By April 16, 2013 7 Comments

Infographic – The Marketer’s Guide to B2B Sales

In order for marketing to be highly correlated to revenue, marketing has to be tightly integrated into the B2B sales process.   To effectively integrate marketing into the B2B sales process requires delegating the front-end of the sales process to marketing and this can be successfully accomplished through a sales and marketing plan.  To achieve a harmonic B2B sales process, sales and marketing must mutually create detailed demand generation and demand management plans that depict how qualified leads will be created and then the process to convert qualified leads to qualified opportunities.

In building these demand generation and management plans, a number of assumptions need to be documented and used to reverse engineer leads from closed won deals.  Often times there is historical data that can be pulled from the sales force automation system, however, there are times when no historical data is available.  If historical data about the sales process, and specifically conversion rates in the sales funnel, do not exist, it is prudent to leverage industry averages.

B2B Sales - Marketing and Sales Headcount

 

The Marketer’s Guide to B2B Sales – Headcount Composition

In B2B sales, the number of full-time sales and marketing personnel employed by size of company ran the complete spectrum.

  • 42% of companies that are in B2B sales responded that there are 1-5 full-time marketing people.
  • 32% of companies that are in B2B sales responded that there are more than 16 full-time sales people.
  • 33% of companies that are in B2B sales responded that there are more than 16 full-time inside sales people.

The Marketer’s Guide to B2B Sales – Sales Force Automation System

When respondents were asked what sales force automation software they used to support their B2B sales process, the vast majority, 46%, stated that they used Salesforce.com.  The next most often mentioned sales force automation system was Microsoft Dynamics with 23% of respondents citing this sales force automation software solution.

The Marketer’s Guide to B2B Sales – Average Selling Price

For B2B sales, the average selling price (first year) of the respondents looked very similar to a bell curve.

  • 20% of B2B sales were reported in the $25K-50K range
  • 18% of B2B sales were reported in the $50K-100K range
  • 15% of B2B sales were reported over $250K
  • 10% of B2B sales were reported under $5K

The Marketer’s Guide to B2B Sales – Number of Steps in the Sales Process

In the B2B sales process, most respondents (42%) stated that there are 1-5 steps in their B2B sales process.  However, 5% of respondents noted that their B2B sales process included more than 16 identifiable steps.

The Marketer’s Guide to B2B Sales – What Constitutes a Qualified Lead

In most marketing sales plans, it is critical to identify what criteria is used to define a qualified lead in the B2B sales process.  Typically, a demand creation plan will explicitly document the criteria that sales and marketing have mutually agreed upon.  36% of respondents stated that “Budget, authority, need and timeframe (BANT)” was the criteria documented in their marketing sales plan to identify a qualified lead.

  • 16% of respondents communicated that a “Clear need stated for the product or service” was adequate to convert a B2B sales lead to a qualified lead in their lead management process.
  • Only 4% of respondents stated that if the “Decision making time frame matches the average sales” then a lead would be converted to a qualified lead in their lead management process.

The Marketer’s Guide to B2B Sales – Conversion Ratios

The average conversion metrics that were reported by respondents for managing the sales funnel were as follows:

  • 7% of responses or inquiries in the sales funnel converted to a marketing qualified lead
  • 31% of marketing qualified leads in the sales funnel converted to sales qualified leads
  • 46% of sales qualified leads in the sales funnel converted to forecasted deals
  • 34% of forecasted deals in the sales funnel converted to closed won deals

Infographic - The Marketer's Guide to B2B Sales

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The online survey was conducted in the fourth quarter of 2012 for U.S. companies selling B2B.  247 completed surveys were complied across multiple industries and revenue ranges.  Approximately, one-third of the companies included had revenue of less than $10M and one-quarter had revenues in excess of $500M.  More than half the respondents identified themselves as marketing executives (director or above), just less than a quarter were marketing managers and almost 15% were categorized as sales managers.  Approximately 55% of the companies represented were public companies.

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VP Marketing on Demand

About the Author:

Peter is a strategic and visionary marketing executive and brand champion who has leveraged his unique combination of classical training and entrepreneurial experience at start-ups and F500 companies to transform technology innovations into multimillion-dollar revenue streams. His experience spans all areas of marketing, including go-to-market strategy and execution; brand identity and brand positioning; product development; sales and marketing leadership; customer acquisition and retention; and influencer and analyst relations. Peter consults with c-level executives, teaches at USF’s EMBA program and serves as an advisor to start-ups.

7 Comments on "Infographic – The Marketer’s Guide to B2B Sales"

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  1. Great infographic that we repinned at NewBizs.

    Lengthening sales cycles and the inclusion of additional decision makers is proof positive of the every evolving self-directed journey that customers take. The myth, however, is that analysis of the data in existing systems will reveal the detailed steps and expectations of customers. Since 80% of the purchase process is completed before the buyer(s) ever want to talk with sales, no amount of analysis of your marketing and sales data will give you the longitudinal path that buyers take outside of your website and paid search.

    The way to understand evolving sales cycles and customer journeys is to research them. Then align your processes, culture, roles and metrics, and systems to these journeys. It’s no where as scary as it sounds and it doesn’t take years to do. You can do this in a couple of quarters with full payback in under 2 quarters. For more on how to do this, learn about our Sellers’ Compass approach at http://www.newbizs.com/consulting-services/sellers-compass-services/

  2. trudy says:

    good assessment and overall aspects covered for marketing and sales. comprehensive infographic details, would be great to see similar trends for europe and asia pacific markets

    Thanks

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