Opportunity Scoring Models to Accelerate Revenue 1. Are They Hot or Not: Guidelines for
Scoring Pipeline Opportunities
Laura Patterson
President & Author
laurap@visionedgemarketing.com
-Twitter:@LauraVEM
-Facebook: http://
www.facebook.com/pages/VisionEdge-Marketing/27870383215975
2. Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 2
Welcome and Program Agenda
The Best-in-Class vs. The Rest
Developing a Scoring Schema and
Model
3. Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 3
Partners in Creating, Retaining, and
Growing the Value of Customers
Marketing and Sales =
the fundamental
relationship for attracting
buyers
The relationship > than a
simple handoff at the
point a qualified
opportunity is generated
Is Yours Broken?
4. Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 4
9 Tell Tale Signs the Marketing
and Sales Relationship is Broken
1. Work from separate
opportunity pipeline
or sales funnel
models
2. Poorly defined
handoff
3. Use and report on
different
performance metrics
4. Few or No jointly
defined activities that
will improve
opportunity flow in
terms of quality,
quantity, and timing
5. No common
vocabulary or
language
5. Marketing doesn’t solicit
appropriate input from Sales
when drafting the Marketing
plan, defining the
opportunity pipeline, or
creating the opportunity
scoring model
6. Sales keeps Marketing away
from customers
7. Sales & Marketing exclude
each other from meetings
8. Too much time is spent on
dispute resolution or the crisis
of the moment
9. Sales and Marketing attend
different training programs,
events and other learning
opportunities
5. Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 5
Six Primary Culprits
Lack of an integrated marketing and sales
prioritization and planning process
Poor alignment between the sales process and the
customer’s buying process.
No formally defined steps for the selling process.
An ineffective process for qualified opportunity
dispersion and management
Lack of marketing systems, data and reports to
continuously modify and adjust marketing spend to
meet sales requirements or market dynamics.
No formal system for tracking marketing’s role in
customer acquisition, retention and value creation
DON’T TAKE JUST OUR WORD
6. Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 6
The State of Marketing Generated Opportunities
Marketing
generated
opps, 33.2%
Non-
marketing
generated
opps, 66.8%
Where Do Opportunities Come From?
56%
40%
1%
3%
60%
35%
3%
1%
0% 50% 100%
Needs
Improvement
Meets
Expectations
Exceeds
Expectations
DK
Lead Quantity
Lead Quality
Sales Perception of MarketingGenerated Opps
Source: CSO Insights, 2012
• Marketing Not
Meeting
Expectations
• Sales Needs to
be a Better
Partner
7. Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 7
Opportunity Management Challenges
41%
30%
30%
28%
28%
28%
26%
0% 20% 40% 60%
Lead quality
Marketing data quality/accuracy
Lead quantity
Conversion/response rate to marketing
campaigns is too lov
Leads stuck in the funnel
Marketing /sales alignment
Funnel leakage (qualified opps not getting
actioned)
OpportunityManagementChallenges
Aberdeen, May 2012, n= 163
Quality Matters
8. Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 8
70% 69% 67%
50%
45%
39%38% 38%
29%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Process to establish/refine
opp qual criteria btwn sales
& marketing
Clearly defined process to
transfer opps to sales or
return for nurturing
Defined, standardrized and
documented opp
management process
BIC
Ind Avg
Laggards
Aberdeen, May2012 n=163
The State of Opportunity Management
CSO Insights, 2012
Systems
and
Processes
Yes, 42.6%
No, 57.4%
Has Your Organization Implemented an
9. Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 9
The Best-in-Class Outpace the Pack
70% 69% 67%
50%
45%
39%38% 38%
29%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Process to establish/refine
opp qual criteria btwn sales
& marketing
Clearly defined process to
transfer opps to sales or
return for nurturing
Defined, standardrized and
documented opp
management process
Opportunity Process Maturity
66%
59% 59%
42%
25% 25%
36%
28% 27%
0%
10%
20%
30%
40%
50%
60%
70%
Ability to define multi-step
opp nurturing processes
Utlize opportunity scoring
to progress lead
Process bwtn sales &
marketing to define opp
scoring criteria
BIC
Ind Avg
Laggards
Opportunity Scoring
Aberdeen,May 2012,n=163
BIC
•Partner
•Define
Processes,
Criteria
•Standardize
•Implement and
Use
10. Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 10
Traditional Sales Funnel Outdated
The traditional sales
funnel is 112 years-old!
Conversion rates are
unsustainable. Takes
>1000 opps/sale.
Time to convert is
lengthening. The
average time to create
a large B2B tech
customer has
lengthened by 15% in
the last year.
Buyers find online search
and supplier websites
more valuable sources
for buying information
than F2F.
(IDC)
The Empowered Buyer is killing the Traditional Sales
Funnel – today’s buyers
more sophisticated
may know more than sales people. 55% of
buyers think sales people are only somewhat
or not prepared for initial meetings.
MLC 2011 Study found that B2B buyers are
57% of the way thu their purchase process
before connecting with sales,("Influencing the
Newly Empowered Customer.")
11. Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 11
Discard the Funnel
Old -Stages defined by the company and
means
a lot more has to go in at the top
than what comes out at the bottom.
lots of opportunities drop away at
each stage of a long sales process.
Old Sales Stages example:
Initial Inquiry
Initial Communication - BANT
Initial Meeting/Needs Assessment
Solution Presentation
Customer Evaluation
RFP
Negotiation
Verbal Commitment
Written Purchase Order/Contract
Delivery
Payment
The sales funnel is a
common tool used by
the sales organization
to understand the
flow of business
opportunities
Need a new approach –customer buying process defines the stages.
12. Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 12
New Model: Customer Buying Behavior PLUS Fit
The term itself, customer buying
pipeline, suggests this process is
something owned by BOTH sales
AND marketing
It’s all about customer buying
signals – ENGAGEMENT BEHAVIOR
A pipe suggests that
different marketing
programs may be needed
at different stages along
the way and that
segmentation, targeting,
and qualification are
extremely important to
reducing waste and
customer acquisition costs.
13. Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 13
Establish the Variables for the
Behavioral Side of the Model
Contact - Demonstrates some degree of interest,
“observable hello”- share basic contact info. Doesn’t
mean they are eager to get to know you better.
Connect – Establish some type of rapport – “follow,
friend, like”
Conversation - A steady flow of information back and
forth “comments, demos, f2f meetings”
Consideration - applying careful thought to your offer
and company and weighing their options “rfq, rfp, due
diligence”
Consumption – Trial, test, order
Community – Advocate, refer, rebuy
Observable Measurable Incremental Behaviors
14. Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 14
Define When An
Opportunity is a Good
Match
Size
Relationships
Need
Budget
Problem
Establish the Value
Ranges
Add the Fit Side to the Model
Creates Fit – based
Opportunity Scoring
15. Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 15
Concept Illustration
Fit:
Vertical
In a target vertical where we have
domain expertise – 5 pts
In a target vertical but we don’t have
domain expertise – 3 pts
Not in a target vertical – 0 pts
Problem
Ideally suited to solve their problem – 5
pts
Our product will solve their problem with
some customization – 3 ps
Our product will not solve their problem
without a major investment on our part –
0 pts
Contact
Contact is decision maker – 5 pts
Contact is influencer/user – 3 pts
Contact is outside target buying/using
group- 0 pts
Size/Revenue
Budget
Behavior:
Contact:
Completes website registration form – 5
pts
Follows on Twitter – 3 pts
Subscribes to company newsletter – 3 pts
Connection:
Attends third party sponsored webinar – 3
pts
Attends company only webinar – 5 pts
Downloads white paper – 2 pts
Conversation:
Provides product specification and buying
criteria via email– 5 pts.
Requests and participates live online
demo – 10 pts
Consideration:
Requests in person or webex meeting – 5
pts
Requests and Contacts references – 5 pts
Purchases paid trial – 10 pts
16. Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 16
Concept Illustration
FIT
BEHAVIOR
low
high
high
Sales worthy and ready
Nurture
Minimal Future
Effort & Investment
Revisit marketing mix
17. Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 17
Scoring Model Development Process
Step 1: Define the
customer buying
process and each
incremental behavior
Step 2: Validate
Step 3:
Define the
Fit Criteria
Step 4:
Establish Values and
Metrics
Step 5:
Finalize, Document.
Configure & Implement
Step 6: Monitor, measure
and report results
and payback
18. Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 18
This is a lot of work, why bother?
An integrated marketing and sales prioritization
and planning process
Better alignment between the sales process and
the customer’s buying process.
Formally defined approach to the buying and
opportunity management process.
An effective model and process for qualified
opportunity dispersion and management
Better marketing systems, data and reports to
continuously modify and adjust marketing spend
to meet sales requirements
A formal approach for tracking marketing’s role
in customer acquisition, retention and value
creation
19. Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 19
Take the Leap:
Create an Opportunity Scoring Model
Change can be daunting, but a
scoring model is a key to success
What Does it Take?
Data and collaboration
with customers and sales to
build the model
Start from the outside in,
leverage an expert
Begin with a blank slate, not
your current paradigm
Test and learn culture
Don’t Waste Your Bullets
White Paper
20. Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 20
Thank you and Resources
Please email your questions to
Laurap@visionedgemarketing.com
Learn More
Download Don’t Waste Your Bullets white
paper
Purchase our e-Book Gone Fishin’:
Marketing and Sales Alignment for
Finding, Hooking, Keeping and Growing
Customers – a concise book that
effectively guides you through the
process of finding, hooking, keeping, and
growing profitable customers by
explaining how to define, understand,
and cultivate this core relationship.
Self-paced workbook, Using the
Customer Buying Process to Align Sales
and Marketing & Create 3 Key Sales
Enablement Tools
www.visionedgemarketing.com
21. Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2012 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 21
Founded in 1999 and headquartered in
Austin, TX, VisionEdge Marketing, Inc.
serves more than 100 customers, and
counting.
VisionEdge Marketing, Inc. is a data-
driven and metrics-focused marketing
firm that specializes in improving
marketing performance and creating
competitive advantage designed to
attract, secure and retain profitable
customers.
Services Include:
Marketing performance
management
Marketing and sales alignment
Product and strategic marketing
Pipeline re-engineering
Professional development
About VisionEdge Marketing – Experienced Practitioners
Editor's Notes VisionEdge Marketing www.visionedgemarketng.com Founded in 1999 and headquartered in Austin, TX Serves more than 100 customers and counting A data-driven and metrics-focused marketing firm that specializes in improving marketing performance Services Include: Marketing performance management Marketing and sales alignment Product and strategic marketing Pipeline re-engineering Professional development © 1999-2011 VisionEdge Marketing, Inc. All Rights Reserved Page