F THE FUNNEL EXECUTIVE OVERVIEW · 2021. 3. 12. · The Pedowitz Group –2020Confidential 2 F the Funnel Executive Overview Inquiries 1000 MQL 440 SAL 290 SQL 142 Close 28 4.4% 66%

© Copyright 2020 The Pedowitz Group. All Rights Reserved

F THE FUNNELEXECUTIVE OVERVIEW

2The Pedowitz Group – 2020 Confidential

F the Funnel Executive Overview

Inquiries 1000

MQL 440

SAL 290

SQL 142

Close 28

4.4%

66%

49%

20%

Customer Acquisition

Customer AcquisitionAware

Consideration

Evaluation

Decision

Onboarding

2Value Realization

Adoption

Loyalty

Advocacy

5

4

3

2

1

5

4

3

2

1

Unaware


Measuring in the LoopKey Performance Indicators for Every Stage



UnawareNet new contacts

New website visitorsConversion rate/vol

Age in Stage

AwareContent engagement

Clicks, form fillsDownloads/conversions

Conversion rate/volAge in Stage

ConsiderationContent engagement

ClicksDownloads

Frequency of visitsFrequency of engagement

Conversion rates/volAge in Stage

EvaluationOpportunities created

Opportunity valueNew or repeat customer

SourceConversion rate/vol

Opp age

DecisionOpportunity age


Conversion rate/Vol

OnboardingContent engagementTime to full scale adoptionRetentionCLV | Churn | NPS

AdoptionUtilizationBusiness Value AchievedUser SatisfactionCommunity engagement

Value RealizationTime to valueProcess EfficiencyProcess EffectivenessReturn on Investment

LoyaltyAcquisition RateRetention RateAttritionWallet ShareRepeat PurchaseCLV

AdvocacyInfluenced RevenueWin RateSales Cycle CompressionInfluence-to-Win RatioAdvocates AddedSegment Coverage

1

2

3

4

5

1

2

3

4

5


Relationships Impact Revenue

Poor Company Relationship• Marketing is a cost center• No authority or credibility• Reduced resources• Missed Targets• Higher Turnover

Good Company Relationship• Marketing is a revenue center• Authority, Credibility, Change Agent• Increased resources• Repeatable, Predictable, Scalable• Career Security

Poor Customer Relationship• Leads and activities• Transactional• Funnel Based• Missed Targets• Narcissism

Good Customer Relationship• Customer Experience• Relationship Oriented• Loop Based• Achieved Targets• Customer Centricity

Goo

d Re

latio

nshi

psBad Relationships


FUNNELS VS. LOOPS

BUYER FOCUSED

BUYING CENTER AND MARKETING MIXPRIMARY CONTACT

SELLER FOCUSED

PULL, CUSTOMER CENTRIC

CUSTOMER LIFETIME VALUE

CONTINUOUS LIFECYLEEND AT THE SALE

PUSH, COMPANY CENTRIC

VOLUME AND VELOCITY

Funnels are narcissistic, ineffective methods for engaging customers and driving revenue.

Loops are relationship-oriented, customer focused methods that maximize customer lifetime value and deliver repeatable, predictable and scalable revenue.

CUSTOMER CENTRICITY

ENGAGEMENT

METRICS

ATTRIBUTION

CAMPAIGNS


Next Steps1. Sign up for F the Funnel Workshop

2. For additional questions, contact Jeff at:

[email protected]

404-590-9416


F the Funnel Workshop

Inquiries 1000

MQL 440

SAL 290

SQL 142

Close 28

4.4%

66%

49%

20%


Part 1: F The Funnel - 20 Minutes1. Why Don’t They Love Us?2. The History of the Funnel3. Newton’s Lie4. Because We Don’t Love Them

Part 2: Welcome to the Loop - 30 Minutes1. The Loop2. Customer Expansion Stages: Onboarding, Adoption, Value Realization, Loyalty, Advocacy

Part 3: Building the Business Case- 35 Minutes

Part 4: Next Steps – 5 Minutes

What we will cover today

9The Pedowitz Group – 2020 Confidential 9The Pedowitz Group – 2020 Confidential

PART 1:F THE FUNNEL


A Tale of 3 CMO’s


Why Don’t They Love Us?


It’s About Relationships

COMPANY

CUSTOMERS

GOOD RELATIONSHIPS BAD RELATIONSHIPS


Relationships Impact Revenue

Poor Company Relationship• Marketing is a cost center• No authority or credibility• Reduced resources• Missed Targets• Higher Turnover

Good Company Relationship• Marketing is a revenue center• Authority, Credibility, Change Agent• Increased resources• Repeatable, Predictable, Scalable• Career Security

Poor Customer Relationship• Leads and activities• Transactional• Funnel Based• Missed Targets• Narcissism

Good Customer Relationship• Customer Experience• Relationship Oriented• Loop Based• Achieved Targets• Customer Centricity

Goo

d Re

latio

nshi

psBad Relationships


The History of the Funnel

1898E. St. Elmo Lewis

1924Bond SalesmanshipWilliam W. Townsend

Awareness

Interest

Desire

Action

2007The Demand Waterfall

SiriusDecisions

2010Conversion Funnel

Inbound Outbound

Inquiry

Automation Qualified Leads (AQLs)

Teleprospecting Qualified Leads (AQLs)

Teleprospecting Qualified Leads (TQLs)

Teleprospecting Generated Leads (TQLs)

Marketing Qualification

Sales Qualification

Sales Generated Leads (SGLs)

Sales AccdptedLeads (SALs)

Sales Qualified Leads (SQLs)

Close

Won Business

TOFUWhat’s the problem?

MOFUWhat’s the solution?

BOFUWhy your solution?

Target Demand

Active Demand

Engaged Demand

Prioritized Demand

Qualified Demand

Pipeline

Closed

2017The New Demand Waterfall

SiriusDecisions

2018TPG ONE

The Pedowitz Group


Buyers Don’t Buy Sequentially. They Buy Like This


Exercise 1List several pros and cons for both Funnels and Loops

FUNNEL LOOP

PRO

SCO

NS

1.

2.

3.

4.

5.

1.

2.

3.

4.

5.

1.

2.

3.

4.

5.

1.

2.

3.

4.

5.


TPG Standard PowerPoint TemplateGrammar and Style One / Grammar and Style Two / Bulleted List Rules / Recommendations

FUNNELS VS. LOOPS

BUYER FOCUSED

BUYING CENTER AND MARKETING MIXPRIMARY CONTACT

SELLER FOCUSED

PULL, CUSTOMER CENTRIC

CUSTOMER LIFETIME VALUE

CONTINUOUS LIFECYLEEND AT THE SALE

PUSH, COMPANY CENTRIC

VOLUME AND VELOCITY

Funnels are narcissistic, ineffective methods for engaging customers and driving revenue.

Loops are relationship-oriented, customer focused methods that maximize customer lifetime value and deliver repeatable, predictable and scalable revenue.

CUSTOMER CENTRICITY

ENGAGEMENT

METRICS

ATTRIBUTION

CAMPAIGNS


Because we don’t love them.


PART 2:WELCOME TO THE LOOP


Welcome to the LoopA customer-centric approach towards lifelong engagement and repeatable, predictable and scalable revenue



UnawareAware

Consideration

Evaluation

Decision

Onboarding Adoption

Value Realization

Loyalty

Advocacy

1

2

3

4

5

12

3

4

5


Defining the Loop



UnawareProspect does not yet know of the problem

that they may have

AwareClient is aware that they have a problem or that

there is an opportunity for improvement

ConsiderationAt this point, the prospect/client is aware of the

problem and begins this phase thinking about whether they will address them problem, and

ultimately researches and learns enough to feel that they must do something about the problem. They begin researching solutions to the problem

(not to be confused with vendors)

EvaluationOften the prospect/Client is actively evaluating

different vendors to solve their business problem

DecisionProspect/Client has made a vendor decision

OnboardingThe client is being welcomed to your company, and educated on how you will work together

AdoptionClient is beginning to use the solutions or product. This may be in pilot groups first, with the intent to expand to the larger organization

Value RealizationThis is a critical stage as this is when the client determines whether or not they derive value from what you’ve sold them. Without seeing value, this client will not become loyal and is unlikely to purchase again from you

LoyaltyThe client has seen the value and loves your brand. They will likely buy again and again from you

AdvocacyGroup planner advocates on your company’s behalf. Expect them to cycle through the buying journey again and again.

1

2

3

4

5

12

3

4

5


Exercise 2What would it mean if you moved from a funnel-centric to a customer lifecycle loop operational model?

FUNNEL LOOP

PRO

SCO

NS

1.2.3.4.5.

1.2.3.4.5.

BARR

IER

TO

ADO

PTIN

G

THE

LOO

P1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.


The Customer Owns Their JourneyBut Multiple Groups Engage at Every Stage


How do we engage with our customer at every stage of their journey?


Customer Expansion

Awareness

Consideration

Evaluation

Decision

Purchase

Onboard2

Value Delivery

Adoption

Loyalty

Advocacy

5

43

2

1

5

4

3

2

1

1 Marketing Sales Services

Activity


Activity


Activity


Activity


Activity


Activity


Activity


Activity


Activity


Activity


Exercise 3Stakeholder Roles

Awareness Consideration Evaluation Decision Purchase

Stakeholder Roles

Sales

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

Marketing

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

Service

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

Operational Support

Tools and Technology

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

Process

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.


Exercise 3Stakeholder Roles

Onboarding Adoption Value Realization Loyalty Advocacy

Stakeholder Roles

Sales

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

Marketing

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

Service

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

Operational Support

Tools and Technology

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

Process

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.

1.2.3.4.5.


Measuring in the LoopKey Performance Indicators for Every Stage





Age in Stage

AwareContent engagement

Clicks, form fillsDownloads/conversions

Conversion rate/volAge in Stage

ConsiderationContent engagement

ClicksDownloads

Frequency of visitsFrequency of engagement

Conversion rates/volAge in Stage

EvaluationOpportunities created


SourceConversion rate/vol

Opp age

DecisionOpportunity age


Conversion rate/Vol

OnboardingContent engagementTime to full scale adoptionRetentionCLV | Churn | NPS

AdoptionUtilizationBusiness Value AchievedUser SatisfactionCommunity engagement

Value RealizationTime to valueProcess EfficiencyProcess EffectivenessReturn on Investment

LoyaltyAcquisition RateRetention RateAttritionWallet ShareRepeat PurchaseCLV

AdvocacyInfluenced RevenueWin RateSales Cycle CompressionInfluence-to-Win RatioAdvocates AddedSegment Coverage

1

2

3

4

5

12

3

4

5


Your New Dashboard Could Look Like This



Age in Stage


Onboarding Key Performance Indicators

Inactive NonprofitableCustomers

Active ProfitableCustomers

Very Active ProfitableCustomers

20% 60% 20%

LOW CLV

HIGHCLV

Lifetime Value = (Average Order Value) X (# of Repeat Sales) X (Average Retention Time)

Customer Lifetime Value Monthly Churn Rate Retention Rate

Net Promoter Score Content Engagement Time to Adoption

JUNMAYAPRMARFEBJAN

Retention Rate

Churn Rate

89%

34None High

6.5 MONTHS


Adoption Key Performance IndicatorsBENEFITS REALIZATION RATE (% OF OBJECTIVES IN BUSINESS CASE THAT ARE REALIZED UPON LAUNCH)

75%

% of Objectives in Business Case That Are Realized Upon Launch

JAN FEB MAR APR MAY JUN

Avg. number of successful changes implemented in a month

25%

% of total changes that fail to launch

None Full

21

Product/Service Utilization User Satisfaction Benefits Realization Rate

Rate of Change Change Failure Rate Business Value Gained From New Methods

JUNMAYAPRMARFEBJAN


Value Realization Key Performance Indicators

Process Efficiency Process Effectiveness Customer Performance

Financial Performance Return on Investment - CAPEX Return on Investment - OPEX

None Automated & Optimized

High

High

Gro

wth

Po

tent

ial

Relative Market ShareLow

Low

7.1% 9.5%


Loyalty Key Performance Indicators

Customer Acquisition Rate Customer Attrition Rate Customer Retention Rate Customer Wallet Share Loyalty Behavior

Customer Participation Customer Price Elasticity CLV Opportunity Drop Off Relationship Value Maturity

11% 50%Initiative 1

Initiative 2Initiative 3






20% 60% 20%

LOW CLV

HIGHCLV


243


Advocacy Key Performance Indicators

Influenced Revenue Win Rate Sales Cycle Compression

Influence to Win Ratio Advocates Added Segment Coverage

Low High

25.47%

51

35 DAYS

75%


Recommended Marketing Budget Allocations



UnawareAware

Consideration

Evaluation

Decision

Onboarding Adoption

Value Realization

Loyalty

Advocacy

Recommended Budget Allocation

% of Revenue from Existing Customers


Customer Expansion

0 – 10% 90% 10%

11 – 25% 80% 20%

26 – 50% 60% 40%

51 – 75% 40% 60%

> 75% 20% 80%

1

2

3

4

5

12

3

4

5


Exercise 4Loop Metrics

Awareness Consideration Evaluation Decision Purchase

KPI’s

1.

2.

3.

4.

5.

1.

2.

3.

4.

5.

1.

2.

3.

4.

5.

1.

2.

3.

4.

5.

1.

2.

3.

4.

5.

Onboarding Adoption Value Realization Loyalty Advocacy

KPI’s

1.

2.

3.

4.

5.

1.

2.

3.

4.

5.

1.

2.

3.

4.

5.

1.

2.

3.

4.

5.

1.

2.

3.

4.

5.


PART 3:Building the Business Case for Loop Adoption


How do we build the business case for investing in The Loop?

2

ANNUAL EMPLOYEE PAYROLL VOLUNTARY TERMINATION RATE INVOLUNTARY TERM. RATE

EMPLOYEE SATISFACTION INDEX PRODUCTIVITY (MARKETING SOURCED REVENUE / TOTAL LABOR HOURS)

AVG. REVENUE PER EMPLOYEE MARKETING SOURCED REVENUEPER EMPLOYEE

# OF RESOURCES

$2,545,500 7.2% 4.4%

24.3% Low High

37.1

$280,000 $37,500

43

# OF SKILLS PER EMPLOYEE TRAINING COST PER EMPLOYEE AVG. TIME TO FIND A HIRE

TIME ASSOCIATED WITHCAMPAIGN PRODUCTION

EMPLOYEE NPSAVG. REVENUE PER PARTNER

STAKEHOLDER ALIGNMENT # OF CHANNEL PARTNERS AVG. TIME TO RAMP A HIRE

75 DAYS$7434.5

Low High

30 Days 35%

SALES

MKTG

IT

HR

FINANCE

SERVICE

AB

ILIT

Y TO

EX

ECU

TE

ALIGNMENT

6.5 MONTHS

$254,138

243

SALES CYCLE LENGTH ON-TIME DELIVERY % QUALITY - # OF ANNUAL ERRORS

CAMPAIGN CYCLE TIME CAMPAIGN TO LEAD CONVERSION RATE

# OF CAMPAIGNS PER YEAR AVG. REVENUE PER CAMPAIGN PRIVACY COMPLIANCE (GDPR, CASTLE, ETC.) RATE

94 DAYS 65.3% 1,432

35 DAYS

Low High

70%

25%

$225,171842

DATA-DRIVEN DECISIONS LEAD MANAGEMENT APPLY BEST PRACTICES

CAMPAIGN PROCESS DATA MANAGEMENT ANDGOVERNANCE

CONTENT OPERATIONS PROCESS

MARKETING OPERATIONS SALES OPERATIONS CUSTOMER OPERATIONS

NoneAutomated &

OptimizedNone NoneAutomated &

OptimizedAutomated &

Optimized

NoneAutomated &

Optimized None Automated & Optimized None Automated &

Optimized

UNIT COST PER CUSTOMER =ANNUAL TECH SPEND /# CUST.

% OF BUDGET SPENT AGILITY = (PLANNED PROJECT DURATION –DURATION / PLAN DURATION)

$3,456 65% -1.535%OPEX CAPEX

$54 $8,455

% OF TECH INVESTMENT BY BUSINESS INITIATIVE

PURE UNIT VALUE = (UNIT COST PER CUSTOMER –(MARKETING SOURCED REVENUE / # OF CUSTOMERS))

UNIT COST PER USER =(ANNUAL TECH BUDGET / # OF TOTAL USERS)

% OF PROJECTS SPEND ON CUSTOMER-FACING INITIATIVES

CUSTOMER SATISFACTION SCORES FOR BUSINESS-FACING SERVICES

TECH SPEND BY BUSINESS UNIT / TEAM

Initiative 1Initiative 2Initiative 3



25%Mark

eting

Sales

Servi

ce

Accounti

ng IT

Chan

nel

R&D HR 21

CUSTOMER ACQUISITION COST CUSTOMER DELIVERY COST SERVICE/SUPPORT COST

CUSTOMER LIFETIME VALUE % MARKET SHARE

RETENTION RATE NET PROMOTER SCORE # OF NEW CUSTOMERS PER YEAR

$3,450 $17,547 $11,191




20% 60% 20%

LOW CLV

MEDCLV

HIGHCLV

AVG CLV: $1,245,000


High

High

Gro

wth

P

ote

nti

al

Relative Market ShareLow

Low

Retention Rate

Churn Rate

89% 34202020192018201720162015

DATA QUALITY/COMPLETENESS # OF REFERENCEABLE CLIENTS # OF ANNUAL REFERRALS

DATABASE GROWTH % YOY AVG. ANNUAL REV. / CUSTOMER% DATABASE ACTIVE

# OF ADVOCATES AVG. # OF BUYING CENTERS AVG. TIME TO VALUE

202020192018201720162015

41%

35% 37 144

$191,000

51 70 180

110 Days


Exercise 5 Building a Business CaseBusiness Key Performance Indicator Amount

Improvements in Customer Experience

Increased revenue per customer

Number of customers

Revenue impact of improved CX

Estimate variability (H,M,L)

Competitive Differentiation

Current revenue for product, service or business unit

Market share growth/(deterioration)

Increase in average net price (or decrease, due to increased competition)

Revenue impact of improved differentiation

Gross margin impact of improved differentiation


New Revenue Streams

Addressable market

Expected market share

Incremental revenue

Gross margin for new business

Incremental profit


Business Key Performance Indicator Amount

Increased User Productivity

# of employees working on relevant activities (FTEs)

Average productivity increase (tasks completed faster)

Annual user production rate today

Increased productivity benefit


Improved Capital Efficiency

Operating cost of operation

Improvement in production efficiency

Increased productivity benefit


Increased Asset Protection

Opportunity cost of downtime (avg. cost per hour)

Total downtime (hours, annual)

Reduction in downtime

Increased uptime for equipment


Improved Compliance

Time spent on compliance activities (document management, checklists, verifications) per employee

Number of users

Increased resources to achieve target compliance level

Annual user rate today (per hour)

Lower compliance costs (at target compliance level)



Exercise 5 Building a Business CaseCost Assumptions Amount

Software

Complexity (H,M,L)

Ongoing cost of legacy software per year

Infrastructure (leasing and/or depreciation)

IT Operations

SaaS subscriptions

# of Initial Users

# of Ramped Users

Avg. Annual Price Per User

Software - total annual cost

Software – total incremental cost over three years

Services (internal and/or outsourced)

Complexity (H,M,L)

Development and testing

Implementation and training

Consulting and change management

Ongoing support


Complexity (H,M,L)

Other costs

Amount


Benefit/Cost Analysis Amount

Benefits

Improvements in Customer Experience

Competitive Differentiation

New Revenue Streams

Increased User Productivity

Increased Capital Efficiency

Increased Asset Protection

Improved Compliance

Total Benefits

Costs

Software

Services

Other

Total Costs


PART 4:Offer


Take Action to Implement Your Loop

ServicesDrive$5,000

Accelerate$10,000

Transform$30,000

ABM Readiness Assessment

Lead Management Assessment

Consultation

Action Plan

Research and Asset Library

13 Weekly Group Consulting Sessions

13 Weekly Individual Consulting Session

MarTech Systems Assessment


Q&A

Documents

F THE FUNNEL EXECUTIVE OVERVIEW · 2021. 3. 12. · The Pedowitz Group –2020Confidential 2 F the Funnel Executive Overview Inquiries 1000 MQL 440 SAL 290 SQL 142 Close 28 4.4% 66%