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Churchill Club

The New Challenges of Selling as “1 of 3”

by Charles Born on September 5, 2012

in Marketing,Sales Tips

This article is by Guest Blogger Charlie Born, the newest member of the Shirman Group extended team.

Over the last five years, B2B selling has evolved from general concepts of solution selling to the ‘Buyer’s Journey’ – a journey driven by the large amount of information available online.  A new sales and marketing reality is rapidly emerging as the internet plays an increasing role in buyer research.  I’ve seen the impact of this in my own marketing work, and I strongly believe we are on the cusp of some important changes to the conventional marketing and sales wisdom of the past

Studies are consistently showing that B2B buying habits are shifting.  Buyers are now 60-70% of the way through the buyer’s cycle before they reach out to your sales representative.   By that time, there is less need for traditional solution selling techniques.  In the new buyer’s journey, the buyers believe that, based on their own research, they have figured out what they need.   When they decide to contact your sales team, they have most likely decided you are one of their top three choices – you are 1 of 3.

Maybe this sounds like good news.  It’s not.  Most often the buyer views all three choices as equally acceptable, and the final decision comes down to features, functions, support—and price, price, price.  Exceptional sales representatives might be able to overcome this ‘1 of 3’ syndrome, but this is the antithesis of where you want to be with solution selling.

In this new selling environment your biggest hurdles are no longer your competitors or features and functions; they are:

  • The ability of buyers to learn on their own
  • How your company participates in that learning process

As the CMO of SAP, Jonathan Becher, said at a recent Churchill Club CMO Panel, “Being marketed TO is a mindset we need to end.  It’s helping (the buyer) discover what they want to learn about.”

Are you experiencing this phenomenon?  Has it changed your marketing strategy?

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The four CMOs from SAP, Google, DreamWorks, and Intuit at a recent Churchill Club discussion panel were in agreement that social and digital marketing are now standard pieces of the marketing toolset, not distinct areas to be managed separately.    Anne Globe of DreamWorks commented that “social is completely integrated into the fabric of marketing.”  A sentiment echoed by Nora Denzel of Intuit, who said, “There is no such thing as digital marketing – it’s all integrated together.”

Taking it a step farther and reinforcing the previously discussed trend that the product IS the marketing, Nora added that Intuit is integrating social into the product itself by providing access to user forums and peer support directly from the product.  DreamWorks is also leveraging social within the product by integrating movies with games, which Anne described as “the coolest newest way to engage viewers.”

Now that digital marketing has permeated go-to-market activity, what technologies will marketers adopt next to add some bleeding-edge luster?  Seems the answer is the same as for everything else in tech these days:  intelligence drawn from big data. Nora Denzel believes that “social media, smart mobile devices, and [intelligence gleaned from big] data will create a real market of one.”    Intuit is already looking at ways to combine transactional, behavioral and social user-generated data to better serve customers.  The company already offers new customer value by aggregating data across tens of thousands of businesses to create an employment and revenue index for small businesses.

Though Intuit’s service is free, Laura McLellan of Gartner pointed out that Marketing can use its new intelligence to help identify new revenue sources.   Lorraine Twohill, VP of Global Marketing at Google, sees this as a great opportunity for marketing. “If you own the insights function, you are the oracle and sage and that’s a great role that marketing can play.”

Of course the bleeding edge has its name for a reason. It can be a risky place to walk.   Lorraine pointed out that companies must balance customers’ privacy needs against the value that big data offers.  That’s likely to be a challenge for years to come.  Ultimately, the technologies available to marketers will evolve in ways we can’t predict.  Anne Gardner described the implications:  “Technology helps us get to where our customers are.  But we have to keep our plan open so that we can leverage new technologies that we can’t foresee yet.”

Is you company using data about customers or product usage to provide extra value to customers?

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The proliferation of SaaS and Apple’s demonstration of the impact of product design and user experience, have changed how marketers and their companies look at products.   The lines between product management, product development, marketing, and sales are disappearing as quickly as chocolate from my kitchen.

At a recent Churchill Club CMO panel, Nora Denzel, Senior VP, Big Data, Social Design and Marketing at Intuit  articulated this trend best with the comment, “our product IS the funnel.”  She described that Intuit customers make decision based on product use, not marketing messages. Their experience in using the product determines whether they spend money on it.  That should be old hat to anyone offering a freemium model, but may not be explicitly understood by companies new to the products as services environment. Even more traditional products are evolving to play a bigger role in sales and marketing.  Interactive TV guides provided by carriers upsell on-demand channels and premium content, toys include complimentary on-line gaming components that cross sell more toys, and grocery packaging offers recipes that promote sister brands and products.

A key implication of this product-as-sales-tool trend is the accompanying change in product design and development, which marketing leaders clearly recognize. Jonathan Becher, CMO at SAP  remarked that “product launch is the day you sat down to decide what product you are going to build.”  To which Laura McLellan of Gartner quipped, “If marketing gets involved when the product is done, engineering gets what it deserves,” voicing my own observations that R&D culture has been slow to change and, in some companies, still drives product roadmaps with a myopic focus on technology and features rather than user experience.  (You know who you are.)

Taking it a bit farther, Jonathan Becher described a vision of product development in which just-in-time creation of features and designs that respond to the customer’s current preferences would replace precisely targeted marketing of existing products

Bottom Line: Whether you’re delivering products on-premise or as service, your Product Managers should have among their top design criteria:

  • Ease of use and high quality customer experience
  • Opportunities for customers to experience the product before they buy
  • Usage and behavior-based upsell and cross sell features
  • Seamless integration of usage, behavior, and request-based support and social features
  • Intelligence and analytics capabilities that use information like product configuration, user behavior and preferences, and transactional data to provide additional value to your company and to customers
  • Product architecture, design, and/or manufacturing process that allow fast and easy modifications, feature additions, and integration of complimentary products.

Please share your examples of products with built-in sales and marketing.

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In 42 Rules for Growing Enterprise Revenue, I talk about the fact that customer relevance is a corporate skillset, not a departmental one.  Creating a positive, customer-relevant experience involves many parts of the organization, and the speakers at the recent Churchill Club CMO panel provided lots of validation and great examples of why shared ownership is critical.

Nora Denzel, Senior VP of Big Data, Social Design and Marketing at Intuit commented that Intuit’s CIO, sales, and marketing all contribute to create the customer experience.  Lorraine Twohill, VP of Global Marketing  at Google agreed that cross-functional collaboration is critical because while Marketing focuses on customer acquisition, keeping customers and making them happy is what sales, support, and IT (in a SaaS company) do.   Jonathan Becher, CMO at SAP, summed it up well.  “The SAP experience is about the company, it’s not a marketing thing. If it were, no one would pay attention,” he commented.

Bottom Line: Consider making great customer experience an objective for every organization that impacts it.

  • Ask each functional team to identify specifically how they affect customer experience.
  • Set detailed objectives in your annual and quarterly plans for how they can improve the department’s contribution to a great customer experience.
  • Identify opportunities for cross-functional initiatives to offer new value to customers. It’s these that often have the greatest impact.

Please share how different parts of your company are collaborating to serve customers better.

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“We’re not in control. The Customer is.”
– Lorraine Twohill, VP Global Marketing, Google

We’ve talked here in our blog and in my book about the concept of collaborating with customers as the means to engage the more empowered buyer.  The mindset that customers have greater control than ever was clearly evident among the CMOs on a recent Churchill Club panel.

When asked whether his organization was “marketing-led,” “engineering-led,” or “sales-led,” Jonathan Becher, CMO at SAP, answered, “There’s only one kind of “led” – customer led.”  He described that at the last SAP conference, the decision about which topics to include was “crowd sourced from the customer.”

Nora Denzel,  Senior VP, Big Data, Social Design and Marketing at Intuit provided more examples of how Intuit is sharing the reigns with its customers: Intuit’s CEO meets with customers each quarter before speaking to his staff at the ops reviews.   Intuit has “outsourced product management and marketing to the customer.”  That’s because Intuit’s new product features get exposed to customer in a web sand-box, and their viability is determined based on actual customer usage.  Anne Globe of DreamWorks agreed that today there’s an opportunity for the customer to “take you in a different direction than what you planned” when you designed your marketing campaign.

Bottom Line:  2.0 didn’t just change the technologies we use to communicate, collaborate, and sell.  It has completely transformed customer mindsets.  Buyers in both B2B and B2C markets expect greater corporate transparency and increased influence over what is sold to them, where and how.  They also exercise greater collective and individual power in the marketplace.  Companies that can redefine their customer relationships from one of buyer-seller to that of a team collaborating to discover, learn, design solutions, and maximize their usefulness will command greater loyalty.

 

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Top 5 Trends for CMOs

by Lilia Shirman on August 9, 2012

in Customer relationships,Marketing

Last week I had the opportunity to attend a panel discussion with some of Silicon Valley’s top CMOs:  Jonathan Becher, CMO at SAP, Nora Denzel, Senior VP, Big Data, Social Design and Marketing at Intuit, Anne Globe, CMO at DreamWorks Animation, and Lorraine Twohill, VP Global Marketing , Google.   The moderator was Laura McLellan of Gartner.

Some interesting themes emerged from the discussion.  Here, and in subsequent posts, I’ll summarize the CMOs’ comments and add some perspective about the implications for marketers and their companies.

The top 5 trends:

  1. Customer Power
  2. Shared ownership for Customer Experience
  3. The Product IS the Marketing
  4. Social and Digital Marketing disappearing as distinct disciplines, Big Data key new tool
  5. The expanding Marketing skillset
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CIO Agenda Recap

by Lilia Shirman on May 11, 2009

in Technology industry

At the Churchill Club CIO Agenda event last Thursday, Peter Solvik (formerly CIO at Cisco) led a discussion among a powerhouse of IT leadership:  Matt Carey, CIO of Home Depot (former CTO, eBay and Wal-Mart), Karenann Terrell, CIO of Baxter (formerly CIO at Daimler / Chrysler), and Lars Rabbe, former CIO at Intuit and YahooTopics included SaaS, Clouds, the good an bad of vendor consolidation, and the uptake of Web 2.0 and collaboration technologies.

Here’s a summary of their views and my takeaways on these top-of-mind IT themes:

Q: What are you focusing on over the next year?

All three CIOs are managing costs more actively, but key strategic projects are still very much under way.  Baxter is doing a massive new ERP deployment, and Home Depot is continuing its supply chain upgrade.  Home Depot’s CFO says that right now, “cash is king,” so the company has stopped construction of multiple new stores (while competitors are continuing to build at a faster rate,  and cut costs in IT and operations.

Takeaways:

There are two ways to sell in this environment. 1. Show concrete cost savings and a short time to realize them.  2. Find out what your prospects’ one big initiative is, and show how you add value to it.

Q: Consolidation – Good or bad? Giving vendors too much power?

Here the CIOs disagreed. Lars felt consolidation helps ease integration, though of course too much consolidation eliminates alternatives. Overall, he felt he’d benefited from consolidation as a CIO. Matt agreed that better integration was a positive, but is concerned that vendors may gain too much power in negotiating contract renewals and maintenance fees.

Karenann, on the other hand, believes that the benefits of integration are limited, that it moves slowly, and that it “has not unraveled the complexity.” Even worse, while everyone is busy with integration, there is a pause in innovation. Karenann also voiced a concern about unjustified support and maintenance costs: “I’m willing to pay an annuity, but only if I get extra value.”

Takeaways:

  • Complexity is still a challenge, so both big and small vendors that can help reduce it can do well.
  • If your competitors are buy digesting acquisitions, take advantage of innovation as a differentiator
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