Marketing Automation in B2B; Who, What, Why?

Marketing Automation (MA) is ever increasing in demand within all industry sectors. The drive of relevant content and knowledge has made a significant impact on how companies interact with their clientele.

Continued and sustained interaction through content marketing and email campaigns is vital to maintain relationships with existing customers and to create new business opportunities.

We predict that the demand for MA software will continue to increase in 2014.

Used effectively, MA target’s particular groups and provides a tailored response to any website requests or social media interactions. This arguably saves both time and money whilst enabling companies to better assess ROI and website analytics.

In conjunction with marketing technology website Software Advice’s new research, we examine the who, what and why’s of MA for 2014.

WHO?

Who is shopping for marketing automation?

Small and mid-size companies:

In recent years large companies, particularly those in the Tech industry, have dominated the demand for MA software. Surprisingly almost 50% of the buyer companies who featured within the research had less than 50 employees, whilst 24% of the sample were mid-size companies ranging from 101-500 employees.

This increase is likely to continue throughout 2014 and competition is set to rise as vendors compete to capitalise on the emergence of smaller companies entering the MA markets.

First time buyers:

91% of buyers were evaluating MA for the first time. This is likely to be a continuing trend throughout 2014/15, MA software can be expensive and many companies are unlikely to replace an existing MA software system for several years.

It’s important that companies choose the right MA system the first time and because of the cost involved many ensure they choose wisely. Only companies with huge turnovers are likely to be second or third time buyers.

WHAT?

What are buyers looking for in MA?

Improved efficiency:

Many companies spent much of 2013 being driven by the rise of content marketing, creating whitepapers etc. Now that this content has been created and distributed what next? The answer is to ensure that your content is creating good leads and ultimately generating revenue.

40% of buyers citing ‘lead management’ as their main reason for evaluating MA. A further 30% had a need to automate processes, this is likely a result of larger volumes of website engagement driven by increased content marketing.

Nurturing & reporting:

Buyers are also demanding certain features from MA, with 81% citing lead nurturing as their central feature of importance. This demand is closely followed by the 70% of companies who prioritised reporting and analytics as a must-have feature.

With ROI in marketing notoriously difficult to measure MA is seen by many as an answer to this problem.

WHY?

Why is there an increasing demand for MA?

Time & effectiveness:

Based on ‘what’ buyers are looking for from MA, there is an overwhelming shift away from traditional methods of interaction. An increasing number of companies, of all sizes, are moving away from basic CRM systems and pen/paper manual methods towards digital. 

Surprisingly 21% are still using manual, but trends suggest more are beginning to see the value and time of MA. It greatly improves the overall nurturing process and ensures that relevant messages are sent out on time without requiring reminders.

CRM isn’t enough:

Interestingly 48% of potential buyers are still using a CRM tool. An integrated system would be considered an effective way to cleverly balance the two. However this can be an expensive option to pursue if you have a bespoke CRM and so this doesn’t appear to be a viable option.

For a range of articles exploring B2B sales and marketing click here.

What does Time really mean to Sales?

Sales are directly affected by time; whether its time of day, day of the week or month of year. Although your company’s experience may not be a replica of those featured within this article, it illustrates the importance of examining trends.

The findings below are based on analysis of website traffic and conversion data over a 5 year period*. Please note that ‘conversion’ refers to a website visitor who requested contact and ‘qualification’ refers to conversions qualified through needs analysis and BANT.

1. The early agent catches the sale.

• The highest level of website activity is during work hours (53% above average).By 9am activity is up 69%, yet often some sales agents are still eating breakfast, checking emails or arranging their desks. Staggering agents’ working days (alternative shifts) to ensure motivated agents are raring to go by 8.30am could be more productive. 

• Lunchtime website activity (12pm-2pm) can be up to 90% higher than average and qualification rates increase by 12% just before lunch begins. Staggering sales agent schedules could help avoid an empty office at lunchtime, or even having a different lunch schedule that fits around this time of rich opportunity. Research suggests the faster you respond to a conversion the more likely they are to qualify.

• Conversion rates peak in the evening by up to 15% between 9pm and 11.59pm.The title of this article could have been ‘3 reasons to live in your office’ as research shows that weekday evenings also boast high conversion rates. The sales team is unavailable during these hours but it’s a great time to send out knowledge documents

2. B2B Sales hates Mondays.

• B2B website activity is highest mid-week (Tuesday-Thursday), with traffic peaking at 30% higher than average on Tuesday. High rates of website activity mid-week mean it’s imperative that you have enough sales agents to meet demand. Tuesday may be the best day for launching campaigns, interacting with social media and avoiding staff holidays. 

• Conversion rates fall below average on Monday and Friday. Hate Mondays? You’re not alone; many people avoid external interaction on Monday preferring to prioritise inbox demands. Monday is still 21% above average for website activity so blogs or white papers may perform well. Mondays and Fridays are also good days to consider for data gathering or other housekeeping tasks.

• Qualification rates are 4% higher than average from Tuesday to Thursday. It’s important to reinforce the necessity of having enough sales staff mid-week. Responding to a call back request within 5 seconds is 29% more likely to result in a qualification than a call 5mins later.

3. ‘Tis the season to avoid conversion?

• January through to May has the highest conversion rates (February performing a massive 10% higher than average). The beginning of the year has far better conversion rates, this is the most effective time to begin a new campaign as companies often have, or are in the process of planning, new budgets. For high-end, complex sales, beginning to nurture potential clients 3-6 months ahead of this period will increase likelihood of an existing relationship during January to May.

• Conversion rates dropped significantly during the summer months and December (December was 12% below average). Conversion rates fall during the summer, so this is the ideal time for the sales staff holidays or company events. The noticeable dip in December is likely to be the result of companies preparing for the New Year. December could be considered an important month for human interaction, account nurturing and campaign planning.

• Qualification rates are 2% higher than average from June to August. During these summer months qualification rates increased, which may be based on the conversion rates simultaneously falling below average. With less warm leads coming through agents have far more time to ensure they reach the right people and analyse each companies potential. 

Timing has a direct impact on your business. Research how your customers interact with your website, sales agents and social media in order to build your schedule around them.

Seasonality is also extremely important in B2B sales! So although this research may not reflect personal experience it’s vital that you plan your year to ensure it reflects your own company trends. Analysis of your monthly sales figures over three years could be a start.

*Software Advice