MarketingSherpa Blog

“The best research is when individuals pull out their wallet and vote with cold, hard cash.” – my first boss

My first experience in marketing was working with a specialized publishing company. I had the privilege to work on exciting products with sexy topics such as “human resource compliance regulations.” Trust me when I tell you there is no better ice-breaker at a party than talking about a ground-breaking court ruling that will change how your company meets compliance of the Fair Labor Standards Act (FLSA).

As a publisher, we used direct-response marketing to drive sales, with an aggressive program of direct-mail, email and telemarketing. And when it came to new product development, we were big believers in research. From customer surveys to industry research to focus groups, we used it all to make the best possible decision. At least, that was the general assumption…

Out of focus

You always have to test because many research tactics just help you achieve a best guess. And while a best guess is often closer to the truth than a random guess, it’s sometimes widely off the mark. In fact, I learned a valuable lesson one day when our company performed a focus group.

The members of this particular focus group were subscribers of a paid newsletter, and we knew that each person had subscribed by responding to a specific direct mail piece. That mail piece was extremely effective, with a powerful but somewhat provocative subject line and letter. Many people loved that direct-mail piece, but many hated it, so we wanted to get the opinion of the focus group members. When we showed the group the direct-mail piece and asked them if they would respond to that piece, 40 percent said they would never respond (if they only knew what we knew). Wow, we were shocked!

So, should we conclude that those 40% were bold-faced liars? Not necessarily. What we can conclude is that what people say they will do and what they actually do may be totally different. That is why research is only part of the equation, but if you want to sleep well at night, you have to take the next step…

Voting with their wallets

At the end of the day, the best research was when we tested the product and let the customers in the marketplace determine with their wallet if it was a viable product. We would test critical elements, like book title and price, and very quickly we would know if we had a winner or not.

Yes, all of the surveys and research were necessary to get started, but the most critical research was in our testing program. Testing is an amazing research tool. Regardless of the conversion you are trying to achieve, when your prospect takes (or doesn’t take) an action, you a have a valuable piece of information. Your conversion goal may be an event ticket sale, a white paper download, an email newsletter signup, or hundreds of other possible actions, but one thing never changes – the action you are seeking to drive can be tracked.

And if you’re ready to measure when your prospect engages with you, that is when the learning begins.

So, I’m thankful for that boss early in my career telling me repeatedly that the best research is when individuals pull out their wallet and vote with cold-hard cash. Over the years, I’ve had many experiences when individuals tell me they are going to do something but until they actually do it, I’m a little skeptical. (Editor’s Note: It’s true. Todd told me he was going to write a blog post for quite awhile. Now, I believe it.)

So gather as much research as possible, but always remember that cold, hard cash is a pretty sweet piece of research.

Related resources

Are Surveys Misleading? 7 Questions for Better Market Research (Members Library)

Marketing Research and Surveys: There are no secrets to online marketing success in this blog post

Focus Groups Vs. Reality: Would you buy a product that doesn’t exist with pretend money you don’t have?

Never Pull Sofa Duty Again: Stop guessing what your audience wants and start asking

Few things in life worth having come without risk and hard work — and marketing is no different.

Social media marketing can give your brand a stronger, more personal connection with customers. This is accomplished by spending time interacting (hard work) in a public arena (which heightens risk).

Old Spice made its brand relevant to a new generation of consumers through a bold multi-channel viral video marketing campaign. “Bold” is nearly synonymous with “risky,” and the jaw dropping rate at which this team churned out videos must have been exhausting.

In a final example, MarketingSherpa published a case study today describing how the Indianapolis Symphony Orchestra’s marketing team systematically asked email subscribers to re-opt into its newsletters. Those who opted out or did not reply were removed from the database (see case study for details).

The initial result was an email database approximately 4.1% of its original size.

“It was small, but the beautiful thing was that it gave us a really strong foundation to build from,” says Mark Newman, VP, Marketing and Communications, Indianapolis Symphony Orchestra. “We were now getting people who really wanted to get emails from us. These are engaged people.”

Newman described the effort as “a scary thing we were embarking on” but knew that it was the correct approach to establish a valuable email marketing program.

“Early on, I felt we were trying to prove the theory right. And I feel good about where we are because we’re seeing our list grow,” he says.

And grow it has. As you’ll see in the case study, Newman’s team grew the list by more than 500% from this low point. It is now a powerful channel for improving sales. By accepting some risk and hard work, the team achieved great results.

If your team ran a fantastic email marketing campaign this year — send it into MarketingSherpa’s 2011 Email Awards. We want to see how your team took risks, rolled up its sleeves and achieved great results. Deadline for submissions is Friday, Dec. 3 — so hurry!

In today’s free webinar at 1:00 p.m. EDT – B2B Marketing Summit Wrap-up: Quick takeaways distilled from 478 marketers on lead nurturing, social media marketing, and more – we will share successful B2B strategies and techniques from the MarketingSherpa B2B Summit ’10 in Boston and San Francisco.

But first, we wanted to hear what worked well for you this year. Here are a few of our favorite answers…

Social media marketing plus search engine optimization

In the last year, my most successful B2B strategy involved incorporating a low involvement SMM program with two of our online products. This increased our SEO and client re-buys. We accomplished this goal by strategically including a few simple widgets within our own site, e-marketing newsletters, and on few conversion points where we were able to increase our conversion and click-throughs.

– Carlos Barbour, Marketing Technology Specialist at The Spokesman-Review

Finding a blogging niche

Blogging with heavy emphasis on quality content and SEO has been great for lead generation. Going after specific, long-tail or niche terms works better than trying to compete on broad competitive terms, because when B2B searchers are in research mode, their search terms become more specific. Searchers in research mode are attracted to blog posts, because they are assumed to have high informational value. To make this strategy work, you need a clear call to action on your blog post. Otherwise, there’s too much potential for the visitor to click off after making use of your valuable content.

– Brad Shorr, Director of Content Marketing at Straight North

Learn, improve…and grow

Our firm has found great success in having a structured data management plan in place. This ensures even distribution of effort across a prospect universe and allows for strategic data recycling. Traditionally, calling campaigns do not typically leverage business intelligence that is uncovered in initial prospect/customer dialogs to enhance future interactions. Instead, records are recycled in programs based on timing considerations. Often, this leads to the same process to capture the same information being repeated in the next campaign. The investment made to capture business intelligence is largely wasted if it is not leveraged in the future. Building prospect/customer intelligence in a structured manner and having visibility into relevant attributes of prospects enables sales and marketing to develop roadmaps for future communications.

– Mary Beth Russell, VP of Business Development at Cornerstone Marketing Services

A couple of my colleagues at MECLABS also had some advice that I thought you might find helpful…

A/B testing for teleprospecting

In my teleprospecting role, I use a lot of messaging testing to determine decision makers pain points when taking sales calls and creating a greater impression of expectations for their follow-up call from my clients’ sales team.

Most recently I’ve begun asking decision makers if they’d take a few minutes with me to determine if we can match their needs for data asset management and following this, if we are a fit, I’ll set up a data governance workshop that will uncover point-to-point value for business, legal, compliance, IT and executive users. This governance workshop will also get the ball rolling to help them determine a clear ROI roadmap on the purchase of a clients’ solution.

This approach has increased my lead generation from .04 leads per hour to .35 leads per hour for one particular client, achieve an unmeasureable success for another, and has allowed me to get in a few good conversations for a project I’ve just started.

I’ve found that some A/B testing of messaging in my teleprospecting efforts can create efficiency and effectiveness similar to how A/B testing of search terms/SEO can drive exponential results.

– Jason Croyle, Lead Generation Specialist at MECLABS Leads Group

If they’re hiring, they’re buying

Of course my main resource will always be the human touch possible through both the phone and e-mail, but there are a lot of things that can help make that more effective… none more important than relevance. One of the biggest untapped resources for relevance in my opinion is careerbuilder.com. It doesn’t matter what industry you are in, there are search fields to find the relevance you seek.

In my case, I target companies by region that are looking to hire for the position of new business development, inside sales, field marketing, etc. Any company hiring for those positions will have lead generation on their list of relevance, as well as a need to be shown the value of outsourcing vs. inhouse.

You can change the fields to match a company seeking to fill any need your company can provide.

– Mark Smith, Business Development Rep at MECLABS Leads Group

Related resources

B2B Marketing Summit Wrap-up: Quick takeaways distilled from 478 marketers on lead nurturing, social media marketing, and more – Join us today at 1:00 p.m. EDT

Fostering Sales-Marketing Alignment: A 5-Step Lead Management Process

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

Hey email marketing managers…are you working hard to create the best possible campaigns? If so, you may be missing a huge opportunity. Check out my recent chat with noted marketing strategist and best-selling author David Meerman Scott at the recent MarketingSherpa B2B Marketing Summit…

I like campaigns myself. I’m a plan-ahead kind of guy. But David makes an excellent case for real-time marketing. In a 24/7 news world, we can’t be complacent and just set it and forget it.

He also makes a good point that massive, monolithic corporations are so…impersonal. As MECLABS Managing Director (CEO) Flint McGlaughlin says, “People don’t buy from websites, people buy from people.”

So look past your campaigns, get all of your real people out from beyond the corporate façade…and hopefully advance your career in the process.

To hear more from David Meerman Scott, join us in Las Vegas from January 24-26 for MarketingSherpa Email Summit 2011. Thanks to a generous sponsorship by ExactTarget, David will be the keynote speaker. And Flint will be speaking there as well.

Related Resources

Email Summit 2011 – Learn from Sherpa’s Latest Research, Case Studies and Training

B2B Marketing Summit Wrap-up: Quick takeaways distilled from 478 marketers on lead nurturing, social media marketing, and more

Transparent Marketing: How to earn the trust of a skeptical consumer

Return on investment is top of mind for marketers these days as most marketing efforts come under the scrutiny of ROI justification.

Here are a few insights gleaned from an interview with Jim Lenskold, President of the Lenskold Group, about how to improve and optimize the measurement of marketing ROI:

1. The biggest challenge in improving marketing ROI is removing cultural barriers and instilling a sense of discipline in planning and assessing the financial contribution of marketing.

2. Marketing strategies that do a better job targeting higher value, higher converting segments have the greatest impact on ROI.

3. Measurements that use market testing and modeling are most conclusive and often under-utilized when measuring marketing effectiveness.

4. Choosing measurements that provide insight about how to improve future initiatives is the most important step in generating greater performance and profitability.

5. Using revenue instead of profits as the return is a basic financial error that marketers make. It must be corrected for accurate ROI calculations and credibility with executives.

Marketers can’t afford to offend the powerful force that is the mom blogosphere. The recent Motrin mommy mess-up is a testament to that. Read more…

I woke with a start at four in the morning in a hotel room in Scottsdale, Arizona, where I was conducting research at a marketing trade show in October 1999.

Back then, as now, marketing, PR and advertising professionals were nearly deafened by a deluge of media “serving” them. Magazines, events, newsletters, etc., etc. But, as a 20-year veteran, I felt that huge amount of content hadn’t been terribly useful in the everyday business of running a real-world marketing department. Read more…

I got a call this week from a charitable organization. Their cause sounded very, very worthy.

But this is what happened. I asked them: If I made a donation, would they email me a receipt? I made it clear that that would be the only way I would contribute. I have had the experience in the past, where if you donate, the organization will email you a receipt. Read more…

Mr. Phinney was a genuinely nice science teacher in my high school. He liked to relax and chat casually with students while not in class. Like many science enthusiasts, Mr. Phinney (or occasionally Phinn-dog) knew a lot of strange things about the world.

Read more…

There’s a lot to be said for marketing to one of our closest neighbors, Canada – especially when their economy (and dollar) is strong, and ours remains weaker.

There is plenty of opportunity for B-to-B marketers targeting Canada. I discovered this opportunity while doing research for a special report on marketing to Canadians.

Read more…