Sick of scouring sector landscapes with thousands of vendor logos organized into loosely defined categories? I mean, do you really need to know the names of 150 programmatic display advertising vendors out there? What’s the total Martech ecosystem going to tally this year – 7000+ vendors? Actually, yes. Yes it is. As my colleague Joe Stanhope said in his work on the convergence of Martech and Adtech – it’s hard to remember a time when there was such an unhealthy and unsustainable technology ecosystem.
At Forrester, we’ve covered marketing technology and the now overused term – “left-brained marketing” - for nearly fifteen years. We've come a long way as an industry since then, and today Forrester's marketing clients now enjoy step-by-step playbooks like the Enterprise Marketing Technology Playbook, and the Lead-To-Revenue Management Playbook that help them get more out of their technology investments. This is becoming more important every day. Why? Because marketing technology now commands one-fifth of overall marketing budgets for B2C marketers. That’s already a sizable chunk, and we expect it to climb quickly because 41% of these marketers tell us that they still lack the technology they need to grow their business.
As a very late Boomer or — as The New York Times columnist Richard Pérez-Peña likes to call us — a Boomer reboot, I find that I have Millennials on my mind all the time! I’m not on social networks for 3 hours a day; I’m just an avid user. I sleep with my smart phone on my bedside table, and I’m a pretty good multitasker. I work with a group of phenomenal Millennials at Forrester, and I now clock more than a year in terms of researching, writing, and speaking about Millennials in the workplace. As I think about our team of researchers, I’m reminded of a Forbes quote of the day that Caroline Robertson shared with me recently: “If you put Boomers and Millennials together in the same place and with the right setting and conditions, it’s amazing how they spark each other.” I wholeheartedly agree.
Check out our most recent report, “Millennial B2B Buyers Come of Age,” and see if you agree. Shanta Samlal-Fadelle and I coauthored this report, which looks at the impact that the heads-down generation is having on purchasing decisions for their firms. Although 73% of Millennials in B2B organizations tell us that they have involvement as influencers or decision makers, our research shows that B2B marketing and sales leaders are not paying enough attention to this increasingly present and influential constituency. In the report, you’ll hear directly from Millennials regarding their engagement and channel preferences, while Shanta and I provide actionable advice on how to fine-tune your approach to attract, rather than repel, Millennial buyers.
It’s no secret, company websites are a key implement in the B2B marketer’s toolbox. B2B marketers rate websites as the second most effective demand management tactic for building awareness (behind events) in our 2016 Business Technographics marketing survey. B2B companies also expect more than half of their customers to buy online within three years.[i] These trends show just how important it is for marketers to get the website experience right – and to produce Web content that builds empathy to engage buyers.
I think we all accept that business buyers have higher expectations in the age of the customer. They've fundamentally changed their buying behavior in this digital age. Unfortunately, too many B2B marketers aren't keeping pace. They must evolve from brand stewards, lead generation machines, and sales supporters to architects of customer engagement across the customer life cycle. B2B marketing leaders need to introduce a change agenda to help B2B marketers lead the transformation to customer-obsessed marketing. Here are some key takeaways from my recent report -- Get Ready For The B2B Marketing Renaissance -- on this topic.
Hey, It's Time To Catch Up With Your Buyer. Today's digitally empowered buyer controls the buying process far more than vendors control the selling process. B2B marketers must rethink their customer engagement strategies to catch up with an already evolved buyer.
2016 B2B Marketing Budget Plans Reveal ‘Business As Usual' Thinking. B2B marketing program spend held steady in 2015 at, on average, 6% of revenue. Yet the marketing mix remains stable and somewhat stolid, showing that marketers aren't yet looking for new ways to make operational funds generate more compelling customer experiences.
I've just refreshed the core documents in Forrester, Lead-to-Revenue Playbook. While L2RM pioneers have realized significant business gains, they have also realized that L2RM is not just about taking responsibility for the impact of marketing spend on revenue performance or about standardizing, automating, and scaling your current marketing practice. Today's digitally empowered buyer controls the buying process far more than vendors control the selling process, and re-envisioning the L2R process offers B2B marketers a rapid evolutionary opportunity to catch up with an already evolved digital business buyer. Forrester defines L2RM as:
A business system for marketers whose offerings mandate a long, complex, or highly considered buying process, comprising integrated goals, processes, and metrics that reshape marketing practices to drive effective customer engagement across the customer life cycle — from awareness to advocacy. It is measured through the metric of revenue performance — from new customer acquisition through lifetime value.
The point of this graphic is to show how your L2RM process needs to be tightly aligned to your buyer's journey.
I'm thinking of calling it the B2B Marketing Flywheel. What do you think?
B2B brand management has come a long way from its roots in consumer packaged goods and has gradually branched out to play an equally central role in B2B markets. B2B CMOs are just as invested in bettering their brands as B2C. No longer relegated to industry rags and trade shows, B2B marketing is entering a new age, with firms like CA Technologies, General Electric, and IBM in the vanguard. At a Forrester event, General Electric CMO Linda Boff remarked that GE is often the first brand —not just the first B2B brand —on platforms like Pinterest, Snapchat, and Vine.
But are most B2B brands successful in following in the footsteps of these trail blazers? Forrester research with over 1,000 B2B and B2C decision-makers reveals mixed results. Here's the good news: B2B CMOs include Brand in their top three priorities and consider Brand Management to be the strongest skill set in the department. But here's where it gets ugly: 25% of B2B CMOs consider Brand Awareness an important marketing metric; only 15% believe Brand Equity is important.
This chasm between awareness and equity, which also exists for B2C brands, can prove particularly vexing and stubborn for B2B because of some commonly held misconceptions:
Brand matters more for B2C (a lingering notion despite being soundly dispelled)
The role of brand (in a traditional sales-driven culture) is to drive awareness and fill the mouth of the funnel (the reality points to a vital role in securing choice and loyalty)
Brand Equity is amorphous, eludes specification, and hence best avoided (there exist many robust quantitatively-specified equity models)
Are your marketing and sales teams caught in that endless loop of finger pointing? B2B sellers who complain about lead quality/quantity and marketers who criticize sellers for poor follow up? After years of acknowledging their issues with each other, many B2B marketing and sales teams continue to be at odds. Just “google” marketing and sales relationships and see what you find. I did and I surfaced 98 million results! Titles such as: “The Rocky Road Between Sales and Marketing” and “How to Survive a Soured Sales and Marketing Relationship” show the dissonance and drama still very much in play.
Five years into the age of the customer and the modern B2B buyer has high expectations. They’re more knowledgeable, independent and self-directed than ever. They no longer rely on your sales people for product, pricing and other information. And they don’t want to be told what they already know. As I explore in our recently published report, B2B Buyers Mandate A New Charter For Marketing And Sales, the empowered B2B buyer is neither concerned with how your organization is structured and who’s responsible for the content on your website, nor are they interested in talking to a sales rep simply because they downloaded a white paper. Your buyers want contextual interactions with both human and digital assets across a holistic but non-linear journey. And, by in large, they want their experiences with sales people to be high value or frictionless. Think of a 2 or 5-star hotel experience – each has its merits - but 3 and 4-star hotels often disappoint.
As the number of days in 2016 winds down, my own days at Forrester are adding up. I recently joined Forrester as a new B2B marketing research director, working alongside Peter O’Neill. I appreciate how your appreciation of the insights and guidance from our team led to the need for more leadership, and I am thrilled to be here. So as I’ve been immersing myself in the team’s work, I thought that it would be as interesting to you as it was to me to see what our top 10 B2B marketing blogs of the year were. There were more than a quarter of a million reads of the team’s blogs in 2016, and I wanted to share the top 10 with you by readership.
Steve Casey, principal analyst, shared a fundamental truth of the post-digital world in this blog post. B2B buyers now strongly prefer to conduct their own research, without ever speaking with a sales rep. He recommends that marketers embrace this uncomfortable truth and spend more time considering how to make information readily available to these self-service buyers.
This blog by Peter O’Neill provided perspective on Marketo’s acquisition by Vista Equity Partners, which it announced inMay 2016. Lori Wizdo, principal analyst, also predicted this kind of move in April 2016 during an interview with CMSWire.
Interactive content (i.e., online assessments, calculators, and quizzes) helps B2B marketers shift from explaining to conversing. As my colleague Laura Ramos explains, “Interactive tools...help to create an ‘across the table’ approach at scale.”
Despite this obvious connection, only 44% of attendees at a recent webinar I hosted said they currently use interactive content on their website. So what should B2B marketers do to help close this gap between content delivery and buyer engagement? Interviews with over a dozen senior B2B marketing leaders reveal three primary ways they are putting interactive content to work creating business results:
Generating leads. Interactive content is great for generating leads because it attracts prospects’ interest by offering an engaging and tailored experience that doesn’t exist when someone passively reads or watches your content. In fact, our January 2016 content objectivity and credibility survey of 200-plus IT and LOB professionals showed that two out of the top six content sources they prefer to read/use are interactive content tools.
I’ll be brief, because I know you’re busy. If you’re a customer-obsessed marketer, you should plan to attend Forrester’s annual Forum designed just for you – MARKETING 2016. Join us and 600+ marketing leaders in New York City on April 26-27 as we dive deep into the issues that matter most to you. Our agenda this year is comprised of five sections:
1. Thriving In The Post-Digital Age: Led by our own VP/Principal Analyst Shar VanBoskirk, hear our latest research on what it takes to succeed as a marketing leader in a world where digital embeds in everything.
2. Customer Understanding: Sick of all the noise about big data? Join VP and Research Director Srividya Sridharan as she uncovers how to move from data, to insights, to business action.
3. Contextual Engagement: Principal Analyst Rusty Warner will be joined onstage by eBay and J&J as they discuss best practices in using situational context to drive deeper customer engagement.
4. The Leadership Question: Forrester’s Michelle Moorehead will moderate a superstar panel on the changing leadership role for CMOs.
5. The Power Of Trust: Principal Analyst Fatemeh Khatibloo will discuss how your ability to manage consumer privacy will be a key differentiator in building trust.