demand creation in europe: current state and gap analysis
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This presentation allows you to see analysis and guidance based on the SiriusDecisions EMEA Demand Creation SurveyTRANSCRIPT
Analysis and guidance based on the SiriusDecisions EMEA Demand Creation Survey
Demand Creation in Europe: Current State and Gap Analysis
Julian Archer Research Director
Demand Creation Strategies [email protected]
Tel: +31 653392741
© 2014 SiriusDecisions. All Rights Reserved
Five Ways to Grow
Markets
Entrance into – or expansion of – vertical, horizontal and/or geographic segments using existing/new offerings
Buyers
Formal targeting of new buying centers and personas
Acquisition
Purchase of other companies, or the incubation of new business units
Productivity
Maximizing efficiency, effectiveness and engagement
O!erings
Launch of new products/services, or enhancement of the current portfolio
1
2
3
4
5
© 2014 SiriusDecisions. All Rights Reserved
Growth Initiatives For Demand Creation Leaders
Markets • Relative Targeting • Demand Creation Strategy • Campaign Planning and
Execution
Buyers
• Buying Cycle • Persona-based Nurture • Web Conversion Optimization
SiriusDecisions is the leading global B2B research and advisory firm.
We deliver the actionable intelligence, transformative frameworks and expert guidance that equip executives to modernize and elevate sales, marketing and product business decisions every day.
Productivity
O!erings • Campaign Planning and
Execution • Content Asset Architecture
for audience/offering pairings • Trials
Acquisitions
• Process Integration • MAP Rationalization • Demand Center
• Lead Management Processes • Service Level Agreements • Waterfall Conversion and
Velocity Optimization
© 2014 SiriusDecisions. All Rights Reserved
Source Data and Demand Creation Survey Methodology
21.20%
14%
20%
14%
12%
11%
09%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%
Unknown <40M
>40M<200M >200M<500M
>500M<1BN >1BN<5BN
>5BN
Company EMEA € Revenue
14%
16%
13%
13%
16%
13%
15%
0% 5% 10% 15% 20%
UK Spain
Nordics NL
Italy Germany
France
Countries / Regions
Source: SiriusDecisions EMEA Demand Creation Survey 2013
04% 07% 07% 08%
10% 17% 18%
29%
00% 05% 10% 15% 20% 25% 30% 35%
Software – SaaS-based Software – On-premise
Computer/Teleco HW Healthcare
Information Services Financial Services
Unspecified Professional services
Industry Segment
07%
13%
17%
20%
43%
00% 10% 20% 30% 40% 50%
Other
Retail
Third-Party Channel
Inside Sales Force
Direct Sales Force
Primary Go To Maket Model
© 2014 SiriusDecisions. All Rights Reserved
Four areas to improved demand creation results
1 Tactic Mix
2 Tracking Demand
4 Lead
Quality
3 Marketing
Automation Technology
© 2014 SiriusDecisions. All Rights Reserved
Demand Creation Budget Allocation By Tactic
Source: SiriusDecisions EMEA Demand Creation Survey 2013
51.2%
Tactic Mix
2.00%
2.10%
2.20%
2.50%
2.60%
2.80%
3.10%
3.90%
4.20%
4.40%
4.60%
4.70%
4.70%
4.90%
6.60%
10.10%
10.40%
11.20%
12.90%
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00%
Online communities (internal)
Videos
Demos
Content syndication
Online communities (external)
White paper downloads
Trials
Contact list rental/purchase
Search keyword sponsorship
Association marketing
Virtual events
Search engine optimization
Newsletter
User conferences
Direct mail
Live events (seminar / road show)
Tradeshows
Email campaigns
Online banner advertising
© 2014 SiriusDecisions. All Rights Reserved
Respondents’ Perceived E!ectiveness of Tactics
Tactic Nordics! NL! ES! IT! FR! DE! UK!
Email&camp.&
38.4% 42.6% 51.7% 36.0% 56.0% 42.1% 40.0%
Trade.shows&&
39.0% 29.4% 31.0% 30.3% 40.5% 39.5% 34.1%
Live&events&
31.5% 29.4% 42.5% 31.5% 39.3% 36.8% 44.7%
Online&banners&
36.3% 25.0% 37.9% 37.1% 29.8% 30.3% 35.3%
User&conf.&
28.1% 33.8% 28.7% 25.8% 22.6% 26.3% 30.6%
Direct&mail&
20.5% 35.3% 29.9% 18.0% 27.4% 21.1% 24.7%
News.le=er&
21.9% 25.0% 28.7% 22.5% 31.0% 30.3% 21.2%
SEO& 18.5% 25.0% 20.7% 31.5% 19.0% 14.5% 25.9%
Within top 5 per stated country
% score within stated country
Tactic Mix
© 2014 SiriusDecisions. All Rights Reserved
Mismatch of Seller’s Perception and Buyer’s Actions
Source: SiriusDecisions EMEA Demand Creation Survey 2013 & C level Buyer Person Survey 2013
#4
• Search the Internet • Access Peers • Internal Discussions • User Conferences • Trade Shows
• Assign Team • Engage With Vendor • Case Study/Trials • Peer Engagement
• Committee Engagement
• Trials/Demos/Case Studies (ROI Content)
• Peer Engagement BU
YE
R
Solution Education Vendor Selection
1. Email Campaign 2. Live Events 3. Online Banner 4. Trade Shows 5. Direct Mail
1. Live Events 2. Direct Mail 3. Email Campaign 4. User Conference 5. Trade Shows
1. Live Events 2. Trade Shows 3. Email Campaign 4. Direct Mail 5. User Conferences S
ELL
ER
Loosening of the Status Quo
Committing to Change
Exploring Possible Solutions
Committing to a Solution
Justifying the Decision
Making the Selection
Tactic Mix
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Analyze Tactic Influence Throughout the Buying Cycle
Vendor Selection Solution Phase Education Phase
Timeline (300 days)
Opportunity created
Deal closed
Dea
l 1 CXO
Influencer
Champion
Ratifier
Dea
l 2 CXO
Influencer
Champion
Ratifier
Dea
l 3 CXO
Influencer
Champion
Ratifier
Analyst Report 1
Analyst Report 2
Event 1
Event 2
Inbound 1
Inbound 2
Inbound 3
White Paper
Executive Briefing
Webcast 1
Webcast 2
ROI Tool
Tactic Mix
© 2014 SiriusDecisions. All Rights Reserved
Return on Investment and Demand Tracking
45.70% 54.30%
Ability to Determine Demand ROI
Yes
No
68.10%
49.10%
78.80%
Sales / Partners
Tele
Marketing
Lead Source Tracking
Source: SiriusDecisions EMEA Demand Creation Survey 2013
Tracking
21.20%
26.43%
25.44%
40.89%
45.63%
# SQLs to close
# of SQLs (sales qualified leads - an opportunity with an estimated value and time to close)
# of MQLs to SALs or TALs (sales accepted or tele accepted leads)
# of MQLs (marketing qualified leads) - an agreed level between marketing and sales
# of inquiries (raw responses)
Measurement of Demand Waterfall Stages
© 2014 SiriusDecisions. All Rights Reserved
Align Processes and Track Demand Through the Waterfall
80% No nurture/ qualification
100% Sales accepts everything / nothing
3% - ?? Inefficient use of sales resources
10% - ?? Poor pipeline dynamics
9.3% Real lead qualification
85% Strong
process that is adhered to
62% Sales
becomes more efficient
29% - ?? Pipeline dynamics improve
The usual b-to-b scenario Best in class b-to-b scenario
417 inquiries to close 1 deal
70 inquiries to close 1 deal
Tracking
© 2014 SiriusDecisions. All Rights Reserved
MAP Utilization in Western Europe
Source: SiriusDecisions EMEA Demand Creation Survey 2013
Technology
11.49%
14.94%
19.54%
20.69%
25.28%
25.29%
29.89%
32.18%
32.18%
34.48%
37.93%
Partner acquisition
Task creation
Automatic lead conversion
Content reporting
Account scoring
Personalized landing pages
Progressive forms
Lead scoring capabilities
Social media monitoring
Personalized content delivery
Lead nurture programs
MAP Activities
27%
73%
Plans to Implement
Yes No
22%
78%
MAP Usage
Yes No
© 2014 SiriusDecisions. All Rights Reserved
Utilize Technology to Support Buyers Journey
Web site
Web analytics
Web content management
MAP
Contact management
CRM SFA
Behavior and performance analysis
Lead delivery
Contact information
Pipeline metrics Marketing Database
Campaign Mgmt
Lead Mgmt
Advanced Features
Business Intelligence
• Deeper lead qualification
• More efficient and productive tele team
• Trigger-based, dynamic offer and message delivery
• Progressive profiling
• Automated, bidirectional delivery and routing
• Better visibility into key metrics
• Reduced complexity and shorter timeframes
• Trigger-based nurturing of rejected and disqualified leads
Technology
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Mismatch of Lead Quality and Demand Type
LEVEL 3 - Plus need or interest
LEVEL 4 - Plus defining requirements
LEVEL 1 - A response
LEVEL 2 - Response and qualified company, audience
LEVEL 5 - Plus BANT
+
+
+
+
BANT
Lead Level
25.7%
27.9%
24.9%
9.5%
12.0%
Lead Level to Sales
Source: SiriusDecisions EMEA Demand Creation Survey 2013
Lead Quality
© 2014 SiriusDecisions. All Rights Reserved
15
SiriusPerspective: Demand Type
If sales and marketing can�t agree on what�s being sold, you can bet that the functions will never be well aligned.
Established Market
SiriusDecisions Demand Spectrum
New Concept
• Disruptive product / service • No budgetary line item • Requires issue creation
New Paradigm
Market Leadership
• Retools existing process • Solves current problem
better • Replaces current line item
Process / Solution Change
• Necessary product / service • Highly contested market • Trying to steal market share
Competitive Positioning
DEMAND TYPE KEY CHARACTERISTICS KEY REQUIREMENT
© 2014 SiriusDecisions. All Rights Reserved
Mismatch of Lead Quality and Demand Type
LEVEL 3 - Plus need or interest
LEVEL 4 - Plus defining requirements
LEVEL 1 - A response
LEVEL 2 - Response and qualified company, audience
LEVEL 5 - Plus BANT
+
+
+
+
BANT
Lead Level
25.7%
27.9%
24.9%
9.5%
12.0%
Lead Level to Sales
40.1%
36.2%
23.7%
New Concept
New Paradigm
Established Market
Demand Type
Source: SiriusDecisions EMEA Demand Creation Survey 2013
Lead Quality
© 2014 SiriusDecisions. All Rights Reserved
17
SiriusPerspective:
Close
Sales Qualification
Marketing Qualification
Sales Generated Leads (SGLs)
Automation Qualified Leads (AQLs)
Inquiry
Outbound Inbound
Teleprospecting Qualified Leads (TQLs)
Teleprospecting Accepted Leads (TALs)
Sales Accepted Leads (SALs)
Teleprospecting Generated Leads (TGLs)
Sales Qualified Leads (SQLs)
Won Business
Assess: Teleprospecting’s Role Teleprospecting can play a significant role in improving the quality of
leads passed to a receiving function.
1 Explicit acceptance of scored leads
3 Source leads independently 2
Further qualify system-scored
leads
4 Direct contribution to pipeline
5 Direct contribution to revenue
Lead Quality
© 2014 SiriusDecisions. All Rights Reserved
Assess: Are you ready for Lead Nurture?
Close
Sales Qualification
Marketing Qualification
Inquiry Outbound Inbound
Teleprospecting Qualified Leads (TQLs)
Teleprospecting Accepted Leads (TALs)
Sales Generated Leads (SGLs)
Sales Accepted Leads (SALs)
Automation Qualified Leads (AQLs)
Teleprospecting Generated Leads (TGLs)
Sales Qualified Leads (SQLs)
Won Business
Lack of process visibility
Lack of standard disqualification reasons
Poor lead definition
Lack of service-level
agreements
Cultural bias against
disqualification
Non-systematic nurture streams
Lead Quality
© 2014 SiriusDecisions. All Rights Reserved
Key Takeaways and Recommendations
• Review spend allocation and avoid spreading budget too thinly across various tactics
• Ensure tactics are aligned with buyer interaction preferences, avoid simplistic and misleading tactic measurement approaches, and adopt techniques appropriate for complex b-to-b buying environments
• European companies must take steps to improve the quality of demand creation process control and tracking
• Mandate that “cold to close” processes and technology adoption drive a transparent and shared view of the business activity using the SiriusDecisions Demand Waterfall
• Incorporate appropriate lead qualification and utilize the concept of demand type to enable delivery of an appropriate and agreed lead quality to the sales function
© 2014 SiriusDecisions. All Rights Reserved
Thank You!
Julian Archer [email protected]
Jon Ticehurst [email protected]