Marketing As A Strategic Weapon. Laz Gonzalez Service Director Channel Management Strategies

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1 Marketing As A Strategic Weapon Laz Gonzalez Service Director Channel Management Strategies

2 What We Do Kirby Wadsworth VP of Global Marketing F5 Networks Donald Friedman EVP and CMO CA, Inc. SiriusDecisions provides research and advisory services focused on the operational intelligence sales and marketing executives need to maximize top line growth Lucy Gillard, Director, Global Demand Gen Cognos Perry Dembner VP of Marketing CyberSource

3 Partial Client List

4 Agenda Three Questions to Answer How Can Digital Marketing & Nurturing Drive Sales Effectiveness What Approaches are Leading Companies Utilizing to Gain Better Return on Their Marketing Investments? What Benchmarks and Key Performance Indicators Drive Success? 4

5 B-to-b Marketers Skills Gap SiriusPerspective: A significant need exists for the education of marketers on best practices in b-to-b organizations. 5

6 Driving Sales Productivity Through Marketing Effectiveness 6

7 Source: SiriusDecisions Inhibitors Contributing to Lack of Sales Performance SiriusPerspective: Partner reps manage 1 or 2 key relationships and up to six minor partnerships each vying for greater mindshare Increasing the PRODUCTIVITY of salespeople should result in more high-quality customer interactions. 7

8 Optimizing Sales Productivity SiriusPerspective: Increasing the productivity of salespeople results in more high-quality customer interactions. Efficiency (time & energy) How much time and effort does it take to Create a solution Craft a proposal Find a prospect Process Skills Tools Increased Productivity More Opportunities Shorter Sales Cycles Larger Deal Size Higher Win Rates Productivity What is the quality and customer relevance of Suspect touches Prospect interactions Client relationships Effectiveness (quality & results) Source: SiriusDecisions 8

9 Demand Waterfall: What Should Marketers Know? SiriusPerspective: It s not just about downloads or filling seats, real lead conversion requires that marketing assist throughout

10 Digital Nurturing Best Practices 10

11 SiriusDecisions Demand Waterfall: Not Just Leads SiriusPerspective: Both marketing and sales must have common definitions when jointly generating demand in the channel INQUIRY Hand Raiser, takes you up on your offer SAL Sales Rep Accepts the lead and agrees to work it within a specific timeframe CLOSED Business is reported closed through channel Manager, CRM or POS Systems Inquiries Marketing Qualified Leads (MQLs) Sales Accepted Leads Sales Qualified Leads (SQLs) Closed/Won Business MQL Marketing Qualified Leads Typically via tele-services SQL Active Opportunity Source: SiriusDecisions 11

12 Effectiveness: Generating Better Demand SiriusPerspective: Demand type forces vendors and their partners to re-think the solution, the market and the competition 12

13 Vendor Selection Solution Education Buying Cycles, Redefined by Trusted Channel Partners SiriusPerspective: As partners play the role of trusted advisor, they short-circuit the buy cycle and shorten timeframes. SiriusDecisions Trusted Advisor B-to-B Buying Buying Cycle Cycle Why is this important to us now? One: One: Committing to Change to Education Phase P CXO Case Studies, White Papers What happens if we do nothing? Two: Loosening of the Status Quo Two: Loosening of the Status Quo Three: Exploring Possible Solutions Active Buying Phase P I Auditing Tools Industry Reports How much does this add to our current costs? Four: Committing to a Solution Three: Exploring Possible Solutions Five: Justifying the Decision Closing Phase P CXO TCO, ROI Six: Making the Selection Source: SiriusDecisions 13

14 Assets Source: SiriusDecisions Focus Efficiency Giving Sales Reps More Time to Sell SiriusPerspective: The average salesperson spends only 18 percent of his/her time selling; architect efficient and useful assets. Loosening of the status quo Committing to change Exploring possible solutions Committing to a solution Justifying the decision Making the selection BUYERS JOURNEY Knowledge Inflection Points We might have a problem, or we are conceiving a vision. I understand the problem and how it connects to our business issues. Your solution applies to our need. Your solution will have the greatest impact on our business. The business case is justified internally; we are ready to move forward. Articles White papers Analyst reports Case studies White papers Blogs Self-guided demos Playbooks Battlecards Where to find? Presentations Competitive tools Objection handling ROI tools References Proposals Thought Leadership How to utilize assets? Solution Knowledge Value Story Value Validation 14

15 Marketing s Job: No Longer Just Filling the Funnel 1 SEED The use of traditional and social media to set the stage for demand to be created. 4 2 CREATE The generation of original demand, with a focus on quality vs. quantity. ACCELERATE Efforts geared to help sales move deals more quickly through the pipeline. 15 Inquiries Marketing Qualified Leads (MQLs) Sales Accepted Leads Sales Qualified Leads (SQLs) Closed/Won Business 3 ENABLE Helping reps move marketing-created demand, as well as to source their own demand. 5 NURTURE Care and feeding of prospects that have fallen out of the waterfall. Source: SiriusDecisions

16 Integrated Marketing BUYING CYCLE NEW CONCEPT NEW PARADIGM ESTABLISHED MARKET Loosening of the status quo Committing to change Exploring possible solutions Committing to a solution Justifying the decision Making the selection MESSAGING SEED CREATE NURTURE ENABLE ACCELERATE GROW Create awareness around a new problem Align problem with business issues; drive urgency Help buyer identify needs in solving the problem Align solution with specific sets of business needs Demonstrate core features and functionality Validate/ reinforce choice, build business case Education Solution Vendor Selection TOUCHES Education Education Solution Solution Solution Selection Selection Selection Selection T1 T2 T3 T1 T2 T3 T1 T2 T3 White Paper Webinar Case Study White Paper Event Webinar Analyst Report Case Study Peer Interaction 16

17 Process Tactics Delivering the right program, not just tactics SiriusPerspective: Marketing s must align its programs with customer requirements in order to close, retain and grow business. Loosening of the status quo Committing to change Exploring possible solutions Committing to a solution Justifying the decision Making the selection SEED CREATE NURTURE ENABLE ACCELERATE GROW Generate New Business Reputation and Demand Creation Increase Conversions Sales Enablement Retain and Grow Client Marketing Social media Newsletters White papers Blogs Events Webinars Case studies Testimonials Website SEO Self-guided demos Product collateral Presentations In-person demos References Competitive tools SME access Internal blogs Trials Proofs of concept ROI tools Exec briefings Proposals Peer Interaction Newsletters Customer events/awards Analyst Reports Case Studies Social Media Thought Leadership Program Product/solution launch Customer reference programs Pipeline acceleration programs Nurturing programs Sales enablement programs Account-based marketing Value reviews Loyalty programs

18 Prescriptive Channel Marketing 18

19 Partner s #1 Request More Leads Find Net New Customers

20 Channel Demand Creation Varies by Approach/Segment Relationship Marketing Account Based Marketing Highly Targeted, Sales Driven Activities Perpetual Demand Major Enterprise Accounts / General Territory Customized Marketing for Named and Existing Accounts Hybrid Marketing SMB Transactional Continuous Digital & Pull Marketing Tactics Scalable, Prescriptive Campaigns-in-a-box Source: SiriusDecisions 20

21 Source: SiriusIndex General Territory and SME Program Mix SiriusPerspective: Inbound marketing rules as the primary approach for SME, while relationship marketing works best with larger enterprises 70% 60% 50% 40% 30% 20% 10% Program Mix 0% Named General Enterprise Commercial Territory SMB Account Data Intelligence 23% 14% 15% 13% Awareness / Inbound Digital 15% 22% 28% 60% Demand Generation 22% 36% 42% 25% Relationship Marketing 40% 28% 15% 2% 21

22 What is Changing in B-to-b Marketing? 22

23 The Role of The Web SiriusPerspective: The role of the web is expanding, allowing companies to build digital relationships with potential customers WEB ROLES Watering Holes: The web is the primary source to pull prospective clients. Nurturing: Web based tools are used to connect a prospect from play to play. Destination: Your home page should be the ultimate destination for prospective clients. Digital Relationship: A digital relationship by nature is web-based. The benefit is a more effective manner to demonstrate value quickly and track behavior 2015 Web 53% 71% Source: SiriusDecisions 23

24 Shifting the Focus to Inbound and Pull Marketing SiriusPerspective: Inbound marketing uses indirect tactics to attract an appropriate general audience using content. Search Engine Optimization Paid Search Content Syndication Directory Advertising Banner/Online Advertising Tools (blogs, podcasts) Outlets (communities, Twitter, Facebook, LinkedIn PR/AR Association Marketing Source: SiriusDecisions 24

25 Poll Question What web marketing tactics do you typically employ? 1. We do not employ web marketing, instead we rely on event and relationship marketing 2. The extent of our web marketing is limited to marketing 3. We commonly execute web marketing programs that involve multiple touches Source: SiriusDecisions 25

26 Best Practice Characteristics of B-to-b Web Marketers SiriusPerspective: While there are many differences between average and high performing companies four characteristics are consistent. Sales Pipeline 70% + Influenced Not a Leads Only Focus Sales Alignment Universal Lead Definitions Strong SLA s Program Mix Web Centric Strong Inbound / Digital Integrated Based on Buyer Journey Multi-Touch Programs Source: SiriusDecisions 26

27 Role of the Web: Digital Nurturing Example Landing Page Sales Alert Watering Holes 1 biz day Touch 1 3 biz days Touch 2 30 biz days Touch 3 / Offer Social Media Blog Training Offer Live Event

28 ACTIVITY Program Effectiveness: Planning Stages SiriusPerspective: Working in unison, partners can leverage supplier demand capabilities to align programs fill gaps in partner execution. Planning Buyers Journey Design Program Execution Activity Relative Marketing Sales Requirements Demand Type Lead Definition Journey Model Audience Dynamics Message Map Multi Touch Multi Channel Nurturing Type Play Architecture Program Assembly Tele Services Campaign Mgmt Lead Mgmt Nurture Model Lead Scoring Play Cadence Activity Trigger Web Services Demographic Trigger 28

29 Best Practice Planning: Mapping Out the Journey Journey 0. Create the Need 1. Problem Identification 2. Qualification 3. Evaluation 4. Purchase Commitment Message Increase Operational Efficiency Give Reason for a Meeting Provide Avenue For Self- Selection Competitive Differentiation Create Sales Enablement Content Touch Tactics High Propensity: Direct Offer Low Propensity Touch 1: Ext Web Watering Holes, Online Advert High Propensity Touch 2: Meeting invite Low Propensity Touch 2: Introductory Offer High Propensity Touch 3 Wkshp Invite Low Propensity Touch 3: Video Series, White Paper Offers Content for Sales (Battle Cards) Content for RFP, Sales Enablement Journey Enablement Air Cover and Direct Marketing Provide Offers to Engage with Supplier Offer Content to Help in Their Decisions Arm Sales Team with Tools Arm Sales Team With Tools Infrastructure Requirement Marketing Automation, Data, Web Marketing Automation Marketing Automation Data, System Alignment Data, System Alignment 29

30 Mapping Out the Journey Using Cisco Campaign Content 30

31 Metrics That Matter

32 Average* Marketing Investment Ratio to Pipeline Creation Marketing Sourced Pipeline % of sales pipeline uniquely created by marketing Marketing Influenced Pipeline % of sales pipeline touched by marketing Investment-to- Pipeline Average cost of demand creation of the sales pipeline Investment-to- Revenue Average revenue generated from $1 invested in demand creation 10% to 50% 30% to 82% 1% to 4% $5 to $20+ Source: SiriusIndex

33 Best in Class Marketers Differentiate Lead Levels 1-5 SiriusPerspective: Depending on the data available, each lead level can have an impact on the overall cost to generate them 33

34 Cost Per Lead Varies by Segment and Data The SME market is predominantly a low touch, high volume marketing model with lower lead qualification and lower average cost per lead. $25-$200 $200-$650 Level 1 Level 2 SMB The large enterprise market is predominantly a high touch, low volume marketing model with higher lead qualification and higher average cost per lead. $650-$1,700 $1,700 - $3,200 $3,200 - $5,500 Level 3 Level 4 Level 5 LE Source: SiriusIndex 34

35 Five Metrics That Matter SiriusPerspective: As inquiries convert to leads, then are registered and ultimately closed, each stage yields key insights 35 35

36 Source: SiriusDecisions The Demand Waterfall 1000 Inquiries INQ - MQL MQL-SAL Marketing Qualified Leads (MQLs) 39 Sales Accepted Leads 23 SAL-SQL SQL-CLOSE Sales Qualified Leads (SQLs) 11 Closed/Won Business

37 Force Multipliers SiriusPerspective: A new demand generation approach can lead to stronger pipelines and greater efficiency. Pipeline Impact 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Sourced 52.3% 11.5% Average Influenced 27.1% 72.4% Best Practice Sourced: Marketing leads passed to sales that become sales pipeline where there was no opportunity in the last six months. Influenced: Percentage of the sales pipeline demand generation efforts have touched. Comparison Average Best Practice Expense:Revenue $24.19 $50.08 * Lead to Close * The average number of qualified leads required to close one deal. 37

38 Take-Away s The combination of marketing activities is more important than any one tactic Align marketing programs by the buying cycle and customer segment The web is where early stage leads are generated as prospects educate and form opinions cast a wide net! Measure your campaign s performance using KPI s that can pinpoint marketing s contribution to sales pipeline 38

39 Cisco Integrated Multi-Channel Campaigns 39

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