We practice what we preach and recommend you practice it too!  You need to build a profile of common denominators or qualifying criteria for companies in your target market “sweet spot.” The next step is to identify your decision making unit (DMU). The DMU consists of everyone involved in the buying decision of your product or service.

Start by building a profile that clearly identifies the different buyers you want to target in the DMU. Don’t be satisfied with just their titles. As we know, sometimes titles can be misleading. In fact, traditional title-based lists deliver a response rate that’s usually less than 3%. Determine the actual role that your contacts play in the buying cycle and in the organization. Backed by this functional, role-based information, you’ll be able to refine your data augmentation program and standardize data collection requirements for more targeted marketing programs.

Next, pull a list of pre-existing contacts that correspond to your target accounts. With this list in hand, begin the process of de-duping, identifying missing fields such as addresses or contact details, and identifying gaps such as key buyers, roles and other relevant details.

After this process, you begin to get a better feel for what you have and what you need.

You should also make sure that you’re marketing to the entire DMU. As we know, B2B purchases are typically made by a group of people, each one with different concerns and requirements. DMU members can include end users, business managers, finance specialist, technology specialists, senior management, key influencers, procurement specialists, and so forth.

The number of people in a DMU can vary greatly according to the size of the company. Marketing Sherpa reports the following statistics for purchases of $25,000 or more:

• Companies with 100 to 500 employees ― 6.8 people in the DMU
• Companies with 501 to 1000 employees, 13.5 people in the DMU
• Companies with over 1000 employees ― 21 people in DMU

By connecting with the entire DMU before the prospect moves into the sales funnel, you can accelerate the sales cycle and increase your chances of conversions.

To accurately target the right companies in your in-house database, first use what you already have ― your CRM data and your website visitor logs

With your CRM data –

• Profile your top-performing market segments. Where are you winning?
• Identify your best target markets. What kinds of deals close the fastest?
• Determine key qualifying company characteristics and buyer roles.

With your website visitor logs –

• Look for visitor patterns. For example, do you see any companies from your key markets or vertical industries that you haven’t already targeted?
• Are companies visiting that are already currently in your database? If so, are you recording these page visits?
• Your online marketing and PPC advertising is driving lookers, so track these visitors as well. Just because they don’t announce themselves doesn’t mean they aren’t potential leads.

This analysis will help you determine where to find your target market “sweet spot.” You should also follow these other steps as you find the right targets.

• Mark all records that are included in your current target market. You don’t necessarily want to delete the data you aren’t using, but you need the ability to pull your target market data easily.  It may be as simple as a field for industry or industry segment or as complex as a series of tags that indicate parcels within your target market.

• As you fill in gaps and build out contact data for new roles, consider other segmenting options.  Maybe segmenting based on employee size isn’t the way to go, can you use annual revenue as an indicator of opportunity size or maybe geography if you are targeting for a site specific event. Do this while you’re updating as well. This will help you better target your message at these prospects.

Dirty data costs companies billions every year in wasted resources and lost productivity. This is true whether the data is purchased, gathered via download offers or stored in a company’s internal database.

This problem is driven by several factors. Today’s mobile workforce is changing jobs faster than ever before. According to Gartner, 30 million of the 138 million workers in the US will switch jobs in the next 12 months. Now add that to the number of businesses that move or get acquired every month. It’s easy to see how they dirty data piles up and piles up fast.

To make matters even worse, feeding dirty contact data into a marketing automation or CRM system has a multiplier effect. This can quickly derail success by:

• Delivering multiple wrong messages to the wrong person or persons.
• Annoying customers and prospects with redundant messages.
• Losing credibility due to botched attempts at personalized communications.
• Failing to leverage multi-modal marketing capabilities.
• Misinterpreting campaign success metrics.
• Creating sales inefficiencies.

So how can a company address this problem? It’s not easy. Most marketers are overwhelmed by hundreds of thousands of duplicate entries, old data, inaccurate contact details and countless records in different states of completion. This existing data has likely been gathered by many different individuals over multiple years.

The best way to start cleaning data is by targeting the right companies, along with the decision makers who actually determine the buying process.  Develop a profile of what your ideal customer would look like, working from there you should be able to weed out less-than ideal candidates or at least give some kind of prioritization to companies in your database.

To get more from your in-house data for lead generation, you need to keep it clean ― but that’s like hitting a moving target. With companies merging or going out of business and a workforce that is constantly changing, marketing databases get dirtier at an alarming rate.

In fact, 2.1% of data goes bad every month, according to MarketingSherpa. This means  over 25% of contact data goes bad per year.

The only problem is knowing which 25%.

The good news is that marketers can dramatically improve their campaign results by using the right strategies to consistently update, clean and refresh their lead-generation database. According to SiriusDecisions, “the company that markets with a healthy data-cleansing routine can realize nearly 70% more revenue than an ‘average’ organization, based purely on data quality.”

Lately, we’ve been talking about the best ways to start with data cleanup, what to consider when marketing to your in-house database, important signs that your database might need help, and more.

Armed with this information, you should be in a better position to optimize your in-house database, reduce wasted efforts, improve conversions and get more revenue from your marketing dollar.

Do you have some great tips for starting the clean up process?

In addition to starting the New Year with great optimism about the prospects for all of us marketers, I am excited and privileged to serve you as ReachForce’s new President.  Based on feedback from you, I plan to continue communicating within our present theme of lessons learned, insights and tips to help increase the effectiveness of your B2B marketing efforts.

In 2010, B2B marketers will face new challenges and have new priorities.  Here are three key challenges and priorities I see:

1. Budgets are stretched thin. So why not look at your in-house databases as the goldmine they could be? The hidden gems in your database are ripe to be unearthed.  Marketing data hygiene and database maintenance should be key initiatives for every marketer in 2010.
2. Increasing market reach and generating leads are more important than ever.  What are your plans for growing your contact database this year?  But sheer numbers alone aren’t the answer.  Filling your marketing database gaps with the right, most relevant contacts will be critical for success.
3. Separating yourself from the herd is crucial to differentiating yourself.  Do you have all the crucial demographics you need to slice and dice your data? If not, this is the time to act.  By segmenting your database, you can get the right message to each of your prospects and customers with laser-sighted precision.

I look forward to exploring all of this with you and more and wish you all a happy and prosperous New Year!

The number one responsibility of any B2B Marketer is to keep his or her company’s marketing and sales funnel full,
with leads converting quickly to drive profits. In other words, to keep the company’s lifeblood flowing.  The continuous battle to meet pipeline and revenue projections is frustrating when using traditional techniques.

There is a better, more deliberate and predictable approach to increasing the velocity and efficiency of the
marketing and sales funnel. Hence the term Funnelnomics—the practice of extracting the most value out of the
leads as they move through your funnel.

This is the first in a series of blog posts to present a proven method for improving your Funnelnomics by accelerating the conversion of qualified buyers into profitable customer relationships. It provides a framework for integrating your marketing lead generation programs with sales execution processes to drive growth and profitability.

Step 1: Mapping Your Marketing and Sales Funnel

The traditional sales-focused funnel is a relic of the past—a product of the rapid change that has taken place over the last six to eight years. It reflects the old practice of Marketers buying lists of names to fuel programs, expecting a 2% return and then turning over all leads—qualified or not—to Sales to convert into buyers.

Today’s marketing and sales funnel must be developed and managed by understanding both the sales process and by considering the way buyers move through the purchase process. It is vital for B2B Marketers to document the customer buy cycle including the critical parties involved, process and length of buy cycle.

According to industry analysts at SiriusDecisions, only 1% of B2B Marketers consider the customer buy-cycle when it comes to planning and executing marketing and communications programs.

Understanding the customer buy cycle is an important step in optimizing Funnelnomics—enabling Marketers to deliver targeted communications that move leads from one stage to the next in the funnel in the most cost-effective way possible.

Marketers must fully map the customer Decision Making Unit (DMU) including the title and role of each person in the decision-making process. Marketers also must understand the type of information they need (based on their individual pain points) and how they would like to receive it (i.e. direct mail, email, etc.) in order to move the decision maker to the next level of the funnel.

Once the customer buy cycle has been mapped, it is time to map the sales cycle. Product Marketing, Customer Service, Sales organizations, and Marketers together should:

• profile customers and define top customer characteristics
• define target audience characteristics including demographics (revenue, employees, industry) and psychographics (personae, likes, dislikes)
• define the sales cycle including phases and parties involved
• benchmark conversion rates to move to the next phase
• define decision drivers and triggers including customer needs, events, etc.
• secure agreement on qualification criteria for lead scoring
• gauge Sales and Inside Sales capacity for engaging with qualified buyers

This must be done in order to monitor and manage prospects as they move through the funnel to optimize marketing programs for continuous improvement.