1 marketing and sales roundtable leveraging sales and marketing systems in early stage companies...

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Marketing and Sales Roundtable

Leveraging Sales and Marketing Systems in Early Stage Companies

November 2003

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©2003 Sevin Rosen Funds. All rights reserved.

Agenda

• Introduction and objectives• Marketing and sales closed loop system (MSCLS)• Perceived barriers to adoption of technology solutions• Timing for deployment of technology-enabled CRM systems• CRM: focused and leveraged marketing, sales and support management• Key success factors for CRM systems deployment • Sample CRM technology options• Representative hosted CRM solution – salesforce.com

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Effectiveness dependent upon functional relationships, processes and IT infrastructure (CRM)

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Sample Technology Options

• Mid-market CRM licensed software packages• Contact Management: Act, Goldmine• SFA: Siebel, SalesLogix, Pivotal, Onyx• MA/CLM: Kana, e.piphany• Support: Remedy, Siebel• SFA+CSS: MS-CRM

• Hosted CRM software and services (IT outsource)• SFA + MA + CSS + …: salesforce.com, UpShot/Siebel, SalesNet• MA/CLM: Eloqua, GotMarketing• CSS: RightNow• Surveys: SurveyMonkey• Referral networks: Spoke, LinkedIn• Suites (incl. ERP): NetSuite

Hosted model reflects budgets, resources and needs of small companies

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Perceived Barriers to Adoption of CRM Solutions

• Objection: Too early for automation• Rebuttal:Early stage companies need visibility into their market’s sales potential and

the success of sales and marketing initiatives more than anyone.• Objection: Technology is too expensive and takes too long to deploy• Rebuttal:With an online service, there is no hardware or software to buy, install, or

maintain, dramatically reducing your TCO and increasing your time to value.• Objection: SFA systems require too much work from sales force• Rebuttal:An SFA application properly implemented see >90% adoption rates and

significantly decreases time spent forecasting and reporting.• Objection: Route to market is through (uncontrollable) channels• Rebuttal:Using CRM, marketing can optimize market segmentation, analyze existing

customers for cross-sell/up-sell opportunities, standardize marketing and sales communications, and gain critical insight into lifetime customer value.

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Timing for CRM Systems Deployment

• Contact management – more than 1 prospect• Sales Force Automation (SFA) – first sales person• Marketing Automation/Closed-Loop Marketing (MA/CLM) – formal lead

generation program, product launch• Customer Service and Support (CSS) – general availability (G.A.), product

launch• Partner Relationship Management (PRM) functionality – more than 1

channel partner

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The Problem: Isolated Customer Data

• No shared source for customer information

• Management lacks visibility into the business and employee performance

• Sales, marketing and support teams cannot collaborate effectively

• Lost revenue and increased costs

Marketing Support Sales Sales

Isolated Employees Work From Individual Contact Managers Or Spreadsheets

MANAGER

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The Solution: Customer Relationship Management (CRM)

• Shared Customer Database• All team members can access shared customer information• Share tasks and calendar events

• Mapped to existing business processes• Standard sales methodologies• Custom fields • Custom reports

• Improved productivity, effectiveness and efficiency• Management visibility• Better collaboration and increased revenues• Lower costs

CRMDatabase

Sales

Sales

Support

Marketing

MANAGER

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Manage Customers AcrossThe Life Cycle

• Attract, grow and retain targeted and profitable customers• Optimize revenues and improve organizational efficiencies• Attain a 360 degree view of customer relationships• Improve customer satisfaction

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CRM: Focused and Leveraged Sales Activities• Allow sales reps to effectively manage multiple deals simultaneously

• Provide system support for standard sales methodologies

• Define, administer, analyze, and change sales territories

• Get visibility into all players involved with deals

• Instant access to the sales documents and materials

• Manage and identify the right customer references to help close deals

• Analyze past and emerging competitive trends

• Get pipeline insight and analysis

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CRM: Focused and Leveraged Marketing Activities• Plan marketing spend and manage all campaigns

• Measure campaign effectiveness (ROI)

• Track prospect inquiries and ensure leads are never dropped or lost

• Create targeted campaign lists by customer segment

• Setup lead capture forms on company website

• Arm sales with the up-to-date marketing collateral through a centralized document library

• Make channels more effective and self-reliant with high-impact HTML email templates

• Blast high-impact emails to prospects and customers with subsequent tracking

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CRM: Focused and Leveraged Service and Support Activities

• Track customer inquiries end-to-end with complete case history

• Define case resolution to assign and escalate cases based on service guidelines

• Setup case capture forms on website to directly receive and route customer inquiries

• Build and manage a repository of solutions (customer service portal - knowledge base)

• Make customers self-reliant by offering them an online service channel available 24x7

• Track customer service levels and trends in customer satisfaction

• Offer global support by establishing distributed service centers around the world

• Track key metrics on service delivery and team performance

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Key Success Factors

• Scope document – why needed, what’s included, initial goals, limiting factors such as international support/PRM functionality (can be as little as one page)

• Top-down management buy-in (and willingness to drive usage)• Assignment of company resources (business and operations) to define strategy, plan

deployment and execute• Well-defined processes (standard, predictable methodology, common language – e.g.

definition of ‘qualified lead’, rules of engagement, privacy guidelines) and metrics• System roadmap (functional integration, international, partners)• Change management plan: dependent processes/systems, multilevel

training/documentation, usage incentives • Acceptable system performance: access, data entry• KISS (focus on critical needs)

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Representative Hosted Solution: salesforce.com

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Time to Value for hosted CRM Systems

Net

Valu

e

Time

Go Live Date ~ 3 Months

Value to Customer

Source: Gartner, Customer Surveys

RiskRisk

Breakeven

6 months

>90%>90%SuccessfulSuccessful

ImplementationImplementationss

• “The average implementation length is 30 days, and customers typically report ROI of more than 300% in the first year.”

Source: Gartner Oct/2002

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Appendix

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MarketFocus Services Objectives

• Bring an objective, market-focused point of view to company strategies• Provide pragmatic ‘start-up’ marketing expertise to SRF portfolio companies

– Collaborate with portfolio companies’ management teams to make their companies look as credible and as ‘big’ as possible, as soon as possible

– Help accelerate companies’ time to market, time to money

MarketFocus Team• Line management experience/business perspective

• Extensive ‘go to market’ consulting and customer research experience

• Early stage market, company and product strategy expertise

• ‘Global’ business experience and understanding

• Strategic and implementation capabilities

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Sevin Rosen Funds Portfolio Companies Benefiting from Salesforce.com

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Opportunities to Leverage Technology

Activity Owner System Customer Data

Lead Generation/Qualification Marketing Marketing Automation/CLMReferral Networks

Prioritized leads

Sales Process Management Sales Contact ManagementSFA, PRMOrder Processing

Prospect, customer, channel/partner contactsSales funnel status

Fulfillment Operations ERP/SCM Order statusShipments and returns

Customer Service and Support Sales, Operations, Customer Service

Customer Service & Support (CSS) Support contact historyIssue knowledge base

Satisfaction Surveys Sales, Operations, Customer Service

Web Survey Tools Survey results

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Reducing Your Total Cost Of Ownership: The Iceberg Effect

Implementation &Customization Costs

Hardware

IT Personnel

MaintenanceTraining

Software Licenses

9%

43%

26%

14%

7%

1%

Source: Gartner Group

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Software license costs constitute less than 10% of your total cost of ownership.

Source: Gartner Group

The Old “Own Your Own” Way:Pre-Utility Automation

• Buy the software• Buy the hardware• Hire the dedicated staff• Customize, implement, train• Upgrade, update, maintain

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Successful Application Utility

• No software• No hardware• No dedicated staff• Go live in days rather than months• No-hassle upgrades, updates, and

maintenance….

Net-native applications are less than ¼ the total cost of ownership of enterprise software.

Source: Forrester Research

Ideal approach for fast-growing small companies (40% of salesforce.com business)

1 marketing and sales roundtable leveraging sales and marketing systems in early stage companies...

Documents

marketing systems

enabled crm systems

success of sales

infrastructure crm slide

sevin rosen funds

sales communications

sales roundtable

mscrm hosted crm software