B2B Social Media Lead Generation: 5 Opportunities Meet 5 Challenges.

This past week I had a reporter interview me about "lead generation in this new era of marketing," and the reporter was specifically interested in focusing on the (1) opportunities and (2) challenges for companies. (the article is here at Inc. Magazine).

It's a great subject, and an important one for B2Bs who must generate, qualify and close business leads so as to ensure the viability of their companies. And it got me thinking... and inspired this post.

I'm going to run down what I see as the 5 biggest opportunities and 5 biggest challenges for B2B lead generation in a 2.0 world. And then I'd love to know your thoughts. Tell me what I've missed or mistaken; after all, we're here to learn from one another.

Biggest Opportunities:
Through Web 2.0 technologies there are tremendous opportunities for Lead Generation, namely:

#1: A great “leveler.” Through social media, small and medium-sized businesses can now afford the same media used by big companies, so this opens an affordable, effective lead-generation channel for SMBs. But, that being said, all companies need to understand that what they save in dollars they trade-off in time as these media need constant attention and new content. No autopilot here.

#2: Building relationships that beget revenues. Through two-way communications tools that facilitate knowledge sharing, professional networking, and problem solving, companies can leverage social media to build strong relationships--and relationships will always be core to B2B lead generation efforts. And then B2Bs can grow those relationships into revenues for their organizations. 

#3: Efficient way to create leads... who in turn, create more leads. By building relationships with prospects and customers, companies also increase the chance that their target audiences will use these tools to spread/amplify favorable online word-of-mouth (WOM) about their brands. Online WOM is especially critical given that buyers are avidly using social media to research feedback from other professionals before making purchases. And where offline WOM can reach 10 people, online WOM can reach 10,000.

#4: Influencing purchasing decisions. When making purchases, professionals have always relied on third-party feedback and that has not changed—but the *way* that professionals conduct their pre-purchasing research and *who* influences their decisions has undergone dramatic transformation. In the past, customers looked for product feedback from press and analysts as well as professionals that they knew, but now they take to the Web and seek online opinions shared from other professionals, who they may not know yet, before they make purchases... and that feedback significantly influences their purchasing decisions. This changes the way that business is done because now we have new voices in the business process--and for companies who are delivering great offerings and experiences, this is a huge opportunity. (You’ll see how this is also a challenge for companies as I discuss in the next section.)

#5: Increasing Reach. Through social media and the social web, companies now have access to a world of new markets and new customers. And while many companies might not be able to increase their physical footprint due to prohibitive costs, they can afford to increase their digital footprint and reach new markets in new regions.

Biggest Challenges:
And the major challenges for B2B companies transitioning to Web 2.0 technologies for Lead Generation entail:

#1: Learning how to use these tools well (and as a support to strategy--not before it!). Far too many companies are placing tools ahead of strategy, it's the darndest thing. All they know is that they “Need to be on Facebook... STAT!” but don’t have clearly defined goals or a differentiated strategy for so doing. Here's the irony: With social media, the tools are simple, but the complex, customer-led online landscape is wholly complex and companies face a great challenge in learning the new practices and new rules. Net net: it’s critical that companies set a strong strategy and learn the new rules and practices of the social web before they start implementing programs—otherwise they sink instead of soar.

#2: Signal vs. Noise: How to stand out from the clutter. When every company can afford these new media (a huge opportunity), the challenge is how to stand out from the crowd, or produce the highest signal amidst the noise. This speaks to strategy, differentiation, understanding one’s audience and grasping how to communicate with prospects.

#3: Providing value BEFORE the sale. Marketers have to learn how to extend value to online communities before they work to extract value from them. In "old world" marketing, the value was provided in buying the product but now marketers' online programs need to create distinct-but-complementary value in addition to the product's value.

#4: Learning how to “sell without selling.” Companies have to learn a two-way, conversation-oriented exchange rather than the one-way perfectly worded sales pitch that they’ve become accustomed to delivering for decades. To be sure, it’s a learning curve but in pays in spades.

#5: Letting go of control over brands. Customers can now publicly voice their opinions and experiences (be those opinions positive or negative), so companies have to understand that all of their messaging and branding will no longer be in their full control. In sum, companies who are (1) ensuring high product quality + (2) providing superior customer service + (3) promoting true product claims (not inflating or deceiving their customer audiences) will do remarkably well. But companies who are not delivering on these 3 fronts will face tremendous challenges--because their customers will publicly set the record straight. (This is what I call the “New Transparency.”). All of the 3 areas I've outlined are, however, within the company's full control.

So... what say you, marketers? What opportunities and challenges did I miss? Or, what is important to add? I'm all ears.

*B2B Bonus* For a collection of 20 helpful B2B social media posts, presentations and series that no modern-day B2B marketer should market without, just go here!

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B2B Social Media • Social Media *Extras* • Social Media Training • Contact CK

Comments

[Mark W Schaefer]

Since this is probably the definitive blog post on B2B lead generation opportunities and challenges there is very little to add. : )

I would like to congratulate you however on using the word "beget" in a post. Makes your post almost seem Biblical. Using "beget" has long been a personal goal of mine so to see it used legitimately is nothing short of inspiration.

I am also working on viable applications for "woozy" "brouhaha" and "Oedipal." While they may not seem like a logical fit for a marketing blog, I am undeterred.

Once again, you are my marketing muse.

[Ricky]

The primary concerns I hear in the particular B2B space I approach are SEC issues and industrial espionage to the extent it has the ability to impact stock price. These are corporations who can barely create traditional advertising and PR without a cadre of attorneys and marcom professionals signing off; a process that is arguable anti-social.

[Eric Goldman]

Great post CK - thanks! I liked the 10 points a great deal. Three things I would add:
1) No one piece of technology and no one approach will yield maximum benefits. To generate the highest possible number of leads to your site, one needs a combination of SEO,Social Media Marketing (SMM) and PPC, as well as any other forms of more traditional, offline, activities such as Press Releases, Trade Shows, etc.
1) Design your SEO and SMM campaigns as carefully as if you were going to spend a fortune on making them work. While these two online lead generation technologies are touted as "free", they both need to be done well to work and doing anything well requires time, and time is money. The "placement fee" may well be zero for both SEO and SMM, but the cost of setting up your SEO campaign is not. Budget a few thousand dollars to hire a good person to do both the Marketing Strategy element, and the technical Keyword Selection piece of the SEO strategy for you. And the cost of running a SMM campaign is a large investment in time and may also involve some software licences for tools. If your executives are going to blog and perhaps even tweet, as they really should to derive maximum benefit, you will want to ensure that the time is well spent. More on how to do this below.
2) Make sure you specify your objectives by designing a set of Metrics, and then measure your performance to make sure you are achieving your goals.
3) And one of the key metrics people would like to use but usually feel that they can't, is Return on Marketing Investment, or ROMI.
Tired of hearing from large numbers of people how it's impossible to calculate ROMI for marketing purposes, and especially for a SMM campaign, we compiled 3 blog posts to help people solve this issue. These techniques sacrifice total accuracy for ease of use, yet work well enough to use with confidence:
1) How to calculate the ROMI of your website as a whole: http://bit.ly/6bFSvs
2) A list of the 10 best free ROI calculators on the web: http://bit.ly/7fwBkF
3) How to build your own ROI calculator (perhaps for your social media campaign): http://bit.ly/6IGZQh
I don't want to paste yet another link in here for fear of being seen as a spammer, but our blog also has a good post on how to design a B2B SMM campaign. The post has received a fair amount of attention because it shows you just how to leap in and get started with your own SMM campaign. Just look for "How to run a SMM Campaign" on the blog.

[New Business Sales Leads]

Excellent Article. This great article is very important for those person who wants to get knowledge about lead generation.

[leadpile com]

Great post CK - thanks! I liked the some points a great deal. Some things I would add:
1) No one piece of technology and no one approach will yield maximum benefits. To generate the highest possible number of leads to your site, one needs a combination of SEO,Social Media Marketing (SMM) and PPC, as well as any other forms of more traditional, offline, activities such as Press Releases, Trade Shows, etc.
1) Make sure you specify your objectives by designing a set of Metrics, and then measure your performance to make sure you are achieving your goals.
2) One of the key metrics people would like to use but usually feel that they can't, is Return on Marketing Investment, or ROMI.