Sales & Marketing alignment: Happy marriage or forced coexistence?
-
Upload
b2b-marketing-forum -
Category
Business
-
view
987 -
download
0
description
Transcript of Sales & Marketing alignment: Happy marriage or forced coexistence?
Best Practice in B2B Marketing
Sales and Marketing Alignment: Happy Marriage or Forced Coexistence?
Meta KaragianniResearch Director, Executive Edge CMO
SiriusDecisions, Inc.
B-to-B Sales and Marketing Alignment: Happy Marriage or Forced Coexistence?Meta KaragianniResearch Director, Executive Edge CMO
14 March 2013
© Copyright SiriusDecisions. All Rights Protected and Reserved.
Agenda
• SiriusDecisions: Brief Overview• Usual vs. Best-in-Class B-to-B Scenario• Sales and Marketing Alignment
– What does it look like? – How do you create it? – Is it worth the pain?
• Summary and Closing Remarks
3
SiriusDecisions: Brief Overview
© Copyright SiriusDecisions. All Rights Protected and Reserved.
SiriusDecisions Offering Architecture
5
Usual vs. Best-in-Class B-to-B Scenario
© Copyright SiriusDecisions. All Rights Protected and Reserved.
The Usual B-to-B Scenario
7
Inquiries
Marketing Qualified Leads
Sales Qualified Leads
Close
SiriusPerspective: Weak alignment at the top of the waterfall results in poor performance in the middle and bottom.
417 inquiries to close 1 deal
417 inquiries to close 1 deal
Sales AcceptanceSales Acceptance
Marketing and Tele QualificationMarketing and Tele Qualification
InquiryInquiry
80%No nurture/qualification
100%Sales acceptseverything/nothing
3% - ??Inefficient use of sales resources
SQL10% - ??Poor pipeline
dynamics
Sales QualificationSales Qualification
© Copyright SiriusDecisions. All Rights Protected and Reserved.
How Does This Happen?
8
Sales wants “leads!”Marketing hits the “more”
button
Sales doesn’t follow up Marketing: “Why no followup?”
Sales: The “leads” are no good Marketing:
Wasted effort, poor performance, bitterness,
despair
© Copyright SiriusDecisions. All Rights Protected and Reserved.
The Best-in-Class B-to-B Scenario
9
Inquiries
Marketing Qualified Leads
Sales Accepted Leads
SiriusPerspective: Strong process and alignment at the top of the waterfall creates strong efficiencies in the middle and bottom.
70 inquiries to close 1 deal
70 inquiries to close 1 deal
Sales AcceptanceSales Acceptance
Marketing and Tele QualificationMarketing and Tele Qualification
InquiryInquiry
9.3%Real lead qualification
85%Strong process that is adhered to
62%Sales becomes more efficient
SQL29% - ??
Pipeline dynamics improve
Sales QualificationSales Qualification
• How does this happen?
© Copyright SiriusDecisions. All Rights Protected and Reserved.
Best Practice Attributes
Sales Pipeline Sales Alignment
Program Mix Integrated
• 30%+ Sourced*• 70%+ Influenced*• Not a Leads Only Focus
• Flexible Programmes• Strong SLAs• Targeted and Sales Stage
Based
• Multi-Channel• Web Centric• Nurturing Model• Best Practice Syndication
• Based on Buyer’s Journey• Multi-Touch Programmes• Data Centric• Web Focused
SiriusPerspective: While there are many differences between average and high-performing companies, four characteristics are consistent.
* Varies by organizational size and target markets
10
Getting to Alignment
© Copyright SiriusDecisions. All Rights Protected and Reserved.
What Is Alignment?
SiriusPerspective: There are four key areas of alignment between marketing and sales.
Key Issue: How do your customers buy?
1. Buyer’s Journey 2. Activity Alignment
Deliverable: Buyer’s journey model that sales and marketing will use as a common denominator for strategy, process and activity alignment.
Key Issue: What are the sales and marketing activities along the buyer’s journey?
3. Campaign StructureKey Issue: What language, structure and visual descriptions will you use to describe marketing and sales efforts?
Deliverable: One view on campaign nomenclature, lead definition, lead nurturing and SLAs between sales and marketing.
Deliverable: Identification of marketing programmes, sales requirements/process and role clarification at each stage of the buyer’s journey.
4. Planning/MeasurementKey Issue: How will the planning and measurement process change as a result of buyer’s journey?
Deliverable: Waterfall model of closed-loop measurement. Integrated marketing planning model.
12
© Copyright SiriusDecisions. All Rights Protected and Reserved.
Buyer’s Journey
SiriusPerspective: B-to-b buyers are engaging with sellers later in the buying process, forcing marketing and sellers to adjust their roles.
13
① Loosening of the Status Quo
① Loosening of the Status Quo
VendorSelection
Phase
VendorSelection
Phase
Solution Phase
Solution Phase
Education Phase
Education Phase
② Committing to Change② Committing to Change
③ Exploring Possible Solutions
③ Exploring Possible Solutions
④ Committing to a Solution
④ Committing to a Solution
⑤ Justifying the Decision⑤ Justifying the Decision
⑥ Making the Selection⑥ Making the Selection
Sal
es P
roce
ss
On
line
Rel
atio
nsh
ip
Inb
ou
nd
M
arke
tin
g
79% start their evaluation with search
33% consult peers and ask questions
on social sites
53% consume vendor social content
and do research
© Copyright SiriusDecisions. All Rights Protected and Reserved.
Early Digital Engagement Is Not Only for the Youth
Chief Financial Officer (CFO)
1.Ask my team for options
2.Search the Internet (for specific vendors by name)
3.Call an industry analyst
4.Call on my social network
5.Search the Internet (product or technology category)
6.Search the Internet (problem or initiative)
7.Explore a known association Web site
8.Peruse vendor booths at industry trade show
9.Call an industry peer
10.Explore a known vendor Web site
11.Explore a known online community
Chief Marketing Officer (CMO)
1.Search the Internet (product or technology category)
2.Explore a known vendor Web site
3.Ask my team for options
4.Call an industry peer
5.Call on my social network
6.Call an industry analyst
7.Explore a known online community
8.Search the Internet (vendors by name)
9.Peruse vendor booths at an industry trade show
10.Explore a known association Web site
11.Search the Internet (problem or initiative)
Chief Information Officer (CIO)
1.Search the Internet (problem or initiative)
2.Explore a known vendor Web site
3.Ask my team for options
4.Explore a known online community
5.Search the Internet (product or technology category)
6.Explore a known association Web site
7.Call an industry peer
8.Call an industry analyst
9.Search the Internet (vendors by name)
10.Call on my social network
11.Peruse vendor booths at an industry trade show
14
© Copyright SiriusDecisions. All Rights Protected and Reserved.
Activity Alignment
Qualification
Propose
Solution Validation
Suspect
Solution Identification
Committing to
ChangeExploring Possible Solutions
Justifying the
Decision
Committing to a
Solution
Product LaunchPromos/OffersEvents/WebinarsAccount Based MarketingCreate
Website/SEO/SEMSelf-Guided DemosAnalyst ReportsLead Nurturing ProgrammesNurture
Presentations/ In-Person DemosCompetitive Tools/ Customer References
Enable
Trials/Proof of Concept ROI Tools Exec BriefingsPipeline Acceleration Programmes
Accelerate
Suspect
Loosening of the Status
Quo
AdvertisingThought LeadershipGlobal CampaignsSeed
Tactics and Programmes
Making the
Selection
Close
Customer NewslettersOnline CommunitiesValue ReviewRelationship Marketing
Retain
15
© Copyright SiriusDecisions. All Rights Protected and Reserved.
Buyer-Centric, Integrated Campaign Structure
SiriusPerspective: Integrated campaigns combine messaging and marketing activities along the buyer’s journey.
16
Education Solution Vendor Selection
BUYING CYCLE
TOUCHES
NEW CONCEPTNEW PARADIGM
ESTABLISHED MARKET
Education Education Solution
T1 T2 T3
Solution Solution Selection
T1 T2 T3
Selection Selection Selection
T1 T2 T3
MESSAGING
Reputation Demand Creation Sales Enablement
White Paper Webinar Case Study White Paper Event WebinarAnalyst Report
Case Study
Peer Interaction
© Copyright SiriusDecisions. All Rights Protected and Reserved.
Service-Level Agreements: The Ties That Bind
SiriusPerspective: A core set of SLAs must be created, and adjusted over time based on data.
17
TeleprospectingDemand Centre/ Field Marketing
Field/ChannelSales
Lead acceptanceTimeframe
Bypass/exceptionsDisposition
Special programme alignment
Lead acceptanceTimeframeDisposition
Rep alignmentProgramme alignment
© Copyright SiriusDecisions. All Rights Protected and Reserved.
Demand Type and Lead Level
SiriusPerspective: Demand type also will provide significant guidance in terms of the “type” of lead you are looking for.
18
New Concept
New Paradigm
EstablishedMarket
© Copyright SiriusDecisions. All Rights Protected and Reserved.
Lead Waste: It’s Everyone’s Problem
SiriusPerspective: Just like the best goal scorers, the best demand creators fail much more often than they succeed.
19
83838383 The percentage of MARKETING qualified leads that will NOT make it to closure.
80808080 The percentage of SALES qualified leads that will NOT make it to closure.
© Copyright SiriusDecisions. All Rights Protected and Reserved.
Setting the Stage: Nurture TypesSiriusPerspective: Prospects can “sit” in a variety of demand waterfall stages; thus, b-to-b organizations must consider multiple nurture types.
20
2
2a: Active Recycled2a: Active Recycled Nurturing when a prospect is rejected by a sales resource for a pre-determined reason
Nurturing when a prospect has experienced no movement for a pre-determined period of time, but has not been rejected by sales
2b: Passive Recycled2b: Passive Recycled2
Nurturing when a once-engaged opportunity has died on the vine, with no activity for months or even quarters
ReconstitutedReconstituted3
3
Pre-MQLPre-MQLNurturing before a prospect is handed off to a teleprospecting, field or channel resource
1
1
© Copyright SiriusDecisions. All Rights Protected and Reserved.
Lead Nurturing Framework: Components
SiriusPerspective: A complete nurture effort – regardless of type – is built on four pillars.
• Entry– The pathway(s) for a prospect to move into a nurture flow
• Treatment– The content, offers and messages used to drive incremental activity with the
prospect
• Transition– Signals that a prospect is ready to be moved back into an “active demand”
state
• Disposition– Location(s) where a nurtured prospect will be delivered
21
© Copyright SiriusDecisions. All Rights Protected and Reserved.
The SiriusDecisions Lead Nurturing Framework
SiriusPerspective: By crossing nurture types with key components, a new framework is born.
22
Pre-MQL Recycled: Active Recycled: Passive Reconstituted
Entry
Treatment
Transition
Disposition
© Copyright SiriusDecisions. All Rights Protected and Reserved.
Nurturing Framework: A ChecklistSiriusPerspective: Depending on the type – or types – of nurturing your organisation pursues, use our checklist to determine your readiness.
23
Pre-MQL Recycled: Active Recycled: Passive Reconstituted
Entry
• Target market agreement (companies, entry points)
• Complete, clean list (owned or purchased)• Inbound marketing strategy
• Disqualification reasons• CRM-to-MAP prospect feed• Visibility rules (e.g. can sales still
see active nurture prospects)• Service-level agreements (if any prospects
will go to tele)
• Time thresholds for lead inactivity• Warning system (first-line manager, sales
rep)• Service-level agreements (field to tele)
• Aging opportunity parameters• Segmentation rules• List pull process
Treatment
• Need-based campaign structure• Decision-based demand program• Conversion-optimized Web site• Content• Information collection strategy (categories,
gating approach)
• Hierarchical touch strategy (reason, category of interest, vertical, role)
• Scripts/templates (if tele is involved)• Information collection strategy
• Teleprospecting scripts• Email templates• Pre-call/post-call content
• Multi-touch reconstituted program• Content to serve• Information collection strategy
Transition
• Lead scoring schematic(s)• Lead definition threshold(s)
• Lead scoring schematic(s)• Tele-triggers/definitions• Sales removal permissions
• Contact rules (number of times dialed/emailed)
• Requalification rule set
• Lead scoring schematic
Disposition
• Marketing automation/CRM linkages• Service-level agreements (marketing to tele,
marketing to field)• Lead bypass rule set• Procedural rejection rules
• Service-level agreements (marketing to tele, tele to field)
• Lead bypass rule set• Procedural rejection rules
• Non-qualifier/no contact pass (tele to marketing)
• Qualifier pass (tele to field)
• Non-qualifier/no contact pass (into long-term recycling)
• Qualifier pass (tele to field)
Is It Worth It?
© Copyright SiriusDecisions. All Rights Protected and Reserved.
Marketing Around the Buyer’s Journey
25
‘One-and-Done’ Buyer-Centric/Integrated
Lead to Close 15.3 7.2
Sourced Pipeline 15.5% 30%+
Close Rate 19% 24.5%
Influenced Pipeline 52% 70% +
Marketing Touches 25 + 15 - 20
Programs 50 + < 30%
Program Design Single Channel Multi Channel
Campaign Focus Product Solution
Primary Source eMail Web
Marketing Pipeline Cost 2% - 3% .5% -1.5%
SiriusPerspective: Today’s marketing ecosystem centers on the buyer’s journey, where marketing disciplines must effectively work together.
© Copyright SiriusDecisions. All Rights Protected and Reserved.
Average vs. Best-in-Class
SiriusPerspective: High-performing companies market to all areas of the waterfall to impact performance.
Waterfall Conversion Rates
Inquiries
4.1%Marketing Qualified Leads
(MQLs)
Sales Accepted Leads
Sales Qualified Leads (SQLs)
Closed/Won Business
5.8% 9.7%
Average StrongBest-in-Class
62% 65.6% 74.5%
47.5% 56.4% 60.5%
22.1% 26.9% 30.7%
What do high-performing companies do differently?
Seed
Create
Nurture
Enable
Accelerate
26
© Copyright SiriusDecisions. All Rights Protected and Reserved.
Five Things to Remember
1. Buying behaviour is significantly changing, increasing marketing’s importance in the early stages of the buying cycle
2. Best-in-class organisations embrace that change and align how they are selling to how their customers are buying
3. To drive best-in-class performance, sales and marketing must align around five waterfall-based jobs
4. That alignment is underpinned by strong SLAs, common processes and clear roles and responsibilities
5. “Buyer’s journey” marketing results in stronger performance
27
© Copyright SiriusDecisions. All Rights Protected and Reserved.
Thank You!
Meta Karagianni Research Director, Executive Edge CMO [email protected]: 00447717814586
Brian AtkinsonEMEA Business Development [email protected]: 00447739363545
28
Appendix
© Copyright SiriusDecisions. All Rights Protected and Reserved.
Introducing the Rearchitected SiriusDecisions Demand Waterfall
SiriusPerspective: A number of factors have driven us to realize that it’s time to take a hard look at an old friend.
30
Changes/ObservationsChanges/ObservationsInquiryInquiry
OutboundOutboundInboundInbound
Marketing QualificationMarketing Qualification
Teleprospecting Qualified Leads (TQLs)
Teleprospecting Qualified Leads (TQLs)
Teleprospecting Accepted Leads (TALs)Teleprospecting Accepted Leads (TALs)
Automation Qualified Leads (AQLs)Automation Qualified Leads (AQLs)
Teleprospecting Generated Leads
(TGLs)
Teleprospecting Generated Leads
(TGLs)
Sales QualificationSales Qualification
Sales AcceptedLeads (SALs)
Sales AcceptedLeads (SALs)
Sales Generated Leads (SGLs)
Sales Generated Leads (SGLs)
Sales Qualified Leads (SQLs) Sales Qualified Leads (SQLs)
CloseCloseWon BusinessWon Business
Three Key Reasons for the Change1.The original waterfall didn’t account for demand that was sourced outside of marketing
2.The original waterfall obscured the role of teleprospecting in the overall demand creation process and could potentially send the wrong message about the criticality of this function
3.The original waterfall wasn’t specific about the role of inbound marketing, and this masks an ongoing shift of lead sources over the past five years•Changes we made: We introduced…
– New stages to reflect a more complete view of the journey demand takes from cold to close, and the different points at which it originates
– Stage rollups (4) grouping together activities related to one another
– Specific color-coding‒ Red: Demand originated from Marketing‒ Green: The handoff of demand from one function to another‒ Orange: Demand originated in teleprospecting‒ Blue: Demand originated in sales
© Copyright SiriusDecisions. All Rights Protected and Reserved. 31