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Is Revenue Hiding in Plain Sight? Six Steps to Refocusing on the Customer

Leading a B2B organization is a lot like trying to change the wheels on a bike while you’re still riding it. Half of the time, you’re rethinking internal systems and how to assemble them in new ways. The other half, you’re just trying to keep the business running and avoid any major potholes. There are many different ways to drive an organization, but if you’re not thinking about customer experience at every touchpoint, it might be time for a tune-up.

Sales, Engineering, or Marketing?

If you’re a sales-led organization, you’re primarily focused on revenue, deals, price, and market share. You empower your sales team, invest in training, and drive a disciplined, well-executed process. At the end of the day, you want them to hit their quotas. This model can be very effective. The challenge is that each individual salesperson often creates their own tools to get the job done. This can result in an inconsistent brand experience, where every customer is getting a different version of the story. Moreover, a sales-over-everything culture can create burnout and impact your roadmap with one-off requirements that can’t be scaled across the customer base.

Hundreds of startups in Silicon Valley are engineering-led organizations, with a heavy focus on sophisticated software, data, and analytics. Code supersedes everything, and every possible process is optimized for iterating as fast as possible. When you move fast and break things, you can create something extraordinary. But you can also fall into the ideological trap of building just for the sake of it. It’s not that you can’t be successful, but you run the risk of creating feature-functions that don’t satisfy an unmet, underserved customer need.

Marketing-led organizations are all about researching and identifying products or services that your customer needs and wants. In theory, it’s a fantastic model that is mutually beneficial to both the customer and the organization. Unfortunately, in practice, there can be some barriers to entry. Startups, for example, often don’t have the luxury of being marketing-led, as they need to allocate their resources to engineering and sales. Marketing is something they’ll invest in later when they are doubling-down on growth. In addition, it can be trickier to get consensus in a marketing-led organization. Whereas sales and engineering have more objective metrics to fall back on, the success and execution of a marketing-led organization often hinges on whether it becomes an essential part of a company’s DNA.

Customer Experience Is the Best Teacher

While all of these paradigms have their pros and cons, if your organization isn’t focused on customer experience at every touch point, it doesn’t matter which function is leading because you’ll be severely limiting your growth. The era of asymmetrical communications—top-down or inside-out, where companies push out messages in one direction—just isn’t working anymore. Customers are more informed, more dynamic, and have higher expectations than ever before. They are expecting a nuanced, two-way conversation. Plus, the link between online reputation and business performance is staggering. A recent study of the hospitality industry by Cornell University found that for every one percent improvement in a hotel’s online reputation, its revenue per available room improves by 1.4 percent.

Companies need to be receptive and customer-centric if they want to thrive in this climate. This starts with an authentic focus on providing a superior customer experience backed by a clearly articulated purpose. Why? Because purpose is not only contagious—it sustains growth. According to New York Times bestselling author Simon Mainwaring, 91 percent of consumers would switch brands if a different one was purpose-driven and had similar price and quality.

The Spirit of Customer-Centricity

Now, you might think that marketing is the only place for such a customer-centric mentality, but that’s not the case. One of the biggest mistakes you could make is thinking that the customer only interfaces with a singular marketing message or website. They interact through the product, through sales, they might be phoning client services or tweeting at a support channel. All of those touch points have to represent the company and brand in a meaningful way.

If you’re a VP of Engineering, chances are you don’t want your top brains spending a lot of face-time with a customer. You want them in front of the screen where they can put their talent to work. But that doesn’t mean you can’t take steps to instill a spirit of customer-centricity in their role.

For instance, product managers should be regularly analyzing the interactions of the customer with the product, as well as talking with customers directly, so they can turn those insights into requirements for engineers. It’s about getting the perfect balance of qualitative and quantitative inputs. If you don’t consistently remind your employees who they are building for, they can lose track of the “Why?”—that larger, aspirational goal of why you’re building products in the first place. Here are some tangible steps every organization can take to create a culture of customer-centricity.

Six Steps to Refocusing on the B2B Customer

  1. Don’t make assumptions about your customers. I’ve been in countless meetings where someone quickly whiteboards a customer journey—all without ever talking to a real customer. When NYPD Commissioner Bill Bratton was tasked with reducing crime in New York, he didn’t just read reports—he rode the rails himself. Quantitative data will get you far, but you can’t really put yourself in the customer’s shoes without qualitative data. That’s how you truly get an outside-in perspective.
  2. With B2B, never forget the customer’s customer. When you’re working with a large enterprise, it’s easy to forget the effects your decisions will have on an individual. You must think all the way through the customer journey. Try to create meaningful outcomes at every step in the process.
  3. In the B2B marketplace, you should design with the same love and attention to detail as you would for consumer products. You may think, “I don’t care how it looks, it just needs to work,” but in an increasingly crowded marketplace, creating differentiation through a delightful customer experience is key.
  4. Never underestimate the power of authentic customer stories. They serve as great collateral for sales, marketing, social media, and remind those in your company who don’t get to interact directly with customers of the impact they are making. Currently, 71 percent of millennials report feeling not engaged at work. But if you’re able to create a situation where employees derive meaning from their work, everything changes. A recent Harvard Business Review study found that employees who derive meaning from their work report almost twice the job satisfaction and are three times more likely to stay with their organization to fuel business success.
  5. Consider your partners. Especially if you’re a B2B selling through a channel, you need to be cognizant of the needs of your partners, as well as your customers. How you show up to your customers is incredibly important, and that’s why you must always maintain brand integrity through each and every channel.
  6. Executive alignment is everything. When you get alignment at the highest level, it cascades throughout the whole company, ensuring that all functions are cohesive and onboard.

Customer-Centric ≠ Customer-Led

You may have noticed that I have avoided the phrase customer-led. There’s a key difference between being customer-centric and customer-led. As Henry Ford said, “If I had asked people what they wanted, they would have said faster horses.” Everything you do should be aimed at creating a fantastic customer experience. Nonetheless, you don’t want people-pleasing to get in the way of innovation. Customer feedback is incredibly important, but it can’t be the only data point. When that happens, it can lead to a dangerous feedback loop that creates tunnel vision. Trust your team, create an environment for risk-taking, and then go test the results.

At the end of the day, it doesn’t really matter conceptually who is driving the company. What matters is that everyone deeply understands the pain points of the customers they serve. Everyone, regardless of role, should have a relationship with the customer.

As a leader, you need to facilitate an internal evolution where employees are not only passionate but can see the real-world results of their work. Belief is one of the most powerful tools in business. When people believe in what they are doing, they work harder, smarter, and with their whole hearts.

Emotive Brand is a brand strategy and design agency based in San Francisco.

A 5-Step Action Plan for Sales and Marketing Alignment

B2B Sales and Marketing Alignment 2.0

A former colleague of mine just started a job where she was required to stand up and deliver a sales presentation to the sales leadership team. That wouldn’t be unusual for a new salesperson – but she’s a marketer. And the experience of walking in the sales team’s shoes made her a better one.

B2B companies talk a lot about sales and marketing alignment, but talk will only get you so far. Companies need to take action to get their sales and marketing teams empathizing with each other, strategizing together, and working from the same playbook.

It’s a critical time for sales and marketing alignment. The benefits have never been greater. As technology and data transform business, new opportunities are emerging every day for the savviest B2B companies to boost lead quality, close more deals, strengthen their brands and improve their work culture through tighter teamwork.

So how to get from here from there? If you take the following action steps, you’re all but certain to enjoy stronger B2B revenue growth this year.

Action 1: Plan together

Most companies have already conducted their 2019 planning meetings, but if you haven’t, now is the time. And even if you have, you shouldn’t stop there. Before the holidays, be sure to put four quarterly sales and marketing planning meetings on your calendar for next year.

A lot of change can happen over the course of a year, so it’s important to have an in-depth planning session at least quarterly. This is a chance for B2B sales and marketing teams to sit together and review sales objectives for each time period. Then you can agree on how the strategic marketing plan can best support those objectives, from corporate and field events to high-value content.

Action 2: Walk in their shoes

Aligning goals and tactics is an important start, but for greater impact, marketing needs to truly understand the hurdles salespeople face every day.

Marketing tends sometimes to lean toward the aspirational, but sales enablement requires a more down-to-earth approach. It’s important that marketers attend regular sales team meetings – yes, every week — and hear firsthand what is working, what is not, what prospective customers truly care about, and what key questions marketing absolutely needs to answer.

As my friend’s experience above illustrates, having B2B marketers stand and deliver a sales presentation is a great way to enhance their understanding of how well their own slides work in practice, not just in theory. Actually telling the story is the best way to gauge how each piece connects with different audiences while identifying any gaps.

Sales, for its part, should appreciate that marketing is tasked with a longer-term, strategic role in growing the company, the brand, and its customer relationships.

Particularly as subscription-based SAAS becomes the dominant revenue model, topline growth is driven less by closing a few big deals and more by long-term nurturing that paves the way for customer loyalty and successful cross-selling and up-selling.

It takes mutual respect flowing both ways to fully leverage the strengths of both sales and marketing – so everyone can reap the benefits of these opportunities.

Action 3: Connect top to bottom

Sales and marketing alignment at the executive level is not enough. The entire organization, from the c-suite to operations to customer-facing field staff, should know each other and have regular conversations. If this isn’t happening, now is a good time to make those introductions.

Action 4: Pay for what you get

Typically sales teams are compensated based on meeting and exceeding revenue targets, while marketers aren’t ­– but it doesn’t have to be that way. Some B2B companies have started rewarding marketers for KPIs like deals influenced or deals sourced. Good CRM tools are making it possible to track the effectiveness of specific pieces of digital content, making detailed ROI measurement – and rewarding the content creators — more feasible.

Action 5: Lean heavily on your brand

As sales and marketing alignment gains steam, brand makes even more of a difference. It gives both sides a common understanding and shared language as they essentially co-create the B2B brand experience.

The most successful sales and marketing partnerships are aligned in their commitment from top to bottom – from their brand’s highest-level vision to its most tactical tools.

By nurturing mutual respect and leveraging the strengths of both the sales and marketing teams, your company will be set up for greater success in 2019 and beyond.

Emotive Brand is a San Francisco Brand Strategy firm working with high-growth technology companies. Learn more about our work with high-growth technology companies here.