Disjointed, Chaotic, Confused, In Flux: Do These Words Describe Your Demand Generation Efforts?

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Jeff Ernst

In several of my recent reports, I've made claims about the current state of B2B demand generation. Call me Mr. Doom And Gloom, but from my perch, and from my experience in B2B sales and marketing, it's not a pretty picture. To back up my claims, I decided to survey B2B marketing and sales leaders to gather some data points on the real state of affairs.

Just for kicks, I asked people to give a word or phrase that summarizes their view of the state of demand generation, and the word that appeared most frequently in the responses was "disjointed." Hmmm, how fitting. And there's no shortage of contexts for how that word fits. Disjointed between sales and marketing, disjointed channels, disjointed messages. Shall I continue or enough said? Some of the other words and phrases offered are:

  • Challenging
  • Chaotic
  • Confused
  • Evolving
  • In flux
  • In transition
  • Too much noise

Some of the other findings? 

  • In 42% of companies, marketing creates leads and sales tools and throws them over the wall to sales.
  • Fewer than one-fourth of respondents have defined a lead-to-revenue management process that their marketing and sales teams follow.
  • Forty-four percent of respondents say that prospects view communications from them as "disjointed" or "hit or miss."

The good news is that B2B marketing and sales leaders are planning to make big changes over the next 12 months to address many of today's shortcomings. For more stats and insight into what their plans are, see my report The State Of B2B Demand Generation: Disjointed.

It's Time To Take A Stand . . . In Your Marketing

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Jeff Ernst

When marketing leaders come to me looking for feedback on their messaging and value proposition, it usually sounds like this (with blanks inserted to protect the guilty):

“We were founded in 19__. We’re the leading provider of _____ products serving the ____ industry. Our products are faster, more reliable, easier to use, more full-featured, and deliver better ROI than any of our competitors.” 

Painful to listen to. Marketers have to realize that in the age of the customer, business buyers don’t “buy” your product; they “buy into” your approach to solving their problem. Read that last sentence again. Your products aren’t as unique as you think. In fact, in most markets, the products and services are fairly commoditized. Buyers want to do business with firms that share their outlook on the world and have philosophies on solving key problems that align with their own. Yet so many marketers only talk about their features and benefits.

What do you do about it? Establishing a position of thought leadership in your market is becoming the next arena for differentiation in B2B marketing. When done right, thought leadership marketing is a way to stand out from the competition, create interest, and earn the trust of potential buyers early in their problem-solving process.

Of course, it is easier said than done. Many companies already practice content marketing, but thought leadership marketing takes it much further:

  • It doesn’t just educate people on an issue; it provides your firm’s strong point of view and insightful thinking on the issue. It is provocative, challenging conventional thinking.
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Four Counterintuitive Mindset Shifts Required To Advance State Of Demand Generation

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Jeff Ernst

When I was asked to give a keynote at DemandCon on the past, present, and future of demand generation, I wondered what new wisdom I could share about the past and present. We've all lived it; we all know how bad marketing and sales teams have been at generating demand. So I shared some research data that validates what we know about the poor current state and then shared four counterinituitive mindset shifts that marketing and sales leaders need to make if they want their future to be rosier than today:

  • Fight funnel vision.
  • Stop trying to align marketing with sales.
  • Don't talk about what you do.
  • Take a stand.

You can watch the presentation, or click Watch A Segment to go directly to The Future:

Announcing The 3rd Annual Forrester B2B Groundswell Awards

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Kim Celestre

[Co-authored by Zachary Reiss-Davis]

Welcome to the kick-off for the third annual Forrester B2B Groundswell Awards! We’re excited to again read all of your great submissions and examples of innovation in B2B social media marketing. 

Josh Bernoff, one of the original authors of Groundswell, already wrote a great blog post highlighting the history of the awards that I encourage you to go read. 

For the past two years, we highlighted the B2B winners in:

Best practice research reports . . .

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Targeting - Guiding Principle Number One For Tech Marketers From 100,000 Customer Interviews

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Daniel Klein

One of the reasons I enjoy working at Forrester is the unique opportunity to turn data into actionable insights that tech marketers can use to drive more revenue for their companies by increasing the efficiency and effectiveness of their marketing.  

Based on this data and our work with clients, five simple but powerful guiding principles have emerged around targeting, marketing vehicles, content strategy, and messaging that all tech marketers can apply. Over the next five weeks, I’ll be sharing them with you via this blog, one per week on Tuesday mornings, starting today.

Guiding Principle Number One: Targeting

 

We all know that high-consideration technology purchases at medium and large enterprises involve multiple stakeholders. However, all too often, marketers and/or sales associate a disproportionate amount of influence to one or two particular influencers; for example, the CIO or line of business (LOB) professional. The reality is that no one influencer has more than 30% of the total power through the purchase process. You must ensure that you are allocating your marketing programs proportionally across all of the appropriate influencers and that you don’t get fixated on simply engaging one or two influencers, thinking that they control all of the necessary power.

So, the next time you are deciding whom to target, remember the 30% rule — it will serve you well.

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Marketing Automation And Marathons: The Will To Win Means Nothing Without The Will To Prepare

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Jeff Ernst

While trudging my way through the last few miles of the Boston Marathon last month, I couldn’t help thinking about the similarities between tackling a 26.2-mile running endeavor and implementing marketing automation.

Imagine if you decided to run your first marathon, went over to your local running store to buy those high-performance running shoes, stuffed a few power gels in your pocket, and showed up at the starting line? Well, chances are you wouldn’t achieve your goal. You need to be prepared for how to pace, hydrate, and fuel yourself. You need to spend the time to condition your muscles for the abuse of several hours of rigorous use. And you want to have people along the route to support you.

Over the past few months, I’ve interviewed more than 25 marketing and sales leaders to learn about their experiences in implementing marketing automation platforms. Most of them are using the technology to make it easier to do things they were already doing, like putting out a monthly newsletter, inviting people to their webinars, or capturing more leads and buyer behaviors on their website. 

While this is valuable, it just scratches the surface of what marketing automation can do, which is to help you create a demand management machine that supplies a steady stream of high-quality nurtured leads to the sales organization, a high percentage of which convert to pipeline opportunities. Getting to that outcome takes a lot of preparation because it takes marketing and sales teams beyond things they’ve done before.

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Salesforce.com Acquires Radian6, Takes A Giant Step Closer To Social CRM

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Jeff Ernst

Cloud computing and CRM giant salesforce.com has acquired Radian6 to add real social media monitoring and engagement to its suite of clouds, in a deal valued at $326 million. Why do I say "real"? Salesforce.com has been talking about social CRM and the importance of feeding social media mentions into sales and service processes for quite some time, but this acquisition will let salesforce.com deliver on that vision in a much bigger way. 

I wrote about social listening platforms in my February report on "Emerging Technologies B2B CMOs Should Watch In 2011." CMOs should take notice of this acquisition because it represents the first foray for salesforce.com into capabilities that CMOs at large enterprises should care about, and since salesforce.com is aggressively trying to increase its penetration in the large-enterprise market, it could be followed by other additions to form the strikingly missing marketing cloud, namely marketing automation to support lead nurturing and closed-loop marketing. Salesforce.com will also likely take Radian6, or a version it ports to the Force.com platform, to its bread-and-butter midmarket, making social listening a bigger part of the marketing strategy for smaller and midsize firms, as it should be. 

Here are a few valuable use cases that will result from this marriage that can improve sales and marketing effectiveness and/or the customer experience your firm delivers:

  • Find more leads. Marketers can listen for buying signals in the postings and discussions on social sites, blogs, and communities and use these signals to identify new warm leads to add to the system and start marketing to these people. 
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What Do B2B Marketing Budgets And Charles Dickens Have In Common?

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Jeff Ernst

"Take nothing on its looks; take everything on evidence. There's no better rule." That was the advice Mr. Jaggers gave to Pip in the Charles Dickens classic Great Expectations. The same advice goes to B2B marketing leaders, because this is how your CEO, CFO, and other executive team peers are looking at your marketing plans.

Forrester's recent Q4 2010 North American And European B2B Marketing Organizations And Investments Online Survey shows that marketing budgets have grown by 6.7% in 2011. Seventy-eight percent of companies in our survey have increased their marketing budgets this year, and almost one-third have increased by more than 10%. Companies on average are spending almost 3% of revenue on marketing.

But the higher budgets come with "great expectations." CMOs need to spend more time allocating, managing, adjusting, and defending their budgets than ever before. When we look at how CMOs are allocating their budgets, we see that:

  • They are shifting some investment from lead origination to lead nurturing to further develop leads generated from previous efforts.
  • Although product marketing and product management remain the highest areas of investment, marketers plan to shift budget from those areas to community and interactive marketing to focus their messages on solving their customers' problems.
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Recognize When Technology Can Raise The Bar Of Customer Engagement

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Jeff Ernst

CMOs need to be orchestrating the brand experience across channels, departments, and the customer life cycle, but it can be hard to keep up with emerging technologies that can enable significant improvements in how your firm engages customers. To help you do this, I've started a series of reports for B2B CMOs and marketing leaders to highlight technologies that they should have on their radar over the next 12 to 18 months.

We select technologies that meet the following criteria: 1) The technology can improve how companies engage prospects and customers at one or more points in the customer life cycle; 2) it is easy for the business to implement; 3) enterprise-scale companies have started to use it; and 4) it does not have enough hype to be on everyone’s radar.

The first installment focuses on four emerging technologies:

  • Online content curation to build thought leadership and authority relationships.
  • Listening platforms to monitor brand sentiment and gain customer insight.
  • Brand advocate platforms to energize word of mouth (WOM).
  • Appointment scheduling applications to engage people ready to buy.

Learn more about what these are and why they are important by reading the new report, "Emerging Technologies B2B CMOs Should Watch In 2011." And let me know about other emerging technologies you'd like to see profiled in the future or about experiences with these platforms.

Sales And Marketing, Republicans And Democrats: Can You Cross The Great Divide?

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Jeff Ernst

As I watched the coverage of the president's State of the Union Address this week, I was thinking about how our two political parties present a good analogy to the challenges that marketing and sales teams have in aligning. Democrats and Republicans have deeply-rooted differences . . . they have strong opinions . . . they stand their ground . . . they point fingers across the aisle and blame the other side for everything that's wrong with our country. And occasionally one of them switches to the other side if it advances their career. Sound familiar?

Forrester's CMO Group members have been working with the research team to dig into this age-old issue of misalignment. They told us that they have a hard time applying the traditional guidance and wanted us to find the real obstacles to alignment as well as gather examples of things people have done that have been effective in bringing the two teams closer together.
 
So we surveyed sales and marketing leaders and were not surprised at all to find that companies are still struggling with this chasm. But the biggest surprise we got is that the current efforts to align the two teams mostly center around having sales and marketing people attend each other's meetings. While this is good for increasing information flow between the teams, it is not enough to gain alignment. Sales and marketing teams need a common design point. They need to align their efforts around the customer's needs and the problem-solving process they go through to address those needs.
 
Learn more about our Buyer-Led Alignment Framework by reading my latest report, "B2B Sales And Marketing Alignment Starts With The Customer."
 
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