Demand Centers: The Financial Benefits (Part One)
- Demand centers enable organizations to bring programs to market more effectively and efficiently
- Across three critical financial measures, demand center–enabled organizations are outperforming their peers
- A demand center may not be right for every organization, but there are clear benefits to those that adopt the approach
Over the past five years, SiriusDecisions has helped many B2B organizations implement successful demand centers. Demand centers are central and/or regional hubs of shared marketing services, infrastructure and processes. Their adoption enables organizations to bring programs to market more effectively and efficiently by leveraging key corporate assets and best practices.
Of course, there are still naysayers out there who shake their heads and claim that demand centers are nothing more than an organizational fad with no quantifiable benefits. Some may even tell you that demand centers are dead. While it’s true that a demand center may not be right for every organization, there are clear benefits to those that do adopt the approach. Our recent European Demand Creation Study, which surveyed more than 470 marketing leaders across six countries, examined the effectiveness of organizations with demand centers vs. those without. The results were eye-opening:
- Marketing-sourced pipeline. Organizations with a demand center are generating 5 percent more marketing-sourced pipeline than their peers, suggesting they are more effective at acquiring and nurturing leads than organizations without a demand center.
- ROI reporting capability. Organizations leveraging a demand center are also better equipped to report on marketing ROI than peers (a staggering 72 percent vs. 42 percent), suggesting that investment in demand center infrastructure and standardization around lead generation processes has helped these organizations’ tracking and reporting capabilities mature faster than those of other organizations.
- ROI results. Additionally, organizations employing a demand center achieved significantly higher ROI. Demand center–enabled organizations reported marketing ROI of 18€ for every 1€ invested – a 38 percent increase over the ROI reported by peers without a demand center.
- Marketing budget allocation. Interestingly, organizations utilizing a demand center outperformed their peers while simultaneously decreasing their programs budget allocation by 2 percent over the two-year period measured. By comparison, organizations with no demand center and poorer results reported a slight (0.1 percent) increase in their budget allocation requirement.
These survey findings paint a clear picture. Across three critical financial measures – pipeline, ROI and budget – demand center–enabled organizations are significantly outperforming their peers, highlighting the value demand centers can provide. However, the four data points we examined here are just the financial benefits. In my next blog, I’ll explore the non-financial gains experienced by organizations that have implemented a demand center – marketing automation platform adoption, inbound vs. outbound mix, campaign content efficiency and use of teleprospecting. So, if the potential financial gains are not enough to convince you of the merits of a demand center, stay tuned!
To read more about how a demand center can help organizations increase pipeline contribution, take a look at our blog on NetApp EMEA – Program of the Year Award Winner at EMEA Summit 2016.