HubSpot Attacks Middle Of The Funnel On Its Quest To Dominate The Marketing Software Industry

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HubSpot has been on a tear, claiming close to 7,000 clients using its Inbound Marketing software to generate leads at the top of the funnel. Most of these clients are self-employed business owners who do their own marketing and small businesses that have a couple marketers on staff.

At its Analyst Day yesterday, HubSpot’s Brian Halligan and Dharmesh Shah shared some new capabilities of what HubSpot now calls All-in-One Marketing Software. The news should surprise no one, as Brian was clear when he acquired Performable last June that the company wanted to expand from top of the funnel to middle of the funnel and move further up-market to the medium-size enterprise space.

 Here are a couple of my takeaways from the day:

  •  Expanding into middle of the funnel makes perfect sense, as the B2B marketing leaders I work with who are trying to transform marketing from providers of "air cover" to drivers of demand have to drastically increase the flow of new leads into the funnel to make it worthwhile to automate the engagement of those people as they move through the funnel. When HubSpot’s SMB customers improve top-of-funnel performance, they move the demand-gen problem further down and are using tools like Eloqua and Marketo. Now these folks can have a single platform for managing the top and the middle.
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ICANN Extends gTLD Application Window By A Week — Time For All Brands To Pay Attention

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Bummer, we have to wait another week. Apparently ICANN is concerned about possible tampering with the TLD Application System (TAS), as they rightly should be, so they have closed it down for a few days, resulting in the application window for new gTLDs being extended from today to next Friday, April 20th. As it states on its site, "Recently, we received a report of unusual behavior with the operation of the TAS system. We then identified a technical issue with the TAS system software."

Not that this shouldn't make a difference to you, because if you haven't taken a stand on gTLDs for your company and don't have your application all ready to go by today, you're most likely gonna miss the boat anyway. But as a marketing leader, you need to make sure you have someone paying close attention to the program over the next few weeks.

We've been expecting that ICANN will post the public portions of all the applications on its site by April 30th (don't be surprised if this slips a week as well). By reviewing this posting, you'll see who is applying and what strings they are applying for. Whether or not you have applied for your own gTLD, make sure you go through the list to see if someone has applied for a string that may violate a trademark right for your company or one of your brands. It will be up to you to file a legal rights objection if this happens. It is most likely to happen if you've got a company or product name that is a commonly used word, like United.

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Time To Shift B2B Social Media Marketing Focus From The "Media" To The "Social"

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As marketers, we think of ourselves as social. So why is it that almost 50% of B2B marketers surveyed say that they primarily use social media as just another channel to push messages to their target market?

And those are the ones who are attempting to use social media for demand generation. There are still many who are not. One marketer I talked with recently believes that social media is only useful for marketing to consumers and the gimmicks that B2C marketers use would never work for B2B. To some extent that's true, but B2B and B2C marketing are both about people-to-people communications and eliciting emotional responses, which social is perfect for doing.

I was giving a presentation to a marketing team a few weeks ago, and one of the senior folks in the room said that his buyers are too old, too senior, and too busy to be on Facebook. But we were able to show him that his demographic of buyers does use social media when learning about solutions the company sells. Forrester's B2B Social Technographics data shows that business decision-makers use social media for business purposes, and when it comes to creating content and sharing opinions, they do it more for business than personal reasons.

Social media can be harnessed for generating demand, but you have to recognize how it's different from your other channels and use it differently. 

  • Social media is about relationships, so it requires you to engage in two-way conversations and participate consistently.
  • Social media is real time, so you need to be monitoring the conversations and taking action on them in real time.
  • Social media enhances and amplifies other channels, so it cannot be used in a silo.
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What If We Merged The Marketing And Sales Funnel With The Customer Life Cycle?

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Carlos Hidalgo from The Annuitas Group reminded me in his blog post yesterday that at last year's DemandCon, I decided to be a little provocative in my keynote by claiming that "the marketing funnel is dead." I couldn't resist, especially given that the conference logo is a funnel. I didn't get the oohs and aahhs I expected, and no one threw tomatoes.

I went on to explain that the funnel still serves a purpose, but it no longer reflects today's buyer journey, as my colleague Steven Noble articulated in his report "It's Time To Bury The Marketing Funnel." In a nutshell, buyer behavior is less funnel-like than ever before: Buyers don't move in a linear fashion, they don't necessarily narrow their consideration set as they move through their problem-solving process, and, if you deliver a great experience, they buy from you again.

What does a buyer's problem-solving process look like? It's a customer life cycle (see the picture on the right), where business-to-business (B2B) buyers 1) discover they have a problem or an opportunity and get to a point where they realize they need to change the status quo; 2) explore their requirements and the options for solving the problem; 3) select the best solution and acquire it; 4) and engage with the solution provider and with their peers as they implement the solution . . . and so on and so on.

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B2B Demand Management Still Suffers From The Great Divide, But That Will Change

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I have to admit it; last year, I predicted that 2011 would be the year B2B marketing leaders get the cooperation from their sales leadership counterparts to align marketing and sales around the new buyer journey and finally create a single, integrated, end-to-end, brilliantly shining, awe-inspiring, world-hunger-solving, lead-to-revenue process. 

I likened the chasm that exists between marketing and sales to the similar dysfunction that plagues Washington D.C. — Democrats and Republicans with deeply-rooted differences, who stand their ground, point fingers across the aisle, and blame the other side for everything that's wrong with our country. (Notice that I give both parties equal blame for the dysfunction.)

Well, now that we're in an election year, nothing seems to have improved, and the polarization seems to have intensified. The ability of B2B marketing and sales teams to work together to create demand is still, well . . . politically challenged.

There are lots of reasons for this. In fact, my friend and fellow demand-generation expert Adam Needles (@abneedles) just blogged this morning about our inability to manage demand as an operational process. He said:

"Clearly modern B2B demand generation is failing. And all of the great messaging and creative, smart tradeshow sponsorships, and new technology investments that we throw at the problem cannot help if we are unable make a critical leap. We must be able to manage demand as an operational process."

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Where Are You On The Centralization/Decentralization Pendulum?

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It's a constant tradeoff for B2B CMOs, who want their marketing people to be totally in tune with the customers and markets they serve: "How much should I decentralize by aligning people closely with business units, industries, or regions" versus "How much do I centralize to maximize quality and minimize redundancy?"

I know as a marketing leader that I was constantly trying to figure out the right balance, and it seems like a pendulum. I would hire or assign a few marketing specialists to work with dotted-line reporting to line-of-business heads and then realize that each of them were using their own tools and struggling with the same issues, so I would look for work functions that I could bring back into a centralized role.

To help marketers manage the pendulum, I recently interviewed a dozen CMOs and organizational consultants to gain insights on this. There's no single best org structure that works for all companies, so don't ask me for one, but there are a set of drivers that can help you figure out where on the centralization/decentralization spectrum you should be for the different work streams or functions you need to perform. There are market factors, functional factors, and business factors.

For example, here are some market factors:

  • Breadth and diversity of product lines. Companies with narrow or closely-related product lines can centralize more functions, whereas companies with diversified product lines will find it necessary to move people closer to each product line.
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Have You Taken A Stand On gTLDs?

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The window to apply for a dot-brand or dot-category generic top-level domain (gTLD) opens on Thursday, January 12th. Have you driven your company to a decision on what to do? 

Many of the 50-plus marketing leaders I've talked with about this program in the past six months still haven't figured out what they would do with a domain registry but are concerned about another applicant getting their string. This is a very real concern, and I have addressed this and several of the other most frequent questions I've been getting on this topic in my recent report, "It's Decision Time For gTLDs."

So if you don't have your gTLD application ready to submit, what should you do now? First off, don't get so stuck in the hype about the risk of cybersquatters or of someone else getting your dot-brand. Stick to the advice we gave back in June to evaluate this opportunity strategically, looking at what new business initiatives or models you could deploy with the ability to own and operate a registry.

It is not for everyone. In fact, of the 50 companies I've talked with, fewer than 15 have a strategic initiative in mind for gTLDs. It seems like a no-brainer for a pure web-based business, but what about the brick and mortars? Is the Internet core to how you do business? How you attract, sell to, and service customers? How do you distribute your products and services? What about your supply chain? If these questions are relevant, then you need to be taking a closer look.

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Where's The Meat In ANA's Claims Against ICANN's gTLD Program?

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My colleague Chris Stutzman reports from the 2011 ANA Masters of Marketing conference that Association of National Advertisers (ANA) CEO Bob Liodice used his keynote presentation to continue to hammer ICANN's generic top-level domain (gTLD) initiative. Maybe he should listen to Dana Anderson, SVP at Kraft Foods, who spoke about how "lasting change happens in leaps and bounds, not through incremental shifts."

I've been advising companies since ICANN's announcement in June on how to evaluate the .brand or .category opportunity, and most of those companies haven't found a bona fide new business opportunity that justifies the investment in a gTLD. But with few exceptions, they're looking at ICANN's plans as one of the biggest opportunities since the dawn of the Internet to take more control of their brand online, which is why the ANA argument troubles me.

The heart of the ANA’s arguments come down to claims that it will cost brands billions of dollars in defensive registrations to protect their trademarks from cybersquatters and other web perpetrators of all sorts. But let's dig into that a little deeper:

  • Will it be billions of dollars? I have yet to see ANA produce any data to support its claims that the costs will be staggering.
  • Will there be squatters on your .brand gTLD? If you are a brand owner with any IP rights to your brand, there’s no way a perpetrator will win an application for your .brand TLD. Even if one could, no squatter will spend $185,000 on it.
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Get Your Entries In For The 2011 Forrester Groundswell Awards

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Every year, we look to surface the most creative and effective ways in which companies are using social media and recognize them with our Forrester Groundswell Awards. Since I have a focus on serving B2B marketing leaders, I want to make sure that you are aware that we have an award category just for B2B applications. Many B2B marketers come to me because they struggle to come up with ideas for interesting social marketing applications that target business buyers, which makes for far fewer B2B success stories, so we need your entries.

The entry deadline for the 2011 Forrester Groundswell Awards is August 3rd, so I encourage you to go here if you'd like to nominate one of your own initiatives, or if you are an agency, you can submit something you've done for a client. Josh Bernoff, one of the original authors of Groundswell, wrote a great blog post highlighting the history of the awards that you should read if you're not already familiar with the program. 

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

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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.