2012 Resolutions for the B2B Marketer

Well here we are.  2011 is history, and we embark on another year.  At the end of 2011, I resisted the temptation to become a prognosticator, figuring that I didn’t want to deal with the ramifications of my predictions potentially not coming true.  Instead, I have chosen to produce a list of resolutions for this New Year.  These resolutions are not mine alone.  They stem from discussions I’ve had with marketers over the past year.  Although there are five, I’m hoping that each B2B marketer should resolve to focus on at least one for 2012.

Resolution #1:  Don’t be Self-Centered

I receive 3-5 calls or emails per week asking if I have 30-minutes to view a demo or learn how a product can make my business better.  In most of these cases, I’ve never spoken with the sales rep.  Usually, I don’t have a need for their product or service.  If this is still the marketing and sales approach for your organization, you should resolve to stop it in 2012.

The truth is, your buyers do not care about your product and service nearly as much as you want them to or think they should.  What they want to know is:

• Do you understand the day-to-day issues they are facing?
• Do you have information that can better educate them?
• Do you understand them, their needs and their current situation?

When you begin the conversation, “can I show you a demo,” you’re showing that it’s about you, not them.  In 2012, instead of accosting your buyers with product literature and “sales pitches”, commit to understanding them so you can develop a content plan that engages them.  Ensure your content is more about them and less about you. You’ll be pleasantly surprised at the difference it will make.

Resolution #2: Drive and Embrace Change

Perhaps no word or concept strikes more fear and angst into an organization than the word “change”.  The fact is, change is not easy and it’s rarely met with open arms.  I have had many CMOs and senior marketing/sales people tell me “we know it’s broken but changing it would be too hard.”  They’re right.  Change is hard.  But, in order to succeed and drive the revenue that is expected from marketing by the CEO, it must occur.

There is no doubt that the B2B buyer has changed dramatically. Without adapting (or changing) to the new buyer, growth will not occur.  So, in essence, change is not an option.  It’s essential.  The branding and communications focus of yester-year is no longer applicable in today’s B2B buying process.  Instead, the buyer of today expects an introduction, dialogue and eventual engagement. If marketing and sales teams are going to succeed in our new world of B2B marketing, change must happen.  So drive and embrace that change!

Resolution #3:  Be a Realist

I recently went through the process of building a house.  During construction, we lived in a rental about two miles away which gave us the opportunity to drive by and watch the work on our new home progress.  Early on (to this novice eye) it seemed that little to no progress was being made.  For weeks we would drive by and simply see a hole in the ground.  What was being done? Why was there no foundation being poured? Why wasn’t the framing complete?  The simple answer was that building a house takes time.  The builder was taking the time to lay the right piping, to ensure the sides and bottom where the foundation was to be poured was level, and to confirm that each stage of the build process was properly inspected for quality.

B2B marketers should adopt this same philosophy – the change mentioned above takes time. It won’t be completed in a matter of weeks.  While the temptation of marketers is to commit to quick timelines and to expect complete transformation in a short time, the reality is that it’s just not feasible.

Recently, a marketer told me of some of their plans for the New Year:

• Develop buyer personas for their top five buyers and chart the buying journey for each
• Develop and implement a demand generation strategy including content marketing and development
• Implement and launch a marketing automation system and integrate it with their CRM system
• Develop and implement a lead management process to ensure more value from their automation investment.  They were committed to doing this in a unified approach with sales.
• As part of their demand generation strategy, develop a nurture program for prospects and customers

After listing these items the marketer asked, “how do we develop the project plan for this that covers the next two years?”  In essence, she got it.  She understood that this was not a 45-day quick hit, that automation is not plug and play and that the change involved would take time.  No matter what any consultant or automation vendor will tell you, these are not short term initiatives.  As you look to transform your organization in 2012, be realistic with your time frame.  If you run across a vendor who tells you otherwise, ignore them.  They are probably just looking to make a quick sale.

Resolution #4:  Work at It

Living in Colorado, I must admit that I have been fully swept up in Tim Tebow mania.  I am a Denver Broncos bandwagoner and refuse to miss a game.  One of the things that I so admire about Tebow is that he consistently shows through both words and actions his commitment to improve.  His detractors discuss his poor mechanics, his low quarterback rating, how he needs to improve, etc.  When pressed on these comments, Tebow’s response is always the same, “I am going to keep working hard to be the best NFL quarterback I can be.”

Imagine how organizations could flourish if the same resolve was in every B2B marketing and sales professional.  Numerous studies have shown that there is a large skills disparity that exists in today’s B2B marketing and sales professional.  The good news is that there are several resources that will bring about the professional development needed to overcome the gap. There are conferences by SiriusDecisions, MarketingProfs, DemandCon and OMS.  You can read blogs like the FunnelHolic, Propelling Brands, Marketing Interactions, etc.  In addition, training and certification are available through organizations such as  The Marketing Automation Institute . So make 2012 an educational year where you learn the new skills that are needed to succeed.  Don’t let another year pass without developing professionally.

Resolution #5:  Have Fun!

I know I have said this before but I think it bears repeating: There has been no better time to be a B2B marketer. I meet more marketers who are deflated with their current roles. And while, for some, that may very well signal a need to change jobs, for most it’s just the result of not seeing what a great place they’re in.  The relevance that marketing has taken in organizations, and the need for marketing excellence to propel revenue has provided a huge opportunity never seen before.  Knowing that your work is making a difference is fun. So go for it and enjoy the ride!

2012 can be the year that marketers do what is necessary to up their game.  The opportunity is before you. Resolve to make it happen.

Posted in Demand Generation, Lead Management Process, Sales and Marketing Alignment | Comments Off

Five New Year’s Resolutions for the CMO

I had lunch recently with a VP of Marketing. He was telling me about his organization, the relationship between sales and marketing, and what he knew needed to change to make his company more effective.  I listened to him, thinking that he was hitting on many of the points I would have made if I were in his shoes.  When he concluded his assessment, I asked, “What does your CMO (his boss) think of all of this?”  His body language said it all – a roll of the eyes and a sigh. Then he said, “He’s a good guy overall, but is not the ‘leader’ type. I sometimes feel like I’m pushing the rock uphill… alone.”

Unfortunately, this sentiment isn’t limited to this isolated lunch conversation, but one that highlights the lack of effectiveness in many CMO offices today.  This CMO effectiveness void is being felt in many organizations and could not come at a worse time for marketers, or even businesses in general.  The need for CMOs to step-up has never been greater than right now.

As we roll into 2012, here are five resolutions that CMOs should adopt to be more effective.

1.  Learn the Language of Your Peers           

I had a discussion not long ago with one CMO about the goals and objectives of his organization.  When I suggested that he begin focusing on contribution to revenue and pipeline his resistance was clear when he stated, “I’m not committing my group to revenue. That kind of visibility scares me to death.”

This is a perfect example of a CMO who has failed to be effective in his role, perpetuating the feeling that marketing is not truly valued within the organization.  Why?  Because the CEO, the CFO and the CRO are all focused on revenue… THE KEY METRIC.

CMOs must commit to speaking the language of their peers, the language of revenue. They must hold their teams accountable for revenue metrics.  If marketing is to be respected and more effective, this language and measurement is a must.

2.  Be Socially Engaged

If the prediction from Gartner is true, then in less than eight years 85% of the B2B buying process will be done with no human interaction.  There is no clearer indication that the buyer has changed and that the open access to online and social information is where buyers will spend the majority of their buying cycle.

As buyers are spending the majority of their time engaging socially, it is imperative that CMOs begin to engage within this medium as well.  The content delivered over social media will be the difference between a buyer choosing one vendor over another. Why?  Because this is where engagement happens.  This is where meaningful dialogue occurs. This where a vendor can exchange ideas and help shape the conversation. CMOs who shy away from using social media as a key channel in their demand generation strategy will soon come to find themselves far behind their competition who have embraced it.  To effectively engage, CMOs must go to where the buyer is… online.

3. Connect With Sales

“Sales does not respect us.”
“We have a love/hate relationship with sales – they love to hate us.”
“I cannot get sales to pay any attention to me.”

These are quotes I’ve heard at one time or another describing the relationship of marketing and sales.  In most of these cases it’s due to the fact that sales does not get the necessary support it needs from marketing to help them hit their number.  As one sales person once told me, “Maybe if I knew how the opens and clicks were helping us generate high quality leads, I would care. But nobody seems to know how marketing is helping us.”

In order for CMOs to be effective, they must connect with their sales counterpart and begin driving towards a common goal.  Without the connection to sales, marketing’s role will be severely diminished.

If you’re a CMO wondering how to start that dialogue, let me suggest the following statement to get you going:

“I know that in the past marketing has not lived up to the expectations, nor worked with sales in a collaborative fashion.  Heading into this year it is time to change all that. We want to work with you to help drive new business and attain quota.  When can we begin meeting about this and develop the right processes needed to ensure we meet these goals together?”

4. Know Your Customer

Often when I am presenting, I will ask the marketers in the room how many of them make a habit of connecting with their customers by phone or in person.  This is more than just accompanying sales on a sales call, but truly being with and understanding their customers.  The few number of hands that go up continues to astonish me.

Today’s buyer is looking for a vendor who understands them, one who can discuss their issues without always talking about product features and functions. They want a partner who is knowledgeable about their space.  As a marketer, this means creating conversations, both online and face-to-face, where you ask, listen, then respond based on what THEY need, not what YOU want. If you want to truly connect with your customer (and ultimately develop the content that is relevant to them), make sure you know them intimately. Anything less is simple small talk.

5. Be a Leader

In all the years I worked in the technology space, I only met one CMO who I felt was a true leader who made a difference.  Today, more often than not, I see too many CMOs who refuse to or are afraid to lead. But the role of marketing is too vital in the B2B space today for CMOs to relinquish this responsibility.  CMOs must step up and begin to lead their organizations.

One aspect that this leadership will certainly include will be leading change.  For marketing to be effective in the new world of Buyer 2.0, it will take a new way of thinking, engaging, measuring and acting.  This will require patience and steadiness (this change does not happen overnight). It requires defined processes (no technology purchase will bring this about). It requires equipping the right people with the right skills.  It requires removing those who are stuck in their old ways and replacing them with those who will embrace a new culture.  It requires a leader who will have the courage to make the decisions that will bring all of this about.

CMOs, the time is now.  Don’t be the one who will be sitting here a year from now, wishing you had been more effective.  Here’s to hoping that 2012 will be remembered as the “Year of the CMO”.

Posted in Demand Generation, Sales and Marketing Alignment | Comments Off

Ten Ways the C-Level can Positively Impact Marketing and Sales (Part Two of Two)

This is part two of our 2-part series on how the C-Suite can help affect marketing and sales for the better. (click here for part one)

A recent report published by MarketingSherpa asked B2B marketers what was the top barrier for overcoming their marketing challenges.  17% cited difficulty in getting buy-in or support from the C-Suite.  Quite frankly I am surprised that the percentage is not higher.

Part of the reason that executives are so hesitant to buy into marketing is that they’ve not been provided a solid business case for making the necessary investments into marketing that will improve their business.  Yet marketing and sales need budget so they can adapt to the changing buyer, move them faster through the buying cycle, and ultimately drive revenue.  It’s imperative that marketing gains executive support.

We’ve blogged before on what marketers can do to remove the barriers and win over “mahogany row”.  In this post, we provide the final five things the C-Suite can do to enable their marketing and sales teams so they can improve their return on marketing and sales investments.

6.  Don’t Stay Married if It’s Not Working

Hear me out here. I am not advocating divorce.  However, what I am talking about is the dynamic where executives get so married to their plans, that they fail to change course if the plans are not working.

To change direction doesn’t always signal failure or indicate a poor strategy.  To the contrary, it can often signal maturity and understanding of the ultimate objectives.  If something’s not working, or if your marketing strategy is not going to plan, then make the necessary adjustments. Gather your team, collect their input (they usually have a more realistic and better view than you do) and adjust the course.

7.  Stop Talking About Alignment

If you conduct a Google search on the term “Sales & Marketing Alignment”, you generate 11,700,000 links to view.  This seems to be only a fraction of all that has been written on this topic.  Just today I saw three more articles that detailed the keys to marketing and sales alignment.

Executives would do well to stop trying to solve this “problem”.  Actually, it’s not a problem; it’s a symptom of a deeper problem.  Here’s what needs to happen to achieve alignment:

• Bring marketing and sales together to develop a lead management process that addresses how leads will be managed.
• Use common objectives and measurements between marketing and sales. (Revenue contribution goals are a good place to start.)
• Design sales quotas to match average buying cycles.  As an example, it’s unfair for a sales person to have to meet a 90-day quota when the sales cycle is 180 days.

Begin working on these three areas and you will see the alignment issue disappear.

8.  Ensure You Have the Right People

One of the greatest ironies about NBC’s The Office was that Michael Scott, played by Steve Carrel, was an awful sales manager but a very good sales rep.   Carrel’s role served to highlight what many organizations do: they take someone who has had success in one role and promote them to another role for which they are not suited.  This is a poor HR practice.  Have the courage to determine if you have the wrong people with the wrong skill set in your marketing and sales roles. If you do, it’s time for some fresh talent.  Capable job seekers abound in today’s economy. If you are going to stock up on new talent, now is the time to do it.

9.  Know Thy Customer

On a recent episode of CBS’s Undercover Boss, a cruise line CEO posed as an entertainment crew staff member on one of his ships.  He was assigned to oversee the ice skating rink that had been installed on board the ship.  After hours of back breaking work just to get the rink set up, no one came.   He asked, “Why do we have this if no one wants to skate?”  Perhaps if they had done a better job of getting to know their customer, they would have known the answer.

This episode illustrates the fact that most executives don’t truly understand their customers.  Why?  Because their customer interaction is often limited to the top 5% of their customer base.  Such a small percentage does not provide an accurate representation of the buyer.  Yet, if you take the time to get to know your customer inside and out, you’ll be able to create better product, deliver better service and improve customer retention.  It will help you avoid mistakes like installing an ice skating rink on a cruise ship.

10.  Lighten Up

Life is short. Work can be stressful and difficult.  Good leaders make work fun for their employees. They keep things light.  Yes, most of us are passionate about our companies, and the services we provide.  But for most of us, we’re not selling things that are life changing. We need to remember that.

In one company I worked for, we were pressing to meet a product launch date.  Tensions were high among marketing, sales and product management (all of whom sat in close proximity to each other).  Sensing the stress cloud, the president of our division walked down a row of cubicles and announced, “$50 to the one who can do a wall sit longer than I can.”  The stress bubble was burst as a line of people doing wall sits emerged.   We took 10 minutes to unwind, watched a product manager win $50, and had a few laughs.  Our president was smart. He knew that tension did not create productivity.  Stress relief did.

We may have covered some non-marketing areas in these two posts.  But if marketing and sales are going to improve and adjust in this new buyer driven B2B world, it is vital that the C-Suite lead and enable change.  Without it, you’ll end up with an environment that limits what can be done, and fails to reach objectives.

Posted in Industry News, Lead Management Process, Sales and Marketing Alignment | Comments Off

Ten Ways the C-Level can Positively Impact Marketing and Sales (Part One of Two)

A recent report published by MarketingSherpa asked B2B marketers what the top barrier was for overcoming their marketing challenges.  17% cited difficulty in getting buy-in or support from the C-Suite.  Quite frankly I am surprised that the percentage is not higher.

Part of the reason that executives are so hesitant to buy into marketing is that they’ve not been provided a solid business case for making the necessary marketing investments that will improve their business.  Yet budget is what is going to enable marketing and sales to adapt to the changing buyer, move them faster through the buying cycle, and ultimately drive revenue.  It’s imperative that marketing gains executive support.

We’ve blogged before on what marketers can do to remove the barriers and win over “mahogany row”.  In this post, the first part of a 2-part series, we’ll take a look at what the C-Suite can do to enable their marketing and sales teams so they can improve the return on marketing and sales investments.

1.  Understand that Change Must Occur   

Earlier in my career,  I was asked to begin developing a lead management process for my employer, a $1 billion software company.  This was a new role within the organization.  Two weeks into our new endeavor I got a call from my VP asking, “What on earth are you doing?”  His question was based on concerns that his sales counterparts had brought to him, namely that my team was asking questions about how sales managed leads, and that we had extracted data from the CRM system.  I responded by saying that if we were going to develop a new process we had to first learn what was broken. Then we could make changes to fix it. And there it was, that dreaded word – CHANGE!  Like many executives, my boss’s comeback was shortsighted. He informed me that while we needed process, we could not interfere with sales. Change was not in the cards.

Too many executives envision how things can be, but they fail to approve the changes that are necessary in order to enable their marketing and sales teams.  Steve Jobs was said to have no respect for the status quo.  Executives should take a lesson.

2.  Embrace the Change

Understanding the need for change and embracing it are two completely different concepts.  In my example above, my former boss understood change was needed.  But he never embraced it.  Why does this happen?  Because change requires effort, uncertainty, and instability.  But it’s also the catalyst for moving forward.  Embracing change means enablement, support and clearing the hurdles necessary for their teams to succeed. Many executives are uncertain about the changes going on in B2B Marketing today.  But if they will live with some uncertainty, and allow their teams to change, they will see enormous benefit.

3. Keep Things Simple!

Years ago, I sat in a sales management meeting with two regional VP’s and the President of our division.  Each VP was there to report his mid-quarter sales projections.  The first VP came loaded with all kinds of data.  Half-way through what should have been a 15-minute presentation (at this point we were way beyond 15 minutes), our President stopped him, and said, “Please get to the point. Keep it simple. Where are we with sales?”

The second VP got up and in one slide showed the number of deals and revenue in the pipeline, number of closed deals and revenue to date, revenue quarter over quarter and his projected forecast.  It was clear and simple (perhaps he learned a lesson from his colleague).  After less than 5-minutes of follow up questions, we had a clear understanding of what they had already accomplished and what was to come.

Too many organizations are bogged down in trying to do too much, trying to measure too many things, or trying to be all things to all people.  Complexity often leads to ineffectiveness. So, keep it simple.  As best you can reduce your strategic plan to one page.  Make sure you can articulate your corporate value statement in less than 15-seconds.  Measure what matters.  And extend this rule of simplicity to your marketing teams. Following the rule of simplicity will clear the clutter and help your organization focus on what counts.

4.  Allow a Little Room for Error

Ever watch a sports team play as if they were afraid to fail? (Insert 2011 Boston Red Sox and Atlanta Braves here). Yet inevitably, that’s what happens. They fail.  Conversely, championship teams play as if there’s nothing to fear. It keeps them loose, and allows them to focus on what they are doing, instead of what may happen if they make a mistake.

It’s not much different in business.  Executives who run their businesses with a fear of failure will ultimately fail.  Fear is not a motivator. It stifles creativity, innovation and limits success.  Instead, executives should allow their teams room to move and yes, even fail.  I am not suggesting allowing a renegade culture in your organization, but I am advocating room for a little risk.  Successful marketing is a series of tests, failures, lessons learned, then successes.  Make sure you create an environment that allows for failure.

5.  Listen and Respond

Herb Kelleher, Founder and former CEO of Southwest Airlines tells a story where he paid a visit to one of the baggage handling areas and how he noticed that some of the workers  seemed short on morale.  He asked them what was wrong, and they told him that they had asked their supervisor for a rope, but their request was denied.  They wanted the rope to pull carts back and forth in a more efficient manner.  Without hesitation, Kelleher ensured a rope was delivered and had the supervisor reprimanded.

This anecdote makes me wonder how many executives are depleting their employees’ morale over items as simple as a rope.  If you truly want to lead, then ask, listen and (when possible) enable your team so they can solve the problem.

We’re halfway there and there’s already much to discuss.  We welcome your feedback and comments.  Look for the second half of the blog post in a couple of weeks.

Posted in Sales and Marketing Alignment | 2 Comments

The Results Are In…And They’re Not Pretty

Over the last week Demand Gen Report & Televerde published reports which reviewed the performance of B2B marketing and sales teams.  The results are far from attractive and show that many companies are still lagging far behind.   A few highlights from the two studies include:

• 40% of the respondents did not know their conversion metrics or indicated that their metrics were not applicable or calculable
• 61% of the respondents recognize lead leakage as a problem within their organizations
• 89% recognize contact data challenges in their organization, with 43% indicating that their data is not cleansed, updated or enriched

While these reports were published separately, there were some common themes in both studies that explained the Why, the Who and the What behind the numbers:

Why?

• The changing and evolving B2B buyer has been the main catalyst to expose the knowledge and skills gap that exists in organizations as they struggle to shift and adapt.
• In spite of adopting and implementing technology (Marketing Automation, CRM, etc,) to support connecting with the buyer, neither marketing or sales is getting it right.

Who?

• Both reports indicate that while there is indeed a skills gap within marketing organizations, the same exists in sales as well.

What?

So what is the impact that this gap is having on organizations?  The impact is lost revenue:

• Approximately two-thirds of the respondents indicated that lead leakage (i.e., lost leads that are neither acted upon nor followed up on) exists within their organizations with a combined 6% quantifying an annual estimated revenue loss at between $500,000 and $5 million-plus.
• According to IDC – B2B companies’ inability to align sales and marketing teams around the right processes and technologies has cost them upwards of 10% or more of revenue per year, or as an example, $100 million for a billion-dollar company.

While these totals are staggering, they are not necessarily surprising.  Technology alone has never been able to drive change within organizations.   To truly get the most from these technologies it takes the right process (see the IDC quote above) and the right people.

To develop the process and people needed for generating more revenue, here are a few myths you should bust:

1.  All I Need is Lead Scoring & Nurturing to Improve Engagement with my Buyer

While scoring and nurturing are certainly important components to your overall process, they are not enough.  To truly develop a closed-loop process you must develop a full Process Framework that includes:

• Data
• Lead Planning
• Lead Routing
• Lead Nurturing
• Lead Qualification (this includes the scoring)
• Content Blueprint
• Metrics

Without these individual processes working together, you will not have the necessary foundation in place to achieve a greater return on your marketing and sales investments.

2.  My People Will Be Just Fine

While you may have smart and capable people in marketing and sales roles, they still require continuing education and cannot be expected to learn new skills on their own.  According to SiriusDecisions, the average company spends less than $1,000 per year on training their marketing personnel.  The numbers are not much higher for sales training.  Organizations have a responsibility to properly equip and enable their revenue engine by enabling their people.  There are many places where this education and skills development can be achieved. One that we recently joined is The Marketing Automation Institute which was founded specifically to address this gap.

3.  Take An Honest Look

We once had a meeting with a VP of marketing to discuss their lead management issue.  Quite defiantly, he folded his arms and stated, “We don’t have that problem here.”  After some number crunching on the white board, we showed him that his organization was leaving $22 million on the table because of their lack of process.  They are now one of our best clients.

Reviewing numbers that indicate a loss is not a fun exercise, but it’s a necessity.  You can’t begin to fix something if you do not know where or how badly it is broken.  Begin to assess the damage in your organization, analyze the impact it’s having on buyer engagement & revenue, and begin to fix it.

4.  We Can Address This Quickly

The issues that exist in organizations did not occur overnight. Unfortunately neither will the fixes.  Too many organizations want a quick fix, and some are being told they can get one. The reality is, changing and developing processes and people takes time.   Throughout this process, be realistic and set achievable milestones so you can measure your progress.  Patience is a must!

5.  We Can Do This By Ourselves

As highlighted above, the issues of revenue, skills and process are not just marketing’s problems.  They are just as much a sales issue.  The good news in that is that the teams can work together to address the problem.  You want alignment?  Work together to begin the development and implementation of process.  If necessary, bring in outside help.  The consultative, objective “third party” can create efficiency in the change management process.

The current state of B2B marketing and sales is one of underachievement.  However, the solutions to the problems are there for the taking.  Organizations that want to improve their revenues and gain market share will be the ones that move forward and begin addressing these needs.  Those who don’t will continue to struggle.

Posted in Industry News, Lead Management Process, Marketing Automation, Sales and Marketing Alignment | 2 Comments

The Characteristics of Revenue Generating Companies

In the last year the aspect of revenue, as it relates to marketing departments, has taken center stage.  Both Eloqua and Marketo are at the forefront of the Marketing Automation space discussing Revenue Performance Management.  These two companies along with others have appointed Chief Revenue Officers and some have resorted to creating a new type of marketer dubbed “The Revenue Marketer.”

Over the past few weeks I have had several opportunities to discuss this phenomenon with my friend and respected colleague Craig Rosenberg, a.k.a The Funnelholic.  During the conversations we have tried to answer questions like:

- Does revenue really emanate from marketing?

- Is the CRO really a legitimate role in organizations or is this really a COO with a different title? Or as David Brock has said: “Isn’t this the CEO’s job?”

- Hasn’t sales always been about revenue and is this new obsession with it just marketing’s awakening to the fact that they should also be focused on measuring themselves by the revenue yard stick?

The very fact that this is what we discuss when we are together or on the phone, makes us in our own right “marketing nerds” and while we do not have all the answers to these questions, we do know and agree on one thing – corporations exist to generate revenue.  While this is the foundation upon which all for-profit organizations are founded, we do not believe that all organizations are necessarily “Revenue Focused Organizations” (there is another acronym for the B2B space “RFO” – don’t try it we already have it trademarked).  So to better define what these organizations looks like, here are Craig’s and  my characteristics of RFO’s

1.  The Customer is the Focal Point

Hidalgo: For all of the work that has been done on getting marketing and sales aligned, it’s a wonder that the issue still exists. As a matter of fact, we would submit that the gap between the two is more apparent than ever.  However, revenue focused companies understand one thing: alignment is not just about marketing and sales. It’s about the entire organization uniting (forget aligning) to deliver true customer value at every buying stage.  This includes marketing, sales, customer support, product development, IT etc.  All of these organizations have their place in customer engagement which turns into revenue.

Rosenberg: This sounds so obvious but it isn’t.  The fact is we SHOULDN’T have to write about this, but we do because we need it.  In the last 3 years, we have learned a ton about the buyer and frankly exposed serious flaws with how we are running our businesses.    Again, from David Brock, start with the customer and work backwards against all areas of the organization. There is a great case study with Motorola where the customer became the organization’s purpose statement.  To get there, they understood everything about the customer and brought that understanding to EVERYONE.  Not just marketing, but everyone.

2.  Marketing Enables

Hidalgo: There is no doubt that the role of the B2B marketer has changed dramatically over the past several years.  As a result, many have sought to put marketing front and center in revenue creation. That’s not where they should be as this in effect supplants the role of sales.  Revenue Focused Organizations understand that rather than generating, marketing enables revenue.  While we may be splitting hairs here there truly is a difference.

How does marketing enable?

• They generate and deliver engaging and relevant content to the buyer
• They deliver content to sales that they can use to help propel deals through the pipeline
• They focus on delivering highly qualified leads to sales (based on a common definition and lead qualification process), thus increasing sales effectiveness
• They measure their impact and make adjustments where necessary
• They are marketing, engaging and nurturing at every stage of the buying process or sales funnel

When marketing supports the creation of revenue, it is an internal state of Nirvana

3.  They Know Where They Play

Hidalgo: Companies that are Revenue Focused Organizations know what segment of the market in which they play and do not pretend to be something they are not.

Rosenberg: Every single employee/team member in the Revenue Focused Organization can tell you who their customer is.

Hidalgo: In Sales: They are not afraid to walk away from a deal if they know they are not a fit.  Why?  Because trying to put the proverbial square peg in a round hole deviates from producing revenue. If you win the “wrong” deal will, in most cases, be a losing proposition.

Rosenberg: In Marketing: They focus on building their programs against their target. In Product Marketing: They don’t chase either. They are maniacally focused on building product to support the needs of their target.

Knowing where you play and staying true to your product or service delivery goes hand-in-hand with understanding your customer.

4.  They Are Maniacal About Measurement

Hidalgo: Companies who are revenue focused measure and measure the right things.  There is such a thing as going overboard on measurement.  Here is a good rule of thumb – if no one is going to use the data from your organizational metrics to help shape the future direction of your company, don’t measure it.

Rosenberg: Companies that are Revenue Focused Organizations measure what counts and pull the intelligence from those measurements to help define what’s next, what changes need to be made and what should continue.  It’s actually harder for the disjointed, unfocused organization to do this.  The lack of the singular goal of revenue prevents organization from creating truly transparent measurement and reporting.  Everyone’s silo is doing their own thing and looking to cover their butts.  The Revenue Focused Organization works backwards from revenue and creates the metrics that get them there.  If you’re not doing it already, now is a good time to start.

 

Posted in Lead Planning, Marketing Automation, Metrics, Sales and Marketing Alignment | Comments Off

Alignment – It’s More Than Marketing and Sales

I recently had the opportunity to participate in a roundtable discussion hosted by Focus called “Building the Ultimate Revenue Machine”.  My fellow panelist on the roundtable was David Brock, President of Partners in Excellence. David is one of the top thought leaders in Sales 2.0 strategies.

During the roundtable, the discussion inevitably led to how marketing and sales alignment could be achieved.  During this part of the conversation, David stated, “In order to achieve buyer centricity, you must have the entire organization aligned.”  A true statement indeed. As the B2B buyer continues to morph and drive change, it’s imperative that marketing understand that alignment must happen, not just with sales, but other groups within the organization.

Below is a list of some of those groups, and ideas on why aligning with them will improve buyer engagement.

1.  Customer Support

The Customer Support group (or “Help Desk”, “Customer Care”, etc.) has a unique view into the life of your customers. However, that view is often overlooked. Marketers often ask me questions such as, “How can we find out our customers’ challenges, and how they view our product or service?”  Certainly, going directly to the customer base, and asking them is a logical step.  In addition, the support team is a great source for to gleaning this kind of information.

Let’s face it, Customer Support is often a “dumping ground” for the negative side of customer relations. As such, the support group has a better view than any other group of what’s NOT going right with your customers. Adding this insight allows you to see your customers’ product/service challenges, potential skills gaps, other key issues. These can be areas for which content messages can be developed.

It should go without saying that as marketers, it’s important to gain as much insight on your customers as possible, even if that insight is negative. Customer service/support is a clearinghouse for this type of information.  Not using it to your advantage is wasting a valuable resource.

2.  IT

Yes, I know, I know.  We spend so much time trying to box IT out and not allow them to impede progress.  So you may be asking, “Why should I align with them?” The answer is simple:  they can help get things done. Aligning with your IT department can pay huge dividends.  And often, this just means inviting them to the conversation, and asking for their input.   Over the years, I’ve experienced IT staff that believe it’s their divinely endowed mission to stonewall anything that had the mere scent of progress.  Conversely, I’ve also had the pleasure of working with IT staff who understood that their role was ultimately to support engagement with the buyer.  In both cases, success in securing IT’s support for integrating platforms, communicating with the audience, enhancing sales interaction, and securing business intelligence came from inviting them to the table and listening.

3.  Product Development & Product Management

I used to run the global mid-market group for an enterprise software company.  Our company made the decision to develop a “small business” version of our software.  With millions of SMB’s fitting our target market profile, it was very enticing and seemed logical. So, we went for it.  After two years, and hundreds of thousands of dollars being spent on development, marketing, sales, the product life cycle was over.  We only had a handful of customers.

Why the crash and burn?  Because marketing-sales was not aligned with product management/development.  Marketing-sales saw what was thought to be an opportunity. Product management/development thought otherwise.  Together, both groups failed to do what was necessary: seek to understand the market.  Instead, we rushed product development, and then sped to market with a product nobody wanted.  We were not aligned. Looking back, what seemed like a great idea probably should never have made it off the back of the napkin on which it was first drawn up.

Marketers who choose to align to their product development and management teams will help shape their service and product offerings. This in turn will meet customers’ needs and challenges, leading to revenue.  Those who don’t, as I can well attest, will learn how to run “end-of-life” campaigns.

4.  Finance

Grocery store chains were on to something when they started issuing little key chain store cards to their shoppers.  Not only are they now able to see what we spend, but they can now view our spending patterns. They can slice and dice the data to determine how much we buy, when we buy it, and what purchase decisions correlate to others.  (You think they issued those cards just to give you a discount?) This information is invaluable, allowing them to be very targeted and purposeful with their merchandising strategy.

In the B2B world, often times financial transaction data is not readily available to the marketing group.  So, it’s incumbent on the marketer to see what they can do to obtain this kind of data. Having this information will be extremely helpful in developing targeted dialogue (nurturing) for your customers.  The results will be longer lasting customer relationships.

Alignment throughout the organization is key.  In the end, the purpose for aligning is to better reach and engage your customer, which will yield higher revenues.

 

Posted in Sales and Marketing Alignment | 1 Comment

The New Alliance Between Sales and Marketing – SiriusDecisions 2011 Recap

I spent last week at the Sirius Decision Summit. As usual, it was a tremendously rewarding and informative event. This year marked the largest crowd ever for the six-year annual event. Attendees received more than their money’s worth with a mix of great content, research and end-user case studies.

The theme for this year’s event was “B-to-B Sales and Marketing – Forging a New Alliance”. The content presented by SiriusDecisions and the end-users effectively delivered on this theme.

What follow are five common threads that I picked up throughout the conference.  They underscore just how you forge a new alliance between marketing and sales.

1.  Process

Since founding The Annuitas Group in 2005, we have been speaking about the importance of lead management process, and how it affects alignment and revenue improvement.  Those who presented at the event were also believers in process.  Developing a defined process was one of the keys in transforming organizations like Iron Mountain, F5 Networks and Kronos Inc.  All of these case studies emphasized the importance of marketing and sales working in a unified fashion to develop this process. The evidence was in the presentations themselves:  marketing and sales representatives co-presented.

The key message?  Process is the key to transformation. Without it as a foundation, the ability to transform and align will not be possible

2. The Importance of Service Level Agreements (SLAs)

 

It struck me that as the conversation on SLAs heated up on Focus.com, despite the naysayers, SLAs were seen as a way to knit the process pieces together.

SLAs were a focal point of each organization that presented, cited as a key to bringing marketing and sales together.  The speakers reminded us that service levels are bi-directional and only work if both departments collaborate on the development, measurement, and adherence to theses agreements.

3.   Change Management Takes Time

Many organizations undertake their organizational challenges with an expectation that change and organizational transformation will be immediate.  Not so say those who have gone through it.  Almost every organization that presented stated that it’s indeed a journey (a dynamic process) that does not occur overnight.  This Tweet from Meg Heuer says it all: “Even guest presenters’ success stories from #sds11 remain works-in-progress. Much done + accomplished, w/ much remaining.”

If organizational change is to “stick”, it will take time, perseverance and collaboration between marketing, sales and (most likely) others in the organization.

4.  There is a Fifth P

Most of us in marketing are very clear on the Four P’s in marketing.  At the conference, Marissa Kopec of SiriusDecisions, introduced the fifth P: Productivity.  Sales productivity is every bit as much a part of marketing’s mandate as branding and demand generation.  Making sales more productive (sales enablement) in generating revenue is now a marketing goal. This is done by enabling sales with content, and helping them to deliver it to the right segments at the right time.

5.  People Trump Technology

One of my favorite quotes from the entire conference was from Meg Heurer. She stated, “People are what fix marketing and sales problems, not technology.” Certainly technology was highlighted as an enabler, but the myth that technology is all that you need was strongly dispelled.  The message was clear: Find good partners to work with or train your people so they can handle the changing world of B2B.

The SiriusDecisions Summit continues to set the bar on solid B2B content and presenters.  If you missed it this year, be sure to mark it in your calendar for 2012.

Posted in Industry News, Sales and Marketing Alignment | Comments Off

The B2B Sales Role in the New Buying Process

I recently had the opportunity to attend the Sales 2.0 Conference in San Francisco and I’m glad I did.  The conference was full of great content and information on the state and the future of B2B Sales.  It also allowed me the opportunity to mingle with many great B2B sales people, which is a departure from my norm of usually interacting with B2B Marketers.

One of the key themes that resonated during the conference was the shift in power to the B2B buyer. The B2B buyer is truly driving the buying process taking control out of the hands of sellers.  The phrase “buyers are turning to sales much later in the buying process” was repeated continually as a way to describe this shift of power.  To a large extent this is accurate.  However this does not mean that sales is rendered ineffective in the early stages of the sales cycle as some would have you believe.  In reality the shift in the buyers’ power make sales all the more important at the early stages of the buying cycle – especially in the consideration phase where buyers spend most of their time.

Social media has played a pivotal role in the shift of the B2B buying process.  Like never before, buyers can access information via the web, social sites, Twitter and blogs.  And they can do so without ever interacting with another human being (i.e., the sales person).  Yet, what is often forgotten (and usually neglected) is that sales people have access to these same tools as their buyers.   Sales people should be active participants in the dialogue that is shaping the consideration phase of the buying process.

In his contribution to the recently released Book of Funnels by Focus, Matt West, VP of Marketing for Genius captured this perfectly with his funnel.  Notice at the top of the funnel, sales is just as prevalent as marketing.

 

Why?  Because sales has all of the same access to online and social engagement media.  This enables them to better engage the buyer.

So what does this do to sales?  It brings them earlier in the sales cycle. However, in order for this to happen, they must adapt their approach for this top of the funnel dynamic.  Rather than “selling” at the top of the funnel, sales needs to engage. Therein lies the rub.  The mindset of too many sales people is “I’m paid to close business.”  Yes, this is true. But taking too much of a hard-line approach to that thought  yields short-term gain.  The sales folks who have mastered the new dynamic understand a few fundamental truths in selling:

• Buyers want to buy from someone they trust
• Buyers want to buy from someone they like
• Buyers wants to buy from the person who is an expert and can provide more than just an invoice.

One example of a sales person who engages early is Jill Rowley, Strategic Account Rep for marketing automation vendor Eloqua.  I’ve had the opportunity to get to know Jill over the last two years and still recall my first conversation with her.  Why?  Because she never tried to sell me anything or even try to get us to partner with Eloqua.  She simply said “I always like connecting with others in the market so we can compare notes.”  That’s instant credibility!  That statement screams “I AM NOT HERE TO SELL YOU ANYTHING.”  In addition to this kind of approach, Jill is active as a thought leader on Twitter (1,800 followers with a Klout score of 45 and ranking as a specialist), Focus and other online forums.  Interestingly enough, Jill traditionally is at the top of the company leading the way in sales.  Why?  Because she has positioned herself as a thought leader in her respective market. By shaping the conversation and driving thought, she has moved herself “up the funnel” to an earlier stage in the sales cycle.

I’ve heard many sales people despair at their fate given the shift in power to the B2B Buyer. If you’re a sales person, don’t despair. B2B sales people are more relevant than ever. You’ve been given an opportunity to shape the early stages of the buying process.  Go for it.

 

Posted in Sales and Marketing Alignment | 2 Comments

Marketing Automation Software Guide: Executive Series Interview with Carlos Hidalgo

In this video blog interview with Marketing Automation Software Guide, Carlos Hidalgo discusses how building a strong framework can help uncover some significant ROI. He also talks about Annuitas Group’s recent move to vendor agnosticism, and provides suggestions for evaluating the many marketing automation solutions available.

Watch the Interview Now

Posted in Industry News, Lead Management Process, Marketing Automation, Sales and Marketing Alignment | Comments Off