Reputation to Revenue

More evidence that give-to-get is the key to success

It's pretty much a cliche to say that marketing today is all about give-to-get. You provide customers and prospects with new ideas, new experiences, and new connections in order to earn their attention. You keep at it until they open up to a conversation that, over time, can lead toward an actual sales opportunity.

In B2B, though, I'm constantly surprised at how often marketers pay little more than lip service to this essential idea. 

You see it in companies that persist in spending more on promotion and pitch than on interaction and collaboration. 

You see it in the cutbacks to customer research and insight (how can you "give" something of value to customers if you don't even pay attention to what they're facing?). 

And you see it when marketers hand off the first hint of a "lead" (e.g., a name from a trade show or white paper download) to the inside or outsourced sales team to begin "qualifying" opportunities.

A new survey from B2B agency Doremus and the Financial Times provides yet more evidence that the old ways are of little use. As noted by Doremus president Howard Sherman:

Recently, Doremus and the Financial Times collaborated on a survey called Decision Dynamics in which 470 worldwide senior level executives were asked: Which supplier is most likely to get work from you in tough times as compared to prosperous times?

Interestingly the top answer was not the cheapest or the supplier with the best/longest relationship, or even the one who could prove ROI. The answer was the supplier most proactive in helping you [emphasis in original].

Sherman goes on to list some types of help that marketing agencies in particular might be able to provide, including being more nimble, strengthening internal relationships, and rebuilding trust with investors and customers.

For me, the key point here is that give-to-get is more important than ever. The executives in the survey are saying "help me." 

Your customers need help, they want it from you (so long as you have something valuable to offer), but they're typically so stressed out by the daily grind that they barely have time to ask. And they certainly have little tolerance for promotional marketing. As such, the idea of "proactive help" should be front and center.

Practically speaking, this means:

• Investing more in understanding your customer's businesses and challenges; you can never have too much customer insight
• Putting more energy into developing real thought leadership in the market that demonstrates truly news ways to help customers solve problems
• Reaching out to your best customers with offers to provide legitimately useful briefings and demos (i.e., not sales pitches)
• Investing in social media skills, tools, and initiatives to help share the wealth of knowledge and experience that lies throughout your organization.

The concept seems easy. Is the execution so hard?

Photo: sekimura

Reengineering the white paper, part 1

Several months ago, I began talking with colleagues Bob Buday and Tim Parker about "reengineering the white paper." Our basic idea was that, although white papers have flooded the Web for years, and more and more companies are investing in them to help demonstrate expertise and thought leadership, the reality is that most of them are pretty bad. They're unoriginal, boring, and overly promotional, which pretty much rules out having the intended impact of generating interest and leads.

Despite their common failings, however, we're still firm believers that white papers can be one of the most effective tools in the marketing toolbox...if they are developed and marketed the right way.

Having worked on and marketed countless white papers ourselves, we think we know the right way. 

The first part of our three-part series, "Developing a Point of View," explores the aspect of white paper production that is most often lacking: the creation of a powerful, credible, and novel argument about how to address an important business challenge. Subsequent parts will focus on marketing white papers and overcoming the typical organizational obstacles in creating and marketing them effectively.

The first and biggest mistake companies make, we argue, is treating white papers primarily as writing assignments. Instead, they should be viewed as projects to create strong and distinct points of view -- which subsequently can be written up in a white paper. Good writing is obviously important, but the bulk of the work in building an argument, gathering evidence, creating new frameworks and so on should precede the writing.

I don't want to repeat the whole article here, but I do hope you'll give it a look and let me know what you think. Given the amount of time and money spent on white papers these days, the impact of a more effective way to produce them can be substantial indeed. 

Photo by kevindooley. 

Winning with thought leadership: Six lessons from IBM and Deloitte

B2B marketers know they need to invest in thought leadership, and many have indeed invested more during the last few years. Making the most of these investments, however, rests on having the right answers to a set of difficult questions:

• What topics should we highlight?
• How should we produce and package thought leadership content?
• How should we promote it?
• How can we measure success?

Absent good answers, thought leadership initiatives quickly fall prey to more traditional priorities around lead generation and sale support. The irony, of course, is that good thought leadership has increasingly become a prerequisite to making lead generation and sales support actually work with high value deals. Absent something interesting to talk about related to core customer issues, would-be buyers pay little attention to straight-on sales pitches.

ITSMA's announcement last week of the winners of its annual Marketing Excellence Awards featured two great examples of thought leadership marketing from IBM and Deloitte. Although few companies have committed to thought leadership investment at anywhere near the level of IBM and Deloitte, the basic lessons from their winning initiatives are totally applicable to any B2B firm that needs thought leadership. 

Full disclosure: I served as a judge for this year's awards program and used to run the whole program when I worked for ITSMA. And, yes, I cast my votes for both winning initiatives, so was pleased that the other judges agreed.

The Global CEO Study

IBM's biennial Global CEO Study is a massive undertaking focused on digging deep into top CEO concerns around the world. The 2008 edition, "The Enterprise of the Future," involved face-to-face interviews with 1,130 CEOs and public sector leaders from large organizations in some 40 countries. Released publicly in May 2008, the core report highlighted five strategic attributes that CEOs are trying to build into their organizations:

• Hungry for change
• Innovative beyond customer imagination
• Globally integrated
• Disruptive by nature
• Genuine, not just generous

Filled with data and analysis by industry, region, and more, the IBM report provides a wonderfully insightful look at how CEOs are dealing with the biggest questions of business strategy, culture, and organization.

The Risk Intelligent Enterprise

Deloitte's Risk Intelligent Enterprise program also addresses some meaty concerns: how companies should think about risk at the most strategic level. Through a series of white papers and other thought leadership publications and activities, Deloitte has taken a strong stand on what "risk intelligence" actually means, how it relates to business strategy, and how to operationalize it across the organization in even the most complex environments.

Perhaps most important, the Deloitte program highlights the idea that risk management is not just about avoiding overly risky behavior, but also about taking intelligent risks in a properly managed way to support growth and change.

Based on ongoing research as well as Deloitte's extensive experience working on risk management with companies of all stripes, the Risk Intelligent Enterprise program helps companies understand one of today's most critical management issues in a thoughtful, creative, and responsible way.

Lessons Learned

Stepping back from the specifics of these two initiatives, I see six general lessons for thought leadership marketers at any level:

1. Put Customers First. It sounds obvious to say that thought leadership marketing should focus on what your customers really care about, but far too many marketers take a product- or solution-first approach and try to fit some larger issue neatly around their offering. Buyers don't care about your offerings by themselves; they have their own problems to worry about. Engage them where they live. IBM is trying to build relationships with CEOs, so they research and talk about what other CEOs are doing. Deloitte works especially closely with Boards of Directors, CFOs, and other C-level executives; it's hard to think of a C-suite issue more pressing these days than risk management. What do your customers and prospects really are about?
2. Do the Research. Thought leadership without real research is just opinion, and opinions are a dime a dozen. Show buyers serious research, though, and they're much more likely to pay attention. You might not be able to interview 1,130 CEOs around the world, but you can survey and interview your customers and prospects, produce serious case studies (not puff piece "success stories"), and comb the literature and online conversation to produce new insights.
3. Say Something New. Thought leadership without a differentiated point of view is just an echo of conventional wisdom. Why should customers listen to your version then they've already heard it before -- or if you're only telling them something they already know. Smart customers want to be challenged. If you're not sparking at least some disagreement and debate, you probably haven't said anything new. None of IBM's five attributes are themselves shockingly new but the synthesis suggests and aggressive and innovative approach that goes well beyond conventional thinking. Deloitte's focus on the upside as well as the downside of risk clearly stands apart from the post-Wall Street collapse mentality of compliance first, last, and always.
4. Build a Pervasive Presence. Long gone are the days when thought leadership marketing meant publishing a white paper, research report, or journal article and then moving on to the next project. Media fragmentation, information overload, and the power of social media make it critical that thought leadership marketers put substantial energy into getting the word out across a broad range of media and activities. IBM's 360 degree campaign for the CEO study included traditional activities (email, Web, direct mail, advertising, press and analyst briefings, sales enablement, video, etc.) as well as a number of newer approaches (blogs, podcasts, online innovation jams, and branded content). IBM also produced 15 "flavors" of the main report for different industries and C-suite positions. Deloitte has similarly tapped a wide variety of media and activities to engage clients, prospects, and market influencers. For thought leadership marketing today, think multi-media, social media, and complementary online and offline engagement to build a strong presence wherever your stakeholders already spend their time.
5. Stick with It. IBM's CEO study is a two year project, and the 2008 version is IBM's third such study. To maximize marketing impact, IBM organizes a "teaser phase" (outreach to build awareness before the formal launch), a "reveal phase" (a multi-faceted public launch to build buzz internally and externally), and a "sustain phase" (ongoing engagement to dig more deeply into the issues with customers and others). Deloitte launched the Risk Intelligent Enterprise effort in 2006 and has continued to explore the issues, refine the point of view, publish, and engage. The point is to pick a core issue for your customers and stick with it. Thought leadership takes time. It's better to pick one or two issues and work them hard for several years than to flit from one issue to the next in a more superficial way.
6. Confirm the metrics. Far from an airy initiative, thought leadership marketing can and should focus on core metrics essential to business development and growth. Objectives for the IBM initiative revolved around relationship building with CEOs, corporate visibility and interest, ongoing engagement with key contacts, and sales leads. Deloitte takes a similar approach, focusing on competitive differentiation, influencer relations, client connections, and business development support. Setting and gaining organizational agreement on clear marketing and business development objectives provides the grounding and accountability that marketers need to justify the necessary investments.

Serious thought leadership marketing is not easy, but taking these six lessons to heart will go a long way toward success. At least that's my opinion! What do you think?

Rite Aid impresses with active customer service

Little things really do add up.

Like many people, I have several prescriptions with Rite Aid Pharmacy. Refills are easy; you just call the number on the bottle a few days before a prescription runs out, tap your way through the automated voice prompts, and pick it up the next day. Nothing earth-shattering, but it's convenient and a good, simple use of Interactive Voice Response (IVR) technology.

Today, though, I caught the next wave. Coming home and finding a voicemail on my home phone, I listened to an automated message from Rite Aid asking me to call an 800 number about my prescription. When I did, it took me through a several minute IVR session which proceeded by reminding me that my prescription was about to run out, asking me if I wanted to refill it, and then asking if I wanted to sign up for a free service that would automatically refill my prescriptions every month and let me know when they were ready for pickup. No more effort on my part, and I get to save an extra few minutes every month. 

Again, it's nothing earth-shattering. The technology has been around for a while. But how many companies are reaching out and touching their customers in a a true service-oriented fashion, not to sell new products or services but simply to improve the customer experience?  

Yes, the better companies bend over backwards to respond to problems (although most companies still don't). And yes, it's obvious that Rite Aid is trying to sell me more stuff, prescriptions and otherwise. Most likely they will, too. So it's definitely good marketing. 

What's different here is the basic approach: Service matters as much or more than the products themselves, promotion is less important than service delivery, and good things come to those who continually improve the customer experience.

What free services are you adding or changing to improve customer experience and build customer loyalty?

Photo credit: Seattle Municipal Archives

The power of video: Outsourcing reality show illuminates the buying process

About a month ago, the good folks at the Outsourcing Institute asked me to contribute some  "lessons" for services marketers based on their web-based reality show, The Transaction. No cash involved, but it sounded like an quick PR hit for me while helping out a great organization. 

When I checked out the series, however, I realized this was a much bigger deal. Endless "experts" (including, at times, me!) pontificate about what companies need to do to market and sell high-stakes services. Some of the advice is even good. But capturing the real feel for such a complex process is extremely difficult.

The Transaction documents on video the real-life effort of a buyer team from Kodak in its effort to find and hire an outside firm to handle all of Kodak's recruitment, hiring, and on-boarding of new employees. A marketing and sales reality show, no less.

The brainchild of Outsourcing Institute CEO Frank Casale, the video series (each episode is under 15 minutes) documents critical moments throughout the buying process, from initial conception to signing the deal. 

Kodak begins with a list of some 50 providers to consider, narrows the list through research and due diligence, creates a finalist pool, and moves to a final decision (spoiler alert: although the final episode is not yet posted, the actual deal went down last year when Kodak signed a three-year contract with HR outsourcer Pinstripe). 

Episode 7, the one for which I provided some lessons learned, shows the team debriefing its recent site visits to two finalist candidates. 

Overall, it's a wonderful way to provide real insight into the buying process, something that all marketers struggle to understand -- and that the vast majority of case studies, white papers, conference presentations and the like do little to illuminate. 

And make no mistake, it's a buying process, not a sales process. The Kodak team is anxious to decide (the whole process in this case was less than two months), but they are firmly in control. Marketers (and sales people) would do well to keep this basic reality at the forefront of their thinking.

So kudos to the Outsourcing Institute for creating the series and to Kodak for being brave enough to allow their buying team to work on camera. A definite thumbs up from this satisfied viewer.

Blog as hub, site as spoke

David Berkowitz (@dberkowitz) from the digital marketing agency 360i had a nice article today about building your brand with social media

He used the example of launching the agency's new Social Marketing Playbook earlier this month (which is well worth a look). The launch was a success (10,000 downloads in the first few days), and David stresses the essential back story--the hard work of the last few years building the agency's social presence through blogging, Facebook, Twitter, SlideShare, Scribd, LinkedIn, Flickr, and so on. 

It's a good story, and a great reminder that social media marketing is about ongoing and integrated presence, not individual campaigns or discrete tool-based initiatives.

But a single line--and phrase--stuck with me most: 

There was also a clear architecture for it [our social media efforts], with the blog as a hub, and all of the spokes, including our corporate site, relating coherently to the hub and to each other.

"With the blog as a hub..."

For readers at small companies or consulting on their own, the idea of the blog as hub is nothing special. You want to demonstrate expertise, regularly refresh content to drive better search performance, and minimize site maintenance workload. A blog makes perfect sense.

What about larger companies? The logic certainly remains the same. Larger companies also want to demonstrate expertise, maximize search, and minimize needless site maintenance. But big companies are too complicated to boil it all down to a blog, right? What about all those offerings, success stories, executive bios, and the rest of the content that fills endless pages on large corporate sites?

Well, maybe. But does "needing" a more traditional site to serve as a corporate archive mean it has sit at the center of marketing?

Most of the people you're trying to connect with care a lot more about your latest thinking than they do about your carefully crafted but static product, service, and solution pages. So why not push the corporate site off to the side and put the blog front and center? 

It's a radical notion for a large company, but perhaps it's just the sort of thinking that larger companies need to make a more serious commitment not just to social media, but also to the broader ideas of marketing as education, marketing as service, and marketing as community (three of my current mantras). 

Web sites can certainly support all of these ideas, and companies are livening up their sites with blogs, video feeds, and community portals, I wonder, though, if the more radical step is still necessary to make the transformation real, to fully jettison the old ideas of marketing as broadcast, promotion, and persuasion. 

What do you think?

Photo credit: poppofatticus

Words and meaning: The power of alignment

Suzanne Lowe from Expertise Marketing has a great piece in her June newsletter on the importance of developing a common lexicon for marketing and business development in professional service firms. 

Pointing to common misunderstandings between business leaders and partners, on the one hand, and marketers and business developers on the other, about such basic terms as "return on investment," Lowe suggests that PS firms would be well served by investing some time in building common understanding. 

Most important, she says, is defining marketing and business development "up" to a more expansive and strategic view: 

For example, why should the term "marketing only connote the limited activities of, let's say, "building awareness," or "sales support?" Shouldn't the term "marketing be understood to also include targeting and segmentation? Pricing? Client loyalty? In many professional firms, marketing does not mean these latter terms, only the former.

To which I can only say, Amen.

It's not just professional service firms, of course. Many of the technology firms I work with suffer from the same problems: confusion over key terms and meanings, and a general defining "down" of what marketing is all about. And now that we're all trying to sort out the tangled terms of Web 2.0/social media/social networking/social web/marketing 2.0, the language problem is only getting worse.

But all is not lost, and Lowe is right to suggest that lexiconical alignment (if there is such a phrase!) can be a powerful force. 

Just consider the confusion around the word "solutions." If marketing is often misunderstood, the "S" word is subject to near-universal confusion. For companies that have taken the time to work through a solutions lexicon and taxonomy, however, the benefits have been substantial. 

My old company ITSMA has been in the forefront of this work in the IT sector, and my colleagues and I at Solutions Insights have continued to work with clients in similar fashion. In a great many cases, progress on the real work of bringing new offerings to market, sharpening marketing messaging to emphasize strategic business problems rather than product features and functions, and reorienting sales forces to sell integrated business "solutions" could only happen after all the relevant stakeholders agreed on a common language.

As it has been with solutions, so it can be with "marketing." In Lowe's own words, "New understandings of terms will foster practitioners' ability to grow the 'right' revenues, gain meaningful market share, and optimally serve clients."

What do you think?

Photo credit: greebile

The hard questions about social media for B2B solutions providers

The skepticism about social media for B2B is pretty much gone by now. It's still pretty new for a great many companies, but the combination of legitimate success stories, overwhelming hype, and the desperate search for new ways to reach customers when the old ways work less and less has convinced all but the most recalcitrant among us that social media is at least worth a try.

But how to proceed is far from clear, especially for companies selling high-value solutions that typically require very long sales cycles with multiple influencers and decision makers in every transaction. Even for companies with a fair amount of social media experience, figuring out specifically where and how to invest in social media is a huge challenge. 

It's all well and good to dabble in blogging, Twitter, and YouTube, but creating a strategic, focused, and sustainable social media program requires answering some pretty tough questions, such as:

• Who are we really trying to reach? Do we have a clear sense of which customers, prospects, influencers, and/or other stakeholders are active in social networks, or could be -- and why it's important to reach them this way?
• How do we get their attention? Attention is the scarcest commodity, especially at the executive level where many solutions marketers are determined to engage. Do we really understand what social programs or activities or applications are most likely to succeed with the people we are trying to reach?
• Do we have the skills? Lots of people talk the social media talk, but can they really deliver? Executing with social media requires a diverse set of skills, including content development, recruitment, conversation, facilitation, analysis, and, most of all, LISTENING. Who in the organization is going to do the heavy lifting?
• How should we organize our efforts? Who should "own" social media is a big conversation topic these days, with claims coming from varying departments and types of agencies. Some suggest that the very idea of ownership goes against the democratic philosophy of social media. Do we have a solid strategy for planning, budgeting, and managing our efforts in a coordinated way? Are we confident that we're not taking too narrow or broad a view of how this might work best?
• Can we sustain the effort? Social media is generally a long term proposition; initiatives may take 6-12 months or more to gain real momentum even if they are well designed and managed. Do we have the staying power to stick with it month after month after month even if the early returns are slight?
• How do we capture real value and return on investment? How will we measure success? Do we have clearly defined and realistic objectives and metrics? How will we make sure the benefits reach across the organization?
• How can we minimize risk? Among the first question many executives ask about social media are: What if people say negative things about our company? What if one of our employees shares something proprietary or just stupid or embarrassing about our company? The reality is that social media does bring risk, but the risk is there whether we engage actively or not. How can we manage and support our activities in ways that lessen the risk and increase the reward?
• Are we culturally ready? A question that some companies don't ask is "are we really ready to open the doors and join the conversation?" The biggest challenge with social media is literally being social. It's having the mindset and the culture and the confidence to engage in open conversation, trust your colleagues and staff to do the same, accept criticism publicly, and give up the old notions of controlling the message and marketing to an audience.  

A great danger today is that, in their haste to "catch up," many companies are all of a sudden taking the social media plunge without addressing many of these essential questions. In my own recent discussions with clients and prospects, I've had a lot of questions about tools and tactics (e.g., "What should we be doing with Twitter or Facebook or online video), but less about strategy, objectives, organization, and culture.

Experimentation is fine, and even necessary given the constant innovation in social tools and channels, but taking social media requires a well-developed strategy. This seems almost too obvious to state; unfortunately, though, the hype around social media appears to have caused a lot of otherwise smart marketers to temporarily forget the basics of Marketing 101. Social media may well revolutionize the practice of marketing, but the will core objectives remain the same: serving customers, finding avenues for growth, building reputation, and supporting sales.

I'm not sure it's possible to define "best practice" for solutions marketing in such a new and fast-changing arena as social media, but answering the hard questions above will certainly go a long way toward developing a strategy with a good chance of success.

To help answer some of the hard questions, my partners and I at Solutions Insights have just published a short report, Socializing Solutions: Tapping Social Media for Solutions Success (PDF). The report includes a set of guidelines on where to focus your efforts and a basic, four-phase approach to building an integrated, sustainable program. Please check it out and pass it along. I'd love to know what you think.

Photo credit: OCLS

YouTube as corporate home page?

BooneOakley, a North-Carolina based agency, has gotten a lot of attention in the last few days by essentially shifting its corporate site to YouTube. Click on Booneoakley.com and you get to a "this is our agency" video on YouTube, complete with story of a struggling marketing director going down in flames (actually, a bloody ax) because he chose some other boring conglomerate firm instead of the oh-so-creative BooneOakley.

Embedded links in the main video connect viewers to additional company information, including a cute video thanking the Obama family for naming its new dog Bo after the company's initials.

The main video has received more than 220,000 views in its first 10 days, quite impressive for a small local firm.

It's not the first agency effort to throw out the traditional web page in favor of a more social look. Modernista! made a splash a few months back by directing visitors to its entries and feeds on various social media sites, including Wikepedia, Facebook, Delicious, and NetVibes. And any number of small firms use their blog as their main site.

The point here is not to surrender your traditional Website--although that may well be worth considering. It is rather to take more seriously the new possibilities of social media, to think differently about what matters, and to get past the inertia of last year's plan and the types of activities you've "always" done.

BtoB came out with a new marketing survey on the 2010 outlook yesterday. It was nice to see that a majority of B2B marketers expect to increase their budgets next year, but the more stunning finding to me was that majorities of marketers expect to "stay the same" in many budget categories, including print, broadcast, television, radio, telemarketing, and outdoor. Just a shade under 50 percent of the almost 500 respondents also expect to keep spending on events and direct mail the same. Surely the world has changed more than that! 

What do you think?

Oh, the pain of it all

Watch and whine (at least if you're a consultant, at an agency, or otherwise actually trying to wrangle real money from clients these days).

Thanks to Todd Defren for the link.