Adetem b2 b marketing mix with siriusdecisions 2015 the pulse european demand generation

© 2015 SiriusDecisions. All Rights Reserved 1

The tactics and teams driving demand creation in Europe

20 January 2016

The Pulse: European Demand Generation

Isabel MontesdeocaResearch Director,European Demand Creation Strategies


Advisory

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Executive Summary

Key issues• Evolving b-to-b buyer behavior continues to impact marketing

approaches and tactics • European marketers need to identify the offers and delivery

mechanisms that work best for their markets• The role of Demand Centers and Tele is evolving and can do

more to support local teams

What you will walk away with• See how marketers are allocating their demand generation

budgets• Learn which tactics are rated most effective by marketers• Understand the current state of the marketing eco-system

© 2015 SiriusDecisions. All Rights Reserved 6 6

Our Methodology

A large-scale quantitative study (n=473)

Countries covered: UK Germany France Italy Spain Netherlands

Comparison of results to 2013 survey for the same countries (n=489)


Profile of Participating Organizations

HealthcareOther

Computer/Telecommunications HardwareFinancial Services

Information ServicesSoftware - On premiseSoftware - SaaS basedProfessional services

0% 5% 10% 15% 20% 25% 30% 35%

3%6%

8%11%11%

15%16%

30%

Industries

0%5%

10%15%20%25%30%

19%

26%23%

17%

9%7%

Revenue

0%2%4%6%8%

10%12%14%16%

8% 8%11%

14% 14% 15%

8%10%

7%4%

Employees

France; 17%

Germany; 22%

Italy; 16%

Nether-lands; 11%

Spain; 13%

UK;

21%

Countries


Study Topics

Budgets

Tactics & Effectiveness

Measurement

Automation

Lead Level

TeleprospectingDemand Centers

1

2

3

4

5

6

7

Marketing Budgets


SiriusPerspective:

Demand Creation BudgetThe percentage of marketing budget allocated to demand creation is

an important indicator of the role marketing has in driving business growth.

France

Germany

Italy

Netherlands

Spain

UK

20%22%24%26%28%30%32%34%36%38%40%

33%

33%

29%

35%

33%

35%

37%

34%

38%

29%

35%

33%

2013 2015

(n=473 in 2015; n=489 in 2013)Q: What percentage of the local annual marketing budget is allocated to demand generation/lead generation programs?

Other (please specify)

Computer/Telecommunications Hardware

Healthcare

Information Services

Software - SaaS based

Professional services

Financial Services

Software - On premise

0% 10% 20% 30% 40%

23%

33%

27%

28%

38%

31%

40%

35%

28%

29%

32%

34%

35%

35%

39%

41%

2013 2015

Tactics & Effectiveness


SiriusPerspective:

The SiriusDecisions Buying Decision Process Framework

Decision making is a cognitive process defined by psychologists as

the selection of a course of action from multiple alternatives.

Decision is made that there is a reason for change

Decision is made on the approach on how to change

Decision is made on the vendor of choice

Education SelectionSolution

Period of Status QuoThe buying entity is not a current client of any provider

Period of Competitor ExperienceThe buying entity is a current client of a competitor

Period of Customer ExperienceThe buying entity is a current client

Why?Why

? How?How

? Who?Who

?


SiriusPerspective:

Demand Creation Budget Allocation – Top DrawsMarketing to and through social networks emerged as the most

popular spend item for marketers.

2015 Top Spend Items - Tactic Offers

Q: For the current fiscal year, indicate the breakdown of your demand creation program's budget by the following tactic offer types.(n=473)

SOCIAL COMMUNITIES 9.3%

PRICE QUOTES/INCENTIVES 8.5%

NEWSLETTER 7.9%

VIDEOS 7.5%

DEMOS 7.3%

WHITE PAPERS 7.1%


SiriusPerspective:

Changes in Spending on Offers - 2013 to 2015Participation in social communities remains a popular choice

among marketers while whitepapers and trials have dropped off the top list.

2013 Offers 2015 Offers

1 Social communities Social communities

2 Newsletters Price quote/incentives

3 White papers Newsletters

4 Trials Videos

5 Videos Demos

Q: For the current fiscal year, indicate the breakdown of your demand creation program's budget by the following tactic offer types and tactic delivery channels.(n=489 in 2013; n=473 in 2015)


SiriusPerspective:

Spend on Offers vs EffectivenessSpend on price quotes, incentives and videos is up, however

marketers are not yet seeing strong results.

Offer Spend Offer Effectiveness

1 Social communities Social communities2 Price quote/incentives Newsletters3 Newsletters Demos4 Videos White papers5 Demos Virtual tour


Top 5 Offers Based on EffectivenessQ: Please indicate the top five TACTIC OFFERS that are most effective for generating inquiries/responses at the top of the demand waterfall/funnel, as well as during the education, solution and selection stages of the buying cycle.

(n=473)

Top of the Waterfall

Education Solution Selection

1Social

communitiesSocial

communities NewsletterSocial

communities

2 Newsletter Newsletter Demos Demos

3 Demos White papersSocial

communities Newsletter

4 Virtual tour Demos White papers White papers

5 White papers Virtual tour Virtual tour Virtual tour


Q: Please indicate the top five TACTIC OFFERS that are most effective for generating inquiries/responses at the top of the demand waterfall/funnel, as well as during the education, solution and selection stages of the buying cycle.

Changes in Offer Effectiveness – 2013 to 2015

2015



1 Social communitiesSocial

communities NewsletterSocial

communities2 Newsletter Newsletter Demos Demos3 Demos White papers Social communities Newsletter4 Virtual tour Demos White papers White papers5 White papers Virtual tour Virtual tour Virtual tour

2013



1 Newsletter Newsletter Newsletter Newsletter2 White papers White papers White papers Demos3 Demos Social communities Demos Trials4 Social communities Trials Social communities White papers5 Trials Demos Trials Videos

(n=489 in 2013; n=473 in 2015)


SiriusPerspective:

Localizing ContentAn increasing number of marketers are taking on the content

localization challenge in order to deliver content that meets the buyer’s needs.Q: Thinking about the content you are using in your demand creation efforts, what % of centrally created content is being used as is, used slightly adapted, significantly adapted to reflect local needs or created locally?

Used "as is" Used slightly adapted Significantly adapted to reflect local needs

Created locally0%

5%

10%

15%

20%

25%

30%

35%33%

21% 22%24%

29%

21%23%

26%

Content Localization

2013 2015

(n=473 in 2015; n=350 in 2013)


SiriusPerspective:

Demand Creation Budget Allocation – Top DrawsMarketing to and through targeted social networks, both online and

offline, emerged as the most popular spend item for marketers.

2015 Top Spend Items – Tactic Delivery Mechanisms

Q: For the current fiscal year, indicate the breakdown of your demand creation program's budget by the following tactic delivery mechanisms.(n=473)

ASSOCIATION MARKETING 9.6%

EMAIL 8.0%

DIRECT MAIL 7.6%

CONTACT LIST RENTAL/PURCHASE 6.5%

LIVE TRADESHOW 6.2%

SEARCH ENGINE ADVERTISING 6.1%


SiriusPerspective:

Changes in Spending on Delivery Mechanisms - 2013 to 2015

Association marketing is now ranks top of the spend list although

email usage remains strong across all countries surveyed.Q: For the current fiscal year, indicate the breakdown of your demand creation program's budget by the following tactic offer types and tactic delivery channels.(n=489 in 2013; n=473 in 2015)

2013 Delivery Mechanisms

2015 Delivery Mechanisms

1Online Advertising:

Display Banners Association marketing

2 Email Email

3 Events: Live Tradeshows Direct mail

4 Events: Live Seminars Contact acquisition

5 Direct Mail Events: Live Tradeshows


SiriusPerspective:

Spend on Delivery Mechanisms vs EffectivenessAssociation marketing and email are seen by marketers as as both

a spend priorty and an effective use of resources.

Delivery Mechanism Spend

Delivery Mechanism Effectiveness

1 Association marketing Email2 Email Association marketing3 Direct mail Contact acquisition4 Contact acquisition Direct mail5 Events: Live Tradeshows Content syndication


Top 5 Delivery Mechanisms Based on EffectivenessQ: Please indicate the top five TACTIC DELIVERY CHANNELS that are most effective for generating inquiries/responses at the top of the demand waterfall/funnel, as well as during the education, solution and selection stages of the buying cycle.

(n=473)



1Association marketing Email Email Email

2 EmailAssociation marketing

Association marketing


3Contact

acquisitionContact

acquisitionContact

acquisition Direct mail

4 Direct mail Direct mailContent

syndicationContact

acquisition

5Content

syndicationContent

syndication Direct mailContent

syndication


Q: Please indicate the top five TACTIC DELIVERY CHANNELS that are most effective for generating inquiries/responses at the top of the demand waterfall/funnel, as well as during the education, solution and selection stages of the buying cycle.

Changes in Delivery Mechanism Effectiveness – 2013 to 2015

2015

Top of the Waterfall Education Solution Selection

1 Association marketing Email Email Email2 Email




3 Contact acquisition Contact acquisition Contact acquisition Direct mail4 Direct mail Direct mail Content syndication

Contact acquisition

5 Content syndicationContent

syndication Direct mailContent

syndication

2013



1 Email Email EmailEvents: Live

seminar / roadshow2

Events: Live seminar / roadshow

Events: Live seminar / roadshow

Events: Live seminar / roadshow Email

3 Events: Live TradeshowOnline Advertising: Display Advertising

Events: Live Tradeshow Direct mail

4Online Advertising: Display Advertising

Events: Live Tradeshow

Events: Forums/user groups/user conference

Events: Forums/user groups/user conference

5Events: Forums/user

groups/user conference Direct mail Direct mailEvents: Live Tradeshow

(n=489 in 2013; n=473 in 2015)

Marketing Measurement


SiriusPerspective:

Ability to Report ROI IncreasesTwo thirds of organizations are now able to report on the ROI of their

marketing investment in order to quantify and justify their contribution to the business

Able to determine return on Demand Creation investment0%

10%

20%

30%

40%

50%

60%

70%

80%

46%

67%

ROI

2013 2015

Q: Can you determine the return on your demand creation/lead generation program spend (the resulting leads, opportunities, and closed business)?(n=473 in 2015; n=489 in 2013)


SiriusPerspective:

Marketing Contribution Marketing pipeline contribution remain steady while ROI increases

slightly, suggesting marketing is able to scale while maintaining effectiveness.

Percentage of Pipeline from Marketing20.0%

22.0%

24.0%

26.0%

28.0%

30.0%

32.0%

34.0%

36.0%

33.7% 33.4%

Marketing Contribution

2013 2015

Q: What percentage of the pipeline does marketing contribute today?Q: How much revenue do you generate in Euro for every 1 Euro you spend on demand creation/ lead generation programs today?

(n=473 in 2015; n=489 in 2013)

Revenue Generated for every 1Euro spent € 10 € 11 € 12 € 13 € 14 € 15 € 16 € 17 € 18 € 19 € 20

€ 17 € 18

ROI per Euro Spent

2013 2015


SiriusPerspective:

The SiriusDecisions Demand WaterfallSiriusPerspective: The b-to-b standard for defining, measuring, modeling and diagnosing demand creation performance across marketing, tele and sales

functions.

INQ

AQL

TAL

TQL

SAL

SQL

CLOSED


SiriusPerspective:

KPI Focus Shifts to Quality vs QuantityLeaders are moving away from measuring performance solely on

pipeline volume in favor of metrics that track the quality of the marketing pipeline created.

# INQs # MQLs # MQLs to TAL or SAL

# SQLs # SQLs to Closed0%

10%

20%

30%

40%

50%

60%

45% 43%

27% 27%22%

42%

53%

39%

30%

19%

Metrics

2013 2015

Q: What metrics are you using to track demand creation performance? (n=473 in 2015; n=350 in 2013)


SiriusPerspective:

Tracking by Source IncreasesTracking by source is now the norm, allowing leaders to assess

demand waterfall performance across multiple scenarios.

Country level track-ing

Inbound vs Outbound Tracking

Marketing lead source tracking

Tele lead source tracking

Sales / Partner lead source tracking

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

61%51%

80%

49%

69%73%

68%

83%

57%

78%

Tracking by Source

2013 2015

Q: In terms of demand creation metrics, do you track at a country level?

Q: Do you currently track leads coming from all lead sources?Q: Are you tracking inbound versus outbound marketing tactics separately?

(n=473 in 2015; n=350 in 2013)

Marketing Automation


SiriusPerspective:

Automation Technology AdoptionThere has been a spike in those using or planning to adopt MAP

within the next 24 months suggesting automation is now becoming mainstream.

Q: Do you currently have a marketing automation platform (MAP) in place?

2013 20150%

10%20%30%40%50%60%70%80%90%

100%

77%

25%

21%

52%

23% 23%

MAP Adoption

Yes

No, but plan to implement one within the next 24 months

No plans to implement one

(n=473 in 2015; n=350 in 2013)


SiriusPerspective:

Automation Technology ApplicationsMarketers are using automation platforms to allow them to better

nurture prospects and tailor communications to buyers’ needs.Q: Which of the following are you using MAP or another automation package to implement?

Progressive formsMulti-channel lead nurture programs

Preference management centersContent reporting

Predictive analyticsPartner acquisition

Lead scoring capabilitiesAutomatic lead conversion

Account scoringEvent management

Personalized content deliveryTask creation

Social media monitoringPersonalized landing pages

Email-only lead nurture programs

0% 10% 20% 30% 40% 50% 60% 70% 80%

45%50%

51%51%52%

55%56%56%57%57%

61%62%

65%65%

78%

Automation In Place Today

(n=107)


SiriusPerspective:

Automation Technology Adoption PlansMarketers plan to go beyond simple email and nurture automation,

citing plans to use automation for multi-channel nurture and progressive web forms. Q: Which of the following are you using MAP or another automation package to implement?(n=245)

Personalized landing pagesEmail-only lead nurture programs

Social media monitoringPersonalized content delivery

Task creationLead scoring capabilities

Predictive analyticsAccount scoring

Event managementAutomatic lead conversion

Partner acquisitionPreference management centers

Content reportingProgressive forms

Multi-channel lead nurture programs

0% 10% 20% 30% 40% 50% 60%

19%20%

23%28%

32%33%33%33%

35%38%38%39%39%

45%49%

Automation Plans (24 months)

Lead Level


SiriusPerspective:

Lead Qualification Level There continues to be a mismatch between the lead levels passed to

sales and what could be achieved based on reported demand type.

2015

38.8%

30.4%

14.6%

5.8%

4.9%

5.5%

Q: Which of the following best describes your definition of a marketing qualified lead today?(n=309)

New Concept43.5%

New Paradigm

35.9%

Established Market20.5%

Q: Which of the following reflects the type of demand you are trying to create most frequently?

(n=473)

Teleprospecting


SiriusPerspective:

Teleprospecting Usage Use of Teleprospecting continues to increase in Europe with the

biggest ramp seen in medium to large organizations.Q: Are you currently using a Teleprospecting function to qualify marketing leads?(n=473 in 2015; n=489 in 2013)

Utilize Teleprospecting Function0%

10%

20%

30%

40%

50%

60%

70%

80%

35%43%

Teleprospecting Usage

2013 2015

Less than 40 million €

40 to 200 million €




More than 5000 million €

0% 10% 20% 30% 40% 50% 60%

22%

44%

43%

53%

52%

61%

23%

37%

45%

35%

36%

56%

Teleprospecting Usage by Revenue Segment

2013 2015


SiriusPerspective:

Teleprospecting OwnershipMost organizations now align the Tele function under marketing to

ensure close collaboration in the identification and nurture of new prospects.

Tele reports to Marketing Tele reports to Sales0%

10%

20%

30%

40%

50%

60%

70%

80%

55%

43%

67%

33%

Teleprospecting Reporting Structure

2013 2015

Q: What is the reporting structure?(n=202 in 2015; n=170 in 2013)Q: Which of the following reflects the type of demand you are trying to create most frequently?

(n=473)

Q: Are you currently using a Teleprospecting function to qualify marketing leads?(n=473 in 2015; n=489 in 2013)


SiriusPerspective:

Teleprospecting Activities Tele support for contact discovery and marketing campaign follow-up

remains the most common activities; Lead nurture has seen the biggest increase.(n=203 in 2015; n=154 in 2013)Q: How do the Tele resources allocate their time (%)?

Small net fishing

Lead nurturing

Cold calling

Appointment setting

Marketing campaign

Contact discovery

0% 5% 10% 15% 20% 25% 30%

11%

15%

16%

17%

19%

23%

10%

11%

16%

17%

23%

25%

Teleprospecting Activities

2013 2015

Demand Centers


SiriusPerspective:

State of Demand CentersEuropean organizations continue to make use of Demand Centers,

globally and in region, to improve efficiency and effectiveness.Q: Does your organization have a centrally (global) or regionally based (Pan-EMEA) shared marketing resources team that supports demand creation efforts in the local country?(n=473)

Global Regional (EMEA) Both Global and Regional No shared marketing services in place

0%

5%

10%

15%

20%

25%

30%

35%

30%26%

29%

15%

32%

27% 26%

16%

Presence of Demand Center

2013 2015


SiriusPerspective:

Demand Centers Evolution by SegmentAdoption of Demand Centers is more common across all segments,

but the role they play has evolved over time.

2013 No Shared Services

Global Regional

Both Global & Regional

Less than 40 million €40 to 200 million €


501 to 1000 million €1001 to 5000 million €More than 5000 million €

35%

21% 23%

30%9% 27%

13%

25%

34%

3% 27%47%

12%

21%

34%

35%

27%

2% 34%

27%

23%

6%

41%

41%

Q: Does your organization have a centrally (global) or regionally based (Pan-EMEA) shared marketing resources team that supports demand creation efforts in the local country?(n=473)


SiriusPerspective:

Demand Centers Evolution by SegmentAdoption of Demand Centers is more common across all segments,

but the role they play has evolved over time.Q: Does your organization have a centrally (global) or regionally based (Pan-EMEA) shared marketing resources team that supports demand creation efforts in the local country?(n=473)

2015 No Shared Services

Global Regional

Both Global & Regional

Less than 40 million €





More than 5000 million €

35%

31%

13%

41%36%

21% 30%

11%

30%

39%

10%

26% 29%

33% 15%

36%

16%

20%

14%

10%

32%

22% 37%

20%

35%


SiriusPerspective:

Primary Responsibility for TacticsAs Demand Centers evolve, greater clarity is emerging around the

roles that each team plays in creating and delivering demand creation tactics.

Global Demand Center

Regional Demand Center

Field Marketing

• Social communities• Trials• Assessments• ROI/TCO calculators• Online survey• Virtual tour• Giveaways• Mobile app• Infographics• Videos

• White papers• Price quote/incentives• ROI/TCO calculators• Resource center/learning

center• Videos• Online survey• Assessments• Infographics• Newsletter• E-books

• Newsletter• Giveaways• Demos• Resource

center/learning center• Virtual tour• Infographics• Price quote/incentives• Videos• E-books• Assessments

Q: Who is primarily responsible for the following demand creation tactic offers and tact delivery channels?

(n=473)


SiriusPerspective:

Primary Responsibility for TacticsAs Demand Centers evolve, greater clarity is emerging around the

roles that each team plays in creating and delivering demand creation tactics.Q: Who is primarily responsible for the following demand creation tactic offers and tact delivery channels?

(n=473)

Global Demand Center

Regional Demand Center

Field Marketing

• Search engine advertising

• Association marketing• Sales enablement• SEO• Email• Live tradeshow• Virtual tradeshows• Social sites advertising• Microsites• Contact acquisition• Display advertising• Video

• Contact acquisition• Direct mail• Live tradeshow• Microsites• Live seminar/roadshow• Mobile text• Retargeting• Virtual tradeshows• Social sites advertising• Webcasts/webinars• Display advertising• Sales Enablement

• Forums/user groups/user conference

• Content syndication• Video• Email• Offline advertising• Direct mail• Online chat• Display advertising• Social site advertising• Live seminar/roadshow• Mobile in-app advertising• Teleprospecting


SiriusPerspective:

Localizing CampaignsGlobal and Regional demand centers are increasingly investing time

and money to adapt campaigns to meet local needs.(n=406 in 2015; n=350 in 2013)

Global demand centre (shared resources at

global level)

Regional demand centre (shared resources at a

regional level)

Field marketing (e.g. country marketer)

External agency or other0%5%

10%15%20%25%30%35%40%45%

24% 24%

41%

11%

41%38%

14%

8%

Localization Responsibility

2013 2015

Q: Which group is primarily responsible for adaptation of centrally created campaigns for the local market?


Action Items

•Marketing• Understand your buyers and their information needs at each

stage of the buying process• Evolve your marketing mix to adapt to your

customers’/buyers’ changing buying behaviors• Measure marketing spend by demand creation tactic and

track associated response rates• Determine marketing’s contribution using the SiriusDecisions

Demand Waterfall• Sales• Align with marketing on lead level definitions and demand

type per segment• Agree on focus of teleprospecting team and document

service level agreements


Recommended Research• The Pulse: European Demand Creation Budgets and Tactics• Demand Creation in Europe: Current State and Best Practices• Email Marketing in Europe: Best Practices for Compliance and Effectiveness• Event Strategy: Decision Drivers for Single-City or Multi-City European

Customer Events• Lead Development Effectiveness: Eight Key Factors• Localization: A Strategy for B-to-B Marketers• Content Localization: Key Considerations• The Evolving Role of the Demand Center• The SiriusDecisions Lead Spectrum, Expanded• Assessing Demand Type the Sirius Way• Marketing Automation: Field Marketing Activation

Thank You
