jen horton, siriusdecisions - advocacy advantage austin

Jennifer HortonSenior Research Director, SiriusDecisions

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2 © 2016 SiriusDecisions. All Rights Reserved

@jenhorton @lisanakano

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#SDSummitMay 26, 2016

Customer Advocacy: Its Impact on Demand Creation

Jen HortonSr. Research Director@jenhorton

Lisa NakanoResearch Director@lisanakano



#SDSummitIntuitively…You Know It’s Good

#advocacyadv



#SDSummitExecutive Summary

• Key issues• Customer experience is the largest driver of b-to-b buying decisions, yet its

impact is often ignored when planning demand creation objectives• Demonstrating advocacy’s impact on demand creation justifies investments in

advocacy and lends more precision to demand modeling• Marketers that account for customer advocacy’s impact are better able to

design demand creation programs that meet pipeline and revenue targets• What you will walk away with

• An understanding of advocacy’s impact on Demand Waterfall® efficiency• Our view of how to quantify advocacy’s impact on demand creation

performance• Examples of how companies account for advocacy’s impact

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SiriusPerspective:

© 2016 SiriusDecisions. All Rights Reserved

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5@jenhorton @lisanakano

Customer Advocacy – Demand Creation Opportunity Leveraging positive experiences of successful customers

createsbuilding blocks for demand creation.

B-to-B Buying Cycle

EDUCATION

SOLUTION

SELECTION

The aggregation of activities where customers share their positive experiences with your brand such as:• Case studies• Sales references• Video testimonials• Social sharing• Community discussions• Influencer relations

Customer Lifecycle

DELIVER INITIATE

DEVELOPPARTICIPATE

RETAINACTUALIZE

GROWADVOCATE

71% of b-to-b decision

drivers are based on customer

experience

B-toB Buying Cycle

EDUCATIONNEED

SOLUTIONEXPLORE

SELECTIONCHOOSE 2015 SiriusDecisions Customer Advocacy Study

23% of b-to-b marketers focus on advocacy

for early-stage demand creation

Customer Lifecycle

DELIVER INITIATE

DEVELOPPARTICIPATE

RETAINACTUALIZE

GROWADVOCATE

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SiriusPerspective:


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The use of traditional and social media to set the stage for demand creation

Seed

Key Processes for Effective Demand CreationTo drive best-in-class performance, sales and marketing must align

roles and responsibilities to five SiriusDecisions Demand Waterfall based processes.

Helping reps increase their productivity, for both sales- and marketing-sourced demandEnable

Efforts geared to help move qualified demand more quickly through to revenueAccelerate

The creation of original demand, with a focus on quality vs. quantity

Create

NurtureThe care and feeding of prospects that aren’t ready for sales, or that have fallen out of the Demand Waterfall

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SiriusPerspective:


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Advocacy-infused content helps buyers build a stronger business case

Direct access to advocates helps buyers mitigate risk in purchase decisions

Advocacy-infused content supports buyers throughout the buying process

Referral and upsell/cross-sell programs source high-quality demand directly through advocates

Accelerate

Advocacy Can Impact All Demand Creation ProcessesUnderstanding where advocacy has an impact on demand creation

helps to justify advocacy investments – and results in better demand creation planning.

Enable

Nurture

Advocacy builds reputation, which sets the potential for demand creationSeed

Create

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From Activity to ImpactDetermining opportunities for demand creation leverage



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SiriusPerspective:


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Identifying Opportunities for Advocacy LeverageDemand creators and customer marketing professionals need to

assess resources and capabilities to determine where advocacy can have impact.

Can I measure their impact?

How can I leverage them?

Do I have the right resources?

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SiriusPerspective:


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Seed Demand: Activate AdvocatesAdvocates can be a powerful tactic delivery mechanism to introduce

and spread the word about their experiences – as well as demand creation offers.• Relevant advocates and advocacy content• Willingness to participate• Ability to reach and engage advocates• Ability to track and measure advocacy activity

• Net Promoter Score• Brand sentiment• Influenced revenue

• Participate in investor and analyst briefings

• Social participation• Logo and testimonial usage• Drive awareness of demand creation

offers

Resources

Leverage

Metrics#advocacyadv



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SiriusPerspective:


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Bomgar: Building Relationships With AdvocatesThrough its advocate portal, Bomgar offers an array of challenges

and rewards to manage, engage and reward advocacy participation.

• Increased social followers by 12 percent

• Increased social mentions by 66 percent and content tweets by 45 percent

• Improved case study output by

50 percent• Generated 400+ new inquiries

Impact• Lots of happy customers and

high NPS scores• A program to build relationships

with advocates and activate them to build positive brand sentiment in important communities

• Adopt a technology platform that enables them to manage the program and track all advocacy activity

Objective

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SiriusPerspective:


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Create Demand: Expand Lead SourcesTargeting existing advocates or advocate networks often results in

demand that converts more efficiently and quickly than through traditional sources.

Resources

Leverage

Metrics

• Relevant portfolio of offerings for advocates

• Willingness and capability for advocates to contribute referrals

• Ability to track and measure demand sourced from tactics that leverage advocacy

• Inquiry, TGL or SGL generation• Conversion efficiency• Sourced revenue

• Cross-sell/upsell programs• Referral incentive programs• Case study and demand creation offer

assets

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SiriusPerspective:


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Accelerate Demand: Improve Time to RevenueAdvocacy content that helps the buyer answer questions

throughout the buying cycle also helps to reduce the time spent in each stage of the process.

Resources

Leverage

Metrics

• Relevant advocacy content assets mapped to each stage of the buying cycle

• Ability to isolate and analyze cohorts of demand that touched advocacy content vs. those that did not

• Velocity• Influenced revenue

• Small-net fishing programs• Pipeline acceleration programs• Obstacle removal programs

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SiriusPerspective:


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Enable Sales: Minimize Buyer Risk Direct interaction with advocates helps the buyer to better

understand, envision and evaluate the post-purchase experience as a customer.

Resources

Leverage

Metrics

• Relevant advocates• Ability to manage and track advocate and

buyer interactions

• Sales quota attainment• Deal dynamics• Influenced revenue

• Reference call support• Executive briefing center support• Customer event participation• Customer community participation

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SiriusPerspective:


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Citrix: Measuring Customer Advocacy ImpactCustomer advocacy team tracks all reference activities,

including those associated with opportunities for revenue influence effectiveness measures.

2013

2014

Total Pipeline $308,631,082

$334,863,027

Revenue Closed

$125,371,042

$209,371,042

Totals 466 won deals1,221 pipeline

1,283 won deals

1,128 pipeline

2015

$335,116,619

$516,661,287

1,642 won deals

1,595 pipeline

2013

2014

Marketing

201

470

Sales

197

494

Total ReferencesUtilized

323

964

2015

609863

1,472

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SiriusPerspective:


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Nurture Demand: Remain RelevantAdvocacy content can help maintain buyer engagement, create

urgency and build a business case to initiate a new buying cycle.

• Relevant advocacy content assets mapped to disqualification reasons

• Ability to isolate and analyze cohorts of demand that were nurtured with advocacy content vs. those that were not

• Conversion efficiency• Velocity• Sourced and influenced revenue

• Active recycle programs that help build the business case

• Passive recycle programs that requalify • Reconstituted programs that re-engage

Resources

Leverage

Metrics#advocacyadv



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SiriusPerspective:


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Identifying Impact on Bookings VariationsAnalysis of monthly marketing activity, advocacy activity, market

conditions and pricing data to identify variables that correlate with bookings.The estimated equation explains 92 percent of the variation in bookings.Drivers for Total Bookings:• Market conditions• Pricing• Chat-sourced leads (lagged 3m)• Emails opened (lagged 4m)• Challenge completions• Demo-sourced leads (lagged 5m)• Partner-sourced leads (lagged 0, 3 and

6m)2015 SiriusDecisions Customer Advocacy Study

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Action Items

• Demand marketing• Gather data from available sources to assess what

options exist for leveraging advocacy• Pilot and test advocacy leverage to build the case for

more infusion• Customer marketing

• Take baseline influence of advocacy on Demand Waterfall performance and analyze impact over this baseline

• Assess advocacy program quality and highlight opportunities for demand creation leverage

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#SDSummitQuantifying Impact Crafts the Perfect Recipe

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