How to Optimize Demand - The CMOs Next Frontier
Transcript of How to Optimize Demand - The CMOs Next Frontier
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OPTIMIZINGDEMAND
TheCMO’sNextFron1er
AdamNeedles–ChiefStrategyOfficer,ANNUITAS,Inc.–TwiDer:@abneedles
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ANNUITASCLIENTSWITHMATURE, OPTIMIZEDPERPETUALDEMANDGENERATIONPROGRAMSDELIVERLEAD-TO-REVENUERESULTSTHATARE4-10XINDUSTRYAVERAGES.
TwiDer:@abneedles
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HOWCANYOUOPTIMIZEYOURDEMANDGENERATIONEFFORTSSOTHATTHEYOUT-PERFORM?
TwiDer:@abneedles
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DEMANDGENERATIONMATURITY
TwiDer:@abneedles
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DEMANDGENERAT ION MATURITY
ON L Y 2 7% HAVE MATURE D EMAND G ENERAT ION P ROGRAMS
Source:ANNUITAS,Inc.,“2016B2BEnterpriseDemandGenera1onSurvey.”
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• Directresponse• Vendorpush• Outboundoriented• Periodic,short-term
• “PerpetualDemandGeneraTon”• Buyerpull• Inboundoriented• Alwayson,sustainable
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DEMANDGENERAT ION MATURITY
MATUR I T Y S P E C TRUM
MoreMaturity
LessMaturity
TacTcalDemand StrategicDemand
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DEMANDGENERAT ION MATURITY
G E T T I NG TO ‘ P E R P E TUA L D EMAND G ENERAT ION ’
DemandEngine DemandProcess
PersonaOne
PersonaTwo
PersonaThree
+
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OPTIMIZINGDEMAND
TwiDer:@abneedles
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DEMANDGENERAT ION
ANA L Y T I C S / O P T IM I Z A T I ON I N V E S TM EN T S G ROW I NG T H E F A S T E S T
Source:Adobe,“FourEssen1alElementsforDigitalMaturity,”2016.
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WHATDODEMANDGENERATIONKPIs NEEDTOTELLUS?
TwiDer:@abneedles
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OPT IMIZ ING DEMAND
WHAT DO D EMAND G ENERAT ION K P I s N E ED TO T E L L U S ?
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• Howcanwebesureofthequalityandsustainabilityofourdemandgenera1onefforts?
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OPT IMIZ ING DEMAND
WHAT DO D EMAND G ENERAT ION K P I s N E ED TO T E L L U S ?
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• Howcanwebesureofthequalityandsustainabilityofourdemandgenera1onefforts?
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OPT IMIZ ING DEMAND
WHAT DO D EMAND G ENERAT ION K P I s N E ED TO T E L L U S ?
• DemandCreaTonEfficiency
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• Howcanwebesureofthequalityandsustainabilityofourdemandgenera1onefforts?
• HowcanwebesureweareopTmizingourmixofcontentandchannelsagainstthe‘true’journeyofourtargetedbuyer?
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OPT IMIZ ING DEMAND
WHAT DO D EMAND G ENERAT ION K P I s N E ED TO T E L L U S ?
• DemandCreaTonEfficiency
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• Howcanwebesureofthequalityandsustainabilityofourdemandgenera1onefforts?
• HowcanwebesureweareopTmizingourmixofcontentandchannelsagainstthe‘true’journeyofourtargetedbuyer?
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OPT IMIZ ING DEMAND
WHAT DO D EMAND G ENERAT ION K P I s N E ED TO T E L L U S ?
• DemandCreaTonEfficiency
• BuyerCriTcalPathAlignment
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• Howcanwebesureofthequalityandsustainabilityofourdemandgenera1onefforts?
• HowcanwebesureweareopTmizingourmixofcontentandchannelsagainstthe‘true’journeyofourtargetedbuyer?
• Howcanwebesureourmarke1ngeffortsarereallyproviding‘netlic’topipelineandrevenue?
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OPT IMIZ ING DEMAND
WHAT DO D EMAND G ENERAT ION K P I s N E ED TO T E L L U S ?
• DemandCreaTonEfficiency
• BuyerCriTcalPathAlignment
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• Howcanwebesureofthequalityandsustainabilityofourdemandgenera1onefforts?
• HowcanwebesureweareopTmizingourmixofcontentandchannelsagainstthe‘true’journeyofourtargetedbuyer?
• Howcanwebesureourmarke1ngeffortsarereallyproviding‘netlic’topipelineandrevenue?
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OPT IMIZ ING DEMAND
WHAT DO D EMAND G ENERAT ION K P I s N E ED TO T E L L U S ?
• DemandCreaTonEfficiency
• BuyerCriTcalPathAlignment
• RevenueImpact
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OPT IMIZ ING DEMAND
THE E I GHT ‘ COR E K P I s ’ F OR OP T IM I Z I NG D EMAND
• Engaged-to-QualifiedLead
• QualifiedLead-to-Opportunity
• Engaged-to-ClosedWon
• Pipeline/RevenueMarke1ngSourced
• Pipeline/RevenueMarke1ngInfluenced
• Channel/ContentElas1city
• Channel/ContentVelocity
• Mul1-touchADribu1onofChannel/ContentROI
DemandCreaTonEfficiency BuyerCriTcalPathAlignment RevenueImpact
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DEMANDCREATIONEFFICIENCY
TwiDer:@abneedles
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DEMANDCREAT ION EFF IC IENCY
6 7% HAVE A DOCUMENTED L EAD MANAGEMENT F RAMEWORK
Source:ANNUITAS,Inc.,“2016B2BEnterpriseDemandGenera1onSurvey.”
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DEMANDCREAT ION EFF IC IENCY
TH E E I GHT ‘ COR E K P I s ’ F OR OP T IM I Z I NG D EMAND
• Engaged-to-QualifiedLead
• QualifiedLead-to-Opportunity
• Engaged-to-ClosedWon
• Pipeline/RevenueMarke1ngSourced
• Pipeline/RevenueMarke1ngInfluenced
• Channel/ContentElas1city
• Channel/ContentVelocity
• Mul1-touchADribu1onofChannel/ContentROI
DemandCreaTonEfficiency BuyerCriTcalPathAlignment RevenueImpact
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DEMANDCREAT ION EFF IC IENCY
• Engaged-to-QualifiedLead
• QualifiedLead-to-Opportunity
• Engaged-to-ClosedWon
DemandCreaTonEfficiency
K P I : “ ENGAGED - TO -QUA L I F I E D L E AD ” % CONVER S ION
• Efficiency of multi-channel Engagement, Nurturing and Lead Qualification• LSC
ENG>QL=#QualifiedLeads/#Engaged*100%
ProgramAge:3Quarters ProgramAge:8Quarters
6.39% 14.0%
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DEMANDCREAT ION EFF IC IENCY
• Engaged-to-QualifiedLead
• QualifiedLead-to-Opportunity
• Engaged-to-ClosedWon
DemandCreaTonEfficiency
B E N C HMAR K S : “ E NGAG ED - T O - QUA L I F I E D L E A D ” % C ONV E R S I ON
ProgramAge:3Quarters ProgramAge:8Quarters
B2B Benchmark Targets• Direct-response / ‘Push’ demand generation: 4-6%• Perpetual DG / ‘Buyer-pull’ demand generation: 8-16%
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DEMANDCREAT ION EFF IC IENCY
• Engaged-to-QualifiedLead
• QualifiedLead-to-Opportunity
• Engaged-to-ClosedWon
DemandCreaTonEfficiency
K P I : “ QUA L I F I E D L E AD - TO -OPPORTUN I T Y ” % CONVER S ION
• Quality of Qualified Leads being produced by demand generation; rate of acceptance of these Qualified Leads going to sales to build Opportunity pipeline
• LSCQL>OPPTY
=#OpportuniCes/#QualifiedLeads*100%
ProgramAge:3Quarters ProgramAge:8Quarters
43.5% 45.7%
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DEMANDCREAT ION EFF IC IENCY
• Engaged-to-QualifiedLead
• QualifiedLead-to-Opportunity
• Engaged-to-ClosedWon
DemandCreaTonEfficiency
B E N C HMA R K S : “ Q U A L I F I E D L E A D - T O - O P P O R T UN I T Y ” % C O N V E R S I O N
ProgramAge:3Quarters ProgramAge:8Quarters
B2B Benchmark Targets• Direct-response / ‘Push’ demand generation: 30%• Perpetual DG / ‘Buyer-pull’ demand generation: 40-50%
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DEMANDCREAT ION EFF IC IENCY
• Engaged-to-QualifiedLead
• QualifiedLead-to-Opportunity
• Engaged-to-ClosedWon
DemandCreaTonEfficiency
B E N C HMA R K S : “ Q U A L I F I E D L E A D - T O - O P P O R T UN I T Y ” % C O N V E R S I O N
• Quality of Qualified Leads being produced by demand generation; rate of acceptance of these Qualified Leads going to sales to build Opportunity pipeline
• LSCQL>OPPTY
=#OpportuniCes/#QualifiedLeads*100%
ProgramAge:3Quarters
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DEMANDCREAT ION EFF IC IENCY
• Engaged-to-QualifiedLead
• QualifiedLead-to-Opportunity
• Engaged-to-ClosedWon
DemandCreaTonEfficiency
K P I : “ ENGAGED - TO - C LO S ED WON” % CONVER S ION
• Balanced, end-to-end view of how effective up-stream demand generation activities are on driving downstream revenue; adds win rate to funnel conversion perspective
• LSCENG>CW
=#ClosedWon/#Engaged*100%
ProgramAge:3Quarters ProgramAge:8Quarters
0.44% 3.58%
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DEMANDCREAT ION EFF IC IENCY
• Engaged-to-QualifiedLead
• QualifiedLead-to-Opportunity
• Engaged-to-ClosedWon
DemandCreaTonEfficiency
B ENCHMARKS : “ ENGAGED - TO - C LO S ED WON” % CONVER S ION
ProgramAge:3Quarters ProgramAge:8Quarters
B2B Benchmark Targets• Direct-response / ‘Push’ demand generation: 0.2-0.85%• Perpetual DG / ‘Buyer-pull’ demand generation: 1-4%
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BUYERCRITICALPATHALIGNMENT
TwiDer:@abneedles
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BUYER CR IT ICAL PATH AL IGNMENT
BUY ER E X P ER I ENC E THAT ‘ E X C E ED S ’ I S NOT TH E NORM
Source:Forrester,”Expecta1onVs.Experience:TheGood,TheBad,TheOpportunity,”June2016.
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“CMOs...reportthatofalltheindividualstheyreachwiththeirmarke1ngmessages,fewerthan18percentareactuallyinthemarketfortheproductorserviceonoffer.”
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BUYER CR IT ICAL PATH AL IGNMENT
8 2% O F D EMAND G E N E R A T I ON I S ‘W RONG P L A C E , W RONG T IM E ’
Source:AccentureInterac1ve,”WasteorWin?TheCaseforJust-in-1meMarke1ng,”2016.
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BUYER CR IT ICAL PATH AL IGNMENT
B U Y E R J O U R N E Y A L I G NM E N T L E A D S T O M A R K E T I N G ‘ O U T P E R F O RM A N C E ’
Source:SalesforceResearch,”2016StateofMarke1ng.”
142016 State of Marketing
Salesforce Research
High performers Moderate performers Underperformers
Top Marketing Teams Commit to the Customer JourneyFrom adopting strategy to actively mapping touchpoints, high-performing marketing leaders make the customer journey a priority.
In our 2016 research, “customer journey” is defined as all interactions that customers have with a company’s brands, products, or services across all touchpoints and channels. High-performing marketing teams are 8.8x more likely than underperformers to strongly agree that they have adopted a customer journey strategy as part of their overall business strategy.
But top marketers know that identifying the customer journey is an ongoing pursuit. Whether a marathon or a series of sprints, well-executed journeys must be contextual to the moment and personalized to individual customers. While 65% of high performers strongly agree their company has adopted a customer journey approach, 61% are actively mapping their journeys.
Among high-performing teams, 88% say a customer journey strategy is critical to the success of their overall marketing.
Has adopted a customer journey strategy as part of its overall business strategy
65%
61%
7%
6%
23%
22%Is actively mapping the customer journey
High-performing vs. Underperforming Teams
Percentage Who Strongly Agree with Each Statement
8.8xmore likely to strongly agree
9.7xmore likely to strongly agree
Practices of High-Performing Marketing TeamsTop Marketing Teams Win with a Customer Journey Strategy01
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BUYER CR IT ICAL PATH AL IGNMENT
TH E E I GHT ‘ COR E K P I s ’ F OR OP T IM I Z I NG D EMAND
• Engaged-to-QualifiedLead
• QualifiedLead-to-Opportunity
• Engaged-to-ClosedWon
• Pipeline/RevenueMarke1ngSourced
• Pipeline/RevenueMarke1ngInfluenced
• Channel/ContentElas1city
• Channel/ContentVelocity
• Mul1-touchADribu1onofChannel/ContentROI
DemandCreaTonEfficiency BuyerCriTcalPathAlignment RevenueImpact
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• Channel/ContentElasTcity
• Channel/ContentVelocity
• Mul1-touchADribu1onofChannel/ContentROI
BuyerCriTcalPathAlignment
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BUYER CR IT ICAL PATH AL IGNMENT
KP I : “ CHANNE L / CONT ENT E L A S T I C I T Y ”
• Probability that a Prospect’s interaction with a given Engagement Channel or Content Offer will lead to a Closed Won outcome
• ECHANNEL/CONTENT
=#ClosedWon/#ChannelorContentInteracCons*100%
ChannelElasTcity ContentElasTcity
SCWX
SCWX
SCWX
SCWX
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• Channel/ContentElas1city
• Channel/ContentVelocity
• Mul1-touchADribu1onofChannel/ContentROI
BuyerCriTcalPathAlignment
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BUYER CR IT ICAL PATH AL IGNMENT
• Time from the point where a Prospect interacts with a given Engagement Channel or Content Offer to the point where (s)he becomes Closed Won
• VELCHANNEL/CONTENT
=AVERAGE#DAYS(DateofClosedWon–DateofChannelorContentInteracCons)
ContentVelocity
ChannelVelocity
K P I : “ CHANNE L / CONT ENT V E LOC I T Y ”
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• Channel/ContentElas1city
• Channel/ContentVelocity
• MulT-touchAmribuTonofChannel/ContentROI
BuyerCriTcalPathAlignment
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BUYER CR IT ICAL PATH AL IGNMENT
KP I : “ CHANNE L / CONT ENT E L A S T I C I T Y ”
• Distributing the results from a Closed Won result across all of the Engagement Channels and/or Content Offers consumed during the course of the buyer's journey
• ROIATTRCHANNEL/CONTENT
=1/Total#ofChannelorContentInteracCons*$SpendperChannelorContent
MulT-touchAnalysis
SCWX
SCWX
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MulT-touchAmribuTon/ROI
• Channel/ContentElas1city
• Channel/ContentVelocity
• MulT-touchAmribuTonofChannel/ContentROI
BuyerCriTcalPathAlignment
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BUYER CR IT ICAL PATH AL IGNMENT
KP I : “ CHANNE L / CONT ENT E L A S T I C I T Y ”
• Distributing the results from a Closed Won result across all of the Engagement Channels and/or Content Offers consumed during the course of the buyer's journey
• ROIATTRCHANNEL/CONTENT
=1/Total#ofChannelorContentInteracCons*$SpendperChannelorContent
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REVENUEIMPACT
TwiDer:@abneedles
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REVENUE IMPACT
~ 6 5% S A Y ‘ P I P E L I N E ’ / ‘ R E V E NU E S ’ A R E T O P M E A SU R E S O F S U C C E S S
Source:ANNUITAS,Inc.,“2016B2BEnterpriseDemandGenera1onSurvey.”
11 What is your PRIMARY measure of success for Demand Generation programs/campaigns?
This indicates that many demand generation marketing departments are still grappling with adopting a standard set of Key Performance Indicators that allow them to accurately measure their demand generation success.
0 20 40 60 80 100
Opportunities Delivered, 8.0%
Opens, Clicks, Impressions, etc., 6.2%
New Activity at Known/Target Accounts, 3.5%
No Consistent Measurement, 3.5%
15%
Revenue Generated, 20.4% Net New Leads, 16.8% Qualified Leads DeliveredPipeline Generated, 23.9%
Other, 2.7%
Pipeline Generated 23.9%
Revenue Generated 20.4%
Net New Leads 16.8%
Qualified Leads Delivered 15%
Opportunities Delivered 8%
Opens, Clicks, Impressions, etc. 6.2%
New Activity at Known/Target Accounts 3.5%
No Consistent Measurement 3.5%
Other 2.7%
As in years past, the measurements that are being applied to demand generation are not aligned to what respondents stated as their overall objectives. While the measurement of contribution to pipeline and revenue are an indication of a quality lead, 15% of firms stated that they have a separate metric for quality leads (a 14% decrease from last years survey) delivered yet 81% it was their number one goal.
7D E M A N D G E N E R A T I O N O V E R V I E W
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REVENUE IMPACT
TH E E I GHT ‘ COR E K P I s ’ F OR OP T IM I Z I NG D EMAND
• Engaged-to-QualifiedLead
• QualifiedLead-to-Opportunity
• Engaged-to-ClosedWon
• Pipeline/RevenueMarke1ngSourced
• Pipeline/RevenueMarke1ngInfluenced
• Channel/ContentElas1city
• Channel/ContentVelocity
• Mul1-touchADribu1onofChannel/ContentROI
DemandCreaTonEfficiency BuyerCriTcalPathAlignment RevenueImpact
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• Pipeline/RevenueMarkeTngSourced
• Pipeline/RevenueMarke1ngInfluenced
RevenueImpact
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REVENUE IMPACT
K P I : “ P I P E L I N E / R EV ENUE MARKE T I NG SOURC ED ”
• Tracking the pipeline Opportunities and Closed Won revenue that are originally attributable to a marketing interaction
• CONTRDEMAND
=#DGSourcedOpportuniCes(ClosedWon)/#TotalOpportuniCes(ClosedWon)*100%
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• Pipeline/RevenueMarkeTngSourced
• Pipeline/RevenueMarke1ngInfluenced
RevenueImpact
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REVENUE IMPACT
B ENCHMARKS : “ P I P E L I N E / R EV ENUE MARKE T I NG SOURC ED ”
B2B Benchmark Targets• Direct-response / ‘Push’ demand generation: 2.5-6.5%• Perpetual DG / ‘Buyer-pull’ demand generation: 6.5-20%
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• Pipeline/RevenueMarke1ngSourced
• Pipeline/RevenueMarkeTngInfluenced
RevenueImpact
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REVENUE IMPACT
K P I : “ P I P E L I N E / R EV ENUE MARKE T I NG I N F LU ENC ED ”
• Tracking the pipeline Opportunities and Closed Won revenue that are originally attributable to a marketing interaction
• CONTRDEMAND
=#DGInfluencedOpportuniCes(ClosedWon)/#TotalOpportuniCes(ClosedWon)*100%
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• Pipeline/RevenueMarke1ngSourced
• Pipeline/RevenueMarkeTngInfluenced
RevenueImpact
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REVENUE IMPACT
B EN CHMAR K S : “ P I P E L I N E / R E V E NU E MAR K E T I N G I N F L U EN C E D ”
B2B Benchmark Targets• Direct-response / ‘Push’ demand generation: 4-20%• Perpetual DG / ‘Buyer-pull’ demand generation: 15-60%
3-6xsourced
3-6xsourced
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‘OPERATIONALIZING’OPTIMIZATION
TwiDer:@abneedles
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HOWCANYOUDRIVECONTINUOUSOPTIMIZATION?
TwiDer:@abneedles
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OPERAT IONAL IZ ING OPT IMIZAT ION
HOW CAN YOU DR I V E CONT INUOUS OP T IM I ZA T ION?
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• Full,closed-loop‘pointvisualizaTon’ofperformance§ Focusoncontent,channel,LDTandsales‘levers’§ Iden1fyhow/whereincrementaladjustmentscanimpacttheen1relead-to-revenueequa1on
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OPERAT IONAL IZ ING OPT IMIZAT ION
HOW CAN YOU DR I V E CONT INUOUS OP T IM I ZA T ION?
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• Full,closed-loop‘pointvisualizaTon’ofperformance§ Focusoncontent,channel,LDTandsales‘levers’§ Iden1fyhow/whereincrementaladjustmentscanimpacttheen1relead-to-revenueequa1on
• CadenceofreviewandopTmizaTonacTonitems§ Bi-monthly§ Monthly§ Quarterly
49
OPERAT IONAL IZ ING OPT IMIZAT ION
HOW CAN YOU DR I V E CONT INUOUS OP T IM I ZA T ION?
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• Full,closed-loop‘pointvisualizaTon’ofperformance§ Focusoncontent,channel,LDTandsales‘levers’§ Iden1fyhow/whereincrementaladjustmentscanimpacttheen1relead-to-revenueequa1on
• CadenceofreviewandopTmizaTonacTonitems§ Bi-monthly§ Monthly§ Quarterly
• Governanceandaccountability–withsome‘reciprocity’§ Marke1ng§ Sales§ Finance
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OPERAT IONAL IZ ING OPT IMIZAT ION
HOW CAN YOU DR I V E CONT INUOUS OP T IM I ZA T ION?