Archive | August, 2012

HBR: Big Data for B2B May be Overhyped

23 Aug

A recent Harvard Business Review blog post provides a thoughtful analysis of one of the looming issues facing B2B marketers: how to think about Big Data. As the hype builds, marketers are looking closely at their CRM data (and data in other systems) to see how to best leverage it to drive revenue.

The post asserts that broad data analysis is overrated and that marketers should focus on the narrow set of insights that really matter in a B2B sales environment. Here is the guidance on B2B Insights:

“It’s impossible to know all the insight types that you can hope for, but it is imperative that you have several to bank on that can help sales force members answer key questions. For example, salespeople can gain insight into which customer to target, which offers maximize value for each customer, or how to spend time to drive success. Sales managers can gain insight into what guidance to give salespeople, how to set goals that are fair and realistic, and how to keep a team on course to achieve district goals. Sales leaders can gain insight into how many salespeople are needed, how to attract and retain top talent, and whether an incentive plan is motivating the right kinds of sales activity.”

B2B sales is always more complicated because the sales person has a relationship and often knows more about the prospect than the data can tell. The key to providing value to sales people is to help prioritize activity: helping them figure out who to call, what to focus on, and what activity to take next to maximize their chance of success.

The full post can be read here.

The Nurture Fallacy: 5 E-Nurture Marketing Myths

16 Aug

Marketing automation companies have built a big business by creating tools for electronic “nurture” programs. Now, B2B marketers around the world are executing “e-nurture” programs designed to take prospects on a multi-step journey designed to increase prospect education and awareness, and ultimately, to lead prospects to buy.

It’s not uncommon to see B2B marketers execute complex drip and trigger campaigns with seemingly endless tracks and branches. In some organizations, nurture complexity has outstripped the ability of charting tools to diagram the planned  communication paths.

While marketers must focus on the customer journey, the current e-nurture fad fails to deliver on the value that it promises. Here are the five commonly held beliefs that I believe to be myths:

Myth # 1: “You can take prospects on an email journey”

While email remains an invaluable tool for marketing and demand generation, it is a horrible tool for guiding prospects on a linear educational journey. Here’s why: only 10.8% of email is ever opened, and only 30% of mail that is opened is actually read (the rest is skimmed).

Most nurture campaigns are built on the assumption that a prospect will internalize a core message or idea and will progress on the electronic customer journey from message to message. The fact is that very little commercial email is read, very few ideas are internalized, and very few people are persuaded by content delivered through email. While some portion of people who open may click through and interact with online content, that proportion is almost always a small single digit percentage of the overall campaign audience. By the time the next message arrives, the educational benefits of the previous message are almost always forgotten.

Myth # 2: “Content should be sequenced along an educational path”

To maximize sales conversion, email campaigns should promote the best content (based on conversion rate) vs. optimizing content to follow a progressive educational path. Nurture campaigns should be focused on sequencing content based on effectiveness by first merchandising the content with the highest impact that hasn’t yet been accessed by a particular prospect. It’s common sense: sequencing content based on performance vs educational narrative will always drive better results.

Myth # 3: “The more tracks and steps, the better”

As marketers build teams and programs around nurture strategies, they often drift towards micro-segmentation of the prospect database based on interest and sales stage. The result is an endless tree of options and content as prospect interest evolves and sales stages change.

For marketing and sales, the typical result is painful complexity and a proliferation of content required to address every interest/stage permutation. In most companies, a few pieces of content do the real heavy lifting and have the biggest impact on persuasion and conversion. A proliferation of nurture segments dilutes the impact of the best content and creates heavy demands for new content that inevitably underperforms and quickly becomes out-of-date.

Myth # 4: “Prospect activity tracking is the secret to an effective nurture program “

Since only 10.8% of email is opened, a basic nurture practice is to resend messages to people who ignore the first message to try to get their attention a second, third, or fourth time. Continue reading

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