What’s in a Name?: Demand Orchestration vs. Demand Generation

Does the term ‘Demand Generation’ really reflect what we do?

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DemandOrchestrationChallenge: Does ‘Demand Generation’ Reflect What We Do?

Over the past 10+ years, my functional marketing role has been called ‘demand generation,’ and certainly in the tech community, this term helps quickly communicate where we fit within the marketing org.  However, recently I was speaking with a prospect the other day about a project, describing my typical engagements, how I work with clients, etc. When I was summarizing the typical activities, I found myself describing what I do as ‘demand orchestration’.

Let’s look at the functional areas managed by the “demand generation” leader:

  • Marketing KPI’s, Dashboards and Attribution
  • Customer Persona and Lifecycle Definition
  • Lead Flows and Processes
  • Marketing-Sales Interface and Handoff
  • Marketing Campaigns, Programs and Themes
  • Third Party Demand Programs
  • Webinars, Field Events & Tradeshows
  • Paid and Organic Search
  • Website Design and Conversion Rates
  • Martech Stack and Team Enablement
  • Lead Nurturing and Qualification
  • Lead Engagement, SLA and Qualification
  • Lead Development Rep Training and Playbooks
  • Account Based Marketing
  • ….and so on…

However, as a demand team leader the most important responsibilities are actually more like this:

  1. Align with Sales on Business Plan Targets & Splits w/ Marketing
  2. Build Forward Looking Demand Model for Opportunity and Lead/Account Targets
  3. Create KPI’s, Dashboards and Measurement Processes
  4. Design Bottom Up Demand Plan Across Various Channels
  5. Build Out Demand Team and Assign Functional Areas
  6. Create Planning Process Leading to Program Execution
  7. Track and Optimize Programs Ongoing
  8. Ongoing optimization of people, process, programs and systems: weekly, monthly, quarterly and annually

So what struck me at that moment in our conversation was that demand gen leadership is really about orchestration. The areas that most frequently rise to the top of my attention are:

  • Do we have the right mix of programs to address top, middle and bottom of funnel?
  • Do we have the right skill sets on our team?
  • Are we optimally executing against our plan?
  • Are there opportunities to optimize demand funnel volumes and conversion rates?
  • What is our prospect/account user experience and how can we improve?
  • How are we assisting with customer lifetime value in retention rates, upsell, and cross sell?

These activities essentially have to do with orchestrating people, process and systems to accelerate growth, therefore the role is more accurately described as orchestration. In my experience, I contribute most to an organization in the orchestration of these resources to ensure the team meets and exceeds pipeline and won business targets.

Should we call the function Demand Orchestration? Does that more accurately describe what we demand leaders do?  Does it even matter what we are called? What probably matters most is that demand generation leaders focus on the people, process and systems to optimize performance and growth. Let me know your thoughts.

Lesson: As demand generation leaders, our focus is to orchestrate people, process, programs, and systems to optimize revenue generation that meets or exceeds business goals

 

 

 

 

 

Revenue Attribution Maturity Assessment: The Journey to Reporting Nirvana

MarketingDashboardChallenge: Accurately Reporting Marketing Contribution Without Over-Investing Time and Budget

For many years marketing teams have aimed to identify their contributions to their companies’ success. Over the last five years, there have been significant advances in the tools available as well as the business processes by which data can be managed to support greater insights and gain competitive advantage. In fact, marketing groups today are frequently responsible for driving a specific percentage of company revenue so identifying revenue sourced by Sales or Marketing is critically important to measuring business performance.

But measuring marketing contribution is time, resource, and budget hungry. So how much should you invest? What tools will contribute to success given the maturity of your organization? In working with many different organizations, I have noticed common themes on the road to attribution maturity. Knowing where you are on this maturity timeline will help you plan for what may come next for your organization. While every company is unique, I believe there are common attribution lifecycle stages – and companies move through them as they need greater detail and insight.

So check out where you in attribution maturity so you can balance investment against the value of increasing visibility.

Stage 1 – Early Startup

  • Definition: Sales and Marketing have agreed upon revenue contribution percentages
  • Typical Revenue: $0-$500K ARR
  • Sales-Marketing Alignment: Handshake agreement on total new account revenue sourced by Marketing vs. Sales
  • CRM Deployment: Early deployment often still optimizing data and reporting process/structure
  • CRM Usage: Consistent campaign association is not yet defined for Leads, Contacts and Opportunities; Marketing automation may not be integrated with CRM
  • Attribution Process: Manual monthly or quarterly update of opportunities as Marketing vs. Sales sourced
  • Primary Challenges: Manual update of opportunities becomes overly time consuming

Stage 2 – Maturing Startup

  • Definition: CRM deployed with basic campaign attribution reporting
  • Revenue: $500K ARR – $5M ARR
  • Sales-Marketing Alignment: Attribution to Marketing or Sales identified and defined by first or last touch for new business; starting discussion on up-sell and cross-sell attribution
  • CRM Deployment: CRM standard utilization enforced, Sales forecast process optimization ongoing, Marketing automation integrated
  • CRM Usage: Both Sales and Marketing have created a data dictionary and have established standard processes for updates that have moderately successful usage
  • Attribution Process: CRM reporting using first or last touch for Marketing vs. Sales attribution
  • Primary Challenges: Both first and last touch neither accurately describe opportunity drivers nor comprehensively reflect Marketing and Sales program impacts

Stage 3 – Growth Startup

  • Definition: Specialized attribution software deployed in first version
  • Revenue: $5M ARR – $50M ARR
  • Sales-Marketing Alignment: Comprehensively defined Sales vs. Marketing source new business, upsell/cross-sell business and optimization of handoff processes
  • CRM Deployment: Utilize industry best practices for data integrity and reporting, generally solid compliance from Sales and Marketing teams, and relatively accurate sales forecasting; Initial deployment of third-party attribution tools
  • CRM Usage: Sales operations focusing on tight rep compliance with CRM, Marketing Operations focused on data quality and completeness
  • Attribution Process: Sales vs. Marketing sourced opportunities identified by campaign touches driving the MQL; utilizing both Sourced and Influenced models to optimize marketing performance
  • Primary Challenges: When sourced and influenced models do not accurately capture full account-based attribution impact or when weighted touch models are required to adjust campaign influence over customer journey

Stage 4 – IPO Readiness and Public Company

  • Definition: Specialized attribution software deployed in second iteration
  • Revenue: $50M ARR – $500M ARR+
  • Sales-Marketing Alignment: Business operations teams fully integrated across Sales and Marketing with BI dashboards/reporting; Monthly/Quarterly attribution reviews for program and process optimization; Early deployment of predictive revenue models
  • CRM Deployment: Sophisticated CRM deployment managed by business operations team with sophisticated reporting (BI tools) and data accuracy for regulatory compliance
  • CRM Usage: Well established guidelines and training; key processes are reinforced with end user compliance
  • Attribution Process: Multiple attribution models including weighted touch attribution and account-based models supported by analytics team to assist in utilization and interpretation of the data
  • Primary Challenges: Managing time, cost and complexity of attribution reporting as well as the ability of most marketing team members to absorb the complexity of these models

What has been your experience? Do these levels ring true? Was this helpful to your planning?

Lesson: As organizations grow, so do their needs for better attribution. It is important to make the right investments at the right time to keep attribution management time and costs in line with overall revenue goals.

 

 

Marketing Attribution – Worth the Effort?

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Challenge: Considering the Challenges of Marketing Attribution, How Deep Should You Go?

Marketing attribution is a hot topic. You need to know which programs are worth the effort and expense and marketing must demonstrate its contribution to revenue. In fact, both marketing and sales must both carefully plan and measure their unique contributions to more accurately predict revenue.

However, Sergio Maldonado’s recent guest post on Scott Brinker’s Chief Martec blog raised some very important questions about the veracity of marketing attribution. The article challenging various aspects of marketing attribution is timely and worth a careful read. It also caused me to re-evaluate my ongoing efforts to focus on attribution.

The journey starts with developing a standardized way to tag Leads, Contacts and Opportunities to marketing campaigns, followed by a methodology to differentiate sales from marketing contribution (as well as sourced versus influenced). Adding various program costs and labor investment to the formula provides a more complete picture. However, this tells just part of the story as it analyzes attribution from first ‘form conversion’ to closed deal, without consideration for pre-conversion activities.

Tracking and attributing the activity of all stakeholders before form conversion is more difficult. Furthermore, attribution-to-revenue calculations only provide results for Contacts associated with a closed-won Opportunity, whereas other Leads and Contacts not associated often influence the deal. Therefore, this methodology ignores Leads and Contacts that influence but are not associated with the opportunity as well as all awareness phase marketing touchpoints that positively affected the opportunity.

By focusing only on campaigns with direct attribution, marketing may erroneously optimize for those programs only – at the expense of awareness and early stage funnel activities where attribution is much more difficult. The resulting focus on ‘directly attributable campaigns’ that occur at or after the first form conversion can easily result in a decreased ‘share of voice’ and ignore important early stage touch points. Often, sales prospects are unaware they have a problem or they’re unfamiliar with solutions better suited to their challenge. Awareness programs focusing on the earliest stages of the sales cycle are key to growing sales in the long run.

So if strict adherence to attribution metrics will lead to sub-optimal marketing resource allocation, should marketing invest time and resources in it? Unequivocally yes. At the highest level, Lord Kelvin was right when he said, “When you can measure what you are speaking about, and express it in numbers, you know something about it.” The attribution process is not at fault here (though it can and will certainly improve), rather the issue is how this data is used to make marketing investment decisions. Even though early stage program investments are not measurable in the same way that later stage programs are, they remain an important part of the marketing mix. Therefore, it is incumbent upon the marketing team to explain and defend these ‘awareness’ investments for the long-term health of the organization. The marketing team should also look for important correlations to justify these programs (correlations of direct/organic traffic with various programs, for instance).

In my opinion, marketing must continue to pursue attribution while keeping in mind the limitations of the current systems. Marketing investments should be made recognizing that the team cannot measure all aspects of the marketing mix, and more importantly, additional attribution effort investments should be made with an eye on overall effectiveness. While imperfect, I am reminded of the saying, ‘Even one candle sheds a lot of light in a dark room.’ Without attribution, marketing has no guidance about future investments.  But at the same time, marketing programs with impacts that are difficult to measure must not be ignored.

[Important note: Management should also look at the costs and benefits of the attribution process itself to ensure it is worth the effort. Tracking every last ounce of attribution adds significantly in terms of labor and cost, and at some point, these programs reach diminishing marginal returns. How a marketing team should optimize its spend on marketing attribution is a discussion for another time.]

Lesson: Spending time and resources on marketing attribution is critical, but it is just as crucial to realize program and system limitations to make truly optimized investment decisions.