It’s Time For a Customer StrategyTransforming Advocacy from Marketing Tactic
to Competitive Advantage
Key results from the 2015 Study on Customer Advocacy and Engagement By The Center for Customer Engagement and SiriusDecisions
What We Learned: The Good News
2015 Study on Customer Advocacy and Engagement
More Than 200 Companies Participated in 2015 Study
• Company sizes (by annual revenue in US $)• 33 percent less than $100 million• 23 percent more than $5 billion• 21 percent between $101 million and $500 million• 17 percent between $1.1 billion and $5 billion• 5 percent had between $501 million and $1 billion
• Customer types (i.e., who respondents sell to)• 69 percent enterprise (more than 1,000 employees)• 23 percent midmarket (101 to 1,000 employees)• 8 percent small (100 or fewer employees)
• Sales models• 69 percent sell mainly via a direct sales force• 12 percent via inside sales• 12 percent via third-party channels
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Good News: Expanded Responsibilities in 2015 vs. 2013
85 percent said “advocacy” now includes not just traditional references but also other customer marketing efforts (e.g., events, advisory boards, content, communities, others)
+ Up 26 percent from 2013
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Good News: Better Use of Direct Advocacy Sources
Source: SiriusDecisions 2015 Customer Advocacy and Engagement Study
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Good News: Taking Advantage of Technology Support
53 percent said they plan to invest in technology in the next 12 months
Some of what’s in use today: • 60%: Salesforce automation/CRM• 44%: Customer reference platform• 37%: Marketing automation platform• 32%: Online community platform
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Good News: Planned Technology Investment Spans Wider Range
Where 2015 investment is planned: • 54%: Customer reference platform• 25%: Advocate marketing/gamification
platforms • 21%: Online community platform• 21%: Marketing automation platform• 14%: Customer survey platform
• Plus a range of other technologies andservices
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
What We Learned: Opportunity Remains
2015 Study on Customer Advocacy and Engagement
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Opportunity: Sales Help Remains Mostly Voluntary
65 percent said sales help with advocate sourcing is voluntary
Just 7 percent said sales must submit a certain number of references and are measured on this (same as 2013)
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Opportunity: Time To Find, Nurture Your Best Advocates
Just 35 percent of b-to-b companies have a formal process to identify and recruit top customer advocates
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Opportunity: Advocacy Easier Said Than Supported
83 percent said references are “critical” or “valuable” to sales cycle… …But majority still allocate
less than 10 percent of marketing program dollars to customer advocacy and engagement
--No change from 2013
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Opportunity: Your Sales Pipeline Could Have a Silent Killer
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Reality: Customer Evidence Is Critical In All Buying Stages
Source: SiriusDecisions 2013 persona study of C-level buyers
89 percent of CXOs say their perception of a vendor’s brand moderately to significantly influences their short-list creation.
75 percent of a CXO’s research is done via personal interactions and viral communication networks
80 percent of a CXO’s final decision is based on his or her own or others’ experience with your company
Source: SiriusDecisions Persona Study
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Holding Us Back: We Don’t Know Enough About Buyers
Only 18 percent said they know their buyers journey extremely well, map it and know the roles involved
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Opportunity: Advocacy Must Support All Stages of Buying
Source: SiriusDecisions 2013 persona study of C-level buyers
33 percent said they believe customers frequently rely on advocacy/references in the education (early) phase vs. 55 percent in solution (mid) and 76 percent in selection (late) phases
23 percent don’t focus at all on advocacy support for education (early) phase.
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
It’s Time to Build A Customer Strategy
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
What Does It Mean To Have A Customer Strategy?
Business Goals
Activity
Activity
Activity
Activity
Activity
Buyer/Customer Needs
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Activity
What Does It Mean To Have A Customer Strategy?
Activity
Activity
Activity
Activity
Activity
Business Goals Buyer/CustomerNeeds
Clear link from activity to
intended impact
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Customer Strategy Means Supporting Buyer and Customer Needs
① Loosening of theStatus Quo
SiriusDecisions B-to-B Buying Cycle
② Committing toChange
③ Exploring PossibleSolutions
④ Committing to aSolution
⑤ Justifying theDecision
⑥ Making the Selection
Vendor Selection
Phase
Solution Phase
Education Phase
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Most Companies Offer Array Of Options To Customers …But Are They Being Used In the Most Effective Way?
User & Partner Groups Customer-
led or Company-sponsored
events
Events
Regional or annual customer
events
Online Community
Online customer
engagement platforms
Social Media
External social
engagement communities
Advocacy
Formal customer evidence,
content and engagement
CABs
Executive-level
customer steering groups
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Step 1: Understand What Buyers Need and Provide Support
SiriusDecisions B-to-B Buying Cycle
① Loosening of theStatus Quo
② Committing toChange
③ Exploring PossibleSolutions
④ Committing to aSolution
⑤ Justifying theDecision
⑥ Making the Selection
Vendor Selection
Phase
Solution Phase
Education Phase
What matters most and who do buyers trust as they go through each stage of their journey?
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Advocacy Engagement Examples by Buying Stage B
UYE
R’S
JO
UR
NEY
EDUCATION SOLUTION SELECTION
Loosening of the Status Quo
Committing to Change
Exploring Possible Solutions
Committing to a Solution
Justifying the Decision
Committing to the Selection
AD
VOC
AC
Y O
PTIO
NS
• Logo use (online, presentation, print)• Advertising reference (print, online,
other)• Quote reference (online, audio,
presentation, print, social media)• Success story (online, audio, video,
live presentation, newsletter, print)• Press release quote• Customer co-marketing
• Social community participation• Webcast with client co-presenter• Analyst rating participation
• “Why we chose ABC Co.” story• Switching vendors case study• White paper or other long-form case
study based on client success• Press/influencer interview• Reference audio/video
• Speaking engagement − panel• Speaking engagement − joint or solo
content• Event presentation• Social participation
• ROI case study• Early-stage customer experience
story• Joint press release• Partner reference (call, video, visit,
presentation, online, print)
• Reference call access• Reference visit access• Analyst reference/interviews• Customer event participation• Social participation• Event/hospitality access
Inte
ract
ions
C
onte
nt
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Step 2: Understand What Customers Need and Coordinate Actions
What is appropriate to ask of customers and what are ideal engagement options at each stage of post-sale lifecycle?
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Quick Audit: Where Are Advocacy Contributions Hidden Today?
CUSTOMER ADVOCACY AND ENGAGEMENT ECOSYSTEM
CUSTOMER MARKETING SALES
SERVICE
CUSTOMER SUCCESS
PRODUCT
BRAND/ COMMS
CUSTOMER EXPERIENCE
Grow Retain Develop Deliver
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Map Out When and What To Ask Over Customer Lifecycle
What could a brand new customer share?
What do customers learn
as they work with you? What can they share
with others?
Why do customers stay? What and how
are they willing to share about the value they get
from you?
What makes a customer’s
relationship with you special?
Where are the brand-level
connections? Adv
ocac
y O
ptio
ns
STA
GE
and
GO
AL
Begin path to value Build value Recognize
value Enhance value
Grow/ Advocate
Retain/Actualize
Deliver/ Initiate
Develop/Participate
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Customer Advocacy Examples: Customer Lifecycle Support C
UST
OM
ER
LIFE
CYC
LE
DELIVER/INITIATE DEVELOP/PARTICIPATE RETAIN/ACTUALIZE
Fulfill on Purchase/Use What was Bought
Ensure Adoption, Ongoing Use/ Engage Where Possible Maintain Business/Show Value Build Business/Become
promoter
Support engagement, show path to faster value
FAQs, Tips and Tricks Early deployment stories
Quick win stories Partner recommendations
Customer community User Groups
Customer website areas
Reinforce use or participation, build on value
Answers to FAQs from successful customers
Later-stage customer stories
Customer survey Customer events
Community introductions
Help customer to prove impact
Longer-term ROI Case Study Challenge/solution Stories
Analyst coverage
Executive briefings Customer events
Executive advisory groups Other advisory groups
Cultivate growth and advocacy to enhance value
Innovation case studies Award case study ROI case study
Speaking engagement Event/hospitality access
Community leadership roles External community
participation/leadership
ADVO
CAC
Y R
EQU
IREM
ENTS
ASSE
T O
PTIO
NS
GO
AL
Inte
ract
ions
Con
tent
GROW/ADVOCATE
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
How To Measure Impact
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
How Are Advocacy Teams Measured Today?
58 percent: Quantity of case studies 53 percent: Quantity of references
47 percent: Impact on wins 36 percent: Impact on sales productivity
22 percent: Leads generated 16 percent: Customer retention 13 percent: Customer loyalty/NPS
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
SiriusPerspective: Choose the tactic that best supports the relevant stage. The Impact of Customer Engagement on Sales
Help sales close more deals
e.g. increased probability of conversion through pipeline, more deals in
key categories
Move deals faster through the pipeline
e.g. shorter time to qualify, fewer days to
close overall, fewer days in stage
Find more deals Drive larger deals Find the right deals
e.g. incremental revenue, wider product/solution breadth in deals, deals
found in preferred areas
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Impact Examples for Post-Sale Customer Engagement
Retain • Retain 1 or 5 percent more customers?• Improve loyalty or NetPromoter scores by 5 percent?• Increase customer lifetime length by one year? 5 years?
Reduce • Lower customer support demand by 5 percent?• Lower cost of sale by .5 percent
Improve • Improve product/service engagement by 10 percent?• Increase selling time by 5 percent?• Improve sales yield with upsell and cross-sell?
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Activity
All Because Influence and Impact Of Customer Strategy Is Clear
Activity
Activity
Activity
Activity
Activity
Business Goals Buyer/CustomerNeeds
Clear link from activity to actual influence and
impact
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
What To Do Right Now
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
Action Item Checklist For Your Customer Strategy
1. Understand your buyers journey and whereadvocacy can help
2. Understand your customer lifecycle and when it’sok to ask for advocacy support
3. Understand your customer lifecycle and definewhere advocacy should be providing support
4. Define a measurement strategy that clearly showshow important customer advocacy andengagement are to business results
5. Make a great case for the resources you need tomake an even bigger impact
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved
What Will You Change This Year?
© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved