build a better service-level agreement

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Build a Better Service-Level Agreement

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Build a Better Service-Level Agreement

Jay GainesGroup Director, Demand


Executive Summary

• Key issues

– Alignment between sales and marketing in the end-to-end b-to-b

demand creation process is a challenge for every organization

– Without proper alignment, even the best-planned and best-executed

demand creation programs will underperform

– Many companies have service-level agreements (SLAs) in place,

but few are properly structured and fewer are adhered to

• What you will walk away with

– An understanding of why SLAs are required for demand creation

– A checklist of elements that drive five critical SLA types

– Best practices for creating and enforcing highly effective SLAs

4

The Usual B-to-B Scenario

The well-trod path to dysfunction and despair



6

Sales wants all “leads” fast 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



7

Inquiries

Marketing Qualified Leads

Sales Qualified Leads

Close

SiriusPerspective: Weak alignment at the top of the waterfall results in poor performance in the middle and bottom.

417 inquiries to close 1 deal


Sales AcceptanceSales Acceptance

Marketing and Tele QualificationMarketing and Tele Qualification

InquiryInquiry

80%No nurture/qualification

100%Sales accepts

everything/nothing

3% - ??Inefficient use of sales resources

SQL10% - ??

Poor pipeline dynamics

Sales QualificationSales Qualification

CloseClose


Marketing QualificationMarketing Qualification

InquiryInquiry

OutboundOutboundInboundInbound

Teleprospecting Qualified Leads (TQLs)


Teleprospecting Accepted Leads (TALs)Teleprospecting Accepted Leads (TALs)

Sales Generated Leads (SGLs)


Sales AcceptedLeads (SALs)


Automation Qualified Leads (AQLs)Automation Qualified Leads (AQLs)

Teleprospecting Generated Leads (TGLs)


Sales Qualified Leads (SQLs) Sales Qualified Leads (SQLs)

Won BusinessWon Business


The Best-in-Class B-to-B Scenario

8

Inquiries

Marketing Qualified Leads

Sales Accepted Leads

SiriusPerspective: Strong process and alignment at the top of the waterfall creates strong efficiencies in the middle and bottom.



Sales AcceptanceSales Acceptance

Marketing and Tele QualificationMarketing and Tele Qualification

InquiryInquiry

9.3%No nurture/qualification

85%Sales accepts

everything/nothing

62%Inefficient use of sales resources

SQL29% - ??

Poor pipeline dynamics


SLAs Defined

Five variations on a powerful process element


SLAs and the New Demand Waterfall

SiriusPerspective: There are five key sets of SLAs that drive efficiency and consistency in the end-to-end demand creation process.

10

Five Sets of SLAsFive Sets of SLAs

Marketing to TeleMarketing to Tele11

Marketing to SalesMarketing to Sales22

Tele to SalesTele to Sales33

Sales to Tele or Marketing

Sales to Tele or Marketing55

Tele to MarketingTele to Marketing44

InquiryInquiry















CloseClose

Won BusinessWon Business


SLA One: Marketing to Teleprospecting

SiriusPerspective: Define an automation qualified lead (AQL) qualification threshold that maximizes tele efficiency and productivity.

• AQL definition– Qualification threshold and

characteristics

• Responsibilities/timeframes– Lead delivery timeframes and volume

– How leads will be delivered (e.g.

technology, flagging)

– Timeframes for tele accept/reject, and

attempt contact (4 hours)

– Form, number and timeframe for tele

outreach (5-7 attempts over 2 weeks)

11


InquiryInquiry




SLA ComponentsSLA Components11


SLA Two: Marketing to Sales

SiriusPerspective: Sales and marketing should agree on scenarios when leads bypass teleprospecting and are sent directly to sales.

• Route-around rules– Named or strategic

accounts

– Request to speak with rep

– Extraordinarily high score

• How leads will be delivered

• Timeframe for sales to accept/reject (1-2 days)

12



InquiryInquiry







SLA Three: Teleprospecting to Sales

SiriusPerspective: Leads delivered by teleprospecting to sales should be fully qualified and sales ready.

• TQL/TGL definition

• Responsibilities/timeframes

– Timeframes and volume for

MQL delivery

– How leads will be delivered

– Timeframes for sales/channel

to act, promote or disqualify

13













SLA Four: Teleprospecting to Marketing

SiriusPerspective: Leads rejected or disqualified by teleprospecting should be routed back to marketing for further qualification.

• Lead rejection reasons• Lead disqualification

reasons• How leads will be

delivered• Marketing responsibilities

and programs• Timeframe for lead

pullback (2-4 weeks)

14










SLA Five: Sales to Teleprospecting/Marketing

SiriusPerspective: Leads that stagnate should return to teleprospecting; those that are rejected or disqualified should return to marketing.

• Sales to marketing– Lead rejection reasons– Lead disqualification

reasons– How leads will be delivered– Marketing responsibilities

and programs

15

• Sales to teleprospecting– Timeframes for lead pullback – Timeframe and number of

attempts (4 to 6 over 2 weeks)
















SLA Best Practices

SiriusPerspective: Brevity and minimal complexity are requirements for SLAs that are actually followed.

• Focus– Keep SLAs clear and brief (minimize nuances and exceptions)

• Evolve– Adjust based on performance metrics, data and feedback

• Enforce– Those bound by SLAs must be held responsible for following them– Visibility into key performance metrics for each function– Agreement between leaders on how lack of adherence will be addressed

• Own– Marketing and sales operations usually own maintenance– Marketing and sales leaders sign and communicate contents

16

Build a Better SLA

A proven approach from our work with b-to-b organizations


Process Overview

SiriusPerspective: Strong SLAs are best introduced in pilot form and should be defined in a collaborative workshop environment.

18

Assemble your team

• A cross-functional team is a requirement for success

• Select collaborative and influential participants

Assemble your team

• A cross-functional team is a requirement for success

• Select collaborative and influential participants

Assemble the teamAssemble the team

Host your day

• A full-day workshop is the ideal format for defining and agreeing on SLAs

• Use a strong moderator

Host your day

• A full-day workshop is the ideal format for defining and agreeing on SLAs

• Use a strong moderator

Host your dayHost your day

Define components

• Not all components are relevant for every situation

• Be sure SLA components match your process

Define components

• Not all components are relevant for every situation

• Be sure SLA components match your process

Define componentsDefine components

Prepare

• Confirm internal support

• Gather relevant information

• Select one audience segment/offering pairing

Prepare

• Confirm internal support

• Gather relevant information

• Select one audience segment/offering pairing

PreparePrepare


Prepare

SiriusPerspective: Preparation is the key to good decision making, but don’t get bogged down in research.

• Obtain support from executive sponsors

• Define the market segment/offering pairing that will be the focus of the

workshop

• Analyze past wins to identify commonalities in terms of demographics,

firmagraphics, vertical, sub-vertical, lead source and buyer characteristics

• Review any existing SLAs between sales and marketing that support the

demand creation process

• Consider systems currently in place that support demand creation (e.g.

marketing automation, SFA)

19


Assemble Your Team

SiriusPerspective: SLAs must be defined and agreed upon by a cross-functional team.

Marketing and Sales Operations •Responsible for ensuring proper systems are in place to fulfill processes defined in SLA

Teleprospecting•Leader and at least one rep to define key responsibilities and timeframes for the function

Field Marketing/Demand Center •To define and agree on responsibilities and timeframes marketing will be obligated to meet

Sales•The most senior sales executive possible, as well as at least one first-line manager and sales

rep to define and agree to responsibilities and timeframes for sales

Channel Management•A channel manager to represent the needs and define the obligations of partners, if

applicable

20


Host Your Day

SiriusPerspective: With the right preparation and the right team, SLAs can be created in a single day.

Sample Agenda:

Workshop Overview, Goals and

Service-Level Agreement

Framework

Foundation Elements of

Effective Demand Creation

Lead Taxonomy and

Components

– Exercise: Lead Definition:

Marketing to Tele and Tele

to Sales

21

Nurture Frameworks and Lead

Management Rules

– Exercise: Rules and

Timeframes

Service-Level Agreements: Next

Steps

– Agreement on ownership of

SLA management,

measurement, reporting and

governance

– Identify individual(s) responsible

for writing SLA documents

– Conclusion

SLA Governance

Making sure what has been built is followed


SLA Governance

SiriusPerspective: Lack of adherence to SLAs is often a symptom of SLA issues, rather than apathy or laziness.

23

Assign SLA executive sponsors

Assign SLA executive sponsors

Conduct mandatory training, and add to sales onboarding

Conduct mandatory training, and add to sales onboarding

Assign maintenance ownership

• Who will monitor and report performance?

Assign maintenance ownership

• Who will monitor and report performance?

Define escalation procedures

Define escalation procedures

Communication/ retraining process and ownership

• When SLAs change

Communication/ retraining process and ownership

• When SLAs changeQuarterly reviewsQuarterly reviews


Key SLA Metrics

SiriusPerspective: Visibility into key SLA metrics will ensure adherence, learning and rapid improvement.

24

Function Key Metrics

All Waterfall conversion rates

Marketing Lead volume/quality adherence

Tele• Accept/reject/disqualify/promote timeframes• Disqualify reasons (adherence and lead quality)

Sales

• Accept/reject/disqualify/promote timeframes• Disqualify reasons (adherence)• Pullback rate

Thank You!


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