The playbook isn't always right
We have been working with a SaaS start-up recently. They scaled quickly to £2.1m ARR but have experienced three quarters back to back of static revenue (+/- 4%).
Our engagement has been to get the revenue wheels spinning faster and over the first measurable quarter we have seen an impressive 18% uplift.
We tried something new, we ripped up their 2 year old playbook and took a different approach to metrics.
This is not necessarily right for every startup, but with an aligned focus, allowing the right people to work on the right things, the results have rapidly followed.
After reviewing their lead creation funnels, it became apparent the visualization and follow-up of leads (MQLs) was not effective, nor were their sales team motivated by leads generated by marketing. Their lead scoring was skewed, marketing did not have the time to focus on educating prospects, sales were playing a blame game for poor quality leads. CRM workflows were driving over-communication.
Firstly, we removed the tracking of MQLs, the lead scoring at best made them suspects.
We collaborated with marketing to create 4 new lead magnets, strong educational content backed up with a webinar. All prospect engagement from this work would be tracked as an ‘Inbound Qualified Lead (IQL)’. Sales agreed to a 1 day follow up time frame for the newly formed IQLs. We added more reward and recognition.
We then did the same with ‘Platform Qualified Leads (PQL)’. Any prospect conducting a platform trial were tracked through a parallel funnel. It became easier to visualize where the lead originated and how many leads were also IQLs. Sales agreed to a 1 hour follow up of PQLs.
Sales Qualified Leads (SQL) became a holding area. These were classified as leads generated by the sales team through their own outbound activity.
We then implemented ‘Revenue Qualified Leads (RQL)'. These were the pipeline opportunities qualified not through BANT but through questions that identified the Rational, Emotional, Individual and Company buying triggers.
- 18% revenue uplift within the first measurable quarter
- 32% of closed won business originated as an IQL
- Marketing have new found time and focus to conduct deep education with prospects
- Sales are more focused on closing more leads who are in a buying cycle
- 8/10 company employees felt sales and marketing were more aligned in the following quarter