Savo radically boosts the effectiveness of sales and marketing teams. That’s why massive and fast growing organizations adopt KnowledgeTree to push recommended content to their sales teams.
But how do you quantify the return on investment for KnowledgeTree? We’ve distilled down the major buckets of value that sales and marketing teams focus on when calculating value. Let’s take a look.
Sales Person Efficiency
The first category we’ll take a look at is the efficiency of individual sales people. Whether you have 10 or 10,000 sales people, every minute counts. When sales people are busy with administrative tasks, busy work, or reinventing the wheel, they are not adding value.
One of the most distracting actions is building and looking for content. Sales teams recognize the importance of sales assets to their sales process. But because reps can’t find the content they need in their sales portal, they often will skip using a vital tool. Or, because they aren’t confident that the content they do find actually is right for their prospect, they may end up creating their own materials.
That not only impacts effectiveness (as we’ll see shortly), but it is also a massive productivity loss. Some industry benchmarks peg the loss of time as upwards of 32% of a sales person’s day. Multiply that across your sales team and that’s a lot of virtual sales people you’re losing.
With Savo, you’re able to radically reduce the amount of time spent looking for content because the content comes to reps. It’s automatically pushed via Salesforce.com and email, so there’s no hunting for materials.
But critically, it’s not just avoiding searching that drives efficiency. Savo identifies which content performs best in different sales situations. That means that reps are significantly more confident in the content they look to share. So usage goes way up, and time devoted to core selling does too.
By how much? We’re seeing a 6% increase in time allocated to core selling as a result. If a potential 6% productivity boost is interesting, read on!
An increase in core selling time means that sales people have more productive time – more time to devote to advancing opportunities and winning deals. So, how much more do we estimate? For some sales people, having 6% more time for core selling will translate into significantly more success. For others, in balance, it will have no effect.
On balance, our models and evaluations of customers show that while the sales impact is often much higher than 6%, we like to be conservative. So, a 6% bump in sales goal attainment is what we estimate.
Sales Person Effectiveness
Efficiency is just part of the game. A sales person has only so many opportunities to engage and advance a prospect. If the first call doesn’t go well or the first follow-up goes awry, you can’t simply ‘volume’ your way to succeed. Rather, you need to be sure that each engagement with your prospect is putting your best foot forward.
From a content and messaging perspective that means not simply throwing your favorite datasheet at a prospect. That means not just showing up to a call without understanding best practices on what to say or how to counter specific objections.
Savo recommends content that best matches a given sales situation. That could be by industry, sales stage, persona, or any other element that matters to your sales process. It ranks content based on its actual performance in the real world. That is, did the content actually engage and advance prospects?
When content is proven to win, it’s going to be chosen and used by sales people. And that means that sales people will see the results in increased engagement rates (prospects viewing your materials and sharing) and hence on to better performing opportunities.
We calculate the ROI here based on this doubling of prospect engagement. The value of this doubling of engagement will vary by company. It will vary based on items like your average selling price, stage in the sales cycle, etc. But consider an example:
Assume you get 100 MQLs per month, and your MQLs convert to Opps at a 20% rate and opps to Closed Won also at 20%. Now consider an average selling price of $10,000. That leads us to conclude that your average MQL is worth $400. And if you can engage your MQLs at twice the rate, you’re able to extend $20,000 worth of MQLs per month.
Marketing Perspective: Content Use
Now let’s pivot to the marketer or content creator’s perspective. The average B2B marketing team spends 20% of their budget on building content. With that massive investment (the largest line item for many teams), you’d hope that your content isn’t just supporting the top of funnel. You’d hope that it was also helping sales people to engage their prospects.
But let’s look at the numbers. Unfortunately, 80% of content is actually never used by sales organizations. That means 16% of your total marketing budget is devoted to content that sales people don’t use. That is painful when you know how much of an impact it can have on sales results.
If we use the 20% data point, we can compare this with the results that KnowledgeTree delivers. We measure the amount of content consumed across our customers. We found that sales people used a whopping 83% of content – a more than 3-fold increase in the volume of content used.
We’ve seen above the impact that this has on the efficiency and effectiveness of sales people (and hence on revenue!). But what does it do for marketing? Well we can quantify the value of content that now gets used. If you estimate the cost for producing each piece of content, you can get a sense for how much marketing will save on unwasted content.
We’re estimating $2,500 per content piece. That may be wildly off for your company, but it’s our starting point. So, multiplying $2,500 by (83% – 20%) X (# of content pieces) gets you that result.
Revenue Attribution for Content Marketing
This last piece of ROI is a little different. Rather than it being about dollars generated or saved, it’s about dollars measured. Let me explain. There’s an old advertising quote that says that half of the spend is wasted, we just don’t know which half. That remains a major problem for marketers. How to attribute revenue back to marketing actions?
Yes, you can tie revenue to high funnel activities — and so you should. But where attribution gets particularly interesting is when it is connected to lower funnel actions. Weighting late sales stage activities increases the weight of the attribution because of its proximity to the final decision.
From a content marketing perspective that means that a presentation shown in the middle of the sales process may have as much or more influence on a deal than an early stage download of an eBook. That’s no hard and fast rule. This will vary widely depending on your own go-to-market (particularly self-service GTMs).
Because now you’re able to see with Savo a lift of content use from 20% to 83%, your content is more frequently used in more deals. That means you have more linkages between your content and actual revenue. So, more revenue attribution.
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