WHAT ABOUT MARKETING PRODUCTIVITY? The First Annual State of Marketing Productivity Report

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1 WHAT ABOUT MARKETING PRODUCTIVITY? The First Annual State of Marketing Productivity Report

2 The 2016 State of Marketing Productivity Report 2 Foreword In the B2B world, few topics get as much airtime and focus as sales productivity. How often do you hear: Wouldn t it be great if we could get our reps to be productive What if we could get our reps to spend more time in front of customers Is there anything more precious than a sales person s time? Companies religiously track it, analyze it, and look for ways to increase time spent on revenue generating tasks. No reasonable person will dispute that rep productivity is an important metric. However, I have two bones to pick: 1. It is a lagging indicator 2. It overshadows another key leading indicator marketing productivity While companies are incredibly precious about sales reps time, marketing rarely gets the same level of love. It s as if marketing has infinite capacity, and its time and resources are free. The data in this report sheds some light on the astounding discrepancy in how companies think (or don t think about) sales versus marketing productivity. This first of its kind study aims to provide data and fact-based intelligence on the state of marketing productivity, to identify challenges, and provide recommendations for maximizing this vital functions effectiveness. I want the readers of this report to leverage the data to build a business case for increased marketing productivity investments in their organizations. Alex Gorbansky CEO and Co-founder Docurated

3 The 2016 State of Marketing Productivity Report 3 Executive Summary The 2016 State of Marketing Productivity Report examines the key trends and challenges facing marketing leaders at leading B2B companies. Leveraging anonymized data from the Docurated marketing productivity solution and a survey of 1,241 sales and marketing executives, the report examines the state of marketing productivity from both the CMO and CRO perspectives. While much has been made about the state of sales productivity, there has been surprisingly little focus on the state of marketing productivity. Our survey data highlights an alarming lack of progress in this area. Key Findings: #1 Only 12% of companies reported measuring marketing productivity, while over 89% of companies regularly track sales productivity. #2 Marketing teams spend more time on ad hoc requests from sales than revenue generating activities. #3 85% of our marketing survey respondents listed supporting the sales team as their number 1 priority. #4 In a time when sales reps are faced with increasingly complex selling situations, our data shows that marketing teams are increasing their spend on content, but 90% of that content never sees the light of day! #5 56% of sales people prepare their own sales materials, which is indicative of a major disconnect between what marketing envisions and how sales people actually work.

4 The 2016 State of Marketing Productivity Report 4 Counting the Cost of Low Productivity To put the sorry state of marketing productivity into some kind of perspective, our survey respondents say that 90% of marketing-produced content goes unused by sales. With an average of 25% of marketing budget devoted to content, as much as 22.5% of total marketing budget is being wasted. Taking these figures one step further, a company with a marketing budget of $100 million wastes an astonishing total of $22.5 million. These costs come before you even consider the detrimental effect of presenting lower quality content to prospects. Meanwhile, 85% of CMOs list supporting the sales team as the top area of marketing focus. At a time when millions are wasted on marketing content that goes unused by sales, it is clear that marketing teams are falling short of their number 1 priority supporting the sales team. This failure is not altogether unsurprising when you consider that only 12% of the companies surveyed measure marketing productivity while 89% regularly track sales productivity. Top 5 Areas of Marketing Focus (% Respondents) 85% 75% 73% 72% 69% Supporting the sales team Meeting lead generation goals Contributing more to revenue generation Producing high quality content Measuring marketing results and impact

5 The 2016 State of Marketing Productivity Report 5 Counting the Cost of Low Productivity Is marketing productivity measured at your company? Yes 12% No 70% Unsure 18% Is sales productivity measured at your company? Yes 89% No Unsure 5% 6% Measuring marketing productivity based on activity as an example, the amount of content created is a complete waste of time. Instead, marketing needs to be measured on effectiveness. - Fergal Glynn, VP Marketing, Docurated

6 The 2016 State of Marketing Productivity Report 6 Where is the Trust? With highly skilled marketing teams creating large volumes of content to support their sales reps, it would appear that B2B marketing in 2016 is in a highly productive state. However, our research has highlighted the millions of dollars wasted on content that never sees the light of day and has shows how marketing is anything but productive. To get a sense of precisely where the breakdown in marketing productivity lies we asked our survey respondents where their customer-facing materials come from. We learned that over half of the content being used to support opportunities was prepared by salespeople themselves. These figures are somewhat surprising given the high levels of spending on content. If a certain type of messaging does not suit the specific situation the salesperson finds themselves in, it is highly likely the they will adapt the content to suit their own style. Clearly, sales does not trust marketing to create content that will resonate with their prospects. Where do your customer facing materials come from? Content prepared by sales reps 56% Content prepared by others 44%

7 The 2016 State of Marketing Productivity Report 7 Where is the Trust? The fact that so many salespeople are preparing their own materials should be cause for concern. Yet herein lies an opportunity for marketing. If a salesperson can pull together content from a number of documents to tell the right story and close a deal, it can be a huge opportunity for marketing to get their hands on this field-generated and proven content to refine their existing materials. Marketing teams that force feed approved content to their reps are overlooking one of their biggest assets - the reps themselves. It is the sales rep, and not the marketing manager after all, who is most in tune with the needs of the customer. Field-tested content is much more likely to close deals than unproven content dreamt up by the marketing team. Our survey data shows minimal sales involvement in content creation. Not only are sales reps preparing customer facing content much of the time, but marketing is also missing out on the opportunity to leverage this field-tested content. Do you involve sales in the content creation process? Always Sometimes Rarely Never 8% 22% 31% 39%

8 The 2016 State of Marketing Productivity Report 8 A Shift from Lead Gen to Revenue Gen Marketers in 2016 are faced with an increasingly complex landscape that spans the tools and tactics needed to do their jobs right down to how prospects research and buy products and services. We asked survey respondents to identify their top metrics for success, as shown in the chart below. Traditionally marketing has been focused on Lead Generation and Digital Marketing, but it is clear from our survey results that sales wants revenue contribution and help closing deals. Over the past 5 years marketing has advocated itself as a machine when it comes to things like data-driven lead generation and conversion rate optimization. However, most CROs are not able to confidently say that this work has led to more revenue coming in the door. Yes, marketing has produced more names/leads/suspects, whatever you want to call them. But how have these names/leads/suspects contributed to growth in revenue? In addition, heavy investment in top of the funnel programs such as Content Marketing and Thought Leadership has actually created noise and confusion on the buyer side. Buyers think they ve read everything and know the pros and cons of all the different product/solution permutations. In fact, buyers are confused and drowning in all the materials they have access to. Marketing can t continue to operate as just a cost center; marketing needs to act as a revenue generating function. A revenue producing Marketing group will focus on things they didn t worry about before such as effectiveness, and how their work affects the entire enterprise at the macro level. Top 5 Marketing Metrics for Success (% Respondents) 32% 30% 28% 28% 27% Revenue Generation Content Analytics Marketing Effectiveness Return on Investment Lead Generation

9 The 2016 State of Marketing Productivity Report 9 A Shift from Lead Gen to Revenue Gen While there is a desire is to see marketing take on increased revenue generation responsibilities, this shift has yet to play out in the enterprise. Our survey data shows that only 39% of marketing time is spent on revenue generating activities. Tactical ad hoc requests from sales and other activities like implementing new systems and administrative tasks are eating into valuable marketing time. What is marketing time spent on? Ad hoc sales requests System integration and training Revenue generating activities Administrative tasks 7% 14% 40% 39%

10 The 2016 State of Marketing Productivity Report 10 Marketing Needs to Support Sales As highlighted earlier, 85% of our respondents cite supporting sales as a priority. We asked our audience to pinpoint marketing investments and campaigns that could better support sales. There is unanimous agreement that the right story wins the deal. Unfortunately, there is also agreement that not all reps can tell that story, and no reps can tell the right story every time. Marketing should also view their campaigns more like product launches. No marketer would ever launch a product without understanding demand, so why would a marketer release content without knowing the market? HOW CAN MARKETING SUPPORT SALES? Marketing has influence over every deal in the form of a generated lead, a piece of content that closed the deal, or a great campaign that brought the prospect to an event. Marketing needs to drive sales by making it easier for reps to sell and by helping the sales team close more business. There are many ways that marketing can do this, from driving demand, to creating collateral, to hosting conferences. How Marketing Can Support Sales (% Respondents) 83% 74% 63% 63% 59% Arming the sales team with the right stories Understanding marketing effectiveness and efficiency Thinking about Content as a product Better understanding how sales use marketing assets Generating more leads

11 The 2016 State of Marketing Productivity Report 11 Content Marketing and Productivity With such a commitment to content creation in place, we asked our participants whether or not they measure the return on their content marketing investment? Companies are spending 30% to 50% of their Marketing budget on content initiatives, yet only 37% of companies measure their content ROI In a time when sales reps are faced with increasingly complex selling situations, our data shows that marketing teams are increasing their spend on content, but 90% of that content never sees the light of day! Do you measure the ROI on your Content Marketing investments? 14% 49% 37% Yes No Not Sure How will your Content Marketing budget change this year? 2% 2% 7% 31% 58% Increase Dramatic increase Remain the same Decrease Not sure When you consider the level of investment in content marketing, it seems remarkable that almost half of all companies do not measure content ROI. It would be highly unusual for similar investments in other areas of the business to go unmeasured. Marketing leaders should make measuring content ROI a priority for the benefits it can bring including: Equipping sales teams with content proven to close deals Presenting executive teams with detailed figures and statistics that justify large content investments

12 The 2016 State of Marketing Productivity Report 12 Evaluating Marketing s Contribution When we asked marketers, What are the key efficiency improvements marketing should make? the number 1 response was a more effective use of marketing dollars that contribute to revenue. This is an area where many companies struggle and analysts have built healthy businesses showing CMOs how to measure marketing s contribution to, and influence on, sales pipeline. Key Efficiency Improvements % of marketing investments Higher quality leads and #1 #2 #3 that contribute to revenue conversion rates Insight into exactly what content closes deals On average, marketing s contribution to revenue is 27%. However, the range is broad; marketing at mature software companies can deliver 60% and at professional services firms deliver 5%. Revenue contribution varies by industry and marketing investment. How is Marketing Evaluated? (% Respondents) 82% 75% 65% 62% 61% Revenue contribution from Demand Generation Quality of sales support Overall sales growth (a shared goal with sales) Brand awareness Total leads

13 MARKETING CREATES CONTENT, WITH DOCURATED, SALESPEOPLE USE IT

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