MarketingSherpa Blog

The answer from one marketing automation vendor might surprise you.

During an interview with Kristin Zhivago, President Zhivago Management Partners, for a Sherpa B2B article, Guided by Buyers: Four tactics to create a customer-centric sales and marketing strategy (members’ library), she mentioned that marketing has undergone a sea-change in focus from 80% creative and 20% logistics in the past, to today where those numbers are exactly flipped. I recently had the chance to speak with Phil Fernandez, President and CEO Marketo, and a 26-year Silicon Valley vet with a present and past riddled with marketing software companies. I guessed this “80/20 rule” was a topic right up his alley.

We covered a wide range of marketing subjects, and in passing I mentioned the 80/20 rule presented by Zhivago and Phil immediately offered his opinion on the topic. We didn’t want to sidetrack our talk at the time so I told Phil we’d get back together and revisit his thoughts. This quick interview is the result.

A surprise that opens a debate

Phil’s answer was more than a little shocking coming from a marketing automation guy, and not an agency, since he sells data and logistics … or so I thought. Read on to find out what the CEO of Marketo thinks about the art of marketing versus the science of marketing.

His response opens a debate on the state of marketing today — is it more data- or creative-driven? We’d love to hear your thoughts on this topic in the comments section.

During our conversation a few weeks ago, I mentioned that Kristin Zhivago told me marketing once was 80% creative and 20% logistics and data-driven, and now that number has flipped to where logistics and data make up 80% of a marketer’s world and creative is only 20%. You strongly disagreed. Tell me why.

Phil Fernandez: At Marketo, we obviously evangelize marketing automation and analytics as critical components to drive significantly better marketing performance and ultimately greater revenue growth. I regularly advise corporate management to embrace a more metrics- and data-driven sales and marketing culture – what I like to call “hard marketing.”

So it may come as a surprise, especially from the CEO of a leading technology company that builds products for marketers, that I fundamentally disagree with the premise that marketing has flipped to a world where creative is only 20% of the craft of marketing.

There is no question that the sophisticated marketing automation and analytical solutions available today, such as Marketo’s, are imperative for successful marketing. However, it is incorrect to suggest that the adoption of technology solutions has made creative less important. In fact, I’d argue that the creative side of marketing is more important than ever! Why? Two reasons, one tactical and one strategic.

Tell me more about why the creative side of marketing is more important than ever.

PF: First, we need to look at how marketing automation (“MA”) tools are changing the job of the marketer. In particular, MA solutions help the marketer to implement a key new business process called Lead Nurturing. In Lead Nurturing, it is the job of the marketing professional to engage across channels and develop a relationship over time with each and every prospective buyer for their product or service. They work to educate the buyer, to assist them in their independent research, and to stay top-of-mind for that magical moment when the buyer is ready to make a decision.

And what is the single most important factor in implementing an effective Lead Nurturing program? It’s content. If a marketer is going to stay in touch with prospective buyers over time, helping to educate them and build trust and awareness, the marketer must deliver a stream of compelling, persuasive and brand-reinforcing content. Effective Lead Nurturing initiatives need a continuous stream of new content to stay fresh and relevant, and the most common reason why MA initiatives fail is a company’s inability to create enough content to build a trusted relationship with prospective buyers.

What defines an effective marketing automation system?

PF: The goal of effective MA solutions needs to be to make it fast and easy to do the logistics and data-driven parts of the job and then fade into the background, so that the marketer has the time to focus on the critical process of creative development.

More strategically, the relationship between buyers and sellers has fundamentally changed with the emergence of the Internet, Google, and more recently, the whole world of social media. The buyer has taken control of the process and only “listens” when and where he/she wants. And we all know that the Internet and social media world is a pretty noisy and chaotic place. This shift has greatly elevated the need to break through with creative, compelling content and big ideas – it’s the only way to get buyers to listen.

As a result, the art of marketing (communicating your brand, creating awareness about your unique value proposition and creating marketplace excitement through big ideas) is even more important today than it was a decade ago. If your message and/or content are not resonating with potential buyers, they will purchase from competitors who have done a better job of connecting with them in a relevant, timely and compelling way. That’s why our own marketing team at Marketo spends a lot of time focusing on our brand strategy and developing “magnetic” content via our blogs, webinars, “Definitive Marketing Guidebooks,” videos, events, and yes – advertising.

So both automation tools and the creative side of marketing are important …

PF: Keep in mind, automation and advanced analytics provide marketers speed, precision, and powerful insights into revenue performance. They can even go as far as predicting the amount of revenue a marketing campaign will generate. However, it’s the creative that inspires someone even to consider what you are selling in the first place, and eventually (if you did your job effectively) to buy. Automation and advanced analytics such as we offer at Marketo, give a marketer more productive time to spend on developing compelling creative that will generate the greatest impact. By balancing the “science” of marketing with the essential “art” of the craft, successful marketers are able to accelerate predictable, expanding revenue across the revenue cycle.

Then, what do you think is driving the argument?

PF: As much as anything, it’s probably a factor of today’s technology-driven business environment, where there is an expectation that the right technology can solve pretty much anything. More broadly, since the Industrial Revolution, we have been conditioned to the idea that science and technology replaces the arts and crafts culture that came before it. And in lots of areas, like precision manufacturing, this has been true.

But the world of creating revenue is different. The art of marketing and the art of sales remain very much alive. The good news is that there is a tremendous amount of synergy to be had when companies get this right and the art and creative elements of marketing and sales are combined with hard science and technology that Marketo and others have created. It can seem like the Holy Grail to companies looking to generate more revenue more predictably.

Related Resources

Find Phil’s blog at Revenue Performance

B2B Marketing: What to look for in 2011

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

Inbound Marketing: Invest in content to generate leads

Lead Nurturing and Management Q&A: How to Handle 5 Key Challenges (Members’ library)

photo by Jennifer R.

Increasing your emails’ relevance is one of the most effective ways to improve results — but it is also one of the most challenging, and for a variety of reasons.

Sometimes the largest roadblock isn’t expertise, money or will power — but time. A marketer might know exactly what to do and how to do it, but first has to design the next landing page, create the next PPC ad, finish off some copy, attend a meeting, etc.

Sound familiar?

The good news is that this challenge does not come without opportunity. Simplifying part of your process can be the best thing you’ve done for your email marketing in months.

Production was a nightmare

For example, Brad Hettervik, Product Manager, Marketing Systems, Oversee.net, handles the email marketing at LowFares.com, a travel comparison site owned by Oversee. LowFares.com’s weekly email newsletter, Travel Insider, features travel deals selected from hundreds that are forwarded to Hettervik’s team by its partners.

Before the team streamlined the newsletter’s production, partners sent lists of deals in different formats and through different channels. Team members would have to:
o Manually gather the deals
o Go through the lists
o Check each deal by copy-and-pasting their URLs
o Copy the text of deals they would use
o Apply tracking codes to the URLs
o Create the email newsletter

“We select the top 20 to 30 deals out of potentially thousands of deals. So the production part of that was a huge nightmare,” Hettervik says. “It would take sometimes 15 hours,”

“Some of these deals expire in eight hours or 24 hours, so the speed is very important… [But] the production aspect was so labor intensive that if you wanted to add any more layers of targeting, the complexities got out of control” and some deals would expire before reaching subscribers, Hettervik says.

From 12 hours to 30 minutes

The team has since built an email tool in-house to simplify the process. It is a desktop application that pulls the week’s deals from each partner into a single interface. A marketer can click a check-box to select deals to include in the newsletter. Then, with a single click, it codes the URLs and generates the newsletter’s HTML.

The eight- to 12-hour process could easily be completed by an experienced marketer in 30 minutes, Hettervik says.

“Now that we’re not spending a full day or a day-and-a-half creating [each email], that has allowed us to get more analytical with our reporting…We are able to do a lot more targeting, a lot more testing and now it has actually helped us quite a bit in terms of delivering relevant emails to our user base.”

Related resources

MarketingSherpa Email Summit 2011

MarketingSherpa Email Essentials Workshop Training

Email Marketing: A customer-focused mindset at ATP World Tour

Email Deliverability: Getting into Gmail’s Priority Inbox

Watching my Jaguars opt for quiet, January Sunday afternoons at home with the family instead of getting pummeled by large men in Arctic conditions (who needs the playoffs, anyway?), I realized that sports is a great example of a product that I care about in a real-time fashion.

So, I asked Philippe Dore, Senior Director, Digital Marketing, ATP World Tour his thoughts about using email as a real-time marketing tool, as well as a few insights about the case study he will be presenting at Email Summit 2011 in Las Vegas, “Executing a B2C Campaign with a Small Team and Low Budget.” It was game, set, match, profit for the men’s pro tennis tour, with an impressive amount of revenue generated per send.

Here’s what Philippe had to say…

At Email Marketing Summit 2011, keynote speaker David Meerman Scott will be discussing real-time marketing. What do you think the role of email is in real-time marketing?

Philippe Dore: I am looking forward to hearing David’s keynote in Las Vegas on this interesting topic. Real-time marketing is becoming quite a buzz word especially with the explosion of social media and the availability of new tools today for marketers to “listen” and engage with their consumers in real-time. There is definitely a need for real-time marketing with email and successful marketers have already been taking advantage of it.

There are some really good examples, especially in my industry (sports). Most major sports league in this country capitalize on the ‘live’ moment and send merchandise email offers immediately following the completion of a significant event like the Super Bowl or NBA Playoffs. It works very well in our sports and entertainment industry where we capitalize on consumer passion.

We’ve done similar promotions here at ATP World Tour with real-time marketing emails after significant events. As soon as Rafael Nadal won Wimbledon earlier this year, we had a splash page on our website and an email was sent with “Nadal Wins Wimbledon – See Him Back In London This November.”

Another example is when our players qualify for our season-ending championships: “Federer Qualifies For London.” Those messages not only let the consumers know the news, but invite them to consume more content – whether it is buying a ticket for an upcoming event or simply read a special story or feature on our website. We catch them in the heat of the moment and that is a great thing.

We’re also looking at mobile/text alerts, which has great potential for real-time marketing.

In the case study you’re presenting at Email Summit 2011, you started with zero opt-ins, yet you chose to build your own list instead of buying a list. Why?

PD: Yes, having a clean list of fans who wish to receive our content is important to us. We prefer quality over quantity so we are not interested in purchasing lists. Our email program welcome message, a Marketing Sherpa award winner, even tells the consumers that we know what it’s like to get a lot of emails so we encourage them to “customize their email experience”! Not many marketers do that.

You derived $21.82 in revenue per message sent. I just want to clarify that for a moment because I think that’s quite phenomenal. That is per individual message sent. Do you think you could have achieved this kind of success with a similar campaign in a different medium, or is there an intrinsic aspect of email marketing that helped deliver this impressive response?

PD: This is another example of real-time marketing. The example you are referring to is from a triggered welcome message on opt-in. Not only did we get the person’s email and start the digital relationship, but we were able to capitalize on the moment and achieve a high conversion rate. Email was definitely the perfect medium for our campaign in this case.

And I’m guessing the cost to send each individual email message was significantly less than $21.82…so the ROI must have been quite impressive?

PD: Yes, our cost of sending is our regular email service provider (ESP) cost per message sent. All our emails campaigns are done in-house.

While we received many speaking submissions from agencies on behalf of client-side marketers, yours was one of the few that came directly from the marketer with a campaign that was performed entirely in-house. So, I’m guessing you’ve gotten your hands dirty, so to speak.

While many marketing VPs and directors focus on the big picture and leave the details to someone else, what tactical know-how do you think they should be careful not to overlook? What details would you advise a marketer with an agency to focus on?

PD: Yes, email marketing is still fairly new for us since we’ve only been doing it since 2008 if you can believe it. It is now an integral part of our digital strategy so I am staying close to it. We even had our CMO weighing in on subject lines last year!

Marketers should make sure to keep a consumer-focus mindset when doing email marketing. We do not send any messages that we would not want to receive ourselves. It is also important to look at metrics frequently and improve email after email.

Related Resources

Email List Reactivation Incentives: Gift cards vs. whitepaper vs. nothing

Email Marketing: Improve deliverability by deleting subscribers?

Email Marketing: Why should I help you?

Email Summit ’11: Tackling the Top Email Challenges with All-New Research, Case Studies and Training — Sign up today (1/14/2011) and get a $25 Caesars Palace gift card

So, how’s this for a business model? An “ongoing T-shirt design competition.”

Well, that’s the way Threadless keeps hip people in hip T-shirts. And with a business model like that, you need A LOT of engagement and interaction with your customers…key marketing buzzwords for 2011.

To get a behind-the-scenes look at how the online T-shirt retailer works its mojo, you can attend the “Growing Email Lists and Engaging Customers with Social Media” how-to panel at Email Summit 2011 in Las Vegas (January 24-26). Liz Ryan, Email Marketing Manager, Threadless, will be one of the panelists.

To give us a quick glimpse into the Threadless marketing machine (or, perhaps, marketing loom), Liz was kind enough to answer the following  questions…

Threadless has more than 1.5 million followers on Twitter. What can you possibly be tweeting about that’s so interesting?

Liz Ryan: We wouldn’t have much to say if it weren’t for our awesome community. The majority of our tweets focus on our community-submitted tee shirt designs, voting, and community events. We also of course tweet about any specials on pricing, shipping and new products.

Sometimes we tweet on things going on at HQ, live stream of a band playing in the warehouse, DJ or holiday party. Other times it’s an interview with our founder, Jake Nickell, an event we’re participating in, or a Threadspotting – celebrities in Threadless shirts.

Our marketing team has autonomy over the channels we manage. So there is a flexibility and authenticity to the way we manage social media. We tweet about what we want to tweet about without approvals, executive sign offs and strict calendars.

It’s collaborative in that email, social, public relations and advertising work together to make sure messaging is cohesive, but other than that we have complete control over our channels.

Part of your panel is about “…and Engaging Customers with Social Media.” When we hear about social media, we hear a lot about engagement. But how can marketers move customers beyond just engagement to action?

LR: Give them something to take action on.

As marketers, we’re used to pushing information at consumers. We have to change that dynamic and give them something worth pulling and something worth doing:

• Open dialog – At Threadless, we provide an opportunity to have an open dialog with the Threadless team and other community members and an opportunity to take action. That might mean buying a tee shirt, but we also place a high priority on inspiring our community to submit a design, or to vote on designs, or comment on designs, or blog, or come out to a stop on our tour, or post a photo.
• Incentives – We not only provide information about what’s going on with Threadless, but we give our community incentives to take action on promotions – whether it’s a giveaway on Twitter, trivia on Facebook, or responding to a blog post.
• Don’t micro-manage – We don’t micro-manage our community involvement on comments to each other regarding their work. We give our community the power and voice to be Threadless and they take it from there.

Threadless is a “community-centered online apparel store.” I got that information, by the way, from Wikipedia, which, of course, is also collaborative. Marketers are increasingly looking to leverage community-based models – from creating Super Bowls ads to creating, as you do, T-shirts. And, when you think community, most people naturally think of social media. But is an email list a community as well?

LR: Absolutely, email is the original social media. As email marketers, we struggle with making email a two-way interaction. There have been groups and listserv since email was invented, but how do you scale that to one million plus email subscribers?

It’s important we don’t silo email as a solitary channel. At Threadless, we use email to help guide subscribers to our site with newsletters that highlight our latest designs.

We encourage discussion about the designs, the company and our community through blogs and social media channels. It doesn’t make sense to ask one million subscribers to respond to an email, so it alone is not always a two-way channel, but absolutely we respond to emails if someone does reply to our email.

We also respond to our community’s preferences to not receive all our emails or to get info on new designs through social channels only, or maybe you only want to hear about sales. Great! Email is a channel by which we can serve our community, and through that sell some tee shirts.

Your community of 1.3 million regularly votes on their favorite T-shirts. Why? In other words, in possibly a combination to my two previous questions, what motivates them to act?

LR: We give them the platform by which to act, and they are motivated by each other, the community itself. They’re generally supportive of one another’s efforts and feel the need to give feedback to fellow artists. They also feel emboldened to choose new tees to be printed. Their participation can directly affect which shirts are available to buy.

Since you are essentially crowdsourcing your main products, your T-shirt creators aren’t punching a clock at Threadless HQ, I would imagine you would want to keep a pretty close eye on the competition. After all, they could steal not just some of your best product ideas, but also the very people who created the T-shirt designs. What kind of competitive analysis do you perform?

LR: We keep an eye out on other graphic tee companies, but because our business model is ever evolving, we don’t worry so much about what other companies are doing as much as our focus on giving our community what they want – multiple platforms to display their art while providing outlets to give and receive feedback to each other.

I do however receive emails from other tee-shirt lines. In general I am constantly monitoring retailers’ email programs to see what others in the space are doing in terms of messaging, cadence and any deliverability issues they may have.

My favorite T-shirt on Threadless is…

Haikus are easy

But sometimes they don’t make sense

Refrigerator

What’s yours?

LR: As a zombie culture fan, I love The Horde. As a mom, I’m really into the Threadless Kids! line, especially the new longsleeves. Running Rhino is one of my all time favorite designs.

Related Resources

Social Marketing: Twitter contest boosts followers 43%

Social Media Marketing: How enterprise-level social media managers handle negative sentiment

Improve Your Facebook Profile to Increase Consumer Interaction: 4 Tactics (Members’ Library)

New MarketingSherpa Inbound Marketing Newsletter

Twitter ‘Teaser’ Campaign Supports One-Day Sale: 5 Steps to a 4% Conversion from Tweets (Members’ Library)

Google recently published some detailed research on Gmail’s Priority Inbox feature. The four-page PDF includes some key features and specific calculations that power the email-filtering function.

I am honestly shocked at the level of detail provided. Readers with a math background might be able to further deconstruct the supplied equations, but the explanatory information alone provides a wealth of information.

Here’s what jumped out at me from the “Learning Behind Gmail Priority Inbox” PDF:

‘Many Hundreds’ of Data Points

Priority Inbox ranks mail by the probability that the user will perform an action on that mail. The calculation is made on a per-user basis and is based on hundreds of data points.

There are several categories of data points, or “features,” used to determine whether a message is marked as “unread” or “everything else.”

Here are the categories:

o Social Features – based on the degree of interaction between the sender and the recipient, such as the percentage of a sender’s mail that’s read by the recipient. “Opening a mail is a strong signal of importance.”

o Content features – headers and terms in a message that are highly correlated with the recipient acting (or not acting) with a message.

o Thread features – the users’ interaction with the thread so far, such as if the user began the thread or has replied.

o Label features – the labels that the user applies to messages using filters.

Time is of the Essence

A stated goal is “to predict the probability that the user will interact with the mail” within a set time frame, giving the mail’s rank.

I am not a math wizard — but it appears that your messages will have a higher likelihood of being prioritized in the inboxes of users who typically open and/or act on them quicker than other messages they receive.

More “False Negatives” than “Positives”

If Priority Inbox makes a mistake, it is more likely to let an unimportant message into the inbox than it is to boot an important message into “everything else.”

“The false negative rate is 3- to 4-times the false positive rate,” according to the document. When tested on a control group, the system’s accuracy was about 80%, plus or minus 5%.

Changing Behavior

Google analyzed the amount of time some employees spent on email with and without Priority Inbox. Priority Inbox users spent 6% less time reading email, and 13% less time reading unimportant email. They were also more confident to delete email.

If this trend holds true across all Gmail users, companies sending irrelevant emails will notice even lower response rates from Gmail users over time.

Bottom Line: Keep on rocking

There is nothing in this document that should concern email marketers with effective programs. Gmail’s Priority Inbox will measure the high interaction rates your team achieves and categorize your messages accordingly.

For marketers whose email programs lack relevancy and value, this document should be one of many wake-up calls you’ve received to overhaul your program. Our Email Summit is less than two weeks away and you can learn a lot from the hundreds of marketers in attendance.

Related resources

The Learning Behind Gmail Priority Inbox PDF

MarketingSherpa Email Summit 2011 in Las Vegas

Email Marketing: Improve deliverability by deleting subscribers?

Email Marketing: Why should I help you?

“And I still…haven’t found…what I’m looking for.” Hopefully Bono wasn’t talking about your website.

According to the MarketingSherpa Ecommerce Benchmark Report, customers who use the search box on ecommerce sites convert at nearly three times the rate of general browsers. Yet, 52% of marketers graded their internal search a ‘D’ or  ‘F.’

On Monday, I’ll be presenting on the “Exploring On-site Search with eTail, BabyAge.com and MarketingSherpa” webinar with Jack Kiefer, Founder and CEO, BabyAge.com, and Kelly Hushin, Editor, the eTail Blog.

But before we share some of our research and case studies about on-site search, we wanted to hear what you had to say…

Four major points

1. Understanding of misspellings and synonyms

Search today must tolerate typing errors, spelling mistakes, and other altered forms, without requiring a preset dictionary. We use our patented algorithm(FACT) to first of all understand what visitors are looking for in a shop. Phonetic is king.

On BabyAge.com when you search for “armchair” instead of “arm chair” you get no results. It looks like BabyAge.com is trying to maintain search by manual optimization because “sleighbed” works!

So you can point out the long tail of search again. Same for fischer-price instead of fisher-price or “chocolat” instead of “chocolate” or “sumer” instead of “summer”.

What about “schanon” instead of “shannon”? It doesn’t work. In Europe, we deal with many languages and understanding the phonetic is really important. Even spaces matter – “infantseat” (21 results) instead of “infant seat” (1000 results).

2. Relevance

The order of the right products that are displayed on the result page is vital.

Top-sellers and revenue boosters should always be placed on top, while sale items and bad sellers should be placed below the fold or on the next page.

Make sure to show only deliverable products, because nothing is more frustrating for a customer than finding out that the just-found-present takes 5 weeks to deliver.

Use an intelligent result system that incorporates information like relevance, top sellers and availability status, to avoid frustration and to turn more visitors into buyers.

3. Speed and filter

A survey of 600 Internet users showed that more than half felt that a “suggest” feature is “important” to “very important.” An additional 25% found the feature to be “rather important.”

When online retailers provide such a suggest feature, the drop-down menu should note the number of matches for each of the terms listed.

General search terms (such as “shirt” for an online clothing retailer) normally produce a very large number of results. The right filter navigation prepares the list for the user, permits sorting and selections to be made, and displays appropriate navigation tools. The user can now quickly narrow down the results according to brand, price, size or other attributes.

4. Merchandizing and optimization

Today on-site search is one key factor to understand the customer in your online shop. But you should also be able to generate insights from this data and use on-site information to generate AdWord campaigns and optimize, test and configure your shop for a higher conversion rate.

– Mathias Duda, Head of Sales, FACT-Finder

Simple things

There are many simple things companies can do to improve performance of their site search to deliver a more user-friendly experience, and potentially result in higher conversions (for e-commerce sites, in particular). Here are a few of them:

1.  Incorporate rich auto complete

This feature significantly enhances the usability of your site, by not only suggesting possible terms when visitors start typing the first letters of a keyword (like most search engines do today), but also showing images, start reviews, price, discount info, short product description, and even a “buy now” or “check availability button,” without the need to press the search button and wait for the results page to appear. This powerful feature gives people an easier way to click through to the items they’re searching for and typically results in higher conversions.

2.  Test different positions for the search box, and not which positions generate the most search traffic

One online retailer – Black Forest Decor – took this approach, moving its search box from the right-hand upper corner of its site to the center. The company made other changes at the same time, including increasing the size of the search box. The company found that site search revenue per customer increased 84% and the conversion rate increased 34%.

3.  Offer “add to cart/buy now” options directly from the site search results page

Smart e-commerce companies create as few steps as possible from search to checkout. When you allow visitors to add products to shopping carts or to go to checkout directly from search results, they’re more likely to complete the purchase – particularly if they know exactly what they want and they see it in the results at a price they’re comfortable with.

4.  Show ratings and reviews in search results

Site visitors place high value on the opinions and feedback of other people who’ve shopped for similar products or services, and showing the average rating in search results helps them better determine what they want to click on. You should allow visitors to further refine or reorder their search results based on ratings. You should also show, in the search results, the number of reviews that a product has.

5. Be sure to include refinement options that are relevant to the search query

Refinements are a useful way for visitors to narrow down results by certain criteria – for example, brand, gender, price range, etc. Refinements should be relevant to the search term, so will vary from one search to another.

For example, if a visitor to your site has searched for “camera,” it may be useful to have refinement options for the number of megapixels and the screen size. If someone searches for “TV,” then you may want to offer screen size and resolution refinement options. Apparel retailers can offer refinements for men’s and women’s items, as well as size, color, or other relevant attributes.

The trick with refinements is to keep them relevant and useful. This can be done by tracking the most popular and related search terms for each product category, and dynamically creating the refinements based on the keywords that people have entered.

– Shaun Ryan, CEO, SLI Systems

The new slang

Know your audience’s slang. Aside from plain old keywords, there’s going to be all sorts of wacky short-hand terms, acronyms and inside jokes you ought to be aware of. You can nab your market from folks inside the bubble already that way.

– Erica Friedman, President, Yurikon

Related Resources

Internal Search Data Inspires Store Page Re-Designs: 4 steps to boost revenue 50% – Members’ Library

Four Simple Steps to Tweak Site Search Box & Lift Conversions 20% – Members’ Library

How Eretailer Tripled Conversions with Internal Search Changes – Members’ Library

How to Improve Your Company’s Internal Search and Lift ROI – 9 strategies and tips – Members’ Library

How to Use Internal Site Search Data to Revamp Your Home Page: People’s Bank – Members’ Library

Several weeks ago I had the opportunity to chat with Brian Carroll, Executive Director of Applied Research at MECLABS, the parent company for MarketingSherpa, about the current state of B2B marketing, and what marketers can look forward to in 2011.

Our discussion covered three main areas — the alignment of Marketing and Sales, marketing automation tools and marketing operations as new a position within Marketing — and how all three are related.

For those attending MarketingSherpa Email Summit 2011 (January 24-26 in Las Vegas), Brian will be moderating a panel entitled, “How to Develop Content for Specific Buying Stages” as a B2B breakout session on Day 2.

Aligning Marketing and Sales

B2B marketers are being pressured to prove their value, particularly in terms of being able to contribute measurable revenue, and the struggle is that marketers are not fully in control of the process. Essentially marketers do not get to own a lead from first contact to close. Leads are generated and at some point the baton is handed to Sales to, “run the race and win,” as Brian put it.

He explained to me, “A lot of marketers don’t really understand the challenges facing salespeople today because they haven’t been a salesperson themselves. So there is the age-old debate around Sales and Marketing alignment, which is — Marketing wishes salespeople would act on their leads and give them feedback, and the salespeople wish that Marketing would actually give them leads, or at least more of the good leads and less of the bad, because they want real opportunities.”

Brian said the big theme is: the alignment of Sales and Marketing will drive results from the top of the funnel to the bottom line. Many B2B marketers understand that aligning Marketing and Sales is a net gain for both departments and the entire company, and evidence of that can be found in the MarketingSherpa 2011 B2B Marketing Benchmark Report where research found that lead quality is a top priority for B2B marketers.

And to go back to Marketing proving its value in terms of revenue? Brian said the key metric more and more executives are looking to Marketing for is the expense-to-revenue ratio, that is, the expense of marketing efforts to the revenue produced.

Marketing Automation

According to Brian, marketing automation is not going to solve every problem, but it’s a great start to help marketers. He did caution that often starting a marketing automation effort can expose more problems than it solves. It can expose things like the weakness of the data quality marketers are using. So it’s important to remember marketing automation is a tool, but it won’t do the work for you.
He said many marketers are using marketing automation mostly as an email tool, and this usage can expose the lack of a content strategy.

“Most people are still doing ‘batch-and-blast’ campaigns to lists that aren’t very targeted,” Brian told me.

This ties back into the alignment between Sales and Marketing, because better alignment will, hopefully, help bring about a content strategy, clarity of the value proposition, effective lead qualification and a lead nurturing process.

Marketing Operations

During our talk, Brian said, “I think what’s really needed is new position within Marketing which is called ‘marketing operations,’ and what that entails is really working to understand how Marketing is interfacing with the different operational aspects of the company — including Sales, including IT, including Finance — because those are all the places that marketing needs to go to get the data points that they need in order to prove their value.

“And on the other side of that is they are often going to be interfacing with the product development, or R&D, inside the company as well.”

He added that when marketing automation exposes problems, it will be up to marketers to really act as leaders inside their companies to teach and explain, and to not just report data, but to give real insight to the executive suite. When the CEO asks why only 1000 emails were sent to a list of over 10,000, the marketer is ready to explain those 1000 addresses were created by a high-level segmentation and that targeted list represents 70% of the revenue opportunities for the year.

He thinks when marketers can achieve better alignment with Sales and are prepared to explain and lead, they will do a better job of marketing inside the company. And that will make their marketing outside the company more effective as well.

Related Resources

Email Marketing Summit 2011

Fostering Sales-Marketing Alignment: A 5-Step Lead Management Process (MarketingSherpa Members’ Library)

2011 B2B Marketing Benchmark Report

Marketing Career: Can you explain your job to a six-year-old?

Marketing Leader’s Perspective: No cogs allowed in social media and content marketing

At this time of year, I see many “My Top 10 Posts for 2010” or “Our Top Blog Posts of the Year.” Here on the MarketingSherpa Blog, we thought we’d try something a little different. We’re sharing your top posts of the year.

We used that neat little plug-in located in the upper right of every post, the Topsy Retweet Button, to determine which posts you (and your peers) found most valuable this year. Here’s what you had to say…

1. Blogs are Becoming the New Front Door for Prospects: Is Yours Open?
   “3 Ways To Make The Most Of A Corporate Blog” – @flowtown
2. Making Social and Email Work Together
   “Social and Email need to work together–people who use social media actually check their email more frequently” – @leeodden
3. Internet Marketing for Beginners: Email marketing optimization 101
   “Want more email capture? Great article from @MarketingSherpa, with a fab little formula on messaging effectiveness.” – @whistlerjedi
4. Email Marketing: “I am not dead yet”
   “Email Marketing returns an average of $42 for each dollar spent this year” – @Newspapergrl
5. Content Marketing: How to get your subject matter experts on your corporate blog
   “How to persuade in-house experts to go social via @sbosm” – @jeffhurt
6. Public Relations: The best press release is no press release
   “Talk to media like they’re your older brother!!” – @laermer
7. Lead generation: Real-time, data-driven B2B marketing and sales
   “David Meerman Scott shares good info on the integration of B2B social media and real-time lead gen” – @copywriter4u
8. Social Marketing: Twitter contest boosts followers 43%
   “story behind clever @Kobo campaign run on @Offerpop” – @abonde
9. Social Media Success Means Learning to Let Go
   “article on relinquishing control in social media to get more engagement and consistency. Great insights.” – @sarameaney
10. Ten Numbers Every Email Marketer Should Commit to Memory
    “Don’t forget about email” – @thearchergroup

Related Resources

Free subscription to MarketingSherpa Best of Weekly – Marketing case studies and research

Most-Tweeted Blog Posts of 2010: Facebook case study, social media marketing human factor, antisocial media, and more – MarketingExperiments Blog

Sherpa’s Take on B2B in 2010: Part Two – Marketing automation and lead generation content

Email Trends 2010: Proven tactics and test ideas

By PYoakum

There has been a lot of talk this month about the future of behavioral advertising and privacy on the Internet. This coming year could change if and how your team uses ads that target people’s browsing history.

The Federal Trade Commission published preliminary proposals for targeting online ads on Dec. 1, and the Department of Commerce published preliminary proposals for protecting consumer privacy on Dec. 16.

These statements came about two months after the Digital Advertising Alliance (DAA) launched a program that lets users ‘opt-out’ of behavioral tracking. The DAA is a coalition of industry groups that supports industry-based self-regulation for behavioral ads.

Outcome far from certain

What does all this mean? No one is entirely sure. The FTC and the Commerce Department’s proposals are not laws, but folks from the FTC have been speaking with Congress about the issue. And FTC Chairman Jon Leibowitz has expressed dissatisfaction with the industry’s self regulation.

This much is clear: behaviorally targeted advertising is raising privacy concerns. Consumers are seeing the shoes they just shopped for appear in ads on other websites, and that is freaking some people out. Two solutions have been floated:

– The FTC’s preliminary proposal: have a browser-based solution that signals to websites that a consumer has ‘opted-out’ of tracking

– The DAA’s program: let users ‘opt-out’ by clicking on an icon next to an ad. This program has been adopted by at least one major media-buying agency.

The potential for impact

Should either of these options — or some other ‘opt-out’ system — become a wide-spread reality, it could have serious implications for online advertising. Here are two stats to consider:

– An Interactive Advertising Bureau survey of ad agencies earlier this year found that 80% or more of digital advertising campaigns were touched by behavioral targeting.

– A USA Today/Gallup poll in December found that 67% of U.S. Internet users say advertisers should not be allowed to match ads to their browsing history.

A tremendous leap of faith is not required to assume that a sizeable portion of that 67% would gladly opt-out of all behaviorally based ads.

What you can do in the meantime

While Washington and the industry figure out what, if anything, will change, your team should look at its marketing and understand the importance of behavioral ads and tracking in your programs.

Consider what would happen if the ads stopped working as well, stopped working completely, or did not change — and what you should do in each case.

Also, talk to your agencies, affiliates and ad-networks. Find out what this means for the marketing they do on your behalf. The last thing you want to do is to be caught off guard by any changes.

Related resources:

Follow the FTC’s Street Team Guidelines: 4 Recommendations for Offline and Online Promos

FTC’s New Endorsement Guidelines: 6 Key Areas to Examine

The Google Slap: Affiliate Marketers must stay in compliance with Google and the FTC

I was digging through last year’s Wisdom Report and found a great quote supporting some recent research I’ve done on inbound marketing.

Jon Miller, VP, Marketing, Marketo, told us last year that although marketing budgets are in a 10-year shift out of brand advertising and into more measurable channels, he recently saw an uptick in brand-building tactics.

“Instead of mass advertising, today we are investing more in smart ways to build brand such as in social media, search engine optimization, and content marketing,” he said.

You need to take baby steps

Miller’s advice was for marketers to take a portion of their budgets normally spent on trade shows and list purchases and to use it to hire writers to publish and promote content.

“By getting your company’s expertise out there, you create broad awareness and affinity for your brand. Those investments will turn into leads, but they will be very early-stage leads. So don’t just send them to sales: be sure to score them to identify the best ones, and nurture and develop the rest with more great content and thought leadership,” Miller said.

This strikes a close resemblance to a conversation I recently had with Joe Pulizzi, Founder, Content Marketing Institute. Pulizzi noted that a well-planned content marketing strategy can achieve a range of goals — including lead generation. However, marketers just starting out should start small.

“Just because you have a content-marketing focus does not mean that you stop doing traditional media,” Pulizzi says. “Good content marketing takes time. If you completely shut off your other channels, someone is going to get fired. You need to take baby steps… I would never say ‘kill your advertising’ because in a lot of cases it works — it just works differently.”

Make a serious commitment

Taking ‘baby steps’ helps avoid marketing disasters — but you also need a serious commitment for any chance at success. Using high-quality content to attract leads is a strategy that takes time and effort.

Writing one blog post per week and spending 10 minutes per day on social networks is not likely to bear much fruit. Instead, you should set concrete marketing goals and select the best tactics to achieve them. Then you must regularly publish the high-quality content that your audience needs most — whether it’s a series of how-to videos, an e-book series, or something else.

Content creation can be expensive in terms of dollars and time spent — and some tactics are better than others. Here are the most effective tactics for creating content, as reported in MarketingSherpa’s 2011 B2B Benchmark Report:

1. Repurpose and reformat existing content: 64% of respondents
2. Encourage customers to submit testimonials and case studies: 53%
3. Recruit authors internally: 48%
4. Outsource to a consultant or agency: 27%
5. Use social media to encourage brand advocates to produce content: 20%

Creating compelling content is never easy — but more marketers are finding that it is helping them fortify their brands’ credibility and attract prospective customers. Take a look at your budget and schedule for 2011 and see if your team can find the time to give your audience the content it’s looking for.

Related Resources:

Content Marketing: How to get your subject matter experts on your corporate blog

Personal Branding: The five elements of being seen as a thought leader through crowdsourcing