1. 1. Are They Hot or Not: Guidelines for Scoring Pipeline Opportunities Laura Patterson President & Author laurap@visionedgemarketing.com -Twitter:@LauraVEM -Facebook: http:// www.facebook.com/pages/VisionEdge-Marketing/27870383215975
2. 2. Improve Your Probability for Success | www.visionedgemarketing.com | 1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 2 Welcome and Program Agenda The Best-in-Class vs. The Rest Developing a Scoring Schema and Model
3. 3. Improve Your Probability for Success | www.visionedgemarketing.com | 1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 3 Partners in Creating, Retaining, and Growing the Value of Customers Marketing and Sales = the fundamental relationship for attracting buyers The relationship > than a simple handoff at the point a qualified opportunity is generated Is Yours Broken?
4. 4. Improve Your Probability for Success | www.visionedgemarketing.com | 1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 4 9 Tell Tale Signs the Marketing and Sales Relationship is Broken 1. Work from separate opportunity pipeline or sales funnel models 2. Poorly defined handoff 3. Use and report on different performance metrics 4. Few or No jointly defined activities that will improve opportunity flow in terms of quality, quantity, and timing 5. No common vocabulary or language 5. Marketing doesnt solicit appropriate input from Sales when drafting the Marketing plan, defining the opportunity pipeline, or creating the opportunity scoring model 6. Sales keeps Marketing away from customers 7. Sales & Marketing exclude each other from meetings 8. Too much time is spent on dispute resolution or the crisis of the moment 9. Sales and Marketing attend different training programs, events and other learning opportunities
5. 5. Improve Your Probability for Success | www.visionedgemarketing.com | 1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 5 Six Primary Culprits Lack of an integrated marketing and sales prioritization and planning process Poor alignment between the sales process and the customers buying process. No formally defined steps for the selling process. An ineffective process for qualified opportunity dispersion and management Lack of marketing systems, data and reports to continuously modify and adjust marketing spend to meet sales requirements or market dynamics. No formal system for tracking marketings role in customer acquisition, retention and value creation DONT TAKE JUST OUR WORD
6. 6. Improve Your Probability for Success | www.visionedgemarketing.com | 1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 6 The State of Marketing Generated Opportunities Marketing generated opps, 33.2% Non- marketing generated opps, 66.8% Where Do Opportunities Come From? 56% 40% 1% 3% 60% 35% 3% 1% 0% 50% 100% Needs Improvement Meets Expectations Exceeds Expectations DK Lead Quantity Lead Quality Sales Perception of MarketingGenerated Opps Source: CSO Insights, 2012 Marketing Not Meeting Expectations Sales Needs to be a Better Partner
7. 7. Improve Your Probability for Success | www.visionedgemarketing.com | 1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 7 Opportunity Management Challenges 41% 30% 30% 28% 28% 28% 26% 0% 20% 40% 60% Lead quality Marketing data quality/accuracy Lead quantity Conversion/response rate to marketing campaigns is too lov Leads stuck in the funnel Marketing /sales alignment Funnel leakage (qualified opps not getting actioned) OpportunityManagementChallenges Aberdeen, May 2012, n= 163 Quality Matters
8. 8. Improve Your Probability for Success | www.visionedgemarketing.com | 1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 8 70% 69% 67% 50% 45% 39%38% 38% 29% 0% 10% 20% 30% 40% 50% 60% 70% 80% Process to establish/refine opp qual criteria btwn sales & marketing Clearly defined process to transfer opps to sales or return for nurturing Defined, standardrized and documented opp management process BIC Ind Avg Laggards Aberdeen, May2012 n=163 The State of Opportunity Management CSO Insights, 2012 Systems and Processes Yes, 42.6% No, 57.4% Has Your Organization Implemented an
9. 9. Improve Your Probability for Success | www.visionedgemarketing.com | 1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 9 The Best-in-Class Outpace the Pack 70% 69% 67% 50% 45% 39%38% 38% 29% 0% 10% 20% 30% 40% 50% 60% 70% 80% Process to establish/refine opp qual criteria btwn sales & marketing Clearly defined process to transfer opps to sales or return for nurturing Defined, standardrized and documented opp management process Opportunity Process Maturity 66% 59% 59% 42% 25% 25% 36% 28% 27% 0% 10% 20% 30% 40% 50% 60% 70% Ability to define multi-step opp nurturing processes Utlize opportunity scoring to progress lead Process bwtn sales & marketing to define opp scoring criteria BIC Ind Avg Laggards Opportunity Scoring Aberdeen,May 2012,n=163 BIC Partner Define Processes, Criteria Standardize Implement and Use
10. 10. Improve Your Probability for Success | www.visionedgemarketing.com | 1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 10 Traditional Sales Funnel Outdated The traditional sales funnel is 112 years-old! Conversion rates are unsustainable. Takes >1000 opps/sale. Time to convert is lengthening. The average time to create a large B2B tech customer has lengthened by 15% in the last year. Buyers find online search and supplier websites more valuable sources for buying information than F2F. (IDC) The Empowered Buyer is killing the Traditional Sales Funnel todays buyers more sophisticated may know more than sales people. 55% of buyers think sales people are only somewhat or not prepared for initial meetings. MLC 2011 Study found that B2B buyers are 57% of the way thu their purchase process before connecting with sales,("Influencing the Newly Empowered Customer.")
11. 11. Improve Your Probability for Success | www.visionedgemarketing.com | 1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 11 Discard the Funnel Old -Stages defined by the company and means a lot more has to go in at the top than what comes out at the bottom. lots of opportunities drop away at each stage of a long sales process. Old Sales Stages example: Initial Inquiry Initial Communication - BANT Initial Meeting/Needs Assessment Solution Presentation Customer Evaluation RFP Negotiation Verbal Commitment Written Purchase Order/Contract Delivery Payment The sales funnel is a common tool used by the sales organization to understand the flow of business opportunities Need a new approach customer buying process defines the stages.
12. 12. Improve Your Probability for Success | www.visionedgemarketing.com | 1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 12 New Model: Customer Buying Behavior PLUS Fit The term itself, customer buying pipeline, suggests this process is something owned by BOTH sales AND marketing Its all about customer buying signals ENGAGEMENT BEHAVIOR A pipe suggests that different marketing programs may be needed at different stages along the way and that segmentation, targeting, and qualification are extremely important to reducing waste and customer acquisition costs.
13. 13. Improve Your Probability for Success | www.visionedgemarketing.com | 1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 13 Establish the Variables for the Behavioral Side of the Model Contact - Demonstrates some degree of interest, observable hello- share basic contact info. Doesnt mean they are eager to get to know you better. Connect Establish some type of rapport follow, friend, like Conversation - A steady flow of information back and forth comments, demos, f2f meetings Consideration - applying careful thought to your offer and company and weighing their options rfq, rfp, due diligence Consumption Trial, test, order Community Advocate, refer, rebuy Observable Measurable Incremental Behaviors
14. 14. Improve Your Probability for Success | www.visionedgemarketing.com | 1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 14 Define When An Opportunity is a Good Match Size Relationships Need Budget Problem Establish the Value Ranges Add the Fit Side to the Model Creates Fit based Opportunity Scoring
15. 15. Improve Your Probability for Success | www.visionedgemarketing.com | 1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 15 Concept Illustration Fit: Vertical In a target vertical where we have domain expertise 5 pts In a target vertical but we dont have domain expertise 3 pts Not in a target vertical 0 pts Problem Ideally suited to solve their problem 5 pts Our product will solve their problem with some customization 3 ps Our product will not solve their problem without a major investment on our part 0 pts Contact Contact is decision maker 5 pts Contact is influencer/user 3 pts Contact is outside target buying/using group- 0 pts Size/Revenue Budget Behavior: Contact: Completes website registration form 5 pts Follows on Twitter 3 pts Subscribes to company newsletter 3 pts Connection: Attends third party sponsored webinar 3 pts Attends company only webinar 5 pts Downloads white paper 2 pts Conversation: Provides product specification and buying criteria via email 5 pts. Requests and participates live online demo 10 pts Consideration: Requests in person or webex meeting 5 pts Requests and Contacts references 5 pts Purchases paid trial 10 pts
16. 16. Improve Your Probability for Success | www.visionedgemarketing.com | 1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 16 Concept Illustration FIT BEHAVIOR low high high Sales worthy and ready Nurture Minimal Future Effort & Investment Revisit marketing mix
17. 17. Improve Your Probability for Success | www.visionedgemarketing.com | 1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 17 Scoring Model Development Process Step 1: Define the customer buying process and each incremental behavior Step 2: Validate Step 3: Define the Fit Criteria Step 4: Establish Values and Metrics Step 5: Finalize, Document. Configure & Implement Step 6: Monitor, measure and report results and payback
18. 18. Improve Your Probability for Success | www.visionedgemarketing.com | 1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 18 This is a lot of work, why bother? An integrated marketing and sales prioritization and planning process Better alignment between the sales process and the customers buying process. Formally defined approach to the buying and opportunity management process. An effective model and process for qualified opportunity dispersion and management Better marketing systems, data and reports to continuously modify and adjust marketing spend to meet sales requirements A formal approach for tracking marketings role in customer acquisition, retention and value creation
19. 19. Improve Your Probability for Success | www.visionedgemarketing.com | 1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 19 Take the Leap: Create an Opportunity Scoring Model Change can be daunting, but a scoring model is a key to success What Does it Take? Data and collaboration with customers and sales to build the model Start from the outside in, leverage an expert Begin with a blank slate, not your current paradigm Test and learn culture Dont Waste Your Bullets White Paper
20. 20. Improve Your Probability for Success | www.visionedgemarketing.com | 1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 20 Thank you and Resources Please email your questions to Laurap@visionedgemarketing.com Learn More Download Dont Waste Your Bullets white paper Purchase our e-Book Gone Fishin: Marketing and Sales Alignment for Finding, Hooking, Keeping and Growing Customers a concise book that effectively guides you through the process of finding, hooking, keeping, and growing profitable customers by explaining how to define, understand, and cultivate this core relationship. Self-paced workbook, Using the Customer Buying Process to Align Sales and Marketing & Create 3 Key Sales Enablement Tools www.visionedgemarketing.com
21. 21. Improve Your Probability for Success | www.visionedgemarketing.com | 1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 21 Founded in 1999 and headquartered in Austin, TX, VisionEdge Marketing, Inc. serves more than 100 customers, and counting. VisionEdge Marketing, Inc. is a data- driven and metrics-focused marketing firm that specializes in improving marketing performance and creating competitive advantage designed to attract, secure and retain profitable customers. Services Include: Marketing performance management Marketing and sales alignment Product and strategic marketing Pipeline re-engineering Professional development About VisionEdge Marketing Experienced Practitioners