newstalk saas bootcamp day 2
TRANSCRIPT
Todays’ Agenda 9:30am Designing Sales and Marketing Processes
Aligning to the Customer Purchase Journey
11:00am Break
11:15am Building the Sales and Marketing Components
12:30am Lunch
1:30pm Building Funnels
3:00pm Break
3:15pm Allocating Resources
Understanding CAC and LTV
4:30pm Close
Machine Elements
Sales Stage Prospect Qualify Develop Solution Proof Close Won
Objective Validate opportunity. Identify sponsor.
Generate interest and qualify intent.
Develop requirements. Build relationships.
Solution proposed.
Solution agreed. Conduct negotiations and finalise contracts.
Sign and celebrate.
Probability 0% 10% 20% 40% 60% 80% 100%
Checkpoints Opportunity meets sales criteria to proceed.
Pain admitted by Sponsor. Compelling event identified.
Evaluation plan proposed.
Evaluation underway.
Evaluation complete, expectations exceeded.
Verbal yes received. Draft contracts exchanged.
Final documents signed.
Tasks Completed Before Progressing
Perform pre call research. Generate interest with sponsor.
Access to power. Competitive assessment.
M-A-N confirmed. Exec meeting scheduled. Criteria set for trial/evaluation.
Budgetary approval. Exec meeting completed. Purchasing process defined
Internal review complete. Customer review complete. Deployment plan agreed.
Finalise all deliverables and milestones.
Hand over to Ops. Begin upsell. Agree reference capability.
MARKET POSITIONING, DEFINITION AND SIZE AWARENESS INTEREST EVALUATION (MQL)
M0 M1 M2 M3
Market Research, Positioning and Messaging Campaigns in Market Engagement Marketing Leads Generated
Market research - clients, prospects, staff and influencers Campaign materials in place Correlation of uptake Qualification of marketing leads
Comms platform and key messaging Engagement process underway Learning - minor iterations Select those meeting sales profile
Sweet spot prospect profile/target audience Uptake being tracked Follow up processes Follow up with non core prospects
Target market sized Heads up to Sales for handover
Initial database build Review, learn/tweak
External value proposition agreed
First level of competition identified
Pricing agreed
Intital materials prepared
Campaign success metrics agreed
Comms Platform and Messaging Sign off People engaged List of people engaged committing time List of MQLs to hand to Sales Process
Campaign Approved /Resourced
TO GET INTO THIS STAGE
ACTIVITIES
VERIFIABLE OUTCOMES
What does a customer discovery to success journey look like?
As an example
Mode Customer
Discovery Reads a blog
Gets a direct Mailing
Lands on website
Watches video
Sales Signs up for trial
Converts to paid
Success Renews contract
Refers a friend
Funnel Segment
Looks like…. Number Ratio Forecast
Cost Per Progression
AWARENESS Landing on website 1,000 -
INTEREST Multiple clicks / time spent
200 20%
EVALUATION Download, trial, registration
50 25%
COMMITMENT Purchase Intent 10 20%
PURCHASE Purchase Complete 3 33%
RETENTION Minimise churn 2 66%
Field Sales Tele Sales
Classic
Marketing
Digital Marketing
Mode Customer
Discovery Reads a blog
Gets a direct Mailing
Lands on website
Watches video
Sales Signs up for trial
Converts to paid
Success Renews contract
Refers a friend
Resources Required
Content Marketing
Mail System
Responsive Website
Embedded Video
Provisioning System
Telesales
Telesales
Viral Enablement
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From bookings and opacity…
EXPENSES
BOOKINGS
Difficult to make decisions:
– Multi-year bookings
– Non-recurring revenues
– Impact of churn and
renewal?
… to CMRR and transparency!
Full transparency :
– Employee assessment
– Operational planning
– Financing
– Valuation
CMRR
New Accounts
Upsell & Expansion less
churn
Existing Contracts
Renewals
EXPENSES
Cash
burn
rate
Lines are still not crossing!
Expected breakeven point
Heavy upfront financing… … requiring tight expense management
Key drivers of cash consumption: Customer
Acquisition Costs, Churn, Renewal rate
Monthly recurring expenses
Monthly Recurring Revenue
Complex ERP sales
Freemium model
Quarterly Annual Semi-Annual
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100
80
64
51
RESOURCE COSTS PER STAGE Hours Used Cost per hour Resource Cost
Telesales resource 22.00 15.00€ 330.00€
Field sales resource 5.00 50.00€ 250.00€
Digital marketing resource 24.00 18.00€ 432.00€
Offline marketing resource 7.00 22.00€ 154.00€
Other resource 8.00 12.00€ 96.00€
Total 66.00 1,262.00€
MARKETING COSTS PER STAGE Units Used Cost per unit Marketing Cost
SEO & SEM 2 5,000.00€ 10,000.00€
E-Content marketing 4 500.00€ 2,000.00€
Google 2000 2.25€ 4,500.00€
Total 16,500.00€
PROGRESSIONS
Number of progressions by campaign 45
COST CALCULATIONS
Resource Costs 1,262.00€
Marketing Costs 16,500.00€
Total 17,762.00€
UNIT COST PER STAGE PROGRESSION
Total cost to progress one unit 394.71€
Revenue & Churn Customer 1 Customer 2 Customer 3
Year 1 Revenue 1,000.00€ 500.00€ 2,500.00€
Retention Rate 75% 65% 95%
Upsell 10% 25% 0%
Year 2 Revenue 825.00€ 406.25€ 2,375.00€
Retention Rate 70% 70% 90%
Upsell 10% 20% 10%
Year 3 Revenue 635.25€ 341.25€ 2,351.25€
Retention Rate 50% 90% 90%
Upsell 20% 10% 20%
Year 4 Revenue 381.15€ 337.84€ 2,539.35€
Retention Rate 50% 80% 80%
Upsell 20% 40% 40%
CUSTOMER LIFETIME VALUE 2,841.40€ 1,585.34€ 9,765.60€
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Cost of Customer
Acquisition
Sales and Marketing
Process
Channels
Life Time Value
Funnel Metrics
Monetisation Options