Are You Doing Enough Customer Research? Yes, But . . .

Peter O'Neill

Peter O'Neill here: I attended a meeting of our FLB Sales Enablement Council earlier this month in San Francisco. The Council meeting included sales operations and content marketing executives from B2B companies Avaya, Cisco Systems, Haworth, HP, IBM, and Polycom. While the meeting is a facilitated discussion among peers, as per our standard FLB model, it is also more than that. It actively helps us analysts create new IP for our clients — we get their point of view and we test our own hypothesis before publishing reports. This meeting focused on the very important topic of defining the audience for our message (i.e., content and conversations) and messenger (i.e., the content channels, including sales). In an introductory exercise, the attendees listed all the groups and initiatives that they know are doing research with their customers. If you look at this photo, I think you’ll agree with what the Council attendees said after this exercise: “It’s absolutely frightening and quite chaotic!”  This photo shows the list of people or departments - the list next to it is by "initiative" and it is just as long.

I am reporting this because Forrester has just published my latest report for B2B marketers on content marketing, Establish Your Content Marketing Life Cycle; in it, I discuss some critical success factors around content marketing. One of the most important is doing enough of the right research about your buyers in the first place. However, the research I describe in the report isn’t even on these lists!

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Why Growing the Sales Force May Not Be Your Best Investment Strategy for Revenue Growth

Mark Lindwall

In a recent post, I introduced on a common scenario that sales leaders encounter whereby the CEO asks the chief sales officer to substantially add salespeople to the sales force to grow the bottom line. We see this strategy repeated over and over again and, unfortunately, it very frequently leads to deeply disappointing results for the CEO, investors, the board of directors, and the sales leader. Growing the sales force to grow the bottom line seems to make common sense, right?  Well not exactly. Here’s why.


What is the desired impact of adding salespeople?

First, let’s look at what impact the stakeholders envision with the “add salespeople” strategy.   Driving increased revenue and bottom line growth is anticipated from more salespeople acquiring more new customers.  These representatives may be deployed in new geography to broaden the company’s footprint, or they may be added within the existing footprint where, with more salespeople, the company can reduce the number of accounts per salesperson with the expectation that those reps will invest more time with each buying customer to sell more offerings (cross-selling) per company.  


Why doesn't adding salespeople produce increased revenue and bottom line growth?

There are really three factors for why significantly increasing the number of salespeople often doesn't result in expected financial growth.  These are:

  • Unrealistic timelines associated with the expected results 
  • Unanticipated expenses with adding and supporting salespeople 
  • Unanticipated risks
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B2B CMOs: Is It Time for you to Evolve or Move On?

Laura Ramos

Digital channels, online social activity, and mobile technology give business buyers unprecedented purchasing power. Just look around your next sales or customer meeting, count the number of smartphones and tablets, and see if you disagree. 

To capture the attention of the perpetually-connected business buyer, we see B2B CMOs taking on significantly broader, and often unfamiliar, responsibilities. To learn exactly how top marketers respond to these new world challenges, Forrester teamed with the BMA to conduct a joint study about the pace of change, skills required, and degree of collaboration needed to deliver the always-on experiences business buyers now expect. 

Kathy Button Bell, 2013-14 BMA Chair, and I presented the findings from this study of 117 marketing leaders during the BLAZE conference last May.  I'm now following this presentation with a new report that takes a closer look at the evolving role of the B2B CMO -- a report that we would like to share with our friends at the BMA and with you.  To get a complimentary copy, please visit this site to register for and download the report.

What did we find in the survey responses?  That it’s never been a better time to be a B2B marketer!

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The CEO Says Hire Salespeople! What's Next?

Mark Lindwall

Your CEO just gave you your marching orders.  “We’re going to organically grow the top line and profits by 30% over the next year.  We’re going to grow the sales force to make this happen.  I’ve discussed this with the Board and they agree with the strategy.  So tell me what you need to accomplish this and let’s move forward.” 

As a sales leader the opportunity to rapidly grow sales seems exciting.  You’ve got the backing of the CEO, and the Board of Directors.  You’ve got air cover.  You’ve got a mandate.  This is the stuff that great success stories are written about (and great resume’s), right?  Yes it’ll be hard work, but you can just envision a year from now when your boss recognizes your success in growing the business on a big stage.  

As the Chief Sales Officer, one of two options is now available to you.  

Option #1

Your boss, the CEO, told you to jump and you answer “How high?”  You’re going to do exactly what your CEO told you to do.  So you gather your management team and enthusiastically communicate the challenge and opportunity ahead.  They’re all for it and will help rapidly put the plan together.  You talk with your counterparts in Human Resources, Training, and Sales Operations (who will coordinate with Facilities and IT for the required resources).  They’re all behind you (after all, this comes from the CEO).  A week later, you present your formal plan to the CEO and tell her that interview scheduling is already in process.   You’re on your way to growing sales and being a visible leader in a great success story.

Option #2

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How To Become Customer-Obsessed In B2B

Laura Ramos

In June 2011, Josh Bernoff revisited Michael Porter's competitive strategy work to show business has entered a new era where competitive advantage will come from obsessing over your best customers. In this seminal report (subscription required), Josh argued that the only way companies will stand apart from competition is by combining information, technology, and strategy to deeply understand customers and demonstrate that understanding through product, marketing, and service interactions.

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“Letter From Germany” – Interactive Design Agencies In Germany

Peter O'Neill

Peter O'Neill here with my next edition of the somewhat regular blog in which I highlight something important for you about B2B marketing in Germany. This time, I’ll give you some exclusive German market details from our new report “Interactive Design Agency Overview, Europe 2013” published by my illustrious colleague Jonathan Browne. In the report, fully available to Forrester clients, Jonathan analyzes and compares 54 European agencies according to various criteria:

1.        The type of work that the agencies do — from market strategy through web design to app development.

2.        Geographic and industry-sector coverage (see below for a specific cut for Germany).

3.        The size of projects, even by project type.

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Understanding How Value Adds Up for Buyers

Mark Lindwall

Lots of leaders believe that their sales force (and marketers, product developers, etc.) know their buyers. I disagree. Well, they may know their names and titles and a bit more. But let’s get real. Do the majority of your salespeople really understand how their buyers actually perceive value in what your company provides?  

Look, I love the sales profession and am committed to keeping it relevant in the new economy.  So I am not bashing Sales.  But "Houston, we have a problem" with selling, because too many of our sellers don't understand how buyers really calculate value.

What’s to Understand?

As a sales manager, sales leader, and business coach prior to joining Forrester, I’ve had thousands of opportunities to observe professional B2B salespeople from many companies and industries in meetings with prospective customers and clients.  I’ve reviewed countless business proposals and presentations before they were put in front of IT and executive buyers. This experience has informed me that far too many (and I mean FAR too many!) salespeople lack understanding of the basis for which a prospective customer is really making a decision.  Let's not point fingers. Let's just help salespeople figure this out.

Think about your own buying experiences.  Out of all of the salespeople who you’ve ever interacted with, how many can you think of who asked the right questions to really truly understood what you were trying to accomplish and what you and your company were most concerned about (other than price)?  For me, just a small percentage of salespeople stand out in my mind.  And they do stand out, even after many years.  How about you?

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Key Learnings from the Sales Enablement Forum

Mark Lindwall

Like many other sales leaders, the sense that tectonic shifts in the dynamics between buyers and salespeople are happening has been palpable to me for a number of years.  Researching these changes is why I joined Forrester just weeks before this year’s Forrester Research Sales Enablement Forum.  At the Forum, I had a number of surprise learnings or “aha moments” gained from colleagues and members of our Sales Enablement Council who are learning in real time as sales enablement practitioners. 

A Cross-Organizational System Issue

The seemingly endless search for the right “solution” to improve sales performance feels like a continuous plodding pilgrimage for many sales leaders.  What I learned at the Forrester Sales Enablement Forum, and have experienced with new illumination since, is why the silver bullet solutions (i.e., tools, programs, training, materials, promotions, technology) that leaders in sales, sales operations, HR, and sales training invest in really ever meet our expectations for delivering better overall top-line performance.

There is true chaos that exists in the selling systems of most companies. Various business functions scurry to support the effort of increasing sales. My core learning from the Forum was that we have to ask whether we even have a selling system. My realization in working with clients over the past five months is that most companies “enable” their sales forces through dis-integrated, costly, inefficient, and ineffective multifunction (as opposed to cross-functional) silos of investments that have a poor performance improvement yield. 

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"What did Marketing ever do for us?" asks Sales

Peter O'Neill

Peter O'Neill here. Several people have asked me to re-post this blog from a few years ago. Here it is ..... 

It is January, 2015, and technology sales reps Reg, Xerxes, Francis, and Loretta have been to the movies to watch a rerun of Monty Python’s Life of Brian, probably one of the best film comedies of any time. At dinner afterward, they are reliving the scene where the commandos discuss “what did the Romans ever do for us” when one of their marketing colleagues stops by to say hello. After the marketing manager leaves, they continue their discussion.


Now there’s another point. Those people in marketing. What have they ever done for us?!

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Marketing Performance Management Is Operationally Proficient But Strategically Stalled

Laura Ramos

Last month, together with the ITSMA and VisionEdge Marketing (VEM), Forrester launched a research study to understand whether business-to-business (B2B) marketers have become more proficient in using marketing metrics and analytics to inform marketing decisions, predict buyer behavior, improve marketing performance, and help their firms better analyze markets and forecast trends.

This is the 12th year that VEM has undertaken this research, and we were pleased to be a part of such a rich legacy. The 2013 MPM Survey captured input from more than 400 respondents, helping us uncover valuable insights on the performance measurement and management challenges marketers face today.

Depending on which side you stand on the executive debate about how to assess the value of marketing to your organization, the findings of this year's study may (or may not) surprise you.

Even though marketing measurement has become more automated and operationally commonplace, B2B marketers continue to struggle to prove marketing's contribution to the business instead of using metrics and performance management to improve it. One of the most telling findings that leads us to this conclusion is the percentage of executive peers reported to use marketing data to make strategic decisions — as revealed by marketers themselves.

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