B-to-B Marketing Mythbusting, Redux
With a tip of the hat to Bob Bly, whose June article in Target Marketing magazine dispelled seven B-to-B marketing myths, I’d like to tackle some mythbusting of my own.
Myth No. 1: Lead Generation is the Top Job of B-to-B Marketers
There is overwhelming evidence that B-to-B marketers consider lead generation their most important contribution.
So why, you may rightly wonder, am I calling this a myth? Well, maybe it’s more of a misconception than a myth. I am arguing that the true top job of B-to-B marketers should be customer retention, or customer penetration, which is where all the profit lies.
Of course, we need to feed the funnel, and lead generation is certainly a close second priority. But for delivering real value to shareholders, marketing should be spending considerably more effort on supporting the goal of extracting value from the customer relationship.
In B-to-B, this might mean strategies like:
- Identifying potential needs in current accounts through data analytics, and providing sales people with reasons to call into the account and pursue those opportunities.
- Setting up advisory boards by key customer segment to gain insight into customer needs and future buying trends.
- Producing ongoing outbound marketing touches to expand the reach of the sales force in communicating value to current accounts.
My point is that retention should be viewed as a top priority—dispelling the myth that if marketing generates tons of leads, they’ve done their job.
Myth No. 2: Social Media is a Flash in the Pan
B-to-B marketers are embracing social media with gusto, but many still view it as a toy—something to play around with, most likely in the corporate communications or PR departments.
Wrong. These channels are ready for revenue generation.
I ran across a fascinating example of this at the DMA12 conference in Las Vegas last month, where Cheryl Mikovch of IBM shared the story of how the marketing team that supports inside sales has enabled reps over the past couple of years to use social media to identify opportunity and deepen their account relationships. The result? For one of IBM’s public cloud offerings, 15 percent of the closes via inside sales could be attributed to the social selling effort. When it comes to IBM revenue levels ($107 billion, worldwide, through all channels), that’s a lot of money.