September 22, 2020

Heath Williams – Top 5 marketing tips for CEO's

[Music] [Music] hello and welcome today I'm with George Brown North American Marketing GUI GUI are we gonna go with GUI or genius anyone of me today you're not quite a legend but George Brown North American Marketing Legend and Chris so this afternoon I thought we you know marketing goes hand in hand with sales so today I thought we should have a little chitchat about what do we think of the top five well the top five things a CEO should be thinking about many things thinks of marketing you know it's a great question and you know I have written this that this presentation one's called the seven sins of senior management so some of the content will come from here as it relates to marketing right and I think first and foremost with a CEO you have to understand there's quite a difference between marketing and sales they're they're very distinct competencies and talking to CEOs they always will say well you know they use them synonymously and they're not they're very different so point number one for CEOs is you know get clarity in your own mind about the differences between what sales does what marketing does and I often caution CEOs and say if lips are moving that's the sales activity it's a great benchmark it is alright and that leads me to my second point he okay d-nut saying the second point is that sales is being disintermediated from the bycicle you know like salespeople are used to servicing a cell cycle not servicing a bycicle yeah and so right now in the world right people prejudice themselves about the purchase decision based on marketing content could you give us an example of that for example people want to buy a piece of software in the old days they would dial up and talk to some software vendors and try and get some socks they'd call a bunch of them today what they do in the comfort of their own office chair is they search places like g2 crowd cap they search all the various software companies they compile all the case studies they download the research to do all that mmm they already have a bias right yeah then they reach out their sales operation right so marketing like they look at it the average is today pipeline or probability of clothes right it used to be salespeople ran the entire process zero to a hundred percent right now marketing depending on industry does between zero and fifty percent of that lab yeah and actually that's really interesting because I love those sales guys I talk to are getting confused at the start point of a sale yeah they didn't know where they are and that's because of exactly that point right marketing has to do that lift first and if they don't then sales people it it it it really destroys the sales performance then but it's an interesting thing that's why I say to CEOs get your head around that times have changed right think about yourself when was the last time you started phoning people to get information yeah L know it straits around the internet straight on the Internet to mr.

Google searching around for you by yourself then you go look at so I know like you know traditionally with the outbound model the sales driven model that the the sales cycle model you're expecting to touch that prospect up to fifteen times before you can potentially get a you know positive response from them what's it like on the marketing side though I mean you know how many touches you are we talking about in order to to influence someone to give them a positive bias you know that that's an excellent question it's a segue to my third point but but what it does if you look at what we'd call mas or marketing automation solutions right it writes or record every time you would be looking at some content on the website so when you pull up a record on a prospect you might see somewhere between five and fifty touch points with your organization before they ever fall so I'm saying the bias is already there mm-hmm right and so that's actually my third point to the CEO right now in marketing unlike any other time in the past again the past most CEOs would be frustrated because the marketing guy in their opinion be blowing money like crazy and what they're talking about is look at all the impressions I got I got a lot of impressions and the CEO was thinking I don't care about impressions it doesn't pay any of my bills where's the revenue right so M ROI market and return on investment has never been easier to measure right and that is because in the on-demand marketing right we can know exactly how many dollars we invested and what we got in return that's called revenue attribution right we know exactly I invested so much I can see my first point of contact I can see all the contacts they had and then I could see where the sales force took over and how much it cost so I mean it's a mystery to everybody how much did that new customer cost to acquire that's the question right and and and most companies lie to themselves they never actually look at it how much it really look but you know acquisition cost marketing and sales combined can be somewhere between 25 and 50 percent of revenue right it's a big number yeah right and they don't you could never get to it before because how do you measure impression or how do you know somebody saw you in a magazine and them yeah you would never know now you can you can actually tell it and if you're CEO you're thinking there well I don't get that information now you know the amount of information available on a website like I could literally go to your competitor and tell you how much they're spending and advertising what advertising is working yeah what keywords are targeting what's the most popular page I can tell you everything about your competitor by looking at we could never do that before and I suppose you need to reflect that customer acquisition costs against the lifetime value of the customer you know is that not part of the decision process about where you're putting those dollars it depends on industry crystal say for example in a software business we would always net out cost of acquisition against lifetime value although that what you're really hoping for is break-even in year one that's really what your whole breakeven oh yeah easy you want to make sure that your cost of acquisition you still have you know at least broke even in year one mm-hmm right and that's because software lasts seven to ten years right on the inside what about budget because some of the things you're talking about you know getting the information benchmark and analyzing some some companies don't have those systems in place to benchmark how do you identify what a marketing budget should be marketing budget so and that would be my fourth point actually it's gonna segue to marketing budget right and that is that most organizations under invest in marketing and or what I call they contaminate the marketing spend I've looked at yeah so it's color but I think that I think there's good reason for that because when I'm had control of the marketing budget I've often just seen it just disappear and then I have no nothing tangible to tell me that these are the results and the fever because really I as a sales guy what I care about is where the leads to be able to to close to convert to money and so I want if I'm spending X amount of marketing I want to see those these coming in and convert to revenue but it's often and then money gets spent on stuff and you just can't see where the tangible results are you go to companies and their Google Analytics account isn't turned on that's free yeah their website doesn't have you know a link to Google Analytics you don't have cookies turned on they have nothing turned on so they have no data yeah right and so that data is actually most of that daily I'm talking about is free yeah but you see that comes down to the knowledge in your business you know as a CEO do you have somebody internally with the skills and understanding to go and switch Google Analytics on you know incense company it might be there but you don't know it because you haven't got the resources to switch it on so so having that knowledge in-house and looking at the resources you might want to recruit could be important too I mean it's critical it used to be you know when someone in your company couldn't do anything else you put them in market yeah yeah but it feels it feels like we've moved in the last twenty years maybe more from a situation where yeah there was a it seemed like a bottomless pit you're just pouring money in now in a situation where it's far more data driven is the nice science is the science have to come to is become technical and I would say the skill sets in your marketing team are now you probably have some kind of IT specialist support and you yeah and I would look at it I say this like most people say to me I want to hire one marketing person I say well probably you're gonna hire an outside agency to help you because the the what they're looking for is a unicorn okay I want somebody who is very analytical yeah they have to be a graphic artist they have to be creative they have to understand off page SEO they need to be an expert in on-page SEO they need to be an excellent copywriter and by the way they should build websites too it's a unicorn it doesn't exist doesn't exist right and that they but you'll have to recognize that do we have the competencies in our marketing team to effect a return on investment and if not that budget yeah I should keep it low right but but I'm accustomed to working with companies that you come in you say listen we want to spend a million dollars this year in marketing and then you know the question has to be well what revenue you want back from it what type of revenue do you want you know big revenue whether you're spending a million or a hundred thousand or fifty or twenty thousand you couldn't want the same results but in a different ratios you still need to have those that those aspects of marketing benchmark so you know that you're getting a return on your investment so I'll come back to that budget question right so worldwide average budget spent investment in marketing is around two percent right top performing companies range between eight and thirty three percent of revenue invested in marketing right so sorry the US companies I'm talking worldwide companies mmm the same in Europe if I syrupy instant they've spend less yes look we think he looks a European cohort and we do this data analysis all the time European companies unless you look at the big brands BMW and other companies like that have learned right but if you look at the small to medium-sized businesses they spend on average here 1.

7 yeah okay right and so but but basically what we're saying is you're under spending now you're under spending because of my my first point the difference between sales and marketing right they put the money into sales but they forgot you know half the sales cycle is conducted by marketing today the under-invest in that and that's where that you know you're talking about that conflict you know the sales guy doesn't know what to do yes like a list yeah that's okay now I'll add one other point because today is brexit date congratulation thank you very much right right but but but what's brexit on the horizon and and and I hate to say this with recession looming on the horizon because we're in a 12-year growth cycle right now that you know historically we're getting ready for a recession that's when most CFOs and CEOs decide we're cutting all expenses right but that's a mistake that's a mistake top performing companies always say listen as we go into recession we want to sustain our revenue as much as possible so they actually increase the marketing spend I know that sounds counterintuitive but they want to be bigger coming out of the recession recession is gonna last one and a half to two years so when they cut the companies they've proven it the companies that invest in marketing during the recession come out of the recession much stronger and bigger and then their peers and they've taken their competitors market share yeah they've driven it and pushed it yeah in history sharing that and also you know in recession people are spending less that means the cost of marketing is cheaper actually right cuz your pay-per-click cost everything goes down mm-hmm right in the degree you keep marketing your quality score goes up which means your cost goes down there's a whole bunch of factors that affect that right but ultimately it really drives to don't under invest in it right yeah and and you know and to my last point is you have to inspect what you expect in other words you have to have a marketing plan and budget and you have to do monthly reviews to know you're on target and remember in the digital world I can adjust today or tomorrow and affect my result this month we couldn't do that before tonight right marketing before we mean we have to stage it print it distribute to all that stuff for six weeks out to affect revenue but in the digital world if we have what I call its called evergreen campaigns that we have an evergreen campaign I could affect revenue in January starting on January 15th right but you can't even the old days you couldn't do that so let's maybe my five big point really you mentioned George a couple of times this idea that that marketing accounts for up to 50 you say 50 percent or up to 50% of 50% so of the sales cycle but I think that's because information is pushed out now you know we talked on another podcast about reducing five-step sales cycles down into three because organizations now are pushing the information out because the buyers are doing their own research and so they're analyzing and looking at case studies and information on the internet so they're jumping down the sales cycle but they don't need that person to inform or button down but we're not so we're not we're not surely saying that we shouldn't have an outbound aggressive sales team that's just you know hitting the phones and and doing that outreach I mean I think the landscape is changing a lot because we've got gdpr so there's you're not able to send out all the mass emails you're not able to do you know people don't want cold calls anymore technology's playing a large part as well by using what we talked about smart websites who are actually creating inbound opportunities for you and there's a big shift from that there's definitely a place for outbound activity for sure but it's not like it used to be and I think some some organizations they need to adapt and and and start bringing in the modern methods and using the new smart marketing technologies but if you can actually go and actually attract your customers by the smart message that we're talking about our you'll find yourself halfway down the sales cycle and so you're reducing that sales time but is the case of embracing the modern methods of marketing and I think for me no longer that you say that that Unicorn doesn't exist you can't forget that one person I think there's a lot of technologies out there now that need to be to use like google google analytics well somebody that's used to doing one element of marketing doesn't necessarily know how to use the technical side it's not just Google Analytics there's loads of software pieces out there that you've got to get your head around and then you've got to know it and then apply it and then get the data and then use that data so I think there's a quite a number of skill sets now in the marketing department but they're never war but for a smart business now you think you've got to adapt to that you've got to accept that there's going to be changes in your marketing department that your budget now isn't just about throwing agates advertising the wall but you need to invest in the resources and the people in the company so that those people have the skill sets to advance your business over and above that of your competitors if you think about the whole marketing picture and then dovetail that into your sales you're gonna have a much stronger business and as you say with the recession possibly I never like to talk business down but with a recession possibly coming it is a proven fact that marketing during that period will you know the people that succeed when you come out to the side are those who have invested in their marketing and driven a business and they will take market share from their competitors so I think right now it's really important to to take a good look at your marketing department analyze it make sure that the right resources are using the right technology and support it because historically CEOs have gone oh if you're gonna burn a pound put it into marketing but I think now you need to be saying no I've got to invest in marketing to drive the business forward one more thing on here which most CEOs won't be aware of but a good marketing team would always start with what I call keyword research who would always do the research from existing clients to find out what they were looking for at the time yeah analyze where the volume is and then build content and adds to that you know it's no longer you know throwing it dart against the wall I mean when you do an ad you're only appealing to 2 or 3% of the market that will buy the other 97 percent was a waste and on-demand marketing it's quite a lot less waste no trying to get to that yeah look chaps that's been great and really insightful and thank you again George for your time I know you're flying off soon we've only had you for a couple of days but it's been fantastic thanks for having me and so for those watching I hope you found that interesting we have an email address below which please contact us if you'd like to be involved or discuss more and thank you for watching [Music] you.

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