Showing posts with label b2b marketing strategy. Show all posts
Showing posts with label b2b marketing strategy. Show all posts

0 The Marketing Funnel is Dead: Here's What Will Replace It

Okay, I freely admit that headlines like “the marketing funnel is dead” are a cheap trick to attract attention.
But I swear I came by this one honestly. Too tired to do any serious work on a recent plane flight, I scanned a random white paper that argued the traditional idea of a funnel didn’t capture the need to treat customers individually as they move towards a purchase. So far my head was nodding in agreement plus maybe a little drowsiness. But then came the punch line: instead of a funnel, marketers should think of managing each customer’s progress as a process, which is best represented – wait for it – as an escalator.

Now I was fully awake, and not in a good way. How is an escalator any less linear than a funnel? Have I missed some crazy new form of multi-path escalator networks? Maybe so: I don’t get out much, and who knows what these kids today are up to? But assuming that’s the not case – and I do after all read Twitter – the escalator analogy is no better than a funnel at illustrating today’s situation.

Nor, to be a bit more serious, is the concept of managing buyers as a process. It’s true that a process can have branches (although not the escalator-like linear process this paper described). But a process is still something the marketer controls. Whereas, the dominant fact of marketing today is precisely that marketers don’t have control: the buyer does. It’s the buyer who decides at every step what she’ll do next.

The picture that comes to my own mind is a tornado: a totally uncontrollable, unpredictable force that leaps across the landscape setting down wherever it wants. By this analogy, the best a marketer can do is to build storm-proof structures that will function successfully no matter what buyer does. I don’t think that’s quite the right image – after all, buyers are not destructive – but it does convey the frightening powerlessness of marketers in today’s world.

The better analogy is probably a maze. Marketers can build an environment that defines the options available to buyers, even though the buyers still make their own decisions about the path they take. The maze also shows how buyers can follow different paths and still end up at the goal, can go in circles indefinitely, and can exit without reaching the goal. It also implies correctly that the marketer’s skill determines quality and effectiveness of the buyer experience, just as the maze designer’s skill determines how much fun it is for visitors. If you really want to push the analogy, you can argue that we’re talking here about a corn maze – because ultimately customers can break out of the predefined paths if they want to.

I guess we’re all lucky that my flight didn’t last much longer, since I was beginning to think about how corn needs water (funding?) and if there’s a drought the ears of corn will have small kernels (customer value?). A more useful insight is that mazes have different regions, so the maze analogy replaces the notion of sequential lead stages with a more nuanced view of non-linear buyer states that can be the same distance to the goal yet differ in other significant ways. Buyers can also jump from state to state without necessarily moving through regions that are adjacent – like a tornado touching several spots within a maze, come to think of it. But enough with the metaphors.

Let’s just stick with the main point: the marketing funnel is really and sincerely dead. The purchase process is no longer linear and, even if it were, marketers couldn’t control how buyers move through it. The image of maze may not be perfect but it does show that buyers can follow many routes, that they’ll make their own choices, and that marketers still play an important role by defining the buyers’ environment. At least it’s a start.

Of one thing I’m certain: the buying process is not an escalator.

0 Book Review: Adam Needles' Balancing the Demand Equation

Business marketers can find plenty of books on broad strategies and plenty of other books on specific tactics.  But a framework for connecting tactics to strategic goals has been missing.  Adam Needles’ new book Balancing the Demand Equation (available here from BN.com and  here from Amazon) closes the gap.

Needles is a well-known industry leader who is Chief Strategy Officer at demand generation agency Leftbrain DGA. His book starts with a review of changes in the B2B buying process and the new demands these place on B2B marketers.   While this is an oft-told story, he summarizes it nicely in two requirements: focusing on the buyer relationship, not on the sales process; and, replacing disconnected push campaigns with an operations mindset of continuous processing. 

The discussion then switches to tactics.  These fall under two major headings of content marketing and lead management.  The book provides practical hints for each topic, such as changing who signs your emails as buyers progress through the purchase cycle.  (Spoiler alert: early emails should come from industry peers, later emails from vendor experts.)  Much of this advice is sourced from other industry leaders – which is to say that it’s useful but not new.

Needles saves his own contribution for last.  This is the concept of “Demand Process Integration”, which he calls a framework to connect content management with lead management so they reinforce each other.  Actually, “framework” doesn’t quite do this justice: what Needles presents is really a step-by-step methodology that includes defining buyer personas, planning the dialog for each persona, mapping the dialog steps to lead stages, defining nurture logic (with separate tracks for active buyers, buyers who need follow-up offers, and inactive buyers), creating lead scores for different personas and stages, and rerouting leads who enter in the middle of the process or should be moved to a different track.  The concepts are illustrated diagrams from Needles’ work at Leftbrain.

The design methodology is followed by advice drawn from operations management theory on process execution, monitoring, and optimization.  Key metrics include process capacity, throughput time, and system balance.  Needles tailors these to demand generation by recommending that marketers check for nurture logic integrity, conversion rates by stage, lead scoring accuracy, and routing errors. 

This may start to sound painfully detailed, but marketers wondering how to connect grand strategic visions with practical execution will find it hugely helpful.  If you want something more inspirational, that’s here too: the book closes with a list of big-picture implications including re-conceptualizing the role of B2B marketers, changing the relationship between marketing and sales, and paying marketers based on results.  As Needles himself puts it:

“Let’s be clear; we’re not talking about a minor course correction here.  This is not a book filled with tactical best practices.  We’re talking about a massive overhaul of how we approach B2B demand generation and a significant re-orientation for B2B marketers.  The stakes are pretty high.”

Indeed they are.  Consider this a guidebook for how to play the game and win.