Tag Archives: B2B marketing

Confucius Say: Your Case Studies are Worthless

confuciusThe most noteworthy article on B2B selling was published in a 1966 Harvard Business Review article (#66213). In “How to Buy /Sell Professional Services,” author Warren J. Wittreich explains the differences between extrinsic and intrinsic selling.

Extrinsic selling occurs, according to Wittreich, when a B2B seller relies on successful work that’s been performed for other customers, as a means to validate the seller’s capabilities and potential ability to perform for a prospective customer.

The weakness of extrinsic selling is that it requires a prospective customer to make a leap of faith: to believe the service provider will provide a level of success that matches or exceeds the work performed for the seller’s past or current clients. Extrinsic selling is a “trust me” approach, employed by a great number of B2B product and service providers.

Conversely, intrinsic selling does not require a prospective client to base its selection of a seller based on work done for others. No leap of faith required. Instead, it engages the prospect in a meaningful dialogue that (1) addresses their specific situation; (2) demonstrates — on an immediate, first-hand basis — the seller’s understanding of the situation; and (3) validates the seller’s ability to help the potential buyer. Intrinsic selling provides buyers with a significantly higher level of confidence in the seller’s capabilities, and leads to an engagement or sale far more frequently and rapidly than extrinsic selling.

The B2B marketer’s task is to equip the sales force with methodologies and tools that help initiate and facilitate intrinsic selling. This goal is rarely accomplished through anonymous or identified client / customer “case studies,” which are widely used, that prospective clients rarely read, and often carry the same level of credibility as references on a job applicant’s resume. (Would a company ever publish examples of its past work that were not portrayed as highly successful?)

Create Tools to Engage Prospects

One example of effective B2B intrinsic selling involved Phibro Energy’s introduction of energy derivatives…which enabled large companies to manage price risk related to gasoline, jet fuel and heating oil. To capture the attention of CFOs of those companies, and to convince them that energy derivatives were a viable risk management strategy, Phibro’s sales force needed more than brochureware. A prospective client needed to understand exactly how energy derivatives would benefit his company.

To establish an intrinsic sales dynamic, Phibro equipped its sales reps with a worksheet that calculated the range and depth of the prospect’s energy price exposure. Then, by applying a sophisticated algorithm, the sales rep was able to show exactly how energy risk management could improve the CFO’s company’s balance sheet.

Phibro’s energy exposure worksheet not only enabled their sales reps to establish an intrinsic sales dynamic, it cast the sales rep in a consultative role, and positioned Phibro Energy as a resource that could help reduce economic risk and lower operating costs.

Marketers at most B2B businesses, as well as many B2C firms, have similar opportunities to build interactive disciplines and tools — both online and offline — that can empower their sales reps to leverage the power of intrinsic selling. In taking this approach, they also benefit from the wisdom of the marketing master, Confucius, who purportedly wrote:

 I hear…and I forget.

I see…and I remember.

I do…and I understand.

Leave a comment

Filed under Uncategorized

How WebMD Has Changed B2B Marketing Forever

webmd2Many B2B companies, and professional services firms in particular, do not succeed at marketing for two major reasons:

  • Failure to understand that the vendor selection process has fundamentally changed.

Prospective customers now turn to their personal networks and publicly available information — via digital and social media channels—to self-diagnose their problems and to self-prescribe their own solutions. In this new WebMD World of B2B Marketing, making the short list of potential vendors relies heavily on being visible and appearing smart in appropriate online channels on a consistent basis.

To appreciate the magnitude of this shift in how customers select outside resources, consider 2012 market research conducted by the Corporate Executive Board’s Marketing Leadership Council, which surveyed more than 1,500 customer contacts (decision makers and influencers in a recent major business purchase) for 22 large B2B organizations spanning all major NAICS categories and 10 industries. As depicted below, the survey revealed that the average customer had completed nearly 60% of the purchase decision-making process prior to engaging a supplier sales rep directly.  At the upper limit, the responses ran as high as 70%.

57

The implications of this research are clear: B2B companies that fail to “show up strong” in the online world are missing engagement opportunities with potential as well as existing clients.

  • Failure to respond properly to the new vendor selection process.

Unfortunately, many B2B companies that understand the new dynamics of vendor selection have responded in knee-jerk fashion, by saturating every possible online / digital channel and social media platform with content that neither reaches nor resonates with decision makers in their target audiences. Although buyer selection habits have changed, when it comes to brand awareness and positioning of a company’s value proposition, less is still more. And this chart explains why:

Attention Web

The online world makes it easy to obtain information, but extremely difficult to gain attention over all the noise. Increasingly, B2B firms are learning that simply having all the online visibility tools – company blog, Twitter account, Facebook page, LinkedIn profile, etc. – does not guarantee marketplace attention. They’re also learning that tactics designed to feed those online beasts – most often “currated content” from 3rd parties – can be akin to the “throw some shit on the wall and hope something sticks” marketing approach.

The firms benefitting most from the new WebMD World of B2B Marketing apply traditional marketing disciplines: they stake out intellectual territory that supports their brand with insights that are relevant and interesting to clients, prospects and referrals sources; they drive top-of-mind awareness (and new business inquiries) by ensuring that those target audiences receive their insights on a consistent basis; they create opportunities to engage, rather than talk at, decision makers; and they use online tools to enhance, rather than replace, direct communication with existing and prospective customers.

 

Leave a comment

Filed under Uncategorized

The Attention Web: What B2B Marketers Need to Know

For B2B marketers who are too busy to keep up-to-date on every marketing trend and buzzword, here are a few thoughts on all the current noise about the Attention Web:

  • Attention as a marketing asset is not a new concept: Top-of-mind awareness has always served as a cornerstone of effective B2B marketing.  In their 2001 book, The Attention Economy, social scholars Thomas Davenport and John Beck proposed that in today’s information-flooded world, the most scarce resource does not involve ideas, money or talent. They argued that unless companies learn to effectively capture, manage and maintain attention – both internally and in the marketplace – they will fail. Here’s one way to understand what’s happening:

Attention Web

  • Pageviews, Likes, Clicks, Shares and Downloads do not measure engagement: Now that the advertising industry is using actual data to evaluate online behavior, smart B2B marketers can validate what they’ve always suspected about the metrics that are used to measure the effectiveness of the content they produce. There is now hard evidence that shows the number of clicks, comments, and shares are not indicative of how much time people spend engaged with the actual content. One recent study, reflected below – produced by Chartbeat and based on a boatload of data – demonstrates that there is no relationship between how often a piece of content is shared and the amount of attention the average reader will give that content. The good news for B2B marketers is that there are now editorial analytic tools that can provide attention and engagement metrics and insights.

article sharing

  • Attention, engagement and business relationships are driven by quality content: Beyond whatever products or services they sell, all B2B companies must establish credibility and trust with clients, prospects and referral sources. Initial inquiries and longstanding relationships are not nurtured by bombarding target audiences with aggregated content from 3rd parties. The most successful B2B firms only associate their brand with highly relevant content, most often home-grown, that supports their value proposition, stakes out intellectual territory, avoids self-serving claims and truly differentiates their company from competitors. Less can be more, when it comes to B2B content.

 

  • Don’t rely on the internet exclusively to generate market attention. For B2B firms, direct communication (email, snail mail, face-to-face, etc.) with target audiences remains the most effective means of gaining and maintaining engagement. If you’ve created high quality content, ensure that it earns an adequate marketing ROI by consistently putting it in front of the right people; don’t expect them to find your content by themselves on your company website or blog, on LinkedIn or through Twitter. Those online channels should be considered a secondary, rather than the primary means, of generating attention and engagement through content.

Leave a comment

Filed under Uncategorized

Client Newsletters: Empty Suit of the B2B Marketing Mix

Most Client Newsletters Deliver No Tangible Value

Most Client Newsletters Deliver No Tangible Business Value

Client newsletters are the most widely used, often abused and hotly debated B2B marketing tactic for professional services firms of any size. Here are three highly subjective myths and realities to help your firm determine whether it’s a worthwhile tool, or how to improve your current newsletter.

MYTH #1:        Your Firm Needs a Client Newsletter

Marketers want you to believe that your firm needs a client newsletter. But traditional newsletters – containing commentary ranging from tax legislation to new technology, or who’s joined the firm – are not a marketing necessity. In fact, at many firms their client newsletter is a marketing albatross. Each issue involves a frustrating hunt for timely information of genuine interest that has not already been provided to clients by another news source. Some firms avoid this pain by slapping their logo on boilerplate content purchased from a 3rd party, but those firms can pay a bigger price, in terms of brand damage. Canned content says to target audiences, “We value our relationship, but we don’t really care enough (or know enough) to produce our own newsletter.”

REALITY #1:     Your Firm Needs to Drive Top-of-Mind Awareness

The intrinsic purpose of tactics that communicate with clients, prospects and referral sources is to reinforce the perception that your firm is smart, trustworthy and prepared to help. Beyond keeping and growing existing clients, your primary marketing goal is to drive top-of-mind awareness with target audiences. That way, when a prospect is seeking assistance, there’s a greater likelihood your firm will be selected, or at least will be put on the “short list” of candidates. If that’s the goal, then consistency and quality of the contact are critical; neither of which necessarily require a newsletter format to accomplish.

___________

MYTH #2:        People Want to Learn About Your Firm’s Success

It’s nice to think that clients and prospects really care about your firm’s growth and accomplishments. The sad truth is that your success is more important to your competitors, and to current and prospective employees than it is to clients who generate revenue for the firm. Blowing your own horn can also backfire. When your firm touts that a senior partner has just published a book and was a guest on CNBC, your target audiences may wonder why that partner isn’t focused on client matters rather than self-promotion, or whether the cost of his book’s publicity tour will result in higher hourly rates.

REALITY #2:     Your Clients, Prospects and Referral Sources Care about Themselves

Understanding that all people are self-interested can make you a better marketer. Rather than creating newsletter content that’s based on what you know, on what you’ve done or on what you can do, focus instead on the ideas, talents and accomplishments of your target audiences, regardless of whether your firm played any role in their success. This is a very tough concept for many B2B firms to understand and embrace: that the most powerful form of thought leadership does not involve pushing out your own ideas. Instead, it involves deciding what ideas merit the attention of your target audiences, as well as what voices are worth listening to. True thought leaders seek to manage the conversation, not to control it.

_________

MYTH #3:        A Newsletter is a Cost-Effective Marketing Tactic

The old saw, “Cheap is dear” rings true when it comes to newsletters. If it’s created in-house, few firms actually track the hours required to write, edit, approve and publish their newsletter. If it consists of cut & paste content, few firms consider the cost of producing a newsletter that very few people will read or respect. Regardless of content, only a small number of professional service firms proactively work to expand their newsletter’s reach, to maintain an adequate CRM capability, or to properly leverage readership analytics from open and click-thru rates, if their newsletter is delivered online.

REALITY #3:     Your Marketing Requires More than a One-Way Conversation

Newsletters are one-way conversations. A fundamental marketing objective is to engage clients and prospects in a conversation regarding their specific needs and opportunities. Despite the buzz regarding social media, that channel can also fall short in terms of engagement. If your firm’s traditional and social media marketing tactics do not serve as catalysts to drive Face-to-Face discussions and Word-of-Mouth referrals, then their “cost-effectiveness” can never be measured on a meaningful basis.

2 Comments

Filed under Uncategorized

Make Your Corporate Anniversary Worth Celebrating

candle_cupcake_thumbnail1-233x300

B2B firms that have flourished for 20, 30 or 50 years are understandably proud of their longevity, particularly after having endured the most recent decade’s harsh economic conditions. But many of those companies do not leverage their achievement, by failing to capture the attention, interest and engagement of the internal and external audiences that will determine their continued success.

Too often important corporate milestones are treated in a manner similar to a wedding anniversary: companies will send out an announcement (press release, advertisement or email blast), host a modest reception, and provide a memento to a select number of longstanding clients.

These traditional corporate anniversary tactics may yield a few congratulatory notes, but will not deliver what might have been achieved – in terms of confirming core values, building corporate culture, and reinforcing brand presence – if the company had approached the opportunity in a strategic manner.

As a starting point, effective corporate anniversaries require the same high level of planning discipline that’s applied to other aspects of business development at the firm, which should include:

  • Articulation of measurable business objectives the program will seek to achieve;
  • Identification and prioritization of the target audiences the program will reach and influence, including employees, current and prospective clients, suppliers, referral sources, the media, etc.;
  • Framing the core messages that will be expressed through the program, and
  • How success of the anniversary program will be evaluated.

Based on that strategic groundwork, a company is well-prepared to identify appropriate tactics, make well-informed decisions regarding budgetary allocations, assign responsibilities for tactical implementation, and to build a program calendar.

Ideally, a corporate anniversary strategy is based on a limited number of high-quality tactics, rather than a long list of activities with limited impact or strategic value. A few examples of high value tactics might include:

  • Logo Modification – This need not be elaborate or permanent, and might also include a forward-looking tag line or theme. A simple “Celebrating 25 Years” or “Since 1988” can easily be integrated into an existing logo design. The reference can also be integrated into email signatures of all employees.
  • Website Visibility – This can be as simple as an anniversary banner at the bottom corner of the home page, or as elaborate as a corporate timeline or new “history” section that explains significant events since the company’s founding.
  • Client / Employee Gifts – If it’s deemed appropriate to give an anniversary gift to long-time clients, employees or suppliers, these gifts should be personalized and delivered in a very personal manner; either presented individually and in person, or accompanied by a customized letter from the CEO, managing partner or owners.
  • History Wall – This multi-media display, consisting of photographs and historical artifacts, displayed in the firm’s lobby or a conference room, can serve as a permanent and updatable validation of the company’s milestones and achievements.
  • Client-Focused Ad Campaign – Rather than touting your company’s anniversary, select 4 or 5 blue chip clients who are willing to be profiled in an advertising campaign that promotes their longevity and success. Passing (rather than direct) reference to the length of your firm’s relationships with those clients suggests that your company puts client interests ahead of its own.
  • Video Profiles – To humanize the firm, and pay tribute to long-time employees, video interviews can showcase the personal stories, values and dedication that have served as the cornerstone of the company’s success. These 2 – 3 minute videos can be posted on the corporate website, and on the company’s social media sites.
  • Earned Media – Press releases announcing corporate anniversaries are of little interest to most journalists. But if your company has an interesting or inspirational story to tell – involving hardship, unique challenges, failure or creativity – it’s well worth soliciting interest from appropriate media sources. Positive coverage in respected business or trade publications provides valuable 3rd party endorsement of your company’s long-term achievement.
  •  Philanthropy – Rather than hosting an expensive celebration or social event, a charitable tactic may generate greater client goodwill and provide opportunities to promote the firm’s anniversary (and underlying values.) These tactics might include scholarships, research grants, sponsorships, named donations, fundraisers, etc. that are related to the firm’s business or mission.
  • Recurring Content  – To sustain top-of-mind awareness related to the firm’s anniversary and reinforce thought leadership, firms can publish and distribute theme-based content that’s likely to be of interest to target audiences. For example, an accounting firm celebrating its 25th anniversary might publish an interview series featuring CEOs of 25 long-term clients, who share the best business advice they’ve ever received. If published monthly, this tactic represents 12 separate opportunities to promote the firm’s anniversary.

The depth and range of anniversary-related tactics that can be leveraged by B2B firms is limited only by creativity and budget. But activity is not the benchmark for success. The real challenge involves alignment of strategy and tactics to achieve tangible business outcomes.

Leave a comment

Filed under Uncategorized

Thought Leadership Merchandising: Rising Above the Noise

kjhkjhk

Thought Leadership Programs Must be Accountable for Business Outcomes

Thought Leadership is one of the most widely used terms in B2B marketing.  But there’s a range of opinion regarding what Thought Leadership is, and fuzzy expectations with respect to its tangible benefits.

Researching the term “Thought Leadership” yields everything from a sterile Wikipedia definition, to blog posts featuring marketing insights similar to this online gem:

“It doesn’t matter if you’re an entrepreneur, an employee, or a student – your ability to become a thought leader will catapult your success.  A great way to accomplish this, is on LinkedIn.” And we wonder why the marketing discipline is held in such low regard.

Broadly, if Thought Leadership is a marketing strategy that leverages intellectual capital to engage target audiences, then there are two critical components and issues:

  1. Content — What qualifies as legitimate and effective Thought Leadership?
  2. Application — How should the content be applied to drive tangible business outcomes?

A coherent and concise description of bona fide Thought Leadership content is contained within a checklist (shown below) developed by Jeff Ernst, VP of Marketing at Forrester Research, who broadly describes the strategy as “expressing a viewpoint that influences others…” as a means to “generate conversations that build trusting relationships over time.”

It’s important to note that Thought Leadership should not be limited to pushing one’s own viewpoint. True Thought Leaders are those individuals or organizations that define what topics or issues are important, and also provide opinions on those topics (other than their own) that are worth listening to. Thought Leaders seek to manage, rather than control, the conversation.

For example, rather than featuring a message from your CEO in each issue of the company’s quarterly newsletter, consider publishing guest commentaries (not promotional messages) from clients, prospects, referral sources and recognized opinion leaders in your discipline. In return, you’ll gain higher readership levels, greater credibility and top-of-mind awareness, and the likelihood that the client / prospect will distinguish your brand from competitors.

Merchandising Strategy Precedes Content Development

To the consternation of CXOs, some marketers employ Thought Leadership as though it embodied some mystical higher purpose; as a tactic that’s not held accountable for increasing leads, clients or revenue. Apparently through marketing osmosis, a brilliant OpEd piece in the Wall Street Journal or a rousing keynote presentation at an industry conference will somehow bolster a company’s balance sheet. All too often, Thought Leadership’s only benefit involves corporate egos.

Proper application of Thought Leadership-based content begins with development of a content merchandising strategy, involving two basic questions:

  • What measurable outcomes do we want our Thought Leadership to achieve (other than having people think we’re smart)?
  • How will we apply our Thought Leadership content (other than dropping it on our website) to achieve those measurable outcomes?

Creating any Thought Leadership content before fully addressing these two questions is akin to building a large sailboat in your basement. It may be a beautiful work of art, but you will never sail it around the lake.

Ultimately, the most effective merchandising of B2B Thought Leadership content yields credibility tools that:

-        support your company’s value proposition,

-        deliver an inherent 3rd party endorsement,

-        can be presented in a non-self-serving manner,

-        contain content that has a very long shelf life,

-        integrate seamlessly into your firm’s sales process,

-        engage target audiences in conversations that build relationships, and

-        drive tangible business results.

In fact, the acid test of effective Thought Leadership should not be based on your CEO’s level of satisfaction in seeing her byline in print. Instead, you’ll know that your Thought Leadership is effective when the head of sales or new business development is nipping at your heels regarding the campaign’s progress.

2 Comments

Filed under Uncategorized

Did Reader’s Digest Flunk Its Own Trust Test?

It Pays to Get a Second Opinion

…and I have a highly rated TV show.

In an effort to goose newsstand sales, the June issue of Reader’s Digest features a cover story entitled, “The 100 Most Trusted People in America Today.” Although the article’s “most trusted” claim is far from trustworthy (in fact, 1,000 people voted on 200 American “opinion shapers and headline makers” that Reader’s Digest had pre-selected), there are some quirky results worth noting.

According to the survey:

  • Americans trust doctors, especially if they’re on TV. For example, Dr. Oz (#16) and Sanjay Gupta (#17) outscored respected medical authors Andrew Weil (#75) and Deepak Chopra (#92).
  • Americans also trust TV judges, such as Judge Judy (#28) and Judge Joe Brown (#39), more than they do real-life Supreme Court judges, including Sam Alito (#60) and Elena Kagan (#62).
  • Some strange relative rankings include: Johnny Depp (#35) who outscored Oprah Winfrey (#59), Billy Graham #67) and Condoleezza Rice (#68);  and Adam Sandler (#64) who edged out Barack Obama (#65), but both were far behind Michelle Obama (#19).
  • The top four people on the list are all actors: Tom Hanks, Sandra Bullock, Denzel Washington and Meryl Streep. At the bottom of the 200 candidates were celebrities with damaged brands, including Lance Armstrong and Kim Kardashian.
  • In addition to its untrustworthy headline, Reader’s Digest fesses up in the article that its editors had removed the three highest scorers from its Top 100 list, which were “your own doctor” (77%), “your own spiritual advisor” (71%) and “your own child’s current teacher” (66%).
  • Given 15 categories, the most trusted professions were 1. Doctors, 2. Teachers, 3. Movie Stars, 4. Philanthropists, and 5. Spiritual Leaders. Not surprisingly, Business Leaders and Financial Experts were ranked 11th  and 12th, respectively, just ahead of Politicians and Political Pundits.
  • Only 6 active business leaders made the Top 100 list, and all near the tail end, led by Warren Buffett (#71), Amazon’s Jeff Bezos (#78), Alex Gorsky of J&J (#86), Ken Powell of General Mills (#93), Steve Balmer of Microsoft (#94) and Steve Forbes of Forbes Media (#97).

Celebrity publicists will likely use these ranking to justify image overhauls for their low-scoring clients. But Reader’s Digest’s “Top 100 Most Trusted People” ranking really only validates America’s low-brow pop culture, and does not fairly reflect the integrity or character of any one of the 200 people on its arbitrary list.

In addition to “integrity and character,” Reader’s Digest asked its poll takers to rank the trust levels of its 200 candidates in terms of “exceptional talent and drive, internal moral compass, message, honesty and leadership.” But it’s an impossible task to rank someone on any of those criteria, unless you have first-hand experience with that individual over a long period of time.

Here are some the criteria this writer uses to measure trustworthiness of people, regardless of their profession or position of authority:

  1. DO THEY WALK THE TALK? I trust people who make good on their promises. And if they can’t deliver, they’re pro-active about explaining why they failed to meet your expectations.
  2. ARE THEY TRANSPARENT? Trustworthy people have no hidden agendas. Yes means yes, and no means no…which translates into no unpleasant surprises.
  3. DO THEY FOLLOW THE GOLDEN RULE? I trust people who treat a waiter in a restaurant, or the person cutting their lawn, with the same level of courtesy and respect they would display with their boss, or a prospective client.
  4. ARE THEY FAIR? Trustworthy people always explain the rules of the game, don’t play favorites, and base recognition and rewards on a meritocracy.

What are some of the criteria you apply to determine if an individual (or an organization) is worthy of your trust?

Leave a comment

Filed under Uncategorized