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


SiriusDecisions Offering Architecture

5

Usual vs. Best-in-Class B-to-B Scenario


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


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


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


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.



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


• How does this happen?


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

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Getting to Alignment


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


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


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)








8.Search the Internet (vendors by name)

9.Peruse vendor booths at an industry trade show



Chief Information Officer (CIO)









9.Search the Internet (vendors by name)


11.Peruse vendor booths at an industry trade show

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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


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


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


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


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.


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


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


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


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?


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.


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


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


Thank You!

Meta Karagianni Research Director, Executive Edge CMO [email protected]: 00447717814586

Brian AtkinsonEMEA Business Development [email protected]: 00447739363545

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mailto:[email protected]

mailto:[email protected]

Appendix


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 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