What Pre 2023 looked like
A Paradigm Shift in Capital Allocation for Marketing and Sales
Before delving into the current state of the economy and the macro environment of business post-2023, it is important to understand the landscape that existed prior to this pivotal year.
In the years leading up to 2023, businesses enjoyed a favorable environment characterized by excess capital, excessive employee counts, minimal concerns about profitability, the gradual integration of AI into mainstream operations, and the ongoing recovery from the disruptive effects of the COVID-19 pandemic.
Inflationary pressures had yet to manifest fully, and the need to adapt to the emerging “great reset” had not yet become a pressing requirement.
However, this idyllic scenario would soon undergo a significant transformation, forcing companies to reassess their strategies for marketing and sales capital allocation.
The Changing Macroeconomic Landscape
Fast forward to post-2023, and things aren’t the same anymore.
The economic landscape has gone through a serious makeover, and it brought some challenges and opportunities along for the ride.
That excess capital many companies were swimming in?
Well, it seems to have dried up.
Companies had to get creative and find new ways to grow.
Remember those companies that had aggressive hiring plans & higher than sustainable employee counts?
All of these headcounts have gotten placed under a microscope.
Unfortunately, you may know someone who was effected by the resent layoffs.
Seeming, profitability has became a big deal, and businesses had to figure out how to make their workforce more productive.
Automation and AI has become a big time player in the game, helping companies streamline their operations and cut down on labor costs.
Companies are working smarter with the resources that are available.
And let’s not forget about AI itself. Post-2023, it blew up big time! It went from being a quirky little thing to an essential part of every business strategy.
Companies were using AI to supercharge their marketing and sales efforts.
Personalized experiences, smarter insights, and all that jazz.
If you weren’t on the AI train, you were getting left in the dust.
Oh, and inflation? Yeah, it started hitting hard.
Prices went up, supply chains got wonky, and customers changed their spending habits.
It was a wild ride for businesses trying to manage costs while keeping their edge in the market.
Price adjustments, supply chain revamps, and rethinking sourcing strategies became the name of the game.
And finally, the great reset.
It became a big deal. The COVID-19 pandemic shook things up real good, and businesses had to adapt.
Suddenly, sustainability, resilience, and social responsibility were hot topics.
Customers wanted companies to do the right thing, so businesses started incorporating eco-friendly and ethical practices into their marketing and sales efforts.
Efficiency and productivity are at an all time high. Meaning there are new challenges and new opportunities to grow or fall behind.
The reality we’re now living.
The Problem:
Same outcomes but less resources
This is where we have to face the moment of clarity.
The reality we’re now living in post-2023 has thrown us some curveballs.
One of the biggest challenges?
Trying to achieve the same outcomes, goals, & KPIs with fewer resources.
It’s like trying to pull off a magic trick without the full deck of cards.
In the Pre-2023 era, companies were swimming in excess capital, allowing them to go big, bold, & bloated.
But now, the macro environment has contracted, and that efficiency & offensive have become a priority.
However, the pressure remains to deliver exceptional results.
Not easy, but do-able with the right strategy.
But here’s the thing: challenges like these can spark innovation and force us to be more strategic in our approaches.
When faced with limited resources, we have to dig deep, get creative, and find new ways to achieve those same outcomes.
We learn to max the impact of every dollar spent, decision, and making every resource count.
Capital allocation for advertising
When it comes to capital allocation, advertising holds a crucial role.
But in this new normal, where resources are scarcer, companies need to be strategic in how they allocate their precious capital.
Top of Funnel performance matter’s for Awareness level metrics.
Middle of Funnel performance should aim to reduce the Apathy (Uninterested Qualified Prospect) to Action (Interested Sales Qualified Opportunity) time & cost threshold to as short & little as possible.
But Bottom of Funnel performance drives profitability and company decision making.
There are many steps in each phase of the funnel. But these funnel pillars listed above should help you better understand how to judge performance at each phase.
Tech businesses with complex sales cycles must analyze the ROI of their advertising efforts and determine which channels and strategies provide the biggest ROI, not just ROAS (return on Advertising spend).
But it’s not just about where you allocate your capital; it’s about how you allocate it.
The key is finding the sweet spot that maximizes both short-term profitability and long-term growth potential.
It’s a delicate balancing act, but one that can lead to sustainable success.
In this new era, precision is paramount.
In order to identify the channels that generate the highest returns and prioritize those channels; you need to have the marketing operations & tracking tight at each step.
This requires both last touch and multi-touch attribution integrations.
(I won’t go into which platforms to use for this, but leave me a message or comment and I can make a separate post on my recommendations)
Continually testing, monitoring, & optimize campaigns (pruning & launching), will make sure your continually taking enough marketing risks to grow.
So, my dear tech teams with innovative agricultural, alternative energy, & high science product offerings, buckle up and embrace the challenge.
We may have fewer resources, but we have the opportunity to become even more strategic, efficient, and innovative in our capital allocation for advertising.
The Solution:
Customer Generation for Green Tech
I’ve written about Customer Generation in the strategy in more depth in my complete playbook linked here.
But the general premise of Customer Generation strategy that I’ve Rewritten about is what I’ve used to help grow clients with multi-millions in Net New Customers & Sales opportunity.
This is a strategy that I’ve blended from the great works of Marketing leaders such as Directive Consulting’s take on Customer Generation, MutinyHQ’s approach to scaled conversion optimization, SalesProcess.io’s perspective on capital efficiency, & many other marketing leaders to fit specifically for Green Technology, Agricultural tech, & Clean tech companies.
Principle 1: Customer-Led Marketing Leads to Finding Market Message Resonance, Fast.
In the dynamic world of complex sales cycles, it’s crucial to let your customers guide your marketing efforts.
By truly understanding their needs, pain points, and aspirations, you can tailor your messaging to resonate with them on a deeper level.
Customer-led marketing means going beyond the surface and diving into their world to deliver relevant and compelling messages that capture their attention.
This customer-centric approach ensures that your marketing efforts hit the mark, allowing you to connect with potential buyers swiftly and effectively.
Principle 2: Shorten Sales Cycles by Leveraging Technology & 1st Party Data. This Drives Profitability.
Time is money, my friend, and when it comes to complex sales cycles, every moment counts.
By leveraging technology and harnessing the power of first-party data, you can compress your sales cycles and boost profitability.
Automation tools, data analytics, and customer relationship management platforms are your secret weapons in this game.
They help you track and understand your prospects’ behaviors, preferences, and engagement patterns, allowing you to deliver personalized experiences and relevant offers at the right time.
This not only accelerates the sales process but also helps you maximize your profits along the way.
Principle 3: Financial Modeling per Channel Keeps You Profitable.
LTV > MQL. (Follow the Money)
Let’s talk about the cold, hard cash, my friend.
To ensure profitability, it’s essential to develop a robust financial modeling strategy for each marketing channel you utilize.
Understanding the lifetime value (LTV) of your customers compared to the cost of acquiring a marketing-qualified lead (MQL) is crucial.
By following the money and constantly evaluating the return on investment (ROI) of your marketing efforts, you can allocate your resources effectively and focus on channels that bring in the highest value customers.
It’s all about making smart financial decisions to keep your business in the green.
Principle 4: Emotional Customer Experiences Make You a Leader, Not Just Thought Leadership. Forget B2B.
Who says emotions are only for B2C marketing?
In the world of complex sales, emotional triggers can be your secret weapon.
Remember, there’s a human being on the other end of your advertisements, someone with their own unique set of challenges and aspirations.
To truly stand out as a leader, you need to tap into their emotions, build authority, and provide educational value.
Whether it’s a branch manager juggling work and family responsibilities or a CIO dealing with the complexities of software integration, understanding their pain points and crafting emotionally resonant content will set you apart from the competition.
Principle 5: Rigorous Execution of the Fundamentals of Daily Interactions, Constant Iterations & Testing, & Killing Bottlenecks as You Grow.
Consistency & testing are key.
To succeed in customer generation, you need to be on top of your game every day.
It’s about executing the fundamentals flawlessly, constantly iterating and testing your strategies, and eliminating any bottlenecks that may hinder your growth.
Be proactive, stay agile, and adapt to the ever-changing landscape.
What works today may not work tomorrow, so it’s essential to keep pushing the boundaries, experimenting, and fine-tuning your approach to stay ahead of the curve.
Continuous improvement is the name of the game.
CPM level efficiency
When it comes to marketing, judging your performance at the CPM level can be a game-changer.
By analyzing your Cost Per Thousand impressions (CPM), you can gauge how efficiently you’re articulating your brand’s messaging and compressing the time in the sales cycle.
We call this “funnel velocity,” and it’s all about moving prospects from apathy to action when they encounter your advertisements.
To achieve your goals through customer generation, it’s crucial to measure what it takes for you to get a qualified sales opportunity at the CPM level.
As ad platforms become increasingly saturated, optimizing your targeting, leveraging data effectively, and refining your offer messaging at the CPM level become the keys to success.
Ultimately, your goal is not just success but also profitability.
Understanding the true economics at the CPM level requires having solid financial modeling in place.
It’s about crunching the numbers, stress-testing your models, and analyzing your current CRM metrics to gain insights into the profitability of different customer acquisition costs (CAC).
Sometimes, customers with higher CAC can turn out to be the most profitable spenders, and having a clear understanding of your financials empowers you to make informed decisions.
Articulating brand value
This is rather difficult for high tech science, agriculture, & alternative energy solutions companies due to the nature of the solution sets.
However, when it comes to articulating your brand voice, it all starts with knowing your Ideal Customer Profile (ICP).
This goes beyond simply targeting an entire business; it’s about recognizing that behind every interaction, there’s an individual with their own unique challenges and aspirations.
To truly connect with your audience, you need to produce content that is emotional, authoritative, and carries educational utility.
Emotions are powerful drivers of decision-making, even in B2B advertising.
Think about all your interaction efforts as People 2 People.
By understanding the emotional triggers that resonate with your ICP, you can craft messages that touch their hearts, establish your brand as a thought leader, and provide real value in solving their problems.
Moving from apathy to action
From apathy to action – that’s the name of the game.
You want to transform prospects who initially show no interest in your brand into eager customers who take action on your sales offers.
How do you achieve this?
It’s all about crafting irresistible offers, creating compelling advertisements, and implementing well-structured funnels.
Your offers need to be spot-on to entice someone to take the time out of their busy day and engage with your brand.
Funnel technology becomes your ally in the appointment-setting process, allowing you to compress the time it takes to secure a spot on your calendar.
Advanced logic and tools such as LinkedIn Conversation ads, Marquiz.io for qualifying questions, and Chili-piper for instant appointment setting can streamline your funnel and ensure that the right leads are passed to the right Sales Development Reps.
Customer generation in 2023 for complex sales cycles requires a deep understanding of your customers, rigorous financial modeling, emotional brand articulation, and a relentless drive to move prospects from apathy to action.
By implementing these principles and constantly refining your strategies, you’ll be well on your way to generating profitable customer relationships and driving business growth.
Conclusion:
Benefits of Customer Generation for Green Tech
The post-2023 macroeconomic landscape has challenges but also pockets of opportunity.
Adopting this Customer Generation strategy holds strategic advantages for companies like yours.
By putting the Customer at the center of your marketing efforts, you can achieve market message resonance faster, shorten sales cycles, drive profitability, articulate your brand value effectively, and move prospects from apathy to action.
These benefits ultimately lead to increased customer acquisition, stronger customer relationships, and sustainable business growth.
Final thoughts
The current business environment demands agility, adaptability, and creativity in marketing and sales capital allocation.
It’s no longer about excess capital and unlimited resources; it’s about maximizing the impact of every dollar spent and making each resource count.
By implementing the principles of customer generation, businesses can navigate the changing landscape, connect with their target audience, drive profitability, and achieve sustainable growth.
Did you find this content helpful?
Let me know in the comments and I can make similar types of post or expand upon a topic that you may find of great use.
Until the next post, all bests & as always: happy growing 💎
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