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“The Sales Performance & Productivity Summit II”
Track 114:00 – 14:45
Sales and marketing alignment 2.0 – Results fromthe 2013 worldwide study and insights to gain
more business growth
Francois Delvaux, Partner Minds&More
SMS 0495/582.221 with your question +
name
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#9octsalessummit
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Sales & Marketing Alignment 2.0
Study done by
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Sales & Marketing Alignment 2.0
500 Companies
20 Countries
Average revenues each of 200 Million $
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Before we start, common definitions …
Closure
• MQL = Marketing Qualified Lead
• MQL closure = probability of converting a marketing qualified lead deal to a sale
• SQL = Sales Qualified Lead
• SQL closure = probability of closing an SQL
• Proposal closure = how likely a proposal is to be accepted
Acceptance
• MQL acceptance = how likely Sales is to accept leads generated by Marketing (also called sales accepted lead)
Outcomes
• Contribution = how much of the revenue came from Marketing’s leads
• Retention = how well you keep customers
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Three Key Numbers
56
108
209
% higher probability that marketing-generated leads will close
% 108% better lead acceptance by sales (MQL to SQL rates)
% 209% stronger contribution to revenue from marketing-generated leads as a result
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Counter intuitive steps…
Teach your sales
people to ‘open’
and your
marketers to
‘close’ !!
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Planning to get new revenues
Who Drives
Planning
Process?
Impact of each
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Planning new revenues - Finance
Who Drives
Planning
Process?
Impact of each
+38% new revenues 3 X more Churn
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Planning new revenues - Marketing
Who Drives
Planning
Process?
Impact of each
55% lift in acceptance
of MQLs
56% drop in churn
Deal sizes drop by
47%
Closure capability
drops 16%
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Planning new revenues - Sales
Who Drives
Planning
Process?
Impact of each
Good at keeping
customers
Closure rates are
31% worse than
when Finance is in
control
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Planning new revenues - Production
Who Drives
Planning
Process?
Impact of each
Retention is at its best
with churn no less than
72% lower than when
Finance in charge
Sales closure rates
drops by 42%
leads drops by 34%
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Planning new revenues - Operations
Who Drives
Planning
Process?
Impact of each
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Joint Planning – Better Results
Joint planning delivers:
• 56% better leads
• 31% better
acceptance
• 62% more
revenue from
Marketing
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Timing
Planning needs to be done
quickly (less than a month)
and reviewed
• 209% increased
contribution from
Marketing
• 13% less churn
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Process…
A single, end to end
process delivered:
• 51% less churn
• 108% better lead
acceptance
• 126% higher
contribution to
revenue from
Marketing
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Training
Teach your sales people
to open and your
marketers to close
Training delivers
benefits, but not where
you’d expect
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Training - Marketing
• Over 3 days of training every year
• Produce leads with a 24% probability that those leads will close (once
marked as a ‘Marketing Qualified Lead’ or ‘MQL’)
• The probability of marketing leads closing increases markedly with additional
marketing training, peaking at between 8 and 10 days of training
• Those marketers return the training investment by producing MQLs with an
impressive 39% probability of closing
•That’s a 56% improvement.
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Training - Sales
• On average 4 days of training every year
• MQL acceptance rates improve steadily, peaking at 50% for businesses who invest 8 days or more each year in their sales people
• Churn rates also reduce with more training
• However, increasing how much you train your sales people won’t improve their ability to close…
?!?!
1. Feast and famine quarterly behaviour
2. Teaches sales people to tell lies in your CRM
3. Risk of closing questions / pushiness
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Training - Both
•Train your Marketers how to create leads with a high closure rate
•Train your Sales people to accept and act on Marketing’s leads quickly
•Train both to generate new business.
Helps get new
business 29%
improvement for
Sales
and 26% for
Marketing
as the training
investment shifts
from 2 days to 10
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Automation
33%
153%
No automation
Marketing leads
more confident
less revenue !!
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Renaming Funnel Stages
MQLs with a
46% higher
closure rate
SQLs are
16% more
likely to
close+ further 28% lift on
MQL closure rates
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Recap
1. Negotiate alignment to be a top priority for your leaders from
each of Sales and Marketing. Rehire if you have to
2. Planning jointly, quickly and often lifts the performance of the
‘engine’
3. Design a single end to end process for Marketing and Sales and
centre it around the Buyer’s Journey, not the seller’s – everything
from “hello” to “thank you”.
4. Identify key measures to track and communicate widely. Include
output measures (MQL acceptance, win rates from MQL, SQL
and Proposal, time taken between buyer stages, and leakage –
% of opportunities that don’t progress from each stage
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Recap
4. Sweat your sales people on opening ratios (combination of lead
acceptance and their own need-creation) and your marketers on
closing ratios.
5. Automate buyer progression, not emails. Great marketing
automation requires smart segmentation of buyers, reading buyer
signals, and acting on those signals. Doing automatically, at
scale, what a smart marketer would do if they had time.
6. Train for gaps: find out which measures indicate the greatest
potential upside, and direct your training at those gaps. Train
marketers to create campaigns that close, and sales people to
create opportunities.
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MINDS&MORE cvbaPark Hill OfficeJan Emiel Mommaertslaan 16b1831 Diegem
www.mindsandmore.biz Tel: +32 (02) 704 49 40
Pieterjan KempynckMobile: 32 (0)477 700 541Email: [email protected]
Francois Delvaux, PartnerMobile: +32 (0)495 242 986Email: [email protected]
Benny Van Calster, PartnerMobile: 32 (0)475 633 483Email: [email protected]
Myriam Vangenechten, PartnerMobile: +32(0)477 508 640Email: [email protected]
Pascale Hall, PartnerMobile: + 32 (0) 472 445 983Email: [email protected]
