best practice in sales and marketing alignment

Best Practices in B2B: Sales and Marketing Alignment

John Neeson

Co-Founder/Managing Director

© Copyright SiriusDecisions.

All Rights Protected and Reserved.

Five Things Will Occur By 2015

1. The sales cycle will shift, increasing marketing’s importance in the early stages of the buying cycle

2. Demand creation will be measured in three ways – inbound, outbound and sales driven

3. Sales enablement move from tactical programmes to a strategic initiative

4. Marketing’s success will become increasingly technology driven

5. “Buyers journey” marketing will result in greater investment in customer experience

2



Trends

• Online Marketing: Today 58% of all leads come from the web increasing to

71% by 2015.

• Performance: Organizations leveraging the web who market to the buyers

journey, have strong sales alignment and effectively use marketing automation

create twice as much pipeline as those who do not.

• Technology: B-to-B companies doubled their investment in marketing

technology in the last five years with 70% saying they will increase further in

the next five.

• Skills: Less than 25% of organizations utilize marketing technology to its

fullest.

• Enablement: The greatest barrier for a sales person not achieving quota (52%

of the time) is from the inability to demonstrate value or lack of customer

knowledge.

• The Sales Cycle: More prospect interaction is now occurring online shortening

the actual time for sales engagement. The need for a digital relationship has

never been higher.

3



Trend: Most Used Research Techniques

SiriusPerspective: Decision makers rely on Internet search and their teams and colleagues when completing research. .

25% 23% 24%

22% 22% 21%

20% 22% 21%

12% 11% 10%

22% 21% 24%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CXO VP Director

Ask my team or colleagues for options

Access a social media community

Call an industry analyst

Call an industry peer

Search on the Internet

4



Trend: Later Interaction With Sales

SiriusPerspective: Engaging with sales is happening later in the buying cycle, after decision makers know they are going to make a decision. .

14%

26% 22%

26% 11%

25%

23% 32%

25%

5%

8% 3% 13%

5% 5%

15% 18%

16%

1% 3% 6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CXO VP Director

I never engage with a vendor sales person

Other (specify)

Only after I know I am going to make a decision

After consuming a substantial amount of the firm's marketing

After an industry analyst suggests

I engage to keep up with the industry

When I am curious on the company/product

After my team sells me on reason to change

5



ROI Definitions

SiriusPerspective: The meaning of ROI varies by job title and role; first identify your target, then align with their definition.

40% 42%

33%

16% 13%

8%

28% 32%

33%

7% 5%

11%

1%

5%

8% 8% 10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CXO VP Director

Other (specify)

Ease of use

Solution we can agree on

Competitive impact

Time saved

Money saved

6



Trend: CXO Interactions With Marketing

SiriusPerspective: By the time the sales person engages with the CXO, a dialogue has begun digitally and opinions have begun to be formed.

Losing the

Status Quo

Committing to

Change

Exploring

Possible

Solutions

Committing

To a

Solution

ROI for

Decision

Vendor

Selection

Online Relationship

Sales Process

• Search The Internet

• Access Peers

• Internal Project

Discussions

• Find Content

• Assign Team

• Engage Sales Person

• Case Study

• Peer Engagement

• Committee Engagement

• ROI Content

• Save Money

• Save Time

• Competitive

Engage Influence Enable CXO Actions

7



Marketing Around The Journey

SiriusPerspective: Today’s marketing ecosystem centers on the buyer’s journey, where marketing disciplines must effectively work together.

8

Education

Buyer

Journey

Outbound

Demand

Inbound

Demand

Sales

Enablement Sales

Demand

• Account-Based Marketing

• Pipeline Acceleration

• Opt-In Programs

• SEO/SEM

• WCO

• Social Media

• Sales Playbook Content

• Sales Tools

• Channel Enablement

• Case Studies/Reference

• Lead Generation Programs

• Reconstitute Programs

• Recycle Programs

• Channel Demand

Customer Marketing

Content

Strategic Communications



Best Practice Attributes

Sales Pipeline Sales Alignment

Program Mix Integrated

• 30% + Sourced*

• 70% + Influenced*

• Not a Leads Only Focus

• Flexible Programs

• Strong SLA’s

• Targeted and Sales

Stage Based

• Multi-channel

• Web Centric

• Nurturing Model

• Best Practice Syndication

• Based on Buyer Journey

• Multi-Touch Programs

• Data Centric

• Web Focused

SiriusPerspective: While there are many differences between average and high performing companies, four characteristics are consistent.

* Varies by organizational size and target markets 9



Task Families Surrounding the B-to-B Waterfall

SiriusPerspective: To drive best-in-class performance, sales and marketing must align around five waterfall-based jobs.

10

The use of traditional and

social media to set the

stage for demand creation

SEED

The generation of “original”

demand, with a focus on

quality vs. quantity

CREATE

Efforts geared to help sales

move deals more quickly

through the pipeline

ACCELERATE

Helping reps increase their

productivity, both for sales-

and marketing-sourced

demand

ENABLE

Care and feeding of

prospects that aren’t ready

for sales, or that have fallen

out of the waterfall

NURTURE



Average vs. Best – in - Class

SiriusPerspective: High performing companies market to all areas of the waterfall to impact performance.

11

Waterfall Conversion Rates

Inquiries

4.1%

Marketing Qualified

Leads (MQLs)

Sales Accepted

Leads

Sales Qualified

Leads (SQLs)

Closed/Won

Business

5.8% 9.7%

Average Strong Best-in-

Class

62% 65.6% 74.5%

47.5% 56.4% 60.5%

22.1% 26.9% 30.7%

What do high performing

companies do differently?

SEED

CREATE

NURTURE

ENABLE

ACCELERATE

Getting to Alignment



What is Alignment?

SiriusPerspective: There are four key areas of alignment between marketing and sales.

Key Issue: How do your customer’s buy?

Buyers Journey Activity Alignment

Deliverable: Buyers journey model sales and

marketing will use as a common denominator for

strategy, process and activity alignment.

Key Issue: What are the sales and marketing

activities along the buyers journey?

Campaign Structure

Key Issue: What is language, structure, and

visual descriptions you will use to describe

marketing and sales efforts?

Deliverable: One view on campaign

nomenclature, lead definition and SLA’s between

sales and marketing.

Deliverable: Identification of marketing programs, sales

requirements / process, and role clarification at each stage of

the buyers journey.

Planning / Measurement

Key Issue: How will the planning and

measurement process change as a result of

buyers journey?

Deliverable: Waterfall model of closed loop

measurement. Integrated marketing planning

model.



Aligning Marketing Programs

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Qualification

Propose

Solution

Validation

Suspect

Solution

Identification

Committing

to Change

Exploring

Possible

Solutions

Justifying

the

Decision

Committing

to a Solution

Product Launch Promos/Offers Events/Webinars Account Based Marketing

CREATE

Website/SEO/SEM Self-Guided Demos Analyst Reports Lead Nurturing Programs

NURTURE

Presentations In-Person Demos Competitive Tools Customer References

ENABLE

Trials/Proof of Concept ROI Tools Exec Briefings Pipeline Acceleration Programs

ACCELERATE

Suspect

Loosening

of the

Status Quo

Advertising Thought Leadership Global Campaigns

SEED

Tactics and Programs

Making the

Selection Close

Customer Newsletters Online Communities Value Review Relationship Marketing

RETAIN



Service Level Agreements: The Ties That Bind

SiriusPerspective: Two sets of core SLAs must be created, and adjusted over time based on data.

15

Teleprospecting Demand Center/

Field Marketing Field/Channel

Sales

Lead acceptance

Timeframe

Bypass/exceptions

Disposition

Special program alignment

Lead acceptance

Timeframe

Disposition

Rep alignment

Program alignment



Demand Type and Lead Level

SiriusPerspective: : Demand type also will provide significant guidance in terms of the “type” of lead you are looking for.

16

New Concept

New Paradigm

Established

Market



Teleprospecting

Sales

Demand Generation: Critical Process

SiriusPerspective: Best practice lead delivery requires common process, definitions, rules and timeframes.

17

Marketing

Accept

Source

Qualify

Deliver

Target agreement

Programs/tactics

Lead definition

Scoring

Nurture

Disposition rules

Volume rules

Notification

Accept/

Reject

Timeframe

Accept/reject rules

Notification

Qualify

Deliver Disposition rules

Volume rules

Notification

MQL definition

Engagement rules

DQ rules

Reject

Disqualify

Accept/

Reject

Qualify

Pipeline

Reject

Disqualify

Timeframe

Accept/reject rules

Notification

CRM adoption

Engagement rules

DQ rules

CRM adoption

DQ rules

Timeframes

Accept



Understand Message Needs for Different Tactics

• Inbound (Indirect) Tactics:

– Traditional advertising/branding

– Public relations

– Analyst relations

– Search engine optimization

– Search keyword sponsorship

– Association marketing

– Celebrity sponsorship

– Cause marketing

– Content syndication

– Banner/online advertising

– Social media (e.g. blogs, microblogs, communities)

– Trade shows (virtual, traditional)

18

• Outbound (Direct) Tactics

– Email

– Newsletters

– Internal/third-party teleprospecting

– Direct mail

• Offers (Examples)

– White papers

– Trials/demos

– Live Events/seminars/roadshows

– User conferences

– Online events: webcasts/webinars

– Financial incentives

Source: SiriusDecisions



Create awareness

around a new problem

Align problem with

business issues; drive

urgency

Help buyer

identify needs in solving

the problem

Align solution

with specific sets of

business needs

Demonstrate core features

and functionality

Validate/ reinforce choice

Integrated Campaign Framework

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Loosening of the

status quo

Committing to change

Exploring possible solutions

Committing to a solution

Justifying the decision

Making the selection

Education Solution Vendor Selection

BUYING CYCLE

TOUCHES

NEW CONCEPT NEW PARADIGM

ESTABLISHED MARKET

Education

Education

Solution

T1 T2 T3

Solution

Solution

Selection

T1 T2 T3

Selection

Selection

Selection

T1 T2 T3

MESSAGING

Reputation Demand Creation Sales Enablement

White Paper Webinar Case Study White Paper Event Webinar Analyst Report Case Study Peer Interaction



Technology Integration

Web site

Web analytics

Web content

Management Marketing

Automation

Platform Contact

management

CRM

SFA

Behavior &

performanc

e analysis Lead

delivery

Contact

information

Pipeline

metrics

Marketing Database

Campaign Mgmnt

Lead Mgmnt

Advanced Features

Business Intelligence



Summary

• Effective alignment begins with a consistent language,

SLA’s and a measurement system.

• High performing organizations uniquely generate over

30% of the sales pipeline and influence over 70%.

• The integrated campaign model is all about the

customer / prospect journey not a single marketing

tactic.

• The marketing mix is evolving to be more digital with

tight integration with inbound activity.

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best practice in sales and marketing alignment

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