The Shift from MQLs to a Unified GTM Approach

Traditionally, marketing qualified leads (MQLs) were the focal point of most marketing efforts. However, as Kyle Poyar, Operating Partner at OpenView, highlights, “There might have been a time when marketing generated pipeline and sales closed it. But that’s not the world we live in now.” The shift from a siloed approach to a more holistic pipeline-building strategy is driven by the need for greater efficiency and effectiveness in a hyper-competitive market.

Today, successful pipeline generation requires more than just broad-based brand awareness campaigns. It demands a deep understanding of the Ideal Customer Profile (ICP) and the execution of targeted, strategic plays across the organization. Poyar adds, “The magic happens when we combine these plays in coordinated campaigns aimed at our best target customers.”

This coordinated approach is echoed by Adam Schoenfeld, CEO at Keyplay.io, who emphasizes the importance of ICP marketing. “It’s not just an ABM or outbound list. It’s about strategic focus across every motion. ICP Marketing is taking hold because it’s not another BLG (buzzword-led-growth)—it’s a return to fundamentals.”

The Role of ICP Marketing in Pipeline Building

ICP marketing, or Ideal Customer Profile marketing, has emerged as a cornerstone of modern GTM strategies. It involves identifying the specific characteristics of customers who are most likely to benefit from and invest in your product or service. This laser-focused approach enables companies to allocate resources more effectively, ensuring that every dollar spent on marketing and sales yields a higher return on investment.

Stephen Armenti, a demand generation leader with experience at Google, outlines the critical steps in this process: “Nailing your account selection, list building, developing an ICP, finding that ICP, aggregating the buying committee, and setting your targeting at the grey space… HAS to be the imperative for any marketing team trying to drive revenue from demand gen.”

By honing in on the right accounts and aligning efforts across departments, companies can maximize the impact of their campaigns. As Schoenfeld points out, “Focus is the way to GTM excellence.” This sentiment is shared by many industry leaders who recognize that the era of spray-and-pray marketing is over.

Cross-Functional Collaboration: The Key to Pipeline Success

One of the most significant challenges in modern pipeline building is fostering collaboration across traditionally siloed departments. Marcos Rivera, CEO and sought-after pricing expert, underscores this shift: “Building a pipeline today requires a coordinated effort across all teams—no more silos. It’s all about targeted, strategic plays that bring real value to the table.”

The alignment of marketing, sales, CS, and product teams is crucial for driving successful outcomes. Each department brings unique insights and capabilities to the table, and when these are integrated effectively, the results can be transformative. Poyar elaborates, “I don’t think everything necessarily needs an incentive attached to it as long as there are clear goals at a function, team, and individual level.”

However, clear communication and goal alignment are not always easy to achieve. As Serhii Pedan, Head of Revenue & Client Relations, humorously notes, “Everyone is an SDR now.” This reflects the growing recognition that all customer-facing roles contribute to pipeline generation, whether through direct sales efforts or by providing critical support and insights that drive the sales process.

The Return to Fundamentals in GTM Strategies

The current business landscape, marked by increased buyer scrutiny and tighter budgets, has led many companies to return to fundamental marketing and sales principles. Schoenfeld captures this trend succinctly: “While ‘growth at all costs’ may have brought short-term wins, I’m excited that buyer rigor has returned and that we’re getting back to the fundamentals.”

This return to fundamentals is not just about reining in spending but about ensuring that every action taken is aligned with the overarching goal of building a sustainable and scalable pipeline. Michelle Heath, Founder & CEO at Growth Street®, emphasizes the importance of having a well-defined ICP: “Without strong ICP definition, all bets are off. Once you know who, it’s easier to know the where, what, and how.”

Leveraging Data and Technology for Pipeline Optimization

As companies strive to reach and influence their target customers more effectively, data and technology play increasingly vital roles. The ability to gather, analyze, and act on customer data enables organizations to refine their ICPs, personalize their messaging, and optimize their campaigns in real-time.

Maxim Tanevskiy, a growth strategy advisor, highlights the importance of leveraging advanced tools and methodologies in this process: “This is a great cheat sheet, man. Subscribed!” His comment underscores the value of having actionable insights at your fingertips, allowing for more informed decision-making and better outcomes.

In addition, the integration of AI and machine learning into marketing and sales processes is opening up new possibilities for pipeline optimization. However, as Joshua Gainey, Director of Sales Development, wryly observes, “I thought AI could do all this?” While AI can certainly enhance efficiency and provide valuable insights, the human element remains indispensable in crafting and executing successful GTM strategies.

The Future of Pipeline Building: A Unified, Customer-Centric Approach

As we look to the future, it is clear that building a strong pipeline will continue to require a unified, customer-centric approach. Companies that succeed in aligning their marketing, sales, CS, product, and operations teams around a shared vision will be better positioned to reach and influence their target customers.

Kyle Poyar aptly summarizes the evolution of pipeline building: “There might’ve been a time when marketing could be spray-and-pray—hoping it reached the right people (hashtag#MQLs). But that’s also not the world we live in now.” Today, the focus is on delivering value through coordinated, targeted efforts that resonate with the right customers at the right time.

In conclusion, the days of relying on MQLs and siloed marketing efforts are over. The path to pipeline success lies in embracing a more integrated, cross-functional approach that leverages the power of ICP marketing, data-driven insights, and a return to fundamental principles. As companies continue to adapt to the changing landscape, those that prioritize alignment, collaboration, and strategic focus will be best positioned to thrive in the competitive marketplace.

As the discussion unfolded, Parul Garg set the stage by emphasizing the indispensability of effective collaboration between marketing and sales. “Collaboration between these two functions isn’t merely desirable; it’s imperative,” she asserted. “Given that marketing and sales are the primary touchpoints where customers interact with our brand, ensuring a seamless and consistent experience across these touchpoints is paramount.”

Throughout the engaging conversation, Parul delved into the nuances of collaboration, shedding light on the myriad challenges faced by marketing and sales teams in their quest to align their efforts. “One of the primary hurdles we encounter is the misalignment of timelines and priorities,” Parul elucidated. “While sales teams are inherently focused on driving short-term results and closing deals, marketers often adopt a more long-term perspective aimed at brand building and nurturing leads. Bridging these disparate perspectives requires a concerted effort to synchronize goals and strategies.”

Despite these challenges, Parul remained resolutely optimistic about collaboration’s potential to yield tangible outcomes. “By aligning our goals and strategies, we can create a cohesive ecosystem that delivers a consistent and compelling user experience, ultimately driving business growth,” she affirmed. “It’s all about fostering a culture of collaboration where marketing and sales teams work hand in hand towards a shared objective.”

The conversation seamlessly transitioned to the pivotal role of data in shaping strategic decisions, a topic that resonated deeply with Parul. “Data is unequivocally the cornerstone of informed decision-making,” she emphasized. “Whether it’s marketing or sales, harnessing the power of data-driven insights empowers us to optimize campaigns, identify emerging trends, and adapt our strategies in real-time to meet evolving customer needs.”

Drawing on her wealth of experience, Parul shared anecdotes of successful collaboration initiatives that testified to the transformative potential of aligning marketing and sales efforts. “I’ve witnessed firsthand the remarkable impact that a unified approach can have on driving business outcomes,” she reflected. “By aligning our strategies and leveraging each other’s strengths, we achieved significant increases in conversion rates, revenue growth, and customer satisfaction.”

Parul underscored the critical importance of aligning branding strategies to deliver a cohesive and compelling customer experience as the discussion reached its crescendo. “Consistency is key,” she emphasized. “Upholding brand promises and delivering on customer expectations across all touchpoints fosters trust, enhances brand loyalty, and ultimately drives sustainable growth.”

In conclusion, Parul left viewers with a message of empowerment, urging businesses to embrace collaboration and data-driven decision-making as linchpins of success in today’s competitive landscape. “By fostering a culture of collaboration, harnessing the power of data, and aligning branding strategies, businesses can confidently navigate the complexities of the modern marketplace and drive sustainable growth,” she concluded.

Dave Gerhardt, VP of Marketing at Drift, was recently interviewed on the B2B Growth podcast by John Rougeux who is VP of Marketing at Skyfii. Gerhardt discusses conversational marketing as a new B2B product category and how it is changing marketing from reaching out to you later to a conversation that is happening now:

Conversational Marketing is About Connecting You Now

Conversational marketing is a whole new way of thinking about marketing and sales. The traditional way of doing marketing and sales is all about later. Come to my website and fill out this form and somebody is going to reach out to you later, when it’s convenient for them. The big shift that is happening in marketing and business over the last five to ten years is customers have all the power today. You can’t make people wait. Information is free now.

I can find anything I want to know about a company without ever having to go to your website. It’s crazy to think that you are going to force people to go to your website, fill out a form, wait three days to hear back from your sales team, and then get a demo. Conversational is all about connecting you now with the people who are ready to buy now while they are live on your website.

B2P – Marketing to People

It’s not about buyers. It’s not about sellers. It’s not about sales. It’s not about marketing. It’s about people. That’s how people all communicate online today. I pressed one button in my car and I got a list. I ordered something from Amazon while I was here this morning to send back to my house and it’s going to be there tomorrow when I get home. There are countless examples of that. That is how we all behave online in our real lives today.

But then something happens weird happens. We go to our jobs in B2B and none of the tools that we use match how we actually buy as real people. That’s the most exciting thing to me about conversational marketing. It’s really closing the gap between B2C and B2B. We just call it B2P, marketing to people.

What Ties Our Products Together is Conversation

We have an email product and we have a landing page product. Black and white versions of those people would say everybody has email, everybody has landing pages. The thing that ties those together is conversation. That forces us to think about what is conversational email? What is conversational landing pages? What is conversational whatever? That one word forces our product team to think about how can we change this? If our fundamental stance as a company is that the internet should be one conversation, then how does that weave into everything that we build?

Ultimately what we care about is that email becomes a conversation. Meaning, the way that marketers have had to use email the last decade is a one-way channel. Email is meant to be a two-way channel. Marketers have been using it as, “John come to my webinar.” What happens if you actually respond to that email? Most of the time you can’t because it’s donotreply@ or it just goes to some inbox where nobody is answering it. That is a terrible experience. Our belief is that if you reply, “Hey actually I can’t make it. Can you reregister my colleague?” That should get handled. We are thinking of that from an evolution standpoint.

The same thing with landing pages. Most landing pages today are static. You go to the landing page, put a bunch of info in and you are gone. What if that was a real-time conversation on the page? That one topic has to weave itself into everything we do from a product perspective.

>> Listen to the complete interview with Drift Marketing VP Dave Gerhardt on the B2B Growth podcast.

Farfetch plans to use their IPO windfall to dramatically improve their technology which they see as the best way to improve the consumer experience.

Farfetch Founder and CEO José Manuel Ferreira Neves recently discussed Farfetch and the online luxury brand industry on Bloomberg:

Online Luxury is Growing 25 Percent a Year

It’s a very unique opportunity. You have this amazing global industry. It’s $300 billion, the personal luxury goods industry and only 9 percent is online. There are two opportunities here really. One is the growth of online luxury which is going to grow to 25 percent a year for the next seven years. This is a $100 billion opportunity shift in online luxury.

The big question is how is technology going to help brands and retailers really improve the consumer experience in the physical store. This is something at Farfetch that we are very passionate about.

China is an Incredible Opportunity for Online Luxury

China is a very exciting opportunity. Chinese citizens are at the onset of the luxury industry, whether they shop at home or when they’re shopping abroad. Online penetration is very low in China so this means that there is an incredible growth runway for Farfetch in the territory.

That led to our partnership with JD.com where we have our own team. We have the Farfetch China app and website, we have local customer service, local payment systems, and local marketing. It’s a truly localized service. That is what’s driving incredible growth to the Farfetch brand in that region.

José Neves, founder and CEO of @farfetch, told us about the company’s grand ambitions for China at the WWD’s Men’s Wear Summit this week. https://t.co/MrMj7y5VCG

— Jing Daily | 精日传媒 (@JingDaily) March 29, 2018

WeChat is an amazing app with over 900 million users. It is the Instagram, plus WeChat, plus PayPal, etc. of China in one app. That is very powerful and very interesting. Now with our acquisition CuriosityChina we are powering the retail presence of 80 luxury brands. We think that is very interesting for the industry and we think that is probably something that we will see for the western world.

How Farfetch plans to capture the growth in online luxury e-commerce https://t.co/t9HI0igMFV pic.twitter.com/RjvAel79li

— Bloomberg TV (@BloombergTV) September 21, 2018

Brands Now Using Social and Digital Marketing Extensively

I think brands move cautiously and they choose their marketing channels very carefully. As these newer channels have developed the brands have adapted to them and their now using social media and digital media extensively to create desire, to drive discovery of new products obviously transactions as well.

It’s a gradual pace but it’s really exciting that were at that inflection point where the brands see this as a tremendous opportunity.

Tim Mapes, Chief Marketing Officer of Delta Airlines, recently discussed how Delta uses its army of employees in its marketing:

All 85,000 Employees Are Brand Ambassadors

One of the dynamics of being in this role of Senior Vice President and Chief Marketing Officer of Delta Airlines for ten years, when I think the average used to be 23 months, is the fact that Delta is such a values-driven organization and values transcend time. Marketing’s role within Delta is really seen to be everybody’s role. I have the opportunity to serve as Chief Marketing Officer, but 85,000 people are all brand ambassadors.

All 85,000 members of the company are selling, they’re promoting, they’re providing a brand experience in what they do each day. That’s very much conscious on our part. We share that view with everybody that we’re all having a net impression. I say often within the company, everything communicates.

Whether the flight attendants are happy, whether the coffee works, whether the lavatory is clean on the plane, whether the flights operate on time, all of that in your customer experience is a part of the net impression you have on your impression of Delta at the end of the day.

Delta is Using Data to Drive the Customer Experience

When you carry 185 million passengers a year and we know where you’re going when you’re going, whether you’re a Sky Club member, whether you have the American Express co-branded credit card, all of that data is resident in Delta.

Taking that in and knitting it together horizontally, not just so that we in the loyalty program can know that you as a Diamond flyer prefer to sit on an aisle seat and like gin and tonics,  but also that the last three flights you took had your bag misdirected, so we’re able to say up or down what type of experience are we delivering.

Prosperity Coming Out of the Roots of Austerity

I think one thing that’s fascinating about Delta is you’re talking about a 90-year-old company that nonetheless in the last 10 years has experienced the best in the worst year in the history of the company. So 9/11 2001 you’ve got obviously all the fallout and the impact of that on travel and then experiencing record profits more recently.

We’ve been paying our employees profit sharing in excessive of a billion dollars a year each of the past four years so even in a short decade of time you’re seeing prosperity coming out of the roots of austerity and problems.

Delta CMO: How Cool is That…

I grew up watching really two programs that I can consciously recall. One was Mr. Rogers. People think about puppets and silliness and kind of milk toast Mr. Rogers bless his heart. The transcendent qualities that he taught in terms of respect and that you’re special just the way you are, from a hospitality perspective and a diversity and inclusion, he was way ahead of his time. In a way, with kindness and grace that the company and all of our world would do well to have more of today.

The other was Bewitched because I got to watch Darrin, and this as a kid, but he just looked like he was having fun in advertising with a great social life and great personal life. I just thought wow,  advertising art that actually generates commerce. How cool is that…

Lee Odden, CEO of TopRank Marketing, discusses how B2B influencer marketing can be a highly effective force in driving leads and conversions for companies. Lee was interviewed by Tim Washer at the 2019 Content Marketing World Conference & Expo:

Influencer Marketing Is Powerful Because Of Influence Itself

Influencer marketing is powerful because of influence itself, not about the people. Influence has always been a factor in being persuasive and being effective as a communicator, as a marketer, and really being able to tap into the dynamics of that. The psychology and sociology of that is something that is everlasting, it’s evergreen. While there are trends in terms of tactics that come and go, there’s this consumerization of B2B. B2C influencers are misbehaving and have fake followers, etc. and some of that’s leaking over into B2B. But I think that’ll reconcile a little bit and kind of clean itself out. In the future brands are going to be looking at influence as a really key component of their holistic marketing strategy internally and externally.

A lot of people when they think of influencer marketing they think of a Kardashian or some people think of something like Baddiewinkle, a 90-year-old woman who wears hip-hop clothes and now has her own makeup line on Sephora versus someone like Tamara McCleary interviewing an executive at Dell about the right IT infrastructure for doing edge computing. That’s really what it’s about in B2B.

B2B Influencers Actually Have To Have The Main Expertise

One of the big differences between B2B and B2C influencers is that in B2B you actually have to have the main expertise. You actually have to be knowledgeable and have a depth of that expertise in what it is that you’re influential about. It’s also important to have a network for distribution and a place to publish your content. It’s great to have a personality and that’s less common in B2B, where you have charisma. Well, lack of personality is a form of personality I suppose. 

The good thing is that we’ve figured out ways to coach folks that have that domain expertise and an active following but they’re not necessarily used to being social. We are coaching them in how to activate themselves and to pull out the best of what they have to share in a way that’s very promotable. Many of them start to open up a little bit after we show them how to do it.

B2B Influencer Marketing Adds Up To Nurture and Conversion

In the planning stages (with a client looking to promote something) we’ll look at the topics that are important around the announcement and how it affects customers and how customers will think of that news and how it’ll affect or change their lives. Those topics are then what we want to be influential about. We’ll use those keywords or topics to search our network using influencer marketing software to find who is influential around those topics, who’s publishing content, who self-identifies around that topic, and whose audience is actually activated around that topic. We find those people who have trusted voices with an active community and we invite them to collaborate on content and give their opinion about the announcement. 

We co-create content with them in concert with brand messaging. So now instead of people just ignoring the press release we actually have storytelling happening with these different voices. You have this intersection of one or two or three or four influencers talking about this topic and those audiences intersect and cross. They intersect across channels too. Your customer is hearing this credible message not only from the brand but also from people that they trust in different channels. That all adds up to yes. That all adds up to nurture and ultimately conversion.

Nirosha Methananda, Vice President of Marketing at Bombora, discusses the challenges of marketing without annoying your potential customers by bombarding them with marketing messages in an interview with Logan Lyles on the B2B Growth Podcast:

Marketing Is Really About the Customer Experience

As a B2B marketer, I get marketed to a lot. It’s something that I have increasingly noticed and I’m probably not the only one. That’s just becoming part of the experience in terms of being inundated with different messaging and different calls and this, that, and the other. Use this, do this, buy this, whatever it is. It’s really not a great experience. It doesn’t necessarily provide value. Marketers are so busy as it is, and I know that is applicable across the board with everyone we are marketing to. Being able to cut through the noise and having an understanding of all these different things is very challenging. 

Having on top of it being inundated with this constant flow of messaging like meet me, meet me, meet me, is not very helpful. That’s one of the things that I’m passionate about. It’s really about customer experience. I think that is something fundamental to marketing. I feel like we have gone down this path of almost over automating and having to constantly pounce on people without necessarily being conscious and mindful of what their experience is on the other end. From my experience, it’s leading to me switching off and ignoring messages. I’m sure I’m not the only one. 

Create a Marketing Strategy That’s Not Annoying

It also leads to this annoyance and irritation which leads to distrust of brands and that’s not great for this industry. From a customer perspective those bad experiences, unfortunately, more than good experiences, they stay with you for longer and you remember that. Another thing that we don’t necessarily think of is that it’s wasteful. It’s wasteful of time and it’s wasteful of money especially for marketing and sales where money is a precious resource. It’s not something to be wasted. That’s basically why I’m passionate about creating a marketing strategy that’s not annoying.

As an example, our Intent Event was our first flagship event that we did last year. It was a closed event so we did have limited numbers and we were limited as to what we could do with promotion. What we did was try to have mindfulness around what we were sending out and ensuring that it was helpful. Making sure that the recipients, the people that we invited, were given all the relevant information, but there was brevity in the communication as well as encouraging them to participate without forcing them to be there. 

There was certainly some urgency around some of our communication but it wasn’t you need to attend this and this is why you must attend this. It was more about being a bit more subtle in presenting them the idea and the concept of what it was, why it would help them, and exactly the information that they needed. What that meant was not sending out multiple emails, being very controlled around it, really thinking about what the experience was before the event, to during the event, to after the event. We were really focused on the customer and making sure that all of the content and communication was educational and helpful.

Rob Locascio, CEO of LivePerson, predicts that the AI-driven conversational space will ultimately have as much impact and be as big an industry as ecommerce, search, or social. Locascio was interviewed by Jim Cramer on CNBC:

Ecommerce, Search, Social… and Conversational Space?

When I look at the conversational space I think it’s going to have as much impact as ecommerce or search or social. The ability to talk to a machine and have a natural conversation, it’s in the collective consciousness of people. We all believe the Alexa type situation should happen with every company. 

We do that with Delta and T-Mobile and all these big brands. What we’re looking at now is how do we take that to the world? LiveIntent is proprietary technology to look at the intent that a consumer is having with the brand. In terms of I want to buy something, we have a way to analyze that and then use machine learning algorithms to then scale those conversations. That’s what this is about. 

Healthcare Companies Defending Themselves From Amazon Via AI

In Q4 we signed a couple healthcare companies. They want to talk about defending themselves from Amazon because Amazon said they want to go into healthcare. The way they think they can do that is scaling the conversations they are having with their customers and creating a totally different experience. You go to a doctor, you have an experience with them, you capture that on a messaging platform and an AI will help you with whatever is wrong with you. You want to process a bill instead of calling and being put on hold, you do that through a conversational experience. 

They want to game change it. The only way they’re going to defend themselves is to get into the conversational space. That’s what they see and we’re the company they’re trusting to scale their operations with the conversational platform.

Conversational Space Is Going To Be As Big As Search and Social

The conversational space is going to be as big as search and social. I think you’ll see one day that there will be a trillion dollar company in this space and I want it to be us. The things we’re investing in right now and setting up for will allow us to do that. That’s what’s important. The Amazon’s and the Facebook’s and Apple’s, they’re in the space. Jeff Bezos made a big bet obviously in Alexa to say this is the way it’s going to be. 

It can’t just be Amazon and Alexa. It has to be other companies getting access to that technology and that’s what we are providing. Who else is providing it? We’re one of the largest companies in the world to do this. Even though we’re not big tech, we are large enough to go ahead and go after them. We are large enough to go ahead and define a space and win it.

Why is brand search difficult to control in PPC?

With brand search, you are expected to get most of the traffic. However, what we are seeing increasingly is more and more competitors entering the market in our brand space. Back in the day, it was there but you could just get them kicked off by Google or Bing. Nowadays, it’s a lot more difficult with all of the policy changes. What this actually means is that they are not only cannibalizing our traffic but they’re also pushing up our CPCs and our CPAs.

As a brand, you are always looking for ways to get people to your website and get them to convert more. It used to be just interest-based keywords on generics related to your own brand. Now you can cannibalize other peoples brands and get those incremental gains. The problem then is competitors coming into our brand space and pushing our ads down or increasing the CPCs on our ads. It’s not just direct competitors either, you have resellers, aggregators, etc. In the automotive space you have dealers and many automotive brands are having issues with trying to control how their dealers are bidding because dealers don’t have as much experience.

What we are seeing now is traffic is being lost from our brands’ brand-related search terms onto our main website and it’s going away.

This is even more important on mobile

As you know with mobile there’s a lot less space on the SERP, and usually with the size of the ads above the fold takes up most of the space and not many people are going to scroll down all the way to the bottom. Also, with mobile, it’s when people are actually looking for stuff at the moment and they’ve got less attention span, so it’s even more important that we actually pick up this traffic. Chances are that whatever they click on they are going to then stick with that. This is especially the case for retailers and automotive businesses who have local offerings and people looking for local specific information.

On mobile, the lower your ad position is the higher (negative) impact it has on your clickthrough rate.

On tablet and on desktop the actual CTR decrease as your ad position goes down isn’t as significant as it is on mobile. This goes to show that on mobile we need to make sure that our ad positions are up there at the top.

How valuable is your brand space?

Once you have the data and you know about your brand space it’s about analyzing the data and finding out how valuable is your brand space to you? Years ago you could just log into Google Analytics and look at the value per click of your organic brand and the value per click of your paid search brand. As long as the value was more than your cost per click it made it viable to bid on your brand. It was a pretty simple analysis.

Then seven years ago Google took away the ability to see organic keyword data and analytics have become harder. What we are seeing now is that’s it’s a lot more difficult to access this data and so people are having to think of different tests that they can come up with.

I like to use standard deviation to get the validity of the data in the beginning in order to measure the success of the ad test. The reason for this is that gives a much better data set to work with so once you actually have the data in you can use a range to look at the changes we see if we then turn the brand off. If it fits within this range then fine, we don’t need to work on brand PPC. If it’s outside of the range then we know that PPC needs to be turned on because it’s having a significant impact on our business.

Tim Mapes, Chief Marketing Officer of Delta Airlines, recently discussed how Delta uses its army of employees in its marketing:

All 85,000 Employees Are Brand Ambassadors

One of the dynamics of being in this role of Senior Vice President and Chief Marketing Officer of Delta Airlines for ten years, when I think the average used to be 23 months, is the fact that Delta is such a values-driven organization and values transcend time. Marketing’s role within Delta is really seen to be everybody’s role. I have the opportunity to serve as Chief Marketing Officer, but 85,000 people are all brand ambassadors.

All 85,000 members of the company are selling, they’re promoting, they’re providing a brand experience in what they do each day. That’s very much conscious on our part. We share that view with everybody that we’re all having a net impression. I say often within the company, everything communicates.

Whether the flight attendants are happy, whether the coffee works, whether the lavatory is clean on the plane, whether the flights operate on time, all of that in your customer experience is a part of the net impression you have on your impression of Delta at the end of the day.

Delta is Using Data to Drive the Customer Experience

When you carry 185 million passengers a year and we know where you’re going when you’re going, whether you’re a Sky Club member, whether you have the American Express co-branded credit card, all of that data is resident in Delta.

Taking that in and knitting it together horizontally, not just so that we in the loyalty program can know that you as a Diamond flyer prefer to sit on an aisle seat and like gin and tonics,  but also that the last three flights you took had your bag misdirected, so we’re able to say up or down what type of experience are we delivering.

Prosperity Coming Out of the Roots of Austerity

I think one thing that’s fascinating about Delta is you’re talking about a 90-year-old company that nonetheless in the last 10 years has experienced the best in the worst year in the history of the company. So 9/11 2001 you’ve got obviously all the fallout and the impact of that on travel and then experiencing record profits more recently.

We’ve been paying our employees profit sharing in excessive of a billion dollars a year each of the past four years so even in a short decade of time you’re seeing prosperity coming out of the roots of austerity and problems.

Delta CMO: How Cool is That…

I grew up watching really two programs that I can consciously recall. One was Mr. Rogers. People think about puppets and silliness and kind of milk toast Mr. Rogers bless his heart. The transcendent qualities that he taught in terms of respect and that you’re special just the way you are, from a hospitality perspective and a diversity and inclusion, he was way ahead of his time. In a way, with kindness and grace that the company and all of our world would do well to have more of today.

The other was Bewitched because I got to watch Darrin, and this as a kid, but he just looked like he was having fun in advertising with a great social life and great personal life. I just thought wow,  advertising art that actually generates commerce. How cool is that…

Nirosha Methananda, Vice President of Marketing at Bombora, discusses the challenges of marketing without annoying your potential customers by bombarding them with marketing messages in an interview with Logan Lyles on the B2B Growth Podcast:

Marketing Is Really About the Customer Experience

As a B2B marketer, I get marketed to a lot. It’s something that I have increasingly noticed and I’m probably not the only one. That’s just becoming part of the experience in terms of being inundated with different messaging and different calls and this, that, and the other. Use this, do this, buy this, whatever it is. It’s really not a great experience. It doesn’t necessarily provide value. Marketers are so busy as it is, and I know that is applicable across the board with everyone we are marketing to. Being able to cut through the noise and having an understanding of all these different things is very challenging. 

Having on top of it being inundated with this constant flow of messaging like meet me, meet me, meet me, is not very helpful. That’s one of the things that I’m passionate about. It’s really about customer experience. I think that is something fundamental to marketing. I feel like we have gone down this path of almost over automating and having to constantly pounce on people without necessarily being conscious and mindful of what their experience is on the other end. From my experience, it’s leading to me switching off and ignoring messages. I’m sure I’m not the only one. 

Create a Marketing Strategy That’s Not Annoying

It also leads to this annoyance and irritation which leads to distrust of brands and that’s not great for this industry. From a customer perspective those bad experiences, unfortunately, more than good experiences, they stay with you for longer and you remember that. Another thing that we don’t necessarily think of is that it’s wasteful. It’s wasteful of time and it’s wasteful of money especially for marketing and sales where money is a precious resource. It’s not something to be wasted. That’s basically why I’m passionate about creating a marketing strategy that’s not annoying.

As an example, our Intent Event was our first flagship event that we did last year. It was a closed event so we did have limited numbers and we were limited as to what we could do with promotion. What we did was try to have mindfulness around what we were sending out and ensuring that it was helpful. Making sure that the recipients, the people that we invited, were given all the relevant information, but there was brevity in the communication as well as encouraging them to participate without forcing them to be there. 

There was certainly some urgency around some of our communication but it wasn’t you need to attend this and this is why you must attend this. It was more about being a bit more subtle in presenting them the idea and the concept of what it was, why it would help them, and exactly the information that they needed. What that meant was not sending out multiple emails, being very controlled around it, really thinking about what the experience was before the event, to during the event, to after the event. We were really focused on the customer and making sure that all of the content and communication was educational and helpful.

Dave Gerhardt, VP of Marketing at Drift, was recently interviewed on the B2B Growth podcast by John Rougeux who is VP of Marketing at Skyfii. Gerhardt discusses conversational marketing as a new B2B product category and how it is changing marketing from reaching out to you later to a conversation that is happening now:

Conversational Marketing is About Connecting You Now

Conversational marketing is a whole new way of thinking about marketing and sales. The traditional way of doing marketing and sales is all about later. Come to my website and fill out this form and somebody is going to reach out to you later, when it’s convenient for them. The big shift that is happening in marketing and business over the last five to ten years is customers have all the power today. You can’t make people wait. Information is free now.

I can find anything I want to know about a company without ever having to go to your website. It’s crazy to think that you are going to force people to go to your website, fill out a form, wait three days to hear back from your sales team, and then get a demo. Conversational is all about connecting you now with the people who are ready to buy now while they are live on your website.

B2P – Marketing to People

It’s not about buyers. It’s not about sellers. It’s not about sales. It’s not about marketing. It’s about people. That’s how people all communicate online today. I pressed one button in my car and I got a list. I ordered something from Amazon while I was here this morning to send back to my house and it’s going to be there tomorrow when I get home. There are countless examples of that. That is how we all behave online in our real lives today.

But then something happens weird happens. We go to our jobs in B2B and none of the tools that we use match how we actually buy as real people. That’s the most exciting thing to me about conversational marketing. It’s really closing the gap between B2C and B2B. We just call it B2P, marketing to people.

What Ties Our Products Together is Conversation

We have an email product and we have a landing page product. Black and white versions of those people would say everybody has email, everybody has landing pages. The thing that ties those together is conversation. That forces us to think about what is conversational email? What is conversational landing pages? What is conversational whatever? That one word forces our product team to think about how can we change this? If our fundamental stance as a company is that the internet should be one conversation, then how does that weave into everything that we build?

Ultimately what we care about is that email becomes a conversation. Meaning, the way that marketers have had to use email the last decade is a one-way channel. Email is meant to be a two-way channel. Marketers have been using it as, “John come to my webinar.” What happens if you actually respond to that email? Most of the time you can’t because it’s donotreply@ or it just goes to some inbox where nobody is answering it. That is a terrible experience. Our belief is that if you reply, “Hey actually I can’t make it. Can you reregister my colleague?” That should get handled. We are thinking of that from an evolution standpoint.

The same thing with landing pages. Most landing pages today are static. You go to the landing page, put a bunch of info in and you are gone. What if that was a real-time conversation on the page? That one topic has to weave itself into everything we do from a product perspective.

>> Listen to the complete interview with Drift Marketing VP Dave Gerhardt on the B2B Growth podcast.

Rob Locascio, CEO of LivePerson, predicts that the AI-driven conversational space will ultimately have as much impact and be as big an industry as ecommerce, search, or social. Locascio was interviewed by Jim Cramer on CNBC:

Ecommerce, Search, Social… and Conversational Space?

When I look at the conversational space I think it’s going to have as much impact as ecommerce or search or social. The ability to talk to a machine and have a natural conversation, it’s in the collective consciousness of people. We all believe the Alexa type situation should happen with every company. 

We do that with Delta and T-Mobile and all these big brands. What we’re looking at now is how do we take that to the world? LiveIntent is proprietary technology to look at the intent that a consumer is having with the brand. In terms of I want to buy something, we have a way to analyze that and then use machine learning algorithms to then scale those conversations. That’s what this is about. 

Healthcare Companies Defending Themselves From Amazon Via AI

In Q4 we signed a couple healthcare companies. They want to talk about defending themselves from Amazon because Amazon said they want to go into healthcare. The way they think they can do that is scaling the conversations they are having with their customers and creating a totally different experience. You go to a doctor, you have an experience with them, you capture that on a messaging platform and an AI will help you with whatever is wrong with you. You want to process a bill instead of calling and being put on hold, you do that through a conversational experience. 

They want to game change it. The only way they’re going to defend themselves is to get into the conversational space. That’s what they see and we’re the company they’re trusting to scale their operations with the conversational platform.

Conversational Space Is Going To Be As Big As Search and Social

The conversational space is going to be as big as search and social. I think you’ll see one day that there will be a trillion dollar company in this space and I want it to be us. The things we’re investing in right now and setting up for will allow us to do that. That’s what’s important. The Amazon’s and the Facebook’s and Apple’s, they’re in the space. Jeff Bezos made a big bet obviously in Alexa to say this is the way it’s going to be. 

It can’t just be Amazon and Alexa. It has to be other companies getting access to that technology and that’s what we are providing. Who else is providing it? We’re one of the largest companies in the world to do this. Even though we’re not big tech, we are large enough to go ahead and go after them. We are large enough to go ahead and define a space and win it.

Shantanu Narayen, Chairman and CEO of Adobe, discusses how the pandemic has created another “inflection point” in the move toward digital transformation:

Digital Transformation Is A $120 Billion Opportunity

It was a good quarter all around. All of our businesses performed exceedingly well. On the Creative Cloud and the Document Cloud, not only did we have a great acquisition. in other words, new customers adopting the platform, but we really focused on engagement and demonstrating the value of our products to our customers. Even our retention levels came back to pre-COVID levels which we believe is a really good sign.

What’s happening in the world is the businesses that we’re in, namely creativity and enabling people to tell their story, what’s happening with documents and accelerating document productivity, and what’s happening associated with every single enterprise needing to engage with their customers digitally, when you add all of this up we think it’s over a $120 billion of an addressable market opportunity for Adobe.

Pandemic Was Inflection Point For Everything Being Digital

What the pandemic and the current health situation has done is that it has created yet another inflection point for everything being digital. What we will have to continue to monitor is what happens in the spending environment. But as it relates to the overall need for the kinds of solutions that Adobe provides as well as the importance of digital in the marketplace I think that’s going to be sustainable for decades. You’re not going to put the genie back in the bottle as it relates to engaging digitally and creating content digitally.

We believe that we’re in this third phase of what is happening in the enterprise. Traditionally, businesses first focused on automating the back office, and then they focused on automating the front office for knowledge workers. It’s absolutely clear that the biggest imperative that exists in the enterprise today is how do you engage with customers? This is a category that we call Customer Experience Management.

Customer Insight Is Key To Your Digital Transformation

If you’re an enterprise today and you’re thinking about digital transformation, what’s top of that stack in terms of where you have to invest is to make sure that you have insight into what your customers are doing. How are they engaging with you? What’s the profile? How do you deliver the personalized experience?

We really believe that what you’re seeing in the enterprise spend environment is that the companies that are focused on this next generation of delivering customer engagement, the customer experiences, and the insight associated with how to take the most advantage of that data, they’re going to be the secular winners moving forward.

It’s predicted that an entire industry is in the midst of emerging to help companies adjust their strategies similar to what happened when Google first started to dominate search a couple decades ago.

Walled garden research company Jumpshot released The Competitive State of eCommerce Marketplaces Data Report earlier this month which shows Amazon’s amazing eight-point rise in product searches in the last year alone.

Recently, Deren Baker, Jumpshot CEO, revealed the latest results from their report in a Bloomberg Technology interview with Emily Chang:

Amazon Leading Google with Product Searches

We have seen a shift from Google to Amazon. Today over 54 percent of all the product searches that occur on the entire internet now occur on Amazon. Once you get into Amazon we’ve seen a strong growth in the number of sponsored placements that they put on their site. The product views that emanated from a sponsored click has increased from 3 percent to 7 percent in the last 18 months.

We think that Amazon and Google are converging. We did some additional analysis at Jumpshot that shows that from the time a consumer searches on either Google or Amazon to the time that they buy was actually much shorter on Google. On Google, 35 percent of those purchases were made within 5 days, only 20 percent on Amazon.

Amazon Becoming a Place for Product Discovery

What you are seeing is that Amazon is becoming a place for product discovery for customers more and Google is shifting from pure product discovery to more of that considered purchase. When people are interested in understanding the price or the quality or the brand name they’re going away from Amazon back to Google now.

Once you get to Amazon, 90 percent of the product views are actually the result of a search. So people aren’t messing around with merchandising placements or banner ads, they are typing a search for a product into Amazon and getting a search result. Once they get that search result we found that over two-thirds of the clicks are on the first page.

Amazon SEO is Now More Important than Google SEO for Brands

Imagine if you are a brand, you know that the majority of your customers are now searching for your product on Amazon. You know that once people get to Amazon what they are doing really doing is typing in a product search. Then once you get that search result you’ve got your competitors products, Amazon’s private label products, and you have to decide whether you are going to try and increase your organic results or pay for a sponsored placement. It’s a very confusing world for a brand today.

I would not want to be a brand manager at a CPG company right now because I think you are between a rock and a hard place. I think what you will see in the future is the same way that an ecosystem of companies sprung up around Google search when it started to dominate peoples online behavior, you are going to see the same thing for Amazon search. What people are going to need is a non-Amazon source of information to help them understand what they are supposed to do and how they are supposed to spend their advertising dollars.

Why is it important to resist the urge to have your content do the selling?

Tim: What we do at The Tot is provide trust and advice and mindfully curated products. For it to be considered trusted advice it needs to come from a credible real place. It needs to be authentic and it needs to come from experts, people who know what they are talking about. At The Tot we work with a network of experts around the globe to create parenting content. What first-time parents are looking for most is information and they are just as likely to turn to a website as they are to go to a doctor and they are even more likely to go to a website than to ask their own Mother. If we are able to develop and curate content of moms sharing to other moms, that develops a relationship and provides values for them.

How do you measure the success and performance of a content-driven marketing strategy?

Matt: When you consider measuring in general, there are so many different formats that are out there that people can leverage. Oftentimes, people are saying… well I want articles for my blog. What type of article are you looking for? What is the goal of that piece of content? Are you trying to drive organic search and bring in new audiences so they can learn who you are or are you trying to engage them a bit more with videos and infographics? Every single format has a very specific measurement.

Beyond that, your measurements are somewhat different than your basic media buying for example, where you spend a dollar and hope to make back three, or some version of that. When we are looking at content marketing, especially when it is brand agnostic, the real important ideal there is to think about how can I actually give something to my audience that resonates with them, teaches them and solves a problem. Then ultimately, your brand is there waiting for them.

Awareness, Engagement, Advocacy

The three things that I look at are awareness, engagement, and advocacy. The first thing you would want to do in building a content marketing strategy is to consider the idea of awareness, giving awareness to the people you are working with. Then having intent-driven content. People are asking questions in Google all the time and they are getting answers. If your site has the answers in its content, especially if it’s early stages, then that’s going to do something that most (ecommerce) sites aren’t doing, which is to put eyes onto your site, without the brand and product coming into play at first.

With this brand agnostic content, the bulk of your content is primarily text-based content. With measurement I look at eyes on site and what they are doing when they get there. Are they jumping around to different pages or are they bouncing right away? When you bring in somebody to your site where it is solving something you have to have something that is engaging to keep them there and keep them coming back.

Tim: We definitely watch inside of Google Analytics to be able to see the pageviews, what people are doing, and how they move from the editorial side of the site to the product side of the site. We also use content as part of our marketing program. It’s definitely an upper funnel prospecting piece.

Quality Content is Just as Important as Ad Spend

Tim: As somebody who came from an ad agency working with clients who had large ad spends and then coming to a start-up to help them grow and find customers, we didn’t have a large ad budget. What we did have though is this wonderful bank of content. This quality content has become just as important as the ad spend. Every month we put together a new prospecting campaign with a variety of articles and then we keep some evergreen pieces of what performed and that gives us a really good indicator of the type of people we are able to draw and attract to the site. It’s very contextually targeted so somebody that is clicking and looking at an article titled, “9 Ways to Prepare for a New Baby,” is probably going to be our customer.

See below for highlights from Rand’s thoughts on the changing SEO landscape:

There is definitely this problem in the SEO space where the amount of opportunity in SEO (is lessened), because of Google entering all these business sectors and taking away of a lot of the clicks and trying to solve the searchers’ query before they ever click.

This means that you just don’t have as much opportunity to earn search clicks from this search engine anymore.

Branded Search Queries

How can we overcome that? I think the answer in SEO is pretty clear, which is the one thing that Google is not taking away from us, branded search queries. If somebody searches for StatBid or they search for Moz or they search for the North Face, that is a searcher telling Google to take me to this companies website. That’s a very very powerful undeniable signal that they want to reach your site. You’re getting 90% plus click-through rates on those.

If you can increase the number of people searching for your brand instead of drawing a smaller and smaller percentage of the people who search for outdoor jackets, because Google’s placing all these ads above the fold and trying to say these are the best outdoor jackets and having an instant answer and a featured snippet and all this type of stuff, yeah that’s that’s a big win.

Combining Classic SEO with New Stuff

I think for CMO’s and for marketing departments it’s going to be a combination of classic skill sets in SEO. First, how do we rank? How do we make sure that our site is technically optimized? How do we make sure that we’re doing good keyword research and keyword targeting? How do we create good content around all these things and solve searchers problems?

Then I think it’s also going to be some new forms of marketing that SEO’s are not generally familiar with, at least not historically. Those are things like creative that draws attention and eyeballs and interest. I think it’s a lot of storytelling. Great brands are built on the back of great storytelling and that is traditionally a big weak spot for SEO.

SEO Teams Need to Get Retooled

So yeah, I think there’s going to be a combination of new and old. That could mean that some (SEO & marketing) teams need to get retooled or new people need to be added. It could mean that agencies will have to upgrade those practices and I’ve already seen some agencies in the SEO world start to do that. I think serving existing demand is going to long-term not be as exciting as creating more demand.

John Copeland of Adobe, predicts that ecommerce spending could be $930 billion, or just under $1 trillion, in 2021:

COVID was a catalyst to the ecommerce channel last year. What we saw when you look at the full calendar year of 2020 was $813 billion dollars in ecommerce spending, 42 percent growth over 2019. That’s like combining two years’ worth of growth into a single year. Consumers have really embraced the online channel to meet their needs during these challenging times.

We’re all kind of wondering what (the vaccine rollout) is going to do in terms of ecommerce. We’re forecasting this year somewhere between $850 billion, only a 5 percent over last year, and up to $930 billion, which would be a 14 percent increase over last year. The 5 percent increase would be if everybody gets vaccinated and rushes out and we see kind of a slowdown. The $930 billion, 14 percent increase, would be more typical of what we see year over year in the ecommerce channel.

Buy Now Pay Later Up 215 Percent Over Last Year

Buy Now Pay Later is very much good for retailers. In fact, what we’ve seen in February this year relative to February 2020, which is kind of on the cusp of the pandemic, is a 215 percent increase year over year in buy now pay later orders. In terms of retailers, it comes along with larger average order values. What we’re seeing is 18 percent larger orders when customers are using that service. Unlike layaway, with buy now pay later you actually get the goods upfront, you don’t have to wait until the payment’s done.

Another trend is Buy Online, Pick Up In-Store, also known as BOPUS. In February of this year, we’re already seeing it growing 67 percent year on year. It’s always been huge and growing during the holiday season but now people are clearly working it in as part of their fulfillment options. Picking up in the store gives consumers the ability to schedule it according to their availability and knowing that stock will be there for them when they want to pick it up.

Brian Cornell, CEO of Target, discusses their massive Q1 results in an interview on CNBC:

Digital Performance Up 50 Percent

We’ve had a string of really solid results going back to 2017 but this quarter may be one of the highlights. Our team executed throughout the quarter. We had a great performance from our store teams with a store comp of 18%. Our digital performance was up 50%. It was really a team effort. We had great supply chain support with our merchants and marketers all coming together to support the results which speak for themselves.

We are benefitting from investments we’ve been making for years now. Our investment in our store experience, our curated Home Brand and national brand mix, and then the fulfillment services that we offer. That combined with the investment in our team, I think we are seeing continued strength. We feel really good sitting here right now about our outlook, not just for the second quarter but for the full year.

We’ve Connected With The Consumer

As we gain greater clarity around the consumer, the economy, the state of the vaccine, we feel that the consumer continues to respond to our in-store experience and the ease and convenience of shopping with some of our same-day services like pickup, drive-up, and ship. They really connect with our curation of Great Home Brand, national brands, and the service our team provides each and every day.

We are feeling very confident about our position today. I look at the proof point from Q1, we picked up another billion dollars in market share on top of the $9 billion of share last year. That’s just a sign that we’ve connected with the consumer, we’re building relevance, and we’re providing what they need and what they want throughout the year.

Newness Is A Huge Trend In Our Business

When you see the combination of stores comping up at 18%, which to me is just a highlight number, and categories like apparel growing again by over 60%, that combination of store traffic and category mix really benefited us throughout the quarter. We are seeing a resilient consumer. They’re clearly shopping our stores and when they’re there they are attracted to anything that’s new.

Newness has certainly been a trend throughout our business in the first quarter and I think that’s going to continue. That great combination of store traffic and store comps and the continued movement of same-day fulfillment services which now represent over half of our digital channel. We really like that transaction. It looks and feels more like a store transaction which from a profitability standpoint certainly is beneficial for us.

Chapek attributes the company’s massive streaming growth to its huge collection of brands. “The wealth of IP from our unrivaled collection of brands and franchises provides us with an incredible breadth and depth of storylines and characters to mine for Disney+ and our other streaming services,” says Chapek. “We have the ability to interconnect these storylines and characters in unprecedented ways as we saw with The Mandalorian and WandaVision tying into the broader Star Wars and Marvel franchises. We’re excited to continue exploring the endless possibilities that this unique ecosystem provides.”

DTC Results Improved By $650 Million

“We believe that we’ve got a great price-value relationship,” says Chapek. “I think the best insulation we’ve got (to lower churn) is to keep the price-value relationship very high and there’s no better way to do it than powerhouse franchises cranking out regular new releases on a monthly basis.”

Disney’s direct-to-consumer results have improved by nearly $650 million versus the prior year. “Last quarter, we guided to direct-to-consumer operating income declining by $100 million versus the prior year under our former segment structure,” says Disney CFO Christine McCarthy. “Our reported results are $750 million higher than that guidance.”

Lower Disney Losses Attributed To Disney+

Disney attributes their lower losses to the growth of the Disney+ streaming service. “A lower loss in the first quarter compared to the prior year was driven by subscriber growth partially offset by higher costs due to the launch and expansion of Disney+. With 94.9 million paid subscribers at the end of Q1, Disney+’s global net additions were 21.2 million versus Q4.”

“Disney+ Hotstar subscriber additions continued their strong growth trend with Disney+ Hotstar subscribers making up approximately 30% of our global subscriber base,” said McCarthy. “We also saw strong additions to our subscriber base from our November launch in Latin America.”

Disney Happy With Level Of Churn

Disney is also very happy with its level of churn especially as it relates to subscribers who came into the Disney+ service via their Verizon partnership which helped power its launch last year. “We are very pleased with what we’ve seen so far on the level of churn,” said McCarthy. “And as our product offering matures and we put more content into the service and our subscriber base becomes more tenured, we expect to see our churn rates continue to decline.

So in regard to the specific churn related to the anniversary of the Verizon launch promotion from last November 2020, we’re really happy with the conversion numbers that we have seen there going from the promotion to become paid subscribers.”

100 New Titles a Year

“With Disney+ originals along with the theatrical releases and the library titles, we’ll be adding something new to the service every week,” noted McCarthy. “We are very pleased with the engagement overall. We believe we’re going to reach that cadence of getting content on the service every week within the next few years. We’ve also set that target for 100-plus new titles per year. And that’s across Disney Animation, Disney Live Action, Pixar, Marvel, Star Wars, Nat Geo. And of course, we’ll continue to add more to our library as we go through time as well.”

“Given the value of growing our sub base, we are continuing to invest in high-quality content,” says McCarthy. “We believe that content is the single biggest driver to not only acquiring subs, but retaining them.”