drive2

B2B marketers aren't scared of the big bad economy

MarketingProfs has just released their B-toB Marketing in 2008 report, their latest survey of B2B marketers. In it, they asked which tactics will be most important in the 2009 marketing mix. According to the results, they are: 
1. Websites
2. Email campaigns/newsletters
3. Webinars
4. Inside Sales
5. Blogs
6. Social Networks

63% said the top tactics they named have changed significantly in the last year. Some of that is certainly due to current economic austerity, but that’s not slowing down marketers adoption of new tactics. Consider that items 5 & 6 have only come along in the last 5 years, and items 2 & 3 barely existed 10 years ago. If I had to say, the shift is being pushed just as much by tight budgets as it’s being pulled by the power of online technologies. 

Of course, those of us who love demand creation find it inspiring to see “Inside Sales” made the list. We believe that no matter what the business cycle or the technology curve are doing, using a person to build leads into real prospects never goes out of style.

A level playing field for all marketers

Let me first say that I’ve never ever done B2C marketing. Yesterday I spoke with a non-marketer about what “B2B marketing” is. He kept trying to understand it by comparing it to slick consumer marketing tactics he’s seen. I found myself repeatedly saying “No, B2B can’t do that because it costs too much,” or “B2B hasn’t caught up to that level yet.” But as I thought more about it, I came up with many B2B tactics that have revolutionized our jobs. Here are a few of them:

REMOTE SALES
15 years ago, I was a marketing analyst for a services company in which ‘sales calls’ involved several people disappearing from the office for several days. Now the need to connect in-person was, is and always will be a vital step for B2B sales, but that’s not the way one software company sold me. I’d called them about their statistical analysis program and received a floppy disk (!) in the mail. Shortly after, an inside representative called and asked me to run the program. In that one call, we walked through some demo data and ran some reports; I echoed his actions and he magically described everything on my screen. Well since then, web-demos, demos using real-time data and mobile apps have all become standard staples for B2B teams. But looking back, we should be amazed at how far we’ve come and how much we can accomplish without meeting in-person.

CRMs
Say what you will about it, but the adoption of Customer Relationship Management system (CRM) has improved client service and prospect engagement.  Years ago, when you ordered something from a Manufacturer, you needed to know your customer #, the catalog SKU, your receiving department’s particulars and your PO number. It was once commonplace for several sales reps from the same company to hassle you – sometimes VPs tacitly encouraged this practice. Thank goodness CRM’s have made these problems a thing of the past. CRMs have now burgeoned into profiles, which allow users to generated content that they share with their vendor as well as with other like-minded members. Constant Contact and WordPress have forums that are banding users together and slashing support costs all at the same time. I can’t wait to see where online interaction will take us next.

ONLINE DIALOGUES
In the corporate world, most people who use (or are candidates to use) a product make themselves known to vendors. This trend, called permission marketing nowadays, began when companies started opening their email systems to ‘outside’ senders. Judging by the number of corporate newsletters, RSS feeds, listservs and online forms that exist, I’d say this development has been largely positive. In my own experience, I can point to email communications that brought in a major upsell, drove a sudden change to a user conference that was weeks away and re-opened talks with a client who wouldn’t talk to our sales rep. There are still improvements to be made in segmenting and personalizing emails – our bloated inboxes demand it, but the technology to do this is now within almost every business’ reach.

So getting back to the conversation I had yesterday, I ended up upholding B2B marketing as every bit as potent in reaching its market as B2C is in reaching consumers. It seems that marketers, regardless of their target audience, are being put on a level playing field. There’s no longer two camps of marketing competing for dominance, but this levelling has put us all into one big training camp where all marketers can sharpen their skills and learn from whomever has the best ideas.

The Software Isn’t the Solution

By Matt Massey, CEO drive2 Inc.

Question. What lead generation, CRM, marketing automation, web analytics, lead management, data aggregation tool(s) are you using right now?

Next question. How did you evaluate the acquisition of those software products or solutions? Were they based on your overarching vision of what your sales and marketing infrastructure, sales and marketing strategy and tactical programs are or will be?

Overwhelmed? You're not alone, a lot of CEOs, VPs, Directors of marketing and even small business owners are as well!

There are a pile of software offerings out there right now. Too many vendors with too little differentiation. Over the next few years, I believe we are going to see a consolidation of companies and some stabilization in the market offerings.

This process will effectively level the playing field and lessen the HUGE confusion for marketers trying to evaluate the "right fit" solution for their organization.

But hold up a second. I'll be brave and say that the Software Isn't the Solution.

Companies need to put the infrastructure in place and refocus the organizational mindset, then define their process for tactical execution of marketing programs, THEN make the investment in technology to support tactical execution of marketing programs.

I believe the companies that will succeed in the lead gen/demand creation world will come from one of two verticals.

1. Software Companies that offer a one stop CRM, LEAD MANAGEMENT, MARKETING AUTOMATION, DATA AGGREGATION/ANAYLYTICS.
2. Services Companies that understand the infrastructure and process pieces - then as channel partners for the software vendor will implement the appropriate technology to support the infra and process components.

The services play for my two cents is where it's at! More companies need help to tackle the infra issues first, then the tactical execution second.

We work primarily with technology companies here in Canada. In virtually every instance, the primary challenge within the organizations we talk to is bandwidth - not tech bandwidth, people bandwidth.

Who has time? There just isn't enough time in the day for marketing and sales folks to build the vision, the infra, the programs, evaluate the software vendor offerings and implement all of the above. This situation is repeatable in small, medium and large organizations – trust me, we see it all the time. That's why we are placing our bets on the outsourced services model.

drive2 is a demand creation company. We develop performance driven, results-based lead generation and demand creation programs for technology and services companies. For more information on demand creation on how drive2 can work with your company, visit www.drive-2.com.

Stop selling your technology now!

By Matt Massey, CEO drive2 Inc.

I know, telling technology companies to stop selling technology is like asking; "Is water wet?"

What I'm really saying is stop marketing the technology and start selling the business value. According to Business 2.0 Magazine, in 2008, there are more technology companies appearing on the landscape, with market-ready technology, than ever before. We've gotten past the boom, bust and rebound of the .com bubble and these are tech companies ready to go-to-market.

The challenge for almost every technology company is to rise above selling to the IT departments of target customers and start selling to the business line decision makers.

Why? What's the difference?

Selling your technology to IT, engineering or technology departments of target customers poses a significant challenge for small and medium tech companies. Primarily, it results in elongating the sales cycle by first trying to get on the radar screen of already over worked tech departments of a target customer. Then immediately enter into a long process of technology evaluation and fit then eventually moving up the line to determine fit within the existing business model. Add to this challenge if you are small or medium company with low brand awareness, having an even more difficult time because they've never heard of you.

The Business Line Sales Focus –

Sell your business value to the Business Line of a target customer. It's a top down strategy. Engaging at the C-level, Board-level or VP level of the business line, will in most sales processes, qualify your opportunities better and achieve buy-in from senior executives who can drive the process internally and expedite the sales process. Conversely, it can earn you a solid No more quickly and allow you to move on to the next target customer without the issue of having prolonged the sales process, only to arrive at a negative outcome.

Yes, there is the still challenge of getting on the radar screen of the senior executive and demonstrating your relevant business value, but once you've entrenched yourself with the target customer decision maker, its smoother road to a PO and you can drive faster to get there.

drive2 is a demand creation company. We develop performance driven, results-based lead generation and demand creation programs for technology and services companies. For more information on demand creation and on how drive2 can work with your company, visit www.drive-2.com.

This year I will... 10 resolutions for your company and its technology

I borrowed this from Backbone Magazine excellent read for anyone in working in the technology world. Matt Massey, CEO drive2 Inc.

In January our thoughts turn to resolutions. Exercise more, work less, spend time with family and friends, read a book, take a course: the month is replete with good intentions. To help give your business resolve a head start this year, Backbone presents 10 resolutions you will actually want to keep. 1 Find your data by Danny Bradbury How much time do you spend searching for information on your desktop or on your company network? Are you an obsessive filer, with obscure sub-folders for everything, or a systematic dumper, putting everything into a single location to be sorted later? Either way, you probably have information languishing on your hard drive that is difficult to retrieve. Thanks to enterprise search and desktop search tools, however, your problems may be over. Tools such as Google Desktop and the new integrated search function in Windows Vista are making it easier to find those mislaid files. They work by indexing files you store on your hard drive as you create them. These products index not only by filename but also by content. This means you can search for someone mentioned in a Word document, for example, without remembering where that document is or what it was called. And these systems often support third-party plug-ins, enabling users to search content created in different applications. For those who require more sophistication, products such as X1, from the company of the same name, include tailored searches using Boolean operators plus range searching: finding files that were created between particular dates. X1 can also search across the network, so you can find files located on a central server. Network searching becomes particularly important in workgroup settings, where multiple people may be uploading files to a single location. Hardware appliances contain search features embedded into a sealed box that sits on the network. Examples include Google’s Mini and Search Appliance products, aimed at small businesses and medium to large enterprises respectively. These provide a browser-based interface that doesn’t require software. It is difficult to calculate a return on investment for search tools and appliances such as these, but gauge how much time you spend swearing at your screen as you try to track down missing information and use that as a starting point. If they don’t save you money, these tools may at least save your sanity. 2 Investigate Software as a Service by Issie Rabinovitch One of the fastest growing segments of information technology is Software as a Service (SaaS), the current name for what used to be called hosted or on-demand applications. In the SaaS model, users pay a monthly fee to access applications running on a provider’s servers. The applications can be used on any computer with a Web browser and a broadband Internet connection. There’s no upfront cost because there’s no purchase and no installation, and you can begin using the applications as soon as you establish an account. The SaaS provider keeps the applications updated and your data backed up and secure, eliminating two of your largest corporate headaches in the process. The quality and number of available applications is on the rise. Eventually, most types of software will be available via SaaS. CRM, ERP, e-commerce and accounting are popular categories, but a better starting point may be Google Docs and Spreadsheets, two capable and free Microsoft-compatible office productivity applications. At a minimum, Google’s offering will meet the basic word processing and spreadsheet needs of the majority of users. Existing files can be imported and edited and files created are compatible with Microsoft Word and Excel. Google doesn’t provide all of the advanced features of Word and Excel, but users get increased collaboration functionality as a trade-off. Files can be shared with other users and there’s never an issue about using the latest version of an application. All changes are preserved, even when far-flung users edit a file concurrently. 3 Explore 2D bar codes by Ian Harvey First came the bar code, then RFID tags. Now, get ready for 2D codes to take product packaging and social networking to a whole different level. Think of 2D as a square or rectangular label with black pixels and white space, just as a bar code (Universal Product Code or UPC) is a series of vertical lines. Using a 2D code requires a smartphone with a camera. Snap the shot, process it through free downloadable software and presto, you’re directed to a Web site with more information about that product, person or service. Like regular bar codes, 2D versions can be printed on packaging, but unlike their predecessors, they can also be published online or on TV and displayed on giant stadium screens, telephone poles, business cards, in store windows and on billboards, opening up a whole new marketing channel. Say you meet someone at a bar. Snap her code symbol and use it to access her Facebook profile, for example. Or, want to know if that veggie product was made with beef fat? Snap. Buy tickets online from a concert poster? Snap. Watch a video of the winning goal you read about in this morning’s paper? Snap. However, there is a Blue Ray/HD-type war going on. On one side, the big guns of the Mobile Code Consortium (aka MC2 at mobilecodes.org): Hewlett-Packard, Nokia, KPN and Telefónica O2 Europe, Gavitex, NeoMedia Technologies and Publicis. They are working to establish standards in much the same way as the group controlling UPC. On the other side are the upstarts: Hookcode, Qcode, Paperclip, Shotcode and Nextcode, looking for traction and critical mass to win market dominance. The potential is there, now we’re just waiting for the right entrepreneurs to move on this. Unfortunately, that may have to wait for one standard to emerge. 4 Make business systems one by Danny Bradbury You are a small business with 10 employees and you have a problem: none of your systems can speak to each other. Shipping doesn’t know what the accounts department is doing and marketing’s systems aren’t talking to customer support. Your sales people are cold-calling customers who are already fuming about late product shipments. The CEO must make four phone calls to get a snapshot of the business, and that gets particularly difficult when she is on the road. So that needs to change. One option is to buy an integrated business software package you can run locally on your own computer. Such packages either store all information in a single database or include different modules that can talk to each other, linking your business functions. Several exist, varying with the size and sophistication of your business. For example, Microsoft offers Dynamics NAV, which integrates functions including financial management, distribution, purchase and payables, and sales and marketing. Sage sells a suite of products that can be integrated to carry out different functions, and SAP produces Business One, an integrated system targeting small to mid-sized businesses with revenues starting in the millions. Another option is to take your business management functions online. NetSuite provides integrated functions including customer relationship management, accounting, enterprise resource planning, payroll and e-commerce using an online service. The advantage is that you don’t have to worry about buying or maintaining your own server, which can represent a significant management and security overhead. The disadvantage is someone else has your data and you have to rely on your Internet connection to get it. Nevertheless, it has worked for organizations like Guelph, Ont.-based Saffron Rouge, which distributes organic cosmetics. CEO Jeff Binder likes the system’s dashboard, an interface that displays all his business metrics on a single Web page so he can easily see what the business is doing and match inventory to incoming customer orders. “It’s relatively cheap and you can start off with one user,” said Binder, who has been using the system for five years and advocates having all business data in a single database that can serve multiple business functions. “Having everything at your fingertips is far more advantageous in the long haul.” 5 Be seen as green by Ian Harvey Look green and act green in every deed and step. It’s not enough to launch a new product, you must also formulate how you are going to recycle the thing at the end of its life. HP, Dell and Lenovo, for example, have recycling programs that pick up and dispose of obsolete machines, while Sun Microsystems is betting on low-energy servers to attract customers who don’t wish to fork out big bucks for water-cooled power-hog Blue Rooms. Even building a new corporate headquarters needs green thinking. Can you get LEED (Leadership in Energy and Environmental Design) certification? Will there be a green roof? How will water be recycled? What about bike racks? And it’s not enough to recycle—you also must buy recycled or green-friendly products. Xerox has a digital printing paper that consumes fewer trees because it uses material more efficiently, requires less water and power, has fewer chemicals and is lighter, thus cutting shipping costs. Overall, Xerox claims a 75 per cent reduction in greenhouse gas emissions and the stuff is Canadian made. Sounds like a no-brainer. Finally, even if none of the above apply to you or your venture, there’s always the option of making a carbon credit purchase to cover emissions generated by your driving, flying and lifestyle habits. The money raised goes toward developing sustainable energy and helping you sleep at night, even if you drive an SUV the size of a city bus. 6 Get virtual with video conferencing by Paul Lima E-mail and collaborative workspaces are great, but sometimes you still have to meet face to face to solve a problem or close a deal. With video conferencing over dedicated IP networks or the Internet, you can cut travel time and costs yet still grab a little face time. If you are rolling your eyes or getting ready to skip to the next entry, you probably tried video conferencing when it first hit the market, back when it was expensive, complex and of lower quality. But video conferencing has come a long way. To get started, call your telecom provider or a dedicated company like BCS Global Networks, a Canadian provider of managed video conferencing solutions over dedicated IP networks. On the other hand, if you run a small business and want to conference with customers, vendors, suppliers or remote employees, you can test online video conferencing at Canadian company Vbuzzer.com. At the site, click on “video conferencing” to schedule a free video conference with up to three others. Vbuzzer is browser-based so anyone can use it without downloading additional software. For $100 a month, you can hold online meetings and add video, audio and collaboration components through VlinkLive. com, another Canadian company. Barebones online conferencing requires only a webcam, microphone, speakers, a high-speed Internet connection and a Web site that enables it, so get your feet wet and see where the current takes you. 7 Upgrade to Vista by Gail Balfour Some will be skeptical about this one, and many are quite vocal in their resistance. Microsoft Windows Vista’s interface is significantly different than XP’s and that means there’s a learning curve. Critics say the OS is a hassle because it doesn’t let users install applications without verification and it eats up more RAM. So why do it? One word: security. “We have a bit of a Catch-22 here because people complain about Microsoft and their perceived lack of security but as soon as they try to do something to make it more secure, the users don’t want that,” said Bruce Johnson, principal consultant with Toronto-based ObjectSharp Consulting. “They are resistant because it keeps them from doing all the things that they have always done,” he said. Johnson said that, as an IT person, he sees a lot that’s good about Vista. “It does a great job of keeping people from being able to browse certain sites, it protects from viruses because there are a lot more things that will get locked down and the lock down tends to be tighter. You have a tougher time having things happen ‘accidentally.’ Probably the biggest hassle from a security perspective [in the past] is users tended to run as administrators. In Vista, that’s not the default anymore.” It’s rare for users to clamour for any new OS unless the old version prevents them from running the latest software. Most programs don’t yet require Vista but this is only a matter of time, Johnson said. “It’s likely inevitable that you will make the move to Vista eventually. So why wait?” 8 Or try Linux instead by Peter Wolchak Linux is an open-source operating system that can do just about everything Windows or the Mac OS can do. Linux can run your personal computer and supports an office suite similar to Microsoft Office, e-mail similar to Outlook, a photo package similar to Photoshop, a solid Web browser, and anything else you’d want. Linux can also run your company’s main server and its Web server. And all this is free: there are no licensing costs for Linux or its associated software. More importantly, Linux has moved out of its parents’ basement. Matured beyond the domain of hardcore techies and Microsoft haters, the software is now easy to install and use, and any computer user can sit down at a Linux desktop and be productive in short order. To give it a whirl, head over to www.howtoforge.com/wubi_ubuntu_on_windows. This tutorial walks you through installing both Ubuntu, a popular Linux distribution, and Wubi, a Windows installer application. Wubi lets you install Linux on a Windows computer and then choose which OS to use each time you start the PC. Choose Windows at start-up and your PC will work as it always has; choose Ubuntu and you’re working in a full-on Linux environment. And if, after trying Linux, you decide it’s not for you, simply uninstall Wubi like you would any other Windows application. For further proof that Linux is now mainstream, consider Whitelaw Twining, a Vancouver law firm. Lawyers are known for maximizing billable hours, not for burning time playing with technology. But the company recently moved all its Windows 98 and 2000 PCs to Novell’s SUSE Linux Enterprise Desktop, and when it comes time to get PCs, entry-level (cheap) Dell boxes run Linux just fine. The result: Whitelaw reduced its hardware costs by 30 per cent, reduced desktop maintenance time by 20 per cent and has seen an increase in both stability and security. 9 Get a (second) life by Paul Lima Get a life!” How many times have you heard that? These days, however, you are more likely to hear, “Get a second life!” SecondLife.com, a virtual reality social networking site, has become popular because visitors can interact using avatars (graphical representations) in dance halls, city squares, shopping malls, restaurants and, yes, bedrooms. Avatars humanize interactions and marketers have discovered they can be used to virtually demonstrate products. For instance, if you create a new line of designer clothing, you can sell it to avatars from your Second Life boutique. If purchasers like your virtual goods, they can then buy the real product. IBM also uses Second Life for meetings, training and recruitment. However, the company is also eyeing virtual business revenue. In the same way that IBM helps companies pursue e-commerce opportunities, Big Blue has started to help them conduct virtual business. IBM has more than 230 employees spending time on Second Life. The company set up a simulation of the Wimbledon tennis tournament and held a virtual IBM alumni reunion. It’s also developing an in-house virtual world where global employees and clients can meet, interact and collaborate. If virtual reality can add a human touch to that long-distance feeling, that makes for better business. If lawyers like Linux, it might be time to check it out in your own company. 10 Revamp your Web site by Peter Wolchak If your corporate Web site hasn’t seen a substantial refresh in a few years, it’s time to step back and ask if the current iteration still serves your needs. It’s possible you’ll review the site and conclude “Yep, everything’s fine,” but that’s unlikely. Business simply changes too fast. Step one is to start with your customers and, more importantly, the people you want as customers. Is the site serving their needs? Is information easy to find and relevant to today’s business interests? Look for outdated buzzwords in particular. A term that looked hip a few years ago or whose meaning has changed may now be dating you. “On demand,” for example, may now suggest watching movies more than it does dynamic software usage functionality. Next, if you don’t have a content management system (CMS), look for one. Have an old one? Consider an update. A good CMS facilitates frequent online updates while still maintaining the clean look and organization of your site, and this is important because to be seen as a thought leader you need to get smart employees to post their ideas and advice. If you’re new to content management, start with the open-source Drupal (www.drupal.org). It made CNet’s 2007 Webware 100 list of best apps: “Drupal is a powerful publishing and content management system. Users can add all sorts of content to Web pages through a system of modules. The software itself is free and open-source; users need simply pick out which site elements they want, and then put them together.” The last step is design elements and technology. The quick rule is don’t use too much. No one is going to buy your product because you have the best Flash animation, and in fact, making customers wait 30 seconds while your designer shows off his/her mad coding skills will likely diminish your business.

Why Are Ottawa Technology StartUps Faltering?

By Matt Massey, CEO drive2 Inc.

The most recent failure of another Ottawa-based start-up; Spotwave (www.spotwave.com) leaves me in awe of the challenges facing technology companies in today's marketplace. It also leaves me wondering how some very intelligent people can burn through $36 Million plus in VC financing in a little over 5 years and I'm positively scratching my head as to why there is an apparent lack of stewardship from the company's former board members to allow senior management not have a clear strategy to be revenue neutral (let alone revenue positive) in as short a timeframe as possible.

There are undoubtedly many factors that contribute to the demise of a start-up, and we will likely never know all of the issues a company like Spotwave had in building and bringing their product to market. There is always the potential for a venture-backed Phoenix Strategy and we'll see the company rise from the ashes. However, a more likely strategy is the technology patents will be sold to the highest bidder and the VCs will get out with whatever they can salvage.

I can say having worked with Spotwave in the past year, there were/are some inherent flaws in the business model that needed to be addressed and at a very basic level. The company positioning just didn't make sense, here's an example of what I mean - direct copy of the content from Spotwave's website (www.spotwave.com):

Spotwave Wireless is the de facto standard for providing carrier-approved, adaptive indoor coverage solutions. The Company's solutions seamlessly bring the outdoor signal inside for both commercial and residential locations - ensuring that cell phones and wireless devices work reliably indoors where they are being used more often.

Changing the economics of in-building wireless coverage, Spotwave's solutions protect the wireless network, are cost-effective, quick and easy to install, and require no maintenance.

What?

Read that a couple of times and try and decipher what the company sells.

Here the quick answer:

Spotwave builds products that improve wireless coverage in buildings where cell phone and wireless service is poor or non-existent.

So, why all the marketing speak? I honestly don't know the answer, but if that's the type of language you're using to position, your company and your products or services, you need to shift your thinking and your language sooner rather than later.

Now, back to the real subject of this blog and my take on why so many technology Startups are failing.

Very simply - Ottawa Tech Companies are placing way too much focus on engineering and product development and never enough focus on marketing and sales infrastructure, strategy, tactical programs and business development.

Yes, we all understand that there at least has to be a semblance of a product ready-to-market, but the reality is; most technology companies are run by engineers. Unless the Engineer CEO also has a marketing or business development background, they very likely inherently believe in the "if we build it, they will come" business strategy and that they need to build the Mount Everest of products before.

It's this type of thinking that needs to be reengineered in order for more Ottawa companies to compete and succeed in an increasingly global marketplace.

What we're seeing now is the lack of a business-first focus by many tech entrepreneurs in a number of ways:

• Venture Capital investment in Ottawa StartUps was down significantly in 2007.
• Angel Investors and VC Firms are now looking more security for their investment: product maturity, customers and sales revenue all factored in as key indicators of the investment opportunity.
• Greater accountability for meeting company revenue objectives and growth strategy in subsequent financing rounds is significant.
• More tech companies are bootstrapping in order to build their company, the demands on the entrepreneur's time and due diligence process by investors requires too much heavy lifting.

It's a stacked deck against the tech entrepreneur.

My view is to take a more aggressive attitude to growth and development:

Put your sales and marketing infrastructure in place as quickly as possible - if you don't know how, find the people who can do it for you, make this a priority.

Place a significant investment in your marketing programs but keep focus - marketing programs should always have quantifiable ROI.

Leverage others' experience – bring in experts to help you and utilize the web - there are great websites like Marketing Profs (www.marketingprofs.com) and Marketing Sherpa (www.marketingsherpa.com) where you can research hundreds of articles, white papers and case studies to help build and hone your marketing skills.

Take on some risk. The old adage is true - no risk, no reward. The number one question I get from CEOs "Well, what if it doesn't work?" My response is always the same; We take the same approach to demand creation that you take to product development and apply it to marketing - it may take some time, but with the right strategy, research, timing, testing and market opening, your investment in marketing will deliver a solid ROI.

drive2 is a demand creation company. We develop performance driven, results-based lead generation and demand creation programs for technology and services companies. For more information on demand creation on how drive2 can work with your company, visit www.drive-2.com.

The Cost Quotient

By Matt Massey, President, drive2

When we meet with companies for the first time, one of the primary questions we get is; "How much will a demand creation program cost?" It's a valid question but not one that's so easy to answer. When a prospective customer asks, we take a marketers approach to the answer – No, that doesn't mean we suddenly get ambiguous and stare off into space…

Simply put, building any demand creation or lead generation program is an evaluation of your investment in corporate marketing infrastructure + tactical program execution divided into an ROI Matrix. The ROI Matrix will output several key figures that will should positively support your marketing investment.

drive2 reviews several key elements within the ROI Matrix to determine overall marketing programs health and individual lead gen. campaign success rates. Here are just a few at a very high level – depending on the complexity of the sale and sales cycle length the ROI Matrices will be more infinitely more complex:

Prospect Acquisition Cost = Tactical Program Cost divided by # Qualified Leads

Customer Acquisition Cost = Tactical Program Cost divided by # New Customers

Campaign Success Ratio = Gross New Customer Revenue divided by Gross Tactical Program Cost

We also don't discount the investment in marketing infrastructure and software has a role to play in determining the true costs of a company's demand creation programs. However these costs can and should be amortized over a period of several years to provide real visibility into each tactical campaign investment.

At drive2, we look at tactical campaign development as another cost that should also be amortized over an extended period. We focus on delivering tactical campaigns that can be duplicated, built upon and we can "shift on the fly" in order to address ever evolving needs of marketing and sales. Advancements in digital printing technology are enabling companies to do more template-driven 1:1 marketing at a lesser cost and the influx of email marketing tools like Constant Contact are allowing companies to reach out to a broader audience with on demand, almost instantaneous response capabilities.

In two words marketing is getting "SCARY PRECISE"! Plus it's getting fun to be a marketer again. Yes, it's still all about the numbers, maybe more so, but at least the numbers give marketers some leverage when its time to sit down with the sales group and discuss marketing vs. sales effectiveness.

drive2 is a demand creation company. We develop performance driven, results-based lead generation and demand creation programs for technology and services companies. For more information on demand creation on how drive2 can work with your company, visit drive-2.com.

The Status Quo

By Matt Massey, President, drive2

Last week I attended a local marketing networking event on the topic of Demand Creation. My initial thoughts were; "Great! Finally an event in line with drive2's services". I was looking forward to this event as both a networking event and the opportunity to open the eyes of a lot of Ottawa-based marketers working for some of the most progressive technology companies in the world about building demand creation programs.

Unfortunately the turnout for this event was abysmal; an audience of 90, of which, at least 20 were associated with the event as speaker/sponsors. Note that the event was liked by most attendees, including this blogger. But this got me thinking, am I missing something? Are marketers missing something?

Then it came to me, this Demand Creation stuff is bleeding edge for marketing. At least I believe it is.

I'm guessing/hopeful that most technology companies are running too fast to take that big picture approach to marketing effectiveness, demand creation model, marketing metrics blah, blah, blah.

I'm also guessing/hopeful that these companies and in particular, the CEOs of these companies don't wait too long to jump on the bandwagon. The reality is that Canadian tech companies need to do a more effective job of marketing and selling their technology. Coupled with strong advances in the Canadian dollar, we no longer have advantageous pricing in our favour and US Companies with competing technology are building their companies better, stronger faster and are clearly focused on revenue generation.

In order for Canadian companies to compete in the global economy, we can no longer rely on the status quo. Building great technology is what we're known for, but the best of Canadian tech companies end up as an acquisition target because they are too focused on investing in and building great technology, while underinvestment in marketing and sales is all too common.

This might sound like a bit of a diatribe, and it is, but I see it happen all too often, particularly in Ottawa.

My message to tech CEOs – It's time to break out of the status quo, continue to build the best technology Canada has to offer the world and put revenue funnel wide open.

drive2 is a demand creation company. We develop performance driven, results-based lead generation and demand creation programs for technology and services companies. For more information on demand creation on how drive2 can work with your company, visit drive-2.com.

 

 

 

Web 2 dot what? – Getting Started with Marketing Technology Tools

By Matt Massey, President, drive2 Inc.

Where to begin with 2.0? - That's what I thought too. If you're in marketing or sales, C-level executive, or an independent consultant, keeping up with the most current marketing trends is a daunting proposition. There are literally hundreds of 2.0 tools out there to help companies big and small rev up the marketing and sales machine faster and more effectively than ever before.

The Challenge? Sorting through the variety of tools, software and web-based applications, all falling under a general industry-labeled banner of Web 2.0, and selecting the ones that will work best for your company.

My Recommendation - Take a holistic view

If you're a technology company, you probably already have some tools in place. Most likely starting with a Customer Relationship Management (CRM) application, maybe an e-newsletter or email campaigns and possibly a Google AdWords strategy to drive traffic. Each of these tools, if used effectively, allow companies a level of measurement of their individual marketing programs, however, they don't necessarily allow for a holistic view of your company's marketing effectiveness.

To be clear, my view of marketing's role within any organization extends beyond the provision of another suspect name and phone number to an already overworked sales team. Marketing's responsibility extends into the sales cycle further and with far greater responsibility. Web 2.0 tools and Performance Measurement Dashboards (insert your own acronym here), give marketing total control of the prospect relationship and allow for greater qualification and nurturing of leads an optimal, active sales prospect.

There are a pile of 2.0 tool applications now available on the market with more coming out each day. Taking the holistic approach means employing the tools that will give you the greatest visibility into the effectiveness of your marketing programs. The best tools allow for maximum integration between marketing programs and tools like your CRM to measure the entire cycle from lead acquisition to closed sale.

If you're wondering where to get started, begin with looking at CRM systems that allow for the integration of 2.0 tools. Salesforce.com, NetSuite and a new open source CRM, SugarCRM are good bets for building your marketing and sales infrastructure. Other tools like Eloqua allow for greater marketing automation and programs management but can be labour intensive for smaller companies and start-ups. As I mentioned, there are literally 100s of offerings out there, and if you spend sometime Googling, you will quickly be able to sort through the offerings.

What's the Plan?

My initial recommendation is to look beyond the tools and focus first on your overall demand creation strategy. Get a full understanding of what it will take to get on a prospect's radar screen and which sales and marketing tools you'll need to have in place to nurture that relationship throughout the buying cycle. Once you've established strategy, evaluate and purchase the tools that will help you improve and maximize the effectiveness of your marketing programs. The plan doesn't solely rely on marketing automation tools. Traditional marketing tools are still equally as relevant as technology-based or Web 2.0 tools.

drive2 is a Demand Creation & Lead Generation company. We develop performance driven, results-based demand creation strategies and tactical lead generation programs for technology and services companies. For more information on demand creation strategy, lead generation programs and on how drive2 can work with your company, visit drive-2.com. 

The New Sales Paradigm – DEMAND CREATION

By Matt Massey, President, drive2

When I read articles on a new and better way to build a sales-focused organization, like you, I'm sceptical, something akin to building a better mousetrap is always my first thought. When you dig deeper however, the facts and realities become difficult to ignore.

• Sales cycles are increasingly elongated and sales process has become more intricate
• Companies can no longer rely on the traditional linear sales strategy (cold call prospect - get meeting - develop proposal - present to prospect - get sale), regardless of industry, service or product the sales cycle is getting longer
• Time is a commodity and your sales team has little to spend on trying to generate new radar screens through cold calling
• The environment for finding quality sales people has changed. A 2006 Manpower Incorporated survey indicated that the hardest position to fill in organizations is sales. "Across North America and Asia, the top three talent shortages are identical -- sales representatives rank No. 1, followed by engineers and technicians. "Employers are telling us that they are not just looking for bodies to fill sales jobs; they want experienced salespeople who know their respective industries and can drive revenues,'' - Jeffrey Joerres, Chairman and CEO of Manpower Inc.
• There are more influencers and stakeholders involved in the decision-making hierarchy within an organization

Over the last 20 years, in corporate North America, we've made significant advances in technology, manufacturing, product development, marketing – huge gains in corporate innovation, but, for some reason, sales has remained in the dark ages.
Why?

Who knows, maybe we just like to kick-it old school, but maybe, and more likely, companies have traditionally undermined the role and value of sales within their organization. If we dig deeper, and look at how most organizations evaluate sales and sales metrics, more value and focus is typically placed on sales outcome and revenue than sales effectiveness and strategy.

Understanding what's important and who's accountable

Let us explain – every company looks at the numbers, usually the most important numbers, gross revenues and net profit. Sales accountability is usually tied directly to these gross revenue numbers and don't get it wrong, sales should be directly accountable for gross revenues, however, what if we also indicted Marketing as being directly accountable for sales revenue.

If you're in sales, you're probably thinking "Marketing??? Marketing doesn't even understand what sales does let alone to think they would ever begin to be accountable for revenue!!!" and you're right, traditionally marketing has always been the star of the show with little accountability and sales has been little more than a necessary evil – that is, until the new customer successes start to role in.

Now let's theoretically employ a new standard of balance, the balance being a new measurement of determining sales effectiveness within an organization. In order to achieve this we have throw out traditional, linear sales process and adopt a non-linear approach to sales and marketing within an organization. Before you read any further, please recognize we are about to challenge the status quo and it might be easier for you to walk away right now before we upset your traditional values and views towards corporate sales and marketing.

Ok, disclaimer aside what do we mean by a new measurement of sales effectiveness?

To define a new measurement of sales effectiveness, we need to dis-align the traditional sales process. Instead of sales holding sole responsible for both prospect development (hunting) and closing sales opportunities (gathering) let's put the onus on marketing to take on the role to now handle prospect development. In this new function, marketing now becomes responsible for generating opportunities within the market – demand creation. Sales effectiveness is the process of defining the measurement criteria for marketing and sales performance indicators for your organization.

Marketing's role is now to develop a quantifiable, sustainable lead generation program for the company. There's a catch though, demand creation is an intense marketing effort, it goes far beyond the dynamic of providing a weekly report of names that sales now needs to follow-up with. Demand Creation is a systematic approach to understanding your buying cycle and how your organization manages prospects and customers through that buying cycle.

Integrating a Demand creation Strategy will allow you to track key indicators for determining your overall sales performance across the organization. It also creates accountability for your marketing effort like never before.

Demand creation doesn't stop there however.

Demand creation also requires marketing to take on the role of prospect management.

In most organizations sales is responsible for prospecting and engaging potential customers from the initial point of prospect contact. In a Demand creation enabled organization, marketing manages the prospect relationship to a point in the buying cycle where the prospect is identified as falling within a set of predefined parameters. Once the prospect has triggered these parameters, only then is the prospect delivered to sales and the elevated sales process of closing the opportunity begins.

What are some advantages of enabling a Demand Creation strategy for your organization?

1. Focus sales on customer acquisition and focus marketing on reputation build and prospect education.
2. Accountability for marketing expenditure. Campaigns and marketing spend can be directly attributed to sales effectiveness and revenue generation.
3. Sales and marketing departments develop a symbiotic relationship working towards a common goal of generating both sales and revenue.
4. A clearly defined process is created to identify and understand your prospect universe and how prospects are managed within your sales cycle.
5. Measurability. Every stage of your marketing and sales process can be clearly measured from creating prospect awareness through to proposals generated and sales revenue.

Marketing's New Role

We've taken you through the concept and strategy behind demand creation. For many individuals looking objectively at their own company, yes, demand creation does call for a paradigm shift for the organization. But how does it really affect the marketing role at a tactical level?

Demand creation calls for marketing to focus their marketing effort on building one-to-one relationships with prospects and customers. This requires clear definition of the prospect universe, as well as, identifying all of the stakeholders, influencers and decision makers within a prospect company and building direct relationships with them.

Tactical elements in marketing's tools box need to include direct marketing, email marketing, personalized URLs (PURLs), webinars and any other marketing vehicles that will assist in created that one-to-one relationship.

These tactical elements now equip marketers with the ability to create and manage direct, one-to-one relationships with your prospect universe. Advances in printing technology allow for creating customizable, fully variable direct marketing collateral. email and web technologies again offer the same level of personalization with the added value of tracking and statistics allowing marketing to measure campaign effectiveness while providing real-time, immediate response to prospect inquiries.

Getting Started and Creating Demand

The key to developing a successful demand creation strategy is communication. It's recognizing that sales and marketing need to work together to create and maximize sales opportunities and understanding that demand creation is ultimately about building relationships and eliminating communication barriers. You want the ability to create open, two-way communication with your prospects and customers the first time they become aware of your organization.

Every facet of your organization needs to understand the value and objectives of your demand creation strategy. Like many organizations throughout North America adopting Six Sigma principles, Demand Creation represents a quantum shift in the way your organization manages its strategic sales and marketing operations.

drive2 is a demand creation company. We develop performance driven, results-based lead generation and demand creation strategies for technology and services companies. drive2 focuses on demand creation strategies for organizations targeting domestic, Euro and Far East markets.

For more information on demand creation on how drive2 can work with your company, visit drive-2.com.