B2B State of Enterprise Demand Generation Report

State of Enterprise
B2B Demand Generation
A B2B focused survey in collaboration with
Marketo and B2B Marketing

2
State of Enterprise B2B Demand Generation
What is Demand Generation and why care? . 3
What does Demand Generation mean to you?. 4
Priorities . 5
Current state of adoption. 6
The role of technology. 9
Technology best practices. 11
Sales and marketing alignment. 12
Sales and marketing best practices. 15
Skills (and gaps) . 17
Skills best practices. 20
Measurement, reporting and ROI . 21
Measurement best practices . 23
The future?. 24
Closing summary. 26
Contents
In partnership with:
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3
The world of B2B marketing
is in a constant state of flux,
transition is the name of the
game, and keeping up can
be incredibly difficult…and
expensive.
Due to its constantly developing nature
Demand Generation is an extremely
difficult term to define. Its ambiguity
often leaves it open to interpretation
and this is regularly to the detriment of
wider understanding as different parties
come to different conclusions on its
meaning. When broken down to its
most basic level, Demand Generation
is considered to involve the application
of targeted marketing programs to drive
awareness and nurture prospects to a
buyer ready state.
The power of Demand Generation
activity remains understated. In the 21st
century where the consumer has all of
the information and all of the power, it
is an essential concept to pursue.
More traditional interruptive methods
of communication have become
redundant and outdated in the
modern marketing environment.
What is
Demand
Generation
and why
care?
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4
What does Demand Generation
mean to you?
Despite our best estimates we are
often left guessing where the next
transition will occur. It is this very
inability to prepare that leaves us
vulnerable and even scared of change.
This report should help you not only
gain some perspective on fellow
companies but also appreciate the
wider B2B marketing environment.
Using data returned from our B2B
focused survey in collaboration with
B2B Marketing and Marketo, we have
summarised the results and created
an easy to read document focused
upon the trends and general direction
of the industry.
Supporting
sales
4%
22%
Lead
generation
52% Marketing from first touch
point to beyond sale
22%
Driving revenue
growth
0% 10% 20% 30% 40% 50% 60% 70%
“ Only 4% of respondents are happy
with the performance of their
Demand Generation activity.”
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5
Priorities
The industries’ priorities are pretty
clear; with over 50% of respondents
identifying Demand/Lead Generation
as the most important element of the
organisation’s marketing function, the
importance of the nurturing process can
no longer be understated. The process
of creating and nurturing leads has now
become of paramount importance and
its value in modern B2B marketing is
finally being recognised.
Number 1 priority
for organisation’s
marketing function
Demand/lead
Generation
Brand awareness
Customer retention
Pipeline/revenue
generation
“ 50% of respondents identified
Demand/Lead Generation as the
most important element of the
organisation’s marketing function.”
Check out our Demand Generation
phrase book for a better appreciation
of the key B2B terms. Click here
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6
With so many activities encompassed
in Demand Generation, it can be
difficult to identify which are worth
prioritising. With that being said, some
justifiably take precedent over others.
Email marketing in particular dominated
the activity for the majority of those
sampled, with low cost entry and the
opportunity to send valuable messages
to a highly targeted audience; it’s easy
to see why.
The decision to use email marketing,
website activity and content marketing
over alternatives makes sense when
based upon investment in correlation
with delivery. ROI is unsurprisingly the
number one influencer. In the 21st
century results and data drive marketers
more than any other factor.
With the website and content
marketing coming in 2nd and 3rd it’s
becoming increasingly apparent that
inbound marketing techniques are
now a prominent element of Demand
Generation, relegating the likes of more
traditional marketing methods down
the list.
Interestingly few identify the typical
powerhouse of social marketing as a
key contributor, the effective application
of such a flexible tool still remains
relatively unfound in the realm of B2B.
Current state
of adoption
Which three marketing activities do
you use the most in your Demand
Generation activity?
Email Marketing 81%
Website 43%
Content Marketing 38%
Search Marketing 38%
Social Marketing Nurture Campaigns 38%
Trade-Shows 38%
Direct Mail 19%
Virtual Events (webinars) 14%
Telemarketing 10%
Social Marketing 5%
Online Advertising (display/banner) 5%
Other 5%
PR 0%
Print Advertising 0%
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7
Which two of these are the most
challenging elements of your
Demand Generation activities?
Lack of budget
Lack of time
Lack of understanding about the
process of Demand Generation
Lack of sales alignment
Skills gap
Lack of support from senior
management
No challenges
Other
Best Practices
n The best performing organisations
have a clear relationship between
tactics used and strongest
performing tactics as they
understand ROI
n Implement a regular review
process into the campaign
timeline to keep up-to-date on
measurement and refinement
opportunities
“ Lack of budget and time are biggest challenges for
companies running Demand Generation activities”
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n Alignment
n Best Practices
1 2
8
This report will cover four key areas of
Demand Generation; each of these has
been identified as a major element of
modern marketing activity and plays an
integral role in efficient operations.
1. Technology and IT
n Technological
Infiltration
n Marketing
Automation
n Best Practices
3. Staff and Skills
n Skill Gaps
n Best Practices
2. Sales and Marketing
4. Reporting and ROI
n Measurement
n Best Practices
3 4
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9
The Growth of Technology
Technology has become an integral
part of modern B2B marketing.
No longer is it merely an opportunity,
effective 21st B2B operations now
heavily rely on the capabilities of
these developing platforms.
Despite the newly found opportunities
technological progression offers, the
typical issues still rear their ugly head,
a lack of time and budget to fulfil
objectives are still major concerns.
Marketing Automation Platforms
Lead the Way
Marketing Automation Platforms
(MAPs) are an excellent example of the
technological progress the B2B industry
has made towards greater efficiency
and lead generation capabilities. 63%
of our respondents claimed to have
a MAP, with just over a third of those
not planning to implement one within
the next year. This was still below the
industry average (73%) reported by
Ragalix in 2014.
The Role of
Technology
63% of
our respondents
claimed to have
a MAP, below the
industry average
of 73%.
You may also like:
Marketing Automation
Selection Cheatsheet
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10
Unsurprisingly CRM claimed the top
spot for the most used technology
solution in Demand Generation activity.
This is to be expected in the 21st
century where customer organisation
and management are integral in the
nurturing process.
Over half of respondents signalled
intent to invest in new technologies
within the next 12 months. There is an
evident focus in particular on marketing
automation and CRM systems with
44% reporting implementation of either
technology in the near future.
What technology solutions support your Demand Generation activities?
Which of the following technologies do you plan to implement in the coming 12 months?
Email
marketing
software
Marketing
automation
CRM Web
analytics
None Other
(please specify)
8% 33% 21% 13% 42% 17%
Email
marketing
software
Marketing
automation
CRM Web
analytics
None Other
(please specify)
67% 63% 83% 71% 0% 8%
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11
Technology
best practices
Simplification is often identified as one
of the key benefits of technological
solutions. By automating standard
process and reducing the amount of
human input required both costs and
time required can be reduced.
Technological solutions can be incredibly
complex, it is often their ability to
manage complicated processes that
makes them so valuable. As a result
of this complexity testing is absolutely
crucial, with so many factors in play
you must ensure everything is fully
operational before putting it into action.
“ Enterprises see simplification as a
strategic ‘Must’ over the coming years.”
Best Practices
n Simplification – With more
systems, more platforms
and more channels, the best
performing organisations prioritise
simplifying activity.
n Technology should enable you
to meet objectives – not be the
focus of them.
n Don’t make assumptions, test
everything beforeimplementation.
Quality assurance is essential.
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12
Sales and marketing
alignment
Unsurprisingly, 100% of our respondents
claimed there was a desire for greater
alignment between their sales and
marketing departments. Alignment is
understandably a massive priority in the
industry, the value of such an intertwined
relationship is clearly recognised, however
the action required encouraging such
development seems less certain.
40% of those questioned did not have a
common definition of what constitutes as
a lead. Such miscommunication has the
potential to be extremely problematic as
different teams work towards different
goals and operational expectations.
A common understanding between
both sales and marketing is essential for
a smooth prospect transition process
between teams.
YES
Don’t
know
NO
Is there a common
understanding
between sales and
marketing on what
a lead is?
“ No respondents said they had full alignment
between sales and marketing.”
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13
0% 10% 20% 30% 40% 50%
5
4
3
2
1
No alignment = 1
Full alignment = 5
Achieving sales and marketing
alignment is absolutely essential
if your Demand Generation
activity is to fulfil its full potential.
Unfortunately this is not an easy
objective to achieve. Just 20% of
our respondents claimed to have
already achieved alignment.
Surprisingly more than 50% still lack
shared KPIs despite acknowledging
that consistency across teams would
improve alignment.
To assist in the alignment process
over 50% use sales enablement
toolkits and asset libraries. These
utilities can be particularly useful for
sales to reinforce their pitch in the
closing stages.
“ 50% of
organisations
say shared
KPIs between
sales and
marketing would
help alignment.”
Sales and Marketing Alignment
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14
Which, if any, of the
following do you
have in place to
encourage greater
alignment with sales?
Sales and marketing alignment is often
very difficult to achieve. There are
usually multiple obstacles preventing
progress and these can be difficult to
overcome. 40% of respondents claimed
a lack of time and sales credibility
ranked as the greatest barriers to
convergence. On top of that a lack of
KPIs was also cited as a major issue.
60%
50%
40%
30%
20%
10%
0%
Asset library
Agreed methodology for
ranking/prioritising leads
Structured selling process
Sales enablement initiatives
Other (please specify)
Prospect data
analysis reports
Service Level
Agreement (SLA)
Shared KPI/reporting
58% 21% 50% 21% 33% 38% 54% 4%
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15
Sales and
marketing
best practices
It’s clear for the most part there is
no preferential method of passing
leads to sales. The results show an
inconclusive split between the three
primary methods. This showcases
the diversity of the relationships
between marketing and sales within
different organisations.
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Leads ranked so sales can be
prioritised by sales team
All leads passed to sales,
regardless of quality
Only win-ready leads are
passed to sales
Other
(please
specifiy)
29% 29% 32% 10%
How are leads passed over to sales in your organisation?
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16
Marketing and sales
would be better aligned if:
We developed campaigns jointly
Communication was improved
We trusted each other
Expectations were realistic
Other (please specify)
The evenly distributed results in
the table emphasise that there is
no silver bullet in sales and marketing
alignment. Different companies will
find alignment with different solutions.
As this is purely a working relationship
issue, it cannot be categorically solved
with a single resolution.
Best Practices
n Creating a Service Level
Agreement
n Common/Shared KPIs
n Communication is the key
to success, both sales and
marketing teams must show
understanding and appreciation
for the other’s input and role.
You may also like
Sales Level Agreement Cheatsheet
Create Love Between Sales
and Marketing Guide
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17
Skills
(and gaps)
In regards to skills gaps the results
were conclusive, a massive 98% of
respondents claimed to suffer from
a skill gap in at least one key area
within the business.
With a majority of teams consisting of
less than 10 people it’s unsurprising
to see significant skill gaps emerging,
after all, your employees can only do
so much.
Our research illuminated two key
skills in particular that the consensus
agrees appear to be lacking in the
B2B market, content creation and
data analysis.
30+
11 – 20
Less than 5
21 – 30
5 – 10
How many members are there in your marketing team?
50%
40%
30%
20%
10%
0%
5% 18% 9% 41% 27%
“ 98% of respondents claimed to
suffer from a skill gap in at least
one key area within the business.”
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18
30%
25%
20%
15%
10%
5%
0%
Data analysis
Creativity
Buyer/market
understanding
Other (Please specify)
Technical capabilities
Content creation
We have no skills gap
27% 17% 10% 27% 12% 2% 5%
Which of the following skills gaps are most pronounced in your marketing team?
Key Points
n Over 50% said lack of skills
in data analysis
n Over 50% said lack of skills
in content creation
n Only 2% have no skills gap
n Under 5% state buyer/market
understanding
“Only 2% have no skills gap at all!”
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19
With an increased emphasis on quality
content and the importance of its role in
Search Engine Results Pages (SERPS),
it’s not unsurprising to see companies
identifying content creation as an area
of weakness. Google’s increasingly
stringent focus on quality has made
poor quality irrelevant copy almost
obsolete and as such the pressure is
greater than ever to produce valuable
and worthwhile content.
Data analysis skills are becoming
increasingly important in the modern
marketing environment with the
prevalence and rise of big data.
It’s more important than ever that
businesses have the personnel to cope
with such a powerful and influential
entity. Every decision made in the
modern market needs justification and
it is these data analysis professionals
who provide you with the evidence you
require to reinforce your choices.
“ Over 50% of marketers believe they
have a data analysis and content
creation skill gap in their team.”
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20
Skills
best practices
The business environment develops
at breakneck speed and as such it’s
essential you appreciate the evolving
skill sets required in the modern
marketing workplace. Unsurprisingly
skills gaps are becoming particularly
problematic in companies with small
teams and a low employee turnover as
they lack the flexibility to adapt to new
market conditions.
When the opportunity arises staff
turnover should be identified as an
opportunity to diversify the skill set
of your workforce and maximise
your flexibility.
More often than not if an activity is
too obscure or challenging for your
team to realistically manage, it may
be necessary to outsource and call in
specialists to ensure standards
are maintained.
“ Staff turnover should be identified as an
opportunity to diversify the skill set of your
workforce and maximise your flexibility.”
Best Practices
n Look to the future, ensure you
appreciate the skills that will be
integral to maintaining your
business in the years to come
n See staff turnover as an
opportunity to minimise skill gaps
and reduce the knowledge deficit
n Identify activities that can be
outsourced to add value.
Understand what makes sense
to do internally and externally
You may also like
Persona Development Cheatsheet
Buyer Journey Cheatsheet
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21
Measurement,
reporting and ROI
Over 66% of those questioned stated
they can measure marketing’s impact
on demand. It’s clear that metrics
are more accurate and provide more
actionable data than ever before.
We can now see and measure
effectively the correlation between
marketing activity and its associated
impacts. This unsurprisingly has
become a priority for many in the B2B
sector as it allows those involved to
determine what is, and isn’t working.
Sales
qualified
leads
50%
Value of
opportunity
pipeline
Web traffic
New names
acquired
Marketing
qualified
leads
Closed
revenue
value
46% 42%
25% 21% 21% 21%
Content
consumption
Other
(specified)
Appointments
set
Volume
deals/sales
closed
Form
completion
Clicks and
opens
Enquiries Volume of
opportunities
created
29%
13%
0% 0%
8% 8% 4%
“ Only 42% measure with
closed revenue won.”
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22
Metric Priority?
Unsurprisingly both Marketing Qualified
Leads (MQL) and Sales Qualified Leads
(SQL) came out on top when it came to
identifying the most valuable Demand
Generation metrics. In direct contrast,
only 8% recognised the consumption of
content as a high value metric, clearly
the lack of commitment such a metric
entails means that the resultant data is
often less than worthwhile. The most
effective and useful metrics provide
solid evidence to show prospects are
making progress in the buyer journey.
They highlight not only where the lead
sits but also the journey they have
taken to get there.
Lacking Collaboration
Less than 50% of respondents claimed
internal departments had a universal
definition for what constitutes as a
SQL. This is majorly problematic as a
communication disconnect at this stage
of the nurturing process is likely to lead
to unnecessary tension between both
marketing and sales departments. It
is essential both departments have a
mutual understanding to ensure only
those leads with genuine potential
make it through to sales.
Both Marketing
Qualified Leads (MQL)
and Sales Qualified
Leads (SQL) came out
on top when identifying
the most highly
valued metrics for
Demand Generation.
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23
Measurement
best practices
Data can be both our friend and our
enemy. With the power of CRM
systems and Google Analytics at our
fingertips, it’s easy to get lost in the
mountains of data up for grabs.
Of course the ultimate question you
need to ask yourself is, what does
this data do for me?
Reporting on data for the sake of it is a
pointless exercise. Just because there
happens to be new data available does
not necessarily mean it is useful. Only
items that are considered genuinely
actionable are worth reporting.
“ Marketers need to remember to feed the pig,
not just measure it!”
Best Practices
n Only focus upon the data
that actually offers insightful
information. Just because you
can measure everything doesn’t
mean you should
n Standardise dashboards
n Only report on items that
are actionable
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24
Showing what
marketing activities
drive sales
The future?
Looking to the future, respondents
expect improved revenue-touch
attribution to be the most
efficient indicator in driving better
marketing performance.
Lead scoring and qualification
Implementing
new systems
Time
Data quality
Digital
technology
expertise
Sales and marketing alignment
Creating engaging content
Digital
technology
expertise
Implementing
inbound
marketing
ROI
Refreshing digital campaigns
Understanding
the buyer and
market
Improving campaign conversion
Resources
Lead follow up
Building lead
nurturing programs
Lead scoring and qualification
Data quality
Time
Implementing
new systems
Lead follow up
Implementing
new systems
Showing what
marketing activities
drive sales
Implementing
inbound
marketing
Understanding
the buyer and
market
Refreshing
digital
campaigns
Creating
engaging
content
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“ Despite its value, Demand Generation
is not a silver bullet.”
29% 19%
25
B2B marketing is an extremely difficult
field to operate within. Maintaining
competitive advantage can be
exceptionally difficult and unless you
are prepared for the unknown, you’ll
never know if you’re walking down the
right path until it’s too late.
While the industries’ integration of
marketing technologies is promising
and reflects the flexibility now exhibited
by modern developments, there still
are companies unprepared to adapt
to the digital environment. It is these
businesses that will suffer as the
B2B marketing process becomes
increasingly automated and content
focused. The likes of Marketing
Automation Platforms (MAP) and
Customer Relationship Management
systems (CRM) are no longer an option
but are becoming mandatory parts of
the modern B2B nurture process.
The value of Demand Generation
cannot be understated, with the
proper application it can assist and
drive better value on a more regular
basis. Despite its value, Demand
Generation is not a silver bullet,
while it may be effective there are a
wide range of growing challenges.
Closing
Summary
What delivers better marketing value?
Marketing
technology
capability
Understanding
of our buyers
Alignment
between sales
and marketing
Nurture
streams
19% 33%
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26
60%
50%
40%
30%
20%
10%
0%
Guaranteed longer
term budgets
A combined sales
and marketing force
All encompassing
marketing technologies
Accurate revenue
touch attribution
Which of the following would allow you to drive better marketing performance?
Surprisingly none of the participants
claimed guaranteed longer term
budgets would actively encourage
better marketing performance.
“ Over 50% of
respondents said
they would be able
to provide better
marketing value if
accurate revenue-touch
attribution
could be achieved.”
20% 27% 0% 53%
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You may
also enjoy
reading:
5 Ways
Marketing
Automation
helps Sales
Enablement
Buyer
Journey
Cheatsheet
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About Ledger Bennett DGA
We are a B2B Demand Generation agency that uses
sales and marketing know-how to help customers
increase revenue by deploying Inbound Marketing,
Content Marketing and Marketing Automation
strategies. Our highly focused Demand Generation
programmes drive our customers’ business
performance, helping them to:
n Generate more opportunity
n Convert that opportunity into sales
n Retain customers and grow their value
Using more measurable and cost effective
techniques than traditional full service marketing
agencies we are able to maximise business revenue
in the modern world where the internet has
fundamentally changed the behaviour of the buyer.
www.lbDGa.com
Telephone: +44 (0)8458 383883
Email: info@LBDGA.com
Milton Keynes:
Ledger Bennett DGA
Tungsten House, Warren Road
Little Horwood, Milton Keynes
MK17 0NR
London:
Ledger Bennett DGA
1st Floor Centric House
390-391 Strand, London
WC2R 0LT
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