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1 Copyright SiriusDecisions. All Rights Protected and Reserved. 1

2 Adopting to new B2B buyer behaviour in a connected and digital world Julian Archer Research Director Demand Creation Strategies LinkedIn: julianarcher Twitter: JulianArcher Tel:

3 SiriusDecisions Advisory Services Account-Based Marketing Advisory Services Channel Management Strategies Demand Creation Strategies Executive Edge CMO Marketing Operations Strategies Portfolio Marketing Product Management Sales Enablement Strategies Sales Operations Strategies Strategic Communications Management Interfaces Receive: Dedicated Account Team Research portal access Analyst inquiry Access to benchmark data Annual custom benchmark assessment Executive peer roundtables/ forums Monthly research Webcasts 2014 SiriusDecisions. All Rights Reserved 3

4 Select Client List Copyright SiriusDecisions. All Rights Protected and Reserved.

5 Executive Summary Key issues - B-to-b demand creation is increasing in complexity. This is driving the need for greater sales and marketing alignment - Changes in buyer behaviour require marketers to adapt their strategies to align with buyers needs and preferences throughout the buying cycle - Many organisations lack the process discipline and technology to measure marketing s contribution to the business What you will walk away with Current reported tactic budget spend and perceived effectiveness driving enquiries at the top of the Demand Waterfall across EMEA An understanding of content s evolving role in demand creation, An understanding of technology and measurement approaches that can drive companies to better performance 2014 SiriusDecisions. All Rights Reserved 5

6 SiriusDecisions: EMEA Demand Creation Study

7 Our Methodology ü Series of qualitative interviews ü Large-scale quantitative study ü Over 400 Organisations Nordics, 13% UK, 13% Netherlands, 13% France, 15% Italy, 16% Spain, 16% Germany, 13% Ø Countries and regions represented 2014 SiriusDecisions. All Rights Reserved 7

8 Profile of Participating EMEA Organisations Industry 4% 18% 7% 8% 7% 10% 17% 29% Software - SaaS based Software - On premise Professional services Financial Services Information Services Computer/ Telecommunicat ions Hardware Healthcare Other (please specify) EMEA Revenue 14% 21% 9% 20% 11% 13% 12% Go To Market Model 7% 13% 43% 17% 20% Less than 40 million EUR 40 to less than 200 million EUR 200 to less than 500 million EUR 500 to less than 1000 million EUR 1000 to less than 5000 million EUR More than 5000 million EUR Don t know Direct Sales Force Inside Sales Force Third Party Channel Partners Retail 2014 SiriusDecisions. All Rights Reserved 8

9 EMEA Demand Creation Study Budget Allocation by Tactic

10 EMEA Budget Allocation by Tactic SiriusPerspective: Today, 35 percent of the marketing budget is used for demand creation; of that, almost half is allocated to four tactics. Online Communities (Internal) Videos Demos Content Syndication Online Communities (external) White Paper Downloads Trials Contact list rental/purchase Search Keyword Sponsorship Association Marketing Virtual Events Newsletter SEO User Conferences Direct Mail Tradeshows Live events (seminar / road show) campaigns Online Banner Advertising 2.0% 2.1% 2.2% 2.5% 2.6% 2.8% 3.1% 3.9% 4.2% 4.4% 4.6% 4.7% 4.7% 4.9% 6.6% 10.4% 10.1% 11.2% 21% 34% 45% 12.9% 2014 SiriusDecisions. All Rights Reserved 10 Source: SiriusDecisions, EMEA Demand Creation Study, April 2013

11 EMEA Budget Comparisons: Top 5 Tactics 11.6 Online Banner Advertising Tradeshows Campaigns Live Events (seminar/ road show) Direct Mail UK FR IT DE SP NL NO 2014 SiriusDecisions. All Rights Reserved 11 Average

12 EMEA Demand Creation Study Most Effective Tactics Reported by EMEA Marketers

13 5 Most Effective EMEA Tactics: Seller s View SiriusPerspective: Five tactics were reported to be most effective in driving responses in EMEA. Suspect Committing to Change #1 Live Events Trade Shows Online Banner Ads Exploring Possible Solutions User Conferences #2 Committing to a Solution #3 CV # SiriusDecisions. All Rights Reserved 13

14 Most Effective Tactics for Driving Inquiry: Country-Level SiriusPerspective: Three of the same tactics were rated the most effective across all key markets. Tac$c campaigns Tradeshows Live events Online banner ads User conferences Direct mail Nordic NL ES IT FR DE UK 38.4% 42.6% 51.7% 36.0% 56.0% 42.1% 40.0% 39.0% 29.4% 31.0% 30.3% 40.5% 39.5% 34.1% 31.5% 29.4% 42.5% 31.5% 39.3% 36.8% 44.7% 36.3% 37.9% 37.1% 29.8% 30.3% 35.3% 28.1% 33.8% 35.3% 29.9% 30.6% Newsle=er SEO 31.5% 31.0% 30.3% 2014 SiriusDecisions. All Rights Reserved 14

15 Tactics: Seller s vs. Buyer s View SiriusPerspective: While sellers rely heavily on outbound tactics, EMEA b-to-b buyers utilise other sources to educate themselves. Live Events Trade Shows Com mitti ng to #1 Online Chan User Banner ge Conf. Ads Online Banner Expl Ads orin g Poss ible Solu Com tions mittin g to a Soluti on Direct Mail # 3 C #2 V #2 # 4 SEO Ask Team Search Online Search Engines Com mittin g to Call Chan a Peer ge Expl orin g Poss ible Solu Com tions mittin g to a Soluti on Vendor Web site #2 #2 # 3 C V# SiriusDecisions. All Rights Reserved 15

16 What Drives Change? B-to-B Buyer Behaviour SiriusPerspective: Up to 67 per cent of the buyer s journey now occurs digitally, shortening the actual time for sales engagement. Education Phase 1 Loosening of the Status Quo 2 Committing to Change Marketing Is Taking the First Sales Call Solution Phase 3 Exploring Possible Solutions 4 Committing to a Solution Marketing Vendor Selection Phase 5 Justifying the Decision 6 Making the Selection Sales Point of Prospect Intersection With Rep 2014 SiriusDecisions. All Rights Reserved 16

17 Link Content to Buyer s Journey 2014 SiriusDecisions. All Rights Reserved 17

18 Align Content and Programs to Buying Cycle Loosening of the Status Quo Committing to Change Exploring Possible Solutions Committing to a Solution Justifying the Decision Making the Selection Education Solution Vendor Selection We may have a problem, or we are conceiving a vision. We understand the problem and how it connects to our business. Your solution applies to our need. Your solution will have the greatest impact on our business. The business case is justified internally. We are confident on moving forward. Thought Leadership Solution Knowledge Value Story Solution Differentiation Financial Justification Decision Validation Virtual Events Social Media Trade Shows White Papers Blogs Web Site/SEO Webcasts Self- Guided Demos Product Collateral Sales Presentations Webcasts Live Events Case Studies Internal Blogs 2014 SiriusDecisions. All Rights Reserved 18 Trials Proofs of Concept Competitive Tools SME Access ROI Tools TCO Tools Business Case Financial Presentation Live Events Executive Briefings Analyst Reports Customer References

19 Link Complexity of Buying Team from Cold to Close 2014 SiriusDecisions. All Rights Reserved 19

20 The SiriusDecisions Re-architected Demand Waterfall Inquiry Inbound Outbound Marketing Qualification Automation Qualified Leads (AQLs) Teleprospecting Accepted Leads (TALs) Teleprospecting Qualified Leads (TQLs) Teleprospecting Generated Leads (TGLs) Sales Qualification Sales Generated Leads (SGLs) Sales Accepted Leads (SALs) Sales Qualified Leads (SQLs) Close Won Business PATENT PENDING 2014 SiriusDecisions. All Rights Reserved 20

21 Link Importance of Technology to Demand Creation - MAP 2014 SiriusDecisions. All Rights Reserved 21

22 The Usual B-to-B Scenario No nurture/ qualification 80% Inquiry Inquiries Sales accepts everything/nothing Inefficient use of sales resources Poor pipeline dynamics SQL 100% 3% -?? 10% -?? Marketing and Tele Qualification Marketing and Tele Qualification Sales Acceptance Sales Acceptance Sales Qualification Sales Qualified Leads Sales Qualification Close 417 inquiries to 417 close inquiries deal to close 1 deal 2014 SiriusDecisions. All Rights Reserved 22

23 The Best-in-Class B-to-B Scenario Real lead qualification 9.3% Inquiry Inquiries Strong process that is adhered to 85% Marketing and Tele Qualification Marketing and Tele Qualification Sales Acceptance Sales Acceptance Sales becomes more efficient Pipeline dynamics improve SQL 62% 29% -?? Sales Qualification Sales Qualified Leads Sales Qualification Close 417 inquiries to 70 inquiries close 1 deal to close 1 deal 2014 SiriusDecisions. All Rights Reserved 23

24 Benefits of Marketing Automation 1. Visibility and Insight Better measurement and diagnosis of cold to close process 2. Lead Nurturing Optimization Clear disposition of each and every customer and prospect 3. Improved Conversion Rates More efficient execution with process automation Focus on data quality to support segmentation and targeting Focus on sales and marketing alignment 2014 SiriusDecisions. All Rights Reserved 24

25 MAP Technology: Nordics Adoption and Utilization SiriusPerspective: Implementing multi-touch, integrated demand creation programs requires a marketing automation platform. Q) MAP currently in place? Of those having a MAP in place, 37.5% have standardized its usage. Most common usages Yes include: 16% No 84% Q) Planning to implement within the next 24 months? No 74% Yes 26% 2014 SiriusDecisions. All Rights Reserved 25 Other (please specify) Partner acquisition Task creation Content reporting Account scoring Automatic lead conversion #3 Personalized landing pages Progressive forms Personalized content Social Media Monitoring #5 Lead scoring capabilities Lead nurture programs 0.0% #1 0.0% #212.5% 0.0% 0.0% 12.5% #2 0.0% #3 CV 12.5% #4 25.0% 25.0% 37.5% 50.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Source: SiriusDecisions, EMEA Demand Creation Study, April 2013

26 Best Practice: Integrated Marketing Mix Why Bother? SiriusPerspective: When inbound and outbound approaches are combined, more leads are generated at a lower cost. Outbound Only Integrated Programs Lead to Close Sourced Pipeline 15.5% 30%+ Close Rate 19% 24.5% Influenced Pipeline 52% 70% + Marketing Touches Programs 50 + < 30% Program Design Single-Channel Multi-Channel Campaign Focus Product Solution Primary Source Web Marketing Pipeline Cost 2% - 3%.5% -1.5% 2014 SiriusDecisions. All Rights Reserved 26

27 Action Plan To drive differentiation in a highly competitive market, understand your buyers and their information needs at each stage of the buying process As the marketing mix continues to evolve, avoid spreading your budget too thinly across various tactics Continue to experiment and ensure tactics are aligning with buyer interaction preferences and information needs Determine marketing s contribution using the SiriusDecisions Demand Waterfall Copyright SiriusDecisions. All Rights Protected and Reserved. 2 7

28 Thank You! Julian Archer 2014 SiriusDecisions. All Rights Reserved 28

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