B2B Sales Lead Generation: Integration of Web 1.0 and Web 2.0 Media. How B2B Marketers are using old and new online media to drive lead generation

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1 How B2B Marketers are using old and new online media to drive lead generation

2 Executive Summary The use and integration of Web 1.0 and 2.0 media into B2B marketing plans for lead generation are well underway in small, medium and large companies. Moreover, the data seem to suggest that effective use of these media may be driving revenue growth. For this initial analysis we looked at adoption of specific online media and reported results across company sizes. We also identified Best in Class companies and compared their reported experience with that of All Others. Key Findings Overall, respondents are still allocating most marketing resources to traditional tactics nearly half the respondents say their companies allocate no more than 25% of their budgets to online media. Many respondents have not yet embraced Web 2.0 techniques. Fewer than half have used Blogging, Podcasts or Social Media, for example. Web 1.0 media, on the other hand, have a much higher adoption rate, with 86% using Marketing and 79% using Search Marketing tools. Overall, respondents believe that Newsletters have been the most effective vehicle for lead generation, lead nurturing and customer retention. Press Releases, Case Studies, White Papers and Webinars are judged to be the next most effective. While Best in Class respondents use online media at about the same rate as others, they are more likely to claim these tools have been effective for them at achieving their objectives. Best in Class companies are significantly more likely to utilize formal lead scoring and have higher lead closure rates than All Others. All Others are significantly more likely to never use formal lead scoring. Although Small companies are more likely to allocate larger proportions of their budgets to online media than Mid-Size or Large companies, they are less likely to be included in the Best in Class group. 1

3 Conclusions These dynamics suggest that the real difference in online marketing effectiveness lies not in the selection of specific media or tweaking the media mix. Rather it is the absolute size of online media budgets or implementation practices, or both. While specific implementation factors are largely outside the scope of this study, perhaps Best in Class companies employ better follow-up practices, more effectively integrate online media into the total marketing plan, more carefully track results, test and measure effectiveness more rigorously, etc., than do All Others. Lead scoring, in particular, stands out as a tool that correlates with Best in Class performance, lending further support to the hypothesis that marketing management practices generally are more important than specific media selection or mix decisions. The lessons for all companies to become more effective at using online marketing tools and getting more bang for the buck may be particularly relevant for Small companies, given their proportionately greater reliance on online media. Research Objectives The research goal is to understand how B2B marketers are using online media to drive lead generation. As part of this exploration, the research explores the extent to which online media (including both Web 1.0 and Web 2.0) are used for lead generation, lead nurturing and customer retention, and strives to understand how effective these efforts have been. Results provide guidance for B2B marketers going forward, learning from the experience and practices of the most successful companies. 2

4 Methodology During the period of May 3-9, 2008, MarketingProfs sent an invitation to complete a web-based survey to its B2B Marketing newsletter recipients with experience in online marketing. A total of 592 individuals responded and were included in this study. In order to observe results by company size, respondents were categorized as Small (organizations with 100 or fewer employees), Mid-Sized (101-1,000 employees) or Large (1,001+ employees) companies. For the purposes of this analysis, individuals were further split into two groups based on their responses: Best in Class respondents claimed to have achieved best or excellent marketing results when compared with industry competition, and reported above average revenue growth over the past two years. (15% of respondents). Others were categorized as All Others for comparison purposes. (85% of respondents). Data have been analyzed and statistically significant differences in these groups, observed at the 95% and 90% levels of confidence, have been noted. Next Steps Topline results in this report represent an initial examination of the survey findings and conclusions. A more detailed analysis will follow, exploring possible interrelationships or explanations of the initial observations. The final report is expected in July In addition we are looking into the possibility of a qualitative study among respondents to further explore experience and practices in the use of Web 2.0 media for lead generation. In concert with the final report, we would expect this to effectively create a blueprint for near-term indicated actions for B2B marketers in the online environment. 3

5 Acknowledgements MarketingProfs appreciates the significant contributions to this research study from two lead generation experts: Robert Lesser, President, Direct Impact Marketing (www.ondemandinsidesales.com), a marketing services firm focused on improving lead generation with on-demand direct marketing and telesales services. Contact Robert by Joel S. Granoff, Co-founder, President and CEO, Be Greeted (www.begreeted.com), helping companies improve website conversion rates from their existing online marketing programs. Contact Joel by 4

6 Table of Contents Media Usage 7 Budget Allocation Marketing Search Marketing Blogging Social Networking Webinars Telemarketing Web Chat Media Effectiveness 31 Lead Generation Lead Scoring Lead Nurturing Customer Retention Lead Closure Rate Best in Class Performance 45 Budget Allocation Budget Change Search Marketing Blogging Social Networking Webinars Lead Generation Lead Nurturing Customer Retention Lead Scoring Lead Closure Rate Respondent Profile 61 Company Size Revenue Growth Focus of Marketing Effort Marketing Budget Average Revenue per Customer Best in Class by Company Size 5

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8 MEDIA USAGE 7

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10 Media Usage We first probed to get a sense of which specific online media vehicles B2B marketers are currently using and how much of their budget is being spent on Online Media. As shown on the following pages, we learned: 69% of all who responded say that online media receive less than half of the media budget, while only 21% report greater than half. (10% don t know.) Small companies are more likely to spend more than half their budgets on Online Media than are Mid-Sized or Large companies. We then looked specifically at reported use of several specific online media and how they contribute to achievement of goals overall and by company size: Search Marketing Blogging Social Networking Webinars Telemarketing Website Chat 9

11 Percentage of Marketing Budget Spent on Online Media Overall, it appears that while respondents allocate some of their marketing budgets to online media, those tactics that are offline or traditional still appear to get the lion s share of resources. 69% of all who responded say that online tactics receive less than half of the marketing budget, while only 21% report greater than half. (10% don t know.) Online Media Share of Budget Total = 592 Respondents Don't know, 10% %, 7% 51-75%, 14% 0-25%, 46% 26-50%, 23% 10

12 Percentage of Marketing Budget Spent on Online Media Among Respondents Reporting Budget Increases Respondents who report high growth in their marketing budgets (more than 15% average annual increase over the past two years) are significantly more likely to report a higher budget allocation for online media than those who have experienced slower budget growth. Online Media Share of Budget 0-25% 38% 51% B 26-50% 22% 27% 51-75% 11% 25% A % 7% 12% Don't know 4% 4% A. Marketing Budget Low Growth (N=171) B. Marketing Budget High Growth (N=77) Data statistically tested at the 95% level of confidence A/B, 90% level of confidence a/b 11

13 Percentage of Marketing Budget Spent on Online Media by Company Size Respondents from Small companies appear more likely to spend a larger proportion of their budget on online tactics. Among this group, 20% claim that 51%-75% of their budget is dedicated to online media compared with about 5%-6% saying the same from Mid-Sized or Large companies. Online Media Share of Budget 0-25% 43% 50% 50% 26-50% 22% 26% 26% 51-75% 6% 5% 20% BC A. Small (N=350) % 5% 3% 9% c B. Mid-Sized (N=133) C. Large (N=105) Don't know 6% A 14% 16% A Data statistically tested at the 95% level of confidence A/B/C, 90% level of confidence a/b/c 12

14 Use of is used by 53% of respondents to both disseminate content and stimulate web site traffic, while 14-16% use it for only one of these purposes. Just 14% have yet to conduct marketing campaigns. Reasons for Use Total = 592 Respondents Disseminate content directly 14% Drive traffic to our web site 16% Both for dissemination of content and to drive traffic to our web site 53% Neither - we do not conduct marketing campaigns 14% Don't know 3% 13

15 Use of by Company Size Differences in reasons for use are also minimal when viewed by company size, although respondents from Small companies are significantly more likely to use marketing to increase web site traffic when compared with Mid-Sized organizations. Reasons for Use Disseminate content directly 14% 17% 12% A. Small (N=350) B. Mid-Sized (N=133) C. Large (N=105) Drive traffic to our web site 11% 15% 19% B Both for dissemination of content and to drive traffic to our web site 51% 58% 54% Neither - we do not conduct marketing campaigns 14% 11% 16% Don't know 3% 4% 2% Data statistically tested at the 95% level of confidence A/B/C, 90% level of confidence a/b/c 14

16 Fulfillment of Marketing Goals More than 7 in 10 respondents use most often to generate leads (76%), increase brand awareness (75%), drive web site visits (75%) or build loyalty (72%). Respondents are far less likely to use to drive offline business (34%) or build an inhouse database (48%). Marketing Goals Fulfilled by Campaigns Total = 493 Respondents 76% 75% 75% 72% 48% 34% 1% 2% Generate leads Increase brand awareness Drive web site visits Build loyalty Build in-house database Drive offline business Don't know Other 15

17 Use of Search Marketing Among search engine tools, respondents are most likely to use Search Engine Optimization (64%), followed by Search Advertising/Pay Per Click (44%). 21% of respondents have not used any of the search marketing tools mentioned. Use of Search Marketing Tools Total = 592 Respondents Search advertising (pay per click) 44% Paid Inclusion (e.g., Yahoo!) 19% Search engine optimization 64% Contextual ads (appear next to content) 23% None of the above 21% Don't know 5% 16

18 Use of Search Marketing by Company Size Large organizations are as likely to report using the search marketing tools mentioned as are Small companies (75% and 73%, respectively). Organizations of all sizes report using each tool at roughly the same rate, although Large companies appear to have the slight edge over others on all of these tools. Use of Search Marketing Tools Search advertising (pay per click) 43% 45% 48% Paid Inclusion (e.g., Yahoo!) 18% 17% 23% Search engine optimization 61% 66% 69% Contextual ads (appear next to content) None of the above 23% 21% 26% 25% 17% 15% bc A. Small (N=350) B. Mid-Sized (N=133) C. Large (N=105) Don't know 2% 6% A 10% A Data statistically tested at the 95% level of confidence A/B/C, 90% level of confidence a/b/c 17

19 Search Marketing Fulfillment of Marketing Goals Respondents primarily use Search Marketing to drive web site visits (77%), generate leads (69%), or increase brand awareness (57%). Marketing Goals Fulfilled by Search Marketing Total = 440 Respondents 77% 69% 57% 43% 32% 26% 25% 25% 19% 6% 1% Drive web site visits Generate leads Increase brand awareness Increase sales and revenue Engage customers Build loyalty Build in-house database Encourage conversions Drive offline business Other Don't know 18

20 Use of Blogging Most organizations do not have a blogging effort underway yet (57%). When respondents do use Blogging, they most frequently publish one corporate blog (17%). Use of Blogging Total = 592 Respondents We publish one corporate blog 17% We publish mulitple corporate blogs 9% We provide customers with hosted blogs 3% We contribute to industry blogs 5% We advertise on blogs (e.g., display or text ads) 2% Other, please specify 2% We don't really have a blogging effort underway yet 57% Don't know 7% 19

21 Use of Blogging by Company Size Small companies appear to use blogging more frequently than other organizations, although the difference is not statistically significant at the 95% level of confidence. They are, however, significantly more likely to report using a single corporate blog (22%) than Mid-Sized (14%) or Large organizations (3%). Use of Blogging We publish one corporate blog We publish mulitple corporate blogs We provide customers with hosted blogs 3% 5% 3% 2% 2% 14% 9% 10% C 22% BC A. Small (N=350) B. Mid-Sized (N=133) C. Large (N=105) We contribute to industry blogs We advertise on blogs (e.g., display or text ads) Other, please specify 3% 2% 0% 1% 2% 2% 1% 5% 7% We don't really have a blogging effort underway yet 53% 63% 63% a a Don't know 3% 8% A 17% AB Data statistically tested at the 95% level of confidence A/B/C, 90% level of confidence a/b/c 20

22 Blogging Fulfillment of Marketing Goals Blogging is used most often to engage customers (72%), followed by build loyalty (64%), increase brand awareness (57%), and drive web site traffic (56%). Marketing Goals Fulfilled by Blogging 72% 64% 57% 56% 49% 32% 27% 19% 18% 5% 3% Engage customers Build loyalty Increase brand awareness Drive web site traffic Generate leads Encourage conversions Increase sales and revenue Drive offline business Build in-house database Don't know Other 21

23 Use of Social Networking Like Blogging, Social Networking has also been limited in its use, with 56% saying that their company has not developed an approach to this medium. Respondents most frequently use an existing Social Networking community (24%) rather than creating new ones (6%). Uses of Social Networking Total = 592 Respondents We currently do not have a company approach to social networking 56% Through multiple branded social network or communities that we created 6% Through an existing social networking site like MySpace, BeBo, LinkedIn or Facebook 24% Through a single branded social network or community that we created 6% Other, please specify 1% Don't know 7% 22

24 Use of Social Networking by Company Size Small companies are apparently jumping into Social Networking at a faster rate than other organizations. 46% of respondents from organizations with fewer than 100 employees have used this medium, compared with 23% of Mid-Sized and 28% of Large companies. In particular, Small organizations are significantly more likely to say they have approached Social Networking through an existing site like MySpace, BeBo, LinkedIn or Facebook than other companies. Uses of Social Networking We currently do not have a company approach to social networking 50% 60% a 68% A Through multiple branded social network or communities that we created 6% 7% 7% Through an existing social networking site like MySpace, BeBo, LinkedIn or Facebook 10% 16% 33% BC Through a single branded social network or community that we created Other, please specify 5% 7% 4% 2% 0% 1% A. Small (N=350) B. Mid-Sized (N=133) C. Large (N=105) Don't know 4% 9% A 12% A Data statistically tested at the 95% level of confidence A/B/C, 90% level of confidence a/b/c 23

25 Experience with Social Networking Respondents are about as likely to describe their experience with Social Networking as positive or very positive (43%) as they are to describe it as neutral (44%). Just 2% regard their experience as negative. Description of Social Networking Experience Total = 222 Respondents Don't know, 13% Very positive, 10% Very negative, 1% Negative, 1% Positive, 33% Neutral, 44% 24

26 Length of Time Using Webinars Nearly half (46%) of respondents use webinars for lead generation. 30% have used them for 1 year or more. One-third have used them for less than 3 years, with 16% starting to use them in just the last year. Length of Time Using Webinars Total = 592 Respondents Less than 1 year, 16% We don't conduct webinars, 54% 1 year or more but less than 3 years, 17% 5 years or more, 4% 3 years or more but less than 5 years, 9% 25

27 Length of Time Using Webinars by Company Size Experience with Webinars increases with company size 35% of Small company respondents say they have used Webinars, compared with 51% of Mid-Sized and 76% of Large organizations. These larger organizations are also significantly more likely to have used Webinars for a longer period of time. Length of Time Using Webinars We don't conduct webinars 24% 49% C 65% BC 17% Less than 1 year 14% 15% A. Small (N=350) 1 year or more but less than 3 years 12% 23% A 27% A B. Mid-Sized (N=133) C. Large (N=105) 3 years or more but less than 5 years 5% 11% A 18% A 5 years or more 1% 4% A 16% AB Data statistically tested at the 95% level of confidence A/B/C, 90% level of confidence a/b/c 26

28 Webinars Fulfillment of Marketing Goals Webinars have been used primarily to generate leads (69%) and increase brand awareness (69%). Over half (57%) also use them to build loyalty. Of the goals listed, those cited least frequently are drive offline business (28%) and build in-house database (37%). Marketing Goals Fulfilled By Webinars Total = 272 Respondents 69% 69% 57% 40% 37% 28% 6% 3% Generate leads Increase brand awareness Build loyaty Drive web site visits Build in-house database Drive offline business Other Don't know 27

29 Use of Telemarketing to Qualify Online Responders 50% of respondents do not use telemarketing to qualify online respondents, with 43% saying they have no plans to do so in the near future. 18% use telemarketing to qualify online responders on an ad-hoc basis, 15% employ this practice for all inquiries, and 10% do so for only those that they score as qualified based on the inquiry form. Total = 272 Respondents Not currently, but considering doing so in the next 6 months, 7% Yes - ad hoc, no process in place, 18% Yes - all inquiries, 15% No, and no plans to do so in the next 6 months, 43% Yes - but only those inquires that are scored, 10% Don't know, 7% 28

30 Use Website Chat to Engage Visitors 53% do not use website chats and do not plan on introducing this practice in the next six months. While an additional 28% do not employ website chats for visitor engagement, 22% plan on doing so in the near future and 6% use chats for customer service. 15% use website chats to engage website visitors, whether consistently or on an ad-hoc basis. Total = 592 Respondents Yes - ad hoc, no process in place, 4% Not currently, but considering doing so in the next 6 months, 22% Yes - but only those visitors who click on a chat icon on our website, 6% Yes - we proactively invite website visitors to chat with a live operator, 5% Don't know, 4% No, but we use chat for customer service, 6% No, and no plans to do so in the next 6 months, 53% 29

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32 MEDIA EFFECTIVENESS 31

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34 Media Effectiveness We then asked about the effectiveness of various media for accomplishing key marketing objectives: Lead Generation Lead Nurturing Customer Retention The medium most frequently cited as being most effective for all three of these objectives is Newsletters, followed by Press Releases, Case Studies, White Papers, Webinars and Trials/Demos. We also began to get at follow-up practices with questions about lead scoring among those companies who pro-actively score incoming leads. Lead scoring is a method of classifying a sales opportunity by assigning points to responses from qualifying questions based on the importance of each criteria (response) in determining a sales opportunity's overall value (score). When opportunity profiles are completed, response points are added to achieve an overall score for the opportunity (the Lead Score), which in turn would: (a) determine whether the lead should be forwarded to Sales or to a reseller, retained for cultivation, or discarded, and/or (b) determine the prospect's qualification for various offers. 33

35 Lead Generation Online Content Effectiveness Respondents most frequently report that the most effective online medium for lead generation has been Newsletters (39%), followed by Press Releases (30%), Case Studies (25%), White Papers (24%), Webinars (22%), and Trials/Demos (21%). (Respondents were permitted to select more than one as most effective. ) 16% say that they do not have any web site content currently used for lead generation. Content Effectiveness for Lead Generation Total = 592 Respondents Newsletters 39% Press Releases 30% Case Studies White Papers Webinars Trials/Demos 25% 24% 22% 21% Blogs Video 11% 12% Podcasts E-Books 4% 4% Other 13% No web content for lead generation 16% 34

36 Lead Scoring Just over half of respondents say their marketing organization engages in formal lead scoring, with 18% saying they always employ this practice and 34% claiming that it is done some of the time. 36% say their organization never does any formal lead scoring. Use of Lead Scoring Total = 592 Respondents Don't know, 12% Always, 18% Never, 36% Sometimes, 34% 35

37 Lead Scoring by Company Size The tendency towards lead scoring increases with company size, as 29% of Large organizations say they always use lead scoring, compared with 19% of Mid-Sized and 15% of Small companies. 43% of Small and 34% of Mid-Sized organizations never use lead scoring, compared with 18% of Large. Lead Scoring by Company Size 10% 11% 18% A 43% bc 34% C 18% 33% 36% 35% 15% 19% 29% Ab A. Small (N=350) B. Mid-Sized (N=133) C. Large (N=105) Always Sometimes Never Don't know Data statistically tested at the 95% level of confidence A/B/C, 90% level of confidence a/b/c 36

38 Web Content Lead Generation Effectiveness Use of Lead Scoring Respondents who use lead scoring at least some of the time are significantly more likely to use web content for lead generation, and to find most types effective, than those who do not use it at all. Newsletters 30% 41% 49% C Case Studies 18% 29% C 38% bc White papers 15% 31% C 36% C Webinars 16% 26% C 33% C Trials/Demos 15% 23% C 31% C Press Releases Video 5% 17% 15% C C 23% 26% 38% AC Blogs Other E-Books Podcasts 7% 4% 3% 6% 5% 3% 13% 15% 10% 10% 9% 17% c Use Lead Scoring A. Always (N=107) B. Sometimes (N=201) C. Never (N=215) No web content for lead generation 8% 7% 25% AB Data statistically tested at the 95% level of confidence A/B/C, 90% level of confidence a/b/c 37

39 Lead Nurturing Web Content Effectiveness Newsletters also top other tactics for effectiveness at lead nurturing (38%). Tactics which also generate double-digit ratings are Case Studies (23%), White Papers (19%), Trials/Demos (18%), Webinars (16%), Press Releases (16%), and Blogs (11%). 25% of respondents claim to not have web content for lead nurturing. Content Effectiveness for Lead Nurturing Total = 592 Respondents Newsletters 38% Case Studies 23% White Papers Trials/Demos 19% 18% Webinars Press Releases 16% 16% Blogs 11% Video 8% Podcasts 4% E-Books 3% Other 7% No web content for lead nurturing 25% 38

40 Web Content Lead Nurturing Effectiveness Use of Lead Scoring Web content for lead nurturing is also used by, and is more effective for those who use lead scoring than those who do not. Newsletters 31% 41% 42% c C Case Studies 17% 25% C 36% BC Trials/Demos 9% 22% C 33% BC Webinars 8% 19% C 27% bc White papers 15% 22% 24% c c Press Releases 14% 14% 20% Blogs 11% 10% 12% Video Podcasts E-Books 4% 8% 5% 3% 6% 3% 1% c 10% C C 13% C Use Lead Scoring A. Always (N=107) B. Sometimes (N=201) C. Never (N=215) Other 4% 8% 7% No web content for lead nurturing 16% 14% 36% AB Data statistically tested at the 95% level of confidence A/B/C, 90% level of confidence a/b/c 39

41 Customer Retention Web Content Effectiveness Respondents also believe that Newsletters have been the strongest tactic for customer retention. 47% attest to its effectiveness, followed by Case Studies and Press Releases (18% each). 25% of respondents do not have web content geared toward customer retention. Content Effectiveness for Customer Retention Total = 592 Respondents Newsletters 47% Case studies Press Releases 18% 18% Webinars White papers Blogs Trials/Demos 14% 13% 13% 11% Video 8% Podcasts 4% E-Books 2% Other 8% No web content for customer ret. 25% 40

42 Web Content Customer Retention Effectiveness Use of Lead Scoring Respondents who work for organizations that employ lead scoring find most types of web content effective for customer retention, as opposed to those who don t use this practice, and are also significantly more likely to have content geared toward this goal. Newsletters 38% 47% 58% ac Case Studies 10% 23% 27% C C Webinars Press Releases White papers Trials/Demos 3% 8% 10% 14% 13% 17% 16% 16% C 17% C 23% 21% c 23% C C BC C Use Lead Scoring A. Always (N=107) B. Sometimes (N=201) C. Never (N=215) Video 4% 9% 14% C C Blogs 12% 14% 11% Podcasts 1% 5% C 11% BC Other 7% 8% 7% E-Books 4% 3% 1% c c No web content for customer retention 11% 19% b 40% AB Data statistically tested at the 95% level of confidence A/B/C, 90% level of confidence a/b/c 41

43 Online Content Effectiveness by Marketing Objective Newsletters are perceived as being effective more often for customer retention than for either lead generation or lead nurturing. Most other tools are more effective for lead generation than for either of the other marketing objectives. Overall, respondents appear more likely to have content geared toward lead generation than they do for either customer retention or lead nurturing. Total = 592 Respondents Newsletters 39% 38% 47% Press Releases 16% 18% 30% Case Studies White Papers 13% 25% 23% 18% 24% 19% Webinars 16% 14% 22% Trials/Demos Blogs 11% 12% 11% 13% 21% 18% Lead Generation Lead Nurturing Customer Retention Video 11% 8% 8% Podcasts 4% 4% 4% E-Books 4% 3% 2% Other 7% 8% 13% No web content for specified marketing strategy 16% 25% 25% 42

44 Lead Closure Rate Half of all respondents report that over the past two years the percentage of marketing leads that has closed has increased, with 43% saying it has increased somewhat and 7% claiming that the increase has been dramatic. Decreasing closure rates are far less common, with 6% saying they have decreased somewhat and 1% finding a dramatic decrease. Change in Proportion of Leads Closing Total = 592 Respondents 43% 25% 18% 7% 6% 1% Increased Increased Stayed the same Decreased Decreased Don't know dramatically somewhat somewhat dramatically 43

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46 BEST IN CLASS PERFORMANCE 45

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48 Best in Class Performance We then divided respondents into two categories Best in Class and All Others to see if there were actionable differences between the two groups. Best in Class are those companies who claimed to have achieved best or excellent marketing results when compared with industry competition, and reported above average revenue growth over the past two years. (15% of respondents) Others were categorized as All Others for comparison purposes. (85% of respondents) Comparing the two groups we found: There is no difference in the percentage of the marketing budget directed to online media. A significantly greater percentage of Best in Class companies reported increased marketing budgets over the last 2 years, and Best in Class companies report larger budget increases than All Others. There are no significant differences in use of key online media: Search Marketing Blogging Social Networking Webinars Best in Class companies reported generally better results from all Web 1.0 and Web 2.0 media than did All Others for lead generation, lead nurturing and customer retention. Best in Class companies are significantly more likely to always score leads than are All Others. Best in Class companies report significantly increased closure rates than do All Others. 47

49 Percentage of Marketing Budget Spent on Online Media Best in Class Respondents classified as Best in Class allocate their budgets similarly to All Others in terms of the level of online media usage. 0-25% 47% 46% 26-50% 23% 23% 51-75% 9% 15% A. Best in Class (N=86) B. All Others (N=506) % 6% 9% Don't know 10% 12% Data statistically tested at the 95% level of confidence A/B, 90% level of confidence a/b 48

50 Marketing Budget Change Best in Class Organizations identified as Best in Class are significantly more likely to have experienced a marketing budget increase (67%) than All Others (47%). Marketing Budget Change Over Past Two Years 5% 7% 21% 5% 16% A 32% A 67% B 47% A. Best in Class (N=86) B. All Others (N=506) Increased Remained the Same Decreased Don't know Data statistically tested at the 95% level of confidence A/B, 90% level of confidence a/b 49

51 Marketing Budget Increase Distribution of Increase among Best in Class 24% of Best in Class respondents report budget increases of more than 20%, while only 15% of All Others report increases of this magnitude. Just 5% of Best in Class respondents say the increase has been 5% or less, compared to 18% for All Others. Average Annual Marketing Budget Increase Marketing Budget Change 31% 24% 35% 5% or less 6-10% 11-15% 16-20% 21% or more Don't know 21% A 18% 15% 15% 5% 10% 9% 9% 8% A. Best in Class (N=58) B. All Others (N=239) Data statistically tested at the 95% level of confidence A/B, 90% level of confidence a/b 50

52 Use of Best in Class There are no significant distinctions in either the overall rate at which respondents employ marketing campaigns, or goals for usage, between Best in Class respondents and All Others. Goals for Use Disseminate content directly Drive traffic to our web site 16% 14% 10% 17% A. Best in Class (N=86) B. All Others (N=506) Both for dissemination of content and to drive traffic to our web site 51% 53% Neither - we do not conduct marketing campaigns 13% 17% Don't know 3% 5% Data statistically tested at the 95% level of confidence A/B, 90% level of confidence a/b 51

53 Use of Search Marketing Best in Class Best in Class organizations report using Search Marketing more frequently than All Others. 80% of these respondents report using at least one of the search marketing tools mentioned, compared with 73% of All Others. Of the tools reported, only Contextual Ads are employed at a significantly higher rate (37% versus 21%). Use of Search Marketing Tools Search advertising (pay per click) 43% 49% Paid Inclusion (e.g., Yahoo!) 18% 23% Search engine optimization 62% 70% Contextual ads (appear next to content) 21% 37% B None of the above 14% 23% a A. Best in Class (N=86) B. All Others (N=506) Don't know 6% 4% Data statistically tested at the 95% level of confidence A/B, 90% level of confidence a/b 52

54 Use of Blogging Best in Class Rate of blogging usage is very similar among Best in Class companies and All Others. Use of Blogging We publish one corporate blog 17% 17% We publish mulitple corporate blogs 7% 9% We provide customers with hosted blogs 0% 3% We contribute to industry blogs We advertise on blogs (e.g., display or text ads) 7% 5% 2% 1% A. Best in Class (N=86) B. All Others (N=506) Other, please specify 2% 2% We don't really have a blogging effort underway yet 59% 57% Don't know 5% 7% Data statistically tested at the 95% level of confidence A/B, 90% level of confidence a/b 53

55 Use of Social Networking Best in Class Best in Class companies are about equally as likely to have used Social Networking as All Others. However, these more successful organizations report that they have created multiple communities (13%) at a higher rate than others (5%). Use of Social Networking We currently do not have a company approach to social networking 50% 57% Through multiple branded social network or communities that we created 5% 13% B Through an existing social networking site like MySpace, BeBo, LinkedIn or Facebook 22% 25% Through a single branded social network or community that we created 5% 6% A. Best in Class (N=86) Other, please specify 0% 1% B. All Others (N=506) Don't know 6% 10% Data statistically tested at the 95% level of confidence A/B, 90% level of confidence a/b 54

56 Length of Time Using Webinars Best in Class While Best in Class respondents appear to be more likely to be using webinars (53% using versus 45% of All Others ), this difference is not statistically significant. However, Best in Class respondents are significantly more likely to have begun using Webinars in the last year, and to have been using them for 5 years or longer. Length of Time Using Webinars We don't conduct webinars 47% 55% Less than 1 year 15% 23% B 1 year or more but less than 3 years 15% 17% A. Best in Class (N=86) B. All Others (N=506) 3 years or more but less than 5 years 6% 10% 5 years or more 3% 9% B Data statistically tested at the 95% level of confidence A/B, 90% level of confidence a/b 55

57 Lead Generation Online Content Effectiveness Best in Class Best in Class companies have experienced greater efficacy with most of these methods for lead generation than other organizations, with effectiveness ratings significantly higher for Newsletters (50% versus 37%) and Case Studies (35% versus 24%). They also have found Video to be more effective (17% versus 10%) for generating leads. The Best in Class group reports directionally higher effectiveness ratings for Press Releases (38% versus 28%), and also seem to rate Webinars, Trials/Demos, and Blogs higher than other companies. Content Effectiveness for Lead Generation Newsletters Press Releases Case Studies 24% 28% 35% 37% 38% B b 50% B White Papers 21% 24% Webinars 21% 28% Trials/Demos Blogs Video Podcasts 3% 4% 11% 10% 15% 17% 21% B 24% A. Best in Class (N=86) B. All Others (N=506) E-Books 3% 7% Other No web content for lead generation 13% 13% 12% 17% Data statistically tested at the 95% level of confidence A/B, 90% level of confidence a/b 56

58 Lead Nurturing Online Content Effectiveness Best in Class Best in Class respondents are significantly more likely than others to provide content on their website that pertains to lead nurturing; the proportion of Best in Class organizations who have content geared toward this strategy is 84%, compared with 73% of other respondents. They also report higher effectiveness rates for every tactic used for lead nurturing, with significant differences cited for Press Releases and Video and a directional difference observed for Webinars. Content Effectiveness for Lead Nurturing Newsletters Case Studies White Papers 22% 20% 18% 28% 36% 44% Trials/Demos Webinars Press Releases 15% 15% 20% 18% 22% b 24% B Blogs Video Podcasts E-Books 4% 3% 3% 8% 7% 13% 11% 14% B A. Best in Class (N=86) B. All Others (N=506) Other 5% 7% No web content for lead nurturing 16% 27% A Data statistically tested at the 95% level of confidence A/B, 90% level of confidence a/b 57

59 Customer Retention Online Content Effectiveness Best in Class Respondents categorized as Best in Class are significantly more likely than others to believe that Press Releases are effective web site content for customer retention. Newsletters and Case Studies also seem to be favored by this group. Overall, Best in Class organizations are significantly more likely than others to have web content to retain customers. Content Effectiveness for Customer Retention Newsletters Case studies Press Releases 16% 17% 24% b 28% B 45% 56% b Webinars 16% 14% White papers Blogs 14% 12% 15% 12% Trials/Demos Video Podcasts E-Books 10% 11% 8% 8% 6% 4% 3% 2% A. Best in Class (N=86) B. All Others (N=506) Other No web content for customer ret. 7% 8% 14% 27% A Data statistically tested at the 95% level of confidence A/B, 90% level of confidence a/b 58

60 Integraion of Web 1.0 and Lead Scoring Best in Class 70% of Best in Class respondents utilize lead scoring, versus just 49% of All Others, with a statistically significant difference in the percentage who always use lead scoring (29% versus 16%). 39% of respondents classified as All Others say their organization never participates in formal lead scoring, compared to just 19% of Best in Class respondents saying the same. Lead Scoring Best in Class versus All Others 12% 12% 19% 39% A 41% 33% 29% B 16% A. Best in Class (N=86) B. All Others (N=506) Always Sometimes Never Don't know Data statistically tested at the 95% level of confidence A/B, 90% level of confidence a/b 59

61 Lead Closure Rate Best in Class Best in Class respondents are significantly more likely than All Others to have experienced increased closure rates (74% versus 46%, respectively) over the past 2 years. 16% of Best in Class report dramatically increased closing rages (versus 5% for All Others, and 58% claim somewhat increased closing rates (versus 41% for All Others ). Change in Proportion of Leads Closing B 58% Total = 592 Respondents 41% A. Best in Class (N=86) B. All Others (N=506) A 27% B 16% 5% 13% A 8% 13% 19% 0% 0% 1% Increased dramatically Increased somewhat Stayed the same Decreased somewhat Decreased dramatically Don't know Data statistically tested at the 95% level of confidence A/B, 90% level of confidence a/b 60

62 RESPONDENT PROFILE 61

63 62

64 Respondent Profile Finally, for classification purposes we tabulated key characteristics of the respondent sample: Company Size Top Line Revenue Growth Primary Focus of Marketing Effort Top Line Revenue Growth by Company Size Marketing Budget Change Marketing Budget Increase (Amount) Marketing Budget Change by Company Size Revenue Growth by Differences in Marketing Budget Change Average Revenue per Customer Best in Class by Company Size 63

65 Company Size Small companies (100 employees or fewer) account for 58% of respondents. 23% are Mid-Sized ( employees) and 18% are Large (1,001+ employees). Total = 592 Respondents 1,001 or more, 18% Don't know, 1% 10 or fewer, 28% , 23% 11-20, 9% , 21% 64

66 Top Line Revenue Growth Overall, respondents cite positive business results over the last two years, with 33% claiming above average growth and 46% claiming average growth during this time period. Just 11% have experienced growth that they classify as below average. Revenue Growth Over Past Two Years Relative to Competition Total = 592 Respondents Don't know, 9% Below average growth, 11% Above average growth, 33% Average growth, 46% 65

67 Primary Focus of Marketing Effort Respondents report most often that the primary focus of their marketing department is a combination of product and services marketing (48%). 32% focus on services only and 19% focus on products only. Total = 592 Respondents Don't know, 1% Product marketing, 19% Both product and services marketing, 48% Services marketing, 32% 66

68 Top Line Revenue Growth by Company Size Mid-Sized ( employees) and Large companies (1,001 + employees) are significantly more likely to have experienced above average growth than Small companies (100 or fewer employees). When compared with Mid-Sized organizations, Small companies are significantly more likely to say that growth over the past two years has been below average. Revenue Growth Over Past Two Years Relative to Competition 10% 15% B 6% 9% 4% 10% b 45% 42% 48% 27% 45% A 40% A A. Small B. Mid-Sized C. Large (N=350) (N=133) (N=105) Above Average Growth Average Growth Below Average Growth Don't know Data statistically tested at the 95% level of confidence A/B/C, 90% level of confidence a/b/c 67

69 Marketing Budget Change During the same time period, half of all respondents say that their organization s marketing budget has increased. 31% say budgets have remained the same, and 14% have observed a decline. Marketing Budget Change Over Past Two Years Total = 592 Respondents Decreased, 14% Don't know, 5% Increased, 50% Remained the same, 31% 68

70 Marketing Budget Change Distribution of Increase/Decrease Respondents are most likely to observe a change of 6-10% in either direction, with 34% claiming a 6-10% increase and 31% experiencing a 6-10% decrease. Comparison of Those Reporting Budget Increases versus Decreases Marketing Budget Change 5% or less 6-10% 34% 31% 11-15% 16-20% 21% or more Don't know 22% 15% 17% 16% 18% 8% 9% 9% 8% 12% Average Annual Increase (N=297) Average Annual Decrease (N=85) 69

71 Marketing Budget Change by Company Size Respondents from Small and Mid-Sized companies claim marketing budget increases (55% and 58%, respectively) more frequently than do Large companies (23%). Budget Change by Company Size 4% 11% 5% 12% 10% A 30% 26% 30% AB C 55% 58% C 38% B 23% A. Small (N=350) B. Mid-Sized (N=133) C. Large (N=105) Increased Remained the same Decreased Don't know Data statistically tested at the 95% level of confidence A/B/C, 90% level of confidence a/b/c 70

72 Revenue Growth by Differences in Marketing Budget Change Respondents noting a budget increase are significantly more likely to report above average growth in revenues (41%) than those who either had unchanged budgets (27%) or those who experienced a budget decline (20%). Furthermore, below average revenue growth occurred more frequently among those with declining (25%) or stagnant budgets (14%), than among those who report budget growth (5%). Revenue Growth by Marketing Budget Change Revenue Growth Above average growth 51% Average growth BC 41% 46% 45% Below average growth Don't know 34% 27% AB 25% 28% 28% 5% A 14% 7% 8% 20% 11% 10% A. Increased (N=297) B. Remained the same (N=181) C. Decreased (N=85) D. Don't know (N=29)** Marketing Budget Change Over Last Two Years Data statistically tested at the 95% level of confidence A/B/C/D, 90% level of confidence a/b/c/d **Small sample size. Statistical testing not available 71

73 Average Revenue per Customer 25% of respondents say their average revenue per customer is in the range of $1,000 - $9, % report a higher average revenue per customer, with 3% reporting this figure is $1 Million or higher. 12% report average revenue per customer of less than $1,000. Total = 592 Respondents Don't know, 21% < $1 K, 12% $1 M +, 3% $500 K - $999.9 K, 3% $1 K K, 25% $100 K - $499.9 K, 9% $50 K - $99.9 K, 11% $10 K - $49.9 K, 17% 72

74 Best in Class by Company Size Best in Class respondents are more likely to report being from Large or Mid-Sized companies, while All Others are significantly more likely to be from Small organizations. Large Mid-Sized Small 22% 17% 21% 31% B 47% 62% A A. Best in Class (N=86) All Other (N=502) Data statistically tested at the 95% level of confidence A/B, 90% level of confidence a/b 73

75 Contact Information MarketingProfs Research Insights MarketingProfs, LLC Copyright MarketingProfs Research Insights, MarketingProfs, LLC. All rights reserved. 74

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