A Playbook for Sales and Marketing Alignment: Maximizing the

A Playbook for Sales and Marketing Alignment:

Maximizing the Effective Delivery of Sales-

ready Leads

Peter Ostrow, Research Director, Aberdeen Group

Brian Carroll, CEO of InTouch

J. David Green, Best Practice Leader of InTouch

© 2010 Marketo, Inc. All rights reserved

Our Speakers

Peter Ostrow

Research Director, Aberdeen Group

@PeterOstrow

Brian Carroll

CEO of InTouch

@BrianJCarroll

J. David Green

Best Practice Leader of InTouch

@intouch© 2010 Marketo, Inc.

Twitter: #Marketo

What is a Revenue Master?

Founded as a way to highlight the successes of exemplary sales and marketing professionals

Best-in-class sales and marketers, analysts, book authors and thought leaders

Speakers that have the ability to measure and demonstrate ROI of their sales and marketing programs

Marketers helping to make marketing a revenue generator and not a cost-center in their organizations

Sales professionals focused on closing deals and product values, not cold calling

© 2010 Marketo, Inc.

Twitter: #Marketo

© AberdeenGroup 2010

A Playbook for Sales and Marketing

Alignment: Maximizing the Effective Delivery

of Sales-Ready Leads

August 26, 2010

Peter OstrowResearch Director, Sales Effectiveness

617-854-5373, [email protected]

5 • © AberdeenGroup 2010

Agenda

Introduction

PACE methodology and maturity class framework

Relevant research

Best-in-Class attributes

Lessons learned


Aberdeen’s Methodology: How do companies win?

P

A

C

E

Pressures:External and internal forces that impact an organization’s market position, competitiveness, or business operations.

Actions:The strategic approaches that an organization takes in response to industry pressures.

Capabilities:The business competencies (organization, process, etc…) required to execute corporate strategy.

Enablers:The key technology solutions required to support the organization’s business practices.


Aberdeen Maturity Class Framework: Identifying

the Lead Management Best-in-Class

Selected YOY Performance Criteria

(KPI)

Annual revenue growth

Email marketing click-throughTotal

Respondents:

205

- Top 20%

- Middle 50%

- Bottom 30%Respondents are scored individually across KPIs

Best-in-Class

Industry Average

Laggard

Customer acquisition revenue


Aberdeen Findings

What are Best-in-Class companies doing differently?

What pitfalls are they avoiding?

Why are they achieving greater success?

What technologies and services are enabling them to succeed?

P

A

C

E

Pressures:External forces that impact an organization’s market position,

competitiveness, or business operations.P ressures:External forces that impact an organization’s market position,’competitiveness, or business operations.

Actions:The strategic approaches that an organization takes in response to industry pressures.A ctions:The strategic approaches that an organization takes inresponse to industry pressures.

Capabilities:The business competencies (organization, process, etc…)

required to execute corporate strategy.C apabilities:The business competencies (organization, process, etc…)required to execute corporate strategy.

Enablers:The key technology solutions required to support the

organization’s business practices.E nablers:The key technology solutions required to support the

’organization’s business practices.

Selected YOY PerformanceCriteria (KPI)

Annual revenue growth

TotalRespondents:

205

- Top 20%

- Middle 50%

- Bottom 30%Respondents are scored

individually across KPI

Best -in-Class

Industry Average

Laggard

Email marketing click-through

Customer acquisition revenue


“Crossing the Chasm with Automated Lead

Management” (January 2010)Definition of

Maturity

Class

Mean Class Performance

Best-in-Class:

Top 20%of aggregate performance

scorers

79% improved company-wide annual revenue growth; average performance increase was 59%

74% improved click-through rate on e-mail; average performance increase was 23%

82% improved annual growth - customer acquisition revenue, average performance increase of 51%

75% improved current lead to sales conversion, average performance increase was 23%

Industry

Average:

Middle 50%of aggregate

performance scorers

63% improved company-wide annual revenue growth; average performance increase was 9%

51% improved click-through rate on e-mail; average performance increase was 6%

53% improved annual growth in customer acquisition revenue, average performance increase was 8%


Laggard:

Bottom 30%of aggregate performance

scorers

25% improved company-wide annual revenue growth; average performance decrease was 3%

12% improved click-through rate on e-mail; average performance: no change versus previous year

6% improved annual growth in customer acquisition revenue, average performance decrease was 2%



Best-in-Class Pressures

57%

29%25%

0%

20%

40%

60%

Need to increase

new customer

acquisition revenue

Lack of visibility in

the sales pipeline

Inability to engage

prospects with

relevant marketing

messages

All Respondents n=205


Best-in-Class Strategic Actions

63%

46%

29%

58%

51%

24%

57%

49%

20%

0%

20%

40%

60%

80%

Segment the

customer/prospect

database and deliver

targeted messages

Enable prospect

qualification through

lead nurturing

Adopt automated lead

management

technologies

Best-in-Class Industry Average Laggard n= 205


Best-in-Class Capabilities

31%

41%

17%

43%

62%65%

70%

25%

48%

39%

54%

42%

0%

15%

30%

45%

60%

75%

Ability to

measure

marketing-

delivered leads

Marketing/sales

collaborative lead

definition

Internal resource

supporting

sales/marketing

communication

Customer

behavior used to

personalize

marketing

campaigns

n = 205

Perc

en

tag

e o

f R

esp

on

den

ts

Best-in-Class Industry Average Laggard


Best-in-Class Enablers

56%53%

50%

35%

63%

76%

82%

95%96%

45%

56%

66%68%

79%76%

30%

40%

50%

60%

70%

80%

90%

100%

Customer

database

Email

marketing

CRM Customer

segmentation

and targeting

Lead

management

n = 205

Pe

rce

nta

ge

of

Res

po

nd

en

ts


56%53%

50%

35%

63%

76%

82%

95%96%

45%

56%

66%68%

79%76%

30%

40%

50%

60%

70%

80%

90%

100%

Customer

database

Email

marketing

CRM Customer

segmentation

and targeting

Lead

management

n = 205

Pe

rce

nta

ge

of

Res

po

nd

en

ts



Organizational Capability

“Marketing and sales collaboratively define what constitutes a 'sales-ready' lead.”


Lead Definitions Impact Marketing

Effectiveness

75%

44%

25% 26%

10%

20%

30%

40%

50%

60%

70%

80%

Return on Marketing

Investments - For Customer

Acquisition Campaigns

Percentage of New Leads

Nurtured

n = 205

Cu

rren

t P

erc

en

tag

e

Companies supporting common lead definition All others

75%

44%

25% 26%

10%

20%

30%

40%

50%

60%

70%

80%

Return on Marketing




Nurtured

n = 205

Cu

rren

t P

erc

en

tag

e



Lead Definitions Impact Sales

Effectiveness

3.2%

4.9%

12.7%

15.5%

0.2%

1.3%

3.0%

10.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Bid-to-Win

Ratio

Time to Close Return on

Marketing

Investments

Lead to Sales

Conversion

n = 205

YO

Y c

han

ge


3.2%

4.9%

12.7%

15.5%

0.2%

1.3%

3.0%

10.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Bid-to-Win

Ratio

Time to Close Return on

Marketing

Investments

Lead to Sales

Conversion

n = 205

YO

Y c

han

ge



Organizational Capability

“Lead Administrator or individual accountable for communicating between sales and marketing for pipeline, forecast and closure data.”


Current Performance Benefits from Intra-

Departmental Communications

10.9% 10.8%

8.9%

6.8%

5.1%

4.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

12.0%

Click-Through Rate

on Email

Lead to Sales

Conversion on

Cross/Up Selling

Sales Engagement

Click-Through

Rates on Email

Campaigns (Mass

Email)

n = 205

Cu

rren

t P

erc

en

tag

e

Companies supporting sales/marketing communications resource

All others

10.9% 10.8%

8.9%

6.8%

5.1%

4.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

12.0%

Click-Through Rate

on Email

Lead to Sales

Conversion on

Cross/Up Selling

Sales Engagement

Click-Through

Rates on Email

Campaigns (Mass

Email)

n = 205

Cu

rren

t P

erc

en

tag

e

Companies supporting sales/marketing communications resource

All others


Knowledge Management Capability

“Ability to measure the number of qualified leads delivered to sales.”


Measuring Lead Acceptance Activity

Yields Better Funnel Management

75%

44%

25% 26%

10%

20%

30%

40%

50%

60%

70%

80%

Return on Marketing




Nurtured

n = 205

Cu

rren

t P

erc

en

tag

eCompanies supporting lead acceptance metrics

All others

75%

44%

25% 26%

10%

20%

30%

40%

50%

60%

70%

80%

Return on Marketing




Nurtured

n = 205

Cu

rren

t P

erc

en

tag

eCompanies supporting lead acceptance metrics

All others


Best-in-Class Lead Management

Adoption Justification

34%37%

39%

49%

57%

0%

10%

20%

30%

40%

50%

60%

Marketing

accountability

and

measurement

To learn about

customers and

prospects,

collect

information on

behavior,

engagement,

etc.

Desire to

manage multi-

channel

activities from

one application

Inability to

prioritize leads

for sales (prior

to adoption)

Forced the

organization to

re-work

inefficiencies

in sales and

marketing

n = 205

Perc

en

tag

e o

f R

esp

on

den

ts

34%37%

39%

49%

57%

0%

10%

20%

30%

40%

50%

60%

Marketing

accountability

and

measurement

To learn about

customers and

prospects,

collect

information on

behavior,

engagement,

etc.

Desire to

manage multi-

channel

activities from

one application

Inability to

prioritize leads

for sales (prior

to adoption)

Forced the

organization to

re-work

inefficiencies

in sales and

marketing

n = 205

Perc

en

tag

e o

f R

esp

on

den

ts


“Lead Lifecycle Management: Building a

Pipeline that Never Leaks” (July 2009)

Definition of

Maturity ClassMean Class Performance

Best-in-Class:

Top 20%of aggregate performance scorers

35% average year over year increase in annual revenue

34% annual increase in the total number of new leads

36% current bid-to-win ratio

Industry Average:

Middle 50%of aggregate

performance scorers


13% annual increase in the total number of new leads


Laggard:

Bottom 30%of aggregate performance scorers


19% annual decrease in the total number of new leads



Best-in-Class Capabilities

37%

31%

14%

49%

56%

66%

78%

38%

43%47%47%

37%

10%

20%

30%

40%

50%

60%

70%

80%

Marketing/sales

collaborative lead

definition

Ability to

measure

marketing-

delivered leads

Automated sales

feedback tool

Opportunities

ranked in CRM by

propensity to

purchase

n = 213

Perc

en

tag

e o

f R

esp

on

den

ts


37%

31%

14%

49%

56%

66%

78%

38%

43%47%47%

37%

10%

20%

30%

40%

50%

60%

70%

80%

Marketing/sales

collaborative lead

definition

Ability to

measure

marketing-

delivered leads

Automated sales

feedback tool

Opportunities

ranked in CRM by

propensity to

purchase

n = 213

Perc

en

tag

e o

f R

esp

on

den

ts



Knowledge Management Capability

“Ability to measure the number of open opportunities that result from marketing campaigns.”


Measure > Manage > Grow

63%

33%

24%27%

10%

20%

30%

40%

50%

60%

70%

Return on Marketing




Nurtured

n = 213

YO

Y c

han

ge

Companies supporting measure of lead flow

All others

63%

33%

24%27%

10%

20%

30%

40%

50%

60%

70%

Return on Marketing




Nurtured

n = 213

YO

Y c

han

ge


All others


Year-over-Year Performance

Supported by Lead Flow Tracking

18.7%

15.6%

2.9%

11.4%

9.1%

-0.4%-1.0%

1.0%

3.0%

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%

19.0%

Annual Revenue

Growth (company

wide)

Annual Growth in

Customer

Acquisition Revenue

Lead to Sales

Conversion

n = 213

YO

Y c

han

ge


All others18.7%

15.6%

2.9%

11.4%

9.1%

-0.4%-1.0%

1.0%

3.0%

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%

19.0%

Annual Revenue

Growth (company

wide)

Annual Growth in

Customer

Acquisition Revenue

Lead to Sales

Conversion

n = 213

YO

Y c

han

ge


All others


Lessons Learned

Process

Organization

Knowledge Management

Performance Management

Technology

Measure…


Don’t Know + Don’t Measure = Don’t Win

15%18%

48%45%

29% 29% 28%

5%

11%7%

15%

7%

14%19%

7%

23%

11%

58%

0%

15%

30%

45%

60%

Email

Personalization

Social Media

Monitoring

Marketing

Dashboards

Green

Marketing

Customer

Feedback

Management

B2B

TeleServices



Peter Ostrow

Research Director

Sales Effectiveness

[email protected]

617-854-5373

www.linkedin.com/in/ostrowpeter

http://twitter.com/peterostrow

http://www.aberdeen.com/

mailto:[email protected]

http://www.linkedin.com/in/ostrowpeter



Start with a lead®

A Playbook for Sales and Marketing Alignment: Maximizing the

Effective Delivery of Sales-Ready LeadsBrian Carroll, CEO InTouch and author of

Lead Generation for the Complex Sale (McGraw-Hill 2006)

How many sales people are you supporting?

• 0-9 sales people



• 100 – 499 sales people

• 500+ sales people

Sales-Ready LeadsLead Scoring, Tele-Qualifications

4 - 71.6 – 2.8

Hours

Mountains of Leads; Molehill of Sales.

Decline in lead population through the early stages of the funnel.

New LeadsFilled out a web form, called a toll free number, visited your booth, attended a

webinar, etc.

10040

Hours

Valid LeadsInsufficient info, bogus info,

not in target market

70 - 8528 - 34 Hours

@ up to 5 attempts/lead

& @ 10 dials/hour

Marketing Campaigns Affect Sales Production

(one way or the other)

Account Service Calls, 15.2%

Administrative Tasks/Meetings,

18.0%

Other (including Travel, Training,

etc.), 11.5%

Selling: Face-to-Face or Over-the-Phone

Meetings, 36.6%

Generating Leads/Researching

Accounts, 18.7%

• How much time do your

sales people spend

prospecting?

• How much is that

prospecting time costing

your company?

From the CSO Insight “Sales Performance Optimization” report,

15th edition: over 1,800 companies surveyed.

Copyright © 2009 CSO Insights. All Rights Reserved.

Lead Generation: Increase Sales Productivity

Profitability & Materially

Less

Efficient

Sales

ModelStage OneConnect

Stage TwoAssess

Stage ThreePurchase

These reallocated partner sales resources result in an increase in revenue capacity / higher sales productivity

As much as possible, replace these partner sales resources with lower cost methods of marketing & telemarketing contact

Buying Cycle Stages

More

Efficient

Sales

Model

0%

Allocated Percent of SalesResources

100%

Playbook for Sales and Marketing Alignment

1. Get executive sponsorship.

2. Establish a common goal for sales and

marketing.

3. Develop a joint service level agreement.

4. Collaborate on optimizing sales capacity.

5. Make tele-qualification a bridge between

sales and marketing.

6. Evangelize the new approach.

Step 1: Get Executive Sponsorship

• Alignment can affect profits, revenue,

budget allocation, compensation, job

descriptions, and other executive-level issues.

• The level of sponsorship will depend on the degree of

misalignment. It may need to be the CEO.

• Alignment must become institutionalized, not

something that has a start and stop date.

• Consider benefits (e.g., bonus) and consequences

for non-compliance.

Step 2: Establish a Common Goal for Sales and

Marketing

• High volumes of leads that don’t turn into

sales can actually hamper sales production

• Transparency is key

• Consider the goal of improving sales

productivity

• Share the credit

Sales and marketing will drive more revenue at a lower cost if they share a common goal.

Step 3: Develop a Joint Service Level Agreement

• Form a lead roundtable– Get thought leaders from the sales and marketing teams

– No more than 10 people

– Insight into customer buying behavior and knowledge of best practices is key

• Ask them to define and document the qualification criteria for (and the taxonomy of):– What goes straight to inside sales (smaller, transactional items);

– What goes to a tele-qualification team;

– What goes to the field;

• Ask them to establish and document the policies and practices for the timing, level of effort, and feedback required to follow up and report on leads

• Review this definition quarterly (may require phasing)

Establish a Common Language for the Key

Funnel Stages

Buyin

g C

ycle

New Leads

Registered Leads

Valid Leads

Phone-Ready Leads

Phone-Validated Leads

Sales-Ready Leads

Tele-

Qualification

Team

Sales-Validated Leads

Sales Outcomes

Sales-Forecasted Opportunities Sales

Step 4: Collaborate on Optimizing Sales Capacity

• Jointly plan what will be done.

• Establish baselines & use external benchmarks

as a sanity check.

• How many leads does each sales team need to optimize sales production, given the new lead definition?

• What percentage of the sales pipeline should marketing leads account for?

• How will sales and marketing measure success?

• Consider the tradeoffs between speed of deployment and the level of confidence in pilot results.

• Jointly assess the plans against the goal.

Step 5: Make Tele-qualification a Bridge Between

Sales & Marketing• This group has obligations to both departments

– Sales-ready leads for sales

– Precise feedback on marketing responses to marketing.

• Consider aligning each tele-qualification rep with the sales person(s) he or she might support to create teamwork and mutual accountability.

• Use the feedback from the tele-qualification team to improve up-stream practices and use the feedback from sales to improve tele-qualification process.

One rep on the phone can usually support two to four field sales reps effectively, in terms of pipeline development and optimizing sales production.

Step 6: Evangelize the New Approach

• Use the thought-leaders on the lead roundtable to sell the new approach to skeptical “feet on the street” (where the rubber meets the road).

• Use the tele-qualification team to reinforce the new criteria.

• Consider linking the lead definitions to new leads and any email/web feedback loops.

• Educate new sales people on the program.

Review: Playbook for Sales and Marketing

Alignment

1. Get executive sponsorship.

2. Establish a common goal for sales and

marketing.

3. Develop a joint service level agreement.

4. Collaborate on optimizing sales capacity.

5. Make tele-qualification a bridge between

sales and marketing.

6. Evangelize the new approach.

We value your feedback, please complete our survey as you log out.

Brian Carroll, CEO

651.255.7700 x640

[email protected]

Dave Green, Best Practices Leader

409.770.0710

[email protected]

Other lead generation resources:

www.startwithalead.com

www.leadgenerationbook.com

http://blog.startwithalead.com

http://www.linkedin.com/groupRegistration?gid=1941474

Thank you & Questions



http://www.startwithalead.com/

http://www.leadgenerationbook.com/

http://blog.startwithalead.com/

http://www.linkedin.com/groupRegistration?gid=1941474

Question & Answer

Peter Ostrow

@PeterOstrow

Brian J. Carroll

@BrianJCarroll

David Green

@intouch

Marketo

@Marketo

Please submit questions via chat box on your screen

Slides and a link to a recording of today’s session will be emailed to you

Stay in touch with our speakers after the event via Twitter

© 2010 Marketo, Inc.

Twitter: #Marketo

A Playbook for Sales and Marketing Alignment: Maximizing the

Documents

Transcript of A Playbook for Sales and Marketing Alignment: Maximizing the