I recently hosted the first annual CMO Wine Reception in Washington, DC.Twenty-one top CMOs from the region participated.
The session was entitled “You’ve Got a Revenue Quota — NOW What? Demand Creation Secrets from Top Performing CMOs.” Here are some highlights you can use.
Summary of Session
An increasing number of B-to-B
marketing leaders now have responsibility for some portion of their
organization’s sales pipeline creation. To do this effectively, they will have
to work extensively with their sales counterparts to build a demand engine that
is repeatable and predictable.
session explored the underpinning strategies, processes, and technologies that
drive high performing b-to-b demand engines, and how high-performing CMOs have
prepared themselves for the changes in their function that are required.
1. Strengthen relationships with internal constituents
2. Understand the importance of shared process between
marketing and sales
3. Select the ideal metrics
4. Understand the increasingly important role of
teleprospecting in the demand schematic
Nirell,founder of EnergizeGrowth® and Marketing Leaders of DC™
Richard, Co-Founder of Vorsight,
an Inc. 5000 company based in Rosslyn, VA
Tony Jaros, Sr.
VP of Research at SiriusDecisions.
CMOs from 21 companies participated from industries
which included Software, Publishing, Research, Not for Profit, Telecommunications, Government
Contracting, Security, Health Care, and Commercial Real Estate/Finance. Two-thirds either currently carry some revenue
quota, or expect to secure one within the next 12 months.
- 7.5% = Projected
growth in inside sales positions from an MIT and SKK University study for the
period 2009-2012. This contrasts with .5% growth in outside sales positions.
- 44.6% = Less
than half of 1,200 surveyed by Lattice Engines in 2012 see any improvement in
sales and marketing’s ability to prioritize leads, EVEN THOUGH access to “sales
intelligence” rose from 62% to 67% over the time period they studied.
spite of the increased use of prospecting tools, LinkedIN, and other online
resources used to fuel demand, 20%
of a salesperson’s week—one full day–is still spent researching
new prospects. This leaves little time to nurture existing leads who have
expressed interest in their products and services.
Five Demand Creation
- Culture – Do our internal constituents support
Marketing’s intentions to create and accelerate demand?
- Customer – Are our customers accepting of Marketing’s
involvement in the buying process?
- Consistency – How would we rate our current, documented
demand creation process? What is the speed and consistency of that
- Continuity – What is the best way to measure the efficacy
of our process?
- Capability – How skilled and responsive is our current
team to drive the process?
participants confirmed that their number one obstacle to enabling demand is lack
of consistency (#3).
- Before embarking on any demand creation
initiative, determine whether Sales is willing to support and accept your
contributions. They are often the toughest constituents to engage in the demand
- Interview stakeholders at multiple
levels to identify how wide the gap is between core values (stated ways of doing business) and operating values (what happens on the
front line). How much dissonance exists between the two? This will determine
your probability of success with a demand creation initiative.
- Blackboard and other companies have successfully
established Service Level Agreements (SLAs) with their sales constituents. This can codify the
relationship and clarifies expectations.
- Few companies have started combining
“top of the funnel” demand creation (market research and data
gathering) with voice of the customer insights (post sales). This is an
emerging industry, especially among B2B companies. JetBlue and EMC are pioneers
in this arena. They have found that just as many upsell opportunities exist
from studying VoC information as with new opportunity data and leads.
- Lead decay should be avoided at all
costs. Leads are highly time sensitive. Steve Richard shared research that
shows high buying preference to companies who respond within minutes of the inbound lead arriving.
presented the Sirius Decisions Waterfall
While several participants
recognized the model, a few participants have chosen not to show this model to
their CEO. They called it “too complex.” Others did not see value in the shape of the
waterfall because it does not address demand
that can be generated from existing customers (which can often surface from Voice of the Customer initiatives).
In my opinion, the Waterfall model is a perfectly fine approach to codify demand creation. The real issue may be that CMOs have not found an effective way to explain its value to the C-suite. Coincidentally, “Gaining Ground with Your CEO” will be the topic of our next session in June.
for Managing the Changing CMO Role – Eloqua blog
Four Essentials for Modern Marketers – FastCompany blog
The ROI of Demand Creation – Sirius Decisions
11 Ideas to Guarantee Outsourced Appointment Setting
ROI – Vorsight blog
copyright 2013, Lisa Nirell. All rights reserved.