Revenue Roadmap. Sales & Marketing Productivity Assessment Benchmark
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1 Revenue Roadmap Sales & Marketing Productivity Assessment Benchmark
2 Goal: Triple size of the business in three years Obstacles: 1) Correctly Identify & quantify market potential 2) Insufficient lead generation 3) Poor product development & sales enablement process 4) Inefficient & costly sales organizational model 2
3 SALES & MARKETING ASSESSMENT FRAMEWORK Account Segmenta0on Priori0ze Prospect Universe by ICP & Spend Lead Genera0on Generate & Nurture Leads un0l Sales- Ready Sales Process Custom built sales process aligned to the way the customer/prospect buys 1 STEP Develop Sales Strategy Channels Determine op0mal route to market 2 Develop Go- to- Market Plan Sales Force Structure Determine Organiza0onal Model Sales Force Size Match headcount to market poten0al 3 Design Sales Force Compensation & Quota Sales/Talent Management Territory Design Technology 4 Build Infrastructure 3
4 Gap to Best Practice Attribute / Best Practice ACCOUNT SEGMENTATION Defined Ideal Customer Profile Identify & prioritize prospect universe by propensity to buy and potential spend analysis Defined market potential in current & future territories Determine territories, headcount & quotas based on market potential LEAD GENERATION Persona-driven messaging/content that pulls buyers along their purchase decision timeline Defined Lead Management process with dedicated resource to nurture leads until sales-ready Multi-modal demand generation initiatives to drive top-of-funnel activity Integrated sales and marketing funnel (closed loop reporting) through CRM and marketing automation Rating 4
5 Gap to Best Practice Attribute / Best Practice PRODUCT DEVELOPMENT / SALES ENABLEMENT New product roadmap (research and development) documented & implemented Sales and marketing functions is incorporated into the new product launch planning New Product launch plan includes revenue goals, target markets, Persona-specific messaging, pricing guidelines & marketing campaign schedule SALES FORCE STRUCTURE Sales force structured to maximize cost of sales and minimize customer acquisition cost Clear responsibilities exist for all sales roles with no duplication of efforts Sales roles defined and mapped to the way customers want to buy Rating 5
6 Solution Roadmap Initiatives 11/13 12/13 1/14 2/14 3/14 Identify & prioritize market potential in both existing and new territories Develop lead generation capabilities and marketing effectiveness Correct product development process and introduce Sales Enablement best practices Optimize sales org model to drive efficiency & reduce Customer Acquisition Costs 6
7 Account Segmentation Propensity to Buy Factors Industry Geo Access to Decision Maker Volume of Text Messaging 32% 22% 20% 26% 100% Factor Weighting Ideal Customer Profile Formula 7
8 LEAD GENERATION Qualify Leads Step 1 Buyer Persona(s) How do they Buy Who is my Buyer Step 2 Buying Process Map(s) Step 3 Content Creation Generate Leads Messaging that resonates Step 4 Demand Generation Step 5 Lead Management Process Step 6 Nurture the Leads Lead Management Staffing Step 7 Marketing Automation Automate & Expand Reach Building sustainable Lead Generation capabilities is a sequential process. Going out of order or skipping a step derails the process. 8
9 NEW PRODUCT LAUNCH PLAN Product Development Product Management Product Marketing Field Marketing Sales Enablement Keys to Success: 1. Customer research drives new product development 2. Marketing stimulates demand for new product pre/post launch 3. Sales force ready & enabled to sell the new product 9
10 SALES ORG MODEL Brand awareness & asract visitors Convert Leads ROLE: Plan demand generation Plan, Build & Deliver Campaigns Demand Generation Lead Generation Lead Management Manage & Source & Manage Monitor & Generate Assign leads Generate Lead Allocation Lead Develop Manage Website & Report incoming leads into Salesforce Outbound Qualification Content Partner Online Forms Leads Agencies Head of Sales I I C I I I I I A/R I Head of Marketing A/R A/R A/R A/R A/R A/R A/R A/R BDE C I A/R I A/R BDM C I C I Account Manager C I TSM C I Finance CEO C I I C I Products Development TAG TSG C Leverage RACI exercise to optimize sales org model and responsibilities Inefficiencies & Redundancies increase Cost of Sales and inflate Customer Acquisition Costs 10
11 Project Scope 11
12 Project Scope Workstream #1 Account Segmentation Phase 1: Determine Total Available Market Objective: For each customer/prospect, determine the current & potential spend rolling it up to the segment and overall market level. Deliverables: 2014 TAM Phase 2: Prioritizing Market by Segments/Accounts Objective: Develop scoring model to determine which segments/accounts to pursue, balancing opportunity with cost. Deliverable: Account Scoring Model, Prioritized Market Segment Recommendations Project Timeline: 6 Weeks 12
13 Project Scope Workstream #2 Lead Generation Phase 1: Buyer Persona Objective: Produce research-based, modeled representations of who your buyers are, what they are trying to accomplish, what goals drive their behaviors Deliverables: Buyer Persona for Commercial Sector Phase 2: Buying Process Map Objective: Map the decision making process used to purchase a ACME solution Deliverables: Buyer Process Map for Commercial Sector Persona with Buying Phases, Key Buyer Actions and Micro Questions Phase 3: Content Creation Objective: Coach ACME marketing department to produce sufficient content in enough quantity and quality to meet the needs of the sales and marketing departments Deliverables: Content Audit & Gap Analysis, Advise on Content Output & Campaign Themes, Draft Editorial Calendar & Production Schedule Phase 4: Demand Generation Objective: Deploy, launch, measure, and optimize pilot demand generation campaign to stimulate top-of-the-funnel activity and generate Inquiries Deliverables: One (1) multi-modal demand generation and nurture campaigns 13
14 Project Scope Workstream #2 Lead Generation (Continued) Phase 5/6: Lead Management Process & Staffing Objective: Build process to nurture & qualify early stage leads, and create/optimize role to execute process Deliverables: Lead Management Process, Job Aids, Lead Development Role Execution Guide Phase 7: Marketing Automation Objective: Advise on Marketing Automation vendor selection and provide implementation guidance Deliverables: Solution Vendor Recommendations, Marketing Automation Evaluation Matrix, RFP Guidance, Implementation Best Practices Project Timeline: 12 Weeks 14
15 Project Scope Workstream #3 New Product Launch Plan Phase 1: Product Roadmap Objective: Incorporate sales and marketing functions in new product launch planning Deliverables: New product launch process (research and development) Phase 2: Sales Enablement Objective: Integrate sales function in the new product launch process Deliverable: Sales Enablement Checklist (revenue goals, target markets, Personaspecific messaging, pricing guidelines & marketing campaign schedule) Project Timeline: 6 Weeks 15
16 Project Scope Workstream #4 Sales Structure Optimization Phase 1: Design Objective: Structure the sales force to maximize efficiency and reduce Customer Acquisition Cost Deliverables: Sales Org Structure & Headcount Recommendation Phase 2: Rollout Objective: Implement sales org model changes Deliverable: Restructuring Transition Plan Project Timeline: 6 Weeks 16
17 ROI Analysis 17
18 Business Case Lead Generation ROI Calculator Input Year 1 Year 2 Year 3 Fixed ROI Costs SBI 61, Technology 18, Programs 100, , ,000 Total Costs 179, , ,000 Inputs Expected Increase in Lead Quantity Expected Increase in Close Rate Expected Increase in Average Deal 20% 40% 2% 5% 2% 5% Metrics # of Leads Close Rate 15% 17% 22% Expected Deals Average Deal Size 2,700 2,750 2,890 Revenue 405, ,000 1,069,300 Total Retrun 405, ,000 1,069,300 18
19 Business Case Sales Org Changes ROI Calculator Input Current State Year 1 Year 2 Year 3 Fixed ROI Total Costs 805,000 1,020,000 1,290,000 1,640,000 Total Revenue 2,296,000 3,033,000 4,755,000 6,346,250 Current State BDE BDM/AM (Tenured Rep) BMD/AM (New Rep) Year 1 BDE BDM/AM (Tenured Rep) BMD/AM (New Rep) Talent Management Salary Costs # of Heads Labor Revenue Ave Quota Ave Quota Achievement Revenue 35, , % 0 90, , ,000 80% 2,296, % 0 Total Cost 805,000 Total Revenue 2,296,000 ROI 2.85 Costs Salary # of Heads Labor Revenue Ave Quota Ave Quota Achievement Revenue 35, , % 0 90, , ,000 90% 2,583,000 90, , ,000 75% 450,000 50,000 Total Revenue 3,033,000 ROI 2.97 Total Cost 1,020,000 Year 2 BDE BDM/AM (Tenured Rep) BMD/AM (New Rep) Year 3 BDE BDM/AM (Tenured Rep) BMD/AM (New Rep) Salary Costs # of Heads Labor Revenue Ave Quota Ave Quota Achievement Revenue 35, , % 0 95, , ,000 95% 4,275,000 90, , ,000 80% 480,000 Total Cost 1,290,000 Total Revenue 4,755,000 ROI 3.69 Salary Costs # of Heads Labor Revenue Ave Quota Ave Quota Achievement Revenue 35, , % 0 100, ,300, ,000 95% 5,866,250 90, , ,000 80% 480,000 Total Cost 1,640,000 Total Revenue 6,346,250 ROI
20 Sample Deliverables 21
21 Persona & Buying Process Map"
22 Content Audit
23 Lead Management Process
24 New Product Launch Plan
25 Quantify Market Potential Vertical/Tier opportunities are revealed What is it? A way for ACME to calculate the remaining potential spend by current customer(s) and current customer segment(s). Creates a means for AEs to predict possible Suspect spend Value Created? Efforts can be focused on high potential customers for cross/ up sells, high potential segments for greater AE involvement and away from low potential segments/ customers
26 Marketing Automation Implementation
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