1-888-972-8937

Buyerology Now

Home » Posts tagged "business-to-business"

The State of Buyer Personas 2012

© All Rights Reserved by 24point0

This June marks ten years since the first buyer persona development methodology was pioneered and launched by the firm Goal Centric now called Buyerology.  Over the past ten years it has been quite a journey.   Much has happened and much has changed.  The adoption of research-based modeling of buyers that leads to buyer personas has been mixed.  The rise in popularity of the term has also been a mixed blessing.  It has resulted in many misguided definitions and practices that have not produced the potential results other organizations have seen when the goal-based modeling methodology is utilized.  The organizations who have embraced the goal-based modeling methodology for research-based buyer personas have seen tremendous success in uncovering new opportunities for revenue growth.

The State of Buyer Personas 2012

Buyer personas today are becoming more widely used by marketing and sales organizations than ten years ago.  Understanding about buyer personas and their place in the grander effort of modeling buyers to inform marketing and sales strategies ranges from harmful misperceptions to evolving maturity levels profoundly transforming organizations.  Today’s business leaders can reach a maturity level that allows for a robust practice of modeling buyers whereby buyer personas are one of the tools used for descriptive and predictive buyer modeling.

The following are some reflective thoughts on the current state of buyer personas:

Buyer Persona Sophistication On The Rise

 Personas first emerged as a tool for design in 1999 when Alan Cooper published The Inmates Are Running The Asylum.  It was in this book that the term buyer persona was first used although to point out that the focus of design should be on user personas as opposed to buyer personas.  I was privileged to be a witness and participant to the development of the goal-based modeling methodology created by a cast of innovative thinkers for design personas focused on users.  This same methodology serves as a foundation for what later became a specific goal-based modeling methodology for marketing and sales personas focused on the buyer.  Today, in 2012, the understanding of this methodology is unevenly understood yet buyer personas are evolving into a more sophisticated modeling tool being used by marketing and sales organizations.

Success Dependent Upon Modeling Methodology

We are seeing organizations attempt researching buyer personas for the first time while others are attempting to take limited success with buyer personas to new maturity levels.  There is a direct correlation between success and the foundational understanding of the goal-based modeling methodology when it comes to buyer personas in general.  Robust understanding of buyer personas as a modeling tool versus a profiling tool helps to ensure that they are effective and do what they are designed to do – inform marketing and sales strategies.  In cases where I have seen poor results, lack of adoption, and inappropriate use, these can usually be traced back to the misunderstanding of buyer personas as a detailed profiling exercise.  Business leaders today will need to be more discerning as the proliferation of the term buyer persona becomes more widely used by consultants and agencies to describe what amounts to as profiling.  Much of the offered templates and practices are buyer profiles masquerading as buyer personas.  Determining whether consultants or agencies are trained and skilled in the goal-based modeling methodology foundational to personas becomes an imperative.

Modeling Takes Center Stage

A development on the rise is organizations today are beginning to make the connection between understanding new and fast-evolving buyer behaviors and the need to understand these behaviors through modeling.  Buyer personas are best defined as the modeling of buyer behaviors, the key attributes of buyers, and most importantly the goals of buyers.  In the past few years, through co-creation efforts with Fortune 100 companies, we began to see robust modeling expanding beyond just the concept of a single buyer persona to that of modeling key dynamics of the overall buyer experience such as buyer ecosystems, buying scenarios, mental models, values, and experience.  Additionally, we are seeing more robust efforts in descriptive, narrative, and predictive buyer modeling that represent a comprehensive view of behaviors associated with individuals as well as with companies.

Research-Based Understanding Gaining Momentum

Personas are developed from primary qualitative research with real customers.  Specifically it calls for the type of qualitative research that is grounded in a robust understanding of goal theory.  Many business leaders are discovering that this may not be as simple as assigning this task to marketing personnel and that outside expertise in goal-based qualitative research and modeling ensures the highest return on such efforts.  Personas are not created, crafted or constructed as in the world of profiling.  Personas represent a distinct set of patterns uncovered in research and represent the illumination of buyer’s behaviors, goals, and experiences that inform.   At this state of buyer personas in 2012, companies are beginning to realize that poorly researched and template-based persona profiling may be proving to do more harm than good.  This important aspect of buyer personas and buyer modeling is beginning to grow solid roots in the minds of many business leaders – particular those who have wasted budgets on poor profiling based efforts imitating as personas.

Addressing Complexity

The significant shifts in buyer behaviors in the past few years have left companies struggling to deal with increasingly new dynamics of complexity.  Particularly those who have large bases of existing customers and have seen the mix of channels used by customers become more diverse as well as integrated.  Organizations are beginning to address newer forms of complexity by improving understanding of buyers by behavioral groups and focusing on the goals of buyers.  At this state, the adoption of this approach has been mixed.  Some organizations have come to misunderstand buyer personas as a tool only for messaging and content marketing.  Thus, the focus can shift to a narrow profiling view intended to help with writing content as opposed to the intended focus on helping business leaders and stakeholders to make informed decisions based on an outside-in view of customers.  Efforts in buyer modeling and buyer personas help companies to cut through the complexity and to prioritize tactical and strategic measures that best connect with customers.  The highest return on the modeling of buyers with the use of buyer personas and other modeling tools is when they help to optimize all facets of the buyer experience as opposed to a limited scope of just messaging.

Buyer Persona Lifespan

The rapid pace of changes occurring in technologies and the impact they have on buyer behaviors means that the lifespan of research-based buyer personas has considerably shortened.  This is causing a shift in thinking about qualitatively researching buyer personas from a periodic one-time event to a view of ongoing buyer research whereby buyer models are continuously updated.  This is one of the most profound changes occurring in the field of buyer modeling and use of the modeling tool we know as buyer personas.  Companies striving to remain relevant to their customers will need to constantly update their knowledge of evolving channels and buyer preferences and how they relate to buyer goals.  Business leaders will also need to evaluate their own in-house capabilities to conduct appropriate goal-based qualitative research with customers versus use of outside expertise in light of this change.

The Next Frontier: The Rise Of Sales Personas

After ten years, I’ve witnessed the rise of buyer personas as a concept embraced by primarily marketing albeit with mixed results.  What I am witnessing over the past couple of years is what may be counter intuitive to the current notion about buyers being elusive, hidden, invisible, becoming buyer 2.0 or 3.0, and many other similar descriptors.  I do not buy into these views based on results from conducting qualitative research directly with buyers.  Here’s what I am seeing as the next frontier: buyers are seeking more interaction and connection and not necessarily more content to read.  Our definitions and concepts of interaction and connection will undergo transformation due to rapidly changing technologies.  Buyers today see new technologies as a means to enable stronger interaction and connection – not as a means to be elusive or to hide.  However, it ups the game for companies to be even more relevant than they ever had to be in their existence.  Based on ROI and revenue growth impact alone, in the totality of the buyer persona development efforts conducted by Goal Centric/Buyerology, the most impact from an ROI standpoint have been those originating from sales.

This leads me to another belief that may be counter intuitive: poised to enable this stronger form of interaction and connection is sales.  Sales as we know it today will undergo further transformation yet I see its role becoming more prominent in developing the closer connections buyers seek.  Buyer modeling and the modeling tool of buyer personas will be an enabling process for companies to transform their sales organizations into a gateway for buyers to make the interactions and connections they seek.  While marketing personas and the proliferation of the term buyer persona have gravitated towards a specialized focus on messaging and content marketing, I see the rise of sales personas emerging to inform understanding and strategies that result in stronger connections with buyers.  I am excited to be working on specific goal-based modeling methodology that address the role of sales personas utilized towards lead development, lead nurturing, social selling, inside selling growth, account-based marketing and sales, sales effectiveness, and buyer conversation effectiveness.

We’ve come a long way with the concept of modeling buyers and the tool of buyer personas.  Yet, we have a long way to go.  One constant we can count on is that buyer behavior will continue to change just as rapidly as new technologies are evolving.  The use of descriptive and predictive buyer modeling tools such as buyer personas and buyer scenario models will become an important part of helping companies to make informed decisions on their future strategies.

(The State of Buyer Personas 2012 is available in PDF format on the Buyerology eBook page: click here for download)

Enhanced by Zemanta

Is Your Organization Likeable? Are You Attracting the Right Buyers?

Sally Field

Sally Field (Image via RottenTomatoes.com)

The phrase Laws of Attraction first appeared in the early 20th century around 1906 by William Walter Atkinson as part of the new thought movement and release of his book  Thought Vibration or the Law of Attraction in the Thought World (Chicago, 1906).  Since, this phrase has been used to help explain attraction-based theories and concepts in many areas of the social sciences throughout the 20th century and now into the 21st century.  Most recently, Rhonda Byrne’s The Secret became a worldwide sensation in 2006 which was based on the laws of attraction principles.  One powerful constant has remained throughout the 20th and 21st century – that likes attract likes.

While there is much focus given to demand generation, content marketing, lead generation, lead management, and opportunity pipeline management, recent significant changes in buyer behaviors calls for serious examinations of whether organizations are attracting the right buyers.  Simply stated – is your organization even “likeable” in the eyes of your buyers?  Does your organization have so called “laws of attraction” attributes that buyers are attracted to?

This is a powerful question today.  For some organizations, it may feel like reality dealt a blow to the midsection when they truthfully answer the question.  While others may scream like Sally Field and exclaim “they really like me, they really like me!”  While strides are being made in how to adapt to new strategies for managing leads and performing lead nurturing, many outdated assumptions about how buyers look at and evaluate organizations are still in play.

Are Buyers Really Hiding?

Based upon my qualitative research, I am having a hard time buying into the recent rash of terms to explain buyers today.  In talking with buyers directly, they certainly don’t describe themselves as the hidden buyer, the elusive buyer, the buyer 2.0, the invisible buyer, the secret buyer, and the many more terms that are being used.  Here’s what one buyer recently said to me while interviewing:

“It is silly to hear you say that.  I am not hiding from anything.  If they have nothing to offer and can’t help me, then why am I going to pick up the phone and contact them? “

I don’t think buyers are waiting behind a rock to come out of hiding.  In fact, I am beginning to form an opinion that this mode of thinking may even be detrimental to attracting buyers!  It creates a mentality that you have to coax buyers to come out from hiding or to stop playing dodge ball with you.  In other words – hurt the laws of attraction psyche meant to attract the right buyers in the right situations.  The real issue from my point of view is that recent changes in technology and buyer behaviors are resulting in a manifestation of whether your organization is found to be likeable or not.  New technology and newly formed buyer behaviors make it easier for buyers to say:

“If we like you, you will hear from us.  If not, you won’t hear from us.” 

Becoming Likeable

Finding out how to be likeable and, in effect, make the laws of attraction work for your organization is a complex issue today.  It can be frustrating to get at the kernel of why buyers are attracted to organizations and find them likeable.  It very well could be like asking your teenage daughter why they like something with the usual answer of “I don’t know, I just do, and stop asking me questions!”

Finding the right group of buyers today and determining what makes your organization likeable takes more than an exercise in buyer personas – and especially more than the enhanced buyer profiles with a photo slapped on it and mislabeled a buyer persona.  It takes a deeper commitment to understand qualitatively how to be likeable and attractive to the right group of buyers.    Here’s the premise of why this commitment today is of significant importance:

To become likeable and to attract buyers, you must first change your vision of buyers. 

If your vision of buyers has not changed much in the last few years, then it is highly unlikely that knowing what laws of attraction are in play to make an organization likeable to buyers are well understood.

It’s The Vision Thing

Obtaining a renewed vision of buyers today takes a commitment to let go of long held assumptions and investing in getting to know them qualitatively.  While new technologies in quantitative big data and data mining can provide some insights, this alone cannot offer the deeper qualitative insight into which attributes result in powerful laws of attractions that make your organization likeable in the eyes of buyers.  Modern day techniques and efforts such as predictive buyer modeling, descriptive buyer scenarios, modeling buyer values, and etc. can go a long way in renewing an organization’s vision of groups of buyers.  However, it starts with a commitment to seek a new vision of buyers and change the trajectory of the organization’s future.

Trajectory is a complicated concept highly dependent upon vision.  You have to first find out where you need to be going and to see where you are going.  Getting a renewed vision of your buyers and becoming likeable in their eyes gets you moving in the right direction.

Enhanced by Zemanta

Can You Predict Your Ideal Scenarios For Lead Nurturing?

"Sales Checking For Leads" © All Rights Reserved Kenny Madden

Depending on which reports you may read when it comes to lead nurturing, approximately 60% or more of B2B businesses do not have a formalized lead nurturing program.  Yet, depending on these same reports from the several research organizations benchmarking such effort, companies who perform effective lead nurturing enjoy a better than 25% higher return on their efforts than those who do not.  Which begs the question: why are companies slow to adopt to lead nurturing?

Reasons

I suspect one reason may be that the pressure for instant results from lead generation efforts is a primary driver.  Especially from firms heavily rooted in measuring results monthly and quarterly to a fanatical nature.  Which makes you think:  how much potential revenue is being left on the roadside in the speedy monthly pursuit to instantly convert leads generated into month-end results?  If organizations who find themselves in this predicament were to evaluate their efforts against what has been bypass in their pursuit, I believe they would find a sizeable amount of opportunities.

Another important reason why adoption may be either slow or unproductive is that there is a “once size fits all” mentality to lead generation and lead nurturing.  While efforts are made to develop the usual litany of content such as white papers and other mediums, they are focused on a generic understanding of challenges and issues.  While mapping content to the buying stages or journey has come into vogue, a review of forty qualitative research programs I have been involved in indicates that today’s buyers do not think or behave in such linear fashion.  Their information needs do not necessarily align or map one-to-one to a linear view of buying stages.

Buyer Scenario Modeling

While modeling the ideal buyer is of extreme importance, in the form of buyer personas, it is only one model of multiple to understanding buyers today.  In terms of lead nurturing; perhaps one of the most significant efforts an organization can make today is in the area of buyer scenario modeling.  Here is buyer scenario modeling defined:

Buyer Scenario Modeling is the process of analyzing research-based modeling of possible events, buying scenarios, buyer behaviors, buying decisions, and alternative future outcomes.”

Lead generation, lead nurturing, and content marketing can each be enhanced dramatically as well as integrate together on a more effective level with buyer scenario modeling.  This is more so than any mapping to buying stages or journey.  Buyers today do not think today nor are they forced to think in a linear fashion as they may have in the past.  Buyers are thinking in terms of the situation they find themselves in and the world swirling around them; pulling from their ecosystems and networks to meet objectives.

Changing B2B with Predictive Buyer Modeling

I recently introduced the idea of how predictive buyer modeling will change B2B as we know it.  One of the underpinnings of this idea is the use of buyer scenario modeling.  What companies can do more effectively through this process is begin to segment their lead generation and lead nurturing programs according to predictive scenarios, buyer behaviors, and buying outcomes.  Gaining knowledge and insight into how buyer scenarios develop, what challenges occur to trigger buying considerations, how buyers interact with others, and why decisions are being made.

One such Fortune 100 company who helped to co-create this concept with me recently segmented their lead nurturing efforts by modeled scenarios of the time buyers were investing in researching, evaluating, and decision-making once a challenge, problem, or issue arose.  Not happy with their lead generation results, they reorganized programs around four identifiable and predictable buying scenarios to achieve a much higher return on their efforts.  Content was developed to support the buying scenarios buyers found themselves in and not according to previously mapped generic buying stages.

This type of effort turns out to be good for all parties involved.  Marketing no longer is wasting effort and content on non-applicable situations.  Selling teams are nurturing leads at the right level and more importantly – timing.  Buyers are getting their information needs met at the right time, the right place, and the right situation of challenges they are dealing with.  To a greater degree, companies will be better able to identify and predict the ideal scenarios that give them the best shot at winning and being a long-term alternative to buyers.

Why

Buyer scenario modeling is needed in today’s connected buyer world due to the multiple types of scenarios buyers find themselves in today.  If companies are not in synch with understanding possible scenarios and outcomes, then they will be left out of the picture so to speak.  It is time for companies today to make giant leaps in their lead nurturing efforts.  Buyer scenario modeling may be just the springboard they need.

 

 

 

 

 

 

 

Enhanced by Zemanta

Use Buyer-Based Selling To Engage The New SMB Buyer

©All Rights Reserve by PhotoSteve 101

This is part 5 and final article of a series on the challenge of targeting SMB markets and how the use of buyer-based modeling and buyer-based marketing help organizations to grow their SMB customer base.

Prognosticators today abound on the demise of sales.  Not so fast.  While the notion of field sales shrinking for the SMB is a fact, it doesn’t quite mean the end of sales.  We’ve seen tremendous growth in the arena of Inside Sales over the past decades as the expense of dedicating field resources to SMB is no longer affordable as well as seismic shifts in buyer behaviors.  Where are we today?  The roles of sales in general and inside sales functions are struggling to adapt to the new psychology of the buyer and the new rules of engagements.  This is creating a clarion call among the Fortune 1000 and Global 2000 to attain deeper buyer-based marketing and sales capabilities for the SMB markets.

Success in expanding inside sales is highly dependent upon shifting to buyer-based models of selling that redesigns the roles and make up of inside sales departments.  Expanding the number of inside sales reps while not changing models of buyer conversations and engagements will just lead to more frustrated inside sales reps.  Far too often, who the SMB buyer is and understanding how and why they make purchasing decisions gets lost in the shuffle of statistics on number of dials, connections, and product pitches.  In a few of my qualitative research efforts, I’ve sat with frontline inside sales reps for a few hours.  I know and I get it – the grade that counts is meeting the quota numbers for dial and connections let alone revenue.  What the new breed of inside sales reps wants today is more engaging conversations with buyers and less focus on product pitches once they connect.

How To Make This Happen?

 In this series, we’ve focused on buyer-based modeling.  Modeling buyers today is the path towards creating models of buyer conversations that engage the SMB buyer today.  Let’s take a look at the path towards creating buyer-based selling models that transform inside sales to unified communicators engaging the SMB buyer:

Model the SMB Buyer Persona: researching and developing composite archetypes of various SMB business executives and owners can be a powerful tool for inside sales enablement.  Visual representation gets inside people beyond the wall of the computer screen and to thinking about who their buyers really are.

Model Buyergraphics: stopping at buyer personas today is a grave mistake.  Modeling a detailed set of SMB Buyergraphics gives your Inside Sales teams the contextual situations and predictive scenarios they need in order to engage the SMB buyer.  With the savvy SMB buyer adept at researching and making quick decisions, this approach gets Inside Sales teams to the same level.

Model Range of Interactions: the SMB buyer is rapidly changing their range of behaviors depending on the context of their situation.  The model of inside sales has been a simplistic idea that you hope to “catch” the buyer when he or she happens to be sitting by his or her desk phone.  In today’s world, SMB buyers are hurriedly going about running their businesses and not sitting still.  The range of behaviors includes their behavioral attributes associated with social networks, the web, while at customer locations, engaging with employees, and several others.  Accounting for these ranges of behaviors puts your organization in the right place at the right time -the SMB buyer’s time.

Model Unified Communicator: inside sales has lived with the equivalent association to telesales.  If you are still doing this today, this is another grave mistake.  The range of communications and engagement is becoming more expansive than ever.  The phone now is only one of several.  Building a range of available interactions albeit social, mobile, web, and etc. is needed to transform inside sales to a new role.  A new role of Unified Sales is critical to engaging the new SMB buyer who, as mentioned above, is expanding their range of how they behave to get information and meet goals.  Today’s buyer-based Unified Sales reps must have the skills and capacities to meet the SMB buyer where they are – at a critical moment in time.

Model Buyer-Based Selling: remapping processes is going to take some hard work.  Shifting from product-based and phone-based sales processes is in essence a cultural change within organizations.  And anyone who has ever been involved in managing culture change in large organizations knows the mountain that must be climbed.  However with the right gear, product and phone-based selling processes can be transformed to buyer-based conversational models.  Modeling new buyer-based selling processes will lead to incorporating newer technologies that enhance engaging the SMB buyer such as cloud-based technologies and tools.

Engaging today’s SMB buyer will take profound changes in how organizations market to and sell to this important growth segment.  It will take big thinking as opposed to the small thinking that sometimes has been accorded to the SMB markets.  Today’s SMB buyer is more technologically savvy, nimble in making changes, and certainly don’t think of themselves as small.  Meaning, that the Fortune 1000 or Global 2000 has to change their approach – and not let their own largeness get in the way.

(This 5 part series has been compiled into an eBook entitled, No Small Hurdle: Buyer-Based Marketing and Selling to the New SMB Buyer, for easy reading and sharing. Click on the hyperlinked title to receive.)

Enhanced by Zemanta

Channeling Buyer-Based Experiences in SMB

© All Rights Reserved I-5 Design and Manufacturer

This is part 4 of a series on the challenge of targeting SMB markets and how the use of buyer-based modeling and buyer-based marketing help organizations to grow their SMB customer base. 

When it comes to the SMB segment and the multiple sub-markets, it is just a plain fact that you cannot be everywhere.  We addressed the segmentation thought process crucial for buyer-based marketing to the SMB segment in the previous article, Grow SMB Revenues With Buyer-Based Marketing, as a means to know where to have a presence.  Therein lays the new buyer realities of today.  Having a presence that creates a gravitational pull of SMB buyers towards your organization is the new realty of mastering the SMB challenge.

SMB marketing and sales began to become more than just an afterthought in the early ‘90’s through the early 2000′s.  Considerable investments were made in establishing inside sales organizations and in outbound marketing activities specifically to reach the SMB base of customers and prospective buyers.  Newly created inside sales organizations endured the trials and tribulations of field sales entrenched infrastructure as well as the ownership battle of the mid-size customer gray area.  Marketing discovered that outbound tools for inside sales and for marketing to the SMB segment varied greatly from that of a focus on large field accounts.

In a span of 5-7 years we find ourselves in a drastically different world.  The notion of reaching buyers is becoming a huge hurdle to climb for those wedded to predominantly outbound activities related to inside sales.  As mentioned, establishing an inside sales function can be a sizable investment.  The Fortune 1000 and Global 2000 today find themselves with inside sales units loaded with personnel, technology, software, and etc. that were installed and aimed at outbound efforts.  What we now have is the challenge of turning on a dime to repurpose inside sales and marketing support to at least gain balance in inbound marketing while succeeding at a level of outbound demand generation as well.

This has more to do with transformation shifts in buyer behaviors with new technologies being the driving force behind these changes.  What is profound is that this is more than the labels of the elusive, invisible, or buyer 2.0.  No, they didn’t go anywhere and they are not hiding.    Nor, should we be of the mind that buyers are now just empowered – as if sellers gave them the empowerment.  Buyers today – with SMB buyers a significant part of this picture – are creating new ways of working and conducting business.  Here’s the smell the coffee moment for sellers: SMB buyers, in addition to larger accounts, are creating a new world of buyer-driven economies whereby as sellers – if you do not fit or adapt – it is a world in which you will not be participating within.

While I may be seemingly digressing here, I do so to make a very salient point.  SMB buyers are adapting new technologies in the entrepreneurial fashion they have started their business with in the first place.  Unburdened by large scale infrastructures, they can see how to make new uses of technologies nimbly and drive new ways of conducting business as well as expand their own customer bases.  SMB businesses, not so surprisingly, may be surpassing larger enterprises in their adoption of new technologies for interacting with buyers.

What Does This All Mean?

If you are part of a larger enterprise marketing to SMB buyers, what this all points to is a higher stakes challenge.  Expectations on buyer experience are being renewed at a constant rate for the reasons mentioned above.  Many of today’s new technologies, which for the most part had their original invention in non-business pursuits, have balanced the equation.  While larger enterprises enjoyed an advantage in acquiring newer technologies over that of SMB businesses, this may no longer be true.  In fact, the opposite in many cases may be true with SMB businesses able to leap frog into newer technologies as cost factors continue to be driven lower.

With this being the case, larger enterprises need to focus on creating seamless buyer-based experiences that allow SMB businesses to act quickly, make choices, and do so in the channels they prefer.  This applies to both inbound and outbound efforts.  A key focus for inbound efforts is that of enriching the buyer experience.  Darren Pleasance, a Principal with McKinsey & Company, recently covered this topic in an excellent article entitled, Serious about SMB experience?  Focus on your web site, on McKinsey’s Chief Marketing & Sales Officer Forum site.  Darren mentions the importance of the web site experience, providing the ability to buy seamlessly through multiple channels, and investing in post-purchase experiences as keys to success in the SMB segment.  All of these contributing to enriched buyer experiences.  The core of SMB buyer-based marketing and selling will not only be the web site as Darren articulates, but I believe the totality of the buyer experience now becoming the driving force behind how SMB buyers choose.

This brings us back to outbound.  Does this mean inside sales and other outbound activities will simply go away?  Far from it I believe.  A fundamental shift however needs to take place in how organizations view and orient their outbound efforts such as inside sales.  This shift relates to transforming from a tools-based approach to a buyer-based experience approach.  Here’s the voice of one SMB business executive articulating this point:

“The thing that kills you is that you get what you need from the web site but contacting them directly is a whole different matter.  It’s as if they are clueless that I may have visited their site and got information to review.  On top of that, I get calls from their people saying they are my account manager.  Really?  Then how come they don’t know that I talked to someone in their company already?” 

This exemplifies what happens when organizations fail to connect their inbound activities with outbound activities in SMB buyer-based marketing and selling.  On the other hand, connecting the two tightly enriches the experience as this SMB business owner says:

“I was really impressed to be honest.  I went on the site and found a few items I wanted to read so downloaded them.  I got a call from the company; his name was Steve, first acknowledging that I had downloaded the papers and then asking if I had questions.  We wound up having a discussion on some of things we’ve been working on.  Wasn’t pushy or anything like that.”

To create impressive buyer experiences, this integration of inbound and outbound cannot be ignored.  While the shiny object these days is inbound and the incessant promotion of content marketing, for some products and services, the ultimate deciding factor will continue to come down to the buyer conversation taking place.  One thing we can count on is that more and more SMB buyers today come to table ready for a conversation – are you?

Next Up: Closing the deal in SMB with Buyer-Based Selling

Enhanced by Zemanta

Grow SMB Revenues With Buyer-Based Marketing

This is part 3 of a series on the challenge of targeting SMB markets and how the use of buyer-based modeling and buyer-based marketing help organizations to grow their SMB customer base. 

Buyer Persona © All Rights Reserved Cristian Cardenas

The sheer size of the SMB makes for a daunting task for any organization intent on marketing to the SMB segment.  When you consider some Fortune 1000 or Global 2000 organizations can have in the 10’s or 100’s of thousands of companies in their customer bases, the expression of zeroing in on your target buyer can sound near impossible.  It is a dilemma however that cannot be ignored.  The U.S. Small business Administration estimates that the SMB segment accounts for better than 98% of all businesses in the United States.

In the previous article in this series, How To Get To Know The New SMB Buyer, I touched upon the means to get to know the SMB buyer.  Marketing to the SMB segment and buyers should first start with visiting the segmentation issue a little deeper.  There have been many means tried for SMB segmentation whether it is by size, type, vertical, products, solutions, and etc.  To some degree, they have helped to manage the challenge of bringing a tighter focus to the SMB segment and its’ sub-market segments.  Analytics of your SMB customer database is like fighting numbers with numbers – you can contain the data but without behavioral insight – you will not be able to get inside them.  The call to action now is for organizations to bring more science and evolution to the challenge.  Why?  Because buyers in general have changed so rapidly in the last three years alone that gaining a competitive edge has become much more complex.

Getting Descriptive

Going beyond conventional methods of segmenting the SMB customer base means getting more descriptive about how SMB buyers behave and how goals drive their behaviors.  This includes getting a good sense about their Buyergraphics – their attitudes, perceptions, values, information needs, and more.  The attempt here is to answer some tough questions that help to bring more focus to an SMB strategy:

Who are our best customers in the SMB segments and why?

In what SMB sub-market segments are our best customers?

Who are our best prospects and in which SMB sub-market segment are they?

What are the best means of engaging our best SMB customers and best SMB prospects?

Descriptive buyer modeling helps you to get answers to these questions and gives you insight into the data as well.  In the previous article I stressed the importance of buyer modeling to help get to know your SMB buyers.  Modeling buyers and portraying them via buyer personas and scenarios helps you get to the first two questions mentioned.  To help round out the SMB buyer picture, learning their attitudes towards your product, service, or technology and how these attitudes drive information needs help to get deeply descriptive.  There are three specific buyer modeling efforts that can help shed light on the attitudes and goals driving SMB buyer behavior and help inform buyer-based marketing strategies:

Buyer Mental Models: collecting a picture of SMB buyer attitudes, perceptions, and goals that influence buying decisions can be a descriptive means for segmenting as well as buyer-based communicating.  For example if your product technology is getting high marks for user-friendliness and there is strong attitudinal resistance to perceived complex technology in 3 out 5 identified sub-markets, then  creating buyer-based marketing strategies around this mental model is one way of segmenting.

Buyer Content Models: identifying the information needs and goals of buyers today extends well beyond just the concept of content marketing.  With the rise of SMB sub-market segments engaging not only in new technologies but forming new ecosystem, the information needs of SMB buyers are vastly different and changing rapidly.  Carrying the above example further, the information needs of the 3 sub-markets may vary differently in context and how information is shared amongst both suppliers and partners.  More and more, organizations will need to think context-based marketing and context-based selling as opposed to just content-based marketing.  While this will apply to all types of businesses, I believe this will be especially true for the SMB markets.

Buyer Experience Models: how SMB buyers view, perceive, and expect experience is undergoing transformative gyrations.  The way SMB buyers experience inbound marketing and other newer technology-based marketing and sales is certain to be different than larger enterprises.  There are many more what I call Buyer Moment of Truth in SMB that are frankly invisible to marketers and sellers today.  Not identifying where these moments of truth are can be a significant disadvantage in laying out both inbound and outbound marketing and sales strategies.  Understanding experiences is important since they are instrumental in shaping attitudes, perceptions, and perceived values.  For the examples mentioned, previous experiences with technology not yet cleared of bugs may have created entrenched resistance to both new and complex.  Reshaping thinking around experience can then become an important strategy.

Modeling SMB buyers to a deeper level and around the three modeling efforts mentioned gets organizations closer to a true buyer-based marketing effort.  In addition, it gives more robust ability to segment SMB by behavior and context.  Buyer-based marketing can be most effective when it addresses how buyers behave and understanding the context of why they make purchase decisions.

Informed with behavioral buyergraphics that hone in on buyer behaviors and how they are influenced by mental models, information needs, and experience can be a powerful way to resonate with SMB buyers.  Getting at the heart of their contextual environments, which will vary by sub-market segments, gives the insight needed to develop specific buyer-based marketing strategies that defies one-size fits all.   When it comes to the dilemma of how to make sense of thousands of SMB customers and prospects, taking these steps eliminates wasteful guessing and pinpoints buyer-based marketing at the right buyer, the right sub-market, the right context, and the right time.

Next Up: Connect With SMB Buyer Through Buyer-Based Selling

Enhanced by Zemanta

How To Get To Know The New SMB Buyer

©All rights Reserved Peter Schofield

This is part 2 of a series on the challenge of targeting SMB markets and how the use of buyer modeling and buyer-based marketing help organizations to grow their SMB customer base. 

In the first article of this series, we visited two new realities.  One, that many Fortune 1000 and Global 2000 organizations are turning a focused eye towards growing their SMB customer and revenue base.  With revenue growth potential shrinking in larger strategic accounts due to budget and pricing pressures, many are dedicating attention and resources with more determination than in the past.  The second reality is that they are finding a very different buyer this time around than in the past.  Simply put, SMB buyers are more social, more sophisticated, more connected, and are transforming their buying behaviors at an accelerated pace.  New technologies opening their world to advantages only once afforded to large enterprises.

Waking up to these new realities has set up another challenge for executive leaders.  That is of how to get to know the new SMB buyer.  Here’s how one sales executive put this to me recently:

“One of the things we realized is that we have got to get to know our SMB customers.  If you keep in mind that we haven’t really dedicated much resource to this area, then we are lacking in knowledge per se’.  We’ve got to find out what is important to them versus just giving them some generic sales pitch.”

This is a very salient point for many organizations tend to view the SMB as a whole segment in of itself.  The reality is that the SMB is highly fragmented and consists of many layers of sub-market segments.  Getting to know what makes SMB buyers tick is, by no means, as easy as saying this is your SMB buyer.  Layer on top of this the enormous changes in buyer behavior, the invisibility of SMB buyers in their sourcing for information, and new empowering technologies makes this endeavor a higher mountain to climb.  It is no wonder many executives are walking out of their meetings where SMB growth is identified as a top priority saying – now what?

Getting To Know The New SMB Buyer

The first tough challenge is realizing that viewing the SMB as a single market and that rudimentary means of segmenting by employee size and revenue figures are not going to result in the understanding needed.  While vertical segmentation is of significant help, what is paramount is knowledge of how these sub-markets and buyers within behave.  What are steps that executives can take to understand the new SMB buyer?

Buyer Research: This has to be a clear mission.  Getting to know the new SMB buyer is going to take some level of buyer research.  It is going to take the integrated approach of committing to both quantitative and qualitative approaches to understand the full 360 degrees of the new SMB buyer.

Buyer Modeling: Depending on the degree of fragmentation in sub-markets, powerful buyer modeling can be an extensive exercise.  However, one well-worth the upfront investment to get to know the new SMB buyer in ways that transforms efforts into an order of magnitude competitive advantage.  There are several areas of modeling that by understanding them deeply, can make your organization relevant to buyers and core to their problem-solving:

Buyer Persona Modeling: What is important here is not to model the single archetypal buyer but to model the new levels of interactions buyers are having with newly formed ecosystems and networks.  They may be SMB but they are growing exponentially and organically by creating new ecosystems.  Buyer persona modeling represents composite archetypes based on behavioral research with a focus on identifying critical goals that drive buyer behaviors.

Buyer Scenario Modeling: To get a handle on the problems SMB buyers face and what confronts them, modeling buying scenarios can give your marketing and sales teams insight into how to be relevant.  Additionally, this gives you the ability to address fragmentation and identify sub-market segments that have the best optimal scenarios to be part of the SMB buyer’s solution.

Buyer Decision Modeling: How SMB buyers are making purchase decisions today is changing so fast and by sub-markets that not monitoring this aspect of a SMB strategy can put an organization behind the curve.  While looking at the buyer decision journey can be fruitful, in my qualitative research I’ve noted how the new SMB buyers are adept at more ad-hoc decision-making.  Furthermore, with the rise of ecosystems and networks, collaborative efforts in making purchase decisions are not so neatly streamlined.  Newer technologies are also making purchase decisions more decentralized than ever – making fragmentation on this issue even more complex.

Buyer Value Modeling:  SMB buyers’ value varies widely by sub-market segments.   Gaining insight and modeling how these values operate in their day-to-day world can help you to tailor offerings and communications to fit specific sub-market segments.  Depending on the industry and markets, values in the SMB take on a deeper emotive texture and can be a deciding factor in purchase decisions.

Avoid Big Data Trap

With the rise of big data, there will be a tendency to try and “cut the numbers” every which way to make sense of the SMB market challenge.  When dealing with 5,000 SMB accounts to 150,000 SMB accounts, the tasks of getting to know these SMB buyers at a deeper level can look downright daunting.  Analytics will play an important role towards reaching understanding.  I also contend and advocate that qualitative and predictive buyer modeling is essential to integrate into the mix of discovering the new SMB buyer of today.  Buyer behavior within the SMB world is rapidly changing.  A reasonable assumption can be made that in some SMB sub-market segments it is changing at a faster pace than that of larger organizations.

The combined use of analytics and predictive buyer modeling can yield an insightful picture into how these new behaviors translate into uncovering why buyers make purchase decisions.  And, get closer to the holy grail of uncovering the reasons why they would change.

Next Up: The Importance of Buyer-Based Marketing in SMB

Enhanced by Zemanta

Your Top Priority Is Growing The SMB Revenue Base – Now What?

 

Do Your Research Before You Pick Up The Phone © All Rights Reserved Kenny Madden

This is part 1 of a series on the challenge of targeting SMB markets and how the use of target buyer modeling and buyer-based marketing help organizations to grow their SMB customer base. 

As we continue to come out of the deep freeze over the last few years, we are beginning to see encouraging signs of an economic recovery.  However, the purse strings are still drawn tight and new patterns of buying has created an atmosphere of even more exacting pricing pressures from enterprise-wide level buyers and accounts.  This means less room for revenue growth to come directly from the fabled 20-30 percent of large customers who typically have made up 70-80 percent of total revenues.  This is how a VP of Sales in the software industry put it to me recently in my research:

“Here is what it looks like…we are actually selling more of our product into our larger accounts than ever before….but…over the last three years we’ve faced stiffer competition that has driven our pricing down.  So the net-net has been that we are just holding on as best we can to these larger accounts.  Another words, we are not getting significant real revenue growth from them.”

It is highly likely that this refrain is being repeated across many Fortune 1000, Global 2000, and even Inc. 500 listed companies across the globe.  With revenue growth opportunities shrinking among their large accounts, senior leaders in these organizations are turning a focused eye towards the highly sought after small and mid-size business segment.  For instance, in the highly compettive world of IT Products and Services, both HP and IBM made substantial investments and strategic moves in 2011 to target the SMB segment.  Challenging Dell and its’ low cost entry strategy for small to mid-size businesses.

A New Challenge And A New Frontier

There is good reason for Fortune 1000 or Global 2000 companies to target revenue growth from the SMB segment.  It is one of the fastest growing segments and traditionally has been coming out of a recession.  It also has proven to be lucrative when you consider that actual contribution margin percentages are much richer per sale when compared to large accounts.  It is little surprise that senior executives have shifted at least one eye towards expanding their SMB customer base and tapping into the revenue growth potential that can exists.

While targeting or at least accounting for the SMB segment is not a new idea to larger enterprises, this time around they are waking up to new buyer realities.  Buyer behaviors continue to change rapidly and these new behaviors are associated with largely buyer-driven changes.  What is confronting those wanting to achieve revenue growth from SMB buyers and companies is that they may know very little about these buyers and companies.  How to market to SMB buyers and companies becoming one of the hot priority items showing up on the agenda of many large enterprise management meetings being held daily, weekly, or monthly.  As one Senior VP of Sales and Markerting in IT pointed out to me recently:

“I am almost afraid to admit that we may have taken the SME (my notation: some executives refer to SMB as SME – small and mid-size enterprises) businesses for granted all these years.  We never really moved beyond segmenting by employee size and revenue so we really don’t know a lot about SME’s as we should.  It’s easy say you want to target them but planning how to target them is basically a whole new ball game for us.”

Because little knowledge may exist about SMB businesses and buyers, there are perhaps more assumptions being made about SMB than for larger accounts.  Generalized perceptions and preconceived notions run rampant in the halls and meeting rooms of larger enterprises attempting to figure out how to market to SMB segments.  There is what I call a “definition churn” that can happen when knowledge is found wanting – new definitions, classifications, segmentations, and etc. begin to appear every 3, 6, 9, or 12 months.  Moving around 1,000’s of accounts and prospects in virtual databases to new buckets created for employee size, revenue size, product targets, and verticals.

Unprecedented Transformation Occurring

In the past, working with these definitions may have been sufficient.  Looking ahead into the future - and the near future at that – these definitions alone will no doubt prove to be limiting and even detrimental to growth.  We are experiencing an unprecedented transformation in the world of business with new buyer-driven economies, ecosystems, networks, and communications emerging constantly – making understanding of SMB buyers and companies that may have been attained even as little 3 to 5 years ago nearly obsolete.

For many large enterprise organizations that show up on the famed Fortune 1000 or Global 2000 lists, growing the SMB customer base may be their number one, or at least in the top five, priority.  It is also, as a result of new buyer realities that are emerging, their number one challenge.  To tackle both angles of this two-sided coin, gaining deeper layers of understanding about SMB buyers and companies will need to get on these same priority lists.

Next Up: Understanding New Buyer Realities In SMB

Enhanced by Zemanta

4 Ways the Power of Buyer Choice Will Transform Business Marketing

Higher Grade Product Design Concept Models

Higher Grade Product Design Concept Models (Photo credit: Jordanhill School D&T Dept)

This is part 5 and final article of a limited series on why buyer choice modeling is the new view B2B Business must adopt to improve revenue performance and develop long lasting relationships with buyers. 

How buyers make choices today, in large part driven by empowering new technologies, will transform how B2B businesses will view buyers as well as redefine what is meant by business marketing.  The rigid funnel will no longer serve as a workable means of communicating unique views of buyers and their buying behaviors.  This not to say that buyer processes, stages, and steps are no longer relevant but to highlight that buyers today no longer make choices neatly in the paradigm of the funnel.  A rigid funnel view, whether it is drawn up horizontal or vertical, cannot provide the orbital view of choices being made continuously.

There are four ways that new buyer choice dynamics will transform the practice of business marketing and alter the view of what practices are relevant:

Predictive Buyer Modeling And Intelligence

As we covered, many B2B businesses are wrestling with the unknown and the invisible.  B2B buyers are remaining invisible in their behaviors associated with exploring as well as establishing new networks of participants in decision-making.  There will be a rise in the use of buyer modeling techniques as well as integrating the use of buyer intelligence, predictive analytics, and the illuminating aspects of predictive buyer modeling.  The changes underway in buyer behavior will cause B2B business marketing to extend well beyond conventional buyer profiling as well as simplistic buyer persona creating for demand generation.

Reorient From Business Marketing Teams to Buyer Driven Marketing Teams

Traditional business marketing has been historically put together teams that are seller driven and narrowly funnel focused.  The single buyer model view narrowly shared across all channels.  Leaders in B2B marketing and sales will soon have to migrate towards buyer segment teams that are focused on activities that are focused on the buyer’s entire brand and buyer experience.  We are beginning to see leading organizations, such as GE, move towards aligning their organizations to industry buyer segment teams focused on deeper understanding and alignment with buyers.

Create Orbital Match With Buyers

B2B is becoming more complex with every passing month.  When informed with deep buyer intelligence, business marketing can begin to align to the continuous orbital loop of what confronts buyers and how they make choices.  The new role of business marketing is to pull buyers into an orbital loop that mirrors their own and enables choices that are buyer driven.  The new business marketing strategy is to create the gravitational pull that buyers feel and are drawn to because it aligns with their own orbital loops.  Conversely, how can your organization get close to the buyer’s own gravitational pull and be drawn into their orbital loop?  This is a departure from the seller driven and narrow funnel view of push messaging.  Another way of positioning this concept in simple terms is this: either your B2B business becomes part of the orbital loop or you can watch it from afar with a telescope – and be out of the loop.

Total Brand and Buyer Experience

Business marketing today can take a strong leadership role in organizations by transforming itself to an orientation around the buyer.  Historically, in the seller driven and narrow funnel view world, business marketing has been positioned as the conveyers of getting information in front of buyers.  Producing material that buyers could read, provide messaging to sales, and putting together promotional programs with the aim to get sellers to sell harder.  My intuitive guess is that in the world of business marketing, this positioning still exists in a large majority of B2B organizations – perhaps trapped within the label of marketing communications.  To influence corporate strategy and decision-making, business marketing must now become the conveyors of buyer intelligence and influencing organizations to orient around the buyer.  Conveying that what counts is the total brand and buyer experience and that business marketing’s role is to help create these experiences for buyers.

Business marketing today, by making these four ways the cornerstone of transformation, can enhance their leadership role in organizations.  Orienting businesses around the understanding of buyer choices being made in a new complex buyer driven world.  This is no easy challenge yet one that business marketing must take up.  It must demonstrate that it understands buyers deeply and that a designed focus on the total brand and buyer experience is the new business marketing strategy.  It is time for business marketing to come out of the literature closet and lead.

(This 5 part series has been compiled into an eBook entitled, A Matter of Choice: How B2B Buyers Choose in Today’s Complex Markets, to make for easy reading and sharing.  Click on the hyperlinked title to receive.)

Enhanced by Zemanta

3 Ways To Connect With Today’s B2B Buyers

Pamban Bridge ~ Connecting Rameshwaram Island
Image via Wikipedia

This is part 4 of a limited series on why buyer choice modeling is the new view B2B Business must adopt to improve revenue performance and develop long lasting relationships with buyers.

Connecting with today’s B2B buyers is on the minds of most CEO’s and their teams today.  Not too long ago, reaching and connecting with B2B buyers was a straight forward proposition.  Depending on surveys from such sources as IDC, IDG Connect, DemandGen Report, Forrester, and more, we know that buyers are remaining invisible to B2B businesses and spend only a quarter of their time talking directly to sales when making purchase decisions.  The idea of connecting to B2B buyers has gone from straight forward to major league complex.

There are plenty of debates regarding the best tactical means to connect with B2B buyers.  The effectiveness of these tactical means, as reported by once again the likes of IDC and etc., show that many B2B leaders believe these tactical efforts such as content marketing and marketing automation may only be effective about a quarter of the time.  It does represent a big gap and it begs for a rephrasing of the challenge – this a big disconnect with B2B buyers.  Enough to keep any sane B2B CEO and their senior management team scrambling for answers.  Part 1 and part 2 of this series pointed out that conventional funnel thinking is woefully inadequate in today’s B2B buyer landscape and is limited in the ability to address new and evolving complexities.

Determining new strategies as well as tactics that can meet the challenge of connecting with today’s B2B buyers revolve around understanding new buyer psychology and dynamics that are in a state of continuous evolution.  B2B businesses can do three things to help grasp the connection issue and make plans that close the gap:

Buyer Modeling To Understand Buyer Choices and Scenarios

Business executives today are using the concepts of buyer modeling to understand as well as visually illuminate buyer choice.   Buyer modeling incorporates the elements of attitudes, beliefs, values, goals, perceptions, needs, and motivations.  By modeling buyers, buying scenarios, buyer experience, and decision journeys, B2B executives can then map strategy as well as tactical marketing and sales activities that enable them to connect with B2B buyers on a relational level.  Buyer modeling is based on qualitative research that addresses choices being made versus inadequate interviewing that is done in the context of the funnel.

Focus On The Total Brand and Buyer Experience

B2B businesses are learning how to think outside the context of the funnel and how to encompass the total view of the brand and buyer experience.  The invisibility of buyers who are in explore and network mode of the buyer choice model makes it an imperative for B2B businesses to better understand how different buyers interact with different channels that create impressionable brand and buyer experience.  The emphasis here is on identifying critical Buyer Moment of Truth™ impression points that contribute to the overall brand and buyer experience.  For example, does the web channel brand and buyer experience stay true to form when buyers interact with either the social media, sales, resellers, partner, or service channels?  HP, for instance, has a strong ecosystem of reseller and partner channels where the brand and buyer experience has many potential pitfalls and has several challenging Buyer Moment of Truth handoff points that can make or break their involvement.  B2B leaders today can conduct buyer experience mapping that identifies critical Buyer Moment of Truth and ensure that the brand and buyer experience stays true to form throughout.

Descriptive Buyer Segmentation Based on Buying Behavior and Opportunity

By integrating the benefits of predictive analytics with that of predictive buyer modeling, B2B leaders are gaining smarts on taking segmentation to a new level.  With the use of visually illuminating B2B Buyergraphics, buyers can be segmented descriptively by explore and buying behavior and also by modeling buying scenarios that identify where the organization can reach a “best fit” level with buyers.  This can be especially useful in industries where there is a strong company or account focus as well as complex buying scenarios that involve lengthy buying cycles.  Descriptive means of segmentation helps to illuminate the many elements related to choice, needs, goals, attitudes, behaviors, values, and experience.  This approach enables both marketing and sales to focus on resonating with buyer segments that have similar goals and buying behaviors where knowledge in doing so is dynamic and enriched with each company or account interaction.  In essence, allowing B2B businesses to build strong connections with B2B buyers in buyer segments that have higher winning percentages.

When B2B leaders can do these three things, they can be better informed on how to guide the overall trajectory of their organization.  Their focus is on identifying the buyers and buyer segments that they can best establish a connection within the context of understanding choices being made.  More importantly, they can learn how to connect with B2B buyers today in ways that resonates and invites participation into the buyer driven world of goals, challenges, issues, uncertainties, and growth objectives that orbit them continuously.

Next up: Transforming B2B Business

Enhanced by Zemanta
Enter Your Email:
Sign Up for news and updates from Buyerology©