Retooling Marketing in a B2B Company

Ping coporate logo 2014Ping Identity has gone through a top to bottom transformation in marketing over the last year. A successful organization that fed impressive growth, reaching growth and revenue records year over year, the marketing organization relied on a proven B2B outbound marketing model that precisely measured lead capture rates.

My interest for the last decade has been in inbound marketing models that rely on content to drive business opportunity. More significantly, I follow the advice of many friends who I would call contemporaries in B2B marketing, like Steve Mann at Lexis-Nexis and Chris Selland at HP-Vertica, who align their marketing demand gen efforts to account-based scoring… opportunities instead of leads.

When you combine inbound marketing with account-based scoring, you get a very potent combination of predictable opportunity funnel that also benefits from lower customer acquisition costs. The latter is essential for on-demand subscription models where customer acquisition costs (CAC) has to be recovered in a short upfront time period, and the former increases the volume of business funnel to work through, again essential in any business that has a wide range of pricing options, from free to enterprise license agreements.

When I took over the team in the 4th quarter of last year I made a couple of quick changes, most significantly breaking up the demand gen team into distinctive task teams focused on net new customers, base expansion, and retention outcomes. The demand center teams would respond to product & solution marketing, as well as partner marketing to drive campaigns, content, events, and interactive (SEO/SEM) for the specific outcome being targeted. We roll this up with a range of sales and marketing operations activities to drive opportunities, which are companies who buy our stuff as opposed to discrete contacts at companies.

I am fortunate to have a data scientist on my team, a PhD in statistics no less, who also has a keen ability to aggregate data from many different sources, from Salesforce to Splunk. We know from this data that there are tipping points that occur in the opportunity (account) scoring that should and do cause additional sales activity. I won’t share the specifics here because they represent hard won intelligence that is a form of IP for us, but I also believe that much of this is actually not easily transferred to another company like us. In other words, each company needs to learn the unique attributes and dynamics of their sales and marketing model rather than simply copying what another company is doing.

Underlying all of our marketing strategy is the notion that we, as a business, have grown in size to the point that we are beyond the point that generalists, high bandwidth people who can do a lot of things well, will serve our growth. We have made a number of changes in the team composition in order to achieve a high degree of specialization in each function… I want the best people at each position in the team. The equation is simple, we use people and systems to feed a data model that we constantly iterate to explain and then predict our performance. 

I saw this fascinating video of a Ferrari F1 pit stop that reminded me of what we are striving to achieve. Each pit crew member has a job and there is no confusion about who is doing what. Notice how the crew members responsible for removing the front wheels know exactly where to place their hands in order to capture the approaching race car… this is the level of specialization that we are building.

Identity and The Rise of Borderless States

I had this conversation with @andredurand a few weeks ago. What services does a government provide?

- Identity
- Central bank-backed currency
- Law-and-order (optimally in equal proportions)
- Defense

Of course there are more but many of the things we associate with government, e.g. social services, are in fact choices that a citizenry has made rather than a core obligation of government as a necessary means to govern. So the question now is whether or not we are entering a phase of a pseudo-borderless form of governance where people self-associate according to fluid social preferences and needs. The reason I am inclined to think this is not only possible but probable is that two of the core services that government provides are being undermined, the first by their own actions and the second by technology.

Currency is increasingly disconnected from economic conditions and central banks are demonstrating on a daily basis that their ability to affect currency is tenuous at best. The rise of Bitcoin is presenting a viable alternative currency that has many of the attributes of central bank backed currencies, namely a liquid market to trade. Games and social networks have similarly organized and promoted virtual currencies that can be arbitraged against non-virtual currencies.

Identity, on the other hand, is increasingly being driven by technology and at CIS the various talks about 3rd party verification services really stimulated my thinking on this. What if government-backed identification is no longer the gold standard for proof of identity? What this would mean is that the ability for governments to authenticate identity for transactions and contracts would be undermined and we would be one step closer to borderless states.

I have no way of assessing probability to any of this but the one certainty is that the pace of technological evolution is accelerating and with it comes dramatic social change that has implications well beyond the product and service capabilities by themselves so if I were to think about what the world looks like in 30 or 50 years, I am not sure I would discount any of this.

Speaking of 50 years, this article in American Banker really drives home the point about how identity is informing future businesses in ways that are entirely disruptive to traditional business models.

Fifty years from now? In her excellent and thought-provoking Long Finance report on the future of financial services, Gill Ringland rather memorably said that the citizen of the future would need the critical resources of an identity, a credit score and a parking place in order to function. If that’s true – and I certainly believe it to be the direction of travel – the bank’s critical role will be built on the customer identities, not their deposits. The vaults will not be stuffed with material valuables, but with the most valuable asset of all: personal data.

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