How to Optimize Demand - The CMOs Next Frontier

OPTIMIZINGDEMAND

TheCMO’sNextFron1er

AdamNeedles–ChiefStrategyOfficer,ANNUITAS,Inc.–TwiDer:@abneedles

ANNUITASCLIENTSWITHMATURE, OPTIMIZEDPERPETUALDEMANDGENERATIONPROGRAMSDELIVERLEAD-TO-REVENUERESULTSTHATARE4-10XINDUSTRYAVERAGES.

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HOWCANYOUOPTIMIZEYOURDEMANDGENERATIONEFFORTSSOTHATTHEYOUT-PERFORM?

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DEMANDGENERATIONMATURITY

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DEMANDGENERAT ION MATURITY

ON L Y 2 7% HAVE MATURE D EMAND G ENERAT ION P ROGRAMS

Source:ANNUITAS,Inc.,“2016B2BEnterpriseDemandGenera1onSurvey.”

•  Directresponse•  Vendorpush•  Outboundoriented•  Periodic,short-term

•  “PerpetualDemandGeneraTon”•  Buyerpull•  Inboundoriented•  Alwayson,sustainable

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MATUR I T Y S P E C TRUM

MoreMaturity

LessMaturity

TacTcalDemand StrategicDemand

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G E T T I NG TO ‘ P E R P E TUA L D EMAND G ENERAT ION ’

DemandEngine DemandProcess

PersonaOne

PersonaTwo

PersonaThree

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OPTIMIZINGDEMAND

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DEMANDGENERAT ION

ANA L Y T I C S / O P T IM I Z A T I ON I N V E S TM EN T S G ROW I NG T H E F A S T E S T

Source:Adobe,“FourEssen1alElementsforDigitalMaturity,”2016.

WHATDODEMANDGENERATIONKPIs NEEDTOTELLUS?

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OPT IMIZ ING DEMAND

WHAT DO D EMAND G ENERAT ION K P I s N E ED TO T E L L U S ?

•  Howcanwebesureofthequalityandsustainabilityofourdemandgenera1onefforts?

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OPT IMIZ ING DEMAND



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OPT IMIZ ING DEMAND


•  DemandCreaTonEfficiency


•  HowcanwebesureweareopTmizingourmixofcontentandchannelsagainstthe‘true’journeyofourtargetedbuyer?

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OPT IMIZ ING DEMAND





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OPT IMIZ ING DEMAND



•  BuyerCriTcalPathAlignment



•  Howcanwebesureourmarke1ngeffortsarereallyproviding‘netlic’topipelineandrevenue?

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OPT IMIZ ING DEMAND






•  Howcanwebesureourmarke1ngeffortsarereallyproviding‘netlic’topipelineandrevenue?

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OPT IMIZ ING DEMAND




•  RevenueImpact

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OPT IMIZ ING DEMAND

THE E I GHT ‘ COR E K P I s ’ F OR OP T IM I Z I NG D EMAND

•  Engaged-to-QualifiedLead

•  QualifiedLead-to-Opportunity

•  Engaged-to-ClosedWon

•  Pipeline/RevenueMarke1ngSourced

•  Pipeline/RevenueMarke1ngInfluenced

•  Channel/ContentElas1city

•  Channel/ContentVelocity

•  Mul1-touchADribu1onofChannel/ContentROI

DemandCreaTonEfficiency BuyerCriTcalPathAlignment RevenueImpact

DEMANDCREATIONEFFICIENCY

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DEMANDCREAT ION EFF IC IENCY

6 7% HAVE A DOCUMENTED L EAD MANAGEMENT F RAMEWORK


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TH E E I GHT ‘ COR E K P I s ’ F OR OP T IM I Z I NG D EMAND










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DemandCreaTonEfficiency

K P I : “ ENGAGED - TO -QUA L I F I E D L E AD ” % CONVER S ION

•  Efficiency of multi-channel Engagement, Nurturing and Lead Qualification•  LSC

ENG>QL=#QualifiedLeads/#Engaged*100%

ProgramAge:3Quarters ProgramAge:8Quarters

6.39% 14.0%

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B E N C HMAR K S : “ E NGAG ED - T O - QUA L I F I E D L E A D ” % C ONV E R S I ON


B2B Benchmark Targets•  Direct-response / ‘Push’ demand generation: 4-6%•  Perpetual DG / ‘Buyer-pull’ demand generation: 8-16%

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K P I : “ QUA L I F I E D L E AD - TO -OPPORTUN I T Y ” % CONVER S ION

•  Quality of Qualified Leads being produced by demand generation; rate of acceptance of these Qualified Leads going to sales to build Opportunity pipeline

•  LSCQL>OPPTY

=#OpportuniCes/#QualifiedLeads*100%


43.5% 45.7%

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B E N C HMA R K S : “ Q U A L I F I E D L E A D - T O - O P P O R T UN I T Y ” % C O N V E R S I O N


B2B Benchmark Targets•  Direct-response / ‘Push’ demand generation: 30%•  Perpetual DG / ‘Buyer-pull’ demand generation: 40-50%

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B E N C HMA R K S : “ Q U A L I F I E D L E A D - T O - O P P O R T UN I T Y ” % C O N V E R S I O N

•  Quality of Qualified Leads being produced by demand generation; rate of acceptance of these Qualified Leads going to sales to build Opportunity pipeline

•  LSCQL>OPPTY

=#OpportuniCes/#QualifiedLeads*100%

ProgramAge:3Quarters

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K P I : “ ENGAGED - TO - C LO S ED WON” % CONVER S ION

•  Balanced, end-to-end view of how effective up-stream demand generation activities are on driving downstream revenue; adds win rate to funnel conversion perspective

•  LSCENG>CW

=#ClosedWon/#Engaged*100%


0.44% 3.58%

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B ENCHMARKS : “ ENGAGED - TO - C LO S ED WON” % CONVER S ION


B2B Benchmark Targets•  Direct-response / ‘Push’ demand generation: 0.2-0.85%•  Perpetual DG / ‘Buyer-pull’ demand generation: 1-4%

BUYERCRITICALPATHALIGNMENT

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BUYER CR IT ICAL PATH AL IGNMENT

BUY ER E X P ER I ENC E THAT ‘ E X C E ED S ’ I S NOT TH E NORM

Source:Forrester,”Expecta1onVs.Experience:TheGood,TheBad,TheOpportunity,”June2016.

“CMOs...reportthatofalltheindividualstheyreachwiththeirmarke1ngmessages,fewerthan18percentareactuallyinthemarketfortheproductorserviceonoffer.”

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8 2% O F D EMAND G E N E R A T I ON I S ‘W RONG P L A C E , W RONG T IM E ’

Source:AccentureInterac1ve,”WasteorWin?TheCaseforJust-in-1meMarke1ng,”2016.

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B U Y E R J O U R N E Y A L I G NM E N T L E A D S T O M A R K E T I N G ‘ O U T P E R F O RM A N C E ’

Source:SalesforceResearch,”2016StateofMarke1ng.”

142016 State of Marketing

Salesforce Research

High performers Moderate performers Underperformers

Top Marketing Teams Commit to the Customer JourneyFrom adopting strategy to actively mapping touchpoints, high-performing marketing leaders make the customer journey a priority.

In our 2016 research, “customer journey” is defined as all interactions that customers have with a company’s brands, products, or services across all touchpoints and channels. High-performing marketing teams are 8.8x more likely than underperformers to strongly agree that they have adopted a customer journey strategy as part of their overall business strategy.

But top marketers know that identifying the customer journey is an ongoing pursuit. Whether a marathon or a series of sprints, well-executed journeys must be contextual to the moment and personalized to individual customers. While 65% of high performers strongly agree their company has adopted a customer journey approach, 61% are actively mapping their journeys.

Among high-performing teams, 88% say a customer journey strategy is critical to the success of their overall marketing.

Has adopted a customer journey strategy as part of its overall business strategy

65%

61%

7%

6%

23%

22%Is actively mapping the customer journey

High-performing vs. Underperforming Teams

Percentage Who Strongly Agree with Each Statement

8.8xmore likely to strongly agree

9.7xmore likely to strongly agree

Practices of High-Performing Marketing TeamsTop Marketing Teams Win with a Customer Journey Strategy01

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•  Channel/ContentElasTcity



BuyerCriTcalPathAlignment

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KP I : “ CHANNE L / CONT ENT E L A S T I C I T Y ”

•  Probability that a Prospect’s interaction with a given Engagement Channel or Content Offer will lead to a Closed Won outcome

•  ECHANNEL/CONTENT

=#ClosedWon/#ChannelorContentInteracCons*100%

ChannelElasTcity ContentElasTcity

SCWX

SCWX

SCWX

SCWX





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•  Time from the point where a Prospect interacts with a given Engagement Channel or Content Offer to the point where (s)he becomes Closed Won

•  VELCHANNEL/CONTENT

=AVERAGE#DAYS(DateofClosedWon–DateofChannelorContentInteracCons)

ContentVelocity

ChannelVelocity

K P I : “ CHANNE L / CONT ENT V E LOC I T Y ”



•  MulT-touchAmribuTonofChannel/ContentROI


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•  Distributing the results from a Closed Won result across all of the Engagement Channels and/or Content Offers consumed during the course of the buyer's journey

•  ROIATTRCHANNEL/CONTENT

=1/Total#ofChannelorContentInteracCons*$SpendperChannelorContent

MulT-touchAnalysis

SCWX

SCWX

MulT-touchAmribuTon/ROI



•  MulT-touchAmribuTonofChannel/ContentROI


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•  Distributing the results from a Closed Won result across all of the Engagement Channels and/or Content Offers consumed during the course of the buyer's journey

•  ROIATTRCHANNEL/CONTENT

=1/Total#ofChannelorContentInteracCons*$SpendperChannelorContent

REVENUEIMPACT

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REVENUE IMPACT

~ 6 5% S A Y ‘ P I P E L I N E ’ / ‘ R E V E NU E S ’ A R E T O P M E A SU R E S O F S U C C E S S


11 What is your PRIMARY measure of success for Demand Generation programs/campaigns?

This indicates that many demand generation marketing departments are still grappling with adopting a standard set of Key Performance Indicators that allow them to accurately measure their demand generation success.

0 20 40 60 80 100

Opportunities Delivered, 8.0%

Opens, Clicks, Impressions, etc., 6.2%

New Activity at Known/Target Accounts, 3.5%

No Consistent Measurement, 3.5%

15%

Revenue Generated, 20.4% Net New Leads, 16.8% Qualified Leads DeliveredPipeline Generated, 23.9%

Other, 2.7%

Pipeline Generated 23.9%

Revenue Generated 20.4%

Net New Leads 16.8%

Qualified Leads Delivered 15%

Opportunities Delivered 8%

Opens, Clicks, Impressions, etc. 6.2%

New Activity at Known/Target Accounts 3.5%

No Consistent Measurement 3.5%

Other 2.7%

As in years past, the measurements that are being applied to demand generation are not aligned to what respondents stated as their overall objectives. While the measurement of contribution to pipeline and revenue are an indication of a quality lead, 15% of firms stated that they have a separate metric for quality leads (a 14% decrease from last years survey) delivered yet 81% it was their number one goal.

7D E M A N D G E N E R A T I O N O V E R V I E W

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REVENUE IMPACT











•  Pipeline/RevenueMarkeTngSourced


RevenueImpact

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REVENUE IMPACT

K P I : “ P I P E L I N E / R EV ENUE MARKE T I NG SOURC ED ”

•  Tracking the pipeline Opportunities and Closed Won revenue that are originally attributable to a marketing interaction

•  CONTRDEMAND

=#DGSourcedOpportuniCes(ClosedWon)/#TotalOpportuniCes(ClosedWon)*100%

•  Pipeline/RevenueMarkeTngSourced


RevenueImpact

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REVENUE IMPACT

B ENCHMARKS : “ P I P E L I N E / R EV ENUE MARKE T I NG SOURC ED ”

B2B Benchmark Targets•  Direct-response / ‘Push’ demand generation: 2.5-6.5%•  Perpetual DG / ‘Buyer-pull’ demand generation: 6.5-20%


•  Pipeline/RevenueMarkeTngInfluenced

RevenueImpact

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REVENUE IMPACT

K P I : “ P I P E L I N E / R EV ENUE MARKE T I NG I N F LU ENC ED ”

•  Tracking the pipeline Opportunities and Closed Won revenue that are originally attributable to a marketing interaction

•  CONTRDEMAND

=#DGInfluencedOpportuniCes(ClosedWon)/#TotalOpportuniCes(ClosedWon)*100%


•  Pipeline/RevenueMarkeTngInfluenced

RevenueImpact

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REVENUE IMPACT

B EN CHMAR K S : “ P I P E L I N E / R E V E NU E MAR K E T I N G I N F L U EN C E D ”

B2B Benchmark Targets•  Direct-response / ‘Push’ demand generation: 4-20%•  Perpetual DG / ‘Buyer-pull’ demand generation: 15-60%

3-6xsourced

3-6xsourced

‘OPERATIONALIZING’OPTIMIZATION

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HOWCANYOUDRIVECONTINUOUSOPTIMIZATION?

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OPERAT IONAL IZ ING OPT IMIZAT ION

HOW CAN YOU DR I V E CONT INUOUS OP T IM I ZA T ION?

•  Full,closed-loop‘pointvisualizaTon’ofperformance§  Focusoncontent,channel,LDTandsales‘levers’§  Iden1fyhow/whereincrementaladjustmentscanimpacttheen1relead-to-revenueequa1on

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•  CadenceofreviewandopTmizaTonacTonitems§  Bi-monthly§  Monthly§  Quarterly

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•  CadenceofreviewandopTmizaTonacTonitems§  Bi-monthly§  Monthly§  Quarterly

•  Governanceandaccountability–withsome‘reciprocity’§  Marke1ng§  Sales§  Finance

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THANKYOU. QUESTIONS?

AdamNeedlesChiefStrategyOfficer,ANNUITAS,[email protected]

TwiDer:@abneedles