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1 b2bmarketing.net VAT Marketing Benchmarking Report A B2B Marketing Report Published March 2012 EXECUTIVE SUMMARY IN ASSOCIATION WITH

2 EXECUTIVE SUMMARY CONTENTS Executive summary...6 Section 1. About the respondents 1.1 Respondent companies by size Industry sectors Job titles Geographical location...14 Section 2. Usage and frequency of marketing 2.1 Importance of marketing Types of messages Use frequency of different campaign types Objectives and prioritisation of marketing Use versus frequency of use Level of integration Technique effectiveness Factors boosting effectiveness...23 Section 3. Investment in marketing 3.1 marketing budgets budget allocation Expected change in spend over the next 12 months Time allocated to marketing Time versus money allocation Expected change in workload over the next 12 months Marketing Benchmarking Report B2B Marketing

3 CONTENTS EXECUTIVE SUMMARY Section 4. Data and targeting 4.1 Database renewal Techniques used to refresh databases Methods for segmenting data Communications tailored by segment personalisation Effectiveness of personalisation Compliance with the Data Protection Act...35 Section 5. ROI and measurement 5.1 Extent to which you can measure ROI Level of ROI achieved Metrics monitored Most actively monitored metrics Total metrics tracked versus most tracked metrics Typical rates Satisfaction with performance against metrics Metrics performance rates Variation of effectiveness according to time Most effective times for marketing Least effective times for marketing...46 Section 6. Suppliers and solutions 6.1 Use of marketing platforms marketing platforms used platform performance Automation functionality Marketing Benchmarking Report B2B Marketing

4 EXECUTIVE SUMMARY About B2B Marketing B2B Marketing is the comprehensive information resource for B2B marketers. Its mission is to provide practitioners with the information they need to perform better and achieve more, whatever sector of the B2B space they are operating in. Launched in 2004 as B2B Marketing magazine, it has since evolved into a multi-faceted resource, delivering a broad range of content in a variety of different forms and formats. Its key products are: Community: The only online resource allowing B2B marketing professionals to share information on their industry. B2B Marketing is a community where you can learn, share and connect with other marketers to help better achieve your objectives. The site also holds a huge archive of content focusing on every conceivable aspect of B2B marketing and includes various opportunities for online interaction and learning, such as a best practice webcast programme and an interactive online directory for supplier sourcing. Magazine: The essential monthly guide to B2B marketing, with a key focus on best practice guidance, plus monthly features looking at current trends, regular research, profiles etc. Awards: The showpiece event for brands and practitioners, attracting over 700 people. Former winners include a host of top-tier B2B brands, including Cisco, Dell, Fujitsu, IBM, KPMG, Nokia, O2, Oracle, Orange, SAP, Thomson Reuters, Vauxhall UK, and many more. Training and events: Highly focused seminars and training sessions aimed at helping marketers hear and learn first hand from the experts in order to hone their skills. Membership: Become a member and receive all research and reports for free. You will also receive exclusive invites to members-only networking events, get discounts on training seminars, workshops and conferences and receive a subscription to the monthly magazine. There are different levels of membership available so please call to find out more. For more information on any of these products or services go to b2bmarketing.net or call Marketing Benchmarking Report B2B Marketing

5 EXECUTIVE SUMMARY About Circle Research Circle provides insights into what your customers, prospects and other stakeholder groups think. In doing so, clients tell us the difference with Circle is that we get it. We think differently. Our focus isn t research but fresh perspective. In every situation we challenge conventional wisdom. We uncover deep insights into the heart of the issue that others often miss. We make commercially sound recommendations that always go beyond the what typically provided by most agencies. Rather, we think in terms of what now? We re the B2B research experts. To us it s not a division or the other category in a business plan; it s all we do. This specialist focus means we design research programmes that reflect your environment, survey those with true influence and ask them smart questions. We understand business. Circle people aren t traditional researchers. We re expert in research but we also understand business and marketing. Moreover, your project will be led end-to-end by a highly experienced consultant. This means you re always assured of thoughtful, creative, commercially focused outputs. We re borderless. We re here to help solve business issues. That s why Circle is methodology neutral skilled in qualitative and quantitative techniques so that we can recommend the very best solution. We also understand that the modern economy is global so we are too. In fact, we ve conducted research in over 100 countries. Sound like it might be worth talking some more? Call Andrew Dalglish, director at Circle on or him on Marketing Benchmarking Report B2B Marketing

6 EXECUTIVE SUMMARY EXECUTIVE SUMMARY Failing to deliver? Despite significant challenges from the likes of social media and inbox overload, continues to be a critical weapon in the armoury of B2B marketers, according to this Benchmarking Report from B2B Marketing, developed in association with Circle Research. Two hundred and fifty client-side marketers were polled for the research, which was conducted in February According to the results, 70 per cent of B2B marketers still regard as either critical or very important while only four per cent regard it as not very important. Seventy per cent of B2B marketers still regard as either critical or very important while only four per cent regard it as not very important Biggest priorities for marketing Correspondingly, is used by B2B marketers to achieve a number of different objectives (see table above) although lead generation/nurturing was the most popular, both in terms of overall use (78 per cent) and highest priority usage (37 per cent). Surprisingly, enhancing/building brand was second most popular in terms of overall objectives, despite the fact that is not generally regarded as primarily a brand-focused channel. Marketing Benchmarking Report B2B Marketing

7 INTRODUCTION Executive summary EXECUTIVE SUMMARY However, while B2B brands continue to rely heavily on for most objectives, and despite the fact that is an established and therefore well-understood channel, marketers are still failing to totally integrate it with other activities. Only 17 per cent of respondents said their marketing was completely integrated. This suggests that marketing is still being conducted in silos, and therefore may not be benefiting from the halo effect that can come from integration with other media in a concerted campaign. When it comes to increasing effectiveness of marketing, content is the most important element Data is key to success When it comes to increasing effectiveness of marketing, content is the most important element, according to respondents, with subject matter and subject line being cited most often by respondents as one of the top three influencing factors (by 55 per cent and 40 per cent respectively). Key factors for effectiveness However, the role of data in ensuring effectiveness was also underlined by the response to this question, with respondents identifying it as the most powerful single factor in terms of influence on performance. In contrast, use of personalisation and time/date were viewed as less important to the effectiveness of marketing, while the influence of visuals was negligible, despite all the issues around image blocking. Marketing Benchmarking Report B2B Marketing

8 INTRODUCTION Executive summary EXECUTIVE SUMMARY A well-established channel Although may be a mature channel in B2B, investment in it will continue to rise, according to the results of this survey. Fifty three per cent of respondents expect to increase their investment in Expected change in investment Fifty three per cent of respondents expect to increase their investment in marketing over the next 12 months marketing over the next 12 months, while 42 per cent expect investment to remain constant only a small minority anticipate a decrease in spend. However, increases in spend may only be modest: Only 13 per cent said they would increase investment significantly, while 40 per cent would increase spend slightly. This can be said to confirm the status of as a mature channel, the usage of which is unlikely to change dramatically in the coming months. This is also reflected in the response to questions about workload and time investment in , although with marginally more respondents expecting workload to increase slightly (47 per cent). Automation on the rise The vendor landscape for marketing platforms/ service providers (ESP) is hugely fragmented, with over 40 different vendors listed by respondents, but only one (Dotmailer) able to secure more than five per cent of total market share. The areas of least satisfaction for B2B marketers with their ESPs was integration with other systems (where they rated as good or excellent by only 37 per cent on average) and customer service (rated as good or excellent by 56 per cent). Marketing Benchmarking Report B2B Marketing

9 INTRODUCTION Executive summary EXECUTIVE SUMMARY Surprisingly, over half of respondents (54 per cent) claimed their solution included automation functionality, despite the fact that automation services were only listed by 12 per cent of vendors. This suggests that most users of automation services are using the more limited automation services available from traditional ESPs, rather than the more sophisticated functionality available from the specialist vendors. But it does underline a growing awareness and understanding of automation, and the potential that it offers. Marketers are using [ ] because it is cheap, easy and quick ROI proves ellusive Despite the extremely high level of measurability available on marketing campaigns, only one in 10 B2B marketers are able to measure ROI on all of their activity. Forty three per cent of respondents say they can only measure ROI some of the time or rarely or not at all. This suggests that, in some instances, rather than use because it is Ability to measure ROI measurable and therefore effective, marketers are using it because it is cheap, easy and quick. For those marketers who can measure ROI on marketing activity, 41 per cent describe it as excellent or good while a similar figure (42 per cent) regard it as average. Marketing Benchmarking Report B2B Marketing

10 EXECUTIVE SUMMARY RESEARCH PARTNER COMMENT Overcoming message overload I ve always felt my groaning inbox bore testament to the popularity of marketing. Now my suspicions have been confirmed. The findings reveal a whopping nine out of 10 (88 per cent) B2B marketers make use of the technique. Remarkably, among those doing so, almost one half (44 per cent) broadcast s once a week or more often. This popularity means message overload is a real problem. A business buyer often receives several hundred marketing s a month. Inevitably these merge into one indistinct mass. marketing performance statistics reflect this fact: B2B marketers now achieve an average open rate of 24 per cent, and a click-throughrate of just 13 per cent. A bit depressing when you consider marketing consumes one quarter (24 per cent) of the typical marketing department s time. Despair not though; it is possible to stand apart: 1. Create quality content: Ask B2B marketers which style of marketing gets them the best results and first, by far, is anything that shares thought leadership. Likewise, the single most effective route to boosting performance is felt to be compelling subject matter. And as a bonus, not only will good content optimise success, but it can feed other activity such as social media, events and PR. ANDREW DALGLISH DIRECTOR CIRCLE RESEARCH I ve always felt my groaning inbox bore testament to the popularity of marketing. Now my suspicions have been confirmed 2. Hook them in: Behind subject matter, the next most effective route to boosting performance is felt to be a carefully crafted subject line. A subject line that is short, intriguing and quickly conveys the value of opening the message. 3. Focus on data: A relevant and accurate database is a pre-requisite to success. Yet even though most (78 per cent) refresh their database at least two to three times a year, B2B marketers tell us that data accuracy is still the most significant challenge they face. Finally, remember the simple touches. You have top quality content, a carefully crafted subject line and a sparklingly clean database; now be sure to strike when the time is just right. This Benchmarking Report reveals the best time to broadcast s to a B2B audience is Tuesday between 10am and 1pm. The worst is Monday between 8am and 10am. Marketing Benchmarking Report B2B Marketing

11 Premium members of B2B Marketing receive all our reports and research documents as part of their one-off membership payment. They also receive an annual subscription to B2B Marketing magazine and discounts to events and conferences. b2bmarketing.net GET ACCESS TO ALL OUR REPORTS NOW! Marcomms Agencies Benchmarking Report A B2B Marketing Report Published October 2011 Video Marketing A B2B Marketing Best Practice Guide B2B Marketing produces over 20 reports per year, including: Benchmarking Reports: Indepth analysis of key channels or industry verticals based on exclusive research of the B2B community, providing marketers with the means to compare their activities and results against contemporaries. Recent reports include: Marcomms Agencies, Social Media, Lead Nurturing, IT Marketing. Best Practice Guides: Practical guidance and advice focused on key objectives or utilising particular marketing tools or techniques, written by experts in their field, helping marketers understand their potential and ensure they are using them to best effect. Recent guides include: Twitter, Video, Mobile, Content Marketing. Business Cases: Background information and data designed to help rationalise the need and build a case towards a specific marketing investment. Recent business cases include: Marketing Automation, Social Media, Mobile Apps. Technology Evaluation Guides: An overview of a particular type of marketing technology, plus indepth functional comparison data on leading solutions, enabling informed solution selection and shortlisting. Recent guides include: Social Media Monitoring, Marketing Automation, CRM. For more information on membership of B2B Marketing, or to buy: Go to b2bmarketing.net/membership Call Alistair Lee on Social Media A B2B Marketing Business Case Published August 2010 Published November 2011 IN ASSOCIATION WITH Marketing Automation A B2B Marketing Tech Evaluation Guide Published April 2011

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