Inbound Marketing Demystified: Data From The Field. Jay Gaines Group Director, Demand
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1 Inbound Marketing Demystified: Data From The Field Jay Gaines Group Director, Demand
2 About SiriusDecisions 2
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 3
4 The State of Inbound (Fun Facts!) 4
5 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. % of respondents User Driven Awareness and Demand Creation Social media SEO Keyword advertising 84% 84% 81% Unknown Audience Display advertising Online demos/trials 67% 63% Value-added Offers Content syndication 61% 0% 50% 100% 5
6 Spending on Inbound Marketing SiriusPerspective: Approximately half of b-to-b program budgets are spent on inbound tactics. CURRENT SPEND FUTURE SPEND: 80%+ WILL INCREASE 45% Current state 50% of DG Outlook % of DG 40% 35% 30% 25% 20% 15% 10% 5% Inbound Outbound Inbound Outbound 0% Increase 50% - 100%+ Increase 25% - 49% Increase 0% - 24% No Change Decrease 1% - 24% 6
7 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. 100% 90% 80% 70% 60% 55% 58% 71% 50% 40% 30% 20% 10% 0% 19% 21% 11% 14% 9% 6% 15% 12% 9% Web Direct Mail Events Source: SiriusDecisions 7
8 Buyers Are Overwhelmed SiriusPerspective: The number of touches that buyers receive per week has increased 32% since 2008; they are tuning out outbound messages. 60% Campaigns Received Per Week 50% 50% 40% 30% 37% 28% 40% 20% 10% 0% 10% 11% 6% 6% 3% 3% 3% 3% 1 to to to to to Average 2008: 15.4 touches Average 2012: 20.3 touches Source: SiriusDecisions 8
9 Most Used Research Techniques SiriusPerspective: Decision makers rely on Internet search and their teams and colleagues when completing research. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 22% 21% 24% 12% 11% 10% 20% 22% 21% 22% 22% 21% 25% 23% 24% 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
10 Buyer Behavior Is the Driver SiriusPerspective: The key driver of high inquiry volumes via inbound is buyer behavior, not great Web site design. SiriusDecisions Buying Cycle Education Solution Selection One: Loosening of the Status Quo Two: Committing to Change Three: Exploring Possible Solutions Four: Committing to a Solution Five: Justifying the Decision Six: Making the Selection Web Sales Source: SiriusDecisions Inc. 10
11 Inbound Performance SiriusPerspective: Inquiries generated via inbound perform better and cost less. Quantity of Responses Quality of Responses Cost Per Response outbound Inbound outbound Inbound Very High Very High Outbound High High Average Average 4% 5% 16% 19% 20% 23% 21% 26% 19% $ % 41% 37% Low Inbound Low Very Very Low Low 4% 6% $25 10% 15% 15% 24% 20% 20% Source: SiriusDecisions 11
12 Integrating Inbound and Outbound Improves Results SiriusPerspective: By combining the two approaches, more leads will be generated at a lower cost. Outbound Only Integrated Programs Lead to Close Sourced Pipeline 15.5% 30%+ Close Rate 19% 24.5% Influenced Pipeline 52% 70% + Marketing Touches Programs 50 + < 30% Program Design Single Channel Multi Channel Campaign Focus Product Solution Primary Source Web Marketing Pipeline Cost 2% - 3%.5% -1.5% 12
13 Common Inbound Mistakes 13
14 Common Inbound Mistakes SiriusPerspective: There are several common characteristics of companies that report underperforming inbound efforts. No Strategy Ad hoc approach Inefficient use of resources No Integration Tactics focus No campaign link Weak Measurement Stops at activity level Little improvement 14
15 Mistake 1: Inbound Marketing Strategy SiriusPerspective: More than half of b-to-b marketers still lack a defined enterprise-wide inbound strategy. We currently have a defined, enterprise-wide inbound marketing strategy 49% Have a defined inbound marketing strategy but only to supports some business units or regions No defined inbound marketing strategy, plan to create one - next 12 months 23% 21% 51% Lack Strategy No defined inbound marketing strategy, no plan to create one 7%
16 Mistake 1: Inbound Marketing Strategy SiriusPerspective: Of the 49% that do have a defined strategy... the majority of strategies aren t very strategic. Yay! Boo! Almost Over 70% half of companies strategies have only a include defined, tactic, enterprise-wide target market inbound and budget strategy! definition. 16
17 Mistake 2: Inbound Integration SiriusPerspective: Significant efficiencies are achieved when tactics are integrated in a campaign framework versus one off tactics 76% of the time or more 16% 51% to 75% of the time 31% 26% to 50% of the time 25% of the time or less 21% 26% 53% indicated inbound is integrated less than 50% of the time Never 6%
18 Mistake 3: Inbound Measurement ABILITY TO MEASURE INBOUND AND OUTBOUND SEPERATELY NO, 28% YES, 72% 18
19 Mistake 3: Inbound Measurement CRITERIA FOR INBOUND MEASUREMENT 45% 40% 42% 35% 30% 25% 20% 24% 15% 10% 18% 16% 5% 0% Quantity of responses Conversion to full qualification Conversion to pipeline Conversion to revenue 19
20 Mistake 3: Inbound Measurement SiriusPerspective: SEO in the absence of a content strategy tends to be unfocused, too broad, diluted and ineffective. 20
21 The Keys To Inbound Success 21
22 Common Characteristics of Success SiriusPerspective: There are several common characteristics of companies that report high-performing inbound efforts. 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 22
23 Characteristic 1: Buyer Insight Beyond the Segment Enterprise Business Unit Organization Size (revenue, headcount) Industry Geographic Region Products and Services Owned Length of Relationship Department or Team Buying Center Business Issue BANT (budget, authority, need, timing) Buyer Roles Involved Job Role Persona Key Initiatives Challenges 23
24 Characteristic 1: Buyer Insight SiriusPerspective: Targeting, segmentation and buyer preference knowledge are the foundation of sound inbound marketing. Buyer Demographics Journey Personas Influence Participants Stages Experience Preferences Needs Timing Web Analytics Social Media Monitoring Preference Source: SiriusDecisions 24
25 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 Position on Org Chart Challenges Initiatives Business Unit Head General Manager Product Management Service Line Manager Reports to the Head of a Business Unit or Head of Product Management in the R&D division Lack of Development Funding Legacy Products Complicate Portfolio Develop New Product Rationalize Legacy Portfolio Product Marketing Solution Marketing Segment Manager Brand Manager Buyer Role Type Influencer Champion Interaction Preferences Watering Holes Linked In Product Management Group Product Management Associations Reports into the CMO of a central marketing organization or reports into the Head of a Business Unit Lack of Resources Sales Does Not Use Content Product Launch Build New Vertical Marketing Strategy Create Thought Leadership Program In-Person Meetings SiriusDecisions Event 25
26 Characteristic 2: Strategy SiriusPerspective: Supporting buyers in their research and information gathering process is the top priority for inbound marketers. INBOUND MARKETING PRIORITIES % of respondents Facilitate buyers' information gathering 76 Attract buyers early Build contact database Lower cost of inquiries Support multi-touch campaigns 39 Increase deal size Reduce reliance on outbound tactics Create and implement campaigns faster Make up for declining outbound responses Content strategy Imperative Keep up with competitors % 26
27 Characteristic 2: Content Strategy SiriusPerspective: Inbound performance can be maximized through high relevancy, content curation and optimized content delivery mechanisms. Attract Contributors Internal Analysts Partners Prospects Clients Competitors Engage Qualify Personas Delivery SEO Navigation Keyword Call to action Syndication WCM/WCO Mobile Buyer s Journey EDUCATION SOLUTION VENDOR SELECTION Content Types WHITE PAPERS PEER REFERRALS WEBINARS CASE STUDIES 27
28 Real Life Example: Inventory and Gap Identification Decision making priority 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 Family paper updated Dec 2010; podcast + Product SMDC pre-sales Updated Dec 2010; technical byline; podcast Series identified for 2011 Case Studies (listed) Gartner IDC paper Completed; in the Engagement Portfolio Case Studies (listed) IDC paper Forrester ABC Company XYZ Inc. + EMDC (RTP data Product center) New January 2010; podcast Series identified for 2011 Video, need clients Gartner IDC paper updated Product + 2 min overview & New January 201 ; technical demo 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. Asset is available Asset is WIP Asset is not available N/A 28
29 Real Life Example: Mapping Qualification Solution Identification Solution Validation Propose Close 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 Business White Papers How XYZ is making the data center more energy-efficient: External / Internal Analyst Reports Podcasts Client presentation (ppt) Presentation (ppt) Brochure (pdf) Brochure (pdf) Technical White Paper and Video Cient references Case study References Demos 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 Case Studies Blogs 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) Competitive Tools 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 29
30 Characteristic 3: Deeper Measurement (Don t Stop at Activity) SiriusPerspective: To truly understand the impact of inbound marketing, you must measure beyond activity. Weak inbound Measurement Inbound Tactic Web Site Visit? 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? Source: SiriusDecisions 30
31 Characteristic 3: Deeper Measurement SiriusPerspective: One of marketing s missions is to be a predictable engine of demand and supporter of conversion. Inbound Inquiry Outbound Best-in-class companies know exactly what it takes Marketing Qualification Automation Qualified Leads (AQLs) Teleprospecting Accepted Leads (TALs) Teleprospecting Qualified Leads (TQLs) Sales Generated Leads (SGLs) Sales Qualification Teleprospecting Generated Leads (TGLs) Sales Accepted Leads (SALs) Sales Qualified Leads (SQLs) Close Won Business 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 31
32 Example: Metrics SiriusPerspective: Expand on KPIs with six metrics that break marketing demand creation contribution into component parts. Average* 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 Source: SiriusDecisions 32
33 Example: KPIs SiriusPerspective: Net out marketing s contribution and effective use of budget with four benchmarkable KPIs. Average* 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+ *Cross-industry averages for b-to-b companies 33
34 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 34
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