Funnelholic's Book of Funnels

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  1. 1. Focus Experts Guide:Sales and Marketing Pipeline and Funnel ModelsFocus ResearchOctober 2010Contributing Experts:Ardath AlbeeMichael BrennerMichael DamphousseChristopher DoranBarbra GagoSteve GershikSue HayMatt HeinzCarlos HidalgoJon MillerAdam NeedlesTom ScearceMatt WestSteve Woods Focus Research 2010
  2. 2. Introduction Welcome to our the first edition of the Focus Marketing & Sales Book of Funnels. We are very excited about what we have created and the foundation it lays for future editions. Focus.com CEO Scott Albro manages his executives with a simple adage: Put it in a one-page picture. The concept of the one-page picture becomes a brilliant exercise for Scotts department heads to create a sensible framework for how their department will function. Depicting a marketing or sales process in a single picture is just as challenging, and brings similarly powerful results. To create this book, Focus.com reached out to its Focus Expert Network and asked members to submit their version of the funnel. We gave them no instructions about what the funnel should look like, only that it had to fit on one page. I think you will have as much fun as we did seeing the results, from Carlos Hidalgos stairstep picture to a traditional funnel from Jon Miller to a cloud from Mike Damphousse to the champagne glass from Michael Brenner. Every organization should make the effort to depict its revenue funnel on one page. It serves as the basis of your sales and marketing strategy; once you understand your funnel, you are better informed about what metrics you should concentrate on, resource decisions and planning. I have two hopes from this exercise: 1) that there are some thought-provoking ideas for you to take back to your organization, and 2) that you create such a terrific funnel you can be included in the Book of Funnels Part II, which will have five times as many submissions as we received for this one. Special thanks to all of our contributors, Focus.com Sales Development Manager Sarah Miller and Contributing Editor Alec Wagner. We hope you enjoy the Focus Marketing & Sales Book of Funnels. Craig Rosenberg, Leader, Focus Expert NetworkFocus / Experts Guide / Sales and Marketing Pipeline and Funnel Models Focus Research 20102
  3. 3. Table of Contents Readjust Your Perspective to the B2B Buyers Experience . ................................................. p. 4 The Division Between Marketing and Sales Is a Myth . ...................................................... p. 5 The Days of the Funnel Are Thing of the Past . ............................................................... p. 6 The Living Funnel Responds to Business Changes......................................................... p. 7. Engage Your Customers to Create Evangelists. .............................................................. p. 8 View Your Funnel from Above. ................................................................................. p. 9 Lead Scoring, Progressive Nurturing Promote Qualified Leads. .......................................... p. 10 Expand Each End of the Funnel for Long-term Yield. ...................................................... p. 11 Make Lead Nurturing Part of Your Equation . ............................................................... p. 12 Keep Leads Moving through Your Funnel . .................................................................. p. 13 Buyers 2.0: Blazing Their Own Trail . ......................................................................... p. 14 Todays Bottom-Feeders Are Tomorrows Surface-Feeders. ............................................... p. 15 Follow the Four Rs: Reach, Responses, Relationships and Revenue.................................... p. 16. Define Buying Stages and Look at Conversion Rates. ..................................................... p. 17 About the Focus Experts. ..................................................................................... p. 18 All illustrations and visuals in this Focus Experts guide copyright 2010 of their respective companies.Focus / Experts Guide / Sales and Marketing Pipeline and Funnel Models Focus Research 2010 3
  4. 4. Readjust Your Perspective to the B2B Buyers ExperienceInstead of orienting your funnel to a salesperspective, focus the stages of the funnelon your B2B buyers experience.When your funnel is focused on meetingthe needs of all the people involved in thedecision, youll see a swelling in the middle,instead of the constriction that indicatesfallout in traditional funnels.The Buyer-Experience Funnel: Interest: Get prospects to take a look at what you offer. Attention: Convince them to opt-in. Notice that fallout occurs here when they choose to continue or not. Value: Instantly recognizable value increases willingness to engage. Engagement: Prospects spend more time and mind-share with your content.uying committee involvement: Your funnel swells as influencers interact to gain consensus.Bonversations: Sales steps in to drive momentum to purchase based on interests expressed. The funnel narrows to core decision-maker participation.Curchase: Buyers choose to partner with your company.P Ardath Albee, CEO and B2B Marketing Strategist at Marketing Interactions, www.focus.com/profiles/ardath-albee/public/Focus / Experts Guide / Sales and Marketing Pipeline and Funnel ModelsFocus Research 20104
  5. 5. The Division Between Marketing and Sales Is a MythTo our customers, there is no such thing as a funnel.Marketing and salespeople use the funnel to depictStart Earlier in Buying Cyclehow we manage demand through different phases.INQUIRIESBut there is no hard distinction. In some cases, salesgenerates inquiries and marketing can close revenuewithout salespeople getting involved (e-commerce).So what does this mean for the traditional funnel?The traditional funnel is marketing-focused with a LEADSlarge top in a wide V-shape, like a martini glass.ecause customers buy from brands that theyB trust, we need to focus on engaging potential customers in a relationship earlier in the buying process, even prior to a demand signal.PIPELINEe must remove the false distinction betweenW marketing and sales funnels. There is just one funnel from contact to sale, aligned to customer needs.hen we deliver against customer needs, ourW efficiency increases as we convert more inquiriesPURCHASE to leads and more leads to revenue. This happens because customers tell us when they are ready to buy and our funnel is built to move them throughContinue the buying process.After Salehis creates a funnel shaped more like aTDrive More Efficient champagne flute that drives efficient demand on a DemandLess Leakage continuous basis. Michael Brenner, Director of Online/Social Media at SAP North America, www.focus.com/profiles/michael-brenner/public/Focus / Experts Guide / Sales and Marketing Pipeline and Funnel ModelsFocus Research 20105
  6. 6. The Days of the Funnel Are Thing of the PastWith the advent of social, sales andmarketing 2.0 techniques and tools,optimized inbound marketing strategies,and a much more sophisticated buyer, thedays of a funnel are gone.uyers put themselves in the funnelB where they want to be. They jump around. The influence of content and word of mouth jumps them from side to back and down again.he demand-gen funnel is now in theT cloud. As marketers, we must constantly measure the status of the cloud and make adjustments. We must combine strategies and tactics in order to maximize our results.e harness the chaos to our advantage.W We control the demand-gen cloud. Michael Damphousse, CEO/CMO of Green Leads LLC, www.focus.com/profiles/michael-damphousse/public/Focus / Experts Guide / Sales and Marketing Pipeline and Funnel Models Focus Research 2010 6
  7. 7. The Living Funnel Responds to Business Changesanticore approaches the funnel in anM integrated manner. Sales and marketing must work together to generate demand. In our funnel, marketing focuses on three components:elivering a consistent flow of qualifiedD leads to saleselping sales close more deals throughH sales-enabled lead nurturing programselivering value-added content toD prospects at various stages of the pipeline to keep Manticore top-of-mind.hrough this approach our teams becomeT heavily dependent on one another. The sales and marketing team work together on content and messaging for the various nurtures. The funnel at Manticore Technology is a living object that changes as business conditions evolve Christopher Doran, VP of Marketing at Manticore Technology, www.focus.com/profiles/christopher-doran/public/Focus / Experts Guide / Sales and Marketing Pipeline and Funnel Models Focus Research 2010 7
  8. 8. Engage Your Customers to Create EvangelistsThis funnel puts as much emphasis on thebottom as the top. Why? Customers are inthe community you are trying to engage.You want to engage the community,but you also want to create customerevangelists to engage the community onyour behalf.his funnel focuses on buildingT community to convert targeted prospects into leads.fter purchase, the goal is to convertA customers to evangelists through added value and community development. n this funnel, ultimately communityI and evangelists overlap when the evangelists go back into the community to advocate for your brand.his funnel has marketing engaged muchT deeper than traditionallyway into lead nurturing, and then picking up customers as they come out the other end, to develop customer-focused community.ince this funnel starts with community, it incorporates all organizations within the company that are customer-facing: marketing, sales, support, success and executives.S Barbra Gago, Social Media Manager of Cloud9 Analytics, www.focus.com/profiles/barbra-gago/public/Focus / Experts Guide / Sales and Marketing Pipeline and Funnel ModelsFocus Research 2010 8
  9. 9. View Your Funnel from Abovet 28Marketing,