In the vast ocean of B2B marketing, the allure of landing a "Titanic" client can be irresistible. These big-ticket accounts promise prestige, substantial revenue, and the illusion of stability. However, as Kayleeann Maritz, Global VP of Marketing for B2B software vendor Memoryblue and Operatics, warns, this approach can lead to a dangerous phenomenon known she calls "the Titanic effect".
"When it starts to go down, you discover you don't have those smaller lifeboats required to get you safely to the next big opportunity." - Kayleeann Maritz
Maritz says this occurs when a company becomes overly reliant on a small number of large accounts, neglecting the broader market and potentially jeopardising long-term sustainability. As marketers, we play a crucial role in steering our organisations clear of these hidden icebergs. Let's explore how we can chart a safer course.
The first step in avoiding disaster is recognising the warning signs. In B2B marketing, these can manifest in various ways. You might notice an over-allocation of resources to top-tier accounts, leaving little for other initiatives. There could be a noticeable neglect of mid-tier client acquisition and nurturing, with all attention focused on the big fish. Your content and campaign strategies might have a narrow focus, catering only to the needs of large enterprises. Additionally, your KPIs might be misaligned, overvaluing large deals at the expense of steady, diversified growth.
Maritz points out, "There becomes almost like a greediness towards it. Then I think there is a cultural shift that starts to happen in the business of unhealthy competition... everybody starts forgetting that it's okay to have the tier 2 and the Tier 3 accounts."
To avoid the Titanic Effect, marketers need to champion a more balanced approach. This begins with thorough segmentation and persona development to understand the broader market. With this foundation, you can create content strategies that resonate across different client tiers, ensuring you're not just speaking to the giants in your industry. Implement multichannel campaigns to cast a wider net, reaching potential clients of all sizes. Importantly, tailor your value propositions for different company sizes and industries, recognising that what appeals to a multinational corporation may not resonate with a growing mid-sized business.
Maritz emphasises the importance of this approach: "I think segmentation is really, really important because in each market, there is a number of different verticals. If we can showcase a vertical that is really buoyant or something that we can really own, I think that becomes very attractive to the leadership team."
While pursuing large accounts, it's crucial not to overlook the value of tier 2 clients. These 'lifeboats' can provide stability and growth opportunities. Develop targeted marketing programmes specifically for mid-tier clients, acknowledging their unique needs and challenges. Create scalable, high-touch experiences that make smaller accounts feel valued without overwhelming your resources. Leverage marketing automation to engage tier 2 clients efficiently, ensuring they receive consistent attention. Finally, measure and communicate the collective value of tier 2 clients to your organisation, highlighting their role in providing stability and potential for growth.
"We always need to remember that those tier ones started off as tier twos," Maritz reminds us. "So if you can get into the tier two today, that means you might have a tier one tomorrow."
To navigate these complex waters, marketers need to rely on data and analytics. Utilise comprehensive market research to identify untapped opportunities across all client tiers. Implement predictive analytics to assess the potential of different clients and segments, helping you allocate resources more effectively. Develop dashboards that provide a holistic view of your client portfolio, enabling you to spot imbalances quickly. Employ A/B testing across different client tiers to refine your strategies and ensure you're optimising your approach for businesses of all sizes.
Maritz stresses the importance of research: "Research is the number one key area, and that is basically showcasing what the business believes to be feasible versus actually what is out there, what the customer is asking for, and what actually is the art of the possible."
Avoiding this "Titanic effect" requires collaboration across departments. As marketers, we can lead this charge by facilitating collaborative account planning that considers a balanced approach to client acquisition and retention. Develop content and tools that support sales strategies across multiple tiers, not just for landing the big fish. Create feedback loops between marketing, sales, and customer success to ensure continuous refinement of your strategies. Establish joint KPIs that encourage a balanced client portfolio, incentivising the nurturing of clients across all tiers.
"Marketing sits throughout the funnel, right? And at every stage, they have a role to play to support each of those teams," Maritz explains.
Finally, marketers should focus on building lasting relationships with clients of all sizes. Implement account-based marketing strategies tailored to different client sizes, recognising that one size doesn't fit all. Develop loyalty and referral programmes that incentivise long-term partnerships, regardless of the client's size. Create thought leadership and co-creation opportunities that engage clients across tiers, making them feel valued and involved. Track and leverage client growth stories, showcasing how your company has supported businesses of all sizes in their journey to success.
Maritz shares an innovative approach: "What we have done is on some of our clients, we have gone to them and said, Can we partner up? Can we do a piece of content together?... It gives us the opportunity to be plugged by you, essentially, or referred by you, which is going to build trust, additional trust for us in the market."
"Having a good, rounded strategy that doesn't just celebrate tier one is really important." - Kayleeann Maritz
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