Post on 16-Apr-2017
transcript
Self Serve > High-Touch
Full funnel visibility > Complex buying process
19 Employees > 73 Employees
Channel problems > Process problems
Big Customer Churn > Negative Revenue Churn
The last 27 months
you need more than A great product to scale
An effective system for improving process and operations
can be a competitive advantage.
The Scooby Doo PhaseYou sort of know what you’re doing. You usually solve the mystery. But mostly, you’re sti l l a
bunch of bumbling idiots.
The Oceans 11 PhaseA team of special ized people with defined roles. You’re focused, coordinated and executing
based on a strategic plan.
Where are you?
Wizard of Oz Scooby Doo Oceans 11
Different parts of your business may be at different stages.
Sales & marketing are on the same spectrum
Sales Sales Sales Demand Marketing + Sales Brand & Demand + Sales
*It doesn’t mean brand doesn’t matter early on – but your area of focus is different.
Customer Success is the heart of your growth
Support (reactive) Support & Success Support, Success, Advocacy
Who is YOUR BREAD AND BUTTER
Everyone! More focused Other growth layers
Nope. It’s not. Figure out P/M fit. It isn’t always super clear.
Who is YOUR BREAD AND BUTTER
Everyone! More focused Other growth layers
Who is your bread and butter? Can you create a scalable and
repeatable process with predictable revenue growth?
Nope. It’s not. Figure out P/M fit. It isn’t always super clear.
Who is YOUR BREAD AND BUTTER
Everyone! More focused
If your bread & butter segment is scalable and repeatable, it might make sense to to explore other
opportunities.
Other growth layers
Who is your bread and butter? Can you create a scalable and
repeatable process with predictable revenue growth?
Nope. It’s not. Figure out P/M fit. It isn’t always super clear.
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Customer
Lead
Marketing Qualified Lead
Sales Qualified Lead
Opportunity
CustomerNikki Mary, Jenn & David
Self-serve/low touch funnel
Marketing & sales engine
Lead
Marketing Qualified Lead
Sales Qualified Lead
Opportunity
Customer
What happened when we
picked one?
ü More focused
ü Better process
ü Higher Value (ARPC & LTV)
ü Negative Churn
Lead
Marketing Qualified Lead
Sales Qualified Lead
Opportunity
Customer
3 things that had to happen:
ü Revamp analytics set up
ü Shift in growth tactics
ü Define process and criteria
for handing leads to sales
(this needs ongoing refinement
and will change as you scale)
You might make a different decision but remember…
“It’s hard to build a big business
out of small deals.”
Resource: mattermark.com
How DO you know which PERSONA?*Product/Market fit
Unit Economics
Opportunity
What do you want?
This gets more complex as you go upmarket.
How DO you know which PERSONA?
If you’re focused on mid-market and enterprise companies with a
complex buying process, you may have a handful of “personas” that
you need to learn about.
@Uberflip
These are the ones most likely to be your first point of contact. They will either reach out to you themselves or will be the ones you will most frequently contact.
Marketing Mary Demand Jenn Do-it-all David Strategic Samantha
@Uberflip
Champion25-39
Purchase Process
Research: Events, peers, Google
Events:INBOUND, CM World, other content-specific events
Blogs & Influencers:HubSpot blog, MarketingProfs, CMI, LinkedIn Pulse
Social Media:
Preferred Content: Want specific, actionable pieces of content. Short format (blog or video). Things that will make them better at their job.
Watering Holes
Marketing Mary Customers
Adriane Holter, ImpinjFlora Cheung, LoblawCassandra Jowett, Influitive
Victoria Hoffman
Kelly O’Hara
Uberflip’s Marketing Marys
@Uberflip
Job Role
Years Experience: 3-10
Essential Duties:Creates content. May be in charge of strategy, sometimes also in charge of social.
Tools:Google Docs, CMS, Marketing Automation
Common Titles:Marketing Coordinator, Specialist, Manager, sometimes Director. May have content or similar specialization in title. In some cases, Product Marketing Manager.
Goals & Initiatives:Want to write more and be creative. Looking to learn as much as possible, especially around SEO, analytics, and strategy. Want to move up in company.
Challenges:Creating engaging B2B content that attracts views. Proving that long-term strategy is valuable and not everything has immediately measurable ROI. Demand to create and edit content for entire marketing team/entire buyer journey.
Room for Growth:Wants to learn more about analytics, SEO, creating a long-term strategy.
@Uberflip
Focus on engagement, shareability, awareness, and content creation / experience audiences love.If reaching out by email, try to stand out. She can see through automated emails -- use personality.
Ideal Messaging
Creative types, usually interested in writing or have a writing background
Find it difficult to find time to be creative due to execution of tasks
HATE being reached out to — they need to GSD!
Title worth calling out: Product Marketing
Notable Learnings
“By not deciding on one of these personas, we paid a gigantic, invisible ‘optionality’ tax.”
- Brian Halligan, CEO of HubSpot
From startup to scale up
Resource: readthink.com
Initial Touch (Champion)
Influencers &Decision Makers
Budget Approval(YAY!)
Verbal Yes (YAY!)
Procurement (SHIT)
EVERYONE needs to understand the buying process.
Your Funnel
Lead
Customer
Lead
Qualified Lead
Customer
Lead
Marketing Qualified Lead
Sales Accepted Lead
Sales Qualified Lead
Opportunity
Customer
Your FunnelLead > MQL > SAL > SQL > OPP > Customer
Opportunity Stages
1. Evaluating
2. Recommended
3. Verbal Yes
4. Procurement
5. Closed (Won/Lost)Opportunity
Customer
Sales Qualified Leads
Sales Accepted Leads
Marketing Qualified Leads
Leads
Your FunnelA linear funnel is overly simplistic. It’s dynamic and bi-directional.
Opportunity
Customer
Sales Qualified Leads
Sales Accepted Leads
Marketing Qualified Leads
Leads 1. People may move up and
down your funnel
2. Sales & marketing functions
overlap at every stage of the
funnel
Your FunnelA linear funnel is overly simplistic. It’s dynamic and bi-directional.
Opportunity
Customer
Sales Qualified Leads
Sales Accepted Leads
Marketing Qualified Leads
Leads 1. Feedback mechanisms to
enhance quality
2. Coordinated campaigns at
every stage
3. Process for re-engaging lost
leads & accounts
Your Funnel vs. their journey
Awareness Interest Evaluation Purchase Decision Advocacy Repeat
marketing sales
marketing sales
marketing marketing
marketing and sales
sales marketing and sales
Your Funnel vs. their journey
Awareness Interest Evaluation Purchase Decision Advocacy Repeat
blog
social
PPC
SEO
webinars eBooks
whitepapers
retargeting demo
nurture
sales customer board
customer webinar
expansion referral campaign
Opportunity
Customer
Lead ManagementNurture, Scoring, Data Enrichment, Lead
Recycling
Sales EnablementMessaging, Positioning, Collateral
Sales Qualified Leads
Bi-‐directional FunnelMechanisms in place to
facilitate feedback loop
between marketing and
sales to enhance lead
quality and re-‐engage
lost opportunities.
Sales Accepted Leads
Marketing Qualified Leads
LeadsCampaigns & ProgramsGrade My Stack, The Uberflip Experience, Content
Events & Partner Marketing, Content Syndication,
Publishers, PPC, ABM, Outbound Lead Engine
Customer Marketing
Marketing engine
Opportunity
Customer
Lead ManagementNurture, Scoring, Data Enrichment, Lead
Recycling
Sales EnablementMessaging, Positioning, Collateral
Sales Qualified Leads
Demand
Generation
Sales Accepted Leads
Marketing Qualified Leads
LeadsCampaigns & ProgramsGrade My Stack, The Uberflip Experience, Content
Events & Partner Marketing, Content Syndication,
Publishers, PPC, ABM, Outbound Lead Engine
Customer Marketing
Marketing engine
WTF is demand gen?
Demand generation is the engine that generates leads, identifies and nurtures qualified prospects, and
optimizes conversion throughout the sales cycle.
(psst… demand gen is marketing)
Opportunity
Customer
Nurture campaigns, data
enrichment, lead management
processes
Sales collateral, sales training,
messaging & persona, reporting
Sales Qualified Leads
Core Operations
Sales Accepted Leads
Marketing Qualified Leads
LeadsMessaging, design , asset creation
content marketing, optimization,
campaign management.
Lead capture, source tracking, lead scoring.
Usage data, account health, advocacy & referral
Strategies & Tactics• Content (syndication), webinars, partner marketing.Lead Generation
• PPC (Social & Search), RetargetingOnline Advertising
• Large niche publishers with a substantial reader basePublishers
• Highly targeted, niche topic and audienceConferences
• Partner marketing (webinars, ebooks, events etc.)Partners
• Content, SEO , social etc.Organic Leads
What fuels demand gen?
Content Marketing (people need to be nurtured)
Direct Channels (are people ready to buy)
Event marketing (volume vs. deal size)
Account based marketing (ABM)
CORE MARKETING FUNCTIONSContent Marketing
Audience Growth
Lead Generation
Awareness
Demand Generation
Lead Generation
Lead Nurture
Operations & Insights
EventsMarketing
Lead Gen / Nurture
Customer Nurture
Awareness
Product Marketing
Sales Enablement
Product Feedback
Product Positioning
Communic-ations
Sales Enablement
Field Marketing
Advocate Marketing
Brand Marketing
Other possible functions
Ops & Analytics
Team structure & growth
How you build and structure your team depends on where
you need to focus your marketing and growth efforts.
Identifying key signals for lead quality, outreach
indicators and intent to purchase is one of the
most important demand gen functions.
Quality, indicators & intent
Lead Scoring
Predictive Analytics
*But we also need to understand the pre-purchase
indicators where you can prompt action
How do we know intent?
Site re-design
Fiscal yearend
Ramp up in content strategy
Investment in technology
Change in role
Industry growth
Outreach indicators
MQLs
Leads
SALs
SQLs
OPPs
A respondent to a marketing campaign who doesn’t yet meet our minimum qualification and behaviour
criteria
A lead who makes the minimum fit criteria and has displayed enough interest to be handed off to sales. MQLS are scored and categorized as cold, warm,
or hot leads
An MQL that has been accepted by the BDR for further qualification to determine pipeline-readiness
An SAL that has been identified as pipeline-ready but needs further qualification to determine the
probability of converting to an opportunity
An SQL that has progressed to an opportunity and is now committed to pipeline
DEFINITION ACTIVITY
Lead gets entered into the appropriate segmented nurture program
Lead has achieved a score of 35 or higher and is entered into a new MQL nurture program
BDR is identifying prospects requirements and probing to understand the context for buyers’ decision
AE is actively engaged in meaningful dialogue to validate the use case, identify the champion, and schedule a demo
Uberflip has been introduced to a wide audience and there is general team consensus around solution need, value and fit
LEAD RECYCLING: the handoff to sales took place but the prospect doesn’t respond, doesn’t have budget or some other roadblock. Sales believes there is potential for the future. The lead gets placed back into the funnel for further nurturing with the goal of re-engagement at a later time.
LEAD LIFECYCLE
EXAMPLE
MQLs
Leads
SALs
SQLs
OPPs
A respondent to a marketing campaign who doesn’t yet meet our minimum qualification and behaviour
criteria
A lead who makes the minimum fit criteria and has displayed enough interest to be handed off to sales. MQLS are scored and categorized as cold, warm,
or hot leads
An MQL that has been accepted by the BDR for further qualification to determine pipeline-readiness
An SAL that has been identified as pipeline-ready but needs further qualification to determine the
probability of converting to an opportunity
An SQL that has progressed to an opportunity and is now committed to pipeline
DEFINITION ACTIVITY
Lead gets entered into the appropriate segmented nurture program
Lead has achieved a score of 35 or higher and is entered into a new MQL nurture program
BDR is identifying prospects requirements and probing to understand the context for buyers’ decision
AE is actively engaged in meaningful dialogue to validate the use case, identify the champion, and schedule a demo
Uberflip has been introduced to a wide audience and there is general team consensus around solution need, value and fit
LEAD RECYCLING: the handoff to sales took place but the prospect doesn’t respond, doesn’t have budget or some other roadblock. Sales believes there is potential for the future. The lead gets placed back into the funnel for further nurturing with the goal of re-engagement at a later time.
LEAD LIFECYCLE
MQLs
Leads
SALs
SQLs
OPPs
A respondent to a marketing campaign who doesn’t yet meet our minimum qualification and behaviour
criteria
A lead who makes the minimum fit criteria and has displayed enough interest to be handed off to sales. MQLS are scored and categorized as cold, warm,
or hot leads
An MQL that has been accepted by the BDR for further qualification to determine pipeline-readiness
An SAL that has been identified as pipeline-ready but needs further qualification to determine the
probability of converting to an opportunity
An SQL that has progressed to an opportunity and is now committed to pipeline
DEFINITION ACTIVITY
Lead gets entered into the appropriate segmented nurture program
Lead has achieved a score of 35 or higher and is entered into a new MQL nurture program
BDR is identifying prospects requirements and probing to understand the context for buyers’ decision
AE is actively engaged in meaningful dialogue to validate the use case, identify the champion, and schedule a demo
Uberflip has been introduced to a wide audience and there is general team consensus around solution need, value and fit
LEAD RECYCLING: the handoff to sales took place but the prospect doesn’t respond, doesn’t have budget or some other roadblock. Sales believes there is potential for the future. The lead gets placed back into the funnel for further nurturing with the goal of re-engagement at a later time.
LEAD LIFECYCLE
Sales and Marketing Need to Agree On EVERYTHING
MQLs
Leads
SALs
SQLs
OPPs
A respondent to a marketing campaign who doesn’t yet meet our minimum qualification and behaviour
criteria
A lead who makes the minimum fit criteria and has displayed enough interest to be handed off to sales. MQLS are scored and categorized as cold, warm,
or hot leads
An MQL that has been accepted by the BDR for further qualification to determine pipeline-readiness
An SAL that has been identified as pipeline-ready but needs further qualification to determine the
probability of converting to an opportunity
An SQL that has progressed to an opportunity and is now committed to pipeline
DEFINITION ACTIVITY
Lead gets entered into the appropriate segmented nurture program
Lead has achieved a score of 35 or higher and is entered into a new MQL nurture program
BDR is identifying prospects requirements and probing to understand the context for buyers’ decision
AE is actively engaged in meaningful dialogue to validate the use case, identify the champion, and schedule a demo
Uberflip has been introduced to a wide audience and there is general team consensus around solution need, value and fit
LEAD RECYCLING: the handoff to sales took place but the prospect doesn’t respond, doesn’t have budget or some other roadblock. Sales believes there is potential for the future. The lead gets placed back into the funnel for further nurturing with the goal of re-engagement at a later time.
LEAD LIFECYCLE
Set Expectations -- SLA
CAC
Unit economics
LTV
Cost of Sales & Marketing/ #of new customers
Avg. MRR x Customer Lifetime
CustomerLifetime
1 / Churn Rate(months or years)
Resource: forentrepreneurs.com
CAC
problems
LTV
Are you calculating “fully loaded” CAC?
Do you really know LTV?
CustomerLifetime
Is churn even accurate?
Resource: forentrepreneurs.com
CAC RATIO
Unit economics
PAYBACKLTV to CAC Ratio
Guideline = 3+
Efficiency/Scalability
Months to recover CAC
Guideline = <12 months
Cashflow/Profitability
Source: forentrepreneurs.com
Company A Company B
CAC $1000 $1000
MRR $100 $100
ACV (MRR*12) $1200 $1200
Payback 10 months 10 months
Churn 2.5% 2.5%
LTV (MRR / Churn) $4000 $4000
CAC Ratio 4 4
Adapted from: sixteenventures.com
Company A
Focus on decreasing CAC
Pay less per customer
Find cheaper channels
Increasing Tofu cconversion
Focus on TOFU metrics
Company B
Focuses on CAC efficiency
Better marketing/sales process
Evaluate pricing
Shorten payback period
Increase customer value
Decreasing CAC vs. CAC Efficiency
Adapted from: sixteenventures.com
*Increasing ACV and moving to annual payments will allow for increasing spend to drive faster / more growth and outspend competitors.
Company A Company B
CAC $800 (-20%) $1000
MRR $100 $167
ACV (MRR*12) $1200 $2000
Payback 8 months 6 months
Churn 2.5% 2.5%
LTV (MRR / Churn) $4000 (no change) $6680 (+67%)
CAC Ratio 5 (+25%) 6.68 (+67%)
Adapted from: sixteenventures.com
Yes, these are totally made up.
But they do illustrate the potential of focusing on efficiency. While in some
cases, focusing only on decreasing costs might be warranted, it may also
decrease lead quality, lowering your customer conversion rate (and
subsequently effecting CAC negatively).
What’s your stack?
Email marketing
CRM
Analytics
Optimization
Marketing Automation
Campaign Management
Data enrichment
Sales automation
Predictive Analytics
Multi-touch attribution
Programmatic
Personalization
Automating bad marketing is still
bad marketing.
Don’t jump to the tech too soon. You need the foundational elements
in place first – good people, good process and good marketing.