New love is powerful. Ever heard a teenager gushing about his or new significant other? Now think about what your boss sounded like the day after he got his new iPhone. Love makes people chatty. Harness that feeling.
Love and money don't mix. Nothing good can come out of mixing these two elements. People who love you are going to talk about you regardless of whether or not you reward them; throwing money/rewards into the mix only makes the people they're talking to suspicious of their motives. On the other hand, if someone dislikes you, no reward is going to be great enough to make them recommend you.
Nobody talks more than a lover scorned. Know the saying "the squeaky wheel gets the grease?" Unhappy customers are mighty darned squeaky—probably much squeakier than your happy customers—so do everything in your power to keep your customers happy. And make sure you tend to those squeaky wheels!
Those of you who are interested in learning more about word-of-mouth marketing for B2B, be sure to catch Paul Rand’s presentation on the topic at ITSMA’s 14th Annual Marketing Conference, which is coming up on November 14 and 15 in Cambridge, MA.
What's
Hot
Experience vs. Expertise: How to Partner with the CIO
By Michael Minelli and Mike Barlow,
David L. King is senior vice president and CIO at Regal Entertainment
Group, the nation's largest chain of movie theaters. Today the motion
picture industry is going through its largest transition since talkies
replaced silent movies in the late 1920s. This time around, digital media
is replacing film. As a result, IT is moving from a supporting role in
the back office to a leading role on the big screen.
Based in Knoxville, Tennessee, Regal is at the forefront of the digital
movie revolution. As the owner-operator of 560 multiplex theaters, Regal
is facing enormous technology challenges. On average, each multiplex has
11 screens showing five feature-length movies daily, 365 days a year.
In digital format, each feature is about 300 to 400 gigabytes (GBs). The
coming attractions add another 40 GBs to the load of information that
must be distributed across Regal's chain of cinemas.
"A lot of the technology required to accomplish all this on a routine
basis doesn't exist yet," says King.
In this type of transformational environment, King looks for IT suppliers
who are ready, willing, and able to serve as strategic partners. The challenge
for King is identifying which suppliers are truly committed to long-term
relationships and which suppliers are seeking short-term wins.
There are two basic requirements for being considered as a strategic
partner: enough experience to handle a complex, transformational engagement
and enough depth to commit the spectrum of resources necessary to follow
through successfully on a multiyear project.
In some selling scenarios, it's easy to spot which suppliers can talk
the talk but can't walk the walk. "Usually you pick up on it immediately,"
says King. "All you have to do is describe some specific problems and
ask the vendors how they solve those problems."
Since any reasonably energetic sales rep with a Web browser and an Internet
connection can acquire enough information to chat about practically any
technical subject, it's important for King to determine quickly if the
rep's "domain expertise" is built on a solid foundation of real experience
or conjured up from an all-nighter of caffeine and Google.
Expertise is not the same as experience. Expertise can be picked up on
the ride from the airport to the customer's office. Experience develops
over time—and it's hard to fake.
Smart sales reps try to stay out of situations in which their expertise
doesn't match their experience. And CIOs like King try to avoid dealing
with vendors who make a habit of sending reps lacking real-world experience
into sales meetings.
What happens when King is looking for a strategic partner and the vendor
sends over a sales rep without the right level of experience?
"I'll be courteous, but I'll bring the meeting to a close fairly quickly,"
says King. "Then I'll meet with my people and find out why they failed
to qualify that vendor appropriately. If I feel that the sales rep tried
to mislead us, I'll probably call one of the vendor's senior execs and
describe what happened."
If it turns out that the sales rep is just naturally aggressive, King
says he usually gives the vendor a second chance to make the pitch with
another rep. If King determines that the vendor's corporate culture encourages
the sales force to engage in inappropriately aggressive or misleading
behavior, he's not shy about sharing his observations with friends and
colleagues throughout the CIO community. "I'll let everyone in my network
know what happened," says King.
For CIOs, sharing stories about misbehaving vendors isn't about getting
revenge—it's a matter of survival. "You rely on vendors and partners to
help you accomplish your mission," says King. "Every time you select a
vendor or a partner, your job is on the line."
It's critical for vendors to understand the extent to which CIOs depend
on them. It's also critical for vendors to remember that when CIOs change
jobs, they bring their memories with them.
CIOs base their impressions of a vendor on their dealings with the vendor's
sales force. If the sales force is consistently sending the wrong messages,
the vendor's reputation will invariably suffer.
Levels of Commitment
A sales rep's ability to say, "Been there, done that" weighs more heavily
as a factor in the vendor selection process when the solution under consideration
is critical to the business, says King.
"If the solution isn't critical, we might be willing to try something
new with the vendor. But even then, the vendor will need to demonstrate
some past success in doing new things with other customers or within other
parts of our business," says King. "I'm really looking for signs of commitment.
I want to know that the vendor will stick with us and not get bored and
disappear."
Not every relationship has to be strategic. King doesn't expect the same
level of commitment from a vendor selling PC peripherals as he does from
a vendor selling an enterprise financial management solution.
"We look for higher levels of commitment from vendors supplying business-critical
solutions. As the business process becomes more critical, our need to
feel comfortable with the vendor increases," says King. "If we're talking
about a commodity such as a computer mouse, then we don't need the same
level of comfort with the vendor."
When King is interested in working with a vendor, he doesn't hesitate
to explain precisely what he's seeking.
"Early in the sales cycle I try to describe the role that the vendor
will be playing within our company. I'll describe the vendor's responsibilities,
the level of service we're expecting, and the kinds of results we're looking
to achieve," says King. "And I'll ask the vendor, 'Can you fill this role?
Where have you done this before?'"
Buyers Weigh In on Professional Services Brands: An Interview with ITSMA's Lori Weiner
Lori Weiner, associate vice president of research at ITSMA, recently
published the findings from our 2007 Brand Tracking Study for Professional
Services and Solutions. In this interview, she provides insight into
the prevailing buying reality for IT professional services and solutions
providers.
ITSMA: Lori, this is the ninth annual installment of
this study. What were some of the most surprising findings this year?
Weiner: I'm always surprised by the senior business and technology
executives who claim not to have heard of IBM, Oracle, or HP! The people
we interview for this study are responsible for professional services
procurement, and the fact that some of them can't name a single provider
or recognize industry-dominant players is mind boggling.
Of course, most of the buyers we interviewed did recognize the big-name
firms. When we calculated the brand equity of the 20 professional services
and solutions firms we examined in the study, IBM took the top spot. Other
top achievers included Accenture, EDS, Hewlett-Packard, Oracle,
and SAP.
ITSMA: What about smaller or emerging players that don't
yet have the kind of brand recognition that the incumbents enjoy? How
can they gain more mindshare with buyers?
Weiner: Less established players should keep in mind that the
market for professional services and solutions is highly fragmented, which
means there are opportunities for them to stand up and be noticed.
However, they need to accept that broad awareness is within reach of only
those companies that have the largest advertising budgets and that they'll
have more success if they abandon the blanket approach to marketing in
favor of staking out a niche and building awareness with smart, targeted
marketing.
ITSMA: How did the offshore firms fare this year?
Weiner: Of the five offshore firms included in the study—Cognizant,
Infosys, Satyam, TCS, and Wipro—Infosys emerged with the highest Brand
Equity Index (BEI) score. Cognizant came in a close second. Although
these offshore providers still lag behind many of the incumbents in terms
of brand awareness and preference, the message about the cost savings
that can be achieved by selecting offshore providers continues to resonate
with buyers.
ITSMA: What did buyers say was most important to them
when selecting services and solutions providers?
Weiner: What we saw this year was that relationship factors like
dependability, responsiveness, and a collaborative work style are the
most important selection criteria for buyers, but providers are having
a hard time conveying these qualities during the sales cycle. To address
this challenge, ITSMA recommends that firms demonstrate that they're committed
to building a relationship, not just making a sale, by:
Managing the total customer experience, from initial contact through
delivery, to ensure consistency throughout the relationship
Securing customer references
Allowing prospects to sample the goods before they buy: providing
seminars, presenting at conferences, and offering complimentary assessments
In late 2005, Cognos decided to get serious about search. It recognized
what ITSMA research has shown for several years: Buyers no longer wait
to be sold; instead, they proactively research their options on the Web.
Cognos wanted to be the company that showed up when people searched
on terms that were core to its business.
For paid search, Cognos knew it had its work cut out for it: In 2004,
its pay-per-click (PPC) marketing focused on branding and captured just
nine incidental leads. Today, the company's Google-focused PPC marketing
campaign generates more than 1,000 leads a month. To turn its PPC
campaign around, Cognos took a number of steps, including:
Buyer research
Identification and implementation of best practices
Campaign management
Measurement
Buyer Research
Searchers tend to be in the right frame of mind to accept a relevant
offer. Therefore, what companies need to do to convert prospects into
leads is to figure out the most efficient way to give them exactly what
they want when they want it. For this reason, precise targeting is essential.
Cognos not only conducted customer analysis to understand its audience,
it also researched the kinds of collateral that were most effective at
different points in the buying cycle so that it could supply relevant
materials at the most opportune times.
Based on its research, the Cognos marketing team built a business case
for the company's PPC campaign that outlined the market opportunity. Senior
management bought into the idea, providing a dedicated budget and dedicated
people to manage the campaign.
Identification and Implementation of Best Practices
Cognos has found that identifying and implementing best-practice search
marketing techniques have required substantial time and effort, which
continues today. Due to the nature of the project and Cognos' expertise
in performance management, marketers can measure results in real time,
so they follow a trial-and-error cycle to continuously improve them. Some
of the most important variables they consider include:
Keyword analysis. This includes determining what words are
important to the organization, what words customers actually search
for, and whether or not the searchers that use these keywords tend to
turn into leads and revenue. Similarly, the same keyword can be targeted
in different ways, with different associated costs and results. For
example, keywords can be selected for broad or exact matching. If the
match type is broad, the search engine will display results that include
the keyword as part of a longer group of words entered by the user;
if it is exact, the search engine only shows ads that match the keyword
alone. Other options like choosing singular versus plural keywords or
purposely targeting misspelled keywords are also considered. Each choice
impacts the ROI for each keyword.
Ad copy. Statistics inform decisions on how best to craft the
short, 95-character Google ads. Repeating the user's keyword, using
a call to action, identifying an incentive such as a white paper, choosing
what URL to display, deciding when to use capital letters: Each detail
has a direct and measurable impact on whether or not an ad gets clicked.
Google and other engines also allow for multiple versions of the same
ad. Cognos must choose whether to display the most "popular" ad more
often for additional clicks or to eschew clicks in favor of circulating
the different ads more evenly for a higher-quality click. The right
choice is different for each keyword.
Ad position. Cognos can dictate its average ad position on
Google, ranging from the top position to the last. Top positions get
more visibility and more clicks but not necessarily more leads. Lower
positions get less visibility and fewer clicks but not necessarily fewer
leads. The right choice is different for each ad and keyword combination.
Landing pages. Once clicked, each ad delivers a user to a landing
page. Many advertisers deposit these visitors on a standard page such
as their homepage. Often, there is too much information and little that
speaks directly to the interest of the user. To capture more leads,
Cognos currently has more than 30 customized landing pages for the PPC
campaign. These include the user's keyword in the title, a repeat of
the incentive, little text, and only two options for action. Completing
a truncated form allows the user to get the advertised incentive. For
users who fear forms or who are not ready to convert, there is also
an escape "No thanks" button that goes to a relevant page on Cognos.com.
Web statistics show that visitors who choose the "No thanks" button
often convert somewhere else on the site.
Campaign Management
This project has succeeded with the help of a diverse but unified virtual
team. In house, there is a senior manager who controls budget and approvals,
as well as a dedicated program manager who functions as head of the virtual
team. Other Cognos members include a Web developer who builds landing
pages and other Web content and a Web reporter who manages statistics.
Externally, a representative from each search engine is available to help
with specific issues, and staff members from a media-buying agency contribute
their time and expertise as well.
This structure required new types of collaboration across the entire
marketing team. Writers now work in concert with the Web team, and other
outbound marketing teams now work more closely with the Web marketing
team. The marketing programs team regularly funds a portion of the PPC
program in exchange for a list of highly qualified prospects. This team
then nurtures these prospects through the marketing funnel with additional
promotions, offers, and incentives until each prospect is deemed ready
for handoff to sales. Because much of the demand generated by search marketing
comes from prospects who are just starting their research, search marketers
can provide the Cognos lead-nurturing program with names for the top end
of its funnel.
Measurement
Establishing end-to-end reporting to demonstrate the value of the campaign
from start to finish has been important, since it can be quite a challenge
to convince others of the importance of search without proven results.
In response, Cognos has leveraged its own business intelligence software
for analysis and reporting to draw on a number of different data sources,
including Google Analytics, Eloqua, and Salesforce.com.
Results
The results Cognos has achieved with its PPC campaign are impressive.
From its humble beginning as a brand awareness program that generated
nine incidental leads per year, the program has evolved into a demand
generation campaign that now captures over 1,000 leads per month and serves
as the company's third best source of Web leads. Cognos' average conversion
rate for May 2007 was 25% higher than the industry average, and its average
cost per conversion was $34. Furthermore, while its PPC costs are measured
in thousands per annum, forecast sales pipeline revenue from the PPC campaign
is measured in millions.
By overhauling its approach to paid search, Cognos has satisfied its
customers' needs, beat industry benchmarks, and increased its marketing
ROI. "Ultimately," said Brian O'Grady, Cognos' PPC manager from Search
Warrant Online Marketing, "search marketing campaigns work because the
customers target themselves."
The topic of demand generation is a much travelled road, and in recent
years the most important elements for generating demand have changed considerably.
Long gone are the broad mass marketing campaigns with a Web link or number
to call; here to stay are the precise, targeted actions that ensure your
message reaches the right person. But though the methods have changed,
getting the right result still requires you to pay attention to the basics:
Who are you going to target?
Which vehicle is most appropriate?
How will you differentiate your offering?
Which elements should be measured?
How will you track results?
The cynicism and scepticism towards overt marketing and PR that exist
in a mature market like Europe have led people to look elsewhere for advice
and education on services and solutions. As a result, the all-important
"Who are you going to target?" question refers not just to the
person whom you believe has a need for your offering but also to a wider
range of influencers.
In this changed environment, we have suggested the employment of five
“levers” to maximise your opportunities:
Orchestrate a client experience that creates advocates
Invest in customer relationship programs
Influence both the new and more traditional influencers
Balance push and pull marketing
Employ segment and Account-Based Marketing (ABM)
In this article, we touch on the two levers we discussed at a recent
ITSMA Roundtable in Amsterdam: balancing push and pull marketing and Account-Based
Marketing.
First, balancing push and pull: Many buyers today proactively approach
providers when they have a need for a solution rather than waiting for
providers to contact them. In fact, ITSMA’s recent study, How Customers
Choose Solution Providers, showed that customers do their own research
and find appropriate vendors 66% of the time. This finding demonstrates
the importance of balancing push and pull marketing activities to drive
interest and generate demand for your offer.
Around Account-Based Marketing, the consensus was that ABM in Europe
is still in its infancy compared with more traditional sales and account-planning
approaches. Of the companies that have started down the ABM route, most
employed an ad hoc approach in Europe in support of more structured programs
emanating from the U.S. market.
Participants felt that the ABM approach was well-suited to the U.S. marketplace
but that the traditional conservatism of European markets meant that its
adoption in Europe might follow a more evolutionary path, where “organic”
relationship building would take precedence over a very structured approach.
One thing that everyone agreed on was that, as customers expand their
search for providers to a global scale, the need for ABM increases. In
a global sourcing environment, deeper relationships with your customers
will become key to future success.
Research Desk
Ask ITSMA: What Are the First Steps in Getting an Account-Based Marketing Program Off the Ground?
Each month, ITSMA receives a number of queries through Ask ITSMA, a resource designed to give members a quick and easy way to get insight on important services and solutions marketing questions they face. In this column, we will publish some of our favorite questions along with excerpts from our replies.
Question: I've heard a lot about the benefits of Account-Based Marketing (ABM); now I want to start an ABM program at my company. What are the first steps I need to take?
Answer: ABM is a structured approach to developing and implementing highly customized marketing campaigns for single accounts, prospects, or partnerships. By treating each target as a market of one, companies can increase demand and profitability within their most important accounts.
ITSMA has a three-phased methodology for helping companies successfully build and implement ABM programs. Here's a quick breakdown of our approach:
Phase 1: Program Planning and Design. Here's where you lay the foundation for overall program success. Identifying executive sponsors, finding sources for funding, and selecting target accounts are just a few of the important topics addressed in Phase I of our framework.
Phase 2: Account-Specific Project Implementation. Once you've laid the groundwork for a successful program, it's time to look more closely at what needs to be done within each individual ABM account. This phase includes understanding and analyzing the account, defining and selecting plays, building and executing the marketing and sales plan, and measurement and review.
Phase 3: Program Management and Evaluation. Here you evaluate the overall program and determine how you will improve and grow the program. To scale your ABM program, other important issues need to be addressed, including staffing, funding, and organization.
Since you're just starting to think about how to leverage ABM within your company, building the business case for ABM and securing support from top executives are the first things you should tackle. The most convincing business case is one that contains actual metrics based on successful ABM programs. ITSMA happens to be on the cusp of launching a benchmarking study to gather critical marketing and sales benchmarks on ABM programs at companies in the IT and professional services sectors. If you're interested in sponsoring the research, check out the study prospectus at:
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