INTRODUCTORY

A CEOs Guide to

Selling B2B Tech Using Targeted Marketing

Learn how B2B Tech Startups can Attract, Convertand Delight Customers with Inbound Marketing.

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Technological advances are disrupting a wide range of industries. The CEO of EMC,

Joe Tucci, recently stated that businesses had better prepare for disruption or be the

disruptor. The McKinsey Global Institute compiled a list of 12 technologies expected

to have an impact of between $14 and $33 trillion annually by the year 2025. Small

wonder, then, that “Business Insider” reports that venture capitalists are still rushing to

fund technology enterprise startups.

Problems arise, however, when companies on the cutting edge of technology fail to

understand that traditional marketing methods simply are not going to produce the

desired results. Just as technology has been reimagined to meet the needs of the

“Internet of Things,” so, too, must businesses reimagine their marketing focus and if

necessary, revise the way they think about marketing their products and services.

About this eBook

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Table of Contents

1. Define Exactly What You Want to Accomplish . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

1.1 Who are Your Buyers? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

1.2 How do You Obtain Leads? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

1.3 Do You Optimize Marketing Automation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2. Understand That Traditional Marketing May Not Yield Results . . . . . . . . . . . . . . . . . . . . .9

2.1 Traditional Marketing is Expensive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

2.2 Traditional Marketing Methods are Becoming Ineffective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

2.3 Modern Sales Cycles are Customer-Driven . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

3. Keep an Open Mind Regarding Inbound Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

3.1 Attract Potential Customers to your Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

3.2 Convert Casual Website Visitors into Leads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

3.3 Nurture Leads & Close them in to Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

3.4 Continue to Delight Your Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

4. Avoid Common Tech Startup Marketing Pitfalls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

4.1 Pitfalls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

5. Expect a Positive ROI from Inbound Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

5.1 Be Patient . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

4Selling B2B Tech Using Targeted Marketing

1 . Define Exactly What You Want to Accomplish

Traditionally, many companies have considered the marketing department to be a financial drain on re-sources. This has often been the result of a “shotgun” approach to marketing and the lack of a reliable method for measuring success that made it easier for other de-partments to win the competition for limited resources. In a rapidly changing, competitive and global economy, old-school marketing simply will not achieve the results that your tech startup needs. Thus, the first step is to clearly define what you hope to accomplish with your marketing strategy.

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You likely have limited resources to

spend, and mass marketing is a good way

to squander your money. You need to

tailor your marketing toward the buyers

that matter, i.e., those who actually have

a need for your product and are the most

likely to make a purchase. This is called

targeted marketing.

For example, if you are producing a

high-end smart thermostat, your typical

buyers are not going to be renters, teen-

agers or low-income singles. However,

without targeted marketing, you will be

spending a substantial portion of your marketing dollars to reach these groups along

with -- hopefully -- a few people who have both the interest and the means to buy what

you are selling. Therefore, you need to determine who is most likely to need your ser-

vices or products.

1.1 Who are Your Buyers?

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Venture capitalists like to see that the

company in which they invested is gain-

ing ground and will likely show a good

return on their investment. Lead gen-

eration is an excellent way to do this.

However, you need qualified leads, not

an abundance of leads who are highly

unlikely to become buyers. Targeted

marketing can help you pre-qualify your

leads. This makes it much easier for your

staff to convert leads into sales.

1.2 How do You Obtain Leads?

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Marketing automation is an area that is

often misunderstood and under-utilized.

Marketing automation is not buying a list

of email addresses. Modern marketing

automation is inbound and focused

around the prospect. It uses prospects’

behavior over multiple channels, such

as accessing an article in the knowledge

center or clicking on social media icons,

to help marketers understand their

needs and wants. It then delivers the

information to the prospects where and

when they want it.

The two primary things to remember about marketing automation are:

• Marketing automation supplements your lead generation and marketing

efforts. It does not replace them.

• Your messages should be focused on the living, breathing person receiving

your message. You must use all of the tools at your disposal to develop a

complete image of the person’s interests and challenges so that you can

properly nurture the lead.

1.3 Do You Optimize Marketing Automation?

8Selling B2B Tech Using Targeted Marketing

Traditional marketing techniques have, for the most part, been outbound marketing, also known as push marketing. Customers would hear a commercial on the radio, see a print ad or be forced to sit through a commercial to watch their favorite television program. If they opted in on a website, they received a multitude of emails with special offers or plaintive pleas to make a return visit. Major corporations still conduct many mass-marketing campaigns, some of which are simply attempts to keep the company name embedded in consumers’ minds. However, this is not going to yield the results you currently need.

2 . Understand That Traditional Marketing May Not Yield Results

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WebFX recently compiled a list of the costs involved in traditional advertising.

• A 30-second commercial on national television costs between $35,000 and $2

million, which does not include the cost of production or setup.

• A full-page ad in a national magazine costs between $3,000 and $25,000 per issue

plus setup and design costs.

• A half-page ad in a national newspaper costs approximately $28,000 per day plus

setup and design costs.

None of the above methods offers a definitive method of tracking your return on

investment.

• A direct-mail campaign will cost you between $1,500 and $15,000 for setup and

approximately $2.20 for each addressee.

• Outbound telemarketing costs between $20 and $60 per telemarketer per hour,

and you will likely spend at least $1,000 for setup.

Although both of these methods offer some ability to target recipients and track

your return on investment, both have drawbacks. Direct mail costs are at the mercy

of postage rates and printing costs, and both methods have the potential to irritate

potential customers and harm your image.

2.1 Traditional Marketing is Expensive

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Increasingly, people are “tuning out” commercials on television and radio, ignoring

print ads and deleting marketing emails without reading them. This makes it extremely

difficult to reach the people you want -- potential buyers. There are three primary

reasons for the growing ineffectiveness of traditional marketing:

• If you have ever watched an episode of your favorite television program

online, you might have noticed that the one-hour episode is actually around 45

minutes long. When the program airs live, the other 15 minutes are devoted to

commercials -- up to 30 ads per hour. Viewers are inundated by ads. Many find

the practice annoying, while others just mute the ads, “channel surf” or use the

2 .2 Traditional Marketing Methods are Becoming Ineffective

Welcome.

Give & Take.

Entertain & Educate.

Interact.

Reach Out.

Take.

Broadcast.

Speak.

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Selling B2B Tech Using Targeted Marketing 11

ads to make phone calls, prepare a snack or check email. The multitude of ads

-- and people’s propensity to ignore them -- is not limited to television. Radio,

magazines and newspapers follow similar patterns in both the number of ads and

the way people react to them.

• Consumers are more critical and wary of advertising. Today’s buyers do not

blindly accept a marketing claim. They are more likely to go online and see what

others have to say about a product or conduct independent research prior to

making a purchase.

• Modern buyers prefer to feel empowered. They want to be the ones initiating

a purchase and retain control over the process. In other words, they want to

contact you at their convenience.

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Due primarily to the Internet, the way that people make purchases today has

drastically changed. They have rebelled against high-pressure sales tactics, and

they are not overly fond of even low-pressure tactics. They want to educate

themselves about your products and services independently and at their own

convenience. Customers want to be in control, and they prefer to think of the

act of making a purchase as a process in which they take a proactive part rather

than reacting to a marketing strategy. As a result, most of your buyers have

progressed well beyond the halfway point in the sales cycle before they make an

initial contact with your sales staff.

2.3 Modern Sales Cycles are Customer-Driven

13Selling B2B Tech Using Targeted Marketing

Modern customers do not need to wait for you to contact them with your message. They can log onto the Internet and perform a quick search to find what they need. Inbound marketing, in simple terms, is allowing them to find you when they are looking for solutions. Furthermore, since they are the ones initiating the contact, you do not run the risk of alienating them with an aggressive marketing campaign. Inbound marketing has a number of advantages for your company.

3 . Keep an Open Mind Regarding Inbound Marketing

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Letting your customers come to you helps

eliminate those who have no need for or

interest in your services. If a potential

customer takes the time to search you

out, that demonstrates a certain level of

interest. However, when he takes additional

actions, such as clicking on one of your

banner ads to visit your website, he is

demonstrating a higher level of interest. If

he submits an online form requesting more

information, emails you with his project

details, comments on your blog posts or

opts in for your newsletter, he has taken

things to the next level. In most cases, these

last actions indicate a qualified lead.

3.1 Attract Potential Customers to your Website

Strangers

ATTRACT

BlogKeywords

Social Media

Visitors

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Tech buyers seldom reach the point of

information overload. Between 80 and 90

percent of all visitors to your website are

there to learn about your company and

your services, and they are nowhere near

ready to make an actual commitment.

But, it’s in your business’s best interest to

capture these leads to eventually nurture

them into paying customers.

Convert these visitors into leads by

providing valuable offers in exchange for

their contact information through various

call-to-actions on your site.

3.2 Convert Casual Website Visitors into Leads

CONVERT

FormsCalls-to-ActionLanding Pages

Visitors Leads

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According to a survey conducted by Google

in 2011, the purchase cycle for a tech

buyer can begin more than 12 months prior

to actual purchase, with four to six months

being the average. Therefore, once you

have a qualified lead, you need to continue

to nurture the relationship until the

customer is ready to hear your sales pitch.

If you have nurtured your leads properly,

converting them to customers should

be relatively easy. Keep in mind that

just because a visitor to your website

submitted a form, it does not necessarily

mean that he is ready to commit to a purchase. If you have a system for determining

where the customer is in the buying cycle, you can track progress until the right

moment comes for sales to take over. One way to help you do this is to produce

content to help potential buyers educate themselves. Encourage potential buyers to

interact with you by leaving feedback, posting questions or leaving comments -- and

then monitor everything and take any appropriate actions.

3.3 Nurture Leads & Close them in to Sales

CLOSE

EmailSignals

Workflows

Leads Customers

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Tech startups tend to grow at a very brisk

rate. When a company is experiencing

fast growth, the concept of retaining

customers can sometimes be overlooked.

It is a well-known fact that it costs

more to attract a new customer than

to retain a current one -- and it is even

more expensive to lure one back who has

left you because he felt unappreciated

or undervalued. The more emphasis

you place on staffing your business

with people who care about delighting

your customers, the more success you

will have. Use your inbound marketing

platform to help you keep customers

informed and educated to demonstrate

your commitment to their success.

3.4 Continue to Delight Your Customers

DELIGHT

EventsSocial Inbox

Smart Content

Customers Promoters

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Strangers

ATTRACT CONVERT CLOSE DELIGHT

BlogKeywords

Social Media

FormsCalls-to-ActionLanding Pages

EmailSignals

Workflows

EventsSocial Inbox

Smart Content

Visitors Leads Customers Promoters

Inbound Marketing: The Complete Picture

19Selling B2B Tech Using Targeted Marketing

Traditional marketing strategies have revolved around the seller, not the buyer. That attitude is still pervasive in some corporations. However, the modern buyer is more interested in what you can do for them than ever before. Success may require you to change your thinking about how to sell.

4 . Avoid Common Tech Startup Marketing Pitfalls

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• Understand that your company really is not the center of the galaxy. Focus

more on offering solutions for your customers and educating them, and spend

a little less time patting yourself on the back in front of them.

• Find out where your customers are and meet them there. For example, if your

customers have a significant presence on social media sites, so should you. It is

pointless to market your services where your potential buyers are absent.

• Use a light touch when attempting to attract customers. Pull, rather than

push. Offer them relevant information that they can use; tell them what they

need to know rather than what you want them to know.

• Pay special attention to customer services. Modern customers tend to take

outstanding customer service as a right to which they are automatically

entitled, so you may not get any points for being exceptionally helpful.

However, the first time a customer feels slighted, you can be virtually assured

that there will a forum post somewhere about it.

4.1 Pitfalls

YOU MUSTCHANGE HOW

YOU SEE THINGS

INBOUNDMARKEING

IS THENEW WAY

21Selling B2B Tech Using Targeted Marketing

5 . Expect a Positive ROI from Inbound Marketing

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• B2B companies typically see leads increase 23.9 times per month after the initial

12 months.

• In 2013, approximately 34 percent of all leads came from inbound marketing

methods.

• Respondents from the above survey also stated that their inbound marketing

provides significantly higher ROI than other methods.

5.1 Be Patient

A well-executed inbound marketing

program should provide a positive return

on your investment. Here are some

statistics to consider:

• Inbound marketing methods

provide leads that are not only more

numerous, but also of higher quality

and less costly per lead than outbound

methods. In 2013, a survey found

that inbound marketing introduces

approximately 54 percent more leads

to the funnel than outbound methods.

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As far as the size of the investment, it depends on where you are in establishing an

inbound marketing program and how much help and support you will require. Once

established, your monthly budget to sustain your activity will probably range between

$2,000 and $3,500; growing your program will cost between $4,000 and $7,500; and

accelerating your program will cost an estimated $8,000 to $12,500 per month.

Marketing today is far more than advertising. You must embrace the entire customer

experience if you want to keep a customer for life.

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To learn more about Inbound Marketing, and to get a free assessment of your online marketing activities, get in touch with us today.

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