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Best practices in B2B marketing Canadian Marketing Association Jeff Lowe April 29, 2009 Is B2B marketing becoming obsolete? “Marketers Need a More Systematic Approach to demand Generation” “B2B Marketers Struggling to Integrate Web 2.0 Strategies Into Marketing Mix” “B2B marketers can no longer afford to emphasize lead volume over lead quality.” “Rapid Growth of Lead Databases Posing New Challenges For BtoB Marketers” “B2B marketing needs a makeover – NOW!” “How to avoid B2B Marketing Obsolescence: Community Marketing Transforms the Marketing Role” “B2B Marketers Fail the Community Marketing Test” “B-to-B Marketers Must Sharpen Measurement Tools” TELUS Business Solutions B2B marketers face different challenges than B2C Buying process characteristics • B2B buying requires complex orchestration of activities between multiple parties • B2B addressable market is a few thousand at best • Therefore, success is less about generating demand than fostering relationships B2C B2B Decision makers Individual Many Decision duration Short Long Purchase approval None Multilevel Product cost Low to medium High Pricing style Retail Negotiated, contractual Consideration Low to medium High Channels Retail, dealers Distributors, service providers. VARs Predominant Web usage Price compare/ purchase Gather information/ evaluate Short term Longer term Loyalty Five marketing best practices for B2B marketers Five best practices 1 New online media: 2 Demand management: 3 4 5 Enhance relationships with customers through social media strategies and online community marketing Move from generating demand to actually managing it. Loyalty: Quantify customer lifetime value and market to customers to advance them from retained, to satisfied, to loyal, to advocates. Integration: Use an integrated approach to marketing mix planning that leverages the unique strengths of traditional, interactive and social media. Measurement: Make quantitative measurement the foundation to accountability and closed-loop marketing. Five marketing best practices for B2B marketers Five best practices 1 New online media: 2 Demand management: 3 4 5 Enhance relationships with customers through social media strategies and online community marketing Move from generating demand to actually managing it. Loyalty: Quantify customer lifetime value and market to customers to advance them from retained, to satisfied, to loyal, to advocates. Integration: Use an integrated approach to marketing mix planning that leverages the unique strengths of traditional, interactive and social media. Measurement: Make quantitative measurement the foundation to accountability and closed-loop marketing. Prospects & decision makers rely on each other & the Web “When researching telecom products, how important are these media for informing your purchase decisions?” Media/information source Highly important Peer/WOM 36% Vendor Web Site 34% Trade/ Industry magazine Web Site 34% Consultants/VARs/SIs 21% Trade magazines/publications 20% Forums/communities 20% Trade shows and conferences 19% Blogs 15% Webinars or online events 14% Web 2.0: video, podcasts, Internet apps, RSS, etc. 14% Base: 2187 telecom and network decision makers Source: Enterprise And SMB Networks And Telecom. Survey, North America And Europe, Q1 2008 Social marketing in B2B: Where to start? TELUS Business Solutions Start by monitoring your share of voice Social media share of voice in the last 30 days Total number of posts based on 2971 conversations TELUS TELUS Business Solutions Example: A different kind of product launch TELUS Business Solutions Social media: Watching the story go viral 1 Jan 19: Agency invites MobileSyrup.com to the event via email Jan 22: MobileSyrup.com posts teaser blog BlackBerryRocks.com reposts story with link to Noordinaryphone.com TELUS Business Solutions Social media: Watching the story go viral 2 Jan 27: MobileSyrup.com posts 8350i launch announcement with pricing IntoMobile.com MBsTechNews.com BerryReview.com DejaTalk.com BlackBerryHomePage.com TopBlackBerryNews.com TheBlackBerryBlog.com TELUS Business Solutions Social media: Watching the story go viral Jan 28: MobileSyrup.com posts from launch party at AIM Autosport 3 (including a link to Noordinaryphone.com) BlackBerryNews.com PhonesReview.co.uk IntoMobile.com* MBsTechNews.com NewMobileTech.com CDMAandGSM.com TelephoneIssues.com NewTechDirectory.com CrackBerry.com* Mobeel.mobi Mippin.com TopBlackBerryNews.com* *With link to Noordinaryphone.com TELUS Business Solutions Online editorial outreach: Momentum building 70 Product and pricing announced to media Live blogging at media/blogger event held at AIM Autosport Number of Blog Posts 60 50 AIM Autosport video posted to YouTube 40 MobileSyrup.com posts teaser blog Engadget reviews BlackBerry Curve 8350i 30 Invitations distributed to bloggers and journalists 20 10 0 Dec. 28 Jan. 3 Jan. 4Jan. 10 Jan. 11 - Jan. 18 - Jan. 25 Jan. 17 Jan. 24 Jan. 31 TELUS Business Solutions Feb. 1 Feb. 7 Feb. 8 Feb. 14 Feb. 15 - Feb. 22 Feb. 21 Feb. 28 Mar. 1 Mar. 7 Results to date 16 media & bloggers attended the event (target was 10) 16 media & bloggers 113 blog posts attended the event 5 YouTube postings (target was 10) 7 online articles 113 blog posts “Today was no ordinary 1 forum posting 5 YouTube postings day for the folks at TELUS. With the launch of the highly 3anticipated print article 7 online articles BlackBerry 8350i, also came aposts by invitation 24 Twitter 1 forum posting only launch event, hosted at a unusual venue. This has to be one of the Over 10,000,000 impressions very first events I have been to; that successfully demonstrated ~$2M advertising value for 5% of the importance of the technology that is being celebrated.” TELUS Business Solutions 3 print article 24 Twitter posts the cost Over 10,000,000 impressions ~$2M advertising value for 5% of the cost “Here's a cool way to do up the launch event for a new smartphone... TELUS made official their BlackBerry Curve 8350i by holding the press event on location at AIM Autosport, a company (they race stuff fast stuff across North America) that takes advantage of the Push to Talk services offered by TELUS’ Mike system. Sweet. If you have 10 minutes to kill, it's a good vid to watch. Low key, but honest.” Key takeaway #1 With new social and online media, start by monitoring what is being said about you versus leaping into tactics TELUS Business Solutions Five marketing best practices for B2B marketers Five best practices 1 New online media: 2 Demand management: 3 4 5 Enhance relationships with customers through social media strategies and online community marketing Move from generating demand to actually managing it. Loyalty: Quantify customer lifetime value and market to customers to advance them from retained, to satisfied, to loyal, to advocates. Integration: Use an integrated approach to marketing mix planning that leverages the unique strengths of traditional, interactive and social media. Measurement: Make quantitative measurement the foundation to accountability and closed-loop marketing. The case for demand management Source: October 4, 2006, “Improving B2B Lead Management” report, Forrester Research Manage demand, don’t just generate it The old way GENERATE The new way INQUIRIES Total number of handraisers Unique metrics for current customers HAND OFF TO SALES CLOSED/WON BUSINESS? TELUS Business Solutions MARKETING QUALIFIED LEADS Definition through sales/marketing SLA Marketing deems ready for handoff SALES ACCEPTED LEADS Basic qualification tenets met Sales agrees to work leads SALES QUALIFIED LEADS Opportunity identified Now part of pipeline CLOSED/WON BUSINESS. Booked revenue IDs topline contribution Source: Sirius Decisions LEADS Results from a 2-week period Total Opt-ins (or Inquiries) Requires Nurturing MQL 429 297 132 Channel MQLs Unqualified Not Actioned Open Contacted SQL Total 132 5 26 44 42 15 So what? 6 10% Probability of closing 132 leads scored by marketing/sales as qualified 85% of leads accepted by within 8 hours 1 25% Probability of closing 297 marketing leads for nurturing – In past campaigns these would have been lost or passed over to sales as poor leads. 2 50% Probability of closing Closed loop reporting: marketing automation interface with sales automation 2 Closed TELUS Business Solutions 4 75% Probability of closing Key takeaway #2 All leads are not created equal. Collaborate with Sales on how to score leads, nurture inquiries, and track closed business TELUS Business Solutions Five marketing best practices for B2B marketers Five best practices 1 New online media: 2 Demand management: 3 4 5 Enhance relationships with customers through social media strategies and online community marketing Move from generating demand to actually managing it. Loyalty: Quantify customer lifetime value and market to customers to advance them from retained, to satisfied, to loyal, to advocates. Integration: Use an integrated approach to marketing mix planning that leverages the unique strengths of traditional, interactive and social media. Measurement: Make quantitative measurement the foundation to accountability and closed-loop marketing. So what are the key drivers of loyalty in B2B? The Marketing Leadership Council explored more than 100 marketing practices and capabilities commonly believed to contribute to customer loyalty. SAMPLE ATTRIBUTES TESTED FOR IMPACT ON LOYALTY TELUS Business Solutions SOURCE: Marketing Leadership Council Loyalty Survey, Marketing Leadership council research. The road to loyalty is through ‘Satisfaction Station’ The jury is still out. Attributes associated with eliminating dissatisfaction – while critical for satisfaction – seem to have no discernible impact on loyalty SELECT ATTRIBUTES THAT ARE NOT STATISTICALLY SIGNIFICANT • Responding promptly to customer concerns • Comprehensiveness of customer problem resolution process • Single point of contact for customer problem resolution • Formal protocol for follow-up with disloyal customers • Executive-level loyalty sponsorship teams • Frequency of account manager turnover • Resources allocated to customer problem resolution • Set realistic (not inflated) customer expectations “The road to Loyalty Town goes through Satisfaction Station” FIXING DISSATISFIERS IS SOURCE: Marketing Leadership Council Loyalty Survey, TABLESTAKES . Marketing Leadership council research. TELUS Business Solutions Drivers of customer loyalty Percentage of contribution to customer loyalty Drivers by percentage contribution to customer loyalty Long-term drivers of loyalty Short-term drivers of loyalty 52% 9% 19% 19% Company and brand impact Product and service delivery MLC1AUTL23 © 2009 Corporate Executive Board. All Rights Reserved. Value-toprice ratio Purchase experience with Sales Purchase experience loyalty drivers GREATEST DRIVERS OF LOYALTY Helps me avoid Supplier has widespread support across my organization potential land mines Helps me DECISION MAKERS issues and outcomes Collaborates with other suppliers Remains readily accessible Provides ongoing Portrays a realistic picture of purchase costs and difficulties advice or consultation Helps me Excels in diagnosing our specific needs valuable perspectives on the market Educates me on new Matches communications to my preferences Offers unique, navigate alternatives Helps me shorten the buying cycle Helps me improve my professional standing and meet KPIs quantify financial value Advocates for me within the organization WEAKEST DRIVERS OF LOYALTY Productively accelerates decision making WEAKEST DRIVERS OF LOYALTY MLC1AUTL23 © 2009 Corporate Executive Board. All Rights Reserved. Supplier is easy to buy from Supplier adjusts to our unique needs and specifications END-USERS AND INFLUENCERS Demonstrates a high level of professionalism GREATEST DRIVERS OF LOYALTY UNIVERSAL VALUE OF TEACHING While decisionmakers and endusers differ significantly on many loyalty drivers, both value suppliers’ ability to teach. Key takeaways 1 In response to a challenging economic environment, Sales and Marketing have aligned around a focus on customer loyalty – because it is the fastest, most profitable path to growth. 2 In the short-term, the customers’ purchase experience is, by far, the largest single driver of customer loyalty – larger than product, brand, service, or even price. 3 The most effective method for differentiating the purchase experience is to deliver teaching interactions that reframe the way a customer assigns value to areas where the supplier outperforms its competitors. 4 Accordingly, leading organizations create effective teaching interactions by addressing the following three key questions: •What should I teach my customers? •How do I enable sales reps to teach? •How do I increase customer demand for teaching? Stages of insight and the TELUS teaching tools that align Strategic facilitator high Stage 3 Benchmarker Stage 2 Time and effort required Researcher 6 SOURCES OF INSIGHT 5 TOOLS Stage 1 6 TOOLS Product pusher Stage 0 Strategic value 8 TOOLS Lead low with products, solutions and benefits Product selling TELUS Business Solutions Q: When do I use this? Q: When do I use this? Q: When do I use this? A: All accounts A: Top 10 to 20 accounts A: Key “must win” deals Consultative selling Key takeaway #3 The sales experience is the biggest driver of loyalty in B2B. Marketing’s role is to enable the sales force to teach. TELUS Business Solutions Five marketing best practices for B2B marketers Five best practices 1 New online media: 2 Demand management: 3 4 5 Enhance relationships with customers through social media strategies and online community marketing Move from generating demand to actually managing it. Loyalty: Quantify customer lifetime value and market to customers to advance them from retained, to satisfied, to loyal, to advocates. Integration: Use an integrated approach to marketing mix planning that leverages the unique strengths of traditional, interactive and social media. Measurement: Make quantitative measurement the foundation to accountability and closed-loop marketing. Integrated approach Programs Advertising Tactics Print/radio Sponsorships Online ads Email, direct mail Emotion Experience Relationship Events Sales interactions Online ads Web Customer buying cycle Web site Social marketing TELUS Business Solutions …because every buyer is a person. To truly engage that buyer, you need a coordinated mix. Individual tactics won’t achieve that. $ Integrated approach Awareness 5.6 million Impressions Sponsorships SEM/SEO Radio Print Online Ads Direct Mail Email Social Media Conversations Email/Direct Mail Response form Interest 142,000 Inquiries Web Site Request forms Search Engine Click Thru’s Event Request Card 3% conversion from impressions Telemarketing Response Desire Opt-in to Permission Based Email Database Action TELUS Business Solutions Leads to Sales Channels 5,000 Marketing Qualified Leads 3% conversion from Inquires 500 Sales 10% conversion rate from MQL Key takeaway #4 There is no “silver bullet” tactic. The key is to deploy tactics in an integrated and coordinated fashion. TELUS Business Solutions Five marketing best practices for B2B marketers Five best practices 1 New online media: 2 Demand management: 3 4 5 Enhance relationships with customers through social media strategies and online community marketing Move from generating demand to actually managing it. Loyalty: Quantify customer lifetime value and market to customers to advance them from retained, to satisfied, to loyal, to advocates. Integration: Use an integrated approach to marketing mix planning that leverages the unique strengths of traditional, interactive and social media. Measurement: Make quantitative measurement the foundation to accountability and closed-loop marketing. Marketing dashboard hierarchy Organizational Strategy Marketing Goals & Objectives Marketing Activities Focus only on marketing investments strategically important to the company – then execute, measure and optimize. TELUS Business Solutions TELUS Business Solutions marketing dashboard 2009 Marketing Programs and Customer Communications Dashboard – January YTD Imperative Weight Imperative 1 Imperative 2 Imperative 3 Imperative 4 TELUS Business Solutions KPI 2008 Actual 2009 Target Key takeaway #5 When it comes to measurement, define marketing objectives together with non-marketing executives and in context of broader organizational objectives TELUS Business Solutions Summary: Key takeaways 1. Social media strategies. With new social and online media, start by monitoring what is being said about you versus leaping into tactics. 2. Demand management. All leads are not created equal. Collaborate with sales on how to score leads, nurture inquiries, and track closed business. 3. Loyalty. The sales experience is the biggest driver of Loyalty in B2B. Marketing’s role is to enable the sales force to teach. 4. Integration. There is no “silver bullet” tactic. The key is to deploy tactics in an integrated and coordinated fashion. 5. Measurement. When it comes to measurement, define marketing objectives together with non-marketing executives and in context of broader organizational objectives. TELUS Business Solutions