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Best Practice in B2B Marketing
Sales and Marketing Alignment: Happy
   Marriage or Forced Coexistence?
              Meta Karagianni
   Research Director, Executive Edge CMO
            SiriusDecisions, Inc.
14 March 2013




B-to-B Sales and Marketing Alignment:
Happy Marriage or Forced Coexistence?
Meta Karagianni
Research Director, Executive Edge CMO
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



                                                  © Copyright SiriusDecisions.
                                            All Rights Protected and Reserved.   3
SiriusDecisions: Brief Overview
SiriusDecisions Offering Architecture




                                              © Copyright SiriusDecisions.
                                        All Rights Protected and Reserved.   5
Usual vs. Best-in-Class B-to-B Scenario
The Usual B-to-B Scenario
 SiriusPerspective: Weak alignment at the top of the waterfall results in
 poor performance in the middle and bottom.

                                                          Inquiry
                                                           Inquiry   Inquiries
No nurture/                80%
qualification
                                               Marketing and Tele Qualification Leads
                                               Marketing and Tele Qualification
                                                           Marketing Qualified
  Sales accepts              100%
everything/nothing
                                                     Sales Acceptance
                                                     Sales Acceptance
    Inefficient use of           3% - ??
    sales resources
                                                             Sales Qualified Leads
                                                     Sales Qualification
                                                     Sales Qualification
           Poor pipeline            10% - ??
           dynamics
                   SQL                                 417 inquiries to Close
                                                        417 inquiries to
                                                         close 11deal
                                                          close deal

                                                                                      © Copyright SiriusDecisions.
                                                                                All Rights Protected and Reserved.   7
How Does This Happen?


   Sales wants “leads!”
                          Marketing hits the “more”
                                   button

       Sales doesn’t follow up           Marketing: “Why no
                                             followup?”
            Sales: The “leads” are
                   no good                       Marketing:



                                       Wasted effort, poor
                                     performance, bitterness,
                                             despair
                                                                      © Copyright SiriusDecisions.
                                                                All Rights Protected and Reserved.   8
The Best-in-Class B-to-B Scenario
  SiriusPerspective: Strong process and alignment at the top of the
  waterfall creates strong efficiencies in the middle and bottom.

                                                        Inquiry Inquiries
                                                         Inquiry
                                          • How does this happen?
Real lead                 9.3%
qualification
                                                 Marketing and Tele Qualification Leads
                                                 Marketing and Tele Qualification
                                                             Marketing Qualified
Strong process               85%
that is adhered to
                                                              Sales Accepted Leads
                                                       Sales Acceptance
                                                       Sales Acceptance
    Sales becomes                  62%
    more efficient
                                                       Sales Qualification
                                                       Sales Qualification
           Pipeline
                                    29% - ??
           dynamics                                    70 inquiries to close
                                                        70 inquiries to close
                    SQL
           improve                                            11deal
                                                                 deal

                                                                                      © Copyright SiriusDecisions.
                                                                                All Rights Protected and Reserved.   9
Best Practice Attributes
SiriusPerspective: While there are many differences between average
and high-performing companies, four characteristics are consistent.

               Sales Pipeline                        Sales Alignment
         • 30%+ Sourced*                     • Flexible Programmes
         • 70%+ Influenced*                  • Strong SLAs
         • Not a Leads Only Focus            • Targeted and Sales Stage
                                               Based

               Program Mix                                Integrated
         •   Multi-Channel                    •   Based on Buyer’s Journey
         •   Web Centric                      •   Multi-Touch Programmes
         •   Nurturing Model                  •   Data Centric
         •   Best Practice Syndication        •   Web Focused

                                         * Varies by organizational size and target markets
                                                                                              © Copyright SiriusDecisions.
                                                                                        All Rights Protected and Reserved.   10
Getting to Alignment
What Is Alignment?
SiriusPerspective: There are four key areas of alignment between
marketing and sales.
           1. Buyer’s Journey                                  2. Activity Alignment
 Key Issue: How do your customers buy?               Key Issue: What are the sales and marketing
                                                     activities along the buyer’s journey?
 Deliverable: Buyer’s journey model that sales
 and marketing will use as a common denominator      Deliverable: Identification of marketing programmes,
 for strategy, process and activity alignment.       sales requirements/process and role clarification at each
                                                     stage of the buyer’s journey.



        3. Campaign Structure                                  4. Planning/Measurement
 Key Issue: What language, structure and visual      Key Issue: How will the planning and measurement process
 descriptions will you use to describe marketing     change as a result of buyer’s journey?
 and sales efforts?
                                                     Deliverable: Waterfall model of closed-loop measurement.
 Deliverable: One view on campaign
                                                     Integrated marketing planning model.
 nomenclature, lead definition, lead nurturing and
 SLAs between sales and marketing.

                                                                                                    © Copyright SiriusDecisions.
                                                                                              All Rights Protected and Reserved.   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.




                                                                  Marketing
              a. Loosening of the Status




                                                                  Inbound
               a. Loosening of the Status
                 Quo
                                                                                       79% start their
Education
 Education        Quo
                                                                                    evaluation with search
  Phase
   Phase




                                            Online Relationship
              b. Committing to Change
               b. Committing to Change
                                                                                      33% consult peers
              c. Exploring Possible
               c. Exploring Possible                                                  and ask questions
                 Solutions
                  Solutions                                                             on social sites
 Solution
  Solution




                                                                    Sales Process
  Phase
   Phase      d. Committing to aa
               d. Committing to
                 Solution
                  Solution

              e. Justifying the Decision
               e. Justifying the Decision                                               53% consume
  Vendor
   Vendor
 Selection
  Selection
                                                                                    vendor social content
  Phase
   Phase      f.f. Making the Selection
                    Making the Selection                                               and do research



                                                                                                           © Copyright SiriusDecisions.
                                                                                                     All Rights Protected and Reserved.   13
Early Digital Engagement Is Not Only for the Youth
Chief Financial Officer (CFO)            Chief Marketing Officer (CMO)           Chief Information Officer (CIO)
1.Ask my team for options                1.Search the Internet (product or       1.Search the Internet (problem or
                                         technology category)                    initiative)
2.Search the Internet (for specific
vendors by name)                         2.Explore a known vendor Web site       2.Explore a known vendor Web site
3.Call an industry analyst               3.Ask my team for options               3.Ask my team for options
4.Call on my social network              4.Call an industry peer                 4.Explore a known online community
5.Search the Internet (product or        5.Call on my social network             5.Search the Internet (product or
technology category)                                                             technology category)
                                         6.Call an industry analyst
6.Search the Internet (problem or                                                6.Explore a known association
initiative)                              7.Explore a known online community      Web site
7.Explore a known association Web site   8.Search the Internet (vendors by       7.Call an industry peer
                                         name)
8.Peruse vendor booths at industry                                               8.Call an industry analyst
trade show                               9.Peruse vendor booths at an industry
                                         trade show                              9.Search the Internet (vendors by
9.Call an industry peer                                                          name)
                                         10.Explore a known association
10.Explore a known vendor Web site       Web site                                10.Call on my social network
11.Explore a known online community      11.Search the Internet (problem or      11.Peruse vendor booths at an
                                         initiative)                             industry trade show


                                                                                                     © Copyright SiriusDecisions.
                                                                                               All Rights Protected and Reserved.   14
Activity Alignment
                                         Tactics and Programmes
                          Loosening        Advertising
                            of the         Thought Leadership
           Seed
          Suspect                          Global Campaigns
                            Status
                             Quo           Product Launch
                         Committing        Promos/Offers
          Create          to Change        Events/Webinars
        Qualification                      Account Based Marketing
                                           Website/SEO/SEM
                          Exploring        Self-Guided Demos
          Solution        Possible         Analyst Reports
           Nurture        Solutions        Lead Nurturing Programmes
        Identification
                                          Presentations/ In-Person Demos
                          Committing      Competitive Tools/ Customer
         Solution
          Enable         to a Solution    References
         Validation
                                          Trials/Proof of Concept
                          Justifying      ROI Tools
         Accelerate          the          Exec Briefings
          Propose          Decision       Pipeline Acceleration Programmes
                                          Customer Newsletters
           Retain           Making        Online Communities
           Close              the         Value Review
                           Selection      Relationship Marketing

                                                  © Copyright SiriusDecisions.
                                            All Rights Protected and Reserved.   15
Buyer-Centric, Integrated Campaign Structure
SiriusPerspective: Integrated campaigns combine messaging and
marketing activities along the buyer’s journey.
 BUYING CYCLE                         NEW CONCEPT
                                                                   NEW PARADIGM
                                                                                  ESTABLISHED MARKET




               Reputation                      Demand Creation                    Sales Enablement
  MESSAGING                                                                                  Vendor Selection
              Education                                Solution




  TOUCHES
 Education     Education   Solution        Solution     Solution    Selection       Selection    Selection        Selection

    T1            T2         T3              T1           T2           T3              T1           T2                T3
                                                                                   Analyst        CaseCopyright SiriusDecisions.
                                                                                                        ©            Peer          16
White Paper    Webinar Case Study        White Paper     Event      Webinar
                                                                                   Report         StudyProtected and Reserved.
                                                                                                  All Rights
                                                                                                               Interaction
Service-Level Agreements: The Ties That Bind
SiriusPerspective: A core set of SLAs must be created, and adjusted over
time based on data.
                        Lead acceptance
                           Timeframe
                       Bypass/exceptions
                           Disposition
                  Special programme alignment



      Demand Centre/                                           Field/Channel
                                   Teleprospecting
      Field Marketing                                              Sales

                                                  Lead acceptance
                                                     Timeframe
                                                     Disposition
                                                   Rep alignment
                                                Programme alignment

                                                                            © Copyright SiriusDecisions.
                                                                      All Rights Protected and Reserved.   17
Demand Type and Lead Level
SiriusPerspective: Demand type also will provide significant guidance in
terms of the “type” of lead you are looking for.


                                                           New Concept


                                                           New Paradigm

                                                            Established
                                                              Market




                                                                  © Copyright SiriusDecisions.
                                                            All Rights Protected and Reserved.   18
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.




    83         The percentage of MARKETING qualified leads that
               will NOT make it to closure.




    80         The percentage of SALES qualified leads that will
               NOT make it to closure.

                                                                   © Copyright SiriusDecisions.
                                                             All Rights Protected and Reserved.   19
Setting the Stage: Nurture Types
SiriusPerspective: Prospects can “sit” in a variety of demand waterfall
stages; thus, b-to-b organizations must consider multiple nurture types.

                                                        Nurturing before a prospect is handed off
                             1   Pre-MQL                to a teleprospecting, field or channel
                                                        resource
            1


                                                        Nurturing when a prospect is rejected by a
                                 2a: Active Recycled    sales resource for a pre-determined reason
                             2                          Nurturing when a prospect has
            2
                                 2b: Passive Recycled   experienced no movement for a pre-
                                                        determined period of time, but has not
                                                        been rejected by sales

            3
                                                        Nurturing when a once-engaged
                             3   Reconstituted          opportunity has died on the vine, with no
                                                        activity for months or even quarters


                                                                                 © Copyright SiriusDecisions.
                                                                           All Rights Protected and Reserved.   20
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

                                                                        © Copyright SiriusDecisions.
                                                                  All Rights Protected and Reserved.   21
The SiriusDecisions Lead Nurturing Framework
SiriusPerspective: By crossing nurture types with key components, a new
framework is born.

              Pre-MQL       Recycled: Active   Recycled: Passive            Reconstituted


Entry




Treatment




Transition



Disposition




                                                                         © Copyright SiriusDecisions.
                                                                   All Rights Protected and Reserved.   22
Nurturing Framework: A Checklist
  SiriusPerspective: Depending on the type – or types – of nurturing your
  organisation pursues, use our checklist to determine your readiness.
                                 Pre-MQL                                       Recycled: Active                               Recycled: Passive                               Reconstituted

              • Target market agreement (companies, entry        • Disqualification reasons                       • Time thresholds for lead inactivity         • Aging opportunity parameters
                points)                                          • CRM-to-MAP prospect feed                       • Warning system (first-line manager, sales   • Segmentation rules
              • Complete, clean list (owned or purchased)        • Visibility rules (e.g. can sales still           rep)                                        • List pull process
Entry         • Inbound marketing strategy                         see active nurture prospects)                  • Service-level agreements (field to tele)
                                                                 • Service-level agreements (if any prospects
                                                                   will go to tele)


              •   Need-based campaign structure                  • Hierarchical touch strategy (reason,           • Teleprospecting scripts                     • Multi-touch reconstituted program
              •   Decision-based demand program                    category of interest, vertical, role)          • Email templates                             • Content to serve
              •   Conversion-optimized Web site                  • Scripts/templates (if tele is involved)        • Pre-call/post-call content                  • Information collection strategy
              •   Content                                        • Information collection strategy
Treatment
              •   Information collection strategy (categories,
                  gating approach)



              • Lead scoring schematic(s)                        • Lead scoring schematic(s)                      • Contact rules (number of times              • Lead scoring schematic
Transition    • Lead definition threshold(s)                     • Tele-triggers/definitions                        dialed/emailed)
                                                                 • Sales removal permissions                      • Requalification rule set

              • Marketing automation/CRM linkages                • Service-level agreements (marketing to tele,   • Non-qualifier/no contact pass (tele to      • Non-qualifier/no contact pass (into long-
              • Service-level agreements (marketing to             tele to field)                                   marketing)                                    term recycling)
                tele, marketing to field)                        • Lead bypass rule set                           • Qualifier pass (tele to field)              • Qualifier pass (tele to field)
Disposition   • Lead bypass rule set                             • Procedural rejection rules
              • Procedural rejection rules




                                                                                                                                                                          © Copyright SiriusDecisions.
                                                                                                                                                                    All Rights Protected and Reserved.        23
Is It Worth It?
Marketing Around the Buyer’s Journey
SiriusPerspective: Today’s marketing ecosystem centers on the buyer’s
journey, where marketing disciplines must effectively work together.
                           ‘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%

                                                                      © Copyright SiriusDecisions.
                                                                All Rights Protected and Reserved.   25
Average vs. Best-in-Class
SiriusPerspective: High-performing companies market to all areas of the
waterfall to impact performance.

                         Waterfall Conversion Rates
                                                      Best-in-
                               Average      Strong
                                                       Class     What do high-performing
                                                                 companies do differently?
             Inquiries
                                                                             Seed
                                 4.1%        5.8%      9.7%
        Marketing Qualified                                                 Create
          Leads (MQLs)
                                 62%        65.6%      74.5%               Nurture
         Sales Accepted
             Leads
                                47.5%       56.4%      60.5%                Enable
          Sales Qualified
          Leads (SQLs)                                                   Accelerate
                                 22.1%      26.9%      30.7%
           Closed/Won
            Business
                                                                              © Copyright SiriusDecisions.
                                                                        All Rights Protected and Reserved.   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

                                                            © Copyright SiriusDecisions.
                                                      All Rights Protected and Reserved.   27
Thank You!


  Brian Atkinson                       Meta Karagianni
  EMEA Business Development Director   Research Director, Executive Edge CMO EMEA
  Brian.atkinson@siriusdecisions.com   Meta.karagianni@siriusdecisions.com
  Mobile: 00447739363545               Mobile: 00447717814586




                                                                        © Copyright SiriusDecisions.
                                                                  All Rights Protected and Reserved.   28
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.
     Inquiry
      Inquiry                                                               Changes/Observations
                                                                            Changes/Observations
                 Inbound
                  Inbound                  Outbound
                                           Outbound    Three Key Reasons for the Change
                                                       1.The original waterfall didn’t account for demand that was
        Marketing Qualification
        Marketing Qualification                        sourced outside of marketing
                   Automation Qualified Leads (AQLs)   2.The original waterfall obscured the role of teleprospecting in the
                   Automation Qualified Leads (AQLs)   overall demand creation process and could potentially send the
                                                       wrong message about the criticality of this function
              Teleprospecting Accepted Leads (TALs)
               Teleprospecting Accepted Leads (TALs)   3.The original waterfall wasn’t specific about the role of inbound
                                     Teleprospecting
                                     Teleprospecting   marketing, and this masks an ongoing shift of lead sources over
            Teleprospecting
            Teleprospecting                            the past five years
                                     Generated Leads
                                     Generated Leads
         Qualified Leads (TQLs)
         Qualified Leads (TQLs)                        •Changes we made: We introduced…
                                         (TGLs)
                                          (TGLs)
                                                           –    New stages to reflect a more complete view of the
           Sales Qualification                                  journey demand takes from cold to close, and the
           Sales Qualification                                  different points at which it originates
                Sales Generated
                Sales Generated      Sales Accepted
                                     Sales Accepted        –    Stage rollups (4) grouping together activities related to
                 Leads (SGLs)
                 Leads (SGLs)         Leads (SALs)
                                      Leads (SALs)              one another
                                                           –    Specific color-coding
                    Sales Qualified Leads (SQLs)                ‒   Red: Demand originated from Marketing
                                                                ‒   Green: The handoff of demand from one function to another
                    Close
                    Close                                       ‒   Orange: Demand originated in teleprospecting
                                                                ‒   Blue: Demand originated in sales
                            Won Business

                                                                                                     © Copyright SiriusDecisions.
                                                                                               All Rights Protected and Reserved.   30
© Copyright SiriusDecisions.
All Rights Protected and Reserved.   31

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Sales & Marketing alignment: Happy marriage or forced coexistence?

  • 1. Best Practice in B2B Marketing Sales and Marketing Alignment: Happy Marriage or Forced Coexistence? Meta Karagianni Research Director, Executive Edge CMO SiriusDecisions, Inc.
  • 2. 14 March 2013 B-to-B Sales and Marketing Alignment: Happy Marriage or Forced Coexistence? Meta Karagianni Research Director, Executive Edge CMO
  • 3. 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 © Copyright SiriusDecisions. All Rights Protected and Reserved. 3
  • 5. SiriusDecisions Offering Architecture © Copyright SiriusDecisions. All Rights Protected and Reserved. 5
  • 6. Usual vs. Best-in-Class B-to-B Scenario
  • 7. The Usual B-to-B Scenario SiriusPerspective: Weak alignment at the top of the waterfall results in poor performance in the middle and bottom. Inquiry Inquiry Inquiries No nurture/ 80% qualification Marketing and Tele Qualification Leads Marketing and Tele Qualification Marketing Qualified Sales accepts 100% everything/nothing Sales Acceptance Sales Acceptance Inefficient use of 3% - ?? sales resources Sales Qualified Leads Sales Qualification Sales Qualification Poor pipeline 10% - ?? dynamics SQL 417 inquiries to Close 417 inquiries to close 11deal close deal © Copyright SiriusDecisions. All Rights Protected and Reserved. 7
  • 8. How Does This Happen? Sales wants “leads!” Marketing hits the “more” button Sales doesn’t follow up Marketing: “Why no followup?” Sales: The “leads” are no good Marketing: Wasted effort, poor performance, bitterness, despair © Copyright SiriusDecisions. All Rights Protected and Reserved. 8
  • 9. The Best-in-Class B-to-B Scenario SiriusPerspective: Strong process and alignment at the top of the waterfall creates strong efficiencies in the middle and bottom. Inquiry Inquiries Inquiry • How does this happen? Real lead 9.3% qualification Marketing and Tele Qualification Leads Marketing and Tele Qualification Marketing Qualified Strong process 85% that is adhered to Sales Accepted Leads Sales Acceptance Sales Acceptance Sales becomes 62% more efficient Sales Qualification Sales Qualification Pipeline 29% - ?? dynamics 70 inquiries to close 70 inquiries to close SQL improve 11deal deal © Copyright SiriusDecisions. All Rights Protected and Reserved. 9
  • 10. Best Practice Attributes SiriusPerspective: While there are many differences between average and high-performing companies, four characteristics are consistent. Sales Pipeline Sales Alignment • 30%+ Sourced* • Flexible Programmes • 70%+ Influenced* • Strong SLAs • Not a Leads Only Focus • Targeted and Sales Stage Based Program Mix Integrated • Multi-Channel • Based on Buyer’s Journey • Web Centric • Multi-Touch Programmes • Nurturing Model • Data Centric • Best Practice Syndication • Web Focused * Varies by organizational size and target markets © Copyright SiriusDecisions. All Rights Protected and Reserved. 10
  • 12. What Is Alignment? SiriusPerspective: There are four key areas of alignment between marketing and sales. 1. Buyer’s Journey 2. Activity Alignment Key Issue: How do your customers buy? Key Issue: What are the sales and marketing activities along the buyer’s journey? Deliverable: Buyer’s journey model that sales and marketing will use as a common denominator Deliverable: Identification of marketing programmes, for strategy, process and activity alignment. sales requirements/process and role clarification at each stage of the buyer’s journey. 3. Campaign Structure 4. Planning/Measurement Key Issue: What language, structure and visual Key Issue: How will the planning and measurement process descriptions will you use to describe marketing change as a result of buyer’s journey? and sales efforts? Deliverable: Waterfall model of closed-loop measurement. Deliverable: One view on campaign Integrated marketing planning model. nomenclature, lead definition, lead nurturing and SLAs between sales and marketing. © Copyright SiriusDecisions. All Rights Protected and Reserved. 12
  • 13. 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. Marketing a. Loosening of the Status Inbound a. Loosening of the Status Quo 79% start their Education Education Quo evaluation with search Phase Phase Online Relationship b. Committing to Change b. Committing to Change 33% consult peers c. Exploring Possible c. Exploring Possible and ask questions Solutions Solutions on social sites Solution Solution Sales Process Phase Phase d. Committing to aa d. Committing to Solution Solution e. Justifying the Decision e. Justifying the Decision 53% consume Vendor Vendor Selection Selection vendor social content Phase Phase f.f. Making the Selection Making the Selection and do research © Copyright SiriusDecisions. All Rights Protected and Reserved. 13
  • 14. Early Digital Engagement Is Not Only for the Youth Chief Financial Officer (CFO) Chief Marketing Officer (CMO) Chief Information Officer (CIO) 1.Ask my team for options 1.Search the Internet (product or 1.Search the Internet (problem or technology category) initiative) 2.Search the Internet (for specific vendors by name) 2.Explore a known vendor Web site 2.Explore a known vendor Web site 3.Call an industry analyst 3.Ask my team for options 3.Ask my team for options 4.Call on my social network 4.Call an industry peer 4.Explore a known online community 5.Search the Internet (product or 5.Call on my social network 5.Search the Internet (product or technology category) technology category) 6.Call an industry analyst 6.Search the Internet (problem or 6.Explore a known association initiative) 7.Explore a known online community Web site 7.Explore a known association Web site 8.Search the Internet (vendors by 7.Call an industry peer name) 8.Peruse vendor booths at industry 8.Call an industry analyst trade show 9.Peruse vendor booths at an industry trade show 9.Search the Internet (vendors by 9.Call an industry peer name) 10.Explore a known association 10.Explore a known vendor Web site Web site 10.Call on my social network 11.Explore a known online community 11.Search the Internet (problem or 11.Peruse vendor booths at an initiative) industry trade show © Copyright SiriusDecisions. All Rights Protected and Reserved. 14
  • 15. Activity Alignment Tactics and Programmes Loosening Advertising of the Thought Leadership Seed Suspect Global Campaigns Status Quo Product Launch Committing Promos/Offers Create to Change Events/Webinars Qualification Account Based Marketing Website/SEO/SEM Exploring Self-Guided Demos Solution Possible Analyst Reports Nurture Solutions Lead Nurturing Programmes Identification Presentations/ In-Person Demos Committing Competitive Tools/ Customer Solution Enable to a Solution References Validation Trials/Proof of Concept Justifying ROI Tools Accelerate the Exec Briefings Propose Decision Pipeline Acceleration Programmes Customer Newsletters Retain Making Online Communities Close the Value Review Selection Relationship Marketing © Copyright SiriusDecisions. All Rights Protected and Reserved. 15
  • 16. Buyer-Centric, Integrated Campaign Structure SiriusPerspective: Integrated campaigns combine messaging and marketing activities along the buyer’s journey. BUYING CYCLE NEW CONCEPT NEW PARADIGM ESTABLISHED MARKET Reputation Demand Creation Sales Enablement MESSAGING Vendor Selection Education Solution TOUCHES Education Education Solution Solution Solution Selection Selection Selection Selection T1 T2 T3 T1 T2 T3 T1 T2 T3 Analyst CaseCopyright SiriusDecisions. © Peer 16 White Paper Webinar Case Study White Paper Event Webinar Report StudyProtected and Reserved. All Rights Interaction
  • 17. Service-Level Agreements: The Ties That Bind SiriusPerspective: A core set of SLAs must be created, and adjusted over time based on data. Lead acceptance Timeframe Bypass/exceptions Disposition Special programme alignment Demand Centre/ Field/Channel Teleprospecting Field Marketing Sales Lead acceptance Timeframe Disposition Rep alignment Programme alignment © Copyright SiriusDecisions. All Rights Protected and Reserved. 17
  • 18. Demand Type and Lead Level SiriusPerspective: Demand type also will provide significant guidance in terms of the “type” of lead you are looking for. New Concept New Paradigm Established Market © Copyright SiriusDecisions. All Rights Protected and Reserved. 18
  • 19. 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. 83 The percentage of MARKETING qualified leads that will NOT make it to closure. 80 The percentage of SALES qualified leads that will NOT make it to closure. © Copyright SiriusDecisions. All Rights Protected and Reserved. 19
  • 20. Setting the Stage: Nurture Types SiriusPerspective: Prospects can “sit” in a variety of demand waterfall stages; thus, b-to-b organizations must consider multiple nurture types. Nurturing before a prospect is handed off 1 Pre-MQL to a teleprospecting, field or channel resource 1 Nurturing when a prospect is rejected by a 2a: Active Recycled sales resource for a pre-determined reason 2 Nurturing when a prospect has 2 2b: Passive Recycled experienced no movement for a pre- determined period of time, but has not been rejected by sales 3 Nurturing when a once-engaged 3 Reconstituted opportunity has died on the vine, with no activity for months or even quarters © Copyright SiriusDecisions. All Rights Protected and Reserved. 20
  • 21. 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 © Copyright SiriusDecisions. All Rights Protected and Reserved. 21
  • 22. The SiriusDecisions Lead Nurturing Framework SiriusPerspective: By crossing nurture types with key components, a new framework is born. Pre-MQL Recycled: Active Recycled: Passive Reconstituted Entry Treatment Transition Disposition © Copyright SiriusDecisions. All Rights Protected and Reserved. 22
  • 23. Nurturing Framework: A Checklist SiriusPerspective: Depending on the type – or types – of nurturing your organisation pursues, use our checklist to determine your readiness. Pre-MQL Recycled: Active Recycled: Passive Reconstituted • Target market agreement (companies, entry • Disqualification reasons • Time thresholds for lead inactivity • Aging opportunity parameters points) • CRM-to-MAP prospect feed • Warning system (first-line manager, sales • Segmentation rules • Complete, clean list (owned or purchased) • Visibility rules (e.g. can sales still rep) • List pull process Entry • Inbound marketing strategy see active nurture prospects) • Service-level agreements (field to tele) • Service-level agreements (if any prospects will go to tele) • Need-based campaign structure • Hierarchical touch strategy (reason, • Teleprospecting scripts • Multi-touch reconstituted program • Decision-based demand program category of interest, vertical, role) • Email templates • Content to serve • Conversion-optimized Web site • Scripts/templates (if tele is involved) • Pre-call/post-call content • Information collection strategy • Content • Information collection strategy Treatment • Information collection strategy (categories, gating approach) • Lead scoring schematic(s) • Lead scoring schematic(s) • Contact rules (number of times • Lead scoring schematic Transition • Lead definition threshold(s) • Tele-triggers/definitions dialed/emailed) • Sales removal permissions • Requalification rule set • Marketing automation/CRM linkages • Service-level agreements (marketing to tele, • Non-qualifier/no contact pass (tele to • Non-qualifier/no contact pass (into long- • Service-level agreements (marketing to tele to field) marketing) term recycling) tele, marketing to field) • Lead bypass rule set • Qualifier pass (tele to field) • Qualifier pass (tele to field) Disposition • Lead bypass rule set • Procedural rejection rules • Procedural rejection rules © Copyright SiriusDecisions. All Rights Protected and Reserved. 23
  • 24. Is It Worth It?
  • 25. Marketing Around the Buyer’s Journey SiriusPerspective: Today’s marketing ecosystem centers on the buyer’s journey, where marketing disciplines must effectively work together. ‘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% © Copyright SiriusDecisions. All Rights Protected and Reserved. 25
  • 26. Average vs. Best-in-Class SiriusPerspective: High-performing companies market to all areas of the waterfall to impact performance. Waterfall Conversion Rates Best-in- Average Strong Class What do high-performing companies do differently? Inquiries Seed 4.1% 5.8% 9.7% Marketing Qualified Create Leads (MQLs) 62% 65.6% 74.5% Nurture Sales Accepted Leads 47.5% 56.4% 60.5% Enable Sales Qualified Leads (SQLs) Accelerate 22.1% 26.9% 30.7% Closed/Won Business © Copyright SiriusDecisions. All Rights Protected and Reserved. 26
  • 27. 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 © Copyright SiriusDecisions. All Rights Protected and Reserved. 27
  • 28. Thank You! Brian Atkinson Meta Karagianni EMEA Business Development Director Research Director, Executive Edge CMO EMEA Brian.atkinson@siriusdecisions.com Meta.karagianni@siriusdecisions.com Mobile: 00447739363545 Mobile: 00447717814586 © Copyright SiriusDecisions. All Rights Protected and Reserved. 28
  • 30. 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. Inquiry Inquiry Changes/Observations Changes/Observations Inbound Inbound Outbound Outbound Three Key Reasons for the Change 1.The original waterfall didn’t account for demand that was Marketing Qualification Marketing Qualification sourced outside of marketing Automation Qualified Leads (AQLs) 2.The original waterfall obscured the role of teleprospecting in the Automation Qualified Leads (AQLs) overall demand creation process and could potentially send the wrong message about the criticality of this function Teleprospecting Accepted Leads (TALs) Teleprospecting Accepted Leads (TALs) 3.The original waterfall wasn’t specific about the role of inbound Teleprospecting Teleprospecting marketing, and this masks an ongoing shift of lead sources over Teleprospecting Teleprospecting the past five years Generated Leads Generated Leads Qualified Leads (TQLs) Qualified Leads (TQLs) •Changes we made: We introduced… (TGLs) (TGLs) – New stages to reflect a more complete view of the Sales Qualification journey demand takes from cold to close, and the Sales Qualification different points at which it originates Sales Generated Sales Generated Sales Accepted Sales Accepted – Stage rollups (4) grouping together activities related to Leads (SGLs) Leads (SGLs) Leads (SALs) Leads (SALs) one another – Specific color-coding Sales Qualified Leads (SQLs) ‒ Red: Demand originated from Marketing ‒ Green: The handoff of demand from one function to another Close Close ‒ Orange: Demand originated in teleprospecting ‒ Blue: Demand originated in sales Won Business © Copyright SiriusDecisions. All Rights Protected and Reserved. 30
  • 31. © Copyright SiriusDecisions. All Rights Protected and Reserved. 31

Notas do Editor

  1. What are best practice companies doing differently? There are four key attributes of high performing companies in demand generation SiriusDecisions has observed: 1. Sales Pipeline: Organizations focus on the impact demand generation can have on the sales pipeline, NOT the number of leads generated. In many ways, the focus on lead quantity created a false sense of security for b-to-b companies. Best practice companies focus on the impact to the sales pipeline from what they term “influence” and “source.” Source means uniquely created leads which have become opportunities -- where there was previously not an opportunity from this buying center. Influence means marketing is actively touching prospect buying centers that sales is working. 2. Sales Alignment: Marketing programs are designed in a flexible manner, providing sales with options on how they’re implemented with strong service level agreements on lead definition, while also providing plays for all areas of the selling process. 3. Program Mix: The program mix for these companies are weighted more online (see Chart 1 Appendix) and create a nurturing model around the customer buying cycle. As a result, the marketing is integrated, multi-channel and encourages prospects to self-select or demonstrate activity to suggest where they are in their buying journey. 4. Integration: Instead of having multiple independent marketing “programs” or plays, they create an integrated journey around the customer buying journey. They understand this by having a data-centric view of their marketing and delivering most of the marketing in a digital form.
  2. One of our customers has studied their targeted audience at the C level – comes in early and late; disappear in the middle but their team is deep in evaluation. They now have on their website – “what your team needs to see.”
  3. Ask question on what is most critical for them.