is all about needs and propensity, not demographics. Sadly, few marketers recognise the difference, and using market research data encourages people not to do their own innovative segmentation. And for B2B targeting of enterprise customers it has a real value if you do it correctly. It makes selling much easier.

    B2B is not a segment, so there is a danger on using statistics that cover a spectrum which ranges from selling copier paper to nuclear power stations. The messages here may not apply to all sectors, but you have to start somewhere. A Segment of One is a good place, and you can then try to group these micro-segments together to get an economically addressable group, providing you don’t lose the key attributes. [This may sound like a bad approach until you realise that in reality you can only develop products, messages, routes to market, etc where economically viable. However, it’s not the same as “you can have any color as long as it's black”!]

    Measuring behaviours and using automation to improve the targeting makes absolute sense. It’s what gets missed when the tools are available but not the ‘intelligence’. But it relies on information from those you have already reached. There’s still the challenge of extending your reach, which may not be an automation issue.

    Finally, there are lots of stats quoted, but use caution. Many are from companies selling something and are likely to suffer from Confirmation Bias. The case studies give a nice picture, even if we need to be careful about the measures.

    I still think Theodore Levitt’s “If you're not thinking segments, you are not thinking” is still true. Providing you know what’s a segment.

    PS Behavioral is spelt Behavioural in the UK :)
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Behavioral Marketing : The end of segmentation in B2B marketing

  1. 1. Behavioral Marketing :The end of segmentation in B2B marketing John Watton, Silverpop B2B Marketing Forum, 14th March 2013. @jwatton , #b2bnl
  2. 2. #b2bnl
  3. 3. Agenda• The empowered consumer• Right message, right time, right place• Behavioral Marketing• Behavioral Marketing @Work #b2bnl
  4. 4. The empowered consumer #b2bnl
  5. 5. Problem: NoiseThe average consumer is exposed to 30,000 marketing messages per day. #b2bnl
  6. 6. of UK smartphone owners say they’ve never seen a mobile ad #b2bnlSource: Nielsen Mobile Consumer Survey, Feb 2013
  7. 7. The average socialpost has a half-life of mins Source: SEOmoz blog, Feb 2013 #b2bnl
  8. 8. 25%To get of your tweets retweeted 10,000 You need followers #b2bnl Source: SEOmoz blog, Feb 2013
  9. 9. #b2bnl
  10. 10. B2B B2C #b2bnl
  11. 11. B2B B2C #b2bnl
  12. 12. Marketing practiceis ten years behind marketing vision. #b2bnl
  13. 13. The SegmentedAudience Approach Female Homeowner Male Female College 30-40 Female MaleHomeowner Homeowner Educated 30-40 Female With kids Homeowner College College Educated Educated Male With kids With kids 30-40 Male Female 30-40 Homeowner Male 30-40 Male Female 30-40 Homeowner Male 30-40 College College Educated Educated With kids College With kids Educated Female Homeowner With kids #b2bnl
  14. 14. Problem:The Segmented Audience approach is failing 3% Relevant 97% Irrelevant #b2bnl
  15. 15. #b2bnl
  16. 16. Theoretical Needs + Actual Wants 1 #b2bnl
  17. 17. Traditional segmentation 1 2 3 By Profile By Preference By Now? #b2bnl
  18. 18. Consumers are more demanding 50% of German consumers say information is too generic. Source: Silverpop Survey, Mar 2013 #b2bnl
  19. 19. Marketers are not responding 17% of marketers tailor their message to the individual. Source: Silverpop Survey, Mar 2013 #b2bnl
  20. 20. The sales cycle is d.e.a.d. 2 #b2bnl
  21. 21. 56% of the buying process is invisible to the seller.“The empoweredcustomer isnow in control of thebusiness relationship.” #b2bnlSource: IBM CMO Study 2011
  22. 22. 70% of B2B buyers use a search engine at the start of their buying process Source: Mediative Whitepaper, Feb 2011 #b2bnl
  23. 23. of C-Level executives prefer to locate information themselves53% Source: Carat UK, Mar 2013 #b2bnl
  24. 24. 21% of B2B buyers use social media at some point in the buying process Source: BaseOne Buyersphere 2012 #b2bnl
  25. 25. Marketing needs to change #b2bnl
  26. 26. The biggest win: by behavior #b2bnl
  27. 27. Shrinkingsegments #b2bnl
  28. 28. The goal:segments of one #b2bnl
  29. 29. Right message.Right time. Right place. #b2bnl
  30. 30. 4 steps to behavioralmarketing automation #b2bnl
  31. 31. Step 1: Which behaviors to track? Demographics Email behavior Social behavior Web behavior Off-line behavior• Company • Opened email • Likes • Pages viewed • Salesteam interaction• Title • Did not open email • Comments • Links clicked • Event attendance• Sector • Clicked on link • Shares • Cart abandoned • Check-ins/QR codes• Customer/Prospect in email • Facebook forms • Products searched • Call centre activity• Product preferences • Bounced • etc • Forms completed • Catalogue request• etc • No mailing activity • Files downloaded • etc • etc • Videos viewed • etc #b2bnl
  32. 32. Step 2: Unify into one customer view LOCATION EMAIL WEBSITE ECOMMERCE SOCIAL CRM BEHAVIORAL DATABASE #b2bnl
  33. 33. Step 3: Automate something!• 1. Welcome/Onboarding• 2. Browse Abandonment• 3. Recommendation• 4. Product Review Request• 5. Replenishment/Re-order• 6. Password renewal/reminder• 7. Trials• 8. Cross Sell• 9. Purchase Anniversary/Renewal• 10. Re-engagement #b2bnl
  34. 34. Step 4: Personalize channels (e.g. email) Subject Line Personalization 1 First name personalization 1 Personalized Content Name and contact info for each customer’s 2 6 personal rep Dynamic Subject Lines 2 The subject line changes based on the type and duration of club membership Individualized Content Lists 3 For any customer who has purchased two or more items in the last 90 days, list each purchase with review links E-commerce-driven Personalization 4 Display totals and other engaging content to drive follow-on purchases. 7 Website-driven Content 5 Directly track each customer’s web activity and prompt them to visit new areas of the site. Send Time Optimization 3 6 The message arrives in each individual’s inbox at precisely the time that individual is most likely to 1 check email. Data-driven Dynamic Image 7 Image is selected based on demographic and 4 profile info 8 Score-driven Dynamic Offer 5 8 Discounts/prices vary by social influence #b2bnl and time since last purchase
  35. 35. Behavioral Marketing @Work #b2bnl
  36. 36. Lead score on demographics & behaviors Heavy Behavior Low Interest Interest Profile 1 2 3 4 Great Fit A 32+/15+ 32+/10-14 32+/6-9 32+/0-5 B 20-31/15+ 20-31/10-14 20-31/6-9 20-31/0-5 C 10-19/15+ 10-19/10-14 10-19/6-9 10-19/0-5 OK fit D 0-9/15+ 0-9/10-14 0-9/6-9 0-9/0-5 #b2bnl
  37. 37. Prioritize “sales-ready” leads Heavy Behavior Low Interest Interest Profile 1 2 3 4 Great Fit A 32+/15+ 32+/10-14 32+/6-9 32+/0-5 B 20-31/15+ 20-31/10-14 20-31/6-9 20-31/0-5 C 10-19/15+ 10-19/10-14 10-19/6-9 10-19/0-5 OK fit D 0-9/15+ 0-9/10-14 0-9/6-9 0-9/0-5 #b2bnl
  38. 38. Behavior Driven AutomationCampaign CampaignProgram A Program B 260% lift in product Sales than non automated emails – Empowering Parents Only 4% of emails have been automated thus far yet they drive 40% of email revenue – S&S Worldwide Conversion rates went up 136% with automation - SmartPak #b2bnl
  39. 39. Dell/Trend Micro Trend Trend Segment Time Database Micro #1 #4Database POS Segment Post Purchase Survey Welcome Campaign Regular Monthly CampaignsTrend FTP Site Data put on to Default FTP site daily Customer Communications Ad Hoc Campaigns Mid Term Survey Renewal RemindersCleverTouch #1 #4 Data Data manipulated In Trial SegmentTransformation ready for Welcome Campaign silverpop Post Trial #1 #2 Activation Activate - Y Segment Post Purchase Survey Welcome CampaignSilverpop FTP Data uploaded Site to silverpop for #1 scheduled Activate - N daily import Survey #2 Extended Trial Period Campaign Win Back Campaign New contacts Silverpop added to #8 Database Database Highlights- over 4-10k pcm enter this programme, all automated (10 times a day) #b2bnl 5 routes & 9 languages and multi-touch= 250+ scheduled communications
  40. 40. Tekstream +200% +105% +75% Revenue Lead conversion rates Pipeline Opps #b2bnl
  41. 41. 1 day 3 days Try Why you wizard should1. WizardOverview 1 day 3 days It will Almost Done… help 2. Started you Wizard 1 day 3 days Wizard Custom 3. Completed Results for you Wizard 1 day 4. Add to Did you x days forget …. CartResponding 5. Placed Thank You x days …. to Website Order Behaviors #b2bnl
  42. 42. SmartPak Difference After Before Open Rate +68.3% 27.6% 16.4% CTR +103.5% 5.9% 2.9% CTOR +20.9% 21.4% 17.7% Conversion Rate +135.8% 14.6% 6.2% Unsubscribe -42.9% 0.08% 0.14% SPAM Complaint Rate -33.3% 0.04% 0.06% Bounce -6.0% 0.63% 0.67% #b2bnl
  43. 43. Agenda• The empowered consumer• Right message, right time, right place• Behavioral Marketing• Behavioral Marketing @Work #b2bnl
  44. 44. Thank you #b2bnl