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« The Unspoken ‘Real State’ of Modern B2B Demand Generation 1 of 4: Introduction
The Unspoken ‘Real State’ of Modern B2B Demand Generation 3 of 4: Disconnect Between Tactics and Revenue »

The Unspoken ‘Real State’ of Modern B2B Demand Generation 2 of 4: Technology, Alone, Is Not Enough

August 10, 2010 by Adam Needles

This week I’m publishing a four-part blog series — based on research I’m doing as part of the updated focus for my marketing book project.  This series takes a look at B2B demand generation today.  The first post provided an introduction to the series.  Parts two through four examine the three major challenges facing B2B demand generation.  Today’s post looks at the first challenge — identifying why technology, alone, is not enough to improve B2B demand generation.  ~ABN

So what does that average B2B marketing organization look like today?  And what are the challenges that organizations must overcome to get to best-in-class?

 

Challenge #1:  We implement technology to solve our B2B demand generation problems, but we fail to substantially update our underlying processes and roles; thus, we find technology by itself has not really solved our problems.

SiriusDecisions reported at their 2010 summit that the penetration rate for marketing automation platforms among B2B marketing organizations in the US currently is at roughly 7-10%, but they project this will rise to as much as 30% by 2015.  A recent CRM Magazine article further noted, “The percentage of firms that have implemented CRM [has] increased, according to industry research firm CSO Insights, from 53% in 2003 to 75% in 2010 … .”

Clearly the adoption of technology – particularly marketing automation and CRM – among B2B marketing organizations is on the rise.  Yet within organizations that have adopted the technology, we too often see a consistent pattern of doing what it takes to initially implement the technology – creating minimal definitions and scoring models to get going – but falling far short of a complete overhaul of our core processes and roles.  So we never fully leverage this technology.

“Today many B2B marketers are buying into [this] idea: If they acquire a marketing automation solution, then they will wind up with a lead management process,” comments Carlos Hidalgo of The Annuitas Group in a recent post on Silverpop’s Demand Generation blog.  “Nothing could be further from the truth.  Technology adoption must occur hand-in-hand with process evolution.”

We see validation of this in data from The Executive Benchmark Assessment, published by Bulldog Solutions and Frost & Sullivan earlier this year – an assessment that sampled a group of 250 B2B marketers.  (Graphics below used with permission.)  On the surface, a majority of more-advanced B2B marketing organizations claim that they share common objectives and goals with sales and that they have common lead-stage definitions.  Yet I’d note this is the minimum level of what is required to get up and running with marketing automation technology and CRM.  Stated differently, on the surface – i.e., just enough to work together and to implement the technology – B2B marketing organizations are evolving, but that evolution stops early into the adoption of the technology, and as we’ll see below, the results significantly limit the outcome.

 

Source: Bulldog Solutions/Frost & Sullivan; click to enlarge

 

Source: Bulldog Solutions/Frost & Sullivan; click to enlarge

 

As I hinted at above, this story changes when the questions look at the outcomes of B2B demand generation programs from these same high performers, many of whom did adopt marketing automation technology but didn’t necessarily overhaul their legacy views of demand generation processes and integration.  We see results that are nearly the inverse of what we saw above and that point to dissatisfaction and poor outcomes.

 

Source: Bulldog Solutions/Frost & Sullivan; click to enlarge

 

Source: Bulldog Solutions/Frost & Sullivan; click to enlarge

 

The synthesis?  These organizations started to get aligned – enough to adopt the technology – and they created definitions.  But their initial definitions were not on target and/or were not refined, and they did not carry through with improvements and fundamental process/role change.  The result is that less than a quarter of B2B marketing organizations believe their efforts are keeping the pipeline filled.

This synthesis is further supported by a data point from SiriusDecisions, which also noted at its 2010 summit, “Less than 25% of organizations that have implemented a [marketing automation platform] fully currently utilize its potential.”

Why is this?  The Bulldog Solutions and Frost & Sullivan research helps complete this picture, reporting that the major roadblocks B2B marketing organizations face in maximizing their marketing automation platform are people, processes and content.  (See graphic below; used with permission.) 

 

Source: Bulldog Solutions/Frost & Sullivan; click to enlarge

 

And so we find that updating definitions and adopting technology is not sufficient.  Success with modern B2B demand generation – and getting to best-in-class – also requires substantial updates to processes and roles.  It requires sophisticated lead management processes, a content marketing strategy and a new B2B marketing skill set that blends marketing operations with holistic, buyer-driven nurturing.

 

Parts three and  four of this series continue to examine the three major challenges facing B2B demand generation today.  [update]  Part three looks at the disconnect between our marketing tactics and revenue outcomes.  Stay tuned …

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Posted in B2B Marketing | Tagged Adam Needles, B2B buyer, B2B marketing, Carlos Hidalgo, CRM, demand generation, integrated marketing management, marketing automation, marketing execution management, Marketing Infrastructure, marketing technology, technology | 32 Comments

32 Responses

  1. on August 10, 2010 at 6:45 am The Unspoken ‘Real State’ of Modern B2B Demand Generation 1 of 4: Introduction « Propelling Brands

    […] this series examine the three major challenges facing B2B demand generation today.  [update]  Part two looks at why technology, alone, is not enough to improve B2B demand generation.  Stay tuned … Possibly related posts: (automatically generated)B2B Content Marketing […]


  2. on August 10, 2010 at 6:58 am Tweets that mention The Unspoken ‘Real State’ of Modern B2B Demand Generation 2 of 4: Technology, Alone, Is Not Enough « Propelling Brands -- Topsy.com

    […] This post was mentioned on Twitter by April Dunford, Adam Needles, Adam Needles, Scott Brinker, Chris Arrendale and others. Chris Arrendale said: RT @abneedles: Part 2 of my 4-part series on the 'real state' of modern #B2B demand generation. http://bit.ly/dfN6yI […]


  3. on August 10, 2010 at 7:07 am jefflogden59

    Amen! Does joining a gym make you slim? No. Does buying marketing automation solve the sales lead problem? No.

    When more then 6 out of 10 say they don’t have enough sales leads to satisfy salespeople, they have a real problem.

    The unfortunate situation is that companies need to tear down marketing and rebuild it. They need to rethink their value. They need to see the world through fresh eyes. They need to understand messaging and realign roles. They need great content – personalized and engaging.

    Marketing is today short staffed, underfunded and in a bind. This is why they ought to look for outside help.

    Jeff Ogden, the Fearless Competitor
    Find New Customers
    http://www.findnewcustomers.com


  4. on August 10, 2010 at 8:17 am Paul Mosenson

    Adam,

    This is a nice post detailing the problems occurring in the B2B sales/marketing process.

    Not enough resources, misaligned process, not enough content. As Jeff said, it’s companies like ours that companies should turn to to help fix the problems and optimize their marketing strategy including but not limited to marketing automation

    Paul Mosenson
    NuSpark Marketing
    http://www.nusparkmarketing.com


  5. on August 10, 2010 at 9:41 am Twitted by utollwi

    […] This post was Twitted by utollwi […]


  6. on August 10, 2010 at 9:57 am Joe Zuccaro

    Marketing is not “branding,” and too many “branders” have led organizations down delusional, “feel good” paths.

    Marketing is and has always been finding a need and filling it.

    A marketer’s role in organization is to provide the “intelligence, weapons, and ammunition” for the people “in the trenches” – sales. Marketing Automation tools help marketers do this. The key word here is “help.” The best platform out there is worthless if you don’t have smart humans running it. Humans (sales and marketing working collaboratively) need to create and sustain logical processes that encourage efficient, swift processing and distribution of revenue driving information, and build platforms around these processes. Don’t put the cart before the horse.

    Peace.


  7. on August 10, 2010 at 10:41 am David Raab

    Great stuff, Adam.

    People, process and technology have always been important; marketing has always been short-staffed and underfunded. What’s new, as Sirius Decisions points out, is that the role of marketing is changing, and thus marketers need to learn to do new things.

    I think Trish Bertuzzi’s comment yesterday hit the nail on the head — in a world where new approaches are needed, what we have are experiments, not yet best practices. I’d go further and say that things are changing so quickly that the ability to experiment is itself a critical requirement. People, process and technology must be adjusted to support constant experimentation and to balance that with the need to deliver results.

    In short, we need to focus on what it takes to be flexible. One critical need is the ability to measure outcomes so we can know which experiments have failed or succeeded. I look forward to tomorrow’s post on measurement.


  8. on August 10, 2010 at 11:04 am Dan Freeman, President, Marketing Growth Strategies

    Anyone who has implemented Marketing Automation (or any tehcnology for that matter) understands that the technology is only the enabler. Marketing success comes from having a compelling value proposition and communicating it your tarket market thruought the buying lifecycle.

    Technology can help us communicate but cannot not help us concieve the message.

    Technology can facilite and a streamlined custom acquisition process but cannot create the new process.


  9. on August 10, 2010 at 12:17 pm Your business needs a personal trainer in B2B marketing «

    […] Your business needs a personal trainer in B2B marketing Published August 10, 2010 Lead Nurturing , Lead Scoring , Management best practices , Marketing , Marketing Automation , Sales 2.0 , lead generation , sales challenges , sales leadership Leave a Comment The Unspoken ‘Real State’ of Modern B2B Demand Generation 2 of 4: Technology, Alone, Is Not Eno… […]


  10. on August 10, 2010 at 3:01 pm Amy Bills, Bulldog Solutions

    The benchmark assessment data is good validation for the trends we see on a daily basis. Injects a dose of healthy reality. It’s much better to know there are likely roadblocks and have a plan to set yourself up to succeed by addressing them. Ignorance is not bliss.


  11. on August 11, 2010 at 6:28 am The Unspoken ‘Real State’ of Modern B2B Demand Generation 3 of 4: Disconnect Between Tactics and Revenue « Propelling Brands

    […] series.  Parts two through four examine the three major challenges facing B2B demand generation.  The second post identified why technology, alone, is not enough to improve B2B demand generation.  Today’s post looks at the second challenge — exploring our continuing struggle as maketers […]


  12. on August 11, 2010 at 6:57 am Adam Needles

    Thanks for all of the great comments, everyone.

    @ Jeff – It is sort of sobering, isn’t it? Couldn’t agree more that we need to rebuild on a new model.

    @ Joe – Well said. Horses don’t do well behind carts.

    @ David – Two points, first, I agree on the flexibility front. Maybe that’s the big call-out here: We need to train B2B marketers with the tools to adapt, as opposed to the legacy views of their silos. Agility. Second, I think you’ll like the third post in the series. I actually end with a quote from one of your last blog posts.

    Also, I wantd to point everyone to David’s thoughtful follow-up post on our commentary here in part two:

    http://customerexperiencematrix.blogspot.com/2010/08/dont-focus-on-marketing-process.html

    And Ken Krogue also had a great, thoughtful follow-up post on “Sales 2.0 — The ‘Thin Line’ Between Sales and Marketing Grows Even Thinner”:

    http://www.kenkrogue.com/lead-generation/sales-2-0-marketing-thin-line-grows-even-thinner/

    @ Dan – Appreciate the comment. I would say, though, that I disagree with the statement that ‘anyone who has implemented’ gets it. I think that’s my point: That far too many continue to implement technology without ‘getting it’ and realizing it is only an enabler.

    @ Amy – Thanks to Bulldog Solutions for the great data charts. Truly appreciative of your generosity in sharing this with everyone.


  13. on August 11, 2010 at 2:31 pm “We need to be ‘world-class’ in demand generation” «

    […] What’s going on here? If they all want to be the best, why are they performing so poorly? And why aren’t more salespeople making quota? For another experts take on the problem, please read The Unspoken ‘Real State’ of Modern B2B Demand Generation 2 of 4: Technology, Alone, Is Not Eno… […]


  14. on August 12, 2010 at 6:50 am The Unspoken ‘Real State’ of Modern B2B Demand Generation 4 of 4: Our Lack of Buyer Focus « Propelling Brands

    […] series.  Parts two through four examine the three major challenges facing B2B demand generation.  The second post identified why technology, alone, is not enough to improve B2B demand generation.  The third post explored our continuing struggle as maketers to link marketing tactics to revenue […]


  15. on August 13, 2010 at 7:05 am Closing the Technology Innovation Vs. People/Process Stagnation Gap in Modern B2B Demand Generation | Demand Generation Blog

    […] In part two of my Propelling Brands series, Bulldog Solutions shared with me findings from the “Executive Benchmark Assessment” research project they collaborated on with Frost and Sullivan.  Their research supports what we’re saying here — noting that the top-three major gaps for B2B marketing organizations in successfully leveraging marketing automation technology are people, process and content.  (Graphic below used with permission.) […]


  16. on August 13, 2010 at 5:07 pm Mac McIntosh

    Adam, I agree that technology is an enabler of using marketing to drive leads and sales; Not the solution in itself.

    It’s like gas in the tank of your car. You can’t get there without it, but you still need the car (process) and driver (people) to get you there!


  17. on August 16, 2010 at 6:48 am Closing the Technology Innovation Vs. People/Process Stagnation Gap in Modern B2B Demand Generation (DG) « Propelling Brands

    […] Part 2:  Technology, Alone, Is Not Enough […]


  18. on August 27, 2010 at 1:15 pm Marc

    Adam, Great topic! As an eBusiness Strategist and Software technologist, I have worked with too many organizations that look for to technology to solve their problems. The senior management in these organizations are trying to transform their organizations by investing in the design and development of an “easy button” if you will. However, as you eloquently argue the technology is only the enabler to transformation. The truth is that there are no “easy buttons” when it comes to transformation.

    I percieve the hope is that if they invest enough in the techno gadgets and sophisticated applications, they will somehow do things better. In fact, if they don’t have a strategy for changing the organization behaviors and processes that are causing the problem in the first place, they are only failing better and faster than they were before the technology was implemented.

    Although well thought out corporate strategy and tactics should drive technology investment in most cases, there a cybernetic relationship between the two. Essentially, there is a feedback loop that exists between busines and technology. The feedback from technological innovations should be fed back into the strategic planning processes of the organization. As a result, cultures, values, behaviors, org structures and processes will be be challenged.

    It is only when the feedback loop is closed and the challenges of transforming the organization are embraced, that businesses will truly reap the rewards that technology enables. I believe that companies that embrace the philosophy continuous improvement tend make the transformation faster, better and cheaper.

    (I hope this is coherent as I am writing in a hurry…Again, great topic.)


  19. on September 23, 2010 at 10:46 am Why I Joined Left Brain Marketing, a Demand Generation Agency « Propelling Brands

    […] We are at a critical – and challenging – moment in the evolution both of modern demand generation practice and of the discipline of B2B marketing.  More than ever it is critical for us to close the “Technology Innovation Vs. People/Process Stagnation Gap in Modern B2B Demand Generation,” which I noted in one of my final posts on Silverpop’s blog.  There is tremendous potential to leverage modern marketing technology and pressing need to market differently to the modern B2B buyer.  Yet technology alone is not sufficient to address this gap. […]


  20. on November 9, 2010 at 12:38 pm 1 of 2: Elements of a Modern Demand Generation Plan … Overview + Buyer-targeting Context

    […] technology or that are not using it successfully – a reality I covered in parts one and two my ‘Real State’ of modern demand generation series – then you’ve got bigger fish to […]


  21. on December 7, 2010 at 10:41 am Marketing Automation: The Beginning of the End? | MarketingProfs Daily Fix Blog

    […] this year, the Propelling Brands Blog stated, “Less than 25% of organizations that have implemented a [marketing automation platform] […]


  22. on January 7, 2011 at 10:19 am Why Do (Well-intentioned) B2B Demand Generation Efforts Fail?

    […] made me think of another number.  24%.  This is the percentage of marketing automation adopters, according to a Bulldog Solutions/Frost & Sullivan study, that reported they are ‘generating enough demand’ to meet their sales team’s […]


  23. on March 8, 2011 at 5:30 pm Going Further With Marketing Automation

    […] his Propelling Brands Blog, Adam Needles stated, “Less than 25% of organizations that have implemented a [marketing […]


  24. on March 8, 2011 at 6:26 pm Going Further With Marketing Automation

    […] his Propelling Brands Blog, Adam Needles stated, “Less than 25% of organizations that have implemented a [marketing […]


  25. on April 25, 2011 at 12:02 pm Revising Our Demand Generation Definition as B2B Marketers « GetPaidNotPlayed.com

    […] According to SiriusDecisions, somewhere around 7-10% of B2B marketing organizations have adopted B2B marketing automation; moreover, SiriusDecisions reports that only abut 10% of those adopters are using the technology to manage holistic demand generation – i.e., leverage the technology to manage the entire buying process.  so one disconnect is that only a few percentage points of the total B2B marketing population is successfully doing holistic, end-to-end demand generation and leveraging marketing automation to do so. […]


  26. on May 6, 2011 at 6:08 pm Why Do (Well-intentioned) B2B Demand Generation Efforts Fail? | Demand Gen (r)Evolution

    […] made me think of another number.  24%.  This is the percentage of marketing automation adopters, according to a Bulldog Solutions/Frost & Sullivan study, that reported they are ‘generating enough demand’ to meet their sales team’s […]


  27. on May 6, 2011 at 6:52 pm 1 of 2: Elements of a Modern Demand Generation Plan … Overview + Buyer-Targeting Context | Demand Gen (r)Evolution

    […] technology or that are not using it successfully – a reality I covered in parts one and two my ‘Real State’ of modern demand generation series – then you’ve got bigger fish to […]


  28. on May 8, 2011 at 7:19 pm A Layered Approach to Lead Nurturing in B2B Demand Generation | Demand Gen (r)Evolution

    […] Yet we’re really bad at lead nurturing as B2B marketers. In fact, among marketing automation adopters, only about 1 in 3 believe they ‘have an effective lead nurturing process,’ according to research from Bulldog Solutions/Frost & Sullivan I cited in a blog post earlier thi…. […]


  29. on May 8, 2011 at 7:56 pm Revising Our Demand Generation Definition as B2B Marketers | Demand Gen (r)Evolution

    […] According to SiriusDecisions, somewhere around 7-10% of B2B marketing organizations have adopted B2B marketing automation; moreover, SiriusDecisions reports that only abut 10% of those adopters are using the technology to manage holistic demand generation – i.e., leverage the technology to manage the entire buying process.  So one disconnect is that only a few percentage points of the total B2B marketing population is successfully doing holistic, end-to-end demand generation and leveraging marketing automation to do so. […]


  30. on February 29, 2012 at 10:04 am Why Don’t Marketing Leaders Manage ‘Demand’ as an Operational Process? (1 of 2) « Propelling Brands

    […] how do we leverage the technology to efficiently manage the demand process?  As I’ve noted in a past blog post, why is it that our adoption of the technology, by itself, does not seem to tackle our problems and […]


  31. on March 2, 2012 at 10:54 am Why Don’t Marketing Leaders Manage ‘Demand’ as an Operational Process? (2 of 2) « Propelling Brands

    […] So how do B2B marketing leaders typically remedy this situation?  They invest in technology, but when it comes to their marketing programs, they continue to do ‘mor… […]


  32. on March 7, 2012 at 3:03 pm Five Things to Consider Before You Purchase Marketing Automation | The Cross-Channel Conversation

    […] having the right people can limit the success you will have with your automation platform. A study conducted in 2010 by Frost & Sullivan and Bulldog Solutions showed that of 250 respondents, 109 […]



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