1. Commercial Sales & Marketing Assessment
Steering Committee Update

2. PROBLEM STATEMENTS
Recent Tiger Team assessments found areas of concern & examples of initiatives being performed out of sequence
All regions missed the commercial number last fiscal year
There is no organic growth in the commercial segment
There is a lack of a centralized sales or marketing strategy. No mechanism exists to ensure best practices are shared internally
There may be wasted efficiency and duplication of efforts
There has been little recent sales training at the rep or manager level
The sales process has not been adopted by the field
Market Segmentation work has been performed, but lacks Account level and Buyer level segmentation

3. OBJECTIVES & DELIVERABLES
PHASE 1:
SALES & MARKETING ASSESSMENT
Objective:
Assess current state using evidence from the market, customer, field and corporate lenses to identify and quantify sales and marketing effectiveness gaps.
Identify, validate and quantify opportunities for growth.
Prioritize the opportunities for growth based on the financial return, level of effort and probability of success.
DELIVERABLES
Sales and Marketing Gap/Gulf Analysis
Sales and Marketing Critical Success Factors
Execution SWOT
PHASE 2:
SALES & MARKETING STRATEGY PREPARATION
Objective:
Work with senior management to prepare and present a Sales & Marketing Strategy using the results of the Assessment. The Strategy will address gaps in the company’s operating plan.
DELIVERABLES
A Sales & Marketing Strategy document that covers the assessment areas from the framework on the next slide
Feasibility Analysis / Resource Assignments

4. Assessment Areas: Phase 1

5. Strategy | Market Segmentation
Current State
Current penetration is 20% overall (1)
Market has been segmented by employee size and vertical
Segmentation has not yet created actionable plans for sales on how to attack segments with most potential
Targeting by buyer behavior (low tech, comfortable with tech and high tech aptitude) has been analyzed
Product plans are based on horizontal solutions
Some Competitor Analysis has been generated but it relies largely on feature function comparison, not how competitors market and sell
Actionable plans need to be determined to attack vulnerable competitors (by competitor)
Commercial Strategy plan may be outdated
Best Practice
Leverage ACME INC. Segmentation and align to marketing and sales strategy:
Total Available Market - No. of businesses passed and communications spend by small, med. and enterprise
Competitor Analysis – view into how the ILEC, CLEC’s and cable position their services and win & retain customers
Product/market Mix Assessment - determine the appropriate product sets to lead with in acquisition. Determine market size by product set.
Marketing SWOT – determine strengths and weaknesses of each competitor and how to differentiate on what matters to each segment
Product/Sales Lifecycle Assessment – determine a upsell methodology for each segment that informs the next most likely product a customer will purchase
Sources
(1)“Commercial Strategy” presentation, Executive interviews, Market analysis
Impact
ACME lacks an understanding of which commercial prospects and customers it should target by product and by geo. Therefore, ACME INC. has have an incomplete understanding of how to staff and deploy resources in order to increase penetration to 40% in 5 years (1). Considerations should also include competitors by region, company size, buying behaviors and verticals.

6. Account Segmentation
Focus sales’ money, time and people on the accounts which will generate the most revenue over the shortest period of time.

7. Strategy | Account Segmentation
Gulf: ACME INC. has not implemented a consistent method for determining account potential
Strategy | Account Segmentation
Current State
Opportunity to align marketing identified ICP’s to sales strategy
Sales does not incorporate results vs potential in stack ranking.
Results should be matched to potential opportunity in territory, instead of “peanut butter spread” across regions
No Propensity to Buy determination for any channel
Lack of Account Seg Model prevents Marketing from tailoring campaigns to specific industries, verticals
Best Practices
Ideal customer profiles (ICP)s identifies the “most ideal” commercial customers for ACME INC. to target
Propensity to Buy (PtB) factors provide insight into who buys, why, and when. Consists of ACME INC. and 3rd Party data.
Account Potential enables companies to project annual spend from customers and prospects. Also used for territory design modelling
Account Scoring— leverage the ICP and PtB to provide each business a score to then stack rank each account and point sales assets at it.
Account Segmentation Model – an MS Excel based tool that contains the above 4 components and allows for advanced analytics
Customer Acquisition Cost (CAC) is calculated regularly and used for resource and GTM channel planning
Customer Lifetime Value (CLV) is calculated regularly and used for service/support investment and cross-sell/up-sell planning
Sources
Documentation review, Data Review, SME interviews
Impact
Without Account Seg, ACME INC. doesn’t know how to properly set quotas or determine territories for the sales org, or which prospects and customers to devote resources towards now v. later
Sales plans and results can’t be analyzed by comparing actual results to the real potential

8. Buyer Segmentation
Help sales people understand how buyers in their accounts make purchase decisions.

9. Strategy | Buyer Segmentation
Gulf: Better understanding how/why key buyers of your solutions make purchase decisions will enable more effective demand generation
Strategy | Buyer Segmentation
Current State
Basic Buyer personas exist but do not capture all the relevant details of each buyer
BPMs have not been developed
Sales training is inconsistent/ineffective; not delivered by sales professionals, and not supported by all RSMs
Too much emphasis on ACME INC. operations/products instead of customer’s needs and buying cycle
ACME INC. is not engaging prospects early enough in buying cycle
Leads are not tracked by persona
Very few sellers (40%)(1) hitting quotas, creating a large gap between actual and target pay
Market is not aware of ACME INC. as commercial grade provider.
Desired positioning of ACME INC. as able to ‘save time’ is not aligned to all personas’ psychographic profile (1)
Best Practice
Buyer Personas capture all relevant detail on key personas on the Buying Decision Team; they are leveraged by content developers, creatives, campaign planners, and even sellers
Buying Process Maps (BPMs) visualize how your buyers purchase and track their evolution from ‘Not in the Market’ through to ‘Solution Implemented’
Buyer Value Chain Analysis shows what your buyers value from the provider -- marketing and sales related -- when engaging with them
Critical Success Factors (CSFs) establish the minimum boundary for best-in-class performance, again, by persona
Sources
(1)“Commercial Strategy” presentation, Documentation review, SME interviews, Sales Force Reports
Impact
Since ACME INC. hasn’t created complete buyer personas and buyer process maps for each type of commercial buyer, Sales and Marketing have an incomplete understanding of what stimulates latent demand with actual buyers, and how to create relevant marketing content and run effective campaigns. Buyer Segmentation is a must for demand generation, sales productivity, decreasing churn rate and improving client relationships.

10. ACME INC. Communications Commercial Sales & Marketing Assessment
Appendix I

11. Market Segmentation
Divide the broad target market into subsets of buyers who have common needs and priorities

12. Leverage Market Segmentation to Understand where Growth is Achievable
segmentation: Market Segmentation
Leverage Market Segmentation to Understand where Growth is Achievable
What is Market Segmentation?
It is dividing the broad target market into subsets of companies and buyers who have common needs and priorities.
What is the purpose of Market Segmentation?
To identify the market potential revenue for priority and resource allocation
What is the benefit of Market Segmentation?
Connect Corporate goals to Product, Marketing and Sales Strategy
Products positioned to top segments and horizontally to all others
Align Marketing & Sales Resources

13. TAM = Total Addressable Market Reachable over 5 years
segmentation: Market Segmentation
Example Output of Segment the Serviceable Market
TAM $3.70B
SAM $1.93B
Target $900M
ICP $525M
TAM = Total Addressable Market Reachable over 5 years
SAM = Serviceable Addressable Market. Can be reached today with build outs
Target = Immediately Serviceable
ICP = Immediately Serviceable and in top segments

14. Example Use of Market Segmentation
segmentation: Market Segmentation
Example Use of Market Segmentation
Once Segments are identified and compared to actual results, penetration and other variables by segment can be determined
Confirm: Methodology to prioritize segments: low vs high penetration, share of wallet etc.
Outcome: Actionable list of segments to attack and why

15. Account Segmentation
Focus sales’ money, time and people on the accounts in your market which will generate the most revenue over the shortest period of time.

16. Account Segmentation is the Foundation for Sales and Marketing Success
segmentation: account Segmentation
Account Segmentation is the Foundation for Sales and Marketing Success
Demand Generation, Lead Management
Quota Setting
Account Potential
Compensation
Account Prioritization & Coaching
Talent Management
Territory Design

17. Account Segmentation Workbook
segmentation: account Segmentation
Account Segmentation Model
Industry
Sales of Customer
Bookings
Geography
Customer Segmenting
Account Segmentation Workbook
Customer Master File
3rd Party Data
Pipeline
PtB Formula
Translation &
Transformation
Booking Potential
Revenue
Account Scoring

18. Propensity-to-Buy Factors Ideal Company Profile Factors
segmentation: account Segmentation
Account Segmentation informs Corporate Strategy
“Where should all resources (people, money and time) be allocated?”
“Who should we pursue?”
“How much can they spend?”
Account Score
Propensity-to-Buy Factors
Growth & Predictive Factors (Y-o-Y Growth %)
Ideal Company Profile Factors
Firmographic Factors (Revenue/Employee size)
Prioritized Accounts
Account Potential
Segment Potential – Over all spend of other similar companies
Share of Wallet - % of spend that ACME INC. has H M L
Prioritized
Pursue
Deprioritized
L M H
Potential

19. Example Account Scoring Formula
segmentation: account Segmentation
Example Account Scoring Formula
Company Rev.
Employee Size
Company Growth %
Industry
Total
40 pts.
35pts.
15 pts.
10 pts.
100 pts.
Total company revenue of the company
Total employee headcount in company
Company revenue growth over 3 years
Industry

20. Example Quarter over Quarter Implementation
segmentation: account Segmentation
Example Quarter over Quarter Implementation
Component
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Key Activities
Leverage Market Segmentation Analysis to connect to Corporate Goals
Conduct RACI Workshop
Combine with Account Segmentation to align Product, Marketing and Sales
Implement Product, Marketing and Sales execution plans
Continue to monitor lead process and update as necessary.
Refresh analysis
Identify execution gaps
Modify plans and take corrective actions
Incorporate market and competitive changes
Success Metrics
Market Penetration Calculation
Market Penetration & Share of Wallet
% Attaining Quota
Financial Metrics
Ownership
Accountable – TBD
Responsible – TBD
Consulted - Marketing and Sales Leaders
Informed – Executive Leadership
Risks
Misalignment of Marketing Strategy to Corporate Goals
Incorrect understanding of where growth will come from
Misalignment of Marketing and Sales Strategy
Strategy breaks down at the sales activity level e.g. they do not shift activity to prioritized segments
Sales operates on a ‘peanut butter’ spread of quota
Results are not compared to potential
Do not hit the number

21. Buyer Segmentation
Help sales understand how buyers in their accounts make purchase decisions.

22. Standardize Training and Buyer Engagement
segmentation: BUYER Segmentation
Buyer Segmentation Toolkit Capabilities
Standardize Training and Buyer Engagement
Think Outward-In vs. Inward-Out
Understand who your buyer is and what influences their decision making process
Use Buyer Personas and BPMs to engage your buyer at the right time with the right message
Align Conversations and Solution Positioning with Persona needs at each point in the process

23. Finalize Recommendations
segmentation: BUYER Segmentation
BPMs Help the Customer Make a Purchase Decision
What is a Buying Process Map?
A Buying Process Map is a representation of the decision making process which a specific persona goes through prior to working with a vendor
What does it mean to use a Buying Process Map?
It means you understand where the buyer is in their decision making process
How does a Buying Process Map help?
Focused Conversations: Sales and Marketing use BPMs to target messaging directly at Personas and their stage in the buying process
Alignment to the Buyer: BPMS help direct sales and marketing activities and become more buyer-centric
Move Opportunities Forward: BPMs enable sales and marketing to anticipate questions and concerns the buyer has and address them upfront
Not in the Market
Stimulated
Problem Definition
Options
Evaluation
Finalize Recommendations
Execution

24. Finalize Recommendations
segmentation: BUYER Segmentation
Example BPM Showing Two Stages
Finalize Recommendations
Buyer Action
Questions Dave Asks
Check References
Do the references validate my decision?
Am I in compliance with my purchasing department policies?
Do these guys do what they said they would?
Are these references relevant?
Can the project team get it done?
Get Boss’s Approval
How am I going to position this with my boss?
What’s it going to take to get my boss to go along with this?
Dave
Title: Dir. of Network (Enterprise)
Segment/Role: Ent (Buyer)
Employees: 500+
Execution
Buyer Action
Questions Dave Asks
Submit Final Approval to Formal Approval Process
Who do I have to get to sign it?
How do I get them to sign it quickly?
Will the vendor get started before the final SOW is signed?
What is the time lag?
What is the alternative to a signed contract to kick the project off?

25. Leveraging Personas & BPMs in Marketing
segmentation: BUYER Segmentation
Leveraging Personas & BPMs in Marketing
Persona / BPM
Marketing Input
Creative Brief
Marketing Collateral
Creation of Marketing Collateral
Design and Execution of Marketing Campaigns
SEO – Organic
High Value Searched Content
Persona / BPM
Collateral and Cadence
Offer
Direct/

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