Sales Summit 2 - Minds&More - Sales and marketing alignment

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presenation by Francois Delvaux on sales & marketing alignment; research done by Mathmarketing including Belgian results .. given at sales summit 2 by Minds&More (oct 9, 2013)

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Sales Summit 2 - Minds&More - Sales and marketing alignment

  1. 1. “The Sales Performance & Productivity Summit II” Track 1 14:00 – 14:45 Sales and marketing alignment 2.0 – Results from the 2013 worldwide study and insights to gain more business growth Francois Delvaux, Partner Minds&More Tweet #9octsalessummit SMS 0495/582.221 with your question + name 1 1
  2. 2. Sales & Marketing Alignment 2.0 Study done by 2
  3. 3. Sales & Marketing Alignment 2.0 500 Companies 20 Countries Average revenues each of 200 Million $ 3
  4. 4. 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 4
  5. 5. Three Key Numbers 56 % higher probability that marketing-generated leads will close 108 % 108% better lead acceptance by sales (MQL to SQL rates) 209 % 209% stronger contribution to revenue from marketinggenerated leads as a result 5
  6. 6. Counter intuitive steps… Teach your sales people to ‘open’ and your marketers to ‘close’ !! 6
  7. 7. Planning to get new revenues Who Drives Planning Process? Impact of each 7
  8. 8. Planning new revenues - Finance Who Drives Planning Process? Impact of each +38% new revenues 3 X more Churn 8
  9. 9. Planning new revenues - Marketing Who Drives Planning Process? Impact of each 55% lift in acceptance of MQLs Deal sizes drop by 47% 56% drop in churn Closure capability drops 16% 9
  10. 10. 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 10
  11. 11. Planning new revenues - Production Who Drives Planning Process? Impact of each Retention is at its best Sales closure rates with churn no less than drops by 42% 72% lower than when Finance in charge leads drops by 34% 11
  12. 12. Planning new revenues - Operations Who Drives Planning Process? Impact of each 12
  13. 13. Joint Planning – Better Results Joint planning delivers: • 56% better leads • 31% better acceptance • 62% more revenue from Marketing 13
  14. 14. Timing Planning needs to be done quickly (less than a month) and reviewed • 209% increased contribution from Marketing • 13% less churn 14
  15. 15. Process… A single, end to end process delivered: • 51% less churn • 108% better lead acceptance • 126% higher contribution to revenue from Marketing 15
  16. 16. Training Teach your sales people to open and your marketers to close Training delivers benefits, but not where you’d expect 16
  17. 17. 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. 17
  18. 18. 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 18
  19. 19. Training - Both Helps get new business 29% improvement for Sales and 26% for Marketing as the training investment shifts from 2 days to 10 •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. 19
  20. 20. Automation 33% No automation more confident 153% Marketing leads less revenue !! 20
  21. 21. Renaming Funnel Stages MQLs with a 46% higher closure rate SQLs are 16% more likely to close + further 28% lift on MQL closure rates 21
  22. 22. 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 22
  23. 23. 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. 23
  24. 24. Francois Delvaux, Partner Mobile: +32 (0)495 242 986 Email: francois.delvaux@mindsandmore.biz Pieterjan Kempynck Mobile: 32 (0)477 700 541 Email: pieterjan.kempynck@mindsandmore.biz Pascale Hall, Partner Mobile: + 32 (0) 472 445 983 Email: Pascale.Hall@mindsandmore.biz Benny Van Calster, Partner Mobile: 32 (0)475 633 483 Email: benny.van.calster@mindsandmore.biz Myriam Vangenechten, Partner Mobile: +32(0)477 508 640 Email: Myriam.Vangenechten@mindsandmore.biz MINDS&MORE cvba Park Hill Office Jan Emiel Mommaertslaan 16b 1831 Diegem www.mindsandmore.biz Tel: +32 (02) 704 49 40 24

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