B2B brand and storytelling · Episode 99 · Season 5 · ·
The Certainty Trap
Chris Bagnall, Chief Executive Officer of Transmission, argues that the lead-volume funnel is outdated and that brand is what gets a B2B company into the room, especially as AI eats the middle of the buying journey.
Chris Bagnall, Chief Executive Officer, Transmission. In conversation with John Horsley.
The Certainty Trap
0:0033:00Nearly three decades in B2B marketing, from client side to building the largest independently-owned B2B agency in the world, and Chris Bagnall's argument is blunt: the lead-volume funnel is fundamentally flawed, and brand is the thing that earns you consideration in the first place.
Chris Bagnall has spent nearly three decades in B2B marketing, starting client side for five or six years before entering agency land around 2000 to 2001. He joined a small media agency that grew fast to become the world's largest B2B tech media agency, and along the way he saw a gap in the market for a B2B marketing and creative agency that understood execution rather than media alone. Twelve years ago he founded Transmission. It is now close to 250 people across eight offices around the world, and it is the largest independently-owned B2B agency in the world.
In this conversation with host John Horsley, Chris Bagnall argues that B2B has leaned too hard on the demand generation funnel, marginalising marketing into a promotions department measured on lead volume rather than commercial value. He makes the case for the generalist agency and the business-savvy, board-ready marketer, points out that only around 3% of boards carry marketing representation, and insists that the 95 to 5 rule kills the logic of chasing short-term demand. He believes AI will replace much of the messy middle of the buying journey, which makes brand more important at the two bookends of awareness and decision, because no board signs off a supplier it has never heard of. Certainty, he says, is the enemy of growth.
So the whole MQL to SQL machine is waning, redundant, changing?
“It's, it's outdated. It's fundamentally flawed.”
It is outdated. It is fundamentally flawed. There is a saying I have been using: certainty is the enemy of growth. When people want absolute certainty of outcomes in marketing, it limits testing, learning and risk-taking, and it stagnates potential. Real growth requires embracing uncertainty and taking risks. Otherwise you are a slave to KPIs. When a business must hit certain KPIs, and people are bonused on them, it drives bad behaviour and bad results, and we have been a slave to that for far too long.
Do marketers feel pressure to bring in short-term revenue at the sacrifice of brand?
“You're fishing in a really, really small bucket if you're trying to drive short-term demand”
Most B2B sales cycles are complex, with many types of stakeholders over a long period across many channels. If your KPI is marketing or sales qualified leads, how do you appreciate the 95 to 5 rule? 95% of your audience are not in market at any given one time, sometimes more. So you are fishing in a really small bucket if you chase short-term demand and ignore long-term brand building. Boards need evidence of the long-term benefits of consistent brand building and its impact on every other facet of marketing.
How well equipped are B2B businesses for the new customer journey, AI engines and discovery?
“No board is gonna sign off someone that they've never heard of.”
Most brands are pretty ill-equipped, and there is no excuse. It is new-school SEO, and we have known SEO for 20 plus years, so only the rules of the game have changed. The messy middle, the research and consideration stage, is going to be replaced by AI, because the engines only care that content is relevant, findable and personalised. But the two bookends, awareness and decision, are where brand becomes even more important. No board is going to sign off someone they have never heard of, however well it performs in the studies.
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“Marketing has been marginalized, and we've been marginalized into performance-oriented marketing tactics and methodologies”
Over the last 20 to 25 years, as performance marketing and demand generation became prominent, marketing has been marginalised into performance-oriented tactics, partly because good digital marketing is genuinely hard. As marketing became a promotions department, other stakeholders picked up product, price, place and the other Ps. If you are not intertwined with those aspects, I do not see how marketers can demonstrate their commercial value to the board, so we spend a lot of time helping clients sell what they do internally and stop talking in speeds and feeds.
What does customer-obsessed marketing look like, and has B2B become more customer-centric or is it still inside out?
“CRM in itself is inherently inwardly-focused.”
Customer obsession is about anticipating the needs of customers and offering meaningful interaction that creates real value, putting yourself in their seat and predicting what they might want next. It is the Amazon or Netflix approach applied to B2B. Before this we had customer experience, and before that customer relationship management. CRM in itself is inherently inwardly-focused: a reporting and storing mechanism for internal needs, not something that puts the customer front and centre.
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