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How to Optimize Demand - The CMOs Next Frontier
The document discusses demand generation optimization, citing that organizations with mature programs see lead-to-revenue results 4-10 times higher than industry averages. It highlights the importance of demand generation key performance indicators (KPIs) for ensuring quality and sustainability in marketing efforts, including metrics such as engaged-to-qualified lead conversion rates. Additionally, it emphasizes the need for aligning marketing strategies with the buyer's journey to enhance overall effectiveness and revenue impact.
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How to Optimize Demand - The CMOs Next Frontier
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- 5. 5 DEMAND GENERATION MATURITY O N LY 2 7 % H A V E M A T U R E D E M A N D G E N E R A T I O N P R O G R A M S Source: ANNUITAS, Inc., “2016 B2B Enterprise Demand Genera1on Survey.”
- 6. • Direct response • Vendor push • Outbound oriented • Periodic, short-term • “Perpetual Demand GeneraTon” • Buyer pull • Inbound oriented • Always on, sustainable 6 DEMAND GENERATION MATURITY M A T U R I T Y S P E C T R U M More Maturity Less Maturity TacTcal Demand Strategic Demand
- 7. 7 DEMAND GENERATION MATURITY G E TT I N G T O ‘ P E R P E T U A L D E M A N D G E N E R A T I O N ’ Demand Engine Demand Process Persona One Persona Two Persona Three +
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- 9. 9 DEMAND GENERATION A N AL Y T I C S / O P T I M I Z A T I O N I N V E S T M E N T S G R O W I N G T H E F A S T E S T Source: Adobe, “Four Essen1al Elements for Digital Maturity,” 2016.
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- 11. 11 OPTIMIZING DEMAND W H AT D O D E M A N D G E N E R A T I O N K P I s N E E D T O T E L L U S ?
- 12. • How can we be sure of the quality and sustainability of our demand genera1on efforts? 12 OPTIMIZING DEMAND W HA T D O D E M A N D G E N E R A T I O N K P I s N E E D T O T E L L U S ?
- 13. • How can we be sure of the quality and sustainability of our demand genera1on efforts? 13 OPTIMIZING DEMAND W HA T D O D E M A N D G E N E R A T I O N K P I s N E E D T O T E L L U S ? • Demand CreaTon Efficiency
- 14. • How can we be sure of the quality and sustainability of our demand genera1on efforts? • How can we be sure we are opTmizing our mix of content and channels against the ‘true’ journey of our targeted buyer? 14 OPTIMIZING DEMAND WH A T D O D E M A N D G E N E R A T I O N K P I s N E E D T O T E L L U S ? • Demand CreaTon Efficiency
- 15. • How can we be sure of the quality and sustainability of our demand genera1on efforts? • How can we be sure we are opTmizing our mix of content and channels against the ‘true’ journey of our targeted buyer? 15 OPTIMIZING DEMAND WH A T D O D E M A N D G E N E R A T I O N K P I s N E E D T O T E L L U S ? • Demand CreaTon Efficiency • Buyer CriTcal Path Alignment
- 16. • How can we be sure of the quality and sustainability of our demand genera1on efforts? • How can we be sure we are opTmizing our mix of content and channels against the ‘true’ journey of our targeted buyer? • How can we be sure our marke1ng efforts are really providing ‘net lic’ to pipeline and revenue? 16 OPTIMIZING DEMAND W H A T D O D E M A N D G E N E R A T I O N K P I s N E E D T O T E L L U S ? • Demand CreaTon Efficiency • Buyer CriTcal Path Alignment
- 17. • How can we be sure of the quality and sustainability of our demand genera1on efforts? • How can we be sure we are opTmizing our mix of content and channels against the ‘true’ journey of our targeted buyer? • How can we be sure our marke1ng efforts are really providing ‘net lic’ to pipeline and revenue? 17 OPTIMIZING DEMAND W H A T D O D E M A N D G E N E R A T I O N K P I s N E E D T O T E L L U S ? • Demand CreaTon Efficiency • Buyer CriTcal Path Alignment • Revenue Impact
- 18. 18 OPTIMIZING DEMAND T H E E I G H T ‘ C O R E K P I s ’ F O R O P T I M I Z I N G D E M A N D • Engaged-to-Qualified Lead • Qualified Lead-to- Opportunity • Engaged-to-Closed Won • Pipeline/Revenue Marke1ng Sourced • Pipeline/Revenue Marke1ng Influenced • Channel / Content Elas1city • Channel / Content Velocity • Mul1-touch ADribu1on of Channel / Content ROI Demand CreaTon Efficiency Buyer CriTcal Path Alignment Revenue Impact
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- 20. 20 DEMAND CREATION EFFICIENCY 6 7 % H A V E A D O C U M E N T E D L E A D M A N A G E M E N T F R A M E W O R K Source: ANNUITAS, Inc., “2016 B2B Enterprise Demand Genera1on Survey.”
- 21. 21 DEMAND CREATION EFFICIENCY T H E E I G H T ‘ C O R E K P I s ’ F O R O P T I M I Z I N G D E M A N D • Engaged-to-Qualified Lead • Qualified Lead-to- Opportunity • Engaged-to-Closed Won • Pipeline/Revenue Marke1ng Sourced • Pipeline/Revenue Marke1ng Influenced • Channel / Content Elas1city • Channel / Content Velocity • Mul1-touch ADribu1on of Channel / Content ROI Demand CreaTon Efficiency Buyer CriTcal Path Alignment Revenue Impact
- 22. 22 DEMAND CREATION EFFICIENCY • Engaged-to-Qualified Lead • Qualified Lead-to- Opportunity • Engaged-to-Closed Won Demand CreaTon Efficiency K P I : “ E N G A G E D - T O - Q U A L I F I E D L E A D ” % C O N V E R S I O N • Efficiency of multi-channel Engagement, Nurturing and Lead Qualification • LSCENG>QL = # Qualified Leads / # Engaged * 100% Program Age: 3 Quarters Program Age: 8 Quarters 6.39% 14.0%
- 23. 23 DEMAND CREATION EFFICIENCY • Engaged-to-Qualified Lead • Qualified Lead-to- Opportunity • Engaged-to-Closed Won Demand CreaTon Efficiency B E N C H M A R K S : “ E N G A G E D - T O - Q U A L I F I E D L E A D ” % C O N V E R S I O N Program Age: 3 Quarters Program Age: 8 Quarters B2B Benchmark Targets • Direct-response / ‘Push’ demand generation: 4-6% • Perpetual DG / ‘Buyer-pull’ demand generation: 8-16%
- 24. 24 DEMAND CREATION EFFICIENCY • Engaged-to-Qualified Lead • Qualified Lead-to- Opportunity • Engaged-to-Closed Won Demand CreaTon Efficiency K P I : “ Q U A L I F I E D L E A D - T O - O P P O R T U N I T Y ” % C O N V E R S I O N • Quality of Qualified Leads being produced by demand generation; rate of acceptance of these Qualified Leads going to sales to build Opportunity pipeline • LSCQL>OPPTY = # OpportuniCes / # Qualified Leads * 100% Program Age: 3 Quarters Program Age: 8 Quarters 43.5% 45.7%
- 25. 25 DEMAND CREATION EFFICIENCY • Engaged-to-Qualified Lead • Qualified Lead-to- Opportunity • Engaged-to-Closed Won Demand CreaTon Efficiency B E N C H M A R K S : “ Q U A L I F I E D L E A D - T O - O P P O R T U N I T Y ” % C O N V E R S I O N Program Age: 3 Quarters Program Age: 8 Quarters B2B Benchmark Targets • Direct-response / ‘Push’ demand generation: 30% • Perpetual DG / ‘Buyer-pull’ demand generation: 40-50%
- 26. 26 DEMAND CREATION EFFICIENCY • Engaged-to-Qualified Lead • Qualified Lead-to- Opportunity • Engaged-to-Closed Won Demand CreaTon Efficiency B E N C H M A R K S : “ Q U A L I F I E D L E A D - T O - O P P O R T U N I T Y ” % C O N V E R S I O N • Quality of Qualified Leads being produced by demand generation; rate of acceptance of these Qualified Leads going to sales to build Opportunity pipeline • LSCQL>OPPTY = # OpportuniCes / # Qualified Leads * 100% Program Age: 3 Quarters
- 27. 27 DEMAND CREATION EFFICIENCY • Engaged-to-Qualified Lead • Qualified Lead-to- Opportunity • Engaged-to-Closed Won Demand CreaTon Efficiency K P I : “ E N G A G E D - T O - C L O S E D W O N ” % C O N V E R S I O N • Balanced, end-to-end view of how effective up-stream demand generation activities are on driving downstream revenue; adds win rate to funnel conversion perspective • LSCENG>CW = # Closed Won / # Engaged * 100% Program Age: 3 Quarters Program Age: 8 Quarters 0.44% 3.58%
- 28. 28 DEMAND CREATION EFFICIENCY • Engaged-to-Qualified Lead • Qualified Lead-to- Opportunity • Engaged-to-Closed Won Demand CreaTon Efficiency B E N C H M A R K S : “ E N G A G E D - T O - C L O S E D W O N ” % C O N V E R S I O N Program Age: 3 Quarters Program Age: 8 Quarters B2B Benchmark Targets • Direct-response / ‘Push’ demand generation: 0.2-0.85% • Perpetual DG / ‘Buyer-pull’ demand generation: 1-4%
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- 30. 30 BUYER CRITICAL PATH ALIGNMENT B U YE R E X P E R I E N C E T H A T ‘ E X C E E D S ’ I S N O T T H E N O R M Source: Forrester, ”Expecta1on Vs. Experience: The Good, The Bad, The Opportunity,” June 2016.
- 31. “CMOs ... report that of all the individuals they reach with their marke1ng messages, fewer than 18 percent are actually in the market for the product or service on offer.” 31 BUYER CRITICAL PATH ALIGNMENT 8 2 % O F D E M A N D G E N E R A T I O N I S ‘ W R O N G P L A C E , W R O N G T I M E ’ Source: Accenture Interac1ve, ”Waste or Win? The Case for Just-in-1me Marke1ng,” 2016.
- 32. 32 BUYER CRITICAL PATH ALIGNMENT B U YE R J O U R N E Y A L I G N M E N T L E A D S T O M A R K E T I N G ‘ O U T P E R F O R M A N C E ’ Source: Salesforce Research, ”2016 State of Marke1ng.” 142016 State of Marketing Salesforce Research High performers Moderate performers Underperformers Top Marketing Teams Commit to the Customer Journey From adopting strategy to actively mapping touchpoints, high-performing marketing leaders make the customer journey a priority. In our 2016 research, “customer journey” is defined as all interactions that customers have with a company’s brands, products, or services across all touchpoints and channels. High- performing marketing teams are 8.8x more likely than underperformers to strongly agree that they have adopted a customer journey strategy as part of their overall business strategy. But top marketers know that identifying the customer journey is an ongoing pursuit. Whether a marathon or a series of sprints, well-executed journeys must be contextual to the moment and personalized to individual customers. While 65% of high performers strongly agree their company has adopted a customer journey approach, 61% are actively mapping their journeys. Among high-performing teams, 88% say a customer journey strategy is critical to the success of their overall marketing. Has adopted a customer journey strategy as part of its overall business strategy 65% 61% 7% 6% 23% 22%Is actively mapping the customer journey High-performing vs. Underperforming Teams Percentage Who Strongly Agree with Each Statement 8.8x more likely to strongly agree 9.7x more likely to strongly agree Practices of High-Performing Marketing Teams Top Marketing Teams Win with a Customer Journey Strategy01
- 33. 33 BUYER CRITICAL PATH ALIGNMENT T H E E I G H T ‘ C O R E K P I s ’ F O R O P T I M I Z I N G D E M A N D • Engaged-to-Qualified Lead • Qualified Lead-to- Opportunity • Engaged-to-Closed Won • Pipeline/Revenue Marke1ng Sourced • Pipeline/Revenue Marke1ng Influenced • Channel / Content Elas1city • Channel / Content Velocity • Mul1-touch ADribu1on of Channel / Content ROI Demand CreaTon Efficiency Buyer CriTcal Path Alignment Revenue Impact
- 34. • Channel / Content ElasTcity • Channel / Content Velocity • Mul1-touch ADribu1on of Channel / Content ROI Buyer CriTcal Path Alignment 34 BUYER CRITICAL PATH ALIGNMENT K P I : “ C H A N N E L / C O N T E N T E L A S T I C I T Y ” • Probability that a Prospect’s interaction with a given Engagement Channel or Content Offer will lead to a Closed Won outcome • ECHANNEL / CONTENT = # Closed Won / # Channel or Content InteracCons * 100% Channel ElasTcity Content ElasTcity SCWX SCWX SCWX SCWX
- 35. • Channel / Content Elas1city • Channel / Content Velocity • Mul1-touch ADribu1on of Channel / Content ROI Buyer CriTcal Path Alignment 35 BUYER CRITICAL PATH ALIGNMENT • Time from the point where a Prospect interacts with a given Engagement Channel or Content Offer to the point where (s)he becomes Closed Won • VELCHANNEL / CONTENT = AVERAGE # DAYS (Date of Closed Won – Date of Channel or Content InteracCons) Content Velocity Channel Velocity K P I : “ C H A N N E L / C O N T E N T V E L O C I T Y ”
- 36. • Channel / Content Elas1city • Channel / Content Velocity • MulT-touch AmribuTon of Channel / Content ROI Buyer CriTcal Path Alignment 36 BUYER CRITICAL PATH ALIGNMENT K P I : “ C H A N N E L / C O N T E N T E L A S T I C I T Y ” • Distributing the results from a Closed Won result across all of the Engagement Channels and/or Content Offers consumed during the course of the buyer's journey • ROI ATTRCHANNEL / CONTENT = 1 / Total # of Channel or Content InteracCons * $ Spend per Channel or Content MulT-touch Analysis SCWX SCWX
- 37. MulT-touch AmribuTon / ROI • Channel / Content Elas1city • Channel / Content Velocity • MulT-touch AmribuTon of Channel / Content ROI Buyer CriTcal Path Alignment 37 BUYER CRITICAL PATH ALIGNMENT K P I : “ C H A N N E L / C O N T E N T E L A S T I C I T Y ” • Distributing the results from a Closed Won result across all of the Engagement Channels and/or Content Offers consumed during the course of the buyer's journey • ROI ATTRCHANNEL / CONTENT = 1 / Total # of Channel or Content InteracCons * $ Spend per Channel or Content
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- 39. 39 REVENUE IMPACT ~ 6 5% S A Y ‘ P I P E L I N E ’ / ‘ R E V E N U E S ’ A R E T O P M E A S U R E S O F S U C C E S S Source: ANNUITAS, Inc., “2016 B2B Enterprise Demand Genera1on Survey.” 11 What is your PRIMARY measure of success for Demand Generation programs/campaigns? This ind departm set of K accurat Opportuniti Opens, Clic New Activi No Consist 15% Revenue Generated, 20.4% Net New Leads, 16.8% Qualified Deliver Pipeline Generated, 23.9% Pipeline Generated 23.9% Revenue Generated 20.4% Net New Leads 16.8% Qualified Leads Delivered 15% Opportunities Delivered 8% Opens, Clicks, Impressions, etc. 6.2% New Activity at Known/Target Accounts 3.5% No Consistent Measurement 3.5% Other 2.7% As in years past, the measurements that are being applied to demand generation are not aligned to what respondents stated as their overall objectives. While the measurement of contribution to pipeline and revenue are an indication of a quality lead, 15% of firms stated that they have a separate metric for quality leads (a 14% decrease from last years survey) delivered yet 81% it was their number one goal. D E M A N D G E N E R AT I O N O V E R V I E W
- 40. 40 REVENUE IMPACT T H E E I G H T ‘ C O R E K P I s ’ F O R O P T I M I Z I N G D E M A N D • Engaged-to-Qualified Lead • Qualified Lead-to- Opportunity • Engaged-to-Closed Won • Pipeline/Revenue Marke1ng Sourced • Pipeline/Revenue Marke1ng Influenced • Channel / Content Elas1city • Channel / Content Velocity • Mul1-touch ADribu1on of Channel / Content ROI Demand CreaTon Efficiency Buyer CriTcal Path Alignment Revenue Impact
- 41. • Pipeline/Revenue MarkeTng Sourced • Pipeline/Revenue Marke1ng Influenced Revenue Impact 41 REVENUE IMPACT KP I : “ P I P E L I N E / R E V E N U E M A R K E T I N G S O U R C E D ” • Tracking the pipeline Opportunities and Closed Won revenue that are originally attributable to a marketing interaction • CONTRDEMAND = # DG Sourced OpportuniCes (Closed Won) / # Total OpportuniCes (Closed Won) * 100%
- 42. • Pipeline/Revenue MarkeTng Sourced • Pipeline/Revenue Marke1ng Influenced Revenue Impact 42 REVENUE IMPACT BE N C H M A R K S : “ P I P E L I N E / R E V E N U E M A R K E T I N G S O U R C E D ” B2B Benchmark Targets • Direct-response / ‘Push’ demand generation: 2.5-6.5% • Perpetual DG / ‘Buyer-pull’ demand generation: 6.5-20%
- 43. • Pipeline/Revenue Marke1ng Sourced • Pipeline/Revenue MarkeTng Influenced Revenue Impact 43 REVENUE IMPACT KP I : “ P I P E L I N E / R E V E N U E M A R K E T I N G I N F L U E N C E D ” • Tracking the pipeline Opportunities and Closed Won revenue that are originally attributable to a marketing interaction • CONTRDEMAND = # DG Influenced OpportuniCes (Closed Won) / # Total OpportuniCes (Closed Won) * 100%
- 44. • Pipeline/Revenue Marke1ng Sourced • Pipeline/Revenue MarkeTng Influenced Revenue Impact 44 REVENUE IMPACT BE N C H M A R K S : “ P I P E L I N E / R E V E N U E M A R K E T I N G I N F L U E N C E D ” B2B Benchmark Targets • Direct-response / ‘Push’ demand generation: 4-20% • Perpetual DG / ‘Buyer-pull’ demand generation: 15-60% 3-6x sourced 3-6x sourced
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- 47. 47 OPERATIONALIZING OPTIMIZATION H O W C A N Y O U D R I V E C O N T I N U O U S O P T I M I Z A T I O N ?
- 48. • Full, closed-loop ‘point visualizaTon’ of performance § Focus on content, channel, LDT and sales ‘levers’ § Iden1fy how/where incremental adjustments can impact the en1re lead-to-revenue equa1on 48 OPERATIONALIZING OPTIMIZATION H O W C A N Y O U D R I V E C O N T I N U O U S O P T I M I Z A T I O N ?
- 49. • Full, closed-loop ‘point visualizaTon’ of performance § Focus on content, channel, LDT and sales ‘levers’ § Iden1fy how/where incremental adjustments can impact the en1re lead-to-revenue equa1on • Cadence of review and opTmizaTon acTon items § Bi-monthly § Monthly § Quarterly 49 OPERATIONALIZING OPTIMIZATION H O W C A N Y O U D R I V E C O N T I N U O U S O P T I M I Z A T I O N ?
- 50. • Full, closed-loop ‘point visualizaTon’ of performance § Focus on content, channel, LDT and sales ‘levers’ § Iden1fy how/where incremental adjustments can impact the en1re lead-to-revenue equa1on • Cadence of review and opTmizaTon acTon items § Bi-monthly § Monthly § Quarterly • Governance and accountability – with some ‘reciprocity’ § Marke1ng § Sales § Finance 50 OPERATIONALIZING OPTIMIZATION H O W C A N Y O U D R I V E C O N T I N U O U S O P T I M I Z A T I O N ?
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