Today's the day so make sure your voice is heard.
A true picture of GDP growth
I thought this was an interesting image (via Paul Kedrosky) showing historical GDP growth with and without mortgage equity withdrawals (MEW). Makes the last 7 or 8 years look pretty artificial in terms of real growth but maybe was initially necessary to get us through the last downturn and subsequent economic impact of 9/11. Like all things taken to excess, there is a price to be paid and we need to focus on real GDP growth going forward.
Enterprise lead & demand generation for early stage companies (final post)
So I may have killed you with content on this multi-part post by now and I am sure there are some things I glossed over that need further detail and explanation. Topics for another day…
Here's the final two entries below the full list linked to previous posts as appropriate:
1. Brokered introductions
2. Partner marketing
3. Direct outreach & appointment setting
4. Tele-prospecting/tele-surveys
5. Guaranteed lead generation programs
6. Sponsored email blasts
7. On-line advertising
8. Email newsletter nurture programs
9. Direct mail
10. Events
11. Market awareness – self generated
12. Market awareness – through a PR firm
13. Analysts
14. Print advertising
13. Analysts
- There are two types of analysts – the large firms (Gartner, Forrester, etc.) and all the rest.
- The large firms need to be approached and managed much like your prospects with a nurture program of their own – keep them updated on product releases, customer wins, etc and put regular briefings on the calendar.
- The others are small firms or individuals that cover your space.
- Build these relationships, spend some dough on them to write a whitepaper or the like (that you can then use in a campaign per above), and collaborate with them on the challenges you face and ask for their perspective. They are great sources of expertise and candid feedback.
- These are the same ones that will take a reference call, provide a quote, or make an introduction without the hoops required at the larger firms.
- Analysts are not lead sources in and of themselves, but the large firms are often asked about vendor choices and your prospects will most certainly ask you for the latest analyst research on you.
14. Print advertising
- This is last on my list because it:
B. Requires a lot of folks to be involved and
C. Must be either highly focused or build on a brand that you have already established (something early stage companies have generally not done).
Awareness to Advocacy (A2A)
While attending the Software Business 2008 conference last week, I sat through a panel discussion by a few venture capitalists entitled "SaaS Steps Up to the Plate."
One of the participants was Gordon Ritter of Emergence Capital and he mentioned the title of this post during the discussion. "Awareness to advocacy" is a key component of growing and scaling a SaaS company according to Gordon. Essentially this is nailing the process of having people hear about you, trying what you have to offer, and then telling someone else about it. This is consistent with traditional approaches to building a pipeline of targets and then making them loyal customers over time. The difference with an on-demand model is that you can quickly reach a wider group and more immediately get a product in their hands to use and share with others.
He also talked through the need to be focused on unit economics. Meaning, how much does it take to acquire a customer or how much do you make on that customer over their lifetime? Target 2-3x the annual subscriber fee to acquire a customer early on with it ramping down over time to 1 to 1.
Sobering CIO spending survey results
As you might expect, the latest rounds of survey responses are not bullish on IT spending. No surprise there and it's not like there has been wild spending going on anyway over the past few years.
CIO magazine published their most recent survey results here. A couple things that caught my eye:
- 40% of CIOs plan to decrease their budget which is roughly double the response from earlier in the year.
- Over 70% have postponed or are planning on postponing discretionary IT projects.
- About half have renegotiated IT contracts and frozen hiring in the last 6 months.
Here's some additional perspective on the survey from InfoWorld.
Dominant ERP vendors struggle with making SaaS work
Here's an interesting article in InformationWeek covering an interview with SAP America's CEO Bill McDermott on the business prospects for SAP going forward and a few broader trends. Outside of a rather somber outlook for enterprise software spending, he does take an interesting stance around software as a service and that the whole notion of on-demand computing (and its Business ByDesign product initiative) is incompatible with their business realities (my words, not his).
toward cloud computing — it just doesn't see how it can operate a
so-called cloud and bring good returns to shareholders."
Not as blunt as Lawson Software's Harry Debes' comments about perpetual software licensing being like cocaine but along the same lines.
Meanwhile, Aravo Solution's recent announcement about being selected by GE to provide a supplier information system for 500,000 suppliers across 100 countries illustrates the other side of the equation where a newer, more agile SaaS company is able to land a significant enterprise deal. Here's THINKStrategies' Jeff Kaplan on that announcement.
SaaS/on-demand/cloud models are tough to swallow if you are use to doing business on a perpetual license /capital expenditure basis. Regardless, I still believe that delivering software on-demand is a better deal for the end enterprise customer although not necessarily for the industry incumbents that have built their businesses on licensed and installed software.
Enterprise lead & demand generation for early stage companies (part 4)
Apologies for being silent for a few days but wanted to continue this series of posts about lead and demand generation for enterprise products. Below are numbers 10-12 and here is the complete list linked as appropriate:
1. Brokered introductions
2. Partner marketing
3. Direct outreach & appointment setting
4. Tele-prospecting/tele-surveys
5. Guaranteed lead generation programs
6. Sponsored email blasts
7. On-line advertising
8. Email newsletter nurture programs
9. Direct mail
10. Events
11. Market awareness – self generated
12. Market awareness – through a PR firm
13. Analysts
14. Print advertising
10. Events
- In many cases, I think event companies are the only ones that make money in the technology business. That said, if you get really specialized in terms of vertical industry or user target they can be worthwhile. Avoid horizontal or technology shows where there are no prospects. Submit someone as a speaker or panel member for those (and highlight some of those survey results).
- Look at where your competitors go (should be listed on their sites) and where your target distribution partners go (on their sites as well)
- Focus on professional associations or narrow targets if you are inclined to go and exhibit. Even then, you will not get much lead activity other than contact info to drop into your nurture program.
- If you have a customer that is game, submit a case study for them – most events don't want vendors on stage that have not paid to sponsor. Makes the high dollar sponsors grumpy.
- If you find a good one, get the list of attendees beforehand (if possible) or afterwards and add them to your nurture program.
- If you can swing it, work that list and set up meetings (or even agreements to spend 10min) in advance. You can also secure a hotel suite in the same location as the event to serve as demo room/escape from the crowd.
- You'll also get a bit of market intelligence, but a booth and sponsorship is a lot to pay for something you could have gotten with a ticket.
- Also focus on local/city specific interest groups or focused professional gatherings. You can sponsor a meal and submit to present on the problem you solve. Remember to be on a topic, not on your product/service as they want to learn something new, not hear a sales pitch.
11. Market awareness – self-generated
- This is about identifying those that write about your space and competitors including analysts, journalists, and bloggers and doing direct outreach to them about what you are doing (or your survey results). They tire of being pitched by PR firms so direct outreach from an exec at the company is a nice touch. Do a Google blog search on your company, your competitors, or terms about your space and you will quickly assemble a list of targets.
- Consider a blog. Yes, it is work but allows you to generate dynamic content and have a platform for information sharing. You can have a company one with multiple contributors just make sure you have an editorial control in place to review what is written before it is published. Check out Typepad (this is the service I use) or WordPress. Nothing wrong with free blog options but if you're serious, you can come up with 5 bucks a month.
- If you blog, you will be linked to by others. Linking drives traffic and allows people to find you.
- Even if you don't blog, comment on the posts that others make. Even established publications are getting the fact they should open comments on stories. Do not shamelessly pitch your company, but do have something meaningful to say and identify where you are from. If someone writes about you, thank them. If they write about a competitor, add something to the story not a compare/contrast.
- Look into things like putting a demo up on Youtube. Record a presentation or demo with a product like Camtasia and upload it. It can then be linked to, shared, or tagged a will. Plus it shows up on search results.
- Do podcasts. All you need is a reasonable microphone and freeware like Audacity. Post them on your website. Things like this (and video) will get more clicks because they are more consumable than documents. But, remember to be brief and succinct in your message. Shoot for 2-4 minutes and if you have more content break it into 'chapters.'
- To track all this either use an RSS reader (like Google Reader) or just set up a handful of Google Alerts that will email you when your company, a competitor, or a particular word or phrase is used pretty much anywhere on the web.
- If you are ready to go advanced, check out Twitter and what micro-blogging is all about.
- I am not hugely convinced that search engine optimization (SEO) is in itself a path to lead gen/market awareness. I believe that dynamic content generated by blogging is more relevant and interesting.
- Make sure your site and blog are being indexed and incorporate SEO best practices in your copy but don’t waste huge dollars on it.
12. Market awareness – PR
- Finding a good PR firm and justifying the dollars you will spend is a tough road. After many years and both national and small firms, I found one I really like and have mentioned them before – VisitechPR out of Denver. Small shop, tech focused, and understand their role – get you coverage. Spending big bucks to get a junior level staff member to represent you is a waste of dough.
- These folks can serve as your force multiplier to get the word out but they have to be armed with something to say – customer case studies, survey results (picking up a theme here?), unique perspective, etc.
- Getting coverage is like getting sales. Both take a lot of activity to generate a few results. Consider building a coverage pipeline as important as a sales pipeline as it creates the reinforcement and validation you need to drive sales wins.
Enterprise lead & demand generation for early stage companies (part 3)
Here's the third post on my thoughts around lead and demand generation for early stage companies. Below are points #7, #8, and #9 and here is the total list linked back where appropriate.
1. Brokered introductions
2. Partner marketing
3. Direct outreach & appointment setting
4. Tele-prospecting/tele-surveys
5. Guaranteed lead generation programs
6. Sponsored email blasts
7. On-line advertising
8. Email newsletter nurture programs
9. Direct mail
10. Events
11. Market awareness – self generated
12. Market awareness – through a PR firm
13. Analysts
14. Print advertising
7. On-line advertising
- Google Adwords is pretty simple to set up but I'm not sure of the ROI here for enterprise products. It drives some web traffic & clicks but conversion measuring is tough.
- It is important to watch your budget as clicks can add up quickly especially as you bid higher and higher on specific keywords to game your placement (I shoot for top 4 or 5)
- It is also a good way to test marketing messaging as ads that get more clicks have more compelling messaging.
- Other ad platforms: I ran pilots on both LinkedIn and Facebook. They were pretty cheap to do but not sure how effective for enterprise products. Facebook really struggled to hit my meager $5 per day budget. For both I was using links to existing assets (Gartner webcast, whitepaper, and even my blog).
- Banner ads via the publishers previously mentioned: I'm not sure how effective these are and my experience is that they get thrown into a proposal as gravy (X thousands of banner impressions).
8. Email newsletter nurture programs
- For all of the above, you will get at least an email address. Make sure you capture them all and drop them all into nurture program.
- This can be very complex or way simple. Use something like Vertical Response or Constant Contact to manage lists, send emails, manage unsubscribes, and not be a spammer. I even got a cool one the other day from a company called Emma. The cost is not high to send to lists of thousands.
- The content of these is important as is the timing. I shoot for every 6-8 weeks but this depends on what I have to share. Generally I package up press releases, media mentions, and the like.
- Place a summary in the mail and hyperlink back to your site. Also, take the opportunity to highlight key technical differentiators, customer quotes, etc. to contribute content.
- The key is to make these meaningful and content rich. Do not indiscriminately spam your database with each new idea or pitch as this will make people very grumpy.
- Remember, this is an indirect sales pitch platform. You will know you are on to something when people send you new email addresses to keep receiving it when they switch jobs.
9. Direct mail
- I’m not a huge fan of this but it can be effective. Target this to your same nurture list but it assumes you have a physical mailing address.
- Postcards are cheap but can get lost.
- A letter with an insert (that falls out when opened) is pretty effective. The insert should highlight something you can download or other call to action (discounted pricing, special deal, etc.)
Enterprise lead & demand generation for early stage companies (part 2)
Continuing my previous post on lead & demand generation for early stage companies, below are #4, #5, & #6.
I also wanted to share that I received a nice email from Jim Fowler, CEO of Jigsaw, about my first post thanking me for the mention. Very cool on his part and a great example of proactive marketing. I'll cover blog commenting and follow-up as part of #11 below.
Here's a recap of the entire list:
1. Brokered introductions
2. Partner marketing
3. Direct outreach & appointment setting
4. Tele-prospecting/tele-surveys
5. Guaranteed lead generation programs
6. Sponsored email blasts
7. On-line advertising
8. Email newsletter nurture programs
9. Direct mail
10. Events
11. Market awareness – self generated
12. Market awareness – through a PR firm
13. Analysts
14. Print advertising
4. Tele-prospecting/tele-surveys
- This is a softer outreach approach not solely intended to drive to a meeting (although that can happen); mostly you will get information about your targets and possibly stumble across an active project
- There are many different vendors that can provide this service and they generally price on a per company/number of contacts defined per company model.
- I am a fan of defining a set of target companies and canvassing them with a 'survey' – questions that help you qualify them as a candidate for your product/service as well as provide you a bit of market research that you can a) use to sharpen and focus your sales efforts and b) package into marketing collateral for a sales tool and PR efforts (survey results)
5. Guaranteed lead generation programs
- These programs are when you take something (a whitepaper, a webcast, survey results (per above), or the like) and push it out through a publisher (Ziff Davis, IDG, etc.) who then drives traffic to your stuff. All horizontal and vertical publications should offer some type of option here.
- Generally you will get a guaranteed lead count based on some qualification criteria. You can probably also ask qualifying questions that you can fashion into "survey results" as well.
- Understand that the qualifying questions are generally not going to identify which leads are best as most people select whatever to get to the download they are seeking.
- Also bear in mind that these are warm contacts who have raised their hands about being interested in something about what you do, not you specifically. It is important to properly manage internal expectations on how strong these 'leads' are.
6. Sponsored email blasts
- These are generally available through the same publishers as above but these allow you to sponsor or promote on some type of daily, weekly, quarterly email to their subscriber base. Have some type of marketing asset (whitepaper, case study, survey results, etc.) to promote/hyperlink to that lead to a landing page to capture contact information.
- These are pretty easy to do but offer varying degrees of success. Again, expectations are important as a list of 40k recipients may generate only a handful of clicks and even fewer downloads.
Software Business 2008 conference
I'll be attending the Software Business 2008 conference in San Francisco on Thursday (Oct 30) and moderating a roundtable discussion on SaaS integration. If you are going to be there or nearby, shoot me a note and we can connect.
