MarketingSherpa Blog

We reported in MarketingSherpa’s 2011 Email Marketing Benchmark Report that the biggest challenge marketers’ face is targeting recipients with highly relevant content. I do not foresee this moving out of top tier of challenges due to the complexity of reaching a unique subscriber with the exact information they need to help he or she succeed

Crafting an email message that connects with the reader at the moment he or she choose to open the email is difficult. Nevertheless, the alternative of sending irrelevant emails puts a brand’s image, reputation and subscriber relationships at risk.

Relevancy is #1 Challenge

Today, some 70 million US consumers access their email inboxes through a mobile device, and subscribers’ bottomless appetites for multi-tasking, whether it be on a phone, tablet, or laptop during office meetings or in front of the television, make it impossible for companies to capture a reader’s full attention. To break through the clutter, email messages must be easy to engage with, relevant and clear.

A company that sends timely email messages with pinpoint accuracy will not only stand out from the competition, but may be the only brand to make it to their subscribers’ inboxes.

Webmail clients Hotmail and Gmail are using engagement metrics (open, delete, reply, etc.) to determine when and where email is delivered. B2B marketers also need to keep these trends in mind when planning their email campaigns. HubSpot found that 88 percent of email users do not have a separate work and home address. Many employees like to use webmail addressesto have the ability to share larger files over corporate email.

To meet customers’ rising demands for relevant and engaging communications, marketers can focus on three key elements:

• Content
• Segmentation
• Time

All three are essential. If one element is missing, the email can become irrelevant to the reader. Let me show you a recent first-rate email series that fell just short of the goal for my family.

Moving beyond a single data point for determining relevancy

A year ago, my wife joined the Chuck E. Cheese’s email club to receive coupons and free tokens for our kids. In exchange for her email address and dates of our children’s birthdays, we receive emails twice a month promoting their latest coupons or specials. The emails nicely tie into holidays, school calendars, or kid activities, like receiving a bonus of tokens for cleaning their rooms.

As you might expect, with the information of my children’s birthdays, Chuck E. Cheese’s sends a few emails leading up to the big day. About thirty days before my son’s birthday we received this email with the personalized subject line “[Parent’s name], Get 100 Bonus Birthday Tokens for [Child’s name].” I did not speak with Chuck E. Cheese’s, but from the numerous party invitations my kids have received from their classmates starting in preschool, these emails are very successful at enticing parents to book birthday parties at Chuck E. Cheese’s locations.

The week of my son’s birthday, my wife received an email with the subject line “Happy Birthday to [Child’s name] from Chuck E. Cheese’s..” The principle message was to wish my son a happy birthday and encourage us to stop in and play some games with complimentary tokens.

Close behind and at the top of the email was the copy “Haven’t planned a party yet for [Child’s name]? No worries, it’s never too late to reserve a birthday party at Chuck E. Cheese’s. Last minute walk-in parties are always welcome, so come on in and celebrate!”

As you might agree, these are excellent emails containing personalized and relevant information, and are delivered at appropriate times leading up to a child’s birthday.

So why did they fall short of relevancy for my family? Well, I guess you would classify us as outliers; we planned our son’s birthday 90 days out at an indoor gymnasium. (Full disclosure: Chuck E. Cheese’s does send half-birthday email cards, but we are not that organized, and yes, in the copy, Chuck E. Cheese’s promotes walk-in half-birthday celebrations).

I am confident Chuck E. Cheese’s identified two groups of parents/guardians with their internal sales data: a profile of party purchasers that plan within 30 days and another that plans the week leading up to the event. Combined with the child’s birthdates collected during email registration, Chuck E. Cheese’s sends highly relevant and targeted communications with these two types of buyers.

Moving forward, Chuck E. Cheese’s may choose to expand their email program to cater to “overly-organized” parents. An email message sent 90 days prior to the celebration, with more highlights on specific cake, food, and party favor options may appeal to this customer profile who enjoy delving into the details of the planning process.

Mining for data

For marketers, the quest for relevancy and engagement is not complete until a one-to-one relationship is established. Due to budget and resource constraints, this is an unrealistic goal for most companies. That should not discourage marketers from moving towards one-to-fewer, even if their budget doesn’t allow for a true one-to-one relationship to develop. Remember, with each successful email campaign targeted to a select customer profile, brands can expand their reach and look at new segments of their customer base to exploit, such as outliers like my family.

To do that, organizations need to go beyond traditional demographics like birthdates to understand their customer’s motivations. I do not think you would ever want to have an email preference center with a checkbox to identify your customers as an early bird, prompt, or fashionably late party planner. But that doesn’t mean such valuable information is out of your reach.

In addition to your email database, mining all of the in-house data found inside CRM, sCRM, web analytics or financial software systems may be beneficial. When you begin, search four categories of data; endemic, transactional, behavioral and computed.

Endemic data is data unique to a particular record. Examples are contact and demographic information commonly collected during registration or  in a brands preference center.

Transactional data consists of data captured during any transaction a customer has with an organization. Financial software is the most common source of transactional data, but transactional data can also encompass a subscriber’s IP address.

Behavioral data is perhaps the most actionable of all database information and can come from a wide variety of both online and offline sources. Website clicks, email opens, calls to customer service, and redemption of coupons at store locations are all examples of behavioral data.

Computed data is the outcome when one or more variables are used to create a third variable.

For example, the variable of “number of miles from a retail store” is computed data, and is the difference of the distance between the customer and store’s address.

Mining these four types of data will uncover insights into your customers and understand the steps they take to make a purchase. At MarketingSherpa, we recently launched our annual Email Marketing Benchmark Survey to identify the barriers that exist in preventing subscriber engagement and the best practices to increase the velocity and accuracy of email communications. I encourage you to participate to help us learn more from marketers like you who are in the trenches, battling for relevancy every day. In exchange for your valuable time, we will provide you a complimentary copy of our Special Report: CMO Perspectives on Email Deliverability.

Related sources

Email Deliverability: How a marketing vendor with 99 percent delivery rates treats single opt-in lists vs. double opt-in lists

Email List Growth: Finding low-cost and no-cost ways to grow your database

Email Marketing: Three lessons learned at the MarketingSherpa Email Marketing LEAPS Advanced Practices Workshop

New Chart: Most effective email list growth tactics

B2B marketers are increasing their investments in inbound tactics. Don’t just take my word for it. When we surveyed 935 of your peers for the MarketingSherpa 2011 B2B Marketing Benchmark Report, 60% said they were increasing investment in virtual events and webinars.

But what does it take to produce an effective webinar? A virtual event that will grab people’s attention and encourage them to leap into your funnel, as opposed to check their email while you ramble on?

At MECLABS, we produce some pretty popular webinars. I’m not trying to brag about our crazy webinar skills. The truth is, we invest a lot of resources in these. And that’s why they’re good.

So when webinar director, Austin McCraw, presented me with an org chart of the roles that we fill during the average webinar, I thought it could be very useful to the MarketingSherpa audience.

Now, when I saw we invest a lot in these webinars, these are not full-time employees dedicated solely to webinars. Webinar director is not Austin’s official title. And on one webinar or another, I’ve filled every role we’re about to discuss. You will very likely have one person fill more than one role.

But I think this org chart may be helpful to you because it gives you an idea of all the bases you should consider covering for a successful, interactive webinar with your audience.

Producers

In Hollywood, the producer is the money man. The one investing in the film, but also ensuring it makes money (or, in Mel Brooks’ “The Producers,” loses money).

In the marketing world, the producers are likely marketing managers, product managers, and business leaders that fund the webinars with their marketing budgets, and seek to generate profitable leads or valuable lead nurturing from the webinars.

It is crucial to ensure producers are involved in the entire webinar process, so everyone is clear on the goal for the webinar and the value your company expects to derive from it.

Director

You don’t need Spielberg, but you do need one central decision maker. Webinars are live productions, and as with any live event, (even when it is virtual) things can and do go wrong. You need someone who is quick on their feet and has the guts to be able to call the tough shots. Your Internet connection died. The slides aren’t advancing. The audio isn’t working. What do you do? Quick, you have 12 seconds to decide before your audience starts dropping off the webinar.

Writer/Stage Director

A good webinar is filled with well-thought out content that guides your audience through a logical thought sequence, much like a film or story would. You need to not only create that content, but prep your presenters for exactly how to deliver it. Virtual stage blocking, if you will.

Technical Director

You can’t host a webinar without technology. And as with any technology, it helps to actually know how to use it. You’re far less likely to have a Skype chat pop-up that reveals company secrets live to the audience if you actually know what you’re doing and don’t have to ask “what does that red button do?”

Our setup for the MarketingExperiments Web clinic is quite complex, complete with a mixing board, handheld and wireless microphones, and an Apple computer running Final Cut Pro to capture the live audio for our Web clinic replays.

You don’t need to go to this level. But you do need to know, or have someone who knows, how to actually use the webinar platform.

Audience Supervisor

Sure, you could drone on for an hour about all the features and benefits of your product. Or, you could actually respect your audience (and capture their attention), by including them as much as possible in the webinar. That is, after all, the benefit to your audience of taking an hour from their busy day and actually attending a live event.

The audience supervisor not only tries to maximize interaction points with the audience, but also monitors the audience’s feedback and reactions to constantly make the course corrections needed to optimize the performance while the webinar is being conducted.

A good speaker naturally does this before a live audience, gauging the reaction – from boredom to engagement – and changing the presentation as she goes. This is harder, but not in possible, in a virtual event, so your presenters are going to need a little help and guidance.

Main Presenter

The main presenter is essentially a moderator. Someone who can act as an advocate for the audience. He’s Ed Sullivan, Johnny Carson, Oprah Winfrey, Terry Gross, Bill Maher, Ira Glass. The kind of person that can relate what a technical expert is saying to novice listeners.

Another important skill is the ability to tie disparate parts of the presentation together into a natural flow with well thought-out segues. And, with the audience supervisor’s help, tie in audience comments, questions, and other interaction.

All very naturally. All part of the flow. All part of the show.

Presenters

Your practitioners and subject matter experts are why people tune in to being with. But they’re not necessarily expert presenters. And that’s one reason why you have everybody else in this org chart. To support these guys…your well-coddled stars.

The main presenter may certainly well be one of your subject matter experts or practitioners, but it takes the right set of skills and the right personality to pull both roles off well.

Monitors

The monitors support the audience supervisor and, based on your resources, they all may be one and the same. They engage with your audience using virtual platforms – responding to questions, probing the audience for feedback and interaction, providing supplementary resources, and solving problems. We’ve found that the Q&A function in the webinar platform, along with a hashtag on Twitter, are good platforms for interacting with our audience.

You should also have a technical monitor making sure the audio and slides of the webinar are streaming well and actually working. It could be someone in a different room or even a different city. Your other monitors should pick up on this if they’re listening to audience feedback, but it never hurts to know something isn’t working before your audience starts complaining.

Related resources

Marketing Webinar Optimization: Five questions to ask yourself about webinars

New to B2B Webinars? Learn 6 steps for creating an effective webinar strategy

Free webinar, Wednesday, July 20 — Copywriting on Tight Deadlines: How ordinary marketers are achieving 200% gains with a step-by-step framework (educational funding provided by HubSpot)

Free webinar, Thursday, July 28 — How to create engaging content for successful lead generation

Update: All MarketingSherpa newsletter articles are now permanently open access.

Several weeks ago I had the chance to speak with Jon Miller, Marketo‘s Vice President, Marketing, and co-founder of the company. Our talk was extensive and covered Marketo’s entire marketing process and philosophy, and the main result was a MarketingSherpa B2B newsletter case study (members library).

Even though the story was extremely in-depth and revealing in covering the marketing automation company’s practices — so much so that when my editor tweeted the story he wrote, “#B2B Marketing Strategy: Revenue-oriented approach leads to 700% two-year growth http://j.mp/lWT7PS @jonmiller2 opens up the kimono” — not everything Jon and I discussed made it into the case study.

One result of the extra material I have on hand was a popular MarketingExperiments blog post on testing form field length, and a second result is today’s SherpaBlog post going into more detail about Marketo’s cost-per-lead across its prospect generation efforts.

It’s a prospect, not a lead

Even though “lead generation” and “cost-per-lead” are something of industry terms of art, Jon explained to me that Marketo has a rigorous naming system for its eight-stage buying cycle, or what it calls a “revenue cycle:”

1. Awareness

2. Names

3. Engaged

4. Prospect

5. Lead

6. Sales lead

7. Opportunity

8. Customer

For someone to move from “engaged” to “prospect,” they must visit Marketo’s website and either fill out a form or download content. At this point they undergo demographic lead scoring. Using this scoring, Jon says a prospect is, “the right kind of person at the right company.”

Marketo defines a “lead” how most companies might identify a marketing-qualified lead, so at Marketo “prospects” are in effect its traditionally defined leads. Confused yet?

This chart takes a look at Marketo’s prospect generation metrics for the last two quarters of 2010. You will notice above the line are efforts Jon pays some marginal cost for and each includes its cost-per-lead. Below the line are Marketo’s non-marginal-cost inbound marketing efforts.

Click to enlarge

Virtual beats traditional in trade shows

Virtual trade shows stand out in this list because they create the most prospects at the lowest cost-per-lead. In fact, the figure on the far right of this chart, lead-to-opportunity index, is calibrated to the virtual trade show statistics.

“For us, virtual trade shows work great,” Jon says. “You get the database really cheap and they become leads, too.”

He adds that pay-per-click advertising has a fairly high cost-per-lead, but they also convert to opportunities at a high level at the highest velocity (in terms of least days), and they almost double the closest conversion-to-lead figure. It is worth it to Marketo to spend the extra cost-per-lead money on PPC ads.

The worst overall performing tactic on the chart is the traditional trade show. These events have the highest cost-per-lead by a long shot and don’t offer a strong conversion-to-lead number, and the strong lead-to-opportunity conversion ratio doesn’t offset the weaker stats.

Based on this information from last year, Jon told me he plans on cutting back on traditional trade shows this year and is spending that money on traveling to captive event road shows.

Inbound rising …

One very interesting aspect of Marketo’s prospect generation chart is the performance of its non-marginal cost inbound marketing tactics. Across the board they meet, and often greatly exceed, the baseline lead-to-opportunity index. Velocity and conversion-to-lead also compare very favorably for most tactics.

And the cost-per-lead for these inbound efforts? Effectively zero.

What lead generation tactics do you find successful? Do you track the success rate and bottom-line impact of your inbound efforts? Let us, and your peers, know what you think in the comments section.

Related resources

Lead Gen Overhaul: 4 Strategies to Boost Response Rates, Reduce Cost-per-Lead

Custom Landing Pages for PPC: 4 Steps to 88% More Leads, Lower Costs

Lead Generation: How to get funding to improve your lead gen

Social Media Marketing: You value (and earn ROI on) what you pay for

Lead Marketing: Cost-per-lead and lead nurturing ROI

Search Engine Marketing: Finding appeal for your PPC Ads

Social Media Marketing Research: Rolling up my sleeves and getting social

I’ve been thumbing through the just-published MarketingSherpa 2012 Search Marketing Benchmark Report – SEO Edition. This thing is so hot-off-the-press that my fingers hurt.

There is a massive amount of analysis in this book, but one theme immediately jumped out at me: SEO thrives on content, and content does not come easily.

Below we have some great advice for jump-starting your content creation, but first let’s look at a chart ranking the top SEO tactics used today.

As you can see, content creation sits comfortably on the top with 92% of SEO marketers saying it is at least somewhat effective and 50% saying it is very effective. Keyword research comes in second with 87% saying it’s at least somewhat effective.

The other side of the content-coin is that it is also one of the most difficult tactics to execute. Here (pulled from another chart in the report) are the three most-difficult SEO tactics:
1. External link building
2. Content creation
3. Blogging

These three tactics are as intertwined as DNA. Nothing I know of will generate more high-quality links on a consistent basis than good content that is published regularly. And more than 50% of SEO marketers use blogs to create content, according to the report.

Blogging results in six months

Even though creating content is the most effective SEO tactic, it comes in sixth in terms of popularity with 60% of marketers using it. This disconnection could be due to the difficulty of creating content, and I recently heard a great example of how to simplify the process and get started.

Marcus Sheridan, Co-Owner at River Pools & Spas, had some great advice at our recent Optimization Summit on how to dive into content creation (Dive! Get it?). Sheridan outlined the simple tactics he used to blog his company’s website into the world’s most popular swimming pool site in terms of traffic.

Here are tactics he suggested for establishing a traffic-building blog:

Tactic #1. Answer prospects’ questions

First, gather everyone in your company and ask them to list the top questions they’ve received from prospective customers. Write down a list of 50. Those questions are the titles of your first 50 blog posts.

“As a pool guy, as soon as someone calls us on the phone, what do they ask? What do they ask in every industry? — How much does it cost? That’s the first question all the time,” Sheridan said.

So Sheridan’s first blog read: “How Much Does a Fiberglass Pool Cost?“.

Tactic #2. No, really answer their questions

Some companies are afraid to answer questions about price or to directly compare their products to alternatives (which is another popular question). Sheridan urged companies to overcome their discomfort. Prospective customers are asking these questions, regardless. Who would you rather have answering them?

“We can’t be afraid to talk about anything that the customer wants to talk about; the good, the bad and the ugly,” he said.

Tactic #3. Two posts per week for six months

Once you gather questions from your team — keep everyone involved. Get them excited about writing a blog post to answer a question. Divide the work across the company and set a strict schedule.

“If you set 50 titles and you do two per week, then you have 25 weeks’ worth of blog content. Within that six months time, everything will start to change for that company and that business and the traffic they’re starting to get on their website,” Sheridan said.

Related resources

MarketingSherpa 2012 Search Marketing Benchmark Report – SEO Edition

Optimization Summit: Tests with poor results can improve your marketing

Members Library – Optimization Summit 2011 Wrap-up: 6 takeaways to improve your tests and results

Yahoo! Mail, Gmail, AOL and similar providers track senders’ reputations by IP address. This is partly why sending emails from dedicated IPs (instead of IPs you share with others) is the most effective tactic for improving deliverability, according to the MarketingSherpa 2011 Email Marketing Benchmark Report.

Many smaller companies, though, cannot manage a dedicated IP well enough to build a strong reputation and are better off using shared IPs, says James Thompson, Email Systems Manager, Infusionsoft.

“What we found is that most small businesses really don’t have the resources to be able to dedicate the kind of attention and maintenance required to maintain a good status on a dedicated IP,” he says.

Thompson oversees the sending of about 40 million emails each week for clients at Infusionsoft, a marketing automation software provider that caters to small businesses. He is tasked with maintaining the email architecture and deliverability for clients across the system.

Thompson has been through the trenches of email deliverability and helped to pull the company’s average delivery rate from the mid-90-percent range two years ago to consistently above 99 percent today.

Thompson shared several stories on how his company handles deliverability. His examples can help email marketers of all sizes understand how their reputations can extend beyond webmail providers and ISPs and begin to affect their relationships with agencies and vendors.

Three tiers of email IPs

One of many changes Thompson’s team made to improve deliverability was to shift its email architecture onto a message management platform. The new platform allowed the team to establish three groups of IP addresses to send from:

Group #1. Transactional emails

This first group of IP addresses was used to send invoices, order confirmations and other transaction-based emails for Infusionsoft’s clients. Thompson’s team wanted to isolate these emails because they had some of the best performance metrics of any email type, and because getting them delivered was critical to Infusionsoft’s clients.

Group #2. Single opt-in lists

This group of IP addresses was reserved for client lists that were built using unconfirmed- or single-opt-in tactics. The team isolated this group because its lists generated a higher number of spam complaints. Grouping them would prevent the complaints from hurting the reputations of IP addresses that sent emails to more qualified lists.

Group #3. Double-opt-in lists

This final group of IP addresses was reserved for email lists that were generated with confirmed- or double-opt-in tactics. These lists generated fewer problems than single-opt-in lists, and therefore benefitted by being associated with each other rather than with lists of lower quality.

Why this matters:

Thompson noted that the delivery rates between Group 2 and Group 3 originally differed by as much as 5 percent, but is now down to about 1 percent.

“However,” he says, “we are talking about averages here on millions of emails, so that does add up.”

So even if your company is relying on a shared IP address from a provider, it can still be in the best interest of your deliverability to build high-quality lists with confirmed opt-ins.

Three strikes and you’re out

Thompson’s team realized it had a few bad apples in the barrel when it began work to improve delivery rates. The team reached out to clients who were hurting the sender reputation of Infusionsoft’s IPs and tried to enlighten them on the issue.

“What we have come to find is that most of our customers who generate these spam complaints don’t necessarily understand or aren’t aware that their practices are abusive,” he says. “So essentially what the solution has been is to work with them, give them a set of criteria to meet, and then the problem is usually resolved.”

Unfortunately, not every situation was resolved. Some clients were unable to make the necessary changes and the team had to let them go to protect the reputations of other senders who used the system responsibly, Thompson says.

Now the team has a three-strikes system for handling clients that generate a high number of complaints.

“AOL, Yahoo!, MSN and those types of companies want to see average complaint rates of about 0.1 percent,” Thompson says. “So that means for every 1,000 emails we send, they only want to see one person complaining.”

Thompson’s team uses this same guideline when monitoring its system. Senders who regularly generate two or three complaints per 1,000 emails sent (0.2% or 0.3%) are given suggestions to improve their practices. Clients who fail to respond or make changes can be asked to leave (though this is rare).

So if you’re using a shared IP address to send email, the impact of a complaint can extend beyond your email program and even begin to impact your relationship with your marketing vendor — so keep those rates down!

Related resources:

Members Library – Email Marketing: How Publishers Clearing House uses “blacklisted” words yet achieves a 99.2% delivery rate

Members Library – Webinar Replay — Improve Email Deliverability: Tactics for Handling Complaints and Boosting Reputation

Email List Hygiene: Remove four kinds of bad addresses to improve deliverability

Email Deliverability: Riddles answered on spam complaints, feedback loops, and dedicated IPs

Message Systems – the message management platform used by Infusionsoft

While digital marketing and social media are all the rage (and rightly so), there are a number of reasons for B2B marketers to use teleprospecting as a foundational element of their lead generation strategy.  In fact, for those marketers who don’t own the teleprospecting function, here are nine reasons you should.

If you are trying to reach prospects who won’t spend more than $10k to $15k per year for your products or services, then using the phone for lead generation will probably not prove economically viable. You need to use lead scoring and route those leads to an inside sales team or your indirect channel.

If you have higher value deals, teleprospecting can be a valuable tool.

It is especially useful for pilots. Consider these four ways you can use teleprospecting in a pilot scenario:

1. Conduct end-to-end lead generation. Teleprospecting can function as an end-to-end lead generation capability. That is, you can generate demand and then qualify and nurture leads all within the teleprospecting function. That means there are fewer moving parts. For those marketers that need to demonstrate the potential of lead generation, fewer moving parts simplifies measurement and coordination issues.
2. Leverage small sample sizes. The conversion rates are usually much higher with teleprospecting than with other forms of contact so the sample size can be much smaller. This factor is especially helpful if you want to focus on large accounts where the deal sizes are often large and the number of accounts to call is low.
3. Gain valuable market feedback rapidly. You can get on-going quantitative and qualitative market feedback. If you have digital recording technology, you can even hear exactly what customers are saying. I love statistics. But sometimes, to more deeply understand market behaviors and attitudes, you must hear how potential customers respond to your value proposition. In fact, even if you can’t conduct a statistically valid test, you can use teleprospecting to get directional indicators and then leverage more scalable media.
4. Experiment. Because of this depth of feedback, you can experiment extensively with targeting, messaging, cadence, and integration with other channels and then make rapid course corrections.   For example, you can test leaving voice mails or not, the timing of calls and emails for both lead follow up and for lead generation, the interplay between phone and email, and much much more. This is a factor that is inexplicably under leveraged by B2B marketers.

Measure the ROI

Let me add a final word about measurement in a pilot.  From an executive standpoint, there are two ways to measure the financial benefit of teleprospecting:

1. As a tool for qualifying and nurturing leads. The issue is whether the added cost is worth it.  The simple equation would be this:

ROI = (cost of generating inquiries + cost of teleprospecting + sales costs)/revenue from the qualified leads.

That will give you an expense-to-revenue ratio that your CFO will appreciate. The reason to include sales costs is because the quality of leads can either increase or decrease sales productivity.

2. As a demand-generation channel. In this case, you are looking at teleprospecting as one of many ways to generate demand and so you’re trying to see where it works best so that you can allocate sufficient budget to it relative to other choices.  The simple equation would be this:

ROI = (cost of teleprospecting + sales cost)/revenue from the qualified leads

If you were integrating outbound teleprospecting into other forms of outbound contact (e.g., following up a direct mail package with a phone call), then you would need to include the costs of all of the integrated demand generation channels.

You may need to estimate sales costs.  One way to do that is to set up a control group that gets leads and one that does not.  You can then get sales budget numbers for each group.   

Make sure the lead volume uses as much of the sales capacity of the test group as possible.  Then you can simply measure the revenue difference between the two groups.

The good news is, it’s not uncommon for teleprospecting to yield at least 20 dollars of revenue for every dollar of investment. So the ROI is often outstanding.

Related Resources

Lead Generation: 4 critical success factors to designing a pilot

Lead Generation: How to get funding to improve your lead gen

Lead Marketing: Cost-per-lead and lead nurturing ROI

B2B Lead Generation: Why teleprospecting is a bridge between sales and marketing

I’m sure you’ve seen these blog posts before. They’re looking for a hook, so they throw a topical subject in the title to get you to click, and then share the deep marketing wisdom that you would naturally expect to learn from Charlie Sheen, The Bronx Zoo Cobra, and Justin Bieber.

I thought of this topic the other day because we actually did something I just knew we would never do on MarketingSherpa. We published those two proper nouns – Justin and Bieber – right next to each other.

In fairness, it was in an excellent email marketing case study about a very impressive trigger alert program, and Justin Bieber was only used as an example of search keywords this events company was targeting. But you better believe Senior Reporter Adam Sutton endured a relentless week of teasing for including the Biebs in his case study. There were the Photoshopped pictures. There were “Belieber” taunts.

Why? Because, and here is my indefensible blog post (with a hearty tip o’ the hat to Esquire magazine), marketers can’t learn anything from Justin Bieber. Or Lady Gaga. Or that kid who got his 15 minutes of fame for pretending to be in stuck in a weather balloon.

Think about it, what are 3 lessons from Charlie Sheen? 1. Be born to a famous dad. 2. Get a formulaic but highly rated sitcom. 3. Have an extremely weird but very public meltdown (using social media)

Does this really help your marketing campaigns? Get some ideas to generate more leads? Increase sales?

So, here’s the approach we take at MarketingSherpa. Perhaps the best people to learn marketing lessons from are…wait for it…actual marketers. That’s why we survey more than 10,000 marketers every year for our benchmark reports. That’s why we conduct more than 200 interviews every year for our free marketing newsletters. That’s why we invite dozens of marketers to present their case studies to their peers at our summits. And that’s why I’m writing this blog post today.

So, if I had to break down five marketing lessons I’ve learned from marketers, I would say…

1. Successful marketing comes from hard work, not “secrets” and “tricks”

Internet marketing is flat out hard work. The successful marketers I’ve seen go-to-market with a regimented marketing plan.

They understand what KPIs are key to their success – both the intermediate metrics that will help them make course corrections, as well as the key results that are critical to their business leaders.

They find ways to tear down artificial silos in their organization – between Sales and Marketing, between online marketing and offline marketing, between email marketing and social media marketing – to facilitate a cohesive funnel that drives customers to conversion.

They tame unwieldy, disjointed technology platforms to create tools that improve marketing campaigns and create clear, unified reports. They do this even though they don’t have a tech background. They do this even if it means having long conversations with IT about why Ubuntu is better than Windows.

But they don’t have “secrets to Internet marketing success.” And they don’t have “10 supercool tricks to boosting SEO.” They have war stories. And if you can get just a few minutes in their busy day to hear them, you just might learn something.

The battles are won in the trenches.

2. Your customers don’t care about your emails, your PPC ads, or even your TV campaign

They don’t even care about all that fun inbound stuff like your blog posts or YouTube videos. And they certainly don’t care about the latest features of your product, your mission statement, or your corporate structure.

They care about doing their jobs better. They care about having clean water for their kids. And they care about taking their wife out for a 12^th anniversary dinner that she’ll never forget.

Never confuse a feature with a benefit. And never confuse a marketing “benefit” with what really matters to your customers.

3. Successful marketers have losses

This is marketing, folks. You don’t have to be one of the “crazy ones,” but you do need to push the limit on what your company thinks is possible.

As Theodore Roosevelt said, “There is no effort without error or shortcoming.”

If you don’t have losses – a “negative lift” on a test, a failed product launch – you’re not pushing hard enough. And if you don’t have losses, you’re not really learning anything. You’re just guessing.

The great thing about digital marketing is that it has never been easier to learn about your customers. You’ve got real-time data you can analyze and an endless possibility of tests you can run. Test two headlines you simply can’t decide between, two offers, two entirely different approaches against each other in a real-world, real-time environment and let your customers tell you which one is better. Test new landing pages against your top performers.

Sure, it’s scary, you might lose. But if you do it right, you’ll definitely learn.

4. Strategy is better than skill

This is something that I’ve heard Dr. Flint McGlaughlin, Managing Director, MECLABS, say in almost every meeting I’ve had with him. Drill it into your team as well.

Marketers are all too used to having a goal placed in front of them – double leads, gain market share – and churning and burning and blasting and using every tool they can think of to hit that number. Just…one…more…email send…will do the trick.

Sometimes it helps to step back and look at the big picture. Is it worth scrapping and fighting for a tenth of a point of market share with your fiercest competitors? Are you inundating your lists with offers?

Take the time to step back from the marketing machine and determine what your value proposition truly is. Don’t dictate your value to your customers. Discover what they find valuable about your products and services. Why do they put their job on the line to hire your consultants? Why do they part with their precious cash to buy your products?

As with any job, you can work harder, or you can work smarter.

5. Be the customer advocate

As a marketer, you spend almost every waking moment making a proposition to the customer. That makes every customer your customer. So make sure your company comes through.

Stay in constant contact with customer service, product development, services, manufacturing, and sales to make sure you are truly serving the customer. What are customers complaining about? What are you doing right? How can you make their lives easier, better, smarter, more fun, more fulfilling? Are sales reps over promising? Does everyone understand the value proposition of your brands? Do you all speak with the same voice? Do you walk the walk and live the brand?

Hey, that’s no easy task. But if you’re looking for easy tasks, you’re in the wrong business. See point #1 above.

Your customer is empowered like never before in the history of commerce. Today, you must assume that every customer is a publisher as well. How would you react if you knew the editor of The Wall Street Journal was eating in your restaurant, trying on a suit in your store, or purchasing your software platform? There is no quicker way to sink your brand and your marketing campaign, and the huge amounts of time and money you have invested in them, than by ticking off the editor.

You know what you expect when you’re the customer. Under promise and over deliver.

And to over promise to you, my audience, my customer, I dug up a sixth lesson. But instead of telling you one more thing I’ve learned from you, I asked author and behavioral expert, Beverly Flaxington, what she’s learned from marketers. Beverly has built her career around understanding other people. Here’s what she had to say…

6. Provide your audience the context

In too many cases, a marketer develops information and materials based solely upon the data and information about a particular product or service. The marketing material reads like this: “We do this. This is what we do. This is how we do it.” It’s a great deal of data without a lot of context around why it is important to the targeted audience.

The missing component is the “So what?” What’s so important about how you do what you do? Why should someone care about it? What is it going to do for them and how will it do it? This goes deeper than the idea of selling benefits. It actually asks the marketer to create language that speaks TO an audience about their needs, and helps that audience to easily make a connection as to why what the marketer is proposing is good for them.

As you develop materials or write marketing copy, ask yourself the “So what?” question as you make statements and provide information. Think in terms of “This is good for our audience because…..” The process can be very eye-opening because instead of assuming that someone will get why what you’re saying is so important, you can more likely guarantee they will understand!

Thanks for reading today’s blog post. Stay tuned to the MarketingSherpa blog next week, where we’re going to talk about what marketing lessons you can learn from Michele Bachmann, New Mexico wildfires, and Greek debt.

Related Resources

Evidence-based Marketing: This blog post will not solve your most pressing marketing challenges…yet

Loyalty Marketing: How to get customers to stick around (and keep buying)

The Last Blog Post: How to succeed in an era of Transparent Marketing

The Last Blog Post: Marketers must embrace change

A common challenge we’ve heard at our Email Marketing Workshops is that marketers want to know how to effectively grow their email lists. This was true at the Seattle and Boston workshops, and I expect it will continue through Washington, New York, San Diego and Austin.

One tactic we describe is how to leverage existing channels between your brand and your audience to grow your list. Marketers can study how their audiences receive information from their brands and test adding an opt-in request to those channels.

For example, the New York Public Library used its transactional emails to grow its list. The library already sent automated emails to remind patrons that books were due. The marketers tested a simple addition to these emails:

“Get the latest NYPL news and events. Sign up for our newsletter at: [shortlink].”

This two-sentence request increased the library’s opt-ins by 120%.

More than transactional emails

I really like the above example. It shows how a simple idea in an existing channel can grow a database at nearly no cost.

Your company is not likely to be a library, but this idea extends beyond late notices for books. I saw another example while flying to our Email Workshop last week.

I took this picture on a Delta flight from Memphis to Seattle. I was poking through the touch-screen personal television at my seat and noticed, lo and behold, that Delta wanted my email address. As you can see in the second sentence, the page does a good job of emphasizing the value I’ll receive by handing over my information.

Here’s the next screen:

I am not very sharp on the history of in-flight televisions, but I assume these screens were not installed solely to collect travelers’ email addresses. Instead, I assume that the opt-in request was added later at the suggestion of a clever email marketer. This is another example of a company leveraging its existing channels of communication to build its list.

Look for relevant audiences

In our Email Marketing Workshop, we spend the first half of the list-growth section emphasizing the importance of list quality and how it can be improved. We really hammer on the point that the size of a database is not as important as its quality.

For example, a large database that is loaded with disinterested subscribers is not going to help your marketing nearly as much as a smaller database with subscribers who are interested in your content and offers. You want high-quality subscribers who enjoy receiving your emails and clicking your links.

One way to help build a quality database is to invite only relevant people into your email program. The two examples mentioned above do just that.

• The New York Public Library’s transactional emails reached people who had books checked out. These people had visited the library, so they might have been interested in receiving news about the organization.

• Delta reached people in-flight on a Delta plane. These people were travelers, and they traveled with Delta, so they might have been interested in receiving offers and updates from the airline.

So when you’re looking to your existing channels to help grow your list, be sure to test the channels that reach the most relevant audiences for your email program. You don’t want to invite just anyone into your database. You want to build a high-quality list.

Related resources:

Email Marketing LEAPS Advanced Practices Workshop

Members Library — Growing Email Lists with Social Media: KFC’s Facebook tool adds subscribers

New Chart: Most effective email list growth tactics

Maximizing Email List Growth: How the New York Public Library drove a 52.8% lift in newsletter subscriptions

Email Marketing: Three lessons learned at the MarketingSherpa Email Marketing LEAPS Advanced Practices Workshop

B2B Marketing: Building a quality list

In my last blog post, I talked about getting funding by framing a strategic lead generation initiative properly for the sponsoring executive. Let’s talk about the first step on the road to an improved lead generation capability –  configuration of a pilot.

While there is an infinite number of ways to develop a pilot, a well-designed pilot depends on:

• The current gaps in your lead generation machinery
• Perceptions of lead generation in the C-Suite,
• The risk appetite of the company
• And your own credibility.

These four guiding principles, however, can help you scope a pilot in a way that leads to long term-success:

1. Start where the economics are most forgiving.

There are two big economic factors to keep in mind when designing a lead generation pilot.

The first is the deal size (or annual recurring revenue or lifetime value). The smaller the deal size, the lower your lead costs must be. Getting to a low cost per sales-ready lead takes a great deal of efficiency and scale. So why target a market where you must be highly efficient to have success?

The second economic consideration is probability of purchase. Customers, for example, are typically more likely to buy something else from you than non-customers are. There may be vertical markets or other segments where your products or services have a better success rate. Responders are more likely to buy than non-resonders. The higher the probability of purchase, the higher your conversion is going to be and the lower, therefore, your average deal size can be.

Combining a high potential average order size with a high probability of purchase gives marketers the most room for mistakes and course correction.  So play it safe.

Action item: Start with the most probable segment where you can sell big ticket items so that you have lots of room to experiment and course-correct and then test and iterate your way to the margins of your market.

2. Keep it simple

Lead generation has gotten very complex. You are not going to be able to optimize everything at once. So don’t try. Instead, tackle things in stages and look for ways to narrow the scope: fewer sales people receiving leads, a single solution area and/or market segment, and so on.

Action item: Once you determine where the low-hanging fruit is, figure out how to narrow the scope of what you’re doing so that it manageable by clarifying the objective and using that objective to simplify the pilot.

3. Make the pilot long enough for course corrections

Too often, marketers do not give themselves the room to learn and improve. New teleprospecting reps, for example, need 30 to 60 days to get reasonably good at what they do, and that’s assuming you have the right playbook and training to give them.

You may need time to see what competitors are doing, analyze online traffic patterns, refine your service level agreement with Sales for the pilot, or any other of a number things. But most importantly, pilots should be experiments in optimization so give yourself long enough to:

• a) course correct
• b) sample properly
• c) gather sufficient results.

And the longer the buying cycle, the longer it will take to get more definitive feedback on the outcome of the leads. And the lower the traffic, the longer the test must continue to gain sufficiency to project the results with the necessary confidence level.

If possible, make the pilot last for an entire fiscal year with the understanding that you’ll come back to management sooner if possible with a plan for scaling the initiative. That way, you won’t have to go “dark” while management decides on the speed of scaling your lead generation initiative and you’ll have plenty of room for testing and optimizing and tracking results.

Action item: Develop a conservative timeline that shows key milestones at particular stages. Make part of the deliverables of a milestone or two the new knowledge the company will have about optimized lead generation processes.

4. Base the measurement of the pilot on what you can control .

While you ultimately want to drive revenue, you can only control the quality of the leads you give to sales people…not what they do with those leads. So only promise the executive stakeholder(s) that by the end of the pilot, you will give salespeople what they ask for at least 75 percent of the time (90 percent or higher is possible).

You can and should refine your customer profile and lead definition and perhaps even the follow up and reporting processes. That’s what the pilot is for, in part. With enough experimentation, you’ll get to a definition that works for sales and that marketing can deliver consistently and scale.

Action item: Collaborate with sales on an ideal customer profile, a lead definiton, and the follow up and reporting requirements you will need in exchange.

Lead generation is a set of capabilities, processes and practices that you can always improve. So it’s a never-ending journey. And these four design principles will give you the best opportunity for that kind of long-term success.

Related Resources

Lead Generation: How to get funding to improve your lead gen

Lead Marketing: Cost-per-lead and lead nurturing ROI

B2B Lead Generation: Why teleprospecting is a bridge between sales and marketing

Lead generation: Real-time, data-driven B2B marketing and sales

Originally published on B2B LeadBlog

When Brian Carroll and I present webinars on adding the human touch to lead nurturing, like the ones last month for the B2B Lead Roundtable and Marketo, we inevitably get these questions:

“How often should we call? How often should we email? What should we do first?”

The last question always guides me to the best responses for the first two. That’s why I always call the prospect before sending an email.

First, a phone conversation is a prime opportunity to gain opt-in. You can hear Brian and I role play how it’s done at timestamp 47:34 in the webinar replay from the B2B Lead Roundtable event. Listen in and you’ll be surprised at how natural it is to gain permission to send more information, which, of course, requires an email address.

Second, emails cannot do discovery. An email can’t tell you:

• Whether recipients are influencers or decision makers
• Their roles in the company
• What they’re most interested in knowing
• Their buying process

In contrast, a thoughtfully planned conversation is the ultimate discovery tool. It can reveal the answers to all of these points so you can identify the best:

• Follow-up cadence and frequency: You’ll know their buying cycle and how to ideally align contact — phone calls and emails — to it.
• Content: You’ll know what they care about and why, that’s the knowledge you need to create emails that are meaningful to them.

Third, real-life conversation is the best way to build connection. Thanks to your conversation, prospects will be looking for your email and will be more likely to open it because they know it will have content they can use. Your relationship will be off to a flying start. And, remember, whoever has the strongest relationship ultimately wins the sale.