what works where b2b digital 2016

THE STATE OF B2B DIGITAL 2016 EDITION

W H A T W O R K S W H E R E 2016

I n t e g r a t i o n a n d m a r k e t i n g w i t h i n t h e d i g i t a l o r g a n i s a t i o n

BRAND OWNERSHIP Marketing vs HR

COLLABORATION Is it really the answer?

DIGITAL CAPABILITY Have we got what it takes?

DIGITAL SOLUTIONS What do you need for the future?

About the researchOmobono has been conducting a study into What Works Where in B2B Digital Marketing since 2011. Now in its 6th year the research reveals how channel usage has delivered against the objectives of over 400 B2B marketers; how they are spending their budgets; and measuring their efforts.

We’ve also taken a closer look at a number of challenges facing marketers in the ever complex and increasingly fast-paced digital age.

This year’s report continues the 2015 theme: following the spread of digital channel usage within the organisation, as it seeps out of Marketing’s control and into the hands of every member of the organisation.

In 2016 we have canvassed the views – via a qualitative and quantitative study – of over 100 senior marketers and HR professionals from some of the world’s most influential B2B organisations. Their insights provide the focus for this report.

Research was conducted by Winmark Global and we would like to thank the team there for their professional input and support.

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WHAT WORKS WHERE 2016

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ContentsLooking back to see forwardHow is marketing progressing in the context of the evolving digital organisation? ��6

Fragmentation and the shift in powerModern communications: who is responsible, and for what? ��10

Measurement under the spotlightWhat exactly are we looking at? ��16

Focal pointHow can digital data help? �� 22

White light thinkingNew approaches to digital �� 28

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At Omobono we have been monitoring the digital activities of B2B organisations for more than half a decade� At face value – over the past twelve months – little seems to have changed�

Marketers continue with their consistent usage of digital channels to drive customer relationships, position their companies as expert and raise brand awareness�

So far so predictableIt’s only when you step back, and observe what is happening elsewhere in the organisation, that you realise things have changed out of all recognition�

Both inside and outside the company, expectations and behaviour have transformed the communications universe� Combine this with dramatic developments in technology and the role of marketing is, in reality, shifting as we watch�

The question is – what will it become?In this report we explore the implications for the enterprise landscape and suggest some potential solutions, based on feedback from both senior marketers and senior HR practitioners in major B2B organisations� Their insights on precisely who is in charge of communications, and the likely trajectory

going forward, provides a viewpoint that professionals on both sides need to urgently respond to, if they are to ensure that their organisations thrive and their teams maintain relevance�

IntroductionThe dramatic shift in technologies, audience behaviour and expectation is transforming the communications universe.

Our What Works Where report has provided detailed insights and trending themes for the last 6 years. It’s fascinating to watch how digital has changed not just marketing, but the way organisations do business. Now the question is – how do we respond to maximise the advantages digital technologies and ways of working have put in front of us.”Francesca Brosan, Chairman, Omobono


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Looking back to see forwardHow is Marketing progressing in the context of the evolving digital organisation?

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Marketing is under threat from HR in its communications heartland Omobono’s 2015 report into What Works Where in B2B Marketing revealed that Marketing had lost overall responsibility for external communications, with brand ownership being shared across the business�

Sales, Customer Service and HR all had significant digital presence which impacted on how external audiences heard and felt about the organisation� Customers were a top 3 audience for all departments, with the result that they were 33% more likely to hear from another department than from Marketing�

This in turn shone a light on the need for Marketers to improve their skills and to become the digital experts and advisors within the organisation, to ensure that they remained at the heart of the communications movement�

2016’s data goes further Put plainly, Marketing is under threat from HR in its communications heartland� Following 12 months of increased involvement, and increased investment in digital, HR has overtaken both sales and customer service, and is now the second most powerful voice when defining what the company stands for.

With its unique positioning – speaking as employer and brand – HR has the most influential voice both internally and externally�The last 12 months have delivered a 34% increase in perceived authority for HR and 75% of people agree that HR’s digital practices contribute to the overall brand profile�

75%of people agree that HR’s digital practices contribute to the overall brand profile.

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For many companies, this stark finding exposes vital issues of communications ownership, responsibility and effectiveness� For many more it may be the much-needed catalyst for reshaping their organisational structures and behaviour, to maximise the opportunities wrought by and fuelling the digital age�

WWW 2016 provides the critical moment of white light thinking B2B communicators need to find the most appropriate forward momentum�

HR’s investment in digital is starting to pay off

Q. How many years has your business had a digital component in the HR/Marketing function?

68%

9% 9%11%

4%6%4%

Four yearsThree yearsTwo yearsOne yearLess thanone year

Five ormore years

Don’t know N/A

23%26%

13%6%

13%

0% 0% 0%

HR

Marketing

9%


Q. Which departments in the business are the primary users of digital technologies?

HR is now the 2nd most powerful voice in the company

96%

58%51%

Customer Service& Key Account Management

Marketing HR Sales Finance GeneralManagement

Procurement TheBoard

Legal Risk &Compliance

Tax

44%

27%22% 22%

13%7% 5% 4%

The first big step is to acknowledge employer branding as a business critical capability that requires domain-specific skills, long term investment and empowered support.” Lisa Chartier, Global Head of Employer Brand & Recruitment Marketing, Philips

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and the shift in powerModern communications: who is responsible, and for what?

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In 2015 research demonstrated a growing acceptance of the benefits to be drawn from integrated communications� CMOs and HROs alike recognised that getting this right produces a more effective, efficient and a stronger brand�

The 2016 results show a sharp uptick in this understanding� Consistent messaging, more effective communications and a strong brand have all risen sharply, as have the benefits of an integrated approach to communications�

And, although benefits to the customer experience have dropped slightly, they are still one of the most critical factors�

This combination, powered by digital opportunity, makes integration the primary point of focus for future-facing organisations. Companies that fail to integrate the customer and employee brand are accelerating themselves away from the future�

The consumer brand has an intrinsic link into the employer brand, and I think in the past working separately was a mistake.”Jackie Lanham, Group Organisation Development Director, Rexam PLC

Better customerexperience

Strongerbrand

More e�ectivecommunication

Consistentmessaging

Operationale�ciency

Cost saving/maximising value

Easier tomeasure ROI

2016

2015

56%61%

87% 82% 82%

43%

61%64%

45% 45%

26% 26%38%

24%

Understanding of the benefits of an integrated approach have risen by over 50%

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Q. What are the main benefits to having an integrated approach to your company’s digital communications?

Corporate and employer branding lacks integration and ownership. For integration to happen, the two sides of the brand need to align. But when asked how well the corporate and employer brand are integrated within the organisation, both departments admitted it is a far cry from high performance – with HR judging it at 3.0 out of 5 and Marketing only a little above this, at 3.3 out of 5.

This highlights an essential problem – and provokes a vital line of enquiry: how do we ensure everyone’s alignment?

Marketing’s objectives are focused on outcomes, but HR’s responsibilities are expected to drive them. Roles, accountability and effectiveness remain unclear.

Who owns the problem provokes greater dissent. Whilst the scores for integration are simply average, there is clearly a tussle for ownership of the brand itself. With both Marketing and HR asserting more ownership than the other group would attribute to them, the strategic and operational picture is splintered. With a lack of clarity over who is best positioned to the ensure the organisation lives the brand, we have to ask the question. Just who exactly is in charge?

Ownershipof Corporate

Branding

Ownershipof Employer

Branding

4.0

8.1

7.7

5.3

According to Marketing

According to HR

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Q. Between these two departments, where on this scale would you place ownership of corporate branding and employer branding?

Scale: 1 = owned by HR 10 = owned by Marketing


Matching coloured dots indicate areas of overlap

HR

Marketing

Engage and motivate employees

93%63%

Understand the employees

79%75%

Share internal company updates

71%54%

Communicate the company’s values

71%60%

Encourage employees to promote the company

64%38%

Build relationships with existing employees

64%52%

Ensure the organisation is living the brand

64%21%

Get feedback

57%42%

Raise brand awareness

57%8%

Position the company as industry experts

29%4%

Position the company as industry experts

92%73%

Promote existing products or services

90%73%

Understand the target audience

84%60%

Build relationships with existing customers

75%47%

Communicate the company’s values

71%40%

Ensure the organisation is living the brand

57%13%

Engage and motivate sta�

41%0%

Recruit new sta�

14%0%

Areas where clarity about responsibilities for HR and Marketing can be enhanced

HR Tasks

Marketing Tasks

Q: What are the main tasks of the Marketing and HR departments?

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Challenges around integration reveal a number of reasons for the imperfect nature of the HR & Marketing relationship – from the difference in departmental priorities to the lack of senior management support� Any one of which might explain why communications across organisations are not happening as efficiently as they should, and why scores for collaboration are as deeply average as scores for integration�

But none of these reasons are new� In fact, they’ve hardly changed since we began reporting on digital communications six years ago� Nor are they progressive�

With change growing both at scale and speed, rather than simply accepting that people don’t have the time or inclination to collaborate, or repeating the familiar mantra that “it’d all be alright if only senior management would support it”, perhaps it’s time for an altogether bolder perspective�

Collaboration between Marketing & HR has room for improvement

3.3

3.0

HighTop score: 5

LowLowest score: 1

54.543.532.521.51

Q. How do you rate the collaboration between Marketing and HR in your organisation?

What’s holding everyone back?

All

HR

Marketing

Lack of timeto collaborate

5th

Lack of support fromthe leadership team

4th

Departments have di�erentobjectives/priorities

1st

Not everyone understands thevalue/importance of digital

3rd

Lack of ownership

2nd

6th

Lack of willingnessto collaborate

There should be very little direct conflict but you risk creating fragmentation of your corporate persona and how you are perceived, because you’re often driven by differing motivations and time bound objectives… if you’re pulling at different ends of the rope, as it were, you end up not going very far in terms of how it looks to your audience.”Tom Baker, Global Head of Resourcing, Imperial Tobacco Group


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Q. Please rank the following in order of impact on your ability to have an integrated approach to digital communications.

Measurement under the spotlightWhat exactly are we looking at?

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What you want to measure is impact… we need to figure out what the right metric is, or measure is. The challenge we’ve got, and I’m sure many others do have, is just resource to do this.”Shashank Kothare, Director, Investment Communications, Marketing & Communications EMEA, Russell Investments

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As we’ve seen in previous studies, both marketers and HR have a wide range of measures against which to benchmark their efforts. However, with reporting on ROI as an explicit measure more common among Marketing than HR respondents (50% / 33%), no single metric is seen as the most valuable by the majority.

As might be expected, HR respondents place more value on cost per hire and employee retention rates, while Marketing cares more about lead generation.

Alongside the fractal thinking, this year’s research also shows that everyone agrees on the benefits of integration, and that collaboration is the crucial step.

Closer examination of the business metrics typically being employed reveals that rather than measuring the behaviours we want, we routinely measure the outputs we hope to see.

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Leadgeneration

Employeeretention rates

Costper hire

Quality ofcandidates

Conversionrates

Closedsales

Brandperception

Brandawareness

11%

17%13%

22%

33%

According to HR

According to Marketing

27%23%

33%

27%

11%

20%

37%

22% 22%

17%

44%Marketing and HR overlap on metrics

Q. What are the most valuable metrics for measuring and proving return on investment?


What if we’re measuring the wrong things? It has been said, if you don’t measure it, it doesn’t happen� But what then should this be? Implementation, or something altogether more fundamental? What if the real blind spot relates to how businesses need to function, in order to best move forward?

In an ideal new world, when HR has an incredibly powerful voice in terms of sharing the corporate brand, why aren’t both departments measured on the brand’s success? Similarly, whilst HR is the obvious driver of the employee brand, and people deliver so much of what the company stands for, isn’t it missing a trick not to evaluate

Marketing on this too? In either case, KPIs of both departments need to be realigned�

It’s heartening that a third of respondents are measured on collaboration, but they are still not working towards a common goal – consistency�

OtherConsistency betweencorporate and

employer brand

Collaboration withother departments

Value of theemployer brand

Value of thecorporate brand

I don’t haveany KPIs

8%

16%

HR

Marketing

18%

47% 46%

38%31%32% 31%32%

15%

5%

KPI topics by department

Q. Which of the following are covered by your KPIs?

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If KPIs were as firmly targeted on behaviour – driving collaboration and consistency – rather than the outputs that are the traditional ‘value’ measurements, we believe this would produce a very different result. And in this context, the complete absence of KPIs for half of HR respondents and nearly a third of marketers has worrying implications�

We understand and we measure brand awareness, and accept that people are critical to these results� Yet we don’t measure individual understanding of our brand, nor do we effectively measure and reward its magnification�

So, in order to realise the full power of integrated and effective digital communications, what might the brand future look like?

Operationally, both Marketing and HR’s goals should be linked to a common commitment, so both are working towards a shared outcome. Then, each should proactively share their annual strategy with the other, to identify integration or alignment opportunities that help generate a sum that is greater than the individual parts.

Culturally, collaboration depends on both parties respecting each other’s areas of expertise and caring more about the business outcome than their ego.” Global Head of Employer Brand & Recruitment Marketing, Technology & Telecoms sector

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Focal pointHow can digital data help?

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All too often research looks only backward. This year, a key question was what both marketers and HR practitioners would like to see in the future. Where was the shared focus; how could digital help them do a better job; and what would be needed

to deliver even more powerfully in their roles? Unsurprisingly, digital is active in every aspect of the organisation, from delivering against marketers’ key challenges to improving the efficiency of brand communications – which is consistent

with previous years’ objectives. We see that web, email and social media continue to be the most popular digital channels, with HR and Marketing falling over each other to make full use of them.

91%95%98%

71%

Onlinevideo(e.g.

YouTube)

71% 68% 66% 64% 63%54% 52% 50%

Companywebsite

Emailmailing

Socialmedia(free

accounts)

Onlinepress

Intranet Searchmarketing- organic

(SEO)

Onlineadvertising

(e.g.display)

Blogs Socialmedia

advertising(e.g. sponsored

posts)

Webinars &podcasts

Mobileapps

Websites, email and social media are the most valued channels

Q: Which of these contribute to the activities of your wider business?

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Tasks that should have more of a digital component


Encourage employees to promote the

company

Communicate the company’s

values

Get feedback Ensure the organisation is living the brand

Share internal company updates (e.g.

operational information)


Position the company as

industry experts

Provide support/answer

questions


Engage and motivate

employees

Recruit new employees

Share company’s policies

Strategic workforce planning

Attract candidates

Convert leads to customers

Launch new products or

services

Promote existing products or

services

44%50%

39%43%

28%35%

31%28%

25%28%

33%33%

11%53%

8%50%

42%8%

58%8%

39%23%

25%43%

39%3%

31%0%

67%0%

0%43%

0%43%

0%45%

Areas of agreement

Areas of disagreement

Department-specific responsibilities

HR View

Marketing View



company


values






industry experts


questions


Engage and motivate

employees




Attract candidates



services


services

44%50%

39%43%

28%35%

31%28%

25%28%

33%33%

11%53%

8%50%

42%8%

58%8%

39%23%

25%43%

39%3%

31%0%

67%0%

0%43%

0%43%

0%45%

Areas of agreement



HR View

Marketing View



company


values






industry experts


questions


Engage and motivate

employees




Attract candidates



services


services

44%50%

39%43%

28%35%

31%28%

25%28%

33%33%

11%53%

8%50%

42%8%

58%8%

39%23%

25%43%

39%3%

31%0%

67%0%

0%43%

0%43%

0%45%

Areas of agreement



HR View

Marketing View

Q: Are there any Marketing/HR tasks which you think should have more of a digital component?

25

How might digital do better? As the results show, the greatest areas of overlap focus on employee engagement, with both Marketing and HR recognising that digital can play more of a role here� The first areas which separate the two departments revolve around the external brand, with Marketing looking to increase effectiveness in terms of increasing brand awareness and positioning the company as experts in their field� But this singular view fails to see the greater picture� Both HR and Marketing teams are missing a critical opportunity that is inherent in digital – it’s a two way medium�

With a critical eye, you would say that both departments have taken up digital as a pure substitute for above the line media; their strategy being to broadcast, not to create a dialogue� Lower levels of recognition for dialogue based digital activities suggest this provides a critical tactical opportunity to get ahead of the competition� In this context, failing to respond to the opportunity carries far more risk than stepping into the conversation ahead of the competition�

“ The world is becoming more and more digitalized every day. It is not something you can simply ignore and still succeed. Traditional (non-digital) methods of working and communicating are becoming obsolete in the digital age. Every task, strategy or project should be thought through with a ‘digital’ lens first to meet or exceed objectives.”Global Head of Employer Brand & Recruitment Marketing, Technology & Telecoms sector

www.omobono.com/www2016

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How to intervene against anynegative social media backlash

Which products or servicesreceive the most interest

Which messages andchannels are most e�ective

How can you better engagewith customers

Prospects

Potential recruits

How you can better engageexisting employees

How sales and serviceprocesses could be improved

How customer perceptions ofyour brand change over time

62%

49%

43%

27%

30%

32%

32%

35%

57%

Digital data is used to identify and better understand:

Q. How do you currently use your digital data?

The most acute insight into data usage, in either department, reveals a continuing weakness (that was first highlighted in 2014): Marketing and HR teams and resources are ill-equipped for the digital onslaught�

Today however, the skills needed to survive are found less in the production of digital content and more the ability to analyze and respond to its impact�

This was recognised by respondents as a significant challenge – especially for marketers�

How could data usage be improved?

25%Better understanding

of whether scores are good or bad

53%Having more skilled analysts to crunch

the numbers

36%Increasing CEO and

board understanding of digital analytics

47%More

advanced analytics

61%Better

availability of consistent, high

quality data

50%Simpler, more

accessible analytics

64%Better integration

of different assets36%

Better understanding of which numbers

to focus on

Perfect interpretation and integration of data is still some way off, and in our view, not the essential measurement of success. In our judgement something far more critical is needed: direct and determined action to align digital goals across both HR and Marketing.


Q: How could the way you use digital data be improved?

New approaches to digital

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29

It is clear from this research that the organisational benefits of a wholly integrated approach to digital, across HR and Marketing, are considerable. And that measurement structures need to change in order to reflect and support this�

Organisations need to unite their thinking, unify their efforts and look forward through a single lens� But which approach is most likely to accelerate integrated communications? Here we offer two possible views of the enterprise future�

New approaches to digital

Now, through the web, through social, anybody can view any piece of content. So increasingly therefore, the story you tell has to be consistent, and you have to recognise that all audiences are likely to access that content.” Peter Thomas, Managing Director – Integrated Marketing, Europe, Accenture

www.omobono.com/www2016

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Route 1: The Marketing-led visionMaintaining a more familiar path, with this model Marketing retains control of communications and overall strategy, and tackles the issue of competency head on�

Departments seen as ‘good at digital’ (using digital communications and data to boost performance) score higher for marketing in general� They actively use digital to improve effectiveness and stay up-to-date, being better able to take advantage of opportunities represented by digital technologies�

As we suggested in 2015, by actively renewing and repairing internal relationships, Marketing can enhance its future relevance by continuing to lead the business on brand awareness, positioning the company’s expertise in the market, and improving audience understanding�

Additionally, in this most digital of times, Marketing can increase its focus on the inherent opportunities born of improved data management including: identifying and understanding improvements in

sales and service process (27%), increased engagement of existing employees (32%) and how to better engage existing customers (49%)�

Moving forward, Marketing not only renews its own skills but also structures its capabilities and team members to support cross-departmental learning, furthering alignment and efficiency; and advancing smarter-working with fewer resources� This in turn supports enhanced integration of data sets and high quality data; and delivers more acute analysis of critical numbers� Throughout this process HR acts purely as an operational department, restricting its activities to managing contractual and financial issues�

The biggest factor in determining whether or not a certain structure will work or not is whether the culture is one characterized by collaboration or territorialism.”Lisa Chartier, Global Head of Employer Brand & Recruitment Marketing, Philips

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Route 2: The HR-HD approach For more ambitious companies, it may be time to look beyond known frameworks and departmental standards, to imagine and fashion an altogether different paradigm:

What if the increasing overlap of Marketing and HR were not an inevitable risk, but a strategic opportunity? What if functional walls were not allowed to crumble, but were actively torn down?

This scenario recognises that people are now central to a company’s success� Individuals are now the heart of a brand’s power – and harnessing them, the most influential and powerful change that can be made�

As a result of organic shifts in audience behaviour and the unique placing of HR: both externally and internally connected, tomorrow’s HRO or Chief Talent Officer becomes the critical link to the future� By taking charge of the corporate brand, all communications are synced and flow through a single conduit�

This model leaves Marketing to focus on delivery of tactical product campaigns based around the strategy devised and directed by HR�

A company is no more than the people within it. Take out the people and there’s nothing there. If the departments don’t collaborate the organisation will go backwards.” Ben Dansie, CEO, Omobono

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Integration

Alignm

ent Con

sistency

StrongBrand

You’ve got to look at it through the eyes of the end [customer]... to ensure that you look smart and appealing; like somebody you might want to do business and work with. Clarity of purpose, vision and message - that only comes from internal collaboration between the various functions, particularly Marketing and HR.” Tom Baker, Global Head of Resourcing, Imperial Tobacco Group

“White light thinkingClearly, both options have great strengths, and require the same focus on aligned communications, consistent messaging and an integrated strategy� As such, much depends on the ambition of the individual organisation� However, whichever route is deemed most suitable, sufficient well-defined waypoints exist to propel the journey to a united, stronger brand�

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How to strengthen your focus on integrationOur respondents provided insights into the key actions required to deliver integrated purpose and activity for both HR and marketing�

1 Encourage and engage in open, proactive dialogue

2 Look beyond functional boundaries 3 Clarify responsibility and accountability for all communications 4 Establish strategic support and direction from the C-Suite 5 Build a collaborative culture – lead by example and

reward behaviour

With the right implementation, the rewards to business deliver faster, critical outcomes, that can be accurately measuredand precisely evaluated

1 Levels of staff engagement & motivation

2 Communication of company values 3 Stakeholder ownership of the brand 4 Staff promotion of the company 5 Increased internal and external brand awareness

As we’ve shown, the commercial argument for action is both visible and tangible� It progresses customer insight, drives efficiency, boosts productivity and magnifies market impact�

Our on-going research suggests that action is now imperative, and may be all that prevents business from seeing the future through the wrong end of the enterprise telescope.

Active Vision

The time is...


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Omobono is a global creative and technology agency for business brands.

We use our creative and technology skills to make our clients more desirable to buy from, more attractive to work for and more valuable as brands. By obsessing about the delivery as well as the deliverable, we’ve built brilliant long-term relationships with many of the world’s biggest companies.

C A M B R I D G E L O N D O N C H I C A G O

Omobono Ltd. in partnership with

[email protected]

@omobono_digital

omobono.com

Winmark gives world-class business leaders access to unique and comprehensive business knowledge through a portfolio of C-suite peer-learning networks; cutting-edge masterclasses in a range of academies; and incisive thought-leadership research, informed by contributions from our network communities.

what works where b2b digital 2016

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