Episode Transcript
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You were listening to bb revenue acceleration, a podcast dedicated helping software executives stay
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on the cutting edge of sales and
marketing in their industry. Let's get into
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the show. Hi, welcome to
be to beer of a new acceleration.
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My name is Anim with you,
and I'm here today with Matt Fleming,
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Director of marketing at load smart.
How are you to day smart? Doing
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Great, thanks, and thanks for
having me on the podcast. Absolute pleasure.
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So today we want to speak about
marketing activity and the topic is exactly
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how we measuring marketing excessively question mark, which is a great topic because I
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have been victim, or I've made
my marketing people victim, of my month
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measuring excessively sold me to. Are
Your sorts on that? But before we
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get into the conversation, Matt,
could you please introduce yourself and tell us
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a little bit more about the company
you represent? Lot spots. Sure thing.
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My Name's Matt Flemming and I lead
marketing at load smart. What load
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smart does is loadsmarts of Technology Company
in we leverage technologies like artificial intelligence and
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machine learning and combine those with deep
industry partnerships to help shippers like the Coca
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Cola Company is an example, and
move freight across the country a little bit
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more efficiently. Oh, son's excellent. So so, Matt as a market
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are you are obviously requiring to prove
the value of the activities you drive and
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measure the the row I have to
activity. So I guess you can report
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to your management and to Y'all,
bald as to I was successful your compings
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all. But do you believe that
market all focusing too much in driving shot
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term resorts and by doing that technically
compromise activts at all fundamental from brand burnding
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perspective, but or so outdot to
me Asah, yeah, so the short
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answer to that and I'll give you
a caveat in one second, but the
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short answers yes, absolutely. Let
me just say up front that, because
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I'm sure you know there's some very
like passionate views on either side of this.
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So let me just say a attribution
and measuring Roy are incredibly important parts
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of marketing. There's no way you're
going to get around them. But what
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I'd say is what's happened over the
past, call it, ten to fifteen
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years, is that companies are looking
to attribution analysis to define their marketing playbook.
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So it's not so much like they're
they're they're defining their marketing playbook and
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then using attribution analysis to kind of
measure, you know, what they should
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be working on right or what kind
of had the best return, but they're
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using that attribution analysis to define everything
that they do. Everything that marketing should
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be doing is kind of defined by
the attribution analysis and typically Roy is revenue,
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right, gross revenue, maybe in
some cases margin to yeah, in
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my opinion is that, like that
has some real fundamental flaws, even more
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so if you're a BEDB technology company
and you have a longer sales cycle.
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Specifically, I think there's I think
there's like three problems, I think so.
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Number One, taking that example of
like a be to be company,
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you know, with a reasonable sale
cycle there are likely dozens upon dozens of
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touch points that occur over the course
of the six months sale cycle. Right
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in. The reality is is you
probably only track at best half of them.
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And then I think when you combine
that with the fact that the data
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we do track can be wildly misleading. So as an example of that,
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let's kind of take example of like
having a PR or media relations function.
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How do you even measure the Roi
on that. The reality is you can't
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even measure the traffic from the referral
itself, because how many people see an
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article and then just go directly to
your website or do a Google search?
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You're never going to get heavy should
but we all know internally, right,
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that media relations in PR is kind
of an important component of marketing. And
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then I think the last point I
had on that, or kind of the
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last big problem with people relying too
much on attribution is that the models that
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we actually use to measure those touch
points are not scientific at all. It's
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literally the equivalent of sticking your finger
in there and like trying to feel which
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way the wind blows and won't whether
it's, you know, like linear right,
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so like our linear attribution. First
Touch, last touch, you know,
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middle touch. Like the point is, like there's dozens of these models,
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but at the end of the day
it's just some product manager or a
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marketer somewhere being like hey, like, I think this is the way we
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should go. Yeah, it so
like stepping off my soapbox for a sec
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I guess. I think because of
those reasons, what ends up happening is
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marketing is up over focused on some
activities and completely ignores others. In the
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bottom line is that, at least
in my opinion, too many companies look
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to attribution as a gps when it's
really supposed to be used like a compass.
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And Yeah, okay, that's makes
sense. So what would you say?
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The activtet up being left to site
because of that relentless requirement to measure
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on that tribute, and that'stribution.
Sure, I think it's a lot of
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things tied to brand. Anything squishy. Right. Here's another example, right,
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like let's say you can even factor
in a website redesigned into that,
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because it's I think it's also tied
to the type of business here in so
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let's say, you know, we
saw take the example of load smart actually.
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So we sell to Fortune one hundred
companies, really senior people at those
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companies, and it's really kind of
an outbound marketing motion. Yet the same
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time we know our website is really, really important. But how do you
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measure that in terms of Ouri?
Right, like it's not transactional. They're
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not going to come to our website
and do business through our website. But
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there's an impact. If one of
our sales people, for instance, gets
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like the VP of supply chain,
let's say it's staples, on the phone,
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and then that VP goes to check
out our website and I can't find
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what they were just pitched on the
phone. How do you qualify? How
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do you quantify that? You can't. So there's always kind of in so
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I one I think it's kind of
tied to the type of business that you're
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in. But to I think there
will always be things that are hard to
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measure, that we know like deep
in our gut are wildly important and even
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it's logical that they're important, but
because attribution can only take you so far,
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you get stuck and I see that
happening over and over again. Noun,
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that's time. So in jails are
end then? Is that a way
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to measure bread a Lottess? Yeah, I think there are. You know,
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I think again it depends on the
stage of company that you're at right
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in terms of what resources you can
put into measuring that. I think number
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one, you can look at kind
of organic branded searches for your company and
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how that trends over not over time. Hopefully you actually have like a unique
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company name that isn't like echo or
something like that, right, but you
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could potentially manage kind of organic search
for your brand. You can do stuff
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like a brand awareness surveys and,
I think, perhaps to a lesser extent,
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just kind of thinking about the relationship
that you have with your customers.
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You could potentially look at stuff that's
similar to MPs score, so kind of
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like how do people actually feel about
your company? Beyond just kind of being
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aware, and I think this is
going to sound, I guess, a
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little bit sappy or too much pine
the sky, but I think when you've
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really focused on brand marketing activities and
specifically like building kind of brand affinity with
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the people you're trying to sell to, there is a buzz in the way
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that they engage with you. I
think as an example of that, you
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know drifts spent a lot of time, I think, focused on brand marketing
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and as a result of that,
you know, they were able to launch
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their own event and, you know, sell it to capacity. Is that
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a you know, like I think
that's actually kind of a latent effect of
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them kind of spending so much time
defining their brand and really focusing on it.
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Yeah, great, take exam put
as I live done. They've done
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very wetter on that to be false. So a that that makes perffix sense.
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So in that case, do you
believe that the marketels are being less
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creative? Seems I expected to spend
mure time in doing it and then a
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key colle and res are driven type
of approach. Absolutely definitely. I think
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over the past ten to fifteen years
there's been a massive over focus on both
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tech and an analytics and as a
resulted, as a result of that,
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I think marketing the game very transactional, right. So it was like how
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many mq wells did you bring in? How many of those MQ wells turned
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to ask you, wells, how
did that turn into revenue? And we
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came, we became like so focused
on transactional mark marketing that it really came
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at the cost of building a brand
and building affinity with that brand. And
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when I say that, I really
want I'm talking about is like building a
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brand in building an authentic connection with
the people that you're actually trying to sell
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to. And it's crazy because I
think you end up having like you have
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marketers who know how you know.
They're like a grand wizard in Marquetto or
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hub spot, but they don't know
how to write. They can't all a
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story and I believe that the overfocused
on analyt x has actually gotten US further
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from the results we want because again, right those attribution analysis are fundamentally flawed.
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They're only tracking the points you can
track and then they're waiting those touch
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points very arbitral. So if anything, I think the overfocus on analytics,
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well it's important, it actually gets
US further away from the results that we
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want, which is, you know, for most people, revenue. So
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I would you suggest you obviously again
and you mentioned it a couple of times
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in in the conversation so far.
It does depends on the type of organization.
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So I don't know how big is
your team? A lot smart.
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I don't know if you're on your
own. But let's say you've got a
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small organization. You've got someone who's
got maybe you know, a CMO and
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two three people in the organization worldwide. Of course they won't be able to
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as someone with marketing operations, someone
with content marketing, someone with online marketing,
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whatever it could be. You know
at the team that you would have
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in the Coca Cola and know all
those large organizations may have like thousands of
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people in marketing. So if you, if you are limited with resources,
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and I'm sure you'll say that,
you look great at tools, and analytic
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is quite important. Is a part
of it that you can't completely revoke from
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from your from your yours process.
So how would you attribute the time,
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how much, how much should be
spend on analytical driving results, commuting anything
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about what you are doing, versus
actually, you know, being creative,
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thinking outside the box and making your
prospect thing that you know you coming up
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with the greatest compaign wants to engage
with you. Yeah, so what I
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would say is I don't think they're
mutually exclusive. Like the you know,
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keeping an eye on the analytics and
then also being able to think creatively.
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I think there's a balancing act to
that, right. Like I think that
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also plays into kind of how you
think about like the budget that supports those
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activities, right. That was kind
of my next Question Time and budget.
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So yeah, it kind of I'll
do you spread that, because I completely
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understand what you're saying, but I
put, you know, putting my ceu
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at all. I still need to
get some sort of measure. I need
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to get to feel saying, you
know, I might is driving the right
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thing. I made not begetting GM
Qures, but all the prospective meets everything
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at I'm reading about my company is
we are the new Ronics of you know,
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all the BMW or whatever I could
mean a go, all those brands
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being associated to success and everything from
a client's perspective. And well, is
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that that could be just through conversation, you know. At the same time,
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I'm sure you need to justify the
tools that you are using your marketing
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budgets. I'm kind of trying to
ask your question around. I'll do you
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go and get more money as a
marketer without, you know, basically balancing
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boats. As you say. It's
a balancing act. So I'd like to
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get your sorts on that. I
know you. Yeah, it's a hard
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question and it's a really good question, really really good, because I think
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that's kind of you know, it
forces me to put my money where my
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mouth is. Right. So let
me just say one thing up front,
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and it may not be the thing
thing that you'd want to hear as a
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CEO. Right, right, well, there will be activities that your company
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should absolutely be doing that you will
never be able to measure. The RLIFE.
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However, Huh, and that sounds
scary. It should be scary,
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but it's just it's the way it
is, and you can kind of like
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talk around it a little bit,
you know, like Oh, like,
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well, maybe it will increase our
conversion rate five percent on the website and
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that results in x many leads,
x many opportunities, x many meetings,
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x many deals. Right, you
can do that, but it really like
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your you're you're just trying to make
yourself feel better for making that invest so,
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yeah, maybe that's controversial, but
that's kind of how I think about
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they're always be things that you can't
measure. How does that relate to how
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I think about splitting budget and activity? Because at the end of the day,
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I think it's a compromise. Right. So how I am personally?
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Let me just start by saying that, like, I would right now invest
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more earn brand, but there's obviously
pressure from my boss, there's pressure from
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senior leadership to focus on like demand
Gen activities that are more kind of typically
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trackable. Right. So I'll tell
you kind of how I think about it
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and how I like the framework I
use for doing that. So what I
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do is I first start with figuring
out, basically doing the reverse funnel math
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to identify, to keep the rest
of it, to keep my peers and
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my boss and the management team happy, how many whether it's leads, mqls.
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You know, however, you define
top of the funnel right, use
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the reverse funnel math to basically backtrack
out what you need to be spending in,
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you know, a typical demanjat program
right, or demand M programs across
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a quarter to hit that quarterly target. Yeah, assuming revenue target, that's
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going to take a massive chunk of
change out of your budget, right,
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like that's just good and you have
to do it because it is a compromise
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with other people on your team.
So that's number one. So I'm using
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reverse funnel math to backtrack out the
demand end budget and that chunk is spoken
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for. Then there's also, you
know, the tools and tech. I
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need some carving that out, but
typically what ends up happening is is like,
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after you've kind of done your funnel
analysis, you've come up with your
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quarterly targets in terms of like what
you need to hit, and then also
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the costs and campaigns that you know
you need to run right to actually hit
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that target, there's going to be
a chunk of budget that's left over.
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Almost always right, and typically the
way I think about that is all go
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to senior management say hey, I'm
signing up for this lead target, this
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opportunity target, this customer target.
I'm going to use this amount of money
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to actually go out and get those
leads or empty walls, however you wanted
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to find it. But there's this
chunk of budget that's left over that I'm
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going to be using to build brandware, or not necessarily brand awareness, I
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like to say brand affinity, brand
affinity with the people were trying to sell
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to. You know, that could
be roughly twenty, two thirty percent of
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the budget. Typically it's closer to
twenty. And the other thing I would
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say there is that what we do
is we were in abm shop, right,
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so where account based, marketing,
Account Bass sales. So what new
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is when I when we talk about
those brand activities, right, depending on
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the platform, you can get a
glimpse into what companies are actually engaging with
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that brand content. Right. So, for instance, Linkedin, if I
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run sponsored video and target it to
the prospects and companies that were actively trying
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to get into I can see whether
or not those companies engage with the content.
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So that's kind of how I think
about it. You know, start
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with the demand, Jen figure out
the targets that you need to hit to
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one hit your revenue number, but
to keep everyone happy, you know,
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carve out what you need for tools, but then, kind of with that
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chunk of budget that's left over,
I would dedicate that to brand and,
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to be honest, like, if
I didn't have to make those compromises,
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I'd probably invest even more in brand, simply because not to like, you
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know, go on a diet tribe. But if you think about it,
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contents becoming more saturated. Ad Budgets
are going up, compounding roughly twenty percent
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year over year. So like those
typical like demand employs or play book,
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you know that demand gend playbook is
rapidly becoming stale and more expensive. So
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I would actually argue that, you
know, going into the next five years,
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a company's ability to generate demand is
actually going to be infinitely better or
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more efficient by do it by building
brand and building brand affinity, then it
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would be trying to do any typical
marketing playbook, you know, like gated
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content, Gavid Webinar ad supporting that
stuff like that. Yeah, I talked
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a lot. I hope that makes
sense. That makes perfect sense, I
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think. I think you know you're
right, just kind of to de fitting
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you of good t when you group, when you go insight is show up
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and the websites you write. I
mean the difficulty of the topic today is
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that I think you can of need
to measure some stuff because you can't get
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away with it. But I think
what we're saying is that, look,
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you still need to think about your
brand. You need to think about the
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longer term. Don't just get because
if not, will everybody will do email
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campaigns, which is kind of a
little bit dead now, but very easy
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to manage, very easy to measure
the result. Someone respond to the email.
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What are interested? If they don't
respond, well, technically they're not
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interested. But I think, I
think you can of eat the nail on
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the end with the with the way
to go about it. And and I
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guess for me, from my personal
perspective, which is may not be the
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perspective of all the audience, what
I really wanted to get from you today
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is you know what sort of percentage
of budgets, percentage of time would you
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be allocating the brand, and I
think if we were to get a rough
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number, I would be around twenty
persons, just like a fifth of time
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and the fifth of the of the
budget, which, you know, kind
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of makes sense to me. You
know, it's it's it's it's important,
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I think, to invest. May
Be thinking about it from a different perspective
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because operatic is a company that I
started. You know, I was there
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from day one. So the name
operatics the brand really mean something to me.
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So I want the brand to do
well and the brand to thrive.
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And may be different when you are
in an organization it is a bit larger
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and people may not say it in
some perspective, but twenty person seems fair
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and I think that's that's emissively what
we are trying to do. I've said
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that already on a few on a
few episodes, but you know, it's
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it's kind of refreshing because I was
probably on the opposite side thinking, you
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know, brand Pia, what's the
point? You know our new complas,
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realize it's use less. Up until
the point I started to get into conversation
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with prospect that I was meeting at
events or even people emailing me and saying,
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look, just would like to really
interested to work with the products which
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just you know, we cannot validated
the references and stuff. We already spoke
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to people. Lots of people speak
about you, guys, and there is
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a good vibes around you. There
is a buzz around you, but I
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just don't know if I can afford
your services. So I wanted to speak
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to you and see if, you
know, I made too small and made
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the right size to work with you. Petickuly, people approaching you saying or
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you seem to be doing so great
that I don't know if I've got enough
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money for you. You see,
it's got to be very expensive for the
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reason that I believe you're delivery,
and that's from a perspective. Is Actually
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is Brent and and we started that
really three years ago to get that sort
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of feedback, and they keep on
going since and but yeah, it's it's
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a lot of work to be done. It's a lot for us. It's
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community building. We're going to be
walking on our website this year as well
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because, you know, we've done
a lot of things that are offline,
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if you will, that are not
really as you mentioned with your example,
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with staples, you can't find them
online. So we need to be more
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consistent. So we do know those
things, but that twenty percent seems fail
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and I think you you, you, you ready the NAT on Tetz.
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That twin so much. If anyone
a fologians would like to carry on the
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conversation, Weise you out of the
pot. Get a note of decision today
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00:18:51.930 --> 00:18:55.009
with what's the best way to get
in touch with you? Yeah, sure,
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so people can find me on linkedin
or shoot me an email. My
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linkedin is forward slash MC Fleming.
Feel free to pick me there. I
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00:19:03.319 --> 00:19:07.759
love talking about this kind of stuff. Alternatively, if you want to reach
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me up by email, you can
hit me up at Matthew Dot Fleming,
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00:19:11.549 --> 00:19:14.789
with one M at load smartcom.
That's one enough food where. Thank you
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00:19:14.829 --> 00:19:18.109
very much for you insight today,
met it was a great pleasure to have
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00:19:18.190 --> 00:19:19.430
you on the show. It was
a pleasure to be on. Thanks for
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00:19:19.470 --> 00:19:26.420
having me. operatics has redefined the
meaning of revenue generation for technology companies worldwide.
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00:19:26.460 --> 00:19:33.140
While the traditional concepts of building and
managing inside sales teams inhouse has existed
303
00:19:33.220 --> 00:19:37.180
for many years, companies are struggling
with a lack of focus agility and scale
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00:19:37.569 --> 00:19:45.089
required in today's fast and complex world
of enterprise technology sales. See How operatics
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00:19:45.210 --> 00:19:51.250
can help your company accelerate pipeline at
operatics dotnet. You've been listening to be
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00:19:51.450 --> 00:19:56.119
tob revenue acceleration. To ensure that
you never miss an episode, subscribe to
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the show in your favorite podcast player. Thank you so much for listening.
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00:19:59.680 --> 00:20:00.799
Until next time.