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Dawn of the Demand Centre
John Neeson, SiriusDecisions
Tim Shorrocks, Cisco
Tina Goodwin, Novell
Tim Lennard, CA
1. Marketing Skills
SiriusPerspective: Marketing leaders must bring their functions into
alignment with each other – and sales – in five key areas.


   1      SEED
                                    Inquiries          3       ENABLE
  The use of traditional
  and social media to set                              Helping reps move
                                                          p g p
  the stage for demand to                              marketing-created
  be created.                  Marketing Qualified     demand, as well as to
                                 Leads (MQLs)          source their own
                                                       demand.
    2      CREATE
                                Sales Accepted
   The generation of
   “original” demand, with a        Leads
   focus on quality vs.
   f             lit
   quantity.                                               5        NURTURE
                                 Sales Qualified
                                                           Care and feeding of
                                  Leads (SQLs)
   4      ACCELERATE                                       prospects that have
                                                           fallen out of the waterfall.
   Efforts geared to help
                                  Closed/Won
   sales move deals more
   quickly through the             Business
   pipeline.

                                                                                 2
                                                                  Source: SiriusDecisions
A Few Sobering Numbers
SiriusPerspective: Many organizations are still trying to deal with the first
sea change; will the second swallow them whole?




     85          The percentage of b-to-b marketers that describe themselves
                 as “self-taught” professionals.



     81          The percentage of b-to-b organizations that spend $1,000 or
                 less per year on marketing skills d l
                 l                   k ti    kill development.t



     25          The
                 Th percentage of organizations that have purchased
                           t    f       i ti     th t h            h d
                 marketing automation that are utilizing it to the fullest.



     7x          The gap in waterfall performance (inquiry-to-close ratio)
                 between average and best-in-class organizations.

                                                                        Source: SiriusDecisions
                                                                                     3
2. Marketing Performance
SiriusPerspective: Best practice organizations create over twice
as much revenue per marketing dollar in demand generation.



                     Average vs. Best Practice

               Performance                49% Conversion +


                   Cost              2X Lower Cost/ Closed Deal


                  Internet               Over 70% of Leads




                                                             Source: SiriusDecisions
                                                                        4
3. Portfolio Approach
SiriusPerspective: By 2015 30-50% of marketing programs will have
                      2015,
moved from single tactics to an integrated, multi-dimensional model.

                                Marketing Portfolio Model


                     Nurture                      Lead                     Play
                     Model                       Scoring                 Cadence


  Buyer’s            Journey                     Audience                Message
                      Model                      Dynamics
                                                  y                        Map
                                                                             p
  Journey

                   Multi -Touch             Nurturing Type            Activity Trigger
  Design
                  Multi Ch
                  M lti -Channel
                               l           Play A hit t
                                           Pl Architecture        Demographic Trigger
                                                                  D       hi T i

                                      Current
                  Pipeline                             New Account            Sales
                                     Account
                  Impact                                Acquisition         Readiness
                                     Marketing


                              Relative           Demand            Lead
  Planning                   Targeting            Type           Definition



                                                                                    Source: SiriusDecisions
                                                                                              5
What is a Demand Center?
SiriusPerspective: The demand center is a center of excellence model
                                           center-of-excellence
with advisory, execution and technical resources.

                                   SiriusDecisions Demand Center Model




                                                                                                enter

                                                                                           Practices
                                                                      Project
      Center




                                                                                                st
        all




                                                                                          Call Ce
                                                                                             Bes
       Ca




                            Teleprospecting     Telemarketing       Management
                                                                      Office
                           Program Assembly                         Nurturing Plan
      Campaignn
      Execution
              n




                                                                                          Advisory
                                                                                                 y
                                                                                          Services
                                                                                                 s
                                                                                          Program
                                                                                                m
                             Web Strategy       Back Office         Play Alignment

                             Data Services                         Web Anthropology
                                                                             p gy




                                                                                          Technology Center
                              Campaign        Lead Management         Adaptive
                  ucture




                             Management                               Marketing




                                                                                                   ced
                                                                                              Advanc
                                                                                                   y
          Infrastru




                                              Marketing Database



                                                                                     Source: SiriusDecisions
                                                                                                              6
Development Journey
SiriusPerspective: The Demand Center journey is driven by economic
and campaign performance considerations.


                                                                     • Back Office Service Increase
                                                                     • Load Balancing of Hubs                 Pooling /
                                                         Level 4     • Regionalization of Resources
                                                                     • Specialized Services
                                                                                                        Back Office Expansion
              verage




                                                            • Advisory Services
                                                            • Online Marketing
                                             Level 3                                           Center of Excellence
    conomic Lev




                                                            • Practice Area Management
                                                            • Variable Program Structure



                                               • Telemanagement Services
   Ec




                                 Level 2       • Consistent Execution          Standard Services
                                               • Core Marketing Services




                                 •BBase I f t t
                                        Infrastructure
                       Level 1   • Global Programs                 Back Office
                                 • Central Process




                                         Marketing Performance

                                                                                                                  Source: SiriusDecisions
                                                                                                                            7
Summary

 1. Economics: The marketing mix will continue to require B2B
    become more “leveraged”.
 2.
 2 Portfolio Approach: The go-to-market model will
    predominantly use a portfolio approach by 2015.
 3. Marketing Automation: Marketing automation is a
    requirement f best practice performance resulting in
                  for                f
    market acceleration and consolidation.
 4.
 4 Skills: The marketing organization of the future will require
    new skills to get the global community to best practice
    levels.
 5. Demand C t A pragmatic approach t meet the
 5 D        d Center:            ti       h to      t th
    changing needs of marketing is a leveraged service model
    providing advice, assembly and execution services.

                                                      Source: SiriusDecisions
                                                                8
Dawn of the Demand Centre
John Neeson, Sirius Decisions
Tim Shorrocks, Cisco
Tina Goodwin, Novell
Tim Lennard, CA
Where is your organisation on the Demand
          y      g
Centre ‘journey’? (choose one)

• No plans/Not relevant
• Thinking about it
• I process - b t not yet fully operational
  In          but t t f ll           ti   l
• All the way there - Demand Centre in place
If you have a Demand Centre what is its scope?
                     Centre,


• Global
• Regional (e.g. EMEA)
• L
  Local (
      l (e.g. country)
                  t )
Thank you.

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The dawn of the demand centre - John Neeson, Managing Director and Co-Founder of SiriusDecisions, Tim Shorrocks, Director, EMEA Marketing Services, Cisco, Tim Lennard, VP Marketing Operations EMEA, CA

  • 1. Dawn of the Demand Centre John Neeson, SiriusDecisions Tim Shorrocks, Cisco Tina Goodwin, Novell Tim Lennard, CA
  • 2. 1. Marketing Skills SiriusPerspective: Marketing leaders must bring their functions into alignment with each other – and sales – in five key areas. 1 SEED Inquiries 3 ENABLE The use of traditional and social media to set Helping reps move p g p the stage for demand to marketing-created be created. Marketing Qualified demand, as well as to Leads (MQLs) source their own demand. 2 CREATE Sales Accepted The generation of “original” demand, with a Leads focus on quality vs. f lit quantity. 5 NURTURE Sales Qualified Care and feeding of Leads (SQLs) 4 ACCELERATE prospects that have fallen out of the waterfall. Efforts geared to help Closed/Won sales move deals more quickly through the Business pipeline. 2 Source: SiriusDecisions
  • 3. A Few Sobering Numbers SiriusPerspective: Many organizations are still trying to deal with the first sea change; will the second swallow them whole? 85 The percentage of b-to-b marketers that describe themselves as “self-taught” professionals. 81 The percentage of b-to-b organizations that spend $1,000 or less per year on marketing skills d l l k ti kill development.t 25 The Th percentage of organizations that have purchased t f i ti th t h h d marketing automation that are utilizing it to the fullest. 7x The gap in waterfall performance (inquiry-to-close ratio) between average and best-in-class organizations. Source: SiriusDecisions 3
  • 4. 2. Marketing Performance SiriusPerspective: Best practice organizations create over twice as much revenue per marketing dollar in demand generation. Average vs. Best Practice Performance 49% Conversion + Cost 2X Lower Cost/ Closed Deal Internet Over 70% of Leads Source: SiriusDecisions 4
  • 5. 3. Portfolio Approach SiriusPerspective: By 2015 30-50% of marketing programs will have 2015, moved from single tactics to an integrated, multi-dimensional model. Marketing Portfolio Model Nurture Lead Play Model Scoring Cadence Buyer’s Journey Audience Message Model Dynamics y Map p Journey Multi -Touch Nurturing Type Activity Trigger Design Multi Ch M lti -Channel l Play A hit t Pl Architecture Demographic Trigger D hi T i Current Pipeline New Account Sales Account Impact Acquisition Readiness Marketing Relative Demand Lead Planning Targeting Type Definition Source: SiriusDecisions 5
  • 6. What is a Demand Center? SiriusPerspective: The demand center is a center of excellence model center-of-excellence with advisory, execution and technical resources. SiriusDecisions Demand Center Model enter Practices Project Center st all Call Ce Bes Ca Teleprospecting Telemarketing Management Office Program Assembly Nurturing Plan Campaignn Execution n Advisory y Services s Program m Web Strategy Back Office Play Alignment Data Services Web Anthropology p gy Technology Center Campaign Lead Management Adaptive ucture Management Marketing ced Advanc y Infrastru Marketing Database Source: SiriusDecisions 6
  • 7. Development Journey SiriusPerspective: The Demand Center journey is driven by economic and campaign performance considerations. • Back Office Service Increase • Load Balancing of Hubs Pooling / Level 4 • Regionalization of Resources • Specialized Services Back Office Expansion verage • Advisory Services • Online Marketing Level 3 Center of Excellence conomic Lev • Practice Area Management • Variable Program Structure • Telemanagement Services Ec Level 2 • Consistent Execution Standard Services • Core Marketing Services •BBase I f t t Infrastructure Level 1 • Global Programs Back Office • Central Process Marketing Performance Source: SiriusDecisions 7
  • 8. Summary 1. Economics: The marketing mix will continue to require B2B become more “leveraged”. 2. 2 Portfolio Approach: The go-to-market model will predominantly use a portfolio approach by 2015. 3. Marketing Automation: Marketing automation is a requirement f best practice performance resulting in for f market acceleration and consolidation. 4. 4 Skills: The marketing organization of the future will require new skills to get the global community to best practice levels. 5. Demand C t A pragmatic approach t meet the 5 D d Center: ti h to t th changing needs of marketing is a leveraged service model providing advice, assembly and execution services. Source: SiriusDecisions 8
  • 9. Dawn of the Demand Centre John Neeson, Sirius Decisions Tim Shorrocks, Cisco Tina Goodwin, Novell Tim Lennard, CA
  • 10. Where is your organisation on the Demand y g Centre ‘journey’? (choose one) • No plans/Not relevant • Thinking about it • I process - b t not yet fully operational In but t t f ll ti l • All the way there - Demand Centre in place
  • 11. If you have a Demand Centre what is its scope? Centre, • Global • Regional (e.g. EMEA) • L Local ( l (e.g. country) t )