marketing ROI – MarketingMaven

September 2, 2021

An Introduction to Account Based Marketing

Industrial marketers are embracing Account Based Marketing (ABM) to supplement other demand generation strategies. With ABM, marketing and sales teams work together to target best-fit accounts, personalize the buying experience, and turn those prospects into customers.

ABM can be as simple as one-to-one marketing and selling or as sophisticated as one-to-many with multiple prospects being targeted at a single account. Companies seeking high-value customers might find an ABM strategy serves them better than casting a wide net.

Purchasing at larger organizations is a collaborative effort, with influence from engineers, management, operations, purchasing, and more. Budget authority resides throughout the organization—not just with senior managers. The more stakeholders you can engage at a targeted account, the higher likelihood of success with ABM.

The Benefits of ABM

Sales and marketing alignment, which can save resources and increase efficiency and morale. Selling and marketing expertise both are needed and the two teams must work together to identify accounts, devise targeting and personalization strategies, create customized content, and close deals.
ROI is easier to demonstrate. When you are going after specific accounts, eventually you either penetrate, gain a foothold, and expand the relationship—or you don’t. Your efforts targeting a specific account are easier to measure and track. Common metrics might be the number of ad views/email clicks/site visits by target organization, new prospects identified, leads generated, and wins.
Better content engagement. When content is personalized and customized for specific people, industries, job functions, and responsibilities, you have a much greater chance of engaging and satisfying your audience. Continue to personalize and customize your most popular pieces of content.

How to Pick the Right Accounts

Not every customer is an ideal target for ABM. Customers with sporadic ordering history, low-revenue customers, and outlier customers in fringe industries are likely not your ideal candidates.

You’re looking for customers who could potentially order a lot of your product and services and would stay loyal to a supplier that provides excellent products and responsive service. Here are some ways to identify the right accounts:

Create an ideal customer profile for ABM. Include industry, company size, titles and job functions, pain points, and how your offerings fit for that type of organization.
Talk with the sales team to get their input on potential accounts to target with ABM.
Examine your own customer database for repeat customers or large accounts that make potential ABM prospects.
Look for other companies both within your database and beyond that have similar profiles to your best customers.
Zero in on companies that are of strategic importance to your organization.

Prioritize ABM Tactics

How you actually market to these accounts depends on whether you’re marketing one to one, one to a few, or one to many. Here are some tactics to consider, starting with one-to-one outreach and extending to one-to-many marketing.

Make a connection on LinkedIn or other social media with a professional from a target account. Respond to their posts and participate in discussions. Share your ideas.
Send one-to-one emails to establish a personal relationship.
Ask if you can send them a relevant piece of content.
Once acquainted, ask for other contacts in the company who might be interested in engaging with you.
Begin mapping target account’s organization to understand hierarchy, team members, roles, and the appropriate content for each.
Follow the prospect’s organization on social media and participate as you do with individual accounts.
Sponsor or exhibit at a live or virtual event that the prospect organization is participating in or hosting.
Invite individuals from a targeted account to attend one of your events or be a guest speaker/presenter.
Place ads on industry and professional sites where your prospects will see them.
Set up a prospect-specific email newsletter and ask your contacts to opt-in.
Build custom landing pages for each targeted account.

About Custom Content

ABM requires content customized to the needs and interests of your target organization and its stakeholders.

Although it’s not always apparent what buy cycle state each individual is in at any given moment, you want to have top-of-funnel educational content such as white papers, technical articles, and eBooks, as well as content for latter stages, such as case studies, comparisons, data sheets, and product configurators.

Decision-makers and influencers can be segmented according to their area of responsibility: economic buyers, technical buyers, and analytic buyers.

Economic buyers are concerned with the balance sheet and ROI. Technical buyers want to make sure whatever is purchased fits within the existing technical environment of an organization. Analytic buyers must be assured that a product works as advertised and will solve the problem. Address each of these needs in your custom content for targeted accounts.

July 22, 2021August 2, 2021

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Simplify ROI Measurement

Demonstrating Return on Investment (ROI) is challenging for many marketers. Executives are demanding more accountability from marketing: What, exactly, are we getting for all this money we spend on marketing?

At the same time, marketing is complex, the buying cycle is long, and prospects typically interact with your company and content multiple times through multiple channels before making a purchasing decision. That can make it hard to measure ROI.

There are times when simplifying your approach to ROI can be helpful. You may not be able to measure everything, and some uncertainty may remain, but taking a simplified approach to ROI can still provide actionable insight and justify your marketing spend.

Start With Your Marketing Goals

Before you can start calculating ROI, you have to decide what to measure. The metrics available today to digital marketers are legion, since every click, view, open, forward, share, comment, and more can be captured.

How to choose which ones are important? Start with your marketing goals. The most common marketing goal for industrial marketers is lead generation, followed by brand awareness. But you might want to get more specific than that. To generate a single lead, a lot of touches—and therefore metrics—can be involved. Same with brand awareness: many metrics can contribute to its measurement.

Within lead generation, your goals could be to increase long-term leads for nurturing campaigns, or marketing qualified leads or sales-ready leads. Within brand awareness, a goal might be to increase subscribers or followers, or website traffic. You might have multiple goals. But if you’re new to ROI or struggling to get a handle on it, try focusing your efforts on one or two important marketing goals.

These Metrics Are Always Relevant

Whatever your marketing goals, certain metrics always make sense to track and are solid inputs for calculating ROI.

Website traffic—Your website is your company’s face to the market and your primary channel for attracting, educating, and converting potential prospects. Free Google Analytics is your source for the data.

New vs. returning visitors give a sense of how well you are reaching a new audience compared to keeping your current one. Other metrics within website traffic include page popularity, entrance pages, time on page, and exit pages.

If brand awareness is a goal, upward ticks in web traffic metrics are a good sign.

Conversions per activity—Getting visitors to your website is one thing, converting them is another and is essential to lead generation goals. Use forms completed on landing pages and content accessed to measure conversions.

Marketing qualified leads—You might generate a lot of leads, but how good are those leads? Many marketers using a scoring system to rank the quality of leads. What goes into the score is individual to each company, but common inputs include how closely a prospect resembles your current customers, the number of times they interact with your company, their industry/location, and their expressed buying timeframe. A marketing qualified lead can be tied to a specific campaign or come about as the result of a prospect interacting with multiple campaigns.

Engagement—This metric helps you understand how good your content is and how prospects respond to your marketing messages. Engagement is measured by clicks, shares, comments, likes, forward, mentions, and other purposeful activities on the part of your prospect. It can help you measure ROI on branding efforts as well as the value of your content.

Cost per lead—Most prospects who become leads will have multiple interactions with your company, so it can be challenging to attribute a single program and its associated costs to any given lead. What you can do is take your total marketing program costs, divide by the number of leads and get an overall cost per lead. But if you want to drill down to see which programs and efforts contribute most to lead generation, we recommend marketing automation.

Marketing Automation Makes Measurement Easier

With multiple marketing channels, so much content, and often a long sales process, it can be challenging to determine what influenced the lead’s desire to buy.

Marketing automation makes this process much easier. It allows you to track prospect activity across different channels and programs. You can also nurture leads with scheduled marketing touches and content throughout their buying journey.

You will be able to see all of the ways a prospect has interacted with your company, content, channels, and programs. You can get answers to the questions of what content they downloaded, what pages they visited, what social media they interacted with. You won’t run the risk of attributing a lead or a sale to only one program if several programs contributed to the outcome—which is a common occurrence.

There are free and low-cost marketing automation solutions on the market today. If you want to simplify ROI, take advantage of the technology and tools out there to help you.

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October 8, 2014

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What do Industrial Marketers Consider the Biggest Challenge in their Profession?

Generating leads for sales and measuring the ROI of marketing efforts are the main challenges industrial marketers face.

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IHS Engineering360 Media Solutions recently conducted its annual Trends in Industrial Marketing Survey of marketing and sales professionals in the industrial sector.

The online survey addressed the marketing trends, challenges and expenditures within the engineering, technical, manufacturing and industrial communities. This research report analyzes and presents the results of the survey, and offers recommendations to industrial marketers to help them allocate their budget, develop a sound marketing strategy, and plan effective programs and campaigns.

Download your complimentary copy of the report.

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April 16, 2014

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Four Best Practices to Optimize Your Lead Nurturing Efforts

In this digital era when technical professionals have more sources of information and a broader choice of vendors than ever before, many do not contact a supplier until they are close to making a buying decision. Other potential customers contact every possible vendor that could serve their needs. In either situation, and everything in between, you end up generating leads from technical professionals who could be anywhere in their buy cycle—from early research to late stage.

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To convert more of these leads to sales, to keep your sales reps happy with qualified leads, and to improve marketing ROI on your campaigns, you need a solid lead nurturing program to help prospects move along to the next stages of their buy cycle. The word nurture means to nourish, protect, support and encourage. And that’s exactly what you need to do with your leads:

Nourish—provide them healthy servings of relevant, useful information
Protect—keep them interested so they don’t abandon you for another supplier
Support—stay in regular contact always ready to meet their needs
Encourage—give them offers to help them move forward in their buy cycle

An effective lead nurturing program will fulfill all of these goals. Here are the best practices you need to follow:

1. Segment and score leads
Sales and marketing need to work together to define different types of leads; for instance, leads that are sales-ready versus leads that belong in marketing’s nurturing program. Use any criteria that work for your organization to segment and score leads. It could be demographics, product interest, buying timeframe, purchasing authority, budget, size of potential deal, location, digital behavior (such as website visits, webinar registrations, white paper downloads)—or any combination of these attributes. You can apply weights to different lead attributes and come up with a lead score. Example: leads that score a one, two or three belong in marketing; leads scoring four or five are ready for sales.

The way that you score leads—and adjust their scores over time—is the foundation for all other best practices in lead nurturing.

2. Maintain prospect interest
If you do a good job of segmenting and scoring leads, you will gain a solid understanding of your prospects’ interests and needs. Your goal then is to feed them a steady supply of content and offers related to their needs and interests. Technical professionals are looking for information that will help them solve the problem they are facing, which is directly related to the reason they contacted you in the first place. They want to know how things work, how your product helps them complete a task, what their different options are and what are the latest technologies and newest products.

You can deliver this information in a variety of ways. New leads might be most interested in educational content such as infographics, blog posts, articles, white papers and webinars. Prospects that score a little higher would be looking for demos, product overviews and technical specs. The next level might include buying guides, ROI calculators and competitive differentiators. Get the right information to the right prospects and you will keep them engaged.

3. Watch for signs of progress
One reason lead nurturing programs exist is that the buy cycle can be long, complex and involve multiple decision makers. Prospects do not want to be pressured into making quick decisions. You must keep the long view and respect their timelines in your lead nurturing programs. That said, look for signs of prospects moving forward, and when they do, take appropriate action, such as passing them off to a sales representative or sending them a customized offer.

To do this requires that you keep track of what your prospects are doing and adjust their lead scores along the way. For example, a lead that scores one upon initial contact with your company could become a three after spending three months in your lead nurturing program, based on their digital behavior. Therefore, you must continually monitor your prospects, track their behavior and look for signs of progress that indicates a change in the status of their readiness to engage.

4. Use Marketing Automation
It’s possible to develop and execute a lead nurturing program using manual processes or spreadsheets, but marketing automation software is becoming a common tool and an investment might make economic sense. The fact is, your prospects are everywhere on digital media—websites, social media sites, online events, blogs, webinars, video sharing sites and more. They are downloading, clicking, reading, streaming, watching and commenting. Plus you’re likely using multiple digital channels in your quest to connect with prospects.

Marketing automation software allows you to capture all of this action across digital channels. It is built to excel at lead management and nurturing. It can help you manage all of this complexity by scoring leads, creating landing pages, tracking prospect actions, triggering automatic emails, reporting on the effectiveness of various content, producing analytics and much more.

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How do you nurture leads? What tips or strategies would you pass along to your peers in industrial marketing? Share your thoughts in the comments section below.

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November 19, 2013

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Seven Strategies for Measuring Marketing ROI

The pressure has never been greater on marketers in the industrial sector to demonstrate results from their marketing programs. Yet many marketers aren’t able to measure ROI or don’t know how to begin. These seven strategies will help you. Not all of them may apply to your organization or situation, so pick the ones that make the most sense and use them. Soon you’ll gain a solid approach to measuring marketing ROI.

1. Shift the marketing conversation
Whether you are the executive making financial and budget decisions, or reporting to one who is, you need to reframe the marketing conversation. For example, rather than focusing measurement on marketing “activity,” focus on marketing “results.” Rather than presenting in terms of “defending” your marketing budget and having executives look at marketing as a “cost center,” advocate to alter perceptions so that marketing is considered an “investment in revenue and profitability.” This strategy may represent only an attitude or culture change, but it should definitely help in your efforts.

2. Design measurable programs
You’ve heard the cliché that you can’t manage what you can’t measure. It’s only a cliché because it expresses a universal truth. By committing only to measurable programs, you are laying the foundation for determining ROI. Fortunately, the best-performing programs today are digital media. And digital media by its nature is measurable. You can track impressions, clicks, inquiries, conversions, time on page, length of view, and more.

3. Choose measurements that matter
Focus on those measurements that can give you valuable insight leading to decisions that will improve your marketing program. Here are some measurements that matter:

The three V’s: Volume, Value, and Velocity. Volume is the count of leads or deals delivered by a marketing program. Value is how much that lead is worth; a program might not deliver a high volume of leads, but can still be a strong program because those leads produce a higher amount of sales. Velocity considers how fast a lead converts to a sale.
Cost per inquiry. Measure, but beware of deceptive results. For example, a program may have a high cost per inquiry but deliver highly qualified prospects and more sales. On the other hand, a program that delivers a low cost per inquiry might look good but not result in sales.
Brand awareness. Brand awareness is the fuel that powers other marketing programs and can help prospects accelerate through their buy cycle because they are familiar (and presumably comfortable) with your company and its reputation. Good measurements of brand awareness include how much of your target audience you get in front of, the frequency of being in front of them, and cost per branding tactic.

4. Meet the needs of financially-focused executives
Many of the metrics that marketers track—impressions, clicks, video views, engagement opportunities, and so on—may not interest financially-focused C-level executives. Their interest is in revenue, growth, and net contribution. If you need to demonstrate ROI to an executive team, you should think in terms of financial outcomes, which are the most challenging to measure in marketing.

If a sale occurs quickly after initial contact, or if you are using only a limited number of marketing channels, it may be apparent what program generated the engagement opportunity that led to the sale, making financial ROI easier to measure. But it’s not always this easy. The industrial buy cycle can be long and complex, involve multiple decision makers, and include many marketing touch points. So when the sale finally occurs, which marketing program(s) get the credit? Most likely, all of the touch points contributed to the sale.

Some financial-based measurement strategies include assigning all credit for a sale to the first, or last, touch point. This approach is an easy one to take, but also serious flaws. It can make otherwise effective marketing programs that helped contribute to the sale look bad, or weak marketing programs that may have been the first or last touch look better than they are. Another approach is to track all touch points for a customer and assign them a weight, then calculate a percentage contribution to each touch point.

5. Demonstrate ROI for early stages of buy cycle
Although many customers don’t initiate contact with a vendor until later in their buy cycle, you can still demonstrate ROI of marketing programs that supports customers in the earlier buy cycle stages.

For example, web page views, clicks, content downloads, video views, webinar attendance, and mentions or shares on social media can all be tracked and tied to your marketing efforts. These important metrics measure customer awareness, interest, and engagement with your brand, products, and services. If you perform well in these measurements and show improvement over time, then you can reasonably assume your marketing is helping customers through their early stage buy cycle, and you are increasing opportunities to be on their list in later consideration and purchase stages.

6. Assign responsibility to ensure success
A person or a team should be assigned responsibility for measuring ROI. This includes tracking contacts and inquiries through the marketing and sales funnel, knowing the status of any contact or inquiry at any given time, and tracking all marketing touch points for any given customer or prospect. This is critical information as it is the only way you accurately measure the quality of your engagement opportunities, effectiveness of marketing programs, and the return you achieve.

7. Make decisions to drive improvements
Don’t just measure something because you can. Measure only what you can act upon to improve the performance of your marketing program. Each measurement should help you expand your understanding of how to make the program better and align it with your company’s strategic objectives. With every measurement, always ask: Why am I tracking this? What decisions will I be able to make? How will this help our program improve?

This post on measuring ROI was partially excerpted from “Taking a Strategic Approach to Digital Media.” This complimentary white paper also details ways to develop an effective digital media strategy and create a budget for digital marketing, as well as how to solve the challenge of measuring marketing ROI in this digital era. Download your copy today.

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November 18, 2013

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Marketing Planning for 2014: 6 Ways to Evaluate Your Media Choices

It’s time to take off the gloves and get tough with your 2014 marketing planning. That means taking a hard look at your media choices and drilling down to find out what really works and what doesn’t. Last month, in Part One of this annual two-part series, we posed six questions you should ask about your marketing efforts. You can access the article here. This month, we give you six criteria to evaluate your media choices to help you choose the right channels to meet your goals and objectives.

You have many choices about where to spend your marketing dollars. Digital channels. Traditional channels. Some combination of the two. It almost makes you long for the days of being limited to trade publications and printed directories. However, those channels have reached their twilight years.

Today industrial professionals are online looking to discover products, services, and suppliers. In a recent IHS GlobalSpec survey, 81 percent of engineering, technical and industrial professionals reported spending three or more hours a week on the Internet for work-related purposes, with more than 31 percent indicating the spend nine or more hours a week online.

But before you allocate your marketing budget for 2014, hold each of your media choices up to the light of these six criteria:

1. Reach. At its foundation, effective marketing is about reaching as many of your target audience as you can: long reach, right people, right time. Do you know how many people you’re reaching with your marketing programs? Are they the people who will specify, recommend, and purchase your products and services? Also, consider this often overlooked question: do you reach your target audience at the right time, when they are actively looking for products and services?

More than 70 percent of engineers use the Internet to obtain product specifications, and more than 80 percent are online to find components, equipment, services, and suppliers. Online catalogs and searchable databases of datasheets and product pricing and availability, like Datasheets360.com, help you effectively reach active searchers.

2. Frequency. It’s the digital era. It’s a global economy. Who knows when engineers might engage in a quest to discover products and suppliers? The answer is anytime, all the time. Which means your target audience must be able to find you 24/7. Channels that offer continuous frequency include your company website, search engines, and online catalogs. Compare that to print directories that are typically published once a year or an annual tradeshow.

3. Timing. Don’t underestimate the importance of timing in your marketing programs. Timing is about making a connection with your prospects when they are proactively seeking products and services. In other words, hooking them when they’re hungry. There are many good channels for connecting with active searchers, including your company website, online catalogs, webinars, and online events. Print catalogs and print directories will help you reach active searchers, but you’ll miss out on reach, frequency, and the ability to measure ROI.

4. Return. ROI can be complex to measure, but it’s often smart to start by answering a simple question: For the marketing dollars you spend, what kind of return to you get in terms of brand awareness and engagement opportunities? For example, programs such as webinars tend to have high return because prospects have proactively registered for the event, which already indicates their interest. Inquiries on your website from existing customers also offer high return; it’s lower for new customers. Searchable online catalogs tend to deliver good engagement opportunities because only your target audience would be using them, as opposed to general search engines.

5. Contacts and Inquiries. Do your marketing channels deliver contacts and inquiries in real time or is there a lag between prospects expressing interest and you finding out about it, leading to stale data? Also, do you get contact information for individuals and do you know their expressed area of interest? Work with media partners and choose channels that provide real time contact information containing useful data. This will get you that much closer to a qualified prospect from the beginning.

6. Branding. Branding and awareness are key components in the marketing equation. A highly visible brand helps build trust with customers and can reduce the time between inquiry and closing a sale because your brand is already recognized by prospects. Your company website, along with webinars and other online events and e-newsletter advertisements, offer solid branding opportunities.

A final recommendation as you prepare for 2014: Get a complimentary copy of the IHS GlobalSpec 2014 Industrial Marketing Planning Kit. This valuable and trusted resource will help you make the most of your marketing budget and choose the optimal channels to reach your goals and objectives. Download your copy today.

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August 12, 2013

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3 Tips for Industrial Marketers to Handle Rapid Change

The rate of change is fast and furious in marketing these days, making for both exciting and challenging times for industrial marketing professionals. Engineers and technical professionals use more resources than ever before to find information, products, services and suppliers—from general search engines and suppliers websites to online catalogs, directories, events, social media and more. Which means as an industrial marketer you must be able to evaluate and manage the effectiveness of these new channels. And it seems that more new marketing channels are popping up all the time.

Today’s marketers also need a broader skillset. They must be both strategists and tacticians. They need to integrate and manage multi-channel marketing campaigns. They need to be analysts to evaluate opportunities, interpret reports and calculate marketing ROI. They need technology skills to understand how to use mobile and social and to assess new tools such as marketing automation.

On top of this, marketers may be asked to manage this rapid change without an increase in budget or resources.

It’s a lot to handle. A recent survey conducted by Forrester and the Business Marketing Association found that 34 percent of marketers feel overwhelmed by the change occurring in B2B marketing and 21 percent feel the skills they were hired for are now obsolete.

You’re not alone if you’re feeling these pressures as a marketer. And the good news is you can do something to alleviate the pressure and better handle the rapid pace of change. Here are three ideas to help you:

Collaborate with other internal teams and external experts.
There’s no reason for marketers to work on an island and do everything alone. Think about teaming up with people from IT to help streamline reporting or more efficiently manage your lead nurturing and scoring processes. Customer support reps are close to the customer and can provide useful feedback about your marketing efforts, strengths and weaknesses of products, and overall impressions of your brand. You can save a lot of time and effort if you work closely with the sales team to make sure everyone is on the same page in terms of roles and responsibilities for managing leads through the sales cycle.

External help is available too. Work with media partners to develop more integrated, multi-channel programs whose whole is greater than the sum of its parts in terms of reach, visibility and generating engagement opportunities. Also, seek out research and information to help guide your marketing decisions. IHS GlobalSpec publishes a helpful library of industry research and reports specifically designed to keep industrial marketers up-to-date on industry trends in the manufacturing sector.

Rethink your marketing strategy and reevaluate priorities.
Rapidly changing times require you to take a step back and assess your marketing situation. You may have new responsibilities and expectations now. For example, according to the IHS GlobalSpec report, “2013 Trends in Industrial Marketing,” measuring ROI is the biggest challenge industrial marketers face today. Ease this challenge by devoting marketing resources to programs where it’s easier to measure investment vs. return. Digital channels—which are most frequently used by your target audience—offer almost instant metrics in terms of impressions, clicks and conversions. Media partners should offer convenient and robust campaign reporting.

Marketers also say that customer acquisition is their primary marketing goal and that customer acquisition, customer retention and customer satisfaction are important measures of marketing success. Plan marketing strategies that focus on your customers.

Create efficiencies through technology.
Technology can help reduce many labor intensive processes in marketing, and as more technology tools and platforms become available to support marketing, IT and marketing departments are working closer together. Thirty-six percent of industrial companies now use a marketing automation tool, which can vastly increase efficiency in managing, integrating and tracking marketing campaigns. There are many affordable, cloud-based offerings available that don’t drain internal IT resources, but that your IT team can help you evaluate to make the right implementation decision. There are also tools that let you monitor social media networks for mentions of your company, brand and products. You should also consider a content management system (CMS) to manage your website. Again, there are many good choices on the market that your IT department can help you evaluate.

Change is inevitable, in marketing and all other aspects of work and life. Sometimes the change happens fast. Collaborate with others, evaluate your priorities, and use technology to help you keep pace and come out ahead.
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Industrial Marketing and Sales Marketing, General