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How to Improve Sales and
Marketing Alignment

Mike Volpe              Mark Roberge
VP Marketing @HubSpot   VP Sales @HubSpot
Twitter: @mvolpe        Twitter: @MarkRoberge
Overheard in sales…

 •   All the leads suck.
 •   We don’t get enough leads.
 •   None of the leads close.
 •   Marketing is a waste of money.
Overheard in marketing…

 • Sales doesn’t follow-up on leads.
 • Sales isn’t happy unless we just give
   them POs.
 • Salespeople are way overpaid.
 • Sales takes all the credit, but none of
   the blame.
Sales vs. Marketing?
Who is HubSpot?
180+ Employees in Cambridge, MA (MIT)
        $33m in VC (3 rounds)
  SaaS for Marketing at $3K-15K/year
Complicated &     Easy &
  Confusing     Integrated
Mike Volpe & Mark Roberge



 Mike Volpe                   Mark Roberge
 VP Marketing                 VP Sales
 • Built HubSpot Marketing    • Built HubSpot Sales from
   from 0 to 25,000+ leads      0 sales reps to 50+ sales
   per month                    reps
 • Marketing thought leader   • Sales 2.0 strategist
 • Employee #5                • Employee #6
Growth



            3,100
          Customers



Q1 2007               Q2 2010
Sales and Marketing Alignment

 1.   Build Communication
 2.   Establish an SLA
 3.   Grade and Filter Leads
 4.   Grow Top of Funnel
 5.   Nurture Premature Leads
 6.   Analyze the Closed Loop
Build Communication
“Smarketing” =
Sales + Marketing
Smarketing Communication

 • Meet frequently

 • Multiple relationships, not VP to VP

 • Desks mixed in with each other
Smarketing Communication

 • Input goes both ways

 • Lots of feedback formats

 • Agree on terminology

 • Use data to communicate
Agree on Terminology

 • What is a lead?

 • What is a sales qualified lead?

 • What is an opportunity?
Example Terminology

 • A Sales Qualified Lead
   •   Accurate contact information
   •   Demonstrated interest in our company
   •   Over $50m in revenue
   •   Company based in North America
Provide More Lead Information


   Give sales a more complete picture

   Show the activity on each lead

   Customize follow-up to activity
Lead Details
Salesforce.com or Other CRM
Social Media on Leads
Establish an SLA
Set an SLA for Sales and Marketing

 • Agree on terminology and metrics

 • Sales goals to deliver to Marketing

 • Marketing goals to deliver to Sales
Great Sales and Marketing SLAs

 • Specific metric, written down

 • Quickly and easily measurable

 • Monitored regularly
Marketing’s Leads SLA

 • How many leads of a certain quality
   does a sales rep need to make
   quota?

 • How many leads does a sales rep
   need to be busy 100% of the time?
Sales’s Follow-up SLA

 • How many call/email attempts should
   sales make for every lead of a certain
   quality to not waste leads?

 • With X leads and Y hours / month,
   how many follow-up attempts should
   sales be able to complete per lead?
Example SLA

 • Marketing will deliver 100 sales
   qualified leads per sales rep per
   month.

 • Sales will make 1 follow-up attempt in
   24 hours, with 5 attempts in 14 days.
Measure Progress Daily
Measure Progress Daily
Grade and Filter Leads
Lead Grading Tips


 • Use data, not intuition

 • Measure on company aligned metrics
Different Types of Lead Data
 Demographic Data   Behavioral Data
 •   Title          •   # Pages viewed
 •   $ Revenue      •   # Forms completed
 •   Location       •   Time since last visit
 •   # Employees    •   Blog subscription
Data Drives Lead Grade

 • How much does each variable impact
   the probability of the lead
   purchasing?

 • > $100m in revenue is 10% close rate
 • $50m to $100m is 15% close rate
 • < $50m is 2% close rate
Data Drives Lead Grade (Advanced)

 • For each lead, what is probability of
   them buying

 • Binary outcome = logistic regression

 • Interaction among variables
   (nonlinear)
What is the goal for a lead?

 •   Lead becomes opportunity?
 •   Lead closes?
 •   Lead becomes happy customer?
 •   Lead becomes high value customer?
Grow Top of Funnel
More Leads Fixes Everything

 • If you can grade and filter leads,
   getting more leads is always better.



 • More leads to sales for more volume
 or
 • Tighten filters to improve quality
Growing <20% is Actually Shrinking

 • 20%-30% of your leads database
   expires annually

 • You need to add new leads faster
   than that in order to grow
Inbound Marketing
   Search Engines      Blogs    Social Media




                    Get Found

                    Convert
What to Publish?

•   Blog
•   Podcast
•   Videos
•   Photos
•   Presentations
•   eBooks
•   News Releases
Optimize Your Content
Optimize Your Content
Publish Content to Social Media
Attract the RIGHT visitors
Attract the Right Visitors
Blogging Attracts More Visitors




     Source: Data from over 1,500 small businesses - http://hub.tm/BlogROI
More Leads, Lower Cost




      Source: survey of hundreds of businesses: HubSpot.com/ROI
Nurture Premature Leads
Lead Nurturing

 Get leads ready for sales
Segment Leads Database

 • Send more personalized messages
   and offers to different groups

 • Use each segment appropriately

 • What is your goal for each segment of
   your list?
Lead Nurturing Goals

 • You have the contact info, goal is to
   move toward a sale

 • Educate – build trust

 • Close – move closer to a sale
Lead Nurturing > Email

 •   Social media followers
 •   Blog / RSS subscribers
 •   Blog comments
 •   1-1 interactions online
Lead Alerts
Analyze the Closed Loop
Traditional Marketing


   Marketing                  Sales

 Problems:
 • Duplicate leads
 • Limited lead information
 • No feedback from sales
HubSpot Closed Loop Marketing
                                     • de-duplicate leads
                                         • import to CRM
                                             • lead intelligence



  Marketing                               Sales



   • contact info & status updates
   • closed loop data to analyze
HubSpot Closed Loop Marketing
 • Improve Marketing
   • Increase lead quality
   • Learn which marketing programs are working
     and which aren’t
   • Increase marketing ROI
 • Improve Sales
   •   Help sales prioritize leads
   •   Help sales make warmer calls
   •   Increase sales close rate
   •   Increase sales ROI
Closed Loop Marketing Measurement


   Track leads all the way through sales

   Tie website visitors to closed deals

   Tie closed deals to lead sources or
  campaigns
Measure the Lead Funnel
Track Visitors, Leads, Sales




 Track visitors. Track leads. Track customers.
Measure Campaign Effectiveness
Analyze Each Channel
Analyze Each Channel
Analyze Each Channel
Analyze Each Channel
Analyze Each Channel
Sales and Marketing Alignment

 1.   Build Communication
 2.   Establish an SLA
 3.   Grade and Filter Leads
 4.   Grow Top of Funnel
 5.   Nurture Premature Leads
 6.   Analyze the Closed Loop
Thank You

www.HubSpot.com/free-trial
Mike Volpe              Mark Roberge
VP Marketing @HubSpot   VP Sales @HubSpot
Twitter: @mvolpe        Twitter: @MarkRoberge

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How to Improve Your Sales & Marketing Alignment

  • 1. How to Improve Sales and Marketing Alignment Mike Volpe Mark Roberge VP Marketing @HubSpot VP Sales @HubSpot Twitter: @mvolpe Twitter: @MarkRoberge
  • 2. Overheard in sales… • All the leads suck. • We don’t get enough leads. • None of the leads close. • Marketing is a waste of money.
  • 3. Overheard in marketing… • Sales doesn’t follow-up on leads. • Sales isn’t happy unless we just give them POs. • Salespeople are way overpaid. • Sales takes all the credit, but none of the blame.
  • 5. Who is HubSpot? 180+ Employees in Cambridge, MA (MIT) $33m in VC (3 rounds) SaaS for Marketing at $3K-15K/year
  • 6. Complicated & Easy & Confusing Integrated
  • 7. Mike Volpe & Mark Roberge Mike Volpe Mark Roberge VP Marketing VP Sales • Built HubSpot Marketing • Built HubSpot Sales from from 0 to 25,000+ leads 0 sales reps to 50+ sales per month reps • Marketing thought leader • Sales 2.0 strategist • Employee #5 • Employee #6
  • 8. Growth 3,100 Customers Q1 2007 Q2 2010
  • 9. Sales and Marketing Alignment 1. Build Communication 2. Establish an SLA 3. Grade and Filter Leads 4. Grow Top of Funnel 5. Nurture Premature Leads 6. Analyze the Closed Loop
  • 12. Smarketing Communication • Meet frequently • Multiple relationships, not VP to VP • Desks mixed in with each other
  • 13. Smarketing Communication • Input goes both ways • Lots of feedback formats • Agree on terminology • Use data to communicate
  • 14. Agree on Terminology • What is a lead? • What is a sales qualified lead? • What is an opportunity?
  • 15. Example Terminology • A Sales Qualified Lead • Accurate contact information • Demonstrated interest in our company • Over $50m in revenue • Company based in North America
  • 16. Provide More Lead Information Give sales a more complete picture Show the activity on each lead Customize follow-up to activity
  • 21. Set an SLA for Sales and Marketing • Agree on terminology and metrics • Sales goals to deliver to Marketing • Marketing goals to deliver to Sales
  • 22. Great Sales and Marketing SLAs • Specific metric, written down • Quickly and easily measurable • Monitored regularly
  • 23. Marketing’s Leads SLA • How many leads of a certain quality does a sales rep need to make quota? • How many leads does a sales rep need to be busy 100% of the time?
  • 24. Sales’s Follow-up SLA • How many call/email attempts should sales make for every lead of a certain quality to not waste leads? • With X leads and Y hours / month, how many follow-up attempts should sales be able to complete per lead?
  • 25. Example SLA • Marketing will deliver 100 sales qualified leads per sales rep per month. • Sales will make 1 follow-up attempt in 24 hours, with 5 attempts in 14 days.
  • 29. Lead Grading Tips • Use data, not intuition • Measure on company aligned metrics
  • 30. Different Types of Lead Data Demographic Data Behavioral Data • Title • # Pages viewed • $ Revenue • # Forms completed • Location • Time since last visit • # Employees • Blog subscription
  • 31. Data Drives Lead Grade • How much does each variable impact the probability of the lead purchasing? • > $100m in revenue is 10% close rate • $50m to $100m is 15% close rate • < $50m is 2% close rate
  • 32. Data Drives Lead Grade (Advanced) • For each lead, what is probability of them buying • Binary outcome = logistic regression • Interaction among variables (nonlinear)
  • 33. What is the goal for a lead? • Lead becomes opportunity? • Lead closes? • Lead becomes happy customer? • Lead becomes high value customer?
  • 34. Grow Top of Funnel
  • 35. More Leads Fixes Everything • If you can grade and filter leads, getting more leads is always better. • More leads to sales for more volume or • Tighten filters to improve quality
  • 36. Growing <20% is Actually Shrinking • 20%-30% of your leads database expires annually • You need to add new leads faster than that in order to grow
  • 37. Inbound Marketing Search Engines Blogs Social Media Get Found Convert
  • 38. What to Publish? • Blog • Podcast • Videos • Photos • Presentations • eBooks • News Releases
  • 41. Publish Content to Social Media
  • 42. Attract the RIGHT visitors
  • 43. Attract the Right Visitors
  • 44. Blogging Attracts More Visitors Source: Data from over 1,500 small businesses - http://hub.tm/BlogROI
  • 45. More Leads, Lower Cost Source: survey of hundreds of businesses: HubSpot.com/ROI
  • 47. Lead Nurturing Get leads ready for sales
  • 48. Segment Leads Database • Send more personalized messages and offers to different groups • Use each segment appropriately • What is your goal for each segment of your list?
  • 49. Lead Nurturing Goals • You have the contact info, goal is to move toward a sale • Educate – build trust • Close – move closer to a sale
  • 50. Lead Nurturing > Email • Social media followers • Blog / RSS subscribers • Blog comments • 1-1 interactions online
  • 53. Traditional Marketing Marketing Sales Problems: • Duplicate leads • Limited lead information • No feedback from sales
  • 54. HubSpot Closed Loop Marketing • de-duplicate leads • import to CRM • lead intelligence Marketing Sales • contact info & status updates • closed loop data to analyze
  • 55. HubSpot Closed Loop Marketing • Improve Marketing • Increase lead quality • Learn which marketing programs are working and which aren’t • Increase marketing ROI • Improve Sales • Help sales prioritize leads • Help sales make warmer calls • Increase sales close rate • Increase sales ROI
  • 56. Closed Loop Marketing Measurement Track leads all the way through sales Tie website visitors to closed deals Tie closed deals to lead sources or campaigns
  • 58. Track Visitors, Leads, Sales Track visitors. Track leads. Track customers.
  • 65. Sales and Marketing Alignment 1. Build Communication 2. Establish an SLA 3. Grade and Filter Leads 4. Grow Top of Funnel 5. Nurture Premature Leads 6. Analyze the Closed Loop
  • 66. Thank You www.HubSpot.com/free-trial Mike Volpe Mark Roberge VP Marketing @HubSpot VP Sales @HubSpot Twitter: @mvolpe Twitter: @MarkRoberge