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Demand generation project 
Business case blueprint
"Half the money I spend on advertising is wasted, the trouble is I don't know which half." 
John Wanamaker, 1838 - 1922
Executive Summary 
•The B2B Buyer has changed: need to pro- actively engage around educational topics 
•Sales & Marketing ...
Current situation The Changing B2B Buyer 
•Buyers are seeking and finding more information on their own—they’re in control...
The B2B lead development gap 
•Lead Nurturing, Lead Scoring, Lead Routing and Lead Monitoring close the gap in the middle ...
Current situation B2B CMO & CSO pain points 
•An average B2B organization experiences a 3.9 percent conversion rate betwee...
Existing sales & marketing infrastructure limitations 
•CRM systems see only very limited part of customer behavior. 
•ERP...
Demand generation tools 
9 
•Sales and marketing alignment 
•Customer personas 
•Lead scoring 
•Lead nurturing 
•Lead recy...
Business case assumptions. 
•Average sales (or Customer Lifetime Value): 110 000 zl, lead acquisition cost 1000 zl, margin...
Demand generation and marketing automation facts not considered as business case assumptions. 
11 
•Companies that excel a...
Real demand generation and marketing automation outcomes not considered as business case assumptions. 
12 
McAfee (Intel c...
Prospect acquisition 
13 
Marketing channels Prospects Conversion rate 
Prospects to MQL 
Costs Cost per prospect Velocity...
Revenue funnel 
14 
business case scenario 
Marketing AverageAfter implementationBest PractiseNo of prospects (inquires)10...
Costs & ROI calculation 
15 
Marketing costs Average After implementation Best Practise 
Prospects acquisition 200 000 200...
Market 
16 
19% of B2B organizations are planning to 
implement marketing automation and another 
17% are expanding their ...
Customers (for vendors & consultants) 
17
Ekspert ds. projektów generowania popytu, automatyzacji marketing oraz zarządzania przychodami. Od 1998 doradza firmom 
w ...
Thank You 
19
Back up slides 
20
The Value of Lead Nurturing 
Lead Nurturing helps turn more inquiries into qualified leads and decreases cost per qualifie...
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Demand generation business case blueprint

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Demand generation business case blueprint

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Demand generation business case blueprint

  1. 1. Demand generation project Business case blueprint
  2. 2. "Half the money I spend on advertising is wasted, the trouble is I don't know which half." John Wanamaker, 1838 - 1922
  3. 3. Executive Summary •The B2B Buyer has changed: need to pro- actively engage around educational topics •Sales & Marketing need to be aligned more closely, creating a seamless buying process •Lead management provides a dramatic ROI: many benefits, low risk, modest investment •After right implementation there is an opportunity to turn marketing into a revenue driver rather than a cost center. 4 “Nurtured leads produce, on average, a 20 percent increase in sales opportunities versus leads that are not nurtured.”
  4. 4. Current situation The Changing B2B Buyer •Buyers are seeking and finding more information on their own—they’re in control •Search engines and vendor Web sites are top information sources in the buying process •To drive revenue, marketers must become more adept at identifying sales-ready leads and nurturing the remainder •Vendors need to interact with prospects before the sales conversation, by providing relevant information that is relevant in the earlier stages of the buying process Highlights from Enquiro’s BuyerSphere Project: •Almost 50% of B2B buyers starts their buying process with online research •Talking to vendors of often only the 4th step 5 Order of Things – High Consideration 50% 37.5% 25% 12.5% 0% 1st 2nd 3rd 4th 5th Online Research Talk to Users Talk to Vendors
  5. 5. The B2B lead development gap •Lead Nurturing, Lead Scoring, Lead Routing and Lead Monitoring close the gap in the middle of the funnel •Improve the dynamics of your revenue cycle to convert more potential customers into customers 6 Current marketing focus Current sales focus The B2B lead Development gap Issue 1: Marketing hands off Leads too early. Unqualified Leads waste sales’ time. Issue 2: Sales cherry picks leads, letting longer-time-frame leads leak out. Issue 3: Marketing spends More to recapture lost leads. Reach Interest Desire Convert Enrich Retain Warm leads leak out Lead Management Closes the Gap in The Middle of the Funnel Source: October 2006, Best Practices “Improving B2B Lead Management” Current situation
  6. 6. Current situation B2B CMO & CSO pain points •An average B2B organization experiences a 3.9 percent conversion rate between inquiries and marketing qualified leads. •61% of B2B marketers send all leads directly to Sales; however, only 27% of those leads will be qualified. (Source: MarketingSherpa). •50% of leads are qualified but not yet ready to buy. (Source: Gleanster Research). •63% CMO expect that ROI will become main marketing effectives indicator but only 44% of them think that they are read for it. (Source: IBM CMO 2011 Study) Current lead program 7 Future lead program
  7. 7. Existing sales & marketing infrastructure limitations •CRM systems see only very limited part of customer behavior. •ERP systems see only historical and customers data. •Company webpage internal owner is blind because prospects visits are not recognized and tracked. •E-mail marketing platforms don’t see real customer engagement and e-mails are not delivered in right time with right content. 8 “Companies that excel at lead nurturing are able to generate 50% more sales-ready leads at 33% lower cost per lead.”
  8. 8. Demand generation tools 9 •Sales and marketing alignment •Customer personas •Lead scoring •Lead nurturing •Lead recycling •Marketing automation •Pipeline generation, revenue funnel •Content marketing •B2B Social media marketing
  9. 9. Business case assumptions. •Average sales (or Customer Lifetime Value): 110 000 zl, lead acquisition cost 1000 zl, margin 30%. •Conversion rate between inquiries (prospects) and marketing qualified leads (MQL): average 3.9 strong processes 5.8 best practice 10.* •Conversion rate between MQL and sales accepted lead (SAL): average 58 strong processes 66 best practice 75.* •Conversion rate between SALs and sales qualified leads (SQLs): average 49 strong processes 56 best practice 61.* •Conversion rate between SQL and closed business: average 23 strong processes 27 best practice 31.* 10 “Companies that excel at lead nurturing are able to generate 50% more sales-ready leads at 33% lower cost per lead.” * SiriousDecisions Field Marketing 2.0: The Heart of Growing Conversion Rates, 2008
  10. 10. Demand generation and marketing automation facts not considered as business case assumptions. 11 •Companies that excel at lead nurturing are able to generate 50% more sales-ready leads at 33% lower cost per lead. (Source: Forrester) •Nurtured leads make 47% larger purchases than non- nurtured leads. (Source: The Annuitas Group) •Companies that automate lead management see a 10% or greater increase in revenue in 6-9 months. (Source: Gartner Research)
  11. 11. Real demand generation and marketing automation outcomes not considered as business case assumptions. 12 McAfee (Intel company) 35% number of leads reduction with four-fold lead to opportunity conversion rate increase. PerkinElmer (healthcare) conversion rates have increased 99% over a 6 month period. Hear and Play Music (music lessons) 416% increase in customer lifetime value. Opsview (software company) bookings in the form of revenue have increased 178% since marketing automation was implemented. Arrow S3 (telecommunication) Marketing funnel doubled in size, increase of 28% in closed-won opportunities, opportunities increased 47%.
  12. 12. Prospect acquisition 13 Marketing channels Prospects Conversion rate Prospects to MQL Costs Cost per prospect Velocity Website inbound 2 000 12% 10 000 5 18 Online Ad 1 500 5% 50 000 33 30 Trade Show 300 2% 40 000 133 42 Webinar 600 3% 5 000 8 32 Partner 400 10% 20 000 50 50 Sponsorship 200 2% 30 000 150 54 Organic – Google 2000 3% 0 0 32 SEO / CEM 2500 5% 45 000 18 39 Not Available 500 1% 0 0 76 TOTAL 10 000 200000 Communication campaign cost: 200 000 zl Total prospect acquisition: 10 000
  13. 13. Revenue funnel 14 business case scenario Marketing AverageAfter implementationBest PractiseNo of prospects (inquires)10 00010 00010 000Conversion rates Prospects vs. MQL3,9%5,8%10,0% No MQLs3905801000MQL vs. SAL58%66%75% No SAL226383750SalesConversion rates SAL to SQL49%56%61% No SQL111214458SQL to Wins23,0%27,0%31,0% No Customers2557141Customer Lifetime Value 110 000110 000110 000Total revenue2 750 0006 270 00015 510 000
  14. 14. Costs & ROI calculation 15 Marketing costs Average After implementation Best Practise Prospects acquisition 200 000 200 000 200 000 Department costs allocation 50 000 50 000 50 000 Software and IT costs 0 15 000 15 000 Campaign implementation 0 25 000 25 000 Total marketing costs 250 000 290 000 290 000 Sales costs Per lead acquisition cost 1 000 1 000 1 000 Total lead costs 25 000 57 000 141 000 Department costs allocation 150 000 150 000 150 000 Total sales costs 175 000 207 000 291 000 Total costs 425 000 497 000 581 000 ROI calculation Average After implementation Best Practise Total revenue 2 750 000 6 270 000 15 510 000 Revenue margin 30% 30% 30% Profit 825 000 1 881 000 4 653 000 Campaign costs 425 000 497 000 581 000 Total profit 400 000 1 384 000 4 072 000 ROI -6% 178% 601%
  15. 15. Market 16 19% of B2B organizations are planning to implement marketing automation and another 17% are expanding their usage. Adoption of these tools will expand beyond technology companies . 20% of manufacturers, 20% of financial services firms, and 18% of business and professional services firms plan to implement marketing automation. 19% 17% New implementations Expanding usage 20% 20% 18% manufacturers financial services firms business and professional services According to Forrester Q4 2011 B2B Marketing Organizations And Investments Survey:
  16. 16. Customers (for vendors & consultants) 17
  17. 17. Ekspert ds. projektów generowania popytu, automatyzacji marketing oraz zarządzania przychodami. Od 1998 doradza firmom w zakresie komercyjnego wykorzystania internetu. Posiada doświadczenie z wielu branż, firm różnej wielkości oraz rynków B2B i B2C, w tym jako szef marketingu w UPS Polska, Zastępca kierownika działu marketingu w T-Mobile (Era). Prowadził również interaktywną agencję reklamową oraz marketing portalu Onet.pl. Śledź go na Twitterze @Ment_adventure Grzegorz Urban E-mail: urban.grzegorz@gmail.com Mobile: +48690024400
  18. 18. Thank You 19
  19. 19. Back up slides 20
  20. 20. The Value of Lead Nurturing Lead Nurturing helps turn more inquiries into qualified leads and decreases cost per qualified lead Conversion: Inquiry to Qualified Lead Cost per Inquiry Cost per Qualified Lead Without Nurturing 27% $50 $185 With Nurturing 40% $50 $125 Source: actual data from software vendor 50% increase 21

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