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4
WHY DIGITAL
MARKETING IS
RELEVANT AND HOW
IT CREATES VALUE
5
Digital marketing can help reach influential stakeholders earlier
to generate more leads and improve win rate
*) Source: Corporate Executiv e Board (CEB) research f rom5,000+ B2B companies, 2007
**) Source: Forrester/Internet. Retailer Q3 2017 Global B2B Sell-Side Online Surv ey
Customers’ buying process is 57%
complete before outreach to sales*…
Customer due
diligence begins
Customer’s
first outreach to
supplier
Customer
purchase
decision
74%
62%
74% of B2B buyers
research at least half of
their work purchases online.
62% of buyers say they
can develop selection
criteria or finalise a
vendor list based solely
on digital content.
… and customers are heavily
influenced through digital channels**
57% complete
6
Bringing sales and marketing together throughout the buying journey
creates a more compelling customer experience
TRADITIONAL SALES AND MARKETING IN B2B ACCELERATED SALES AND MARKETING
Sales
Marketing
Marketing builds
awareness but with very
limited budget – primary
activities: maintain
website, prepare collateral
for trade shows etc.
Limited digital efforts (e.g.
content marketing,
marketing automation,
analytics).
Sales reps generate leads
through cold calls, fairs,
networking or seek out
tenders to bid on.
Limited implementation of
CRM/limited data
discipline.
Create
awareness
Engage
leads
Close
Retain
Marketing
Sales
Build awareness
with customer
pain-/gain-driven
content.
Re-expose people
who read content
and direct them to
a landing page to
obtain permission.
Nurture leads
through email and
retargeting with
curated content.
First sales call or
email to marketing-
qualified leads.
First meeting with
client. Insights
generated by
marketing applied
in sales pitch to
increase win rate.
Sales closes the
deal.
7
Through continuous value
proposition exposure of
stakeholders, your ability to
charge a price premium
increases.
Leads are qualified/sorted
= more of the right leads,
increasing sales efficiency.
Leads are nurtured closer
to a purchase decision
through exposure to content
relevant to their pains/gains.
More leads into the sales
funnel.
The marketing model must deliver measurable impact
– our approach improves sales funnel throughput in four ways …
ATTRACT
WARM UP
QUALIFY/SCORE
GROW
8
CASE STUDY
We developed white papers and ads tailored to subsegments in the target
audience
White papers Facebook/LinkedIn ads Google display ads
10
1 2 3 4
2B
Prospects were guided through a flow from ad exposure to sales call
11
STEP 1:
Target is exposed to relevant ad on LinkedIn and clicks on the ad.
1 2 3 4
Targeting: senior stakeholders in commercial/operationalpositions based on job titles
12
1 2 3 4
STEP 2A:
Target is redirected to HubSpot landing page and enters
information to access white paper or webinar invite. This is now a lead.
13
1 2 3 4
2B
Retargeting back
to landing page
STEP 2B:
If target does not enter information on landing page, the target
will be re-targeted with relevant content linking back to landing page.
14
1 2 3 4A B C D
Nurturing emails
STEP 3:
After sign-up on landing page, the lead receives email with
white paper. Three additional emails follow to further warm up the lead.
15
1 2 3 4
Calls from sales reps
STEP 4:
Lead is manually reviewed and, if lead is relevant, will receive a call
from sales rep using a dedicated script aligned with the sales process.
16
Funnel overview snapshot
Leads reached = leads we hav e talked to
Bottom funnel Form
submissions
Marketing-
qualified
leads
Leads
reached
2
3
Project
development
Interaction
held
Continuous
interaction
agreed
6
Contract
signed
4
5
7
Weeks
live
485
228
218
45%
47
21%
33
15%
6
13%
8
24%
1
17%
8
100%
0
3
75%
3
38%
0
0
0
0
14
12
1033 292 53 13 12 6 0
28% 18% 25% 92% 50% 0%
320
27
8%
14
52%
4
20%
4
100%
16
1
17
Estimated sales pipeline value is currently EUR 212K
Estimated
win chance
Estimated
yearly order size
Estimated years
as customer
Estimated
profitability
Estimated
pipeline value
Total
50% EUR 900k 2 years 19% EUR 171k
EUR
212K
25% EUR 150k 3 years 23% EUR 26kXX X
+
==
XX X =
25% EUR 100k 3 years 20% EUR 15kXX X =
+
18
CLV/CAC looks extremely promising – EUR 1 in yields EUR 8.5 out
For every EUR 1 we put in,
we get EUR 8.5 out.
CLV or customer lifetime value (per country)
is calculated as follows:
CLV = average lifetime in years x average
annual contract value x average gross margin
x win chance
So, the lifetime value is the gross profit that an
average customer drives of the customer’s
lifetime with the company.
In Sweden:
CLV = EUR 211’875
CUSTOMER LIFETIME VALUE
CAC or customer acquisition cost (per
country) is calculated as follows:
CAC = campaign ad spend + agency overhead
So, CAC is the investment in getting the
customers in, for which we get gross profit or
CLV in return.
In Sweden:
CAC = EUR 25’000
CUSTOMERACQUISITION COST
CLV
8.5
CAC
1
We applied our framework consisting of
6 building blocks of digital lead generation
Contentand flows
Which formats/messages
do we use for whom?
How do we get permissions?
Techsetup
Which tech setup do we need
to drive the flows?
How do we nurture leads?
Sales handover
How are leads delivered to sales?
How are leads followed up
on by sales?
Strategy
What are we trying to achieve
in the short and long term?
How do we measure success?
Targetaudience
and lead scoring
Who are we targeting?
How do we score leads?
Traffic generation
Through which channels
do we attract traffic?

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Digital Marketing Creates Value by Improving Sales Funnel

  • 1. 1
  • 2. 4 WHY DIGITAL MARKETING IS RELEVANT AND HOW IT CREATES VALUE
  • 3. 5 Digital marketing can help reach influential stakeholders earlier to generate more leads and improve win rate *) Source: Corporate Executiv e Board (CEB) research f rom5,000+ B2B companies, 2007 **) Source: Forrester/Internet. Retailer Q3 2017 Global B2B Sell-Side Online Surv ey Customers’ buying process is 57% complete before outreach to sales*… Customer due diligence begins Customer’s first outreach to supplier Customer purchase decision 74% 62% 74% of B2B buyers research at least half of their work purchases online. 62% of buyers say they can develop selection criteria or finalise a vendor list based solely on digital content. … and customers are heavily influenced through digital channels** 57% complete
  • 4. 6 Bringing sales and marketing together throughout the buying journey creates a more compelling customer experience TRADITIONAL SALES AND MARKETING IN B2B ACCELERATED SALES AND MARKETING Sales Marketing Marketing builds awareness but with very limited budget – primary activities: maintain website, prepare collateral for trade shows etc. Limited digital efforts (e.g. content marketing, marketing automation, analytics). Sales reps generate leads through cold calls, fairs, networking or seek out tenders to bid on. Limited implementation of CRM/limited data discipline. Create awareness Engage leads Close Retain Marketing Sales Build awareness with customer pain-/gain-driven content. Re-expose people who read content and direct them to a landing page to obtain permission. Nurture leads through email and retargeting with curated content. First sales call or email to marketing- qualified leads. First meeting with client. Insights generated by marketing applied in sales pitch to increase win rate. Sales closes the deal.
  • 5. 7 Through continuous value proposition exposure of stakeholders, your ability to charge a price premium increases. Leads are qualified/sorted = more of the right leads, increasing sales efficiency. Leads are nurtured closer to a purchase decision through exposure to content relevant to their pains/gains. More leads into the sales funnel. The marketing model must deliver measurable impact – our approach improves sales funnel throughput in four ways … ATTRACT WARM UP QUALIFY/SCORE GROW
  • 7. We developed white papers and ads tailored to subsegments in the target audience White papers Facebook/LinkedIn ads Google display ads
  • 8. 10 1 2 3 4 2B Prospects were guided through a flow from ad exposure to sales call
  • 9. 11 STEP 1: Target is exposed to relevant ad on LinkedIn and clicks on the ad. 1 2 3 4 Targeting: senior stakeholders in commercial/operationalpositions based on job titles
  • 10. 12 1 2 3 4 STEP 2A: Target is redirected to HubSpot landing page and enters information to access white paper or webinar invite. This is now a lead.
  • 11. 13 1 2 3 4 2B Retargeting back to landing page STEP 2B: If target does not enter information on landing page, the target will be re-targeted with relevant content linking back to landing page.
  • 12. 14 1 2 3 4A B C D Nurturing emails STEP 3: After sign-up on landing page, the lead receives email with white paper. Three additional emails follow to further warm up the lead.
  • 13. 15 1 2 3 4 Calls from sales reps STEP 4: Lead is manually reviewed and, if lead is relevant, will receive a call from sales rep using a dedicated script aligned with the sales process.
  • 14. 16 Funnel overview snapshot Leads reached = leads we hav e talked to Bottom funnel Form submissions Marketing- qualified leads Leads reached 2 3 Project development Interaction held Continuous interaction agreed 6 Contract signed 4 5 7 Weeks live 485 228 218 45% 47 21% 33 15% 6 13% 8 24% 1 17% 8 100% 0 3 75% 3 38% 0 0 0 0 14 12 1033 292 53 13 12 6 0 28% 18% 25% 92% 50% 0% 320 27 8% 14 52% 4 20% 4 100% 16 1
  • 15. 17 Estimated sales pipeline value is currently EUR 212K Estimated win chance Estimated yearly order size Estimated years as customer Estimated profitability Estimated pipeline value Total 50% EUR 900k 2 years 19% EUR 171k EUR 212K 25% EUR 150k 3 years 23% EUR 26kXX X + == XX X = 25% EUR 100k 3 years 20% EUR 15kXX X = +
  • 16. 18 CLV/CAC looks extremely promising – EUR 1 in yields EUR 8.5 out For every EUR 1 we put in, we get EUR 8.5 out. CLV or customer lifetime value (per country) is calculated as follows: CLV = average lifetime in years x average annual contract value x average gross margin x win chance So, the lifetime value is the gross profit that an average customer drives of the customer’s lifetime with the company. In Sweden: CLV = EUR 211’875 CUSTOMER LIFETIME VALUE CAC or customer acquisition cost (per country) is calculated as follows: CAC = campaign ad spend + agency overhead So, CAC is the investment in getting the customers in, for which we get gross profit or CLV in return. In Sweden: CAC = EUR 25’000 CUSTOMERACQUISITION COST CLV 8.5 CAC 1
  • 17. We applied our framework consisting of 6 building blocks of digital lead generation Contentand flows Which formats/messages do we use for whom? How do we get permissions? Techsetup Which tech setup do we need to drive the flows? How do we nurture leads? Sales handover How are leads delivered to sales? How are leads followed up on by sales? Strategy What are we trying to achieve in the short and long term? How do we measure success? Targetaudience and lead scoring Who are we targeting? How do we score leads? Traffic generation Through which channels do we attract traffic?