This presentation explains how to answer the top 5 questions every sales manager must be able to answer about demand generations to survive in the new Marketing-Led B2B Sales world. More on DataDrivenSalesManagement.com

1. What Every Sales Manager Must Know About
Demand Generation
DataDrivenSalesManagement.com
Copyright 2012 Swayne Hill
Monday, June 25, 12

2. How Many Leads Do I Need For Each Rep?
Sales Rep Waterfall
Jan Feb Mar Apr May Jun Jul
Bookings $50,000 $75,000 $90,000
Customers 2 3 4
Sales Opportunities 6 9 11
SRL 18 27 32
MQL 180 271 325
Assumptions Cv. Rate Time (mo.)
MQL-SRL 10% 1
SRL-Sales Opportunity 35% 0
Sales Opportunity-Customer 33% 3
Av. Deal Size $24,000
Monday, June 25, 12

3. How Can I Affect Lead Quality?
Sales & Marketing Agreement
• Marketing Accountability - Deliver SLA’s required to hit Sales Targets
• Sales SLA - 24 hours from scheduled meeting, transition either to Sales Stage 1, DQ or Back to Nurture
• Sales Accountability - Sales Manager reports weekly back to Marketing on prior SRL disposition
Sample Communication from Sales to Marketing
Name: John Smith
Title: Vice President of Sales Operations
Company: Widgets Are Us
CRM Deployment: 500 seats in Sales & Service
Interest in Cloud9: They have been using Excel spreadsheets for sales forecasting and are looking for a
way to leverage historical patterns to become more accurate. Business recently blew the quarter and did
not see it coming in time to rescue. Visited us at a recent trade show, then pick up a best practice
document from our web site. This is an urgent project for him as handed down from senior management.
Want’s to speak with a sales exec.
Next Step: Initial discovery/requirements call set up for Heather on Wednesday, 7/18 at 1pm
Copyright 2012 Swayne Hill
Monday, June 25, 12

4. When Do I Add Another Sales Rep?
Adding Sales Reps is a function of Bookings Goals and Effectiveness
You have control over...
• Conversion Rates - Sales & Marketing
• MQL volume, ‘top-of-funnel’ - Marketing
• Average Deal Size - Sales
• Quality - Sales & Marketing
• Sales Cycle time - Sales
Sales Team Waterfall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Productive Sales Reps Needed 3 3 4 4 5 5 6 7
Bookings $250,000 $300,000 $350,000 $350,000 $400,000 $425,000 $550,000 $600,000
Customers 10 13 15 15 17 18 23 25
Sales Opportunities 32 38 44 44 51 54 69 76
SRL 90 108 126 126 144 153 198 216
MQL 902 1,082 1,263 1,263 1,443 1,533 1,984 2,165
Assumptions Cv. Rate Time (mo.)
MQL-SRL 10% 1
SRL-Sales Opportunity 35% 0
Sales Opportunity-Customer 33% 3
Monthly Sales Rep Quota $86,000
Av. Deal Size $24,000
Sales Rep Ramp Time 5
Monday, June 25, 12

5. What Are My Leading Indicators to Future Success?
MQL-To-SRL Conversion Trend SRL-To-Opp Conversion Trend
100% 100%
75% 65%
75%
60% 61% 60% 59%
58%
50%
45%
50% 50%
37% 35% 33%
29%
25% 25%
0% 0%
Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun
MQL to SRL SRL to Opp
Opp-To-Customer Conversion Trend Average Deal Size
100% $24,000
$24,000
$23,000 $23,000
75% $18,000 $20,000 $20,000
$19,000
50% $12,000
33% 35% 33%
30% 29% 31%
25% $6,000
0% $0
Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun
Opp to Customer Average Deal Size
Copyright 2012 Swayne Hill
Monday, June 25, 12

6. How Do I Know When I’m In Trouble?
Based on actual conversion trends, a given Average Deal Size and no change in
the new MQL growth, you’ll fall short of the sales target for the last 6 months of this
year unless you:
1. Rescue the SRL-to-Opp
30 30
Conversion Rate trend freefall
2. Improve conversion rates for MQL-
SRL and Opp-Customer to become
26 26
more effective
25
24 24 24 3. Grow Average Deal Size faster and
22
23
become more productive with a
21
21
given sales pipeline
4. Add Sales Reps and expect them
to generate a % of their own sales
pipeline - the Brute Force approach
Jul Aug Sep Oct Nov Dec
Projection Quota
Monday, June 25, 12

7. What Every Sales Manager Must Know About
Demand Generation
DataDrivenSalesManagement.com
Copyright 2012 Swayne Hill
Monday, June 25, 12