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