Organizations still living in a Field Marketing 1.0 world need to understand that they've only taken the first step of a long and evolving journey. As our survey numbers show, companies now taking the critical '2.0' next step are gaining a clear competitive advantage by turning buying possibility into probability.
Wilton, CT (PRWEB) September 4, 2008
SiriusDecisions, the world's leading source for business-to-business sales and marketing best-practice research and data, has long stressed the importance of establishing a strong partnership between sales and marketing to create product demand. In its new survey, the company has now learned that organizations building on this "1.0" foundation by adopting Field Marketing 2.0 principles are realizing significant revenue gains through dramatically improved lead conversion rates.
How dramatic? The numbers tell the story: According to the SiriusDecisions survey, companies instituting Field Marketing 2.0 practices will close between two- to five-times more sales opportunities than b-to-b organizations devoting their budgets to traditional lead generation programs. What's this "magic" 2.0 formula for success?
"Field Marketing 2.0 is basically a framework to track and review the outcome of activity designed to create sales opportunities," notes Tony Jaros, SiriusDecisions Vice President of Research. "It includes processes that support broadening marketing impact at later stages of the buying cycle, promotes accountability by assigning 'ownership' for sales readiness roles and responsibilities, leverages the marketing value of new technology-enabled tools, and provides metrics that support the budgetary business case by identifying benefits in tangible terms."
Mr. Jaros continues: "We've found that potential buyers now have much greater information demands as they advance through purchasing cycles, and that's when 2.0 principles can really turn marketing dollars into the sales opportunities most likely to lead to closed deals."
Setting the industry bar for what it terms a new "Demand Ecosystem" in b-to-b -- helping to redefine the strategies, benchmarks and best practices to drive the next generation -- SiriusDecisions depicts the five stages of lead management success as follows: Inquiries, Marketing Qualified Leads, Sales Accepted Leads, Sales Qualified Leads and finally Closed/Won Business. Together, these stages form the SiriusDecisions "Demand Waterfall" which visually depicts the roadmap to conversion-rate success.
In the new survey, the company has identified top "Waterfall" organizations that it considers to have instituted a series of strong 2.0 processes and collected their conversion rates. Overall result highlights, broken down by SiriusDecisions into three corporate categories -- Average, Strong Process or Best-in-Class performance -- include:
- Using the conversion rates at each Waterfall stage, starting with 1,000 inquiries in each case, the SiriusDecisions study shows that a "strong process" organization will close more than twice the amount of those in the "average" category -- and that "best-in-class" organizations will truly outperform with a more than fivefold increase in closed deals.
- For an average sales price (ASP) of $50,000, strong process organizations will realize $165,000 more in revenue per 1,000 inquiries than an average organization. Using an ASP of $150,000, the number jumps to an additional $595,000.
- And, for best-in-class companies, the impact is even more dramatic. Assuming an ASP of $50,000, those companies will realize a $550,000 revenue gain per 1,000 inquiries compared to average organizations -- and a whopping $1.65 million more revenue using an ASP of $150,000.
In today's turbulent economic times, eye-opening numbers indeed.
Tony Jaros concludes: "Organizations still living in a Field Marketing 1.0 world need to understand that they've only taken the first step of a long and evolving journey. As our survey numbers show, companies now taking the critical '2.0' next step are gaining a clear competitive advantage by turning buying possibility into probability."
For more detailed survey information, or to learn more about the extensive research the firm has done to determine demand creation best practices, please visit http://www.siriusdecisions.com or contact Tony Jaros at (203) 665-4013.
SiriusDecisions is the world's leading source for business-to-business sales and marketing best practice research and data. SiriusDecisions Executive Advisory Services, Management Consulting Services, Benchmark Assessment Services and Events provide senior-level executives with the sales and marketing operational intelligence required to improve topline performance. The unique combination of thought leadership, benchmark data, analytic tools, best practices and access to a peer and analyst network allow SiriusDecisions clients to quickly receive the critical insight they need to make decisions effectively. For more information, visit http://www.siriusdecisions.com.