The Marketing Outfield Revenue Growth Update summarizes recent case studies, research and benchmarks that can help your company accelerate revenue growth.
In addition to summarizing key findings from these studies, David Hubbard offers his expert perspective on your “next steps”.
SALES RESEARCH UPDATE
KEY FINDINGS: Sales is still generating the majority of the company’s new business leads. CSO Insights found that 47% of leads were generated by Sales reps, 26% from Marketing, 21% from Customer referrals, and 6% from Customer Service. Less than a third of the Sales Executives surveyed gave Marketing a passing grade for lead quantity and quality.
CONCLUSIONS: Since buyers are doing much more of their purchasing research and evaluations online, Marketing needs to generate at least 40% of the company’s sales-ready leads to accelerate revenue growth.
KEY FINDINGS: Sales is struggling with a high rate of change. CSO Insights found that more than 60% of the 1200 sales organizations surveyed are experiencing increased competitive activity, increased customer expectations, and increased changes in the customer’s marketplace. Internally they are dealing with a broader and more complex product line with a higher rate of new product introductions. Only 7% of the organizations excelled at adapting their sales tactics in response to these changes.
Conclusions: “Are we up to the challenge, if “how” we sell must be adapted to the new realities of effectively engaging clients? And if the answer is not a decisive “Yes” then should you be turning to others for help?” asked CSO Insight. Marketing Outfield believes that companies need to better understand how their target market buyers have changed and revise their revenue strategy and process accordingly.
MARKETING RESEARCH UPDATE
KEY FINDINGS: B2B Buyers are fully leveraging the internet and don’t want to talk to your Sales reps. Acquity Group found that 94% of B2B buyers conduct online research before purchasing a business product with 34% of B2B buyers spending over 3 hours of research for corporate purchases of more than $5,000. Bad news for Sales reps though: 71% of B2B buyers prefer to conduct research and purchase on their own with access to a sales representative via the phone or online chat if needed and only 12% of B2B Buyers want to meet in person with a sales representative when making a purchasing decision.
CONCLUSIONS: The most cost-effective way to influence the buyer early in their purchasing cycle is with digital marketing techniques, not in-person sales techniques. Companies that continue to rely on their Sales organizations to do the lion’s share of new business lead development will struggle achieving accelerated revenue growth.
KEY FINDINGS: Good news for Marketing budgets but bad news for CMOs. International Data Corporation (IDC) CMO Advisory Service found that the Marketing budgets for technology companies will increase by 3.5%. In a related study, 51% of CMO’s in technology companies were replaced within the past two years.
CONCLUSIONS: “CMOs must own the digital disruption of buyer experience for their companies. Those CMOs able to rise to the challenge will be provided more resources and given more power. The unprepared will be replaced”, according to IDC. Marketing Outfield agrees and believes that what is occurring in technology companies represents a “canary in the coal mine” for other CMOs.