Why Thought Leadership Marketing is NOT Just Giving Information Away
“Won’t this content that we’re publishing be giving away too much to our competitors?” or “Our customers are going to take this great information that we’re publishing and use it to shop our competitors.” Are two very common objections that I often hear when introducing an organization to Thought Leadership Marketing. They are both logical concerns, I agree, but there are a few reasons why thought leadership Marketing is NOT just giving away information to your customers and competitors to use against you. Let’s explore:
Thought leadership is based on your organizational competence: Thought leadership marketing is based on nearly equal parts organizational competence and customer & industry depth of understanding. If your organization’s competence is truly differentiated (and if it isn’t , why are you still in business?) and you have the deep, nuanced understanding of your customers and markets that your thought leading content claims that you do, then your competitors are virtually eliminated from view in the eyes of the customer who seeks your unique competence. The marginal value of directly copying a competitor’s thought leadership position, and thus usurping their competence and plagiarizing their work in understanding customers and markets is antithetical to a sound strategy and an easily defensible position from the thought leader’s perch.
Thought leadership and customer education inspires trust: So what, who cares about trust and why teach my customers any more than they need to know? Actually, trust is one of the most coveted of all aspects in a supplier-customer relationship and is becoming an increasingly important element in the value proposition that customer derive from their supplier relationships. A recent study published in the MIT Sloan Management Review illustrates the long term value to educating customers through thought leadership content in the financial services industry. Customers that are made knowledgeable through the efforts of the organization exhibit higher loyalty scores, place greater value on the organizations’ complete suite of services and ultimately value the shared wisdom of the supplier as part of the overall value equation.
Trusted advisers & thought leaders are more likely to get the sale: According to Brian Carroll in his book, Lead Generation for the Complex Sale, a 2002 research report found that salespeople that had reached the status of “trusted adviser” were 70% more likely to come away with a sale. Thought leadership marketing help organizations position their business development and sales personnel in the position of trusted adviser throughout the lead nurturing process by:
- Making your potential buyers more familiar with who you are, what you do and how you add value.
- Delivering the impression that you are leaders and experts in your respective field.
- Illustrating that your company, and thus, your salespeople, understand and can specifically address the unique needs of the prospect.
- Allowing buyers ample time to ‘get to know you’ and self-select into your ‘customer tribe’ (or, opting out if they’re not a qualified prospect!)
Thought leadership reaches prospects earlier in the decision cycle: Thought leadership or knowledge leadership in marketing offers value that outpaces the impact of any advertising that a business-to-business might pay for. According to Joyce Renney, Associate Director at Lighthouse consultants, “Successful thought leadership is about creating exceptional content that provides insight into business issues. That’s what makes executive buyers choose one firm over another.” In case after case of thought leadership from organizations ranging from Cisco to Crest to your local thought leading ad agency, by the time your competitors have come around to your way of thinking, your prospects (who may even be their current customers) are much further along in their decision to do business with you.
Thought leadership ‘pulls’ or attracts a different type of client: In the RainToday.com publication, How to Become a Thought Leader, several of the interviewees attest to benefiting from the ‘pull’ marketing that thought leadership contributes to. Their marketing expenses dropped, their recognition in the industry increased and they were increasingly sought after by companies that wanted to do business with their organizations because of their ideas, willingness to share and transparency. Additionally, those same companies sought out thought leaders regardless of their fee structure, which is often higher than the rest of the industry.
All that said, thought leadership marketing is not for every company. A commitment to your customers, your market and raising the bar on your industry are must-haves, and not every organization has the passion and tenacity to pursue such a strategy. However, the awards of increased profitability, industry acclaim and being able to do more cost effective ‘pull’ marketing vs. spending money on advertising and ‘push’ marketing await those willing to walk the path of the thought leader.
