IT analyst TechMarketView’s bulletin this morning reporting on Ernst & Young’s ASAPTech event was fascinating. It reports comments made by John Suffolk, Her Majesty’s Government’s Chief Information Officer for Transformational Government, giving his views on how IT vendors should work with Government.

Amongst the varied comments from the Government’s most senior IT man (covering his views on Cloud through to offshoring), the major line that stood out for me was the comment that “the average tender process takes 76 weeks and vendors can spend up to £10m on their bids.”

With the recession biting, and government being the spender of last resort, IT government projects are being eyed up by even more vendors than ever before. Clearly these bids can chew up years and millions. For marketers, it’s important to have a very solid account-based and bid-winning focus.

You can read Anthony Miller’s full write up of Suffolk’s comments here on TechMarketView’s website.

Benchmark spending research from Sirius Decisions out this month claims that B2B marketers are doubling their spend on pipeline acceleration programmes.

“After initial knee-jerk budget cuts, data from numerous business-to-business benchmarks conducted since October 2008 reveal that leading companies are wisely repositioning their marketing strategies and tactics — rejecting a ‘defensive posture’ by still working to close deals or at least lay groundwork for future business despite buyer anxiety and retrenchment,” says Alden Cushman, SiriusDecisions’ research director.

The research found that marketers are changing the make-up of their programs to be closer to field activity, shifting the focus more on clients and current deals. As a result, the mix of lead generation, pipeline acceleration and client retention programs has shifted significantly.

“From discussions with clients we’ve benchmarked, we estimate B2B companies are doubling their number of pipeline acceleration programs,” says Mr. Cushman. “Instead of focusing on generating new leads, these programs represent a more effective way for marketing to impact the extended sales cycle by helping to move deals that have stalled in the pipeline. Without question, the economy is driving this trend, as the program numbers we’re seeing are now more in balance with specific sales requirements.”

Traditional marketing programes have struggled to support the lead throughout the funnel from “lead gen” to “close”. New thinking around account-based (ABM) and narrow-cast marketing is making this a thing of the past. By designing campaigns around the customer journey, and focusing on issues on a client-by-client basis, lead drop-out rates can be reduced and win rates increased. Download our ABM planning tool here, or get in touch with us for a free ABM session which will detail how you can practically approach ABM.

More than 90 percent of UK finance directors in the B2B sector support the idea that companies should ‘market’ their way out of the recession, according to new research by WPP Lightspeed reported by B2B Marketing magazine.

When surveyed, most finance bosses said they believed undertaking such action would help their company to gain market share as the economy recovered. 84% of FDs favoured the idea of further investment in marketing and customer analysis as a way of countering the downturn.

Sectors that exceeded this national average included; banking, insurance and finance at 89 percent, travel and transport at 90 percent, utilities and telecommunications at 91 percent and, crucially, IT communications and hi-tech at 93 percent. Respondents from larger businesses were significantly more supportive of investment than their smaller business counterparts.

So it appears the potential for maintaining and even increasing marketing budget remains. But marketers will need to demonstrate prudent choices, healthy pipeline and ultimately a superb return on investment.

Computer Weekly’s excellent video interview with Corus’s CIO, Bruno Laquet, gives an up-to-date view on what it feels like to be a CIO facing a recession. It also shines a light on the debate about whether suppliers should be putting more effort into influencing decision-makers outside of IT, with Bruno’s experiences of doing exactly that.

The video is well worth a look – available here (and it gets to the best bits after about 2 minutes in) – but these are our conclusions/highlights:

Selling with the CIO, not to them

There was a move a few years ago for many IT companies to believe they should stop talking to IT and start talking to the business. It sounds very black and white, but for some companies it really was that simple.

But for every IT supplier bypassing IT and trying to build a case with the business, there’s an IT department that wants to do exactly the same thing. Perhaps if they worked together, they might both stand more of a chance?

Someone like Bruno should be a supplier’s ideal route into the business – and they would certainly appreciate the proof and angles that suppliers have to share. We’ve shared some of his tips for influencing the business at the end of this post.

But it will take quite a shift in mindset for many suppliers to get their marketing approaches ready to help a CIO like Bruno.

Real-life Corus project examples

Take Bruno’s story of a recent million-pound telepresence project. Of course, he had all the vendor benefits to hand (like reductions in travel expenses), but he knew the struggle he would have getting stakeholders to cut their budgets to fund ‘his’ IT project. Instead, he had to find a way to make telepresence fit with a key part of the corporate agenda – fortunately, CO2 reduction was a main objective of the steel company. (Of course, once telepresence was live, travel budget reductions followed swiftly…)

How many suppliers are adjusting their propositions based on the individual situations of the key accounts? And how many are sophisticated enough not to sell ‘to’ the CIO but sell with them? Every communication, every event, every meeting could be an opportunity to help the CIO engage with the business.

The example of a current Corus supply chain project shows just how strong the CIOs desire to play an integral role in the business is

“This supply chain project, without going into too much detail, the way we have been organised in the company is in business units which operate as silos, and there is a limit to how much we could optimise each silo. So we are looking at activities that could bring the business together. So this supply chain project, which IT is key to, is about breaking the barriers between business unit silos. I’m really proud of that, because it is business transformation powered by IT.”

Lessons from the CIO about selling a proposition into the business

How would Bruno suggest going about selling a proposition into the business?

Some of it is fairly obvious:

“Understand what their main agenda, business priorities, KPIs – make sure that my proposition and what I am trying to influence three months on match with this agenda. I’m looking to see if there is anything for him in that proposition.”

Although it does raise the question of how many IT/Services suppliers are really digging into these issues (think CO2 reduction rather than cutting travel expenses – and how for a different company these two could be the other way around).

But there are some important techniques, like the one Bruno describes as “trying not to finish the job”:

“What I do is try not to finish the job – I try to come with propositions that are open so they can put their own ideas into the proposition so that they feel they own it. So there are 2 areas – being prepared, but developing together the solution. Let’s make a proposal – and let them finish the job.”

There’s a fine line between crafting a proposition that has enough detail to spark interest (whether we’re communicating to IT or the business) but which the client can take on and own for themselves.

What does the recession mean for IT’s role and IT spend?

At a tangent to the main discussion, Bruno Laquet’s views on the recession’s impact on the IT department is also very interesting. The clarity of vision and clear purpose come across particularly strongly, as does the importance of showing how well aligned IT is with the 2 main business programmes (one focused on cost reduction, the other on business transformation to support growth in the future):

“We have two big programmes running at the moment [...] the first one is about eliminating costs – and we in IT do a lot to contribute to this. All my IT Supply team is focusing on moving cost out by innovative ideas – we’re not talking about reducing by 5% or 10%; we’re looking at ideas to cut spend by half. So that’s the kind of project we are doing at the moment, fully aligned with this business priority.

“The second programme is about [...] working with the business to help transform the company. We’re very active at the moment in supporting projects for business like creating shared services or the supply chain programme I mentioned.”

Once again, these focus areas give any supplier to Corus a clear idea of how to frame up their offerings for the next year.

But there is definitely a wider point here: How well do you understand your key clients? Do you work with or work around the CIO? How well do you shape propositions for them? Do you have the evidence you need to share with them? How about the initial points of interest that tell them you have something they need to know?

…your messaging could follow.

Whatever their other flaws, retail banks have to understand the psychology of their target market. It’s been interesting to see in the last 6 months the new angles that are developing in their advertising (and especially interesting to think that these same angles could be the things that we should be promoting to our markets).

So what have the banks been up to?

There’s Lloyds TSB, who have been heavily featuring their ‘most trusted bank’ accolade:

And NatWest’s latest adverts, featuring the new ‘MoneySense’ service, promoting a ‘Helpful Banking’ approach and clearly acknowledging the sudden increase in customers hoping for ‘impartial’ advice from their bank.

The point that these adverts make for IT lead generation is twofold:

1. A basic point that anyone selling to banks may be able to build a case around helping banks deal with the sudden rise in demand for ‘advice’, and will have to fit in with the more cautious, ‘trustworthy’ direction that banks are taking.
2. A wider point whichever industry you sell to: it isn’t just ‘consumers’ who are reacting to the current economy by looking for advice and worrying about trust/reliability. Just one example of this: we’ve seen in recent months that promises of information-rich working sessions that will help a decision-maker understand how to de-risk their project or business are one of the most powerful calls to action.

I was fortunate enough last week to be able to talk a senior IT exec for a large consumer goods firm.

Whilst I can’t divulge the company, the (sometimes surprising) insights into team structure, pressures and supplier relationships are useful for marketers planning campaigns in this turbulent environment.

• The IT team is split into a number of divisions, and each division has a specific responsibility – some long term planning and vision, some delivering business programmes and others looking at the day-to-day needs of hardware and software
• Each IT supplier is allocated an owner and there is an internal programme for each supplier to meet senior IT representatives. This is seen very much as being about relationships and not about purchasing or commercials
  Suppliers are ranked in importance and managed by IT as such. Importance is determined by the criticality of the programme, not necessarily the size of the spend with that supplier
• If new suppliers are needed then there will be a tender process. For development and SIs the company tends to use people already known to them. If it’s a new need then the best way in is through the specific programme manager who will promote it up to the senior IT execs
• There tends to be a specific effort to scout around for new suppliers if there’s a new project or the incumbent isn’t perceived as being up to the mark. New starters in the IT department or in procurement are also a regular source of suggestions around new suppliers.
• Even when an IT purchase is being driven by an explicit need from the business (and this is almost always the driving force in looking for something new), it’s typically IT that drives the decision about what specifically is eventually implemented
• In terms of marketing explicitly, senior IT execs attend networking and high value events and the CIO is the most heavily targeted of all. Interestingly, the next layer down, and the one below that is very lightly targeted, especially via direct mail
• An interesting point to note was that at the moment, even in this “reduced cost” environment, IT spend is continuing apace (in some cases to demonstrate projects are on track with the commitments made at the start of the year). Being behind on budgets can be seen to suggest that you are behind on the delivery of your initiatives.
• There is infinitely more demand for IT than there is supply. And resource can be a constraint as well as money.

And our conclusions on this?

• Track your advocates – times when they join a new firm are one of your biggest opportunities
• Don’t discount certain channels of communication just because of what you read
• Campaign all the time because timing is critical – and monitor/research key accounts to make sure you are aware of weaknesses in competitors’ (or your own!) positions
• Work hard at getting quality data for the business as well as IT, and at multiple levels. You’ll never know exactly who the right person to campaign to is at first touch – the word of a trusted lieutenant can carry more weight than a CIOs own views!
• Consider propositions about easing resourcing pain as much as financial pain

A recent survey of CMOs by Jupiter and Verse Group asked a group of marketers about their top priorities for 09 and found that traditional approaches to marketing are increasingly broken. Two major themes run through the findings:

First, that  “an across-the-board push for greater marketing accountability is adding increased pressure on marketers to prove the worth of their marketing dollars.”

Second, that “as media consumption shifts online, marketers must find a better way to manage brands across multiple platforms in order to create a coherent brand experience across all platforms and customer touchpoints.”

The following are the top priorities CMOs and senior marketers have for 2009, according to the study:  

1. Achieving measurable ROI on marketing efforts.
2. Developing marketing programs that integrate online and traditional media.
3. Translating brand experience across different touchpoints.
4. Cutting marketing budgets without cutting performance.
5. Optimizing portfolio of brands.

The research uncovers a big gap between marketers’ priorities and their current perceptions of existing tools. Nearly three-quarters (71%) say that managing their brand across multiple platforms is a big challenge for their organization and that there is a large gap between need and capability. This echoes many of the themes from John Quelch’s recent article in Harvard Business Review (see previous post).

We’re currently creating a presentation download which will lay out how continuous opportunity generation programmes can get more from budgets and increase marketing performance. Drop us a line if you would like to register to receive it.

John Quelch’s article for Harvard Business Review highlights new research that says CMOs are holding onto their jobs longer, suggesting that closer alignment with the CEO is the main reason. In a broadly B2C focused article Quelch says, “The best CMOs stay low-key and aim to make the CEO, who is often from a non-marketing background, comfortable becoming the chief cheerleader for the brand.”

He goes on to argue that, if the CMO is hanging around longer, then the recession has actually elevated his or her standing. He thinks there are 4 things that the CEO is looking to marketing/the CMO for in the recession. We’ve taken these thoughts and reinterpreted them for B2B marketers.

Revised approaches to segmentation.

For B2B, marketers need to focus more around client and target data, and allow that to inform and ultimately drive the communications strategy. By targeting at a micro-vertical or even account-based level, comes become more relevant and more compelling for the recipient.

Core benefits re-emphasised in the face of recession-driven price sensitivity.

For IT marketers especially, it’s important in a fast-paced world to remember your company’s heritage. Look for strong messages, opinion-leading thoughts that reinforce the good things about what you’re already known for, and apply them to the world’s new challenges. In doing so you engender a sense of trust and reliability.

 More from the marketing budget.

Focus on what matters, consolidate core programmes and make sure they are operating at an optimum level. Invite your team, the salespeople and your suppliers to think with you on this issue.  Adopt a strategy of long term, continuous campaigning where there’s a blend of added value communications with stronger “call to action” pieces to build up a value exchange and increase credibility. This has the added advantage of providing you with multiple opportunities to contact, increasing the likelihood that your timing will be just right.

Digital consideration

We’re completely channel agnostic at The Marketing Practice but it can’t be denied that the recession is accelerating the move online. It’s cheaper, faster and increasingly well-used by even senior decision makers. However, don’t fall into the trap of the move online only being about email marketing and monitoring click throughs, or on the other hand a broad “skittles-esque“ web 2.0 programme. The online move needs to be planned and executed like a traditional programme. Who are we targeting, what are they interested in? Where will they go online to find it and how do we meet them there without looking like an ‘advertiser’. More on how to do this here.

It’s worth noting that at the end of his article Quelch points out that there will be “two major, and lasting, ramifications” of the recession for marketers - “increased financial accountability, and the financial literacy that comes with it.” Now’s the time to start tackling the thorny issues of how programmes can make a difference to profitability and profitable growth.

I recently had the opportunity to interview Andy Dalglish of Circle Research. Our conversation focused on the ways that B2B marketers can use research to assist in lead generation, and Andy kindly summarised his views by highlighting the 6 ways research can be used to support lead generation programmes.

1.   By identifying the structure and dynamics of decision making. Research amongst your target market can reveal who is involved in decisions, who really drives supplier choice and the key criteria against which suppliers are assessed.  It can also reveal the communications channels they’re exposed to and their preferences in this respect.  This means you’ll invest your time, effort and budget speaking with the right people, through the right channels and positioning your offer in the most compelling manner

2.   By providing discussion openers. The key to beginning a relationship is of course having something relevant to say and people are always interested in themselves.  And what better an introduction than to offer a potential client some research based insights into their marketplace, their organisation’s position in it and how your service can enhance their position.  For example, you could conduct a piece of research amongst your target market’s customers/prospects to determine brand perceptions, satisfaction, loyalty, etc. then use the findings from this research to secure a meeting with one of those brands

3.   By positioning your product or service in a compelling way. We all know the marketing adage ‘people don’t buy products they buy solutions to their issues’.  Clichéd perhaps but true.  Research to explore the business issues impacting your target market allows you to then frame your products or services as solutions to these issues (i.e. “I know margins are being pushed down in your sector at the moment and my product typically increases profitability by x%” rather than “Can I come and talk to you about my product”)

4.   By mapping the competitive landscape.  Research can reveal who the competition is (both direct and substitutes) and how these brands are perceived relative to yours.  This knowledge allows you to adopt a differentiated positioning

5.   By bringing prospects to your door. The media read by your target market will bite your hand off if you offer them solid research into a topical issue in a way that provides genuine insights (i.e. not Metro type headlines along the lines of ‘we surveyed 40 risk managers and found their favourite song was…’).  By positioning yourself as a thought leader in this way and including some sort of call to action (e.g. contact us for the full research report) you can cause prospective customers to make the first move and better still, they are qualified leads whose area of interest is apparent

6.   By preserving and growing what you already have. There’s a danger that in the pursuit of new customers the latent potential in existing customers is overlooked.  Amongst other things research amongst key accounts can highlight emerging competitive threats (are other suppliers making a play for your key accounts?) and identify hidden opportunities (are you always on the shopping list?  If not, how can you ensure you are? Have you been pigeonholed and your other capabilities not recognised?).  The very act of this type of research exercise also helps secure your customer base as it shows you listen.

This just-released interview in Sales & Marketing magazine between the EVP of Miller Heiman and Brian Carroll (author of the book “Lead Generation for the Complex Sale” ) makes for good reading for marketers facing the “not enough leads” scenario.

When asked what the common pitfalls are in getting sales and marketing working effectively together, Brian points out that high level consulting and reoganisation is no substitute for a joint go-to-market strategy and getting on with it. “Companies sensing the need for cooperation and teamwork sometimes believe they can perform miracles by reorganizing the sales and marketing departments. But, really what matters most is having everyone on the same page, integrated and viewing each other as pro forma customers.”

He goes on to suggest that it’s often not lead generation that’s the issue, it’s the handover of too many “non-ready” leads which stop salespeople from focusing on the really good ones.

“Ask most executives what salespeople need to help them sell and they will say, “More leads.” I’d say your salespeople don’t want more leads. They want more effective selling time. In my experience, the average sales force spends around 20% of their time actually doing productive selling (up to 40% if you’re great). Don’t get me wrong, lead generation is still extremely important to salespeople. But we need to realize that the extreme time pressure salespeople face—especially those with a complex sale—requires them to ignore “early,” “is not immediately relevant,” and [focus on] ”highly likely” to produce revenue.”

We call this the “knee jerk” effect – short termist campaigning built without a long term, continous approach and no central (and jointly agreed with sales) data or content assets. it produces a quick flow of poor-quality or unready leads. By investing in lead generation for the long term you get a more controllable flow of sales-ready leads, and sales people with more time to spend on selling.

It’s not a quick fix… but the investment in the data, content and joint working approach will bear fruit in the long term whilst driving down marketing costs and increasing reputation and awareness.

A point to note: Miller Heiman’s industry reports, based on their 2008 Sales Best Practices Study, are worth the (free) registration to download. Opportunities to Achieve Revenue Growth in the Technology Industry and Business Services Sales Organisations: Catalpulting off Previous Successes are especially relevant for readers of this blog and feature some interesting sales best practices that marketers can align with.