Don’t blame the message…..check your market first

B2B, campaign, ideal customer, Marketing, messaging, single target market

I recently had two failures on a set of email campaigns that we ran for our B2B audience. As usual the first input I got from he sales team and their managers was “not a single response”. I was tied up in some other activities before I could analyse the issues. So last week I sat down with my team and asked them to come on Zoom so that I could see exactly what’s going on.

Whenever you talk about campaign failures – the first place that I like to check is the database (Also called the audience or in abrader term the market) in case of B2B prospects.

So if you try to sell carpet cleaning, you should be sure that the audience you are talking to has deployed carpets in their homes. Otherwise you can do the best advertising, messaging, offers but you won’t get an enquiry.

in my understanding when you have to do a post mortem of an advertising or email campaign failure, first start with the database because more than 50% of the times, that is the primary cause.

To come back to my story, I started going account by account for one campaign and realised that we were sending mails to the said designations of people, but the size of the companies was way higher than what I had mentioned in the Ideal Customer Profile. Somewhere there was a mis-communication between the manager and the database resource and we had this issue.

In the second case, the broad industry, revenue etc. were all matching. We didn’t have the break down of the sub industries. Before starting the campaigns, I had asked the research guy to give a sub-industry breakup also so that we are sure of the audience to whom we are sending. Since sales guys have their own time pressures, they decided to overrule me and the campaigns were sent out. Again “not a single response”. So during this session I decided to go to each company in the database and I asked the sales guy to show me the company details on Linkedin. Soon it was apparent that the sub-industries in which our service is not applicable were predominant in the database.

Whenever you want to analyse the failure of a campaign start with the Market/database first – you may not need to go any further after that.

Till next time then.

Carpe Diem!!!

Single Target Market – Who’s not your customer

B2B, Marketing, Marketing Stamina, Product Management, segmentation, single target market

I keep harping about the Single Target Market whenever you want to enter a new market. The Single Target Market helps you define your segmentation or niche very crisply, including the use case. Sometimes though its difficult to identify this easily because you believe your service is good for different people and you don’t want to miss any market.

When I am going no where with this discussion, I change track and ask the people, whom do you not want to do business with. So to use the analogy of the picture above you could start by eliminating the blue and orange soft toys.

So from a B2B perspective, we first identify which is the geography we would like to start with so that we immediately focus our energy on the most efficient geography, then we identify who would be the lousiest industries to work with – this could be because those industries don’t have the need or they don’t pay well or they haven’t reached the level of supporting infra for your product or service to work etc. This way we eliminate more than half of the universe that we could target.

So now we start moving forward. Out of the industries that we are left which are the top 2 in terms of spending in the area that we operate. You fish where the fish are, why make life difficult. With this you eliminate may be the remanning 30-40% of the market. What is left then is about 10-20 % of the market from where you started.

Now between these, which companies can you easily make an entry versus some extremely large companies where the hierarchies are so huge that you will never be able to make an entry. Then you would like to eliminate the companies who may not be able to afford what you have to offer.

So from the whole universe where you could market or sell your product or service you have now come down to less than 5% of the market that you started with.

From here it becomes a choice of selecting the kind of customer you want to do business with. Then you have to be relentless in your focus on these customers and have the marketing stamina for the next 2-3 years if you want to make any meaningful inroads.

This is a counter intuitive way to move forward but if we don’t narrow down our choices we will not be able to dominate the market.

Till next time then.

Carpe Diem!!!

Losing hurts more than the joy of winning – Product and Brand Management – 2

B2B, ego, Fear, Human Brain, life time value, losing, Marketing, Product Management, winning

In yesterday’s post I spoke about how the human brain’s resistance to lose, makes the job tougher for a product management person to get a new product into the market. Nobody wants to be seen as a fool in case something goes wrong. The hurt of losing is very acute.

On the other hand there’s a positive side for the marketing person to utilise. Since marketing is applied psychology, you need to use this same concept to your advantage. That’s how brands are built. They are the trust / the promise that a user feels, when buying something from a known name (brand) versus buying an unknown name.

In the B2B space, therefore once you have entered into an account and done an excellent job, you need to spread your tentacles and try to do as many things as possible. Since the customer trusts you, they will prefer to first come to you to check out before going out into the market to find a new vendor.

So while getting into a B2B customer is tough, once there and if you have done an excellent job, the possibility of doing long term business is very high. So when looking at a B2B customer, you need to look at the lifetime value of a customer before taking any decision of refusing an order. Especially if it is at the time of entry into the account, you have to keep this dynamic in mind. Even if you have to make loss on a one time deal, for the first time, you should pick up the deal, provided you are clear that they do a lot of buying where they will involve you. You can then make up for the money you lose, by getting a logo to brag about in your brand building as well as the long term revenue possibilities.

You will also sometimes come across customers who will always want you to lose. For those types of customers, you should be ready to leave them at the earliest.

But coming back, the same feature of the brain which causes us hurt can also be used to increase revenues by ensuring that the customer realises why they trust you versus trying a new vendor.

Till next time then.

Carpe Diem!!!

Losing hurts more than the joy of winning- Product and Brand Management

B2B, ego, Human Brain, losing, Marketing, Product Management, winning

I had written two posts on my practical experience the other day on how not getting one packet out of the two I had ordered….made me feel bad while getting a complementary gift from the company which was roughly 8 times more in terms of value did not cause me as much joy.

This has a lot of implications for us marketing folks, whether you’re in product management or brand management etc.

Once people have experienced your product or service, then they would not like to try another brand. This is especially true for high value items. Since most B2B procurement tends to be high value, there’s an even bigger inertia to change. No one wants to feel or be seen as a fool who took a wrong decision.

Since our brain feels the loss more acutely, if something goes wrong with a decision to take a new vendor, the manager who took the decision will lose face. They may have taken a lot of right decisions but one wrong decision will keep haunting them. So they would rather go with the tried and tested vendor even if the technology they have is old or product is not as good as yours.

As a product manager , you need to figure out how you will find those companies who have a management which is willing to take risks with your new offerings, if you are coming for the first time in the market. On the other hand if you already have customers, you should always take your new offerings to them to try out. Since they know you they might be willing to experiment with your new offerings.

We will continue on this topic further in tomorrow’s post.

Till next time then.

Carpe Diem!!!