4/27/2017 6:39 PM © 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Mature Your MAP Strategy to Ensure Cloud Sales Success 4/27/2017 6:39 PM Mature Your MAP Strategy to Ensure Cloud Sales Success Tim Fant N3 Vice President, Dynamics CRM Online US Inside Sales Team © 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Key issues Executive Summary What you will walk away with 4/27/2017 Executive Summary Key issues Many technology organizations have adopted Marketing automation platforms (MAPs) but may not be utilizing them in the best way to support selling Cloud solutions. Cloud selling is different than traditional technology sales – to succeed companies need to revisit their MAP strategy. What you will walk away with A solid understanding of how Cloud solutions are shifting the technology sales paradigm Key components to a successful MAP strategy for selling Cloud solutions A framework for maturing your organization’s MAP strategy

The Healthier the Roots, the Greater the Growth SiriusPerspective: Robust demand creation includes elements that both support and grow demand. Planned Campaigns Perpetual Leverage Rapid Response Growing Demand Supporting Demand Strategic Foundation Infrastructure Organizational Structure Process Definition SiriusDecisions: A demand creation engine with a strong foundation of supporting elements is more likely to persevere and adapt successfully to changing market conditions. Buyers are in control, and their needs, preferences and perceptions are continuing to evolve. Time and again, organizations with deep buyer insight, strong sales and marketing alignment, a metrics-driven orientation, and the ability to leverage technology have recorded the highest levels of success. Yet even the most advanced marketers struggle with the multiplicity of variables (many of which are not visible to the marketer) that drive the buying process.

What is a Marketing Automation Platform? Marketing Automation as a technology solution that helps enable the seeding, creation, nurturing and acceleration of demand among prospects and customers. MARKETING AUTOMATION PLATFORM Program Management Lead Management Platform Management Segmentation Automated Programs Asset Storage Email Landing Pages Forms Scoring Routing Sales Enablement Data Update Database SFA Integration Web site integration Security Email deliverability Reporting SiriusDecisions: What is marketing automation? Non-standard functionality: Dynamic web site content delivery, Search PPC, Social, Print, Mobile applications, resource management, software ecosystem

Adoption Is Growing Rapidly SiriusPerspective: There are nearly 11 times more b-to-b organizations with marketing automation today than there were in early 2011. 2011 1 2 3 4 5 6 7 8 9 10 12 11 The growth rate of b-to-b marketing automation adoption is ~22% per year 2012 2013 2014 15K 10K 5K 0K Total B-to-B Customers SiriusDecisions: Marketing automation adoption continues to grow, however many companies still struggle with it’s value and how best to leverage it to support their demand creation efforts. Cloud technology has changed how technology companies sell – and marketing automation is a key component in success in that paradigm shift. If you’re simply leveraging MAP to push out content and emails, you’re limiting your chances of success.

Cloud Technology is Rapidly Changing Technology Sales 4/27/2017 Cloud Technology is Rapidly Changing Technology Sales   Traditional Technology Sales Cloud Technology Sales Contracting + Costs High Upfront Expense Long-term Commitments High Cost to Change Low-to-no Upfront Expense Usage-based Pricing with Subscription vs. Contracts Low Cost to Change Customer Buying Patterns IT with Business Decision Makers as Influencers Whole organization purchase / install Business Decision Makers with IT Supporting Self-service purchase / install Segmentation Focus Vertical, Revenue, # of employees, etc. Opportunity Size + Customer Lifetime Value Sales Focus Acquisition of Enterprise Accounts Land + Expand Serve Both Enterprise + SMB Revenue Model Acquisition + Long-Term Contract Renewals Customer Success + Adoption + Cross Sell + Upsell Target Accounts Focus on large enterprise accounts Ability to serve smaller accounts, opening up new markets MARCEL: We’re changing direction now to focus on the Cloud and talk about how marketing Cloud solutions is different than traditional technology. Cloud selling has created a dramatic shift in how customers buy technology. Cloud solutions have allowed customers to move away from long-term, high cost contracts – and solution providers no longer make their money there; they make it on usage and expansion. Your customer base has expanded from going after large enterprise accounts to being able to serve small and medium sized businesses.

Transitioning from the Buyer’s Journey to the Customer Journey 4/27/2017 Transitioning from the Buyer’s Journey to the Customer Journey Traditional Technology Sales Cloud Technology Sales IT + Influencers (Business Decision Makers) MARCEL: So what are the impacts on marketing strategies. The focus shifts from simply the buyer’s journey, closing the sale, to the full customer journey. Your marketing and sales efforts must target the traditional funnel but also target beyond the initial sale to ensure solution enablement, utilization and expansion of seats and features. Cloud has also created a significant shift in target audience and made that audience much larger. It’s no longer IT buying for the whole organization; now IT is buying as well as the BDMs and they are frequently self-serving. According to SiriusDecisions, 67% of the buyer’s journey is now done digitally, and often customers are have tried the solution before ever speaking with a sales person. Business Decision Makers (Marketing, HR, IT, Finance)

Marketing Automation is Critical to Cloud Sales Success 4/27/2017 Marketing Automation is Critical to Cloud Sales Success Action Efficiency Audience Alignment Triggers enable Sales to strike while leads are hot. Automated response to lead flow enables marketing efforts to scale. Perpetual insights into customer behavior + need enables refined targeting. Defined lead qualification criteria enables Marketing to meet their promise to Sales. MARCEL: These changes make Marketing Automation even more critical to Cloud sales success. Why? Marketing automation allows you to define and better understand the right trigger points that lead to action / engagement at the right time in the customer journey. Your marketing content and triggers now have to essentially double but it’s not efficient / profitable for you to double your market expenses. You need a way to be efficient with your marketing resources and automation gives you the flexibility. You’re now focused on more audiences with different messages to those audiences. Marketing automation platforms provide deep analytics on customer behavior which allow you to quickly refine your messaging and targeting strategies to ensure your delivering the right messages at the right time in the customer journey. Marketing Automation also allows you to develop a deeper alignment between sales and marketing to ensure that criteria for a lead is defined and agreed upon.

How the Cloud Changes Your MAP Strategy 4/27/2017 How the Cloud Changes Your MAP Strategy Legacy MAP Buyer’s Journey Education Solution Selection Engagement Customer Journey Adoption Change Management Advocate Your Journey Extend MAP beyond initial sale to support post-sale enablement + utilization Focus content on multiple audiences needs + features Optimize lead scoring Engagement plans for all stages Establish trigger-based outreach MARCEL: So ultimately, what do you need to do to change your marketing strategy, and thus your MAP strategy, to ensure success for selling cloud solutions? Extend your MAP strategy beyond the initial sale to include strategies that focus on enablement, utilization and expansion. It’s no longer just a benefits and features conversation. You now have to understand how people are using the solution – or want to use it – and provide solution training, etc. You have to plan and develop content addressed no only to IT but also the BDMs and content needs to be customized for each audiences’ needs and the features and benefits that address them. You can leverage much of the same content to do this but the language and focus for each will be different. You need to re-evaluate – or create – lead scoring to ensure you identify actions that align to various buying and usage stages. If someone is watching several how-to videos, they may be struggling with using the solution. A sales call won’t meet their needs – but a call from a specialized technical resource may. You need to establish the right engagement plan for the various lead scores. And you need to ensure you have the outreach at the right time. Doing this up front ensures alignment between sales and marketing on the value of a lead. And finally, this change in focus requires you to invest in the right resources and processes to support the revised sales and marketing approach. Invest in resources and process…

Adopting an Integrated Sales + Marketing Paradigm 4/27/2017 Adopting an Integrated Sales + Marketing Paradigm The Cloud sales process must be INTEGRATED, AGILE + most importantly, SUPPORTED by strong sales teams + technical teams + MAP strategy. Presales Technical Support Post Sales Technical Support Market Interest Trial Account Grow Adopt Remove Blockers Sales + Marketing Integration Try to buy MARCEL: One of the major benefits and values of MAP is that you end up with an integrated sales and marketing system. In order to make all this work you need to ensure you have all the right resources in place at the right stages of the funnel – which include a MAP team and a sales team. You also need to ensure you have a well thought through process in place to support lead flow. velocity MAP: Individualized Buyer Journeys, Integrated Campaigns, Demand Creation MAP Team

Preparing for Marketing Automation 4/27/2017 Preparing for Marketing Automation SiriusPerspective: Organizations that take the time to audit their current environment and prepare for MAP will establish a foundation for success and MAP value. Project Management Project Roles Exec sponsor Project manager Stakeholders Outside services Steering committee Project Organization Team Skills assessment Centralized or hybrid Implementation schedule Risk factors Project Communication Project Environment Culture Physical location Interview process Communication Practices Standard nomenclature PM dashboards Update cadence Internal training Internal project PR Process Definition Marketing Foundation Demand type Relative targeting Personas Buying Cycle Lead Management Lead taxonomy and SLAs Lead flow Lead scoring model Lead routing rules Program Management Use Cases Content Audit Performance baseline Templates and playbooks Approval process Technology Requirements Systems Audit Enterprise data flow diagram Existing systems limitations Integration requirements Web Audit Forms Tracking Scripts Subdomains Data Audit Criteria Sources Quality Gaps Security and Legal Security policies Legal requirements Vendor Selection Platform Evaluation Platform education Objectives and metrics Decision model criteria Criteria weighting Vendor Evaluation Vendor grouping Analyst review Request For Information Vendor Meetings Reference check Model updates Vendor evaluation Contract negotiation MARCEL: Let’s the talk about the process first. Jen? SiriusDecisions: Marketing Automation requires a well thought out process. Even if you have Marketing Automation now, this process doesn’t change. It’s not just about sending emails, it’s about an end to end marketing nurture and meeting buyer at the right place in the journey. If you have a MAP strategy in place and it’s not focused on the full customer journey, you’re limiting your chances for success. You may need to revisit your strategy.

MAP Project Team: Key Roles SiriusPerspective: The definition of the project team and project roles increases alignment and improves execution. MAP Management MAP Specialist #1 MAP Coordinator #1 MAP Campaign Manager Responsible for the management of MAP specialists and the overall value that MAP provides to organization. Owns the collection, creation and distribution of best practices and working with marketers on how to apply MAP capabilities. SiriusDecisions: So now let’s talk about the right team to implement this process. These are the key roles you need to support MAP. Executes design, quality assurance (QA), execution, maintenance and reporting on automated marketing programs and email distributions. Executes standardized marketing automation requests relying on marketing playbooks, documentation and standard operating procedures.

Integrating MAP Strategy into Your Sales Team 4/27/2017 Integrating MAP Strategy into Your Sales Team Expand reach via specialized marketing strategies + inside (insourced or outsourced) sales teams. Sales Teams Technical Teams Lead Qualifier Hunter Inside Sales Deep Technical Architect (Presales) 0+ Years Experience Opp. Nurturer Hunter/Farmer Inside Sales 3+ Years Sales Experience Large Deal Rep. Hunter Inside/Field Sales + Ability to understand complex sales + Deep Technical Background 8+ Years Sales Experience MARCEL: Success in cloud sales also requires that you re-evaluate the sales resources you have in place. To be truly successful you need to align your sales team with MAP in mind – this ensures you have the right people in place to interact with customer’s at the right places in their journey. Deep Technical Architect (Post sales) Renewal Rep. Inside Sales 3+ Years Sales Experience

A Case Study of Real Results 4/27/2017 A Case Study of Real Results Driving client consumption 1. Strong tele/field sales team + Integrated MAP strategy 2. Tele team impact drives 61% incremental revenue / subscription MARCEL: When all these things come together, success can look something like this… Top 20% Accounts Generate 87% of Revenue

4/27/2017 Thank You! Q+A

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4/27/2017 6:39 PM © 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.