Introduction to Demand Generation
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We’re going back to the basics. Watch Joe Paone, Director of Demand Generation for the Commercial Business at Marketo, for this short, easy-to-digest, and actionable 15-minute webinar to learn the fundamentals of demand generation marketing. He'll define the metrics, discuss the tactics, and give you the essentials you need to understand and implement an effective demand generation strategy.
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Introduction to Demand Generation
- 1. Introduction to Demand Generation Joe Paone Director, Marketing Marketo
- 2. • This webinar is being recorded! Slides and recording will be sent to you after the webinar concludes. • Have a question? Use the chat box and I’ll follow up with you after the webinar. • Posting to social? Use our hashtag - #mktgnation • There is a brief survey after the webinar Housekeeping Proprietary & Confidential
- 3. Agenda • Demand generation overview • Developing your strategy • Marketing tactics • Measurement and analytics Proprietary & Confidential
- 4. Vocabulary • MQL: marketing qualified lead • SQL: sales qualified lead • POR: plan of record • TAM: total addressable market • Anonymous: people who have visited your website, but have not identified themselves • New Names: net new name into your database • Disqualified: lead that does not fit target market and will never buy your product/service • Targets: lead that fits based on their demographics • Opportunity: lead with an open sales opportunity attached to them • Closed Won/Lost: lead attached to an opportunity that is won/lost • ASP: average selling price • SLA: service level agreement • ARR: annual recurring revenue • ACV: annual contract value • TCV: total contract value • Win Rate: closed won/closed won + lost Proprietary & Confidential
- 5. Demand Generation Overview Marketing Functions/organizational structure: • Demand Generation • Digital Marketing • Social Media Marketing • Content Marketing • Creative Services • Product / Segment Marketing • PR / Corp Comms Demand generation describes the marketing process used to drive awareness and interest in a company’s products and/or services. • Field Events • Tradeshow / Corporate Events • Partner Marketing • Marketing Operations • Customer Marketing • Business Intelligence (BI) Proprietary & Confidential
- 6. Demand Generation Core Responsibilities • Programs • Optimization • Segmentation • Personalization • Nurture • Lead scoring • Predictive scoring • TAM analysis • Sales & Marketing Alignment Proprietary & Confidential
- 7. Where do you start? Image source: Photography Vox (http://www.photographyvox.com/) Proprietary & Confidential
- 8. 1 • Bookings Revenue 2 • # of Wins 3 • # of Opportunities 4 • Pipeline 5 • # of SQLs 6 • # of MQLs Start with the Goals Proprietary & Confidential
- 9. Broad-Reach Marketing (Inbound) Account Based Marketing (Outbound) Pick Your Strategy Proprietary & Confidential
- 10. Define Your Revenue Model w. Stages EARLY STAGE: TOFU PROGRAMS MID STAGE: MOFU PROGRAMS LATE STAGE: BOFU PROGRAMS Goal: Build awareness, attract the right audience, acquire new names Goal: Nurture until sales ready Goal: Help sales close deals. Retain. Grow. Proprietary & Confidential
- 11. Map Content to Buying Stage TOFU MOFU BOFU Proprietary & Confidential
- 12. Define Buyer Personas Exec. Sponsor Decision Maker Influencer Proprietary & Confidential
- 13. Segment Your Prospect Database Proprietary & Confidential
- 14. Map Messages & Products to Segments BUY -> Segments Message A Message B Message C Product 1 Product 2 Product 3 Segment 1 x x x Segment 2 x x x Segment 3 x x x x Segment 4 x Proprietary & Confidential
- 15. Choose the Programs Mix Proprietary & Confidential
- 16. Early-Stage Programs (TOFU) Goal: Build Awareness. Attract the Right Audience. Acquire New Names. Proprietary & Confidential
- 17. • PPC (pay per click) • SEO (search engine optimization) • Social Media (paid and organic) • Sponsored Events (live and online) • Content syndication • Sponsored emails • Partner co-marketing programs Early Stage Program Examples Proprietary & Confidential
- 18. Programs Drive Buyers to Your Web Site Proprietary & Confidential
- 19. Personalize Experience For Known & Anonymous Visitors Proprietary & Confidential
- 20. Mid-Stage Programs (MOFU) Goal: Engage. Convert. Proprietary & Confidential
- 21. Engagement Programs Priority 1 Interest C-Level ENT/MM Vertical Higher Ed Healthcare Financial Agency Sports C-Level SMB Competitor A B C D E Priority 2 Business Unit B2C* Pending Early Mid Late B2B (SMB) Pending Early Mid Late MM Pending Early Mid Late ENT* Pending Early Mid Late Marketo NOAM Prospect Nurture Example Proprietary & Confidential
- 22. • We created custom audiences in Facebook and Twitter to then serve ads to these audiences in addition to Emails. • The CTR on this multi-channel stream was 30-35% higher resulting in a higher lead velocity and higher conversion to MQL and opps Marketo Example: Multi Channel Nurture Proprietary & Confidential
- 23. Nurture with Triggered Accelerator Proprietary & Confidential
- 24. • Attends event • Logs into mobile app • Downloads content • Click email • Fills out form • Score is changed • Product interest • Inactivity IT Finance C-level Triggers – Can Listen for Behavior Proprietary & Confidential
- 25. Late-Stage Programs (BOFU) • Late stage content (analyst reports, ROI calculators) • Demos • Webinars • Case studies • Accelerators • Appointment setting • Events • Sales Follow-up Proprietary & Confidential
- 26. 1 • Cost per program 2 • New Names 3 • New Targets 4 • Cost per Target Early 1 • Program success 2 • Call connects 3 • # of meetings 4 • Marketing qualified leads (MQLs) Mid 1 • # of opportunities 2 • First Touch Ratio 3 • Multi Touch Ratio 4 • Pipeline Late Know What To Measure When Proprietary & Confidential
- 27. Measure What Matters Early Proprietary & Confidential
- 28. Quality vs. Quantity Proprietary & Confidential
- 29. Measure What Matters Late Proprietary & Confidential
- 30. • FT = First Touch • Acquisition Program = 100% of the credit • MT = Multi Touch • Programs in between acquisition and opportunity = divided credit FT vs. MT Event Clicked on email Attended Webinar Clicked on Email Downloaded Prospectus Opportunity Opened FT Program that generated prospect (acquisition program) = 100% of credit MT All programs that touched the lead and contributed to an opp = divided credit (20% each in this example) Example customer journey: Acquisition Program Opportunity Proprietary & Confidential
- 31. FT vs. MT Pipeline Channel FT Pipeline MT Pipeline PPC $410,000 $525,000 Webinars $220,000 $903,000 Content Syndication $325,000 $117,000 More efficient at pushing prospects through funnel More efficient at acquiring the right prospects Proprietary & Confidential
- 32. Thank you!
Editor's Notes
- And with that let’s get going!
- Much of what we are going to cover today is from a B2B perspective, but that is not to say that if you are a B2C company that you can’t leverage these same concepts for your demand generation. And, in the interest of making this webinar very basic, B2B (or business to business) means your business is focused on selling to other businesses and B2C (business to consumer) means that you business focuses on selling to individual consumers.
- A lot of these are B2B terms and a lot are Sales terms. As a demand generation marketer on the B2B side, you will most likely be working very closely with Sales so it is important that you understand the vernacular of that group.
- Demand generation can mean different things to different people, but essentially it describes the marketing process used to drive awareness and interest in a company’s products and/or services. Now, demand generation is typically it’s own function, but depending on the size of your company, there may be many other functions that you would work very closely with in demand gen to successfully execute programs. Functions like Digital Marketing, Content Marketing, Product & segment Marketing, etc. On top of that, if you are a B2B company or a B2C considered purchase company, in demand generation you would also work closely with pre-Sales, Sales, Sales operations, and Sales enablement.
- Demand generation core responsibilities involve building and executing specific programs based on the strategy you develop. In some cases you’ll build the programs yourself, in others, as I mentioned on the previous slide, you will work cross-functionally with other groups to build specific programs. A lot of times when we hear demand generation, we think direct response and that is certainly an aspect of it, but it also involves building and executing programs at each stage of the funnel (not simply just acquiring new names or new potential customers).
- When planning out your strategy for demand generation, you want to start at the end with the goals you are driving towards. When you know your sales bookings revenue goals, then calculate backwards to figure out how many wins (or closed won deals at your ASP you need), how many opportunities, Sales qualified leads and Marketing Qualified leads, and program successes. From there you can determine your program mix. This is your revenue funnel. If you have historical data on conversion rates between stages of the revenue funnel, you can figure out how many programs you need to run in order to generate these MQLs. If you don’t, start building benchmark data. Most companies will do this on a quarterly basis and will align their goals directly to their POR.
- Next, you’ll want to pick your strategy. Your strategy will depend on who you are selling to. Traditional demand generation marketing is often done in a broad reaching way – which you see depicted visually on the left side here. Most marketers try to get their word out….as far and wide as possible…. by leveraging a bunch of different marketing channels: from their website, to email to paid ads, earned media and so on. They also try to put out as much content as possible across these channels: eBooks, whitepapers, videos, case studies, etc. That broad reaching approach describes most of the modern B2B marketing we see today. The hope for these marketers is that by casting a very wide net, and by putting out as much content as possible, that it will act as a huge marketing magnet and draw in a large number of leads into your funnel. And of course, the more leads you have at the top of the funnel, the more wins you’ll generate at the bottom of the funnel. It’s all about going after a large swath of your buying market with a loud voice, and maximizing the volume of leads that go through the funnel. On the other hand, ABM is in many ways the opposite. It’s about getting all your resources - your program dollars AND your people (including your sales and marketing teams) - working together in a coordinated way to go after very specific accounts. It’s not about amplifying your voice across a wide swath of the market. It’s about taking a very direct approach to engage very specific target accounts.
- One thing that successful organizations have historically done well is break up the sales process into stages, and they often have the technology and operational processes to do this – and usually it is within the CRM system. They can then say “for my opportunities, I need this many at each stage in order to reach my desired outcome.” And since marketing is now responsible for a bigger portion of the revenue cycle, it’s important that marketing applies the same rigor to defining our stages of the revenue cycle that sales does for theirs. And this is the revenue cycle we use at Marketo, broken into 3 buckets, starting with TOFU, where leads enter the funnel, MOFU is middle of funnel, where the focus is on marketing getting leads ready to have a conversation with sales, and BOFU is bottom of funnel, once sales is engaged. This is central to everything we do at Marketo. We’ll walk through each of these stages in more detail in just a minute. Now, you may have different stages for your business, and that’s okay…the important thing is that you define them, marketing and sales sits down and agrees what they mean, what are the definitions for moving from one to another, and what are the business process and rules for responding at each stage…in other words SLAs
- Next, you’ll want to map your content to each stage of the funnel. Early stage contains content like blogs and infographics, mid stage contains content like buying guides and reports, and late stage contains content like demos and customer case studies. Now, not all content is created equal…obviously. Some content you will want to gate, while others you won’t. By Gate, we mean requiring a prospect fills out a form in order to access the content. Early stage content you won’t want to gate because you don’t want any barriers as your potential customers are learning about your products or services. Most mid stage content and some late stage content you will want to have gated, because by that point potential customers should know enough about your company that it won’t be intrusive to have them provide their information in exchange for valuable content. And because we are talking mid and late stage, the content truly is more valuable.
- Before you can choose your tactics and build your demand generation programs, you will need to define your buyer personas. This is typically done in conjunction with Product Marketing. You need to understand your audience and build profiles of the potential customers that you’ll be marketing to. You can start simply by building out personas based on roles or need/objectives of your audience. Over time, you’ll have an opportunity to ask your potential customers more detailed questions and use various listening tools to develop more robust profiles for your personas.
- Finally, you’ll want to segment your entire database based on demographic and firmographic information.
- This will allow you to map specific messages and products to the appropriate audience. After you have set up the basics, you can develop even more advanced and targeted segments taking into account: behavioral data, scoring, etc.
- Now that we have defined our goals, decided which strategy or strategies to deploy, understand our revenue model and how to map content to each stage, and have defined our personas and segmentation, we can determine our tactics. You’ll want to use a mix of programs designed to engage your potential customers across a variety of channels, including email, social media, events, direct mail, etc.
- Let’s start with early stage programs
- The objective with these type of programs is usually to drive people to your website.
- Since you are driving traffic to your website through these tactics, you’ll want to spend time and make sure your website is optimized for lead generation.
- One way to do that is to use personalization. Through the segmentations you built, you’ll be able to map relevant content to the relevant audience. This will usually require specific technologies in order to execute.
- Next, let’s look at mid stage programs.
- First and foremost, you’ll want to develop a nurture program. Here’s an example of how you can conceptually set one up….. The reason you want to do this is to be as relevant as possible and the more granular you can get, the better your message will be and the more it will resonate.
- An ideal situation, is to nurture based on your buyer’s behavior. Based on these inputs, you can send relevant information at the right time.
- Finally, late stage programs usually involve programs like marketing accelerators, appointment setting, and events.
- In order to understand how your programs are performing, you’ll need to measure everything you do. This includes early, mid and late stage metrics.