CIO Magazine’s article yesterday on whether IT can help retailers survive 2009 and thrive in 2010 pulls together its own research with that of Forrester, AMR, Northeastern University and Retail Systems.

It concludes that retailers should be using the current climate to challenge the status quo and make changes that can impact the bottom line within 12 months. CIO Magazine says that chief execs are asking IT to contribute to customer acquisition, customer retention and to drive innovative offerings. The article suggests that retailers are, or should be, focusing spend on 5 areas that can meet this brief:

• merchandise assortment and space planning, allocation and optimisation;
• regular price, promotion and markdown optimisation;
• instore systems such as point of sale, kiosks and mobile technologies aimed at improving the customer experience;
• cross-channel merchandising that improves channel visibility and connectivity and;
•  business intelligence that facilitates action.

IDC ’s 2009 tech sales barometer has just been released. Entitled Selling in 2009: 10 ways to find, win and keep the money it features the findings of its barometer study alongside its recommendations for tech sales people. Its key findings are summarised below, but the long and short of it is that sales teams are investing more in inside sales and demand generation techniques, whilst realising that they need to be more aligned with marketing on lead gen programmes. If there was ever an opportunity for marketing to work with sales more closely, as highlighted in my interview with Ron Rose of HP last week, or in the post on getting sales and marketing to collaborate on business development, it’s now.

-in 2009 tech sales teams will be expected to do more with less; as a result demand generation will be a major focus – most teams are shifting more budget to inside sales

-sales organisations that bolster dedicated investments in lead quality and demand generation will be rewarded with significantly higher sales productivity

- the research highlighted that sales teams were increasing investment in sales enablement, lead qualification and demand generation across the board, with budgets for sales’ travel and training being slashed

-shared metrics was highlighted as the area that sales and marketing are still least aligned, with sales people giving an alignment mark of  only 25 out of a possible 100.

Understanding how your audience will read and interact with your thought-leadership content is crucial in developing senior relationships and building reputation. A recent study into IT decision-makers’ reading habits highlighted a couple of useful points, and our thoughts on how to exploit them:

95% of people pass on interesting content to colleagues. 91% claimed to read more online now than 2 years ago. Package up information appropriately for the medium – keep online information tip- and list-based and use this as teaser content to lead your audience to longer downloads or to request hard copies of pieces with a longer narrative. The beauty of the teaser information is that it can be resused in myriad ways, all leading back to your central content: circulated throughout the IT online sites using comments fields, forming part of email communications, linked from LinkedIn profiles and group discussions etc.

Only 13% do work-related reading at work. The other 87% do it at home and when commuting (61% at home) Online information consumption is typically in small units, different from offline ”compendium style” reading. Whilst CD drive guides and mp3 downloads for commuters are worth considering – Marc Bresseel of Microsoft mentions on his blog what he’s taking to read on the plane on the way to his hols for example – why not send key contacts novel-sized collections of your best thought-leadership or top 5 most popular downloads.

Clearly the content needs to be compelling in the first place for these tips to work. But extra effort thinking through the content’s hazardous journey through the audience jungle will be well rewarded.

The full research findings are available from Vanson Bourne. A final point to note: a massive 99% of respondents include online sources when looking for information needed to support an IT decision (with 61% only doing a Google search for it)  See this earlier post about the importance of your organic search strategy and how buyers find you

Ever wondered what sales would do in your shoes with your budget? Want to know what sales people think are the most effective types of marketing programme? Ron Rose of HP Exstream, career IT salesman tells all…

How did you get started in IT, and what path has your career taken?

I got into IT by accident rather than design – a variety of early roles led to working for a company producing software and hardware to process cheque remittances. I had a mentor there who spotted the sales potential I had and I then took a sales role within a legal software company. At the time, software was urgently needed by legal firms, conveyancing levels were high, as was debt collection volume. Solicitors needed to computerise their time recording, start to use email, log and track documents – it was the ideal industry for technology. The company I worked for was acquired by Sanderson, one of its major products, Minder, monitored debt recovery for customers like Barclaycard. Tallyman, also a debt management product, was then developed by Sanderson. I was involved in the launch of the product and went on to sell it to customers like Lombard and British Gas and Barclays. I went on to join the London Bridge Software sales operation (later acquired by Fair Isaac) selling their Debt Manager product. After launching and running my own software reseller business for 3 years, I joined HP’s Exstream division about a year ago.

What has shaped the way you work with marketing?

During my time at Sanderson, I was actively involved in the development for a debt management software product called Tallyman. This was my first experience of developing a joint go-to-market strategy with the marketing team, and was instrumental in shaping the way I work with marketing departments now. I saw the power of merging the two disciplines during the Tallyman launch. Sales and marketing were heavily involved in all aspects, from the creation of the position and message through to the creative aspects, direct marketing and follow up. I had to work through the whole process: how do we express what this software does? How do we make the differences it has versus the competition clear? How can we get the message out? I developed an appreciation that getting all of that right is not easy. Throughout the process, sales and marketing were not two separate entities, and were never seen as such – perhaps it is the nature of a new product launch that it clarifies and makes urgent what needs to be done. As a result, we had such a dependency on each other to make Tallyman a success that I developed a deep understanding of and commitment to the marketing process.

The second major factor was an experience at London Bridge. In conjunction with the marketers, we created a joint go-to-market plan for Debt Manager. The plan was designed to support the sales process along the length of the sales funnel and sales and marketing worked together on this. Sales drove the intel from the perspective of what clients were feeling and needing, and marketing drove the positioning and messaging to attract the right type of people. They also provided the engine room to execute the programme. It was an integrated campaign that took place over the course of a year or so, and included multiple elements from seminars and thought-leadership to lead nurturing and more gentle contact activity. There was no formal “handover” point; more colleagues working together to develop a market and generate quality interest. It re-energised a whole market for London Bridge, made the product relevant to people’s challenges brought in great opportunities and have us a number of excuses to go back to people.

What changes have you seen in the way that sales and marketing work together since your experiences at Sanderson?

I’ve seen quite big changes. Marketing is less a department and more a process – more a science. In my experience, marketing teams have always been concerned with lead generation, but it used to be in the direct response arena. The marketing teams would send follow up letters and collateral after the salesman’s cold call. It’s more proactive now, plus lead generation is not the be-all-and-end-all, it’s a component of a much wider discipline.

Where can gaps between sales and marketing arise?

I’ve seen this in every IT organisation. There seems to be a cynicism, a kind of barrier, between sales and marketing people. I’m not sure why this arises, but in my view most marketing people seem very willing to engage in the lead generation process. Perhaps it happens because sales people just aren’t incentivised to engage with marketing. Sales training is also quite narrow – it doesn’t teach marketing engagement, which could be really helpful.

Poor mapping back to corporate objectives can often be to blame. The sales plan, the marketing plan and joint GTM plans have to back directly into the business’ strategy. Sales must sell what they have now, they can’t sell the future. Marketing have a more difficult balancing act; supporting now’s sales with tomorrow’s market and business development.

What’s the best example of marketing working well with you/the sales team?

It has to be the experience of the seminar campaign programme at London Bridge for Debt Manager. Why? Because in creating the GTM strategy we really questioned what we were doing. We reinvigorated a great product by building on its heritage and developed content that people wanted access to. We generated leads, all the time positioning us far enough from competitors that we were able to engage on our own terms. The programme enhanced our credibility as a company and the content we generated fed into the entire sales approach: sales pitches and bid support reinforced the messages and helped us close the deals.

What are the biggest opportunities sales and marketing have to work more closely together?

They are absolutely everywhere. It’s a question that’s very different because of the different cultures organisation to organisation. However, as a general point I would say that marketing people will get great knowledge and a lot of respect from getting more involved in the sales process itself. If they get out and meet customers, understand the products backwards, they can then get more involved in supporting the sales funnel right to the end. For example, a lot of bid documentation and presentations should have a marketing eye cast over them. Positioning, messaging, consistency – they’re critical in bids and marketing has a lot to add in this environment. I don’t believe in a designated handover point between sales and marketing, they should work together through the length of the funnel.

What would you spend marketing’s budget on if you had it?

If you asked 100 sales people, I suspect that 90 of them would say “corporate hospitality”. Partly because it’s a day out for them, and partly because they are incentivised around closing deals and the opportunity to build relationships is really valuable for them. Personally, I’d spend it on solid product awareness – being known by the right people for the right stuff. I’d want to make sure that I was automatically on the list to receive relevant RFIs; a seat at the table for big bids.

What are the most valuable things sales people get from marketing?

Lead generation without a doubt. It’s worth saying that lead numbers from marketing don’t impact my views of marketing effectiveness. My expectation as a salesperson is that I need and expect to be out there generating leads. If marketing’s doing its job well, that should be straightforward for me. Any leads I receive from marketing are a welcome bonus.

Market research is right up there too. There’s some great information and intelligence about competitors and key accounts around but I don’t always have time to track it all down. Marketing’s digest of this and view on what it means are really valuable.

The positioning, messaging and referenceability material is vital too.

What can sales teams do to work better with marketing?

The biggest battle is that sales need to believe in marketing. But sales teams are under pressure too, and the onus has to be on marketing to sell what it does and demonstrate the value. Best way to do that? It has to be to generate leads and work back from there. Marketers should work hard to develop joint GTM plans with sales and allocate a shared responsibility for its outcomes.

This photo was taken in Asda Walmart in Swindon on Saturday. This is about 1/3 of the checkout queues that stretched up and down the front of the store. As the man behind me in the queue commented “I’ve never seen it like this, not even at Christmas”. He’d driven nearly an hour to get to the store by the way.

If it’s indicative of Asda’s trade as a whole then it’s a very good reason to undertake sub-vertical targeting. “Retail” as a whole might be very challenging right now, but targeting the sub-verticals, the grocery and discounting areas, could prove very fruitful. 

The Sunday Times featured this article on the formation of smart meter bidding consortiums.

The government wants every home to have a smart meter by 2010 (which wil monitor electricity use digitally, as well as allow two-way communication between supplier and home) and the Sunday Times claims that O2, Vodafone, BT, Logica, Accenture and Capgemini are all limbering up.

Ofgem is likely to run the tender, claims the paper, with the contract running from 2010 to 2020.

The CIO Executive Council has released its CIO starter kit. In terms of getting inside a CIO’s head and understanding their  and how they work, it’s a fantastic resource.

The kit is made up of 20 documents created by leading CIOs, and features a research report on best practices, a guide on how to map IT to business drivers and what a CIO should do in their first 90 days.

Here we’ve provided a simple question set which will help guide your proposition development when creating campaigns for complex B2B offerings. This is the first in a three-part post.

What is a proposition? In basic terms, it’s how we communicate what benefits your customer gets for the money they pay you. It normally involves a USP (unique selling point) which is the strongest and most differentiating factor in your favour.  But in campaign design we need to take that one step further. i.e. You might be selling consulting services, but how do we package up and take to market exactly what your end purchaser gets? Not just benefits but what the realisation of those benefits means to the person you’re selling to?

The point about a campaign proposition is that, however great your product/service proposition is, it has no intrinsic right to be read. People are bombarded with promises of ROI – it’s not a simple question of beating every other percentage quoted that week.

The campaign proposition is what earns the right for the real proposition to get a hearing.

In attempting this, what’s important is how these resonate with the end purchaser. Finding the likely emotional resonance for the customer’s purchasing decisions is really important. Even when buying decisions are made for “practical” reasons, it will be the way that the buyer felt (or will feel) about that practicality that was important in the decision-making process. It’s about knowing what’s top of the target’s mind – both in terms of challenges and emotions (Challenge: I need a collections solution that costs less to maintain and has the functionality to help us collect more debts. Emotion: I’m worried about all the risk involved in replacing our legacy system).

And we use this to realise that however much more money we’re promising that our collections solution can help them collect (which will be the proposition they use to make the business case), what we need to get across first is that we can take away to risk of migration.

We use some of the following questions to get to the campaign proposition:
• What does the audience need to think about us before they will listen to our proposition?
• What’s the emotional connection between where they are now and the promise of where the proposition will take them? What persuades people to buy in the real world? (If it doesn’t ring true to you, or interest you, it probably won’t to anyone else either.)
• What’s the single part of what we have to offer that is most instantly relevant to them?
• Or is it about offering a safe pair of hands? Telling the sometimes uncomfortable truth? Delivering consistent innovation?
• The proposition should have defined their needs, but what emotion sits behind these? How are we going to get them emotionally bought into it?
• Are there any fundamental misconceptions about the company, product, service, industry or area that we need to address?
• What do we need them to think about the client before they will consider the proposition?
• Why is it that the client gets repeat business? What does the customer need to see above and beyond a physical solution?
• What do we offer above and beyond a specific solution and the associated benefits? Could be guidance, thought leadership, practicality, understanding of their business…
• What are competitors doing that gives them an edge in the relationship with prospects?
• What are the most challenging bottlenecks between awareness and sale?
• What are the most interesting anecdotes, “factoids” or war stories that have come out during the research and workshops?
• What’s the problem the target audience is grappling with on its way into work each day?

Remember, you are trying to build a position here for the company’s product or service around positive and engaging content. Simpler (although not necessarily shorter) is often better in this environment. Keep boiling down the proposition until you are left with something compelling, interesting and emotive.

Just because we’ve got their attention doesn’t mean they will rush to make contact and become a sales-ready lead. That’s where the next level of proposition comes in – the proposition that persuades them to take the next realistic action on the path to buying. Look out for the next post on ‘Selling the next step’.

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.

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.