Customer Advocacy: Its Impact on Demand Creation
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1 May 26, 2016 Customer Advocacy: Its Impact on Demand Creation Jen Horton Sr. Research Director Lisa Nakano Research Director
2 Intuitively You Know It s Good 2
3 Executive Summary Key issues Customer experience is the largest driver of b-to-b buying decisions, yet its impact is often ignored when planning demand creation objectives Demonstrating advocacy s impact on demand creation justifies investments in advocacy and lends more precision to demand modeling Marketers that account for customer advocacy s impact are better able to design demand creation programs that meet pipeline and revenue targets What you will walk away with An understanding of advocacy s impact on Demand Waterfall efficiency Our view of how to quantify advocacy s impact on demand creation performance Examples of how companies account for advocacy s impact 3
4 Customer Advocacy Demand Creation Opportunity SiriusPerspective: Leveraging positive experiences of successful customers creates building blocks for demand creation. 71% of b-to-b decision drivers are based on customer experience Customer Lifecycle B-to-B Buying Cycle DELIVER INITIATE DEVELOP PARTICIPATE RETAIN ACTUALIZE GROW ADVOCATE 2015 SiriusDecisions Customer Advocacy Study 4
5 Customer Advocacy Demand Creation Opportunity SiriusPerspective: Leveraging positive experiences of successful customers creates building blocks for demand creation. Customer B-toB Buying Lifecycle Cycle B-to-B Buying Cycle EDUCATION DELIVER INITIATE NEED DEVELOP EDUCATION PARTICIPATE SOLUTION EXPLORE RETAIN ACTUALIZE SOLUTION SELECTION GROW ADVOCATE CHOOSE 23% of b-to-b marketers focus on advocacy for early-stage demand creation SELECTION 2015 SiriusDecisions Customer Advocacy Study 5
6 Customer Advocacy Demand Creation Opportunity SiriusPerspective: Leveraging positive experiences of successful customers creates building blocks for demand creation. The aggregation of activities where customers share their positive experiences with your brand such as: Case studies Sales references Video testimonials Social sharing Community discussions Influencer relations Customer B-toB Buying Lifecycle Cycle B-to-B Buying Cycle EDUCATION DELIVER INITIATE NEED DEVELOP EDUCATION PARTICIPATE SOLUTION EXPLORE RETAIN ACTUALIZE SOLUTION SELECTION GROW ADVOCATE CHOOSE SELECTION 23% of b-to-b marketers focus on advocacy for early-stage demand creation 2015 SiriusDecisions Customer Advocacy Study 6
7 Key Processes for Effective Demand Creation SiriusPerspective: To drive best-in-class performance, sales and marketing must align roles and responsibilities to five SiriusDecisions Demand Waterfall based processes. Inquiry Inbound Outbound Seed The use of traditional and social media to set the stage for demand creation Marketing Qualification Automation Qualified Leads (AQLs) Teleprospecting Accepted Leads (TALs) Create The creation of original demand, with a focus on quality vs. quantity Teleprospecting Qualified Leads (TQLs) Teleprospecting Generated Leads (TGLs) Accelerate Efforts geared to help move qualified demand more quickly through to revenue Sales Qualification Sales Generated Leads Sales Accepted (SGLs) Leads (SALs) Sales Qualified Leads (SQLs) Enable Helping reps increase their productivity, for both sales- and marketing-sourced demand Close Won Business Nurture The care and feeding of prospects that aren t ready for sales, or that have fallen out of the Demand Waterfall 7
8 Advocacy Can Impact All Demand Creation Processes SiriusPerspective: Understanding where advocacy has an impact on demand creation helps to justify advocacy investments and results in better demand creation planning. Inquiry Inbound Outbound Seed Advocacy builds reputation, which sets the potential for demand creation Marketing Qualification Sales Qualification Automation Qualified Leads (AQLs) Teleprospecting Accepted Leads (TALs) Teleprospecting Qualified Leads (TQLs) Sales Generated Leads (SGLs) Sales Accepted Leads (SALs) Sales Qualified Leads (SQLs) Teleprospecting Generated Leads (TGLs) Create Accelerate Enable Referral and upsell/cross-sell programs source high-quality demand directly through advocates Advocacy-infused content supports buyers throughout the buying process Direct access to advocates helps buyers mitigate risk in purchase decisions Close Won Business Nurture Advocacy-infused content helps buyers build a stronger business case 8
9 Polling Question Does your organization incorporate advocacy into demand creation planning? Yes No 9
10 From Activity to Impact Determining opportunities for demand creation leverage
11 Identifying Opportunities for Advocacy Leverage SiriusPerspective: Demand creators and customer marketing professionals need to assess resources and capabilities to determine where advocacy can have impact. Inquiry Inbound Outbound Do I have the right resources? Marketing Qualification Automation Qualified Leads (AQLs) Teleprospecting Accepted Leads (TALs) Teleprospecting Qualified Leads (TQLs) Sales Qualification Sales Generated Leads (SGLs) Teleprospecting Generated Leads (TGLs) Sales Accepted Leads (SALs) How can I leverage them? Close Sales Qualified Leads (SQLs) Can I measure their impact? Won Business 11
12 Seed Demand: Activate Advocates SiriusPerspective: Advocates can be a powerful tactic delivery mechanism to introduce and spread the word about their experiences as well as demand creation offers. Inquiry Inbound Marketing Qualification Automation Qualified Leads (AQLs) Teleprospecting Accepted Leads (TALs) Outbound Resources Relevant advocates and advocacy content Willingness to participate Ability to reach and engage advocates Ability to track and measure advocacy activity Teleprospecting Qualified Leads (TQLs) Sales Qualification Sales Generated Leads (SGLs) Teleprospecting Generated Leads (TGLs) Sales Accepted Leads (SALs) Leverage Participate in investor and analyst briefings Social participation Logo and testimonial usage Drive awareness of demand creation offers Close Sales Qualified Leads (SQLs) Won Business Metrics Net Promoter Score Brand sentiment Influenced revenue 12
13 Bomgar: Building Relationships With Advocates SiriusPerspective: Through its advocate portal, Bomgar offers an array of challenges and rewards to manage, engage and reward advocacy participation. Objective Lots of happy customers and high NPS scores A program to build relationships with advocates and activate them to build positive brand sentiment in important communities Adopt a technology platform that enables them to manage the program and track all advocacy activity 13
14 Bomgar: Building Relationships With Advocates SiriusPerspective: Through its advocate portal, Bomgar offers an array of challenges and rewards to manage, engage and reward advocacy participation. Objective Lots of happy customers and high NPS scores A program to build relationships with advocates and activate them to build positive brand sentiment in important communities Adopt a technology platform that enables them to manage the program and track all advocacy activity Impact Increased social followers by 12 percent Increased social mentions by 66 percent and content tweets by 45 percent Improved case study output by 50 percent Generated 400+ new inquiries 14
15 Create Demand: Expand Lead Sources SiriusPerspective: Targeting existing advocates or advocate networks often results in demand that converts more efficiently and quickly than through traditional sources. Inquiry Inbound Marketing Qualification Automation Qualified Leads (AQLs) Teleprospecting Accepted Leads (TALs) Outbound Resources Relevant portfolio of offerings for advocates Willingness and capability for advocates to contribute referrals Ability to track and measure demand sourced from tactics that leverage advocacy Teleprospecting Qualified Leads (TQLs) Sales Qualification Sales Generated Leads (SGLs) Teleprospecting Generated Leads (TGLs) Sales Accepted Leads (SALs) Leverage Cross-sell/upsell programs Referral incentive programs Case study and demand creation offer assets Close Sales Qualified Leads (SQLs) Won Business Metrics Inquiry, TGL or SGL generation Conversion efficiency Sourced revenue 15
16 ADP: Referrals Are Largest Source of New Leads SiriusPerspective: Through its rewards portal, ADP offers product incentives and revenue sharing. Objective High volume of clients and partners in the field that could be leveraged A program to incent clients to make direct referrals with product discounts, and offer revenuesharing rewards with key accounts Adopt a technology platform that enables ADP to manage all referral activity and reward distribution 16
17 ADP: Referrals Are Largest Source of New Leads SiriusPerspective: Through its rewards portal, ADP offers product incentives and revenue sharing. Objective High volume of clients and partners in the field that could be leveraged A program to incent clients to make direct referrals with product discounts, and offer revenuesharing rewards with key accounts Adopt a technology platform that enables ADP to manage all referral activity and reward distribution Impact #1 source of new demand creation Improved conversion efficiency Referral sourced customers much less likely to churn 17
18 Accelerate Demand: Improve Time to Revenue SiriusPerspective: Advocacy content that helps the buyer answer questions throughout the buying cycle also helps to reduce the time spent in each stage of the process. Inquiry Inbound Outbound Marketing Qualification Automation Qualified Leads (AQLs) Teleprospecting Accepted Leads (TALs) Teleprospecting Teleprospecting Generated Qualified Leads (TQLs) Leads (TGLs) Sales Qualification Sales Generated Leads Sales Accepted (SGLs) Leads (SALs) Resources Leverage Relevant advocacy content assets mapped to each stage of the buying cycle Ability to isolate and analyze cohorts of demand that touched advocacy content vs. those that did not Small-net fishing programs Pipeline acceleration programs Obstacle removal programs Sales Qualified Leads (SQLs) Close Won Business Metrics Velocity Influenced revenue 18
19 Enable Sales: Minimize Buyer Risk SiriusPerspective: Direct interaction with advocates helps the buyer to better understand, envision and evaluate the post-purchase experience as a customer. Inquiry Inbound Marketing Qualification Sales Qualification Automation Qualified Leads (AQLs) Teleprospecting Accepted Leads (TALs) Teleprospecting Qualified Leads (TQLs) Sales Generated Leads (SGLs) Outbound Teleprospecting Generated Leads (TGLs) Sales Accepted Leads (SALs) Resources Leverage Relevant advocates Ability to manage and track advocate and buyer interactions Reference call support Executive briefing center support Customer event participation Customer community participation Close Sales Qualified Leads (SQLs) Won Business Metrics Sales quota attainment Deal dynamics Influenced revenue 19
20 Nurture Demand: Remain Relevant SiriusPerspective: Advocacy content can help maintain buyer engagement, create urgency and build a business case to initiate a new buying cycle. Inquiry Inbound Marketing Qualification Automation Qualified Leads (AQLs) Teleprospecting Accepted Leads (TALs) Outbound Resources Relevant advocacy content assets mapped to disqualification reasons Ability to isolate and analyze cohorts of demand that were nurtured with advocacy content vs. those that were not Teleprospecting Qualified Leads (TQLs) Sales Qualification Sales Generated Leads (SGLs) Close Won Business Sales Accepted Leads (SALs) Sales Qualified Leads (SQLs) Teleprospecting Generated Leads (TGLs) Leverage Metrics Active recycle programs that help build the business case Passive recycle programs that requalify Reconstituted programs that re-engage Conversion efficiency Velocity Sourced and influenced revenue 20
21 Citrix: Measuring Customer Advocacy Impact SiriusPerspective: Customer advocacy team tracks all reference activities, including those associated with opportunities for revenue influence effectiveness measures. Total References Utilized Marketing Sales , Totals Total Pipeline $308,631,082 $334,863,027 Revenue Closed 466 won deals 1,221 pipeline 1,283 won deals 1,128 pipeline $125,371,042 $209,371, ,642 won deals 1,595 pipeline $335,116,619 $516,661,287 21
22 Polling Question Where is the biggest opportunity for leveraging advocacy for demand creation in your organization? Seed Create Accelerate Enable Nurture 22
23 Understanding the Real Drivers of Demand Correlation analysis helps frame demand drivers
24 Identifying Impact on Bookings Variations SiriusPerspective: Analysis of monthly marketing activity, advocacy activity, market conditions and pricing data to identify variables that correlate with bookings. The estimated equation explains 92 percent of the variation in bookings. Drivers for Total Bookings: Market conditions Pricing Chat-sourced leads (lagged 3m) s opened (lagged 4m) Challenge completions Demo-sourced leads (lagged 5m) Partner-sourced leads (lagged 0, 3 and 6m) Bookings: Actual vs. Estimated Values ($ Millions) 01/14 04/14 07/14 10/14 01/15 04/15 07/15 10/15 01/16 Actual Estimated 24
25 Identifying Impact on Bookings Variations SiriusPerspective: Analysis of monthly marketing activity, advocacy activity, market conditions and pricing data to identify variables that correlate with bookings. The estimated equation explains 92 percent of the variation in bookings. Drivers for Total Bookings: Market conditions Pricing Chat-sourced leads (lagged 3m) s opened (lagged 4m) Challenge completions Demo-sourced leads (lagged 5m) Partner-sourced leads (lagged 0, 3 and 6m) 1.6% 2 percent of total of bookings bookings representing over last 12 months representing $XM $800k 2015 SiriusDecisions Customer Advocacy Study 25
26 Action Items Demand marketing Gather data from available sources to assess what options exist for leveraging advocacy Pilot and test advocacy leverage to build the case for more infusion Customer marketing Take baseline influence of advocacy on Demand Waterfall performance and analyze impact over this baseline Assess advocacy program quality and highlight opportunities for demand creation leverage 26
27 Quantifying Impact Crafts the Perfect Recipe 27
28 SiriusDecisions Resources Research Leveraging Customer Advocacy for Demand Creation Core Strategy Report: The SiriusDecisions Demand Waterfall Implementation Guide The Evolution of Customer Advocacy Webcast: Customer Advocacy: What Your Marketing Is Missing Webcast: Don't Go Chasing Waterfalls: SiriusDecisions Demand Waterfall Key Concepts Tools Reverse Waterfall Tool Learning Account-Based Marketing Pathway Pipeline Acceleration Pathway B-to-B Foundations Pathway 28
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