Well, it finally got published by Forrester! Peter O'Neill here and my long-promised overview of lead-to-revenue management (L2RM) vendors "Made in Europe" got out last week. We were delayed because I had to wait for my US colleague to publish on some of our research ideas on L2RM automation in her introductory report, to which I refer in my report - and she had to negotiate her text around the wishful thinking of around 45 different vendors, all of whom have their own view of a L2RM architecture. That meant that my research done in the summer of this year may look a little out of date. But I fully expect to be able to update this report for Q2 2012 in response to many other European software vendors briefing me on their experience with tech marketing customers.
Anyway, without any further ado, here is the list of European vendors I did feature. The report goes into more detail, of course, on each vendor. I have also included a list of those North American L2RM automaton vendors who have offices in Europe.
My first job, writes Peter O'Neill, after university was as a business analyst at Ford Motor Company, assisting an executive who sat on the monthly Project Appropriation Committee (PAC) where investments were approved. I learned to calculate the time-averaged rate of return and net present value for a project, proving it was better to invest in it than keeping the money in the bank. My executive ran an organization called General Services, which in those days (1978) included generating our own electricity within the factory complex in Dagenham, England. Now they take their power from the national grid and the generating plant is no more.
Now this is not a discussion of cloud computing and where enterprise IT will end up. What I most remember from those monthly PAC briefing books at Ford was the marketing project submissions. They also had documented TARR and NPV numbers. They would predict that by investing a sum of money in a promotional campaign (e.g., a special car model, dealer incentive, discounts), their market share would go up by, say, 0.7 percentage points – Ford was the UK market share leader in those days at around 30%, selling mostly company cars to businesses. I often checked out whether or not the predicted market share change actually happened and it mostly did – marketing was able to quantify its contribution very well indeed.
Peter O'Neill here. I took advantage of an invitation to dine with around 15 CIOs this week in Frankfurt and our topic of conversation was “Managing The Online Customer Journey.” This is the regular event organized by CIO Magazine, and I go along, calendar permitting, when I am invited to present or if the topic interests me. In this case, my fascination was to hear what these CIOs think about the prevailing trends of IT consumerization and social media.
But I was most interested in their ideas on how marketing aligns with the IT organization; a concept that I’ve encountered a lot recently in my engagements with tech marketers as well as working with tech automation vendors in their go-to-market activities. Forrester has published a lot on this recently, led by my illustrious colleagues Nigel Fenwick and Luca Paderni who serve the CIO and CMO, respectively.
My fascination with the topic is that I see a new business opportunity for savvy systems integrators. I am calling it the “emerging digital marketing service provider,” and I will focus my next Forrester Teleconference on this observation next week. That provider will need to be tooled with marketing creative skills plus IT skills and services and it will sell to the CMO and CIO equally: a new market coming together out of the marketing budget and the IT budget, as the figure shows.
Hurray! Peter O'Neill here, and it’s great to be back in my home office for a couple of weeks after some hectic weeks of travelling. During the last weeks, we’ve hosted research reviews in several cities; we met over a hundred tech channel professionals to match our 2012 research agenda against their topics of interest; there has been other client business; and we held our latest Marketing & Strategy Forum in London. This is the third year that I have been involved in our EMEA Marketing Forum, always in London. Perhaps we might want to go somewhere else in 2012 — there are already so many marketing events in that city, and I’ve noted that over half of the attendees were from outside the UK. Please let me know if you have any ideas of where to meet.
I am also waiting here at my desk with bated breath for the preliminary results of our latest Marketing Organization and Investment (MOI) survey — I cannot wait to see how things have changed since our last marketing-spend benchmarking exercise last year. Our team wrote several reports off the Q1 2011 survey (e.g., I discussed how European tech marketing is different and why) showing how tech marketing executives were spreading their resources among eight different categories. In the next quarter, in addition to updating those reports, we also hope to be able to be able to map and understand the marketing differences between small, medium, and large tech vendors.
Last week Forrester published a further report in my name (Peter O'Neill here) based on some great insightful work done by my illustrious researcher colleague Zachary Reiss-Davis. We had discussed this type of analysis the last time I was in our San Francisco office the other month but he did all the work. Our Q1 2011 US And European B2B Social Technographics® Online Survey For Business Technology Buyers marked the third year we've conducted this survey, so it is interesting to observe some trends over that period of time by looking at the Social Technographics® ladder profile in more detail. Interesting conclusions we could make from our drill-down include:
Many Creator* behaviors are not engagement after all (see below), they are broadcasting opinions
Critic* behaviors are often collaborative – and this demonstrates the biggest growth
Collector* behaviors are actually somewhat misleading – they are not really “collecting”
While the high Spectator* numbers might imply that most people are just browsing, that is wrong
Joiners* and Conversationalists* behavior is tailing off as decision makers fail to see the value
This month, I (Peter O’Neill) have been planning for the Tech Marketing track at the Forrester Marketing & Strategy Forum to be held on November 16 and 17 near London. The forum has now been configured so that each of the eight role-focused tracks is presented as a series of three consecutive presentations, which means that each attendee can plan to attend one whole role-track in one session. However, I know that many tech marketers come to this event because many of the other track presentations are equally compelling, so I won’t be too disappointed if people walk in and out a little.
I am responsible for the content of the TM track, which is on the afternoon of the 17th, and will moderate the session, introducing each of the speakers, linking the topics to each other, and summarizing what was discussed. We have the following topics planned:
Outcome-Oriented Marketing. Peter Burris will discuss how tech marketing is moving away from a product focus to arguments more related to what business outcomes result from the promoted business technology investment. I know that he will also introduce a methodology of creating and managing marketing content that will enable this objective to be met.
The Rise Of The E-Channels.My colleague Tim Harmon is renowned for creating provocative titles and also for his out-of-the-box presentations. We work together often on channel marketing projects for clients and he will put forward some radical insights into where he see new sales (and marketing) channels arising and others expiring.
This week, Forrester finally published my (Peter O'Neill here) reports based on its Q1 2011 US And European B2B Social Technographics® Online Survey For Business Technology Buyers, which marks the third year we've conducted this survey. These are the reports promised in my blog back on July 1st and they complement my colleague Kim Celestre’s insightful review of the worldwide numbers by examining the European data in more detail, as well as investigating that common adage cited by many tech marketers: “Most of the social media behavior is due to younger buyers, and they're not involved in BT decision-making.”
The European data is clear evidence that social is now routine for European tech buyers, and this is the headline that has been passed around the twittersphere all week now. As I write in the Recommendations section:
FIRST, VENDORS MUST LISTEN……AND BE SEEN……TO BE HEARD
As one of Forrester’s European-based analysts, Peter O'Neill here, I like to show a little continental patriotism every now and then. I work on a worldwide basis, but it is always great fun to discover a European startup, or even established vendor, and help it out into the big wide world. I actually did this in the early 1980s in a previous work-episode – any of you know of SAP? Now to put myself into perspective e, I also championed the cause of Intershop and Softlab in those years, which were not that successful, so I am not claiming any credit for SAP’s prominence.
So I am always watching out for news about the European IT industry, and I was initially tempted to tweet or retweet a recent report by the German VC firm Earlybird that argues that although the European venture industry is a quarter of the size of the US market, proportionally speaking, it is outperforming the US VC industry in returns. But I found that I didn’t understand it well enough to attach my name so I left it untouched. The report is actually quite controversial as it twists statistics around this way and that so that it remains ambiguous at best. TechCrunch has now had a real go at it, calling it “nothing more than wishful thinking” !
Before becoming an analyst serving technology marketers and focusing on the organization and automation of marketing processes, I (Peter O'Neill) had the more traditional orientation of covering a specific market — IT management software (ITMS) in my case. I remember being engaged with several ITMS vendors in the last months of that previous life discussing the same thing: how to address other market segments. Many of them selling in the enterprise segment tended to be tempted into what they call the "midmarket," which is companies with 500 to 999 employees and is perhaps more enterprise-like than small-business-like, so it seems like a safer bet. Forrester names this the "medium-large" segment in our data reports. Some were even ambitious enough to consider the SMB segment.
I was always pretty clear in my recommendations on how to market to the midmarket or SMB segments if you’re an established enterprise software vendor: Develop segment-specific solutions; use a different brand if possible; and know your channels well. None of these things are easy though and, to be honest, most enterprise vendors take the easy way out. They merely:
· Design some cut-down version of their enterprise products
· Tweak their pricing model but then worry obsessively about “cannibalizing” enterprise sales
· Go looking for channel partners but usually end up with the same ones from their enterprise segment
For this reason, enterprise software vendors that have failed miserably to scale down their products or sales channels litter the tech industry.
I’ve had a difficult year, business-wise (this is Peter O'Neill). Oh, I have certainly been busy and travelled a lot — I‘m not complaining about that. But I have found myself too often in the position of “let’s shoot the messenger.” Remember? I already complained about this back in May 2010, but the situation still hasn’t changed yet: Many tech marketers still refuse to believe our numbers. Well, our 2011 Business Technology Social Technographics® results are now ready: I presented the European data in a Forrester Teleconferencea few weeks ago and soon our excellent English-language editors will finish off two reports from me:
Showing the 2011 European data (see below).
Discussing the question: Does age matter in social media usage?