Marketing s New Paradigm: Show Us the Money!

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1 A FROST & SULLIVAN EXECUTIVE SUMMARY Marketing s New Paradigm: Show Us the Money! View the ondemand version of the ebroadcast:

2 Marketing departments are under a lot of strain right now. Budgets are tight, teams are short staffed and constantly being challenged to do more with less. At the same time, the demands on marketers have increased; they are being held more accountable than ever for their role in helping sales bring in new revenue. During this ebroadcast, Rob Butters, Principal Consultant with Frost & Sullivan, shared: n The top ways marketing can show the CEO the money, while meeting new demands and showcasing accountability. n How marketing and sales can break down silos, improve communication and get everyone on the same page. n Key steps marketers can take to leverage new technology and changes in customer behavior. NEW TRENDS AND DEVELOPMENTS IN MARKETING As pressure grows for all businesses, CEOs are paying more attention to marketing s contributions, Butters said. That means CMOs are being held more accountable for making sure their teams are delivering results aligned directly with sales goals. In other words, it s no longer enough for marketers to generate a lot of leads they are also being counted on to help play an active role in making sure those leads are converted into sales. That shift in focus is occurring at a time when CMOs are being forced to do more with lower budgets and fewer personnel resources. When attendees of this ebroadcast were asked how their 2014 marketing budget changed compared to 2013, 42 percent said it decreased. That was compared to just 25 percent who reported a budget increase. However, despite those challenges, Butters believes there are a lot of opportunities available for marketers to improve their operations, obtain better results and meet those new demands. Here are the key strategies outlined by Butters. n Break the Silos between Marketing and Sales n Share Information n Spend Wisely and Integrate Everything n Integrated Marketing Efforts n New Channels: Social Media and Mobile n The Mobile Challenge n Manage Talent and Compliment with Outsourcing n Hone in on Core Competencies 2

3 BREAK THE SILOS BETWEEN MARKETING AND SALES If the objective is to have marketing create results that are more aligned with sales goals, then it makes sense to begin by making sure the marketing and sales teams are properly aligned. According to Butters, that alignment should start at the planning stages. Typically, the two teams operate on different cycles, with marketing and sales having their planning sessions and big kickoffs at different times of the year. To get everyone on the same page, that needs to change. Ultimately, we are one team, Butters said. That s why it s important to do the planning together. That way, marketing and sales can make sure they are both sharing the information and resources the other side needs in order to perform as effectively as possible. Planning sessions should include not just the director and C-level people within the sales team, but also the voice on the streets i.e., the sales people who are actually interacting directly with customers. We need to be speaking the same language. We need to be having conversations. We need to be opening the doors to communication with sales, Butters said. I ve always included really good sales reps in all of my planning sessions. Those people have valuable opinions and insight they can share that will help marketing do a better job at nurturing leads until they become sales. SHARE INFORMATION Communication between marketing and sales must be a two-way street. Salespeople can offer marketers a lot of valuable information. Likewise, marketing must make sure it s passing along all the information salespeople need in order to convert leads into sales. What we need to do is isolate how we ve been communicated with and make sure we tie that back to our customer relationship management systems. Rob Butters Principal Consultant Frost & Sullivan A lot of that has to do with sharing data about lead behavior. In order to make the most of a sales conversation, it s critical that the rep knows what actions potential customers have taken. For example, have they read a white paper? Have they watched a webinar? Knowing those details will help sales conversations flow smoothly. We are an informed society. We want to know the information prior to having anything sold to us, Butters said. The more informed that the sales representative is on the prospect they are calling, the better the conversation. The ability to know what the prospect has downloaded, read or viewed through marketing efforts truly provides essential insight that will further the opportunity and help lead to potential business. 3

4 SPEND WISELY AND INTEGRATE EVERYTHING Marketing dollars are limited, so it s important to spend wisely and invest in a variety of different channels. The keys are to find a balance and identify the channels that offer the greatest return on investment. The question is, where should marketers spend their money? As a result of our online poll, 50 percent of the audience stated that the most effective marketing channel is live events. Events that add value are skipping multiple layers of the demand generation cycle. Somebody s there, they spend money on travel and expenses, according to Butters. Therefore, companies can skip ahead and get qualified leads faster. That s why value-added events are coming to the top of the list, Butters said. INTEGRATED MARKETING EFFORTS Demand generation and content marketing are key areas marketers are focusing on now and they re also areas in which many companies can improve. The challenge is creating content that is varied, yet also integrated. For example, using only white papers isn t going to cut it. It s important to also use live and online events, newsletters, and always-on channels such as SEO and social media. However, while variety is key, it s also critical to make sure all those channels are using a consistent brand and a consistent message, Butters said. 4

5 NEW CHANNELS: SOCIAL MEDIA AND MOBILE Evolving technology trends have created a lot of new challenges and opportunities for marketers. One of the top areas changing marketing s role is social media. While social media isn t new, it s only becoming more important and more difficult to manage. The key to getting the most out of social media, Butters said, is properly managing the data. Social media tools give companies a wealth of information about their customers. The first step to using social tools effectively is getting a program in place to capture data from social activity. What we need to do is isolate how we ve been communicated with and make sure we tie that back to our customer relationship management systems, Butters said. Then, once the data is captured, it needs to be segmented. For instance, interactions can be categorized based on whether they re with a mid-market customer, a small to medium-sized business customer, etc. From there, marketing can roll content out based on those segmentations to make sure the content is really speaking to customers. THE MOBILE CHALLENGE Another huge tech trend changing the ways companies and customers interact is the rapid increase in the use of mobile devices. Like social media, mobile technology isn t exactly new, but what is new is the idea of using mobile strategies for B2B marketing, Butters said. We are an informed society. We want to know the information prior to having anything sold to us. Rob Butters Principal Consultant Frost & Sullivan B2C marketers largely have mobile figured out, as most interactions between a consumer and a company can be carried out using a mobile app or website. However, 50 percent of B2B marketers have yet to figure out how mobile fits into their strategies, according to a 2013 B2B Lead Generation Marketing Trends Survey. When it comes to mobile marketing, different businesses will need different strategies. For example, talking to technology buyers will be different from talking other verticals. But the key is to have a strategy, Butters said. 5

6 MANAGE TALENT AND COMPLIMENT WITH OUTSOURCING One of the biggest challenges marketing teams face as they re being forced to do more with less is dealing with an understaffed department. The end result, Butters said, is that marketing professionals typically wear three or four different hats, performing a variety of different roles. While that s a challenge, marketing directors can help by making sure their people have all the skills they need to handle those duties. In addition to helping things in the department run more smoothly, that will also help the company hang on to the best marketing talent. Training will improve retention, Butters said. I can speak to that personally. I ve left organizations that didn t train me properly. HONE IN ON CORE COMPETENCIES While it s important to make sure staff is skilled in key areas, businesses will also benefit greatly with support from outsourcing. The key for marketers is to hone in on their core competencies and outsource the rest so the internal team can focus on those critical areas... The top marketing tactics companies are currently outsourcing, according to a 2013 B2B Lead Generation Marketing Trends Survey: 1. Graphic design 2. Public relations 3. SEO 4. None 5. Paid search 6. Trade show booth design and marketing 7. Company websites 8. Telemarketing 9. Media buying 10. Online advertising For many companies, those areas represent non-core operations for which internal staff don t have the right skills or resources to carry out as effectively as an outsourcing partner. 6

7 In 2014, Butters predicts lead generation services will be added to that list. Butters feels that more companies will turn to partners that have experience in both creating and implementing marketing campaigns. In addition, Butters said that moving forward, there will be an increase in the number or companies who are outsourcing their marketing. As organizations put a heavier focus on their core competencies, and what they do best, they will rely on marketing organizations to get them closer to the customer. CONCLUSION: 5 KEYS FOR GETTING RESULTS The bottom line: Marketing teams that follow the discussed key strategies and best practices get results. Companies with mature lead generation and management practices have a 9.3 percent higher sales quota achievement rate than others, according to CSO Insights. According to Butters, the 5 keys to making those improvements and getting results are: 1. Making sure marketing channels are always on and actively scorecarded 2. Presenting content thoughtfully based on previous actions by the customer 3. Aligning sales and marketing and keeping communication open 4. Cultivating internal staff and supporting them with outsourcing for non-core competencies 5. Making every marketing dollar count We need to be speaking the same language. We need to be having conversations. We need to be opening the doors to communication with sales. Rob Butters Principal Consultant Frost & Sullivan ABOUT FROST & SULLIVAN 7

8 ABOUT FROST & SULLIVAN Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company s Growth Partnership Service provides the CEO and the CEO s Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. Learn more at 8

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