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B2B Data
You Don’t Have to Love It, But
Don’t Ignore It!
Ruth P. Stevens
@RuthPStevens
www.ruthstevens.com
2
How much attention to you pay to your data?
But, wait. It is our problem!
3
The business case for complete, accurate data
1. Market coverage: Improve response, leads and
sales by reaching more targets.
2. Save money: Lower costs with less waste.
3. Customer satisfaction: Address customers
properly and company perception
Bad customer data costs U.S.
businesses more than $600 billion
a year in wasted communications
and staff overhead—not to mention
lost opportunities.
--The Data Warehouse Institute
In B2B, data underlies everything
Table of Contents
1 The marketing database
2 Data sources
3 Data architecture
4 Person data
5 Data management
6 Data uses
7 International data
8 Data-driven marketing on a
shoestring
9 Troubleshooting
10 Cases studies in data-driven
marketing
11 Where B2B data-driven
marketing is headed
Download sample chapters at http://b2bdatadrivenmarketing.com/
4
SOURCING DATA ABOUT
CUSTOMERS AND PROSPECTS
Building your database: Have you tapped these
sources of customer and prospect information?
Internal sources
• Sales contacts
• Billing systems, credit files
• Ops/fulfillment systems
• Customer service systems
• Web data, e.g. logs, social
media
• Inquiry files, referrals
External sources
• Business partners/channels
• Prospect lists
– Compiled files
– Response files
– Prospecting databases
– Customized data
• Surveys
• Database append
5
4 steps to strategic, cost-effective data
acquisition
1. Identify the data elements you need.
– Develop a data strategy.
2. Append elements available from third-
party suppliers.
3. Fill in the gaps with “data discovery.”
– Outbound telephone or internet research, to
target accounts
– Probing on buying roles and contact info
4. Focus on key accounts.
Next generation data sources
• Shared contact databases generated by sales
and marketing people in B-to-B
• Data generated automatically by sweeping
corporate websites
• Contacts generated as look-alikes from your
top accounts.
• Predictive lead scoring by modeling best
customers.
6
More new data sources
• Data discovery, via technology and by hand.
• Purchase intent inferred from online behavior.
• Rich contact profiles based on business
people’s social media data.
• Auto populate landing page forms with
account data.
Turn your website into a data source
7
13
Supplemented by IP address identification
Providers
VisitorTrack
VisualVisitor
Demandbase
Visistat
WhoIsVisiting
The danger in form-fill data
Source: Eloqua
8
HOW CLEAN IS YOUR DATA?
Take your medicine…
Data degrades quickly
B-to-B
• Business data degrades by
4-6% per month.
Consumer
• U.S. households move at the
rate of 20% per year.
The lesson?
Invest in data hygiene.
Decisions made on bad
data are more dangerous
than on no data at all.
9
17
B-to-B data decay, in context
Source:D&B
706 firms will move 120 new businesses will
open
578 businesses will change
their phone numbers
60 businesses will shut down
250 business phone
numbers will be
disconnected
514 suits, liens or judgments
will be filed against
companies
120 D&B credit ratings will
change
120 corporate CFOs will
change
60 companies will change
their names
10 firms will file a bankruptcy
petition
In the U.S., in the next two hours…
Data degradation in Argentina
A CEO changes every 30 months, on average.
A manager changes jobs every 18 months.
A list of CEO names will be 40% incorrect within a year.
A list of manager names will be 67% wrong after a year.
Based on input from Francisco Risso,
B2B data broker and long-time AMDIA
member.
10
Decay rates differ by element
36.3%
23.9%
21.5%
21.2%
20.7%
18.0%
16.0%
17.4%
15.8%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
Mail Address
Business Name
SIC
Phone Number
Physical
Address
CEO Name
Add'l Exec
Sales Volume
# Employees
Decay rates of
key business
data elements
over a one
year period
(US data).
--From an internal study
conducted by D&B.
5 steps to data hygiene
1. Standardize data and train key-entry
personnel.
2. Train and motivate customer-facing
personnel to update the data.
3. Use data-cleansing software, internally or
externally.
4. Allow customers access to their record on
your web site, so they can make
changes.
5. Outbound phone or email to verify,
especially to top customers.
For recent white
papers on data
hygiene best
practices, visit
ruthstevens.com/
whitepapers.
11
Segment your hygiene strategy
Mrs. Beasley’s makes
annual outbound calls
every August to
accounts who bought
>$250.
Invest in clean-up
on your top
customers first.
HOW TO GET THE MOST VALUE
FROM YOUR DATA
Two case studies
12
Top database marketing applications
1. Research/analysis
– Purchase patterns, product patterns
– Trends
– Segmentation
2. Promotion
– Campaign targeting/selection
– Cross-sell/up-sell
– Reactivate dormant/lost customers
3. Measurement
– Campaign results
– ROI, optimize marketing investments
– Lifetime value, Managing customer segments
B2b data-driven
techniques
Segmentation
Penetration analysis
Profiling
Modeling
Targeting/campaign
selection
Recording results of
marketing activity
Makino case
Profile, segment and laser-target accounts.
13
Makino’s database strategies
• Generate targeted demand
• Makino’s key and target
accounts must be reached.
• Generate leads to fuel Makino’s
continued market-share growth.
• Create consideration by
owning the conversation:
Thought leadership
• Connect Makino users with
targets via content marketing
• Align Makino with innovative
parts, products, processes and
partners.
Print
Media
Webinar
Program
Traditional
PPC
SEO
Email
Social
Media
Media
Relations
LEAD GENERATION/
SALES ADVANCEMENT
Custom
Publications
Digital
Media
White Papers
Direct
Mail
BRAND
AWARENESS
Social
PPC
Trade Shows
Competitive
Tools
Makino
IMC
Box/IPad
SALES
ENABLEMENT
A market leader in a changing market
• Relied primarily on trade shows and print advertising in trade
pubs. In 2004, Makino Americas understood it needed to
change.
– Turned to digital and database marketing
• Built a database in Saleslogix organized by rep territory.
– 15 years of customer data
– Subscribers to their 4 custom pubs
– Imported trade pub subscriber files
– Total: 6,000 accounts
• Analyzed total metal cutting market: 55,000 accounts.
– Identified buyers based on UCC filings and government records.
– Sales team identified target accounts.
– Marquee accounts like GE and Caterpillar.
– Total: 8,000 accounts, with 2-30 contacts per account.
14
Data combined with content
An unusual focus on social media
• 74,000+ Facebook page
Likes/Fans
• 6,012 LinkedIn Followers
• 1,802 YouTube Subscribers
• 5,305 Twitter Followers
• Messages drive to deep
content at Makino.com
• Goal is conversions/Lead
generation
15
Data-driven marketing ROI
• 200% increase in social media
audience
• Web traffic up 18%
• Record lead creation in 2014
– RFQ’s average 2-3 per day
• 4 record sales years in a row
• Market share growth
• Marketing expense as a % of
sales declining
Marketing expense as % of sales
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Five9 case
Look-alike modeling for prospects.
16
Database strategy
• “First, we target the right accounts. We
look at past wins, and the attributes of
those customers. We examine those
who buy and later become long-term
clients.” --Doug Sechrist
• Look-alike modeling identified 6,000-
7,000 prospects. All demand gen efforts
are focused there.
Key variables in the model
• Number of employees in the call center.
• Presence of a customer service or outbound sales and
marketing team.
• Use of an outbound collections department internally.
• Use of similar technologies, whether SaaS or on
premise.
• Past purchase of cloud-based software.
• Competitive technologies installed.
• Use of “adjacent” or complementary technologies, like a
workflow management system.
17
Marketing strategies
• Developed individual personas based on
existing top buyers, using details from
LinkedIn and other social sites.
• Built a tiered system of lead distribution,
giving hottest leads to top reps.
–Uses outsourced appointment setting
vendors to help qualify leads and develop
new contacts in key accounts.
Ready to focus on your data?
ruth@ruthstevens.com
@RuthPStevens
Thank you

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B2B DATA: You Don't Have to Love it, But Don't Ignore it

  • 1. 1 B2B Data You Don’t Have to Love It, But Don’t Ignore It! Ruth P. Stevens @RuthPStevens www.ruthstevens.com
  • 2. 2 How much attention to you pay to your data? But, wait. It is our problem!
  • 3. 3 The business case for complete, accurate data 1. Market coverage: Improve response, leads and sales by reaching more targets. 2. Save money: Lower costs with less waste. 3. Customer satisfaction: Address customers properly and company perception Bad customer data costs U.S. businesses more than $600 billion a year in wasted communications and staff overhead—not to mention lost opportunities. --The Data Warehouse Institute In B2B, data underlies everything Table of Contents 1 The marketing database 2 Data sources 3 Data architecture 4 Person data 5 Data management 6 Data uses 7 International data 8 Data-driven marketing on a shoestring 9 Troubleshooting 10 Cases studies in data-driven marketing 11 Where B2B data-driven marketing is headed Download sample chapters at http://b2bdatadrivenmarketing.com/
  • 4. 4 SOURCING DATA ABOUT CUSTOMERS AND PROSPECTS Building your database: Have you tapped these sources of customer and prospect information? Internal sources • Sales contacts • Billing systems, credit files • Ops/fulfillment systems • Customer service systems • Web data, e.g. logs, social media • Inquiry files, referrals External sources • Business partners/channels • Prospect lists – Compiled files – Response files – Prospecting databases – Customized data • Surveys • Database append
  • 5. 5 4 steps to strategic, cost-effective data acquisition 1. Identify the data elements you need. – Develop a data strategy. 2. Append elements available from third- party suppliers. 3. Fill in the gaps with “data discovery.” – Outbound telephone or internet research, to target accounts – Probing on buying roles and contact info 4. Focus on key accounts. Next generation data sources • Shared contact databases generated by sales and marketing people in B-to-B • Data generated automatically by sweeping corporate websites • Contacts generated as look-alikes from your top accounts. • Predictive lead scoring by modeling best customers.
  • 6. 6 More new data sources • Data discovery, via technology and by hand. • Purchase intent inferred from online behavior. • Rich contact profiles based on business people’s social media data. • Auto populate landing page forms with account data. Turn your website into a data source
  • 7. 7 13 Supplemented by IP address identification Providers VisitorTrack VisualVisitor Demandbase Visistat WhoIsVisiting The danger in form-fill data Source: Eloqua
  • 8. 8 HOW CLEAN IS YOUR DATA? Take your medicine… Data degrades quickly B-to-B • Business data degrades by 4-6% per month. Consumer • U.S. households move at the rate of 20% per year. The lesson? Invest in data hygiene. Decisions made on bad data are more dangerous than on no data at all.
  • 9. 9 17 B-to-B data decay, in context Source:D&B 706 firms will move 120 new businesses will open 578 businesses will change their phone numbers 60 businesses will shut down 250 business phone numbers will be disconnected 514 suits, liens or judgments will be filed against companies 120 D&B credit ratings will change 120 corporate CFOs will change 60 companies will change their names 10 firms will file a bankruptcy petition In the U.S., in the next two hours… Data degradation in Argentina A CEO changes every 30 months, on average. A manager changes jobs every 18 months. A list of CEO names will be 40% incorrect within a year. A list of manager names will be 67% wrong after a year. Based on input from Francisco Risso, B2B data broker and long-time AMDIA member.
  • 10. 10 Decay rates differ by element 36.3% 23.9% 21.5% 21.2% 20.7% 18.0% 16.0% 17.4% 15.8% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% Mail Address Business Name SIC Phone Number Physical Address CEO Name Add'l Exec Sales Volume # Employees Decay rates of key business data elements over a one year period (US data). --From an internal study conducted by D&B. 5 steps to data hygiene 1. Standardize data and train key-entry personnel. 2. Train and motivate customer-facing personnel to update the data. 3. Use data-cleansing software, internally or externally. 4. Allow customers access to their record on your web site, so they can make changes. 5. Outbound phone or email to verify, especially to top customers. For recent white papers on data hygiene best practices, visit ruthstevens.com/ whitepapers.
  • 11. 11 Segment your hygiene strategy Mrs. Beasley’s makes annual outbound calls every August to accounts who bought >$250. Invest in clean-up on your top customers first. HOW TO GET THE MOST VALUE FROM YOUR DATA Two case studies
  • 12. 12 Top database marketing applications 1. Research/analysis – Purchase patterns, product patterns – Trends – Segmentation 2. Promotion – Campaign targeting/selection – Cross-sell/up-sell – Reactivate dormant/lost customers 3. Measurement – Campaign results – ROI, optimize marketing investments – Lifetime value, Managing customer segments B2b data-driven techniques Segmentation Penetration analysis Profiling Modeling Targeting/campaign selection Recording results of marketing activity Makino case Profile, segment and laser-target accounts.
  • 13. 13 Makino’s database strategies • Generate targeted demand • Makino’s key and target accounts must be reached. • Generate leads to fuel Makino’s continued market-share growth. • Create consideration by owning the conversation: Thought leadership • Connect Makino users with targets via content marketing • Align Makino with innovative parts, products, processes and partners. Print Media Webinar Program Traditional PPC SEO Email Social Media Media Relations LEAD GENERATION/ SALES ADVANCEMENT Custom Publications Digital Media White Papers Direct Mail BRAND AWARENESS Social PPC Trade Shows Competitive Tools Makino IMC Box/IPad SALES ENABLEMENT A market leader in a changing market • Relied primarily on trade shows and print advertising in trade pubs. In 2004, Makino Americas understood it needed to change. – Turned to digital and database marketing • Built a database in Saleslogix organized by rep territory. – 15 years of customer data – Subscribers to their 4 custom pubs – Imported trade pub subscriber files – Total: 6,000 accounts • Analyzed total metal cutting market: 55,000 accounts. – Identified buyers based on UCC filings and government records. – Sales team identified target accounts. – Marquee accounts like GE and Caterpillar. – Total: 8,000 accounts, with 2-30 contacts per account.
  • 14. 14 Data combined with content An unusual focus on social media • 74,000+ Facebook page Likes/Fans • 6,012 LinkedIn Followers • 1,802 YouTube Subscribers • 5,305 Twitter Followers • Messages drive to deep content at Makino.com • Goal is conversions/Lead generation
  • 15. 15 Data-driven marketing ROI • 200% increase in social media audience • Web traffic up 18% • Record lead creation in 2014 – RFQ’s average 2-3 per day • 4 record sales years in a row • Market share growth • Marketing expense as a % of sales declining Marketing expense as % of sales 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Five9 case Look-alike modeling for prospects.
  • 16. 16 Database strategy • “First, we target the right accounts. We look at past wins, and the attributes of those customers. We examine those who buy and later become long-term clients.” --Doug Sechrist • Look-alike modeling identified 6,000- 7,000 prospects. All demand gen efforts are focused there. Key variables in the model • Number of employees in the call center. • Presence of a customer service or outbound sales and marketing team. • Use of an outbound collections department internally. • Use of similar technologies, whether SaaS or on premise. • Past purchase of cloud-based software. • Competitive technologies installed. • Use of “adjacent” or complementary technologies, like a workflow management system.
  • 17. 17 Marketing strategies • Developed individual personas based on existing top buyers, using details from LinkedIn and other social sites. • Built a tiered system of lead distribution, giving hottest leads to top reps. –Uses outsourced appointment setting vendors to help qualify leads and develop new contacts in key accounts. Ready to focus on your data? ruth@ruthstevens.com @RuthPStevens Thank you