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SOLVING FOR ‘X’:<br />Pursuit of the Perfect Pipeline<br />Joe Galvin, Vice President and Service Director<br />Sales Opti...
Executive Summary<br />Key issues<br />A focus away from pure demand creation and toward sales execution is needed<br />Wi...
Agenda<br />SiriusDecisions<br />Brief Introduction<br />Pipeline Dynamics<br />The Concept of the “Perfect Pipeline”<br /...
Effective decision making today requires…<br />Demand Creation Process<br />Sales and Marketing Integration<br />New Ideas...
SiriusDecisions Offering Architecture<br />5<br />
Advisory Services<br />Executive Edge<br />CMO<br />Demand Creation<br />Strategies<br />Program Deliverables<br />Reputat...
Analyst inquiry
Monthly research briefs
Core Strategy Reports
Executive peer roundtables
Monthly research webcasts
Annual assessment
Research portal access</li></ul>Advisory Services<br />Sales Optimization<br />Strategies<br />ChannelManagement<br />Stra...
Sales Optimization Strategies: 2010<br />Research Topics<br />Sales Strategy and Structures<br />Sales Coverage Models<br ...
iCentera
Sant/Kadient
SAVO Group
ZoomInfo
Cloud9
ValueVision
Infomentis
Corporate Visions
InsideView
Xactly
Callidus
Alinean
Genius
Brainshark
Benchmark
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Pursuit of the Perfect Pipeline

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  1. 1. SOLVING FOR ‘X’:<br />Pursuit of the Perfect Pipeline<br />Joe Galvin, Vice President and Service Director<br />Sales Optimization Strategies <br />December 7, 2010<br />
  2. 2. Executive Summary<br />Key issues<br />A focus away from pure demand creation and toward sales execution is needed<br />Without the right data, diagnosing sales enablement gaps is guesswork<br />The art of the possible has been replaced with the science of the possible – we need to change<br />What you will walk away with<br />Results from SiriusDecisions/Cloud9 groundbreaking study on linking pipeline analysis with sales productivity<br />Ideas, tactics and action items you can use to better enable sales productivity in your organization<br />New ways to measure sales productivity <br />Source: SiriusDecisions<br />2<br />
  3. 3. Agenda<br />SiriusDecisions<br />Brief Introduction<br />Pipeline Dynamics<br />The Concept of the “Perfect Pipeline”<br />Pipeline Survey Data<br />When Less is More<br />Measuring Sales Productivity<br />Using Pipeline Analytics to Target and Measure Sales Enablement Initiatives <br />3<br />Joe Galvin<br />VP & Service Director <br />SiriusDecisions, Inc. <br />Tel: (203) 665-4018<br />Twitter: @JoeGalvin<br />
  4. 4. Effective decision making today requires…<br />Demand Creation Process<br />Sales and Marketing Integration<br />New Ideas<br />New Trends<br />Budget Comparison<br />Inside Sales Structure<br />Marketing Performance<br />Sales Optimization<br />Sales Training<br />Channel Management<br />Channel Marketing<br />Organization Structure<br />Reputation Building<br />Measurement<br />Market Requirements<br />
  5. 5. SiriusDecisions Offering Architecture<br />5<br />
  6. 6. Advisory Services<br />Executive Edge<br />CMO<br />Demand Creation<br />Strategies<br />Program Deliverables<br />Reputation Management<br />Strategies<br />Interfaces Receive:<br /><ul><li>Access to benchmark data
  7. 7. Analyst inquiry
  8. 8. Monthly research briefs
  9. 9. Core Strategy Reports
  10. 10. Executive peer roundtables
  11. 11. Monthly research webcasts
  12. 12. Annual assessment
  13. 13. Research portal access</li></ul>Advisory Services<br />Sales Optimization<br />Strategies<br />ChannelManagement<br />Strategies<br />MarketingOperations<br />Strategies<br />Product Marketing <br />/Management <br />Strategies<br />6<br />
  14. 14. Sales Optimization Strategies: 2010<br />Research Topics<br />Sales Strategy and Structures<br />Sales Coverage Models<br />Inside Sales<br />Resource Allocation/Cost<br />Sales Management<br />Sales Operations<br />Planning and Analytics<br />Quota Allocation<br />Sales Compensation<br />Territory Management<br />Sales Metrics<br />Sales Productivity<br />Pipelines/Forecast<br />Expense/Revenue<br />Sales Cycle/Deal size<br />Sales and Marketing Alignment<br />Lead Management<br />Sales Readiness<br />Sales Communications<br />Sales Technology<br />Sales Force Automation<br />Productivity Applications<br />CRM Vendors<br />Deployment/Adoption<br />Sales Benchmarks<br />Sales Operations<br />Cost of Sales<br />Inside Sales<br />Sales Training<br />Sales Skills/Process<br />Opportunity Management<br />Sales Methodology Vendors<br />Sales Competency Model<br />Sales Enablement<br />Knowledge Management<br />Measuring Enablement<br />Collaboration<br />Customer Communications<br />Readiness Applications<br /><ul><li>Vendor Profiles
  15. 15. iCentera
  16. 16. Sant/Kadient
  17. 17. SAVO Group
  18. 18. ZoomInfo
  19. 19. Cloud9
  20. 20. ValueVision
  21. 21. Infomentis
  22. 22. Corporate Visions
  23. 23. InsideView
  24. 24. Xactly
  25. 25. Callidus
  26. 26. Alinean
  27. 27. Genius
  28. 28. Brainshark
  29. 29. Benchmark
  30. 30. Sales Operations Audit
  31. 31. Sales Pipeline Benchmark</li></li></ul><li>Location: The Fairmont Scottsdale Princess in Scottsdale, Arizona<br />Date: May 4-6, 2011<br />6th Annual Summit<br />575-675 B-to-B Sales and Marketing Professionals<br />For more information and to register please visit www.siriusdecisions.com or call Rebecca Barber at (203) 665-4003<br />Save the Date!<br />8<br />
  32. 32. Agenda<br />SiriusDecisions<br />Brief Introduction<br />Pipeline Dynamics<br />The Concept of the “Perfect Pipeline”<br />Pipeline Survey Data<br />When Less is More<br />Measuring Sales Productivity<br />Using Pipeline Analytics to Target and Measure Sales Enablement Initiatives <br />9<br />Joe Galvin<br />VP & Service Director <br />SiriusDecisions, Inc. <br />Tel: (203) 665-4018<br />Twitter: @JoeGalvin<br />
  33. 33. SiriusPerspective: A popular strategy for selling in the down economy was to increase the pipeline revenue value to goal ratio <br />Suspect<br />Qualified<br />Solution<br />Close<br />Negotiate<br />10%<br />25%<br />50%<br />99%<br />75%<br />Selling in Down Economy: The Great Recession<br />Forecast<br />Pipeline: Quota<br />3:1, 4:1 5:1 or N:1?<br />$1.273<br />$987<br />$632<br />$256<br />$125<br />Pipeline<br />Source: SiriusDecisions<br />SiriusDecisions Research Brief: “Pipeline to Quota: Is Three-to-One Done?”<br />10<br />10<br />
  34. 34. SiriusPerspective: The disconnect between sales and marketing is exacerbated by their very different measurement approaches.<br />Spct<br />Qlfy<br />Prop<br />Sol<br />Demo<br />Selling Cycle<br />10%<br />20%<br />33%<br />75%<br />50%<br />Sales and Marketing Disconnect: Pipelines and Waterfalls<br />Inquiries<br />Sales<br />Marketing Contribution? Original Demand Gen?<br />Quality of Pipeline?<br />Where to Help?<br />MQL<br />SAL<br />SQL<br />Marketing<br />Contribution to Pipeline?<br />Revenue Contribution?<br />Targeting Enablement?<br />Pipeline Acceleration?<br />Closed<br />Source: SiriusDecisions<br />SiriusDecisions Research Brief: “The Facets of Forecast Management”<br />11<br />
  35. 35. SiriusPerspective: To drive collaboration, sales and marketing need a common, integrated view of opportunities and their attributes.<br />Spct<br />Qlfy<br />Prop<br />Sol<br />Demo<br />Selling Cycle<br />10%<br />20%<br />33%<br />75%<br />50%<br />Opportunity Lifecycle Management<br />Demand Creation<br />Integrated Pipeline<br />Inquiries<br />Qualified Opportunity (SQL)<br />Sales<br />Productive Prospecting<br />Targeted Marketing Enablement Alignment<br />Lifecycle Transparency<br />MQL<br />Develop Solution<br />SAL<br />Demonstrate Value<br />SQL<br />Marketing<br />Measured Contribution<br />MQL Revenue<br />Closed Loop<br />Targeted Enablement<br />Propose<br />Closed<br />Close<br />Source: SiriusDecisions<br />SiriusDecisions Research Brief: “The Case for Building a Productivity Pipeline”<br />12<br />
  36. 36. X-Ray vs. MRI<br />SiriusPerspective: Sales and marketing need a more complete view to diagnose what’s really happening in the opportunity pipeline.<br />Traditional Pipeline<br />One-dimensional view<br /> Conversion rates - Mkt<br /> Projected Revenue - Sls<br />Opportunity Lifecycle Pipeline<br />Multi-dimensional view – by phase<br /> Revenue<br />Conversion rates<br />Sales cycle length<br />Success profiles<br />Source: SiriusDecisions<br />13<br />
  37. 37. SiriusPerspective: The opportunity lifecycle is measured by volume, revenue, conversion rates, sales cycle and buying phase length.<br />Pipeline Dynamics: Opportunity Lifecycle Visibility<br />14<br />Top of the Pipeline<br />Identifies sources of opportunity<br />Conversion Rates<br />Measures quality (effectiveness)<br />Cycle Length<br />Measures effort (efficiency)<br /> Closed Loop Revenue<br />Provides opportunity lifecycle<br />transparency<br />Source: SiriusDecisions<br />SiriusDecisions Research Brief: “Leveraging Pipeline Milestones to Drive Productivity”<br />
  38. 38. SiriusPerspective: Increasing the number/value of pipeline opportunities does not have a linear effect on decisions won.<br />Solving for “X”<br />4, 5 or 6:1<br />3:1<br />X = (C x C) x V<br /> X <br /> X <br />Capacity: Number of active opportunities<br />Conversion: Percentage of active opportunities that close<br />Velocity: Sales Cycle Length<br />Source: SiriusDecisions<br />SiriusDecisions Research Brief: Harnessing the Power of the Pipeline<br />15<br />
  39. 39. SiriusPerspective: Intense adherence to the success criteria and qualification phase means only winnable opportunities are pursued.<br />Pursue the Perfect Pipeline<br />Qualified Opportunity (SQL)<br />2. Qualification<br />Advance only the opportunities that align with the success profile<br />Develop Solution<br />3. Execution<br />No time, energy or resources wasted on unwinnable opportunities that artificially inflate pipeline values to satisfy arbitrary 3:1 ratios<br />Demo Value<br />Propose<br />1. Analysis<br />Establish “Success Profile”: the DNA of Wins: demographics, source, value, activities and velocity<br />4. New Metrics for a New Age <br />Close<br />Sales Capacity: Number of active deals<br />Sales Productivity: <br /> Net new active opportunities<br /> Average deal size<br /> Average sales cycle length<br />Pipeline Benchmarks: How well you sell<br />Source: SiriusDecisions<br />SiriusDecisions Research Brief: “The Pursuit of the Perfect Pipeline”<br />16<br />
  40. 40. SiriusDecisions/Cloud9 Survey on Forecasting/Pipeline Best Practices<br />Business-to-Business Sales Organizations<br />Looking to what, why and how companies measure their pipeline<br />Split findings into two groups: those that manage pipeline to quota of 3X or less, and those that manage 4X or higher<br />Wave II survey is still active:www.siriusdecisions.com<br />Initial phase of the Pipeline Genome Project<br />17<br />
  41. 41. 2010 Pipeline/Forecast Best Practices Survey<br />Companies that manage a pipeline of 3X or less had a<br />32% better close rate. <br />18<br />Source: SiriusDecisions/Cloud9 Pipeline/Forecast Best Practices Survey 2010<br />
  42. 42. 2010 Pipeline/Forecast Best Practices Survey<br />We asked what percentage of your reps were at quota or better?<br />19<br />57% of companies at3X or less had 60% or more of their reps at quotacompared to only 36%for4X or higher.<br />Source: SiriusDecisions/Cloud9 Pipeline/Forecast Best Practices Survey 2010<br />
  43. 43. 2010 Pipeline/Forecast Best Practices Survey<br />Companies that manage a <br />3X pipeline or lesswere more than twice as likely to use a third-party pipeline analytic tool <br />20<br />Source: SiriusDecisions/Cloud9 Pipeline/Forecast Best Practices Survey 2010<br />
  44. 44. 2010 Pipeline/Forecast Best Practices Survey<br />Over 20% of companies that manage a 3X or less pipeline reported that they had the ability to report on their pipeline with flexibility.<br />21<br />None of the companies managing a 4X or higher pipeline reported they had flexibility in managing their pipelines.<br />Source: SiriusDecisions/Cloud9 Pipeline/Forecast Best Practices Survey 2010<br />
  45. 45. Sales Productivity: At the Top of Leaders’ Minds<br />SiriusPerspective: Sales and marketing leaders have recognized that what got them here won’t get them “there.”<br />Activities<br />Productivity<br />Pipeline<br />Sales<br />Productivity<br />Opportunity <br />Breakpoint<br />Efficiency<br />(time & energy) <br />How do I get there?<br />How do I do that?<br />Effectiveness <br />(quality & results)<br />22<br />
  46. 46. SiriusPerspective: Increasing the productivity of salespeople results in more high-quality customer interactions. <br />Activities<br />How much time and effort does it take to…<br />Find a prospect<br /> Create a solution<br /> Craft a proposal<br />Increased Productivity<br />More Opportunities<br />Shorter Sales Cycles<br />Larger Deal Size<br />Higher Win Rates<br />Productivity<br />Process<br />Skills<br />Tools<br />Efficiency (time & energy)<br />What is the quality and customer relevance of…<br />Suspect touches<br /> Prospect interactions<br /> Client relationships<br />Knowledge<br />Effectiveness (quality & results)<br />Optimizing Sales Productivity<br />23<br />Source: SiriusDecisions<br />SiriusDecisions Research Brief: “Productivity: More Than Just the Topline”<br />
  47. 47. Power of Pipeline Dynamics: Pipeline Intelligence<br />24<br />SiriusPerspective: Identifying an “opportunity breakpoint” targets sales and marketing initiatives where they will have the most impact.<br />Demand Creation<br />Marketing<br />Sales Enablement<br />Sales Playbooks<br />SME Resource<br />Messages<br />Sales Qualified<br />Opportunity<br />Solution<br />Opportunity Breakpoint<br />Demo<br />Sales<br />Sales Activities<br />Skill Development<br />Product Training<br />Specialists<br />Propose<br />Close<br />Source: SiriusDecisions<br />SiriusDecisions Research Brief: “ Productivity Benchmarking: Measuring How Well You Sell”<br />
  48. 48. Pipeline Velocity is Really Decision Velocity<br />SiriusPerspective: Look at what is happening with your Buyers’ Journey to understand where deals get stalled. <br />SiriusDecisions Buying Cycle<br />Demand<br />Creation<br />Sales Qualified<br />Opportunity<br />One: Loosening of the Status Quo<br />Two: Committing to Change<br />Solution<br />Three: Exploring Possible Solutions<br />Four: Committing to a Solution<br />Demo<br />Five: Justifying the Decision<br />Six: Making the Selection<br />Propose<br />Close<br />Source: SiriusDecisions<br />
  49. 49. Measure Sales Productivity<br />SiriusPerspective: A unified productivity pipeline measures effort and quality to establish productivity benchmarks and define action.<br />26<br />Recycle Zone<br />Stall Zone<br />Days <br />to <br />Convert<br />Qualified<br />Solution<br />Demo<br />Close<br />Propose<br />28<br />28<br />Selling Cycle<br />25<br />22<br />21<br />SellingZone<br />Order<br />Convert Rate<br />70%<br />86%<br />67%<br />63%<br />80%<br />20%<br />28.5%<br />33.3%<br />63%<br />50%<br />Close Rate<br />Source: SiriusDecisions<br />SiriusDecisions Research Brief: “Better Forecasting Through Factual Factoring”<br />
  50. 50. Thank You<br />SiriusDecisions<br />Brief Introduction<br />Pipeline Dynamics<br />The Concept of the “Perfect Pipeline”<br />Pipeline Survey Data<br />When Less is More<br />Measuring Sales Productivity<br />Using Pipeline Analytics to Target and Measure Sales Enablement Initiatives <br />27<br />Joe Galvin<br />VP & Service Director <br />SiriusDecisions, Inc. <br />Tel: (203) 665-4018<br />Twitter: @JoeGalvin<br />
  51. 51. Recommended Research<br />Pipeline to Quota: Is Three-to-One Done?<br />The Facets of Forecast Management<br />The Case for Building a Productivity Pipeline<br />Leveraging Pipeline Milestones to Drive Productivity<br />Harnessing the Power of the Pipeline<br />The Pursuit of the Perfect Pipeline<br />Better Forecasting Through Factual Factoring<br />Productivity: More than Just the Topline<br />Productivity Benchmarking: Measuring How Well You Sell<br />Better Forecasting Through Factual Factoring<br />28<br />Source: SiriusDecisions<br />
  52. 52. SOLVING FOR ‘X’:<br />Pursuit of the Perfect Pipeline<br />Joe Galvin, Vice President and Service Director<br />Sales Optimization Strategies <br />December 8, 2010<br />
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