Marketing and Sales collaborate to attract, engage and nurture buyers to a qualified, sales-ready status.
The Target Addressable Market (TAM) is the “pre-stage” of the Demand Funnel. The TAM is the focused market segment that you are pursuing. You can measure TAM and also estimate active TAM to build a target audience for buyer engagement.
Outcomes to consider are:
Audience is in our target market / Active TAM
TAM Size #, $ and share understood
Engagement segments are defined
The Attract Stage is focused on ensuring that your target audience is aware of your brand. The buyer is in the Awareness process and your are seeking ways across media to attract them to your business. Many of these tactics use digital marketing:
- PR, Social and Earned Media
- Inbound / Organic Search
- Education Content / Whitepapers
- Advertising (PPC, Display, Media)
- Trade Shows /Speaking
- ABM Awareness Campaigns
- Outbound Sales Prospection
A key metric to consider is: Website Visitor – A visitor is an interaction on the website at the top of the funnel. Sources include organic traffic, referrals, email, paid media and direct. Visitors confirm Awareness from marketing activities. Typically 1-2% of visitors convert to the “Engaged” stage. Retargeting strategies help drive this number up. Other metrics include:
- Site Visitors meet expectations
- # & % Account Contacts Engaged
- CPM rates measured
- Sources of visits align with plan
- CTR Conversion meet expectations
- # Blog Subscribers meet expectations
- Time on site / important pages / dwell time
- # Social mentions, shares, influencers engaged
- Degree of positive sentiment, likes
- # MQIs (Downloads/ Conversions)
- # Sales touches and responses
The Engage Stage is where you have identified the lead or contact and are actively engaging with the prospect over a mix of marketing and sales channels. A key metric is MQI – Marketing Qualified Interaction (sometimes referred to as a “Lead”).
A suspect becomes an active member of the marketing database after they download content, respond to an email offer or similar. While not yet a qualified lead, they are a focus for further lead nurture and development. Typically only 5-10% of MQIs become Qualified LEads or MQLs, but this will vary by industry and your funnel model. The key difference between a MQI and a MQL is that they have not yet expressed a desire to engage in a sales conversation or have not yet reached a lead score that confirms them as qualified .
A Subscriber may opt in to receive information from you (as in blog posts) when they register for your blog or newsletter. They are not usually identified as a lead at this stage. For example, 5% of Subscribers may become qualified leads or MQLs. Percentages will vary.
A [Marketing] Qualified Lead has reached a level of qualification by marketing or by sales. A lead may be generated in the Demand Funnel by either marketing or by sales. Through the Engage Stage nurture process, leads are developed until they are sales ready. A Qualified Lead, often called a MQL – or Marketing Qualified Lead is a lead that has reached a set of objective behaviors and/ or has a set of firmographic dimensions (e.g. a lead grade / score). These thresholds are based on agreed business rules, are delivered to the sales team for follow-up.
90+% of MQLs typically become SALs (Sales Accepted Leads) and enter the active sales process and the Sales Pipeline.
Sales and account teams orchestrate sales opportunities, close deals and manage account relationships.
A Sales Lead is developed by sales people as well as by Marketing. When a sales rep accepts a lead from Marketing for follow-up, it is a SAL (Sales Accepted Lead). Typically 90%+ of qualified leads from Demand Generation are accepted as sales ready as they have reached a Lead Score and Lead Grade threshold.
Lead Score via:
- Visit to important pages visited (Pricing Page, Solution Page)
- Key Downloads
- Talk to sales
Leads are also developed Outbound Sales Scheduling / Appointments
A [Sales] Qualified Opportunity is firmly in the Sales Pipeline and part of the active forecast.
They are looking for outside help and view us as a viable provider and we have a high-level understanding of the business case and motivation to act.
A Qualified Opportunity (sometimes referred to as a SQL (Sales Qualified Lead) – is a prospect with an opportunity determined by sales / sales management as qualified using agreed qualification rules such as BANT, Scotsman, or the Revenue Architects FACT Qualification model. While, relatively early in the sales cycle and not yet fully qualified, these warrant a very active sales focus. They are typically 20-60% likely to close.
When a deal reaches the Likely o stage, we have a high confidence that they will close, but there is more work to be done!
We have submitted a proposal andare on a short list. We have established credibility and access with the DMU/ economic buyer. We have reviewed a 1-page proposal with our client coach; It was positive. We have day-to-day interaction with the DMU. The Likely deal is about 75% likely to close.
Highly Likely is the final stage before we close and the typical forecast yield is 95%.
Our proposal is received with positive feedback – no significant contingencies have been identified. The terms & conditions are known and acceptable to decision makers or otherwise mitigated. A schedule, start date or implementation plan is in place and agreed.
The opportunity or deal is closed successfully at 100%.
When the contract is signed and the invoice is sent, we have a closed deal. If it is not closed, it may be downgraded, returned to marketing for nurture, maintained for further sales nurture, archived or ultimately marked as either lost or dead.
Account teams actively maintain, deliver and upsell, cross-sell existing clients. These relationships will kick off new opportunities that will enter the pipeline as Opportunities or Qualified.
In this stage, a range of professional account management activities will be engaged that also include digital experience for account engagement.