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On Target 2014 Julian Archer, SiriusDecisions

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On Target 2014 is the Go-To Conference for B2B Sales & Marketing. How to increase win rate with new sales and marketing technologies ? Julian Archer talks about the changing world and how the B2B marketing budget is being spent in different parts of the world and the effect and ROI of the different activities.

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Page 1: On Target 2014 Julian Archer, SiriusDecisions

© Copyright SiriusDecisions. All Rights Protected and Reserved. 1

Page 2: On Target 2014 Julian Archer, SiriusDecisions

Adopting to new B2B buyer behaviour in a connected and digital world

Julian Archer Research Director

Demand Creation Strategies LinkedIn: julianarcher Twitter: JulianArcher

[email protected] Tel: +31 653392741

Page 3: On Target 2014 Julian Archer, SiriusDecisions

© 2014 SiriusDecisions. All Rights Reserved

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SiriusDecisions Advisory Services

Interfaces Receive:

• Dedicated Account Team • Research portal access •  Analyst inquiry •  Access to benchmark data •  Annual custom benchmark

assessment •  Executive peer roundtables/

forums • Monthly research Webcasts

Executive Edge CMO

Demand Creation Strategies

Strategic Communications Management

Sales Operations Strategies

Channel Management Strategies

Marketing Operations Strategies

Portfolio Marketing

Adv

isor

y S

ervi

ces

Sales Enablement Strategies

Account-Based Marketing

Product Management

#OnTarget2014 #OnTarget2014

Page 4: On Target 2014 Julian Archer, SiriusDecisions

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Select Client List

#OnTarget2014

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Executive Summary

• Key issues

- B-to-b demand creation is increasing in complexity. This is driving the need for greater sales and marketing alignment

- Changes in buyer behaviour require marketers to adapt their strategies to align with buyers’ needs and preferences throughout the buying cycle

- Many organisations lack the process discipline and technology to measure marketing’s contribution to the business

• What you will walk away with

– Current reported tactic budget spend and perceived effectiveness driving enquiries at the top of the Demand Waterfall across EMEA

– An understanding of content’s evolving role in demand creation,

– An understanding of technology and measurement approaches that can drive companies to better performance

#OnTarget2014

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SiriusDecisions: EMEA Demand Creation Study

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Our Methodology

ü  Series of qualitative interviews

ü  Large-scale quantitative study

UK, 13%

France, 15%

Germany, 13%

Spain, 16%

Italy, 16%

Netherlands, 13%

Nordics, 13%

Ø Countries and regions represented

ü Over 400 Organisations

#OnTarget2014

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Profile of Participating EMEA Organisations

Industry

4%

7%

29%

17% 10%

7%

8%

18%

Software - SaaS based

Software - On premise

Professional services

Financial Services

Information Services

Computer/Telecommunications Hardware Healthcare

Other (please specify)

Go To Market Model

43%

20%

17%

13%

7%

Direct Sales Force

Inside Sales Force

Third Party Channel Partners Retail

14%

20%

13% 12%

11%

9%

21%

Less than 40 million EUR 40 to less than 200 million EUR 200 to less than 500 million EUR 500 to less than 1000 million EUR 1000 to less than 5000 million EUR More than 5000 million EUR Don’t know

EMEA Revenue

#OnTarget2014

Page 9: On Target 2014 Julian Archer, SiriusDecisions

EMEA Demand Creation Study Budget Allocation by Tactic

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SiriusPerspective:

12.9% 11.2%

10.1% 10.4%

6.6% 4.9%

4.7% 4.7% 4.6%

4.4% 4.2%

3.9% 3.1%

2.8% 2.6% 2.5%

2.2% 2.1% 2.0%

Online Banner Advertising Email campaigns

Live events (seminar / road show) Tradeshows

Direct Mail User Conferences

SEO Newsletter

Virtual Events Association Marketing

Search Keyword Sponsorship Contact list rental/purchase

Trials White Paper Downloads

Online Communities (external) Content Syndication

Demos Videos

Online Communities (Internal)

EMEA Budget Allocation by Tactic Today, 35 percent of the marketing budget is used for demand creation; of that, almost half is allocated to four tactics.

45%

34%

21%

Source: SiriusDecisions, EMEA Demand Creation Study, April 2013

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EMEA Budget Comparisons: Top 5 Tactics

Online Banner Advertising

Live Events (seminar/ road show)

Email Campaigns

Direct Mail

Tradeshows

UK FR IT DE SP NL NO

11.6

10.7

10.5

10.1

11.6 13.2 15.1 15.9 9.8 8.5 7.9

14.6 11.9 11.3 10.5 8.8 8.3 8.2

11.9 12.8 11.2 14.5 8.6 8.4 7.5

12.6 11.8 11.3 10.5 9.5 7.4 7.4

7.2

5.3

4.1

6.8 7.4 8.1 8.5 10.1

Average #OnTarget2014

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EMEA Demand Creation Study Most Effective Tactics Reported by EMEA Marketers

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SiriusPerspective: 5 Most Effective EMEA Tactics: Seller’s View

Five tactics were reported to be most effective in driving responses in EMEA.

#2

#3CV

#4

Exploring Possible Solutions

Committing to a Solution

#1

Suspect

Committing to Change

Suspect

Online Banner Ads

User Conferences

Trade Shows Live Events Email

#OnTarget2014

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SiriusPerspective:

Tac$c  Email  campaigns  Tradeshows    

Live  events  

Online  banner  ads  

User  conferences  Direct  mail  

Newsle=er  

SEO  

Most Effective Tactics for Driving Inquiry: Country-Level Three of the same tactics were rated the most effective across all key markets.

Nordic   NL   ES   IT   FR   DE   UK  

39.0% 29.4% 31.0% 30.3% 40.5% 39.5% 34.1%

31.5% 29.4% 42.5% 31.5% 39.3% 36.8% 44.7%

38.4% 51.7% 36.0% 56.0% 42.1% 40.0% 42.6%

36.3% 37.9% 37.1% 29.8% 30.3% 35.3%

28.1% 33.8%

35.3%

31.5%

30.6%

31.0% 30.3%

29.9%

#OnTarget2014

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SiriusPerspective: Tactics: Seller’s vs. Buyer’s View

While sellers rely heavily on outbound tactics, EMEA b-to-b buyers utilise other sources to educate themselves.

15

#2

#3CV

#2

#4

Exploring Possible Solutions Com

mitting to a Solution

Online Banner

Ads #2

#3CV

#2

#4

Exploring Possible Solutions Com

mitting to a Solution

Committing to Change

Call a Peer

Vendor Web site

Search Engines

Search Online

Ask Team

#1 Committing to Change

User Conf.

Trade Shows Email

Online Banner

Ads

Live Events

Direct Mail SEO

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SiriusPerspective: What Drives Change? B-to-B Buyer Behaviour

Up to 67 per cent of the buyer’s journey now occurs digitally, shortening the actual time for sales engagement.

①  Loosening of the Status Quo

Vendor Selection

Phase

Solution Phase

Education Phase

②  Committing to Change

③  Exploring Possible Solutions

④  Committing to a Solution

⑤  Justifying the Decision

⑥  Making the Selection Point of Prospect Intersection With Rep

Marketing

Sales

Marketing Is Taking the First

Sales Call

#OnTarget2014

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Link Content to Buyer’s Journey

#OnTarget2014

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Align Content and Programs to Buying Cycle

We may have a problem, or we are conceiving

a vision.  

Virtual  Events  Social  Media  Trade  Shows  White  Papers  

Blogs      

Thought Leadership

   Web  Site/SEO  Webcasts  Self-­‐Guided  

Demos  Product  Collateral  

       

We understand the problem and how it

connects to our business.  

Solution Knowledge

Your solution applies to our

need.  

Sales  Presentations  Webcasts  Live  Events  Case  Studies  Internal  Blogs  

 

Value Story

Your solution will have the

greatest impact on our

business.  

Trials  Proofs  of  Concept    Competitive  Tools  

SME  Access    

Solution Differentiation

The business case is justified

internally.  

   ROI    Tools  TCO  Tools  

Business  Case  Financial  Presentation  

Live  Events  

Financial Justification

We are confident on

moving forward.  

 Executive  Briefings  Analyst  Reports  Customer  References  

 

Decision Validation

Loosening of the Status Quo

Committing to Change

Committing to a Solution

Solution Education Vendor Selection

Exploring Possible Solutions

Justifying the Decision

Making the Selection

Page 19: On Target 2014 Julian Archer, SiriusDecisions

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Link Complexity of Buying Team from Cold to Close

#OnTarget2014

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The SiriusDecisions Re-architected Demand Waterfall

Close

Sales Qualification

Marketing Qualification

Inquiry Outbound Inbound

Teleprospecting Qualified Leads (TQLs)

Teleprospecting Accepted Leads (TALs)

Sales Generated Leads (SGLs)

Sales Accepted Leads (SALs)

Automation Qualified Leads (AQLs)

Teleprospecting Generated Leads (TGLs)

Sales Qualified Leads (SQLs)

Won Business PATENT PENDING

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Link Importance of Technology to Demand Creation - MAP

#OnTarget2014

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The Usual B-to-B Scenario

Sales Qualified Leads

Close 417 inquiries to

close 1 deal

Sales Acceptance

Marketing and Tele Qualification

Sales Qualification

Inquiries

417 inquiries to close 1 deal

Sales Acceptance

Marketing and Tele Qualification

Inquiry

Sales Qualification

80% No nurture/ qualification

100% Sales accepts everything/nothing

3% - ?? Inefficient use of sales resources

SQL 10% - ??

Poor pipeline dynamics

#OnTarget2014

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The Best-in-Class B-to-B Scenario

Sales Qualified Leads

Close 417 inquiries to

close 1 deal

Sales Acceptance

Marketing and Tele Qualification

Sales Qualification

Inquiries

70 inquiries to close 1 deal

Sales Acceptance

Marketing and Tele Qualification

Inquiry

Sales Qualification

9.3% Real lead qualification

85% Strong process that is adhered to

62% Sales becomes more efficient

SQL 29% - ??

Pipeline dynamics improve

#OnTarget2014

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Benefits of Marketing Automation

1. Visibility and Insight

•  Better measurement and diagnosis of cold to close process

2. Lead Nurturing Optimization

•  Clear disposition of each and every customer and prospect

3. Improved Conversion Rates

•  More efficient execution with process automation

•  Focus on data quality to support segmentation and targeting

•  Focus on sales and marketing alignment

#OnTarget2014

Page 25: On Target 2014 Julian Archer, SiriusDecisions

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SiriusPerspective: MAP Technology: Nordics Adoption and Utilization

Implementing multi-touch, integrated demand creation programs requires a marketing automation platform.

#3

#5

#1

#2

#3CV

#2

#4

Q) MAP currently in place? Of those having a MAP in place, 37.5% have standardized its usage. Most common usages include:

Q) Planning to implement within the next 24 months?

Source: SiriusDecisions, EMEA Demand Creation Study, April 2013

Yes 16%

No 84%

Yes 26%

No 74%

12.5% 25.0%

0.0% 50.0%

25.0% 37.5%

12.5% 0.0% 0.0%

12.5% 0.0% 0.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

Lead nurture programs

Lead scoring capabilities

Social Media Monitoring

Personalized content

Progressive forms

Personalized landing pages

Automatic lead conversion

Account scoring

Content reporting

Task creation

Partner acquisition

Other (please specify)

Page 26: On Target 2014 Julian Archer, SiriusDecisions

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SiriusPerspective:

Outbound Only Integrated Programs Lead to Close 15.3 7.2 Sourced Pipeline 15.5% 30%+ Close Rate 19% 24.5% Influenced Pipeline 52% 70% + Marketing Touches 25 + 15 - 20 Programs 50 + < 30% Program Design Single-Channel Multi-Channel Campaign Focus Product Solution Primary Source Email Web Marketing Pipeline Cost 2% - 3% .5% -1.5%

Best Practice: Integrated Marketing Mix – Why Bother? When inbound and outbound approaches are combined, more leads are generated at a lower cost.

Page 27: On Target 2014 Julian Archer, SiriusDecisions

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Action Plan

•  To drive differentiation in a highly competitive market, understand your buyers and their information needs at each stage of the buying process

•  As the marketing mix continues to evolve, avoid spreading your budget too thinly across various tactics

•  Continue to experiment and ensure tactics are aligning with buyer interaction preferences and information needs

•  Determine marketing’s contribution using the SiriusDecisions Demand Waterfall

27 #OnTarget2014

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Thank You!

Julian Archer [email protected]

#OnTarget2014