Tips and tricks for getting started with MDP.

 
 

Using MDP for the First Time

Step 1

Before entering any information, define how you want to measure and monitor your marketing metrics. Define how you want to segment your marketing organization, whether that is by product, product category, geography, or channel. You may or may not want to include a secondary level of segmentation. For example, you may decide to segment first by major region (e.g. North America, Europe, etc.) and then by Product within each of those regions. You may decide instead to further segment by geography (e.g. for North America, segment that region into West, Central, and East).

Step 2

Create these segments and subsegments in the application. 

Step 3

Review the required inputs and assumptions information to enable the model. This can be found on the assumptions tab.  The inputs you will need to enter for each subsegment and year are:

  • Annual Quota per Sales Rep or Target Revenue
  • % Revenue from New Business
  • Cost per Lead
  • % of Leads from Marketing – New Business
  • % of Leads from Marketing – Add-On Business
  • Lead to Opportunity Conversion Rate
  • Opportunity to Close Rate – New Business
  • Opportunity to Close Rate – Add-On Business
  • Sales Cycle – New Business
  • Expected Contract Length – New Business
  • Price per User – New Business
  • Users per Closed Deal – New Business
  • Sales Cycle – Add-On Business
  • Expected Contract Length – Add-On Business
  • Price per User – Add-On Business
  • Users per Closed Deal – Add-On Business
  • Sales Headcount by Month (Optional)
  • Active Quota Carriers by Month
  • Projected/Actual Leads by Month
  • Projected/Actual Opportunities by Month
  • Projected/Actual Pipeline by Month
  • Projected/Actual Revenue by Month

Step 4

Marketing Demand Planning is designed for any type of selling cycle – from immediate transactions with one time payments (think buying a candy bar) to the most complex selling cycle (recurring revenue with multiple users/products). If you’re not sure how to set up your business, give us a quick call and we’ll assist you.

MDP – Glossary of Terms

Data Input Sections and Application Layout

Marketing Region – The highest level grouping defined by your organization. This grouping can be by sales region, product, product family, or any other way that your company defines its sales or go-to-market strategy.

Marketing Segment – The secondary level for sales and marketing defined by your organization. Each segment is a subset of the Marketing Region. For example, if you define marketing regions geographically, you may have a Marketing Region = North America, and subsequently have several Marketing Segments assigned to that region. For example, these Marketing Segments may be East, Central, and West.

Inputs and Assumptions – This is the area of the Lead Model where you enter your marketing assumptions, sales cycle assumptions, and revenue assumptions and goals. Each area of Inputs and Assumptions are defined here:

Year – This field defines the year in which the associated assumptions pertain

Quota, Revenue Sources, and Acquisition Costs

Annual Quota per Sales Rep – The average quota per sales rep in the particular year*

% of Revenue from New Business – The portion of your company’s revenue you expect to come from new business (new customers)

% of Revenue from Add-On Business – The portion of your company’s revenue you expect to come from add-on business (existing customers) – (calculated)

Cost per Lead – Expected cost of generating a new lead through your marketing channels

Cost per Opportunity – Expected cost of generating a new opportunity through your marketing channels (calculated)

Marketing and Pipeline

% of Leads from Marketing (New Business) – The portion of your new business leads that marketing is required to deliver for your company

% of Leads from Marketing (Add-On Business) – The portion of your add-on business leads that marketing is required to deliver for your company

Lead to Opportunity Conversion Rate – The % of leads you expect to convert to qualified sales opportunities

Opportunity to Close Rate (New Business) – The % of qualified, new business marketing opportunities in your pipeline you expect to close

Opportunity to Close Rate (Add-On Business) – The % of qualified, add-on business marketing opportunities in your pipeline you expect to close

New Business

Sales Cycle – The expected average number of months that it takes for an opportunity to close

Expected Contract Length – Expected length of sales contract for your product or service

Price per User – Price per user per month for your product or service

Users per Closed Deal – Number of users or products per opportunity

Add-On Business

Sales Cycle – The expected average number of months that it takes for an opportunity to close

Expected Contract Length – Expected length of sales contract for your product or service

Price per User – Price per user per month for your product or service

Users per Closed Deal – Number of users or products per opportunity

Active Quota Carriers

January – December – For each month of the specific year, enter the number of sales reps with quota you expect to have on staff

Projected/Actual Leads

January – December – For each month of the specific year, the actual number of leads marketing created for this segment or the number of leads you project marketing will create for this segment

Projected/Actual Opportunities

January – December – For each month of the specific year, the actual number of opportunities marketing created for this segment or the number of opportunities you project marketing will create for this segment

Projected/Actual Pipeline

January – December - For each month of the specific year, the actual pipeline marketing created for this segment or the pipeline you project marketing will create for this segment

Projected/Actual Revenue

January – December – For each month of the specific year, the actual revenue marketing created for this segment or the revenue you project marketing will create for this segment

 

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Marketing Budget Management - 2015



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