Digital Marketing for Manufacturers: How to Invent to Survive in Today s Market. Thad Kahlow: BusinessOnline & Craig Coffey: Lincoln Electric

Transcription

1 Digital Marketing for Manufacturers: How to Invent to Survive in Today s Market Thad Kahlow: BusinessOnline & Craig Coffey: Lincoln Electric

2 The Common DNA core to successful MFGs Invent John Lincoln WELDING Thomas Edison ELECTRICITY Henry Ford AUTOMOBILES Stand the test of time... until till they don t. Slow, large, risk averse companies are threatened None immune from the petulant, persistent winds of change

3 The Speed of change as twice as fast as it was just three years ago Companies have to change, to adjust to the markets. Of the Fortune 500 companies 25 years ago, only 24 percent are still in business. Only a third of us will exist in a meaningful way in 25 years from now. - Outgoing CEO, John Chambers

4 Modern MFG Invent? Grand Canyon of an opportunity? ANSWER Lies: Digital has massively changed the way our customers source and buy Current State 70% of buying process is pre sales (Digital) 65% of MFG marketers are considering or experimental in digital Opportunity

5 Our perspective Global CMO & VPs Marketing Leaders + Millions of MFG customer records analyzed daily + 16 years in Digital Marketing/ BMA 2015 Agency of the year MFG Clients 2015

6 + Why Digital Why Now?

7 Pace of Change

8 Enterprise Value Paradigm Greatest Company Asset Customer Relationship

9 Not Product Not IP Not Brand

10 Age of the Customer Empowered buyers, disruptive digital innovations erase traditional competitive advantages the next wave will come from deep customer knowledge, engagement tied to the buyer's timing, and actions based on an obsessive desire to deliver what your customers want before your nearest competitor does.

11 Allow me to Digress

12

13 CEOs operate in a substantially more VUCA world -IBM Study, face-to-face conversations with more than 1,500 CEO s worldwide.

14 CEOs believe #1 goal is to get closer to customer -IBM Study, face-to-face conversations with more than 1,500 CEO s worldwide.

15 Prove Marketing s Contribution to Revenue Rise Revenue Marketer -IBM Study, face-to-face conversations with more than 1,500 CMO s worldwide.

16 Simplify Please Why Data? Why Digital? Why Now?

17 Customers have control & fundamentals have changed Because Barriers to entry are minimal, competition can enter and win quickly Customer Relationships become our largest asset Data is introduction, enabler & insight

18 And this is good for Manufacturing Marketers

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20 Future of Digital Marketing

21 Since the first days of HTTP History of the Internet & Digital Marketing ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Formula For Results Web 1.0: Static web information gathering + Websites + Banners (Hotwired)- 93 first clickable Banner Ads Web 2.0: Interactive & Social Web customer control + Search & Social Media + Social Networking = MySpace, Linkedin, Facebook + = Two way communication Web 3.0: Open & Intelligent web = 1-1 conversations at scale + ETLs + Ad Blocking: ios, (TV = DVR ad skipping) + Semantic web = unstructured data into structured + > machine learning = predictive = > UX + Small Data + More Data (+Cookies) + Big = Customer Control what, when, how, where we wanted it BusinessOnline - MFMP Vendor Number: F

22 Digital Marketing Influencers & Trends ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Ubiquitous Formula For Results Connectivity Computing: smarter, informed, empowered consumers (WW) Network > speed & < costs Open Technologies: APIs Data is Digital Currency: + Digital + Mobile (smart) + More Intimate Data: + Location, Social, Engagement + SAS, Virtualization, P2P = greater processing power: + Powered Data: store, connect, connect & data to enable the infinite + > shared & connected data + 3 rd + 1 st party data (weather, census, platforms) + IOT + More data + Better data + = Marketing Insights + Reduce under performing + Increase performing + Effectiveness & Speed Every 2 days we create > data then dawn of civilization to 2003 (5 Exabyte's) BusinessOnline - MFMP Vendor Number: F

23 Digital Tipping Point :46 4:38 4:28 4:33 0:22 0:14 0:16 0:12 TV Newspapers Magazines Digital Source: emarketer, 2014

24 Source: emarketer, 2014 Mobile > 50% threshold

25 Business is Digital. Digital is Business. $20B $50B $251B

26 + State of Digital Marketing for Manufacturers Trends, Stats & Insights 26

27 State of Digital Marketing for Industrial Manufacturers Company Profiles Vice President 27% Vice President, Director, and Manager titles were the top three represented titles Over half of companies responding to this survey are public Over half of the companies surveyed have revenues over $1 billion Director Manager Senior Director Analyst Senior Manager President Senior Vice President Title 2% 4% 6% 7% 8% 21% 24% Which of the following best describes marketing s primary role in your business? Roles: Just under half of responding companies view marketing s primary role in their business as a growth supporter. In regards to their marketing spend, over a third of members identified they spend more on customer retention than customer acquisition. Growth Supporter - Marketing is largely a communications, branding, advertising, and sales support function, and is largely product-centric. Growth Influencer - Marketing has a seat at the executive table, is customer / market-centric, and is a growth and innovation champion. Growth Leader - Marketing leads the business' strategy, represents the customer in the company, and facilitates both short and long term growth 15% 44% 40% Source: MAPI 2015

28 Q Digital Marketing Maturity: How mature would you say your company s digital Marketing Program is? Good INSIGHTS & ACTION None - no digital marketing Considering Experimental/New Experienced Expert 0% 2% 14% 32% 51% 100% of you are using digital marketing in one way or another. Yeah us! Bad 65% are Considering or Experimental/New to Digital Marketing INSIGHTS: The Key challenge is selling in the solution. Not the actual execution of the work itself. ACTION: Digital is add on No one but you understands it Measurement? Expectations Investment Source: MAPI 2015

29 Q Digital Marketing Maturity: How sufficient are the following resources to accomplish your digital marketing goals? Good INSIGHTS & ACTION 57% 43% Support from senior management 38% 64% Funding to accomplish existing digital marketing goals Majority, 57%, are getting support from management to implement Digital Marketing Bad 64% think that digital efforts are underfunded INSIGHTS: Is support being framed correctly? It s hard to turn a battleship - lack of nimbleness. ACTION: We must create a better way to define support Become responsive to truly optimize strategy on an ongoing basis to prove real value Sufficient Insufficient Source: MAPI 2015

30 Q Digital Marketing Maturity: How sufficient are the following resources to accomplish your digital marketing goals? 40% 57% 2% Digital marketing skills/"chops" of your team 60% 19% 21% Digital marketing skills/"chops" of outside agency Sufficient Insufficient Not known Good We know there are agencies that have chops Bad We know that we don t have chops internally INSIGHTS & ACTION INSIGHTS: Goes back to the meaning of support. 20 th century marketer talents ACTION: Build the marketer of tomorrow Own v. Rent Different set of talents Shift from traditional to digital Insource and Outsource Take on more as you get Bandwidth Staff Prove value Source: MAPI 2015

31 Q Digital Marketing Maturity: How important are the below metrics in measuring the success of your digital marketing efforts? 62% 34% 4% ROI Very important Important Not important How sufficient are the following resources to accomplish your digital marketing goals? 74% 58% Good 96% say ROI is an important metric in measuring success Bad 74% say there s insufficient available data to assess ROI INSIGHTS & ACTION INSIGHTS: The key challenges are availability to data and, even if we had the data, do we have the ability to analyze it? ACTION: Push back Move the conversation for ROI to KPI Make sure everyone is realistic (time) 40% 23% Bad 1% Internal ability to analyze various digital metrics 4% Availability of data to assess ROI Sufficient Insufficient Not known Only 40% have the internal ability to analyze the data Source: MAPI 2015

32 Q Digital Marketing Maturity: Which of the following digital marketing tactics does your company currently use, or have plans to use? 79% 79% 81% 85% 60% 51% 57% Good INSIGHTS & ACTION 32% 27% 21% 21% 21% 11% 11% 8% 7% 5% 6% 7% 6% 7% 8% 5% 26% 18% 5% 5% 6% 5% 28% 13% 2% Majority of you are using individual digital channels INSIGHTS: Implementing marketing automation will require strong alignment with sales Uncover new customers Use now Will use within 6 months Will use in 6-12 months No plans to use 32% 21% 27% 21% Bad Only 32% are unifying these channels as marketing automation ACTION: Build strong relationships Work to make sales comfortable Help them understand: Our work = more sales They re still the hero Marketing automation Use now Will use in 6-12 months Will use within 6 months No plans to use Source: MAPI 2015

33 Why Invest in Digital Marketing? The Facts: B2B Buyers ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Formula For Results 70% of the buying journey happens pre-sales 10 On average, 10 sources checked by prospects in anonymous investigation stage to validate BusinessOnline - MFMP Vendor Number: F

34 Why Invest in Digital Marketing? The Facts: B2B Buyers ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 93% of B2B customers conduct their research on the Internet 48% Formula For Results 71% of B2B customers discover brands / solutions they weren t aware of via search of B2B customers research the product after seeing a display ad BusinessOnline - MFMP Vendor Number: F

35 Increasing use of search specifically to do research for B2B purchases 71% 88% +90% Source: Google/Millward Brown Digital, B2B Path to Purchase Study 2011, 2012 and 2014

36 Extensive, multi-site research done before contact initiated Engagement Queries Source: Google/Millward Brown Digital, B2B Path to Purchase Study 2014

37 64% C-suite 81% Non C- suite of Non C-suite employees influence purchase decisions 24% 25% 22% 32% 13% Final Authority Heavy Influence Some Influence Source: Google/Millward Brown Digital, B2B Path to Purchase Study 2014

38 48% % % % % of influencers are younger than 45 Source: Google/Millward Brown Digital, B2B Path to Purchase Study 2014

39 Opportunity Trends Comparison Automotive: Ford F150 Manufacturing Equipment Robotics Welding Cell Average MSRP F150: $26,330 Average AOV Robotics Cell: $125,000 Cost Per Click $5.57 Cost Per Click $2.18 Ratio of Cost of Media to Purchase Price 1: 4,727 Auto: 10X Media = 2x more 1/5 $AOV Ratio of Cost of Media to Purchase Price 1: 57,339

40 + MFG Digital Marketing Solution Approach 40

41 Process Company Buying Journey +

42 Process Details Company Buying Journey Planning CBJ EXPLORE EVALUATE PURCHASE EXPERIENCE CUSTOMER Plant Manager Plant Manager SR Engineer Plant Manager Understand the needs of your CUSTOMERS throughout the Customer Buying Journey Engineer Engineer CONTENT Video Infographic White Paper Video Video Infographic Blog/Text Blog/Text Blog/Text Create CONTENT & MESSAGING to solve customer s specific needs Insight & Thought Leadership Builds Trust Align TL to Differentiation Influence new Key Decision Makers Social Proof Persuasion Sharing CONNECT Content Marketing Display Paid Social Remarketing Marketing Automation CRO Marketing Automation Social Marketing Automation Social PPC CONNECT your customers with that content & experience SEO SEO PPC Display Create Demand Engagement & Nurture Convert to sale Amplify Customer WOM

43 Targeted Prospect by Role & Company Simplified Example Customer Buying Journey Execution Explore = Create Demand Evaluate = Capture Demand Purchase = Nurture to Close Targeted Display Ad Hyper Relevant Onsite & In Network Display LI Auto fill Lead Capture Form (to Nurture) Nurture + Retargeting (Lead Accelerator) Targeted Landing Page Paid Search = Capture Demand Created (LIinkedIN+ Google) Targeted Campaign Microsite Relevant Retargeted Ad to Nurture (Lead Accelerator + Google) Sales Rep 43

44 Technology Connected Marketing Technology Channel Data Marketing Tech & Business Systems Web Analytics & Channel Management Customer Intelligence + Data Warehouse

45 Ultimate Measurement Goal Marketing ROI (mroi) ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Framework: + Reporting: what happened? + Analysis & Insights: why did it happen? + Predict: what will happen? Formula For Results + Prescribe Action: action to improve results? Prescribe & Action Campaign + Business Insights: + Forecast revenue from marketing activity? + What s my return on marketing investment? + How is marketing affecting the sales cycle? + Marketing Insights: + What should I spend on marketing? + What digital metrics should I measure? + What should my target CPM, CTR, CPL, C/MQL & C/SQL? + Customers Insights: + Who are my best prospects? + How/Why do they engage with us? BusinessOnline - MFMP Vendor Number: F Predict mroi Analyze & Insights Report 45

46 Example Insights and Reports - mroi ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Formula For Results BusinessOnline - MFMP Vendor Number: F

47 CRM And Funnel Reporting Example

48 + Case Study Lincoln Electric 48

49 Key Insight Greatest Challenge is not executing, its getting started ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// I am all of the above + Supported but underfunded + Using channels but not unified Formula For Results + In Experimental/New + Without sufficient internal chops Here s how I got started: Recognized shortcomings + Where to start? + Projects were too big + What we could do in house? + Found a product, a willing accomplice, a need to exploit + Partner with a proven track record + Sometimes outsider is heard BusinessOnline - MFMP Vendor Number: F

50 Key Insight Greatest Challenge is not executing, its getting started (Cont) ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Helped frame up what the goal was: + Positioned LE as ahead of the curve + Knock off objections one by one Formula For Results + Concept as a pilot + Case stated as cost per MQL vs. Total cost Here s how we got there (support and funding): + Coalition of the willing + Sold the concept as a pilot + Stayed out of the weed in terms of the how + Wrangled with IT/Security issues BusinessOnline - MFMP Vendor Number: F

51 + Solution Idea Core Theme & Messaging

52 Results Engineered Business Outcomes ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 4 - Months in Market: LEADS Formula For Results 500+ MQL 200+ SAL >15+ SQL (QUOTES) 5+ PIPELINE $ Millions net new opportunities EXCEED EVERY GOAL >100% BusinessOnline - MFMP Vendor Number: F

53 Steps to Campaign Formation Define, Identify and Create ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// 1.Define Market Opportunity 2.Identify Targeted Personas 3.Create Relevant Messaging Strategy Formula For Results = Opportunity decision Key Pain Points + Misperceptions +Broken labor pipeline +Skilled welders shortage +Robotic solutions: +Complex +Costly +For large manufacturing Two personas have influence on buying President and/or Plant Manager + Grow revenue, reduce costs Project Engineer and/or Engineer + Address broken labor pipeline for skilled welders + Goal: Provide Myth-Busting & Education +De-bunk myths to become more relevant to manufacturers of different types, sizes myth truth BusinessOnline - MFMP Vendor Number: F

54 + Solution Creative

55

56 Online HUB

57 + Solution Activation

58 Targeted Prospect by Role & Company Simplified Example Customer Buying Journey Execution Explore = Create Demand Evaluate = Capture Demand Purchase = Nurture to Close Targeted Display Ad Hyper Relevant Onsite & In Network Display LI Auto fill Lead Capture Form (to Nurture) Nurture + Retargeting (Lead Accelerator) Targeted Landing Page Paid Search = Capture Demand Created (LIinkedIN+ Google) Targeted Campaign Microsite Relevant Retargeted Ad to Nurture (Lead Accelerator + Google) Sales Rep 58

59 Key Insight Lessons Learned ///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// Craig: Lessons we learned + Set expectations correctly + Leads aren t coming via firehose Formula For Results + It takes time + Sales cycle length + It takes adjustment + Defining what a lead is + Framing what good looks like + Understanding roles BusinessOnline - MFMP Vendor Number: F

60 John Lincoln WELDING Thomas Edison ELECTRICITY Henry Ford MODEL T Invent

61 Practical Data & Digital Marketing

62

63 + Appendix x

64 Digital marketing moves us from onesize-fits-all to customized approaches and from passive to proactive customer engagement. -Craig Coffey, Lincoln Electric

65 Digital marketing is an ecosystem that hooks back to the real world. -Kathy Button Bell, Emerson

66 People don't fully understand digital marketing -- they think you're talking about your website. Education is the key enabler to catalyzing change. -Marcelo Prado, GE

67 Digital marketing -- has allowed us to continually iterate our marketing and metrics and invest in the platforms and marketing approaches that are delivering the best results. -Kevin Espinosa, Caterpillar

68 Tracking is huge -- it gives us an unbiased view of our customers behavior so that we can meet them at their point of need. Another lesson we've learned is that social media is a bigger force than most B2B companies realize. -Heather Thompson, Siemens

69 One of the -- things we've learned is 'what makes sense to use doesn't always make sense to the customer'. Our biggest opportunity? Data. Without that -- we re just making guesses. We can really understand what our customer is doing; where they are at in the buying cycle. -Jennifer Altimore, Kennametal