Tuesday, December 16, 2014

IDC's 10 Predictions for CMOs for 2015

What does IDC predict for tech CMOs and their teams in 2015 and beyond?
Our recent report IDC FutureScape: Worldwide CMO / Customer Experience 2015 Predictions highlights insight and perspective on long-term industry trends along with new themes that may be on the horizon. Here's a summary.

1: 25% of High-Tech CMOs Will Be Replaced Every Year Through 2018
There are two dominant drivers behind the increased CMO turnover over the past two years. One driver centers on the cycle of new product innovations, new companies, and new CMO jobs. The second (but equal) driver centers around the required "fit" for a new CMO in the today's tumultuous environment and the short supply of CMOs with transformational skill sets.

Guidance: Everyone in the C-Suite needs to "get" modern marketing to make the CMO successful.

2: By 2017, 25% of Marketing Organizations Will Solve Critical Skill Gaps by Deploying Centers of Excellence
The speed of marketing transformation and the increased expectations on marketing have left every marketing organization in need of updating its skill sets. In the coming years, CMOs will not only have to recruit and train talent but also create organizational structures that amplify and share best practices. Leading marketing organizations will become masters of the centers of excellence (CoE).

Guidance: Get out of your traditional silos and collaborate.

3: By 2017, 15% of B2B Companies Will Use More Than 20 Data Sources to Personalize a High-Value Customer Journey
Personalization requires a lot of data. CMOs do not suffer from a lack of data — quite the contrary. Today's marketer has dozens, if not hundreds, of sources available. However, companies lack the time, expertise, and financial and technical resources to collect data, secure it, integrate it, deliver it, and dig through it to create actionable insights. This situation is poised for dramatic change.

Guidance: One of your new mantras must be – "do it for the data".

4: By 2018, One in Three Marketing Organizations Will Deliver Compelling Content to All Stages of the Buyer's Journey
CMOs reported to IDC that "building out content marketing as an organizational competency" was their #2 priority (ROI was #1). Content marketing is what companies must do when self-sufficient buyers won't talk to sales people. While it's easy to do content marketing; it's hard to do content marketing well. The most progressive marketing organizations leverage marketing technology and data to develop a buyer-centric content strategy.

Guidance: Remember that it’s the buyer's journey – not your journey for the buyer.

5: In 2015, Only One in Five Companies Will Retool to Reach LOB Buyers and Outperform Those Selling Exclusively to IT
IDC research shows that line-of-business (LOB) buyers control an average of 61% of the total IT spend. LOB buyers are harder to market to and are even more self-sufficient than technical buyers. To succeed with this new buyer, tech CMOs must move more quickly to digital, incorporate social, broaden the types of content, and enable the sales team to maximize their limited time in front of the customer.

Guidance: Worry less about how much video is in your plan and worry more about your message.

6: By 2016, 50% of Large High-Tech Marketing Organizations Will Create In-House Agencies
Advertising agencies have been slow to recognize the pervasive nature of digital. While many digital agencies exist and many have been acquired by the global holding companies, these interactive services typically managed as just another part of the portfolio of services the agency offers. Modern marketing practitioners realize that digital is now in the DNA of everything they do and are ahead of their agencies.

Guidance: Don't wait. Take the lead.

7: By 2018, 20% of B2B Sales Teams Will Go "Virtual," Resulting in Improved Pipeline Conversion Rates
Buyers won't talk to sales until late in the game. But for B2B companies, a completely digital solution may not be answer either. Some solutions are so new, so complex, or customized that a human concierge must intervene. Enter the "virtual" sales rep. This emerging hybrid of marketing, sales and tech service is a far cry from the historical "me and my quota" sales rep. Think of them as a B2B Genius Bar. CMOs must equip the virtual sales rep with success tools.

Guidance: Find the fledgling "virtual" reps in your company and make them heroes – and make yourself one in the process.

8: By 2017, 70% of B2B Mobile Customer Apps Will Fail to Achieve ROI Because they Lack Customer Value-Add
Apps are maturing rapidly into utilities that can greatly enhance customers' personal and professional lives. Brand value is being redefined by value-added services such as monitoring, reporting, best practices, communities, and guidance. Nearly every brand has an app today. But not all apps are created equal. Some apps provide tremendous value, and others will end up on the island of mobile misfits. 

Guidance: Allow your competitor's app to be the "go to" resource and you are essentially locked out of that consumer's life.

9: By 2018, 25% of CMOs and CIOs Will Have a Shared Road Map for Marketing Technology
The CMO and CIO relationship will shape the future of both roles. CMOs must accept that their infrastructure is more effective when it is integral to enterprise IT. CIOs must reinvent their missions to support unprecedented innovation in line-of-business IT.  CMOs and CIOs must work together for vendor selection, data governance, backup and recovery, security, and a host of other issues.

Guidance: CMO and CIO should jointly lobby the CEO to overinvest in marketing technology.

10: By 2018, 20% of B2B CMOs Will Drive Budget Increases by Attributing Campaign Results to Revenue Performance
With the sharp lessons of the Great Recession still fresh in their minds, CEOs and CFOs want to make sure every dollar leads to results. If marketing can achieve full revenue attribution promise, this will not only to satisfy demands for accountability but will result in budget increases. But marketing's path to full attribution requires a complex orchestration of technology, data, and marketing skills and can't be accomplished without partnerships with IT, sales, and finance.

Guidance: Start with attribution of individual campaigns and tactics and eventually you'll build this Holy Grail.

Tuesday, December 2, 2014

Meet the Virtual Sales Rep

Robert sits in an office near Provo, Utah at what looks like the console of an air traffic
controller. But instead of directing jets through the airspace, he's using Twitter to guide a software company's buyer through her decision-journey. Part marketer, part sales, part tech service, Robert is one of an emerging breed of "virtual" sales reps. Could this be the dream team that B2B has been waiting for?

The B2B "Genius Bar"® as a Role Model

The "virtual" sales rep role in its ideal form provides the personalized, anticipatory, service of a five-star hotel. Think of it as the B2B version of an Apple Genius Bar – using virtual tools. The Apple executive team modeled the Genius Bar after Ritz-Carlton's customer service. Hallmarks of this exemplary concierge service include a personal touch; a warm, friendly, attitude; and attention to satisfying customer needs at every step. Sales expert Anneke Seley says the "virtual" sales rep culture is a far-cry from the historical "me and my quota" rep.

Sales teams are finally coming to grips with digital age facts. The culture shift recognizes that engagement must be sensitive to the appropriate stage of the buyer's decision-journey. "Buyers aren't ready to buy until they are ready to buy". Marketers all know by now that buyers prefer self-sufficiency and they avoid talking to sales people until the decision-journey is substantially complete.  IDC research shows that for tech products averages this distance averages about 50%. Now sales is also starting to appreciate that buyers are alienated when by placed prematurely into the arena. At the same time sales leaders don't want to waste an expensive sales resource on someone who isn't ready to buy.

Digital May Not be Enough

Content marketing is what companies must do to fill the gap when buyers won't talk to traditional sales people.  Content marketing is a hugely important communication strategy and companies will not be successful without mastering it.

Yet, for B2B companies, a completely digital engagement solution may not ever be the right answer. For one thing, content marketing capabilities in most companies is still ramping. Even when content marketing becomes excellent, digital may never be personal enough. Some B2B solutions are so complex, customized, or require so much trust that a human must intervene for the buyer to be truly served.  It may also be in the vendor's best interest to involve a good sales person early. One tech CMO told me that although the company could offer eCommerce, a human touch tripled the size of the deal.

The End of One-to-One

Sales must abandon the image of the lone hero acting alone. A distinguishing feature between traditional sales and marketing has been that sales covered one-to-one interactions and marketing covered the one-to-many. The evolving "virtual" sales model is somewhere in-between. Maybe we can call it some-to-one.

Because the Apple's Genius Bar is not just a person. It's a chain of orchestrated interactions constructed not only with people but also with data, technology, knowledge, content, training, and culture. It takes a village to offer five-star concierge service.

This shift means new responsibilities for marketing. To engage in a buyer-sensitive way, marketing must provision "virtual" sales reps, train them, and merge them into new types of campaigns. These new reps will be power users of CRM and marketing automation. They will be adept at social selling. They will depend on behavioral data and pitch-perfect content. Depending on the company business model they may generate leads, qualify them, develop business, close sales, or offer technical buying assistance.

IDC believes that the challenge of aligning with sales and instituting sales enablement will seem like baby steps compared to the full-on role integration of this new function. CMO's should jump on this trend now.

Genius Bar is a registered trademark of Apple, Inc.


Friday, November 21, 2014

What is Content Marketing? IDC's Definition of Content Marketing

If you looked away for a split second you may have missed the rise of Content Marketing from "buzz word" to "must have". In fact, at the beginning of 2014 CMOs at the largest technology companies reported that "Building out content marketing as an organizational competency" was the 2nd most important initiative, only behind measuring ROI. Since then, they have responded by putting more budget, staff, and energy into the area, yet there is still confusion around the topic. What exactly is Content Marketing? Is it a type of marketing asset? Is it a process or a technique? Or something else?

IDC's CMO Advisory Service, has seen this issue first hand and to help remedy the situation the group has  published a document, What Is Content Marketing? IDC Defines One of Marketing's Most Critical New Competencies. Included within is a formal definition for Content Marketing.

IDC's Definition of Content Marketing

Content marketing is any marketing technique whereby media and published information (content) are used to influence buyer behavior and stimulate action leading to commercial relationships. Optimally executed content marketing delivers useful, relevant information assets that buyers consider a beneficial service rather than an interruption or a "pitch."

What is Included Within Content Marketing?


A definition is a great start, but the question that follows is, "What is, and is not Content Marketing?" To help marketers become more grounded in this definition of content marketing the CMO Advisory Service has also published a guide for "Types of Marketing Assets." In the graphic below you can see the break out of marketing assets into three categories:
  • Content Marketing Assets 
  • Product Marketing Assets
  • Corporate Marketing Assets
Each is important to the company and within the marketing mix, but only content marketing is new in purpose and new in form. Also, key to remember is Content Marketing Assets are not replacements for Product Marketing Assets or Corporate Marketing Assets.


Why Content Marketing, Why Now?


For decades the marketing team produced communication assets about its products, services, and about the company itself.  Before the digital era, sales people were the primary persuaders and these assets were used as sales tools. Marketing conducted some persuasive outreach, primarily through direct mail. However, this little thing called the internet changed everything - as digital technologies have progressed, buyers have become increasingly self-sufficient, the contribution of the sales person has eroded. This erosion leaves a gigantic gap in a vendor's go-to-market capability. How do companies build these relationships with buyers if they won't talk with sales people? Content Marketing fills this gap.

At IDC we believe that marketers must continue work to keep pace with their buyers. To be successful, not only is agility required, but clear guidelines and processes on how to execute new and exciting practices like Content Marketing.

Sam Melnick is Senior Reasearch Analyst with IDC's CMO Advisory Service, follow him on Twitter: @SamMelnick

Friday, October 17, 2014

IDC's Worldwide Marketing Technology 2014-2018 Forecast: $20 Billion and Growing Fast

Organizations worldwide will spend approximately $20.2 billion on software solutions for marketing in 2014. The marketing software market is expected to grow to more than $32.3 billion in 2018. It will be one of the fastest-growing areas in high tech, with a compound annual growth rate (CAGR) of 12.4%. Over the five years from 2014 to 2018, organizations cumulatively will spend $130 billion on software for marketing departments. This forecast includes a wide range of solutions in four broad categories: interaction management, content production and management, data and analytics, and marketing management and administration. (For more information see Worldwide Marketing Software Forecast 2014-2018: $20 Billion and Growing Fast, IDC # DOC #251902, October 2014.)

Worldwide Marketing Technology Spending by Category, 2014–2018

                                                                          Source: IDC 2014

The emergence of Marketing as a Service (MaaS)

While innovation continues, the era of consolidation has begun. Many acquisitions have been made by software industry majors to bring together key pieces of the marketing and advertising software landscape. This activity has been coincident with the transformation of the larger IT industry to what IDC calls the 3rd Platform where technology and maintenance services are offered "as a service." This model is a game changer for marketers and marketing software suppliers. Even though almost all current marketing solutions are cloud based, they are just beginning to be integrated enough to provide seamless operations and reporting across the diverse activities of a large marketing organization. Furthermore, newer platform solutions can be leveraged by third parties such as agencies and marketing BPOs to provide value-added services in a bundled offering, which IDC calls "marketing as a service." (For more information on MaaS, see Marketing as a Service (MaaS): A New Route to Market, IDC #247587, March 2014)

5 Action Items for CMOs
  1. Construct a technology road map based on business drivers to guide investment
  2. Consolidate applications into a platform with data and process level integration to improve efficiency and effectiveness
  3. Work to integrate marketing technology with the enterprise infrastructure to reveal deeper insights into customers, partners, and market opportunities
  4. Establish inter-disciplinary teams and processes to combat the silos point solutions can create
  5. Learn to leverage corporate IT to improve vendor management, due diligence, and governance practices
For more information, please contact me at gmurray(at)idc(dot)com. 

Thursday, October 9, 2014

9 New Terms Modern Marketers will want to Know

New practices need new language to describe them. When IDC's smart, experienced, forward-looking, clients and special guests got together at our recent Marketing Leadership board meeting in New York, I jotted down these terms they used as particularly useful for describing their challenges and ideas.
  1. Product selfie: A type of content where it's all about the product and nothing about the buyer/user (Guidance: Keep to a minimum – you know why.)
  2. Snackable content: Short-form, easy-to-consume, desirable, content (Guidance: As attention spans get shorter, you'll need more of this.)
  3. Brand-as-a-Service: Offering beneficial, free, and minimally-self-serving, customer service that extends your brand promise. Examples: USAA offering car-buying services, Pantene offering tips for creating celebrity hair-styles during an Academy Awards social media campaign; (Guidance: Powerful! Find yours.)
  4. Budget slush fund: Holding back 5-15% of your budget so that you can respond with agility to unexpected opportunities such as a social media fire or an idea from a regional marketer that is worth testing. (Guidance: Great strategy to you get beyond the same-old, same-old, but you'll need a seeking and vetting process to make sure this doesn't go to waste)
  5. Off-domain: Use of non-owned capabilities such as content syndication, outside point-of-view, 3rd-party voices; curated content, and community/social/partner media or events  (Guidance: This fast growing practice will require a different mind-set than the traditional "owned and ads first"  Start with some pilots now and plan to expand.)
  6. Hunting in the zoo: A derogatory term for the frustrating propensity for sales people to prospect only in well-known territory and ignore leads from new companies (Guidance: While I'm reluctant to promote language that contributes to the marketing - sales conflict, I think we have to give witness to this reality.  It's not likely to change without CEO intervention, so build reality into campaign and metrics – work with it or around it.)
  7. Multi-screening: Consumers are learning to use multiple devices in complementary ways to achieve their goals. Example: Using a mobile phone to research and buy a product seen at a tradeshow kiosk. (Guidance: One more reason to get beyond your internal org structure and think about what customers are trying to accomplish. Break down silo's within marketing. But also bring marketing closer to all company functions that touch customers.)
  8. RACI: This acronym (pronounced "racy") stands for Responsible, Accountable, Consulted, and Informed. A RACI grid is used to clarify roles in cross-functional practices. (Guidance: Accept that almost all tasks today can't be accomplished in a vacuum. RACI is an indispensible tool for helping people work across silos)
  9. Orchestrate: Arrange and mobilize multiple diverse elements to achieve a desired result. (Guidance: Think of campaign managers as orchestra conductors who lead groups of experts each playing an instrument critical to the beauty of the concert. This model is more in tune (pun intended) with agile marketing than traditional top-down management.)

Tuesday, October 7, 2014

2014 Tech Marketing Budgets Showing Strength - Led by the Shift to the 3rd Platform

IDC's CMO Advisory Service recently completed our 12th annual Tech Marketing Benchmark Survey and just last week had our client and participant webinar readout. With the results in, tech marketers should be excited; there are clear signs that marketing is gaining more respect, more responsibility, and more budget! For the first time since 2006, Tech Marketing Budgets will increase at the same rate as revenues (3.5% increases for budgets, 3.7% for revenues.) Coupled with this, the absolute number of companies increasing their marketing budgets continues to rise. Party time, right?

Well, maybe not quite.

The tech industry has hit an inflection point around the 3rd platform (cloud, social, mobile, and big data & analytics.) In fact, IDC is projecting that within the next 5+ years the 3rd platform will cannibalize revenue growth from the 2nd platform. Meaning, not only will 3rd Platform driven products account for all the revenue growth within the tech industry, but they will take market share from what was previously 2nd platform revenue.

What does this mean for marketers? 

A lot actually, tech marketers are in the fortunate (or fortuitous) position of being smack in the middle of this shift to the 3rd platform. Not only are the technologies being marketed transforming, but the day-to-day job of a marketer is being greatly affected. This is because the true impact of this shift is within next generation types of applications, industries - and ultimately - capabilities that the 3rd platform provides. Moving forward every marketer and every marketing organization must be updating skills, technologies, and processes. A lot is at stake and budgets are a clear indicator;  3rd platform marketing organizations are being funded at 6 to 8 times greater than 2nd platform organizations (see image below). The largest tech companies in the world are shifting to the 3rd platform and often (as they should be) the marketing organizations are exerting significant energy to be a large part of this company-wide shift. IDC sees moving to the 3rd platform as mandatory and marketing is no exception.


What can a marketing organization do to make sure they succeed in transforming rather than succumbing to turmoil?


  1. Understand which parts of the business are 3rd platform: These are the areas that should be supported with stronger marketing spend.  These are the areas to integrate new marketing technologies and processes in first. These areas will make or break your entire company. Use this opportunity to position marketing as a driver for the company's future success!
  2. Invest in 3rd platform staff and programs: Supporting 3rd platform products is key, but marketing also needs to shift the way it operates. This means investing in 3rd platform technologies and skills like: marketing technology, sales enablement, content marketing, and data & analytics. These areas create leverage and efficiencies for the entire marketing organization. In short, putting the right people, in the right positions, with the right tools  gives your marketing organization its greatest opportunity for success. 
  3. Have a plan, but be realistic and be patient: The larger the company the more time should be allowed for this organizational shift to the 3rd platform. Marketing leaders must definitively set the end vision for their 3rd platform marketing organization, but at the same time must have the patience to see the entire process through. The path may be non-linear and there will certainly be failures and misdirection along the way, but despite the time and effort needed, the end results will pay back the marketing organization (and company) many times over. 

If you are interested in how your company's marketing organization stacks up as this shift to the 3rd platform continues, reach out to me directly at smelnick (at) IDC (dot) com.

You can follow @SamMelnick on Twitter

Monday, September 15, 2014

Social Buying: The Importance of Trusted Networks during the B2B Purchase Process

Everyone's hot to leverage social selling and social marketing. But what about the other side of the equation? Do B2B buyers use social media for purchasing support?  An IDC study says yes! And contrary to common assumptions, it’s the senior executives who are most enthusiastic.

The most senior buyers are the most active social media users. IDC's Social Buying Study, completed in February 2014 in collaboration with LinkedIn (Slideshare version) studied the online social practices and preferences of B2B buyers. The study concluded that 75% of the B2B buyers studied and 84% of C-level/vice president executives use information from social media and interaction on social networks to make purchase decisions. I'll be talking about this study at the sold-out Sales Connect conference later this week.

Social buying improves decision confidence.  The operative benefit in social buying is the ability to access trusted networks to increase confidence in high-stakes decision making. When asked about their agreement with various statements about social media, respondents gave these top three answers:
  • They want to use vendors that have been recommended by people they know
  • They want to work with sales people who have been referred to them
  • Their social networks are critical for checking references

Social media make accessing trusted networks easier. Buyers have long trusted their offline professional networks for this purpose. Online social networks improve access to trusted existing networks and open up networks that more easily extend beyond traditional boundaries. The bigger the buying decision, the more important social networks become. The study found that social buying correlates with buying influence. The average B2B buyer who uses social networks for buying support is more senior, has a bigger budget, makes more frequent purchases, and has a greater span of buying control than a buyer who does not use social networks.

B2B buyers use different types of social resources at different stages of the decision-journey. It's important not to lump all social media into one big stew of a category. "Social" is a media attribute that enables peer-to-peer audience participation. Some media are highly social and others not at all. 

  1. Early Stage: when buyers are exploring whether to solve their problem, they favor news-type resources. Industry-specific media are #1, internet search (a socially-curated information service) is #2, and microblogs like Twitter are #3.
  2. Middle Stage: when buyers are evaluating solution options, 3rd-party experts become #1, industry-specific media are #2, and internet search is #3.
  3. Final Stage: Online professional networks (e.g., LinkedIn) are buyer's the #1 preferred information source in the final stage of the purchase process, when stakes are highest. This final stage is the riskiest stage because by this time, buyers are teetering on the brink of commitment where they will soon reap the benefits of a great decision or plunge into the abyss.  It's at this point that they most need the confidence advice provided by their professional network. Online network services like LinkedIn make this easy. Third-party recommendations are #2 and topic-specific communities become #3.
ESSENTIAL GUIDANCE
  • Relationship building, referrals, and recommendations are shifting online, so make social marketing and social selling a priority. Social marketing and social selling are not responsibilities that can be relegated to a special team low in the organization. Marketing executives should consider social aspects to be an integral attribute of all campaigns. Sales professionals and others in key customer-facing roles need to be active on social networks. At best, companies will miss an important opportunity to connect and at worst could incur real damage.
  • Respect the context of social interactions. Understand that when using the digital channels, buyers are seeking access to their trusted networks for information to increase decision-making confidence. Social channels are not simply a new avenue for spamming or cold-calling. Instead, each individual must earn his or her place within the trusted network of people that buyers will invite to participate in the purchase decision.