eMarketer Webinar: B2B Marketing Automation—What’s New in 2016

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B2B Marketing Automation:

What’s New in 2016

Bryan Yeager

Senior Analyst

April 14, 2016


Marketing Automation, Defined

Software platforms and technologies used to

automate numerous steps along the path to conversion,

including campaign management, customer

segmentation, and lead generation, nurturing and

scoring to efficiently market via diverse channels.

Source: eMarketer, Apr 2016


Why Do B2B Marketers

Need Automation Tech?


The B2B buying cycle isn’t getting shorter

53% of US B2B buyers polled in June 2015 said their

purchase cycle length had increased vs. a year before.

Only 9% said it had decreased. (Demand Gen Report, June 2015)

60.2% of US B2B buyers use more sources for

purchase evaluations; 71% conduct detailed ROI

analysis before making final decision. (Demand Gen Report, June 2015)

For 44% of US B2B professionals, it takes at least 4

months to make a major purchase decision. (IDC, March 2015)


The buyer journey occurs long before direct

contact with a B2B company

“Today, our customers are already 60%

into their buying process before they

talk to any sales rep. They are assessing,

selecting, finding and reviewing all of their

information online, mostly using mobile

platforms.”

—Vincent Brissot, Vice President, Worldwide

Channel Marketing and Operations, HP Inc.


The proportion of B2B marketing inquiries

coming from websites continues to grow

58%

B2B Inquiries from Websites - 2010

71%

B2B Inquiries from Websites - 2015

Source: SiriusDecisions, Nov. 2015Image Credit: Nando Ramirez/Noun Project


Content creation efforts continue upward

trajectory among B2B marketers


When buyers do engage with vendors, they

expect a quick response

Setting aside

financial terms,

lack of

responsiveness

and speed of

delivery were

contributors to

weaker buyer

relationships with

vendors


B2B marketers’ top objectives for 2016 align

with their marketing automation goals


Delivering relevant, personalized experiences at

scale helps marketers meet their goals

1. Personalized engagements that take customer

preferences, past engagements and known preferences

into account (49%)

2. Omnichannel communications that are consistent and

trusted (41%)

3. Consistent experiences in all channels, including

offline and in-store (36%)

Marketing campaign strategies critical to realizing greater revenue and profitability

from customer engagement, according to marketing execs in North America:

Source: CMO Council/Pegasystems, Q4 2015


B2B marketers squeezing more value out of

content marketing, automation, social media

2015 2016

Marketing initiatives with the greatest effect on B2B marketers’ businesses:

Content marketing

Marketing automation

Social media marketing

55% 63%

41% 50%

30% 45%

Source: Regalix, Jan. 2016

14.5%

22%

50%


B2B Marketing Automation

Benchmarks: Adoption and Usage


Deciphering marketing automation adoption

~5%<$250M revenue

~7%$250M–$1B revenue

~8%$1B–$5B revenue

~12%$5B+ revenue

Source: Mintigo and VentureBeat, Jan. 2015


Marketing automation comparative estimates

* = more than 2/3 of respondents were B2B marketers

Openprise 35% US Marketing + Sales Professionals Nov 2015

Skyword 34% US Marketers July 2015

Forrester Consulting 75% US B2B Marketing Decisionmakers Aug 2015

DemandWave 62% US B2B Marketers Nov 2015

Regalix 79% B2B Marketers Worldwide Apr 2015

Ascend2 71% Senior Marketers Worldwide* Feb 2016

Ascend2 59% Marketing Professionals Worldwide* Feb 2016

Ascend2 42% Marketing Professionals Worldwide* Aug 2015

Annuitas 86% US B2B Enterprise Marketers Aug 2015

Adoption Base Date


Marketing

automation is

high on the

2016 purchase

wish list

among US

marketing

managers


More US client-side marketers are working with

startups, including for marketing automation

36%

Top areas/tactics for which client-side

marketers work with startups

1. Social media (53%)

2. Content dev/management (49%)

3. Research/analytics (45%)

4. Mobile advertising (43%)

5. Marketing automation (39%)

Source: ANA/Consumer Technology Association (CTA), Sept. 2015


A team of

power users

managing the

use of

marketing

automation is

the most

common

approach for US

B2B enterprise

marketers


Majority of B2B marketers expect to see benefits

from marketing automation in less than a year

3 months or less

4 to 6 months

6 to 9 months

10 months to 1 year

More than 1 year

29%

34%

20%

14%

3%

Source: Ascend2, Feb. 2016 Image Credit: Creative Stall/Noun Project

Timeframe from marketing automation

implementation to benefit realization:


Marketing automation platforms being tied to the

top channels used by B2B marketers

US B2B Marketer

Digital Marketing

Budget Allocation

1. Website/SEO

(25%)

2. Direct response

(21%)

3. Mobile (18%)

Digital Channels

Most Effective at

Meeting WW B2B

Marketers’ Goals

1. Website (86%)

2. Email (72%)

3. SEO (54%)

Channels Used as

Part of the US B2B

Marketers’ Mix

1. Email (95%)

2. Social media

(93%)

3. Organic Search

(88%)

Source: Demandbase, Feb. 2016 Source: DemandWave, Feb. 2016 Source: Regalix, Jan. 2016


… as well as to gain better understanding about

and support the B2B buying journey

Resources used by marketing

execs in North America to better

understand customers, prospects,

markets:

1. Corporate website (74%)

2. Sales data and CRM-based

customer records (68%)

3. Customer satisfaction surveys

(57%)

Most important factors that are

part of WW B2B marketing execs’

digital initiatives:

1. Understanding the customer

buying journey (78%)

2. Mapping right content,

channels to key buyer journey

stages (77%)

3. Cross-channel measurement,

attribution (53%)

Source: CMO Council/Pegasystems, Q4 2015 Source: Regalix, Jan. 2016


These top

channels are

critical for B2B

marketers to

drive demand

through a

variety of

tactics …


Advancing email marketing with lead nurturing

Most important

tactic in 2015

Most important

tactic in 2016

EmailLead

Nurturing

Source: Spear Marketing Group, July 2015


Collapsing the sell cycle with lead nurturing

Majority (81%) of lead nurturing campaigns used at

early stage of buying process, indicating room for

expansion. (Demand Gen Report, July 2015)

Lack of content is a key lead nurturing challenge.

48% of B2B marketers didn’t have content to match

their target audience. (CMO Council, Q2 2015)

Two-thirds of US B2B marketers use lead nurturing

for sending different emails based on actions,

interests of targets. (Demand Gen Report, July 2015)


4 in 10US B2B marketing professionals

use tools within their marketing

automation platforms to score leads

Source: EverString, Sept. 2015

Lead scoring helps

with prioritizing

marketing, sales

efforts


Connecting Marketing Automation

with Other Systems


Connecting the rest of the company to the

marketing technology stack

4 to 6

months

most common amount of

time it takes US marketers

to fully integrate new tech

into marketing efforts

Source: Skyword, July 2015

US marketers’ challenges to

creating data-driven initiatives:

1. Breaking down data silos

between departments (61%)

2. Gathering and parsing data (56%)

3. Defining audience and customer

segments (56%)

Source: Forbes Insights/Turn, Sept. 2015


And B2B

marketers in

particular are

dealing with

challenges like

inconsistent

data across

the many

technologies

they operate


For marketing

automation

users, data

quality is a top

challenge that

needs to be

addressed


70% to 80% of US B2B

marketers claim their marketing

automation systems are integrated

with their CRM systems ...

But less than half have bidirectional

integration where CRM changes can

be applied to marketing automation

(and vice versa)

Sources: Annuitas, Aug. 2015; DemandWave, Nov. 2015Image Credit: Alexey Sohrin/Noun Project


Integration with other systems will help move

the revenue needle, drive automation tech ROI

“Count yourself among the lucky few if you are

leveraging big (and not so big) data for marketing

purposes. Because of system silos, data

quality issues, incompatible data

formats and lack of resources, the full

potential of marketing technology projects is not

being fulfilled. Integration is what will drive

your ROI on marketing technology even

beyond 2016.”

—Kashyap Kompella, Research Director, Real Story Group


Analytics, reporting capabilities are of growing

importance to B2B marketers using automation

Most useful features of a

marketing automation

system

1. Analytics and reporting (51%)

2. Campaign management (46%)

3. Lead nurturing (46%)

Systems from which US

B2B enterprise marketers

pull KPIs

1. CRM (76%)

2. Marketing automation (69%)

3. Web analytics (63%)

Source: Ascend2, Feb. 2016 Source: Annuitas, Aug. 2015


Optimization enabled via analytics, attribution

“We’ve shifted to optimization now that

marketing automation is more ubiquitous. We have

the chance to start leveraging the data that’s coming

from its widespread use in programs running

worldwide to better understand what’s

working and what isn’t. The newest tools we’ve

brought on board are analytics intelligence to get

really deep with marketing program attribution to help

optimize our mix.”

—Cynthia Gumbert, Vice President, Marketing Technology

and Demand Analytics, CA Technologies


But it’s not all about the technology. Alignment

with content and sales helps drive success

“If you don't have a good

strategy and strong

alignment with

sales, you’re not going

to deliver the results that

you would like, in spite of

all the accolades that the

software may receive.”

—Tip Rose, Vice President,

Enterprise Digital Marketing,

Cardinal Health

“Marketing technology

experts cannot work

in a vacuum. They

need a set of processes,

content and strategy to

work with them to help

drive the return on

investment from that

technology.”

—Rishi Dave, CMO,

Dun & Bradstreet


Account-Based Marketing:

Marketing Automation’s Role


Account-based marketing (ABM) buzz ramps up

Source: Google Trends, Jan. 2014–Apr. 2016


What exactly is ABM?

Strategic, collaborative approach between marketing

and sales to identify, target and convert accounts

Target accounts are prioritized by lifetime value

Focuses on key decision-makers within those accounts

Relevance with content, conversations required

Emphasizes quality over quantity

Difficult to scale without the right technology


Scaling account-based marketing with analytics

“Account-based marketing is really about leveraging

your data and analytics to prioritize the

right set of accounts to focus your

marketing efforts. We’re using predictive

analytics to assess and prioritize the set of accounts

that we go after, both from a marketing and a sales

perspective. We use first- and third-party data to build

models based on what we’ve done with an account,

what we could do with that account and other

accounts where we’ve been successful.”

—Rishi Dave, CMO, Dun & Bradstreet


Creating value and insight during the sales

process continues to be a B2B challenge


They may not

be aware, but

many B2B

marketers

have already

taken steps to

enable ABM,

such as using

persona-based

marketing to

drive content


Marketing automation platforms act as the

orchestration layer for ABM programs

2 of 3B2B marketers

worldwide use


within their ABM teams

Source: SiriusDecisions, April 2015

45%plan to make tech

investments in


platforms, second only

to account-based

advertising

Image Credit: ImageCatalog/Noun Project


Tech isn’t the top reason why B2B

marketers don’t practice ABM. Just

23% said they don’t have necessary

tech vs. 45% citing higher priorities …

But 50% of ABM practitioners couldn’t

measure a change in revenues despite

having a favorable view on its use and

potential revenue impact.

Sources: Account Based Marketing Consortium/Demand Metric, Dec. 2015


Overcoming Top Marketing

Automation Challenges For

2016 and Beyond


B2B marketers continue to face some of the

same challenges they’ve had for years

Difficulty

measuring ROI,

an elongated

sales cycle and

lead quality

remain key

hurdles to

overcome


With marketing

automation in

particular, B2B

marketers are

vexed by a lack

of strategy,

system

complexity and

data quality


Businesses need to adapt to changes in how and

where people spend their time with media

32.1%

2011

47.7%

2016

Source: eMarketer, Oct. 2015

26.0%

Nondigital

Digital

Mobile Nonvoice

Time Spent

with Media by

US Adults


B2B marketers need to be prepared for mobile’s

growing prevalence

Accessing

content via

desktop remains

common, but

8 in 10 B2B

buyers said they

also use

smartphones for

that same

purpose


Mobile marketing budgets are expected to grow

for US B2B product and services companies

5.1%

B2B Product Today

10.5%

B2B Product in 3 Years

5.0%

B2B Service Today

13.0%

B2B Service in 3 Years

Mobile Marketing

Budget Allocation

Source: Duke University’s Fuqua School of Business, Feb. 2016


Making websites

mobile-friendly

is one area

where B2B

marketers are

making progress

with mobile


What’s New with Marketing Automation in 2016

Marketing automation platforms are helping B2B marketers deliver

relevant, personalized experiences at scale to help them more

effectively meet a variety of goals.

It may seem like everyone is using marketing automation today, but

there’s still plenty of B2B companies that have yet to do so. And even

current users may not be maximizing its use.

Connecting marketing automation with other technologies can unlock a

great deal of value, but data, tech and organizational hurdles persist.

Account-based marketing isn’t a new concept, but its practice is

gaining momentum among B2B marketers thanks to the use of

automation to help programs scale.

Measurement, strategy and mobile are key marketing automation

challenges that B2B marketers will face in 2016 and beyond.

Today’s Expert

Katie DoyleProduct Marketing Director

[email protected]

Salesforce Pardot

Marketing

Sales

Marketing

Today, B2B Buyers Forge Their Own Paths

Sales

You Must Speak the Language of the CustomerKnowing your buyer is key to agile marketing and selling

Smart Timely 1 to 1

Execute adaptive

marketing campaigns

Engage buyers before

they engage you

Make every touch point

relevant and contextual

Pardot B2B Marketing Automation by SalesforceDrive sales with intelligent, adaptive marketing

Target the best leads with your most relevant offers

Bring sales & marketing together onto one platform

Create marketing messages buyers want to receive

Boost close rates and increase marketing ROI

+

Valpak Creates More Sales Opportunities with Pardot

“Pardot enabled us to create bigger and better returns from our website.”

Amanda DeBlieck, Marketing Planning & Strategy Director

Valpak, a Cox Media company, specializes in direct mail & digital marketing for businesses nationwide

Redesigned the Valpak B2B Website with Pardot to create more leads and higher conversion rates

Within 90 days of launching, saw 5,000+ leads and a 30% increase in conversion rates

Closed more than $500,000 in revenue directly from the new website


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Bryan Yeager

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