Connect with us

MARKETING

Is Purpose-Led Marketing a Growth Killer? [Rose-Colored Glasses]

Published

on

Is Purpose-Led Marketing a Growth Killer? [Rose-Colored Glasses]

Are brands sacrificing company growth by trying too hard to do good in the world?

Marc Pritchard, chief brand officer at Procter & Gamble (P&G), raised that question at the recent VivaTech conference.

An article in the Drum last week reported some of Marc’s comments, including this: “Some companies are over-leveraging purpose marketing at the expense of brand growth.”

As evidence, the article points to an open letter from a Unilever investor who said the company had become “obsessed with publicly displaying sustainability credentials at the expense of focusing on the fundamentals of the business.”

But Marc’s full remarks contain more nuance (the entire 20-minute talk is worth a watch). He made clear that P&G sees growth (meaning business growth) and good (meaning doing good things in the world) as a “virtuous circle.” They balance each other.

I agree.

P&G sees “brands and business being a force for growth and a force for good,” Marc said. But, he added, “the order matters.”

That’s where I disagree.

@ProcterGamble sees “business being a force for growth and a force for good,” with growth coming first. @Robert_Rose (partly) disagrees. #VivaTech Click To Tweet

Good is not the opposite of growth

Saying that companies have “over-leveraged” purpose-driven content or that they must “course correct” to drive growth in challenging times sets the expectation that good and growth exist at opposite ends of the marketing strategy spectrum.

That’s not true.

You’ll find many companies that have done a bad job with purpose-led brand initiatives. But their lack of success doesn’t mean purpose-led marketing can’t lead to growth. It just means their initiatives were ill-conceived.

You also can find companies that have done a bad job of growth marketing. That doesn’t mean focusing on brand stories that highlight usefulness to the planet or other good causes won’t help them differentiate and grow.

Growth is a focus of a company’s strategy for success. The approach depends on the object of that growth. Profitability? Revenue? Market share? Each requires a different choice from the spectrum of brand and marketing plans.

Good, on the other hand, is both a business purpose/mission and a differentiator for the growth strategy. It’s a prime ingredient infused into a marketing and content strategy, no matter what part of the growth spectrum the business pursues.

Doing one thing poorly isn’t an argument for rebalancing to the other.

Some companies struggle with purpose-led brand initiatives, but that doesn’t mean purpose marketing can’t lead to growth, says @Robert_Rose. Click To Tweet

The why matters

Communicating a differentiated brand purpose and the practice of content marketing are distinct but intricately related. For instance, in many organizations, the same brand content team might work on sustainability content and on thought leadership and educational content.

And some tactical content marketing plans rely heavily on a clear “brand purpose” story that expresses itself as a content platform. Cleveland Clinic’s Health Essentials publication is a perfect example.

Health Essentials started as a platform for good – a way to show that the Cleveland Clinic brand stood for more than making money. It met that goal and became a trusted source for health information. In the past few years, it’s also become a revenue generator and a platform for growth.

Content marketing and growth marketing aren’t things to be balanced like weights on a barbell.

A marketing leader for a technology company recently told me they planned to cut back on thought leadership and educational content because of revenue growth challenges last quarter. Instead, they’ll focus more on paid media advertising for direct sales.

That may or may not be the right decision. But the thought leadership program performed flawlessly, generating subscribers and high-level leads.

I asked why the team had made that decision. The company looked at the data and found that leads generated through thought leadership take longer to close. So, they decided to move money and resources to the low-end of the funnel, hoping to accelerate growth.

But the tech company’s plan amounts to moving one weight from one side of the barbell to the other, thinking that will make it easier to lift.

That’s not a marketing strategy. That’s insanity.

A roadmap for balancing the virtuous circle

There are plenty of counterarguments to the idea that focusing on “good” over “growth” is the root cause of poor financial performance.

For example, sporting goods co-op REI, a brand that leads through content and brand purpose, posted a 36% increase in revenue according to the 2021 financials it released in April. Likewise, Monster Beverage earned record first quarter 2022 net sales of $1.5 billion while leaning heavily into content marketing and much less heavily into direct advertising.

Content marketing (or purpose-driven content) will also shift as an overall part of a marketer’s mix. My recommendations for staying in balance line up almost exactly with the things Marc Pritchard called the “enduring basics:”

  • Knowing what your customer needs
  • Giving customers a superior experience
  • Understanding what you need to do to win today, with an eye toward tomorrow

Let’s explore these ideas (and my slight tweaks to Marc’s advice):

Marc says: Know your consumer needs
Robert says: Know your customer
Sentiments change during any significant market shift (good or bad). In previous economic downturns, we’ve seen how quickly the priority for certain products and services can shift from essential to not necessary.

Understanding your marketing mix means understanding how those shifts in motivation affect your product or service and adjusting the way you deliver your core messages.

Marc says: Give them a superior experience
Robert says: Find efficiency in the process, not the experience

What’s the quickest way to strangle your marketing strategy? Perform a brute-force lift and shift of resources to optimize one part of the journey. You’re almost guaranteed to create a suboptimal experience in another part of the customer journey.

Instead, focus on how to get more out of what you’re doing across every experience. In other words, find the efficiency in your content process.

I’m not suggesting you ignore that big, gaping need at one part of the journey. I am suggesting you approach reallocating investments surgically. Examine everything, then make case-by-case recommendations about where to cut and where to increase spending to deliver those superior experiences.

Marc says: Understand what you need to do today, with an eye to tomorrow
Robert says: Double down on the current emotional engagement
You may be tempted to default to content that touts price or better value during a downturn.

But consider focusing on emotional engagement that’s tied to your brand value. You’ll need to have a finger on the pulse of what content you should produce – and mechanisms to act quickly.

So, yes, talk about discounts if that aligns with your brand purpose. More likely, you’ll need to focus on pivoting purpose-driven efforts to help develop trust in your offering.

For example, I love what Nike recently did with its NikeCraft General Purpose Shoe. The company didn’t position the shoe as cheaper or more expensive (and it’s neither). It positioned it as the “understated do-everything shoe created to work with every possible scenario.”

Growth can be good – and vice versa

It’s easy to misinterpret the lesson in Marc’s interview. In fact, the article I mentioned says this: “P&G’s mantra pre-Covid was that it wanted to be a ‘force for good and a force for growth.’ But in the face of increasing economic pressure, it recently flipped that.”

That framing suggests P&G made the wrong decision by putting good first, and (worse) they’re correcting that mistake now only because of financial pressure.

In his remarks, Marc said, “A force for growth leads to the capability of being more of a force for good.” But I would argue that the opposite is true, too.

You don’t have to choose which is more important or what should come first – both matter. You have to figure out how to do both effectively.

You don’t have to choose whether growth or good is more important. Figure out how to do both effectively, says @Robert_Rose. Click To Tweet

Marc said it perfectly at the end of his talk:

“Think about how you can be useful to others. It’ll make a big difference. And then you can truly be both a force for growth and a force for good.”

Get Robert’s take on content marketing industry news in just three minutes

https://www.youtube.com/watch?v=videoseries

Subscribe to workday or weekly CMI emails to get Rose-Colored Glasses in your inbox each week.

Cover image by Joseph Kalinowski/Content Marketing Institute



Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address

MARKETING

Why We Are Always ‘Clicking to Buy’, According to Psychologists

Published

on

Why We Are Always 'Clicking to Buy', According to Psychologists

Amazon pillows.

(more…)

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

MARKETING

A deeper dive into data, personalization and Copilots

Published

on

A deeper dive into data, personalization and Copilots

Salesforce launched a collection of new, generative AI-related products at Connections in Chicago this week. They included new Einstein Copilots for marketers and merchants and Einstein Personalization.

To better understand, not only the potential impact of the new products, but the evolving Salesforce architecture, we sat down with Bobby Jania, CMO, Marketing Cloud.

Dig deeper: Salesforce piles on the Einstein Copilots

Salesforce’s evolving architecture

It’s hard to deny that Salesforce likes coming up with new names for platforms and products (what happened to Customer 360?) and this can sometimes make the observer wonder if something is brand new, or old but with a brand new name. In particular, what exactly is Einstein 1 and how is it related to Salesforce Data Cloud?

“Data Cloud is built on the Einstein 1 platform,” Jania explained. “The Einstein 1 platform is our entire Salesforce platform and that includes products like Sales Cloud, Service Cloud — that it includes the original idea of Salesforce not just being in the cloud, but being multi-tenancy.”

Data Cloud — not an acquisition, of course — was built natively on that platform. It was the first product built on Hyperforce, Salesforce’s new cloud infrastructure architecture. “Since Data Cloud was on what we now call the Einstein 1 platform from Day One, it has always natively connected to, and been able to read anything in Sales Cloud, Service Cloud [and so on]. On top of that, we can now bring in, not only structured but unstructured data.”

That’s a significant progression from the position, several years ago, when Salesforce had stitched together a platform around various acquisitions (ExactTarget, for example) that didn’t necessarily talk to each other.

“At times, what we would do is have a kind of behind-the-scenes flow where data from one product could be moved into another product,” said Jania, “but in many of those cases the data would then be in both, whereas now the data is in Data Cloud. Tableau will run natively off Data Cloud; Commerce Cloud, Service Cloud, Marketing Cloud — they’re all going to the same operational customer profile.” They’re not copying the data from Data Cloud, Jania confirmed.

Another thing to know is tit’s possible for Salesforce customers to import their own datasets into Data Cloud. “We wanted to create a federated data model,” said Jania. “If you’re using Snowflake, for example, we more or less virtually sit on your data lake. The value we add is that we will look at all your data and help you form these operational customer profiles.”

Let’s learn more about Einstein Copilot

“Copilot means that I have an assistant with me in the tool where I need to be working that contextually knows what I am trying to do and helps me at every step of the process,” Jania said.

For marketers, this might begin with a campaign brief developed with Copilot’s assistance, the identification of an audience based on the brief, and then the development of email or other content. “What’s really cool is the idea of Einstein Studio where our customers will create actions [for Copilot] that we hadn’t even thought about.”

Here’s a key insight (back to nomenclature). We reported on Copilot for markets, Copilot for merchants, Copilot for shoppers. It turns out, however, that there is just one Copilot, Einstein Copilot, and these are use cases. “There’s just one Copilot, we just add these for a little clarity; we’re going to talk about marketing use cases, about shoppers’ use cases. These are actions for the marketing use cases we built out of the box; you can build your own.”

It’s surely going to take a little time for marketers to learn to work easily with Copilot. “There’s always time for adoption,” Jania agreed. “What is directly connected with this is, this is my ninth Connections and this one has the most hands-on training that I’ve seen since 2014 — and a lot of that is getting people using Data Cloud, using these tools rather than just being given a demo.”

What’s new about Einstein Personalization

Salesforce Einstein has been around since 2016 and many of the use cases seem to have involved personalization in various forms. What’s new?

“Einstein Personalization is a real-time decision engine and it’s going to choose next-best-action, next-best-offer. What is new is that it’s a service now that runs natively on top of Data Cloud.” A lot of real-time decision engines need their own set of data that might actually be a subset of data. “Einstein Personalization is going to look holistically at a customer and recommend a next-best-action that could be natively surfaced in Service Cloud, Sales Cloud or Marketing Cloud.”

Finally, trust

One feature of the presentations at Connections was the reassurance that, although public LLMs like ChatGPT could be selected for application to customer data, none of that data would be retained by the LLMs. Is this just a matter of written agreements? No, not just that, said Jania.

“In the Einstein Trust Layer, all of the data, when it connects to an LLM, runs through our gateway. If there was a prompt that had personally identifiable information — a credit card number, an email address — at a mimum, all that is stripped out. The LLMs do not store the output; we store the output for auditing back in Salesforce. Any output that comes back through our gateway is logged in our system; it runs through a toxicity model; and only at the end do we put PII data back into the answer. There are real pieces beyond a handshake that this data is safe.”

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

MARKETING

Why The Sales Team Hates Your Leads (And How To Fix It)

Published

on

Why The Sales Team Hates Your Leads (And How To Fix It)

Why The Sales Team Hates Your Leads And How To

You ask the head of marketing how the team is doing and get a giant thumbs up. 👍

“Our MQLs are up!”

“Website conversion rates are at an all-time high!”

“Email click rates have never been this good!”

But when you ask the head of sales the same question, you get the response that echoes across sales desks worldwide — the leads from marketing suck. 

If you’re in this boat, you’re not alone. The issue of “leads from marketing suck” is a common situation in most organizations. In a HubSpot survey, only 9.1% of salespeople said leads they received from marketing were of very high quality.

Why do sales teams hate marketing-generated leads? And how can marketers help their sales peers fall in love with their leads? 

Let’s dive into the answers to these questions. Then, I’ll give you my secret lead gen kung-fu to ensure your sales team loves their marketing leads. 

Marketers Must Take Ownership

“I’ve hit the lead goal. If sales can’t close them, it’s their problem.”

How many times have you heard one of your marketers say something like this? When your teams are heavily siloed, it’s not hard to see how they get to this mindset — after all, if your marketing metrics look strong, they’ve done their part, right?

Not necessarily. 

The job of a marketer is not to drive traffic or even leads. The job of the marketer is to create messaging and offers that lead to revenue. Marketing is not a 100-meter sprint — it’s a relay race. The marketing team runs the first leg and hands the baton to sales to sprint to the finish.

​​

via GIPHY

To make leads valuable beyond the vanity metric of watching your MQLs tick up, you need to segment and nurture them. Screen the leads to see if they meet the parameters of your ideal customer profile. If yes, nurture them to find out how close their intent is to a sale. Only then should you pass the leads to sales. 

Lead Quality Control is a Bitter Pill that Works

Tighter quality control might reduce your overall MQLs. Still, it will ensure only the relevant leads go to sales, which is a win for your team and your organization.

This shift will require a mindset shift for your marketing team: instead of living and dying by the sheer number of MQLs, you need to create a collaborative culture between sales and marketing. Reinforce that “strong” marketing metrics that result in poor leads going to sales aren’t really strong at all.  

When you foster this culture of collaboration and accountability, it will be easier for the marketing team to receive feedback from sales about lead quality without getting defensive. 

Remember, the sales team is only holding marketing accountable so the entire organization can achieve the right results. It’s not sales vs marketing — it’s sales and marketing working together to get a great result. Nothing more, nothing less. 

We’ve identified the problem and where we need to go. So, how you do you get there?

Fix #1: Focus On High ROI Marketing Activities First

What is more valuable to you:

  • One more blog post for a few more views? 
  • One great review that prospective buyers strongly relate to?

Hopefully, you’ll choose the latter. After all, talking to customers and getting a solid testimonial can help your sales team close leads today.  Current customers talking about their previous issues, the other solutions they tried, why they chose you, and the results you helped them achieve is marketing gold.

On the other hand, even the best blog content will take months to gain enough traction to impact your revenue.

Still, many marketers who say they want to prioritize customer reviews focus all their efforts on blog content and other “top of the funnel” (Awareness, Acquisition, and Activation) efforts. 

The bottom half of the growth marketing funnel (Retention, Reputation, and Revenue) often gets ignored, even though it’s where you’ll find some of the highest ROI activities.

1716755163 123 Why The Sales Team Hates Your Leads And How To1716755163 123 Why The Sales Team Hates Your Leads And How To

Most marketers know retaining a customer is easier than acquiring a new one. But knowing this and working with sales on retention and account expansion are two different things. 

When you start focusing on retention, upselling, and expansion, your entire organization will feel it, from sales to customer success. These happier customers will increase your average account value and drive awareness through strong word of mouth, giving you one heck of a win/win.

Winning the Retention, Reputation, and Referral game also helps feed your Awareness, Acquisition, and Activation activities:

  • Increasing customer retention means more dollars stay within your organization to help achieve revenue goals and fund lead gen initiatives.
  • A fully functioning referral system lowers your customer acquisition cost (CAC) because these leads are already warm coming in the door.
  • Case studies and reviews are powerful marketing assets for lead gen and nurture activities as they demonstrate how you’ve solved identical issues for other companies.

Remember that the bottom half of your marketing and sales funnel is just as important as the top half. After all, there’s no point pouring leads into a leaky funnel. Instead, you want to build a frictionless, powerful growth engine that brings in the right leads, nurtures them into customers, and then delights those customers to the point that they can’t help but rave about you.

So, build a strong foundation and start from the bottom up. You’ll find a better return on your investment. 

Fix #2: Join Sales Calls to Better Understand Your Target Audience

You can’t market well what you don’t know how to sell.

Your sales team speaks directly to customers, understands their pain points, and knows the language they use to talk about those pains. Your marketing team needs this information to craft the perfect marketing messaging your target audience will identify with.

When marketers join sales calls or speak to existing customers, they get firsthand introductions to these pain points. Often, marketers realize that customers’ pain points and reservations are very different from those they address in their messaging. 

Once you understand your ideal customers’ objections, anxieties, and pressing questions, you can create content and messaging to remove some of these reservations before the sales call. This effort removes a barrier for your sales team, resulting in more SQLs.

Fix #3: Create Collateral That Closes Deals

One-pagers, landing pages, PDFs, decks — sales collateral could be anything that helps increase the chance of closing a deal. Let me share an example from Lean Labs. 

Our webinar page has a CTA form that allows visitors to talk to our team. Instead of a simple “get in touch” form, we created a drop-down segmentation based on the user’s challenge and need. This step helps the reader feel seen, gives them hope that they’ll receive real value from the interaction, and provides unique content to users based on their selection.

1716755163 298 Why The Sales Team Hates Your Leads And How To1716755163 298 Why The Sales Team Hates Your Leads And How To

So, if they select I need help with crushing it on HubSpot, they’ll get a landing page with HubSpot-specific content (including a video) and a meeting scheduler. 

Speaking directly to your audience’s needs and pain points through these steps dramatically increases the chances of them booking a call. Why? Because instead of trusting that a generic “expert” will be able to help them with their highly specific problem, they can see through our content and our form design that Lean Labs can solve their most pressing pain point. 

Fix #4: Focus On Reviews and Create an Impact Loop

A lot of people think good marketing is expensive. You know what’s even more expensive? Bad marketing

To get the best ROI on your marketing efforts, you need to create a marketing machine that pays for itself. When you create this machine, you need to think about two loops: the growth loop and the impact loop.

1716755163 789 Why The Sales Team Hates Your Leads And How To1716755163 789 Why The Sales Team Hates Your Leads And How To
  • Growth loop — Awareness ➡ Acquisition ➡ Activation ➡ Revenue ➡ Awareness: This is where most marketers start. 
  • Impact loop — Results ➡ Reviews ➡ Retention ➡ Referrals ➡ Results: This is where great marketers start. 

Most marketers start with their growth loop and then hope that traction feeds into their impact loop. However, the reality is that starting with your impact loop is going to be far more likely to set your marketing engine up for success

Let me share a client story to show you what this looks like in real life.

Client Story: 4X Website Leads In A Single Quarter

We partnered with a health tech startup looking to grow their website leads. One way to grow website leads is to boost organic traffic, of course, but any organic play is going to take time. If you’re playing the SEO game alone, quadrupling conversions can take up to a year or longer.

But we did it in a single quarter. Here’s how.

We realized that the startup’s demos were converting lower than industry standards. A little more digging showed us why: our client was new enough to the market that the average person didn’t trust them enough yet to want to invest in checking out a demo. So, what did we do?

We prioritized the last part of the funnel: reputation.

We ran a 5-star reputation campaign to collect reviews. Once we had the reviews we needed, we showcased them at critical parts of the website and then made sure those same reviews were posted and shown on other third-party review platforms. 

Remember that reputation plays are vital, and they’re one of the plays startups often neglect at best and ignore at worst. What others say about your business is ten times more important than what you say about yourself

By providing customer validation at critical points in the buyer journey, we were able to 4X the website leads in a single quarter!

1716755164 910 Why The Sales Team Hates Your Leads And How To1716755164 910 Why The Sales Team Hates Your Leads And How To

So, when you talk to customers, always look for opportunities to drive review/referral conversations and use them in marketing collateral throughout the buyer journey. 

Fix #5: Launch Phantom Offers for Higher Quality Leads 

You may be reading this post thinking, okay, my lead magnets and offers might be way off the mark, but how will I get the budget to create a new one that might not even work?

It’s an age-old issue: marketing teams invest way too much time and resources into creating lead magnets that fail to generate quality leads

One way to improve your chances of success, remain nimble, and stay aligned with your audience without breaking the bank is to create phantom offers, i.e., gauge the audience interest in your lead magnet before you create them.

For example, if you want to create a “World Security Report” for Chief Security Officers, don’t do all the research and complete the report as Step One. Instead, tease the offer to your audience before you spend time making it. Put an offer on your site asking visitors to join the waitlist for this report. Then wait and see how that phantom offer converts. 

This is precisely what we did for a report by Allied Universal that ended up generating 80 conversions before its release.

1716755164 348 Why The Sales Team Hates Your Leads And How To1716755164 348 Why The Sales Team Hates Your Leads And How To

The best thing about a phantom offer is that it’s a win/win scenario: 

  • Best case: You get conversions even before you create your lead magnet.
  • Worst case: You save resources by not creating a lead magnet no one wants.  

Remember, You’re On The Same Team 

We’ve talked a lot about the reasons your marketing leads might suck. However, remember that it’s not all on marketers, either. At the end of the day, marketing and sales professionals are on the same team. They are not in competition with each other. They are allies working together toward a common goal. 

Smaller companies — or anyone under $10M in net new revenue — shouldn’t even separate sales and marketing into different departments. These teams need to be so in sync with one another that your best bet is to align them into a single growth team, one cohesive front with a single goal: profitable customer acquisition.

Interested in learning more about the growth marketing mindset? Check out the Lean Labs Growth Playbook that’s helped 25+ B2B SaaS marketing teams plan, budget, and accelerate growth.


Disruptive Design Raising the Bar of Content Marketing with Graphic

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

Trending