How to Create a SMarketing Service Level Agreement

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At most companies, it can feel like marketing and sales are far from being on the same team. According to the 2017 State of Inbound report, fewer than half of marketers would describe their respective companies’ Sales and Marketing teams as “generally aligned.”

And that’s a problem.

Here at HubSpot, we’re lucky to have a strong, healthy relationship between marketing and sales. Our marketing and sales executives started out on the same team in the company’s earliest days, and that collaboration has trickled down throughout the organization as it continues to grow. But it wasn’t just luck, of course.

That alignment — which we call “Smarketing” — is largely the result of a conscious decision to work together, set goals, and create agreements between both teams.

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One of the most critical steps, it turns out, is creating a service level agreement (SLA). Traditionally, an SLA serves to clearly define exactly what a customer will receive from a service provider.

But we suggest creating a Sales and Marketing SLA: An agreement that details both marketing goals (like number of leads or revenue pipeline) and the sales activities that will follow and support them, like following up on leads qualified by marketing. Both teams use this document as a commitment to support each other, based on concrete, numerical goals. And guess what — 81% of marketers whose companies have this type of SLA have an effective marketing strategy.

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Data from the 2017 State of Inbound Report

But if you don’t have a Sales and Marketing SLA in place, fear not: We’ve outlined four steps to create one below, as well as ways to get started on aligning your sales and marketing teams.

How to Create a Sales & Marketing Service Level Agreement

Aligning Marketing and Sales

Before you begin to draft your SLA, you’ll have to make sure your Sales and Marketing teams are aligned — or, as we put it before, achieve harmonious Smarketing. That’s accomplished in two main parts.

1) Have Marketing commit to a number.

As a marketing department, not only should you have a concrete strategy and reporting goal, but also, you should have a concrete numerical one that aligns with the sales team’s mentality.

Sales professionals are greatly driven by their quotas — the numerical goals that correlate with their compensation and job security. If Marketing commits to a similar, related numerical goal, it shows that the team is being held accountable in a manner similar to Sales.

2) Communicate, celebrate, and address the achievement — or lack thereof.

Maintaining strong communication regarding how each team is performing on goals boosts transparency. If either team isn’t reaching their goals, addressing that confirms their importance, while celebrating hitting those goals can aid motivation.

If you’re not sure where to begin when it comes to setting these goals, check out our free Marketing & Sales Lead Goal Calculator, designed to help you determine and track the goals that will eventually become part of your SLA.

How to Make an SLA

1) Calculate the Marketing Figures and Goals

In order to calculate the marketing side of your SLA, you’ll need the following four metrics:

  • Total sales goal (in terms of revenue quota)
  • % of revenue that comes from marketing-generated leads (as opposed to sales-generated ones)
  • Average sales deal size
  • Average lead-to-customer close %

Then, it’s time to do some calculations.

  • Sales quota * % of revenue from marketing-generated leads = Marketing-sourced revenue goal
  • Marketing-sourced revenue goal / average sales deal size = # of customers needed
  • Customers / average lead-to-customer close % = # of leads needed

It might also be a good idea to reevaluate the marketing side of the SLA each month, as a variety of factors can change the numbers used in your calculations over time. To do so, create a document that tracks your SLA calculations by month, which should include the following metrics:

  • # of marketing-generated leads
  • # of those leads that became customers
  • Revenue from those closed customers
  • Total revenue closed that month from marketing-generated leads only
  • Total revenue closed that month

You will also need:

  • The average sales cycle length

With the figures above, you can re-calculate the metrics you started with on a monthly basis, or whatever timeframe is used in your business — quarter, year, etc. Just make sure the same measure of time is used for both Sales and Marketing to maintain alignment. Have a look:

  • # marketing-generated leads that became customers / # marketing-generated leads = lead-to-customer close %
  • Revenue from closed customers / # of marketing-generated leads that became customers = sales deal size
  • Total revenue closed from marketing-generated leads / total revenue closed = % revenue from marketing-generated leads

You could also take it one step further, and incorporate quantity and quality into these metrics. The above calculations provide you with a quantitative volume goal of marketing-generated leads. However, we know that not all leads are created equal, and as a result, some may be considered higher- or lower-quality than others.

For example, a decision-making executive might be a more valuable contact than an intern. If that’s the case, you can do the above analysis for each subset of leads, and set up separate goals for each type/quality level.

Want to take it even further? Measure in terms of value, instead of volume. For example, a CEO may be worth $100, for instance, while a director is $50, a manager is $40, and so on.

2) Calculate the Sales Figures and Goals

The sales side of the SLA should detail the speed and depth of following up with marketing-generated leads. A few years ago, HubSpot enlisted an MBA student’s help in performing an analysis to determine the optimal number and frequency of follow-up attempts for each lead — if you have the time and resources for that, great. But many businesses don’t. According to the InsideSales Fall 2016 ResponseAudit Report:

  • If leads are responded to in fewer than five minutes, the chances of actually contacting them are 100x higher than waiting 30 minutes. On average, only 7.7% of leads are contacted within the first five minutes.
  • In terms of follow-up, “the best practice is 6 phone calls, 3 voicemails, and 3 emails, for a total of 12 touches.”

Not all leads may be fit to send to Sales immediately. Perhaps they need to meet some minimum level of quality, like reaching a certain activity level, which can only take place after being nurtured by Marketing. That’s perfectly fine — as long as your leads get some immediate follow-up.

The first moments after lead conversion are critical in maintaining a relationship with your leads, and either Sales or Marketing should take action to start building that relationship, make nurturing easier, and set up the sales rep for success when she eventually does reach out.

But this advice is futile if you don’t consider the bandwidth of your sales reps. Sure, in a perfect world, they’d make six follow-up attempts for each lead — in reality, though, they may simply not have enough hours in the day to do that. For that reason, you’ll also need to factor in the number of leads each rep is getting (based on the Marketing SLA), how much time they spend on marketing-generated leads versus sales-generated leads, and how much time they have to spend on each one. If you’re looking to conserve time, some of the follow-up — email, in particular — could be automated, so look into options there.

3) Set up Marketing SLA Reporting

Now that you have your SLA goals, it’s time to track your progress against that goal — daily.

To start, graph the goal line. Multiply 1/n — n is the number of days in the month — by your monthly goal. That should determine what portion of your monthly goal you need to achieve each day. You’ll want to graph that cumulatively throughout the month and mark your cumulative actual results on the same chart. We call that a waterfall graph, and it looks something like this:

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4) Set up Sales SLA Reporting

For the Sales SLA reporting, you’ll have two graphs — one monitoring the speed of follow-up, and the other monitoring the depth of follow-up.

To graph the speed of follow up, you’ll need the date/time the lead was presented to sales, and the date/time the lead received her first follow-up. The difference between those two times equals the time it took for Sales to follow up with that particular lead.

Take the averages of lengths of time it took for Sales to follow up with all leads within a particular timeframe — day, week, month — and graph it against the SLA goal.

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To graph the depth of follow-up — e.g., the number of attempts — look specifically at leads that have not been connected with, since the goal of the follow-up is to get a connect. For leads over a certain timeframe that have not gotten a connect, look at the average number of follow-up attempts made, and graph that against the SLA goal.

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And One Last Step

When it comes to what should be in your service level agreement, there’s one final piece: Review these metrics on a daily basis to monitor your progress, and make sure both Sales and Marketing have access to the reports for both sides of the SLA.

This step helps to maintain accountability and transparency and allows for both teams to address issues — or congratulate each other on productive results.

What best practices have you observed in creating a service level agreement within your organization? Let us know in the comments.

To learn more about the transactional email add-on, contact your CSM.

Source: How to Create a SMarketing Service Level Agreement
blog.hubspot.com/marketing

8 Signs of Emotional Intelligence in Leadership

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We write a lot about artificial intelligence here at HubSpot. You might be excited about it, or slightly concerned that AI will take your job — and then take over the world.

And while AI is important and interesting, I’m going to ask you to put a pin in that so we can talk about another type of intelligence: emotional intelligence.

Download our leadership guide for actionable advice & guidelines from  HubSpot's Dharmesh Shah. 

Emotional intelligence doesn’t involve bots or machine learning, but it still could have a huge impact on your job, your success, and your happiness at work. By now, we all know that success isn’t just about what you know — it’s about how you work with the people around you, too. And whether this involves networking, an inter-departmental project, or managing direct reports, other people will have a huge impact on if you get your next promotion, new job, or have opportunities presented to you.

In this post, we’ll run through a quick review of emotional intelligence — what it is, why it’s important, and how to be an emotionally intelligent leader at work.

What Is Emotional Intelligence?

The term was first defined in 1990 by two behavioral researchers named Peter Salavoy and John Mayer, and it was more broadly popularized by Daniel Goleman in his 1996 book, Emotional Intelligence: Why It Can Matter More Than IQ.

Emotional intelligence is defined as “a form of social intelligence that involves the ability to monitor one’s own and others’ feelings and emotions, to discriminate among them, and to use this information to guide one’s thinking and action.”

So, what does that actually mean, in plain English?

Emotional intelligence, or EQ (a play on intelligence quotient, or IQ), refers to your ability to handle emotions — your own, and those of others. It’s the ability to recognize and understand your emotions, having control over them, and help others do the same. And as you can imagine, these people skills can be just as important to professional (and personal) success as technical skills.

In fact, there’s actually no correlation between a high level of cognitive intelligence (IQ) and a high level of emotional intelligence (EQ). Psychologist Daniel Goleman thinks that the measurement of IQ is too restrictive and doesn’t accurately reflect if an individual will be successful, in their career or life in general.

Goleman and Dr. Richard Boyatzis created a framework of behavioral qualities that demonstrate EQ. In this post, we’ll explore 10 of these behaviors that leaders can use to show EQ and foster it in their teams.

8 Qualities That Demonstrate Emotional Intelligence in Leadership

1) Adaptability

Are you flexible to changes on your team and within your organization? Are you resilient when confronted with conflict and difficulty? Are you able to quickly manage the expectations and needs of both the people you report to and the direct reports on your team?

Adaptability is a key trait of emotionally intelligent leaders. Whether you’re dealing with a bad month of metrics, an interpersonal conflict between team members, or a company crisis that requires an all hands response, leaders need to be able to quickly react and respond to new and changing information. They also need to be able to respond to change with compassion and diplomacy — even if the changes might not be to their preference. Grudges, overly emotional reactions, and negative one-off complaints are unproductive, can contribute to low morale, and are generally signs of low EQ.

Leaders should set examples for emotionally intelligent adaptability by encouraging teams to present constructive feedback in team meetings or 1:1s. Leaders should also acknowledge pain points that come with change and encourage team members to brainstorm solutions and techniques for quick recovery.

2) Optimism

Are you able to motivate team members and people around you in the workplace? Can you change the mood with a joke or positive outlook on a tough situation? Are you able to help someone stuck in a negative mindset see a different perspective?

Just like adaptability, optimism is critical for leaders to motivate and uplift a team during tough times at work. Now, optimism doesn’t mean you’re relentlessly positive, no matter what. It means you can see the bigger picture of a difficult situation or bad mood to get perspective and keep moving forward — instead of getting bogged down in negativity.

Leaders should encourage team members to look at all sides of a problem to gain perspective, come up with creative solutions to challenges, and help point it out for them when they can’t do it themselves.

3) Initiative

Do you try to identify and solve problems before they arise? Do you volunteer to make things better for your peers and your team? Do you always follow up on conflicts and questions brought to you by team members? Do you not only complete the asks of your role, but look for ways to get even better results?

The ability — and eagerness — to take initiative is another sign of emotional intelligence in leadership. In fact, doing the bare minimum can sometimes be perceived as selfish — even if you are technically getting your job done every day.

Leaders with a high EQ seek out ways to improve and excel — and that includes helping team members take initiative, too. Leaders should identify and cultivate strengths in their team members and help them get to the point where they’re confident and capable enough to take initiative, too. Other examples include volunteering to take on additional work, team projects, or simply helping others complete tasks in the office.

4) Conflict Resolution

Do you moderate interpersonal conflict discretely and effectively? Do you help team members navigate disagreement or clashing priorities in a way that’s respectful to everyone involved? Do you advocate for your team to make sure members feel supported and heard?

Let’s face it — if you work on a team, conflict is bound to happen, even among the closest of colleagues. When that happens, leaders have to help come to solutions that make everyone involved feel heard, respected, and resolved.

Emotionally intelligent leaders should provide team members with plenty of opportunities to talk — in person, via phone or video call, or as a team — to resolve issues and air challenges before they devolve into unhappiness and dissatisfaction. Leaders should empower team members with conflict solutions, new processes, and more of that adaptability to prevent future problems before they arise. And sometimes, the greatest conflict resolution a leader can offer is letting a team member vent and get a problem off their chest.

5) Professional Development

Do you encourage team members to learn and cultivate new skills? Do you help team members identify strengths and target areas of improvement? Do you deliver constructive and actionable feedback? And when the time comes, do you advocate for team members to seek new opportunities, even if those opportunities aren’t working with you anymore?

As Saturday Night Live writer and actor Tina Fey once said, “in most cases, being a good boss means hiring talented people and then getting out of their way.” She’s obviously a very emotionally intelligent leader, and we encourage leaders to take it a step further than that for best results.

Hire talented people and develop their skills and talents so they’re the best they can be — even if that potentially means losing them as a team member. Emotionally intelligent leaders can prioritize the development of others over their own desire to have the best team possible. These leaders should help employees identify talents, improve on strengths and weaknesses, and help team members take on new opportunities they might not without a leader’s encouragement.

6) Empathy

Do you put yourself in teammates’ shoes when addressing challenges and problems with them? Do you acknowledge others’ feelings and opinions and respond to them? Do you share your own emotions and worries with team members to help them feel understood?

Effective leaders must be empathetic in order to also be emotionally intelligent. Empathy means not just listening to team members, but making them feel heard and understood, too. Leaders should constantly seek to understand the perspective of their team members to effectively communicate changes, feedback, and news — both good and bad.

Empathetic leaders can deliver feedback in team members’ preferred method of communication, tailor meetings and communication according to different personalities and styles, and adapt their leadership style to what’s most effective for motivating and helping the larger group.

7) Trustworthiness

Do teammates confide in you? Do you know when to keep information confidential, and when to escalate it through the proper channels? Do teammates feel comfortable bringing concerns to you when they arise?

Trust isn’t just about keeping secrets your team members confide in you — it’s also about creating an environment of mutual trust where team members feel supported and comfortable.

Emotionally intelligent leaders should provide team members with multiple avenues for providing feedback, airing grievances, and voicing questions or concerns — without feeling vulnerable or wrong for doing so. They should encourage team members to support and rely on each other, work collaboratively, and share knowledge and skills for better team outcomes.

8) Self-Reflection

Do you analyze your strengths, weaknesses, and opportunities for improvement on a regular basis? Do you engage with your direct reports and your supervisors to get 360-degree professional feedback? Do you set monthly, quarterly, or annual goals for improvement and personal development?

In addition to all of the above, one of the most meaningful ways leaders can cultivate their emotional intelligence to drive better team outcomes is to pause and reflect on themselves. It can be challenging to critique yourself, which is where collaborative feedback comes in. Emotionally intelligent leaders constantly seek feedback from peers and other leaders to analyze and strategize how to constantly improve — in meetings, 1:1s, and by seeking to learn from other sources.

These are only eight examples of emotional intelligence in leadership, but focusing on these traits will help leaders cultivate emotional intelligence in team members to help them be as productive and successful as possible. For more information on improving and cultivating emotional intelligence in leadership, download HubSpot co-founder and CTO Dharmesh Shah’s ebook here.

What signs of emotional intelligence do you value? Share with us in the comments below.

free ebook: leadership lessons

Source: 8 Signs of Emotional Intelligence in Leadership
blog.hubspot.com/marketing

How to Personalize Transactional Emails With Dynamic Content

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According to the latest Radicati report, the total number of business and consumer emails sent and received in 2017 is likely to reach 269 billion. And that number is expected to jump to 319.6 billion by 2021.

Email marketing isn’t going anywhere.

But there’s a big catch. With so many emails landing in our inboxes, there needs to be something unique about your emails so that you stand out from the crowd.

You’re probably already acutely aware of this, and have already started to incorporate personalized elements into your promotional emails.

But what about transactional emails?

Transactional emails are those triggered by a user interaction on your site, such as a purchase receipt or a delivery confirmation. Most companies don’t give too much thought to these types of messages, but they represent an important marketing opportunity to interact with your customers at their most engaged.

Research from IBM company Silverpop’s 2015 Email Marketing Benchmark Study found that transactional emails enjoy an average open rate of about 45%, compared to just 20.8% for non-transactional emails.

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Data source: IBM

The click-through rate for transactional emails also has a significant edge on other marketing emails at 10.4%, while the average CTR for non-transactional emails is 3.2%.

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Data source: IBM

So before you write off these messages as boring, think again. In fact, you can harness transactional emails to amplify your marketing efforts. Their potential is way beyond just welcoming a new subscriber or sending ecommerce-related updates.

What is a Transactional Email?

There’s a general perception that transactional emails are only sent after a customer has bought something from your website — an order confirmation email, order shipment email, order delivered email, etc.

In reality, transactional emails have a broader defintion.  A transactional email is a message sent to a subscriber because of a certain action they took on your website, such as visiting a particular page, signing up for blog updates, or abandoning a cart. 

Personalization in Transactional Emails

We all love to receive emails that are tailor made for us. And that is the reason why personalized campaigns help improve click-through rates by around 14% and conversions by 10%. We all know this is true for promotional emails, but few marketers have begun to further optimize their transactional emails with advanced personalization. 

As a general rule of thumb, your transactional emails should be 80% informational and 20% promotional. Transactional emails are intended to deliver important information, so you can’t compromise this with too much promotional content. The key is to give users the information they need and expect, and offer them a personalized next step to continue their journey with your company. 

To help you start harnessing the power of your transactional emails, we’ll take a look at three impressive examples of optimized and personalized transactional emails sent by real companies. Each example represents a different type of transactional interaction, enabling you to create messages that are extremely relevant to recipients and profitable for your business.

The Welcome Email

The welcome email is the first email you send to a person who has opted in to receive your emails, or someone who has made their first purchase on your website. As your first direct interaction with a user, the welcome email is an important chance to start things off on the right foot.

To help you gather data for a positive personalized experience, It’s important to ask for a few key pieces of information about your new subscriber at the time of sign up. The information can be used to tailor your welcome email to resonate with the subscribers.

If you have asked for their name, you can go ahead and open with a personalized greeting . Isn’t it natural to like someone saying “Hey Joe” rather than just a “Hey there”? If you have collected their zip code, providing local store information is also a good idea.   

Here’s a simple yet awesome welcome email from Upwork. They have made good use of the of the subscriber information they collected at sign-up. The global freelancing platform makes the person feel special with just a few simple, personalized lines.

They welcome Mike and provide all the information he needs to know to get acquainted with the platform. Prominent CTAs can be used to guide the user back to the website for more relevant info.

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The Purchase Email

After a customer makes a purchase, there are 3 types of emails that are usually triggered: order confirmation email, order shipment email and order delivered email.

We know none of these sound exciting, but they’re important to the customers who are waiting to know the status of their order and should thus be very important to marketers as well.

To interact with your customers at their most engaged, you should customize these emails with relevant content. Apart from the basic dynamic information of the order, you can make best use of upsell and cross-sell techniques, which direct users to content or products relevant to their purchase.

When someone purchases something from your website, you get an idea as to what kind of apparel they like or what kind of holiday destination they prefer. Dynamic content for these type of emails can be fetched on the basis of the customer’s current purchase, past purchase history or any other real-time interaction.   

It might seem a little dicey when it comes to recommending products, but if used carefully, recommendations have the potential to make a strong impact. After all, it costs 5 times more to attract a new customer than to retain an existing one.  Also, convincing your existing customers to buy from you is easier than convincing a new subscriber, isn’t it?

Make sure you do not bombard the customer with a big list of recommendations or they might soon lose interest in you or feel overwhelmed. Restraint on the number of suggested products serves to keep the customer engaged.

We love this purchase confirmation email from Teespring. It provides all the essential information about the order — which the subscriber needs to know. But they’ve also taken full advantage of relevant cross-sell opportunities, presenting the user with customized information about other products. 

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Cart Abandonment Email

It’s a nightmare for a business to see abandoned carts. But they exist in big numbers. According to a SalesCycle report, around 74.52% carts were abandoned in 2016.

But it is possible to recover some lost carts through email marketing. And personalization of cart abandonment emails makes things easier. Generally, when a subscriber receives relevant suggestions, they are more likely to take the desired action.

Lux-Fix.com, a fashion retail brand, implemented an email personalization program to get 85.7% rise in email conversion rates and a 136.2% rise in recovered sales from cart abandonment emails.

By personalizing the email with products the customer or prospective customer was looking for, you can create context and remind them about their interaction with your brand. Also, you need to make sure that when they click on a product image or description you send in your email, you take them to the exact product page on your website.  

Moreover, you can also cross-sell in this type of email. By giving color options of products they put into the cart or recommending similar products that they may like, you are actually broadening the horizon of your brand in more ways than one.   

You can also segregate the cart abandoners on the basis of what caused them to do so. By implementing your knowledge regarding shopping habits, stage of a particular subscriber’s journey, etc. we have a few ideas you can make use of:

  • First time visitor/ price-sensitive visitor:  a discount works the best
  • Those deterred by shipping cost: offer free shipping
  • If someone puts a product in the cart and it is out-of-stock: send an email when the product is back in stock

This email by MCM is an excellent example of cart abandonment emails. The top menu is in place and there’s a major focus on reminding the subscriber about what they left in the cart. Apart from all this, they have cross-sold well by adding some similar products that the subscriber may like.   

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Don’t Forget Your Transactional Emails

Personalization plays an important role in increasing the probability of your email campaign’s success. While personalization often gets limited to just promotional emails, it’s important to consider personalization options in your transactional emails as well to improve open and click-through rates.

Customized transactional emails can perform even better with this targeted approach.  

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Source: How to Personalize Transactional Emails With Dynamic Content
blog.hubspot.com/marketing

How to Analyze The Performance of Your Display Ads [Free Guide]

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Contrary to what you might think, display ads and inbound marketing aren’t inherently incompatible. In fact, applying inbound marketing principals to your display ad strategy can help maximize your potential reach and attract more qualified leads.

The key to creating “inbound-y” display ad campaigns is proper planning and positioning. In this article, we’ll cover how to define performance metrics for your display ads, set measurable goals, and ultimately analyze success.

Analyzing Ad Performance and Setting Goals

The following is an excerpt from Display Ads & Inbound Marketing, a free guide we created with our friends at AdRoll. If you’d like to access the full guide, click here.

Before you dive into building your first ad campaigns, you’ll need to ensure you understand what constitutes success for each ad, which performance indicators to track, and how to measure your progress in real time. In this section, we’ll help you do just that.

Setting Campaign Goals

One of the biggest mistakes marketers make when setting up a campaign is using the same success metrics for every stage. This causes a number of problems:

  • Under-investment in acquiring new customers
  • Over-investment in campaigns for customers who buy again and again regardless of marketing efforts
  • Limited investment in mid-funnel nurturing

Here are the key performance indicators (KPIs) you’ll need to track in order to measure the success of your campaigns.

Also known as the awareness stage, where prospects are looking for answers, resources, and research.

New site visitors: The number of new visitors who came to your site after you launched a campaign. This KPI helps you understand how successful your campaigns are at increasing brand recognition and overall site traffic.

Engagement: Engagement, including time spent on your site, or number of pages viewed, is a good indicator of the quality of new traffic to your site. Be sure to compare engagement on a product-by-product basis, too. If your new visitors’ bounce rate is high or their site duration is low, you may need to adjust your strategy.

The middle of the funnel, also known as the consideration stage, is where prospects are evaluating whether your product or service is right for them. Marketers will want to start focusing on converting their customers into paying accounts in this stage.

Number of conversions: The total number of conversions driven by a campaign. Prospects at this stage are already aware of your brand and your content. Use retargeting to convince them to convert and adjust your campaigns based on how many of them actually do.

View-through conversions (VTCs): Conversions that resulted from customers who viewed ads but did not click. The truth is, no one likes clicking ads — but that doesn’t mean they don’t influence conversions.

Once prospects arrive on your site, take a look at how many of them convert after being served an ad — even if they never clicked one — to get a fair and accurate picture of the effectiveness of each ad

Attributed closed deals and new sales: The total number of deals closed from prospective customers who interacted with an advertising campaign. In addition to the total number of conversions, you should measure campaigns at the middle of the funnel by the number and quality of deals they’re closing — as well as the number of new sales and overall new customers that they drive.

Cost-per-acquisition (CPA): Your overall campaign spend divided by the total number of conversions. CPA is an important KPI to keep track of across the entire funnel, as a helpful proxy for how effective your teams are at closing, retaining, and cultivating customers.

 

Also known as the decision stage, this is the stage where prospects are deciding from whom they want to buy. As a marketer, you want to focus on closing deals that grow your customer base, while also up-selling or cross selling existing customers. KPIs at the bottom of the funnel help marketers evaluate the ultimate revenue consequences of their efforts.

ROI and LTV

Return on investment (ROI): The net profit generated by your campaign, calculated as the difference between the total revenue the campaign generated and the total cost of running the campaign.

Lifetime value (LTV): The net profit attributed to a customer over their lifetime. There are many ways to calculate LTV, but a model that is tailored to the specifics of your sales cycle will be most effective. LTV is important because it helps marketers calculate their ROI over time.

How to Calculate LTV

LTV = (AVERAGE MARGIN PER ORDER X REPEAT SALES FREQUENCY X AVERAGE RETENTION TIME)

Example: $300 = ($100 x 0.5 purchases per month x 6 months) – Lifetime value is $300.

In this first equation, we’re shown how to calculate the lifetime value of a customer. Here we’re looking at the average margin per order, the repeat sales frequency, and the average retention time. Let’s break this down.

Average margin per order means the average amount of money a company brings in after processing and delivering a product. The next two metrics are meant to determine how often someone will purchase your products throughout the entire time they remain your customer. When combining these metrics, we were able to determine a LTV of $300.

How to Calculate ROI

ROI = (LTV-CPA)

Example:

LTV = $300 (calculated above)
CPA = $50 (what we pay to “buy” high-quality customers)
ROI = ($300-$50)

OVERALL ROI IS $250, A 400% INCREASE ON THE CPA

For this example, the situation is reversed. Here we already know the LTV, but are looking at understanding the return on investment of our advertising efforts. For this equation, we’ll look at the lifetime value minus the total cost to acquire a new customer (CPA).

Here we see that it cost $50 to acquire one single new customer and this customer had an LTV of $300 (taken from above). Once we subtract the CPA, we reveal an ROI that is 400% higher. Quite an improvement.

By gaining a deep understanding of the LTV of your average customer, and using that metric to determine how much to spend to get them to convert, you can get a more accurate sense of what your ROI is for your ad campaigns.

Why Do KPIs Matter? 

The Short Answer: Attribution

Attribution is critical because it allows marketers to evaluate what ads or marketing efforts are driving results and measure the impact of their advertising. Yearly trends continue to show that marketers (and their bosses) are placing more and more importance on marketing analytics and attribution.

AdRoll’s recent State of Performance Marketing Report found that almost 75% of marketers believe attribution is critical or very important to marketing success. Over 40% said that they spend the lion’s share of their yearly budgets on campaign measurement.


Despite this influx of interest, many marketers continue to exclusively track ad clicks to measure their campaigns. Tracking ad clicks alone completely misses a large portion of your audience — those who don’t click on ads, but may still be influenced to convert later.

Why Last Click Doesn’t Tell the Whole Story

  • A small portion of people click on ads: Only 16% of users click on ads, and half of those — 8% — account for 85% of all clicks on display ads. This means that this pool of what the industry calls “natural born clickers” is the only audience you track.
  • Last-click tracking incentivizes finding users who would buy without advertising: Last-click attribution models are fundamentally incentivized to find users already likely to purchase—a practice referred to to as “funnel jumping.” Ideally, advertising should influence users to consider purchasing a product or service they wouldn’t otherwise have been exposed to.
  • Credit is not accurately assigned across publishers: last-click gives all the credit to the final click and ignores any other marketing that occurred before the purchase. This means any previous messaging users were exposed to, in addition to any content they consumed that discussed your brand, isn’t appropriately valued.

In fact, in the same survey almost 65% of respondents said that they currently employ a click-based attribution model. However, over 90% of them said that they plan to or are considering changing their attribution model in 2017 — signifying a large shift away from click-based attribution in the coming year.

The Alternative

Unlike click-based attribution models, blended attribution allows marketers to take into account both views and clicks when measuring the success of their campaigns. This metric retains the simplicity and immediacy of click-based attribution while accounting for the cumulative effect of views. More importantly, it takes into account what advertisers have always known: that viewing ads influences consumer behavior.

By combining views and clicks, we reveal a more nuanced, and ultimately more accurate, picture of how advertising affects users. This helps marketers allocate their budget and take into account all the effort that goes into both media planning and creative development.

Want to learn how to create your own ads? Click here to access the complete guide: Display Ads & Inbound Marketing

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Source: blog.hubspot.com/marketing

6 AI Startups We're Keeping an Eye On

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The other day, I was airing some grievances to a friend. The whining topic du jour: artificial intelligence, or AI.

“Every time I hear about it, I think, ‘Sure, that’s cool,’” I said. “But sometimes I wish it would slow down — there’s so much happening there, and so fast.”

“Well, I have bad news for you,” my friend told me. “It’s not going away anytime soon.”

He was right. AI continues to be all the rage in the worlds of both tech and business, and is growing at a lightning-fast pace. At the most recent Google I/O, an entire suite of new AI-related product features were unveiled. Microsoft, meanwhile, launched an entire investment arm dedicated to this type of technology. And as research from CB Insights indicates, in 2016, over 500 AI startups raised roughly $5 billion in funding.

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But which ones are going to stick around?

We thought you might ask that — that’s why we sought out the six that have piqued our greatest interest. We’ve listed them below and summarized what it is that they’re trying to do … and why they’ve got our attention.

6 Artificial Intelligence Startups to Watch

1) Bizible

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What the Company Does

In its earliest days, Bizible’s revenue attribution product provided technology to help its customers better assess spending activity and make better decisions. Now, its new revenue planning product uses machine learning to help B2B marketers plan for every revenue-related scenario. Think: The product crunches the historical revenue attribution data to help predict what GeekWire calls “‘what if’ scenarios — like increasing marketing spend … or reducing event sponsorship budgets.”

Why We’re Paying Attention

We love it when companies examine what they already do best and say something like, “Wait a minute — we can use this information to make something even better.”

In Bizible’s case, that was the marketing expenditure data it already organized and helped customers analyze. The next step, the company decided, was to help marketers make even better use of that data — with the help of intelligent algorithms that predict the results of a given current spending track, and provide budgetary alternatives that address the aforementioned scenarios.

It’s that AI technology, CEO Aaron Bird told GeekWire, that helps marketers “have a good understanding of causality in the past … in order to do a good job of planning the future.”

2) UiPath

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What the Company Does

New-York-based UiPath is known best for its robotic process automation (RPA) technology — the kind that helps to automate what can become tedious business tasks, like data entry. As PYMNTS explains, eliminating the need for human labor on such processes can help “companies save money by offloading these tasks from human contractors.”

Why We’re Paying Attention

To be completely honest — the type of technology being created by UiPath scares us a little. The potential drawback of human job elimination by way of AI continues to be a hotly-contested topic, and while it does make us slightly shake in our boots, we can’t help but be fascinated by the companies that throw their respective hats into that particular automation ring.

But we also find ourselves drawn to the UiPath Academy — a “free of charge, self-led online learning environment where anyone in the world can enroll and train to obtain a UiPath RPA certification.” The point of that certification? Creating more RPA experts that can help companies implement and make the best use of technology like UiPath’s.

From a certain perspective, that could be seen as UiPath’s method of countering the potential job elimination resulting from widespread RPA — by cultivating a population of experts who know how to make the best use of AI within certain organizations.

3) vHive

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What the Company Does

In the B2B realm, most marketers don’t spend a ton of time thinking about how they would make use of a fleet of drones — at least, we don’t. That is, until we learned about vHive: The maker of cloud-based technology for enterprise-level organizations that want to use drones to manage field operations.

Why We’re Paying Attention

Drones are an area of technology that’s seen mixed results over the past decade. Many brands continue to experiment with numerous uses of drones — one of the most interesting cases we’ve come across is telecom company BT using drones to provide internet service in places impacted by war and natural disasters.

But at the same time, few brands seem to be able to truly make it work — some are missing sales estimates, laying off members of their drone teams, or closing up shop altogether. So when we learn about startups in this realm receiving high amounts of funding — vHive secured $2 million from VC and private investment in its first round — it makes us ask, “Okay, so what’s different about this one?” Perhaps it’s the focus on fleet management, or the target audience of enterprise-level companies, but we’re curious to see how this works out.

4) Agolo

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What the Company Does

Another player in the New York AI field, Agolo’s technology is designed to synthesize and summarize the media most important to professionals in order to do their jobs. Here’s a peek at how it works:

Why We’re Paying Attention

Information overload is a problem that doesn’t seem to be going away — at least, not anytime soon. And as bloggers, we often have to monitor a high volume of news about marketing and technology. That’s why intelligent systems like Agolo’s tend to make us positively giddy — they can help us figure out what we need to do, and automatically find and summarize the news that’s going to help us best do our jobs.

But that benefit isn’t limited to bloggers. Marketers from every industry struggle with staying on top of the news and content they need to see in order to remain informed about competition, regulations, and more.

5) Vault

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What the Company Does

Another Israel-based startup, Vault’s technology has a primary focus on the entertainment industry. It uses big data to help professionals in this sector address and resolve both marketing and financial decision-making problems — partially with its box office sales prediction technology.

Why We’re Paying Attention

Even though it’s been a while since I actually visited a movie theatre, I still positively geek out over box office rankings. After all, I’m both a consumer and a marketer, and I like to see the products — software and films alike — that amass an eyebrow-raising audience.

That’s something that makes one of Vault’s products, Deep Audience, so interesting to us — its ability to take the entertainment industry’s media assets, like movie trailers or a script, and apply an algorithm that can analyze who’s going to be drawn to it.

From there, entertainment marketers can make important decisions about how to package and communicate the product to this audience, depending on size, composition, and other factors. Our hope: The Deep Audience becomes available and applicable to marketers within industries beyond entertainment.

6) All Turtles

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What the Company Does

Okay, so we may have cheated a bit on this one. All Turtles is actually a self-described “AI startup studio” that provides guidance and other resources to founders of companies within this sector. The approach, according to its website, is to tackle “one frontier at a time,” starting with AI.

Why We’re Paying Attention

The act of AI startups receiving funding isn’t exactly rare news — after all, that’s how we found out about many of the companies on this list. What intrigues us about this one, however, is that it’s a startup for startups: one that was founded by Phil Libin, who’s held executive roles in both the VC and tech sectors.

That’s a powerful combination of skills and experience. We’re curious to see how it’s applied and carried out in an area of business and technology that, in the grand scheme of things, is still in its earliest stages — but shows no signs of ceasing to grow at full-tilt.

Types of Intelligence

What stands out to us about many of the companies listed here is the potential impact their work could have on a number of populations. Automated business processes, predictions, and fleet management are all very cool — but we’re eager to see how many of these brands develop technologies that will benefit individuals on a personal level. AI certainly has the ability to help professionals do their work more seamlessly. But it could also have a positive impact on, for example, aging populations, by automating in-home assistance that can keep seniors healthy in their homes longer.

In any case — these are just some of the reasons why we’re watching the world of AI unfold.

Which AI startups are you keeping an eye on? Let us know in the comments.

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Source: 6 AI Startups We're Keeping an Eye On
blog.hubspot.com/marketing

How to Leverage User-Generated Content in Your Marketing Strategy

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These days, the phrase “content is king” still holds true (to an extent). But the rules surrounding content production as well as our understanding of it as marketers has changed. No longer is it about having content in spades, it’s all about quality.

Having one great piece of content is always going to be better than 10 second-rate pieces that don’t add any value for readers. However, if you can consistently produce great content on a regular basis, that’s enough to dominate the online marketing realm.

Unfortunately, about 70% of marketers still lack an integrated or consistent content strategy, based on research from Altimeter. Creating great content is hard, and many marketers still don’t have sufficient knowledge or adequate resources to produce high-quality content on a regular basis. Some produce generic content, which is akin to replicating a cola brand. You’re not innovating and it’ll never be as good as Coke, in which case no one’s going to buy/drink it.

Let’s face it, most brands don’t have the resources or expertise to compete with larger, more established companies with bigger marketing budgets. So how can they create high quality content at scale?

Well, one great way is to crowdsource. No one knows your readers better than they know themselves, and you simply can’t compete with the collective knowledge of an entire audience.

In this article, we’ll focus on why brands should let their users help create value in content.

How to Leverage User-Generated Content

Owned Media vs. Earned Media

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Different types of media can be utilized to improve your organization’s value creation initiatives. One type is “owned media.” This refers to the content that your organization has 100% control over, including your company’s official website, company blogs, and your official social media pages.

Owned media may also come in the form of case studies, whitepapers, and ebooks. These types of media are not only controlled in terms of production, they’re also controlled in terms of distribution, because much of it is “gated”. The primary goal of owned media is to provide value to provide value through content marketing to generate and nurture leads.

Though there are many advantages to having complete control over your content, it doesn’t always work well to build trust with your audience because it isn’t “peer reviewed”. In some cases, owned media can also end up being over-technical, product-centric, and self-serving, hence the lack of appreciation from users. There’s only so much a brand can achieve if all their conversations and interactions are one-way.

The media type at the opposite end of the scale is “earned media.” Simply put, this refers to the media exposure earned by your brand through word-of-mouth. This exposure could stem from your own SEO efforts, high-quality content you publish that goes viral, great customer experience delivered, or pretty much anything else your brand does that compels individual users to create content with your brand’s name on it.

As the title suggests, “earned media” is the type of media or exposure your brand has earned by doing something positive or negative. These also come in various forms, including reviews and feedback, recommendations, press coverage, and articles, amongst others. The reason earned media works so well to build relationships is because it places users into your media channel, turning attention away from your brand and onto your audience.

In terms of building awareness and trust, earned media can be a gold mine. It helps build your community through social proof, and provides you with user-created value that leads to more opportunities for engagement. Not only does it facilitate improved ways to learn about your prospects/customers, it opens up a dialogue for two-way conversations so users can interact with your brand.

Oh yeah, it’s also free.

Benefits of User Generated Content

Why wait for people to start talking about your brand when you can create a channel for them to make themselves heard and facilitate User-Generated Content (UGC)? Every piece of content a user produces on your website or site’s outpost becomes branded UGC. Brands can provide a means for their users to collaborate with them via their website, forums, and social media platforms to power up these channels with activity.

For the users, they create UGC to express themselves and gain recognition. It’s a win-win situation, as brands greatly benefit from the buzz. Here are just some of the advantages for brands:

  • UGC helps brands understand their target audience better.
  • UGC improves site engagement and time spent on the website.
  • UGC increases customer satisfaction through conversations.
  • UGC provides means for other users to connect, which then, builds a stronger community.
  • UGC improves the brand’s search engine ranking and online visibility.
  • UGC is inherently peer-reviewed, making it more trustworthy.

More importantly, UGC creates a competitive advantage for brands that is inherently difficult to replicate because communities can’t just be copied.

Think about the power of sites like Wikipedia, whose moderators are crowdsourced users that help make the site better because they care about being part of an active community. Imagine how difficult/expensive this would have been to accomplish with owned or paid media. Now you see the power of user-created value.

Another great example would be the Inbound.org community, which has over 170k professional marketers who are happy to share their knowledge with other members. Everyone has their own opinions and experiences so this creates an unrivaled source of marketing expertise that makes the community extremely attractive for anyone looking to learn about sales/marketing.

Potential Challenges of Building a Community

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You can’t build an empire in a day. In today’s highly connected world, there are plenty of challenges brands face when trying to build an online community.

While UGC is definitely a cost-effective approach, one bad apple can ruin the bunch. The first problem with UGC is that since it comes directly from users, it can’t be controlled by the brand. This opens up areas for concern with trolling, negative comments and various legal compliance issues, just to mention a few.

As the name suggests, it’s the user that generates the content. Thus, it is their content and they can essentially create whatever they want, whether it’s good for your brand or not.

Which leads us to another challenge, how to maintain and moderate UGC. This is where the community manager comes in. He or she must be able to keep users engaged and set the tone for what themes, subjects and topics users should contribute towards. An experienced community manager should also know how to create content, handle PR issues and provide support to users.

Another challenge is the amount of time need to build a community. It’s not a one-time, big-time deal. Like in-house efforts, UGC requires resources, continued effort and time for it to work.

Some brands launch online communities that offer many features, which can lead to high development costs. For instance, some have extensive communications, search and analytics functions. These features can require huge amounts of resources to develop, all of which could potentially go to waste if the feature doesn’t get used or is fundamentally flawed.

Apart from the above, other potential issues include developing an authentic brand voice, respecting boundaries, keeping your community engaged, and policing content. Though this might seem a little daunting, I can assure you that the benefits of having an active community far outweigh the development and maintenance costs.

How to Encourage Users to Create Value

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At this point you’re probably asking “how do I get users to create value in the first place?”

First, you need to give them a reason to become part of your community. You need to make them WANT to be part of the “squad.” You can tap into their innate desire to belong to a community and help others or you can focus on the opportunity to learn from industry experts.

When a brand engages with their audience online, it sets an example and encourages other users to participate and join the conversation. This is highly evident on social media, especially on Facebook and Twitter where users can communicate with brands directly.

It’s important to know who your audience is at this point, so you can develop themes to ignite their interest. Much like producing owned media, you should first listen to your audience to find out what they’re interested in and what they’re concerned about. Then use this information about your audience to develop themes, topics and subjects that focus on their needs, wants and desires. The more user-centric your system is, the better it’ll work.

To help you along the way, here are the basic principles to creating an online community:

  • Encourage participation through incentivizing.
  • Set a standard for members to follow.
  • Think in terms of the collective.
  • Be honest and transparent with members.
  • Promote your community to attract new members.
  • Be persistent and contribute regularly to develop a voice.
  • Allow members to be independent.

The Power of Communities

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In its simplest form, members of a community help each other grow. Communities offer people support, encouragement and expert knowledge along with providing a sense of belongingness.

For brands, communities can be just as powerful. The stronger your community, the more likely it is that it will help you sustain your business. When it comes to establishing your brand as an industry leader and thought innovator, there’s not much that’s more compelling than having your own strong community.

Not convinced? Here’s the proof:

  • 86% of Fortune 500 companies report communities provide insights into customer needs (Sector Intelligence)
  • 71% of companies use customer collaborations for market research (Aberdeen)
  • 64% of companies state the brand community has improved their decision-making (Innsbruck University)
  • 53% of Americans who follow brands on social are more loyal to those brands (Convince & Convert)
  • 80% of brands say that their community building efforts have resulted in increased traffic (HubSpot)

Think about companies like Uber, Airbnb, Facebook, and Alibaba. The nature of their business models depend entirely on their communities. The larger they are, the more value they provide to individual members. But, keep in mind that these are extreme cases whereby the products are essentially the communities themselves.

Though many businesses won’t have the need or ability to create a community-centered website, they can always have a presence on social media and via blog comments, which can be just as beneficial. Online communities can help further showcase your brand’s products or services and attract new members to come aboard. Bottom line, you need to bring your community into your marketing.

Think of it as a channel for free marketing and PR. Now, who wouldn’t want that?

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Source: How to Leverage User-Generated Content in Your Marketing Strategy
blog.hubspot.com/marketing

Marketers, This Is the Best Way to Truly Serve a Nonprofit

We all want to do good in the world. Agencies have a strong tradition of taking on pro bono work for nonprofits — this sometimes means designing a logo or creating a brochure; other times it’s sponsoring an event, or even just simply offering advice.

Those things serve an immediate need, but they don’t necessarily make a lasting impact.

If you want to make a substantial difference, dive deeper: Adopt a nonprofit for one year, and treat it like a paying client. It’s a mutually beneficial strategy: The nonprofit gets high-quality attention and resources, and the agency gets an infusion of positive exposure.

How Agencies Can Serve Non-Profits

Finding a Great Match

There are thousands of amazing organizations out there — choosing just one is difficult. To select a nonprofit that will benefit from your services, send out an application that asks organizations to explain their mission and goals.

One requirement of your adoption should be that your agency will make a quarterly presentation to the nonprofit’s board, updating them on progress and next steps. Why does this matter? Because community and business leaders tend to be active in the nonprofit scene, so the potential connections could prove invaluable.

When making your selection, consider each nonprofit’s board membership. Does the board include individuals who would be beneficial for your agency to get in front of? Any potential business prospects? The nonprofit itself probably won’t be able to hire your agency after the yearlong adoption, but if you can score just one client from its board, that’s a great return on investment.

Partnering with a nonprofit benefits your agency beyond the bottom line. According to a recent PricewaterhouseCoopers survey, nearly two-thirds of CEOs are increasing their corporate social responsibility efforts, in part in pursuit of intangible benefits such as bolstered consumer trust. Studies have shown that workplace philanthropy initiatives improve employee morale, increase motivation, and boost the company’s reputation among employees. It will also improve your agency’s reputation and broaden its exposure.

Begin the relationship like you would with any other client. Take the nonprofit through your discovery process to learn everything you can about what it’s trying to accomplish, the resources it has available, what’s worked for the organization in the past, and what’s been challenging.

An All-Around Win

When you adopt a nonprofit for a year, you change its trajectory. My agency has been doing this for more than a decade, and we’ve never had a nonprofit say we didn’t make a difference.

Just taking nonprofits through our discovery process points them in a better direction. We help them articulate their message. We force them to get clear about who they are, what they do, who they help, and what they need from the community to deliver those services. 

How can you make the biggest impact? Help nonprofits create events or improve upon them. For instance, one nonprofit we adopted held an annual event that brought in $25,000. We revamped the soiree, and it now nets more than $300,000 each year. Talk about a sustainable, lasting difference.

Adopting a nonprofit is, of course, about leveraging your resources to do good, but there’s no reason why you can’t get some traction out of the initiative, too. Once you make your selection, send out a news release. Throughout the year, report on your progress and what your partnership has accomplished.

5 Steps for Making a Big Difference

Any work you do for a nonprofit helps it carry out its mission. But to maximize the good your agency does, take these five steps.

1) Create your adoption plan.

Drum up a PR plan for how to get the word out to nonprofits about your adoption initiative. Press releases work well — it’s a feel-good story, so the local media will usually be more than happy to spread the information. Consider calling up your local United Way and asking it to notify the nonprofits it serves.

2) Select the nonprofit.

Use specific criteria to select the perfect nonprofit for your agency. The organization should align with your company culture and champion a cause you and your team care about. Also, consider what difference you’ll be able to make in both the short and long term — even if your team is passionate about a cause, it won’t be a good partnership if there’s not much of an impact to be made.

3) Align with the proper vendors.

In some cases, the nonprofit may have needs that go beyond your agency’s skill set. If that’s the case, it helps to have a network of vendors you can call on to join the cause. These vendors can include audio companies, videographers, web developers, photographers, or others.

4) Treat the nonprofit like it’s a paying client.

The discovery process is essential for figuring out what the nonprofit needs. Learn what resources it has available and what its team can take care of. Think through what you can do for the nonprofit, as well as any skills or strategies you can add to its toolbox so it can sustain the marketing strategy year after year.

5) Keep the process going.

If you’re doing things right, word will get out about your nonprofit work. Be sure to maintain a spot on your website to outline your initiative, share news, and provide the application for other organizations to apply next year. Make sure the application deadline remains the same year after year so nonprofits always know when to apply.

If you want to truly make a difference, adopt a nonprofit for a year. The organization and the community it serves will benefit, your agency will get great exposure, and, if you do it right, you’ll net some new clients along the way. It’s good for business, and it’ll make you feel good, too.

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Source: blog.hubspot.com/marketing

9 Inbound Marketing Stats You Need to Know [New Data]

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The inbound movement has always been about one thing: being relevant and truly helpful to your audience.

This approach shouldn’t change, but as technology and internal company relationships change, marketers and salespeople must learn how to adapt to better serve their customers.

To better understand how our relationships with consumers and coworkers are changing, we collected data from more than 6,300 marketers and salespeople from around the globe, which we’ve compiled in the 2017 State of Inbound report. It examines the relationship between company leadership and employees, details on collaboration between marketing and sales teams, and a look at what the industry’s foremost marketers are adding to their strategy in the coming year.

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Check out the full report here, or view some of the most interesting highlights below.

9 Stats You Need to Know From the 2017 State of Inbound Report

1) 68% of inbound marketers believe their organization’s marketing strategy is effective. [Tweet this]

Last year, we started to examine marketers’ thoughts on their organizations’ marketing strategy and found that inbound marketers are much more likely to be satisfied with their organization’s approach.

We’re happy to report that this trend continued. 68% of inbound marketers believe their organization’s marketing strategy is effective. However, the majority of outbound marketers (52%) do not think their strategy is effective.

2) 1/3 of marketers think outbound marketing tactics are overrated. [Tweet this]

It’s not simply the effectiveness of the inbound philosophy that encourages us, but the success of inbound when compared to alternative methods. Each year, marketers tell us that outbound practices are overrated.

While we admit we might be a bit biased, when we cut the data, marketers agreed. According to this year’s data, 32% of marketers rank outbound marketing practices such as paid advertising as the top waste of time and resources.

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3) C-level executives and individual contributors disagree about the effectiveness of their organizations’ marketing strategy. [Tweet this]

Over the years, we’ve continued to examine the relationship between marketers and salespeople. This year, we discovered an interesting trend in the data: Company leadership and individual contributor employees are struggling under a growing corporate chasm.

This means that leadership and employees often view their company, its performance, and its future very differently. For example, while 69% of C-level executives believe their organizations’ marketing strategies are effective, only 55% of individual contributors agree. Leaders who want their business to grow must learn how to effectively communicate the organization’s vision and goals with their employees.

4) Marketers struggle most with metrics-driven challenges. [Tweet this]

Marketers find tracking and making sense of their metrics a challenge. This year, 63% of marketers admit that their top challenge is generating enough traffic and leads. This is followed by 40% who struggle proving the ROI of marketing activities and 28% who are trying to secure enough budget.

All three of these top challenges are metrics-driven. Without the proper tools to track concrete campaign results, these areas will continue to be a struggle.

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5) Organizations with an SLA are more than 3X as likely to be effective. [Tweet this]

When we began publishing this report nine years ago, much of our data revolved around the adoption of inbound marketing. As the message spread, we began to see why it’s crucial for both marketing and sales teams to adopt the inbound methodology together. One of the main ways this is done is through a service-level agreement (SLA).

Despite the fact that only 22% of organizations say they have a tightly-aligned SLA, the benefits of having one are clear: 81% of marketers with as SLA think their marketing strategy is effective. In fact, there is no combination of factors more strongly correlated with marketing success than being both inbound and having an SLA.

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6) 38% of salespeople say getting a response from prospects is getting harder. [Tweet this]

While marketers struggle with tracking the metrics of their campaigns, salespeople admit that getting a response from prospects is a growing challenge. However, as you dive deeper into the data, you see the problem starts long before salespeople begin contacting prospects.

38% of salespeople say that they struggle most with prospecting. While there is an abundance of new technology and platforms to help salespeople connect and develop relationships with prospects, many are finding it difficult to incorporate this technology into their daily routine. In fact, 19% of salespeople say they’re struggling to incorporate social media in their sales process, and 13% say using sales technologies is now harder than it used to be.

7) Marketers think video and messaging apps have the potential to disrupt. [Tweet this]

As marketers prepare for the future, many plan to use a variety of content publishing platforms. In the past, content marketers poured their efforts into their email, website, and blog strategies. But with the rising trend of content decentralization, marketers are now seeing the benefit of publishing on a variety of channels.

In our study, marketers are paying more attention to video’s global appeal, with 48% planning on investing in YouTube and 39% looking to add Facebook video to their strategy. In addition, many marketers are experimenting with messaging apps, while others continue to focus on more visual platforms such as Instagram.

But don’t think the age of the blog is over. 53% of respondents say blog content creation is one of their top inbound marketing priorities.

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8) 45% of salespeople say they spend over an hour performing manual data entry. [Tweet this]

Getting a response from prospects is not the only challenge salespeople are facing. According to our 2017 data, 45% of salespeople say they spend over an hour performing manual data entry. Another 23% of salespeople say their biggest challenge using their CRM is manual data entry.

The more time salespeople spend on data entry, the less time they have to do what they are skilled at: closing deals. Not only is manual data entry time consuming, it can also be detrimental to the business. Storing contacts in an unorganized way or not properly using a CRM can lead to a disjointed sales strategy. Businesses should look to sales tools that include automation, integrate with their other platforms, and provide insight into the full customer journey.

9) Marketers and salespeople don’t see eye to eye on the quality of marketing-sourced leads. [Tweet this]

We know there’s a disconnect between marketing and sales teams around the definition of a quality lead, but this year’s report shows a drastic gap.

59% of marketers say they provide salespeople with very high-quality leads, but only 25% of salespeople agree. In fact, the majority of salespeople — from the C-suite to individual contributors — rank marketing leads last, behind referrals and sales-sourced leads. This data continues to highlight the importance of SLAs.

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Want more data-backed insights? This is just a preview of the State of Inbound report. Download the report for free to discover how inbound marketing and sales is evolving.

Editor’s Note: This post was originally published in September 2016 and has been updated for accuracy and comprehensiveness.

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Source: 9 Inbound Marketing Stats You Need to Know in 2017 [New Data]
blog.hubspot.com/marketing

Clips 101: How to Use Apple’s New Camera App

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Marketers and readers agree — videos and social media make up the next great frontier of content marketing and distribution.

The harder question to answer: How do we quickly and easily make those shareable videos our audiences want to see on social media?

Check out our interactive guide to creating high-quality videos for social  media here.

There are a lot of ways to create video content directly within social media apps. Think: Facebook Live, Periscope, and Snapchat Stories. But these videos are live, spontaneous, and unpolished. They’re authentic — but sometimes, you might want to create something more technical and creative.

Here’s where Clips comes in — Apple’s solution to easy social media visual content creation. Read on to learn all about the app, what you can do with it, and how to use it.

What is Clips?

Clips is a mobile photo and video editing app that helps users quickly and easily create shareable visual content for social media and its Messages app.

Its simple interface features a record/capture button, filters, emojis and geotags, and cards. If these features sound familiar, it’s because Clips borrows some of the most popular and engaging features from apps like Snapchat, Instagram, and Facebook.

But Apple isn’t trying to create another photo and video sharing app that would inevitably compete with these other platforms. Instead, it’s created one to easily film, edit, and upload visual content to apps like Snapchat, Instagram, and Facebook.

Apple takes Clips a couple steps further with two other cool features: automatic subtitling and a widget to add music from Apple Music. Let’s dive into how to use all of these neat video editing tools to make a highly shareable social media video.

How to Use Clips

Download Clips free of charge in the iOS App Store. As the name of the parent company might suggest, Clips is currently only available on iOS devices.

How to Record

When you open up Clips, you’ll see a big, red recording button. You can toggle between photo and video recording, or you can select a photo or video already recorded on your device. Tap the red button to capture a photo, or hold down the red button to record a video.

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You can record Clips up to 30 minutes in length at a time.

How to Add Automatic Subtitles

Tap the bubble text icon on the top of your Clips camera view, and choose the font style the way you’d like your subtitles to appear.

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Then, when you start recording, Clips will automatically subtitle the words you’re speaking. I had to record this video several times to get it right — you have to speak very clearly and slower than usual into your device’s microphone. Here’s what a short Clip with automatic subtitles looks like:

How to Add a Filter

Tap the triple Venn-diagram at the top of your Clips camera view and different filtering options will appear. Tap the one you like, then record your photo or video as normal.

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How to Add Emojis & Geotags

Tap the star icon at the top of your Clips camera view and choose a sticker to add to your photo or video. Here’s what one looks like in action:

How to Add a Card

Clips has a few options for static or moving images you can customize with your narration or music (more on that next). Tap the letter T at the top of your Clips camera view and select a card you want to use for your photo or video. Here’s an example I chose to wish someone a happy birthday:

How to Add Music

Clips gives you the ability to add music from your own library, or its library of stock soundtracks, by tapping the music note in the upper right-hand corner of the Clips camera view. Tap a track to download and select it for your Clip

How to Share Clips

Tap the downward-pointing arrow in the upper-left hand corner of your Clips camera view to look at your work. From there, you can create a new video or share the Clips you’ve already created.

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When you record several Clips in one sitting, they’ll be woven together into one large recording when you go to share. To avoid this, tap the arrow after each recording to create a new video project altogether.

Next, tap the sharing icon in the lower right-hand corner to pull up the screen below:

share-clips-1.png

From here, you can easily share your Clips via Messages, email, or you can save your Clips to your device.

Where to Share Clips

In addition to the channels above, you can easily share Clips where they were designed to be shared — on social media. If you tap the “More” ellipses, you can add other social networks to your sharing options, as shown below:

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Clips is a fun, easy-to-use app that allows you to create highly shareable images and videos. By adding a few embellishments like subtitles, filters, and emojis, content is easier to consume and share on a variety of platforms — without having to film and edit a video with professional equipment and software.

Have you tried creating video content using Clips yet? Share with us in the comments below.

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Source: Clips 101: How to Use Apple’s New Camera App
blog.hubspot.com/marketing

10 Job Interview Questions to Stop Asking Candidates

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When I get a job interview, there’s a lot to prepare. I diligently research the company and my interviewers, pore over Glassdoor interview questions, and print out copies of my resume and portfolio.

When I interview someone else, it’s easier to prepare. I don’t have to put together the perfect outfit, I don’t have to worry about how to find the restroom, and at the end of the day, I don’t have to worry about if I got the job or not.

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A quick Google Search for job interview questions brings up some of the most common asks you might have already answered 20 times over the course of your career. They’re popular, but that doesn’t mean they’re good questions. In fact, they could be hurting your chances of the candidate accepting an offer.

Nobody wants to feel stressed out, put on the spot, or tricked during a job interview. After all, you wouldn’t want to experience that in your day-to-day job, so why do we demand it of candidates?

Be mindful of the different personality types, cultures, and backgrounds that are applying for open roles at your company, and consider retiring some of the more common interview questions in your arsenal. Instead, try these alternatives that might give you more helpful information about the candidate — without making them feel awkward in the process.

10 Job Interview Questions to Stop Asking (and What to Ask Instead)

1) What can you tell me about yourself?

You might be surprised to see such a traditional interview question at the top of our list, but it’s not as great of an opener as you might think. In fact, from the candidate’s perspective, it might tell them that you haven’t read their résumé, browsed their portfolio, or checked out their LinkedIn profile. Candidates don’t want to brief you on their entire job history during the short time they have to make a first impression — they want to have a conversation.

Instead, ask a question based on what stood out to you most from their resume and application. Show the candidate you’re taking them seriously and want to learn more about them, beyond what’s on paper.

2) Why are you leaving your current job?

This question could lead to an awkward answer that doesn’t cast the candidate in their best light. The answer could be highly personal, and it isn’t that helpful for learning more about the candidate.

Instead, ask them about their favorite part and biggest challenge of their current role. You’ll learn more about their priorities, dealbreakers, and culture fit — without the conversation becoming too negative.

3) What’s the project you’re most proud of?

It’s useful to learn what projects a candidate enjoys working on most, but you could take this question further by asking something broader. 

Instead, ask them to talk about how they produced a piece of work with multiple different teams. The answer will reveal how they work dynamically and as a project manager — useful traits for most marketing and sales teams.

4) What’s your biggest weakness?

Simply put, it’s presumptuous to assume that you understand what a candidate’s perceived weaknesses are. The answer could exclude candidates from other cultures or industries who aren’t familiar with yours, and it puts candidates in a negative state of mind.

Instead, ask them to describe a challenge they faced in a role and how they handled it. The answer will teach you more about their problem-solving skills, without putting them in the awkward position of personal self-reflection.

5) What’s your five-year career plan?

HubSpot Inbound Recruiting Manager Hannah Fleishman has made more inclusive hiring her mission, and she suggests replacing this interview question. “It can be a loaded question, especially for women, professionals who are thinking of starting a family, and even aspiring entrepreneurs who want to start a company one day.”

Instead, Fleishman suggests asking candidates a more specific question: “How does this role fit into your long-term career plans?” The answer will give you the information you’re really looking for — if the role and your organization present opportunities for them to grow.

6) What makes you passionate about your work?

Candidates don’t have to be passionate to be successful in a role. Sure, it helps — but passion is such a subjective topic, it’s not necessary for a job interview.

Instead, ask them what makes them passionate about a company. The answer will tell you about their culture priorities and if they’ll fit with the larger team they’ll be working with.

7) Are you a team player?

Generally speaking, we advise against asking yes or no questions. Open-ended questions are more conversational and will give you more information about the candidate.

When it comes to this question, the answer is valuable, but a candidate is unlikely to self-identify as an individual worker. Likewise, your company probably doesn’t have any roles that are completely solitary — everyone has to attend meetings or work on campaigns at some point.

Instead, ask the candidate what their ideal team dynamic is. You’ll get the same answer you’re looking for — if they work well with others — while allowing them to elaborate on their preferred working environment.

8) How many people do you think flew out of JFK Airport last year?

Brain teasers might be entertaining to ask — and they might teach you a thing or two about a candidate’s problem-solving abilities — but brain teasing questions like this one create too much stress for the candidate. They’re usually ridiculously hard to solve and put the candidate on the spot — without revealing a ton of helpful information.

Instead, ask the candidate how they’d solve a problem that’s common on your team. The answer will be more useful, and it won’t take the candidate by surprise.

9) Sell me this pen.

If you’re hiring for a sales role, you should know: “Sell me this pen” has become such a frequently-asked question, it can be easily answered in a quick Google search before the interview. It might not give you the candidate’s true selling abilities — something you need to know before investing time and resources in training them.

Instead, ask them how they would handle a common roadblock your sales team faces. The answer will prove if they’ve done their research, and it will give you an idea of their persuasion skills if they were on a call. 

10) What’s your salary history?

Fleishman also suggests avoiding questions or discussions of salary or benefits until an offer has been extended to the candidate. “Salary history shouldn’t determine what a candidate’s offer package is,” she says. “This question can actually discriminate against minorities who are more likely to be under-compensated compared to their peers — which is why cities in New York and Massachusetts have banned it from interviews.”

Instead, scratch this question from your list altogether.

The interview is only one piece of the puzzle for the candidate, but by asking more thoughtfully-phrased questions, you could be doing yourself and the candidate a favor. For more recruiting and hiring ideas for your next open marketing position, download our free ebook.

What’s a common job interview question you wish would be retired? Share with us in the comments below.

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Source: 10 Job Interview Questions to Stop Asking Candidates
blog.hubspot.com/marketing