Lead Generation and demand creation in europe - sirius-decisions

Analysis and guidance based on the SiriusDecisions EMEA Demand Creation Survey

Demand Creation in Europe: Current State and Gap Analysis

Julian Archer Research Director

Demand Creation Strategies [email protected]

Tel: +31 653392741

© 2014 SiriusDecisions. All Rights Reserved

Five Ways to Grow

Markets

Entrance into – or expansion of – vertical, horizontal and/or geographic segments using existing/new offerings

Buyers

Formal targeting of new buying centers and personas

Acquisition

Purchase of other companies, or the incubation of new business units

Productivity

Maximizing efficiency, effectiveness and engagement

Offerings

Launch of new products/services, or enhancement of the current portfolio

1

2

3

4

5


Growth Initiatives For Demand Creation Leaders

Markets •  Relative Targeting •  Demand Creation Strategy •  Campaign Planning and

Execution

Buyers

•  Buying Cycle •  Persona-based Nurture •  Web Conversion Optimization

SiriusDecisions is the leading global B2B research and advisory firm.

We deliver the actionable intelligence, transformative frameworks and expert guidance that equip executives to modernize and elevate sales, marketing and product business decisions every day.

Productivity

Offerings •  Campaign Planning and

Execution •  Content Asset Architecture

for audience/offering pairings •  Trials

Acquisitions

•  Process Integration •  MAP Rationalization •  Demand Center

•  Lead Management Processes •  Service Level Agreements •  Waterfall Conversion and

Velocity Optimization


Source Data and Demand Creation Survey Methodology

21.20%

14%

20%

14%

12%

11%

09%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

Unknown <40M

>40M<200M >200M<500M

>500M<1BN >1BN<5BN

>5BN

Company EMEA € Revenue

14%

16%

13%

13%

16%

13%

15%

0% 5% 10% 15% 20%

UK Spain

Nordics NL

Italy Germany

France

Countries / Regions

Source: SiriusDecisions EMEA Demand Creation Survey 2013

04% 07% 07% 08%

10% 17% 18%

29%

00% 05% 10% 15% 20% 25% 30% 35%

Software – SaaS-based Software – On-premise

Computer/Teleco HW Healthcare

Information Services Financial Services

Unspecified Professional services

Industry Segment

07%

13%

17%

20%

43%

00% 10% 20% 30% 40% 50%

Other

Retail

Third-Party Channel

Inside Sales Force

Direct Sales Force

Primary Go To Maket Model


Four areas to improved demand creation results

1 Tactic Mix

2 Tracking Demand

4 Lead

Quality

3 Marketing

Automation Technology


Demand Creation Budget Allocation By Tactic


51.2%

Tactic Mix

2.00%

2.10%

2.20%

2.50%

2.60%

2.80%

3.10%

3.90%

4.20%

4.40%

4.60%

4.70%

4.70%

4.90%

6.60%

10.10%

10.40%

11.20%

12.90%

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00%

Online communities (internal)

Videos

Demos

Content syndication

Online communities (external)

White paper downloads

Trials

Contact list rental/purchase

Search keyword sponsorship

Association marketing

Virtual events

Search engine optimization

Newsletter

User conferences

Direct mail

Live events (seminar / road show)

Tradeshows

Email campaigns

Online banner advertising


Respondents’ Perceived Effectiveness of Tactics

Tactic Nordics NL ES IT FR DE UK

Email camp.

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

Trade-‐shows

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

Live events

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

Online banners

36.3% 25.0% 37.9% 37.1% 29.8% 30.3% 35.3%

User conf.

28.1% 33.8% 28.7% 25.8% 22.6% 26.3% 30.6%

Direct mail

20.5% 35.3% 29.9% 18.0% 27.4% 21.1% 24.7%

News-‐le=er

21.9% 25.0% 28.7% 22.5% 31.0% 30.3% 21.2%

SEO 18.5% 25.0% 20.7% 31.5% 19.0% 14.5% 25.9%

Within top 5 per stated country

% score within stated country

Tactic Mix


Mismatch of Seller’s Perception and Buyer’s Actions

Source: SiriusDecisions EMEA Demand Creation Survey 2013 & C level Buyer Person Survey 2013

#4

•  Search the Internet •  Access Peers •  Internal Discussions •  User Conferences •  Trade Shows

•  Assign Team •  Engage With Vendor •  Case Study/Trials •  Peer Engagement

•  Committee Engagement

•  Trials/Demos/Case Studies (ROI Content)

•  Peer Engagement BU

YE

R

Solution Education Vendor Selection

1.  Email Campaign 2.  Live Events 3.  Online Banner 4.  Trade Shows 5.  Direct Mail

1.  Live Events 2.  Direct Mail 3.  Email Campaign 4.  User Conference 5.  Trade Shows

1.  Live Events 2.  Trade Shows 3.  Email Campaign 4.  Direct Mail 5.  User Conferences S

ELL

ER

Loosening of the Status Quo

Committing to Change

Exploring Possible Solutions

Committing to a Solution

Justifying the Decision

Making the Selection

Tactic Mix


Analyze Tactic Influence Throughout the Buying Cycle

Vendor Selection Solution Phase Education Phase

Timeline (300 days)

Opportunity created

Deal closed

Dea

l 1 CXO

Influencer

Champion

Ratifier

Dea

l 2 CXO

Influencer

Champion

Ratifier

Dea

l 3 CXO

Influencer

Champion

Ratifier

Analyst Report 1

Analyst Report 2

Event 1

Event 2

Inbound 1

Inbound 2

Inbound 3

White Paper

Executive Briefing

Webcast 1

Webcast 2

ROI Tool

Tactic Mix


Return on Investment and Demand Tracking

45.70% 54.30%

Ability to Determine Demand ROI

Yes

No

68.10%

49.10%

78.80%

Sales / Partners

Tele

Marketing

Lead Source Tracking


Tracking

21.20%

26.43%

25.44%

40.89%

45.63%

# SQLs to close

# of SQLs (sales qualified leads - an opportunity with an estimated value and time to close)

# of MQLs to SALs or TALs (sales accepted or tele accepted leads)

# of MQLs (marketing qualified leads) - an agreed level between marketing and sales

# of inquiries (raw responses)

Measurement of Demand Waterfall Stages


Align Processes and Track Demand Through the Waterfall

80% No nurture/ qualification

100% Sales accepts everything / nothing

3% - ?? Inefficient use of sales resources

10% - ?? Poor pipeline dynamics

9.3% Real lead qualification

85% Strong

process that is adhered to

62% Sales

becomes more efficient

29% - ?? Pipeline dynamics improve

The usual b-to-b scenario Best in class b-to-b scenario

417 inquiries to close 1 deal

70 inquiries to close 1 deal

Tracking


MAP Utilization in Western Europe


Technology

11.49%

14.94%

19.54%

20.69%

25.28%

25.29%

29.89%

32.18%

32.18%

34.48%

37.93%

Partner acquisition

Task creation

Automatic lead conversion

Content reporting

Account scoring

Personalized landing pages

Progressive forms

Lead scoring capabilities

Social media monitoring

Personalized content delivery

Lead nurture programs

MAP Activities

27%

73%

Plans to Implement

Yes No

22%

78%

MAP Usage

Yes No


Utilize Technology to Support Buyers Journey

Web site

Web analytics

Web content management

MAP

Contact management

CRM SFA

Behavior and performance analysis

Lead delivery

Contact information

Pipeline metrics Marketing Database

Campaign Mgmt

Lead Mgmt

Advanced Features

Business Intelligence

•  Deeper lead qualification

•  More efficient and productive tele team

•  Trigger-based, dynamic offer and message delivery

•  Progressive profiling

•  Automated, bidirectional delivery and routing

•  Better visibility into key metrics

•  Reduced complexity and shorter timeframes

•  Trigger-based nurturing of rejected and disqualified leads

Technology


Mismatch of Lead Quality and Demand Type

LEVEL 3 - Plus need or interest

LEVEL 4 - Plus defining requirements

LEVEL 1 - A response

LEVEL 2 - Response and qualified company, audience

LEVEL 5 - Plus BANT

+

+

+

+

BANT

Lead Level

25.7%

27.9%

24.9%

9.5%

12.0%

Lead Level to Sales


Lead Quality


15

SiriusPerspective: Demand Type

If sales and marketing can’t agree on what’s being sold, you can bet that the functions will never be well aligned.

Established Market

SiriusDecisions Demand Spectrum

New Concept

•  Disruptive product / service •  No budgetary line item •  Requires issue creation

New Paradigm

Market Leadership

•  Retools existing process •  Solves current problem

better •  Replaces current line item

Process / Solution Change

•  Necessary product / service •  Highly contested market •  Trying to steal market share

Competitive Positioning

DEMAND TYPE KEY CHARACTERISTICS KEY REQUIREMENT


Mismatch of Lead Quality and Demand Type

LEVEL 3 - Plus need or interest

LEVEL 4 - Plus defining requirements

LEVEL 1 - A response

LEVEL 2 - Response and qualified company, audience

LEVEL 5 - Plus BANT

+

+

+

+

BANT

Lead Level

25.7%

27.9%

24.9%

9.5%

12.0%

Lead Level to Sales

40.1%

36.2%

23.7%

New Concept

New Paradigm

Established Market

Demand Type


Lead Quality


17

SiriusPerspective:

Close

Sales Qualification

Marketing Qualification

Sales Generated Leads (SGLs)

Automation Qualified Leads (AQLs)

Inquiry

Outbound Inbound

Teleprospecting Qualified Leads (TQLs)

Teleprospecting Accepted Leads (TALs)

Sales Accepted Leads (SALs)

Teleprospecting Generated Leads (TGLs)

Sales Qualified Leads (SQLs)

Won Business

Assess: Teleprospecting’s Role Teleprospecting can play a significant role in improving the quality of

leads passed to a receiving function.

1 Explicit acceptance of scored leads

3 Source leads independently 2

Further qualify system-scored

leads

4 Direct contribution to pipeline

5 Direct contribution to revenue

Lead Quality


Assess: Are you ready for Lead Nurture?

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

Lack of process visibility

Lack of standard disqualification reasons

Poor lead definition

Lack of service-level

agreements

Cultural bias against

disqualification

Non-systematic nurture streams

Lead Quality


Key Takeaways and Recommendations

•  Review spend allocation and avoid spreading budget too thinly across various tactics

•  Ensure tactics are aligned with buyer interaction preferences, avoid simplistic and misleading tactic measurement approaches, and adopt techniques appropriate for complex b-to-b buying environments

•  European companies must take steps to improve the quality of demand creation process control and tracking

•  Mandate that “cold to close” processes and technology adoption drive a transparent and shared view of the business activity using the SiriusDecisions Demand Waterfall

•  Incorporate appropriate lead qualification and utilize the concept of demand type to enable delivery of an appropriate and agreed lead quality to the sales function


Thank You!

Julian Archer [email protected]

Jon Ticehurst [email protected]