Growth Stratagies
January 16, 2024
Written by Rachid Ehabi
My thoughts on the current state of B2B Marketing
Marketing doesn't change as fast as people think. If you flip through old books, you might be surprised to find that what worked 50 years ago can still work today. Sure, the platforms change all the time, and you need to keep up with the latest updates. I could talk for hours about the changes in different channels—important stuff. But, in the end, people and how they think stay the same, and that's what really matters. Instead of spending all your time and energy on understanding the mechanics of the platform, focus your time and attention on things that are not going to change - human psychology and understanding how people act online.
Predicting what's coming in marketing next year is like trying to guess the weather - it's uncertain, but one thing is for sure: things will change. Some people will benefit a lot from these changes, while others might face challenges. How you react to these changes is key.
The strategies, tools, and the whole marketing scene are always changing. If you stick to the same plan this year without adapting, it might not work well in a year or two. On the bright side, there are big advantages for those who try new ideas, test different methods, and keep learning
Companies struggling to grow today might be stuck using old strategies from a few years ago, making it hard for them to progress. The winners in the next few years will be the ones taking risks now, trying out new ideas and methods that other companies haven't flooded yet.
Take a good look at your strategies and ask yourself where you'll be in the next two years. The answer is crucial. Despite all the changes, some things in marketing stay the same. Success in any new idea or technology still relies on understanding people, telling a good story, and using persuasion concepts. These principles are like a guide for marketers, helping them navigate the uncertainties and aim for lasting success.
Here are a few areas where people will lean more towards:
1. Companies will increasingly embrace B2C strategies and move away from traditional Cold Outbound methods.
While cold email and LinkedIn outreach still have some effectiveness, their once crucial role in growth has dwindled due to the yearly oversaturation, a common issue in marketing channels.
As highlighted by Andrew Chen's "The Law of Shitty Clickthroughs," all marketing strategies eventually face diminishing returns.
Emerging channels like short-form content on social media (such as short videos, Reels/TikTok), founder-driven longer video content (vlogs, building in public), and collaborations with B2B influencers (primarily on Linkedin and YouTube) are gaining traction.
This suggests that now is an opportune time for businesses to implement these strategies to generate and capture demand, as the momentum is strong.
Regardless of whether you're in B2B or B2C, your audience is composed of individuals who engage with content on platforms like Instagram during their commute. B2B companies can gain valuable insights from B2C and experiment with these more "modern" channels in their acquisition strategies.
However, it's crucial to consider that metrics such as volumes, average revenue per customer, CAC, and LTV differ significantly between B2B and B2C. Therefore, any B2B business venturing into a new channel should carefully assess whether it aligns with its specific model.
2. A shift towards Product-Led Growth and a decline in traditional sales-led models.
Product-led growth has been rising.
Product-led growth revolves around positioning the product as the primary driver of growth, retention, and revenue. Focusing on areas such as:
The self-serve for easy product trials
Freemium or free trial business models
Strong focus on engagement and retention.
This shift requires individuals to master growth through the product rather than relying solely on marketing campaigns, where lead generation for sales.
This shows a pivot towards prioritising revenue and retention over acquisition as the main growth metrics. In the past, it was about aggressive acquisition strategies,
Those tactics can be:
Creating easy onboarding processes to get more people using and engaged with the product.
Planning CRM sequences that guide users through the product experience and knowing when to suggest upgrading to paid plans.
Prioritising PQL (product-qualified leads) instead of SQL or MQL
Improving the way users pay to make more revenue from your current customers
In tough economic times, companies are shifting their focus to boost customer value through improved retention and increased revenue. The emphasis is changing from "How many customers can I get this year?" to "How can I maximise revenue by optimising relationships with new and existing customers?"
3. Profitable Growth > Hypergrowth
We're seeing a big change from focusing on "Hypergrowth" to a more sustainable approach known as "Profitable Growth." The tech world was significantly affected by inflation, high interest rates, and geopolitical events, leading to less fundraising.
Now, the main goal for most companies is to achieve "Profitable Growth," which is probably a good thing. Lessons learned from 2021-2022 have made startups rethink their growth strategies, emphasising the need for a clear path to profitability.
How to do this?
Market Mastery - companies don't have a traffic problem, they have a conversion problem. While acquiring traffic may seem as simple as investing money in various platforms, the real challenge lies in pinpointing a lucrative channel. The difficulty lies in effectively blending this channel with a resonant message and a scalable conversion mechanism for consistent and predictable growth.
The key is Market-Message-Resonance
The challenge is that many companies find it difficult to achieve resonance and effectively dominate their market. Instead, they often choose to conform to the status quo and draw inspiration from their competitors. This leads to a market saturated with product duplicates.
With similar features, pricing, and messaging all aimed at the same audience, the market becomes flooded with uniform offerings. Potential buyers grow indifferent to the repetitive messages echoed by the entire market, prompting them to seek alternatives.
Our brains make thousands of decisions each day, constantly checking information through our senses to see if it's a threat. New stuff grabs more attention because we haven't looked at it before, so it might be risky. On the other hand, we tend to ignore things that are familiar or repetitive because we've already deemed them safe.
In marketing, this means if you use the same message and tactics as everyone else, you're more likely to be ignored. Even if your product is fantastic, without grabbing attention, you'll struggle to connect with new audiences.
This leads to fewer clicks, less attention, and ultimately, fewer people buying your product.
This is mentioned in The Law of shitty clickthroughs
Getting it done with Full-funnel distribution
Uncovering market-message-resonance is just a part of the puzzle; the real money comes from effective distribution.
Simply throwing money at problems won't guarantee profitability. While it can work, it's time-consuming, costly, and manpower-intensive. This model suits linear growth and encourages short-term thinking, focusing on generating low-quality leads rather than accelerating sales.
The future is about being lean and quick, prioritising exponential growth without the need for massive sales teams.
Outbound methods are just one piece of the larger puzzle. However, inboxes are more crowded than ever, making this a challenging method of distribution. It demands high volume to be effective, and the basics still matter: you need an offer the market desires and must be skilled in writing compelling copy.
You need to express your offer in both written and visual form and repeat it as much as you can in as many modes and through as many mediums as you can.
Examples of companies that are everywhere:
With the rising costs of ad platforms and the ever-changing algorithms, it's wise to diversify and seek a match between your message and various channels. This approach isn't just about risk management but also maximising profitability. If you can't confirm success with a receptive audience (like one you already own), it's doubtful that it will scale with unfamiliar, cold traffic.
Once you pinpoint what resonates, scaling it with paid traffic becomes feasible. Whether you take the lead as a founder or enlist creators to handle it, the key is finding that effective message-channel combination.
Once you do that, you scale with paid with a structure like this:
Diversify your offer across various formats, experimenting with different approaches until you strike a chord. Once you identify what resonates, amplify it through full funnel distribution strategies.
Transform a single concept into multiple assets. Identify what resonates most with your audience. This significantly boosts the likelihood of a qualified lead progressing along the conversion journey, leveling up from 0 (not interested) to 10 (sold) as they're already warm and educated due to the relationship that's been formed.
Your offer is the foundation of your growth strategy, acting as the ultimate guide. It draws in cold audiences and converts warm leads, adapting and evolving with every new piece of feedback from the market and algorithm. It is a living, breathing entity, continually updated to stay relevant.
This force takes on different shapes – headlines, emails, ads, written posts, videos, and sales scripts. It captures the core of your market research and the fundamental nature of your product.
What happens when you do this?
Over time, you establish a continuous distribution system for your offer, running 24/7, 365 days a year. The results grow exponentially as the world shifts from traditional search methods to exploring alternative platforms for information. Your outbound efforts receive a boost because, before prospects decide to respond or delete your email, they conduct research on you and your company in an attempt to dismiss you. Distributing valuable content instantly positions you as an authority and builds credibility.
Consider two companies, A and B, both making similar claims. However, if company A has consistently focused on a particular topic, adding value to the market over an extended period, and supports their claims with evidence, company A will emerge as the clear winner every time. It's not even a close competition.
Checklist for Success:
Comprehensive full-funnel distribution strategy
Implement push and pull performance marketing tactics
Establish a feedback loop for ad creative, refining it to a science
Conduct rapid testing to let the algorithm reveal what works
Utilise cold-friendly offers to engage less aware audiences
Ensure a bulletproof onboarding process
Provide expert training and resources
Analyse funnel data to identify bottlenecks and leaks
Maintain solid CRM operations
Engage in continuous growth sprints through the cycle of research, hypothesise, validate, and learn
Conduct multi-funnel testing for diverse approaches
Leverage Predictive Analytics to identify key activation drivers
Summary
Predicting the future in marketing is challenging, but inevitable change is certain. Adapting to these changes is crucial for success. The marketing landscape, tools, and strategies evolve continuously, making it essential for companies to experiment with new ideas and methods.
Key areas of focus for the future include:
Shift to B2C Strategies: Companies are moving away from traditional Cold Outbound methods, embracing short-form content on social media, founder-driven video content, and collaborations with B2B influencers.
Rise of Product-Led Growth: A shift towards prioritising revenue and retention over aggressive acquisition, with a focus on easy product trials, freemium models, and engagement strategies.
Emphasis on Profitable Growth: A move from hyper-growth to sustainable and profitable growth, emphasising market-message-resonance and effective distribution for consistent and predictable growth.
TL;DR:
Marketing is always changing, and adapting to new ideas is key for success.
Focus areas include a shift to B2C strategies, embracing product-led growth, and prioritising profitable growth over hypergrowth.
Success lies in understanding people, telling a compelling story, and using persuasion concepts.
A checklist for success involves a comprehensive full-funnel distribution strategy, push and pull performance marketing tactics, and leveraging predictive analytics for key activation drivers.
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