617: The 5 Things That Best-In-Class Marketers Do Better Than Their Peers w/ Laura Patterson

ABOUT THIS EPISODE

In this episode we talk to Laura Patterson, President of Vision Edge Marketing.

LinkedIn: https://www.linkedin.com/in/laurapattersonvem/

Are you struggling to come up with original content weekend and week out? Start a podcast, interview your ideal clients, let them talk about what they care about most, and never run out of content ideas again. Learn more at sweet fish Mediacom. You're listening to the be tob growth show, a podcast dedicated to help you be to be executives achieve explosive growth. Whether you're looking for techniques and strategies or tools and resources, you've come to the right place. I'm James Carberry and I'm Jonathan Green. Let's get into the show. Welcome back to the BE TOB growth show. Today we are joined by Laura Patterson. Laura is the president of Vision Edge Marketing. Laura, welcome to the show. Thank you for having me. Delighted to be here. It's fantastic to have you on the show today. I'm actually I'm on the road. I'm back in San Diego Right now, back in my hometown of San Diego for the holidays. So you know, it's just it's fantastic that we're still able to connect even though you know I'm moving around. It's one of the one of the most brilliant parts, I think, of getting to host a podcast, and today we are going to be talking about the five things that best in class marketers do better than their peers, which I think is going to make for some fantastic content. But, of course, Laura, before we get into today's topic, maybe you can tell our listeners all little about yourself vision edge marketing and what you and your team are up to these days. Wonderful. So Vision Edge Marketing is located here in Austin. By the way, I love San Diego. Think it's a remarkable city. It's nice to live in Austin Texas to we found at the company in Nineteen Ninety nine, so we're going on nineteen years and we started on the premise of being a data driven, a metric space, outcome oriented, customer centric, a strategic and product marketing company. That's really was the impetus and when we started with that premise that was all very, very new. Course, today everyone is talking about how important is to be data to insights driven, and I'll have strong analytical muscle, to be outcome and oriented and customer centric. So these are all very common buzz words today. They weren't in one nineteen and ninety nine, and it's exciting to see that the world and us have sort of met each others, and so that's where we began and it's really our focus is to help companies use the ingredients of insights and and measurement performance management processes to drive growth, create value and improve performance. Absolutely and you know, and it's so fantastic to have someone on the show that's sort of had an eye for for tracking these metrics, these numbers, for so long. I mean you have, you and and your team have kind of this this long term ongoing marketing performance benchmarks study. Am I on point with that? You are, and it started in two thousand and one and we've been really, really fortunate to have great partners over the years to help keep the momentum going and, as reasult, we've been able to collect some really interesting longitudinal data. So that's exciting. Yeah, very exciting, one of the reasons that that you and I were able to connect in the first place. So we're going to be, of course, referencing some of that data that you have. As we talked about these five things that you know, best in class marketers do better than their peers. So I don't want to get ahead of today's topic. But Laura, kind of I got the sense that today we're going to be starting just real briefly talking about the pressure for marketers to be able to sort of connect the dots between the work of marketing and the value to the actual business like so so sort of take it away from there. I'd be happy to and I think it's always helpful to have context...

...such on a than some other data out there that kind of is important around what we're going to share. So there was a study done by kpmg not very long ago and it was really talking about what the expectations are of the board of the CEO, and one of the things that came on of that is that ninety percent of the organizations are really expecting the CEO to move the Organization to growth. And so everyone's been talking about that two thousand and eighteen is the mantra is growth. them the mandate is to grow, and research by deloit and the CMO council kind of following that said, you know, seventy percent of these CEOS expect the CMO to actually lead this revenue growth charge, to be at the forefront of that. Unfortunately, at the same time, a form study came out and said, you know, they may expect it, but CEOS don't have a lot of faith in their CMOS because they didn't. So so you've got this sort of dichotomy. There's an expectation but lack of faith because they're still struggling to really show how they are helping the organization realize the results right, so being able to make the house connections. And so one of the things that happened about a year ago is the tenure of CMOS began to kind of decline again, and so there's just this whole sort of, you know, storm of things occurring at the same time. This force, this you know growth force that's occurring, this whole momentum around growth, the fact that the CMOS need to really make take the lead and, at the same time, some challenges that they're having. So the pressure is really on them and you might have seen the recent forster study that predicted that Cmos may even be eclipsed by chief growth officers. So CMOS actually are at risk and they know they're at risk. So let's talk about what some of them are doing really well. And then in the area of being able to connect the dots and where the challenges are and then some of the other things that we see happening as results of this work. So was that good context? That's Oh my goodness, it's a that's a brilliant context. I think you're speaking. Definitely are our audience is language right now. I think you you know. I think you had their curiosity and now you have their interest. You know, seems maybe at risk. Okay, let's let's take it away from there. So this study that we're going to talk about from last year and we're hoping that we'll be able to do it again next year. As I said, it's been going on since two thousand and one. It's an online study and this year we had what we would say over four hundred qualified study participants. Lots and lots more than that, but we're really, really careful about quarantine data that doesn't seem like it's coming from legitimate sources. So thirty percent of the participants reflected the C suite, so I think that's important to know. That would be CEOS, CFOs, coos and the presidents of companies. We had really great representation of all sizes, all industries, from B to B and B Toc around the world. And what's interesting there's nothing statistically significant in the data about those nuances. It's all pretty much the same. We got, you know, regardless of where they're located, how big they are and what kind of industry they are in. And the results of the study are actually projectables between ninety five percent plus or mine is four point seven five percent. So that's really very, very important to know we're not just making stuff up. It's actually it has really a valuable data that can be applied to everyone. So as we're speaking to you, speaking here, it's not like I say that doesn't mean me, it really does mean just about everybody. And one of the other things that's interesting is when we're starting talking about the best and class marketers and how we characterize them, is they don't really have anything different about their budget. They have the same percentage of budget as the big guys, two small guys and anywhere. So...

...it's not about money and I think that's in a really important thing, because it's really easy for us to say, well, that's because they have more money than we do and and we're that. I just want to let people know that that's not really true at all. Yeah, so that's a little bit of US set up. So what are we what have we learned? We've been tracking the data for a very long time and we kind of just decided to go ten years back in the data for this report just to see what the trends were and what we notice. I'm a very critical question we ask and have asked every year, is what gray the sea suite gives their marketing organization for their ability to prove marketings value, impact and contribution to the business, and we ask them to Grete them. We use a very traditional scale, ninety to a hundred for an a eighty, than eighty nine for a seventy to seventy nine for sea and then sixty nine or less, and that's how we organize all of the data and that's how we characterize the groups. And what's been interesting is that it's been pretty consistent that about one and four one in five marketing organizations earned this a that hasn't changed in a decade. That hasn't changed and so that's a little unders you know, disappointing to see that there are the ranks of the best and class are not increasing. The next group is a very large group and they're about forty percent and the next group, which are the folks that are lagging. That's a group we're kind of concerned about because it's growing. It's also about forty percent so and and in climbing, and that's the that's is a little unnerving considering how much emphasis has been placed on data, on analytics, on metrics, on process on performance management and on marketing technology over the last few years. So you would expect to see that those things would beginning, would be beginning to have an impact and we would see the best and classic group increasing and the lagging group declining. Right. That would be an expectation, and so that was a hypothesis that we went into this year study, that those things would beginning to pay off, and unfortunately that was on a proven the absolute opposite was was proving that the people are doing it well has remained sort of static and stagnant and despite, you know, on this focus that you're talking about, the people who are doing it poorly has has actually increased. And this was this was kind of a point that you and I had talked about. You know, I had had the opportunity to talk to you before we recorded a few weeks ago and I had mentioned. You know, there's so many people out there with with a voice. Now, there's so many people that are trying, are vying for your attention. They're trying to get, you know, eyeballs on the page, you know, got clicks to the website, and so they're they're producing an insane amount of content and we have all these incredible tools and resources at our disposal. But despite the fact that everyone has a voice, not everyone is right. Not everyone knows what they're doing or what their time out and now they're so they're they're pumping out misinformation. So there's all this information, but so much of it is bad at the same time. Yes, well, that is what happens in all industries and we see that everywhere. So that's true. You're exactly right. So what we decided we would do is okay. If it's not, if maybe let's go with the assumption that it's not. The martech all right, because everyone's most companies are investing the significant portion of their dollars, anywhere from fifteen to thirty percent of their marketing budget, as being allocated to mare tech these days pretty pretty consistently, and that it's been a lot of data around that in fact, I think there's a recent study done by Gardner that's talking about the how the Spen, marketing spen is being allocated, and that would be people are interested in learning more about that. So we said, okay, we have been talking about these groups of marketers for quite a while and we have created...

...personas for them, and so these best in class marketers, we were able years ago to characterize them as value creators, and these are really a group of marketers who focus on creating value for customers and the business and connecting the work of marketing and the investments of marketing to very specific, quantifiable business outcomes. The middle of the pack, those forty percent of marketers, we call those the sales enablers, and they are see their primary role as being in service to the sales team, and I think this is an important distinction between the value creators and the service sales enablers. The value creators are still very partnered with the sales organization, but they see them as partners. They collaborate together and fat marketing oftentimes as taking a lead, particularly strategically. In the sales enablers it's a different kind of relationship in that they're at these, the sales enablers, are servicing the sales organization as opposed to collaborating with them, and so what is a nuance, but it's really important because they see their customer and as the sales team, and that's a little bit different orientation and a nuance that's in sportant to distinguish between value creators and the sales enablers. That that last group, that laggered group, those are our campaign producers and these folks are really, really good at the work of marketing. They still do a lot of measurement and they use a lot of data, but they kind of see themselves as a service provider. They kind of operate like an internal organization or internal agency to the team and it's all about kind of producing on demand, right. So not to blime anyone in that organization because that they're really verily valuable and they're very, very talented, but they tend to be specialized into key areas that they know how to do well. They don't think in the big picture about, you know, how they're contributing to the to the overall business outcomes, because they are in their their roles of being producers, and so that's an important thing to know about them. Interesting. So we've got. Okay, so we've got sort of these three categories. You've got you've got the upper echelon, value creators, below that the sales enablers and sort of slightly below that, the campaign producers. Each one, like you said, you know, are do certain things well, but you want to find yourself in this like sort of value creators segment, the ones that are collaborating with your with your sales, not just enabling and not just being so hyper specialized in terms of producing, you know, marketing campaigns, that you've lost sight of the bigger picture. So you know, if it's not, as you mentioned, a question of size, budget or industry, you know across the you know the almost twenty years of studies that you've done, but it does consistently come down to five capabilities that, again, these best in class marketers, do better than their than their peers. Let's talk about it. What are we talking about, Laura? Okay, I'm I want to talk about those and then we'll come back around to how does that translate into things that matter to the sea sweet, because I think that's going to be important too. So there's there's let's talk about these five things. First and foremost is what we call business acumen, and this is a really an interesting thing because the CMO of juniper networks recently talked about this in an article he wrote as saying that, you know, marketers need to be business people first, and we've been saying that for years. In this research and its count we capture that in business acumen. This is actually being able to understand the business in its entirety and exercise really good judgment because you are connected to the business. As opposed to thinking about marketing, you're thinking about the business and value creators. They still have opportunities to grow here, but on a scale of one to ten in terms of being able to demonstrate really good business acumen, they score like a seven point one, and it doesn't seem...

...like a really good great. I mean, if your kids came home with a seventh the Ott of a hundred, you probably wouldn't l likeight be, you know, you know, breaking out the champagne. But if you compare that to sales enablers, they get like six point five and campaign producers they get like a five point four. So that's a failing grade right, and you would be really disappointed in that. So that's the number one thing. So all marketers can get better at that. This does not take technology, this doesn't take any of that. This is just about investing understanding your company, your competitors, your customers, your market. You know good old basic, you know business, you know skills, right, Yep, listening, listening to what's going on when the leadership team is talking about their challenges and their opportunities. I'm still amazed sometimes when I work with Marketing Organization, some marketing organizations, I'll say, who are your top twenty customers? What products do you sell to them? What's your opportunity for growth with them? You know, what is your strategy for increasing your footprint within each of those business what's your current share of wallet? Questions like that, and it's like during the headlights, right, you know, and we'll same thing when talking about market segments and market opportunity. So really every marketing person should know that. The second thing is they really do know how to select the right metrics and there's a there is a formula to selecting the right metrics, and this is related to data. But metrics take data, but they're not necessarily the same thing. So value creators are much better at picking and selecting metrics that matter to the c suite and much better mastery at go selecting right on metrics, and they are able to make their metrics form what we call and have trademarked as metrics chains. These are impact of value metrics chains. So the met the measures that they select and the metrics that they use form a chain that goes from the work of marketing to the results that marketing effects, and so they can use that. And then that allows them to really understand what data they have to hone in on, whether that's customer data or competitive data or market data, performance dat it's all kind of becomes much clearer because they can see exactly what's going to be salient, and that's often because they've done a really good job in their planning. Their plan is different. Their plans are structured in such a way as their have this hierarchy kind of built in. So a lot of marketers build plans. Almost every marketing organization has a plan, whether that's in powerpoint or an excel or some other document. The challenge is often that it's really just a list of things that marketing is going to do, when they're going to do it and how much is going to cost. And that's not really a plan right. That's kind of interesting. I mean, I know my husband's in construction, so often talk about the difference between the list of materials that you're going to need and when you're going to need them and how much they're going to cost in constructing a home, as opposed to the actual, real blueprint, right, of what that house is going to look like and what the picture is going to be at the end and how it's going to sit on the site and a bunch of different things, right, that go into the blueprint. The four things, so the first three acumen, metrics and the chains. The fourth thing is they are willing, the best and class markers of value creators are willing to put a stick in the ground and set a performance target that they think is going to be the number they have to reach or achieve in order to move the dial for the business. So they don't but Lord, but Laura of you, if you have a target, that means there's the possibility of failure. As true about that, that is true, but it's not a revenue target because we don't market two buckets of revenue. We market to customers, whether those are new customers or existing customers. That's what marketing does. We don't market...

...to buckets of revenue. We are responsible. We are the only organization with the word market in our title. Therefore we are supposed to know the market, and the market is comprised of an ecosystem that includes partners, competitors and customers, and so that's our job, is to know those. And eighty percent of value creators can have performance targets for all of their marketing objectives and programs and they're almost all outcome based, whereas like campaign producers, maybe only fifty two percent of them, you know, and back to those metric chains, kind of similar. You know, ninety six of the value creators, which is a very net very small group of them, only fifty eight of them actually use metrics chains. Right. But if you compare that to the sales enablers, which we are a hundred sixty seven sales from enablers. Out of that over four hundred, only sixty of them use metrics chains and only fifty five of the campaign producers, which is the rest of the group, which the hundred sixty right, use chains. So that means that only forty one percent of all marketing organizations can produce those metrics chains. That's why we'rengs were being challenged by the sea suite, because if you don't have the metrics chains, which often incorporate these performance targets, then you can't get to the last ingredient, which is dashboards, because you can't make good metric dashboards without performance targets and metrics chains. Yes, you can click on the button in a marketing tech tool and produce a visual report of the data in that tool. You can do that, but that's not the same thing as a performance management dashboard. And this is one of the things that Besson class marketing organizations of value crators are really superior at doing, and their dashboards do three things that almost none of the other groups dashboards do. They can monitor and measure marketing subjectives as they are producing results to the outcomes, they can analyze the performance of the campaigns and other marketing activities and they can try act their marketing metrics, the key performance indicators that are going to tell them whether they're on track in real time. This allows them to make course adjustments, mitigate risk and facilitate better decisions. So those are the fine things in a nutshell, perfect and and so or I was so. I know you we wanted to revisit very quickly after we went through sort of these the five things at the best and class marketers do better than their peers. Again, we've got the business acumen, they select the right metrics, they have their metrics chains, they set performance targets and they have these these performance management dashboards. But why does that all matter to the sea? Sweet? I know we wanted to. We wanted to wrap it up and bring it back to that last question. Well, I think what matters is what, if you can do these things, does it make a difference to the business? And what we ask and look at in this data is the business results by for these organizations and then compare that to the business results produced by each of the personas. And so we look at things like revenue growth, marketing, contributions to the pipeline, the win rate, the share of Wallet, Customer Retention, the ability to acquire new customers, the increase in the inquiry rate, diability to improve customer loyalty and the ability to generate new opportunities. And with the exception of wind rate, which I'm going to come back to in a moment. Value creators are much better and every single one of those. So things that might fall into the traditional camp of sales and neighbors and campaign producers right still the value. The value creators are better at those things, even though that's not their area of focus. So that shows you, you know, stepping back and and having these capabilities will help you even address the things that campaign producers and sales enablers tend to focus on. myopically say it will just automatically the...

...halo of that. Now when ry, interestingly enough, none of them do very well on affecting that. This value creators are about exactly the same as their other as our counterpartss or calleagues, and I think that has a lot to do with the sales organization right, because the cloak who's really closing the deal. So I'm not really surprised by that, but it's interesting that as marketing gets further and further into the relationship with the customer and the responsibility of moving those opportunities closer to the close, I will be interesting to see how that plays out. Absolutely and so again we've been talking with Laura Patterson. Laura, you're clearly an expert in this area. You've been doing research for for decades, tracking metrics, and I really appreciate you sort of sharing some of the lessons that you've learned from this incredible study you've been doing, and I know you could continue to talk about you know, best in class marketers and value creators, and I want to continue to talk to you about it. If any of our listeners are interested in possibly following up about today's topic, if they want to learn a little bit more about vision edge marketing or they want to connect with you, what's the best way for them to go about doing that? Well, I hope they'll come visit us on our website, which is vision edge Marketingcom, because we have a tremendous amount of content and resources there. We really want to see every marketing organization join the ranks of the best and class and for the best and classic continue, you know, on their journey. So we have a lot of content there. I'm always receptive to receiving an email or linkedin invite. So my email is Laura P for Patterson at Vision Edge Marketingcom and you can find me on Linkedin and anyone can reach out to me there. And that's just on Linkedin and it's, you know, Laura Patterson v EM. Happy to follow folks on twitter and other places, but those are probably the first two places to start to connect perfect well, Laura, thank you again so much for your time and your expertise today. It really was a pleasure having you on the show. Thank you. Thank you, Jonathan. If you're a BEDB marketer, we want to feature you on sites like the Huffington post social media examiner in chief marketer. Every week we send that a question related to be to be marketing. We use the responses to those questions to fuel the content we write for really popular websites. So head over to sweet fish Mediacom slash questions and sign up today. Thank you so much for listening. Until next time,.

In-Stream Audio Search

NEW

Search across all episodes within this podcast

Episodes (1774)