T901 Summit 2016 Advocacy and Demand Creation FINAL › ~ › media › SiriusDecisions › 2016-… · To drive best-in-class performance, sales and marketing must align roles and

#SDSummitMay 26, 2016

Customer Advocacy: Its Impact on Demand Creation

Jen HortonSr. Research Director@jenhorton

Lisa NakanoResearch Director@lisanakano

2 © 2016 SiriusDecisions. All Rights Reserved@jenhorton @lisanakano

#SDSummitIntuitively…You Know It’s Good


#SDSummitExecutive Summary

• Key issues• Customer experience is the largest driver of b-to-b buying decisions, yet its impact is

often ignored when planning demand creation objectives• Demonstrating advocacy’s impact on demand creation justifies investments in

advocacy and lends more precision to demand modeling• Marketers that account for customer advocacy’s impact are better able to design

demand creation programs that meet pipeline and revenue targets

• What you will walk away with• An understanding of advocacy’s impact on Demand Waterfall® efficiency• Our view of how to quantify advocacy’s impact on demand creation performance• Examples of how companies account for advocacy’s impact

SiriusPerspective:

© 2016 SiriusDecisions. All Rights Reserved

#SDSummit

4@jenhorton @lisanakano

Customer Advocacy – Demand Creation Opportunity

Leveraging positive experiences of successful customers createsbuilding blocks for demand creation.

B-to-B Buying Cycle71%of b-to-b decision

drivers are based on customer experience

2015 SiriusDecisions Customer Advocacy Study

Customer Lifecycle

DELIVER INITIATE

DEVELOP PARTICIPATE

RETAIN ACTUALIZE

GROW ADVOCATE

SiriusPerspective:


#SDSummit




B-to-B Buying Cycle

EDUCATION

SOLUTION

SELECTION

Customer Lifecycle

DELIVER INITIATE

DEVELOP PARTICIPATE

RETAIN ACTUALIZE

GROW ADVOCATE

B-toB Buying Cycle

EDUCATION NEED

SOLUTION EXPLORE

SELECTION CHOOSE


23%of b-to-b marketers

focus on advocacy for early-stage demand

creation

SiriusPerspective:


#SDSummit




B-to-B Buying Cycle

EDUCATION

SOLUTION

SELECTION

The aggregation of activities where customers share their positive experiences with your brand such as:• Case studies• Sales references• Video testimonials• Social sharing• Community discussions• Influencer relations

Customer Lifecycle

DELIVER INITIATE

DEVELOP PARTICIPATE

RETAIN ACTUALIZE

GROW ADVOCATE

B-toB Buying Cycle

EDUCATION NEED

SOLUTION EXPLORE

SELECTION CHOOSE


23%of b-to-b marketers

focus on advocacy for early-stage demand

creation

Customer Lifecycle

DELIVER INITIATE

DEVELOP PARTICIPATE

RETAIN ACTUALIZE

GROW ADVOCATE

SiriusPerspective:


#SDSummit


The use of traditional and social media to set the stage for demand creationSeed

Marketing Qualification

Inquiry

Outbound Inbound

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Won Business

Sales Qualification

Sales Generated Leads (SGLs)

Sales Accepted Leads (SALs)

Sales Qualified Leads (SQLs)

Automation Qualified Leads (AQLs)

Teleprospecting Generated Leads (TGLs)

Teleprospecting Qualified Leads (TQLs)

Teleprospecting Accepted Leads (TALs)

Key Processes for Effective Demand CreationTo drive best-in-class performance, sales and marketing must align

roles and responsibilities to five SiriusDecisions Demand Waterfall based processes.

Helping reps increase their productivity, for both sales- and marketing-sourced demandEnable


Inquiry

Outbound Inbound

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Sales Qualification








Efforts geared to help move qualified demand more quickly through to revenueAccelerate


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Outbound Inbound

Close

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Sales Qualification








The creation of original demand, with a focus on quality vs. quantityCreate


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Outbound Inbound

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Sales Qualification









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Outbound Inbound

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NurtureThe care and feeding of prospects that aren’t ready for sales, or that have fallen out of the Demand Waterfall


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Outbound Inbound

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SiriusPerspective:


#SDSummit


Advocacy-infused content helps buyers build a stronger business case

Direct access to advocates helps buyers mitigate risk in purchase decisions

Advocacy-infused content supports buyers throughout the buying process

Referral and upsell/cross-sell programs source high-quality demand directly through advocates

Accelerate

Advocacy Can Impact All Demand Creation Processes

Understanding where advocacy has an impact on demand creation helps to justify advocacy investments – and results in better demand creation planning.

Enable

Nurture

Advocacy builds reputation, which sets the potential for demand creationSeed

CreateMarketing Qualification

Inquiry

Outbound Inbound

Close

Won Business

Sales Qualification









#SDSummitPolling Question

• Does your organization incorporate advocacy into demand creation planning?• Yes• No

From Activity to ImpactDetermining opportunities for demand creation leverage

SiriusPerspective:


#SDSummit


Identifying Opportunities for Advocacy LeverageDemand creators and customer marketing professionals need to

assess resources and capabilities to determine where advocacy can have impact.

Can I measure their impact?

How can I leverage them?

Do I have the right resources?Marketing Qualification

Inquiry

Outbound Inbound

Close

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SiriusPerspective:


#SDSummit


Seed Demand: Activate AdvocatesAdvocates can be a powerful tactic delivery mechanism to introduce

and spread the word about their experiences – as well as demand creation offers.

• Relevant advocates and advocacy content• Willingness to participate• Ability to reach and engage advocates• Ability to track and measure advocacy activity

• Net Promoter Score• Brand sentiment• Influenced revenue

• Participate in investor and analyst briefings• Social participation• Logo and testimonial usage• Drive awareness of demand creation offers

Resources

Leverage

Metrics


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SiriusPerspective:


#SDSummit


Bomgar: Building Relationships With AdvocatesThrough its advocate portal, Bomgar offers an array of challenges

and rewards to manage, engage and reward advocacy participation.

• Lots of happy customers and high NPS scores

• A program to build relationships with advocates and activate them to build positive brand sentiment in important communities

• Adopt a technology platform that enables them to manage the program and track all advocacy activity

Objective

SiriusPerspective:


#SDSummit


Bomgar: Building Relationships With AdvocatesThrough its advocate portal, Bomgar offers an array of challenges

and rewards to manage, engage and reward advocacy participation.

• Increased social followers by12 percent

• Increased social mentions by 66 percent and content tweets by 45 percent

• Improved case study output by 50 percent

• Generated 400+ new inquiries

Impact• Lots of happy customers and high

NPS scores• A program to build relationships

with advocates and activate them to build positive brand sentiment in important communities

• Adopt a technology platform that enables them to manage the program and track all advocacy activity

Objective

SiriusPerspective:


#SDSummit



Inquiry

Outbound Inbound

Close

Won Business

Sales Qualification








Create Demand: Expand Lead SourcesTargeting existing advocates or advocate networks often results in

demand that converts more efficiently and quickly than through traditional sources.

Resources

Leverage

Metrics

• Relevant portfolio of offerings for advocates• Willingness and capability for advocates to

contribute referrals• Ability to track and measure demand sourced

from tactics that leverage advocacy

• Inquiry, TGL or SGL generation• Conversion efficiency• Sourced revenue

• Cross-sell/upsell programs• Referral incentive programs• Case study and demand creation offer assets


Inquiry

Outbound Inbound

Close

Won Business

Sales Qualification









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Outbound Inbound

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Outbound Inbound

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SiriusPerspective:


#SDSummit


ADP: Referrals Are Largest Source of New LeadsThrough its rewards portal, ADP offers product incentives and

revenue sharing.

• High volume of clients and partners in the field that could be leveraged

• A program to incent clients to make direct referrals with product discounts, and offer revenue-sharing rewards with key accounts

• Adopt a technology platform that enables ADP to manage all referral activity and reward distribution

Objective

SiriusPerspective:


#SDSummit


ADP: Referrals Are Largest Source of New LeadsThrough its rewards portal, ADP offers product incentives and

revenue sharing.

• #1 source of new demand creation

• Improved conversion efficiency• Referral sourced customers much

less likely to churn

Impact• High volume of clients and partners

in the field that could be leveraged• A program to incent clients to make

direct referrals with product discounts, and offer revenue-sharing rewards with key accounts

• Adopt a technology platform that enables ADP to manage all referral activity and reward distribution

Objective

SiriusPerspective:


#SDSummit


Accelerate Demand: Improve Time to RevenueAdvocacy content that helps the buyer answer questions throughout

the buying cycle also helps to reduce the time spent in each stage of the process.

Resources

Leverage

Metrics

• Relevant advocacy content assets mapped to each stage of the buying cycle

• Ability to isolate and analyze cohorts of demand that touched advocacy content vs. those that did not

• Velocity• Influenced revenue

• Small-net fishing programs• Pipeline acceleration programs• Obstacle removal programs


Inquiry

Outbound Inbound

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Sales Qualification









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Outbound Inbound

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SiriusPerspective:


#SDSummit


Enable Sales: Minimize Buyer Risk Direct interaction with advocates helps the buyer to better

understand, envision and evaluate the post-purchase experience as a customer.

Resources

Leverage

Metrics

• Relevant advocates• Ability to manage and track advocate and

buyer interactions

• Sales quota attainment• Deal dynamics• Influenced revenue

• Reference call support• Executive briefing center support• Customer event participation• Customer community participation


Inquiry

Outbound Inbound

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Sales Qualification









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Outbound Inbound

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SiriusPerspective:


#SDSummit


Nurture Demand: Remain RelevantAdvocacy content can help maintain buyer engagement, create

urgency and build a business case to initiate a new buying cycle.

• Relevant advocacy content assets mapped to disqualification reasons

• Ability to isolate and analyze cohorts of demand that were nurtured with advocacy content vs. those that were not

• Conversion efficiency• Velocity• Sourced and influenced revenue

• Active recycle programs that help build the business case

• Passive recycle programs that requalify • Reconstituted programs that re-engage

Resources

Leverage

Metrics


Inquiry

Outbound Inbound

Close

Won Business

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SiriusPerspective:


#SDSummit


Citrix: Measuring Customer Advocacy ImpactCustomer advocacy team tracks all reference activities, including

those associated with opportunities for revenue influence effectiveness measures.

2013 2014

Total Pipeline $308,631,082 $334,863,027

Revenue Closed

$125,371,042 $209,371,042

Totals 466 won deals1,221 pipeline

1,283 won deals1,128 pipeline

2015

$335,116,619

$516,661,287

1,642 won deals1,595 pipeline

2013 2014

Marketing 201 470

Sales 197 494

Total ReferencesUtilized

323 964

2015

609

863

1,472


#SDSummitPolling Question

• Where is the biggest opportunity for leveraging advocacy for demand creation in your organization?• Seed• Create• Accelerate• Enable• Nurture

Understanding the Real Drivers of DemandCorrelation analysis helps frame demand drivers

SiriusPerspective:


#SDSummit


Identifying Impact on Bookings VariationsAnalysis of monthly marketing activity, advocacy activity, market

conditions and pricing data to identify variables that correlate with bookings.

The estimated equation explains 92 percent of the variation in bookings.Drivers for Total Bookings:• Market conditions• Pricing• Chat-sourced leads (lagged 3m)• Emails opened (lagged 4m)• Challenge completions• Demo-sourced leads (lagged 5m)• Partner-sourced leads (lagged 0, 3 and 6m) 0

1

2

3

4

5

6

7

8

01/14 04/14 07/14 10/14 01/15 04/15 07/15 10/15 01/16

Bookings:Actualvs.EstimatedValues($Millions)

Actual Estimated

SiriusPerspective:


#SDSummit


Identifying Impact on Bookings VariationsAnalysis of monthly marketing activity, advocacy activity, market

conditions and pricing data to identify variables that correlate with bookings.

The estimated equation explains 92 percent of the variation in bookings.Drivers for Total Bookings:• Market conditions• Pricing• Chat-sourced leads (lagged 3m)• Emails opened (lagged 4m)• Challenge completions• Demo-sourced leads (lagged 5m)• Partner-sourced leads (lagged 0, 3 and 6m)


1.6%of bookings representing

$XM

2 percent of total bookings over last

12 months representing

$800k

26

#SDSummit

© 2016 SiriusDecisions. All Rights Reserved@jenhorton @lisanakano

Action Items

• Demand marketing• Gather data from available sources to assess what

options exist for leveraging advocacy• Pilot and test advocacy leverage to build the case for

more infusion

• Customer marketing• Take baseline influence of advocacy on Demand Waterfall

performance and analyze impact over this baseline• Assess advocacy program quality and highlight

opportunities for demand creation leverage


#SDSummitQuantifying Impact Crafts the Perfect Recipe

28

#SDSummit

© 2016 SiriusDecisions. All Rights Reserved@jenhorton @lisanakano

SiriusDecisions Resources

• Research• Leveraging Customer Advocacy for Demand Creation• Core Strategy Report: The SiriusDecisions Demand

Waterfall Implementation Guide • The Evolution of Customer Advocacy• Webcast: Customer Advocacy: What Your Marketing Is

Missing• Webcast: Don't Go Chasing Waterfalls: SiriusDecisions

Demand Waterfall Key Concepts• Tools• Reverse Waterfall Tool

• Learning • Account-Based Marketing Pathway• Pipeline Acceleration Pathway• B-to-B Foundations Pathway

Documents

T901 Summit 2016 Advocacy and Demand Creation FINAL › ~ › media › SiriusDecisions › 2016-… · To drive best-in-class performance, sales and marketing must align roles and