Optimize The funnel for B2B

Every connection is a new opportunity™

Database Marketing Enables Enterprise B2B Revenue

Demand Generation, Lead Optimization, Campaign Dependencies

James Vander Putten

ChangeMarketing

February 2014

February 26, 2014 PBI Internal use only 2 2

There are two kinds of B2B marketing … selling products versus selling solutions

Product Marketing • High product variety

• Low value (generally)

Solutions Marketing • Low product variety

• High value

Focus: Enterprise Solution Marketing


Enterprise Solutions marketing is a challenging process

Challenge 1- Too many decision makers and influencers

Product Marketing- 1 : 1 Solutions Marketing- 1: Many



Challenge 2- too many cooks



Challenge 3- too many channels to sell through

Ecommerce

Direct

Selling

Channel/ Partner Selling

• Selling To

• Selling For

• Selling With Channels



Challenge 4- too many processes to manage



Challenge 5- too much to measure



Challenge 6- too much time… enterprise deals can take 6 – 18 month from discovery to close

Product Availability

Influencers Cooks

Channels Processes Measurement

Closed Deals


15 years ago, B2B solutions marketing was a linear process managed by sellers

Closing Selling Marketing Advertising

Prospects

Customers

Create awareness … create leads… enable trial, promote additional sales,

create an advocate


But the internet came along and changed everything

Based on Hubspot


Sellers now have to build a process that is multi-channel and “always on”


Which is a now non-linear process referred to as the “Buyers Journey”

4

3

2

1


Status Quo

Is Failing Make the

Selection

Justify the

Decision

Commit to

a Solution

Explore the

Possibilities

Committing

To Change

Today Marketing and Sales align to leverage the buyer’s journey

Buyers Journey

Lead Journey

Inquiry or

Prospect Sales

Accepted Lead

Sales

Opportunities Marketing

Qualified Lead

Won

Deal

Rep

uta

tio

n

Rep

uta

tio

n


The new common language of B2B marketing

Marketing

Qualified

Leads

Inquiries

Sales

Accepted

Leads

Sales

Qualified

Leads

Deals

• Total number of hand raisers via web, events etc.

• Qualified using Marketing tactics based on sales requirement

• Deemed Qualified for first contact by Sales

• Being worked by Sales

• Sales owns specific pipeline $

• Opportunities “closed” … real revenue


Regardless of entry point, there is a new framework for the buyer’s journey

Based on Sirius Decisions

Committing to change

Exploring possible solutions

Committing to a

solution

Justifying the

decision

Identifying additional

needs

Buyer’s journey …

Lead Management Framework …

Messaging across the journey…

Inquiries Qualified

Leads

Sales Accepted

Leads

Sales Accepted

Leads Deals

Solution &

Selection Solution Education Education Solution Solution Selection Education

Marketing

and Sales Marketing Sales


The waterfall view tips the funnel on its side as inquiries cascade to deals

Key

Waterfall

Metrics

How many

Conversion rates

Cycle time

Costs

Pipeline revenue

Actual revenue

Return on

investment

Lead

Dispositions

Stages

Based on Sirius


Data flows for Marketing and Sales optimization

• Drive to forms • Owned Media

• Paid media

• Earned media

• Data base- MA

Initial Data Capture

• Engage • Touch type

• Bizo-graphics

• BANT

• Lead Scores

• Message Management

• Data base- MA

Marketing Automation • Sell

• Profiles

• Dispositions

• Best next offer

• Data base- SFA

Sales Force Automation

Reputation Education Solution Selection


The end game- qualified leads … closed deals …

Core campaign processes that present your value propositions to your target audience • Understanding demand type

• Identifying target personae

• Creating content supply chain across the funnel

• Creating a marketing tactic mix recommendation

• Reversing the waterfall to build the business case


Understanding demand type*

Based on Sirius

New Concept- IBM laptop computer ~1986

• Disruptive

• No recognized need

• Purchase not allocated

New Paradigm- IBM lap top intros ‘90s

• Addresses existing need

• New processes

• Some new innovation

Existing Market- SOP product, many competitors ‘20s

• Replacement

• Well tested

• Lower priced


Understanding demand type*

Based on Sirius

New Concept- Personal desktop computer

• Disruptive

• No recognized need

• Purchase not allocated

New Paradigm- IBM lap top computer

• Addresses existing need

• New processes

• Some new innovation

Existing Market- SOP product, many competitors

• Replacement

• Well tested

• Lower priced

Demand type affects-

Personae focus

Messaging

Offer types

Touch-point channels

Web

Events

eCommerce

Channels

Direct selling


Who will make/influence the buy decision?

Review/synthesize information

Prepare recommendations for management

Very tech savvy

Focus on detailed solution specs

Consults re: project execution

How is this going to make my job easier and more productive

Find solutions to meet LOB/business needs

Ensure HW/SW fit

High-level and strategic

Responsible for project delivery

Plan/execute long-term vision

Compete effectively

What is it going to cost?

What is its financial value

Holistic view of the organization

Accountable for project success

Project evangelist

Results/metrics driven

Consults- outcome requirements

Views solution as a business project, not an IT project

Confirms hurdle rates

Decision Maker

CIO, CTO- IT Lead

Researcher

LOB Leader

Financial Analyst


Identifying target personae

Review/synthesize information

Prepare recommendations for management

Very tech savvy

Focus on detailed solution specs

Consults re: project execution

How is this going to make my job easier and more productive

Find solutions to meet LOB/business needs

Ensure HW/SW fit

High-level and strategic

Responsible for project delivery

Plan/execute long-term vision

Compete effectively

What is it going to cost?

What is its financial value

Holistic view of the organization

Accountable for project success

Project evangelist

Results/metrics driven

Consults- outcome requirements

Views solution as a business project, not an IT project

Confirms hurdle rates

Decision Maker

CIO, CTO- IT Lead

Researcher

LOB Leader

Financial Analyst

• Prioritize personae to

optimize budgets and

content supply chain

• Who matters most

• Where else can they

get the information

they need


Do you have the content you need at each stage for that personae?

Based on Sirius

Testimonials

Newsletters

Case studies

White papers

Video

Events/Webcast

s

Podcasts

Blogs/

microblogs

0%

10%

20%

30%

40%

50%

60%

70%

Early Middle Late

White papers

Peerreferrals

Webinars

Email

User Events

Analystreports

Case Studies

Education Solutions Selection


Getting there… what you have … what you need … who … what stage

Are there solutions out there for my problem?

Why are your solutions best for me?

How do I get the best prices for your solution?


What you end up with is the content optimized funnel

Key Words Key Words Key Words

SMM

PPC

SEO

DM

EM

Print

Outdoor

Collateral

E&TS

Buyer’s Journey -

How do I get the best solution

and offer from Company X

Buyer’s Journey -

There are solutions for my

problems

1

Buyer’s Journey -

Company X has solutions for

my problem

2

Buyer’s Journey -

Company X has the best

solutions for my problem

3

4 Content Bits


Content requirements for a new paradigm product - 3 personae… 4 stages

Touch-point Reputation Education Solution Selection

Social Media

Paid Search

www.company

www.partners

Banners

Marketing

Automation

Offline events

Online events

Tele-marketing

SFA


Content requirements for a new paradigm product - 3 personae… 4 stages

Touch-point Reputation Education Solution Selection

Social Media

Search

www.company

www.partners

Banners

Marketing

Automation

Offline events

Online events

Tele-marketing

SFA

If you only create

• 4 personae

• 4 stages

• 3 pieces of content each stage

• 10 touch points

• 4 updates annually

• 1,440 pieces of content needed


Reversing the waterfall to build the business case

44,444$ Marketing Program Costs

200$ Cost per Inquiry

222 # Inquiries Required

20.0% % Inquiries That Become MQLs

44 # MQLs Required

75.0% % MQLs That Become Opportunities

33 # Opportunities Required

30.0% % Opportunities That become Deals Won

10 # Deals Won

200,000$ Average Deal Size

2,000,000$ Marketing sourced Revenue

20.0% % Revenue from Marketing

10,000,000$ Total Revenue Target

30.0% Product Margin

600,000$ Marketing Margin $s Produced

14 : 1 Margin $s to Expense $s Ratio

Solution

Education

Selection Start

Here

February 26, 2014 PBI Internal use only 29

Business case for paid search


The case for paid search

Issue Benefit

Important across most stages Yes … Reputation, Education,

Solutions

Do we have content Yes …forms and offers … click-

to’s

Aligned process Yes- drives Marketing Automation

Easy to deploy Yes

Scalable (regions) Yes- test in one region then rollout

to others

Controllable Yes … day parts, days, total

spend, position based

Trackable Totally- cost per click, #

conversions, cost per conversion


With a 20% ROMI hurdle rate, is PPC worth doing?

Item

Target

Products

Halo

Products

Total

Products

12 Month Deal Revenue

Number of clicks 16,575 - 16,575

Cost per click 9.25$ -$ 9.25$

Total Marketing Costs 153,319$ -$ 153,319$

Clicks that convert to Qualified Leads 8.0% -$ 8.0%

# Qualified leads 1,326 95 1,421

% Leads that become Deals 20.0% 21.0% 20.1%

# Deals 265 20 285

Avg Deal $s 2,800$ 11,775$ 3,428$

Total deal $'s 742,560$ 234,911$ 977,471$

Margin % 18.0% 22.0% 19.0%

Margin $s 133,661$ 51,680$ 185,341$

Net Contribution (19,658)$ 51,680$ 32,023$

ROMI -12.8% 100.0% 20.9%

# Qualified Leads still in Pipeline 1,061 75 1,136

% that become Deals 15.0% 10.5% 14.7%

# Deals 159 8 167

Average Deal $s 2,100$ 7,065$ 2,334$

Deal $s 334,152$ 55,674$ 389,826

Margin % 18.0% 22.0% 18.6%

Margin $s 60,147$ 12,248$ 72,396

Net Contribution 60,147$ 12,248$ 72,396

ROMI 100.0% 100.0% 100.0%

Total Marketing Costs 153,319$ -$ 153,319

Total Contribution $s 40,489 63,929 104,418

ROMI 26.4% 100.0% 68.1%

24 Month Contribution and ROMI

12 Month Analysis for PPC

13 - 24 Month Pipeline Projections

(1)


With a 20% ROMI hurdle rate, is PPC worth doing if you add in year two deals?

Item

Target

Products

Halo

Products

Total

Products








# Deals 265 20 285

Avg Deal $s 2,800$ 11,775$ 3,428$

Total deal $'s 742,560$ 234,911$ 977,471$

Margin % 18.0% 22.0% 19.0%

Margin $s 133,661$ 51,680$ 185,341$


ROMI -12.8% 100.0% 20.9%



# Deals 159 8 167

Average Deal $s 2,100$ 7,065$ 2,334$

Deal $s 334,152$ 55,674$ 389,826

Margin % 18.0% 22.0% 18.6%

Margin $s 60,147$ 12,248$ 72,396


ROMI 100.0% 100.0% 100.0%



ROMI 26.4% 100.0% 68.1%




(2)


With a 20% ROMI hurdle rate, is PPC worth doing … 24 month revenue?

Item

Target

Products

Halo

Products

Total

Products








# Deals 265 20 285

Avg Deal $s 2,800$ 11,775$ 3,428$

Total deal $'s 742,560$ 234,911$ 977,471$

Margin % 18.0% 22.0% 19.0%

Margin $s 133,661$ 51,680$ 185,341$


ROMI -12.8% 100.0% 20.9%



# Deals 159 8 167

Average Deal $s 2,100$ 7,065$ 2,334$

Deal $s 334,152$ 55,674$ 389,826

Margin % 18.0% 22.0% 18.6%

Margin $s 60,147$ 12,248$ 72,396


ROMI 100.0% 100.0% 100.0%



ROMI 26.4% 100.0% 68.1%




(3)


With a 20% ROMI hurdle rate, is PPC worth doing … halo revenue?

Item

Target

Products

Halo

Products

Total

Products








# Deals 265 20 285

Avg Deal $s 2,800$ 11,775$ 3,428$

Total deal $'s 742,560$ 234,911$ 977,471$

Margin % 18.0% 22.0% 19.0%

Margin $s 133,661$ 51,680$ 185,341$


ROMI -12.8% 100.0% 20.9%



# Deals 159 8 167

Average Deal $s 2,100$ 7,065$ 2,334$

Deal $s 334,152$ 55,674$ 389,826

Margin % 18.0% 22.0% 18.6%

Margin $s 60,147$ 12,248$ 72,396


ROMI 100.0% 100.0% 100.0%



ROMI 26.4% 100.0% 68.1%




(4)


With a 20% ROMI hurdle rate, is PPC worth doing … 24 month all revenue?

Item

Target

Products

Halo

Products

Total

Products








# Deals 265 20 285

Avg Deal $s 2,800$ 11,775$ 3,428$

Total deal $'s 742,560$ 234,911$ 977,471$

Margin % 18.0% 22.0% 19.0%

Margin $s 133,661$ 51,680$ 185,341$


ROMI -12.8% 100.0% 20.9%



# Deals 159 8 167

Average Deal $s 2,100$ 7,065$ 2,334$

Deal $s 334,152$ 55,674$ 389,826

Margin % 18.0% 22.0% 18.6%

Margin $s 60,147$ 12,248$ 72,396


ROMI 100.0% 100.0% 100.0%



ROMI 26.4% 100.0% 68.1%




(5)


Why else should you consider halo effects

Attribution … what is more important …1st touch, last touch?

Our campaign actually had ~10 touch points with incalculable potential touches


Halos also effect total campaign communications effectiveness

Sales Force Automation

Partners

Trade Shows

Web Marketing

Marketing Automation

Search

Campaign

Campaign

Campaign

Campaign


10 Big concepts for B2B enterprise solutions marketing

1) Buyer’s journey

2) Funnels

3) Waterfalls

4) Lead Dispositions

5) Interlock

6) Demand types

7) Personae

8) Offers

9) Content mapping

10) Halos


Thank You