You’re an IT Director in financial services. Or the Head of e-Delivery in the public sector. From our decision-maker research, we know that you receive around 30 supplier marketing emails every day (without even considering more regular spam emails) – and probably find barely a quarter of these to be relevant.

It’s a sign of email’s growing popularity or even over-use in isolation from other activities (as a more ‘measureable’ and ‘cost-effective’ digital channel) and of some common mistakes being made in how it is used.

We recently reviewed a year’s worth of emails sent out as part of wider relationship, lead generation or thought leadership programmes. The key conclusions are presented – and illustrated with examples – in a paper available to download here.

What’s in the document?
- 10 tips to consider at the tactical level. If you believe that you are communicating with the right people about something that should be important to them, but are failing to see the results you need, then the chances are that these tips will help. Issues in email execution – like when to go for beautifully designed html versus personal-looking text – are absolutely critical.
- And stepping away from the tactical, the document also puts a narrative around the whole email story – its place in wider programmes, what the audience likes and dislikes, considerations around testing, and the need for exceptional content.

For me, the single most important advice the document has is about creating simple steps for the audience.

No-one ever signed an outsourcing contract after reading an email – so rather than trying to lay out the complete case for the deal, the email has to have a clear and realistic action it asks the reader to take. This could be nothing more complex than a compelling case for why they should click through to read a document that positions you as a thought leader on the subject. Or it could make a proposition for them to arrange a first workshop with you (something more personal than a ‘healthcheck’ offer – do you have a recent business case from a deal with a similar client? Have you got research that you could share with them?).

This idea of creating emails with a realistic call to action (one you would feel comfortable writing in a personal email to someone you wanted to meet) applies to both planning and execution of email programmes. At the planning stage, it means mapping out the call to action, audience journey and key messages. And when it comes to execution, it is why emails are potentially the very hardest job facing any copywriter today. Hopefully this document goes some way to solving the challenge.

Tomorrow night sees the November gathering of the ever-slinky S&M Forum.

Our topic couldn’t be more timely – the need to justify the business value of marketing is perhaps more pressing than ever. Why, so the boardroom argument may go, should we invest in marketing when propping up our sales team would surely get more money in? When such a claim is levelled, marketing needs the numbers at its fingertips to respond. Why then, are they often so far from reach?

How can the marketer quantify what he or she does in terms of boardroom-friendly raw numbers? How can ‘marketing success’ be measured? What activities are generating a good return on marketing investment? Is answering any of these questions actually possible? In researching tomorrow’s event, we dug up a number of useful articles and interesting commentators on the B2B marketing measurement debate…

Starting with the basics, Jim Lenskold’s recent study (2008 Marketing ROI and Measurements Study) showed that many marketers are struggling with the fundamental measurements required to manage and improve marketing’s contribution to an organisation’s business plan.

Thus those who do measure are already ahead – the study showed that simply the act of measuring marketing in the first place has a direct effect on performance.

Respondents who described their marketing as highly effective all showed better measurement and ROI practices than those lower down the table, and they are using business information that ranges from sales reports, financial data, lead gen data, marketing spend and sales pipeline details to furnish their measurements. Perhaps most revealingly, these ‘highly effective’ companies comprised only 9% of study respondents.

Arguably, the main reason for this paucity of highly effective marketing measurement lies in collecting this data and presenting it in an actionable way to those in the marketing department, and an understandable way to those outside it. There are certainly tools that can be deployed to assist in this process, for example marketing dashboards, but the key is to have not just the short-term, but also the long-term view driving all analysis.

This long-term view was touched upon in a recent series on B2B marketing measurement in which Forrester’s Laura Ramos urged for customer-centric metrics to be employed to measure the impact of marketing over the entirety of the customer life-cycle. Ramos recommended that marketing measurement should move away from focusing on the basic lead-gen approach and towards building and maintaining brand loyalty by measuring how prospects buy, using demand management to build further customer dialogue and align marketing and sales around common objectives.

This latter point, the disconnect between marketing and sales, is often the shadowy figure lurking at the back of this measurement debate.  So much so, in fact, that one article in the Harvard Business Review from a couple of years ago, set about ending the war between sales and marketing once and for all by tackling the economic and cultural differences that usually cause the tension. But what relevance would such a sales and marketing peace treaty have to effective marketing measurement?

Unsurprisingly, it is value. With an aligned sales and marketing team communicating with the market in a consistent and timely fashion, the ROMI is not muddied by conflicting sales activity – the marketing effort put in at the beginning of the sales cycle will have a direct effect right through to the end.

Indeed, Laura Patterson develops this point when she states that marketing isn’t an island. Pulling the lens out so the focus is on sales, product, customer service and finance as well as marketing can really add value to the measurement process by placing all campaign activity into its real-world business context.

Brian Carroll’s call for a marketing funnel is another case in point. Carroll takes the view that most companies use only sales funnels to collect all their leads, qualified or not. The result is less a funnel and more a bucket riddled with holes out of which the less-qualified leads leak. By creating a marketing funnel, leads can accurately be filtered through to sales only when they are sales-ready. And Carroll agrees with Patterson when he says that measuring the effectiveness of this sales-marketing interaction is central to its success.

Generating actionable leads rather than just leads is important here too, and certainly something that should be the focus of any measurement. Lead quality is vital in the context of marketing value. For example, if a lead is measured purely as a cost-per-click (CPC), does this mean that each resulting sales opportunity is treated as equally valuable? CPC certainly has its place – if the average sales opportunity return isn’t expected to be high compared to the number of click-throughs, a decision would be made about using such a model. But if a relatively few click-throughs (with a higher-than-normal CPC) results in one or two significant sales opportunities, the value of this kind of marketing must be properly measured.

The damn lies inherent in such measurement statistics are ably demonstrated by email marketing. As Stephanie Miller points out, a study conducted by the DMA for marketing activity throughout 2007 showed that email marketing had 150% more ROI than non-email online marketing. Great, but behind these bare figures lurks the spectre of spam and the Gatling gun approach to some email marketing. Because there is simply so much of it out there, hitting thousands of potential targets with a broad email sweep usually has a negative effect of alienating potential sales leads. With a smaller but more targeted email campaign approach, the opposite can be true. Miller urges us not to be blinded by the glittering promise of gold with email marketing but to measure emails in exactly the same way, using customer take-up across different styles and sizes of email campaign to guide future success.

So, is there a danger of measuring too much? Perhaps not, if the right activities are measured in the right context. And, no matter how difficult the economic climate is, marketing value will always come down to money: the sales that are generated directly from a campaign.

As Paul Dunay suggests, in the grand scheme of things, sales is the only metric that really counts. This is, he argues is the ‘right context’ for measuring marketing value, based on three tiers of marketing metrics, with the first two tiers feeding into the most important third tier:

1. Reach metrics: the straightforward campaign hits – e.g. webpage click-throughs

2. Efficiency metrics: how cost-effective each form of reach activity was and whether it achieved the desired result – e.g. cost-per-clicks and the number of downloads of a whitepaper

3. Value: the contribution to the sales pipeline – e.g. the ROI for the number of attendees at an event

Of course, saying that marketing reach and campaign efficiency impact on and drive the overall value of the campaign is nothing new, nor is it astounding. But this is a very tidy way if thinking about it.

Measure what you’re doing to make sure you’re doing enough of it. Measure how you’re doing it, to make sure you are learning and getting better. Finally, measure if it’s working for the business. So, in the end, it’s all very simple.

(Although setting up the lean, mean marketing operation that can get hold of those figures and track them is a whole new blog post!)

We’ve been doing an increasing amount of bid support and win-based marketing work for clients in recent months.

With their strong understanding of positioning and presentation, B2B marketing departments complement the sales team’s skills are well placed to make a real impact on the outcome of a bid.

There’s a range of win-based activity you can undertake to support sales. We’ve a free powerpoint outlining the best of these - available from The Marketing Practice’s main site here.

What makes a successful account-based marketing (ABM) programme? Great execution is essential (as is a planning framework like this one), but here we wanted to highlight three elements of programme management that we think mark out ABM that really delivers results.

Having run account-based marketing (ABM) programmes for our clients over the last 2 years (treating their key individual customers as markets of one or, at least, a few), we’ve identified these areas as essential to keep in mind.

They’re important to ensure an ABM programme stays within its original budget and doesn’t demand more management than originally expected; keeps the faith and interest of the sales or account team; and delivers the promised results.

1. Turn theory into practice: we’ve seen a few situations where ABM becomes all about the planning, and ignores the detail in execution that can make or break the programme. For example, marketing might take on the role of profiling a target account, understanding its current priorities, and handing this analysis back to the sales team with a list of propositions to target the account with. For an effective programme, this should only be the first phase (and should be done with sales, not in isolation). For marketing’s involvement to stop there means that the most effective potential actions are never taken (whether it’s creating sessions to run for new contacts in the target account, or putting more effort into engaging them with corporate materials and events, or even targeted lead generation to help the stretched account team break into a new area of the business). Equally, there will always be some personalisation – or even unique material – needed at the account level. If it was as simple as just targeting the right existing activities at an account, then everyone would be doing it.

2. Keep focus: there are instances where we’re asked to support 9 or 10 different propositions being taken into 5 or 6 areas of a customer account. While this is achievable over a year, it can’t all be done at once. The key is to pick the most important 3 propositions and find where in the account they are most suited, craft the specific story and work with the sales team to take them in (supporting by building data, or creating campaigns, doing research or preparing sales materials). This way, the sales or account team will really feel the benefit and stay engaged, without the danger that your work will either be watered down or you will be asking for more time than the sales team has to give.

3. Avoid overcomplicating: in some cases, an ABM programme is really no different from any other marketing programme, just targeted at existing customers. Yes, it needs more intelligence upfront to avoid stepping on toes or saying the wrong thing – as well as more consistent interaction with sales or account teams. But that shouldn’t stop us being able to quickly and effectively get returns from existing customers: now more than ever, they are the best sources of potential new business.

Bearing all this in mind, we can deliver the three or four key activities that will make a real difference in a single quarter.

Just in the last month, we’ve seen examples of the results: two instances where our clients have uncovered workshops in their customers that they wouldn’t have known were happening – and which they can now use to start scoping a new project. All this aside from many other meetings with fresh contacts to discuss new propositions, opportunities entered into the pipeline, bid support on major deals, and the intelligence on customer plans that we have built.

All of which ties in to our ABM planning diagram (available to view here) – a useful tool for outlining the stages and scope of any ABM programme.

In the last week I’ve met two marketing directors at global B2B companies. Both with similar challenges: in 2009 they need to do more.

Both are looking to us to make the most of their money. So what did I do? I stepped through our lead generation engine approach – how more concentrated investments in sales-aligned marketing can deliver greater results at lower costs.

Why are B2B marketing departments increasingly seeking a longer term lead generation strategy?

First, because we have to work harder now than ever to identify the parts of the market where there is opportunity. It’s still there, arguably more of it than before, but in very different places than a few months ago. Longer term campaigning actually shows you where do market next (Sign up to our IT Boomhunter series via RSS or email to keep abreast of IT market developments as they happen.)

Second, because increased cost-control is changing clients’ and prospects’ behaviour – and sales and marketing approaches need to adapt in line with this. Again, only from longer term campaigning can you see these changes before your competitors do.

Third, because marketing departments themselves are under pressure to find efficiency, increase productivity and deliver bottom line results. This can result in ‘quick and dirty’ campaigns that frustrate the sales team (see this post on selling in harder times) and actually damage your chances of selling (see this interview with Egg’s ex-CIO, explaining why one-off campaigns won’t get a hearing.)

What’s needed is a cool appraisal of the real market conditions, and a programme worked out over the long term to reduce the cost of business acquisition whilst increasing marketing efficacy.

The Marketing Practice’s approach shows that this can be done. How?

It’s not just a theory. We’ve proved it. For example, we’ve been running an executive events series for more than 2 years. Working the same set of data (because we started with a clear idea of everyone in the target audience), we’ve more than doubled the number of attendees at the events every other month, cut by 35% the cost per delegate, and delivered countless opportunities for sales engagement (exciting, because we know that the events are just a means to an end, not an end in themselves).

Or take another example – a lead generation programme running over the last 3 and a half years for a software company. Over this time, we’ve worked online, offline, through events, dinners and conferences and with ongoing teleservice. Always to the same audience, building and refining data across their target markets. These kind of programmes work right from day one and build phenomenal market intelligence.

If you want to know how, we’re running a roadshow featuring case studies of how our “lead generation engine” approach works. Drop us a line now to find out when and where.

If it feels like you’re doing more marketing activity, and getting fewer results at the moment, then you need to have a glance through this document. It was given out by Neil Rackham the author of SPIN selling at Verne Harnish’s Sales Conference – www.gazelles.com/sales_summit/Rackham_Selling_Harder_Times.doc

It only takes a couple of minutes to read and debunks a few myths on the way. ie. you don’t have to compete on price, and you shouldn’t be chasing every opportunity.

Useful 2009 IT marketing spend statistics released this week by IDC research – there’s a free webinar here covering the research. Some of the main benchmarking highlights, as described by Jon Miller:

-Marketing Budget Ratio (marketing spend/revenue): 2.8% average (2.6% for hardware, 5.1% for software, 0.8% for services)

- Program-to-People Ratio (program spend as a % of total mktg. spend): 61%

- Marketing Staff Throughput Ratio (program spend per staff): $293,000

- Slide 23 describes how companies allocate their program budgets across events, advertising, direct marketing, marketing support and sales tools, digital marketing

- Slide 24 shows how staff is allocated across functions

- Slide 25 shows how companies are allocating their digital marketing budgets across advertising, search, email, etc.

Note that these benchmarks are for large IT companies with average revenue of $6 billion a year.

What a week it was last week. The world is changing before our eyes.

What interested financial services companies a week ago may well now hit a brick wall. Our business intelligence team, calling into banks this week on behalf of various clients, have been met with everything from “I’ve just been made redundant” to “I don’t know what’s going on, I simply can’t talk to you – it’s all up in the air.”

So what action can you take, right now, to keep on generating leads? To make sure your marketing messages will continue to strike home?

1. Talk to your customers, more on this below

2. Find out where there is still opportunity to sell. (we’re tracking several of these areas – get in touch if you want to sign up for our email newsletters on this)

3. Find cost-effective ways of getting your message in front of people – and prove why you are worth their time

Our own experience, only last week, was showing that what mattered a month ago is seen as frivolous now. The unusual market conditions are definitely creating opportunities but they are not always immediately obvious.

To use a B2C example, The Sunday Times reported yesterday that John Lewis has seen a 247% increase in sales of hot water bottles versus this time last year. Presumably this is people trying to conserve their cash by keeping the central heating switched off. Makes thrifty sense, but not an immediately obvious market opportunity.

It goes to show that, in a time of unprecedented goings-on, no-one can know for sure what will work. For B2B, it’s back to basics marketing – the most important action you can take is to get out there and ask some questions of your clients.

Ask them how, in this new environment, they will be making decisions, ask what are the pressures they’re facing, and what is valuable to them now. Understand how their own customers are behaving. You need to really understand both of these aspects to be able to put together proposition and messages that will engage them in uncharted territory.

We’ve made available our own client insight questionnaire to speed things up for you. Download it here: customer-insight-questionnaire.Your buyers’ worries (and their urgent need for future performance) are a real opportunity – if you understand them properly.

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We interact with a lot of B2B IT marketing departments at The Marketing Practice. And we’ve noticed that the very best ones have a number of things in common. Here they are, and over the next few months, will be researching and testing this theory by interviewing the best in the business, to see if it holds water.

Please add your comments from your own experiences, if you’ve seen great marketing departments – what do they do that makes them great? Which areas are common amongst them? Do you agree with this list, or are there other areas that need to be included?

1. Sales alignment
a. Lead generation engine and lead generation optimisation focus
b. Strong joint data strategy between sales and marketing
c. Co-ordinated bid support & account-based activity
d. A genuine customer intimacy
e. Excellent product/service knowledge throughout both teams
f. Campaigns that push leads along at all funnel stages

2. Flagship programmes
a. Compelling programmes that people can march behind the banner of. Each builds and develops from the next
b. Programmes with strategic impact and tactical value – that get done on time, every time
c. Visionary, engaging, gives confidence to the business, customers and prospects
d. Paints a picture of the future

3. Insider status
a. Know the customer & their market(s) intimately and can wield the power that knowledge brings
b. Have detailed end-customer knowledge – can feed back and proliferate changing market needs
c. Thought-leadership around making it better for the customer (ie know what they want psychologically to do their job better)

4. CEO stance
a. Runs marketing department in same way best businesses are run
b. Marketing A players, a blend of staff, contractors, agencies that work in harmony rather than competition- a flexible resource model – plus all playing to their strengths
c. Has a network of peers within the industry
d. Strong ROMI focus – an uses ‘investment’ rather than a ‘spend’ model