10 years, 10,000 campaigns: B2B marketing strategies that really drive sales

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Is Tesco driving its suppliers’ IT spend?

September 30, 2009 Categories: IT Boom Hunter
IT Boomhunter

Retailing giant Tesco has, according to the Harvard Business Review’s John Quelch, ”taken the lead in promoting its  [corporate responsibility] Sustainable Consumption Initiative, now being copied by Wal-Mart.”

In an article highlighting that CR programmes are not just surviving, but thriving, in a recession Quelch says that  Tesco “plans to require carbon footprint information to be placed on the label of every product sold in its stores.” He ties this back to the trend that shoes a growng segment of consumers worldwide considers CR evaluations important in selecting among brands across a wide range of categories.

Terry Leahy, Tesco’s CEO, wants to make it easy for consumers to incorporate environmental impact criteria in their purchasing. As he says: “To achieve a mass movement in green consumption is to empower everyone, not just the enlightened or the affluent.” Corporations cannot change the world on their own. They need to empower their customers to help change the world for themselves.”

For all of Tesco’s major suppliers, this must be a hell of an ask.  They are effectively demanding CR measurements and focus back up their supply chain. For those suppliers, these demands can surely only only be met by using actionable using data driven from IT systems. Certainly to accurately measure carbon footprint across product lines going foward will require IT support. This resonates with my earlier post this month that revealed CIO’s challenges for 2010 and beyond, that many CIOs are heavily focused on interrogating data to support decision-making. If you can help Tesco’s suppliers out with this challenge right now, you’re well placed.

No comments | Posted by Lindsay Willott

The CIO 2010 and beyond

September 24, 2009 Categories: IT Boom Hunter
IT Boomhunter

IBM has just released its first global CIO study, free to download from their website. It covers the findings of over 2500 interviews with CIOs from across the world.

For those marketing to CIOs, the study points to contined unpredictable conditions  – 90% of the CIOs interviewed believe that there’s moderate or substantial change ahead for them. The top 3 factors driving this belief were agreed to be business model changes, budgets and macroeconomic factors.

Other major findings are that CIOs split their time between 3 main activities – making innovation real, raising the ROI of IT and expanding business impact. The levels to which they spend time on these depend very much on whether those CIOs work for high, medium or low growth organisations. 10 minutes spent reviewing the numbers in detail is worthwhile as there are some useful nuggets – the heavy usage of collaboration tools in the high growth environments is one. Another is the fact that all CIOs are seeing that IT is “key to making business models unique and difficult to imitate.” The relentless march of SaaS is obviously not causing a “utility” situation to arise just yet!

CIOs are spending their time now and in the medium term on plans that enhance competitiveness (83%) and virtualisation (76%). They are also highly focused on “making the data sing” – interrogating data to support decision making – especially around new ways to meet customer need. The unpredictability to the customer in the recession has clearly put a lot of pressure on IT to use data to reveal what they might do next.

For many marketers, one of the study’s most interesting findings is the conflict that’s increasingly inherent in the CIO’s role. Many of the verbatims and case studies draw this out… “I need to introduce new services without disrupting existing ones”… “I need to reduce costs and improve services”. It strikes me that acknowledging this in marketing material, and offering ways that these dichotomies could be resolved, might be one way to strike a chord with CIOs.

No comments | Posted by Lindsay Willott

Real comedy value? B2B video examples…

August 19, 2009 Categories: Uncategorized

As the Edinburgh Festival Fringe gets underway, with comedy continuing to grow across popular culture, perhaps more B2B organisations will take the plunge and find new ways to use video to cut through to customers or even to engage their own employees?

Clearly considerations around audience, message, objectives and brand will always play a role in deciding whether comedy might be the right route to take. And while we have had great success introducing it into campaigns over the last few years, it is arguable that comedy could be used more often than it is. If you are thinking about whether video could form part of your web 2.0 marketing strategy, and what story you might have for your audience, our planner (available here) may help to put it in context.

I’ve listed here a few videos that spring to mind as examples of organisations that have taken the first step, but please do suggest your own…

Perhaps the classic high-production-value video is the EDS Superbowl advert from 2000:

Which does have a less well-known twin (with a slightly more involved business message):

Then there are vendors who have a more specific axe to grind, as in the case of Lawson, making a case for ‘Simpler is Better’ when it comes to software…

And while Lawson’s first video from 2007 (above) has 65,000 views on YouTube, the latest installment (below) from April 2009 now has over 300,000. Clearly, lessons to be learnt around the determination to see through a new media campaign.

Outside of IT, there are some very imaginative examples like this one from a supplier making the point that the time has come for their product (I won’t say any more to avoid giving away the secret to a very clever, very rewarding watch):

But what video round-up would be complete without Mr T? Especially Mr T promoting virtualisation: “I pity the fool who doesn’t use Hitachi Data Systems virtualisation”…

3 comments | Posted by Lindsay Willott

£750m: the cost of a first class stamp?

August 7, 2009 Categories: IT Boom Hunter
IT Boomhunter

penny-blackComputing’s announcement that “Royal Mail seeks suppliers for £750m IT transformation plan” hints at the underlying (and increasingly important)  link between investment in IT and cash availability.

At the start of July, with Mandelson’s plans for part-privatisation abandoned, Royal Mail described its big three issues as “The need for fairer regulation, the need for a resolution to the large and growing legacy pension deficit and flexible and timely access to capital remain as urgent as before.”

Come the end of July, with the funding apparently now available, Royal Mail is looking for suppliers under three separate agreements adding up to around £750m “which will include systems design, build and implementation, as well as the support and hosting of the postal service’s softwareapplications”.

Talking previously about the transformation required at Royal Mail, postal service minister Pat McFadden had said that “given Royal Mail’s falling revenues and limited profits over the next few years, and pensions fund deficit, clearly Royal Mail will not be able to fund this investment alone. Additional capital will be required and this could be hundreds of millions of pounds, in addition to the funding we have already provided.”

The availability of capital is yet another language that marketers need to learn and bear in mind when trying to find a place in buyers’ plans.

No comments | Posted by Lindsay Willott

This boat is leaving – are you on it?

August 7, 2009 Categories: IT Boom Hunter, Indispensible marketing department
IT Boomhunter

missingtheboat1You will often hear an IT company saying, ‘buyers don’t understand the cloud’, and using that as a justification for either (a) not saying anything about it, or (b) launching into a grand programme to define the cloud for CIOs.

But in the background, buyers are creating specific plans for the elements of the cloud they want to use now. What vendors really need are some focused examples of problems their solutions can solve, not high level positioning of where they fit amongst SaaS, IaaS, PaaS…

Perhaps more significantly, all this talk of ‘as a service’ is starting to extend to non-cloud conversations and contracts. The FT’s recent article, Outsourcing begins to blur into services, shares a range of views on providing more flexible pricing and resourcing models on wider IT Services contracts. In an interesting section 3/4 of the way through the article, there are some good CIO viewpoints:

Simon Post, CTO at Carphone Warehouse: “Flexibility is vital to us, not just in the infrastructure space, with IBM, but also for applications. Retailers have shorter buying cycles than other businesses, so we do need to gear up and gear down quickly.” According to the article, “Buying IT services on a pay-per-use basis is certainly on the agenda at Carphone Warehouse”.

Richard Boynet, CIO at Electrocomponents: “when our current data centre contract runs out, we are looking at multiple options from virtualisation, to taking some of that [capacity] as a service. We might, for example, use a vendor such as Amazon to stress-test the next release of our main IT systems.”

So to summarise, by the start of 2010, if you have a cloud offering you will need the specific examples of where people can use it (which may sound obvious, but is currently surprisingly thin on the ground). And even if you are keeping your head above the cloud (sorry), you will still be coming up against competitors for traditional services who have developed some model for ‘pay as you go’ pricing that could be opening doors for them in your client base.

Until now, there has tended to be agreement that pricing is more of a hygiene factor than a compelling component of a proposition (with clients more interested in any existing relationship, proof of past delivery, or promises of helping them to achieve large savings). But is the rise of cloud propositions making the pricing strategy of traditional services a more decisive issue? How can suppliers build more flexibility (not just performance-related elements) into their offerings?

No comments | Posted by Lindsay Willott

What your customers really want from you

July 20, 2009 Categories: Building a lead generation engine, Indispensible marketing department

What do senior decision-makers think of your marketing and sales efforts? What are they responding to? What do they want more or less of from you?

These questions were at the heart of our recent Sales & Marketing Forum, where we heard from IT buyers about their attitudes and experiences of marketing. We’re now running debriefing sessions for people who weren’t able to make the evening (request a session), but we’ve also collated online the presentations from three speakers:

  • Keith Mitchell, former Global Head of Shared Infrastructure, Reuters
  • Claire Myerson, Information Technology Solutions Director, Wyeth Pharmaceuticals
  • Chris Cottam, former European Marketing Manager, HP

The presentation can be downloaded at http://www.themarketingpractice.com/documents/S&M_PeepShow.ppt – but it might be best read alongside some of the following thoughts (a short summary of my impressions, I hasten to add, not necessarily those of the speakers)…

Breaking in as a new supplier

The speakers had mixed views on specific channels to use to approach a buyer. Unanimously, social media and online channels (like webinars – as long as they last less than an hour and start at a time that is clear to a UK audience) are growing in importance. Keith’s point around web 2.0 was important to bear in mind when planning new social media initiatives: while he uses it for research and to bring insights/experiences into his team, you shouldn’t expect him to reciprocate or actively contribute.

The general message with other channels (direct mail, email, events…) was that the content needs to be either incredibly targeted or impactful (whether in a creative or business sense) for there to be any results. Claire emphasised that business buyers are also consumers and that inventive approaches or creative impact can have their place. But she was clear that nothing resonates more from a new supplier than stories of having done similar work for someone else in her industry.

Part of the issues suppliers face is to make sure that they are working where the money is. The example Chris used was the desire of almost all IT suppliers to become a ‘trusted advisor’ and the danger that such a strategy can significantly damage transactional revenue streams (which can be up to 75% of IT budgets) and leave the door open for the competition at a more practical level.

In the battle to reach the CIO or IT Director, don’t underestimate the role of the PA. Keith made the point that his PA would know what was on his agenda, would often be as interested in the content as he was, and would be able to open doors to other key people in the department. The overall message is that you should treat the PA as if they were themselves the CIO.

What do buyers want from existing suppliers?

We found in our own research that existing suppliers were seen as the most important source of information for buyers. This was confirmed by the forum speakers – particularly against sources like analysts, who received mixed reviews (some useful industry-specific analysts exists, but the big names seem increasingly irrelevant, especially compared with user-generated content online).

The speakers described how, in their best relationships, suppliers work alongside customers to plan out priorities for the year. It means that suppliers can share ideas, understand what they can expect, and avoid trying to sell anything inappropriate. It’s good to have shared formal account plans written down – although Chris did make the point that suppliers need to evaluate exactly how much effort to put into individual accounts depending on the business value they are likely to deliver. He used the example of people following the account-based marketing bandwagon without properly understanding the consequences both for the focus accounts and for the others that are left behind.

Keith wanted suppliers to be constantly sharing information – not only about industry or product trends, but also about them and their own activities. His worry was that suppliers would only communicate when they had something to sell, but at a time like this that can mean not being well positioned when spending does come back online. Having said that, his advice was also that, when you are in productive conversations, not to be too cautious about pushing the deal to a close. If there is a clear interest on his part it is frustrating if there is too much procrastination.

What can marketing do to help?

All the speakers had examples of marketing working well with sales and the customer – as well as examples of where things did not seem joined up. Claire’s advice was for marketers to work hard to ensure their offers reflect what sales already know about a businesses’ priorities.

At the same time, marketing has a lot to offer that sales cannot. For example, marketing can be a great vehicle for bringing in inspiration (sharing examples of other clients in the same industry) or strengthening ties with a supplier (through activities like industry forums or conferences).

Some specific ideas from the panel included:

  • Working to celebrate success – for example, creating a video to celebrate a project going live (can strengthen the relationship with the customer and lead to future opportunities).
  • Focusing on activities that give real value to individual customer contacts. One example given was a programme of MBA modules run by one supplier, where marketing had identified some key learning requirements and were supporting those.
  • Using the opportunity of the recession to double-down on client references – increasingly important to be able to prove that you offer the low-risk alternative.
  • Getting more personal in communications – not only in understanding customer issues, but also simply in the style of communication. For instance, Keith pointed out that graphics and formatting in emails are lost by the time they reach his Blackberry – and they also instantly make the message less personal.
  • Staying honest and pragmatic – whereas hospitality is becoming increasingly difficult for customers to accept, the offer of a charitable donation (especially to a corporate charity) can persuade a customer to give up their time.
No comments | Posted by Lindsay Willott

Cisco uses social media to condition the market

July 5, 2009 Categories: Uncategorized

Such has been the success of Cisco’s recent proactive social media strategy that the FT’s Tech blog has felt compelled to write about it.

Cisco have been piloting a social media strategy around its new Unified Computing System. The broad approach is to use social media channels to test-run messaging and potential feedback, then use that feedback to tailor the message to different stakeholders before the formal launch.

The FT blog states, “By the time the Unified Computing System launched, Cisco had drummed up considerable interest in the new product. It had had more than 53,000 interactions with customers, and honed its message to near perfection. “It’s about anticipating the issue, getting feedback from customers, then adjusting our message,” said Ms Gibson.

“All this advance work paid off, says Ms Gibson. Upon the official launch, the UCS was met with wide applause. The new product attracted enormous media attention, and 98 per cent of the stories were positive, according to the company.

“Ms Gibson says the effort was a success, and Cisco will be incorporating the strategy in the future. “The idea of using social media for market conditioning is going to inform our launches going forward,” she said.”

The FT’s major thrust here is that the value of social media marketing here has come from its proactivity; using social media tools as a kind of giant, virtual market research panel.

No comments | Posted by Lindsay Willott

How to organise for social media

July 3, 2009 Categories: Indispensible marketing department

If you’ve ever considered the impact social media might have on your marketing team’s organisation, or indeed the setup you will need to accommodate a successful social media strategy in the first place, then Forrester’s Marketing blog has suggested a few options.

Designed to cover questions such as “which roles do we need?” and “which department should be in charge of it?”, Forrester has developed a three-pronged model as follows (with Forrester favouring the hub and spoke method as the most sopisticated of the three):

  1. The Tire (Distributed): Where each business unit or group may create its own social media programs without a centralized approach. We call this approach the “tire,” as it originates at the edges of the company.
  2. The Tower (Centralized): We refer to this centralization as the “tower” – a standalone group within a company that’s responsible for social media programs, often within corporate marketing or corporate communicaitons.
  3. The Hub and Spoke (Cross Functional): Like the hub on a bicycle wheel, a cross-functional group that represents multiple stakeholders across the company assembles in the middle of the organization. The hub facilitates resource sharing and cross-functional communications (via the “spokes” in the wheel) to those at the edge of the organization (or the “tire”)

As per my previous post on Barack Obama’s marketing campaign chief’s approach, message and strategy should always get the lion’s share of attention over channel and tehnology. Thus the people you hire for these positions and the structure of the team delivering social media marketing should be right at the top of the agenda of any social media programme. For insight into the planning of social media campaigns, download our popular B2B web 2.0 marketing campaign planner.

Insight into Asos’s approach (in this earlier blog post “A Tale of Two Retailers” also gives insight into how Asos is driving their strategy from the top.)

No comments | Posted by Lindsay Willott

Barack’s campaign chief favours “old school” marketing

July 1, 2009 Categories: Indispensible marketing department

The man credited with masterminding Barack Obama’s marketing campaign has been airing rather surprising views at Cannes. David Plouffe’s comments were reported in the Financial Times’ Tech blog, where he talks about the value of “old school” marketing techniques that focus on the message being delivered by channels such as email and television, and supported by social media tools as “part of the arsenal” in Obama’s campaign. He stresses it was the unconventional way in which channels were used, rather than the use of the channels themselves, that delivered the results.

“The real drivers for us were old school – they were email and they were web,” he said. The legacy of that email campaign is that the Obama administration can still communicate with 10m Americans – “directly, not through a media filter”, said Plouffe, at a time when people trust media less and value personal recommendations more. “That may not be as sexy as a TV ad or a press conference, but I can’t think of anything more valuable than [staying in email contact with supporters],” he said. “There is nothing more valuable than a human being talking to a human being.”

This is eminently applicable to B2B comms, where the channel choice can often be overstressed in its importance versus the message. In the same way, Plouffe highlights the importance of the supporters being able to “move the message” through any channel of their choosing (Twitter, web, Facebook, email) but the overriding factor in the campaign design being the message itself.  Definitely a consideration for campaign design at the moment: consider how the message might be “moved” by its recipients, and how you can facilitate that process through the way the information is delivered in the first instance.

No comments | Posted by Lindsay Willott

A tale of two retailers

July 1, 2009 Categories: Building a lead generation engine

The impact of differing IT investment strategies was apparent this week in the difference between comments made by the House of Fraser and ASOS (As Seen on Screen).

In an interview with House of Fraser’s IT Director, Computing reported that established players are too far in to their old systems to change: “We have made such a big investment in our core platforms, so I cannot see us moving away from them,” said their IT Director.

“Nowadays it is not about wholesale replacement anymore, but about maximising and consolidating what you have. We have spent a lot of time and money on our systems over the past couple of years and it is now time to sweat the assets ­ and that is not a bad thing,”

“You can understand why financial trading needs to be at the sharp end of technology, but retail is all about consistency of delivery, operability and cost of ownership.”

“We never used to allow people to access the internet, but when we moved to the new building we provided everyone with web access, with some simple rules to protect us and the staff,” said Gray.

The rules mean that sites such as Facebook, Twitter and YouTube are banned and can only be used by the e-commerce team.

Does this bricks-and-mortar based organisation feel a little constrained, maybe even a bit backward-looking in its strategy? Certainly it feels as though House of Fraser could talk more about what IT can contribute to customer loyalty, or selling a wider product range… With the demise of many high street players in the recession, embracing technology’s role in engaging with customers makes more sense than ever.

This compared with Computing’s report on the role IT has played in ASOS’s astonishing success.

“The company reported a 92 per cent profit increase to £14.1m compared with £7.3m in the previous year. Sales also rose to £165.4m from £81m reported in 2008.”

A major back-office overhaul has supported the Asos’ positive performance. The programme covered buying, merchandising and fulfilment, with the rollout of a new warehouse management system at the firm’s Hemel Hempstead warehouse.

“Use of social media was also one of the highlights for the firm over the past year, with official pages being set up on Facebook, MySpace and Bebo.

With Twitter, the firm used a different approach, by allocating 55 staff members to actively talk to customers in addition to providing real-time news, offers and service updates. As a result, Asos now claims to have the largest Twitter following of all UK retailers.

Another initiative in social networking is the launch of Asos Life, a platform which allows customers to talk to each other and key people within the firm.

“It is clear that the structural shift to online continues and I believe that Asos is ideally placed to exploit it,” said chief executive Nick Robertson.”

No comments | Posted by Lindsay Willott