How to Optimize Demand - The CMOs Next Frontier

OPTIMIZING DEMAND
The CMO’s Next Fron1er

Adam Needles – Chief Strategy Oﬃcer, ANNUITAS, Inc. – TwiDer: @abneedles

ANNUITAS CLIENTS WITH MATURE,
OPTIMIZED PERPETUAL DEMAND
GENERATION PROGRAMS DELIVER
LEAD-TO-REVENUE RESULTS THAT
ARE 4-10X INDUSTRY AVERAGES.
TwiDer: @abneedles

HOW CAN YOU OPTIMIZE YOUR
DEMAND GENERATION EFFORTS SO
THAT THEY OUT-PERFORM?
TwiDer: @abneedles

DEMAND GENERATION MATURITY
TwiDer: @abneedles

5
O N L Y 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.”

•  Direct response
•  Vendor push
•  Outbound oriented
•  Periodic, short-term
•  “Perpetual Demand GeneraTon”
•  Buyer pull
•  Inbound oriented
•  Always on, sustainable
6
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
G E T T 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
+

OPTIMIZING DEMAND
TwiDer: @abneedles

9
DEMAND GENERATION
A N A L 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.

WHAT DO DEMAND GENERATION
KPIs NEED TO TELL US?
TwiDer: @abneedles

11
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 ?

•  How can we be sure of the quality and
sustainability of our demand genera1on
eﬀorts?
12
OPTIMIZING DEMAND

eﬀorts?
13
OPTIMIZING DEMAND
•  Demand CreaTon Eﬃciency

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

eﬀorts?
15
OPTIMIZING DEMAND
•  Buyer CriTcal Path Alignment

eﬀorts?
•  How can we be sure our marke1ng eﬀorts
are really providing ‘net lic’ to pipeline and
revenue?
16
OPTIMIZING DEMAND

eﬀorts?
•  How can we be sure our marke1ng eﬀorts
are really providing ‘net lic’ to pipeline and
revenue?
17
OPTIMIZING DEMAND

•  Revenue Impact

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
Marke1ng Influenced
•  Channel / Content Elas1city
•  Channel / Content Velocity
•  Mul1-touch ADribu1on of
Channel / Content ROI
Demand CreaTon Efficiency Buyer CriTcal Path Alignment Revenue Impact

DEMAND CREATION EFFICIENCY
TwiDer: @abneedles

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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
Survey.”

21
Opportunity
Marke1ng Sourced

22
Opportunity
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
Opportunity
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
B2B Benchmark Targets
•  Direct-response / ‘Push’ demand generation: 4-6%
•  Perpetual DG / ‘Buyer-pull’ demand generation: 8-16%

24
Opportunity
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%
43.5% 45.7%

25
Opportunity
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
•  Direct-response / ‘Push’ demand generation: 30%

26
Opportunity
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
Opportunity
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%
0.44% 3.58%

28
Opportunity
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
•  Direct-response / ‘Push’ demand generation: 0.2-0.85%

BUYER CRITICAL PATH ALIGNMENT
TwiDer: @abneedles

30
B U Y E 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.

“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
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
B U Y E 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
Opportunity
Marke1ng Sourced

•  Channel / Content ElasTcity
Buyer CriTcal Path Alignment
34
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
•  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 ”

•  MulT-touch AmribuTon of
36
•  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

MulT-touch AmribuTon / ROI
•  MulT-touch AmribuTon of
37
•  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

REVENUE IMPACT
TwiDer: @abneedles

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
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
REVENUE IMPACT
Opportunity
Marke1ng Sourced

MarkeTng Sourced
Revenue Impact
41
REVENUE IMPACT
K P 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%

MarkeTng Sourced
Revenue Impact
42
REVENUE IMPACT
B E 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 ”
•  Direct-response / ‘Push’ demand generation: 2.5-6.5%
•  Perpetual DG / ‘Buyer-pull’ demand generation: 6.5-20%

Marke1ng Sourced
MarkeTng Inﬂuenced
Revenue Impact
43
REVENUE IMPACT
K P 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%

Marke1ng Sourced
MarkeTng Inﬂuenced
Revenue Impact
44
REVENUE IMPACT
B E 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 ”
•  Direct-response / ‘Push’ demand generation: 4-20%
3-6x
sourced
3-6x
sourced

‘OPERATIONALIZING’ OPTIMIZATION
TwiDer: @abneedles

HOW CAN YOU DRIVE CONTINUOUS
OPTIMIZATION?
TwiDer: @abneedles

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 ?

•  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

•  Cadence of review and opTmizaTon acTon items
§  Bi-monthly
§  Monthly
§  Quarterly
49

•  Cadence of review and opTmizaTon acTon items
§  Bi-monthly
§  Monthly
§  Quarterly
•  Governance and accountability – with some ‘reciprocity’
§  Marke1ng
§  Sales
§  Finance
50

THANK YOU. QUESTIONS?
Adam Needles
Chief Strategy Oﬃcer, ANNUITAS, Inc.
adamneedles@annuitas.com
617-413-6087
TwiDer: @abneedles

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