Inbound Marketing Demystified: Data From The Field...No defined inbound marketing strategy, no plan...

Inbound Marketing Demystified: Data From The Field

Jay Gaines Group Director, Demand Strategies @izjay

© Copyright SiriusDecisions. All Rights Protected and Reserved.

About SiriusDecisions

2

© Copyright SiriusDecisions. All Rights Protected and Reserved. 3

Executive Summary

•  Key issues –  Inbound is a required part of an effective b-to-b marketing

mix –  Many organizations struggle to demonstrate measurable

business value from inbound efforts –  Organizations that report strong inbound performance

consistently have a small set of common characteristics

•  What you will walk away with –  Some inbound fun facts –  An understanding of three key inbound marketing mistakes

many organizations make –  A deep dive into the three characteristics of successful

inbound marketing organizations

Source: SiriusDecisions

The State of Inbound (Fun Facts!)

4


Defining inbound Marketing SiriusPerspective: Tactics and offers extended to an unknown target audience that deliver value-added content and are consumed at an individual’s discretion.

5

61%

63%

67%

81%

84%

84%

0% 50% 100%

Content syndication

Online demos/trials

Display advertising

Keyword advertising

SEO

Social media

% of respondents

User Driven

Awareness and Demand Creation

Unknown Audience

Value-added Offers


Spending on Inbound Marketing SiriusPerspective: Approximately half of b-to-b program budgets are spent on inbound tactics.

6

CURRENT SPEND

Current state 50% of DG

Outlook 2015 65% of DG

Inbound Outbound Inbound Outbound 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Increase 50% - 100%+

Increase 25% - 49%

Increase 0% - 24%

No Change Decrease 1% - 24%

FUTURE SPEND: 80%+ WILL INCREASE


Inbound Marketing: The Source of Most Inquiries SiriusPerspective: The reality is that prospects find you when they’re ready; effective inbound marketing makes you easier to find.


15% 12% 9%

11% 9%6%

19% 21%14%

55% 58%71%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2015

Web

Direct Mail

Email

Events


Buyers Are Overwhelmed SiriusPerspective: The number of touches that buyers receive per week has increased 32% since 2008; they are tuning out outbound messages.

8

50%

28%

10% 6%

3% 3%

37% 40%

6% 3%

11%

3%

0%

10%

20%

30%

40%

50%

60%

1 to 10 11 to 25 26 to 40 21 to 50 51 to 75 75+

Campaigns Received Per Week

Average 2008: 15.4 touches Average 2012: 20.3 touches



Most Used Research Techniques SiriusPerspective: Decision makers rely on Internet search and their teams and colleagues when completing research.

25% 23% 24%

22% 22% 21%

20% 22% 21%

12% 11% 10%

22% 21% 24%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CXO VP Director

Ask my team or colleagues for options

Access a social media community

Call an industry analyst

Call an industry peer

Search on the Internet


Source: SiriusDecisions Inc.

SiriusDecisions Buying Cycle

Web

Sales

10

Buyer Behavior Is the Driver SiriusPerspective: The key driver of high inquiry volumes via inbound is buyer behavior, not great Web site design.

Three: Exploring Possible Solutions

Four: Committing to a Solution

Five: Justifying the Decision

Six: Making the Selection

One: Loosening of the Status Quo

Two: Committing to Change Educ

atio

n So

lutio

n Se

lectio

n


Inbound Performance SiriusPerspective: Inquiries generated via inbound perform better and cost less.

11


Inbound

Outbound

$25

$41.50

Cost Per Response

6%

20%

37%

21%

16%

15%

20%

19%

20%

4%

Very Low

Low

Average

High

Very High

Quantity of Responses outbound Inbound

4%

10%

41%

26%

19%

15%

24%

33%

23%

5%

Very Low

Low

Average

High

Very High

Quality of Responses outbound Inbound


Integrating Inbound and Outbound Improves Results SiriusPerspective: By combining the two approaches, more leads will be generated at a lower cost.

12

Outbound Only Integrated Programs Lead to Close 15.3 7.2 Sourced Pipeline 15.5% 30%+ Close Rate 19% 24.5% Influenced Pipeline 52% 70% + Marketing Touches 25 + 15 - 20 Programs 50 + < 30% Program Design Single Channel Multi Channel Campaign Focus Product Solution Primary Source eMail Web Marketing Pipeline Cost 2% - 3% .5% -1.5%

Common Inbound Mistakes

13


Common Inbound Mistakes SiriusPerspective: There are several common characteristics of companies that report underperforming inbound efforts.

14

No Strategy •  Ad hoc approach •  Inefficient use of resources

No Integration •  Tactics focus •  No campaign link

Weak Measurement •  Stops at activity level •  Little improvement


Mistake 1: Inbound Marketing Strategy SiriusPerspective: More than half of b-to-b marketers still lack a defined enterprise-wide inbound strategy.

15

0 10 20 30 40 50 60

No defined inbound marketing strategy, no plan to create one

No defined inbound marketing strategy, plan to create one - next 12 months

Have a defined inbound marketing strategy but only to supports some business units or

regions

We currently have a defined, enterprise-wide inbound marketing strategy

49%

23%

21%

7%

51% Lack

Strategy


Mistake 1: Inbound Marketing Strategy SiriusPerspective: Of the 49% that do have a defined strategy . . . the majority of strategies aren’t very strategic.

16

Yay! Almost half of companies have a defined,

enterprise-wide inbound strategy!

Boo! Over 70% of “strategies” only include tactic, target market and

budget definition.


Mistake 2: Inbound Integration SiriusPerspective: Significant efficiencies are achieved when tactics are integrated in a campaign framework versus one off tactics

17

6%

26%

21%

31%

16%

0 5 10 15 20 25 30 35

Never

25% of the time or less

26% to 50% of the time

51% to 75% of the time

76% of the time or more

53% indicated inbound is integrated

less than 50% of the time


Mistake 3: Inbound Measurement

ABILITY TO MEASURE INBOUND AND OUTBOUND SEPERATELY

YES, 72%

NO, 28%


Mistake 3: Inbound Measurement

42%

24%

18% 16%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Quantity of responses

Conversion to full qualification

Conversion to pipeline

Conversion to revenue

CRITERIA FOR INBOUND MEASUREMENT


Mistake 3: Inbound Measurement SiriusPerspective: SEO in the absence of a content strategy tends to be unfocused, too broad, diluted and ineffective.

20

The Keys To Inbound Success

21


Common Characteristics of Success SiriusPerspective: There are several common characteristics of companies that report high-performing inbound efforts.

22

Buyer Intelligence •  Clear prioritization and targeting •  Use of personas

Strategy •  Content at its core • Oriented around buyer personas

Deep Measurement •  Focus on value, not activity •  Links sources to conversion, pipeline and revenue


Characteristic 1: Buyer Insight Beyond the Segment

Organization •  Size (revenue, headcount) •  Industry •  Geographic Region •  Products and Services Owned •  Length of Relationship

Buying Center •  Business Issue •  BANT (budget, authority, need, timing) •  Buyer Roles Involved

23

Enterprise

Business Unit

Department or Team

Job Role

Persona •  Key Initiatives •  Challenges


Participants

Stages

Needs

Timing

Web Analytics

Social Media

Monitoring Preference

Demographics

Personas

Influence

Preferences

Characteristic 1: Buyer Insight SiriusPerspective: Targeting, segmentation and buyer preference knowledge are the foundation of sound inbound marketing.

Buyer

Journey

Experience

24



Characteristic 1: B-to-B Persona Template

Attributes Persona A Persona B

Job Role Product Management Product Marketing

Buying Center Engineering/R&D Global Marketing

Common Titles Business Unit Head General Manager Product Management Service Line Manager

Product Marketing Solution Marketing Segment Manager Brand Manager

Position on Org Chart Reports to the Head of a Business Unit or Head of Product Management in the R&D division

Reports into the CMO of a central marketing organization or reports into the Head of a Business Unit

Challenges Lack of Development Funding Legacy Products Complicate Portfolio

Lack of Resources Sales Does Not Use Content

Initiatives Develop New Product Rationalize Legacy Portfolio

Product Launch Build New Vertical Marketing Strategy Create Thought Leadership Program

Buyer Role Type Influencer Champion

Interaction Preferences

Email In-Person Meetings

Watering Holes Linked In Product Management Group Product Management Associations

SiriusDecisions Event

25


Characteristic 2: Strategy SiriusPerspective: Supporting buyers in their research and information gathering process is the top priority for inbound marketers.

26

5

16

16

19

20

39

53

57

61

76

- 10 20 30 40 50 60 70 80 90 100

Keep up with competitors

Make up for declining outbound responses

Create and implement campaigns faster

Reduce reliance on outbound tactics

Increase deal size

Support multi-touch campaigns

Lower cost of inquiries

Build contact database

Attract buyers early

Facilitate buyers' information gathering

Content strategy

Imperative

% of respondents

%

INBOUND MARKETING PRIORITIES


Characteristic 2: Content Strategy SiriusPerspective: Inbound performance can be maximized through high relevancy, content curation and optimized content delivery mechanisms.

27

Delivery SEO

Navigation Keyword

Call to action Syndication WCM/WCO

Mobile

Attract

EDUCATION

SOLUTION

VENDOR SELECTION

Buyer’s Journey

WEBINARS CASE STUDIES

WHITE PAPERS PEER REFERRALS

Content Types

Personas

Engage Qualify

Contributors Internal Analysts Partners

Prospects Clients

Competitors


Demo Business White Paper (+ podcast)

Technical white paper Client reference Analyst Report Competitive comparison

Overall portfolio N/A Updated brochure; podcast

N/A N/A No magic quadrant chart available

ABC Company XYZ Inc.

Product Line ! Data center energy assessment

Updated Dec 2010; podcast; gas guzzler

Not planned On-going; blinded; Client Video Testimonial

Not targeted Completed

Product Line 2 N/A Updated with Research in Dec 2010

Research is writing for technical conferences in

2011

Limited external references

N/A ABC Company XYZ Inc.

Product Line 3 N/A Updated with Research in Dec 2010

Research evaluating relevant technical

conferences

Limited external references

Consider after research innovation tools completed

Not targeted

Product Line 4 Family demo March 2009

+ SMDC pre-sales

technical

+ EMDC (RTP data center)

+ 2 min overview & technical demo

Family paper updated Dec 2010; podcast

Series identified for 2011 Case Studies (listed) Gartner IDC paper

Product Updated Dec 2010; byline; podcast

Completed; in the Engagement Portfolio

Case Studies (listed) IDC paper Forrester

ABC Company XYZ Inc.

Product New January 2010; podcast

Series identified for 2011 Video, need clients Gartner IDC paper

updated

Product New January 201 ; podcast

Technical material included in white paper

Video in process, Smith willing to do video

IDC paper Completed UPDATING

Product Updated as part of modular data center, Dec

2010

Not planned Case Studies (listed) Gartner ABC Company XYZ Inc.

Decision making priority

Asset is available Asset is WIP Asset is not

available N/A

Real Life Example: Inventory and Gap Identification

28


How XYZ Inc. is making the data center more energy-efficient: External / Internal

Podcasts Self assessment tool Client presentation (ppt) Client presentation (zip)

White Paper pdf)

Value driven proposal (doc)

Case study Cient presentation (and education)

Client references

Case study

How XYZ is making the data center more energy-efficient: External / Internal

Podcasts Client presentation (ppt)

Presentation (ppt)

Brochure (pdf)

Brochure (pdf) Cient references Case study

How XYZ is making the data center more energy-efficient: External / Internal White Paper (pdf) Video and press release Gartner report (pdf) Forrester case study(pdf) Video Analyst blog

Podcasts VIDEO: External / Internal (for download and translation) White paper - External / Internal video for awareness DEMONSTRATIONS: - Overview client presentation - client pitch (ppt) - client (zip) - SMB client (ppt)

Competitive Comparison Guide Brochure: The right choice for

midsize organizations (pdf)

Technical White Paper Technical Overview Video External / Internal (for download)

Client references Case studies Client video download University video Case study (pdf)

Video & case study

Demos

Business White

Papers

References Analyst Reports

Technical White Paper and Video

Real Life Example: Mapping

Solution Validation

Propose

Qualification

Close

Solution Identification

Competitive Tools

Case Studies Blogs


Characteristic 3: Deeper Measurement (Don’t Stop at Activity)

SiriusPerspective: To truly understand the impact of inbound marketing, you must measure beyond activity.

30

Example: 10 companies x 10 contacts each = 100 contacts in potential universe

Example: Of 100 potential contacts, database has 70; 20 are duplicate , 20 incomplete = 30 usable contacts or 30% database completeness

Example: Each quarter database gains 3% new names and loses 1.5% contacts to deliverability/opt-out: Net growth is 1.5% per quarter

Inbound Tactic

Web Site Visit

?

Weak inbound Measurement


Measuring to the visit leaves too many questions unanswered . . . •  Are we inbounding the right

people?

•  Which approaches are best at inbounding the right people?

•  Which approaches drive the most conversions?

•  How many get to pipeline?

•  How many get to closure?


Characteristic 3: Deeper Measurement SiriusPerspective: One of marketing’s missions is to be a predictable engine of demand and supporter of conversion.

31

Example: 10 companies x 10 contacts each = 100 contacts in potential universe

Example: Of 100 potential contacts, database has 70; 20 are duplicate , 20 incomplete = 30 usable contacts or 30% database completeness

Example: Each quarter database gains 3% new names and loses 1.5% contacts to deliverability/opt-out: Net growth is 1.5% per quarter

Best-in-class companies know exactly what it takes… •  How many contacts and

inquiries to generate

•  What percentage of leads convert in each phase

•  How long they take to move and why they stall

•  What tactics buyers prefer …To deliver a predictable share of pipeline and revenue

Inquiry

Outbound Inbound

Marketing Qualification

Teleprospecting Qualified Leads (TQLs)

Teleprospecting Accepted Leads (TALs)

Automation Qualified Leads (AQLs)

Teleprospecting Generated Leads (TGLs)

Sales Qualification

Sales Accepted Leads (SALs)

Sales Generated Leads (SGLs)

Sales Qualified Leads (SQLs)

Close

Won Business


Example: Metrics SiriusPerspective: Expand on KPIs with six metrics that break marketing demand creation contribution into component parts.

32

Database % database

with bad/ incomplete

records

25%+

Inquiries

Raw response or hand raiser

20-60% (from

inbound)

Marketing Qualified

Leads (MQLs)

Lead ready for receiving function to

work

4% to 10%

Sales Accepted

Leads (SALs)

Lead accepted by

receiving function

45% to

75%

Sales Qualified

Leads (SQLs)

Lead that is opportunity in

pipeline

50% to 60%

SQL-to-Close

Leads that have closed

20% to 30%

*Cross-industry averages for b-to-b companies


Aver

age*


Example: KPIs SiriusPerspective: Net out marketing’s contribution and effective use of budget with four benchmarkable KPIs.

33

Marketing Sourced Pipeline

% of sales pipeline uniquely

created by marketing

10% to 50%

Marketing

Influenced Pipeline % of sales

pipeline touched by marketing

30% to 82%

Investment-to- Pipeline

Average cost of demand creation

of the sales pipeline

1% to 4%

Investment-to-Revenue

Average revenue generated from $1

invested in demand creation

$5 to $20+

Aver

age*

*Cross-industry averages for b-to-b companies


Action Items

• Marketing –  Pilot a content strategy for a defined audience/offering

pairing in order to learn and prove the concept

– Measure impact in defined categories, including attract, engage, qualify and internal efficiency

•  Sales – Work with marketing to define buyer’s journey, key

personas and information needs

–  Prepare to engage with knowledgeable inbound leads

Inbound Marketing Demystified: Data From The Field...No defined inbound marketing strategy, no plan...

Documents

Transcript of Inbound Marketing Demystified: Data From The Field...No defined inbound marketing strategy, no plan...