Marketing and Sales AlignmentMass TLC CMO Peer Group

Today’s Conversation

• Outline the Lionbridge Marketing and Sales journey towards alignment

• Four focus areas:

1. Account Seg and Strategic Planning

2. Revenue Commitments & Demand Gen

3. Message Management

Our Global Reach

• Market leader in language, global digital and technical writing services

• 6,000+ Employees

• 50 offices in 27 countries

• $560 million annual revenue (2015)

• Clients across 10 industries

• Over 800 brands served

• 64 of Interbrand’s Best Global 100 Brands

• Supporting 380 languages for 100+ markets

Three Years Ago…

SBI Proprietary & Confidential. All rights reserved. 52/1/2017

ENVIRONMENTAL SCAN OF CURRENT STATE

Process

Planning

Strategy

Support

Execution

Organization

Why Focus on Better Alignment?

• Internal mission to become more customer-centric

• Focus on increasing organic growth

• Focus on profitable revenue

Our First Hurdle: Aligning Around The Journey

10/29/2015Sales call

Hybrid Journey Customer: NA-based FiServTotal Purchase Cycle: 15 monthsBookings value: $500k

12/7/20133/1/2016-Closed-W

11/05/2015Sales Email

11/01/2015Proposal

12/18/2015 –3/1/2016

Sustained sales correspondence

/discussion

1/4/2014Sales call: No direct contact

12/11/2013Campaign Email

1/23/2014Campaign Email

4/15/2014Sales call: No direct contact

7/18/14Attends Webinar

8/7/14Campaign Email

Hybrid Journey Customer: EUR-based CPG Total Purchase Cycle: 23 monthsBookings value: $350k

4/24/20143/21/2016-Closed-W

10/9/2014Campaign Email

11/10/2014Campaign Email4/24/2014

Attends Event

8/5/2014Campaign Email

4/25/2014Sales Email

6/18/2014Sales Email

9/16/2015Sales Email

12/10/2015Proposal

12/14/2015 –3/10/2016

Sustained sales correspondence

/discussion

5/30/2014Sales call: No direct contact

The Perception Gap: Who Does What?

Not in the Market

Stimulated

Problem Definition

Options

Evaluation

Final Recommendations

Execution

Marketing

Sales

Not in the Market

Stimulated

Problem Definition

Options

Evaluation

Final Recommendations

Execution

Marketing

Overlap

Then Now

Sales

Where We Decided to Focus

Drivers of Sales-Marketing Alignment:

• Common objectives

• Joint planning

• Account segmentation

• Messaging

• Demand Gen

• SLAs

• LDRs

• KPIS and ROI

• Analytics

• Tech stack

• Closed-loop feedback

• Education

Account Seg and Strat Planning

13

ACCOUNT SEGMENTATION IS THE FOUNDATION FOR SALES & MARKETING SUCCESS

Quota Setting

Territory Design

Talent Management

Compensation

Account Prioritization &

Coaching

Demand Generation, Lead Management

Lionbridge

Account Potential

14

ACCOUNT SEGMENTATION WILL PRODUCE A PRIORITIZED UNIVERSE OF CUSTOMERS AND PROSPECTS

Account Score

Propensity-to-Buy Factors

Growth & Predictive Factors (Y-o-Y Growth %)

Ideal Company Profile Factors

Firmographic Factors (Revenue/Employee

size)

Account Potential

Segment Potential – Over all

spend of other similar

companies

- Industry standards

- 80th Percentile of current

spend

- Share of Wallet - % of spend

that LIOX has

L M H

H

M

L

Potential

Pu

rsu

e

Prioritized

Deprioritized

Prioritized

Accounts

“Who should we pursue?” “How much can they spend?”

“Where should all resources

(people, money and time)

be allocated?”

What We Learned

SBU Planning Process

• Breaks-down planning into more manageable efforts

• Joint Accountability

• Iterative Process

– Provides opportunity for each side to challenge assumptions

– Ensures we are being data-driven

Go Forward

• Joint GTM Planning Process

• Refresh Account Seg data (Marketing)

• Refresh ideal customer profile (Marketing)

– Leverage Predictive Analytics

• Ranking priority accounts (prospect and existing)(Sales)

• Negotiate Marketing programs/support by SBU (Sales, Marketing)

– ABM programs

– Lead Development alignment

Revenue Commitments & Demand Gen

The View of Demand Generation

Sales Marketing

202/1/2017 202/1/2017

BUILDING TO TARGET CONTRIBUTION

0%

17%

25%

30%

8%

17%

3%

8%

17%

25%

0%

5%

10%

15%

20%

25%

30%

35%

Baseline 12-months 24-months 36-months

Marketing Contribution % of Sales Opportunities

Lionbridge Goal Lionbridge Actual B2B Benchmark

Nov 2016 Nov 2017 Nov 2018Nov 2015

TBDTBD

75%

25%

Sales

Marketing

When starting from a zero baseline,

the average b2b marketing team

requires 3 years to maturate to 25%

% o

f S

ale

s O

pp

ort

un

itie

s

Aligned on Commitments

• MKTG signs-up for revenue commitments

• Specific funnel targets based on previous performance

• Drives SBU discretionary budget

Measurement and Reporting

Activities/Tactics Demand Gen Performance Cost-effectiveness

Personnel Field Marketing, Sales teams

Sales Leaders, Demand Gen leader, CMO, GM

GM, CMO

Cadence Weekly, Bi-weekly Monthly Quarterly

Metrics • Overview of activities

• Review of lead data

MKTG performanceagainst targets:• Revenue

• Close rates• Pipeline

• Conversion rates• Leads• Velocity

MKTG ROI:• Cost/• Investment to Pipe,

Investment to Rev• Avg. Opp Size• Sales performance• CAC

Message Management

#1 Reason Reps Don’t Make Quota

Inability to articulate differentiated value in front of the customer

The Perception Gap: Who Does What?

Not in the Market

Stimulated

Problem Definition

Options

Evaluation

Final Recommendations

Execution

Marketing

Sales

Not in the Market

Stimulated

Problem Definition

Options

Evaluation

Final Recommendations

Execution

Marketing

Overlap

Then Now

Sales

We needed a different approach

• This is a radical change of approach for many Reps

• Scripted sales conversations have not been a Lionbridge tradition

• Product knowledge is uneven

• A new buyer type with different expectations of the sales experience

Getting messaging adopted

Proficiency

ProductMessage

Salesperson

Formal Product

Training Rollout Approaches

38% Limited demonstration of

message proficiencyPractice & Role Play is limited

22%

87% said less than ¾ of their sales force is delivering the message as

intended

A social learning approach

Observe Imitate Feedback Repetition Certify

Elements

Videos Storyboard Script PPTX Related Research

Commercial Tribe – Reps place to practice

Applications– Messaging Certification

– Onboarding

– Team communications

– Coaching

– Knowledge Sharing

– Win/Loss stories

– Case studies

Adoption and Practice

30

93% have logged in within the last month

5 practices per rep

Increased ASP and Deal Size

Improved Rep Confidence Greater Return on CVI investment

Over 500 Practices

500+

Three Years Later