Success occurs at the intersection of Preparation and Opportunity


I’m delivering a big marketing keynote speech at Foxwoods Resort and Casino this week. How did I win this?

Preparation comes first

Here’s what I did in preparation:

  1. I created a compelling keynote speaker page
  2. I created a slick looking professional profile

As a result, I looked like a highly professional marketing keynote speaker to anyone searching for one.

Along comes Opportunity

One day in January 2014 a manager went to his assistant, Jennifer, and said “We need a really good keynote speaker for our big company meeting in April. Please find one for me.”

She started searching using Google and soon found Jeff Ogden, the award-winning marketing expert and creator and host of Marketing Made Simple TV. She started looking at what he’s been doing.Marketing Made Simple TV

She goes back to her boss and says “I really like this guy, Jeff Ogden. He looks VERY impressive.” Her boss agreed and they contacted me. (Note, Talk to Jeff is featured on my keynote speaker page, so contacting me is easy.)

Yesterday, they asked for my professional profile, so the boss can practice introducing me.  I sent what I had previously done. They LOVED it.

If this is not proof that success is the intersection of preparation and opportunity, then nothing is.

What do you think? Have you ever experience anything like this?

 

The Top 10 Reasons NOT to Talk to Find New Customers


According to Chris Malone, Warmth and Competence is the characteristics of great brands – and people.

We like people and brands that are not only skilled at what they do, but they are friendly and nice as well.

Think of a high end brand like Rolex watches. Great watches, clearly, but you don’t think of them was friendly. Competent but not Warm.

Now think of the American Red Cross. They do great work, and they are willing to help anyone in need. Warm and Competent.

Top Ten

We like to say that Find New Customers is the nicest company in the b2b marketing space. Nice = Warm.

Many others are highly competent, but most all of them are lacking in Warmth, I think. That’s where we win.

That said, there are some who would rather not talk to us. So I share our tongue-in -cheek list for you.

Here are the Top 10 Reasons NOT to Talk to Find New Customers:

10. Who is Find New Customers?

9. You like mean and nasty people

8. You cannot find the phone

7. You offered your salespeople more leads and they said no.

6. You just went on vacation.

5. The boss just lowered your sales quota

4. You just hit the lottery

3. Your rich uncle just died and left you everything

2.You are eight years old and don’t know what a lead is

1.You are tied up, bound and gagged.

What do you think? We love to read your comments and appreciate those who share on social media.

P.S. I’m also hired to deliver a keynote speech on marketing. I’ll tell you about that next week. Stay tuned.

3 Marketing Ideas from a great marketing company – Kinaxis


B2B Demand Generation | Learning from the best

What can you learn from the savviest marketing companies on Earth?

Kinaxis is a supply chain software company in Ottawa, Canada that competes against much larger rivals with very deep pockets.  With that kind of challenge, how are they faring?

Quite well. Thank you.

I spoke with Kirsten Watson, now VP of Marketing at Kinaxis. (Congrats on your promotion, Kristen.) Insights from her interview became the inspiration for this blog article – good stuff you can use.

In processing Kirsten’s interview, I was struck by the utter simplicity of their approach. It can be boiled down to 3 key points that you can use in your business:

  1. Attract prospective buyers with Humor and Search Engine Optimization (SEO)
    Lots of funny videos like SuiteMates, (below) Married to the Job, and Late, Late Supply Chain Show. (modeled after David Letterman’s show.) And they relentlessly focus on high rankings in search engines for their keywords.Here’s a sample:
  2. Keep prospective buyers with thought leadership
    Thought Leadership
    A robust blog, third-party experts (with smiling photos and short bios of real people), featured content, content published in third-party publications.Once they visit, they stay.
  3. Think Like a Publisher
    A good example of publishing is what they do when they create a white paper. Ardath Albee talks about the Rule of 5 on content – instead of one piece of content, turn it into five.
    Here’s the process Kinaxis uses:
  • Produce a white paper (1)
  • Video interview of the author, asking her about the white paper. (YouTube) (2)
  • Then they strip out the audio for a podcast. (iTunes). (3)
  • Finally, they produce a transcript, which is used in 3-4 blog articles. (Blog) (4,5, and 6)

Results

One year after starting the process of moving from 1. to 2., Kinaxis measured these results.

  • 2,700% increase in website visitors
  • 3,200% increase in conversions (leads)
  • 5,300% increase in traffic to the blog

It’s not complicated, is it? Attract ‘em with humor and SEO, keep them with though leadership content and use publishing approach to create lots of content – which feed both SEO and thought leadership.

Are you thinking “It’s too hard and we don’t have the people or the budget for this?” Sorry, but the marketing department at Kinaxis is only four people and their marketing spend is in line with industry averages.

Is B2B marketing really that complicated? Or can we take ideas from companies like Kinaxis to make a big difference?

What do you think? We love comments and people who share.

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Jeff Ogden (@fearlesscomp) is the President of the B2B lead generation consultancy Find New Customers. Find New Customers helps companies dramatically improve revenue results by transforming the way they attract, engage and win new customers. Contact Find New Customers by calling (516) 495-9350 or sending an email to sales at findnewcustomers.com.

“If more companies listened to (Find New Customers) a lot more would be sold.” Dan McDade, Pointclear.

Aligning Sales and Marketing – Why It’s Not Working and What to Do About It


B2B Demand Generation | Aligning Sales and Marketing – the Importance of Elephants

Each day I hear the drumbeat…Align sales and marketing for revenue results. One problem: The message is wrong and is not working. Marketing and Sales are as far apart as ever in most firms. At one of Find New Customers clients the marketing team complained about the lack of cooperation from sales.

In the book at left, Chip and Dan Heath share insights on how to effect change when change is hard – like aligning two very different groups in your company.

They feel the tension between emotions and rational thought is illustrated by University of Virginia psychologist Jonathan Haidt in the book The Happiness Hypothesis where he introduces the analogy of a Rider on an elephant. It looks like the Rider is in charge, tugging on the reins, but when the massive elephant choose his own agenda, there is nothing the Rider can do. The six-ton elephant always gets his way.

In this analogy, the Rider is your conscious effort – willpower, rational thought. The elephant is your emotional and instinctive side.

Your elephant has overpowered your Rider anytime you slept in, over-ate, skipped the gym, said something you regretted, refused to speak up in a meeting, or hit the “snooze” button repeatedly. The elephant thinks short-term – looking for instant gratification. But the elephant is also emotion – love, compassion, sympathy and loyalty. Ironically, the elephant is the one that gets big things done.

To make change happen, you must appeal to both the Rider AND the elephant.  The Rider provides planning and direction, while the elephant provides energy. If you reach Riders only, the listeners have understanding but not motivation. If they reach elephants, but not Riders, they have passion without direction. What most blame on people is a process problem.

Align Sales and Marketing is a message that is squarely directed at Riders. It makes sense. But there is no emotion in it. And it is not specific. It does not give instructions. This is why the drumbeat of “Align Sales and Marketing” accomplishes nothing.

Illustrating the power of the Elephant with Work Gloves

The power of this approach was illustrated by a worker named Jon at a large manufacturing company. Jon believed his company was wasting vast sums of money due to poor purchasing practices. So what did Jon do? Did he create a PowerPoint presentation for his management? No. He knew they would not believe him. He needed a way to illustrate the problem.

With the help of an intern, he collected the work gloves purchased worldwide by his firm. The company used many suppliers and prices were all over the map. He collected these gloves and carefully cataloged them with prices and vendors.

Jon piled all the gloves on a conference room table and called in his management team. He explained that all these gloves were purchased by the firm, but there was no consistency. Here’s how he recalled the scene:

“What they saw was a large expensive table, normally clean or with a few papers, now stacked high with gloves. Each of our executives stared at this display for a minute. Then each said something like “We really buy all these different gloves?” Well, as a matter of fact, we do. “Really?” Yes, really. Then they walked around the table…They could see the prices. They looked at two gloves that looked exactly alike, yet one was marked $3.22 and the other $10.55. It’s a rare event when these people have nothing to say. But that day, they just stood with their mouths gaping.”

The gloves exhibit soon became a traveling road show, visiting dozens of plants. Soon Jon had the mandate he needed. The company changed its purchasing policies and saved millions of dollars.

In this story, Jon appealed not to just the Rider – with cold, hard facts. Instead, he appealed to the elephant – shocking them with the visual display of purchasing inefficiencies.

This, in a nutshell, is the problem with the Sales/Marketing Alignment problem. It appeals only to the Rider. There is no emotional appeal whatsoever.

Another key idea from the book is the idea of specificity. Eat healthy is vague.

  • Do I stop eating meat?
  • What about in a restaurant?
  • Is three meals a day best or do I eat more frequently?

But in the book they illustrate this problem by discussing the massive amount of fat consumed from milk. Skim or 1% milk would greatly reduce the fat consumed, but people use whatever they find in their refrigerator. So we really have a purchasing problem. We need the shopper to reach for skim or 1% milk when she shops.

Changing how people purchase milk using the Elephant

The emotional elephant was addressed by the graphic display of a clear tube filled with fat. It was explained that this was the excess fat in a half-gallon of whole milk.

For two weeks, the researchers ran spots on local media in Virginia. The campaign was punchy and specific. Looking at 8 stores, they found that the marketing share of low-fat milk jumped from 18% to 41%, eventually settling at 35%.

A key point here is specificity. If you want people to change, don’t say “act healthier.” Instead say “Next time you’re in the dairy aisle, reach for a jug of 1% milk rather than whole milk.” Tell them exactly what they need to do.

(Please note that “Align Sales and Marketing” sounds just like “Eat Healthier.”)

The authors share a basic three part framework for change:

  1. Direct the rider. What looks like resistance is often a lack of clarity. Make your directions explicit and clear. “Align sales and marketing” is not explicit and clear.
  2. Motivate the elephant. What looks like laziness of often exhaustion. The rider cannot get his way by force (will-power) for long. You must engage people’s emotional side.
  3. Shape the path. What looks like a people problem is often a situation problem. Shaping the path is addressing the overall process. Maybe sales and marketing seem to be at odds, but if you can design processes to help them, engage you are shaping the path.

What do you think? How do you think we can add an emotional (elephant) appeal to the Marketing/Sales Alignment problem? How can we be specific (and direct the Rider?)

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Jeff Ogden (@fearlesscomp) is the President of the B2B lead generation consultancy Find New Customers. Find New Customers helps companies dramatically improve revenue results by transforming the way they attract, engage and win new customers. Contact Find New Customers by calling (516) 495-9350 or sending an email to sales at findnewcustomers.com.

“If more companies listened to (Find New Customers) a lot more would be sold.” Dan McDade, Pointclear.

16 Marketing Terms to Ban Today


B2B Demand Generation | 16 Marketing Terms to Dump Now + Bonus

A good friend, Paul Dunay, who writes the popular blog Buzz Marketing for TechnologyWrong Indeed once told me that B2B marketers are in an “Arms Race around Content.” This means that companies are one-upping each other on content.

One of the keys to great b2b lead generation content is to make it engaging for your reader. This means to use terms readers use – not terms your industry uses. But what words are the worst?

The great book, Content Rules by Ann Handley and CC Chapman, had a superb list of words used in BtoB marketing that need to go away. The use of these words is egregious in technology. They drive me nuts!

I share this list below, as well as a bonus list of common mistakes.

  1. Impactful
    nonsense word. Try influential or powerful instead.
  2. Leverage
    a noun morphed into a verb. Try influence, enhance, rely on or just use.
  3. Learnings
    a word for an idea that somehow became plural. Makes no sense.
  4. Synergy
    A snazzy word that means nothing. Try cooperation, or help, or join.
  5. Revolutionary
    A stairway to the Moon. Overkill. Kill it.
  6. E-mail Blasts
    Are you a spammer? Only spammers blast prospective customers. (Unfortunately, the marketing automation software we use has a menu titled “Email Blasts.” I cringe every time I see it.)
  7. Proactive
    The opposite of reactive. It’s pompous and should not be used. Try active, anticipate, forestall or foresee.
  8. Drill down
    A sin of software firms. Try in-depth or detailed.
  9. 30,000 Feet
    A high level overview. Doesn’t that sound better?
  10. Incenting/incentising
    This smelly one belongs to sales. Try encourage.
  11. Almost any word that ends in -ize
    monetize, socialize, etc. As the book says, it sounds like it comes from a robot.
  12. Solution
    This is the word used when you cannot explain your product.
  13. Users
    Dehumanizing word that strips people of their identity. Why not people, customers, friends?
  14. Any word applied to technology, such as
    ping for follow-up
    bandwidth for capacity
    Offline for not working
    Use words that describe what people do
  15. Overused words
    Granular
    Robust
    Strategic
  16. Mashed together words of any kind
    Buy-in, mission-critical, value-add, face-time, win-win, low-hanging - can you say bore-ring?

Remember, you are talking to human beings, not robots. Write as if you are meeting on old friend for drinks. The way you talk to her is the way you should talk to prospective buyers.

Your Bonus

Here’s a bonus for you English majors. Common writing mistakes from GlobalCopyWrite. Contact Sarah Michell at http://www.globalcopywriting.com

Public Service Announcement
As a service to anyone interested in evading the ire attached to the usage of these words, I’m providing a list. Use them at your peril. The overriding sentiment about non-word usage is it demonstrates lack of intelligence, education or attention to detail. If these words are appearing in your normal business communications and marketing collateral, my advice is to get rid of them and do it quickly.

The Top Offenders
Two words were submitted repeatedly. Obliterate them from your vocabulary.

  • incentivise
  • agreeance

Other non-words peeving the pets
In no particular order:

  • supposably
  • ideation
  • positivity
  • onboarding
  • de-train
  • de-plane
  • onforward
  • verbally facilitate
  • unpacking (as in “unpacking the issues”)
  • disaggregations
  • misunderestimated
  • conversating
  • embiggened
  • learnings
  • irregardless
  • anonymize
  • operationalize
  • Westralia

Errors in Usage
Plenty of people complained about real words being used at the wrong time or in the wrong context.

  • enormousness vs. enormity
  • thankyou vs. thank you
  • round vs. around
  • penultimate vs. ultimate
  • hone vs. home
  • momentary vs. momentarily
  • phenomena vs. phenomenon

The evergreens in this category:

  • lose vs. loose
  • chose vs. choose
  • there vs. they’re vs. their
  • its vs. it’s
    On contractions, just say them out loud. For instance, on it’s, say “it is” Or on they’re, say “they are” Does that fit in your sentence? If not, use the ones without the apostrophe.

What do you think? We love comments and people who share.

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Jeff Ogden (@fearlesscomp) is the President of the B2B lead generation consultancy Find New Customers. Find New Customers helps companies dramatically improve revenue results by transforming the way they attract, engage and win new customers. Contact Find New Customers by calling (516) 495-9350 or sending an email to sales at findnewcustomers.com.

“If more companies listened to (Find New Customers) a lot more would be sold.” Dan McDade, Pointclear.

Trust and the Big Lie of Lead Generation


B2B Lead Generation: Capturing Accurate Information on Forms

Last Friday, someone filled out this form to download content. It’s exactly the theme of this post. People lie.

(By the way, we no longer deliver the content after the form is completed, we email a link to the content. This ensures they use a valid email address.)

First Name : zxzx
Last Name : zxzx
Email (valid corporate email address is required) : zxzxzxzx@ssds.sds
Job Title : Sales Leader
Phone # : sdsd
Web Site URL : dsds

Vince Giorgi writes the blog TouchPoint City and he recently wrote a very

Pinocchio

provocative post called The Big Lie of Lead Generation.

I wish to comment about it there.

The big lie Vince cites is this.

People put fictitious information on registration forms on your landing pages. Why? They don’t want to opt in to your telemarketing and email campaigns.

More than 1/2 admit to faking phone numbers. When asked why they put in fake information, almost 3 out of 4 cited “Avoid follow-up sales calls or marketing contacts.”

Even IBM screws up. In a recent CMO study, they ask for not only name and email, but phone number, company size, street address and phone number.

I abandoned it and I bet a lot of other people did too. Really dumb move by IBM – asking WAY too much.

What’s the marketing take-away here?

Earn trust and use progressive profiling.

It’s not enough to capture information – a people who don’t trust your company don’t provide accurate information. Your brand is important, people must trust it.

This is why you need a good, frequently updated blog (this blog posts 7 days a week) and to be active on social media – listening and sharing.

Becoming a thought leader and establishing a trusted company, like Find New Customers, (who’s motto is “Always be helping”) is key in getting accurate information.

What do you think? We love comments and our subscribers.

How many leads will you need to make your quota? Use our free calculator.

Please note that our wonderful free “cheat sheet” on lead nurturing “The 7 Keys to Lead Nurturing Success” is a small taste of what you get in our terrific white paper, How to Find New Customers.

Jeff Ogden is President of the B2B lead generation consultancy, Find New Customers. Find New Customers helps companies rapidly grow revenue by transforming how they attract, engage and win new customers. Contact Find New Customers by calling (516) 495-9350 or by emailing sales at findnewcustomers.com.

Inbound Marketing vs. Outbound Marketing [INFOGRAPHIC]


B2B Demand Generation | The Move from Outbound (Traditional) to Inbound (New) Marketing

Superb infographic by Voltier Digital that ran at Mashable that I HAVE to share today with our great fans. More and more good lead generation programs have larger and larger inbound components. Enjoy!

__

Thanks to the Internet, marketing has evolved. Buyers no longer rely on billboards and TV spots — a.k.a. outbound marketing — to learn about new products, because the web has empowered them. It’s given them alternative methods for finding, buying and researching brands and products. The new marketing communication — inbound marketing — has become a two-way dialogue, much of which is facilitated by social media.

Another reason why inbound marketing is winning is because it costs less than traditional marketing. Why try to buy your way in when consumers aren’t even paying attention? Here are some stats from the infographic below.

  • 44% of direct mail is never opened. That’s a waste of time, postage and paper.
  • 86% of people skip through television commercials.
  • 84% of 25 to 34 year olds have clicked out of a website because of an “irrelevant or intrusive ad.”
  • The cost per lead in outbound marketing is more than for inbound marketing.

Inbound marketing focuses on earning, not buying, a person’s attention, which is done through social media and engaging content, such as blogs, podcasts and white papers. This content is interesting, informative and adds value, creating a positive connection in the eyes of the consumer, thus making him more likely to engage your brand and buy the product. So it costs less and has better a ROI.

This infographic from Voltier Digital highlights the differences between the two kinds of marketing. Let us know your opinions in the comments below.

Infographic courtesy of Voltier Digital

Laugh and Learn with Find New Customers | Episode 51 – The Beard


In his weekly B2B marketing show, Jeff Ogden, President of the B2B lead generation company, Find New Customers (http://www.findnewcustomers.com) shares a key marketing take-away using wit and humor. In this episode entitled “The Beard”, he explains how marketers can can use the element of surprise to engage in a noisy world.

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Jeff Ogden (@fearlesscomp) is the President of the B2B lead generation consultancy Find New Customers. He’s also the host of the new B2B marketing show Mad Marketing TV, sponsored by Act-On Software.
Find New Customers helps companies dramatically improve revenue results by transforming the way they attract, engage and win new customers. Contact Find New Customers by calling (516) 495-9350 or sending an email to sales at findnewcustomers.com.

“If more companies listened to (Find New Customers) a lot more would be sold.” Dan McDade, Pointclear.

How to Do Great Marketing with (Almost) Zero Money


This post originally ran at SaneraPDC.com as part of March Marketing Madness. You can find the original post at http://www.sanerapdc.com/2011/03/how-to-do-great-marketing-with-almost-zero-money-jeff-ogden/ We wish to share it with our readers here. Or watch this Slideshare:

____

You’re in for a treat! Welcome to the 2nd in a series of marketing specific posts for small business owners called March Marketing Madness.

My guest expert today is Jeff Ogden, President of Find New Customers. I met Jeff virtually on Twitter via #B2BChat (I suggest you follow that Twitter conversation Thursday nights) and was impressed with his insights. The more I got to know Jeff, the more impressed I became. He has won awards from Marketing Sherpa and HubSpot and is an in-demand keynote speaker. The best news? He’s a small business owner who has proven successful in making marketing work.

Jeff, welcome to Sanera!

Can you really market a business without a lot of money?

broke businessmanMany small companies and startups are afflicted with a serious problem – they have little spare cash. But they are looking to sell their product and services.

With limited funds, they cannot do outbound marketing – buy ads on radio, in newspapers or on TV. They cannot buy booths at trade shows. These approaches have been primary means of attracting customers in the past.

Without deep pockets can they really market their businesses and get new sales opportunities? Have times really changed that much? If so, how can they marry those two – a lack of funds and the need to win new business?

The recession impacted businesses hard. But we can also look at today in a ‘glass is half full’ mind-set. In many ways, you’re lucky today.

Technology and the advent of high speed connection and social networks means the world has changed dramatically. Brian Halligan, President of the inbound marketing software company, HubSpot (one of the fastest growing companies in the USA) says “It used to be that businesses competed on the width of their wallets. Today, they compete on the width of their brains.”

If we take Brian at his word, that means if you are smart, you can compete with the big boys – even if you lack the millions of dollars some companies spend on marketing. Let’s look at how this is done. Here are six action items you can do today – for little money:

1. Know your prospective customers – deeply (Cost: Near zero)

You want to know everything. What do they care about? Where do they turn for information? What kinds of events trigger a decision? Whom do they trust? Where do they look for answers – friends, social networks, Google, Trade Associations? Spend some time doing the research. Pick up the phone and call a few. Ask questions on LinkedIn. Create a survey (SurveyMonkey) and send it out. The better you know prospective customers, the more effective your marketing, so take your time and do it well. Document your customer map.

2. Create great content. (Cost: not more than $200)

Now that you really know what makes buyers tick. one of the best ways to demonstrate knowledge is to start writing a blog. Sign up for a blogging platform like WordPressBlogger or Typepad. Then write and publish articles. Add images from sources like Flickr and iStockPhoto. (Look for Creative Commons licensing by doing an advanced search.)

3. Distribute your content on social networks (Cost: Zero)

Make it really easy for prospective customers to find by posting to social networks like LinkedInTwitterFacebook as well as DiggDelicious,StumbleUponSlideShare (presentations), YouTube (video). Also, when you post your content, add your search marketing keywords so that search engines can index it.

4. Create a simple to understand website (Cost: A few hundred dollars)

You need a good home to post your content. Make sure it is simple and easy to navigate. Add registration forms for them to sign up and download your content. (I suggest you give away some with no registration – especially simple tools and documents, while putting more in-depth content behind a gate. (Don’t ask for too much either. Name and email is a good start. People hate long and complex forms.)

5. Re-imagine your content (Cost: Not more than a couple of hundred dollars)

This is where the power comes in. Take your existing content and turn it into something different. Maybe a text interview of a thought leader can become a YouTube video. In our case, we turned a popular blog article, 7 Keys to Successful Lead Nurturing into a very slick looking Cheat Sheet. Cost for the graphics work – $100. You can also take an ebook for instance, and create a PowerPoint presentation. Upload it to Slideshare, and add a YouTube video or audio to your presentation. Again, use your keywords when you upload it.

6. Give to Get (Cost: Zero)

Become active online. Follow interesting industry people on Twitter. Check out fan pages on Facebook. Read their blogs. Once you’ve become really familiar with them, start posting thoughtful and careful comments. Do a lot of commenting on industry blogs. People really read those.

Once you’ve done those six things, keep it up. It is a marathon – not a sprint. Keep publishing, listening, posting. Over time, you will get more and more traction. Over many months, your traction will grow and grow. You will find more and more people interested in your services.

At Find New Customers, we’ve embraced this approach. In the last few weeks, we’ve had prospective customers sign up and download content and subscribe to our blog. We co-hosted a big marketing summit. We’ve been featured in two books. We were featured in a white paper on B2B blogging. We were a guest on HubspotTV recently. And we’re a young and small business with very shallow pockets.

It CAN be done. You can do it.

Who Is Jeff Ogden? Jeff is the president of Find New Customers, a demand generation consulting company with the theme “Lead Generation Made Simple” and the goal to transform the world of B2B marketing.  Jeff is also known in the B2B demand generation world for his blog The Fearless Competitor. He’s won numerous awards from entities such as MarketingSherpa and Hubspot; has been quoted by social media marketing expert Paul Gillin in the new book Social Marketing to the Business Customer; and is a highly sought-out speaker – a certified speaker for the CEO group Vistage and presented at the CMO Thought Leadership Summit. Jeff previously worked as VP of Sales & Marketing at Greenlight LTD in London and as Global Leader for GE for Business Objects Americas – delivering a 242% revenue increase in just 12 months. He’s a graduate of the University of Notre Dame, where he earned a degree in Marketing.

You can connect with Jeff via TwitterFacebookLinkedInYouTube, his website, by phone at (516) 495-9350 or via email at jeff.ogden at findnewcustomers.com.

How big should our marketing budget be?


B2B Lead Generation | Size of the Marketing Budget

I was recently asked this question by the VP of Marketing at a young software companyDollar Puzzle. “For a software company, what percentage of revenue should represent our marketing budget?

Good question, but instead of a rough rule of thumb, Find New Customers suggests you do a few calculations to arrive at more specific outcomes.

  1. What is your revenue goal for the next 12 months?
  2. What percentage of that revenue has to come from new customers?
  3. What is your average deal size?
  4. What percentage of sales-qualified deals do you win?
  5. How many sales-qualified leads will you need to make the revenue goal?
  6. What percentage of marketing-qualified leads turn into sales-qualified leads?
  7. How many marketing-qualified leads do you need to make the revenue goal?
  8. How many raw opportunities do you need to generate to create the number of marketing-qualified leads needed?
  9. What is the marketing spend needed to generate a raw lead?
  10. Multiply the cost of each raw lead by the number of raw leads needed. That’s your marketing budget.
As you can see, instead of a rough guess at a marketing budget, you can actually calculate the budget needed to generate the new customer revenue needed.
What do you think? We love comments and those who share our content on social networks.

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Jeff Ogden (@fearlesscomp) is the President of the B2B lead generation consultancy Find New Customers. Find New Customers helps companies dramatically improve revenue results by transforming the way they attract, engage and win new customers. Contact Find New Customers by calling (516) 495-9350 or sending an email to sales at findnewcustomers.com.

“If more companies listened to (Find New Customers) a lot more would be sold.” Dan McDade, Pointclear.