In the 13 years since I co-founded Marketo, the way companies buy B2B products has changed a lot. Yet, the way most marketers (and their tools) operate hasn’t evolved nearly enough to keep up.
As a result, the B2B marketing that you know today is heading towards a shipwreck in 2020 and beyond. It’s time for marketers to adjust the sails.
In the first chapter of marketing technology (2000 – 2015) marketing departments became a strategic part of the revenue engine. As I like to say, Marketing evolved from being the department that throws parties and prints color brochures to becoming a real driver of pipeline and revenue.
In this era, Marketing began to own the top of the funnel, using marketing automation tools to send emails, capture and nurture leads, and pass them to Sales who, in turn, owned the deal close and post-sale growth. Marketing was the “owner” of email, controlling the keys to customer communication. This was exciting, and really helped Marketing build credibility and respect.
At many B2B firms today, Marketing is still focused on sending top-of-funnel emails, generating new business leads, and handing them to Sales like a baton pass — in fact, it’s what many teams are measured on. But as we will see, this model is looking increasingly outdated in the face of modern B2B buying.
Over the last few years, we’ve seen new trends that are forcing a fundamental rethink about our core B2B Marketing beliefs. Each of these would be enough to force change, but together, they represent a fundamental disruption to the marketing status quo:
Together, these trends are driving a fundamental redefinition of how Marketing and Sales work to create and win new business and drive account growth at scale.
If you think your job is to send emails and find leads for the sales team; wake up. The ground is shifting. Your role is changing.
Given these changes, ask yourself: What role will your Marketing play in the future?
Today, sales reps and SDRs are taking on a much larger role at the top of the funnel, due to a few factors:
That means Sales is working on the activities that used to “belong” to Marketing, such as sourcing email addresses, prospecting new leads, emailing prospects, and leveraging social media. In this new environment, Marketing has a new job. To be successful, they must influence and guide their revenue team on how to create relevance for each customer, not just execute campaigns.
“Marketing needs to act in a consultative role that really showcases the profession, coming to the table to say, ‘Hey, this is what we know our buyers prefer and here’s what I recommend we do with this account to meet the goals that you told me you have.’ ”
– Megan Heuer, VP Research, SiriusDecisons
Marketers, how you evolve to work with sellers is the most important factor in your success.
Your role is becoming less about pushing campaigns to leads, and more about creating meaningful interactions for different members of an account’s buying group — often in conjunction with Sales and SDRs. It’s about supporting sales cycles, accelerating deal velocity, and working more efficiently together with Sales.
In short; more integrated and more orchestrated.
It’s synchronized and simultaneous, not sequential.
Rather than a hand-off baton pass, great Marketing and Sales teams operate as a soccer team, working together to pass the ball back and forth down the field to create and win new business and drive account growth.
“The traditional model of linear deal progression, with a handoff from marketing to sales, won’t work for complex modern B2B buying.”– Brent Adamson, Distinguished Vice President, Advisory, Gartner
This is B2B marketing orchestration, an ongoing and coordinated process throughout the entire customer journey. To support this new go-to-market motion, Sales and Marketing must look at the same data (see our guide to ABM analytics) and proactively share insights relative to each account and engagement tactics. (Hint: ABM standups help!)
According to TOPO’s 2019 Account Based Benchmark report, the #1 indicator of account-based success is the coordination between marketing and sales. TOPO’s 2017 Marketing and Sales Development Orchestration research also shows organizations currently executing marketing-SDR orchestrated campaigns typically realize a 30-50% lift in ‘meetings set’ at target accounts, with some organizations reporting a 100% increase.
Marketing’s focus must shift away from just new business to thinking about all kinds of revenue; new business, expansion, even retention. Modern B2B marketers will focus on the entire account journey.
This is important because as much as 80% of the revenue companies earn is generated after the initial sale. And The Pacific Crest SaaS Survey (now KeyBank SaaS Survey) found that the fastest-growing companies get disproportionately more of their new annual contract value (ACV) from upsells.
There are four ways marketers can change to support this new revenue process:
By the way, this is not just relevant for SaaS firms. Telecom, healthcare, distribution, banking, and large capital businesses such as jet engines are all thinking about recurring revenue past the initial sale.
It’s not enough to market to either leads or accounts. While traditional marketing automation is built around the lead, not the account, buyers are part of a committee, and marketers must be able to target them in the context of their broader account journey. This is a core principle behind the rise of account-based marketing.
However, at the same time, marketing is almost always directed at a person. You send a package to a person; you invite a person to an event; you have a meeting with a person. That’s why marketers need to address the needs of both accounts and people, taking into account the multiple dimensions of a deal including persona, account, behavioral history, intent, journey stage, and more.
No marketing channel alone is effective enough to get your message through. According to InfoTrends, email-only campaigns have a 7.9% response rate, while account-based advertising has its own limitations:
Instead of single-channel engagement, savvy marketers are finding success building more orchestrated plays across channels that combine both digital and non-digital tactics in a seamless way. For example, following up on direct mail with an SDR call, or an event invitation with a personal follow-up from an executive.
“Marketing orchestration is an approach to marketing that focuses not on delivering standalone campaigns, but instead on optimizing a set of related cross-channel interactions that, when added together, make up an individualized customer experience.”
– Forrester Consulting
The nature of B2B deals are long and complex. The way we measure the impact of Sales and Marketing needs to adjust in three ways to this reality:
“You can’t wait a year to see results [in ABM].” – Megan Heuer, VP Research, SiriusDecisons
B2B teams must be able to answer the question: Are the right people at the right accounts spending time with our company, and is that engagement going up over time? We need to start focusing on how we’re creating and deepening relationships, and how that engagement increases over time.
OK, so you understand that buying has changed and that you must adapt to the new realities of how marketing and sales need to work together. You want to work as a team to generate pipeline and revenue at every stage of the customer journey. You want to focus on quality, not just quantity. You want to focus on accounts and people. But you can’t. Your existing marketing technology is holding you back. Trust me, I should know — I was instrumental in building them.
The current marketing platforms were designed with a specific marketing process in mind: Marketing generates leads for new business, nurtures them, and passes them to Sales when they’re ready. And they are very good at this process. But they were not built to handle what’s needed today: navigating across accounts, people and buying centers; expanding existing customer relationships by cross-selling additional products; and supporting a dynamic, synchronized process where marketing and sales work as a team.
Put simply, you won’t be able to deliver on B2B Marketing today and for the next decade using technology that was built more than a decade ago. Trying to do so results in the pains many of you are so familiar with today: struggling to create enough pipeline, poor marketing and sales alignment, difficulty moving upmarket, slugging expansion revenue.
Current marketing technology prevents teams from embracing true B2B, account-based growth due to three major gaps:
Adjusting your Sales and Marketing for this new era of B2B, while truly getting these two teams to work together, is the single most important, impactful thing you can do to help your company grow. When Sales and Marketing teams are aligned, their companies see an average of 19% faster revenue growth and 15% higher profitability.
This is exactly why I founded Engagio. Our goal is to make the existing martech stack better with B2B marketing engagement software that delivers the modern capabilities you need to help Marketing and Sales to work as a team at every stage of the account journey.
With the right B2B marketing engagement solution, you can:
I know all this sounds hard. But you know what else was hard? Back in 2008 when people were adopting marketing automation for the first time, they thought that was hard too. But it became essential for success over the last decade, just as making these changes today will be essential for the next decade.
Fortunately, there are small (but impactful) steps you can take to get started.
You can implement Lead-to-Account Matching (L2A) technology and create a data foundation so Marketing and Sales are looking at the same data. You can start sharing key account insights with Sales, letting them know about things such as engagement from key executives at target accounts, new web visits from accounts they care about, when cold accounts heat back up, or when any of their open opportunities stall out. And you can orchestrate simple plays such as sending a direct mail package, activating LinkedIn ads, and then following up with an SDR outreach.
The benefits of getting started are obvious:
When I co-founded Marketo over a decade years ago, B2B marketing teams needed a path to earn a strategic role at the revenue table. That era’s tools gave them a way to own the communication with the customer. But, today, things are changing yet again, and marketers need to change with it to be seen as a valuable, strategic part of a company’s growth plan.
After all, you don’t get multiple shots at building, and maintaining, credibility with Sales and the rest of the organization.
Doing more of the same is… well, insanity.
Most marketers today find themselves in a continual struggle to create enough pipeline. It’s a top challenge at a majority of B2B organizations. The traditional model of digital lead generation followed by a linear handoff from marketing to sales no longer generates enough opportunities, or does enough to move accounts through the pipeline to close and beyond. As a result, many companies are missing their pipeline and revenue goals.
But, their solution is often, simply, to do more of the same. We all know that the definition of insanity is doing the same things over and over again while expecting a different result. Running more ads, crafting more campaigns, and sending more emails is not the antidote to fixing what’s broken.
That’s like trying to take a voyage on a shipwreck.
As we look ahead to the next decade, I’m more confident than ever that it’s time for the next change in B2B — we need different processes, skills, and technology to win. That’s why I founded Engagio, in order to address a NEW dynamic between marketing and sales who sell to target accounts.
It’s time to change the conversation around B2B marketing. The future of B2B is dependent on our ability as marketers to work with sales as a team at every stage of the account journey. Will you adapt?