Industrial Marketers Bet More on 2018 Direct & Digital

AccuList USA has a long track record of helping warehouse, industrial and back-office product marketers via data brokerage, predictive analytics and multi-channel direct marketing, and we’ve learned some important lessons along the way.

Industrial & Tech Marketing Budgets Expand in 2018

The good news is that many industrial marketers were inspired to expand investment in 2018. According to the “2018 Budget Trends in Industrial & Technology Marketing” report published by engineering.com, industrial marketing budgets in 2018 are expected to hit “the highest levels of growth (45%) and the lowest reported levels of shrinking budgets (4%), of any of the last five years.” More than half (54%) of manufacturing marketers expect their budget to be larger in 2018.

Quality, Targeted Data Is Key to B2B Direct Marketing

But expanded multi-channel spending still needs to be smart spending. As data brokers, we can’t overemphasize that successful B2B direct marketing–including direct mail, print catalogs and e-mail campaigns–starts with quality, targeted data. Marketers can boost response by using predictive analytics and buyer profiles to target–and then opt for the rental lists of active product inquirers/buyers that our proprietary list research finds to be top performers in each vertical. Targeting the right message to decision-makers in the buying process is also key; with product and industry factors affecting whether to select a chief engineer, purchasing manager, warehouse manager, human resources chief, or C-suite executive in mailing lists.

A Digital Strategy Is Now Essential for Leads and Sales

While direct mail continues its response leadership, there’s no denying that most B2B buyers are digital shoppers today. Research by Acquity Group finds 94% of B2B buyers say they conduct some form of online research before purchasing a business product, for example. Forrester Research has found that 59% of B2B buyers prefer not to interact with a sales rep, and 74% find buying from a website more convenient. That makes digital catalog sites into essential sales tools, giving customers the option to browse product, pricing, and inventory information in real-time and then self-serve. Of course, online traffic-building requires a good search engine optimization (SEO) strategy given that 73% of global traffic to B2B companies comes from search engine results. But most successful B2B marketers also invest in paid digital efforts. In fact, a 2015 study by Content Marketing Institute, MarketingProfs, and Fathom found that manufacturers ranked search engine marketing highest among paid marketing options in terms of efficacy (52%) and promoted social media posts came in second (39%).  For social media ads, B2B marketers see video as a top response tactic, which is why manufacturers in the study ranked YouTube as the most effective social media site, followed by LinkedIn ads, which AccuList USA supports. Take a deeper dive into the core elements of digital industrial marketing with this post by gorilla76, a B2B consulting firm.

 

 

 

B2B Sales Trends Boost Mobile-Friendly Online Acquisition

With Forrester Research forecasting steady growth in B2B e-commerce, reaching $1.2 trillion in sales, or 13.1% of all B2B sales, by 2021, smart e-commerce marketing is more essential than ever for AccuList USA’s B2B catalog and e-commerce clients. A recent bigcommerce.com blog post highlighted many important trends for B2B e-commerce, but we’ll focus on three marketing-related takeaways.

Acquisition Is the New Online Focus

The days are gone when B2B online strategy could succeed by putting up a website as a customer service portal, a place for existing account re-orders or a passive catalog display. Online selling is becoming a core part of B2B business and sales strategy, argues bigcommerce.com post author Jillian Hufford, marketing analyst at nChannel, a multi-channel integration provider. B2B marketers should start by profiling customers to better target online and offline promotions to find high-ROI traffic. Note that a robust SEO/SEM strategy, coupled with website search tools, is essential given that 74% of B2B buyers report researching at least part of their work purchases online. Easy, seamless cross-channel ordering is another basic of online customer acquisition now. Plus, an investment in online content marketing, coupled with SEO strategy, can leverage educational and expert content on the website to attract searchers and win Google rank.

Online and Print Catalogs Work in Tandem

Five years ago, more than two-thirds of B2B sellers thought they would stop mailing paper catalogs. That hasn’t happened, but many B2B merchants are using an integrated multi-channel effort to balance smaller or less frequent print catalogs with more interactive online catalogs. For success with print-plus-online, the online catalog cannot merely mimic the print version. E-commerce means investing in interactive online tools that allow customizing, sharing, distributing, ordering and tracking, all supported by integrated back-end technology.

Mobile-Friendly Means Revenue-Friendly

Ever-expanding B2B mobile use is driving big marketing changes. Google and BCG research data from 2017 shows why: 80% of B2B buyers are using mobile at work; 60% of B2B buyers report that mobile played a significant role in a recent purchase; and 60% of B2B buyers expect to continue to increase their mobile usage. B2B retailers who are dragging their feet on mobile-friendly adaptation risk dragging down their own revenues; BCG research found that brands that are “mobile leaders” earn more traffic, more leads and more revenue than “mobile laggards.”

For more B2B e-commerce trends, and examples of real-life company online successes, see Hufford’s attached blog post.

Demographic Trends Drive Growth in Pet-Owner Spending

Direct mail and e-mail lists and data services targeting pet owners are one of AccuList USA’s high-demand markets, and we expect trends in pet ownership to grow that marketing interest–and the competition that makes quality data and targeting even more essential.

Demographics Fuel Pet-Owner Spending

A recent post for The Marketing Insider highlights the demographic trends that are making pet owners such attractive targets: “Americans now own 305 million cats and dogs, an increase of 85 million over the past 10 years. The  50+ demographic is responsible for 60% of that growth. With 50+ population expected to grow twice as rapidly as the 18-49 segment over the next 10 years, brands that include 50+ pet owners in their marketing strategies will improve their odds of maximizing revenue growth,” asserts columnist Mark Bradbury.

Older Pet Owners Offer Big Opportunities

Bradbury makes the point that marketers hoping to cash in on the older pet-owning market will need to adjust their buyer profiles given that 50+ pet owners are mainly empty-nesters (80%), retired (one-in-three), and three times more likely than younger pet owners to be divorced, widowed or separated–leaving more time and disposable income to devote to pet members of the family. Bradbury points to statistical proof that older owners are on a pet-spending splurge: People 50+ spent over $15.6 billion on their pets in the last year, more than all of the other generations combined, according to PetBusinessProfessor.com.

Growing Market Also Draws Big Competition

The opportunity to market pet-pampering products is expanding, but so is the competition for slices of the pet-owner pie. Using marketing tactics of the past may either miss the mark with the older generation of pet owners, or get lost in the crowd vying for their attention. Bradbury suggests several tactics that put the focus squarely on the growing Baby Boomer pet market, including messaging that celebrates a pet-centric Boomer life stage. Multi-channel campaigning is a must for this market as well. In addition to digital marketing via online, social and e-mail, Boomers are also still heavy users, and responders, of direct mail, magazines and television, Bradbury points out. “Synergistic cross-media marketing plans” are required to maximize reach at every stage in the purchase funnel, he advises. Plus, though Boomers like to spend to dote on their pets, they also want to spend wisely and are attracted to savings opportunities. Direct marketers will want to include discounts or loyalty reward programs to win brand fans.

For more of Bradbury’s pet marketing suggestions, see https://www.mediapost.com/publications/article/314521/the-inside-track-on-the-booming-pet-market.html