by scott.gillum | Feb 1, 2022 | 2022, Insights
As previously published on 1/26/22 in The Drum
by Scott Gillum
Estimated read time: 5 Minutes
Does the answer to improving B2B marketing success tie back to a problem discovered during World War II? Perhaps.
The B-17 plane was quick and inexpensive to build with a goal of “blackening the sky” over Europe. The problem with that strategy was because they were designed to be quickly built they ended up being easily shot down. In fact, soon after entering the war, the B17 was getting shot out of the sky faster than they could be built.
Recognizing that something had to be done to keep them in the air, the decision was made to assemble a group of engineers to study the returning planes, and assess where to add armour.
The team was about to submit their findings when Abraham Wald, a lead engineer on the project, pointed out that they were thinking about the problem the wrong way. Instead of putting armour on areas that were damaged by bullets, they should be thinking about adding armor to the areas where there were no bullet holes, because those areas were most vulnerable.
This phenomenon, known as “survivorship bias,” can be seen all over B2B marketing. Survival bias is a type of selection bias. It’s a logic error that occurs when focusing on things that survive rather than looking at things that didn’t. By selectively leaving data out of the analysis it can cause one to make the wrong conclusion, like putting armor on the bullet holes of returning planes.
In B2B marketing, there are signs of this bias in almost everything we do. We try to scale and “optimize” a 3% response rate or 10% open rate. Focusing on the “returning planes,” missing the opportunity to assess, and understand, how to improve on the 90%+ of our effort that didn’t return a result.
This myopic view on scaling the “3%” drives us to an endless cycle of investing in new technologies. Providing a momentary boost in performance which quickly dissipates. This stacking more tools on the “stack” has now put us at the top of the yield curve. Essentially, marketing tools are now being shot out of the sky faster than they can be built.
Scale has become the enemy of the good. Remember this for 2022. Volume will not necessarily get you to your goals. For example, according to Hubspot’s 2021 Industry Survey (over 100K companies) email performance dropped by 30% from the previous year, which was historically low. So what did companies do? They sent even more emails, increasing by over 120%. (I believe that is commonly referred to as the definition of insanity.)
For years, I searched for an answer for why marketing performance continued to be poor, despite advancement in new technologies. Stumbling upon survival and selection bias helped to explain some things but what I’ve concluded is that at the core, it’s a motivational issue. Confusing activity for performance is convenient. Searching for, assessing and acquiring new tools offers hope and can feel like you’re making progress.
It’s time to stop looking external for a solution and turn our efforts internally. The answer to improving performance lies in the insight from the missing data.
To win the war on poor performance will require a commitment to thinking differently, like Wald. Not everyone will be willing, or able, to make this journey, but as another WWII hero, Winston Churchill once said; “To improve is to change; to be perfect is to change often.” Onward soldier!
by scott.gillum | Oct 1, 2021 | 2021, Marketing, Sales
Scott was a guest speaker at the WVU Marketing Horizon podcast, a sub-series of WVU Marketing Communications.
Marketing Horizons is forward-thinking, looking ahead, through the front windshield and beyond, into the marketing future. Hosted by Cyndi Greenglass and Ruth Stevens, Horizons is a podcast dedicated to looking ahead to the new ideas, technologies, tools and strategies that are emerging to help marketers navigate over the marketing horizon.
Listen here. https://bit.ly/2ZNfYpC
by scott.gillum | Jul 7, 2021 | 2021, Marketing, Sales
As previously published on 7/7/21 in The Drum
by Scott Gillum
Estimated read time: 5 Minutes
Selling something to someone is risky…for them, not you, especially if this is a first time purchase. You’re asking a buyer to take a risk making a decision with the organization’s money, on a vendor or solution they don’t know, with only the promise of a reward to come.
The first part of the buyer’s journey involves three things – collecting information (about vendors, solutions, etc.), defining/understanding the need/problem, and trying to mediate risk (see the first two).
The point; where there is risk, there is an emotional buyer. The rational driver of the decision making process takes a backseat to the emotional side of the brain. And now for the problem, the way we qualify and measure the quality of a lead or buyer is almost completely rationally driven.
Let’s take BANT (Budget, Authority, Need and Timing) as an example. Do they own or have access to a budget? Rational. Are they the decision maker? Rational. Do we understand their needs? Check, rational. Do we know the decision making timeframe or when the budget might be available? Check, and check.
Maybe it’s unfair to use BANT, so let’s try using Strategic Selling as a framework. Are they the economic buyer? Rational. Are they the technical buyer? Rational. Insert your own process or steps from marketing automation, ABM program, CRM platform, etc…, and you’ll come to the same conclusion.
The point is, our performance is poor and does not improve because we are not capturing half or more of the key elements of the purchasing process. We track an action or activity without understanding the reason behind it.
Downloading a white paper, attending a webinar, or requesting information may or may not indicate intent. Without understanding the reasons behind those actions, we can only use metrics based on similar actions from the past and that is why our performance is so poor. It’s also the reason why it is so difficult to improve performance.
Our metrics too often reflect rearview mirror actions, recording what happened in the past without insight into what will happen in the future. AI will begin to fill in that blank but it will be informed only by looking at what actions happened in the past as well.
We have no metrics for tracking the emotional involvement of the buyers involved in the purchase decision. And the most important of all of them is motivation.
Plenty of organizations and decision makers have needs. The question is, are they motivated to solve them. Most importantly, are they motivated to advocate for your brand or solution? The more you understand the differences in buyers’ personal preferences and motivations the more you’ll understand that the way we measure our sales and marketing activities, and performance, is incomplete.
For example, some buyers are motivated by bringing new ideas into the organization but will not advance the buying process. Others will champion ideas and drive them forward, but only if it benefits them. These behaviors ebb and flow within the corporate culture. A culture that also has its own motivations and behaviors, impacting how buyers behave within it.
And all of this is happening in real time, not in a well defined process, with rational steps neatly constructed within a linear timeline. Contributing to the challenge is the ever growing investment in the sales and marketing tech stack that chases optimization through machinery…e.g. volume. Because we can’t get better, we have to go broader.
What to Do
Sales is not just a “numbers game”, it’s also a head game, and it’s time for us to get our heads into that game. There are three steps that can help you track the “softer” side of the buying process.
- Understand that corporate culture impacts decision making – start defining the dominant corporate culture. Is it sales, product, science, engineering, etc…? Track competing initiatives inside the org that may disrupt your sales success. This will help you understand the organizational motivation and how to align your efforts. Also, as a start, see Hank Barnes insightful work on corporate culture.
- Understand that buyers have personalities which impact motivations – marketing has recognized that emotions exist in B2B and are being used to motivate audiences to take action, but this has not made its way into demand generation and sales.
- Add the right tool to the martech stack – invest in personality profiling tools like xiQ or Crystal Knows to add the emotional elements that you are currently missing.
In order to improve, we need to add “why” metrics to the “what” currently tracked. As Kurt Vonnegut put it in his novel Player Piano, “If it weren’t for the people, the goddamn people always getting tangled up in the machinery…the world would be an engineer’s paradise.” For better or worse, our buyers are people, not a role or a title, and those people are rational and emotional.
The way we have constructed our measurement systems is based on an overly rationalized process driven by legacy manufacturing management practices that seek optimization through repetition. It’s not working. It’s time to rethink the machinery so we can help ourselves from getting tangled up in it.
by scott.gillum | Jun 29, 2020 | 2020, Marketing
by Scott Gillum
Estimated read time: 3 Minutes
Build Your Personal Brand & Become a Trusted Advisor. Now that we’re online almost exclusively, every interaction with buyers is being scrutinized. You ARE the company’s brand, now more than ever. Learn how to navigate this high risk environment with our CEO Scott Gillum and xiQ, Inc. CEO Usman Sheikh. Webcast now available on demand here.
Before people decide what they think of your message, they decide what they think of you. The more personalized our communication, the more we show that we care. Whether it’s an email or a one-on-one presentation, marketers and sellers need to do their homework on understanding their prospects and their business needs to appeal to their emotions and build trust.
Personality-Driven Engagement (PDE) by xiQ equips B2B professionals with the insights to build highly personalized messages that build emotional connections with their clients. xiQ uses AI to understand what motivates people, what drives them, and how to influence their decisions.
B2B professionals will learn how to:
- Build their own personal brand
- Understand the personality type of their buyers
- Individualize communication
- Analyze content that resonates
Who should view this webcast?
CMOs, CROs, B2B Account Managers, ABM & Sales Leaders, Marketing and Sales Professionals MUST attend this webinar. This session is OPEN for All.
View the webcast here.
Build Your Personal Brand & Become a Trusted Advisor.
by scott.gillum | Mar 18, 2020 | 2020, Sales
by Scott Gillum
Estimated read time: 1 Minute
Given the popularity of our last video clip we are releasing another clip of Scott’s interview with Brent. In this slightly longer piece Brent addresses the question of what to do if the buyers felt like they had all the content they needed to make a purchase decision and all sales reps were trained on Challenger. How could you still compete?
To view the full interview with Brent Adamson please click here.
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