Stop Random Acts of Marketing -Abridged

Stop Random Acts of Stop Random Acts of MarketingMarketing

Bob MartinBob [email protected]

© IFR Consulting LLC 2014

Build a High Performance Build a High Performance Revenue EngineRevenue Engine

Ideal CompaniesIdeal Companies

B2B Enterprise Sales & Marketing TeamsB2B Enterprise Sales & Marketing Teams

Average Deal Size of Flagship Products > $50KAverage Deal Size of Flagship Products > $50K

Use Direct Field Sales (with or without SE’s)Use Direct Field Sales (with or without SE’s)

Complex Sales: senior management involvement, Complex Sales: senior management involvement, strategic impact, multiple constituencies at strategic impact, multiple constituencies at customer, multi-month sales cyclescustomer, multi-month sales cycles

2© IFR Consulting LLC 2014

Comparison of Old vs. Comparison of Old vs. NewNewOld School New School

Creative is key: great ads, brand, colors, logo, packaging, etc.

Focus on Value – Clarify sources of product creates value – messages should articulate

Based on B2C marketing training

Recognize B2B is very different

Promotion process focused like B2C – on ads, individuals

Promotion process focused on how company and products deliver value

Bulk of spend is on ads, agencies, trade shows

Bulk of spend is on lead generation- optimize ext/int lead gen plus tools

Branding drives commodity products

Build modular elements that allow customers to derive optimal value

Adversarial, almost irrelevant to sales teams

Partner with sales – focus on lead gen to drive more, higher quality sales


Issues Faced by B2B Issues Faced by B2B CEO’sCEO’sInconsistent Revenue Production Inconsistent Revenue Production

““Missed” Quarters with Very Little Missed” Quarters with Very Little or No Advance Notice to Sr. Mgmt or No Advance Notice to Sr. Mgmt & Board& Board

Marketing & Sales Each on Marketing & Sales Each on Separate Tracks (Silos)Separate Tracks (Silos)

Sales Reps Spending up to 60% of Sales Reps Spending up to 60% of Time on Internal Tasks vs. Time on Internal Tasks vs. Interacting with Prospects and Interacting with Prospects and Closing DealsClosing Deals

CEO & CFO Frustrated at Lack of CEO & CFO Frustrated at Lack of Accountability and Linkage of Accountability and Linkage of Marketing Spend to ResultsMarketing Spend to Results


Marketer Credibility Marketer Credibility CrisisCrisis About 3 in 4 CEOs globally say they want About 3 in 4 CEOs globally say they want

marketers to become fully focused on ROI. marketers to become fully focused on ROI.

A similar proportion think marketers A similar proportion think marketers misunderstand the real meaning of the misunderstand the real meaning of the words “results,” “ROI” and “performance.”words “results,” “ROI” and “performance.”

Upshot is that 8 in 10 CEOs believe Upshot is that 8 in 10 CEOs believe marketers are disconnected from companies’ marketers are disconnected from companies’ financial realities and claim they do not trust financial realities and claim they do not trust and are not very impressed by the work and are not very impressed by the work done by marketers.done by marketers.

Another recent study said 57% of marketers Another recent study said 57% of marketers say they don’t base their marketing budgets say they don’t base their marketing budgets on any ROI analysis. Roughly two-thirds on any ROI analysis. Roughly two-thirds report establishing their marketing budgets report establishing their marketing budgets in part on historical spending, and 28% on in part on historical spending, and 28% on gut instincts. gut instincts.

When looking at specific spending decisions, When looking at specific spending decisions, 21% say they use financial metrics for little 21% say they use financial metrics for little or none of the decisions, while 7% are or none of the decisions, while 7% are making most or all of their decisions absent making most or all of their decisions absent any metrics at all.any metrics at all. 5


8 in 10 CEO’s 8 in 10 CEO’s believe marketers believe marketers are disconnected are disconnected from companies’ from companies’ financial realitiesfinancial realities

8 in 10 CEO’s 8 in 10 CEO’s believe marketers believe marketers are disconnected are disconnected from companies’ from companies’ financial realitiesfinancial realities

Marketer Credibility Crisis-Marketer Credibility Crisis-Cont’dCont’d

Of the CEO’s mentioned earlier, 70% Of the CEO’s mentioned earlier, 70% admitted they may be somewhat admitted they may be somewhat responsible for Marketers’ poor perceived responsible for Marketers’ poor perceived business performance and reputation – but business performance and reputation – but purely as a consequence of: purely as a consequence of:

a) Having steadily lost trust in a) Having steadily lost trust in Marketers’ business abilities; and Marketers’ business abilities; and

b) Subsequently having given up on b) Subsequently having given up on holding Marketers accountableholding Marketers accountable

A recent study of sales and marketing A recent study of sales and marketing professionals found that just 16% believe professionals found that just 16% believe that their activities are fully aligned with that their activities are fully aligned with 10% saying they’re not aligned at all. 10% saying they’re not aligned at all.

Another study asked lead generation Another study asked lead generation marketers how much profits would be marketers how much profits would be improved with 10% more budget, and 44% improved with 10% more budget, and 44% reported they didn’t know.reported they didn’t know.

© IFR Consulting LLC © IFR Consulting LLC

20142014

16% of sales and 16% of sales and marketing marketing

professionals believe professionals believe their activities are their activities are

fully alignedfully aligned

16% of sales and 16% of sales and marketing marketing

professionals believe professionals believe their activities are their activities are

fully alignedfully aligned

The Approach Must The Approach Must ChangeChangeNo matter how capable a marketing and sales team are, if not No matter how capable a marketing and sales team are, if not

linked to core business goals, the CEO, CFO, Board and you linked to core business goals, the CEO, CFO, Board and you can’t demonstrate whether you’re on track or not.can’t demonstrate whether you’re on track or not.

The BIG IDEA: The BIG IDEA:

Marketing goes in the lead gen business so they’re in the same Marketing goes in the lead gen business so they’re in the same boat with sales. Sales works highly qualified leads vs. prospecting.boat with sales. Sales works highly qualified leads vs. prospecting.

Sales & marketing work with CEO to set revenue goals by strategic Sales & marketing work with CEO to set revenue goals by strategic product for the year.product for the year.

Marketing works with sales to analyze the funnel and figure out Marketing works with sales to analyze the funnel and figure out where lead gen campaigns are needed. Awareness and branding where lead gen campaigns are needed. Awareness and branding are fine, but marketing has to align with sales to constantly are fine, but marketing has to align with sales to constantly optimize lead gen.optimize lead gen.

With goals in place, funnel metrics constantly drive where With goals in place, funnel metrics constantly drive where campaigns are needed and work closely with sales to adjust, campaigns are needed and work closely with sales to adjust, adjust, adjust to measure which campaigns are working or not.adjust, adjust to measure which campaigns are working or not.

Link to revenue forecast is imperative. CEO may not like it if you Link to revenue forecast is imperative. CEO may not like it if you can’t hit the revenue target, but if you know the details, you can can’t hit the revenue target, but if you know the details, you can develop alternative strategies and create the best result possible develop alternative strategies and create the best result possible BEFORE the end of the quarter.BEFORE the end of the quarter.


This Process Will…This Process Will…Produce predictable Produce predictable revenuerevenue

Align sales, marketing Align sales, marketing and financeand finance

Track sources of qualified Track sources of qualified leads leads

Allow early course Allow early course correctioncorrection

Improve credibility of Improve credibility of sales and marketing with sales and marketing with senior management and senior management and the boardthe board

Fin’l Results (Rev & Costs)

Fin’l Results (Rev & Costs)

SalesSalesMarketingMarketing


Link Revenue Goal to Link Revenue Goal to BudgetBudget

(How the Sausage Gets Made)(How the Sausage Gets Made)Corporate Corporate Revenue Revenue

GoalGoal

Corporate Corporate Revenue Revenue

GoalGoalLead Lead

WaterfallWaterfallLead Lead

WaterfallWaterfall

Campaign Campaign CalendarCalendarCampaign Campaign CalendarCalendar

Marketing Marketing Program Program SpendSpend

Marketing Marketing Program Program SpendSpend

Overall Overall Mktg Mktg

BudgetBudget

Overall Overall Mktg Mktg

BudgetBudget

MktgMktgMktgMktg SalesSalesSalesSales

TeleprospectingTeleprospectingTeleprospectingTeleprospecting

Inside SalesInside SalesInside SalesInside Sales

WebinarsWebinarsWebinarsWebinars

ConferencesConferencesConferencesConferences

Web, E-mail, etcWeb, E-mail, etcWeb, E-mail, etcWeb, E-mail, etc


Tools for the ProcessTools for the Process

Lead Waterfall ModelLead Waterfall Model

Campaign CalendarCampaign Calendar

Marketing Budget Linked to Lead WaterfallMarketing Budget Linked to Lead Waterfall

Funnel MetricsFunnel Metrics

Marketing Competitive IntelligenceMarketing Competitive Intelligence

CRM Processes to Work With Inside Sales, CRM Processes to Work With Inside Sales, Field Sales and External Lead Gen FirmField Sales and External Lead Gen Firm

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BESTCMO™BESTCMO™IFR Predictable Revenue ModelIFR Predictable Revenue Model

EEvaluatevaluate

AssetsAssets

BBig ig

Picture & Picture & GoalsGoals

TTarget arget

WaterfallWaterfall

CCampaignampaign

CalendarCalendar

MMarketingarketing

Program Program SpendSpend

OOverall verall

Marketing Marketing BudgetBudget

✦ Prospect & Customer ListsProspect & Customer Lists✦ TestimonialsTestimonials✦ Sales Enablement Tools & Sales Enablement Tools & CRMCRM

✦ Resources (Personnel, Resources (Personnel, Budget)Budget)✦ Current Lead Gen ApproachCurrent Lead Gen Approach✦ Target Mkts & PositioningTarget Mkts & Positioning

✦ Clarify High Level Corporate Priorities: Revenue, Market Clarify High Level Corporate Priorities: Revenue, Market Share, etc.Share, etc.✦ Target Market PrioritizationTarget Market Prioritization

✦ Set Leads Goals (sales% & mktg % - then by key product, by Set Leads Goals (sales% & mktg % - then by key product, by qtr) qtr) ✦ Based on conversion rates build funnel goals (by product by Based on conversion rates build funnel goals (by product by qtr)qtr)

✦ For each campaign anticipated, set lead goalsFor each campaign anticipated, set lead goals✦ Select campaigns to get highest quality for lowest cost per Select campaigns to get highest quality for lowest cost per ML2ML2✦ Revise as needed to stay on course for qtr goals Revise as needed to stay on course for qtr goals

✦ Determine spend and mix from planned campaignsDetermine spend and mix from planned campaigns✦ Compare to overall marketing budget to keep integrity to Compare to overall marketing budget to keep integrity to plan plan

✦ Determined marketing support spend, e.g., sales Determined marketing support spend, e.g., sales enablement toolsenablement tools✦ Awareness, PR, ads, market conditioning plans and budgetsAwareness, PR, ads, market conditioning plans and budgets✦ Determine in-house staffing vs. outsourced work budgetsDetermine in-house staffing vs. outsourced work budgets

Mo. Mo. ReviewReview

Qtr. Qtr. ReviewReview

SStrategictrategic

ProductsProducts

✦ Decide Which Products are Most Strategic Decide Which Products are Most Strategic ✦ Set Revenue Goal (by strategic product, by quarter, possibly Set Revenue Goal (by strategic product, by quarter, possibly region)region)

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Unique Facets of Unique Facets of ApproachApproach1.1. Marketing accepts primary responsibility for lead genMarketing accepts primary responsibility for lead gen

2.2. Primary means of lead gen are outbound activities focused Primary means of lead gen are outbound activities focused on getting leads ready to take 30 min. appt with sales repon getting leads ready to take 30 min. appt with sales rep

3.3. Campaigns have specific goals that are honed during and at Campaigns have specific goals that are honed during and at the end of each programthe end of each program

4.4. Secondary activities are “typical” contact leads, ads, events, Secondary activities are “typical” contact leads, ads, events, campaigns, and passive inbound activitiescampaigns, and passive inbound activities

5.5. Create lead waterfall model based on conversion rates to Create lead waterfall model based on conversion rates to show how many leads needed at each stage of funnel, then show how many leads needed at each stage of funnel, then link to qtr revenue forecast. THIS STEP IS CRITICAL.link to qtr revenue forecast. THIS STEP IS CRITICAL.

6.6. Set up process as a continuous improvement endeavor vs. a Set up process as a continuous improvement endeavor vs. a project with an end date project with an end date

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The Result Will Be...The Result Will Be...

A high performance revenue engine that produces predictable A high performance revenue engine that produces predictable revenue.revenue.

Easier budget discussions. Budget simply becomes linked to the Easier budget discussions. Budget simply becomes linked to the revenue goal.revenue goal.

Marketing resources spent far more efficiently. Marketing resources spent far more efficiently.

Marketing and Sales will be on the same page. Marketing and Sales will be on the same page.

More efficient customer & prospect touches.More efficient customer & prospect touches.

Better visibility into your pipeline, early adjustments possible to Better visibility into your pipeline, early adjustments possible to keep funnel shape on pace.keep funnel shape on pace.

The Board, CEO, CFO, VP of Sales and VP of Marketing will sleep at The Board, CEO, CFO, VP of Sales and VP of Marketing will sleep at night.night.

VP of Marketing will be in the 20% club – rare air in the profession.VP of Marketing will be in the 20% club – rare air in the profession.

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To start creating a high performing revenue To start creating a high performing revenue engine the steps I follow are:engine the steps I follow are:

Assess strengths and opportunities for Assess strengths and opportunities for personnel, processes and systemspersonnel, processes and systems

Design a plan that leverages the strengths of Design a plan that leverages the strengths of existing personnel and systemsexisting personnel and systems

Identify process changes and further Identify process changes and further investments to align teams and begin to drive investments to align teams and begin to drive revenuerevenue


Next StepsNext Steps

About Me About Me Build high performance revenue Build high performance revenue engines that efficiently integrate engines that efficiently integrate sales, marketing, finance and IT.sales, marketing, finance and IT.

Experience as both CFO and CMO. Experience as both CFO and CMO.

Extensive involvement with senior Extensive involvement with senior management and boards to apply management and boards to apply practical analytics to build practical analytics to build transparent, disciplined operations. transparent, disciplined operations.

Typical for me to wear many hats Typical for me to wear many hats to fully engage and facilitate to fully engage and facilitate lasting change. lasting change.

Bob MartinBob Martin““Wearing Many Hats”Wearing Many Hats”

[email protected] Courtesy Datatel, Inc.Photo Courtesy Datatel, Inc.
