The Best and the Brightest

WHEN THE TOPIC is business-to-business direct marketing, I'm often asked about what kind of response rates to expect, about the most productive media channels, the best lists, the best time to conduct a campaign, the most effective qualification questions. I always answer the same way, much to the frustration of my listener: “It depends.”

But when the subject of the best offer comes up, I don't have to hedge: “It's information.”

Without a doubt, in most B-to-B situations an offer of some kind of information about how to do your job better, how to solve a business problem, or how to save time and money is the one that will drive the best results for direct marketers.

Why? For the same reason that “free trial” is probably the best all-around offer in consumer direct marketing. It combines the three magic ingredients:

1. A strong appeal with high perceived value.

2. An innate ability to qualify the prospect.

3. Relatively low cost and risk.

It attracts, it qualifies and it doesn't break the bank. Bingo. The perfect offer.

But why does information pull so well in business-to-business? Because of the essential character of the business buyer. This person is trying to get a job done. When making purchase decisions, the buyer is thinking about the company and the job as well as his or her own personal benefit.

Information fits the bill perfectly. Think of the myriad benefits information can fulfill for a business buyer:

• Ideas for cutting costs or improving productivity.

• Proof points like testimonials, research reports and case studies.

• Insight into what's working for the competition.

• Data that will help sell the idea internally.

• Fresh content that makes the prospect look good, and smart, and like a valued contributor to the firm.

The most attractive information is very specific, gives immediate assistance on the job and is deeply relevant to the business buyer. Thus, in turn, only businesspeople who actually have that need are likely to respond. This means an innately qualified prospect. Compare the attractiveness of an offer for “10 Tips for Making Your Business More Profitable” to an offer for a free T-shirt. I rest my case.

And the best thing about information offers in an electronic age is the cost: next to nothing. Sure, you can spend money. You do have to write the piece, or otherwise acquire the intellectual property. But when converted to a PDF download from your Web site, the incremental cost per piece is zero. Even when packaged as a book, a CD or video, information is cheap on a cost/benefit basis. The variable production cost may be similar to that T-shirt, but the value perceived by the prospect is far higher.

Of course, “information” is not just an offer. It's a category. Information offers come in all kinds of forms, each with strengths and weaknesses. Let's consider how to get the most out of the leading formats.

White papers

Somewhat abused of late, they're still at the top of the list among powerful information offers. The secret to an effective white paper is value. Make it very specific in title and content. Give them an objective, non-sales-y piece of research that analyzes a business problem and offers potential solutions. If information is included about a product or service, put it in a discreet sidebar.

“10 tips” brochures

Well, it doesn't have to be exactly 10 tips. But the content needs to be short, snappy and easy to skim. Choose a theme that addresses an important pain point and provides real business value. Here are some examples:

• 10 tips for making your business more profitable.

• Seven ways to reduce your accounting expenses.

• The top five strategies for cutting cycle time.

Case studies

Business buyers crave case studies because they make the solution real. A case not only conveys credibility (the product works!) but also offers an inside view of how it works.

Newsletters

Can be delivered in hard copy or electronically. In either case, newsletters make a powerful offer if they're strongly positioned as material that will help readers do their jobs better. Self-serving copy is the kiss of death. The key benefit of a newsletter to marketers is its use as an ongoing communications device. If the content is useful, it's a low-cost way to nurture the customer relationship over time.

The best way to choose among these offers is to map the information to the prospect's stage in the buying process. For example, early on the buyer is analyzing the business problem and researching solutions. At this stage, white papers and research reports are ideal for establishing your credibility as a supplier.

Later in the process, the buyer might be interested in case studies that provide real-life examples of your product at work. Similarly, a product demo may be the perfect offer to move the prospect along.

THE BEST DELIVERY MEDIUM

These days, the PDF download is the most efficient vehicle for delivering information to respondents. But there are still plenty of customers who prefer something tangible. As your competition migrates to downloads, you may find that a video or CD has a newfound appeal.

Information offers work in B-to-B because they help build trust with customers and prospects. Richard Rosen, principal of AlloyRed in Portland OR, observes: “In B-to-B we're usually not asking for the order on the spot. We're allowing customers to develop a comfort level with us. They will come to their own decisions about when and how to buy.”

So these offers are great for relationship building. But what about response? Information offers pull well, over and over. Consider this case from Karen Breen Vogel, president and CEO of ClearGauge, an interactive marketing firm in Chicago: “We have a program running right now for a client that makes two offers — how-to information and an iPod sweepstakes. Both are pulling well, but it's the how-to offer that generates the higher level of opt-in permissions for ongoing marketing communications — and this is the holy grail in B-to-B interactive marketing.”

Howard J. Sewell, president of ConnectDirect, an agency in Silicon Valley that specializes in lead generation for tech companies, echoes the point about response. “We have tested information-based offers against invitations to events like seminars or Webinars, and the information offers typically enjoy double the response compared with events.”

Of course, there's always an exception to the rule. As powerful as information offers are, they don't work particularly well in the executive suite. The senior-most or C-level managers — CEOs, CIOs, CFOs — are less responsive to information offers than their underlings, who, presumably, are the ones gathering information to make a business case for purchase decisions. What works best for the C-level, according to Cyndi Greenglass, president of Diamond Marketing Solutions, Chicago, are premiums. Not the T-shirts, but gadgets and toys, like a set of golf balls or a remote-controlled robot.

But that's the exception. The rule is still the rule: Choose information-based offers to get the best results in B-to-B.

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RUTH P. STEVENS (ruth@ruthstevens.com) consults on customer acquisition and retention, and teaches marketing to graduate students at Columbia Business School. She is the author of “The DMA Lead Generation Handbook” and the recently published “Trade Show and Event Marketing.”

So What Is a White Paper, Anyway?

Originally, “white paper” referred to an internal government document arguing the case for a particular policy decision. In business use, it evolved into a technical document based on primary research, often conducted by a respected third party.

Analysts, consultants and researchers have long published white papers on the latest developments in a certain specific field and made them available (at relatively high prices) to manufacturers and buyers in the industry. From a marketer's point of view, if the researcher's conclusions contain a message that would support future sales, then the marketer might buy the publication in bulk and offer it to customers and prospects as an enticement to begin or deepen a relationship.

In business-to-business marketing white papers always have had a somewhat sketchy past. Traditionally, industry analysts would research and recommend products and solutions, but at the same time turn around and sell their research services to the highest bidder. So an industry manufacturer could commission the production of a favorable white paper for a fee. Somehow, the analysts have managed to maintain their reputation for objectivity despite this obvious conflict of interest.

But things have grown worse in recent years, as companies began producing white papers internally. Simply put, some documents are labeled as white papers but are in fact little more than sales brochures. Business buyers get disillusioned, and the white paper's use as a powerful marketing tool dwindles.
— Ruth P. Stevens.

B-to-B Information Offers That Work

• Article reprints
• Books
• Case studies
• Newsletters
• Product demos
• Research reports
• Seminars or Webinars
• “10 tips” brochures
• Videos or CDs
• White papers