Digital Evolution in B2B marketing
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The document summarizes research from the CEB Marketing Leadership Council on the digital evolution in B2B marketing. It finds that customers now self-diagnose problems and decide on solutions before engaging sales. Marketing and sales must get involved earlier and disrupt customers' purchase criteria. This requires fewer, higher-impact ideas and concentrated execution. Content roles must be formalized and digital teams integrated, rather than operating in silos. Insights come more from smart human analysis than tools.
Digital Evolution in B2B marketing
- 1. The Digital Evolution in B2B Marketing 13 September 2012 Peter Pickus and Shelley West CEB Marketing Leadership Council®
- 2. A Framework for Member Conversations The mission of The Corporate Executive Board Company and its affiliates (CEB) is to unlock the potential of organizations and leaders by advancing the science and practice of management. When we bring leaders together, it is crucial that our discussions neither restrict competition nor improperly share inside information. All other conversations are welcomed and encouraged. Confidentiality and Intellectual Property These materials have been prepared by CEB for the exclusive and individual use of our member companies. These materials contain valuable confidential and proprietary information belonging to CEB and they may not be shared with any third party (including independent contractors and consultants) without the prior approval of CEB. CEB retains any and all intellectual property rights in these materials and requires retention of the copyright mark on all pages reproduced. Legal Caveat CEB is not able to guarantee the accuracy of the information or analysis contained in these materials. Furthermore, CEB is not engaged in rendering legal, accounting, or any other professional services. CEB specifically disclaims liability for any damages, claims or losses that may arise from a) any errors or omissions in these materials, whether caused by CEB or its sources, or b) reliance upon any recommendation made by CEB.
- 3. © 2013 The Corporate Executive Board Company. All Rights Reserved. MLC5230013SYN 3 ROAD MAP FOR THE PRESENTATION Rethinking Talent and Structure B2B Marketing’s New Mandate About Our Research Q&A
- 4. © 2013 The Corporate Executive Board Company. All Rights Reserved. MLC5230013SYN 4 Sources of Information Customers Use Customers’ Progress in Purchase Decision-Making Before Engaging Sales Don’t Call Us, We’ll Call You…Or Not 47% Suppliers 22% Third-Party Consultants/ Evaluators/Experts 23% Colleagues or Other Customers 8% Other Sources n = 545. n = 1,399. Customer Due Diligence Begins PurchaseCustomer’s First Serious Engagement with Sales 57% Complete Source: CEB Marketing Leadership Council 2012 Customer Purchase Decision-Making survey; CEB Marketing Leadership Council 2011 Customer Purchase Research survey. Customers increasingly look to non-supplier sources to guide purchase decisions… …and delay serious engagement with Sales while self- diagnosing their problems.
- 5. © 2013 The Corporate Executive Board Company. All Rights Reserved. MLC5230013SYN 5 Engaging Customers Wherever You Can Broad-based efforts in content and digital marketing have helped restore engagement… …boosting key performance metrics and helping identify sales opportunities earlier. Marketing Objectives: Awareness, Attention, and Engagement Performance metrics ■■ Website Traffic ■■ Time on site ■■ Social connections ■■ Newsletter subscribers ■■ E-mail click-thrus ■■ Content downloads ■■ Event attendance ■■ Lead pipeline Content Content Content Content Content Content Content Ads Ads Ads Ads Ads Ads Ads Ads Ads Ads Ads Ads Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Your ContentYour Content Your Content Your Content Your Content Your Content Your Content Your Content Your Content Your Content Your Content Your Content Your AdsYour Ads Your Ads Your Ads Your Ads Your Ads Your Ads Your Ads
- 6. © 2013 The Corporate Executive Board Company. All Rights Reserved. MLC5230013SYN 6 Overall Performance of Digital Efforts Perceived Effectiveness of Lead Generation Your Results May Vary Unfortunately, many marketers have seen only the intermediate benefits from these efforts, but not the economic impact. Marketing Report Card Web Traffic A E-mail Open Rates B+ Content Downloads B Leads B Connections and Subscribers B Business Report Card Quality Leads C Conversion Rates D Topline Growth F Reduced Price Pressure F 5–Superior 3–Adequate 1–Weak Marketing Sales n = 1,395 Sales and Marketing professionals from 43 B2B companies. 2.67 2.56
- 7. © 2013 The Corporate Executive Board Company. All Rights Reserved. MLC5230013SYN 7 Significant Changes in Hi-Per Rep Behaviors The Challenger Sale Effective sales reps focus on challenging key assumptions underlying customers’ points of view (and their purchase decision- making criteria) to push more deals in their favor. Original Purchase: ■■ Customer Set Criteria ■■ Deciding Factor: Price Disrupted Purchase: ■■ Supplier Guided Criteria ■■ Deciding Factor: Performance on Supplier Criteria Disrupt customer thinking High-performing reps reset buyer criteria by challenging customer assumptions. 2 1 Engage customers early High performers are getting in early to find and nurture their own leads.
- 8. © 2013 The Corporate Executive Board Company. All Rights Reserved. MLC5230013SYN 8 0.446 0.302 0.013 (0.047) (0.096) Drivers of Changing a Buyer’s Direction Customer Journey on Marketing-Engineered Disruptive Path Marketing’s New Mandate: Set Customers Up For Disruption Progressive marketers seek to teach customers and reset their purchase criteria… …with a focused and interconnected path of content and marketing efforts. Teaching the Customer Something New About Their Own Business Needs or Challenges Providing the Customer with Compelling Reasons Why It Was Necessary to Take Action Representing a Smart/ Expert Perspective Being Easy to Understand Being Accessible/ Quick to Find n= 545. Content ContentContent Your Content Your Content Your Content Your Content Your Content Your Content Your Content Your Content Your ContentYour Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content Content ContentContent Content Content Ads Ads Ads Ads Ads Ads Ads Ads Ads Ads Ads Your Ads Your Ads Your Ads Your Ads 0.013 (0.096) 0.302 (0.047) 0.446
- 9. © 2013 The Corporate Executive Board Company. All Rights Reserved. MLC5230013SYN 9 ROAD MAP FOR THE PRESENTATION Rethinking Talent and Structure B2B Marketing’s New Mandate About Our Research Q&A
- 10. © 2013 The Corporate Executive Board Company. All Rights Reserved. MLC5230013SYN 10 Diffused Content Efforts Digital Tactics Optimized in Siloes NOT FIT FOR PURPOSE Dispersed and loosely guided content efforts lack coherence and interconnectedness… …while siloed digital tactics optimize to individual goals, not collective customer impact. Business lines The Market Sales Corporate Communications Marketing Partners IT/Web SEO Social Media Paid Search Customer Communities Online Ads Strategy Strategy Strategy Strategy Strategy Measurement Measurement Measurement Measurement Measurement
- 11. © 2013 The Corporate Executive Board Company. All Rights Reserved. MLC5230013SYN 11 Organizational Content Governance Leading marketers appoint central content experts to advise business units in content production and facilitate cross-business activation in the marketplace. Information,Experience,Content EnterpriseStrategyandActivation Central Marketing Content Team Content Team Roles ■■ Synthesize and integrate “raw” content. ■■ Provide advice and frameworks to business units. ■■ Provide editorial recommendations for digital content. ■■ Support demand generation campaigns. Business Unit Marketing Business Unit Marketing Business Unit Marketing
- 12. © 2013 The Corporate Executive Board Company. All Rights Reserved. MLC5230013SYN 12 38 CSC WORLD | SUMMER 2012 2009 2 010 2015 2020 BY THE NUMBERS BIG Data BIGGER POtENtIaL once you get your mind around just how big our data has become, the next trick is to open your mind to the possibilities created by having all that data. the industry term is Big data, but it really ought to be called huge data or perhaps Ginormous data. In 2011, the total data that had been created was 1.8 zettabytes. A zettabyte is a tril- lion gigabytes, or sextillion bytes. By 2020, IdC expects annual data generation to increase 4,300% from 2009, with total data produced to be around 35 zettabytes.1 more than 70% of the data is generated by individuals, and herein lies the opportunity for enterprises: to access this data, combine it with the enterprises’ data and analyze it all for new insights. emC says the number of customers storing a petabyte (1 million gigabytes) or more was 1,000 in 2010, and estimates that it will be 100,000 customers before the end of the decade. think about how much data you generate every day. You take a picture and store it in the cloud. maybe you post a video on Youtube. Certainly you make a few purchases on your credit card, send email, browse more than a few websites or post a tweet. now multiply those actions by billions of people. Add in data generated by sensors, from weather satellites in space, to manufacturing sensors on a factory floor, to sensors on the ocean floor, to sensors in your car. An exabyte here, an exabyte there, and pretty soon you’re talking about really massive data. Getting to information they say that information is power, but information shouldn’t be confused with data. Power comes from mining the data to get at the information it contains. that’s where things get interesting. most of the data we are generating and will continue to generate is called “unstructured” data. that means that much of it doesn’t fit neatly into the fields of a relational database. unstructured data is less rigid, less ordered and more interrelated than traditional data. All those photos, videos and passages of text fall into this category. Given the volume, variety and velocity of data, the tools for analysis are changing. more people can peer into the data in more ways for more meaning. Analytics is no longer confined to a few people working with a subset of data on a small analytics server off in a corner. today analytics is moving to center stage as more people can access the tools and analyze all the data, leveraging data from multiple sources and unleashing the power of a distributed grid of computing resources to do the heavy lifting involved in the analysis. Analytics is now moving to the “predictive edge,” where the analysis is more time-sensitive and closes in on real-time results, as CsC’s William Koff and Paul Gustafson write in their research report, “data revolution.” practical uses one example they highlight is insurance fraud analysis. In the past, companies may have run fraud analysis every two months — which may have meant that fraudulent claims had already been paid. With Big data tools, insurance companies can run those analyses twice a day, catching fraudulent claims in hours. the production of data is expanding at an astonishing pace. experts now point to a 4300% increase in annual data generation by 2020. drivers include the switch from analog to digital technologies and the rapid increase in data generation by individuals and corporations alike. Size of Total Data Enterprise Managed Data Enterprise Created Data .79zb 1.2zb .96zb .36zb 2012: customers will start storing 1 EB of information. by Jeff Caruso THE RApID GROWTH OF GLOBAL DATA ACTIvATINg ORgANIzATIONAl POINTS OF vIEW While business unit content may contain strong ideas… …content only comes to life when the central team diligently integrates and activates it. Understanding Big Data Analysis Paralysis Big Data in Healthcare The Data Revolution White Paper 60 pages Idea quality Idea relevance Connectedness of related ideas Audience engagement Shift to pan- organizational perspectives and web centers Shift to visual, interactive, and mobile formats
- 13. © 2013 The Corporate Executive Board Company. All Rights Reserved. MLC5230013SYN 13 Campaign-Based Integration Ongoing Digital Integration A Process Fix Can Only Go So Far… While campaign planning frameworks are useful for intermittent collaboration… …the next threshold of digital performance requires continuous, collective management. August November Paid Search External Communities Organic Search Blogs and Communities Social Media Platforms Web sites Content Assets Online Properties Linear Workstreams CrossTeam Checkpoint Meetings Ongoing Interactive Workstreams Define Launch Objectives Concept Testing Event Plan Vertical Imagery Trade Show Plan
- 14. © 2013 The Corporate Executive Board Company. All Rights Reserved. MLC5230013SYN 14 A Collectivist Approach EMC pulls together dispersed specialists into one team supported by an integrated listening platform to enable a more collective management approach. VP, Central Marketing Communities: ■■ EMC customer communities ■■ Employee communities ■■ Incentives programs Media: ■■ Paid Search ■■ Site Optimization ■■ Other Paid Media Marketing Sciences: ■■ Data Quality ■■ Analytics ■■ Optimization Social Nurturing Program Social Media: ■■ Social media platforms ■■ External communities ■■ Enablement and policy Newly Formed Integrated Listening Command Center
- 15. © 2013 The Corporate Executive Board Company. All Rights Reserved. MLC5230013SYN 15 Impact on Realizing Business Value from Data Key Human-Centric Analytic Responsibilities But What About Our Siloed Data? Emphasis on system investments and data governance may obscure an underlying truth… …that insights and action logic are primarily based on smart, thorough human analysis. Information Availability Information Quality and Usefulness Analytical Skills and Capability Model Building Experiment Design Interpretation Decision Support Under-Funded Data Imperatives: ■■ Acquiring the right minds ■■ Unburdening high performers ■■ “Integrating” analytics staff Source: CIO Executive Board research (a division of CEB). 5% 27% 68%
- 16. © 2013 The Corporate Executive Board Company. All Rights Reserved. MLC5230013SYN 16 Key Takeaways Customers are self-diagnosing their problems and deciding on potential solutions before you know about it. Sales’ and Marketing’s joint mandate: 1) get in earlier and 2) disrupt purchase criteria in your favor Implications: ■■ Pursue fewer, higher-impact ideas and more concentrated execution. ■■ Don’t shortcut activation of the ideas and expertise you already have. ■■ Formalize content roles and promote a publisher mindset, not just a marketer mindset. ■■ Bring digital teams closer together—planning processes can support integration only so far. ■■ Prioritize advancement of smart, disciplined human analysis over sophisticated tools and Big Data governance initiatives.
- 17. © 2013 The Corporate Executive Board Company. All Rights Reserved. MLC5230013SYN 17 ROAD MAP FOR THE PRESENTATION Rethinking Talent and Structure B2B Marketing’s New Mandate About Our Research Q&A
- 18. © 2013 The Corporate Executive Board Company. All Rights Reserved. MLC5230013SYN 18 WHAT TO DO NExT CEB Marketing Leadership Council and Google are pleased to offer the full research for free at CEBurl.com/digital-evolution. The Digital Evolution in B2B Marketing Organizations Research Conducted by Marketing Leadership Council In Partnership with CEB Marketing Leadership Council® Output: 06:21PM Aug 29 2012 Modified 06:04PM Aug 29 2012 © 2012 The Corporate Executive Board Company. All Rights Reserved. MLC3413412SYN www.executiveboard.com Client Site: www.mlc.executiveboard.com The Digital Evolution in B2B Marketing Organizations Research Conducted by Marketing Leadership Council In Partnership with Marketing Leadership Council®
- 19. © 2013 The Corporate Executive Board Company. All Rights Reserved. MLC5230013SYN 19 ROAD MAP FOR THE PRESENTATION Rethinking Talent and Structure B2B Marketing’s New Mandate About Our Research Q&A
- 20. © 2013 The Corporate Executive Board Company. All Rights Reserved. MLC5230013SYN CEB Marketing Leadership Council®