Marketing Is The New Differentiation In The Tech Industry

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1 Marketing Is The New Differentiation In The Tech Industry Peter O Neill, Vice President & Principal Analyst Cisco Velocity Webinar July 29, 2012

2 Vendor-centric fulfillment marketing models don t work in today s market Today s empowered buyer controls when and how information is found and consumed; vendor and channel partner success will become dependent on marketers configuring their programs and content accordingly to the buyer journey.

3 Agenda 1. Why tech marketing must become strategic 2. Understanding the buyer s journey 3. Developing compelling marketing programs

4 Tech marketing has traditionally been about campaigns for lead generation Old Market interactions based on offers Seller Buyer Offer Respond Fulfill O-R-F scales with media Source: May 07, 2008, Community Marketing: A New Discipline For Business Technology Marketers Forrester report

5 Now there is a new model Another change: from IT to business technology (BT) Old Market interactions based on offers New Market interactions based on needs Seller Buyer Seller Buyer Offer Need Respond Match Fulfill Engage O-R-F scales with media N-M-E scales with social media Source: May 07, 2008, Community Marketing: A New Discipline For Business Technology Marketers Forrester report

6 The customer s journey ends with THEIR outcome Outcome Implement Roll-Out Select Aware Scope Plan Customer s hard work starts after select. Customers routinely abandon plans after selection Cloud-based, subscription solutions must prove themselves every month. Customer journeys are communal.

7 And something else has changed The Social Technographics ladder Creators Conversationalists* Critics Collectors Publish a blog Publish your own web pages Upload video you created Upload audio/music you created Write articles or stories and post them Update status on a social networking site Post updates on Twitter Post ratings/reviews of products or services Comment on someone else s blog Contribute to online forums Contribute to/edit articles in a wiki Use RSS feeds Vote for websites online Add tags to web pages or photos Joiners Spectators Inactives Maintain profile on a social networking site Visit social networking sites Read blogs Listen to podcasts Watch video from other users Read online forums Read customer ratings/reviews Read tweets None of the above Groups include people participating in at least one of the indicated activities at least monthly. *Conversationalists participate in at least one of the indicated activities at least weekly.

8 2011 social media behaviors by BT buyers US online adults, for any purpose* 23% 31% Creators Conversationalists BT decision-makers, for business purposes 32% 17% 86% of business technology buyers engage in some forms of social activities while working. 33% Critics 46% 19% 59% Collectors Joiners 36% 44% Percentages include US online respondents who said that they engage in selected social activities for any purpose and BT decision-makers who said that they engage in selected social activities for business purposes or for both business and personal purposes. 68% Spectators 80% Base: 1,001 BT decision-makers at firms with 100 or more employees in the US and Western Europe 19% Inactives 14% *Base: US online adults Source: North American Technographics Online Benchmark Survey, Q (US) and US And European B2B Social Technographics Online Survey For Business Technology Buyers, Q1 2011

9 2012 Social Technographics ladder by country For business purposes US (N = 4348) Europe total UK Germany France (N = 1960) (N = 672) (N = 648) (N = 640) 37% 49% 43% 47% 60% 25% 31% 29% 26% 38% 46% 59% 55% 58% 67% 38% 49% 46% 47% 53% 46% 45% 43% 41% 53% 77% 72% 74% 69% 74% 18% 22% 22% 26% 19% Base: US and European BT decision-makers at companies with 100 or more employees Source: Forrester Tech Marketing Navigator, Q1 2012

10 Agenda 1. Why tech marketing must become strategic 2. Understanding the buyer s journey 3. Developing compelling marketing programs

11 Understand the buyer s journey Solution MARKETING INTERACTIONS SOCIAL & DIGITAL RESEARCH BY BUYERS Need SALES INTERACTIONS

12 Pure campaigns are not enough 30% No one influencer has more than 30% of the total power through the purchase process 7.6 Average number of different sources used through out the purchase funnel 3:1:1 The ratio of find on their own, what we can send them, and what sales can deliver, in the overall mix Source: Forrester s Tech Marketing Navigator

13 Lead nurturing circa 2006 Lead origination Lead nurturing Sales Marketing s key focus was getting new names into the funnel. The primary role of lead nurturing was to stop warm leads from leaking out of the funnel. Source: October 4, 2006, Improving B2B Lead Management Forrester report 22

14 What the buyer s journey really looks like Source: Forthcoming Forrester report 24

15 Lead nurturing should guide buyers to a decision Investigate solution Consider scope and plan Evaluate potential solutions & providers Awareness and Pre-sales lead generation Marketing nutures customer journey with social/digital content Understand requirements and propose solution 23

16 Think beyond lead generation, pre-sales and proposals it s L2RM Awareness Lead origination Lead nurturing Sales process Revenue Customer retention and expansion Revenue Lead-to-revenue management (L2RM)

17 Marketing works to improve conversion ratios Opportunity for marketing to contribute to success Awareness Inquiry Lead Origination Marketing Ready Lead Nurturing Sales-Ready Sales Process Deals won Initial Revenue Customer Retention & Expansion Customer Lifecycle Revenue Average conversion ratio for the tech industry 35% 32% 6% The numbers to beat!

18 The ROMI* for a managed L2RM process Nurturing investment Worst performers Top performers Average conversion ratios from Forrester s Research Lead origination Lead nurturing Pipeline ready Won deal End-toend 34% 30% 24% 20% 0.49% 38% 34% 28% 25% 0.90% 50%: six or more touches It matters! Nearly double the end-to-end conversion rates * ROMI is Return On Marketing Investment Base: 136 marketing decision-makers at North American high-tech B2B companies with 100 or more employees; Source: Q North American B2B Technology Marketing Tactics And Benchmarks Online Survey 34

19 Agenda 1. Why tech marketing must become strategic 2. Understanding the buyer s journey 3. Developing compelling marketing programs

20 Document your buyers as personas Cynthia Ianato Chief Information Officer Role and Tenure. Personal Profile Key Issues & Responsibilities What makes the job hard What makes the job fun

21 Map your content to their journey Consideration Buyer Activities Research Solutions Architect the Solution Build a Business Case Establish Budgets Potential Content Options Whitepapers Technical Spec s ROI Models Product Cost Information Implementation and Adoption Plans Integration information Awareness Consideration Purchase

22 Map your content to their journey Purchase Buyer Activities Evaluate Vendors Shortlist Vendors Proofs and Pilots Negotiate Potential Content Options Features and Options Competitive Comparisons ROI Examples Customer References Deployment Options Price and TCO Examples Awareness Consideration Purchase

23 It s no longer about you and your 4 P s Product, Price, Promotion and Placement Mantra for tech product managers, but most only worked on the first two Product features and functions, benefits and perhaps, advantages Promotion was done outside of the product (if at all) Sales promotion programs with incentives Corporate brand awareness is often asynchronous with product marketing Placement became indirect channels and was ran by Sales Channel portfolios are tactical, overflowing and overtaxing

24 Think of the 5 C s of customer intimacy Content portfolio Marketing collateral that is chunkier, richer in media and includes external contributions Cross-Medium Integrated marketing campaigns using traditional and social channels Controlled sequencing Content orchestration, playbook-led campaigns to nurture leads Collaborative sales and marketing Organisations are aligned and respected, agree on roles and responsibilities Calibration Measurement across marketing life cycle based on revenue management

25 A blueprint for making it real Remember, you are marketing together with your vendor(s) But your marketing should align to your strategy. Base the marketing mix on the 5 C s Expect your vendor(s) to provide suitable marketing services and platforms Consider customer service as a new marketing discipline. You need a marketing content strategy

26 Thank you Peter O Neill Engage more with us Community: Blog:

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