Infographic – The Marketer’s Guide to B2B Sales Announced by VP Marketing On Demand
Use validated B2B sales conversion ratios as assumptions in the sales funnel and reverse-engineer lead targets in demand generation and demand management planning, to support the sales process.
Insights into the B2B sales process, based on survey respondents, include:
• 34% of forecasted deals convert to closed won deals
• 36% of B2B sales and marketing teams use budget, authority, need and timeframe to define a qualified lead in the sales process
• 42% reveal that the sales process includes 1-5 defined steps
• 31% state that the average sales cycle, as measured by the sales funnel, is 6-12 months
• 20% indicate that the average sales price documented in the sales force automation system is $25K -$50K
• 46% convey that the sales force automation system in place is Salesforce.com
A marketing and sales plan is doomed from the start if the assumptions used in the plan are inaccurate. Often times, marketer’s begin crafting demand generation and demand management plans but the planning process comes to a halt when metrics about the sales funnel, specifically conversion ratios, can not be located. In some situations, historical data is not available from pipeline management reports and in other situations the sales force automation system may not have historical data or the data may be dirty. When historical data for the sales process (sales funnel) is not available, a best practice is to use industry averages or survey data, until it can be replaced with actual data.
Peter Buscemi, CMO and founder of VP Marketing On Demand, states that “the binding agent for sales and marketing synchronization is for both organizations to rally around the bookings or revenue target and that requires reverse engineering sales qualified leads, marketing qualified leads and responses or inquiries from the bookings or revenue target”. Buscemi continued by saying that “if an organization does not have accurate assumptions for the average sales price, average sales cycle and conversion ratios for the sales funnel that there is a high probability that finger pointing will soon follow. However, if there are no pipeline management reports that decompose the sales process, marketing may not have access to metrics that serve as critical assumptions in the demand generation and demand management planning process.”
Proactive management of the sales funnel is critical as a leaky sales funnel wastes program dollars, drains productivity and, worst of all, feeds the sales funnels of competitors. Documenting, monitoring and managing the conversion ratios in the sales funnel through dashboards, reporting and KPIs will provide the insight for effective pipeline management. A best practice is to establish a baseline for pipeline management through an assessment that objectively and quantifiably documents: the current state of people, processes and systems; the desired state; and what is required for the incremental improvement.
About VP Marketing On Demand
VP Marketing on Demand was founded by Peter Buscemi, a CMO with 30 years experience that spans start-ups and Fortune 500 companies. The sole purpose of VP Marketing On Demand is to provide marketing insights and a huge head start to those tacking key marketing projects, through managed, repeatable processes. Over decades, in working with various boards and executive management teams (CEO's, COO's, VP's Sales and Development)