Industry Q&A: What’s Up With B2B Marketing in Argentina?

I was teaching B2B digital marketing to master’s degree students at San Andres University in Buenos Aires again this summer. The students were pretty enthusiastic about the concepts and tactics I shared. So, I decided to look into what’s going on in B2B marketing in Argentina, overall.

I was teaching B2B digital marketing to master’s degree students at San Andres University in Buenos Aires again this summer. The students were pretty enthusiastic about the concepts and tactics I shared. So, I decided to look into what’s going on in B2B marketing in Argentina, overall.

Martin J. Frias
Martin J. Frias

Thanks to an introduction from the longtime agency pro and university instructor Freddy Rosales, I had the chance to meet Martin J. Frias, who filled me in. Here’s what I learned.

Ruth Stevens: How do B2B marketers in Argentina approach new customer prospecting these days?

Martin Frias: Twenty years ago, we would buy databases from trade publications and data vendors, and use them to cold call, trying to reach senior executives. The problem in those days was getting past the gatekeepers.

Stevens: What has changed since then?

Frias: Three things. First, technology. Buyers now have anonymous access to product information. Sellers — even smaller brands — are using marketing automation like InfusionSoft, Marketo, and a local provider called Doppler emBlue to conduct event-triggered campaigns. Second, inbound marketing, meaning content posted by sellers on LinkedIn and blogs. Third, a larger role for marketing, as active members of inside sales and lead qualification teams. But I must tell you, not all firms are moving toward this kind of modern marketing. Most are still doing the same old push email and events.

Stevens: So, what’s still missing?

Frias: A shared vision between sales and marketing about the entire demand generation and sales process. The two sides need to agree on what is a lead, how to define qualification, and identify the tools needed to operate — from marketing automation, to CRM, to ERP. In short, sales and marketing need to take joint responsibility for guiding the buying process.

Stevens: I am hearing that WhatsApp is a favorite tool here. Please explain.

Frias: Yes, WhatsApp offers an enterprise network tool that integrates with marketing automation, so you can manage omnichannel messaging via WhatsApp, Facebook, Instagram, and others. But you have to be careful. It can backfire. Many business buyers consider WhatsApp an exclusively personal medium, and they resent receiving business communications through it. Also, I think businesses may worry that their targeted communications could fall into the hands of competitors, thanks to WhatsApp’s extraordinary ease of sharing.

Stevens: Are there any prospecting data sources available now?

Frias: You can buy data, or you can buy access. For example, there’s an IT community platform here with a half a million subscribers. Marketers generally don’t trust the databases that are for sale. At my agency, we use LinkedIn Sales Navigator; whereby, we can contact 5 million Argentinean professionals, mostly those in middle management. We use LinkedIn’s Social Selling Index, company size, industry, and title for segmentation, and we attract the targets with content.

Stevens: Is there a professional association for B2B marketers in Argentina?

Frias: No. I wish there were. There is a post-grad program in B2B marketing offered at ITBA, one of our leading engineering schools. The tech industry is really the leader in B2B marketing here. Other key industries, like oil and gas, manufacturing, and construction, are more interested in brand positioning and awareness, and less about lead generation. So, they focus on their websites, value propositions, sales collateral, trade shows, and business events — like golf outings, and sponsoring sports events. They’re not using content, marketing automation, and lead management.

Stevens: Please tell me about yourself and how you became active in B2B marketing here in Argentina.

Frias: I started at Oracle Hyperion, heading a lead generation team in the financial services area. Then I worked at several other firms. Now, I have a 15-person agency called Pragmativa. We offer full B2B demand generation services, including website design, search marketing, display advertising, content, social media, and marketing automation. So, we’ll run a client’s prospecting, and manage their data. The one thing we don’t do, because I don’t believe in it, is cold-call telemarketing. Despite frequent requests from clients.

Stevens: Anything else you’d like to share?

Frias: Yes, I have a B2B marketing blog, in Spanish, and welcome followers.

 

A version of this article appeared in Biznology, the digital marketing blog.

Assessing the USPS January Rate Hike – Start the Clock

While we still wait for the Senate Homeland and Governmental Affairs Committee to move forward with a meaningful postal reform bill (the vote to mark it up has been postponed), the Postal Regulatory Commission provided some very tough news for mailers to swallow just ahead of Christmas Day

While we still wait for the Senate Homeland and Governmental Affairs Committee to move forward with a meaningful postal reform bill (the vote to mark it up has been postponed), the Postal Regulatory Commission provided some very tough news for mailers to swallow just ahead of Christmas Day.

By a two-to-one decision, the PRC concluded that the United States Postal Service, on its second attempt to do so, did offer enough evidence that the Great Recession (2007-2009) did help generate two years of financial losses to create an “exigency” scenario—and protestations and counter evidence that volume and revenue decreases were created by other means (digital migration, Congressional mandates and such) were not enough by mailer and business groups to prevail and reject the exigency claim. Now mailers will have to suck it up—or go elsewhere with their marketing dollars, come January 25. That is when the annual Consumer Price Index-capped increase plus the exigency increase in postage is slated to take effect. Ouch!

Well, due process and due diligence had its day—a dismal one for mailers—and now a real-life experiment will happen. What will the two-year “exigency” rate hike of 4.3 percent—three times the rate of inflation when added to the already-slated CPI hike—do to marketing mail trends this time around?

When the 2007 postage increase took effect, the results were devastating for flats mailers, who endured an unexpected punishing increase.

“The 2007 rate increase was the real culprit for flats volume declines,” said Hamilton Davison, president and executive director of the American Catalogers Mailers Association, recently. “The recession didn’t help either, but the pullback in volume from catalog mailers, for one, was dramatic. Some of our wounds in growing our own businesses have been self-inflicted. Typically mail order businesses have 40 percent to 70 percent of their total mail volume dedicated to new customer prospecting. After the 2007 rate hike, that was cut to near zero. When you stop prospecting, sooner or later your own house file of customers deteriorates due to attrition. But by that time, a vicious cycle occurs, where there are too few new names to mail. The universe of mailable names has declined, and that is hurting the catalog industry just as the economy has been improving.”

Will such a similar outcome happen now that First-Class and Standard Mailers are facing a total, and unexpected, rate hike of 6% in less than 30 days? Like it or not, the clock starts now and we shall see. For some marketers, I fear, enough is enough. And meaningful postal reform still waits in the wings.