MarketingSherpa Blog

Originally published on B2B LeadBlog

Earlier this year at MarketingSherpa Email Summit 2013 in Las Vegas, I had the chance to enjoy many conversations with my email marketing industry friends. This post grew out of one of those talks.

I asked Matt Bailey, President, SiteLogic; Christopher Donald, CEO and Lead Strategist, Inbox Group; and Loren McDonald, VP Industry Relations, Silverpop, about comparing “batch and blast” email strategies against some of the more targeted and personalized email approaches. Here are their answers.

David Kirkpatrick: Email marketers are being told to employ aggressive database hygiene on email subscription lists, engage in tactics such as microsegmentation to individualize and customize the content in email campaigns, and begin emphasizing mobile form factors in email design to encourage engagement with campaigns on mobile devices.

At the same time, they are being told to get away from the traditional batch and blast or “spray and pray” efforts.

What are some advantages and disadvantages of these areas of emphasis in email marketing?

Loren McDonald: Email marketing is not “either-or.” A successful program relies on a combination of elements – broadcast, automated triggered emails and segmentation. Each element has a specific role to play in your email program. If you focus on a single one to the exclusion of the others, you’re leaving money on the table.

First, a well-designed broadcast email program makes sense because you will always have email messages that you should send to everyone on your list.

Part of email’s role is to nudge your customers into buying something they didn’t necessarily know they wanted, to reach out to the person who wasn’t planning to buy from you.

Having said that, I do believe that the more behavior you can capture, the more relevant your messages become, and you can automate more messages. Recipients value these messages because they’re more relevant than most broadcast emails.

Automated messaging helps you capture incremental dollars on top of the revenue you’re driving already with your broadcast emails.

Matt Bailey: As much as neither of us would recommend a batch and blast approach, it is still a “better than nothing” proposition.

I find that in many companies, the traditional email batch marketing is the sole or the primary way of corresponding with existing customers. So, in this way, it is better than no communication. There is little to no time spent improving the database or much thought into the messaging of the emails – it’s simply a task to be done.

Now, fortunately or unfortunately, when I audit these types of companies and their marketing, and come to their email programs – it’s a profitable venture. Because so little is put in, besides the creative, the email service provider (ESP) and the blast, but yet it produces the primary source of repeat business.

I say unfortunately, because many times it is profitable because there is little spent and even less attention to segmentation or database management. I say fortunately, because making simple changes and becoming better and more intelligent with microsegmentation, triggers, etc., will only make an already profitable activity soar in results.

The issue then becomes one of paying more for something that is already working and investing in it to grow. Meanwhile, the sexiness of social media is competing for the marketing budget, and the new sexy options tend to get the attention, whereas the already profitable and predictable email marketing gets overlooked.

Christopher Donald: There is definitely a lot of benefit to being able to segment and target based on the data. We like to look at pretty much everything – from browse data to email data. You know, what [your customers] are responding to and not responding to from previous purchases.

So, you can get segmentation or even microsegmentation. The problem is not everybody has the bandwidth or budget to do that.

So they still live in the batch and blast world, and it can be very effective. There are a lot of companies that all they do is batch and blast, and it does really well for them.

You can increase your ROI and your revenue through targeting and through better segmentation and messaging to those segments based on previous activity, but it takes time and money.

Some people do batch and blast just out of necessity, but that doesn’t mean it doesn’t work.

DK: What effect on that final conversion to sale (rather than other email metrics such as open rate and clickthrough) do these two different approaches exert on campaigns?

LM: The one-to-one approach, especially those emails that are triggered to the individual based on a behavior or event, typically have significantly higher conversion rates than one-size-fits-all broadcast emails.

On the other hand, conversion rates on broadcast emails are typically less than 5%, but the emails are sent to all or a majority of your database versus a tiny percentage on any given day of the one-to-one emails. But with automated email programs, the power and math is in that they are triggered 24/7/365 and that as you build your program you might have dozens of these emails going out every day.

So as I mentioned earlier, the key is to combine a growing number of these one-to-one automated emails with segmented and broadcast. Companies that add a significant number of automated email programs often see them contribute 25% to 50% of their total revenue from email.

MB: Oh, there is no contest. Every test, every campaign and every client that develops microsegmented campaigns or persona-based emails sees lifts in every category. It all comes down to relevance. Even if I have subscribed to your company’s emails, unless it is relevant to my needs – at that exact moment – it is spam. The more targeted your emails [are] by relevance, personalization and timeliness, the more significant all metrics increase, especially the ones that count – revenue and profitability.

CD: I think it all depends on what it is you are selling, right? If you simply sell a widget in 10 different colors, then segmentation probably isn’t important and isn’t even going to get you that much more revenue for the amount of time and cost that will be involved.

Revenue should always be your main indicator.

It is your main indicator of whether what you are doing is working, or not. I have seen clients spend huge amounts of money and time segmenting and on hygiene and managing inactives and doing everything they can do, but the bottom line – the return on investment of doing those things – doesn’t always pan out.

For others, it does. It is really looking at what you are selling. If you are selling lots of different products, it makes all the sense in the world to segment.

DK: Is relying on batch and blast because it still works possibly selling short a longer-term strategy of an engaged, if maybe smaller, subscriber base? And possibly risking eventual issues with deliverability, recipient fatigue (and the resulting opt-outs, or worse, spam/junk status) and/or brand credibility?

LM: If your email program is almost entirely batch and blast, then you are simply leaving a lot of money on the table. That is the fundamental reason to go beyond this approach – deliverability concerns and related issues are secondary. Remember, your goal as a marketer is to make as much money as possible for your employer while at the same time balancing margins, customer expectations, choice, list churn and other factors.

The simple truth is that sending more email makes you more money. But “more” doesn’t mean just sending more of the same old thing to everyone – but more relevant emails at the individual, segment and broadcast level. As my friend Dela Quist of Alchemy Worx says, “Don’t be stupid.”

You have to be responsible with your broadcast program. You must test frequency and monitor engagement across your database. Concentrate on activating your new subscribers right away. Use technology and data to identity customers who are becoming unengaged and then move them into different tracks. You also need to understand the longer-term impact on churn and revenue when simply sending more broadcast emails.

Additionally, one of the goals and purposes of your broadcast program is to drive subscriber behaviors that then trigger those one-to-one emails that lead to higher conversions and engagement. Without the regular cadence of broadcast emails you will have fewer behaviors from which to trigger the highly personalized emails.

MB: Absolutely! I believe that the batch and blast approach is only profitable because we are in a unique place in digital marketing. It’s the “grace period” before we hit a critical mass of personalized, targeted marketing. If your company isn’t doing it, then you will get overwhelmed by your competitors and others who are engaging your customers at a more personal level.

CD: I think it does hurt in the long run, for sure. I think you can turn off your audience over time [with batch and blast email].

But, sometimes it is a knowledge issue. There are a lot of plug-and-play services with recommendations based on browsing, or cart abandonment, or targeting based on data.

Sometimes people are email marketers by default, not by choice.

DK: What emphasis should email marketers place on mobile platforms right now when designing new email campaigns and overall email marketing strategies?

MB: I would look at your metrics to see how your customer base is interacting with your emails. While the data suggests that email is the number one activity on mobile you need to see how that is stacked up for your company. Just because reports state that you still have to see what is happening in your own business.

Now, after verifying how people are using your emails and where they are opening – if you see even the slightest trend or predilection to mobile, then you need to be exploring, designing or planning. Don’t ignore it.

CD: I think [email marketers] should take it very seriously.

You need to find out what percentage of your [audience] are opening and reading on mobile. We have a B2B client with a mobile open rate of only 4%.

You would think [being] business to business, the mobile open rate would be huge, right?

But, with this particular client, they have been sending this newsletter on a monthly basis for seven years and the newsletter is content heavy. It generates 1.6 million PDF downloads of new insurance policy information for agents.

Because it is a large format newsletter and a lot of content, there is no way to make it mobile-friendly.

DK: What are your overall thoughts or ideas you’d like to share on this topic?

LM: While I am a major proponent of one-to-one, behavior-based automated email, success is still all about balance and knowing what works with your customers.

You need to find the right balance among broadcast, one-to-one and segmentation based on your business, resources, budget and customer and purchase lifecycle. If you overemphasize one approach at the expense of the others, you’re leaving money – perhaps a lot of it – on the table.

MB: Metrics are powerful, and they are absolutely necessary to prove our assumptions. Even though your traditional email campaigns are profitable, it doesn’t mean that they will remain so next year. Even the simplest segmentation strategy will make a remarkable difference in your response rates, conversions and even more – the customer perception of your company.  All of which will be important as the personalization of digital marketing explodes over the near term.

MarketingSherpa Email Awards 2014

Did this blog post get you thinking about your own email marketing strategies and tactics? If so, let us know about your best campaigns from the past year and enter those efforts in MarketingSherpa Email Awards 2014. You have until September 8, 2013 to enter.

Related Resources:

Email Marketing: 208% higher conversion rate for targeted emails over batch and blast

Automated Email Case Study: 175% more revenue and 83% higher conversion rate

Email Marketing: 900% more revenue-per-email from Restaurant.com’s automated strategy

Email Marketing: Two ways to add relevance, and why you must be correct

Originally published on B2B LeadBlog

As marketers, we’ve all heard the buzz about native advertising.

We’ve heard how it’s going to revolutionize advertising and begin to phase out traditional display ads. But despite all of the hype, it seems like everyone still has varying ideas of what native advertising actually is.

In today’s B2B Lead Roundtable Blog post, I wanted to share my view on native advertising from a business intelligence perspective and the role I believe it has in the future of Internet marketing.

Question #1. How can we use native advertising?

What do you think of when you hear the term “native advertising?” An advertorial? Valuable content with a paid placement? Promoted tweets? Search engine marketing ads? Promoted stories and posts on social media networks?

Over the last year or so, I’ve heard countless different arguments about the true meaning of native advertising.

So, I asked myself, “Why does everyone seem to have such differing views?”

Why isn’t defining native advertising as black and white as some of the other marketing concepts we deal with on a daily basis?

Well, if you ask me, it’s because that’s essentially what a native advertisement is.

There is no current standard for native advertising, nor will there ever be one, and that’s the point.

A native advertisement is supposed to adapt to the content surrounding it in order to engage a potential customer by using their previously indicated interests. If there were set standards for native advertisements, that would essentially eliminate the advantage native ads are claimed to offer.

Which brings me to another point…

With all of the tools available today, we have the distinct advantage of knowing far more about our potential customers than marketers in generations past.

All of this knowledge allows us to create highly relevant content to attract the attention of those potential leads based on their decision to interact in a specific environment.

So, if there was a set formula, wouldn’t it essentially eliminate the ability we have to provide a user with highly relevant content that, if presented correctly, will engage them when they may have otherwise been disinterested?

Consequently, I would suggest marketers take a moment to stop focusing on a rigid definition of what native advertising is and isn’t to embrace what it can do for your marketing efforts given the adaptability native ads offer.

Question #2. Is native advertising really a new tactic?

Not really.

One thing that has me confused is why everyone seems to think that native advertising is such a new and revolutionary concept.

When I first started to hear the buzz around native advertising, I immediately thought back to my high school cross country days.

I remembered reading an article in Runner’s World about precautions you can take to avoid injuries. As I flipped through the pages, there was an ad placed for Asics shoes that outlined what causes many common running injuries and how its shoes were scientifically designed to help prevent these problems.

I knew it was an advertisement, but it was also highly relevant to the content I was reading. I chose to divert my attention to the ad instead of the content around it.

So, I would argue that Asics’ idea of designing an ad that was relevant to the content surrounding it was essentially a “primitive” utility of native advertising.

Although my example is not a direct B2B example, it’s not a far reach to find native ad adoption in white papers or sponsored posts on Facebook that are also dispelling other myths about B2B social media use.

Question #3. Do our ads offer value and relevance?

Delivering valuable content that is relevant to your prospects is the key to a successful native ad campaign.

Generating quality content can be a difficult task, but it’s certainly not impossible if done correctly.

Producing valuable content that not only relates to the interest of the user, but is also relevant to your business should be the goal of every native advertising campaign you undertake.

So, what does a successful B2B native ad campaign look like exactly?

Well, according to Buzzfeed, it looks a lot like the consumerization of B2B marketing.

GE Aviation created a “flight mode” campaign designed to promote its presence at the 2013 Paris Air Show. When users visited BuzzFeed.com, the flight mode campaign transformed the Buzzfeed homepage into a grid of articles readers could “fly” over with a little plane icon.

Whenever users stopped on content they were interested in, they could hit the space bar and read the article in the normal view.

While a lot of the buzz was centered on the seemingly odd pairing of an ad campaign for an aviation giant’s presence at an air show running on an online publication, the campaign has been considered as a success so far, which brings us back to my point…

Offering quality content that is relevant is central to successfully using native ads as a B2B marketing tactic.

Question #4. What are the risks?

I see a future in native advertising, but from a business intelligence perspective, “Careful you must be when sensing the future.”

Yes, that was a quote from “Star Wars,” but Yoda’s advice actually holds a lot of truth when it comes to native advertising.

While I will not dispute there is a future in native advertising for B2B marketers, I wanted to offer caution to use the tactic of native ads responsibly and here’s why.

Imagine a scenario where your ideal prospect is researching a new product, let’s say software that lets small businesses share voice mails across cloud storage.

Eventually your prospect comes across an article outlining all the benefits of using Brand X’s voice mail clouding over Brand Y’s service.

If the information appears to be from a reputable source, the article may ultimately influence a prospect’s purchase.

But, what happens to Brand X’s credibility the moment the prospect realizes that “article” was actually a carefully constructed advertisement produced by Brand X attempting to appear as impartial, informative content?

Well, I don’t know about you, but for me, the brand is taking a big credibility gamble.

Although this is a completely hypothetical situation, problems could very well arise if companies try to disguise native ads as unbiased content.

Which brings me to my final question…

Question #5. Are we trying too hard?

I know … it goes against everything you have ever been taught.

But when it comes to native advertising, trying too hard to disguise your ads can be the difference between a successful campaign, and losing a prospect for good. My suggestion here is to avoid trying to “disguise” an advertisement as unbiased or pragmatic content.

If the content is native, you won’t have to disguise anything as it engages prospects without jeopardizing your organization’s credibility. I know I’d rather see a brand recognizing and embracing the potential of an advertisement than attempting to trick me by masking it behind the illusion of an unbiased expert.

So, to sum it all up, while I do think native advertising has proven its potential as a content marketing tactic and is now being adopted more frequently into B2B marketing, I want to reinforce that a native advertisement is just that — an ad.

Positioning it otherwise may very well damage the credibility of your business and drive away prospects.

But, if you embrace the ability you have to provide prospects with relevant and valuable content, there is potential for innovative new ways to turn native advertising campaigns into ROI.

Related Resources:

B2B Marketing: 3 reasons for adopting video content into your marketing mix

Lead Generation: Content among the most difficult tactics, but also quite effective

Content Marketing: Slow, steady pay off for manufacturer

Originally published on B2B LeadBlog

Content marketing is one of the most effective and widely used lead generation tactics, according to the MarketingSherpa 2012 Lead Generation Benchmark Report. Although it is one of the most difficult forms of marketing, second only to trade shows, 62% of marketing budgeters expect an increase for content marketing, according to the same report. Developing a content marketing strategy remains a big undertaking.

To help you learn more about content marketing ideas and tactics at Lead Gen Summit 2013 in San Francisco, we’re sharing this video replay of Edwin Jansen, Director of Business Development, The Ian Martin Group, presenting on content marketing from B2B Summit 2012.

Jansen explained by generating content from within Softchoice, a technology solutions and services provider, it empowered employees throughout the company to become advocates of the content they created. Educating departments on the use of social media and recognizing talents and abilities within the team increased the quality and reputation of the content that the company generated.

This clip features the first of four lessons that Jansen learned in his quest to transform his company’s marketing strategy into a content-rich experience for customers. Others include:

• Managing processes that best serve customers
• Using the right tools
• The one thing he wished he knew before he started.

To hear the rest of Jansen’s lessons and confessions in his journey towards “pull” marketing, watch the full, free presentation from last year’s B2B Summit in the MarketingSherpa Video Archive.

Related Resources:

Lead Gen Summit 2013: Sept. 30 – Oct. 3, San Francisco

Event Recap: MarketingSherpa B2B Summit 2012

Content Marketing: Your questions on B2B online lead gen, metrics, content from SMEs and more

Content Marketing: Targeted persona strategy lists sales leads 124%

Content Marketing How-to: 7 steps for creating and optimizing content in any size organization

Originally published on B2B LeadBlog

Using online video advertising as another channel to support your lead generation efforts can help you craft a global audience of potential leads.

Digital video can help keep your brand top-of-mind when it’s time for a purchase decision — if you create content designed for sharing versus selling.

Today’s B2B Lead Roundtable Blog post features three reasons why you should adopt video content into your B2B marketing mix.

Reason #1. The digital video audience is growing

In a recent article on what makes streamers abandon video content, an interesting chart was included projecting digital viewer growth in the U.S. from 2010 to 2016.

According to those projections, 61% of the U.S. population alone will have adopted digital video viewing within the next three years, bringing the total to a staggering 77% of all Internet users viewing digital video content online by 2016.

A similar article focused on the online activities of U.S. Internet users by age revealed video sharing was a top Internet activity among U.S. Web users in every age bracket, ranking only beneath shopping and social networking in popularity.

As a result, digital video content production and/or digital video advertising will have the potential to reach what truly constitutes a growing global audience.

Reason #2. It’s no more difficult to produce online video content than it is to produce a white paper

For B2B and/or B2G marketers, concerns about adding video content in terms of difficulty, time, effort and expense are understandable, but considering the findings of previous MarketingSherpa research, where B2B and/or B2G marketers were asked…

Please indicate the DEGREE OF DIFFICULTY (time, effort and expense required) in creating each of the content products your organization is using.

Producing white papers ranked nearly equal across every range of difficulty with online video and phone apps, which leads to one important question…

What are some of the tangible benefits for adding video?

Reason #3. Digital video can improve SEO and drive multichannel traffic to your website

When I asked Gaby Paez, Associate Director of Research, Conversion Group, MECLABS, how companies could benefit overall from adopting video, she explained using video content can improve SEO campaigns.

“Not only is video a great way to share your story, it’s also a great way to build links back to your site. And, if users engage with your video, it helps to increase time on site,” Gaby explained.

Here are some of the additional benefits Gaby mentioned for adopting video:

• Branding — craft a consistent message for a 24/7 global audience
• Add human touch to testimonials — increase value and credibility of testimonials by sharing customer stories/case studies in video format
• Repurpose existing content — creating short videos using slides with the content of existing blog posts
• Boost awareness, visibility and reach — share product information, training, tips, or instructions with demos or video tutorials

When I asked Gaby how video could be used by B2B marketers to highlight products in the e-commerce space, she used software as a service (SAAS) and traditional e-commerce as two examples of where video content could supplement or even improve the customer experience.

“See video as a natural progression of customers’ expectations. In the past, they expected to see a product picture to make a purchase decision, then a gallery of pictures and now a product video,” Gaby explained.

I asked Gaby if video could also be also used to drive traffic mobile, and she explained video content was a great way to accomplish this.

“Absolutely,” Gaby explained, “You want to spend time developing mobile content that encourages potential customers to spend time on your website,” Gaby explained.

Related Resources:

Lead Gen Summit 2013: September 30 – October 3, San Francisco

Lead Generation: Content among the most difficult tactics, but also quite effective

Human Touch: 8 Questions to Steer Your Marketing Priorities

Lead Qualification: Stop generating leads and start generating revenue

Originally published on B2B LeadBlog

When John Johnston, Director of Digital Marketing, began his journey at Volvo Construction, he knew things had to be completely rebuilt, starting with the website and branching out into everything else. In this excerpt of a full video session from B2B Summit 2012, see how customer service topped the list for Volvo Construction when it began an overhaul on digital marketing, where email would bring customers to the website, and the website would convert them.

2:45 First, Volvo Construction created a website that acted as a useful and current resource for customers and dealers. Johnston wanted the website to be the ultimate guide for the visitor, so they could find everything they needed, including its social media posts, without leaving the site.

4:21 Subsequently, Johnston’s team structured digital marketing around the website so that PPC, SEO and email would attract customers and the website would be helpful enough for them to stay.

5:33 He also decided that email is how they would “primarily drive traffic to the website.”

Crafting the email to serve customer needs was vital to this plan. Since customer needs vary so greatly, Johnston’s team needed “to make sure the content changes,” to match customer needs and. The emails also needed to contain dynamic content and interactive functionality the customers appreciated, as well as the analytics that the company could use.

Related Resources:

Click here to watch the full free presentation to see the rest of Johnston’s digital marketing strategy and answer more questions from the audience.

Lead Gen Summit 2013: September 30 — October 3, 2013 in San Francisco

Email Summit 2014 in Las Vegas Call for Speakers — Bonus: Enter the MarketingSherpa Email Awards using the same form

Event Recap: MarketingSherpa B2B Summit 2012

Customer Connection: Does your entire marketing process connect to your customers’ motivations?

Email Marketing: Segmentation, triggered sends generate twice the revenue with half as many email sends for furniture company

Originally published on B2B LeadBlog

“It is absolutely necessary. Don’t base your marketing on assumptions and allow your customers to identify your success.”

— Alex Corzo, Manager of Brand Integration, Orlando Health

How important is value prop testing?

The case studies at Optimization Summit 2013 reaffirmed the importance of value proposition testing for me. For example, through testing, Jon Ciampi, Vice President Marketing, Business Development & Corporate Development, CRC Health, learned his customers craved trust, not luxury. He reinvented his lead funnel based on this insight, changing everything from his company’s landing pages to his team’s call scripts.

So, how can you discover your value proposition?

At Optimization Summit, my colleague Austin McCraw, Senior Editorial Analyst, MECLABS, shared “How You Can Use Email to Discover the Essence of Your Value Proposition (in 5 Simple Steps).”

But email is just one channel for testing value proposition. So, in the MarketingSherpa 2012 Lead Generation Benchmark Report, we asked…

Q: Which methods have been the most effective at testing your value proposition? Select up to three responses.

We also reached out to our audience, and asked for their value proposition testing tips. The lowest response in the chart, offline advertising (in this case, using cold calling), received the most passionate response, as you’ll see below…

Different tactics work for testing (and challenging) different aspects of your value proposition

For example, you can’t test the “secondary aspects” of your value proposition with PPC advertising because of obvious limitations, but it’s an ideal method for finding out what are the strongest motivators (“primary aspects”) of your value proposition.

It seems many people forget landing pages aren’t as objective as they might think. The traffic source affects expectations (and who comes to your page). So, one aspect of your value proposition might appear to work best, but really you only know what those visitors respond to.

For example, you sell supplements and you’re running an ad at a site focused on marathon running. You get visitors interested in extreme endurance. Your landing page should then focus on endurance. In other words, if one aspect of your value proposition is about building endurance, that’s what will appear to be the most important aspect of it. But if the traffic came from a bodybuilding site, you’d better focus on other aspects or at least frame your value proposition differently.

— Peter Sandeen, Online Conversion Specialist

Cold calling

In a business-to-business setting, I make a few hundred cold calls myself.

By the time I finish those calls, I know with a fairly high degree of confidence whether there is a need in the marketplace for what I’m offering.

Since I make those calls myself, I also have firsthand evidence of whether the value proposition resonates with prospective buyers. Only after do I allocate marketing dollars to communicating the message.

I know this method is “expensive,” but I’m a founder, so for me it’s about making the time and for that reason spending on marketing first would be more expensive.

Anyway, guess what I’ve found over and over again trying this approach in a variety of B2B situations? If the value proposition doesn’t include making them money or saving them time, it probably won’t resonate!

— David Chevalier, Co-founder, SalesBlend

And more cold calling

In my opinion, there is no substitute for David’s approach of having the founder or equivalent making enough cold calls.

Using senior execs to personally do testing is still not cheap, but really talking to that many prospects is not only priceless but an incredible kickstart to building pipeline for the sales that follow the test.

— Chris Beall, Chief Product Officer, ConnectAndSell

Related Resources:

Digital Marketing: B2B marketers can get fresh, new ideas from B2C

Digital Marketing: How to craft a value proposition in 5 simple steps

To Call or Email? That is the Question

Originally published on B2B LeadBlog

This week, I’ve joined marketers from around the world in Athens Americana — Boston, Mass. for MarketingSherpa and MarketingExperiments Optimization Summit 2013. After a short (and rather scenic) water taxi ride from the airport, I’ve settled into one of the Value Proposition Development Course sessions being led by Austin McCraw, Senior Editorial Analyst, MECLABS, as he teaches marketers how to craft and express value propositions.

“I want to take the theory that we have put in place so far, and bring it down to a ground floor level of application,” Austin said.

So, today’s B2B Lead Roundtable Blog will highlight that ground floor application from Austin’s session by showing you how you can craft a value proposition in five simple steps. Our goal is to give marketers a frameworkthey can use to identify and express a value proposition using the MECLABS value proposition worksheet.

However, before we get started, take moment to download this worksheet to aid your value proposition efforts and let’s get clear on what a value proposition is exactly…

What is a value proposition?

According to Austin, there’s a fundamental question every customer wants answered that directly impacts your ability to capture and convert — “If I’m your ideal prospect, why should I buy from you rather than any of your competitors?”

“Your value proposition is the ultimate reason why your prospects should do business with you,” Austin explained.

To put this further into perspective, take a moment to ask yourself, “Can I clearly and succinctly state the core value proposition of the product or service that I am marketing?” and write down you answer.

If what you wrote down resembles any of these …

• “We empower your software decisions.”
• “I don’t sell products and services; I sell results — my guarantee.”
• “We help companies find their passion and purpose.”
• “We are the leading [insert your service here] provider.”
• “We give XX% off for new clients.”
• “This site has the solution your company is looking for.”

Then it’s very likely your marketing campaigns are underperforming from poorly-crafted value propositions that are also likely leaving some serious leads and revenue on the table.

Step #1: Identify the value proposition question

Austin explained the first step in crafting a value proposition is to identify the type of value proposition you need to answer.

“Once you have identified the value proposition question you want to answer, you have already won half of the battle,” Austin said.

And so, you first have to choose which question you want to answer; be it the primary question of “If I’m your ideal prospect, why should I buy from you rather than any of your competitors?” or a derivative value proposition that has a much more granular focus on your products or process.

Step #2: Identify potential claims of value

The next step is to list some potential claims of value that answer the primary value proposition question we identified in step one.

To illustrate this, I created a hypothetical email service provider and listed some potential claims of value.

Step #3: Rate the appeal and exclusivity for each claim

After you’ve listed some possible claims, rank them from one through five according to their appeal and exclusivity, of which:

• Appeal — “How much is this offer desired by the market?“
• Exclusivity — “Is this offer available anywhere else in the market?“

In keeping with our example, let’s take a deeper look at appeal and exclusivity of our highest-ranking example claim.

“We can integrate into any social media platform”

• Appeal: 4.5 — The ability to conduct multichannel marketing with your emails is going to have a reasonably high amount of appeal to our hypothetical ideal prospect.
• Exclusivity: 5.0 — While there may be other players in our market; our business intelligence has determined that we are the only ESP currently capable of integration into every social media platform.

Step #4: Identify evidentials for your highest-ranked claims

Evidentials are the backbone of your potential claim because they make your claim quantifiable, or as Austin explained, “Once you understand your appeal and exclusivity, you want to begin building supporting credibility with your evidentials.”

To help intensify the credibility of potential claims, Austin shared three key principles for selecting evidentials:

1. Specification — Substitute general descriptions with specific facts.
2. Quantification — Quantify your claims.
3. Verification — Let someone else do your bragging.

Step #5: Combine the highest-ranked claims with supporting evidentials

This is where you bring it all together — by taking your highest-ranked claims and their supporting evidentials and turning them into what Austin described as “the ultimate conclusion as to why prospects should buy from you.”

Related Resources:

Value Proposition: Congress has a value exchange problem … do your marketing offers?

Value Prop: Is there true value in your marketing proposition?

Customer Value: The 4 essential levels of value propositions

Originally published on B2B LeadBlog

Customer relationship management (CRM) is defined a number of different ways. However, the most expansive definition takes a total end-to-end look at every interaction a person has with a company from simply becoming aware of the company at the very top of the sales funnel, all the way through customer service contact after the final conversion to a closed deal.

With a complex sale, many personal touch points in customer relationship management are present — such as directly answering a question posted on social media or an online forum. At the same time, the real engine driving CRM and keeping prospects moving through the sales funnel is technology.

The first technology that comes to mind is CRM software, such as Salesforce.com or Microsoft Dynamics. However, CRM technology potentially includes multiple pieces including email software and marketing automation (MA) solutions.

Paul Greenberg, Managing Principle, The 56 Group, LLC, and author of CRM at the Speed of Light, said although there are some technology suites that attempt to provide these solutions through the entire sales cycle, it is much more common for companies to integrate CRM technology from more than one vendor.

A common example is utilizing marketing automation software on the Marketing side of the funnel from one vendor and integrating that piece with CRM software from another vendor for the Sales side of the funnel, with a common database providing records on each prospect or customer for both pieces of software.

Paul said this creates something of a challenge because a number of different areas in the company are involved in implementing, and utilizing, CRM technology.

Marketing, Sales (and IT) alignment

Marketing and Sales alignment should be a goal for any company to improve the efficiency of the entire complex sale process Bringing multiple pieces of technology into the sales funnel adds another element within the company — the information technology department.

“Who owns [CRM technology] is a matter of the internal culture of a company,” Paul explained. “Could it be joint ownership between two departments? It could be, as we’re seeing increasingly.”

He added, “But, we’re seeing the CMOs are starting to own a lot of IT budgets, so it could be the CMO that owns that [technology].”

At the same time, the IT department traditionally has controlled technology pieces, so the CIO could possibly own the CRM technology, allocate usage, and make functional decisions based on the business outcomes Marketing and Sales are looking for in using CRM tech.

The role of marketing automation

Linda Athans, Marketing Manager, Tribridge, stated the size of the company might dictate how many pieces of CRM technology are deployed. “Ideally, your CRM can ‘do it all,'” she said, “but depending on your organization’s size and how it uses its CRM application, additional MA integration may be necessary to handle specific tasks.”

She mentioned a few areas where MA software can help Marketing:

• Automatically sending large quantities of emails
• Performing split testing on campaigns, such as email subject lines or copy
• Providing performance tracking and analytics on campaigns

Heidi Melin, CMO, Eloqua, obviously has a certain amount of vested interest as a MA software vendor, and she pointed out the value of MA for marketers.

“By integrating marketing automation with CRM [software], companies are able to get a better picture of their buyers and a better picture of how their marketing investments impact their revenue,” Heidi said. “That’s an area where companies are understanding that they can get a competitive advantage in tying a marketing automation solution into their existing CRM implementation to get more out of their investments.”

Brian Vellmure, Principal and Founder, Initium LLC/Innovantage International, added another advantage of bringing more than just CRM software into the customer relationship management technology picture: The nature of B2B sales has changed in recent years. Before, the sales team had a great deal of control over the information flow and education of prospects.

Now, according to Forrester analyst Lori Wizdo, two-thirds to 90% of the buying cycle is completed before a B2B buyer ever speaks with a sales rep.

Marketing automation helps the marketing team track prospects’ behavior, such as website visits and social media interaction, and then respond to that behavior with what the prospect is looking for, at the time they are looking for it and on the channel where they are looking.

“Then, [Marketing] offers an invitation to the next place on the prospect’s journey. I think that’s where marketing automation comes into play,” Brian explained.

How does your company handle CRM technology? What department “owns” each technology piece? We’d love to hear your thoughts and insights in the comments section.

Related Resources:

CRM How-to: Tactics on Marketing/IT alignment, database strategy and integrating social media data

Marketing Research Chart: Social CRM is increasingly important for managing social customer relationships

Defining CRM: Thoughts from three experts

How Technology on the Trade Show Floor Can Help Your Sales Team Work Smarter and Sell More

Lead Nurturing: 9 questions answered on lead qualification, nurturing, and Marketing-Sales alignment

Originally published on B2B LeadBlog

Dear Daniel,

First of all, happy new year!

I thank you so much for your complete and interesting feedback. It has been very useful for me.

Just one thing: may you give me some objective parameters to define a lead as qualified? I found so many definitions, and I’d like to ask for your support to point my attention to the best definition you’ve in mind.

I thank you again for your kind cooperation and, if you don’t mind, I’ll keep you updated to this project we’re carrying on in these first months of 2013.

With my best regards

Felix Mathew, marketing director, Rome, Italy

Felix had earlier asked me some questions about cost per lead, which I won’t share here, since the information is private to his company. However, I thought it would be helpful to publicly answer his follow-up question, about lead qualification, on the B2B Lead Roundtable Blog. I thought it might assist many readers, especially those newer to the complex sales and marketing process (and thank you to Felix for allowing me to share this publicly).

Lead qualification is …

First, let’s start with a basic definition. Defining a lead as qualified basically means they are qualified to talk to a sales representative. Essentially, this is a prospect who has a high likelihood to buy and is ready for sales engagement. Simple enough, right?

Well, that’s where simplicity breaks down. There is no one single way to determine what makes a lead qualified or not. Just as, to wax philosophic for a second, there is no single definition of beauty or love or good art or what good music is (or else my daughter would listen to much more Pearl Jam).

The best place to start is with a universal lead definition. This involves a sales-marketing huddle since, much like good art, it is not only the artist but also the art viewer and buyer that must agree on a definition. To put it more bluntly — if Sales doesn’t think the lead is qualified, it ain’t qualified.

Some of that involves actually listening to Sales and understanding what works for them, and some of it involves a little soft marketing power to sell the sellers, if you will, on why you define a qualified lead a certain way.

Now that we’ve defined a qualified lead, let’s focus on the question itself … objective parameters. Here are a few parameters you might want to consider, from least to most complex. This is by no means a comprehensive list, but rather a starting point to help get your juices flowing in conversations with Sales.

Contact information

This is the weakest qualification criteria I can think of, and would not constitute a truly qualified lead for many organizations, except in the rare case when …

I worked with a tech company in a market niche that hadn’t yet had any real competition, yet was extremely fast growing. If you’re lucky enough to find yourself in a similar situation — a low competition, very high-growth market — it might not take much to qualify a lead. This is as close as you’ll ever get to “the product that sells itself.”

In this case, the biggest challenge is throughput, closing as many leads as possible before the competition enters the market (and, they will inevitably enter the market if things are really this good). The sales conversation tends to focus on areas such as contract terms or service availability, and Sales might simply want you to give them names and get out of the way.

Again, this is a very rare case, but if this is your situation, you might find by talking to Sales that all they want is contact information, and they can close the deal at that point.

Firmographics

This won’t be helpful to every sales department, but simple firmographics is also information that is on the easier end of the spectrum.

For example, if your organization is far and away the leading service provider in a certain geographic area, for a certain organization size, or in a certain industry, this might be enough information for Sales to consider the lead qualified.

However, if you are, say, the leading systems integrator for a certain technology in Jacksonville, you are only wasting Sales time by giving them a lead from Seattle. That would not be a qualified lead.

BANT

BANT stands for Budget Authority Need Timeline (or Timeframe). This is a lead qualification and scoring methodology originally developed by IBM, but now commonly used.

You can instantly see how this would be helpful for a sales force, and where it takes place in the sales-marketing continuum can vary by organization.

Based on your organizational needs, you might decide that one or all of these factors are necessary for a lead to be considered qualified.

Also, by understanding some of these aspects, even if you’re not identifying a qualified lead, you are identifying excellent candidates for a nurturing track that eventually results in qualified leads (for example, Timeframe or Authority).

Behavioral analytics and lead scoring

Lead scoring (most effective when combined with behavioral analytics) is a more thorough, and therefore more complex, way of determining a qualified lead.

Much like with a blind date, with lead scoring you are essentially giving points to different characteristics or actions that signal a (sales) engagement is a likely outcome of this relationship (she’s physically attractive, +2; she keeps talking favorably about that political candidate that I think wants to ruin our country, -114).

The benefit of including behavioral analytics is that you can use the prospect’s actions to help qualify them. For example, if they download a whitepaper on your company’s specific wireless display architecture, that might warrant more points than simply checking a box on a lead form indicating a general interest in display standards.

To help with your own lead scoring efforts, here is a look at the top factors your peers use in lead score calculations, from the MarketingSherpa B2B Marketing Handbook …

Q. What actions or traits are currently considered in your lead scoring calculation?

Predictive analytics

This is on the harder end of the lead qualification spectrum because it involves math. It is also a non-traditional way to qualify a lead (and is used more often for lead generation).

But if you have a big old messy database, terms like predictive analytics, partition analysis, and regression analysis might be good to discuss with your data analysts … and might help you find some hidden treasure.

At a very basic level, you want to ask your data analyst to look for any commonalities between those already in your database of leads and your current customers. What attributes of your current customers might you have perhaps overlooked in leads that have gone cold?

This whole process might help your entire lead qualification effort, as well, by uncovering attributes that neither Marketing nor Sales has identified as predictors of the likelihood that sales engagement will lead to a closed deal, information that you can then use in your lead scoring or other lead qualification efforts.

Hand raiser

This is, by far, the hardest way to qualify a lead. These are also, in my opinion, the most valuable qualified leads.

By “hand raiser,” I mean someone that is actively in search of sales engagement from your company and is volunteering information and urging you to get in contact with them.

From my experience, this usually only happens with a really good lead nurturing or inbound marketing program.

Related Resources:

Why the Term “Marketing-Qualified Lead” Creates Serious Confusion — Part I

Universal Lead Definition: Why 61% of B2B marketers are wasting resources and how they can stop

Lead Generation: How 64% of marketers starve Sales of opportunity

Optimizing the Lead: 4-step lead generation analysis

Originally published on B2B LeadBlog

For the past seven years, trade shows have surpassed websites, email marketing and paid search to secure the top spot as B2B marketers? biggest investment, according to the MarketingSherpa 2012 B2B Marketing Benchmark Report.

But, do marketers make the most of this investment? I can’t help but wonder given my own trade show attendance experience.

For weeks after, I unsubscribe from newsletters and sales pitches from companies I barely recognize.

Here’s what I suspect happens:

• They sponsor the event and set up a booth.
• They put together a list of attendees’ contact info based on collected business cards, contest entries and captures from the dreaded lead guns, which instantly gather contact information by scanning trade show badges.
• They dump this list into their database.
• Attendees automatically receive whatever they’re already sending to their email lists.

Trade Show ≠ Instant Engagement

Just because someone attends a trade show does not mean that every organization in attendance is relevant to her, or that she is eager to receive newsletters, the latest product updates or a sales call. Too many companies wrongly assume trade show attendance equals instant engagement.

If you don’t want to be banished to the spam file or voicemail, take the succeeding steps when following up with trade show prospects:

1. Invite or welcome them to your email list. Explain how you attained their names, make it personal and connect back to their motivation. Example: “I hope you enjoyed the conference as much as I did. We really believe in (core event values).”If they chatted with a sales professional, reference that conversation. Do what you can to show what you have in common (primarily, the event) and why they should engage with your company.
2. Create event-related content. Again, the event is what connects you. Write articles and blogs about it. Interview the event’s subject matter experts. Bring along a reporter. Demonstrate your value to attendees by providing a fresh perspective and helping them assimilate even more knowledge. After all, that’s why they attend conferences and trade shows. Use this content as part of a nurturing campaign, as outlined below.
3. Don’t sell, nurture. Only 5% to 15% of inquiries are ready to speak to Sales, so the rest require nurturing until they fit your universal lead definition (ULD).  (Don’t have one? Make one. Find out how here: “Universal Lead Definition: Why 61% of B2B marketers are wasting resources and how they can stop.”)Develop a lead-nurturing campaign to guide prospects through the marketing funnel until they’re ready to speak to Sales. Find out how to do that here: “Lead Nurturing: You could be losing as much as 80% of your sales; here’s how you keep them.”
4. Encourage your salespeople to make personal connections. Make sure your sales professionals individually follow up with the people they spoke with, whether that’s through sending email, connecting on LinkedIn, or following them on Twitter. People build relationships with people, not companies.
5. Keep them engaged, even if they’re never going to be a customer. Don’t discard attendees who are not a fit; they could become a champion of your brand, or possibly a partner or collaborator. Engage them by developing a nurturing campaign that will keep them abreast of what’s happening in your organization. Invite them to subscribe to an online newsletter, attend online events, or connect via social media.

Want to learn more about how to make the most of your trade show investment? Check out this article: “9 Simple Tactics to Drive a Higher Return on Trade Show Investment.”

Do you have additional recommendations to optimize trade show follow-up? Feel free to share them in the comments. I would love to hear your ideas.

Related Resources:

MarketingSherpa Email Summit 2013 — February 19-22 in Las Vegas

How to Use Lead Scoring to Drive the Highest Return on Your Trade-Show Investment

Lead Generation: 39% say offline lead gen has somewhat decreased

Lead Generation: Trends in 2012 marketing budgets