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Three Phases: The New Approach for Sales and Marketing Planning.
- 1. © 2018 SiriusDecisions. All Rights Reserved Three Phases: The New Approach for Sales and Marketing Strategic Planning
- 2. © 2018 SiriusDecisions. All Rights Reserved According to SiriusDecisions Research 14% Only 14% of b-to-b organizations say they have an aligned planning process across product, marketing and sales 55% Only 55% of sales plans are delivered prior to the start of the fiscal year 28% Only 28% use two or more years of historical sales data 32% 32% of sales organizations estimate they lose at least one month of productivity re-evaluating account/territory assignments 34% 34% modify quota, comp or account assignments after initial implementation – often taking 2 months or more to complete 20% Only 20% set quota based on projected revenue using opportunity data
- 3. © 2018 SiriusDecisions. All Rights Reserved What Do We Mean by Planning? SiriusPerspective: Planning is the connection between strategy, goals and execution. 3- 5 Year Growth Strategies Markets Buyers Offerings Acquisition Productivity 1 2 3 4 5 Annual Goals • Revenue • Bookings • Product Mix • Margin • Customer Engagement (e.g. retention, growth, cross-sell, up-sell) Lead Management Account Management Demand Generation Customer Retention Resource Allocation Customer Acquisition Events Technology Infrastructure Data Governance Onboarding and Training Opportunity Management Execution
- 4. © 2018 SiriusDecisions. All Rights Reserved Three Key Phases of Alignment Functional Interlock Execution Readiness Business Alignment
- 5. © 2018 SiriusDecisions. All Rights Reserved Three Key Phases of Alignment Functional Interlock Execution ReadinessBusiness Alignment Sales Marketing
- 6. © 2018 SiriusDecisions. All Rights Reserved Business Alignment Shared understanding of markets, goals and objectives
- 7. © 2018 SiriusDecisions. All Rights Reserved Aligned Planning Steps Annual Goals Go-to-Market Architecture Sales Roles Sales Coverage Sales Execution Demand Engine Sales Structure Routes to Market Sales Annual Goals Go-to-Market Architecture Marketing Organization and Roles Resource Allocation Functional Readiness Infrastructure Readiness Routes to Market Marketing Go-to-Market Strategy Marketing
- 8. © 2018 SiriusDecisions. All Rights Reserved Understand and Communicate Annual Goals Revenue Bookings Product Mix Profit Margin Customer Engagement SiriusPerspective: The planning process starts with a shared understanding of annual goals and the assumptions used to develop them.
- 9. © 2018 SiriusDecisions. All Rights Reserved Go-to-Market Architecture Who is our audience? ? ? How do they buy? ? ?What do they need? How do we reach them? Questions to Answer SiriusPerspective: The go-to-market architecture defines how the organization plans to merchandise its offering portfolio to the targeted buyer audience. Annual Goals Go-to-Market Architecture Sales Roles Sales Coverage Sales Execution Demand Engine Sales Structure Routes to Market Annual Goals Go-to-Market Architecture Marketing Organization and Roles Resource Allocation Functional Readiness Infrastructure Readiness Routes to Market Marketing Go-to-Market Strategy
- 10. © 2018 SiriusDecisions. All Rights Reserved Master Brand Business Unit Industry Industry Region Industry Region Region Account Buying Center Persona Persona Persona Region Account Buying Center Persona Persona Account Buying Center Persona Persona Business Unit Business Unit Agree on Go-to-Market Architecture SiriusDecisions Go-to-Market Architecture Model Audience Framework Need CommonNeed Product Product Product Product Product Product Product Solution Product Product Product Product Offering Map Need Need Need Need Buying Scenario Buyer’s Journey Map Buying Scenario Buyer’s Journey Map Buying Scenario Buyer’s Journey Map Buyer’s Journey Map Who are our buyers? How do they buy? What do they need? SiriusPerspective: The go-to-market architecture defines how the organization plans to merchandise its offering portfolio to the targeted buyer audience.
- 11. © 2018 SiriusDecisions. All Rights Reserved Choose Routes to Market SiriusPerspective: Routes to market determine how the organization will cost-effectively engage with prospects and customers. How do we cost-effectively reach our target market? ? Questions to Answer Annual Goals Go-to-Market Architecture Sales Roles Sales Coverage Sales Execution Demand Engine Sales Structure Routes to Market Annual Goals Go-to-Market Architecture Marketing Organization and Roles Resource Allocation Functional Readiness Infrastructure Readiness Routes to Market Marketing Go-to-Market Strategy
- 12. © 2018 SiriusDecisions. All Rights Reserved Choose Routes to Market E-Commerce Leverages Web and online resources to sell and service prospects and customers Hybrid Two or more combinations of the other models Direct Sales and support personnel are employees of the company, generally with a mix of base salary and variable incentive comp Indirect Sales and/or support personnel are employees of a channel partner; compensation is 100% variable SiriusPerspective: Routes to market determine how the organization will cost-effectively engage with prospects and customers.
- 13. © 2018 SiriusDecisions. All Rights Reserved Business Alignment Readiness Check Annual Goals Go-to-Market Architecture Routes to Market ✓ ✓ ✓ SiriusPerspective: The business alignment phase ensures the planning inputs are agreed upon across sales and marketing. Must align to business goals✓ Communicate across silos✓
- 14. © 2018 SiriusDecisions. All Rights Reserved Functional Interlock Where the alignment magic happens
- 15. © 2018 SiriusDecisions. All Rights Reserved Define the Sales Structure SiriusPerspective: Market and customer needs, product complexity and the degree of specialization required by sales reps determine the sales structure. Annual Goals Go-to-Market Architecture Sales Roles Sales Coverage Sales Execution Demand Engine Sales Structure Routes to Market Annual Goals Go-to-Market Architecture Marketing Organization and Roles Resource Allocation Functional Readiness Infrastructure Readiness Routes to Market Marketing Go-to-Market Strategy
- 16. © 2018 SiriusDecisions. All Rights Reserved Define the Sales Structure Geography Account Size ProductVertical Federal StateandLocal AllOther FinancialServices Healthcare Manufacturing Hybrid Separate Overlay Enterprise Mid-Market SMB SiriusPerspective: Market and customer needs, product complexity and the degree of specialization required by sales reps determine the sales structure.
- 17. © 2018 SiriusDecisions. All Rights Reserved The SiriusDecisions Sales Structure Design Framework Geography/ Territory Customer/ Account Industry/ Vertical Product/ Service Hybrid Theatre, country, state, region, postal code other geographical Accounts and prospects have been stratified propensity-to-spend Accounts that are by industry or other firmagraphic trait Products and/or A mix of two or more go- market strategies Customer Needs Similar Different Different Similar Similar or different Product Offering Simple Simple Complex range Complex range Simple or complex range Degree of Specialization Required by Sales Team Low Medium Medium High Medium or high
- 18. © 2018 SiriusDecisions. All Rights Reserved Marketing Aligns Campaigns to Sales Structure Sales Marketing SiriusPerspective: As sales determines its geographic and segment orientation, marketing resizes its campaign architecture to map to sales coverage.
- 19. © 2018 SiriusDecisions. All Rights Reserved Marketing Aligns Campaigns to Sales Structure SiriusPerspective: As sales determines its geographic and segment orientation, marketing resizes its campaign architecture to map to sales coverage. Enterprise Mid-Market SMB Enterprise Mid-Market Enterprise Mid-Market SMB Sales NA EMEA APAC Geographies Campaign One Campaign Two Campaign Three Marketing
- 20. © 2018 SiriusDecisions. All Rights Reserved Marketing Aligns Campaigns to Sales Structure SiriusPerspective: As sales determines its geographic and segment orientation, marketing resizes its campaign architecture to map to sales coverage. Enterprise Enterprise Enterprise Sales NA EMEA APAC Geographies Campaign One Campaign Two Campaign Three Marketing
- 21. © 2018 SiriusDecisions. All Rights Reserved Marketing Aligns Campaigns to Sales Structure SiriusPerspective: As sales determines its geographic and segment orientation, marketing resizes its campaign architecture to map to sales coverage. Mid-Market Mid-Market Mid-Market Sales NA EMEA APAC Geographies Campaign One Campaign Two Campaign Three Marketing
- 22. © 2018 SiriusDecisions. All Rights Reserved Marketing Aligns Campaigns to Sales Structure SiriusPerspective: As sales determines its geographic and segment orientation, marketing resizes its campaign architecture to map to sales coverage. SMB SMB Sales NA EMEA APAC Geographies Campaign One Campaign Two Campaign Three Marketing
- 23. © 2018 SiriusDecisions. All Rights Reserved Marketing Aligns Campaigns to Sales Structure SiriusPerspective: As sales determines its geographic and segment orientation, marketing resizes its campaign architecture to map to sales coverage. Enterprise Mid-Market SMB Enterprise Mid-Market Enterprise Mid-Market SMB Sales NA EMEA APAC Geographies Campaign One Campaign Two Campaign Three Marketing
- 24. © 2018 SiriusDecisions. All Rights Reserved Tune the Sales and Marketing Roles SiriusPerspective: Most of these roles already exist, so the challenge at this step is to make adjustments to align with updated sales and marketing priorities and budget. Annual Goals Go-to-Market Architecture Sales Roles Sales Coverage Sales Execution Demand Engine Sales Structure Routes to Market Annual Goals Go-to-Market Architecture Marketing Organization and Roles Resource Allocation Functional Readiness Infrastructure Readiness Routes to Market Marketing Go-to-Market Strategy
- 25. © 2018 SiriusDecisions. All Rights Reserved Tune the Sales and Marketing Roles +++ - - -++ Account Manager Channel Sales Manager Inside Sales Rep Major-Account Manager Sales Roles Communications Demand/ABM Customer Tele Marketing Roles SiriusPerspective: Most of these roles already exist, so the challenge at this step is to make adjustments to align with updated sales and marketing priorities and budget.
- 26. © 2018 SiriusDecisions. All Rights Reserved Example: Mapping Sales Roles Sales Role Job Focus Role and Responsibility Account/Segment Focus Sales Process Prospect, generate and qualify leads Acquire new accounts, opportunities Manage, and grow accounts Solution presentation, demo and proposal Account onboarding, adoption, retention and growth Enterprise Mid-market SMB From To Strategic Account Manager Acquisition, and growth within assigned accounts Needs development Hand-off Inside Sales – Paired Support field sales Outreach Hand-off Inside Sales – Independent Acquisition of new accounts within assigned territory Outreach Hand-off Sales Consultant Solution design, support Needs confirmation Solution finalization Customer Success Prospecting, lead generation, Closed/won, hand-off Renewal SiriusPerspective: Define the sales roles by job focus, role, responsibility, segment and participation in the sales process.
- 27. © 2018 SiriusDecisions. All Rights Reserved Generating a Sales Coverage Plan SiriusPerspective: With an understanding of sales structure, roles and resources, sales operations develops a detailed production plan, territory assignments and quota allocation. Annual Goals Go-to-Market Architecture Sales Roles Sales Coverage Sales Execution Demand Engine Sales Structure Routes to Market Annual Goals Go-to-Market Architecture Marketing Organization and Roles Resource Allocation Functional Readiness Infrastructure Readiness Routes to Market Marketing Go-to-Market Strategy
- 28. © 2018 SiriusDecisions. All Rights Reserved Generating a Sales Coverage Plan Production Plan Account/Territory Assignment Quota Allocation 65%–70% 10% Threshold Target Excellence Compensation Design SiriusPerspective: With an understanding of sales structure, roles and resources, sales operations develops a detailed production plan, territory assignments and quota allocation.
- 29. © 2018 SiriusDecisions. All Rights Reserved Sample Sales Production Plan 15% 20% 25% 40% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 3.0% 4.5% 7.5% 4.0% 6.0% 10.0% 5.0% 7.5% 12.5% 8.0% 12.0% 20.0% 100.0% US Enterprise $ 300 $ 9 $ 14 $ 23 $ 12 $ 18 $ 30 $ 15 $ 23 $ 38 $ 24 $ 36 $ 60 $ 300 Midmarket $ 132 $ 4 $ 6 $ 10 $ 5 $ 8 $ 13 $ 7 $ 10 $ 17 $ 11 $ 16 $ 26 $ 132 SMB $ 20 $ 1 $ 1 $ 2 $ 1 $ 1 $ 2 $ 1 $ 2 $ 3 $ 2 $ 2 $ 4 $ 20 EMEA Enterprise $ 125 $ 4 $ 6 $ 9 $ 5 $ 8 $ 13 $ 6 $ 9 $ 16 $ 10 $ 15 $ 25 $ 125 Midmarket $ 55 $ 2 $ 2 $ 4 $ 2 $ 3 $ 6 $ 3 $ 4 $ 7 $ 4 $ 7 $ 11 $ 55 SMB $ 10 $ 0 $ 0 $ 1 $ 0 $ 1 $ 1 $ 1 $ 1 $ 1 $ 1 $ 1 $ 2 $ 10 AP Enterprise $ 75 $ 2 $ 3 $ 6 $ 3 $ 5 $ 8 $ 4 $ 6 $ 9 $ 6 $ 9 $ 15 $ 75 Midmarket $ 33 $ 1 $ 1 $ 2 $ 1 $ 2 $ 3 $ 2 $ 2 $ 4 $ 3 $ 4 $ 7 $ 33 $ 22.5 $ 33.8 $ 56.3 $ 30.0 $ 45.1 $ 75.1 $ 37.6 $ 56.3 $ 93.9 $ 60.1 $ 90.1 $ 150.2 $ 750.0 Production Plan: Region, Segment, Month, Quarter
- 30. © 2018 SiriusDecisions. All Rights Reserved Generating a Marketing Production Plan Go-to-Market Approach Yields Contribution Commitments Sourced: <10% Sourced: 15%–25% Sourced: 25%–40% Enterprise Mid-Market SMB SiriusPerspective: As sales makes commitments to rep production and quotas, marketing determines its commitments for what needs to be sourced and influenced, and when they are needed.
- 31. © 2018 SiriusDecisions. All Rights Reserved Marketing Performance Planning SiriusPerspective: Using expected marketing performance benchmarks, predict expected contribution to sales and determine an execution setback schedule.
- 32. © 2018 SiriusDecisions. All Rights Reserved Functional Alignment Readiness Check SiriusPerspective: The functional alignment phase ensures the sales and marketing plans are synchronized and the organization has appropriate roles in place. Organization and Roles Production Plan Resources Sales ✓ ✓ ✓ Marketing ✓ ✓ ✓ Build in sales and marketing cycle time✓
- 33. © 2018 SiriusDecisions. All Rights Reserved Execution Readiness Getting to alignment on core processes and infrastructure
- 34. © 2018 SiriusDecisions. All Rights Reserved Execution Readiness: Demand, Process, Metrics and Tools SiriusPerspective: Executing the aligned plans requires consistent, standard processes, measurements and cadences. Have we agreed on demand – sourced and influenced commitments? ? ? Do we have a data management and governance strategy? ? ? Have we agreed on measurement and KPIs? Can we manage and track leads? Questions to Answer Annual Goals Go-to-Market Architecture Sales Roles Sales Coverage Sales Execution Demand Engine Sales Structure Routes to Market Annual Goals Go-to-Market Architecture Marketing Organization and Roles Resource Allocation Functional Readiness Infrastructure Readiness Routes to Market Marketing Go-to-Market Strategy
- 35. © 2018 SiriusDecisions. All Rights Reserved Execution Readiness: Demand, Process, Metrics and Tools Technology and Infrastructure Measurement Data Management Demand Engine Deal Pursuit Sales Process Support and Administration Customer Lifecycle Management Territory and Account Planning SiriusPerspective: Executing the aligned plans requires consistent, standard processes, measurements and cadences.
- 36. © 2018 SiriusDecisions. All Rights Reserved Phase Three: Execution Readiness SiriusPerspective: Assess the plan for issues, concerns and gaps in assumptions, timing, resources and commitments. Agree on shared measurement✓ Establish communication checkpoints✓
- 37. © 2018 SiriusDecisions. All Rights Reserved Aligned Planning Functional Interlock Business Alignment Execution Readiness SiriusPerspective: The sales and marketing planning models have key points of alignment at each phase and stage. Annual Goals Go-to-Market Architecture Sales Roles Sales Coverage Sales Execution Demand Engine Sales Structure Routes to Market Annual Goals Go-to-Market Architecture Marketing Organization and Roles Resource Allocation Functional Readiness Infrastructure Readiness Routes to Market Marketing Go-to-Market Strategy
- 38. © 2018 SiriusDecisions. All Rights Reserved
Editor's Notes
- Marketing and sales teams are often ”given” their annual goals and then must figure out how to operationalize them Pursuing separate tracks throughout the planning process fails to leverage key learnings from each team Failure to align during the planning process results in disconnects during execution, such as demand creation and pipeline acceleration
- Note to Craig Delete PONAP and make the language consistent with framework Duplicate this slide for the next section
- Market and customer dynamics dictate the sales structure, which includes the organizational hierarchy and reporting relationships. In addition to clear command-and-control mandates, the sales structure and its naming conventions feed reporting, lead routing, territory mapping, authorization schedules and compensation systems. The sales hierarchy should align tightly with nancials, so work closely with nance when building it. Set up structural levels and naming conventions by theater (e.g. EMEA), area (e.g. the Benelux countries), region (e.g. Belgium) and territory (e.g. individual provinces. If an organization requires an additional level, a sub-region level can be placed between the region and territory level, but using more than ve levels generally makes the structure overly complex. Theater leaders report directly to the chief sales o cer (CSO), as do a channel leader (if applicable), then sales operations and sales enablement. In some situations, a sales engineering leader reports directly to the CSO. Consider constraints related to nancial and reporting systems, but avoid letting them dictate the structure for the organization.
- Note to Craig Delete PONAP and make the language consistent with framework Duplicate this slide for the next section