May 20, 2024

Archives for 2011

3 ways to link marketing to revenue without metrics

I’m looking forward to our annual ITSMA spring road trip. This time, I’ll be speaking about how to tie thought leadership to revenue, starting in Santa Clara, CA next Wednesday, and in New York and Newton, MA the following week. Hope you can join us.

Now, you may think that because I’m using revenue and thought leadership together in the same sentence that I’m going to reveal some secret way to measure the link between the white paper you published last month and the complex solution sale you make six months from now. Alas, no such magic metric exists.

We’re focusing on the wrong things
In fact, our most recent thought leadership survey found that few marketers are measuring much besides consumption of their marketing content. I’m not saying that you should stop measuring consumption; but it’s clear that those kinds of metrics don’t give business people the answers they’re looking for when they ask about the value of marketing. They want more strategic answers, such as whether marketing is increasing the velocity of contacts through the buying process and reducing the time and effort that salespeople need to expend in making a sale.

If you have the ability to measure those two things, then great. But if you don’t, there are still ways to make sure that those things are happening. Here are three ways to do it:

  • Connect ideas to offerings. Too much of our content just tries to look and sound smart—great focus on ideas, but no real connection to how our companies can solve the problem. At the other end of the spectrum are the brochures that masquerade as idea marketing by making the offering descriptions longer and the production values higher. One great way to connect ideas to offerings is to create a business theme—think IBM’s Smarter Planet or Cognizant’s Future of Work. Both of these themes give subject matter experts and marketers plenty of leeway to focus on ideas while maintaining a link to the company strategy and its offerings.
  • Use ideas to attract and nurture leads. If you’re a regular reader of this blog, you know that I’m constantly beating the drum of integrating content with an automated lead management process. A lead management process gives you the ability to get the right content to the right people at the time they need it.
  • Train salespeople to use and talk about ideas. Creating good idea-based marketing content is hard and takes a long time if done right. That’s why the urge to start drinking kicks in about the time the white paper finally hits the website. But hold the beverages. Most salespeople don’t know what to do with a 20-page white paper. Marketers tell me that if they can get salespeople to even send the thing to prospects and customers they’re happy. We need to do much more than that. We need to create talking points for salespeople to use when communicating to customers and prospects, and we need to find ways to integrate salespeople into the content development and dissemination processes from the start.

How do you link content to revenue? Please give me your thoughts. Hope to meet you live, in-person soon!

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What the slow death of B2B publishing means for marketers

Marketers always struggle with what to do next. There so many channels out there and so little time. But if you step back and think about where the real opportunity is for B2B marketers, it is idea marketing. Start with a good idea and the channel questions will resolve themselves.

B2B buyers are tired of marketing, but they’re not tired of ideas. In fact, buyers are hungrier than ever for good ideas presented in an objective way that target their specific needs. The people who used to do that, B2B journalists, aren’t doing it so much anymore.

This cartoon making the rounds online captures the frustrations of trade journalists--and reveals the opportunity for B2B marketers.

The business model is broken
It’s not that the journalists have gotten lazy; it’s a problem with the business model for B2B publishing. The business side of these organizations is trying to maintain profitability by slashing staff and by maximizing online traffic to make up for lost print ad revenue (and other desiccated revenue streams like events).

But unlike the old print subscription models, where publishers qualified their audiences by setting minimum requirements for things like role in the organization and buying power (which allowed them to justify high prices for advertising), online traffic is essentially random. Today, publishers must substitute traffic quantity for quality of subscribers to get advertisers to buy. That drives publishers to produce a lot of short content designed to reach the broadest possible audience (at least one online story about Apple per day for a technology pub, for example).

Half your ad dollars wasted? Try all of them.
Meanwhile, B2B buyers still hunger for good, specific content just as they always have. But because advertisers don’t believe in print anymore, the economics aren’t there for publishers to provide it. We keep hearing that quote from John Wanamaker about how half of his print advertising dollars were wasted. Trouble is, with online that figure is closer to 100%. Advertisers have abandoned print display advertising that at least had some degree of targeting for online display ads that have no targeting at all.

It’s a no win for everybody except the ad agencies. Publishers are left with a trickle of revenue and B2B companies discover just how uninterested a generic online audience is in their products and services. Meanwhile, Google, which has become the biggest ad agency of them all, gets rich by presenting hungry content seekers with links to JC Penney.

From the ashes of trade journalism, an opportunity for marketers
However, the tragedy that has become trade journalism is an opportunity for B2B marketers.

Providers have the opportunity to fill the content gap themselves. Too bad more of them aren’t doing it. Though most respondents in our How Customers Choose research said the quality of their providers’ thought leadership was pretty good, nearly 40% said it could be better. The number one suggestion for improvement: Focus more specifically on buyers’ particular business segment and needs (which B2B print publications used to be measured on each year in reader surveys).

This longing for personalization isn’t just heard in the context of thought leadership, however. When asked to name the number one factor in choosing a provider, variations on the “know me” theme came through 42% of the time.

Measure relevance, not output
But most marketing organizations don’t measure relevance; they measure output—whether it’s in leads or downloads. Marketers need to invest their money where B2B publications used to invest it—in constantly researching their target audiences and identifying the trends and ideas that are most relevant to them. Then marketers need to provide that relevant content.

When they do, they win business. In our recent survey, How Customers Choose Solution Providers, 2010: The New Buyer Paradox (free summary available), nearly 60% of respondents said that idea-based content plays an important or critical role in determining which providers make it onto their shortlists. But if providers go farther and use thought leadership to help companies clarify their business needs and suggest solutions, 30% of respondents said they are more likely to choose those providers. Even better, more than 50% of this group said they would consider sole-sourcing the deal. And this potential windfall isn’t limited to new prospects. Existing customers are also looking for new ideas. There’s no reason you can’t explore the epiphany stage with them more than once.

Does that help clarify what to do next?

What do you think?

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Eight attributes of a thought leader

Social media are growing up. The initial thrill of connecting to a bunch of peers that we’ve never met is giving way to the desire to get something useful out of those connections. Interesting research from Edelman shows that there has been a decline in trust in “people like myself” and “regular employees.” Meanwhile, trust in “credentialed experts” and “company technical specialists” is rising—we’re getting so desperate we even want to hear from the CEO.

Clearly, there’s a growing hunger for thought leadership in social media. Our prospects and customers want us to cut through the noise of social media just as they’ve wanted us to cut through the noise of every other communications channel that came before. Thought leaders themselves must be better-rounded than in the past, as comfortable online as on stage or in an interview.

I’ve been interviewing ITSMA members about their thought leadership programs as follow-on to our recent thought leadership survey and asking about what makes a good thought leader. Based on these interviews and on my own experience working with thought leaders, I’ve started a list of key characteristics (please add your own attributes to this list):

What are the personal attributes of a thought leader?

  • Relevant experience. At a minimum, a thought leader must have experience that will sound relevant to your target audience. But they can’t merely seem like a peer; they need to be perceived as an expert. Usually, that means experience that is deeper than the target audience has, or breadth of experience working across multiple companies or industries, or all of the above.
  • Presence. Hard to define, but you know it when you see it. These people aren’t just comfortable in their own skin; they know how to take over a room or an interaction in an un-threatening way. Like most mammals, our first encounters with strangers involve a subtle sorting out of who is dominant and who is submissive. Those with presence can make others willingly go submissive, and therefore make them receptive, without anyone minding.
  • Rapport. This is beyond just good people skills; it is the ability to adjust to other others’ individual pace. Thought leaders (like successful presidents), can meet all sorts of different people at their own level without pandering or patronizing.
  • Curiosity. Thought leaders are endlessly curious, not just intellectually but also about people. Their rapport with customers extends to a genuine, ego-free interest in the problems those customers face. Good ideas aren’t enough; those ideas need to be informed by a wide-ranging exposure to other inputs and opinions.
  • Synthesis. Thought leaders see the threads of insight lurking within a complex stream of information and use them to create a new idea or a new way of looking at an old problem.
  • Storytelling. One of the most important attributes of a thought leader is the ability to weave insights into a cogent narrative that brings ideas to life for others.
  • Courage. Not all new ideas are met with a warm reception. Thought leaders can’t be afraid to question the status quo and defend their ideas from critics. But this courage must be tempered with patience in the face of harsh criticism. Taking the high road in these situations is the highest form of courage.
  • Empathy. Accusations of elitism and being out of touch will follow thought leaders who can’t see things from the perspective of others.
  • Humility. This isn’t just about admitting when they’re wrong, it’s acknowledging that they don’t know everything at each step of the way. The goal isn’t just to be ingratiating. Humility contributes to success by making others feel welcome to contribute their own ideas and feedback.

What other attributes do thought leaders need to have? Which of these attributes are most important? Please give me your thoughts!

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We need a chief marketing analytics officer

There’s lots of talk out there these days about the need for a technology guru within the B2B marketing department. Paul Dunay makes the case for one in this post, and Scott Brinker has been beating the drum for this for some time.

Maybe I’m splitting hairs here, but I wonder about the long-term need for a marketing technologist. In the short term, I think marketing has a lot of catching up to do in terms of technology. Most companies do not yet have closed-loop lead management processes supported by systems, for example.

So we need some important systems installed in the short-term. But once the system of record is installed (and many of them are SaaS), do we really need a CIO for marketing?

We need to connect the analytical dots
I think the larger and more long-term need is for marketing to become data driven. We need to use analytics to quantify and manage how fast we move prospects through the buying process and to increase loyalty and trust after they’ve bought from us.

I’d rather see a chief marketing analytics officer than a chief technologist. Or if this person is going to be a technologist, he or she must have a serious grounding in analytics. B2C companies have these “wonks” today. I think B2B marketing groups need the same emphasis–and that need will never go away once the systems are installed.

What do you think?

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2011: The year of personal brands

This is the year that the personal brand begins to do battle with the corporate brand. I think we need to let the personal brand win—especially in B2B.

Featuring big pictures and bios of your subject matter experts on your website is a good start, but it is the equivalent of paid search. It’s relevant but still a step removed from the truly personal connection. We need the equivalent of organic search, where our people rise to the top on their own, independent of their corporate affiliations. Then as marketers, we create a virtuous cycle that links these personal brands to the corporate brand. But it’s going to mean letting these people roam free outside the corporate firewall.

Pitting the corporate brand against the personal brand
Forrester Research is testing both sides of this argument. Now, awhile back I wrote a post criticizing Forrester’s decision to prevent its analysts from hosting their own personal blogs. I still believe what I said is right, but that’s not the purpose of this post.

The reason I bring up Forrester again is because they are actually so far ahead of the curve on this issue that they are the Sputnik dog of personal and a corporate brand testing. It’s a good problem to have, to be grappling with this issue as Forrester is.

Testing the popularity of content
If you follow social media, you probably know most of the story already. One of Forrester’s former analysts, Jeremiah Owyang, developed a big following on his personal blog “Web Strategy” in part because he hits on all cylinders of blogging: frequent posts, engaging content, and an active audience that contributes interesting and insightful comments. (And it should be mentioned that he started his blog before he came to Forrrester.) Another reason for his popularity, at least more recently, was because he was a Forrester analyst, and that brought instant credibility and gravitas to his words, because Forrester has such a strong brand.

But Owyang didn’t just post on his own blog; he also posted on a Forrester blog that was created around his business line. In other words, you had two avenues of attention and traffic that both complemented and competed with one another, at least from a branding perspective. In the early days, Owyang’s personal blog was driven by his personal brand and enhanced by the Forrester corporate brand. First you found Owyang, and then you found that Forrester was behind him.

Meanwhile, the Forrester corporate blog that he contributed to was driven by the Forrester brand and enhanced by Owyang’s personal brand. First you found Forrester, and then you found Owyang.

What better a, b test of personal vs. corporate branding could you get?

I wish I had the numbers to prove it, but my sense based on my own experience in social media is that Owyang’s personal brand won that battle. It certainly did in my own view. I found him on his own blog before I found him on Forrester’s and the conversation on his personal blog was more interesting and his community more engaged than on the Forrester blog.

What happens when your personal brand quits?
Of course, then Owyang left Forrester for a startup, Altimeter, that was started by a former Forrester analyst and which has since scooped up a number of other Forrester analysts. Right around that time, Forrester announced that it was ending the cross-posting experiment—no more personal blogs for its analysts. Any blogging would now be done from behind the firewall. I don’t want to assert cause and effect here, just pointing out the change.

Co-branding the individual and the company
As part of the change in its blogging policy, Forrester revised its blogging strategy as well, making its analysts more visible and giving them their own personal blogs behind the Forrester firewall. For example, Owyang’s replacement, Augie Ray, has his own personal blog, but his posts also appear on a group blog targeted at the business line he serves, “Interactive Marketing.” It’s a kind of co-branding strategy: individual analyst, line of business, and company brand all have equal billing at the top of the blog. So when Ray leaves, Forrester banks that people will want to follow the replacement analyst in interactive marketing for Forrester.

Meanwhile, Owyang still has his personal blog and it is as popular as it ever was—if not more so—than when he was at Forrester. And that’s a really good thing for Owyang’s new company, Altimeter Group. If you don’t agree, just go to Alexa and compare traffic at Owyang’s personal blog, the Forrester site, and the Altimeter site.

For smaller companies like Altimeter, the personal vs. corporate branding decision should be a no-brainer. Owyang’s traffic dwarfs that of the company. They should be thrilled that Owyang is still blogging, because he is constantly driving traffic to their site and exerting an upward pull on the corporate website’s traffic chart. People are going there to find out what company is backing Owyang and what they offer. If he left, would that traffic diminish? No doubt, but in the meantime, it’s all good for Altimeter.

For well-established brands like Forrester, the decision is less clear. The site already has lots of traffic and most people have heard of Forrester. Forcing analysts to start over again to build a personal following after they leave the fold may make it easier for replacements to follow acts like Owyang—at least from the corporate brand’s perspective

No doubt some will say that that proves that Forrester should never have allowed Owyang to keep his own blog. When he left, so did a lot of traffic that could have stayed with Forrester had he been surrounded by the corporate firewall.

The legacy of the corporate brand in the personal brand
But who’s thinking about the customer here? Will they really think less of you if one of your stars leaves? Was it a waste of time letting Owyang promote himself like that?

I don’t think so. Owyang’s blog is still packed full of references to Forrester and his work there. It’s clear searching on his blog today that Forrester played a big role in bringing him to prominence. And that association will never go away unless Owyang decides to one day just erase all traces of his past. There’s a very positive association there that underscores Forrester’s ability to nurture talent.

Now let’s look at that from the opposite perspective. Let’s say Ray builds as big a following through his Forrester blog as Owyang did through his personal blog. What happens to that content when he leaves? To me, the association is less positive over the long term. Do you really want a former analysts’ content to dominate your corporate brand’s search rankings after he or she leaves?

What about the customer’s view?
Now, I think that if we look at this from a traditional corporate branding perspective, your immediate reaction would be to expunge the analyst from your audience’s memory and start pushing the new content instead. And no doubt since the blogs are all behind Forrester’s firewall now, they can decide what stays and what goes, and can probably create ways through SEO to make the newer stuff more prominent in searches. I don’t want to speculate too much here because I’m not an expert on SEO.

But looking at it all from a customer’s perspective, I think Forrester looks better being a legacy on a star’s personal blog than having a star that leaves a void in content upon leaving. Let me underscore again that this is a good problem to have.

But as social media raises the ante for putting a personal face to the corporate brand, we are going to have to work through the issues that Forrester is grappling with right now. And we will need to avoid making knee-jerk decisions based on traditional brand thinking, because, like it or not, the brand game has changed forever.

What do you think?

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Why you need to turn your customers into stalkers

At ITSMA, we’ve been busy preparing for our annual State of the Marketing Profession briefing next Tuesday. It’s where we introduce some of the top findings from our annual budget survey of marketers.

But we don’t like to just parrot the numbers from the survey. So we spend weeks leading up to the briefing arguing about what the numbers actually mean and what marketers should do. One of the big ideas we’re going to be talking about next week is the concept of scaling intimacy.

All through 2010, marketers have been telling us that they are having a harder time getting their content noticed. Social media have created so much noise that it’s becoming more difficult for the good old white paper to stand out.

The social media noise is personal
But let’s look at the social media noise more carefully. The characteristic that stands out is that these channels are all more personal than more traditional content. In social media, we announce, as Tom Waits does in my favorite song of his, “Goin’ Out West,” that “I’m gonna make myself available to you.”

It has made those little pictures and bios at the end of white papers seem inadequate when compared to the wealth of information we can see about people on such social media channels as LinkedIn and Twitter.

Buyers have higher expectations for intimacy
What this means for marketers is that social media have increased buyers’ expectations for intimacy at all stages of the buying process. And this is where the scale issue comes in. We have built intimacy into the later stages of the buying process. We have individual salespeople making calls and we have marketers establishing deeper relationships with existing customers through intimate channels like reference programs and customer advisory councils.

But at the front end, our traditional tactics are starting to come off with all the warmth and sincerity of an English royal. It’s time to make our subject matter experts more available.

Marketers as paparazzi
We marketers have to start thinking of ourselves as paparazzi, complicit in making our subject matter experts’ personalities and accomplishments as visible online as Britney Spears’ stretch marks are in the trashy celebrity magazines.

Now, I can already sense marketers and PR people cringing. This is not how it usually works. We spend millions to build brands, why do we want to let individuals horn in on the action with their own brands? Won’t they just use our hard-won brand image to make themselves rich and famous and then just leave us?

You have no choice but to market individuals
Yes, but you have no choice but to market individuals as well as brands. Stats show that just 23% of the Fortune 1000 has corporate blogs—not exactly overwhelming. And what’s worse, when asked why they had corporate blogs, more than 50% said it’s the cost of doing business. Just 18% said they did it to become authorities within their industries.

I’d say the future of corporate blogs is bleak because we put traditional corporate brand walls around them. The brand comes first, not the people. That’s not going to motivate employees to participate. All of the best blogs are personal. Marketing needs to start paying as much attention to building individual brands as corporate brands.

And this is how we address the issue of scaling intimacy. By picking some individual stars and promoting the hell out of them, we present a more intimate face to all buyers—not just the ones who know us. The better known they become, the more people they can reach. But first we have to get past the fear of individuals taking our brands with them when they leave.

What do you think?

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