Dharmesh Shah (HubSpot Co-founder) – Keynotes at INBOUND 2016 (Nov 2016)

Chapters

Abstract

The Evolution of Buyer Behavior: Navigating the Dynamic Digital Marketplace

Abstract

This article explores the significant changes in buyer behavior and marketing strategies in the digital age. We delve into the shifts in market dynamics, the increasing influence of video content, the multitasking nature of modern buyers, and the collaborative aspect of buying decisions. We also examine the role of social media and inbound marketing, the transformation of search engines and paid search, the importance of customer focus in business strategies, and the technological advancements shaping customer interactions.

Shifting Market Dynamics

The landscape of market dynamics has been profoundly affected by advancements in manufacturing and technology, leading to a surplus of goods. This abundance offers buyers more choices and intensifies competition among sellers. However, despite the increased supply, demand remains relatively steady. This scenario highlights the necessity for sellers to differentiate themselves in a crowded marketplace. Furthermore, with an average of 14-15 vendors for each product or service, it becomes essential for businesses to stand out in the digital shelf competition. Offering trial periods is a strategic move that allows potential customers to experience the product before making a purchase commitment.

The Rise of Video Content

The buyer’s preference has shifted significantly from text-based to video content. A notable trend is that videos are often consumed without audio, and there’s a growing preference for shorter, live videos. This shift necessitates a change in content creation strategies, emphasizing the need for engaging, visually appealing, and concise video content. Marketers must now aim to incorporate a 50% video ratio in their content, as research indicates a strong preference for video content by prospects, making it an effective tool for capturing attention and delivering information.

Multitasking Buyers

Today’s buyers are characterized by their multitasking nature, engaging with multiple sources of information simultaneously. This behavior includes comparing competitor content and frequent use of social media. This trend indicates the need for businesses to maintain a strong, multi-channel online presence. Moreover, B2B marketers should broaden their reach beyond traditional platforms like LinkedIn and Twitter, targeting humans (B2H) who actively engage on social media platforms such as Snapchat and Instagram.

Collaborative Buying

Social media platforms have emerged as essential tools for collaborative buying, where buyers seek recommendations from peers and influencers. This development underscores the importance of a robust social media strategy for engaging potential customers.

Dunkin’ Donuts Drive-Through Analogy

The manner in which buyers used social media in 2006 is likened to a drive-through experience, symbolizing the necessity for businesses to provide quick and efficient digital interactions.

The Changing Role of Marketers

In response to these evolving trends, marketers must create engaging video content, understand and cater to the multitasking behavior of buyers, and leverage social media for collaboration and recommendations.

Evolution in Digital Marketing and Buyer Interaction

Social Media Engagement

Social media platforms have become the equivalent of favorite coffee shops for buyers, which indicates the need for businesses to create a welcoming and engaging online presence. Ignoring social media marketing is akin to marketing inside a trash can. For effective reach to modern consumers, businesses must actively engage with their audience on these platforms.

Inbound Marketing

Inbound marketing has become a critical tool for reaching and engaging modern consumers, akin to marketing inside a favorite coffee shop. Businesses must create valuable and relevant content that attracts and retains customers, drawing them in rather than pushing messages onto them.

Search Engine Changes

Google’s shift to providing direct answers has significantly impacted organic search strategies. Approximately 35% of searches now result in direct answers, a trend that is likely to continue. Marketers must adapt their organic search strategies to align with these changes.

Paid Search Evolution

AdWords occupies a substantial portion of the visible space on search results pages, emphasizing the importance of ad quality and strategic placement. AdWords covers 100% of the screen above the fold on both mobile and desktop devices, making it crucial for marketers to create high-quality ads that capture attention and deliver value.

Pay-per-Lead Ads

The emergence of pay-per-lead ads, exemplified by Facebook’s Lead Ads product, allows buyers to fill out forms directly within the ad. This innovative approach in digital advertising is gaining popularity and is expected to see increased usage in the future.

Zuckerberg’s Dominance

The dominance of Zuckerberg’s platforms (Facebook, Instagram, Messenger, WhatsApp) in the digital landscape makes it essential for marketers to effectively engage customers on these channels. Zuckerberg’s companies have become integral to users’ daily lives, highlighting the importance of focusing on marketing within Zuckerberg’s world to effectively reach target audiences.

Content Marketing and Paid Marketing Synergy

There is a growing synergy between content marketing and paid marketing, with marketers using paid advertising to increase the reach and virality of their content. This combination creates a powerful tool for attracting and engaging customers.

Website’s Role Shift

Websites have evolved to complement sales representatives, with buyers expecting personalized, automated, self-service, and comprehensive experiences. Websites must be designed to meet these expectations, offering personalized content, automation features, and easy self-service options. End-to-end experiences should be seamless and efficient

, mirroring the standards set by companies like Airbnb and Uber.

Buyer Expectations

Today’s buyers demand highly personalized experiences across different channels, efficiency through automation, convenience via self-service options, and seamless end-to-end journeys.

Top-of-Funnel Changes

Marketers must shift their focus from text to video content, reflecting the changing preferences of prospects. To cater to modern buyers, marketers should create medium posts and repurpose them for various channels, including Twitter, Instagram, podcasts, and other platforms. This strategy maximizes content reach and engagement.

The Death of Cold Calling

Cold calling has become obsolete due to technologies like caller ID and the decline of desk phones. Research indicates that significant purchases are rarely initiated by cold calls.

Email’s Evolution

Email remains relevant, but its effectiveness now hinges on context and personalization. Well-researched, personalized emails sent by sales reps in smaller quantities have proven more effective.

Sales Transformation

Adapting to the changing sales dynamics involves altering hiring profiles, emphasizing a helpful approach, optimizing communication strategies, and prioritizing email brevity.

Customer Influence

Buyers engage equally with marketing content and sales representatives. Peer networks and customer recommendations significantly influence purchasing decisions.

Harnessing Customer Power

To leverage customer power, it is crucial to align sales commissions with customer success metrics, consider customer feedback in product development, and encourage customer advocacy through positive experiences.

Business Strategy and Customer Focus

Pricing Model

Aligning incentives with customers for mutual success is a key strategy in the modern marketplace.

Recurring Revenue Model

The common business practice now includes deferring revenue for long-term partnerships and overall business health.

Customer Focus

Prioritizing adding value to customers, rather than solely extracting it, is essential for business growth and sustainability.

Continuous Value Addition

In a supply-driven market, focusing on continuously adding value to customers is key for growth and success.

Perspectives of Brian Halligan and Dharmesh Shah

Brian Halligan emphasizes the importance of aligning with customers and delighting them, urging businesses to invest in products and services that add value. He highlights the rapid turnover among Fortune 500 companies, signifying the challenges faced by large corporations in an era of rapid technological change. This scenario presents opportunities for startups and growth companies to thrive by adapting to change and embracing new technologies.

Dharmesh Shah shares his passion for technology and its transformative impact, noting major technological changes over the past 25 years. He emphasizes the significance of future technological advancements and their potential impact on businesses and society.

Technological Transformations and Their Impact

Search Evolution

Search is expanding beyond traditional websites to devices like Amazon Echo and cars, and even to our minds, indicating a shift in how information is accessed and consumed.

HEO (Human Enjoyment Optimization)

The key to SEO success lies in providing enjoyable user experiences, with Google considering user engagement as a ranking factor.

Audio Content

Converting blog posts to audio can reach a wider audience, especially those who prefer listening. Upcoming technology will enable indistinguishable audio narration at minimal cost.

Mobile Revolution

Smartphones have changed how we interact with devices, with mobile apps, not browsers, dominating user time. Messaging apps are growing faster than social networks, indicating a shift in communication preferences.

Chatbots: The Next Big Wave in Technology

Chatbots, allowing natural conversation with technology, have the potential to revolutionize user interaction, making it more intuitive and user-friendly.

Bots and Their Functions

Bots are accessible through various platforms and offer ease of use without downloads or sign-ups. They can perform tasks like creating blog posts, analyzing data, generating customer lists, and updating CRMs. GrowthBot, developed by HubSpot Labs, exemplifies the potential of bots in enhancing marketing and sales efforts.

Websites and Bots: Enhancing Customer Assistance

Bots are set to enhance websites and messaging apps, responding to customer queries through voice-activated devices and offering a more intuitive customer experience.

AI and Machine Learning in Bots

AI and machine learning empower bots to perform tasks that previously required human intelligence, improving lead scoring, content recommendations, and email optimization.

The Future of Marketing Automation

Marketing automation is becoming autonomous, similar to self-driving vehicles, leveraging data for better decision-making.

Data Centralization

Centralizing data in one normalized place is essential to benefit from machine learning in business strategies.

HubSpot’s Cycle

HubSpot’s approach involves recognizing changes in human behavior, adapting to these changes through technology and marketing innovations, and then measuring the results to continuously improve.

Search Engines: The Evolution of Web Searching

Google’s Dominance in Search

Google’s unique interpretation and analysis of data has contributed to its success in search. The link graph, which connects web pages based on inbound links, has become a significant quality indicator.

Facebook’s Social Graph

Facebook’s search engine utilizes the social graph to deliver personalized search results based on users’ connections and interactions. The social graph offers insights into users’ relationships, preferences, and interests.

Amazon’s Product Graph

Amazon’s search engine leverages the product graph, which tracks products and their purchasers. Amazon’s understanding of users’ buying patterns enables tailored product recommendations and a seamless shopping experience.

Surprises and Predictions

The unexpected rise of Google as the dominant search engine and the emergence of Facebook and Amazon as major players in the search landscape, each with unique strengths, are noteworthy. Future predictions include the integration of search engines into everyday objects and the rise of voice-activated search.

The Future of Search: Beyond Keywords, Embracing Human Enjoyment Optimization

The Evolving Landscape of Search

Search is no longer confined to a single website. It is becoming ubiquitous, accessible through various devices and even in our heads through technology like Apple AirPods.

The Importance of Human Enjoyment Optimization (HEO)

Focus on HEO to succeed in SEO. Optimize for human enjoyment, not just search engine algorithms.

Google’s Engagement Graph

Google collects data on user engagement with websites, which significantly impacts search rankings.

The Power of Audio Content

Create audio versions of your written content to cater to audiences who prefer listening.

The Rise of the Smartphone

The smartphone revolutionized our interaction with technology, introducing touch and swipe as primary input methods.

The Browser’s Demise

Contrary to expectations, the browser

did not become the dominant feature on smartphones.

Messaging Revolutionizes Business Marketing and Communication

The Shift to Messaging

The primary means of interaction on mobile has shifted to apps, with most users preferring apps over browsers. This change suggests that creating a custom mobile app may not be necessary, as popular apps are already widely used. Additionally, messaging apps are experiencing tremendous growth, surpassing social networks in popularity. Top messaging apps like Facebook Messenger, WhatsApp, and WeChat boast over a billion users each.

Messaging in Business

Messaging is becoming increasingly prevalent in the workplace with tools like Slack, Microsoft Teams, and Facebook Workplace. This shift significantly affects marketing strategies, making inbound marketing mandatory. Traditional tactics like buying lists and blasting emails are becoming ineffective due to privacy concerns and platform restrictions.

Inbound Marketing in Messaging

Inbound marketing is crucial in the messaging era, prioritizing value addition over extraction. Messaging allows for stronger relationship building and higher engagement compared to email. Trust earned through messaging is more valuable than email-based relationships.

Supplemental Update:

Chatbots: A Natural and Powerful Interface with Technology

Chatbots, which enable natural text or voice conversations, represent the next technological wave. These tools eliminate the need for users to translate thoughts into specific commands, providing an intuitive and user-friendly interface.

Chatbots as a Tool for Human Empowerment

Chatbots should be viewed as tools that exponentially enhance human capabilities rather than as adversaries. They amplify human potential by automating repetitive tasks and providing real-time assistance.

HubSpot Labs and GrowthBot

The author’s affiliation with HubSpot Labs involves exploring new technologies. HubSpot Labs has developed GrowthBot, a chatbot designed to aid growth professionals in marketing and sales.

GrowthBot: A Chatbot for Growth Professionals

GrowthBot assists marketing and sales professionals with their work, automating tasks, providing real-time support, and delivering personalized insights to help users achieve their growth goals.

Introduction to GrowthBot: A Bot That Streamlines Marketing and Sales

GrowthBot is a software accessible via popular messaging platforms like Slack, Messenger, iMessage, and SMS. Its functionalities include blog post creation, data analysis, and CRM system updates.

Benefits and Features of GrowthBot

GrowthBot eliminates the need for downloads, installations, and sign-ins, ensuring ease of use. It facilitates communication through natural language, enhancing user-friendliness. GrowthBot proactively initiates conversations based on relevant events, such as blog post conversion rate spikes. It automates tasks like CRM updates, enabling sales teams to focus on more critical activities.

Practical Examples of GrowthBot’s Use

In marketing, users can create blog posts by sending messages to GrowthBot, analyze data, generate reports through natural language requests, and identify potential customers based on specific criteria. In sales, users can maintain their CRM by responding to GrowthBot’s messages and amplify high-performing blog posts on social media with a single click.

Availability and Access

GrowthBot is currently in beta, with over 10,000 users testing it. To access the premium features of GrowthBot, users can type “inbound is awesome” in the chat window.

Bots: A Powerful Tool for Helping Customers and the Role of AI and Machine Learning

Businesses are shifting their focus from website development to bot development. Bots, residing in messaging apps and voice-activated devices, assist customers with inquiries about pricing, location, and other topics. They provide a direct and efficient way for customers to obtain information, eliminating the need to navigate complex website structures.

AI enables computers to perform tasks that traditionally required human intelligence. Machine learning, a subset of AI, allows software to learn and improve its performance without explicit instructions. Machine learning enhances predictive learning, lead scoring, content recommendation, and email optimization, resulting in improved customer experiences.

Machine learning can be applied in various ways, such as identifying and targeting customers with personalized recommendations, analyzing customer feedback, social media data, and other sources to extract insights and identify trends. It also automates tasks like scheduling appointments, processing orders, and providing customer support, freeing up human resources for more strategic endeavors.

Reimagining Lead Routing and Marketing Automation

Traditional methods like round-robin and territories for lead routing are suboptimal. A better approach is to use a “match.com” for leads that matches them to salespeople based on data about the lead and the salesperson’s expertise.

Marketing automation is ripe for autonomous self-driving capabilities, where machines analyze inputs and determine the best course of action. Data centralization is crucial for effective machine learning, requiring businesses to normalize their data.

HubSpot follows a cycle of change involving recognizing changes, productizing solutions, and democratizing access to these solutions, particularly for small and medium-sized businesses. Upcoming product showcases will feature new innovations and insights from HubSpot and other experts.

A Child’s Perspective on Technology: Embracing Curiosity and Innovation

Dharmesh Shah’s son’s experiences with technology highlight the power of curiosity and experimentation. His approach reflects a new era where users can freely express their desires and have them fulfilled through technological advancements. Dharmesh Shah believes this is the best time for technology and sees infinite opportunities in the ability to express and fulfill desires.

Notes by: BraveBaryon