It’s Time For a Customer Strategy

It’s Time For a Customer StrategyTransforming Advocacy from Marketing Tactic

to Competitive Advantage

Key results from the 2015 Study on Customer Advocacy and Engagement By The Center for Customer Engagement and SiriusDecisions

What We Learned: The Good News

2015 Study on Customer Advocacy and Engagement

More Than 200 Companies Participated in 2015 Study

• Company sizes (by annual revenue in US $)• 33 percent less than $100 million• 23 percent more than $5 billion• 21 percent between $101 million and $500 million• 17 percent between $1.1 billion and $5 billion• 5 percent had between $501 million and $1 billion

• Customer types (i.e., who respondents sell to)• 69 percent enterprise (more than 1,000 employees)• 23 percent midmarket (101 to 1,000 employees)• 8 percent small (100 or fewer employees)

• Sales models• 69 percent sell mainly via a direct sales force• 12 percent via inside sales• 12 percent via third-party channels

© 2015 Center for Customer Engagement and SiriusDecisions All Right Reserved

Good News: Expanded Responsibilities in 2015 vs. 2013

85 percent said “advocacy” now includes not just traditional references but also other customer marketing efforts (e.g., events, advisory boards, content, communities, others)

+ Up 26 percent from 2013


Good News: Better Use of Direct Advocacy Sources

Source: SiriusDecisions 2015 Customer Advocacy and Engagement Study


Good News: Taking Advantage of Technology Support

53 percent said they plan to invest in technology in the next 12 months

Some of what’s in use today: • 60%: Salesforce automation/CRM• 44%: Customer reference platform• 37%: Marketing automation platform• 32%: Online community platform


Good News: Planned Technology Investment Spans Wider Range

Where 2015 investment is planned: • 54%: Customer reference platform• 25%: Advocate marketing/gamification

platforms • 21%: Online community platform• 21%: Marketing automation platform• 14%: Customer survey platform

• Plus a range of other technologies andservices


What We Learned: Opportunity Remains

2015 Study on Customer Advocacy and Engagement


Opportunity: Sales Help Remains Mostly Voluntary

65 percent said sales help with advocate sourcing is voluntary

Just 7 percent said sales must submit a certain number of references and are measured on this (same as 2013)


Opportunity: Time To Find, Nurture Your Best Advocates

Just 35 percent of b-to-b companies have a formal process to identify and recruit top customer advocates


Opportunity: Advocacy Easier Said Than Supported

83 percent said references are “critical” or “valuable” to sales cycle… …But majority still allocate

less than 10 percent of marketing program dollars to customer advocacy and engagement

--No change from 2013


Opportunity: Your Sales Pipeline Could Have a Silent Killer


Reality: Customer Evidence Is Critical In All Buying Stages

Source: SiriusDecisions 2013 persona study of C-level buyers

89 percent of CXOs say their perception of a vendor’s brand moderately to significantly influences their short-list creation.

75 percent of a CXO’s research is done via personal interactions and viral communication networks

80 percent of a CXO’s final decision is based on his or her own or others’ experience with your company

Source: SiriusDecisions Persona Study


Holding Us Back: We Don’t Know Enough About Buyers

Only 18 percent said they know their buyers journey extremely well, map it and know the roles involved


Opportunity: Advocacy Must Support All Stages of Buying

Source: SiriusDecisions 2013 persona study of C-level buyers

33 percent said they believe customers frequently rely on advocacy/references in the education (early) phase vs. 55 percent in solution (mid) and 76 percent in selection (late) phases

23 percent don’t focus at all on advocacy support for education (early) phase.


It’s Time to Build A Customer Strategy


What Does It Mean To Have A Customer Strategy?

Business Goals

Activity

Activity

Activity

Activity

Activity

Buyer/Customer Needs


Activity

What Does It Mean To Have A Customer Strategy?

Activity

Activity

Activity

Activity

Activity

Business Goals Buyer/CustomerNeeds

Clear link from activity to

intended impact


Customer Strategy Means Supporting Buyer and Customer Needs

① Loosening of theStatus Quo

SiriusDecisions B-to-B Buying Cycle

② Committing toChange

③ Exploring PossibleSolutions

④ Committing to aSolution

⑤ Justifying theDecision

⑥ Making the Selection

Vendor Selection

Phase

Solution Phase

Education Phase


Most Companies Offer Array Of Options To Customers …But Are They Being Used In the Most Effective Way?

User & Partner Groups Customer-

led or Company-sponsored

events

Events

Regional or annual customer

events

Online Community

Online customer

engagement platforms

Social Media

External social

engagement communities

Advocacy

Formal customer evidence,

content and engagement

CABs

Executive-level

customer steering groups


Step 1: Understand What Buyers Need and Provide Support

SiriusDecisions B-to-B Buying Cycle

① Loosening of theStatus Quo

② Committing toChange

③ Exploring PossibleSolutions

④ Committing to aSolution

⑤ Justifying theDecision

⑥ Making the Selection

Vendor Selection

Phase

Solution Phase

Education Phase

What matters most and who do buyers trust as they go through each stage of their journey?


Advocacy Engagement Examples by Buying Stage B

UYE

R’S

JO

UR

NEY

EDUCATION SOLUTION SELECTION

Loosening of the Status Quo

Committing to Change

Exploring Possible Solutions

Committing to a Solution

Justifying the Decision

Committing to the Selection

AD

VOC

AC

Y O

PTIO

NS

• Logo use (online, presentation, print)• Advertising reference (print, online,

other)• Quote reference (online, audio,

presentation, print, social media)• Success story (online, audio, video,

live presentation, newsletter, print)• Press release quote• Customer co-marketing

• Social community participation• Webcast with client co-presenter• Analyst rating participation

• “Why we chose ABC Co.” story• Switching vendors case study• White paper or other long-form case

study based on client success• Press/influencer interview• Reference audio/video

• Speaking engagement − panel• Speaking engagement − joint or solo

content• Event presentation• Social participation

• ROI case study• Early-stage customer experience

story• Joint press release• Partner reference (call, video, visit,

presentation, online, print)

• Reference call access• Reference visit access• Analyst reference/interviews• Customer event participation• Social participation• Event/hospitality access

Inte

ract

ions

C

onte

nt


Step 2: Understand What Customers Need and Coordinate Actions

What is appropriate to ask of customers and what are ideal engagement options at each stage of post-sale lifecycle?


Quick Audit: Where Are Advocacy Contributions Hidden Today?

CUSTOMER ADVOCACY AND ENGAGEMENT ECOSYSTEM

CUSTOMER MARKETING SALES

SERVICE

CUSTOMER SUCCESS

PRODUCT

BRAND/ COMMS

CUSTOMER EXPERIENCE

Grow Retain Develop Deliver


Map Out When and What To Ask Over Customer Lifecycle

What could a brand new customer share?

What do customers learn

as they work with you? What can they share

with others?

Why do customers stay? What and how

are they willing to share about the value they get

from you?

What makes a customer’s

relationship with you special?

Where are the brand-level

connections? Adv

ocac

y O

ptio

ns

STA

GE

and

GO

AL

Begin path to value Build value Recognize

value Enhance value

Grow/ Advocate

Retain/Actualize

Deliver/ Initiate

Develop/Participate


Customer Advocacy Examples: Customer Lifecycle Support C

UST

OM

ER

LIFE

CYC

LE

DELIVER/INITIATE DEVELOP/PARTICIPATE RETAIN/ACTUALIZE

Fulfill on Purchase/Use What was Bought

Ensure Adoption, Ongoing Use/ Engage Where Possible Maintain Business/Show Value Build Business/Become

promoter

Support engagement, show path to faster value

FAQs, Tips and Tricks Early deployment stories

Quick win stories Partner recommendations

Customer community User Groups

Customer website areas

Reinforce use or participation, build on value

Answers to FAQs from successful customers

Later-stage customer stories

Customer survey Customer events

Community introductions

Help customer to prove impact

Longer-term ROI Case Study Challenge/solution Stories

Analyst coverage

Executive briefings Customer events

Executive advisory groups Other advisory groups

Cultivate growth and advocacy to enhance value

Innovation case studies Award case study ROI case study

Speaking engagement Event/hospitality access

Community leadership roles External community

participation/leadership

ADVO

CAC

Y R

EQU

IREM

ENTS

ASSE

T O

PTIO

NS

GO

AL

Inte

ract

ions

Con

tent

GROW/ADVOCATE


How To Measure Impact


How Are Advocacy Teams Measured Today?

58 percent: Quantity of case studies 53 percent: Quantity of references

47 percent: Impact on wins 36 percent: Impact on sales productivity

22 percent: Leads generated 16 percent: Customer retention 13 percent: Customer loyalty/NPS


SiriusPerspective: Choose the tactic that best supports the relevant stage. The Impact of Customer Engagement on Sales

Help sales close more deals

e.g. increased probability of conversion through pipeline, more deals in

key categories

Move deals faster through the pipeline

e.g. shorter time to qualify, fewer days to

close overall, fewer days in stage

Find more deals Drive larger deals Find the right deals

e.g. incremental revenue, wider product/solution breadth in deals, deals

found in preferred areas


Impact Examples for Post-Sale Customer Engagement

Retain • Retain 1 or 5 percent more customers?• Improve loyalty or NetPromoter scores by 5 percent?• Increase customer lifetime length by one year? 5 years?

Reduce • Lower customer support demand by 5 percent?• Lower cost of sale by .5 percent

Improve • Improve product/service engagement by 10 percent?• Increase selling time by 5 percent?• Improve sales yield with upsell and cross-sell?


Activity

All Because Influence and Impact Of Customer Strategy Is Clear

Activity

Activity

Activity

Activity

Activity

Business Goals Buyer/CustomerNeeds

Clear link from activity to actual influence and

impact


What To Do Right Now


Action Item Checklist For Your Customer Strategy

1. Understand your buyers journey and whereadvocacy can help

2. Understand your customer lifecycle and when it’sok to ask for advocacy support

3. Understand your customer lifecycle and definewhere advocacy should be providing support

4. Define a measurement strategy that clearly showshow important customer advocacy andengagement are to business results

5. Make a great case for the resources you need tomake an even bigger impact


What Will You Change This Year?


It’s Time For a Customer Strategy

Business

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