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Episode 145  |  26:20 min

#Marketing: Coffee With a CMO w/ Joe Chernov

Episode 145  |  26:20 min  |  07.18.2018

#Marketing: Coffee With a CMO w/ Joe Chernov

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This is a podcast episode titled, #Marketing: Coffee With a CMO w/ Joe Chernov. The summary for this episode is: We are starting a new series of video/audio episodes called “Coffee With a CMO.” The idea is to have a relaxed conversation with a CMO and let the conversation take us to the real heart of things. First up is Joe Chernov, Chief Marketing Officer at InsightSquared. In this one, Joe covers a range of topics including why being a good interviewer is becoming such an important skill, the problem with common marketing metrics, and his journey from being known for his content to being known for his work with ABM. Use the promo code SEEKINGWISDOM when you get your tickets to HYPERGROWTH 2018 and save $500 today (just $199 for your ticket). Visit https://hypergrowth.drift.com/ to get your tickets today and come see speakers like Jocko Willink, Molly Graham, Chaka Pilgrim, Amelia Boone, Grant Cardone, and more in September. PS. The Seeking Wisdom Official Facebook Group is live! One place, finally, for all of us to hang out, get updates on the podcast, and share what we’re learning (plus some exclusives). Just search for the Seeking Wisdom Official group on Facebook.
We are starting a new series of video/audio episodes called “Coffee With a CMO.” The idea is to have a relaxed conversation with a CMO and let the conversation take us to the real heart of things. First up is Joe Chernov, Chief Marketing Officer at InsightSquared. In this one, Joe covers a range of topics including why being a good interviewer is becoming such an important skill, the problem with common marketing metrics, and his journey from being known for his content to being known for his work with ABM. Use the promo code SEEKINGWISDOM when you get your tickets to HYPERGROWTH 2018 and save $500 today (just $199 for your ticket). Visit https://hypergrowth.drift.com/ to get your tickets today and come see speakers like Jocko Willink, Molly Graham, Chaka Pilgrim, Amelia Boone, Grant Cardone, and more in September. PS. The Seeking Wisdom Official Facebook Group is live! One place, finally, for all of us to hang out, get updates on the podcast, and share what we’re learning (plus some exclusives). Just search for the Seeking Wisdom Official group on Facebook.

Dave Gerhardt: Hey, what's up everybody, it's DG. I'm so excited to drop some brand new stuff for you. Behind the scenes the last couple of weeks we've been working on a brand new show. It is all on video. We're going to drop the audio here as well, but you should definitely go and check it out. It is called Coffee with a CMO. I kind of stole this idea from a Seinfeld's Comedians in Cars Getting Coffee, but I thought it'd be fun if I went out and sat down with a bunch of the best CMOs out there, to not talk about," Hey, you went to this school and then you did this thing," but I want to know what's really happening. What's really going on in their lives, in their teams. And I want it to feel like you were sitting with us at a coffee shop or a fly on the wall and got to hear some stuff that you might not have otherwise heard. So, I'm super excited. It kind of like, it was an idea that we just had and we just went out and did it, and I couldn't be happier with how it turned out. And so over the next couple of weeks, we're going to be dropping all those episodes and I'm going to turn it into a regular thing. So I can't wait to show you all this one. The very first episode is with Joe Chernov. He is the CMO at InsightSquared, he was at HubSpot, he was at Eloqua, he was at Kinvey. Joe is actually my boss, and I've gotten to know Joe really well over the last couple of years. He's a super interesting guy. So it was really fun to have him be the first guest, go for a walk, and get a coffee. With him we talked about interview techniques, we talked about micromanaging, how he measures his team and really just whatever is going on in his mind in marketing. I really enjoyed this conversation with Joe. And so I'm super excited to drop that for you here on Seeking Wisdom. You can go check out all of the video, I would definitely recommend you going and checking that out. It's up on YouTube, you'll see it on Instagram, on Twitter, basically anywhere Drift is online will have this video if you want to go check out the full video. But all the audio is here as well, so you can listen in the car, at the gym, on the go. So here it is, the very first episode of Coffee with a CMO, with Joe Chernov.

Joe Chernov: So I'm a fool for doing the right thing. Cause the right thing doesn't ultimately suit me.

Dave Gerhardt: Right.

Joe Chernov: So I say it like, at times I'm in conflict. Joe CMO, and Joe generic executive are in conflict. And generally I try to side with Joe generic executive because it is more often than not the right thing to do.

Dave Gerhardt: Well because it is also hard like, it's hard to get up there and look like you missed the metric and be like, no, no, but look at all this other stuff we did.

Joe Chernov: Making excuses.

Dave Gerhardt: I'd rather have those conversations like, hit the number you were supposed to do, and then talk about how we should change the way we do it.

Joe Chernov: I was like the cost of empowerment. Let's look at micromanaging versus empowerment. The cost of empowerment is paid in decisions that weren't the ones you would've made. Right? And you have got to be able to come to terms with the fact that like, I'm going to give up some decisions that aren't what I would want. And in exchange for that, you get a more motivated employee that's going to generate more work. They're going to be a better addition culturally because they're going to be happier. And you're going to get more throughput, so if you have 5% of decisions are decisions you disagree with it keeps-

Dave Gerhardt: Let's talk about interviews. You talking about interviewing people?

Joe Chernov: Yeah.

Dave Gerhardt: Is that what you want to talk about?

Joe Chernov: Oh, no. Like this kind of interview.

Dave Gerhardt: Oh, you want to talk about this kind of interview? Tell me.

Joe Chernov: So...

Dave Gerhardt: I have thoughts on this too.

Joe Chernov: I think interviewing people is a skill. And I think its an overlooked skill. I don't mean hiring people, but this sort of interview. And as marketing gets more casual, like as business marketing gets more casual, and more about brand and the people, I think that a lot of good ideas get blown in the last mile because the marketing person says, “ Well I get the interview.”

Dave Gerhardt: Do you ever feel like you go and do interviews with people and you're like, “ This is awful ”. I feel like most people that what they do is they say, they have their five questions, like I have my five questions I'm going ask Joe Chernov-

Joe Chernov: No matter what he says.

Dave Gerhardt: No matter what he says, right? And then what they do is the second you answer that, is then they go, “ Next question.” On to the next question. It's like, the real stuff, which is why I wanted to do this and try this interview series, because I just want to have a conversation and see what comes out of it. The real good interviews, I think, are when it actually is a conversation, it's not an interview when it comes back.

Joe Chernov: With the people that you are inviting to participate, you can sort of go wherever that conversations going to go. But if you are sitting down with somebody that's a scientist or an entertainer, you have such limited domain knowledge that you can't just take it where they take it. And that's why a professional journalist that does the research and has a background to be able to adapt that's why you need that talent.

Dave Gerhardt: That's a good point. And knows this space.

Joe Chernov: Get somebody from Rolling Stone to interview.

Dave Gerhardt: Because they can know, “ Hey yeah, that thing that you did in ’96, that was interesting.” I thought you meant interviewing people this is a better topic. I think that's important for going forward as a skill in marketing that's very underrated. There's going to be more podcasts, there's going to be more video interviews, there's going to be more blog interviews. You've been doing this for a bunch of years now, I could probably go and Google 55 questions with Joe Chernov type of interviews out there.

Joe Chernov: But they're pretty much next question, next question.

Dave Gerhardt: You can't do that format. Let's talk about forms. You had a tweet, what did your tweet say? This was last night. Do you remember what it said?

Joe Chernov: I just say stuff.

Dave Gerhardt: You are a prolific tweeter, by the way.

Joe Chernov: Yeah, but nothing just resonates like it used to, I don't think anybody even wants to converse anymore.

Dave Gerhardt: Not anymore. Because I remember you used to have this tweet pinned to your Twitter profile that was like," The best time to call me is email."

Joe Chernov: Do you know that was a sub-tweet? The funny thing is that was a sub- tweet. Somebody called me, and he was kind of hammering me to try to sell, I responded in email and I said, “ Dude, the best time to call me is email.” And then I wrote him again. I said, “ Hey, I'm sorry. I'm going to do this, but I'm going to sub- tweet you right now.” So, I gave him a heads up.

Dave Gerhardt: I remember that was pinned and had thousands and thousands of retweets. I love that. Oh, there's the t- shirt design. I just feel like when you tweet, you're thinking about it. I just am like, “ Just say what...”. Okay, somebody's talking about forms. The form is the symptom. The problem is a lead centric, or lead only KPI for marketing departments. Again, show me how I'm measured, and I'll show you how I behave.

Joe Chernov: Yeah, so that was Tom Wentworth. He was saying something that was very pro Drift, so that's why you noticed it.

Dave Gerhardt: Yeah, no he tagged me in it. He said, “ Companies spent hundreds of thousands on the CMS and design just to drive someone to the same old tired, fill out this form.” That could've been a Drift ad. I wonder what a conversation-

Joe Chernov: I knew he liked that one.

Dave Gerhardt: Yeah. So he said, “ Or a conversation only at Drift @dgerhardt.” And before I could even chime in, you responded.

Joe Chernov: Yeah, I covered it.

Dave Gerhardt: Yeah, thank you.

Joe Chernov: Look, my point is, I say show me how I'm measured, I'll show you how to behave a lot.

Dave Gerhardt: I think that's a thing that doesn't get talked about enough. Which is why do you do what you do? Because look at what you're being held accountable for.

Joe Chernov: Most bad performers... A meaningful percentage of bad performers are likely bad performers because they've been given the wrong incentive.

Dave Gerhardt: Or they have no clear metric for the thing that they own.

Joe Chernov: Yeah, and so I'd rather almost give somebody no clear metric than the wrong one. We were talking about this where I have four... Should I go into this again?

Dave Gerhardt: Yeah, yeah, please. Because who knows what the audio is looking at.

Joe Chernov: We were talking about this before. I look at what I do for marketing, varying from company to company, but me at InsightSquared, I do four things. I try to generate demand.

Dave Gerhardt: Yep.

Joe Chernov: Okay?

Dave Gerhardt: Yep.

Joe Chernov: I also take care of our customers, and try to keep our customers happy, keep them longer. I turn them into advocates. Customer marketing. I have a brand to take care of. Part in parcel to brand is a community around that brand. Then the third is, it's like a magician knows what card you're going to pull from the deck. I know where we're going to take the business in the future. There's message seating-

Dave Gerhardt: Yeah. Teaching people about future stuff that you might launch.

Joe Chernov: There's grooming that makes the market more receptive to future product introduction. There are the things you try to do, but all of my metrics are around demand creation.

Dave Gerhardt: Or like you can do... You had one, two, three, four. You could be really good at two, three, four, but if you're not good at the first one, you're probably not keeping your job.

Joe Chernov: You're definitely not keeping your job. You'll never have a chance to show words. And so, just really basic here, do I put 25% budget, 25% budget, 25, 25? No.

Dave Gerhardt: No.

Joe Chernov: You starve these things at the expense of this. Is this the only thing that matters? No, does it even matter at disproportionately to the others? You could argue no. Especially in a venture backed business where the revenue is not the primary need when you have funding. Look at Drift. You guys are doing an awesome job on the branding, and that's going to payoff later. That's where you're going to get the acceleration.

Dave Gerhardt: Right. That's an important point. It's not like you and I started a company and its self funded, and if we don't hit our revenue goal this month, we are not going to make payroll. Of course, we don't want to miss that, but it's still... The runway is years, not a week.

Joe Chernov: We talked about HubSpot and blog. That's where those guys had unbelievable foresight. Like Mike, Dharmesh, and Brian. If they took that block and on day one, or on day 90 tried to use that blog as a way to spam people, their subscriber list, they tried to take their blog subscribers and sell them stuff overnight, they would have strip- mined that asset. They played it cool. They let it grow for years, and then they had an asset. And they had something that was motive. It was an unfair advantage. They knew enough to not strip- mine it. When we started the sales blog, I remember talking to Mike about what metrics we needed to hit before we thought about commercializing the blog.

Dave Gerhardt: Turning it into Legion and having-

Joe Chernov: But for a while, just building an audience. Nobody knows that better than Mike.

Dave Gerhardt: Yeah. What was your goal? When you launched a sales blog, was it traffic?

Joe Chernov: At first, it was traffic.

Dave Gerhardt: No lead, who cares about leads right now.

Joe Chernov: We didn't put show me how I measure, I'll show you how I behave. We put a lead gen KPI on it. What are we going to do? We're going to jam forms into it. We wanted to build an audience that we could monetize later.

Dave Gerhardt: So how does that apply to... You said some of this stuff earlier, what you're measured on today, it's not leads? You came up with your own definition for it?

Joe Chernov: Yeah. So, a lead is a unit of demand. But really, we're in the business of generating demand. It just can come in different units for different companies. Our unit demand-

Dave Gerhardt: One could be a demo request, verse a free tool, try a free tool, verse a webinar. Different conversion rates.

Joe Chernov: Those are all different types. So what we have is instead of leads, we have an alert. An alert is a type of engagement that we either create as marketing, or detect as marketing. It happens on an owned account. So, our sales team sells in a named account strategy. They have a lot of named accounts. This isn't like fortune 50. This is the fortune 50, 000. But those accounts are assigned, they're in territory, and they're named. Marketing gets credit when we generate an alert, a type of engagement, on one of those owned accounts. There are three types of alerts. And the types are designated by-

Dave Gerhardt: Did you come up with this? This is a new thing that you guys ended-

Joe Chernov: Yes.

Dave Gerhardt: Okay.

Joe Chernov: The types are stratified by historical conversion rates. So we have same day alerts. The name of the alert type is the SLA. Same day alert means as a sales rep, if this happens you got to touch them in the same day.

Dave Gerhardt: You got to touch them in the same day. What's an example of that? Is that like a demo request, or something like that?

Joe Chernov: Demo request of same day alerts.

Dave Gerhardt: Okay, okay.

Joe Chernov: At the low end, same day alerts have a 6% alert to conversion rate. Alert to operate at the high end, like 18 percent. In that ban is same day alert, and they've got 24 hours to follow up on. Actually, close a business, 24 hours if happens after 4: 00 PM. The next one down is next day alerts is at a 3% to 6% conversion rate.

Dave Gerhardt: So you might get it that day, and as a rep this is, “ Hey, tomorrow, here's what you're going to do.” Yep.

Joe Chernov: And you can follow up that day, but you're not going to get roughed up if you do it the next day.

Dave Gerhardt: Yeah, that's how it is. Yep. Yep.

Joe Chernov: And then the third type is, we call it check alert. That might be … we send a piece of direct mail. It'd be weird to call somebody and say, “ Hey, you get that coffee cup?”

Dave Gerhardt: “ Just checking in.” Are you tracking intent from other sources outside of your website, too? You said there's two types of marketing alerts. One of them is somebody did something with you, or you detected that something else had happened.

Joe Chernov: Yes. So, that's a good question. Yes. When you think of lead gen, you think marketing only gets credit if it produced the lead. If somebody filled out that form. If you hood winked somebody to giving you their personal information. They didn't say mickeymouse @ disneyland. com. My job is to try to help sales close deals faster. And so, we use data providers that give us signal as to one of those 50, 000 accounts is doing something that our sales team should be interested in. For example, if you are looking at our competitors on G2 Crowd, and you're looking at competitor to InsightSquared on G2 Crowd, that information gets fed into our CRM, triggers an alert that's a next day alert, a high conversion rate, and they have to follow up within essentially by the end of close business the next day. That was a product that G2 Crowd productized that 100% came from our request based on our learning system.

Dave Gerhardt: That came from you?

Joe Chernov: Yeah.

Dave Gerhardt: We use it. It's amazing.

Joe Chernov: So I called them, and they said they were productizing... Like, “ We'll send you a list of people that are looking at your listing.” My response was, “ I don't really care if they're looking at my listing. I mean, I do. But they're probably on my website too. They've alerted in other way. You know what I want to know? Are they looking at Brand X’s listing? That would be interesting for me.” And they said, “ Would you pay for it?” And I said, “ Starting tomorrow.”.

Dave Gerhardt: Sure.

Joe Chernov: It's the only thing I'll pay for.

Dave Gerhardt: So as head of demand gen, your demand gen person owns that as a channel?

Joe Chernov: Our opps person owns that, because our opps person owns the text stack. It's an API partnership, and so she is responsible for the API.

Dave Gerhardt: Will you talk about... I have one more question on this, and then I want to go to the other. You have these buckets by conversion rate, and so you have your next day alert is 3-6% conversion rate. Could that be multiple sources as long as they convert between 3-6%, they get in that bucket? Okay. So it could be a webinar, it could be an event. The conversion rate is what you use to say, whatever, six to 16, three to six, and then zero to-

Joe Chernov: To create the tranches.

Dave Gerhardt: Yeah, yeah.

Joe Chernov: We just rolled this out. This is like V2.

Dave Gerhardt: I like that, I like that a lot.

Joe Chernov: We just rolled this out. What we're going to do next is we've got to figure out now is are there too many in one bucket? And six is not a magic number here. It's just we looked at a histogram, and it looked like that-

Dave Gerhardt: Right. Because it could be 1% conversion rate, but a rep is going to have to touch all of those, which is not going to work.

Joe Chernov: The trick here, the secret to all of this is the check alert. The last tier is a check alert. And it means there's no SLA. You don't have to follow up on this, but we strongly encourage you to crosstalk

Dave Gerhardt: But I bet you if you look at your best reps, the percentage of them that are doing the check stuff, is probably-

Joe Chernov: Or if you're on plan, and you're not using your check alerts, are you really in it? Are you really hustling? Are you really trying to close deals? The check alerts is a form of marketing entrapment. If you're not checking them-

Dave Gerhardt: You mean if you're on plan, you could be blowing the number out if you're-

Joe Chernov: If you are on a plan-

Dave Gerhardt: Oh, on a performance plan. Yeah, yeah, yeah.

Joe Chernov: If you are on a performance plan, it's a great tool for management to say, “ Look, they're on a performance plan, but they're rummaging around these check alerts.” They're doing the right thing. That person is going to keep their job.

Dave Gerhardt: I love this.

Joe Chernov: If they're on a performance plan, and they're complaining about pipe, and marketing's not giving support, and they're not rummaging around this tranche, then are they in the blame game, or are they really trying to close deals?

Dave Gerhardt: Right. Right. It's an easy game if you only work the leads that close at 16%. That's what we all want to do.

Joe Chernov: Exactly.

Dave Gerhardt: This is exactly why I want to do this, because this is the deep stuff. I have one more thing then you got to go. You transitioned your career as a marketing leader from content guy to now your thing is ABM. I think of you as your CMO. ABM is your channel now, but what was the transition from being this content leader, to going to a company and having to basically throw out the playbook that got you to where you're at?

Joe Chernov: I was conflicted.

Dave Gerhardt: Was that like a holy shit moment? Or did you know if I want to keep growing, this is what I got to do?

Joe Chernov: I just want to solve a problem for the business.

Dave Gerhardt: Yeah.

Joe Chernov: And that content model was the wrong model for InsightSquared.

Dave Gerhardt: Yeah. But also, before I knew you, I knew you because I was reading your stuff, I was following what you were doing, speaking whatever... I think content was the channel at the time, like 2008 to 2012 ish was a sweet spot, which is like you could grow a massive funnel on content. Today, everybody has a blog. Everybody has a podcast. Everybody has video. There is so much noise in content. Nobody's at home being like, “You know what I wish I had? I wish I had more content from brands.”

Joe Chernov: I think there are two dimensions to this, and you nailed one of them. With each new blog that gets spun up, it becomes incrementally more difficult for your signal to be heard.

Dave Gerhardt: Yup.

Joe Chernov: Especially if you're marketing to sales and marketing where those industries have a lot noise in there. The second is the nature of the business itself. The content model makes most sense when you have an enormous addressable market, because you don't have that many false negatives. If you can sell to anybody, that anybody who comes to your blog is a potential prospect. If you're my father- in- law who sales software in nuclear power plants, it's a very constrained market, right? Most of the readers of his blog, if he were to have one, would be false positives, because it's such a specialized industry. The difficulties most companies are in the middle. InsightSquared is in the middle. Say our addressable market is 50, 000 Accounts. A blog is helpful for brand, a blog is helpful for building community, but it cannot be long- term your primary lead source in the way that it is if you're a HubSpot that has an enormous addressable market. HubSpot doesn't care if you're Mack Trucks, or a guy named Mack with a truck. They'll sell to the both of you.

Dave Gerhardt: And the product can work for both people, yeah.

Joe Chernov: And we care very deeply if you're Mack trucks, or a just Mack the trucker.

Dave Gerhardt: You need to find the 50, 000 companies with a sales opps person in the U.S.

Joe Chernov: Yup. That has a board that expects growth, that looks for very specific types of rapport, and very specific-

Dave Gerhardt: Yup. Yup. So, that makes it obvious. That's where you're going to start. It's not that you're not doing... You're not creating content, you still care about your brand. How do you figure out where to invest in content?

Joe Chernov: We look at it as, the theme, our internal ethos is content that serves multiple masters. I need to create a piece of content... In the content marketing world, they would talk about atomizer content, and it would be on a blog, and then simplified for Twitter, and then it can be a brand's Facebook post, and then medium came along and summarized it on medium. It's the same idea, but it's not atomizing it so much as saying, “ I need content that there is a version of it for the blog. But then there is a more product relevant version of it for the sales team, and then a heavily, how- to version of it for the customer, too.” So, it's not about atomizing it in the way that adapting it for different channels, but think about marketing as an overlay across the entire customer journey. That's essentially what those four pieces were that I talked about. If it's an overlay on top of the entire customer journey, and I have limited resources, I need a piece of content to be adaptable to multiple stages.

Dave Gerhardt: What else should we talk about before you go? I'm good. What is one thing that's still driving you nuts in marketing? Like, when you see it.

Joe Chernov: The form stuff, that leads that top of funnel has sucked up all the air in the room. Makes me crazy. That makes me nuts. What else? You know, I'll tell you a really good piece of advice I got.

Dave Gerhardt: Yeah, give me some advice.

Joe Chernov: I think about this a lot. Especially... Take Drift, you guys are growing really quickly. Remember, I said to my former CEO when I was at Eloqua, for a while I reported to him. I was grousing about my work load, or something. And he asked about how I was performing in hiring. I had a number of open recs, and he was asking me how close I was to filling them. “ Joe, I can't get to those. I have all these other things to do.” And he said, “ You're upside down on this. The only thing that matters is hiring the right people. You hire the right people, and everything else falls into place.” I was like, “Oh, he's got a really good point.”

Dave Gerhardt: I love it. That, on top of what you said to me when we were outside, which was the micromanaging piece. Those are the two things that I feel like. The right people, and then letting them do what they were hired to do. And then your job is almost like the GM that has to move around the right pieces. You're not batting. You're not in the line up.

Joe Chernov: Well, if you don't get the people, you have to be.

Dave Gerhardt: You have to be, but then that's a problem. Because when you're in the line up, you become a bottleneck. You don't have the bandwidth to actually do it.

Joe Chernov: Let's say you succeed at extracting yourself from the lineup.

Dave Gerhardt: Sure.

Joe Chernov: Now, this is the time where we do sports metaphors, and everybody rolls their eyes.

Dave Gerhardt: Okay, that's fine. That's fine. No, it's fine.

Joe Chernov: You become the GM, and you're hovering above it, and you're just moving around players. It's really hard, then, to figure out if you're doing a good job or not. Because you've grown up judging yourself by batting average, on base percentage home runs, and all a sudden none of those apply to you. That's one of the areas that new managers and new GMs, if you will, struggle, because all of a sudden you have different metrics. The old metrics are more familiar, so you start to seep back into the players in the field.

Dave Gerhardt: Okay, one thing before we go. How do you balance... You are a busy exec at a company, you have a growing family, do you believe in this work life balance? Is it the Jeff Bezos circle? How do you battle it?

Joe Chernov: You ready?

Dave Gerhardt: I'm ready, I want to know yeah.

Joe Chernov: This is the one I go by, and I'm not saying it's right. One night I was driving late at night, and I heard this radio show on where it was like, ask a veterinarian. And this women called, and she said, “ I have two bull dogs.” This is true.

Dave Gerhardt: I believe it.

Joe Chernov: And she's like, “ I can't stop them from biting. And I'm afraid they're going to hurt each other.” And she was really upset. The vet said, “ Good news, bad news. Good news is I got an answer. Bad news is you aren't going to like it.” And so the answer was, let them fight. One of them is going to win. They generally won't hurt each other. And then it gets worse. The one that wins eats first. The one that wins gets let out the door first. You reinforce that hierarchy. They are comfortable with the hierarchy. I think that family and work, unless you let one of them win, will always tear each other apart. You've got to pick the one that wins, and then feed that one first. I reached a juncture in my career when I verbalize family comes first. I try to feed it first. I try to spend my time there first, and I don't feel guilty about it.

Speaker 3: I like that. All right. Let's, that's a perfect place to wrap. You got to go. It's been great.

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