Highly Competitive - software industry insights

IT + Marketing: Innovation Through Collaboration in B2B Software Companies

 

I’ve read a lot of articles and posts that have discussed various aspects of the uneasy relationship (in many cases) between IT groups and Marketing groups. The people and process side of this ongoing situation puts me in mind of the obstacles and needs for the adoption of a collaboration culture in software companies. For the purpose of this article, collaboration means: talking to each other, listening to each other, analyzing and planning in concert, presence of mutual respect – no silos, no turf wars. Good intent, good communication -- bi-directional and legitimate. The kind of enterprise collaboration where teams work together for common cause: business success, growth, innovation, getting the work done well.

Whether it’s dubbed “IT working with Marketing”, or “Enterprise Collaboration”, upper management has the same responsibility to encourage and sponsor all types of necessary and differentiating collaboration to achieve business goals in ways that are better, faster, and smoother. Unfortunately for many software companies, upper management is not stepping up to enable and empower useful collaborations, particularly cross-departmental. Upper management in this context means CEO, CFO, COO -- all too often, the CIO and the CMO are not accorded power over the decisions coming from these other roles.

 Ben Horowitz on the ‘Innovation Business’:

The technology business is fundamentally the innovation business. Etymologically, the word technology means “a better way of doing things.” As a result, innovation is the core competency for technology companies. Technology companies are born because they create a better way of doing things. Eventually, someone else will come up with a better way. Therefore, if a technology company ceases to innovate, it will die.

Collaboration frequently is a very good way for software company teams to not only work for company success, but to better innovate. Innovation in software companies should not only be about products and solutions; it should be about how the company itself works as a thriving and growing organism, how it empowers staff to be successful on the company’s behalf.

  

Neither IT Nor Marketing Is A Monolithic Being Calling Its Own Shots…

Contrary to popular belief, the “modern” IT group did not spring up fully formed as an autonomous entity that makes decisions in a vacuum. Obviously an exaggeration, but I think a lot of people have this notion in the back of their minds when considering the role of IT. With a startup, the IT team may be more focused on digital infrastructure: hardware, telephony, internet, internal systems. As the company grows and different kinds of employees are added, IT grows too. If the software company IPOs, then the IT group is heavily involved in compliance, security, ensuring always-on performance, and so on. Internal systems may become more complex and numerous, employees more virtual, hardware and infrastructure demands more sophisticated.

Frequently the result is that IT groups become silo’d, but usually not by their own design. Upper management sets the agenda for IT groups and usually holds responsibility for the positioning of IT as separate from the rest of the company.  In recent years, most IT groups have suffered through significant staff cuts while more has been piled on the remaining staff. Upper management then expects instant change from IT to better support the business -- without sufficient resources – and particularly without a strong collaboration culture in place.

Marketing groups are in the same boat as IT regarding who decides their destinies. Software companies in startup mode have a history of adding Marketing functions in haphazard fashion. Many startups still look at “marketing” as something to slap on when the sales team needs more help finding buyers. The reality is that for most software companies, Marketing is an important component of the Business, just as IT is.  But too often, upper management misses the strategic opportunities to do it right – to build teams working together, instead of separately and frequently in conflict.

 

Strategy, Business and Tech

IT has been the target over past several years in companies that rightfully want IT to be more aligned with the strategic needs of the business. IT has received black marks for not moving quickly, not feeding innovation, and so on. Balance this criticism of IT with the reality that upper management usually has a big hand in the current state of IT affairs.

Eric Brown frequently addresses the future of IT with a strong dose of reality:

What’s missing in most of the articles I’ve run across about reinventing IT or changing IT is the effect the Business has had on IT. You can’t really reinvent or change something unless you know the how and why behind the creation of that entity in the first place.

…at the end of the year, the grades are handed out.  Sometimes IT fails. Sometimes IT over-achieves. …most times, IT gets a barely passing grade.

Is this barely passing grade (or failing grade) due to incompetence or mismanagement? Most times it’s not…most times it’s due to changing priorities that aren’t clearly thought through and/or communicated throughout the organization

 And who creates the constantly changing priorities? Upper management.

Harvard Business Review also weighs in on the future of IT:

The authority and responsibility for IT-enabled business outcomes needs to be aligned. The CIO's dilemma…is the challenge of promoting innovation while increasing efficiency. IT is in the untenable position of being held responsible for this even though their business partners control the decisions that impact their ability to do so.

IT governance is really business governance. In many organizations, IT has led the way in implementing governance over critical decisions related to strategy, business architecture, investments, change, programs, risk and sourcing. Over time, organizations have realized that decisions in these areas need to be coordinated across the enterprise and have elevated and consolidated these activities outside and above IT.

This isn't your grandmother's technology. "Technologies for collaboration, business intelligence, and customer interface all require experimentation and iteration" and a hands-on relationship between workers and their technology. Increasingly, the technology necessary to assemble, deploy and operate technology will be provisioned by external providers freeing up internal IT resources to focus on the meaty issues of coaching users on how to exploit the technology and ensure horizontal integration, security, continuity, and performance across the extended enterprise.

 

Marketing + IT  <>  Business + Tech

For many B2B software companies, Customers are now Buyers, many of whom want to drive the relationship and buying cycle, moving sharply away from the former sales-team-focused cycles. The customer experience with the company has gained importance; many company-centric processes must give over to processes with a strong customer focus. Both Marketing and IT have important roles in customer engagement, with marketing technology growing in sophistication and variety. But in most companies the IT group carries the additional responsibility of working with multiple disparate internal constituencies, with priorities determined by project portfolio management, internal politics, and by decisions from upper management.

When IT resources are not easily available to support time-sensitive initiatives, marketing groups have frequently implemented their own technology solutions as a form of Shadow IT. New approaches to effective customer engagement lean heavily on cloud/SaaS based technologies that are fast to set up and use by non-IT staff. Unfortunately a significant side effect of not including the IT group has led to problems: new data silos, separate operations and analytics – lack of integration with other systems in the company.

As cited in a recent post by Cheryl Burgess, the current and frequent state of finger-pointing and lack of mutual respect between IT and Marketing is summed up by Chris Murphy of  InformationWeek:

IT sees marketing as looking for shortcuts, shortcuts that will come back to bite the organization. Marketing, meanwhile, sees IT slowing them down, not delivering on the operational basics, and not understanding marketing needs.

Burgess also points to an Accenture-sponsored study involving over 300 CMO’s and 300 CIO’s that presented this view of Marketing + IT:

The CMO Council believes there is a global imperative for marketing and IT organizations, which too often have been polarized and adversarial, to find common ground around the business of innovating more efficient, effective and measurable ways to target, acquire and stay intimately connected to customers. The need for greater synchronization, partnership and collaboration between these two groups has never been more critical to their mutual success.

 

The Marketing Technologist: Success More Likely With IT and Marketing In Collaboration

Frequently, companies gain better paths to innovation, collaboration and competitiveness with the presence of business-technology hybrids who span departments and leverage cross-team expertise. The demands of innovation, meeting customer needs, and rapidly changing solution markets are challenging software companies to work much more quickly and collaboratively than ever before.

An important hybrid is the marketing technologist. Scott Brinker has published an extensive and well-crafted piece on the rise of the marketing technologist, describing “technology-powered marketing” where “Marketing must take ownership of the technology in its domain”. Some of Brinker’s observations on the marketing technologist hybrid:

As marketers, you're already responsible for the outcomes based on such technology. The accountability so widely promoted in digital marketing has you in the hot seat for results. It's only sensible that you should have full control over the means and mechanisms to deliver those results.

You must be the driver of marketing technology, not merely a concerned passenger. But if you don't have technical depth, who can help you navigate? …I propose a new role in the marketing department: a marketing CTO or chief marketing technologist. The mission of the marketing CTO is to provide that technology navigation.

 Brinker makes the case for highly functional collaborations between IT and Marketing:

..technology decisions and marketing strategy are intertwined. You can't address one without impacting the other.

 Brinker also profiles the ‘3 Spheres of Marketing Technology’: “All these technologies — the ones we buy, the ones we build upon — can be categorized into three overlapping spheres”:

                    

                    

 

Customer-Focused / Technology-Driven Marketing: Attract More Buyers

In 2008, Booz & Company published its view of the growing integration of marketing strategies with technology, “Not Your Typical Marketing Campaign – The Next Wave of Technology-Driven Marketing”:

Next-generation direct marketing demands a front-to-back rethink of the overall IT architecture, with the ultimate goal of better understanding the customer... In the past, each channel would feed customer information individually into the back-end customer relationship management (CRM) and enterprise resource planning (ERP) systems that processed transactions and held much of the customer data. Using the new architecture, all of those channels now connect to a central integrated engine. This engine, available throughout the network, mediates between channels and the customer data and back-end processing. The central campaign engine also contains the business rules that govern every interaction with every customer.

The single most critical innovation, however, lies in doing away with the typical siloed, channel-specific archi­tecture on which most current direct marketing and campaigning technol­ogy depends. No customer-centric marketing effort can be truly success­ful if the technology is still organized around interaction channels, rather than those all-important customers who naturally interact with the busi­ness through multiple channels.

Each step of the way will require the willingness to rethink your overall marketing strategy, the tactical processes by which you plan and carry out each campaign, and the IT tools you need. You must develop the skills required to design and execute analytic campaigns and, of course, you will need to build the technologies to enable those cam­paigns.

 Most important, from begin­ning to end, the CIO and the CMO must work together as partners to design, build, and test the necessary infrastructure, and to expand it, step by step, throughout your company.

 

Marketing Technology + IT: Marketing ERP?

Looking at the transition from channel silos to a more integrated marketing technology platform brings up the notion of Marketing “ERP” to provision, manage and analyze initiatives supported by marketing tech. Egbert Hendriks @ephendriks introduces this notion (whether seriously or tongue-in-cheek) in a recent exchange on Twitter with Kevin Cochrane @kevinc2003:

@ephendriks RT @niels_goossen: Why Marketing Should Run Its Own Technology -- InformationWeek http://bit.ly/dRaLSs

@phendriks: I agree- marketing is becoming a technology-driven discipline. #wcm #dam #vms #bpms integrate in a marketing "ERP"!

@kevinc2003: @ephendriks what do you see as being a marketing "ERP"? Interested in your perspective / insights

 

From the Booz & Company paper:  the diagram to the right below could suggest a path to a Marketing ERP platform. Also be sure to note the transition from channel silos on left, to a more integrated marketing technology platform on right.

 

 
 
http://www.booz.com/global/home/what_we_think/reports_and_white_papers/ic-display/47189813

 

Indeed, marketing has been increasingly technology-driven, relying on marketing management platforms, analytics (multiple), various software systems for content (WCM, WEM, DAM), BPM, VMS (vertical marketing system), social media, lead gen, mobile/multichannel management. We could also throw in MDM, CRM, data/application integration processes, other reporting.

BUT – at this point, the answer to building out highly effective marketing technology systems incorporating the best of Marketing and IT is not found in throwing more tech at the situation. Nor is creating a new software category going to help.

A better approach is the enablement and empowerment of IT and Marketing working as true collaborative partners, where upper management fully supports the elimination of silos and frees up IT to work on strategic initiatives. Software companies still have lots of people and process matters to figure out first. Innovate how the company works together as teams with common purpose. Collaboration culture can lead to and encourage innovation culture, both of which can lead to business success and competitive agility.

 

  

Related Links

I have a confession to make:  I am a Hybrid

Internal Disruption–No Longer Business As Usual

Levels of Social – and Integration – Cut Across Enterprises

Shallow Thinking Ensures Bad Business Decisions

 

About the author: Julie Hunt is an accomplished software industry analyst, providing strategic market and competitive insights. Her 20+ years as a software professional range from the very technical side to customer-centric work in solutions consulting, sales and marketing.  Julie shares her takes on the software industry via her blog Highly Competitive and on Twitter: @juliebhunt   For more information: Julie Hunt Consulting – Strategic Product & Market Intelligence Services

 

 

Internal Disruption – No Longer Business As Usual

Tapping into periodic business model renovation to refresh competitiveness

 

Not too long ago, a tweet from Hutch Carpenter @bhc3 caught my eye:

First step in disrupting an industry: identify the "business clichés"

The tweet linked to an article by Luke Williams, known for his work on ‘disruptive thinking’ for transforming businesses through seeking the unexpected and through adopting proactive disruptive behavior and strategies. The article elaborates on what is meant by business clichés:

In other words, what are the clichés - the widespread, hackneyed beliefs that govern the way people think about and do business in a particular space… inverting or denying industry clichés can often lead to significant business breakthroughs

Williams’ notions of ‘business clichés led to a couple of tweets from me that boil down to:

…apply internally to tech co’s biz model > question assumptions, status quo, disrupt business as usual…to move to new possibilities, competitiveness, new solutions & markets

As with the Social Business, starting internally with change frequently is a better route for companies when faced with the need to disrupt current business models for survival and success purposes. Software companies are especially prone to stand on old business models well past the expiration date. And many software companies are surprised when strong competitors emerge, based on fresh business models.

  

What is a Business Model?

Business models focus software companies on target markets, customers, the solution space and, somewhat indirectly, the competitive landscape, the same matrix that underpins market intelligence. When companies seriously embrace the selection of a business model, the process introduces good and rigorous strategic thinking into decisions about company direction, as well as definition of company scope. Through the business model, the focus is holistic and interactive in terms of how the company will proceed to achieve success.

Of course there are many definitions and concepts about what comprises a business model. A lot of MBA school, entrepreneurial, and VC hours have been spent on not only deciding what is the optimal business model for a particular undertaking but on the strategies to carry out its intentions.

  

The shortest definition that I’ve come across is in a post by Tim Berry: A business model is a description of how your business intends to operate and make money. Berry then goes to the next level:   

But innovative business models go beyond this simple formula to create customer loyalty, make value in unusual ways, and define new products or services that people didn’t know they needed.  

This dovetails somewhat with a business model definition put together by IBM:

• What value is delivered to customers: Customer segments, the value proposition, the specific “job to be done,” what is sold and how it is sold

• How revenue is generated: the pricing model and forms of monetization

• How the company positions itself in the industry: the company’s role and relationships across the value chain

• How the value is delivered: Key internal resources and processes as well as external partnerships.

There is lots of disagreement, lots of vague notions regarding whether business models matter or not.  Some consider the business model almost a sacred object, carved in stone. More and more, many see each iteration of the business model as disposable. A new class of thinking sees the business model not as an end but an ever-evolving means to success as a company.

 

Articulating New Direction - Most Companies Not Very Good At Doing This

Intriguing idea: the disposable business model. But how many companies pull off such an approach?

From my experience in the software industry, not many. Particularly bad at changing direction are mid-sized software vendors that are publicly traded. While being a smaller company would suggest agility for change, often these companies are ham-strung by boards of directors who seem to want growth without risk. There is no growth without risk for most companies. One piece of advice to mid-sized software vendors is to never go public and thus retain a healthy ability to reinvent the company without the inertia of boards of directors and Wall Street expectations. Another piece of advice: learn to embrace risk: that is, the good kind that can lead to growth and new success.

But no matter the size of the company, many software vendors usually wait too long before assessing the health of the current business model and even then, are slow to articulate change, even slower to act effectively. As a result, core markets increasingly stagnate, management still tries to work with the old way of doing things, and fails to work genuinely on a new business model, or as Williams advises, to identify and then deny the business clichés that are dragging down the company.

In 2008 Mark W. Johnson, Clayton M. Christensen, and Henning Kagermann published the article “Reinventing Your Business Model” in the Harvard Business Review, an article that went on to receive second-place honors for the 2008 McKinsey Award. The article culminates research into the difficulties many companies have with pulling off success through business model innovation. The authors contend that these companies have such poor understanding of the current business model (really disturbing! but explains a lot…) that they can’t relate the current model to new opportunities, nor can they be confident about ejecting the current model for something new.

(Clay Christensen) also underscores the fatal flaw that managers make when trying to reinvent their business in the face of a disruptive competitor. Their solution is often to leverage what the company already has in place at marginal cost rather build an entirely new business model with heavy investment.

If you are trying to create a new business model because the world is changing, then you don’t want to leverage what is already in place. An entrant doesn’t have anything to leverage, so just creates what needs to be created.

 

When It’s Time For Reinvention

A 2005 survey by the Economist Intelligence Unit reported that over 50% of executives believe business model innovation will become even more important for success than product or service innovation. A 2008 IBM survey of corporate CEOs echoed these results. Nearly all of the CEOs polled reported the need to adapt their business models; more than two-thirds said that extensive changes were required. And in these tough economic times, some CEOs are already looking to business model innovation to address permanent shifts in their market landscapes.

 

Insanity: doing the same thing over and over and expecting different results 

-- Albert Einstein

  

Of course, there’s no point to changing the business model if the company isn’t innovating its software offerings, which must come about by “disrupting business as usual” internal to the company. Not all product innovation demands a reinvention of the business model. Perhaps the salient question is: how does this new innovation impact the proposition articulated for customer value? Companies that find success with business model reinvention also possess clear understanding of their customers and the value to those customers that comes from innovations.

Identify When A New Model May Be Needed:

An opportunity to...           

• Address needs of large groups who find existing solutions too expensive or complicated
• Capitalize on new technology, or leverage existing technologies in new markets
• Bring a job-to-be-done focus where it doesn’t exist

 A need to . . .

• Fend off low-end disruptors.
• Respond to shifts in competition

 

To determine whether a firm should seek to reinvent its business model, Johnson, Christensen and Kagermann advise these steps:

• Articulate what makes your existing model successful. For example, what customer problem does it solve? How does it make money for your firm?
• Watch for signals that your model needs changing, such as tough new competitors on the horizon.
• Decide whether reinventing your model is worth the effort. The answer is yes only if the new model changes the industry or market. 

So the new proposition for staying competitive may be that many companies will need to adopt the strategy of continuous business model reinvention. But to do this, tremendous internal change will have to happen, particularly around the management of the company. Reinvention, new directions, continuous competitiveness -- all are only possible in companies that embrace change and innovation in the corporate cultural DNA.

 

             
                              Source: IBM CEO study – Capitalizing on Complexity

 

Comprehensive Market Intelligence is Key to Business Model Disruption

A lot of what can make a software company more competitive – and can contribute to innovation of business models, markets and products – comes from well-executed Market Intelligence activities and processes. Excellent Market Intelligence is essential if business model reinvention will be an on-going initiative. Understanding customers, markets, channels and competitors is based on better information to create advantage in new and unique ways:

• New opportunities – identify new trends that will matter to target markets and customers; how to get there before the competition (whenever possible)
• Early warning of industry, market and/or competitor changes – take advantage of opportunities and leverage/deal with threats and risk, and always look over your shoulder…
• Enhanced customer interaction – understand customer POV, goals, needs, strategic direction
• Stronger target market selection & positioning – research, validate go-to-market and positioning; locate under-served markets for target customers and solution space; guide how to articulate positioning well for customers, analysts, industry
• Strategic view of competitive landscape – figure out true differentiation, figure out where competitors are not operating; understand the issues that matter to customers and the solutions they seek from competitors

 

 

Reinvention: Brand Equity / Brand Perception

I want to open up the question of how business model reinvention impacts Brand, both in terms of brand equity (value and general recognition built from the former business model) and brand perception (how current and potential customers – plus media, competitors, analysts, etc. – view the company). In the not-so-distant past, it had been considered near suicide to make business model changes that could negatively impact Brand. But in the digital age, when information is quickly disseminated through endless media, most people are easily educated about changes in a company. The Internet itself is all about constant change, and many have grown up in that environment.

I’m not going to explore the Brand aspect in this article but it is an issue that must be considered when reinventing business models and enacting innovation that impacts customer perception and receptivity to the company’s offerings.

  

Smaller Companies With Disruptive Genes – Better At Business Model Reinvention?

>> JackBe – Customer-Driven Disruption

JackBe started off as an Ajax tools vendor in 2001. After a while the company began targeting enterprises with a mashup platform that connects to all sorts of data sources. Responding to what JackBe customers wanted, the next development was to provide capabilities for ad hoc data integration mashups by end users.

Recently JackBe has been calling itself ‘the Real-Time Intelligence Company’, specializing in situational awareness, and is promoting the idea that the company may have a new way to provide business intelligence for enterprise end users. Real-Time intelligence for JackBe first of all means self-service BI, extrapolating its mashup services for end users. Real-Time also means fast, easy access to existing data sources, without concern about the freshness of the data. Essentially, the JackBe approach supports instant decision-making in certain scenarios.

A significant challenge entails the validation of data sources and value of the resulting mash-ups: do the end users understand what they are doing and are they intelligently combining the appropriate data? Is the intelligence that is pulled together relevant and accurate, and how do end users know or test the intelligence to provide validation?

By stepping into the larger arena of BI, JackBe now has invited in scrutiny from a well-established solution space. However, traditional BI is not without its problems and has suffered low adoption and success rates over time. It may be that JackBe is pioneering a new approach that could make a significant change to how BI is practiced or even what constitutes “business intelligence”.

JackBe has found itself moving into a new business model, seemingly a case where business model reinvention continues to be customer-driven, and where a company listens well to its customers and acts on their needs and wishes, to achieve competitive positioning and success. But with the new business model comes new challenges to ensure the validity and accuracy of its product directions.

  

>> NewsGator – One Business Model Dies Out, Another Adopted to Thrive

Starting in 2003, Newsgator focused on developing RSS usage for information and content consumption.  A business model shift occurred when NewsGator changed from a consumer focus to targeting enterprises. Even though NewsGator still provides RSS, access is now free.

In 2007, NewsGator reinvented its business model by launching Social Sites, community / collaboration software that also provides tight integration with Microsoft SharePoint. NewsGator was already a SharePoint partner for its RSS capabilities, so its business model shift pivoted on a strategic, and rather significant, partnership already in place. NewsGator acquired Tomoye community software in 2010, mainly to enter new markets. Tomoye also had the SharePoint connection.

The move to a communities / collaboration platform that extends SharePoint has proven to be successful to date. The new business model includes a deep commitment to Microsoft and SharePoint – and active cultivation of an ecosystem of Microsoft partners around “making SharePoint social”. Social Sites is built directly on the SharePoint platform, is SharePoint cloud certified, supports multiple versions of SharePoint, including mobile and Office 365.

NewsGator has selected a niche for its social solutions in that it is dedicated to complementing the SharePoint platform and to making the experience of using Social Sites with SharePoint a seamless and smooth experience for end users. With this business model, NewsGator success is highly dependent on continued SharePoint success. The up side is that Microsoft makes available an extensive ecosystem that can greatly benefit NewsGator.

One aspect of business model reinvention for NewsGator tracks back to the impact of reinvention on Brand. Does the company name still make sense, shifting from RSS/aggregation services to social media platform? Or does the brand recognition of NewsGator’s name trump any confusion about what the company now does? Frankly, considering that a good many software company names are obscure, this really shouldn’t be an obstacle for NewsGator, particularly with such a targeted solution in conjunction with SharePoint.

  

>> Stone Bond – From Services to Software Vendor

There are many cases where professional services providers for IT solutions will either productize services work into a software offering or purposefully create new software solutions that eventually evolve into a packaged software business for the services company. A key change in business model comes when the company must decide if it is to be a dedicated software vendor or a services company – or even, perhaps, the company decides to split into two organizations.

Stone Bond’s consulting services began in 1993, providing IT solutions for the worldwide oil and gas industry. Among the services was data modeling projects, working with oil company engineers as end users. Many in the oil and gas industry have long understood that their data is a very valuable asset.

In 2002 Stone Bond Technologies launched a software solution called Enterprise Enabler for data and business integration projects. Enterprise Enabler presents as a single environment for EAI and ETL capabilities and is somewhat geared towards end users / business users through out-of-the-box “codeless” data integration capabilities. Stone Bond has developed several technologies such as AppComs (for connectivity) to innovate how integration projects are created and executed. BPM and workflow based on SOA utilize end-to-end shared metadata.

While Stone Bond still targets the oil and gas industry, and obviously has a great deal of expertise for that industry, the company has already taken Enterprise Enabler into other markets, such as financial services and government. The solution also straddles target customers by offering a solution that can appeal to business users and/or IT teams. Enterprise Enabler may be blazing a trail for bringing together IT and business to better execute data integration projects as collaborative partners.

The company is now working on showcasing Enterprise Enabler as a software product independent of the original consulting business, with work going into raising brand awareness. Enterprise Enabler already has a solid customer base, but also seems like a “best-kept secret” in the data integration vendor space. In some ways, Stone Bond has an interesting clean slate when it comes to marketing to and educating the world on what this solution has to offer.

 

Related Links

Market Intelligence – Making Better Business Decisions at the Core of the Company

Software companies still fail to tap into top benefits from market and competitive intelligence programs

Provocation-based Market Intelligence in a Market-Driven world

Shallow Thinking Ensures Bad Business Decisions

B2B WEM / WCM Software Vendors Targeting Mid-Market customers: stay where you are!  

 

About the author: Julie Hunt is an accomplished software industry analyst, providing strategic market and competitive insights. Her 20+ years as a software professional range from the very technical side to customer-centric work in solutions consulting, sales and marketing.  Julie shares her takes on the software industry via her blog Highly Competitive and on Twitter: @juliebhunt   For more information: Julie Hunt Consulting – Strategic Product & Market Intelligence Services

 

Disclaimer: Julie Hunt is not affiliated with any of the vendors in this article.

 

Content Marketing Strategy for B2B Software Vendors: Starring the ‘New’ White Paper

 

For the past several years, multiple studies by different research firms have been conducted to evaluate the most sought-out and influential content for B2B technology customers during decision-making buying cycles, and every time, in every study, the #1 preferred content is the White Paper.

The white paper is the #1 most influential piece of collateral that technology purchasers consult when making or influencing a buying decision for their company, according to a recent survey by Eccolo Media

However, many B2B software vendors still are missing the boat with their use of white papers and have not employed them in ways to engage potential buyers, let alone convert them to customers.

  

In The Beginning…

Technology white papers find their origins in government briefs that were called white books, alluding to the plain white binding that was used. With the transformation to the technology white paper, experts, lead architects, systems designers used these documents to provide authoritative discussions of key ideas or technologies to show thought leadership and future direction. The classic white paper was very technical and dissertation-like, rich with in-depth details and research results.

Then something happened to white papers when many software companies began to generate them as “product collateral”. White papers were hijacked by many product marketing and marketing groups to directly promote products. Content became thinly veiled product brochures extolling the virtues of the software offerings, highlighting information favorable to the vendor. White papers became just another item in the checklist of collateral to generate for a product launch. Little strategic thinking or advance planning went into creating white papers, including the recruitment of a top tech professional to write the white paper. Well, guess what: software solution buyers do not like that kind of white paper.

 When asked what most disappointed in a white paper, poor writing ranked number one.

 One surprise in the findings – the respondents said they're more disappointed when a white paper doesn't contain enough technical information rather than when a paper contains too much.

 

 What Potential Buyers Want In Effective White Papers

Quality Quality Quality

Customers continue to call out high quality writing with accurate and useful content as top values for the white papers that they want to read and use. They want plenty of details (tech / business), which means content has to be: tight, clear, compelling, authentic.

The survey also found that the quality of report writing gets noticed. Some 86% of respondents felt that high-quality writing was at least moderately influential and 51% ranked good writing as either very or extremely influential. By contrast, poor quality writing was the most frequent reason respondents gave for decreasing the influence of a white paper.

 

Less Time to Consume Content

A lot of great content is constantly published on the web, due largely to constant brisk evolution of business needs and corresponding software solutions. Customers would like to consume a large variety of content, so they prefer shorter lengths for white papers. Shorter white papers also allow vendors to generate a constant flow of new content that also keeps pace with business and tech changes. According to most of the studies cited in this article, the ideal length of a white paper is 4-8 pages. (Tech Marketing Best Practices Research Series on white papers states that 86% of tech buyers want white papers under 10 pages.)

 

Buyers are proactive in the use of white papers:

How to Maximize the Use of White Papers in Your B2B Marketing and Sales Process, released by InformationWeek in February 2009. Its survey of 542 professional buyers found that 93% of IT buyers pass along up to half of the white papers they read/download, and that 54% of those surveyed contacted a vendor for more information after reading a white paper.

 

No Registration Please

When marketing groups co-opted the white paper another marketing staple was added: requiring buyer registration to be able to download the white paper. There is a strong buyer sentiment that vendor websites should not require any information from the buyer for any content downloads.  After all, the sales engagement is buyer-driven, with the buyer deciding when and if next steps will be taken.

A recent survey done by Spiceworks (SMB IT management resource site) addressed the issue of having to register for white papers:

We also found a lot of people – more than 75% – DON'T sign up for papers requiring registration, which means the vendor is missing the opportunity to share and disseminate their knowledge.

         How many (vendors) stopped requiring registration as the result of your survey?

A handful so far. The results are pretty staggering. When you remove the "registration wall," downloads go way up. One white paper that was offered without registration was downloaded 500 times in three days!

  

White Papers and Content Marketing Strategies

Potential buyers visit B2B corporate websites with the intent of finding all kinds of information that will help with purchase decisions. Buyers also look for vendor information on other web venues. It is critical for any vendors who see web presence as a key to success to build a strategy for content marketing. A content marketing strategy for B2B software vendors should focus on providing relevant, compelling, and frequently updated information for target markets and customers/buyers. A high quality white paper is a significant business asset for content marketing: quality content holds its value for reusability, engagement, impact, and vendor credibility.

Adam Needles: Content marketing is the architecture behind information exchanged with the buyer before we can get them to ’sales ready’; it is the rationalization of what content that our prospective buyers need at various stages of the buying cycle and via what media and channels; and it is integral to the nurturing process.  Content thus has moved from tactical to strategic.

 

Many B2B software vendors could benefit greatly from building a content marketing strategy around white papers. Don’t just produce single white papers in a reactive fashion, as a product launch checklist item done in a hurry. Plan, create and publish excellent white papers well in advance of any product launches.  B2B software vendors should be publishing white papers with high frequency (since customers want shorter white papers): set the stage for what your company does now and will do in future. Show authentic thought leadership, clear understanding of various customer needs and real problem-solving.

Publishing sets of “companion” white papers is a good idea for vendors targeting buyers with different perspectives such as business and tech buyers, and biz-tech composites. Some white papers can be created to bridge the gap between business and tech, to encourage collaborative definition of needs and problem-solving. Series of white papers that break down a complex topic can be an interesting approach as well. These approaches will show vendor commitment to helping customers understand current technology trends as well as provide guidance for solving problems or for becoming more competitive.

Beyond publishing great white papers is the opportunity for vendors to engage customers in conversations through social media, wherever customers participate. There already is a social aspect to downloaded white papers – customers have a high rate of sharing white papers. Tap into social media for interactive conversations with potential buyers and industry writers. On download pages include links to communities and forums to encourage discussion. Schedule Tweetjams for topics covered in white papers. Comment on blogs that address the topics of vendor white papers, not to directly promote the white paper, but to add to the brainstorm and show command of the topic.

 

Value of white papers for B2B software vendors:

 
 

   

The Right Industry Professional to Create White Papers for B2B Software Vendors

Keeping in mind that customers have made clear that they want high quality content with extensive tech details, it would make sense to work with a software industry professional with strong tech experience, business smarts, and who can articulate complex ideas clearly and authentically. This would be a professional who has worked with customers, understands both business and tech, has the ability to hold the interest of these readers. And of course, this professional has to be a really good writer.

White papers will benefit from a professional who has decent smarts for several software solution categories and who has good hands-on experience on the tech side of software. The business-technology professional should contribute rich insight, produce creative content and original thinking, see unexpected connections and future trends. Direct customer experience enhances an understanding of how tech will help customer competitiveness, and will enable writing from the customer POV.

Another very useful attribute of the right professional would be one who is inter-connected to individuals throughout the software industry: analysts, practitioners, consultants, writers, vendors. A professional who is in constant conversations with other industry SMEs will be up-to-date on key topics and trends, and will have resources at hand for research and confirmation. Quality white papers will result if the professional regularly writes software industry-related articles and blog posts, participates in new product briefings from various vendors and start-ups, and continually monitors several software solution spaces. A business-technology professional who is well-connected in social media can also provide guidance to vendors for content marketing strategies that target white papers and social media.

 

The ‘New’ White Paper:

• Reflecting studies cited: high quality and accurate content, plenty of deep details (tech / business), 8 pages or less which engenders content that is tight, engaging, well-written, inspiring
• Often written from the customer POV, using customer language
• Covers trends that matter: new solution segments – transitions of solutions
• Real takeaways that benefit customers whether they buy the vendor solution or not - vendor is associated with insight to solving problem, doing things in new way that is useful
• Inform, educate at sophisticated level to provide real depth
• Create companion white papers when different customer roles come into play for the topic (business, tech, hybrid/composite)
• Passion in the treatment: blogging has shown that writing about software solutions is more engaging if the writer inserts personality into the work – apply this to white papers when appropriate
• Provoke thought about the solution space: new thinking for addressing needs; provoke desire to find out more;  provoke a conversation that will lead back to the vendor
• Look into employing variety of buyer scenarios to connect customers to relevance of topic
• Infographics, tech details, guidelines, suggested reading, links to other resources (not necessarily on vendor site) – all add to value in buyer eyes
• Format for readability, flow, quick-scanning, engagement
• Publish on the distributed web – not just on corporate site but share on sites frequented by buyers
• Stir the pot: encourage social media conversations through blogs, Twitter, forums, communities, Facebook; also actively contribute comments on relevant blogs
• Not self-serving brochure-ware solely touting vendor offering – but can address issues that matter to buyers that generally could be solved with vendor’s offering

 

Related Links

SMB / Mid-Market B2B Software vendors - Findability + web presence + social: attracting the “customer as buyer”

I have a confession to make: I am a Hybrid

Goodbye Corporate Website – Hello Web Presence Management Framework?

 

  

About the author: Julie Hunt is an accomplished software industry analyst, providing strategic market and competitive insights. Her 20+ years as a software professional range from the very technical side to customer-centric work in solutions consulting, sales and marketing.  Julie shares her takes on the software industry via her blog Highly Competitive and on Twitter: @juliebhunt   For more information: Julie Hunt Consulting – Strategic Product & Market Intelligence Services

 

Time Travel Required: Finding WEM in the 2010 Gartner Magic Quadrant for Web Content Management

 

A few days ago while reading through various articles about the future of websites and web presence, I came across a post by Thomas Baekdal that started off with a look back to the beginnings of web design:

 Back in 1998 designing for the internet was all about 3 things:

Design for the desktop, where the vast majority was using 800x600, with their browser maximized.

Design a website, a place where people could come to you. With emphasize on getting traffic and have them stick around as long as possible.

Optimize for the many search engines, because that was the primary way people would get to you.

But if we fast-forward to today, none of these really matters anymore. You still need them, but they are no longer the best things to do.

  

The reference to 1998 immediately brought to mind the recent Gartner Magic Quadrant for Web Content Management: while the MQ does cover concepts newer than Baekdal’s 1998 list, the basic approach for this MQ is very 1998: it’s déjà vu all over again…

Then I recalled this passage in Jon Marks' post on the 2010 MQ:

Most of these little yellow dots haven’t drifted very far in a year – the report is pretty similar despite the M&A activity that has kept us bloggers busy. So pretty much a repeat of last year.

If I were a police officer, I would be repeating:  Move along, nothing to see here. No offense to most of the vendors in the benchmark, but this MQ does nothing to excite us about the future of websites / WEM / web presence nor does it do much to stimulate buyer interests for finding the right-fit solutions for business needs.  

  

Redux: Moving Beyond WCM - Web Experience Management Software Solutions and Markets

 So I decided to take a look at an article I wrote almost a year ago about understanding WEM (web experience management) markets and solutions: the article includes a reference to the 2009 Gartner MQ for WCM. I wanted to see how many of my reactions to the 2009 MQ would now be different >> answer: none. Which sadly means that not much has changed with this new 2010 Gartner benchmark for providing value to vendors and buyers: 

When it comes to how to select the best-fit Web Content Management (WCM) software, a great deal of confusion continues to haunt vendors and customers alike.  Industry analysts have done little to make this any easier by perpetuating these mistakes:

• Frequently lumping together disparate offerings that target clearly separate customer segments and customer needs
• Failing to segment WCM offerings into solution categories, such as:  Web Experience Management (WEM) for Enterprise, basic web publishing for internal business processes/intranet, mid-market solutions for e-commerce, and so on
• Persisting with the pointless notion that WCM is a functional subset of Enterprise Content Management (ECM), especially in light of the speciousness of the ECM platform; such a notion is even more off-target when considering WEM solutions
• While understanding that WEM solutions are directly tied to interactive/digital marketing initiatives, analyst reports and benchmarks fail to use this understanding as an essential tenet of such reports

  

Looking for WEM?

Web Experience Management has come together as a segment of WCM software solutions and reflects current directions for websites and web presence for certain companies and organizations:

It has been mainly customers who have helped to propel the WCM industry into providing the sorts of capabilities that are really needed for external-facing websites that are central to strategic business objectives.  So a significant segment of the overall WCM market has evolved into Web Experience Management (WEM), for which a much larger solution ecosystem has come together.  Most Web Experience Management platforms have little to do with basic content management or basic web publishing (à la WordPress and TypePad), and even less to do with the so-called ECM (enterprise content management) platform. 

A more complete WEM solution description includes:

• Understanding of solutions for B2B, B2C web/marketing initiatives
• Sophisticated digital / interactive marketing strategies
• External-facing web presence / multi-channel content delivery
• Website essential to corporate business strategy
• Ecosystem of ancillary tools to complete end-to-end solution for customer objectives
• Savvy use of social media, well-integrated into website and marketing plans
• Alignment with interactive/digital agencies

So a Web Experience Management solution is really a composite of several “markets”: 

• WCM solution suite, with usability both for business users and IT personnel (includes behind-the-scenes “content management”, workflow, design tools, and so on)
• Enterprise-quality portal / presentation management
• Recommendations-like technology for social search and personalization
• Web analytics / testing / content monetizing tools
• Rich media and video content management (monetizing components as appropriate)
• Social collaboration / social marketing capabilities
• Extensive integration / interoperability capabilities at several levels of the enterprise infrastructure

 

For buyers in search of WEM software solution vendors, it’s going to take some work to find them in the 2010 MQ. While the 2010 MQ dances around a number of the above capabilities, it never directly addresses WEM solutions, preferring to stick to more of a “classic” (1998?) description of WCM:

Gartner defines WCM as the process of controlling the content to be consumed over one or more online channels through the use of commercial, open-source or hosted management tools based on a core repository. We exclude products such as portals and e-commerce engines even though these technologies have overlapping functions in areas such as personalization, content management and content delivery.

 

 Magic Quadrant for Web Content Management 2010

 
Source: Gartner (August 2010)    subscription or purchase 

 Also available as pdf downloads from CoreMedia and Sitecore, as well as web “display” document on Oracle website

 

 

The Inside-Out Corporation

This particular MQ report for web content management seems to epitomize the work of a corporation more interested in its own goals, and one that is not operating from the customer POV, even though a lot of its revenue is customer-driven. And this particular MQ seems comprised of artificial parameters that only benefit a Gartner agenda. Drawing on my 1998 flashback, this benchmark also seems to be advocating “old school” decision-making processes for tech purchase decisions, focusing on IT rather than business/marketing decision-makers, and on recession scare tactics by primarily advocating big vendors to make the “safe” decision.

In a recession economy, for a company to effect growth, risks have to be taken, and business should be conducted in new ways with new technology paradigms. Companies must make tech purchases based on business goals and needs that contribute to success and competitive edge. Corporate websites and web presence are critical to the success of many businesses: to connect to potential customers wherever they are on the web; to engage buyers - whether B2C or B2B. How a company effectively uses the internet is constantly changing, so corporations need forward-looking solutions – unfortunately we aren’t finding guidance for such solutions in this Gartner MQ.

Evaluations of WEM / WCM solutions are somewhat unique in that they must consider two levels of customers: one is comprised of the buyers of the technology to build websites and manage web presence, and the other is comprised of the target customers that the original tech buyers want to attract/engage with their websites and web presence. Since WEM / WCM solutions impact two levels of buyers, we must look at the technology as a means to an end – it is the “end” that really matters and must be foremost in the minds of solution buyers. Unfortunately this Gartner MQ is not very focused on either the direct buyer of the technology or the customers that the WEM solution buyer hopes to attract.

  

Vendors Offerings Are Part of the Problem

WEM / WCM vendors also own responsibility for the failure of analyst benchmarks to provide clear guidance for buyers. Most vendors adhere to the vague domains of “WCM”, or worse, “CMS”, hedging their bets with offerings that are too horizontal to know if they truly align to the needs of buyers in search of specific WEM capabilities.  WEM is one of few truly segmented solutions in the larger mass of WCM. It’s time for vendors to shake off non-differentiated, broad offerings, to declare real solution segments and target markets (by working with specific industry scenarios and revenue segments). By doing so, vendor solutions will only get better at meeting the needs of specific markets and customers.

I’m frustrated by the continuation of terms like WCM / ECM / CMS – these vague terms just blur a “solution space” that is populated with scores of products from very basic to very complex. Lately there has been a superficial debate that WEM is yet another meaningless vendor buzzword. To the contrary, overly generalized terms like WCM and CMS are the buzzwords that have no real meaning anymore because they include everything and define nothing. WEM is an actual solution with clear purpose and defined capabilities. Whether or not a particular vendor provides an authentic WEM solution is another issue – but to assume none are providing WEM is ridiculous.

 

Back to the Future

Web presence and the various purposes of websites have changed dramatically and will continue to do so. In this MQ, Gartner seems to have overlooked the importance of distributed web presence and new approaches to marketing on the web. New solutions are evolving that are not necessarily based in “classic” WCM.

But what may be the most important factor for a lot of companies is a strong emphasis on the customer-focused web presence for the company. And this may mean that company web presence will show up on other websites, instead of on the corporate website. Additionally a WCM/WEM software platform may only be one of the components of a new management framework for all web presence (management of web content still matters but may not be tied to a specific website anymore).

Content is extremely important to a lot of web marketing plans and strategies, and content is the meat of most social sites, whether it is a conversation thread, a video, a blog post, and so on. So look for WEM solutions themselves to continue to evolve as the means of managing and delivering any kind of content for sites anywhere on the web, through any channel.

Web marketing and customer relationship strategies are changing (and improving) – companies need new solutions and practices to manage the new world. More companies have come to understand that first they must build the web marketing / presence strategy that will accomplish their goals. Then they have to figure out how to achieve the goals of the marketing strategy, which will involve preferred practices and processes, as well as technology.  With web presence evolution, marketing strategies should include orchestration of web presence via other sites, and how to integrate with conversations and content from those external sites.

 

To find significant forward-looking thinking regarding the future of web presence and websites, it may be best to look at the many talented writers and practitioners for website design and WEM solutions technology who understand the evolution taking place right now.  Many writers and practitioners for marketing technology, digital marketing and social media also contribute valuable insight for the future of web presence. Here are a few suggestions to get started:

Web Content, Website design:

A List Apart

Ian Truscott

Paul Boag

Stéphane Croisier

Aral Balkan

Aarron Walter

 

CMS Wire has been featuring many talented writers and recently added a WEM focus (in CMS Wire WEM is “web engagement management” but the capabilities and intent are the same)

 

Interactive Marketing – Social Media:

Jeremiah Owyang and Altimeter Group

Hubspot

Chris Brogan 

David Armano and Edelman Digital       

 

  

Related Articles:

Moving beyond WCM - Web Experience Management software solutions and markets

Goodbye Corporate Website – Hello Web Presence Management Framework?

The Effective Intranet – Engaging the Employee as Customer

B2B WEM / WCM Software Vendors Targeting Mid-Market customers: stay where you are!  

SMB / Mid-Market B2B Software vendors - Findability + web presence + social: attracting the “customer as buyer”

About the author: Julie Hunt is an accomplished software industry analyst, providing strategic market and competitive insights. Her 20+ years as a software professional range from the very technical side to customer-centric work in solutions consulting, sales and marketing.  Julie shares her takes on the software industry via her blog Highly Competitive and on Twitter: @juliebhunt   For more information: Julie Hunt Consulting – Market & Competitive Intelligence Services

Disclaimer: Julie Hunt occasionally contributes articles to CMS Wire.

  

B2B WEM/WCM Software Vendors Targeting Mid-Market customers: stay where you are!

 

Here’s a piece of advice that very few B2B software vendors of any sort ever follow: 

Vendors: If you have been targeting Mid-Market customers – then stay where you are!

Ignore the siren song of the high-end Enterprise.

 

This advice is especially meaningful for B2B vendors for Web Content Management (WCM) and Web Engagement Management (WEM).

 

From my experience, many of the WCM / WEM / CMS vendors seem to do very little market intelligence research and analysis to understand what exactly they are selling and to which customers/markets. Most WCM/WEM/CMS vendors seem to be milling around with no clear indication of how each vendor aligns to clearly defined solution, customer and market segments within a go-to-market matrix.  The main focus of most of these vendors is on feature sets, and not on delivering authentic solutions for specific industry scenarios and business problems.  When any sort of Mid-Market B2B software vendor persists with very horizontal solutions, it is in danger of “disappearing”.

 

The mid to upper tiers of the Mid-Market provide a fertile market for B2B vendors who are themselves SMB or Mid-Market companies. For the mid to upper tiers of the Mid-Market, annual revenue runs from $250M to just under $1B. Vendors will do better if they segregate this range into two segments ($250M-$499M and $500M-$999M respectively).  Within those two segments, vendors should then select and learn a lot about specific customers and various solution scenarios that matter to those customers.

 

I’m specifically calling out Mid-Market customers for WEM (rather than “classic SMB”), due to the higher cost of implementing digital marketing solutions based on WEM platforms, which are likely out of reach for classic SMB companies. Once a vendor is committed to targeting Mid-Market companies, the next phase is to very specifically target segments of customers for mid-market offerings. 

 

 

Drifting into the High-End Enterprise Usually Ends Badly for Smaller Vendors

I’ve seen too many SMB / Mid-Market software vendors lured by potential big money and big deals in the high-end enterprise; after taking the plunge, very few of these vendors do well or even survive. It is near-to-impossible for smaller software vendors to compete against large vendors when providing high-end solutions. When trying to compete with the “big boys”, sales engagements frequently deteriorate into pricing wars that can destroy the well-being and income of the smaller vendor. After crossing over, the smaller vendor spends all the time on “me too” development for what the high-end vendors are already doing. The smaller vendor becomes snarled up in feature bloat that leads to the bastardization of its original offering. And worse, the smaller vendor ends up alienating its original target markets of mid-market companies and loses their business.

 

The high-end enterprise is a very tough place for smaller software vendors: there is a much smaller field of potential customers, fierce competition for those customers, plus larger software vendors already have established extensive relationships in these enterprises. Large enterprise customers are also harder to please, bring on longer sales cycles that include more chances to fail. Even when a smaller vendor wins an initial deal with a large enterprise company, it is usually displaced by a larger vendor very quickly.

 

Conversely, when targeting the Mid-Market, very few high-end vendors go very deep into this overall segment (and rarely into SMB). For the most part, large enterprise software vendors still don’t really know how to win Mid-Market business or provide the right-fit solutions. And it’s not just about price but about understanding how Mid-Market buys software solutions . On the other hand, a Mid-Market vendor already has decent affinity for some of the concerns of its potential Mid-Market customers, simply by reflecting on what matters to the vendor’s own success.

 

 

Vendor-performed Segmentation Is Essential to Build WEM/WCM Solutions for Mid-Market

Mid-Market (and SMB) customers are overwhelmed by the large number of CMS offerings of all kinds and are not well prepared to figure out which ones are appropriate for WEM or even just WCM. WEM vendors targeting the Mid-Market have to do a much better job of marketing and engaging specific segments.

 

Vendors must take action to properly position themselves in segmentation to differentiate their solutions form the mass of WCM/WEM offerings. They must put focused thought and time into identifying and understanding specific customer segments in the Mid-Market. Then vendors must undertake further understanding of what the vendor solutions need to provide the best support for target customers. Vendors need to be clear on what the solutions are not, to avoid “market sprawl”. It will make a huge difference if vendors put good time into a conscious and rigorous go-to-market strategy that is continually fine-tuned. 

 

Take time to properly segment target customers and markets for solutions:

· Know the target customer size – usually based on revenue ranges

· Identify who should use your solution and why – what problem(s) does it address (be very specific) – stay far away from the massive horizontal pack of “CMS” offerings

· Research and select one or two industries you’d like to work with; then select a segment in the industry that is a good bet for WCM/WEM solutions

· Analyze and build out specific industry scenario solutions that really work – again focus on real target customers and real customer problems/needs

· Keep in touch with the customers who are using the scenario solutions: fine-tune, improve, evolve into other focused solutions

· Assess the success of the above to make decisions about new go-to-market strategies that will add growth to the company

· Truly support customers throughout the lifecycle of the customer experience

 

 

No Illusions – Price is #1 Criterion for Selling to Mid-Market

I’m just calling this out plain and simple:  for most Mid-Market customers, price is the first requirement to be met by prospective vendors. Most Mid-Market companies have very clear parameters for what they are willing to spend on software. But the Mid-Market also wants value for price. When I say price, I mean the total cost of the end-to-end solution that will be up and running and working properly – so price includes money, time and people.

 

Many Mid-Market companies have small IT groups, so the following capabilities are essential: ease of implementation, low maintenance, ease of use for non-techies, good to great performance, delivery on vendor promises. When selling to Mid-Market companies, publish honest prices on your corporate website. Revealing pricing is a part of marketing to and engaging the customer-as-buyer when dealing with the mid-market. Remember: Mid-market companies have no time or patience for long sales cycles and complicated pricing schemes.

 

 

Strategy for Providing and Selling WEM to Mid-Market Companies: keep it simple

Vendors must take the time to research, analyze and understand what comprises a WEM solution for target mid-market companies. They have to take a look at the overall WEM capabilities of their solutions, and then reconcile which capabilities matter to their Mid-Market target segments. CMSWire has had a recent series on WEM solutions that is a good starting point to help vendors with mapping a solution to the needs and requirements of desired customers.

 

Where WEM is heading for the Mid-Market:

· Product/solution capabilities that meet Mid-Market requirements

· Capabilities that support marketing strategies of most Mid-Market companies

· Inclusion of social media capabilities and/or integrations with social media and Social CRM apps

· Monitoring trends related to desires/needs of target markets and specific industry scenarios (identifying what Mid-Market segments need, not what big enterprise companies need)

· But continue to monitor Enterprise trends to watch for trickle-down effects – this is where vendor smarts and market intelligence must come into play

 

 

Innovate With Real Solutions for Real Markets

Smaller vendors for Mid-Market WEM solutions are frequently more agile (carrying less legacy and expensive baggage) when it comes to pursuing innovation that will benefit target customers. These vendors are better positioned to move quickly to embrace future trends that define where solution markets are heading.

 

Vendor success comes from continuous innovation that makes sense for its Mid-Market customers:

· Engage in continuous market intelligence processes to monitor target markets / customers, and what they want for future success – many sources for this information

· Innovate specifically for Mid-Market target customers – perform excellent research/analysis to understand which are the best markets/customers/solution scenarios

· Conduct continuous conversations with current customers, and with companies wanted as new customers – embrace Social CRM practices for better conversations, listening

· Keep an eye on what the marketing teams of Mid-Market companies’ will need from WEM solutions

· Monitor enterprise-level trends for WEM to determine if the trends are meaningful for Mid-Market companies; also follow WEM trends for consumer marketing for new ideas – but choose wisely for real market strengths

· Don’t follow in the footsteps of big WEM solutions just to land where they are now

o    Jump ahead to new trends that make sense for target Mid-Market segments

o    Pick innovation that is right for target customers and for the vendor: real differentiation will result

 

 

Jeremiah Owyang on Future of the Corporate Website

Recently at the Gilbane Conference 2010 in San Francisco, and on his blog, Jeremiah Owyang has set out some compelling predictions for the evolution of company websites and the potential new world of distributed web presence. He sees social sites driving far more customer connections and brand awareness than the traditional corporate website of past years.  This is the sort of innovative thinking that vendors for Mid-Market WEM/WCM solutions should be monitoring. 

 

 

A couple of Jeremiah’s slides from Gilbane Conference 2010 San Francisco:

 

http://www.web-strategist.com/blog/2010/05/19/slides-roadmap-for-integration-of-social-into-your-corporate-website/

 

 

 

 

 

 

 

 

 

 

Related Posts:

Goodbye Corporate Website – Hello Web Presence Management Framework?

 

SMB / Mid-Market B2B Software vendors - Findability + web presence + social: attracting the “customer as buyer”

 

B2B Social CRM for Software Vendors and the Lifecycle of Customer Experience

 

Moving beyond WCM - Web Experience Management software solutions and markets

 

Selling Software Solutions to SMB Markets – Who and How To Target

 

 

 

 

About the author: Julie Hunt is an accomplished market intelligence analyst, providing strategic market and competitive insights for the software industry. Her 20+ years as a software professional range from the very technical side  to customer-centric work in solutions consulting, sales and marketing.  Julie shares her takes on the software industry via her blog Highly Competitive and on Twitter: @juliebhunt   For more information: Julie Hunt Consulting – Market & Competitive Intelligence Services

 

 

Disclosure:  From time to time, I contribute articles to CMSWire.

 

 

Goodbye Corporate Website – Hello Web Presence Management Framework?

Future of tools for managing web content and web presence anywhere

 

 

Recently a colleague was exploring options for improving the web marketing capabilities of the company that he works for. He started his efforts by looking at “traditional” Web Content Management (WCM) software, with an eye to Web Experience (Engagement) Management platforms. But since his company is itself a mid-market-sized company, he was very uncomfortable with the options – and not just because of cost and time to implement. As conversations with his company management evolved, my colleague realized that he was not satisfied with a WCM / WEM solution because it didn’t seem to be the right platform for their web marketing strategy and business goals.

 

These days, companies of all sizes have tired of the expense and complexity of many WCM / WEM solutions, and would dearly love agile alternatives. And, yes, there are lesser expensive options. But what may be the most important factor for a lot of companies, is a strong emphasis on the customer-focused web presence for the company. And this may mean that company web presence will show up on other websites, instead of on the corporate website -- which leads to the notion of whether or not the “corporate website” is becoming obsolete for many types of companies.

 

Web marketing and customer relationship strategies are changing (and improving) – companies need new solutions and practices to manage the new world. More companies have come to understand that first they must build the web marketing / presence strategy that will accomplish their goals. Then they have to figure out how to achieve the goals of the marketing strategy, which will involve preferred practices and processes, as well as technology.  With web presence evolution, marketing strategies should include orchestration of web presence via other sites, and how to integrate with conversations and content from those external sites.

 

 

B2C or B2B – Which Organization Needs A Corporate Website?

Whether or not a company should have a corporate website can depend on many factors. For both B2C and B2B companies, content still matters and has to be located somewhere. The B2B company has the greater need for a corporate website, but must now evolve the corporate website to a social / customer hub. B2C sales and marketing goals might be less about content per se and much more about customer conversations and brand awareness that take place anywhere on the web. Jeremiah Owyang points out that the corporate website is less and less the most likely place to connect with customers.

 

 

B2C – Time to Get Rid of the Monolithic Corporate Website?

Is the corporate website obsolete? Most corporate websites do not work well for customers. The sites are designed from the corporate POV, with too much useless content that is hard to find anyway. Frequently corporate websites become money pits, requiring too many resources over time compared to the benefits received.

 

Particularly for B2C businesses, new thinking is that the corporate website might be completely unnecessary for customer interactions and brand promotion.  Going where the customers are, i.e. social sites, seems to be an effective way to better connect. Monitoring web presence and participating in conversations on other sites help companies reach out to current and new customers in ways that matter to these customers and can bring effective results to companies.

 

Current thinking is that social sites are taking sales endeavors to a new place since customers can now participate in spreading the word to potential customers through forums, communities, ratings, reviews. On the flip side, corporations have the responsibility of finding and responding to concerns, complaints, feedback, and requests posted on social sites, hopefully to resolve problems, to engage and attract customers through answers, and to learn from customer POVs.

 

 

B2B Companies Still Benefit from Corporate Websites, With Social Improvements

One approach to introducing more web presence into corporate websites is to add improved social capabilities that interact well with customers and potential buyers. This approach appeals to companies that want a measure of control over customer “conversations” and also makes sense if the company is using social capabilities as part of a customer relationship and support strategy. Content still matters for B2B websites – B2B are customers still looking for a lot of different kinds of content that they want to easily find on the corporate website.  However, many potential B2B customers are also influenced by interactions and content on external social sites – the savvy B2B company had better understand the importance of such sites.  Integration with and monitoring of social sites are key.

 

Hubspot - inbound marketing and social media advisors::

Your website may very well be the most powerful tool in your marketing kit. Not only is it the place prospects and clients go to learn more about you and your services, but it has a huge impact on their ultimate purchase decision.

The Hubspot post goes on to discuss a survey conducted by RainToday.com that looked at buyers of professional services and the amount of influence that corporate websites exerted on the purchase decision:

According to the survey, 74% of buyers report the service provider's website holds at least "some influence" over their ultimate decision to buy services from the provider. This is 23 percentage points higher than in 2005 and represents a significant increase in the importance of websites.

 

B2B corporate websites need web management solutions not only for creating and maintaining more social and interactive experiences for customers visiting the site, but to monitor and participate in the conversations that take place on other sites. Other sorts of off-site social-related analytics need to take place, such as sentiment analysis. The results of monitoring and analytics must be used to fine-tune product and marketing strategies, and to help corporations better serve customers.

 

 

Jeremiah Owyang on the Future of Corporate Web Presence

Owyang throws out some compelling assertions: In the not-so-distant future, he states that there will be no “old school” corporate sites. There will only be sites assembled on the fly based on social data, a sort of dynamic personalization mashup of content and social engagement.

 

 Today, I’m pleased to see that the thinking –and technology, has emerged, where we’re finding a variety of companies that are integrating social technologies right into the corporate website, bringing the trusted discussions closer to the corporate site.

 

Although the highest state of nirvana (seamless integration) doesn’t yet exist, we should expect there to be very little difference between social technologies and corporate websites as content will assemble on the fly.  I predict URLs won’t matter, as content will be dynamically assembled around the buyer and their context in a variety of devices.  Sure, that’s far out thinking now, but that’s why we have several other stage gates that companies must first go through.

 

Owyang continues on the new social web presence:

1. Although it’s a new and experimental medium, brands should plan a roadmap.

2. The future of web experiences will be based around people – not products. 

3. Take inventory of all corporate web assets and identify where they are in the framework.

4. Next, identify the desired state, and then build a plan against it. Start small and slow, and be sure to have a strategy.

5. Don’t arbitrarily jump into the social marketing space without measurable KPIs. Be deliberate in your actions.

 

Owyang’s thinking is important especially for vendors of WCM / WEM software solutions since he may be pointing the way to future web presence solutions (a future that is not that distant). 

 

 

Should WCM / WEM Software be The Hub -- or one of the components?

Some vendors of “traditional” web content management solutions have been transitioning their offerings to WEM platforms where managing and enhancing the web experience or engagement of the customer is the central purpose. The current WEM platforms focus mainly on customer and social capabilities existing in the corporate website, and are in very early stages of supporting integrations with external social sites.

 

Those supporting the notion that WCM/WEM Platforms should manage web presence and continuation of corporate websites include:

Brice Dunwoodie of CMSWire is What is Web Engagement Management:

It's how you create and manage content, including primary web content, multi-device content, blogs, forums and wikis. Your WCM platform is also the hub of your social media integrations and increasingly the dashboard by which you view your brand's conversational world.

 

Further expansion on the WEM platform from Barb Mosher, CMSWire: The 5 Pillars of Web Engagement Management

1. Content Optimization: analytics, content and experience personalization, multi-variate testing, optimization and SEO.

2. Multi-channel Management:  delivering same message/experience to customers across devices and channels both online and offline – new mobile web

3. Conversational Engagement:  corporate website-based communities, UGC, commenting, trackbacks, micro-blogging, social media integration, analytics, social media monitoring and sentiment analysis.

4. Demand Generation:  customer engagement/experience through targeted marketing - increasing the number and quality of relationships, through need recognition, relevancy enhancements and engagement triggers.

5. Sales Automation: two-way CRM integration, social CRM; e-mail or other campaign integration with the content platform.

 

As described by CMSWire, WEM platforms would provide capabilities and monitoring of brand and customer conversations on corporate websites, as well as bi-directional communication extensions to external social sites.

 

On the other hand:

If the customer experience of a particular brand is taking place on external social sites, then there is now a distributed model for managing a brand’s web presence; the web experience/engagement for the customer is now remote from the corporate website.  So there is even more need for tools/solutions to monitor, listen, act, engage…for customer-focused purposes, as well as for corporate business goals (which should lean heavily towards the customer).

 

A WCM/WEM platform may not be the hub for the overall solution, but instead one of the components of a new management framework for all web presence (management of web content is still important but may not be tied to a specific website anymore).  But content is also integral to a lot of web marketing plans and strategies, and content is the meat of most social sites, whether it is a conversation thread, a video, a blog post, and so on. So look for WCM/WEM solutions themselves to continue to evolve as the means of managing and delivering any kind of content for sites anywhere on the web, through any channel.

  

 

Future Web Presence Management Solutions – What Could They Look Like?

A Web Presence Management Framework may be the best approach for monitoring and supporting a distributed web presence. With an emphasis on Management: the orchestration of all pertinent activities on social sites external to a corporate site. And the management of: marketing to / connecting with customers, monitoring and listening, responding, acting, analyzing, more acting. The Management Framework would be agile, timely, dynamic, flexible, open.

 

A starter list (high level) of potential capabilities and attributes for a Distributed Web Presence Management Framework:

· Sophisticated, agile management / orchestration capabilities

· Web presence “mashups”: dynamically creating personalized sites for each customer

· An evolved WCM/WEM component: delivery to external sites, advanced support of corporate site if still in play, handling of relevant content/conversations published on external sites

· Support / interoperability for content curation as well as content management

· Management of all types of “conversations”: Auditing - Listening - Capturing - Integrating

· Multiple kinds of analytics, including convergence with “traditional” data analytics

· Dashboards for different internal roles

· Agile, context-sensitive Search / recommendations-like technology to contextually filter content/search

· Integration is big (lots of API support)

· Orchestration and Integration with multiple kinds of “external solutions” that are in play for distributed web presence

· Usability for business as well as tech teams

· Workflow and automated processes for WCM, CRM, SCRM practices, other corporate systems

 

· Company roles will also evolve:  we’ll see new marketing technology roles, product marketing and product management roles for “caretakers” of company web presence on external social sites, among the possibilities

 

· Segmented customer advisory groups will also play much more interactive roles with management of distributed web presence

 

· Eventual alignment with semantic web, link management – for reach throughout the web. Here is a current view of opening up content to anywhere on the web:

Forget the fancy names of "semantic web" or "linked data." Associating structured data with your content assets lets you take advantage of Open Graph, Google RichSnippets, Yahoo Search Monkey, and a new generation of agents such as Siri. Disseminating your content with metadata through APIs enables developers to spread the seeds of your brand in a variety of mash-ups and apps. Sharing your data sets in collaborative venues such as Factual and Infochimps helps build relationships with the world of analytic power users, improve your data quality, and turn those dusty data silos into tools for advocating ideas and brands. (from Chief Marketing Technologist blog)

 

 

 

OK, WCM / WEM vendors of all sizes: should your current plans for your solution for corporate websites go forward unchanged, or should you start now to create a Management Framework for distributed web presence?

 

 

 

Related Posts:

SMB / Mid-Market B2B Software vendors - Findability + web presence + social: attracting the “customer as buyer”

 

B2B Social CRM for Software Vendors and the Lifecycle of Customer Experience

 

Moving beyond WCM - Web Experience Management software solutions and markets

 

 

 

About the author: Julie Hunt is an accomplished market intelligence analyst, providing strategic market and competitive insights for the software industry. Her 20+ years as a software professional range from the very technical side  to customer-centric work in solutions consulting, sales and marketing.  Julie shares her takes on the software industry via her blog Highly Competitive and on Twitter: @juliebhunt   For more information: Julie Hunt Consulting – Market & Competitive Intelligence Services

 

Disclosure: From time to time, I contribute articles to CMSWire.

 

Customer Buying Criteria: Applying customer and competitive intelligence to selling tools leads to real external benefits -- and strategic internal benefits

B2B Software vendors

 

Many software solutions will prevail if customer-centric, market-driven thinking permeates the company’s product development planning and execution, and go-to-market strategy.  Understanding customer buying criteria is essential in: solution markets crowded with many vendors, highly commoditized software markets, and/or markets for complex software solutions. Determining and using customer buying criteria will help teams in the company understand where each solution stands relative to the competitive landscape and the appeal of each solution as the right solution from the customer POV.

 

A tool configured as a Customer Buying Criteria (CBC) matrix can very helpful to sales teams to work effectively with customers-as-buyers. The CBC matrix can bring a lot of clarity to mapping a software solution to the wants and needs of a particular customer. This is a tool that relies not only on extensive customer and competitive intelligence, but on the cumulative wisdom and experience of multiple teams in the software company.

 

 

Cross-team Collaboration to Build the Best Sales Tools

Market and competitive intelligence for software companies is at its best when the results of analysis are used in applications that help and support many internal teams: sales, products teams, marketing, management. As a corollary, a lot of the best tools for sales teams require cross-team collaboration. This sort of collaborative effort is essential to create tools that are smart and thorough in every way possible. Contributing teams include:

· MI/CI for competitive landscape, market analysis, target customer analysis

· Product marketing / management for evaluations of software vendors own solution and understanding of customers, markets and competitors

· Sales, professional services, partners – feedback from customer engagements

· Reviews of the resulting tool by all for determining realistic values for ratings and relevancy of criteria and capabilities

 

Tools developed by cross-team efforts frequently reciprocate “paid back” value to collaboration participants by providing a new “benchmark” to use for strategic and tactical self-review and analysis for improvement. Most software companies are short on people and time, even when the economy is good.  As such, it is important to choose projects that yield both strategic and tactical benefits to many teams, and that have the depth to generate spin-off projects and tools.

 

 

Conceptual Overview of Customer Buying Criteria Sales Tool

The Customer Buying Criteria tool greatly enhances sales efforts by tapping into the understanding of what customers want.  The CBC tool dovetails well with consultative selling where the sales team (and the software company) becomes a “trusted advisor” helping the customer-as-buyer successfully solve business problems. With the CBC tool, sales teams have real talking points for the buying criteria that matter to customers, to be able to speak the same language. Instead of communicating with a customer by blathering on about product features/functions or “7 reasons to buy my product”, much more meaningful exchanges take place where the customer is driving the conversation based on what she/he wants to buy.

 

If a software vendor does not know what its customers want, the vendor will not be able to convince customers to buy its offerings. It’s not about “my product is better than competitor X” – it’s about “my product will give you what you need to be successful with your needs”. Most mid-market and enterprise software solution markets are more and more driven by expectations that are pre-defined by customers.

 

A clearly defined context for the software solution is essential for a customer buying criteria tool to be effective. The tool will comprise a single solution that the company is offering, that it does well and for which there is a strong market. Context also means that using the CBC tool well is highly dependent on fully understanding customer requirements for each individual sales opportunity (no one-size-fits-all).

Setting context is everything: 

· One single clearly defined solution per tool

· Identifies target market

· Why the customer should care

· Attributes that matter to the customer

· Spell out the product solution’s particular positioning in the larger solution market (ex.: web experience management for large global enterprise websites – external-facing sites – customer-engaging – within the high end WCM market)

 

How does a software vendor determine the customer buying criteria for a particular solution?  It’s all about what target customers want from the solution – in their words, from their POV. The key customer buying criteria (categories and capabilities) are developed based on industry expertise and customer engagements, and are not “traditional” feature comparisons. Sources for determining criteria include:

· Customer interviews and surveys

· Customer segmented market research

· Sales and partner feedback

· Industry writers and analysts

· Information from companies you would like to have as customers, potentially gained through partners (resellers, SIs, solution providers, etc.)

· Market and competitive intelligence analysis – particularly to validate future market directions and competitive landscape intentions

 

 

Practical Overview of Customer Buying Criteria Tool

The overall CBC tool comprises a superset of all relevant customer buying criteria in order of importance, based on what was determined through the research and analysis process.  Under each criterion are multiple solution capabilities that customers understand and need for meeting project requirement. These capabilities are not feature/function lists from the product POV, but higher level and expressed in customer terms.

 

Before the sales team uses the CBC tool for sales engagements, an excellent and thorough discovery with each customer must be conducted to understand the specific criteria that come into play (what matters, what doesn’t). If the sales team doesn’t understand what each customer-as-buyer needs, then the tool is of little use.

 

The CBC tool can never be left with customers. First of all, a lot of the software company’s competitive information exists in the tool.  Second, leaving this sort of tool does not adhere to consultative interaction and does not help the conversation with the customer. (More on these points: Software companies still fail to tap into top benefits from market and competitive intelligence programs)

 

 

Recommendations for building a CBC Tool

· Consider using Excel to take advantage of customizable viewing options

· Entries for key customer buying criteria

o    Several high level criteria categories - each with multiple capabilities

o    Criteria in order of customer priority

o    Criteria mapped to sales cycle phases

· Criteria aligned to primary & secondary target customer roles for discussing each buying criteria category

o    Many B2B customers-as-buyers are composites of multiple roles

o    Different phases of “sales cycle” will map to one or more roles, such as BU, IT

· For ease of viewing / using:

o    Collapsible / Expandable groups of rows customize view

o    Can hide unneeded competitor columns

o    URL links in cells, to navigate to supporting content in company’s internal archives

· Competitors: from left to right = most important to least important

· Can include more than one relevant current release of your company’s particular solution 

· Competitor versions should be most current – provide release #s

· Ratings are assigned based on an assessment of the support for each capability provided by each vendor (your software company and competitors)

o    Ratings will have a qualitative nature and could be:

§  Green – above average (better, best)

§  Yellow – average (adequate, so-so)

§  Red – below average (not good, missing)

· Data for deciding ratings for your solution come from all products teams, and participating sales and professional services

· Data for deciding each competitor rating comes primarily from third-party sources (links in cells) – preferably multiple third-party sources, and will reflect input from all other teams through review processes

 

There is definitely a qualitative aspect to the ratings in the CBC tool, but it is mitigated by the extensive research and analysis done for understanding and evaluating the competitive landscape. Further reviews by company teams and partners will bring the “wisdom of the crowd” (and the “wisdom of the gut”) to evaluating the overall accuracy of the ratings and of the resulting “big picture”. The company’s own ratings should follow an approach where the contributing teams are the harshest critics for how well the company’s solution delivers on capabilities for the customer buying criteria.

 

Fine-tuning on a continuous basis must happen to keep the tool fresh and responsive to customer and market changes, as well as new product/solution releases.  Maintenance of the tool will cover changes and corrections contributed by the company’s teams, feedback from customers and partners, and industry evolution. The tool is structured to enable ease of updating and publishing new versions quickly.

 

Setting up the Customer Buying Criteria tool as a superset of all relevant criteria makes it possible to generate subsets as smaller, focused versions. These permutations can be provided for niche/industry focus, particular customer subsets or solution scenarios, or views of particular competitors, whether for selling or for internal purposes.

 

 

Sample CBC Tool

Benefits of using Customer Buying Criteria Tools

 

Successful outcomes to engaging customers-as-buyers require all teams collaborating in many different ways – constructing a well-made CBC tool provides the collective expertise of multiple teams.  For sales teams, the tool is a source of many permutations of talking points. New hires for sales will find this tool especially helpful to ramp up more quickly.  The CBC tool aligns sales cycle strategy with the software offering, relative to individual customer requirements, needs, and desires. For each sales opportunity, the sales team can scan across the matrix of the company’s offering compared to competitors to get a quick sense of where strengths, weaknesses – and serious trouble – come into play in the context of each customer’s requirements. In a sense, the tool provides a huge and very useful Reality Check for every sales opportunity, even to the point of using the tool as part of the qualifying process:  is this opportunity really worth pursuing, is the deck stacked against us, what gaps will have to be filled to work well for the customer? 

 

Customer benefits from the CBC tool are indirect (since the tool is not shared with customer) but still important:

· Better basis for sales to talk with customer – conversation moves along more realistically while engaging customer with true customer needs and concerns, and in language of the customer

· Customer can decide earlier in sales cycle if solution really is a fit – from the start, the conversation has been from customer POV and relevant to customer needs, requirements and desires

· Better identify what criteria really matter for project, and which criteria are optional

· Customer can see that the software company thoroughly understands the solution space from the customer POV

 

For the products teams, including product marketing, the CBC tool can be a reality check on how well the company provides relevant customer-centric, market-driven solutions. Looking at capabilities / rankings of the company compared to competitors:

· Allows the teams to step outside the “day to day” and really look strategically at the offering and how it stacks up in the competitive landscape

· Evaluates how the company is / isn’t meeting customer expectations and requirements

· Provides close scrutiny of differentiation and whether the company is stuck in too much “me too” development

· Taps the tool as a metric for the software solution and for its competitiveness

· May lead to new thinking for creating new solutions,  better differentiation, more creative approach to solving customer problems, increased competitiveness, and better quality for the solution

 

Upper management now has a tool to help see and better understand the big picture, especially for complex software solutions selling into crowded markets.  Hopefully, the CBC tool will enable better dialogues between the executive and the products teams, working from common basis.

 

 

 

About the author: Julie Hunt is an accomplished market intelligence analyst, providing strategic market and competitive insights for the software industry. Her 20+ years as a software professional range from the very technical side  to customer-centric work in solutions consulting, sales and marketing.  Julie shares her takes on the software industry via her blog Highly Competitive and on Twitter: @juliebhunt   For more information: Julie Hunt Consulting – Market & Competitive Intelligence Services  

Levels of Social – and Integration – Cut Across Enterprises

When I started writing articles for my blog Highly Competitive, I had in the back of my mind the “classic” advice for professional blogging: pick one main area to cover and as such, show my SME-ness for that area. So I should have selected a particular software solution space and stuck to it.

 

Well that doesn’t really work for me and isn’t even realistic for anyone analyzing today’s software infrastructures in most companies. As such, I find myself covering multiple software topics, largely due to my diverse software tech background, and it all makes sense as we see more and more overt overlap and interconnection between the different applications of any-size enterprises, and between the activities and processes of how enterprises do business. As enterprises become more customer-focused (outside-in), what has become especially interesting is the evolution of change that eventually will produce Social businesses.

 

Starting with systems infrastructure, many enterprises have multiple points of integration and interoperability. It is this interrelatedness of systems that increases the business value to the enterprise. Integrations and interconnections are happening at multiple levels in businesses: their IT/application infrastructures, the applications themselves, how teams function in the enterprise interacting with systems and people, and how companies are evolving for doing business and engaging buyers. To become an effective Social Business, enterprises will have to nurture integrated internal systems and processes, as well as social strategies and practices for external and internal collaboration and communication.

 

 

 

 

 

 

Enterprises Can’t be Built on Silos – First, a Look at Internal Interoperability

It has become more and more clear that enterprises work better with overtly interconnected systems and business processes. Silos within enterprises both for systems and internal processes have caused a lot of problems. Enterprises, no matter the size, cannot have teams, or systems, operating in vacuums. Where too many silos persist, businesses are doomed, whether the silos are technology or human based.

 

Understanding how to reduce duplication in systems infrastructure, business processes, team activities, and strategy implementation does much to improve the health of the enterprise. Enterprises want to achieve efficiencies of operation and want to do more with fewer resources, so the elimination of duplications in systems and teams, and the increase of integration (systems) and collaboration (people) is essential.

 

Since we’re talking about the integrated enterprise, I see enterprise data integration as an illustrative “metaphor”. In most cases data integration endeavors to cut through almost everything in systems infrastructure and involves multiple teams, both IT and Business. Building really good DI processes requires the involvement and collaboration of many teams. Data integration solutions cannot be built in a vacuum to be effective; DI initiatives embody a metaphoric sense of interrelationships and interoperability: process, collaboration, disparate data feeds (information sources) coming together, business rules, business needs. People, business process and technology have worked together to achieve the right results. 

 

 

Social Capabilities and Strategies Appearing in Many Enterprise Software Solutions

Increasingly, enterprises are introducing and integrating social media for internal and external applications.  And now many “traditional” enterprise solutions are adding / integrating social capabilities, to enhance the usability and relevance of these solutions.

 

Business cases for social media include: internal implementations for enhanced collaboration and communication purposes for employees; external initiatives for better engagement and support of customers/buyers. Many social media guidelines rightly advise that introducing social practices and technology into an enterprise should come after a thorough understanding of what is to be accomplished, and then after an articulation of the strategy. Additionally, businesses have to figure out what cultural changes need to take place internally, for social to make a big difference. Business social process is something that people have to do authentically. Technology and tools do matter as a means of enacting and managing social business processes, but they are no substitute for strategic planning, best practices, real goals, and serious consideration for the human participants.

 

Beyond the social media technology that is being adopted by enterprises, many “traditional” enterprise applications are becoming more “social”. This is reasonable considering that software solutions are for use by people, whether employees, customers/buyers, or partners. Most software solutions are components of people-oriented processes. These “socializing” solutions include: BPM, BI, CRM, ERP, internal collaboration / intranet, and content management.

 

Recently Forrester’s Connie Moore - @cmooreforrester - commented on Twitter: “social computing has become the tipping point for businesses and vendors finally marrying collaboration and process” and then “Collaboration between business and business and business and IT is core to any successful #bpm effort.” Connie Moore has extended her coverage of BPM to include social capabilities that will transform BPM solutions.

 

For many software industry analysts and writers, there are no longer clear demarcations between software solution spaces.  The “classic” approach of separate software solution categories being covered by SME writers is giving way to analysis that acknowledges the interdependencies of different kinds of software solutions.  We are seeing more collaborative work across solutions, with social computing as a common thread of discussion.  Analyst firms like Altimeter Group and Forrester are working with more collaborative efforts from their staff analysts across formerly separate software solution spaces to reflect the realities of how enterprises operate.

 

 

And People Complete the Integrated Social Business

My tech background has a markedly strong emphasis on people since software companies are very people-intensive enterprises.  Many teams need to collaborate to accomplish company goals and customer needs, with the result that most teams are customer-oriented. If you have a career in software technology, it is essential to recognize the value of people, especially customers. Not surprisingly, many customers of software technology are driving the change to Social Business where the focus is more on people and less on tech.

 

It’s not just about why people buy or make technology decisions but about respecting people who are trying to accomplish business tasks and solve real problems, and who just want their software to work as advertised without a lot of pain to get there. Software technology ultimately is a product to be sold, so the focus must be on the purpose and real value the technology provides customers.  

 

On the software vendor side, people collaboration should be a top priority: collaborations to sell solutions, collaborations to contribute to customer/buyer success, collaboration with partners and customers for success. Businesses can be very successful if they encourage and engender internal cross-team collaborations focused on customer needs. The growing interest in Social CRM addresses how businesses develop customer relationships to contribute to customer success.

 

Social is partly about tapping into the connectedness that people are building with the web as a platform.  Social Business adoption by software vendors must be based on the fact that people and relationships are what really drive success and longevity. The lesson to enterprise management: Social media adoption has been driven by the people who want to use it to communicate and work efficiently, no matter the purpose.  Social media invaded enterprises because people really want to use it – because it is effective for what they are tasked to accomplish. 

 

 

“Social Business” practices have been around for years  

The essentials of Social Business have been around for years in many software enterprises – frequently as a “shadow” culture. A lot of employees in the software industry have intuitively understood and practiced aspects of the “social business”, recognizing the importance of the customer and of collaboration.  The process of selling software solutions to enterprises involves a lot of people working with many other people, for internal and external purposes, no matter the sales model.

 

Ironically employees, customers, partners have been open to adopting social capabilities as part of doing business; the executive level, however, is the laggard for authentic adoption of social collaboration culture and processes. Upper management often has impeded real efforts for social business and has also contributed to creating silos within the company and chasms between teams. Many software companies have been poorly structured for many years to be able to nurture “social business”. Usually not enough people and not enough budget have been allocated for fully supporting strong customer-centric processes and initiatives. 

 

It’s very important that executive and other management levels formalize strategies for Social Business and better empower the many employees who already intuitively know how to find and keep customers/buyers through social relationships and support for customer success.

 

Fully empowered collaboration with customers and partners will improve sales, product offerings, long-lasting relationships, and will lead to fewer problems. Enterprise teams will be better connected to customers, and to one another. And upper management may finally get real perspective on employee motivations as well as customer desires.

 

 

 

Profile of a Software Aficionado

Indeed, my software technology background contributes to my SME “schizophrenia”: Extensive stints as enterprise and small business developer, SE, solutions consultant, market and competitive intelligence analyst. Plus time served in multiple software spaces:

· developer and systems analyst for materials management systems in semiconductor manufacturing; also small business software solutions developer

· very deep dive in data integration solutions, for many years

· whirlwind couple of years providing strategic analysis for WCM/web experience management, social collaboration, presentation portal, web 2.0 apps, and transactional content management

· continuous auditing and analysis of SaaS, OSS, cloud computing, Agile -- impacts on software industry and on vendor business goals

 

 

 

  

Related articles:

 

Social collaboration in enterprise:The heart–and goal–of Community is “collaborating people”, not collaboration tools

 

B2B Social CRM for Software Vendors and the Lifecycle of Customer Experience

 

The incongruous worlds of “data integration” – Making data accessible for any-size companies

 

 

 

 

About the author: Julie Hunt is an accomplished market intelligence analyst, providing strategic market and competitive insights for the software industry. Her 20+ years as a software professional range from the very technical side  to customer-centric work in solutions consulting, sales and marketing.  Julie shares her takes on the software industry via her blog Highly Competitive and on Twitter: @juliebhunt   For more information: Julie Hunt Consulting – Market & Competitive Intelligence Services  

 

 

SMB / Mid-Market B2B Software vendors - Findability + web presence + social: attracting the “customer as buyer”

 

For anyone selling software solutions, a strong and well-crafted web presence is de rigueur for connecting with potential customers or with the “customer as Buyer”. More and more purchasing of various software solutions is becoming an online event, fueled by the growing success of SaaS, cloud, and open source options. SMB / Mid-Market buyers, who don’t have a lot of time for purchase cycles, want to do business with vendors who make it much easier to reach a decision.

 

 

According to Forrester’s Megan Burns, Web Sites That Don't Support Customers' Goals Waste Millions:

 

“Results show that the vast majority of people switch to more expensive channels…Others give up and go to a competitor, while still others abandon their goals entirely. …for an average retailer the result is millions of dollars in lost revenue and unnecessary costs. Firms should use the data and models in this report to understand their own exposure to these failures and make a strong case for fixing usability problems that drive consumers away from the site.”

    (Forrester 2010)

 

While the Forrester study focuses on online retail, the implications are highly relevant to software vendors targeting SMB and Mid-Market companies, since these B2B buyers primarily use the internet as the gateway to software purchases.  These buyers also encounter similar difficulties trying to navigate software vendor websites to find relevant content and support to help them make buying decisions.  

 

With buyers focused on the web as a purchasing gateway, B2B software vendors are no longer the sole owners of influencing brand perception – many online venues now play significant roles for influencing buyers, and many of these online venues are not controlled by the vendor.  However, the vendor still has control of providing a high quality web presence through its corporate website and the power to increase findability for the right “customers as buyers”.  While buyers reference other influencer sites, software vendors can contribute greatly to attracting and persuading buyers if buyers can easily find well-crafted and useful content on the vendor website. 

 

Vendors should exercise all necessary resources to exceed the buyer expectations and needs when visiting the vendor website. Not being highly findable as a web presence for the right buyer content will put into motion the potential for buyers to turn to other sites, many of which lead to competitors.

 

 

Website Findablity, Usability, User Experience – They Really Matter

If buyers can’t find, via the internet, what a vendor has to offer, then the vendor is plain old losing real prospects and sales every day.  Findability addresses the importance of websites being quickly found, easily accessed and distinctly identifiable with the B2B software vendor’s offerings.  With the mercurial nature of the internet and individual vendor web presence, findability requires constant attention and fine-tuning.

 

Unfortunately many B2B software vendor websites are built from the vendor’s perspective to support its own processes for marketing and sales – instead of from the perspective of the “customer as buyer”.  And most of these vendor websites have failed to provide easy access to high quality content that helps buyers make purchase decisions about the vendor offerings. B2B software vendors have a great opportunity to establish a more integrated and interactive web presence that pulls together people, tools, services and content.

 

There are lots of methods and tools to increase website findability: SEO optimization, recommendations / social search, Google marketing offerings, Web Standards, and so on.  But the right kind of content, including social media, is key to attracting and keeping buyers on the software vendor website because these buyers have a list of items (and expectations) deemed necessary for deciding if the vendor’s software solutions are what they need.  As the quality and diversity of content on the vendor website increases, so does the findability – as well as potential buyer interest.

 

Social media venues (communities, forums, blogs, wikis, Twitter, Facebook, etc.), both on the vendor’s website and other well-visited sites, can be used with dual purpose:  first to provide quality content, user interaction, and collaboration experiences that draw buyers to the vendor; and then, to provide dynamic research sources for better understanding the SMB / Mid-Market buyers that the vendor is targeting. Ongoing vendor participation should take place on the vendor’s social sites and on external social sites that are strategic to connecting with target customers.

 

This post from Jeremiah Owyang (Altimeter Group) provides timely insight into creating a buyer/customer-centric web presence that integrates with social media and why this matters. There are two very useful charts: one covers feature/benefits of integrating social networking sites, and the other details the integrations available from popular social networking sites.

Roadmap: Make Your Corporate Websites Relevant: Integrate Social Network Features

 

 

OK – Buyers have found the software vendor’s website…  

Now -- are there content and user experience worth finding? – How easily can buyers tap into what the website offers?  Buyers come to a software vendor’s website with expectations. Creating and structuring the website from the usability perspective of the buyer (or buyers if targeting multiple buyer types) will greatly support ease of finding relevant content and will generate positive user experiences.

 

SMB / Mid-Market buyers of B2B software generally want a wide variety of information about the products and solutions, input from communities and forums, clear pricing, and other information that will guide them to making a buying decision.  They would like this content in easy-to-download formats - without having to answer lots of questions to enable the download. There is an increasing buyer sentiment that vendor websites should not require any information from the buyer for any content downloads.  After all, the sales engagement is buyer-driven, with the buyer deciding when and if next steps will be taken.

 

 

Content Sought Out by Software Solution Buyers

Anything provided on the vendor website should be authentic, high quality content that answers real buyer questions. “Real” content engages buyers, so invest in subject matter experts who can write relevant, sharp and interesting documents, articles and posts. Vendors should provide links to industry writers, influencer blogs and communities, and to analysts who contribute insight regarding the vendor’s solution space and the competitive landscape. When significant negative content is published about the vendor, it’s smart to deal with it head-on through a vendor blog, as well as through any external social sites that are relevant – be honest and focused, always responding with the buyer’s POV in mind.

 

Content that buyers would like to see on the vendor website:

 

à  Products and solutions information

· White papers providing orientations for both technical and business problems

· Product and solution datasheets  

· Technical specifications

· Best practices / company approach to solving problems with the vendor solutions (lots of details)

· Case studies with real meat

 

à  Social media

Incorporating social media in the vendor website further provides the opportunity to create a more personalized customer experience. The website should provide vendor-sponsored social media sites and links to external social sites. Buyer-friendly social media include: communities, blogs, wikis, forums, RSS, self-serve webcasts and podcasts, video sharing sites, social networking sites. As with findability and usability, social media requires real commitment, constant nurturing and responsiveness to anyone participating in the vendor’s social sites. Social media offers a fantastic venue for building relationships with “customers as buyers”, for collaborating with them on the future direction of the vendor’s offerings, and to respond quickly to questions and issues.   

 

à  External Content from Influencers – which include current customers

· Communities, forums, blogs – the ones external to vendor website

· Coverage, reviews by industry writers and influencer blogs

· Analyst coverage – especially from analysts that specialize in software for SMB / Mid-Market

 

à  Pricing

For SMB / Mid-Market buyers, pricing should be published on the website, should be straight-forward, and always up-to-date.  These buyers are not interested in drawn out sales cycles – they will simply move on to another vendor if the clock has been ticking too long.  Many buyers would like to make most software purchases via the website, whenever possible.  SaaS, cloud, OSS software options are changing how SMB / Mid-Market buyers expect to purchase software, or software services.

 

à  RFP Q&A – standardized answers

The more likely initiators of RFP requests are the upper tiers of the Mid-Market, rather than “classic SMB”. Most RFP/RFI documents follow a basic format widely used in software industry, with a large majority of questions repeating from buyer to buyer.  So it might be a good idea to build out an engaging presentation of RFP Q&A on the website, utilizing newer media including podcasts and video. If done well (findable-usable-engaging), buyers could find answers on their own, satisfying buyer desire for self-service. Also providing online RFP Q&A could eliminate the time-wasting situation of the vendor being used as “column fodder”.  Online publication of RFP Q&A demands constant updating and refinement to be useful to customers.

 

There are potential hazards for publishing online RFP’s:

· Relevance to buyer needs is not always supported by the usual RFP structure unless multiple RFPs are mapped to various buyer solution scenarios

· Validity of vendor strengths and weaknesses depends on how those strengths and weaknesses map to the most important requirements of each buyer project – generic RFP content may not be able to make a clear assessment and could have negative effect

· Competitors will now know more about how the vendor responds to certain questions while not providing corresponding data on their own websites

So it might be best to provide higher level, but meaty, content for unrestricted access, and then require buyer registration and validation before sharing access to deeper content, especially if a mutual NDA is necessary for more ‘sensitive” information.

 

à  Competitor Comparisons

Software solution buyers often list “competitor comparisons” as a content type that they’d like to find on a vendor website.  However, there are real issues that a vendor must consider before attempting competitor comparisons:

· Mainly, legal constraints related to claims made about what a competitor does or doesn’t do, as compared to the vendor – lawsuits could arise from buyers or competitors regarding claims made

· Even if an “objective” third-party is engaged to create competitor comparisons, such comparisons are frequently tedious and expensive to execute

· Relevance – points in competitor comparisons may not be of importance to all buyers or relate well to their needs

· Commoditization – software offerings in same solution space generally have many of the same feature/functions so competitor comparisons have reduced impact

 

 

Aligning “Findable Web Presence” with Social Selling and Social CRM

Focusing on the buyer-centricity of a vendor’s web presence by improving the findability and usability of the website and by building out proper social media connections to potential buyers also brings alignment with initiatives for social customer relationship management (the strategic practice, not just the technology) and with programs for social selling. This is especially important for SMB / Mid-Market software vendors who need to maximize existing resources for these important initiatives.

 

These three inter-related initiatives nurture quality buyer experiences. And these initiatives are dependent on the vendor being willing to continuously engage in real bi-directional “conversations” with buyers and to act on buyer feedback. Vendors will greatly enhance long-term loyalty, buyer success, and the ability to continuously understand what buyers need by building a composite of excellent web presence / findability / quality content, combined with lively support of social media and true buyer support through social CRM.

 

Social selling taps into social culture and makes use of social media to build relationships and hold conversations with potential buyers. Listening well, presenting compelling content, meeting buyer needs are important aspects of social selling. Likewise, social CRM strives to provide support for buyer success with the vendor’s software offerings, aligned with the “lifecycle of the customer support” (pre- and post-sale).  (More on social CRM for B2B vendors)

 

For social selling, social networking and collaborative sites help sales to connect with buyers on buyer terms:  in venues where buyers are looking for solutions to problems, asking about specific kinds of software solutions, exploring competitor solutions. Sales teams can tap into what matters to potential buyers in order to connect on a real basis. Monitoring social media sites can also help sales teams identify the key influencers for target buyers.

 

 

And Finally, Always Make Sure There’s a Software Solution Worth Buying

Software vendors sometimes forget that it is equally important to deliver quality solutions that are: relatively easy to implement, do the job they’re supposed to do, perform well, and provide clear benefits to the buyer. Quality solutions should be the main objective of any software vendor.

 

 

Related posts:   

B2B Social CRM for Software Vendors and the Lifecycle of Customer Experience

 

Social collaboration in the enterprise: The heart – and goal – of Community is “collaborating people”, not collaboration tools

 

Selling Software Solutions to SMB Markets – Who and How To Target

 

Moving beyond WCM - Web Experience Management software solutions and markets

 

 

 

About the author: Julie Hunt is an accomplished market intelligence analyst, providing strategic market and competitive insights for the software industry. Her 20+ years as a software professional range from the very technical side  to customer-centric work in solutions consulting, sales and marketing.  Julie shares her takes on the software industry via her blog Highly Competitive and on Twitter: @juliebhunt   For more information: Julie Hunt Consulting – Market & Competitive Intelligence Services  

 

 

B2B Social CRM for Software Vendors and the Lifecycle of Customer Experience

Using social media for true customer support

 

 

Customer loyalty has become even more essential for software vendor success.  As many software solution markets have become highly commoditized, competitive engagements deteriorate all too often to price wars. In price wars, the customer is always in charge, which is even more the case with the economic downturn.  So tap into the power of the customer-in-charge -- sell to and support them through interactive relationships based on understanding what matters to customers.

 

Social CRM has a very natural fit for B2B software vendors, if companies are open to engendering a “social culture” as part of their go-to-market and company strategies.  Social CRM is proving its value to attract, convert, support, and contribute to the success of customers.  Social CRM (SCRM) also has a natural fit for company strategies that are customer-centric and market-driven – basically empowering software vendors to make a real commitment to address what matters to their target customers and prospects.

 

In return, softare vendors are likely to receive long term customer loyalty, more new prospects, and invaluable information from the customer base regarding the relevance and usability of vendor offerings. A true bidirectional and active relationship with customers results from strong Social CRM programs.

 

What is Social CRM?

SCRM is comprised of two major “pillars”:  an articulated business strategy that aligns with social media in conjunction with CRM processes, and the technology that powers social and CRM applications.  A company builds from the composite of these two pillars to engage customers (and prospects) in collaborative / interactive activities that provide mutually beneficial value and support. At the center of the SCRM strategy and implementation is the customer. Customers are now empowered and enabled to interact with the vendor on inidividual customer terms, using the social tools provided by the vendor (ie: wikis, forums, knowledge base, ratings/reviews, community, and so on). Additionally, integrations with popular social networking applications (Facebook, Twitter, etc.) will robustly extend the SCRM program while tapping into rich communication venues.

 

Social CRM maps to the “lifecycle of the customer experience” during the customer’s tenure with the software vendor.  This lifecycle is dependent on new ways to provide support to customers for current and future needs and success, and involves a continuous process of customer engagement, listening and responding, support and service, all of which are effective only if performed with authenticity and commitment.  In no way is SCRM a “quick and dirty” one-off marketing campaign.  Successful SCRM will require constant attention and care.

 

 

Formulating a Strategy

To create a strong SCRM strategy, explore these basic points relative to your company:

· Who are your target customers, current and desired?

· What really matters to these customers?

· What can my company do to fulfill the desires and needs of my target customers?

· How will my company show responsiveness to my customers?

· What does my company think it will accomplish using social CRM?

· Does my company promote a social or collaborative culture, internally?

 

It is likely that answering these questions thoroughly will also require segmentation analysis for all customer groups in the mix.  The SCRM strategy should acknowledge relevant sub-segments to accommodate the variety of customers, in order to effectively connect with each customer segment. This is especially true for B2B vendors with direct and channel sales models.

 

To really work, SCRM is not “one-size-fits-all”. Understand how your SCRM strategy will help with your CRM objectives and obligations; then figure out which social media you want to use and why. Become a master of your preferred social media by establishing a social culture in your own company (see below).  SCRM requires an authentic personal touch, both for how your customers are communicating with you, and how you respond.  Here are other points to consider when building SCRM strategy and implementations:

· Listening well and Responding thoroughly – interactive conversations with customers; feedback loops to ensure consistency

· Enabling enthusiastic customers to disseminate the power of “word of mouth”

· “Live” support through forums, chat and wikis to help customers help each other and to educate your own company on real problems and needs

· Crowdsourcing with your customers to help to design your products and improve your processes

 

 

 Establishing a Social Culture in Your Own Company is Essential for SCRM Success

To really make SCRM work, software vendors must engender a social culture with all of their own company teams who touch customers and prospects – basically the vast majority of the company.  The commitment, usage and value of SCRM must be real – customers will quickly figure out if the vendor is faking it.  With a healthy social culture in place in your company, the support and growth of SCRM for customer interaction will be a natural and vital part of your overall company strategy.

 

It’s really not that hard to be Social on the personal level, but it does take real planning and decision-making to know how to be social as a company. However, establishing a social culture is somewhat easier now that many in your company and many of your customers already know how to be social, and have real experience with tools like Facebook, YouTube, LinkedIn,Twitter, and so on. Be sure to tap into the lessons learned from your employee and customer social experience to finetune your approach for SCRM, to best connect and engage with customers and prospects.

 

 

A Quick Summary of SCRM Technology Options

There are a lot of Social CRM and Social Media offerings available at wide variety of price points. Many options are easy to implement and can be set up as SaaS subcriptions.

 

The main advice here is: first understand your SCRM strategy -- then understand which technologies will best help with the strategy.

 

Social CRM technologies to consider include:

· Social media / Social CRM applications – available as individual applications or as suites/platforms (on premise, SaaS, cloud, open source options)

· Affinity/sentiment monitoring & analytic tools

· Integrations with CRM applications/platforms

· Integrations with popular social media applications (Twitter, Facebook, YouTube, etc.)

· Analytics/metrics for understanding business value and for fine-tuning the SCRM approach

· Robust integration of your company website with your Social CRM applications, and with your go-to-market strategy

 

 

Social CRM Activities Increase the Findability of the Vendor

Using social media for current customer support can bring an additional bonus:  increased “findability” for your company -- for attracting new customers.  Social media content adds greatly to web presence and SEO. It’s now pretty much accepted that the web is the roadway to connect customers and companies, so the value of increased “findability” is obvious. The same forums, wikis, blogs, etc. used to help existing customers can also attract prospects interested in the subjects of the conversations and in how you respond to your existing customers. 

 

 

Related posts:   

Social collaboration in the enterprise: The heart – and goal – of Community is “collaborating people”, not collaboration tools

 

Selling Software Solutions to SMB Markets – Who and How To Target

 

  

About the author: Julie Hunt is an accomplished market intelligence analyst, providing strategic market and competitive insights for the software industry. Her 20+ years as a software professional range from the very technical side  to customer-centric work in solutions consulting, sales and marketing.  Julie shares her takes on the software industry via her blog Highly Competitive and on Twitter: @juliebhunt   For more information: Julie Hunt Consulting – Market Intelligence Services