B2B MarketingExceptional B2B Marketing
Strategy and Results

Join us for actionable business-to-business insight that will help you get B2B sales and marketing results. You will find many valuable ideas here across a broad spectrum of B2B marketing topics and issues.

 

Six Ways Marketing Can Shrink the Sales Cycle

Sales CycleI often talk about how B2B marketing and lead-to-revenue (L2R) can be massively beneficial to enabling your sales team to meet its revenue targets. And one of the most important things you can do for sales (and your company) is to reduce the sales cycle. I wrote about this topic in June 2015, but wanted to offer some updated thoughts on the subject.

We define the sales cycle as the time it takes for the average prospect (if there is such a thing!) to progress from initial engagement to close of business. In some industries (e.g. enterprise software or industrial machinery), this cycle can be as long as 12-18 months and requires a large amount of time from the sales team. In others (e.g. Amazon.com), the cycle can be measured in minutes and requires little or no personal time from the seller.

Often, people don’t really know how long their sales cycle is — only describing it as “long” or “too long”. The problem is, you can’t improve what you can’t measure. A manual way to find this out is to take the last 20 or so deals and calculate the average sales cycle by determining the length of time between first contact by your sales team and close of the sale.

Note that it’s important not to confuse the length of the buying cycle with the sales cycle. Prospects may be doing research, perusing your website, reading reviews, etc., for some time before they engage with someone at your company. The traditional sales model utilized reps at every stage of the process, leading to much longer sales cycles.

As the below graphic  shows –  today’s prospect will often engage with you only after completing several of the initial steps themselves. They will have self-qualified, conducted their own needs assessment and educated themselves at least somewhat on the attributes, pricing and other details about your offer.

New Sales ModelThe point is that by the time prospects engage with someone on your sales team, they are often several steps along the purchase path and thus the effective sales cycle is reduced by 50 percent or more. Many of the people who came to your website have decided on their own that your solution is not right for their needs — they have disqualified themselves or postponed their decision. This is perfectly okay and assuming they have opted in for one of your offers, you get the chance to nurture them over time and perhaps make a sale in the future.

So how can you accomplish shrinkink the sales cycle while maintaining a strong close rate? In addition to your digital marketing initiatives, here are six effective strategies that have been shown to have positive impact:

  1. Identify target segments carefully. This is important because the more time sales reps spend with people/companies that are legitimate prospects, the more successful they will be.
  2. Deliver qualified leads. There are two ways to do this. First, by being very specific about who your product/service is best suited for (the prospect self-qualification model). Second, by implementing a lead qualification filter to keep unqualified prospects away from the sales team. You can do this with an automated lead-scoring system (less expensive) or with a more expensive but also more effective personal lead qualification process.
  3. Present a powerful message. As with our first two strategies, the idea is to attract the right prospects and let the others go before they use valuable rep time. Your brand promise, value proposition and benefits must be compelling, differentiated and crystal clear. You can find many good ideas on how to do this by downloading this paper on Brand Awareness.
  4. Understand the buyer’s “compelling events”. By this, I mean the factors that are most likely to lead to a sale.  What are the triggers that can motivate the buyer to purchase now? What are the consequences if they decide not to change? How can we put our offer(s) in front of the prospect when the motivations and/or consequences are greatest?
  5. Let your website do some of the heavy lifting. As illustrated by the second sales process graphic above, the right website content can assist prospects at three or more stages of the buying journey. Particularly useful content includes frequently asked questions (FAQs), product specifications, pricing (if that fits your sales model) and how-to guides (both how to use and how to buy).
  6. Provide the right sales enablement tools. By sales enablement tools, I mean anything that helps sales reps educate prospects or themselves, overcome objections, move the sales process forward and capture relevant information. Examples include product training, sales training, competitive analyses and a “knowledge base” of instantly available content.

Follow these half dozen strategies and watch your sales cycle shrink and your overall results dramatically improve.

Digital Marketing – How to Use it to Beat Large Competitors

CompetitorsBeing a smaller fish in a pond full of big fish can be a daunting position. Fortunately, there are a few advantages to being the underdog. First of all, your competitor probably doesn’t know you as well as you know them (see below). You can pivot on a dime where it takes the big company much longer. Also, you can often fly under the radar and implement new targeting, messaging and media before they know you exist.

From a digital marketing standpoint, here are some of the options you have when faced with larger competitors:

  1. Give up. No, I am not being funny here. There are situations when the competitor has so much marketing firepower (dollars and people) that you have little chance of moving the needle in your favor. In such cases, a strategic retreat is not such a bad idea.
  2. Compete on price. This is an oft-used strategy that usually backfires. It makes you out to be a ‘commodity’ player and you still don’t get a fraction of the mindshare of the big company.
  3. Take a head-on approach. Sometimes, the best option is to analyze the competitor’s weakness and attack this loudly and publically. I worked for an enterprise software company where we successfully used this tactic to take on a company 12 times our size. It worked because the industry giant had issued a new release that had more bugs than new features.
  4. Be a specialist, not a generalist. This is the niche marketing, “go where they aren’t” strategy and it is the one that I usually recommend.

Before going to war against a large competitor, it’s vital that you thoroughly understand the battlefield. As Sun Tzu stated in The Art of War “If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.”

Keeping this sage advice in mind, one of the things you need to know about your competitor is how they are using digital marketing. What are they saying, to whom and on which media? For clients, we often do in-depth research on our their competitors’ usage of both paid and non-paid media. This can produce some very useful insights and help us target our efforts where the opportunity is strong and the other company is weakest. We also take a close look at what is being said in cyberspace about our product and/or services area. This is real, roll-up-your-sleeves work, not just quick analysis made on a few Google searches.

Digital marketing has a broad definition, so we’ll save the detailed how-to discussions for later. But you had best analyze all the tools and media available and choose a few that you can really focus on, instead of being very shallow in many media. As an example, we have a client in the B2B services space that is putting 90 percent of its efforts (and budget) in just four areas of digital marketing:

  • Highly relevant content related to its niche market (including consistent blogging).
  • Compelling landing pages that convert at over two times the industry average.
  • Tightly targeted (and long-tail) pay-per-click promotions with a cost-per-click (CPC) of about 40% of what competitors are paying for more generic search terms.
  • LinkedIn content, company and showcase pages, and sponsored InMail.

By the way, last month Merkle released its Q4 2016 Digital Marketing Report analyzing trends across paid search, social media, display and organic search, while providing highly regarded insights into the performance of major industry players like Google, Facebook, Microsoft, and Yahoo. It’s worth a read.

Matching Wits with a Sales Lead Guru on Live Radio

Have you listened to what your peers (and bosses) say is keeping them up at night? We did.

Today my company is making a podcast available to the public that captures my live, January 19 radio interview with Jim Obermeyer of the Sales Lead Management Association. We discussed my company’s research on lead-to-revenue strategy in the age of digital disruption, plus our 2017 State of the Industry Report: B2B Marketing and Lead-to-Revenue.

I’ve been a public speaker for decades and have been a guest on numerous national and international programs discussing everything from marketing and sales strategies for SaaS software companies to how my local business association can create more jobs in the region. But I’ve rarely enjoyed a chance to communicate more.

Sales Complains, Marketing Disdains?

Jim and I think about and act upon these topics all day, every day. Some of the topics we discussed were hard to talk about, chiefly because they represent the customer pain points that we see over and over again when dealing with B2B marketers. Our new survey research uncovered why these problems are perennial and, frankly, a little bit exhausting to tackle year over year, quarter over quarter (except, of course, when we get to solve them for our clients). Here are some of the chief issues:

  • Only 41% of respondent companies were somewhat or very satisfied with the amount of leads generated by the marketing teams. Why do sales teams complain so much about both lead quantity and quality? And what is preventing marketers from solving this issue once and for all?
  • Why do marketers have to come up with new and even more compelling KPIs to justify their existence? What can we measure (conversion rates, brand awareness) that will actually get us more budget next year instead of less?
  • What can be done to alleviate the “ineffectiveness of lead management” that so many B2B companies are struggling to overcome? Is the solution more technology, better people or more efficient processes (or perhaps all three)?

We were a little surprised about what our survey said people were spending on marketing in relation to revenue—and that it mostly fell in line with industry standards as outlined by Gartner. We also engaged in a discussion about the “red-flag” warnings that tell marketers when they have lead conversion issues that will drive up their costs to acquire customers (CAC). CAC is a common KPI that most research respondents noted was flat or would only rise slightly in the year to come.

I also shared with Jim what was perhaps most disappointing about our research findings: The fact that (as alluded to above) a majority of companies felt that they are lacking in three huge indicators of B2B success: marketplace awareness, sufficient lead flow and sales and marketing alignment.

I was happy to be a part of a broadcast that challenged and galvanized me about the topics that I have spent a lifetime learning to tackle. Although the survey results were a bit discouraging, my plan for 2017 is to challenge myself, our team and our clients to become better and better at what we do. You can now download the podcast and see for yourself how we did. I hope you enjoy listening as much as I enjoyed participating. Please download a copy of the survey report and let me know your thoughts.

Death of the Hard Sell: Stop Closing and Start Empowering

The sales “closer” has an almost mythical reputation in the annals of business. Movies like Tin Men, Boiler Room, Door to Door and Wall Street show how the most successful at the craft of selling are also the most devious. A review of Elmer Gantry, produced in 1960, stated, “Elmer is a traveling Salesman, a con man, drunkard and a bum, but this guy could sell a ticket to the slaughterhouse to a suckling pig, make that a season’s pass, he was that good.” And anyone who has seen Glengarry Glen Ross remembers the famous Alec Baldwin scene where he tells the character played by Jack Lemmon, “Put that coffee down. Coffee’s for closers only.”

Sam Mallikarjunan, who works at HubSpot and writes for ThinkGrowth.org, wrote a really good article about this subject titled The Closer Is Dead. Long Live The Listener. There is a lot of good advice to be found in Sam’s article, but I can give you the gist in one quote: “The sales rep that doesn’t try to ‘control the process’ but instead functions as the objective trusted adviser to the prospect’s process is the sales rep that wins deals.”

While the hard-sell approach works in the movies, and perhaps in a bygone era, the days of the high-pressure closer are numbered. As HubSpot’s analysis shows, all the things we used to associate with being a great sales rep — such as being a convincing “closer” — actually hurt your chances of hitting quota long term. If you actually did what hard-selling proponents urge, your reps and company will make less money and have a much harder time holding onto customers.

As I said in my December 6 post, your focus should be on the buying process. Universal access to information and the amount of competition in almost every industry have empowered buyers much more than in the past. The fact is that most people like to buy, but very few of us like to be sold. So why not change your paradigm from “selling people stuff” to “helping people buy”? This might sound like a subtle distinction, but I assure you, it is not.

To make this clearer, here are some words that define how the new and effective sales rep approaches the B2B sales function:

  • Assist
  • Coach
  • Educate
  • Enable
  • Guide
  • Help
  • Listen
  • Nurture
  • Suggest
  • Teach

By contrast, here are some words that describe the mindset of the ineffective B2B sales rep – the high-pressure closer:

  • Close          High Pressure Sales
  • Command
  • Drive
  • Effort
  • Force
  • Pressure
  • Push
  • Talk
  • Tell

How Marketing can Support the New Sales Model

A key question for the marketing types who are reading this post is: What can we do to support a sales model that is based on guidance, coaching and education, and less on mastering high-pressure sales techniques? Here are five suggestions:

  1. Give prospects what they want – not what you think they need. Potential buyers do a lot of their research online and if you don’t supply the right information (product specs, reviews, use cases, pricing, etc.) at the right place in their buying journey, they will move on to your competitors’ websites. Holding back is usually counterproductive.
  2. Give sales reps what they want. When sales reps tell you that they want more or less of X, Y or Z, try to give them the benefit of the doubt. Their commission checks and even continuing employment, depends on making sales – they take this quite seriously.
  3. Make sure your messaging is crystal clear. Sales reps that represent companies with poor messaging face a tough burden. If the prospect doesn’t quickly (instantly) grasp that you are at least a potential solution, they won’t stick around to figure out what you do and how it benefits them. We see too many elevator pitches and brand statements that are totally ambiguous – don’t let this be true about yours.
  4. Establish a firm set of expectations with your sales counterparts. To do this, create a service-level agreement (SLA) that outlines exactly who is going to do what at every stage of the process.
  5. Revisit your lead-to-revenue (L2R) model. Don’t be afraid to challenge assumptions about how your company has been marketing and selling. While consistency is important, watch out for “we’ve always done it this way” syndrome. Read my 2015 article on this subject titled, Does Your B2B Sales Model Need an Overhaul or a Tune-up?

The “helping prospects buy” culture is not only easier on all concerned, it is also a better mindset to generate revenue and repeat customers. Make it a key part of your 2017 planning process.

Hard Facts About B2B Marketing and Sales

Hard Facts about Marketing

One of the most frustrating things about being a B2B marketing and/or sales professional is that there are circumstances and environmental factors totally outside your control. Ive seen truly great people seemingly stuck in situations where they are set up for failure.

Medium.com had an interesting article from Larry Kim titled “11 Things You Can’t Change, So Quit Wasting Your Time Trying.” Kim stated that no matter the method you use (e.g., working harder, caring more), “The fact is, there are some things you just cant change, no matter how hard you try.” I enjoyed the article because it reflects a hard truth I teach future entrepreneurs in my SBA and SCORE classes — to stay within their own zone of control.

This below graphic illustrates the zone of control. At the bottom is a list of a few of the things you have total personal control over. For example, you decide how hard you work and the skills you will develop to enhance your marketplace value. The middle section contains items you can influence but not necessarily control, like the overall messaging, your budget, and your boss. The outer circle consists of items you have little or no control over: The economy, technology, government, etc., are going where they are going and chances are, you have no opportunity to impact them. In other words, if the train is heading in a certain direction, you had best either hop on or watch it pass, instead of standing in front of it.

Zone of Marketing Control

So, hard fact number one is that you should operate in your zones of control and influence. Here are some additional facts that B2B marketing and sales professionals must face:

1.     It’s usually not personal. When the CEO criticizes the new website design, or the VP of sales complains about the lack (or quality) of leads, they have their own reasons that are usually not connected to personal animosity toward you. Disliking your performance on something is not the same as disliking you.

2.     You can’t always win. There are scenarios where the odds are so stacked against you, you are unlikely to achieve success. For example:

a.     A flawed business model that is not financially viable.

b.     An un-coachable owner/CEO who would rather be right than successful (sadly, there are such individuals).

c.      A product that is deeply flawed and/or not ready for the market.

d.     A highly dysfunctional management team.  

3.     You should quit focusing on the ones that got away. All of us who have been in marketing or sales for any length of time understand that no matter how talented/clever we are, many prospects will say no to even our best offers. Best you reconcile yourself to this to avoid undue anxiety.

4.     Life is not fair. If your mom or dad taught you this lesson early in your life, you should thank them. Attaching yourself emotionally to a certain outcome means that you will spend at least some of your time in a dark place.

5.     Great strategy won’t produce results without cooperation. I’ve seen brilliant concepts that could produce significant revenue shot down because of the unreasonableness of one or more parties. Regardless of motivation of the stubborn party, when you are faced with this situation, it’s sometimes best to cut your losses and move to the next idea.

You no doubt have your own list of unpleasant facts. I hope you accept them, and do what you need to do to have a healthy and prosperous 2017.

B2B Marketing Trends – What You Don’t Know Can Hurt You

Fusion Marketing Partners State of the Industry Report Trends in B2B Marketing and Lead to RevenueWe just published our 2017 B2B Marketing and Lead-to-Revenue Trends Report, available for download here. At the close of each calendar year, I publish a trends report detailing what our team sees as the important topics in B2B marketing and L2R. This year, in addition to our personal analysis, we’ve included data from 1425 respondents who work in B2B marketing and sales, the majority (62%) of which are at the VP level or above. We’ve also cross-validated this information with data and opinions from noted industry analysts and thought leaders. We found remarkable similarity between survey responses, what industry leaders like Forrester, Gartner and Forbes are saying and our own experiences and data from client engagements. We are also grateful to our survey partner CustomerThink for helping us to get the word out to their large subscriber base.

So what are the big takeaways from this initiative? For one thing, a majority of companies report that they are not generating enough leads to meet their revenue targets. Probably no big surprise – I’ve worked at companies where lead flow was strong and yet, people were complaining about a “lack of leads”.  What they mean is that they want their leads to be qualified and ready to purchase in the near future. This is the inevitable tension between lead quantity and lead quality. It’s fine to have plenty of lead flow, but not so fine if the vast majority of inbound inquiries are unqualified and will never buy what you are selling.

Another disconcerting result is that 62 percent of respondents report that their companies spend less than 10 percent of revenue on marketing (including personnel, technology and program expenses). There is no doubt that the strongest and most profitable companies drive growth through compelling and relentless marketing. If you truly believe (and I hope you do) that marketing has a big impact on revenue, you are doing your company a favor by helping them invest in an area that will have many positive benefits downstream.

Our survey also showed that companies will increase 2017 spending on two key areas that impact growth: marketing automation technology and content marketing.  Some of us are already fully engaged in these practices and are now in optimization mode, but a surprising number of companies are still taking baby steps. Regardless, smart companies invest in what works and try to get there before the competition does.

Finally, what are your peers and competitors most interested in measuring in 2017? Given a long list of potential KPIs, our survey respondents say they are focusing on these three, in priority order:

  1. Tracking sales performance (e.g. close rates) – 76.27 percent of respondents.
  2. Qualified lead conversions – 64 percent of respondents.
  3. Measuring website performance – 53 percent of respondents.

While it’s too late for you to take the survey, you can review the results by downloading the report. We designed the survey and report to provide you with actionable information and help you improve what you are doing in B2B marketing and sales. Most importantly, it is my hope and expectation that you will have a better 2017 than 2016.

Don’t Break the NEW Rules of B2B Sales and Marketing

Sales and Marketing RulesThose of us who have worked in B2B sales and marketing for some time agree that the rules have changed. But what exactly are the new rules and how do they differ from the traditional way of doing things?

Rule 1: Selling is not just “Telling”.  As a marketing professional, I always made it a point to understand what my company’s sales staff was learning – so I have attended several internal sales training programs where reps were taught how to identify, engage, nurture and close prospects. Sometimes, this is taught from a linear perspective – First you take step A, then B, etc., until you close the business. But smart sales reps know that the answer is not to find someone who will listen to you, then pitch, demo, re-pitch and so forth.  In last year’s B2B sales and marketing trends report, I talked about the “fuzzy funnel” and how prospects enter and exit the sales process in many different ways. You need to prepare for every scenario.

Rule 2: Your focus should be on the buying process.  Universal access to information and the amount of competition in almost every industry have empowered buyers much more than in the past. The fact is that most people like to buy but very few of us like to be sold. So why not change your paradigm from “selling people stuff” to “helping people buy”? This might sound like a subtle distinction but I assure you it is not.

Rule 3: Your website should do a lot of the heavy lifting. You can find a ton of information online regarding how much time prospects spend online researching products/solutions before engaging with a sales rep. Of course this depends on the industry but it can range from a low of 10-20 percent to as high as 90 percent. Regardless, this is a number that is going to increase over time so get your cyber act in order. Create and publish content that educates prospects and brings them closer to engagement.

Rule 4: Hiding your information is counterproductive. B2B companies are reluctant to share too much information for two primary reasons: 1. Competitors will steal it.  2. Prospects will use the information to build their own solution. But the fact is, there is a lot of information about your topic area in cyberspace and if prospects don’t find it from you, they will do so from your competitor, and even worse, buy from the competitor. Just remember the mantra, “The more you share, the more you receive.  The less you share, the less you receive.”

Rule 5: Nurturing is as important as selling.  Our client research has shown that among inbound inquiries, there are usually as many prospects who will buy in the future (e.g. after six months or more) as will purchase in the short-term (e.g. 30-90 days). In other words, the ability to stay in touch and feed suspects relevant information on a periodic basis can be just as lucrative as the ability to sell your current hot prospects today.

Rule 6: Prepare for disruption. Lots of companies have had their products and/or marketing and sales models disrupted. Sometimes the impact is minor or moderate (e.g. moving some part of sales to the web) and other times it is massive (Uber, AirBnB, self-driving cars). But as the book title suggests, you need to Disrupt Yourself before someone else disrupts your business. You do this by testing your hypotheses, processes, pricing, and so forth, before you are forced to do so.

Of course, these rules are suggested guidelines and not meant to be sacrosanct. As Richard Branson said, “You don’t learn to walk by following rules. You learn by doing, and by falling over.”

In B2B Marketing, the CFO May Be Your Most Important Customer

CFO MarketingMany B2B marketing managers believe that their primary customer is the Sales VP, or perhaps the end-customer, or even the CEO. While these are very important constituencies, you shouldn’t forget the person who may have the most influence over your career – the CFO.

My last blog post talked about how to get your share of the 2017 marketing budget, using several different budget allocation methods. However, none of these methods will work unless the CFO has faith that whatever you are spending contributes to revenue. This is what I call the “marketing as investment” model, instead of the traditional “marketing as expense” model.

Here are some things you don’t want your CFO to say to the CEO about you or your department:

  • Those guys spend a lot of money but I have no idea what they are accomplishing.
  • Why should we give marketing more budget if they can’t show better results?
  • Why is the sales team always complaining about the marketing department?
  • We have to cut the budget – let’s start with marketing since they are such a large expense.
  • Every time I ask marketing what they are doing, I hear a bunch of gobbledygook!

To make sure this type of language is never used to describe you, let’s look at what CFOs are looking for from their marketing departments. As you can see, four out of the top-six goals relate directly to measuring the effectiveness of B2B marketing spend and activities as a driver of sales pipeline and revenue.

CFO Marketing Survey

Note that the fourth goal listed is to achieve non-financial goals (i.e. brand awareness) but even here I would argue that the reason we spend time building the brand is to make it easier to achieve revenue. I’ve never met a CEO or CFO that would trade some of their revenue for a stronger brand (or for almost anything else). In the end, it comes down to the marketing department’s ability to increase awareness, generate leads and facilitate sales, all in the pursuit of more (profitable) revenue.

So how do you impress your CFO and ensure not only a favorable impression but more important, the necessary funds to accomplish your mission? Here are four strategies:

  1. Understand your customer.  Most CFOs have a set of challenges and objectives that are not the same as yours. See the world from their perspective and you are more likely to win the perception game.
  2. Tightly align with sales. Creating a service level agreement (SLA) to outline the processes, expectations and deliverables of both departments – will go a long way towards satisfying both the CFO and CEO. Chances are, if the sales team is happy with marketing, the executive suite will likewise be happy.
  3. Revenue…revenue…revenue. Whenever you can do so, shift the focus of the discussion from activities (expenses) to revenue (investment). Investments in revenue are much more palatable than increases in spending, so modify your language accordingly.
  4. Measure what matters. As a B2B marketer, you no doubt understand the importance of capturing all types of performance metrics. But the ones that matter most to the CFO will all point to how what you do, and what you spend, contribute to revenue. That is why our lead-to-revenue (L2R) modeling process always starts with revenue targets and works backward to set goals for inquiries, awareness, website traffic, and so forth.  

 I’ve worked with a couple of CFOs that had such a fundamental misunderstanding that they never could see the value in what their marketing department did. Fortunately, these types are not common and if you follow the above advice, you will not only have a more satisfactory working life but also a much healthier marketing budget.   

Secure Your Share of Rising B2B Marketing Budgets

Marketing BudgetThe press release announcing Gartner’s 2016-2017 Chief Marketing Officer (CMO) Spend Survey showed that marketing budgets rose for the third straight year.  Marketing budgets increased to 12 percent of company revenue in 2016, up from 11 percent in 2015. Fifty-seven percent of marketing leaders surveyed expect their budgets will increase further in 2017. Only 14 percent of marketers say they are bracing for budget cuts, but this is up from 3 percent just two years ago.

At Fusion Marketing Partners, we deal with lots of B2B companies and our experience echoes the Gartner research. Here are some observations about why marketing spend is on the rise and why you may be in a great position to justify a larger spend as you craft your 2017 marketing budget:

1.     Prospects and customers spend more of their time with marketing assets than sales assets. Studies range on the exact statistics, but most strongly point to the fact that prospects do a lot of their research online, prior to engaging with a sales rep. If you don’t have the right resources to guide them, you lose the prospect to the competitor.

2.     Throwing more sales reps into the mix is not solving the revenue challenge. You need a complete lead-to-revenue strategy that covers everything from creating initial awareness to closing deals.

3.     Marketing has accepted a wider range of responsibilities ranging from customer experience to revenue–generating systems. As Jake Sorofman, research vice president at Gartner stated, “Over the last several years, we’ve witnessed an expansion of the CMO mandate, from what was largely a promotional role to what is now often seen as the growth engine for the business. … In more than 30 percent of organizations, at least some aspects of sales, IT and customer experience now report into the CMO.”

4.     Smart marketing managers have learned how to prioritize spending on productive and measurable activities that tie into revenue. This ‘lead-to-revenue investment model’ makes the budget process more efficient and predictable. Read more about the top 10 sales and marketing metrics.           

Im often asked to advise companies on how to establish the correct marketing budget. In addition to the percentage of revenue described above, there are several other methods:

       Competitive Parity: With this method, you figure out what competitors are spending and then budget enough funds to keep up with, or surpass, the partner. The problem is, it’s usually difficult to find out what they are spending and their circumstances may be so different that a head-to-head comparison is not helpful.  

       Objective and Task: This is our go-to method. We set the objectives, identify the tasks necessary to achieve those objectives and then determine the budget necessary to complete those tasks.

       Lifetime Value (LtV): The LtV method works in scenarios where it is worth spending more to obtain a new customer because they produce so much revenue over the time they do business with you. This will often produce much higher spending scenarios than the more traditional and formulaic methods. For example, Salesforce.com spent $25.4 million to achieve its first $5.4 million in revenue. 

       What You Can Afford: Sometimes, your marketing spend is limited by the amount of money you have left over after other expenses — or the amount the CEO or CFO gives you to accomplish the mission.

       Lead-to-Revenue (L2R) Budgeting: With L2R, we establish the revenue targets and work backwards to determine how many opportunities, qualified leads and inquiries are needed to meet the revenue target. L2R is a highly effective way to make sure you spend the right amount on lead generation, but it is not so helpful when it comes to budgeting for other expenses like personnel, PR, website, etc. 

Regardless of the marketing budget methodology you use, it is important to start the process early enough in the planning cycle to ensure the right allocation. If you truly believe (and I hope you do) that marketing has a big impact on revenue, you are doing your company a favor by helping them invest in an area that will have many positive benefits downstream.

Improve Your B2B Marketing in 30 Minutes or Less

B2B Marketing Act NowYou are overwhelmed, I am overwhelmed – the whole darned world is overwhelmed. It seems there is so much required of each of us that we can’t find the time to get those big projects finished. But the good news is – there are many smaller actions you can take – in 30 minutes or less – that can individually or collectively have a big impact on your performance and your company’s results. Here are 20 such items.

  1. Obtain one (or more) customer testimonial(s).
  2. Call up a sales rep and really understand what is going on in his/her world. Better yet, call two.
  3. Write the introductory paragraph to the next great piece of sales collateral.
  4. Come up with a new and compelling offer.
  5. Call or email a strategic partner and get some joint marketing going.
  6. Figure out a strategy to add video and/or audio to your website and sales materials.
  7. Write a quick online customer survey to make sure you are on the right track.
  8. Improve your landing page performance by 10% or more by upgrading the copy, images or offer (perhaps all three?).
  9. Draft the outline for your next killer webinar.
  10. Tweak the copy on your best email promotion – with a goal of boosting response by 10%.
  11. Write the title and outline for your first or your next eBook.
  12. Evaluate your brand message/value proposition for differentiation and freshness.
  13. Figure out one way you can better support your company’s revenue goals.
  14. Write a memo to get budget authority for your next lead generation campaign.
  15. Come up with a theme for the next major social media outreach – perhaps one that will go viral.
  16. Write the first paragraph of your next blog (or the whole blog if you are really fast).
  17. Upgrade your metrics dashboard to best prove marketing’s contribution to revenue.
  18. Jot down three action items that can improve your website – from both an awareness and conversion perspective.
  19. Send a thank you note to a key customer, partner, vendor or colleague.
  20. Stop and ponder your good fortune – if possible, find a way to pay-it-forward.

Not all of these action items will require 30 minutes. Some will take you a bit more, some a bit less. But the point is, good marketing is not just about having a great overall strategy – it’s also about the daily smaller blocks of time – and how you can make these moments count. As I talked about in an earlier blog post, Actions Trump Ideas in B2B Marketing and Sales, we marketers are paid to make stuff happen.