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Focus Experts’ Guide:
Sales and Marketing Pipeline and Funnel Models

Focus Research
October 2010

Contributing Experts:
Ardath Albee
Michael Brenner
Michael Damphousse
Christopher Doran
Barbra Gago
Steve Gershik
Sue Hay
Matt Heinz
Carlos Hidalgo
Jon Miller
Adam Needles
Tom Scearce
Matt West
Steve Woods                               Focus Research ©2010
Introduction


                                 Welcome to our the first edition of the Focus Marketing & Sales Book of Funnels. We are very excited about what we have created and the
                                 foundation it lays for future editions.

                                 Focus.com CEO Scott Albro manages his executives with a simple adage: “Put it in a one-page picture.” The concept of the one-page picture
                                 becomes a brilliant exercise for Scott’s department heads to create a sensible framework for how their department will function. Depicting a
                                 marketing or sales process in a single picture is just as challenging, and brings similarly powerful results.

                                 To create this book, Focus.com reached out to its Focus Expert Network and asked members to submit their version of the funnel. We gave them
                                 no instructions about what the funnel should look like, only that it had to fit on one page. I think you will have as much fun as we did seeing the
                                 results, from Carlos Hidalgo’s “stairstep” picture to a traditional funnel from Jon Miller to a “cloud” from Mike Damphousse to the “champagne
                                 glass” from Michael Brenner.

                                 Every organization should make the effort to depict its revenue funnel on one page. It serves as the basis of your sales and marketing strategy;
                                 once you understand your funnel, you are better informed about what metrics you should concentrate on, resource decisions and planning.

                                 I have two hopes from this exercise: 1) that there are some thought-provoking ideas for you to take back to your organization, and 2) that
                                 you create such a terrific funnel you can be included in the Book of Funnels Part II, which will have five times as many submissions as we
                                 received for this one.

                                 Special thanks to all of our contributors, Focus.com Sales Development Manager Sarah Miller and Contributing Editor Alec Wagner. We hope you
                                 enjoy the Focus Marketing & Sales Book of Funnels.

                                                                                                                                   — Craig Rosenberg, Leader, Focus Expert Network




Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models                                                                                   Focus Research ©2010      2
Table of Contents


                                       Readjust Your Perspective to the B2B Buyers’ Experience  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . p . 4
                                       The Division Between Marketing and Sales Is a Myth  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . p . 5
                                       The Days of the Funnel Are Thing of the Past  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . p . 6
                                       The ‘Living Funnel’ Responds to Business Changes .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . p . 7
                                       Engage Your Customers to Create Evangelists  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . p . 8
                                       View Your Funnel from Above  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . p . 9
                                       Lead Scoring, Progressive Nurturing Promote Qualified Leads  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . p . 10
                                       Expand Each End of the Funnel for Long-term Yield  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . p . 11
                                       Make Lead Nurturing Part of Your Equation  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . p . 12
                                       Keep Leads Moving through Your Funnel  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . p . 13
                                       Buyers 2.0: Blazing Their Own Trail  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . p . 14
                                       Today’s Bottom-Feeders Are Tomorrow’s Surface-Feeders  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . p . 15
                                       Follow the Four R’s: Reach, Responses, Relationships and Revenue .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . p . 16
                                       Define Buying Stages and Look at Conversion Rates  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . p . 17
                                       About the Focus Experts  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . p . 18




                                                                                                                All illustrations and visuals in this Focus Experts’ guide copyright © 2010 of their respective companies.




Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models                                                                                                                                                                                                         Focus Research ©2010                               3
Readjust Your Perspective to the B2B Buyers’ Experience

Instead of orienting your funnel to a sales
perspective, focus the stages of the funnel
on your B2B buyers’ experience.

When your funnel is focused on meeting
the needs of all the people involved in the
decision, you’ll see a swelling in the middle,
instead of the constriction that indicates
fallout in traditional funnels.

The Buyer-Experience Funnel:

• Interest: Get prospects to take a look at
 what you offer.

• Attention: Convince them to opt-in. Notice
 that fallout occurs here when they choose
 to continue or not.

• Value: Instantly recognizable value
 increases willingness to engage.

• Engagement: Prospects spend more time                              еня н пряг ет н личие Value до покупки - по кр йней мере речь нужно
                                                                   вести про восприним емую ценность (из отзывов, обзоров, и т.п.), но все
 and mind-share with your content.
                                                                   р вно не совсем декв тный термин.
• Buying committee involvement: Your funnel swells as influencers interact to gain consensus.

• Conversations: Sales steps in to drive momentum to purchase based on interests expressed. The funnel narrows to core decision-maker participation.

• Purchase: Buyers choose to partner with your company.                           толщение, не уменьшение, потому что эт пы не по отсеив нию лидов,                                 по
                                                                                 осуществляемым действиями и их весе в воронке соответственно.
                                                             — Ardath Albee, CEO and B2B Marketing Strategist at Marketing Interactions, www .focus .com/profiles/ardath-albee/public/



Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models                                                                                    Focus Research ©2010     4
The Division Between Marketing and Sales Is a Myth

To our customers, there is no such thing as a funnel.
Marketing and salespeople use the funnel to depict                                      Start Earlier in
                                                                                         Buying Cycle
how we manage demand through different phases.                                                                                             INQUIRIES
But there is no hard distinction. In some cases, sales
generates inquiries and marketing can close revenue
without salespeople getting involved (e-commerce).
So what does this mean for the traditional funnel?

The traditional funnel is marketing-focused with a                                                                                             LEADS
large top in a wide V-shape, like a martini glass.

• Because customers buy from brands that they
 trust, we need to focus on engaging potential
 customers in a relationship earlier in the buying
 process, even prior to a demand signal.                                                                                                    PIPELINE
• We must remove the false distinction between
 marketing and sales funnels. There is just one funnel
 from contact to sale, aligned to customer needs.

• When we deliver against customer needs, our
 efficiency increases as we convert more inquiries
                                                                                                                                          PURCHASE
 to leads and more leads to revenue. This happens
 because customers tell us when they are ready to
 buy and our funnel is built to move them through                                                                                                д льше? нтересно, к к SAP
                                                                                         Continue
 the buying process.                                                                                                                           видит тот процесс. корее пок
                                                                                         After Sale
• This creates a funnel shaped more like a                                                                   Drive More Efficient              не видит, потому что д льше
 champagne flute that drives efficient demand on a                                                         Demand & Less Leakage               не покупки, отношения (с ппорт
 continuous basis.
                                                                                                                                               WOM и т.д.). ок не интересует..

                                                             — Michael Brenner, Director of Online/Social Media at SAP North America, www .focus .com/profiles/michael-brenner/public/

Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models                                                                                    Focus Research ©2010     5
The Days of the Funnel Are Thing of the Past

With the advent of social, sales and
marketing 2.0 techniques and tools,
optimized inbound marketing strategies,
and a much more sophisticated buyer, the
days of a funnel are gone.

• Buyers put themselves in the funnel
 where they want to be. They jump around.
 The influence of content and word of
 mouth jumps them from side to back and
 down again.

• The demand-gen funnel is now in the
 cloud. As marketers, we must constantly
 measure the status of the cloud and
 make adjustments. We must combine
 strategies and tactics in order to
 maximize our results.

• We harness the chaos to our advantage.
 We control the demand-gen cloud.

       — Michael Damphousse, CEO/CMO
     of Green Leads LLC, www .focus .com/
      profiles/michael-damphousse/public/




                                                                           то уже д же не путь потребителя (вместо воронки) это ш т ние по брендиров нным и
                                                                          соцмедийным полям в поиске ответов и решений. бл чно орг низов нный х ос... м..

Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models                                                               Focus Research ©2010   6
The ‘Living Funnel’ Responds to Business Changes

• Manticore approaches the funnel in an
 integrated manner. Sales and marketing
 must work together to generate demand.
 In our funnel, marketing focuses on three
 components:

• Delivering a consistent flow of qualified
 leads to sales

• Helping sales close more deals through
 sales-enabled lead nurturing programs

• Delivering value-added content to
 prospects at various stages of the
 pipeline to keep Manticore top-of-mind.

• Through this approach our teams become
 heavily dependent on one another. The
 sales and marketing team work together
 on content and messaging for the
 various nurtures. The funnel at Manticore
 Technology is a living object that changes
 as business conditions evolve

   — Christopher Doran, VP of Marketing at
   Manticore Technology, www .focus .com/
        profiles/christopher-doran/public/



                                                                          л ссик . етро...




Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models                      Focus Research ©2010   7
Engage Your Customers to Create Evangelists

This funnel puts as much emphasis on the
bottom as the top. Why? Customers are in
the community you are trying to engage.
You want to engage the community,
but you also want to create customer
evangelists to engage the community on
your behalf.

• This funnel focuses on building
 community to convert targeted prospects
 into leads.

• After purchase, the goal is to convert
 customers to evangelists through added
 value and community development.

• In this funnel, ultimately “community”
 and “evangelists” overlap when the
 evangelists go back into the community
 to advocate for your brand.

• This funnel has marketing engaged much
 deeper than traditionally–way into lead
 nurturing, and then picking up customers as they come out the other end, to develop customer-focused community.

• Since this funnel starts with community, it incorporates all organizations within the company that are customer-facing: marketing, sales, support, success and executives.


    есьм примеч тельн н ч льным пунктом — Barbra Gago, Social Media Manager of Cloud9 Analytics, www .focus .com/profiles/barbra-gago/public/
   воронки - сообществом (форум и т.п.). ействительно, инфоз просы многих сегодня н чин ются н этих площ дк х, где
   клиент может более к чественно мотивиров ться к конверсии. олько стоит доб вить, что двок т м ст новятся не все,
   от силы 1-5% от клиентов (не лидов!), но и их р боты иногд хв т ет для поддержки всех клиентов.

Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models                                                                             Focus Research ©2010       8
View Your Funnel from Above

• At 28Marketing, we imagine a viewed-
 from-above image of the traditional
 sales funnel.

• Looking at the progression of prospect to
 lead to opportunity, we realized that old
 models didn’t conform to today’s buyer
 behavior, where customers may engage
 with the company at various levels,
 become viable sales leads earlier or later
 than we would expect, or even become
 longer or shorter duration sales.

• The new 28Marketing funnel looks down
 into the buying system, where individuals,
 companies, leads and customers
 accumulate at levels, spend time there,
 and then move forward or backward,
 depending on their needs, interest and
 the ability of our company to serve them.

  — Steve Gershik, CEO of 28Marketing,
 www .focus .com/profiles/steve-gershik-1/
                                   public/




                                                                          риви льно, но в тренде




Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models                            Focus Research ©2010   9
Lead Scoring, Progressive Nurturing Promote Qualified Leads

• To increase revenue and shorten your
 sales cycle, put together a clearly defined
 and agreed-upon lead management
 process with marketing automation and
 sales force automation tools.

• To reach targeted sales and marketing
  leads, be sure your lead-nurturing
  campaigns are based on content
  that is segmented, mapped to their
  interests, and relevant to their stage in
  the buying cycle.

• Progressive nurturing develops a
 comprehensive dossier on leads in
 the pipeline. That, combined with lead
 scoring, will provide you with a list of
 leads that are more qualified and ready
 to send to sales.

• Avoid missed opportunities by ensuring
 that leads deemed “not ready” are given
 a second chance by returning them to a
 nurturing campaign.

• An effective lead-management process, combined with market automation and SFA tools, makes it easier to identify opportunities to up-sell and cross-sell.

• This combination of “people and process” not only gives you clearer visibility into the pipeline, it makes it possible to measure accurately marketing’s impact and the ratio of
 marketing spend to revenue earned.                   коринг - это сил ! рогр ссивное н пр вление кл ссического прод ющего м ркетинг ,                                    не
                                                     имиджевого / репут ционного.
                                                                                      — Sue Hay, CEO of BeWhys Marketing Inc ., www .focus .com/profiles/sue-hay-1/public/,



Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models                                                                                Focus Research ©2010     10
Expand Each End of the Funnel for Long-term Yield

• You want a funnel that represents far
 more than the active sales cycle. Include
 various stages of prospect engagement
 based on your understanding of their
 current needs, problems and triggers.

• For every qualified, ready-to-buy lead you
 manage, you likely also have three to five
 qualified but not-ready-to-buy leads. Have
 a strategy to engage them where they
 are, until 1) they’re ready to move forward,
 or 2) they understand and trust you well
 enough to engage.

• The traditional sales funnels also only
 reflect half of the story. What about
 repeat purchases? Referrals? Word-of-
 mouth opportunities that turn one sale
 into four? That first sale may be the
 narrow part of the funnel, but if you
 know what you’re doing it widens again
 significantly from there. Renewals, repeat
 purchases, referrals, and so forth.

• Worry today about how much you can
 naturally drive through the middle, but put
 even more focus long-term on expanding
 each end of the funnel to maximize
 long-term yield.                                                         кцент н постпокупочных действиях, и в ч стности н возвр те и лояьлности.

                                                                                  — Matt Heinz, Principal at Heinz Marketing LLC, www .focus .com/profiles/matt-heinz/public/

Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models                                                                           Focus Research ©2010   11
Make Lead Nurturing Part of Your Equation

The development of a funnel starts with
the revenue that marketing needs to
produce to help sales meet their quota.
Organizations can then work backward
through every stage to determine what is
needed to meet these goals.

• This must be a collaborative effort
 between marketing and sales to
 determine the goals and percentages
 of conversion (benchmark metrics will
 be key for conversion goals). Then both
 marketing and sales will be able to track
 success, see where any weak links are
 and improve planning and budgeting.                                орошо р спис но и пок з но
• In addition to linear lead planning,
                                                                   воронк по убыв нию кв лифи
 companies must begin to develop a
                                                                   цируемых лидов н к ждом из
 funnel approach with lead nurturing as
                                                                   эт пов.
 part of the equation. Nurturing will affect
 all areas of marketing and sales including
 lead forecasting, forecasting for quota
 attainment, ROI analysis and marketing
 budget allocation.

• The nurturing component will improve the lead quality and also provide a lead pipeline that will be managed by marketing.


                                                                                — Carlos Hidalgo, President of The Annuitas Group, www .focus .com/profiles/carlos-hidalgo/public/




Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models                                                                                Focus Research ©2010    12
Keep Leads Moving through Your Funnel

Marketo’s funnel is key to the success of
our organization. Some important details
to note:

• Don’t let leads sit in any one place in the
 funnel. Leads should be moving – making
 sure they are not forgotten and that you
 can measure results of programs and
 processes.

• Learning is a two-way process. Use lead
 nurturing to educate prospects about
 your marketing, and actively learn about
 prospects’ preferences and needs as they
 interact with your content.

• Automate the process by using lead
 scoring to move leads to the next stage.
 Encourage engagement with lead
 nurturing.

• Lead recycling is powerful — it allows
 sales to spend their time with the best
 leads and utilizes marketing to develop
 the sales pipeline for the coming months.


                                                                          — Jon Miller, Vice President of Marketing at Marketo, www .focus .com/profiles/jon-miller/public/




Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models                                                                        Focus Research ©2010    13
Buyers 2 .0: Blazing Their Own Trail

• Buyers determine their own ‘funnel’
 path: It’s common to conceptualize the
 buying process as a ‘funnel,’ but Buyer
 2.0 doesn’t move in such a linear or
 predictable fashion; rather, buyers move
 at their own pace, based on content
 consumed and on organizational priorities.

• Nurturing = an iterative loop: Our
 nurturing of buyers thus should be more
 of an iterative process of educating and
 learning more about them, and then
 providing them with the information and
 insights necessary to move their buying
 process forward. This looks more like a
 loop than a funnel.

• Marketing automation + demand
 generation strategy = core components:
 Marketing automation (see yellow boxes)
 serves as the critical infrastructure for
 enabling this type of dynamic, buyer-
 driven B2B nurturing, and demand
 generation strategy is the architecture
 that determines the interactions and that governs your content-based nurturing.


                                                            — Adam Needles, VP of Demand Generation Strategy at Left Brain Marketing, www .focus .com/profiles/adam-needles/public/

            орошее з меч ние про множественные точки вход лид в воронку взр щив ния его до кв лифициров нного лид .



Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models                                                                                  Focus Research ©2010   14
Today’s Bottom-Feeders Are Tomorrow’s Surface-Feeders

• The sales team creates value by attaining
 or exceeding its revenue, gross margin,
 and product mix objectives.

• To help sales succeed, we need to help
 them focus their most precious resource
 (time) on the best sales opportunities.

• “Best” can mean many things, e.g., the
 highest average selling price, most
 profitable accounts, interest in a new
 strategic product line, or simply the most
 “ready to buy.”

• We can sometimes buy quality leads,
 but every company needs to build the
 process acumen that makes sales
 success repeatable.

• Notice that in the graphic, the sales VP
 is “fishing” at the top of the barrel of
 leads, not wasting precious time on the
 “bottom-feeders” (who are tomorrow’s
                                                                               е понятно, что это з подход. риви льно.
 surface-feeders).

• The result is a money multiplication machine that efficiently converts marketing investments into leads, leads into deals, and deals into revenue.


                                                                          — Tom Scearce, Principal at Scearce Market Development, www .focus .com/profiles/tom-scearce/public/




Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models                                                                                Focus Research ©2010   15
Follow the Four R’s: Reach, Responses, Relationships and Revenue

In today’s Web-enabled market, buyers
are more informed than ever, directly
accessing information about the market,
your competition, and, most importantly,
your solutions. With tools like social media,
sales also gets involved much earlier in
the process. Plus, with tools like marketing
automation, marketing remains involved
much longer in the process.

The funnel no longer begins with known
prospects. By tracking prospects above
the funnel, marketing can accurately
score leads, place them in the appropriate
nurturing path and track ROI from initial
click to deal close; while sales can
appropriately follow up with ready prospects.

The “Four R’s” allow marketers to:

• Extend reach with social media, online
 ads and paid search;

• Elicit responses to drive prospects to their
 Web site;

• Build relationships through intelligent lead
 nurturing;
• Drive more revenue by better-arming sales with truly sales-ready leads.
                                                                                   еплох я сводк , но не более того.

                                                                            — Matt West, Director of Marketing at Genius .com, www .focus .com/profiles/matt-west/public/


Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models                                                                       Focus Research ©2010   16
Define Buying Stages and Look at Conversion Rates

• The main goal in building a model of the
 buying funnel is to provide a framework for
 analyzing marketing’s effect on revenue.
 Different campaigns trigger different
 actions. All valuable, but measuring their
 value requires a different approach than in
 simple buying processes.

• The first key step is to understand where
 each person is in the buying process and
 that the stages of the funnel will differ
 between businesses.

• Once buying stages are defined, you can
 look at conversion rates to understand
 the value of a lead at different stages.
 For example, if a deal is worth $10,000,
 and an MQL has a 10 percent conversion
 rate to a deal, it is worth $1,000. (Values
 are based on the conversion rate of the
 funnel stage through to close.)

• With this established, it is possible to see
 the value of a buyer’s movement through
 the funnel. For example, if a buyer moves
 from “mildly interested” ($100/lead) to
 “marketing qualified lead” ($1,000/lead),
                                                                   очти ясно кцентиров но поним ние р зличия потребителского цикл /пути и воронки
 their value has increased by $900.                               прод ж - это р зные процессы н стороне потребителя и комп нии соотв, которые нужно
                                                                  еще д птиров ть друг к другу.
• If a campaign triggered that transition, the easiest way to look at the value of the marketing campaign is that it added that much value to your lead funnel.


                                                                                — Steve Woods, Chief Technology Officer of Eloqua, www .focus .com/profiles/steve-woods/public/,
Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models                                                                               Focus Research ©2010   17
About the Focus Experts


                                 The Focus Expert Network powers much of the activity on Focus.com. Consisting of thought leaders, veteran practitioners and upstart innovators,
                                 Focus Experts help thousands of businesses with tough decisions every day. They do this by publishing Focus Research, answering questions on
                                 the site, and providing personalized support to the Focus community.


                                 Ardath Albee uses her 20-plus years of business management and             Barbra Gago recently joined Cloud9 Analytics, and has consulted
                                 marketing experience to help B2B companies create e-marketing              businesses on Web-content strategy, inbound marketing and social
                                 strategies using contagious content to turn prospects into buyers.         media for the last four years.
                                 Company URL: www.marketinginteractions.com                                 Company URL: www.Cloud9Analytics.com
                                 Blog: http://marketinginteractions.typepad.com                             Blog: http://cloud9analytics.com/resources/blog/
                                 Twitter: @ardath421                                                        Twitter: @barbragago, @cloud9analytics

                                 Michael Brenner has16 years of experience in sales and marketing,          Steve Gershik is founder of 28Marketing, and he has worked with a
                                 and his common focus has been using customer and market insights to        number of B2B technology and cloud computing companies, as well as
                                 drive results-based marketing and to produce a return on investment.       HP, Apple and Oracle.
                                 Company URL: www.sap.com                                                   Company URL: www. 28marketing.com
                                 Blog: www.b2bmarketinginsider.com/                                         Blog: www.theinnovativemarketer.com
                                 Twitter: @brennermichael                                                   Twitter: @sgersh

                                 Michael Damphousse is a consummate sales and marketing                     Sue Hay is founder of BeWhys Marketing, a full-service lead generation
                                 executive, leading the growth of Green Leads while sharing B2B             consultancy that uses lead process management best practices, lead
                                 demand generation knowledge with others.                                   scoring, persona building, content creation and mapping to achieve results.
                                 Company URL: www.green-leads.com                                           Company URL: www. 28marketing.com
                                 Blog: www.green-leads.com/b2b-blog/                                        Blog: http://blog.bewhysmarketing.com/
                                 Twitter: @damphoux                                                         Twitter: @Sue_Hay

                                 Christopher Doran joined Manticore Technology in 2003 as the               Matt Heinz founded Heinz Marketing to focus on sales acceleration.
                                 company’s second executive hire. He has become a recognized thought        His career has been about delivering greater sales, revenue growth,
                                 leader in marketing automation and B2B marketing best practices.           product success and customer loyalty.
                                 Company URL: www.manticoretechnology.com                                   Company URL: www.heinzmarketing.com
                                 Blog: www.manticoretechnology.com/blog                                     Blog: www.mattonmarketingblog.com
                                 Twitter: @cdoran                                                           Twitter: @heinzmarketing

Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models                                                                                   Focus Research ©2010      18
Carlos Hidalgo is an expert in lead management and marketing           Tom Scearce is founder of Scearce Market Development, a Seattle-
                                automation, with 15-plus years experience. He is a frequent speaker    based sales and marketing consultancy. Tom has helped companies in
                                and author about lead management.                                      diverse industries of various sizes increase revenue.
                                Company URL: www.annuitasgroup.com                                     Company URL: http://tomscearce.com
                                Blog: http://blog.annuitasgroup.com/                                   Blog: http://thelordoftheleads.com/
                                Twitter: @cahidalgo                                                    Twitter: @TLOTL

                                Jon Miller leads strategy and execution for all aspects of marketing   Matt West has over a dozen years experience managing B2B marketing
                                and is a key architect of Marketo’s hyper-efficient revenue engine     and demand-gen programs for tech companies, with experience in
                                (powered by Marketo’s solutions, of course).                           agency/consulting and client-side marketing departments.
                                Company URL: www. marketo.com                                          Company URL: www.genius.com
                                Blog: http://blog.marketo.com/                                         Blog: www.genius.com/marketinggeniusblog/
                                Twitter: @marketo                                                      Twitter: twitter.com/m_west

                                Adam Needles is a marketing change agent in B2B marketing who          Steve Woods co-founded Eloqua in 1999 and has held the position of
                                helps companies develop buyer-centric demand generation programs       CTO since that time. He is a prolific writer on topics related to demand
                                that drive revenue and build their brands in a bottom-up fashion.      generation and the current transitions within the marketing profession.
                                Company URL: www.leftbrainmarketing.com/                               Company URL: www.eloqua.com/
                                Blog: http://propellingbrands.wordpress.com/                           Blog: http://digitalbodylanguage.blogspot.com/
                                Twitter: @abneedles                                                    Twitter: http://twitter.com/stevewoods




Focus / Comparison Guide / Midmarket/Enterprise ERP Solution                                                                                       Focus Research ©2010     19
About Focus Research


                                 Each year U.S. businesses spend more than $75 trillion* on goods and services. And yet there has not been a definitive source of trustworthy and
                                 easily accessible information to support business buyers and decisions makers — especially those in small and midsize businesses. Filling this gap
                                 is the mission of Focus Research.

                                 Through its Research Guides, Focus Research empowers buyers to make considered purchases and decisions. Focus does this by providing freely
                                 available, actionable advice based on the expertise of other buyers, recognized experts and Focus analysts.


                                 Guiding Principles
                                 Our goal is not only to provide independent and high-quality research but also to deliver a new research model that serves all businesses.

                                 Open: We believe information must be set free. The data, advice and           Relevant: We believe there is no “one-size-fits-all” answer to a
                                 research on Focus are widely distributed and available to everyone            business purchasing decision. Focus Research is, therefore, designed
                                                                                                               to address specific concerns of multiple buyer types across multiple
                                 Peer-powered: We believe in the power of many. Thousands of buyers
                                                                                                               industries. As such, users are encouraged to combine our different
                                 and experts contribute their expertise to Focus every day. Our job is to
                                                                                                               research deliverables into tailor-made packages that effectively
                                 take their insights and integrate them into our research.
                                                                                                               address their unique needs and goals.
                                 Practical: We believe in addressing everyday issues facing businesses.
                                 Focus Research does not pontificate on high-level trends or promote
                                 broad-based research agendas. Rather, Focus Research endeavors
                                 to provide specific, actionable recommendations that help businesses
                                 make the right decision every time.




                                 * Source: Visa, Inc . Commercial Consumption Expenditure Index fact sheet .




Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models                                                                                   Focus Research ©2010    20

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  • 1. Focus Experts’ Guide: Sales and Marketing Pipeline and Funnel Models Focus Research October 2010 Contributing Experts: Ardath Albee Michael Brenner Michael Damphousse Christopher Doran Barbra Gago Steve Gershik Sue Hay Matt Heinz Carlos Hidalgo Jon Miller Adam Needles Tom Scearce Matt West Steve Woods Focus Research ©2010
  • 2. Introduction Welcome to our the first edition of the Focus Marketing & Sales Book of Funnels. We are very excited about what we have created and the foundation it lays for future editions. Focus.com CEO Scott Albro manages his executives with a simple adage: “Put it in a one-page picture.” The concept of the one-page picture becomes a brilliant exercise for Scott’s department heads to create a sensible framework for how their department will function. Depicting a marketing or sales process in a single picture is just as challenging, and brings similarly powerful results. To create this book, Focus.com reached out to its Focus Expert Network and asked members to submit their version of the funnel. We gave them no instructions about what the funnel should look like, only that it had to fit on one page. I think you will have as much fun as we did seeing the results, from Carlos Hidalgo’s “stairstep” picture to a traditional funnel from Jon Miller to a “cloud” from Mike Damphousse to the “champagne glass” from Michael Brenner. Every organization should make the effort to depict its revenue funnel on one page. It serves as the basis of your sales and marketing strategy; once you understand your funnel, you are better informed about what metrics you should concentrate on, resource decisions and planning. I have two hopes from this exercise: 1) that there are some thought-provoking ideas for you to take back to your organization, and 2) that you create such a terrific funnel you can be included in the Book of Funnels Part II, which will have five times as many submissions as we received for this one. Special thanks to all of our contributors, Focus.com Sales Development Manager Sarah Miller and Contributing Editor Alec Wagner. We hope you enjoy the Focus Marketing & Sales Book of Funnels. — Craig Rosenberg, Leader, Focus Expert Network Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 2
  • 3. Table of Contents Readjust Your Perspective to the B2B Buyers’ Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p . 4 The Division Between Marketing and Sales Is a Myth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p . 5 The Days of the Funnel Are Thing of the Past . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p . 6 The ‘Living Funnel’ Responds to Business Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p . 7 Engage Your Customers to Create Evangelists . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p . 8 View Your Funnel from Above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p . 9 Lead Scoring, Progressive Nurturing Promote Qualified Leads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p . 10 Expand Each End of the Funnel for Long-term Yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p . 11 Make Lead Nurturing Part of Your Equation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p . 12 Keep Leads Moving through Your Funnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p . 13 Buyers 2.0: Blazing Their Own Trail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p . 14 Today’s Bottom-Feeders Are Tomorrow’s Surface-Feeders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p . 15 Follow the Four R’s: Reach, Responses, Relationships and Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p . 16 Define Buying Stages and Look at Conversion Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p . 17 About the Focus Experts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p . 18 All illustrations and visuals in this Focus Experts’ guide copyright © 2010 of their respective companies. Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 3
  • 4. Readjust Your Perspective to the B2B Buyers’ Experience Instead of orienting your funnel to a sales perspective, focus the stages of the funnel on your B2B buyers’ experience. When your funnel is focused on meeting the needs of all the people involved in the decision, you’ll see a swelling in the middle, instead of the constriction that indicates fallout in traditional funnels. The Buyer-Experience Funnel: • Interest: Get prospects to take a look at what you offer. • Attention: Convince them to opt-in. Notice that fallout occurs here when they choose to continue or not. • Value: Instantly recognizable value increases willingness to engage. • Engagement: Prospects spend more time еня н пряг ет н личие Value до покупки - по кр йней мере речь нужно вести про восприним емую ценность (из отзывов, обзоров, и т.п.), но все and mind-share with your content. р вно не совсем декв тный термин. • Buying committee involvement: Your funnel swells as influencers interact to gain consensus. • Conversations: Sales steps in to drive momentum to purchase based on interests expressed. The funnel narrows to core decision-maker participation. • Purchase: Buyers choose to partner with your company. толщение, не уменьшение, потому что эт пы не по отсеив нию лидов, по осуществляемым действиями и их весе в воронке соответственно. — Ardath Albee, CEO and B2B Marketing Strategist at Marketing Interactions, www .focus .com/profiles/ardath-albee/public/ Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 4
  • 5. The Division Between Marketing and Sales Is a Myth To our customers, there is no such thing as a funnel. Marketing and salespeople use the funnel to depict Start Earlier in Buying Cycle how we manage demand through different phases. INQUIRIES But there is no hard distinction. In some cases, sales generates inquiries and marketing can close revenue without salespeople getting involved (e-commerce). So what does this mean for the traditional funnel? The traditional funnel is marketing-focused with a LEADS large top in a wide V-shape, like a martini glass. • Because customers buy from brands that they trust, we need to focus on engaging potential customers in a relationship earlier in the buying process, even prior to a demand signal. PIPELINE • We must remove the false distinction between marketing and sales funnels. There is just one funnel from contact to sale, aligned to customer needs. • When we deliver against customer needs, our efficiency increases as we convert more inquiries PURCHASE to leads and more leads to revenue. This happens because customers tell us when they are ready to buy and our funnel is built to move them through д льше? нтересно, к к SAP Continue the buying process. видит тот процесс. корее пок After Sale • This creates a funnel shaped more like a Drive More Efficient не видит, потому что д льше champagne flute that drives efficient demand on a Demand & Less Leakage не покупки, отношения (с ппорт continuous basis. WOM и т.д.). ок не интересует.. — Michael Brenner, Director of Online/Social Media at SAP North America, www .focus .com/profiles/michael-brenner/public/ Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 5
  • 6. The Days of the Funnel Are Thing of the Past With the advent of social, sales and marketing 2.0 techniques and tools, optimized inbound marketing strategies, and a much more sophisticated buyer, the days of a funnel are gone. • Buyers put themselves in the funnel where they want to be. They jump around. The influence of content and word of mouth jumps them from side to back and down again. • The demand-gen funnel is now in the cloud. As marketers, we must constantly measure the status of the cloud and make adjustments. We must combine strategies and tactics in order to maximize our results. • We harness the chaos to our advantage. We control the demand-gen cloud. — Michael Damphousse, CEO/CMO of Green Leads LLC, www .focus .com/ profiles/michael-damphousse/public/ то уже д же не путь потребителя (вместо воронки) это ш т ние по брендиров нным и соцмедийным полям в поиске ответов и решений. бл чно орг низов нный х ос... м.. Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 6
  • 7. The ‘Living Funnel’ Responds to Business Changes • Manticore approaches the funnel in an integrated manner. Sales and marketing must work together to generate demand. In our funnel, marketing focuses on three components: • Delivering a consistent flow of qualified leads to sales • Helping sales close more deals through sales-enabled lead nurturing programs • Delivering value-added content to prospects at various stages of the pipeline to keep Manticore top-of-mind. • Through this approach our teams become heavily dependent on one another. The sales and marketing team work together on content and messaging for the various nurtures. The funnel at Manticore Technology is a living object that changes as business conditions evolve — Christopher Doran, VP of Marketing at Manticore Technology, www .focus .com/ profiles/christopher-doran/public/ л ссик . етро... Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 7
  • 8. Engage Your Customers to Create Evangelists This funnel puts as much emphasis on the bottom as the top. Why? Customers are in the community you are trying to engage. You want to engage the community, but you also want to create customer evangelists to engage the community on your behalf. • This funnel focuses on building community to convert targeted prospects into leads. • After purchase, the goal is to convert customers to evangelists through added value and community development. • In this funnel, ultimately “community” and “evangelists” overlap when the evangelists go back into the community to advocate for your brand. • This funnel has marketing engaged much deeper than traditionally–way into lead nurturing, and then picking up customers as they come out the other end, to develop customer-focused community. • Since this funnel starts with community, it incorporates all organizations within the company that are customer-facing: marketing, sales, support, success and executives. есьм примеч тельн н ч льным пунктом — Barbra Gago, Social Media Manager of Cloud9 Analytics, www .focus .com/profiles/barbra-gago/public/ воронки - сообществом (форум и т.п.). ействительно, инфоз просы многих сегодня н чин ются н этих площ дк х, где клиент может более к чественно мотивиров ться к конверсии. олько стоит доб вить, что двок т м ст новятся не все, от силы 1-5% от клиентов (не лидов!), но и их р боты иногд хв т ет для поддержки всех клиентов. Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 8
  • 9. View Your Funnel from Above • At 28Marketing, we imagine a viewed- from-above image of the traditional sales funnel. • Looking at the progression of prospect to lead to opportunity, we realized that old models didn’t conform to today’s buyer behavior, where customers may engage with the company at various levels, become viable sales leads earlier or later than we would expect, or even become longer or shorter duration sales. • The new 28Marketing funnel looks down into the buying system, where individuals, companies, leads and customers accumulate at levels, spend time there, and then move forward or backward, depending on their needs, interest and the ability of our company to serve them. — Steve Gershik, CEO of 28Marketing, www .focus .com/profiles/steve-gershik-1/ public/ риви льно, но в тренде Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 9
  • 10. Lead Scoring, Progressive Nurturing Promote Qualified Leads • To increase revenue and shorten your sales cycle, put together a clearly defined and agreed-upon lead management process with marketing automation and sales force automation tools. • To reach targeted sales and marketing leads, be sure your lead-nurturing campaigns are based on content that is segmented, mapped to their interests, and relevant to their stage in the buying cycle. • Progressive nurturing develops a comprehensive dossier on leads in the pipeline. That, combined with lead scoring, will provide you with a list of leads that are more qualified and ready to send to sales. • Avoid missed opportunities by ensuring that leads deemed “not ready” are given a second chance by returning them to a nurturing campaign. • An effective lead-management process, combined with market automation and SFA tools, makes it easier to identify opportunities to up-sell and cross-sell. • This combination of “people and process” not only gives you clearer visibility into the pipeline, it makes it possible to measure accurately marketing’s impact and the ratio of marketing spend to revenue earned. коринг - это сил ! рогр ссивное н пр вление кл ссического прод ющего м ркетинг , не имиджевого / репут ционного. — Sue Hay, CEO of BeWhys Marketing Inc ., www .focus .com/profiles/sue-hay-1/public/, Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 10
  • 11. Expand Each End of the Funnel for Long-term Yield • You want a funnel that represents far more than the active sales cycle. Include various stages of prospect engagement based on your understanding of their current needs, problems and triggers. • For every qualified, ready-to-buy lead you manage, you likely also have three to five qualified but not-ready-to-buy leads. Have a strategy to engage them where they are, until 1) they’re ready to move forward, or 2) they understand and trust you well enough to engage. • The traditional sales funnels also only reflect half of the story. What about repeat purchases? Referrals? Word-of- mouth opportunities that turn one sale into four? That first sale may be the narrow part of the funnel, but if you know what you’re doing it widens again significantly from there. Renewals, repeat purchases, referrals, and so forth. • Worry today about how much you can naturally drive through the middle, but put even more focus long-term on expanding each end of the funnel to maximize long-term yield. кцент н постпокупочных действиях, и в ч стности н возвр те и лояьлности. — Matt Heinz, Principal at Heinz Marketing LLC, www .focus .com/profiles/matt-heinz/public/ Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 11
  • 12. Make Lead Nurturing Part of Your Equation The development of a funnel starts with the revenue that marketing needs to produce to help sales meet their quota. Organizations can then work backward through every stage to determine what is needed to meet these goals. • This must be a collaborative effort between marketing and sales to determine the goals and percentages of conversion (benchmark metrics will be key for conversion goals). Then both marketing and sales will be able to track success, see where any weak links are and improve planning and budgeting. орошо р спис но и пок з но • In addition to linear lead planning, воронк по убыв нию кв лифи companies must begin to develop a цируемых лидов н к ждом из funnel approach with lead nurturing as эт пов. part of the equation. Nurturing will affect all areas of marketing and sales including lead forecasting, forecasting for quota attainment, ROI analysis and marketing budget allocation. • The nurturing component will improve the lead quality and also provide a lead pipeline that will be managed by marketing. — Carlos Hidalgo, President of The Annuitas Group, www .focus .com/profiles/carlos-hidalgo/public/ Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 12
  • 13. Keep Leads Moving through Your Funnel Marketo’s funnel is key to the success of our organization. Some important details to note: • Don’t let leads sit in any one place in the funnel. Leads should be moving – making sure they are not forgotten and that you can measure results of programs and processes. • Learning is a two-way process. Use lead nurturing to educate prospects about your marketing, and actively learn about prospects’ preferences and needs as they interact with your content. • Automate the process by using lead scoring to move leads to the next stage. Encourage engagement with lead nurturing. • Lead recycling is powerful — it allows sales to spend their time with the best leads and utilizes marketing to develop the sales pipeline for the coming months. — Jon Miller, Vice President of Marketing at Marketo, www .focus .com/profiles/jon-miller/public/ Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 13
  • 14. Buyers 2 .0: Blazing Their Own Trail • Buyers determine their own ‘funnel’ path: It’s common to conceptualize the buying process as a ‘funnel,’ but Buyer 2.0 doesn’t move in such a linear or predictable fashion; rather, buyers move at their own pace, based on content consumed and on organizational priorities. • Nurturing = an iterative loop: Our nurturing of buyers thus should be more of an iterative process of educating and learning more about them, and then providing them with the information and insights necessary to move their buying process forward. This looks more like a loop than a funnel. • Marketing automation + demand generation strategy = core components: Marketing automation (see yellow boxes) serves as the critical infrastructure for enabling this type of dynamic, buyer- driven B2B nurturing, and demand generation strategy is the architecture that determines the interactions and that governs your content-based nurturing. — Adam Needles, VP of Demand Generation Strategy at Left Brain Marketing, www .focus .com/profiles/adam-needles/public/ орошее з меч ние про множественные точки вход лид в воронку взр щив ния его до кв лифициров нного лид . Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 14
  • 15. Today’s Bottom-Feeders Are Tomorrow’s Surface-Feeders • The sales team creates value by attaining or exceeding its revenue, gross margin, and product mix objectives. • To help sales succeed, we need to help them focus their most precious resource (time) on the best sales opportunities. • “Best” can mean many things, e.g., the highest average selling price, most profitable accounts, interest in a new strategic product line, or simply the most “ready to buy.” • We can sometimes buy quality leads, but every company needs to build the process acumen that makes sales success repeatable. • Notice that in the graphic, the sales VP is “fishing” at the top of the barrel of leads, not wasting precious time on the “bottom-feeders” (who are tomorrow’s е понятно, что это з подход. риви льно. surface-feeders). • The result is a money multiplication machine that efficiently converts marketing investments into leads, leads into deals, and deals into revenue. — Tom Scearce, Principal at Scearce Market Development, www .focus .com/profiles/tom-scearce/public/ Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 15
  • 16. Follow the Four R’s: Reach, Responses, Relationships and Revenue In today’s Web-enabled market, buyers are more informed than ever, directly accessing information about the market, your competition, and, most importantly, your solutions. With tools like social media, sales also gets involved much earlier in the process. Plus, with tools like marketing automation, marketing remains involved much longer in the process. The funnel no longer begins with known prospects. By tracking prospects above the funnel, marketing can accurately score leads, place them in the appropriate nurturing path and track ROI from initial click to deal close; while sales can appropriately follow up with ready prospects. The “Four R’s” allow marketers to: • Extend reach with social media, online ads and paid search; • Elicit responses to drive prospects to their Web site; • Build relationships through intelligent lead nurturing; • Drive more revenue by better-arming sales with truly sales-ready leads. еплох я сводк , но не более того. — Matt West, Director of Marketing at Genius .com, www .focus .com/profiles/matt-west/public/ Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 16
  • 17. Define Buying Stages and Look at Conversion Rates • The main goal in building a model of the buying funnel is to provide a framework for analyzing marketing’s effect on revenue. Different campaigns trigger different actions. All valuable, but measuring their value requires a different approach than in simple buying processes. • The first key step is to understand where each person is in the buying process and that the stages of the funnel will differ between businesses. • Once buying stages are defined, you can look at conversion rates to understand the value of a lead at different stages. For example, if a deal is worth $10,000, and an MQL has a 10 percent conversion rate to a deal, it is worth $1,000. (Values are based on the conversion rate of the funnel stage through to close.) • With this established, it is possible to see the value of a buyer’s movement through the funnel. For example, if a buyer moves from “mildly interested” ($100/lead) to “marketing qualified lead” ($1,000/lead), очти ясно кцентиров но поним ние р зличия потребителского цикл /пути и воронки their value has increased by $900. прод ж - это р зные процессы н стороне потребителя и комп нии соотв, которые нужно еще д птиров ть друг к другу. • If a campaign triggered that transition, the easiest way to look at the value of the marketing campaign is that it added that much value to your lead funnel. — Steve Woods, Chief Technology Officer of Eloqua, www .focus .com/profiles/steve-woods/public/, Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 17
  • 18. About the Focus Experts The Focus Expert Network powers much of the activity on Focus.com. Consisting of thought leaders, veteran practitioners and upstart innovators, Focus Experts help thousands of businesses with tough decisions every day. They do this by publishing Focus Research, answering questions on the site, and providing personalized support to the Focus community. Ardath Albee uses her 20-plus years of business management and Barbra Gago recently joined Cloud9 Analytics, and has consulted marketing experience to help B2B companies create e-marketing businesses on Web-content strategy, inbound marketing and social strategies using contagious content to turn prospects into buyers. media for the last four years. Company URL: www.marketinginteractions.com Company URL: www.Cloud9Analytics.com Blog: http://marketinginteractions.typepad.com Blog: http://cloud9analytics.com/resources/blog/ Twitter: @ardath421 Twitter: @barbragago, @cloud9analytics Michael Brenner has16 years of experience in sales and marketing, Steve Gershik is founder of 28Marketing, and he has worked with a and his common focus has been using customer and market insights to number of B2B technology and cloud computing companies, as well as drive results-based marketing and to produce a return on investment. HP, Apple and Oracle. Company URL: www.sap.com Company URL: www. 28marketing.com Blog: www.b2bmarketinginsider.com/ Blog: www.theinnovativemarketer.com Twitter: @brennermichael Twitter: @sgersh Michael Damphousse is a consummate sales and marketing Sue Hay is founder of BeWhys Marketing, a full-service lead generation executive, leading the growth of Green Leads while sharing B2B consultancy that uses lead process management best practices, lead demand generation knowledge with others. scoring, persona building, content creation and mapping to achieve results. Company URL: www.green-leads.com Company URL: www. 28marketing.com Blog: www.green-leads.com/b2b-blog/ Blog: http://blog.bewhysmarketing.com/ Twitter: @damphoux Twitter: @Sue_Hay Christopher Doran joined Manticore Technology in 2003 as the Matt Heinz founded Heinz Marketing to focus on sales acceleration. company’s second executive hire. He has become a recognized thought His career has been about delivering greater sales, revenue growth, leader in marketing automation and B2B marketing best practices. product success and customer loyalty. Company URL: www.manticoretechnology.com Company URL: www.heinzmarketing.com Blog: www.manticoretechnology.com/blog Blog: www.mattonmarketingblog.com Twitter: @cdoran Twitter: @heinzmarketing Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 18
  • 19. Carlos Hidalgo is an expert in lead management and marketing Tom Scearce is founder of Scearce Market Development, a Seattle- automation, with 15-plus years experience. He is a frequent speaker based sales and marketing consultancy. Tom has helped companies in and author about lead management. diverse industries of various sizes increase revenue. Company URL: www.annuitasgroup.com Company URL: http://tomscearce.com Blog: http://blog.annuitasgroup.com/ Blog: http://thelordoftheleads.com/ Twitter: @cahidalgo Twitter: @TLOTL Jon Miller leads strategy and execution for all aspects of marketing Matt West has over a dozen years experience managing B2B marketing and is a key architect of Marketo’s hyper-efficient revenue engine and demand-gen programs for tech companies, with experience in (powered by Marketo’s solutions, of course). agency/consulting and client-side marketing departments. Company URL: www. marketo.com Company URL: www.genius.com Blog: http://blog.marketo.com/ Blog: www.genius.com/marketinggeniusblog/ Twitter: @marketo Twitter: twitter.com/m_west Adam Needles is a marketing change agent in B2B marketing who Steve Woods co-founded Eloqua in 1999 and has held the position of helps companies develop buyer-centric demand generation programs CTO since that time. He is a prolific writer on topics related to demand that drive revenue and build their brands in a bottom-up fashion. generation and the current transitions within the marketing profession. Company URL: www.leftbrainmarketing.com/ Company URL: www.eloqua.com/ Blog: http://propellingbrands.wordpress.com/ Blog: http://digitalbodylanguage.blogspot.com/ Twitter: @abneedles Twitter: http://twitter.com/stevewoods Focus / Comparison Guide / Midmarket/Enterprise ERP Solution Focus Research ©2010 19
  • 20. About Focus Research Each year U.S. businesses spend more than $75 trillion* on goods and services. And yet there has not been a definitive source of trustworthy and easily accessible information to support business buyers and decisions makers — especially those in small and midsize businesses. Filling this gap is the mission of Focus Research. Through its Research Guides, Focus Research empowers buyers to make considered purchases and decisions. Focus does this by providing freely available, actionable advice based on the expertise of other buyers, recognized experts and Focus analysts. Guiding Principles Our goal is not only to provide independent and high-quality research but also to deliver a new research model that serves all businesses. Open: We believe information must be set free. The data, advice and Relevant: We believe there is no “one-size-fits-all” answer to a research on Focus are widely distributed and available to everyone business purchasing decision. Focus Research is, therefore, designed to address specific concerns of multiple buyer types across multiple Peer-powered: We believe in the power of many. Thousands of buyers industries. As such, users are encouraged to combine our different and experts contribute their expertise to Focus every day. Our job is to research deliverables into tailor-made packages that effectively take their insights and integrate them into our research. address their unique needs and goals. Practical: We believe in addressing everyday issues facing businesses. Focus Research does not pontificate on high-level trends or promote broad-based research agendas. Rather, Focus Research endeavors to provide specific, actionable recommendations that help businesses make the right decision every time. * Source: Visa, Inc . Commercial Consumption Expenditure Index fact sheet . Focus / Experts’ Guide / Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 20