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Funnelholic's Book of Funnels

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Really fun project launched in 2010

Really fun project launched in 2010

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Funnelholic's Book of Funnels Funnelholic's Book of Funnels Presentation Transcript

  • Focus Experts’ Guide:Sales and Marketing Pipeline and Funnel ModelsFocus ResearchOctober 2010Contributing Experts:Ardath AlbeeMichael BrennerMichael DamphousseChristopher DoranBarbra GagoSteve GershikSue HayMatt HeinzCarlos HidalgoJon MillerAdam NeedlesTom ScearceMatt WestSteve Woods Focus Research ©2010
  • Introduction Welcome to our the first edition of the Focus Marketing & Sales Book of Funnels. We are very excited about what we have created and the foundation it lays for future editions. Focus.com CEO Scott Albro manages his executives with a simple adage: “Put it in a one-page picture.” The concept of the one-page picture becomes a brilliant exercise for Scott’s department heads to create a sensible framework for how their department will function. Depicting a marketing or sales process in a single picture is just as challenging, and brings similarly powerful results. To create this book, Focus.com reached out to its Focus Expert Network and asked members to submit their version of the funnel. We gave them no instructions about what the funnel should look like, only that it had to fit on one page. I think you will have as much fun as we did seeing the results, from Carlos Hidalgo’s “stairstep” picture to a traditional funnel from Jon Miller to a “cloud” from Mike Damphousse to the “champagne glass” from Michael Brenner. Every organization should make the effort to depict its revenue funnel on one page. It serves as the basis of your sales and marketing strategy; once you understand your funnel, you are better informed about what metrics you should concentrate on, resource decisions and planning. I have two hopes from this exercise: 1) that there are some thought-provoking ideas for you to take back to your organization, and 2) that you create such a terrific funnel you can be included in the Book of Funnels Part II, which will have five times as many submissions as we received for this one. Special thanks to all of our contributors, Focus.com Sales Development Manager Sarah Miller and Contributing Editor Alec Wagner. We hope you enjoy the Focus Marketing & Sales Book of Funnels. — Craig Rosenberg, Leader, Focus Expert NetworkFocus  /  Experts’ Guide  /  Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 2
  • Table of Contents Readjust Your Perspective to the B2B Buyers’ Experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 4 The Division Between Marketing and Sales Is a Myth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 5 The Days of the Funnel Are Thing of the Past . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 6 The ‘Living Funnel’ Responds to Business Changes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 7 . Engage Your Customers to Create Evangelists. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 8 View Your Funnel from Above. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 9 Lead Scoring, Progressive Nurturing Promote Qualified Leads. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 10 Expand Each End of the Funnel for Long-term Yield. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 11 Make Lead Nurturing Part of Your Equation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 12 Keep Leads Moving through Your Funnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 13 Buyers 2.0: Blazing Their Own Trail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 14 Today’s Bottom-Feeders Are Tomorrow’s Surface-Feeders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 15 Follow the Four R’s: Reach, Responses, Relationships and Revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 16 . Define Buying Stages and Look at Conversion Rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 17 About the Focus Experts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . p. 18 All illustrations and visuals in this Focus Experts’ guide copyright © 2010 of their respective companies.Focus  /  Experts’ Guide  /  Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 3
  • Readjust Your Perspective to the B2B Buyers’ ExperienceInstead of orienting your funnel to a salesperspective, focus the stages of the funnelon your B2B buyers’ experience.When your funnel is focused on meetingthe needs of all the people involved in thedecision, you’ll see a swelling in the middle,instead of the constriction that indicatesfallout in traditional funnels.The Buyer-Experience Funnel:•  Interest: Get prospects to take a look at what you offer.•  Attention: Convince them to opt-in. Notice that fallout occurs here when they choose to continue or not.•  Value: Instantly recognizable value increases willingness to engage.•  Engagement: Prospects spend more time and mind-share with your content.•  uying committee involvement: Your funnel swells as influencers interact to gain consensus. B•  onversations: Sales steps in to drive momentum to purchase based on interests expressed. The funnel narrows to core decision-maker participation. C•  urchase: Buyers choose to partner with your company. P — Ardath Albee, CEO and B2B Marketing Strategist at Marketing Interactions, www.focus.com/profiles/ardath-albee/public/Focus  /  Experts’ Guide  /  Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 4
  • The Division Between Marketing and Sales Is a MythTo our customers, there is no such thing as a funnel.Marketing and salespeople use the funnel to depict Start Earlier in Buying Cyclehow we manage demand through different phases. INQUIRIESBut there is no hard distinction. In some cases, salesgenerates inquiries and marketing can close revenuewithout salespeople getting involved (e-commerce).So what does this mean for the traditional funnel?The traditional funnel is marketing-focused with a LEADSlarge top in a wide V-shape, like a martini glass.•  ecause customers buy from brands that they B trust, we need to focus on engaging potential customers in a relationship earlier in the buying process, even prior to a demand signal. PIPELINE•  e must remove the false distinction between W marketing and sales funnels. There is just one funnel from contact to sale, aligned to customer needs.•  hen we deliver against customer needs, our W efficiency increases as we convert more inquiries PURCHASE to leads and more leads to revenue. This happens because customers tell us when they are ready to buy and our funnel is built to move them through Continue the buying process. After Sale•  his creates a funnel shaped more like a T Drive More Efficient champagne flute that drives efficient demand on a Demand & Less Leakage continuous basis. — Michael Brenner, Director of Online/Social Media at SAP North America, www.focus.com/profiles/michael-brenner/public/Focus  /  Experts’ Guide  /  Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 5
  • The Days of the Funnel Are Thing of the PastWith the advent of social, sales andmarketing 2.0 techniques and tools,optimized inbound marketing strategies,and a much more sophisticated buyer, thedays of a funnel are gone.•  uyers put themselves in the funnel B where they want to be. They jump around. The influence of content and word of mouth jumps them from side to back and down again.•  he demand-gen funnel is now in the T cloud. As marketers, we must constantly measure the status of the cloud and make adjustments. We must combine strategies and tactics in order to maximize our results.•  e harness the chaos to our advantage. W We control the demand-gen cloud. — Michael Damphousse, CEO/CMO of Green Leads LLC, www.focus.com/ profiles/michael-damphousse/public/Focus  /  Experts’ Guide  /  Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 6
  • The ‘Living Funnel’ Responds to Business Changes•  anticore approaches the funnel in an M integrated manner. Sales and marketing must work together to generate demand. In our funnel, marketing focuses on three components:•  elivering a consistent flow of qualified D leads to sales•  elping sales close more deals through H sales-enabled lead nurturing programs•  elivering value-added content to D prospects at various stages of the pipeline to keep Manticore top-of-mind.•  hrough this approach our teams become T heavily dependent on one another. The sales and marketing team work together on content and messaging for the various nurtures. The funnel at Manticore Technology is a living object that changes as business conditions evolve — Christopher Doran, VP of Marketing at Manticore Technology, www.focus.com/ profiles/christopher-doran/public/Focus  /  Experts’ Guide  /  Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 7
  • Engage Your Customers to Create EvangelistsThis funnel puts as much emphasis on thebottom as the top. Why? Customers are inthe community you are trying to engage.You want to engage the community,but you also want to create customerevangelists to engage the community onyour behalf.•  his funnel focuses on building T community to convert targeted prospects into leads.•  fter purchase, the goal is to convert A customers to evangelists through added value and community development.• n this funnel, ultimately “community” I and “evangelists” overlap when the evangelists go back into the community to advocate for your brand.•  his funnel has marketing engaged much T deeper than traditionally–way into lead nurturing, and then picking up customers as they come out the other end, to develop customer-focused community.•  ince this funnel starts with community, it incorporates all organizations within the company that are customer-facing: marketing, sales, support, success and executives. S — Barbra Gago, Social Media Manager of Cloud9 Analytics, www.focus.com/profiles/barbra-gago/public/Focus  /  Experts’ Guide  /  Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 8
  • View Your Funnel from Above•  t 28Marketing, we imagine a viewed- A from-above image of the traditional sales funnel.•  ooking at the progression of prospect to L lead to opportunity, we realized that old models didn’t conform to today’s buyer behavior, where customers may engage with the company at various levels, become viable sales leads earlier or later than we would expect, or even become longer or shorter duration sales.•  he new 28Marketing funnel looks down T into the buying system, where individuals, companies, leads and customers accumulate at levels, spend time there, and then move forward or backward, depending on their needs, interest and the ability of our company to serve them. — Steve Gershik, CEO of 28Marketing, www.focus.com/profiles/steve-gershik-1/ public/Focus  /  Experts’ Guide  /  Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 9
  • Lead Scoring, Progressive Nurturing Promote Qualified Leads•  o increase revenue and shorten your T sales cycle, put together a clearly defined and agreed-upon lead management process with marketing automation and sales force automation tools.•  o reach targeted sales and marketing T leads, be sure your lead-nurturing campaigns are based on content that is segmented, mapped to their interests, and relevant to their stage in the buying cycle.•  rogressive nurturing develops a P comprehensive dossier on leads in the pipeline. That, combined with lead scoring, will provide you with a list of leads that are more qualified and ready to send to sales.•  void missed opportunities by ensuring A that leads deemed “not ready” are given a second chance by returning them to a nurturing campaign.•  n effective lead-management process, combined with market automation and SFA tools, makes it easier to identify opportunities to up-sell and cross-sell. A•  his combination of “people and process” not only gives you clearer visibility into the pipeline, it makes it possible to measure accurately marketing’s impact and the ratio of T marketing spend to revenue earned. — Sue Hay, CEO of BeWhys Marketing Inc., www.focus.com/profiles/sue-hay-1/public/,Focus  /  Experts’ Guide  /  Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 10
  • Expand Each End of the Funnel for Long-term Yield•  ou want a funnel that represents far Y more than the active sales cycle. Include various stages of prospect engagement based on your understanding of their current needs, problems and triggers.•  or every qualified, ready-to-buy lead you F manage, you likely also have three to five qualified but not-ready-to-buy leads. Have a strategy to engage them where they are, until 1) they’re ready to move forward, or 2) they understand and trust you well enough to engage.•  he traditional sales funnels also only T reflect half of the story. What about repeat purchases? Referrals? Word-of- mouth opportunities that turn one sale into four? That first sale may be the narrow part of the funnel, but if you know what you’re doing it widens again significantly from there. Renewals, repeat purchases, referrals, and so forth.•  orry today about how much you can W naturally drive through the middle, but put even more focus long-term on expanding each end of the funnel to maximize long-term yield. — Matt Heinz, Principal at Heinz Marketing LLC, www.focus.com/profiles/matt-heinz/public/Focus  /  Experts’ Guide  /  Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 11
  • Make Lead Nurturing Part of Your EquationThe development of a funnel starts withthe revenue that marketing needs toproduce to help sales meet their quota.Organizations can then work backwardthrough every stage to determine what isneeded to meet these goals.•  his must be a collaborative effort T between marketing and sales to determine the goals and percentages of conversion (benchmark metrics will be key for conversion goals). Then both marketing and sales will be able to track success, see where any weak links are and improve planning and budgeting.• n addition to linear lead planning, I companies must begin to develop a funnel approach with lead nurturing as part of the equation. Nurturing will affect all areas of marketing and sales including lead forecasting, forecasting for quota attainment, ROI analysis and marketing budget allocation.•  he nurturing component will improve the lead quality and also provide a lead pipeline that will be managed by marketing. T — Carlos Hidalgo, President of The Annuitas Group, www.focus.com/profiles/carlos-hidalgo/public/Focus  /  Experts’ Guide  /  Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 12
  • Keep Leads Moving through Your FunnelMarketo’s funnel is key to the success ofour organization. Some important detailsto note:•  on’t let leads sit in any one place in the D funnel. Leads should be moving – making sure they are not forgotten and that you can measure results of programs and processes.•  earning is a two-way process. Use lead L nurturing to educate prospects about your marketing, and actively learn about prospects’ preferences and needs as they interact with your content.•  utomate the process by using lead A scoring to move leads to the next stage. Encourage engagement with lead nurturing.•  ead recycling is powerful — it allows L sales to spend their time with the best leads and utilizes marketing to develop the sales pipeline for the coming months. — Jon Miller, Vice President of Marketing at Marketo, www.focus.com/profiles/jon-miller/public/Focus  /  Experts’ Guide  /  Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 13
  • Buyers 2.0: Blazing Their Own Trail•  uyers determine their own ‘funnel’ B path: It’s common to conceptualize the buying process as a ‘funnel,’ but Buyer 2.0 doesn’t move in such a linear or predictable fashion; rather, buyers move at their own pace, based on content consumed and on organizational priorities.•  urturing = an iterative loop: Our N nurturing of buyers thus should be more of an iterative process of educating and learning more about them, and then providing them with the information and insights necessary to move their buying process forward. This looks more like a loop than a funnel.•  arketing automation + demand M generation strategy = core components: Marketing automation (see yellow boxes) serves as the critical infrastructure for enabling this type of dynamic, buyer- driven B2B nurturing, and demand generation strategy is the architecture that determines the interactions and that governs your content-based nurturing. — Adam Needles, VP of Demand Generation Strategy at Left Brain Marketing, www.focus.com/profiles/adam-needles/public/Focus  /  Experts’ Guide  /  Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 14
  • Today’s Bottom-Feeders Are Tomorrow’s Surface-Feeders•  he sales team creates value by attaining T or exceeding its revenue, gross margin, and product mix objectives.•  o help sales succeed, we need to help T them focus their most precious resource (time) on the best sales opportunities.•  Best” can mean many things, e.g., the “ highest average selling price, most profitable accounts, interest in a new strategic product line, or simply the most “ready to buy.”•  e can sometimes buy quality leads, W but every company needs to build the process acumen that makes sales success repeatable.•  otice that in the graphic, the sales VP N is “fishing” at the top of the barrel of leads, not wasting precious time on the “bottom-feeders” (who are tomorrow’s surface-feeders).•  he result is a money multiplication machine that efficiently converts marketing investments into leads, leads into deals, and deals into revenue. T — Tom Scearce, Principal at Scearce Market Development, www.focus.com/profiles/tom-scearce/public/Focus  /  Experts’ Guide  /  Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 15
  • Follow the Four R’s: Reach, Responses, Relationships and RevenueIn today’s Web-enabled market, buyersare more informed than ever, directlyaccessing information about the market,your competition, and, most importantly,your solutions. With tools like social media,sales also gets involved much earlier inthe process. Plus, with tools like marketingautomation, marketing remains involvedmuch longer in the process.The funnel no longer begins with knownprospects. By tracking prospects abovethe funnel, marketing can accuratelyscore leads, place them in the appropriatenurturing path and track ROI from initialclick to deal close; while sales canappropriately follow up with ready prospects.The “Four R’s” allow marketers to:•  Extend reach with social media, online ads and paid search;•  licit responses to drive prospects to their E Web site;•  uild relationships through intelligent lead B nurturing;•  rive more revenue by better-arming sales with truly sales-ready leads. D — Matt West, Director of Marketing at Genius.com, www.focus.com/profiles/matt-west/public/Focus  /  Experts’ Guide  /  Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 16
  • Define Buying Stages and Look at Conversion Rates•  he main goal in building a model of the T buying funnel is to provide a framework for analyzing marketing’s effect on revenue. Different campaigns trigger different actions. All valuable, but measuring their value requires a different approach than in simple buying processes.•  he first key step is to understand where T each person is in the buying process and that the stages of the funnel will differ between businesses.•  nce buying stages are defined, you can O look at conversion rates to understand the value of a lead at different stages. For example, if a deal is worth $10,000, and an MQL has a 10 percent conversion rate to a deal, it is worth $1,000. (Values are based on the conversion rate of the funnel stage through to close.)•  ith this established, it is possible to see W the value of a buyer’s movement through the funnel. For example, if a buyer moves from “mildly interested” ($100/lead) to “marketing qualified lead” ($1,000/lead), their value has increased by $900.• f a campaign triggered that transition, the easiest way to look at the value of the marketing campaign is that it added that much value to your lead funnel. I — Steve Woods, Chief Technology Officer of Eloqua, www.focus.com/profiles/steve-woods/public/,Focus  /  Experts’ Guide  /  Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 17
  • About the Focus Experts The Focus Expert Network powers much of the activity on Focus.com. Consisting of thought leaders, veteran practitioners and upstart innovators, Focus Experts help thousands of businesses with tough decisions every day. They do this by publishing Focus Research, answering questions on the site, and providing personalized support to the Focus community. Ardath Albee uses her 20-plus years of business management and Barbra Gago recently joined Cloud9 Analytics, and has consulted marketing experience to help B2B companies create e-marketing businesses on Web-content strategy, inbound marketing and social strategies using contagious content to turn prospects into buyers. media for the last four years. Company URL: www.marketinginteractions.com Company URL: www.Cloud9Analytics.com Blog: http://marketinginteractions.typepad.com Blog: http://cloud9analytics.com/resources/blog/ Twitter: @ardath421 Twitter: @barbragago, @cloud9analytics Michael Brenner has16 years of experience in sales and marketing, Steve Gershik is founder of 28Marketing, and he has worked with a and his common focus has been using customer and market insights to number of B2B technology and cloud computing companies, as well as drive results-based marketing and to produce a return on investment. HP, Apple and Oracle. Company URL: www.sap.com Company URL: www. 28marketing.com Blog: www.b2bmarketinginsider.com/ Blog: www.theinnovativemarketer.com Twitter: @brennermichael Twitter: @sgersh Michael Damphousse is a consummate sales and marketing Sue Hay is founder of BeWhys Marketing, a full-service lead generation executive, leading the growth of Green Leads while sharing B2B consultancy that uses lead process management best practices, lead demand generation knowledge with others. scoring, persona building, content creation and mapping to achieve results. Company URL: www.green-leads.com Company URL: www. 28marketing.com Blog: www.green-leads.com/b2b-blog/ Blog: http://blog.bewhysmarketing.com/ Twitter: @damphoux Twitter: @Sue_Hay Christopher Doran joined Manticore Technology in 2003 as the Matt Heinz founded Heinz Marketing to focus on sales acceleration. company’s second executive hire. He has become a recognized thought His career has been about delivering greater sales, revenue growth, leader in marketing automation and B2B marketing best practices. product success and customer loyalty. Company URL: www.manticoretechnology.com Company URL: www.heinzmarketing.com Blog: www.manticoretechnology.com/blog Blog: www.mattonmarketingblog.com Twitter: @cdoran Twitter: @heinzmarketingFocus  /  Experts’ Guide  /  Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 18
  • Carlos Hidalgo is an expert in lead management and marketing Tom Scearce is founder of Scearce Market Development, a Seattle- automation, with 15-plus years experience. He is a frequent speaker based sales and marketing consultancy. Tom has helped companies in and author about lead management. diverse industries of various sizes increase revenue. Company URL: www.annuitasgroup.com Company URL: http://tomscearce.com Blog: http://blog.annuitasgroup.com/ Blog: http://thelordoftheleads.com/ Twitter: @cahidalgo Twitter: @TLOTL Jon Miller leads strategy and execution for all aspects of marketing Matt West has over a dozen years experience managing B2B marketing and is a key architect of Marketo’s hyper-efficient revenue engine and demand-gen programs for tech companies, with experience in (powered by Marketo’s solutions, of course). agency/consulting and client-side marketing departments. Company URL: www. marketo.com Company URL: www.genius.com Blog: http://blog.marketo.com/ Blog: www.genius.com/marketinggeniusblog/ Twitter: @marketo Twitter: twitter.com/m_west Adam Needles is a marketing change agent in B2B marketing who Steve Woods co-founded Eloqua in 1999 and has held the position of helps companies develop buyer-centric demand generation programs CTO since that time. He is a prolific writer on topics related to demand that drive revenue and build their brands in a bottom-up fashion. generation and the current transitions within the marketing profession. Company URL: www.leftbrainmarketing.com/ Company URL: www.eloqua.com/ Blog: http://propellingbrands.wordpress.com/ Blog: http://digitalbodylanguage.blogspot.com/ Twitter: @abneedles Twitter: http://twitter.com/stevewoodsFocus  /  Comparison Guide  /  Midmarket/Enterprise ERP Solution Focus Research ©2010 19
  • About Focus Research Each year U.S. businesses spend more than $75 trillion* on goods and services. And yet there has not been a definitive source of trustworthy and easily accessible information to support business buyers and decisions makers — especially those in small and midsize businesses. Filling this gap is the mission of Focus Research. Through its Research Guides, Focus Research empowers buyers to make considered purchases and decisions. Focus does this by providing freely available, actionable advice based on the expertise of other buyers, recognized experts and Focus analysts. Guiding Principles Our goal is not only to provide independent and high-quality research but also to deliver a new research model that serves all businesses. Open: We believe information must be set free. The data, advice and Relevant: We believe there is no “one-size-fits-all” answer to a research on Focus are widely distributed and available to everyone business purchasing decision. Focus Research is, therefore, designed to address specific concerns of multiple buyer types across multiple Peer-powered: We believe in the power of many. Thousands of buyers industries. As such, users are encouraged to combine our different and experts contribute their expertise to Focus every day. Our job is to research deliverables into tailor-made packages that effectively take their insights and integrate them into our research. address their unique needs and goals. Practical: We believe in addressing everyday issues facing businesses. Focus Research does not pontificate on high-level trends or promote broad-based research agendas. Rather, Focus Research endeavors to provide specific, actionable recommendations that help businesses make the right decision every time. * Source: Visa, Inc. Commercial Consumption Expenditure Index fact sheet.Focus  /  Experts’ Guide  /  Sales and Marketing Pipeline and Funnel Models Focus Research ©2010 20