How to Manage the Digital Disruption of the Manufacturing Sales & Marketing Cycle
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The internet is your digital showroom with buyers using it to shortlist potential suppliers weeks and months before they make contact with a salesperson. This change in behavior, with buyers performing more than two-thirds of their decision-making out of sight of the sales team, requires a new approach to sales. View the slideshow to see how Xylem, along with Marketo and The Pedowitz Group, - Increased sales productivity by enabling marketing, sales and distributors with key tools - Increased return on marketing investment by improving efficiency and effectiveness - Proved time to value within the initial pilot and quickly put the solution into production
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How to Manage the Digital Disruption of the Manufacturing Sales & Marketing Cycle
- 1. Transformation in Manufacturing How to Manage the Digital Disruption of the Manufacturing Sales & Marketing Cycle
- 2. This webinar is being recorded! Slides and recording will be sent to you after the webinar concludes. Have a question? Chat in the bottom right and we’ll get to your questions after the webinar. Posting to social? Tweet or comment – #mktgnation and @marketo Housekeeping
- 3. Today’s Speakers Debbie Qaqish Chief Strategy Officer The Pedowitz Group Bryan Gassler Director of Marketing Xylem Peter Bell Senior Director, Segment Marketing Marketo
- 4. Transformation in Manufacturing Peter Bell Senior Director, Product & Segment Marketing
- 5. 1. Current State of Industrial Manufacturers 2. Xylem Challenge and Case Study 3. Bar Room Chat 4. The next steps in your Manufacturing Transformation Agenda
- 6. Sales & Marketing have not modernized their approach to driving growth, the Internet is now your showroom
- 7. Purchasers have switched to digital channels to research & evaluate products Only 12% of executives feel well prepared for the changes brought on by digitally enabled customers Reference: Bain & Co
- 8. Integration of the Sales & Marketing functions is a proven growth driver Successful integration results in up to 20% increase in customer leads and a 20% decrease in the time to close a deal” Reference: McKinsey & Company
- 9. Digital technology is enabling Manufacturers to accelerate pipeline and grow sales 24% Industrial Manufacturers have deployed Marketing Automation Reference: MAPI
- 10. Has your approach to lead generation to evolved? How are you generating and converting leads using digital tools? How are you integrating Sales & Marketing to grow revenue? Your Challenge
- 11. Today’s Customer Behavior 94% of B2B buyers report that they conduct some form of online research before purchasing a business product (Accenture)
- 12. The Buyer Journey Disconnect
- 13. Can an industrial manufacturer use marketing as an economic engine to drive pipeline and compete in the customer-driven, digital and global environment?
- 14. Transformation in Manufacturing Bryan Gassler Director of Marketing, Xylem
- 15. Xylem is a large U.S.-based water technology provider that launched as a corporate spin-off from ITT Corporation in 2011. The company enables customers in more than 150 countries to transport, test, treat, and efficiently use water in public utility, residential, commercial and agricultural settings.
- 16. The Need for Change: Marketo Pilot “It is one thing knowing you want to invest in a specific technology to achieve a certain target, but it is a whole different ballgame actually implementing and rolling that out within a $4 billion organization.” Raj Suvarna, Xylem, Director of Digital Marketing Xylem recognized that they were not engaging with their customers in the early parts of the buying cycle and this was having an adverse effect on the downstream sales. So they resolved to invest in technology that could help them engage prospects in the digital channels and influence them earlier in their buying cycle.
- 17. The Pilot • BoD requested proof of digital marketing effectiveness prior to a Global roll-out • Developed a Marketo Pilot program for one BU • Goal to prove ROI and set a baseline The Need for Change: Marketo Pilot
- 18. Results • Enabled Marketo, strategized, built and launched first campaign in 30 days • $1 million in pipeline contribution from 26 MQLs in 10 days • Return on investment with revenue generated • BoD authorized Global roll-out The Pilot • BoD requested proof of digital marketing effectiveness prior to a Global roll-out • Developed a Marketo Pilot program for one BU • Goal to prove ROI and set a baseline The Need for Change: Marketo Pilot
- 19. • Be faithful to best practices • Be realistic about the time it takes to plan and implement a campaign. • If you don’t have sufficient bandwidth or expertise to execute a campaign, bring in a partner. Lessons LearnedResults • Enabled Marketo, strategized, built and launched first campaign in 30 days • $1 million in pipeline contribution from 26 MQLs in 10 days • Return on investment with revenue generated • BoD authorized Global roll-out The Pilot • BoD requested proof of digital marketing effectiveness prior to a Global roll-out • Developed a Marketo Pilot program for one BU • Goal to prove ROI and set a baseline The Need for Change: Marketo Pilot
- 20. Xylem: 2013 Digital Marketing Global Roll Out Training Sponsored by corporate
- 21. Xylem: 2013 Digital Marketing Global Roll Out Training Sponsored by corporate Customer Centric Global digital marketing strategy
- 22. Xylem: 2013 Digital Marketing Global Roll Out Training Sponsored by corporate Customer Centric Global digital marketing strategy Omni-Channel Campaign planning and implementation process
- 23. Xylem: 2013 Digital Marketing Global Roll Out 4,000+Sales Qualified Leads Training Sponsored by corporate Customer Centric Global digital marketing strategy Omni-Channel Campaign planning and implementation process
- 24. Xylem: 2013 Digital Marketing Global Roll Out 4,000+Sales Qualified Leads $6 millionMarketing contributed pipeline Training Sponsored by corporate Customer Centric Global digital marketing strategy Omni-Channel Campaign planning and implementation process
- 25. Shift from tactical marketing to strategic marketing Better alignment between sales and marketing stakeholders Expanded omni-channel reach Operational Success Implemented digital marketing best practices
- 26. What’s Next? • RPS – Repeatable Predictable and Scalable • Increasing the Digital Marketing ROI and ROI forecasting • Continue synergy with sales • Building the SME and creating a strong content strategy improving content effectiveness • Content driving the foundation of the strategy
- 27. In summary, can marketing become the economic engine? YES! Product Centric Customer Journey Centric Product Excellence Customer Service Excellence Analog Sales processes Digital Sales processes Sales view of the customer Digital view of the customer Marketing as a Cost Center Marketing as an Economic Engine
- 28. Transformation in Manufacturing Debbie Qaqish Chief Strategy Officer, The Pedowitz Group
- 29. Bar Room Chat Q&A with Debbie Qaqish and Bryan Gassler Debbie Qaqish Chief Strategy Officer The Pedowitz Group Bryan Gassler Director of Marketing Xylem
- 30. Bar Room Chat Q&A with Debbie Qaqish and Bryan Gassler Debbie Qaqish Chief Strategy Officer The Pedowitz Group Bryan Gassler Director of Marketing Xylem How do you get started?
- 31. Bar Room Chat Q&A with Debbie Qaqish and Bryan Gassler Debbie Qaqish Chief Strategy Officer The Pedowitz Group Bryan Gassler Director of Marketing Xylem How do you get executives onboard?
- 32. Bar Room Chat Q&A with Debbie Qaqish and Bryan Gassler Debbie Qaqish Chief Strategy Officer The Pedowitz Group Bryan Gassler Director of Marketing Xylem Why is it important to align with sales & how do you accomplish this?
- 33. Bar Room Chat Q&A with Debbie Qaqish and Bryan Gassler Debbie Qaqish Chief Strategy Officer The Pedowitz Group Bryan Gassler Director of Marketing Xylem How was the implementation process and what key learnings would you share?
- 34. Bar Room Chat Q&A with Debbie Qaqish and Bryan Gassler Debbie Qaqish Chief Strategy Officer The Pedowitz Group Bryan Gassler Director of Marketing Xylem What has been the experience & value of moving from one-off emails to omni- channel nurture streams?
- 35. Bar Room Chat Q&A with Debbie Qaqish and Bryan Gassler Debbie Qaqish Chief Strategy Officer The Pedowitz Group Bryan Gassler Director of Marketing Xylem How important is data – the health of your data & how to use the data?
- 36. Bar Room Chat Q&A with Debbie Qaqish and Bryan Gassler Debbie Qaqish Chief Strategy Officer The Pedowitz Group Bryan Gassler Director of Marketing Xylem What advice do you have for marketers looking to drive tangible business results?
- 37. Bar Room Chat Q&A with Debbie Qaqish and Bryan Gassler Debbie Qaqish Chief Strategy Officer The Pedowitz Group Bryan Gassler Director of Marketing Xylem What are some of the key metrics you measure?
- 38. Bar Room Chat Q&A with Debbie Qaqish and Bryan Gassler Debbie Qaqish Chief Strategy Officer The Pedowitz Group Bryan Gassler Director of Marketing Xylem How does your company, including executive leadership, now see the role of marketing?
- 39. “Most executives in the manufacturing industry are laggards when it comes to understanding the new buyer’s habits and how they apply to go- to-market strategy and tactics … the window of opportunity is open for modern, bold executives willing to change the way they interact with their target audience.” Bruce McDuffee’s The Manufacturer’s Growth Manifesto Where are you on your Journey? Take the assessment: http://revmarketer.pedowitzgroup.com/Manufacturing-Marketing- Assessment.html
- 40. Q&A
- 41. Thank You
Editor's Notes
- SLIDE OWNER: Vyoma
- SLIDE OWNER: Peter The Manufacturing Alliance for Productivity and Innovation (MAPI) reports increasing interest in digital tools and resources for marketing and sales among member manufacturing companies in recent years. For example, in 2013, MAPI found that 24 percent of responding companies were using marketing automation systems, up from 14 percent in 2012.9 Another MAPI survey of more than 50 manufacturing company executives conducted in 2015 found that a majority (60 percent) of marketing departments planned to invest more in digital resources related to “lead generation activities and technologies” over the next year. Many manufacturing companies have started taking advantage of higher visitor traffic on their websites. Collecting information about website visitors has enabled suppliers to gain a better understanding of the needs and preferences of prospective customers. Companies use the insights from customer data to inform their targeted sales activities and to initiate engaging and productive interactions with customers Another commonly used digital tool is marketing automation. Marketing automation allows manufacturing companies to track lead behavior and offer customized and dynamic solutions for their needs throughout the sales cycle. Marketing automation tools ensure that all leads receive appropriate attention from the sales team. Using these tools, sales teams at manufacturing companies can, for example, send automated communications to purchasers at every step of the sales cycle and receive alerts when a potential customer visits the website and looks at a new product. Overall, marketing automation increases the efficiency of the sales process by allowing the sales team to focus on leads that are most likely to buy.
- SLIDE OWNER: Vyoma
- SLIDE OWNER: Peter
- SLIDE OWNER: Peter
- SLIDE OWNER: Peter Engineers and technical buyers do most of their research, evaluation and finally selecting a vendor very differently today than in the past. I hear too many manufacturers and industrial companies talking about creating brochures & attending the same old events because they want to drive up their lead generation. That mode of thinking is outdated and simply doesn’t work today where you are dealing with mostly invisible and self-directed industrial buyers utilizing the internet and other digital channels. Complicating the process is the fact that the buyers do not usually go on a linear buying journey. There are many stakeholders involved in the buying decision, some of whom may never visit your website and/or meet your sales people. Your industrial lead generation needs to evolve to meet their needs. Otherwise you are going to struggle generating qualified leads that turn into sales opportunities.
- SLIDE OWNER: Peter As in many other sectors, manufacturing sales and marketing functions have been undergoing significant changes thanks to advancements in digital communications. As purchasers become digitally savvy and rely more heavily on online tools, suppliers strive to develop effective sales and marketing strategies to influence purchasing decisions. According to McKinsey, the line between consumer shoppers and business purchasers, including manufacturers, has become blurry in recent years. Much like consumers, who are more easily influenced by advertising, media messages, and the advice of friends and family, business purchasers increasingly prefer a more social approach and rely more heavily than before on the opinions of industry influencers such as bloggers. Purchasers seek out information on digital platforms and use tools like product configurators and price calculators on supplier websites. Similarly, according to a 2015 study conducted by Bain & Company, two-thirds of purchasers in industrial and technology companies perform online research before contacting a vendor. However, a Bain brief reveals that the websites of more traditional B2B companies often do not provide compelling reasons to attract prospects, while companies with more sophisticated web presences continue to get more business. Indeed, only 12 percent of executives interviewed by Bain feel they are well prepared for the changes in the sector brought on by digitally enabled customers
- SLIDE OWNER: Peter The integration of the sales and marketing functions at manufacturing companies is another visible trend in this space. Bain projects that companies with separate marketing and sales functions will fall behind those that operate under an integrated model. McKinsey & Company estimates that successful integration of sales and marketing results in “up to 20 percent increase in customer leads, 10 percent growth in first-time customers, and a speedup of as much as 20 percent in the time that elapses between qualifying a lead and closing a deal.” For many companies, integration of sales and marketing can start with making small adjustments in the customer relationship management platform to allow for data sharing between the sales and marketing teams. Other companies have taken their integration efforts one step further. For example, according to McKinsey, one medical device manufacturer developed a mobile app that reorganizes customer segments and makes pricing, service, and cross-sell recommendations as soon as a salesperson enters updates into the system. Another supplier observed that some clients are more responsive to email communications if those messages are preceded by phone calls or direct mails. Based on this observation, the company introduced a system that generates reminders for salespeople to make phone calls or send direct mail to those clients. Successful integration of sales and marketing functions starts with the alignment of goals and targets across the two teams. Sales and marketing staff first need to agree on who the target audience is and how different personas will be defined. Then, based on the targets, they can develop common metrics to track both marketing and sales performance.
- SLIDE OWNER: Peter The Manufacturing Alliance for Productivity and Innovation (MAPI) reports increasing interest in digital tools and resources for marketing and sales among member manufacturing companies in recent years. For example, in 2013, MAPI found that 24 percent of responding companies were using marketing automation systems, up from 14 percent in 2012.9 Another MAPI survey of more than 50 manufacturing company executives conducted in 2015 found that a majority (60 percent) of marketing departments planned to invest more in digital resources related to “lead generation activities and technologies” over the next year. Many manufacturing companies have started taking advantage of higher visitor traffic on their websites. Collecting information about website visitors has enabled suppliers to gain a better understanding of the needs and preferences of prospective customers. Companies use the insights from customer data to inform their targeted sales activities and to initiate engaging and productive interactions with customers Another commonly used digital tool is marketing automation. Marketing automation allows manufacturing companies to track lead behavior and offer customized and dynamic solutions for their needs throughout the sales cycle. Marketing automation tools ensure that all leads receive appropriate attention from the sales team. Using these tools, sales teams at manufacturing companies can, for example, send automated communications to purchasers at every step of the sales cycle and receive alerts when a potential customer visits the website and looks at a new product. Overall, marketing automation increases the efficiency of the sales process by allowing the sales team to focus on leads that are most likely to buy.
- SLIDE OWNER: Peter Going back to those three big questions… How do you manage opportunities… when the whole process is increasingly digital. When you might have a few seconds to make an impression. When there are so many resources online today, and not all of them are equally powerful. Many manufacturers face challenges managing the leads they generate. Quick response to leads is crucial, since research shows that a large proportion of sales goes to companies that follow up first. However, studies show that almost half of leads are contacted more than 24 hours after the initial customer inquiry, and many others are not contacted at all. To provide quick responses to customer inquiries, leading manufacturers use marketing automation tools that send an automated email to leads after the initial inquiry. This way, leads are more likely to remain engaged until the sales team contacts them. After the lead is contacted by the sales team, effective lead management requires that the qualification of the lead is determined by taking into account various criteria, including the product the lead is interested in, the timeline of the lead, and the decision-making process for purchasing. If the lead is ready to purchase, the outside sales team would then take over to manage the sale, and if the lead is not yet ready to make a commitment, the sales team continues to nurture the lead by providing them with regular content and educational resources. Integrating the sales and marketing capabilities within the overall operating model. McKinsey & Company recommends that companies develop ways to become more agile by speeding up the decision-making process and creating cross-functional teams of sales and marketing staff using technological tools that allow them to collaborate.
- SLIDE OWNER: Peter (What you need to be doing) By its nature, lead nurturing is highly customized for each buyer persona and can be difficult to maintain in an organized way. This is especially true for manufacturing companies. According to a 2013 survey conducted by Software Advice, an online source providing recommendations for software buyers, 85 percent of manufacturers surveyed cited the relatively long sales cycles in their sector as the main reason for needing a strong lead nurturing program. To implement an effective lead nurturing process, many manufacturing companies use marketing automation. Marketing automation allows users to control, manage, and track all the data collected during the nurturing process. The automated lead nurturing process generally relies on tools such as lead scoring, segmentation, and content mapping. Furthermore 85% of Manufacturers cite long sales cycles as the main reason for investing in a lead nurturing program to enable them to communicate the most relevant information across digital and traditional channels
- SLIDE OWNER: Peter (This is what your customers doing today, it is not linear and you can’t predict their journey) NOTE THEY ARE NOT TALKING TO YOUR SALES TEAM By its nature, lead nurturing is highly customized for each buyer persona and can be difficult to maintain in an organized way. This is especially true for manufacturing companies due to the relatively long sales cycles in their sector as the main reason for needing a strong lead nurturing program.39 To implement an effective lead nurturing process, many manufacturing companies use marketing automation. While face-to-face events and referrals are still considered effective in generating leads for manufacturing sales, the use of online tools such as email marketing, content marketing, and company websites is increasingly popular. Many companies find these tools useful for generating more high-quality leads, and as a result, increasing their leads-to-sales conversion rate. However, some B2B marketers find these tools difficult to execute, mainly because they do not have an effective online lead generation strategy. For manufacturing companies, long sales cycles and small numbers of leads pose additional challenges and create even more urgency to address the challenge.
- SLIDE OWNER: Peter The decision-making process for industrial purchasers is undergoing rapid change as purchasers become digitally savvy. Increasingly many purchasers conduct their pre-purchase research online, and they expect to see content relevant to their needs and relevant to their needs and preferences. Manufacturing companies are shifting their sales and marketing efforts to online platforms. Suppliers increasingly take advantage of customer data, analytics, and automated tools to generate and manage leads. Sales and marketing functions are no longer seen as separate. Manufacturing companies that integrate their sales and marketing teams are projected to generate more revenue. Successful integration of sales and marketing functions starts with the alignment of goals and targets across the two teams. Sales and marketing staff first need to agree on who the target audience is and how different personas will be defined.17 Then, based on the targets, they can develop common metrics to track both marketing and sales performance
- SLIDE OWNER: Brian
- SLIDE OWNER: Brian
- SLIDE OWNER: Brian
- SLIDE OWNER: Brian
- SLIDE OWNER: Brian
- SLIDE OWNER: Brian
- SLIDE OWNER: Brian Corporate sponsored the training and identified the early adopters in the business and invested in then via a large executive education and time and effort for the digital strategy to approach marketing in this new way to fuel top-line revenue growth. Created global digital marketing strategy centered on building consumer trust Created a global digital omni-channel campaign planning and implementation process 4,000+ sales qualified leads generated in 2013 from websites and campaigns contributing to 6 million in pipeline
- SLIDE OWNER: Brian Corporate sponsored the training and identified the early adopters in the business and invested in then via a large executive education and time and effort for the digital strategy to approach marketing in this new way to fuel top-line revenue growth. Created global digital marketing strategy centered on building consumer trust Created a global digital omni-channel campaign planning and implementation process 4,000+ sales qualified leads generated in 2013 from websites and campaigns contributing to 6 million in pipeline
- SLIDE OWNER: Brian Corporate sponsored the training and identified the early adopters in the business and invested in then via a large executive education and time and effort for the digital strategy to approach marketing in this new way to fuel top-line revenue growth. Created global digital marketing strategy centered on building consumer trust Created a global digital omni-channel campaign planning and implementation process 4,000+ sales qualified leads generated in 2013 from websites and campaigns contributing to 6 million in pipeline
- SLIDE OWNER: Brian Corporate sponsored the training and identified the early adopters in the business and invested in then via a large executive education and time and effort for the digital strategy to approach marketing in this new way to fuel top-line revenue growth. Created global digital marketing strategy centered on building consumer trust Created a global digital omni-channel campaign planning and implementation process 4,000+ sales qualified leads generated in 2013 from websites and campaigns contributing to 6 million in pipeline
- SLIDE OWNER: Brian Corporate sponsored the training and identified the early adopters in the business and invested in then via a large executive education and time and effort for the digital strategy to approach marketing in this new way to fuel top-line revenue growth. Created global digital marketing strategy centered on building consumer trust Created a global digital omni-channel campaign planning and implementation process 4,000+ sales qualified leads generated in 2013 from websites and campaigns contributing to 6 million in pipeline
- SLIDE OWNER: Brian
- SLIDE OWNER: Brian the average marketing spend on content is 30% of the marketing budget today…because that is the fuel for customer engagement…
- SLIDE OWNER: Brian
- SLIDE OWNER: Debbie
- SLIDE OWNER: Debbie
- SLIDE OWNER: Debbie
- SLIDE OWNER: Debbie
- SLIDE OWNER: Debbie
- SLIDE OWNER: Debbie
- SLIDE OWNER: Debbie
- SLIDE OWNER: Debbie
- SLIDE OWNER: Debbie
- SLIDE OWNER: Debbie
- SLIDE OWNER: Debbie
- SLIDE OWNER: Debbie
- SLIDE OWNER: Vyoma
- SLIDE OWNER: Debbie