Professional Documents
Culture Documents
Beyond Measurement Advanced Demand Waterfall Use Cases
Beyond Measurement Advanced Demand Waterfall Use Cases
Advanced Demand
Waterfall Use Cases
Jason Hekl
Vice President
14 May 2015
Terry Flaherty
Sr. Research Director
Executive Summary
Key issues
Too few organizations have utilized the Demand Waterfall beyond functional
alignment, process denition and basic measurement
Advanced Demand Waterfall applications require the addition of new data
elements, collection strategies and analysis methodologies
Aggregate Demand Waterfall reporting masks insights and diagnostics that can be
applied to optimize and improve marketing and sales programs
SiriusPerspective: With the right data and process foundation, the Waterfall can be
used to analyze historical performance, diagnose issues and predict future success.
Inquiry
Outbound
Inbound
Performance Measurement
Marketing Qualication
Automation Qualified Leads (AQLs)
Teleprospecting Accepted Leads (TALs)
Teleprospecting
Qualified Leads (TQLs)
Process Diagnostics
Teleprospecting Generated
Leads (TGLs)
Sales Qualication
Sales Generated Leads
(SGLs)
Revenue Forecasting
Sales Accepted
Leads (SALs)
Demand Planning
Close
Won Business
SiriusPerspective: With the right data and process foundation, the Waterfall can be
used to analyze historical performance, diagnose issues and predict future success.
Inquiry
Outbound
Inbound
Performance Measurement
Marketing Qualication
Automation Qualified Leads (AQLs)
Teleprospecting Accepted Leads (TALs)
Process Diagnostics
Teleprospecting Generated
Leads (TGLs)
Teleprospecting
Qualified Leads (TQLs)
Sales Qualication
Revenue Forecasting
Sales Accepted
Leads (SALs)
Close
Context Filters
Demand Planning
Won Business
SiriusPerspective: Understanding a leads current Waterfall stage and the path it took is
critical for measuring the eciency and eectiveness of this process.
Stage
Arrival Date
INQ
2/7/15
AQL
3/11/15
TAL
3/11/15
TQL
3/21/15
SAL
3/23/15
SQL
4/23/15
C/W
2015 SiriusDecisions. All Rights Reserved
Current Stage
Passport
Identies Current
Stage in Waterfall
Volume
Conversion Rate
Velocity
What do I currently
have in each stage of
the Waterfall?
Aggregate
Data lters
provide
context
10
Business
Units
Geographies
Campaign
Creation
Date
Customer
Types
Polling Question
How would you rate the maturity of your organizations current
Waterfall data collection and analysis methodology?
Beginner
Intermediate
Advanced
Best practice
11
13
Step
Step
Step
Step
Step
Dene
Waterfalls
Isolate
Cohorts
Build
Dashboards
Convene
Council
Diagnose
Problems
14
Step 3
Step 4
Step 5
US and CAN
Nordics
15
China
TBD
Revenue
Dene
Requirement
Waterfalls
Isolate
Cohorts
Step 3
Campaign Campaign
Out of
#1
#2
Campaign
Volume
(1000s)
Throughput
Step 4
(INQ C/W)
Velocity
(# Days)
Step 5
CPL
(USD)
Campaign Campaign
Out of
Campaign
#1
#2
24.9
19.1
8.8
1.4
3.2
1.1
2.8
0.7
3.1
1.1%
3.7%
1.9%
3.6%
1.3%
3.1%
1.4%
2.6%
2.2%
64
61
69
76
88
79
85
84
90
$880
$914
$715
$1,080
$830
$990
$745
$685
$590
16
With Waterfalls
dened, isolate
cohorts by lead
origination lters
and analyze for
volume, conversion
and velocity
Campaign
#2
NonCampaign
Isolate
Cohorts
24,900
19,100
8,800
Step 5
MQL
SQL
Step 4
WON
Build
Dashboards
INQ
Revenue
Dene
Requirement
Waterfalls
6.0%
1,494
65.5% 15
979
28.0% 40
13.7%
7.5%
2,617
90.0%
Conv% Velocity
660
15
90.0%
2,355
30.0%
Volume
20
594
41
28.0%
42
274
707
166
$30.1M 64
$69.9M 61
$14.1M 69
17
Deals Won
Value
Cycle
Operationalize
measurements into
management
dashboards, giving
visibility into both
program
performance and
eectiveness of lead
management
processes
|-----------------SLAs IN COMPLIANCE---------------|
AQLs
Sent
TALs
Accepted
Engaged in
8 hrs.
Engaged in
8-24 hrs.
Engaged in
24-48 hrs.
SLA
adherence
40,392
40,392
[85%]
3,231
[8%]
19,792
[49%]
9,694
[24%]
32,718
[81%]
Step 4
Step 5
2015 SiriusDecisions. All Rights Reserved
Engaged in
72-96 hrs.
Engaged in
96+ hrs.
SLA not
adhered to
2,424
[6%]
2,020
[5%]
3,231
[8%]
7,674
[19%]
18
Operationalize
measurements into
management
dashboards, giving
visibility into both
program
performance and
eectiveness of lead
management
processes
Inquiry
Outbound
Inbound
Marketing Qualication
Automation Qualified Leads (AQLs)
Teleprospecting Accepted Leads (TALs)
Teleprospecting
Qualified Leads (TQLs)
Teleprospecting Generated
Leads (TGLs)
Sales Qualication
Sales Generated Leads
(SGLs)
Sales Accepted
Leads (SALs)
Close
Convene
Council
Won Business
Step 5
2015 SiriusDecisions. All Rights Reserved
19
Reinforce functional
daily management
with a crossfunctional lead
management council
that meets
periodically to
review and optimize
programs and
processes
Isolate
Cohorts
Build
Dashboards
Convene
Council
Diagnose
Problems
4
5
Ask Why
Form Hypotheses
Test Hypotheses
Ongoing
optimization
requires a diagnostic
approach to
identifying and
address
underperforming
programs and
processes
21
Step
Step
Step
Step
Step
Identify
Patterns
Evaluate
Hypotheses
Assess
Processes
Prove
Hypotheses
Take
Action
22
0.38%
Acme
0.65%
Peers
Step 2
5.7%
Step 3
Step 4
Step 5
6.8%
10.7%
Marketing Function
(INQ TQL)
57.0%
54.0% 9.9%
Automation
Qualication
(INQ AQL)
6.1%
Sales Function
(TQL Won)
19.8% 31.0%
Tele Qualication
(AQL TQL)
29.1% 22.0%
Sales Qualication
(TQL SQL)
23
21.0%
Sales Close
(SQL Won)
Input (AQL)
Evaluate
Hypotheses
Step 3
AQL
Step 4
Step 5
2015 SiriusDecisions. All Rights Reserved
TQL
Telequalication skills/enablement
gaps
In-Process
xBxx
Over-qualication of TQL
Output (TQL)
24
Not Likely
No
Dene
3
Possibly
No consensus on lead
denition
Engage
2
Probably
Step 4
Timing
1
Denitely
No timeframe for
acceptance, engagement or
lead timeouts
Step 5
Enforce
Evaluate
Hypotheses
Assess
Processes
25
Assessments
compare current
process
performance to
best practices
27%
57%
1.4
38
Quality
% Calls With Live Interaction
8%
5%
3.2
26
Both service-level
and call quality
issues are impacting
conversion eciency
Teleservices
SLA Governance
Notications
Escalation
Yield Analysis
Call Scoring
Sales Alignment
Culture
Take
Action
2015 SiriusDecisions. All Rights Reserved
27
28
Step
Step
Step
Step
Step
Analyze
Volume
Forecast
Value
Forecast
Timing
Identify
Gaps
Adjust
Plan
29
6,215
AQL
171
TAL
569
TQL
34
SAL
54
SQL
3,568
Step 5
2015 SiriusDecisions. All Rights Reserved
30
Current
Conversion
Net
Conversion
to C/W
Estimated
Close/Won
INQ
6,215
54%
0.30%
19
$2,595,293
AQL
171
83%
0.55%
$132,508
TAL
569
12%
0.67%
$530,012
TQL
34
79%
5.55%
$26,5006
SAL
54
39%
7.02%
$530,012
SQL
68
18%
18%
12
$1,722,540
ASP
Expected
Revenue
$140,000
31
Estimated
Revenue
$5,775,367
Avg. Days to
Close
Quarter
Impact
Estimated
Revenue
INQ
40
221
$2,595,293
AQL
14
181
$132,503
TAL
27
167
$530,012
TQL
12
140
$265,006
SAL
68
128
$530,012
SQL
60
60
$1,722,504
$5,775,367
32
Waterfall stage
velocity metrics can
be leveraged to
forecast likely
revenue impact by
stage and quarter
Forecast
Timing
$3,000,000
$2,500,000
$2,000,000
Revenue
Forecast
Value
$1,500,000
$1,000,000
Identify
Gaps
Step 5
$500,000
$0
Q1
Q2
Q3
Expected Revenue
$1,722,540
$1,325,031
$2,727,797
Revenue Goal
$1,500,000
$2,000,000
$2,500,000
33
In this scenario, we
face an expected
shortfall in Q2, a
potential surplus in
Q3 and a total future
value coverage of
96% ($5.78M on $6M
goal)
Service-Level
Management
Acceleration
Passive Recycle
Nurtures
Pipeline
Acceleration
Economic Value
Tools
Sales Hando
Compliance
Culture
34
SiriusPerspective: Demand planning provides critical insight into both the Waterfall
eciency and volumes required to meet future revenue goals.
35
Step
Step
Step
Step
Step
Set
Goal
Reverse
Waterfall
Align
Campaigns
Evaluate
Scenarios
Finalize
Plan
36
$28,000,000
Marketing Sourced %
Step 3
Step 4
25%
$7,000,000
Budget
Acquisition Programs
$840,000
Step 5
2015 SiriusDecisions. All Rights Reserved
37
Marketings target
represents 25% of
total revenue with
an $840K budget
Waterfall Analysis
Revenue Goal
$7,000,000
Deal Size
$40,000
Conversion
Point
Conversion
Rate
Stage
Required
Waterfall
INQ to AQL
54%
INQ
16,763
AQL to TAL
83%
AQL
9,052
TAL to TQL
12%
TAL
7,513
TQL to SAL
79%
TQL
902
SAL to SQL
39%
SAL
71,216
SQL to C/W
18%
SQL
278
C/W
50
38
Leveraging
current Waterfall
conversions, 16,763
inquiries are
required to reach
the revenue goal
Budget Analysis
Current Plan
Blended Cost per Inquiry
Inquiries Required
$60
16,763
Budget Allocation
Acquisition
$1,005,782
Nurture
Enablement
Total Budget
$1,005,782
$840,000
Budget Gap
($165,782)
39
Reverse
Waterfall
Align
Campaigns
Evaluate
Scenarios
Step 5
$7,000,000
Deal Size
$40,000
Current
Conversion
Improved
Conversion
Stage
Required
Waterfall
Improved
Waterfall
INQ to AQL
54%
54%
INQ
16,763
10,934
AQL to TAL
83%
83%
AQL
9,052
5,905
TAL to TQL
12%
15%
TAL
7,513
4,901
TQL to SAL
79%
79%
TQL
902
735
SAL to SQL
39%
41%
SAL
71,216
581
SQL to C/W
18%
21%
SQL
278
238
C/W
50
50
40
Implementing
nurture programs,
enablement and SLA
governance
improves conversion
Budget Analysis
Current Plan
Improved Plan
$60
$60
16,763
10,934
Budget Allocation
Acquisition
$1,005,782
$656,036
Nurture
$100,000
Enablement
$75,000
Total Budget
$1,005,782
$831,036
$840,000
$840,000
Budget Gap
($165,782)
$8,964
41
Changing
investments to midstage and lateWaterfall programs
enables us to meet
revenue goals with
existing budgets
Polling Question
Which Waterfall use case do you think will add the most value for
your organization moving forward?
Performance management
Waterfall diagnostics
Revenue forecasting
Demand planning
42
Action
Items
Marketing
Ensure that the necessary data elements, views metrics
and lters are in place to support advanced use cases
Leverage the Demand Waterfall as a strategic platform to
drive change in operations and planning
Sales
Champion governance of standardization in the lead
management process to support Waterfall data collection
Incorporate recurring Waterfall review meetings to
increase attention on early-stage opportunities
Product
Determine how the Demand Waterfall can be used to
model demand creation objectives by oering
Consider Waterfall use cases that yield important insights
into product demand and sales eectiveness
2015 SiriusDecisions. All Rights Reserved
43
Recommended
Research
44