Effective stages of Demand Generation PART 1: LINK BETWEEN DEMAND GENERATION AND SALES REVENUE WHITEPAPER
Contents Introduction 3 What is demand generation? 4 Demand generation is more than a tactical consideration 5 How to effectively plan your demand generation programmes 6 Summary 10 About StratMarketing 11 2
Introduction There are many whitepapers, blogs and forums that discuss demand generation programmes. Many offer advice about the merits of using one automation system over another or the tactical benefits of this over that to boost response rates. Their initial standpoint is that B2B marketers understand what demand generation is and know how to plan their programmes, but this may not always be the case. This whitepaper has been written for those marketers who may need some planning guidance; to shed some light on the key stages that they need to consider before any tactical activity takes place. The key stages discussed within this whitepaper are: Defining demand generation Why demand generation is more than a tactical consideration How to effectively plan your programmes 3
What is demand generation? It is better to have it and not need it than to need it and not have it. Gerard Patrick Roeling Marketer So let us start by defining what demand generation is. Like anything that requires a definition there are many to choose from, so it makes sense to quote from one of the leading experts in this field. Adam Needles, Vice President of Demand Generation Strategy at Left Brain Marketing, explains it thus:...demand generation is not merely about getting a prospect s attention; rather it is about incubating a prospect with the information (s)he needs to move forward until (s)he is at a stage where that prospect is ready to speak with a sales representative. It is also about helping to convince a prospect before (s)he talks to a sales representative that your product / solution should be on their shortlist, if not top choice...it is a holistic activity that spans the buyer lifecycle. It s not just a single tactic at the top or bottom of the marketing and sales funnel. It s the art of educating buyers and nurturing these relationships from earliest awareness to monetising initial demand; it s also about growing that demand among current customers. It s the whole thing... Reading Adam s definition underlines the importance of getting your demand generation programme right, simply because there is so much at stake. It also stresses that there is much more to this than just lead generation. 4
Demand generation is more than a tactical consideration All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved. Sun Tzu Chinese General Clearly this refers to strategy, but on more than one level. Firstly, there is the direct link between demand generation and sales revenue. When reviewing the revenue line on their trading statements, senior management now think about the contributions that both sales and marketing make, as well as how they work together to meet revenue targets. This is a strategic issue and one which represents a real juxtaposition in the way marketing is regarded internally - not as a cost, but as an investment to the business and a contributor to its revenues. Importantly, this also presents marketing with a much stronger position when negotiating budgets at the end of the year. Secondly, there is the strategy behind the demand generation programme itself. As mentioned earlier, demand generation is not just about the tactics employed to achieve a specific outcome, but a more holistic approach to building and nurturing relationships with prospects through to an initial sale (and beyond). It is important at this stage to put into context the importance of the marketing and sales relationship. All the planning in the world means nothing without trust, understanding and engagement and from the highest level. Rules and definitions need to be agreed to maximise every opportunity to meet and exceed revenue targets. 5
How to effectively plan your demand generation programmes Failure comes only when we forget our ideals and objectives. Jawaharlal Nehru Prime Minister India 1947-64 Objective Setting There needs to be clarity in what you are trying to achieve, in order to plan the right route(s) to get there. Things to consider include: What is a sales opportunity? This needs to be agreed by both sales and marketing from the outset, as failure to do so may impact on their relationship and ultimately, how they deliver against their target revenues. At the first stage of transition, however, there should be an understanding of marketing qualified leads (MQLs) those that marketing believe are ready to be contacted by the sales person. Qualification will be judged by how closely these leads match the ideal prospect profile, the depth of information known and levels of activity during the nurturing process (for example, whitepaper downloads, website visits, webinar registrations etc). The second stage of transition, referred to as sales accepted leads (SALs), occurs once budget, authority, need and timescales (BANT) have been identified and validated. Sales then take ownership of the lead. How many sales opportunities would marketing be expected to deliver (over a defined time period) for sales to meet their conversion targets? This may be an estimate if no historical or buyer-related information exists, or if a new market is to be targeted (at this stage, they are referred to as sales accepted leads SALs). Where data does exist, both marketing and sales should be able to forecast a realistic number of sales opportunities to be delivered. Targeting Prospects The importance of data Your database is your most valuable marketing asset. A clean database allows marketers to maximise every opportunity to connect with customers and should be updated with current and accurate information, such as demographics, buying responsibility, company size, purchase behaviour. Aligned with relevant content, a powerful proposition and timeliness, an accurate, up-to-date database provides marketers with the best tools to engage both new and existing customers. 6
How to effectively plan your demand generation programmes I love an audience. I work better with an audience. I am dead, in fact, without one. Lucille Ball Actress Buyer personas Buyer personas help marketers identify the types of prospects likely to develop into bona fide sales opportunities and are a vital step when planning demand generation programmes. It also acts as a perfect guide when acquiring data; how else will you know who to target? The ideal profile will include such information as: Age Gender Job title Size of business Industry Location Number of employees Annual revenue Key decision makers Information sources used Use existing customer information to help build the ideal prospect profile, as well as data acquired from research, web analytics and the CRM system. There may also be some advantages in creating profiles for the types of customer you do not want to target (this information will be found via internal sources). The process should be an iterative one; with deeper data, it will be possible to populate personas with such information as lifetime values (LTV) and retention costs (presented as averages) to help justify whether or not certain activities are worth undertaking. Understanding the buyer and buyer behaviour Understanding the steps customers take before making a purchase presents marketers and sales people with a window into their world. Interaction with, and questioning of, the buyer will reveal a great deal to inform future engagement with them. This may include: What their need is What they are doing to find a solution How quickly they need a solution The key decision makers involved Their chosen sources of information How they consume this information How they want to be contacted If they have compiled a shortlist Who is on the shortlist 7
How to effectively plan your demand generation programmes Communication, the human connection - is the key to success. Communication Strategy How marketing and sales engage with the customer will, in part, depend on how much is known about them. Marketing can use this information to manage the relationship with the person; for example, how they will be contacted, the type of content they ll be sent and how often this will happen. What you can do to keep the conversation going throughout the buying cycle Paul J. Meyer Founder Personal Development Industry Awareness Webpage/SEO Banner ads Intent Rich media Partner mailings Deciding Webcasts Purchase Sponsored content Print ads Newsletters Events Inserts Response cards Sponsored email Whitepapers Referrals Listing Quotes E-Commerce Direct Target Group Advertising/ promotion Lead generation Customer The above model makes this point really well. As mentioned earlier, the buyer persona helps to identify the type of prospect likely to become a customer. Marketing will now need to consider the media channels and relevant content to engage their ideal buyer. How this is done is really important; buyers tend not to wait until they receive a brochure or see an advertisement before realising they have a specific need. More traditional channels are more likely to hit the mark if they happen to coincide with a buyer s need to search for a solution. On the other hand, information via online channels, such as blogs, search engine marketing, organic search and social media, is available continuously and is eminently searchable. In this way, buyers can engage with your company, products and services whenever they choose to research. 8
How to effectively plan your demand generation programmes Business has two functions - marketing and innovation. Milan Kundera Author Ideally, a combination of both traditional and online channels works well. For example, print and online advertising, exhibitions, newsletters and search marketing are proven tactics for getting noticed at the awareness stage. At the stage of intent, the buyer will be looking to create a shortlist of options. To help them, they may sign up for webinars, download whitepapers or complete response cards. Marketing now has a tremendous opportunity to exchange valuable content for information about the buyer. This newlyacquired data will be used to determine how to manage the relationship and lead the buyer through the various nurturing stages to becoming a sales opportunity. A highly effective process for managing the conversation with the buyer is marketing automation. Messaging via traditional and digital channels can be managed through a series of automated steps, where triggers are employed to identify who should be communicated with, when and what they should receive. Automation removes the guesswork from measuring performance, providing greater clarity into what works and what does not and allowing marketers to amend as they go. 9
Summary Success is a science; if you have the conditions, you get the result. Oscar Wilde Poet and author Before embarking upon your demand generation programmes, think carefully about what you are trying to achieve, how you intend to do so and what success actually looks like. Things to consider include: The quality of the data you are using will have a direct impact on the quality and volume of responses you receive. Poor quality data may also affect how a buyer perceives your company and, therefore, if and how they respond The buyer persona will provide much needed focus when targeting specific buyers and deciding exactly how to engage with them throughout their respective buying cycles Managing the relationship with buyers can be made so much easier with automation How sales and marketing work together needs agreement, especially with regard to what an actual sales opportunity looks like, at what point it should be handed over to sales and forecasting In Part II of the Effective Stages of Demand Generation, we will explore in more detail the importance of the relationship between sales and marketing and how disharmony will impact on potential revenues 10
About StratMarketing Insight into human nature is the key to the communicator s skill. William Bernbach Founder Doyle Dane About StratMarketing StratMarketing Group is a boutique marketing services team with over three decades of experience in: 1. Demand Generation 2. Funnel Management 3. Sales Enablement Our mission is accomplished when Sales and Executive Management fully restore the glory in marketing and show acts of kindness like increasing your budget, trusting your decisions, you get the point... We accomplish our mission by supporting our clients with their respective needs that range from: 1. Go-to-Marketing Strategy 2. Processes that map sales and marketing alignment for lead management 3. Expertise in Analytics and insight-driven marketing 4. Technology - Recommendations, Integration and on-going support of MAPs If you have a challenge for us, feel free to ping us. We might just surprise you. Specialties: Demand Generation, Marketing Automation, Go-to-Market Strategy, Marketing Operations, Marketing Services, Marketing Strategy, Lead Management, Lead Nurture, Database Marketing, Sales-Marketing Alignment, Lead Qualification StratMarketing Headquarters 4320 Winfield Road Suite 200 Warrenville, IL 60555 United States Website http://www.stratmg.com 11