The Only Constant is Change
GROWTH CHALLENGES SOLVED WITH BUSINESS DEVELOPMENT
Using strategic Business Development to generate revenue opportunities during a period of significant organisational transformation.
Following an aggressive acquisition strategy, the challenge for this international security and storage vendor was to grow its enterprise footprint; strategic Business Development was successfully employed to drive sales pipeline and revenue in net new and existing accounts.
A Driver for Change
This global client had acquired an extensive portfolio of new products and its primary goal was to drive sales pipeline and revenue from within a defined set of named B2B enterprise accounts. Generating higher value multi-product opportunities in accounts was central to the organisation’s future growth strategy.
Although the client had created a New Business Enterprise Sales team, the majority of its overall sales effort was focused on upselling in existing accounts.
Clarify’s Business Development team was tasked with extending the reach into those accounts, which, due to their size and scope had had limited previous engagement – this included some existing clients as well as net new logo accounts.
The difference between Demand Gen & Business Development?
Unlike traditional Demand Generation programmes, strategic Business Development profiles and engages with multiple contact points within an account. Establishing the organisation’s current and desired state, Business Development’s role is to identify limitations in the current approach and educate buyers on the possibility that changes could bring. Due to the nature of these value-led discussions, conversations at senior and C-suite level are developed.
Account intelligence and an understanding of business need are identified and importantly for this particular client, conversations on key industry
issues were opened with senior decision makers across multiple buying centres. If an opportunity is not immediately uncovered the relationship is then nurtured over time. By profiling and creating intelligence on target accounts future marketing campaigns will, by their very nature also prove to be more effective.
This initial programme of evaluating opportunities was a success and the business case to outsource Business Development was justified by the significant pipeline generated. The sales team were encouraged at the senior levels of engagement Clarify achieved and the quality of market intelligence and opportunities delivered.
This programme began in 2008 and in the last 12 months, 203 accepted opportunities were delivered to the sales organisation, which converted to £20.97m in pipeline. £3.15m of which was secured within 12 months with a further £13.76m forecast to close in the following financial year.
In addition by re-evaluating latent opportunities in accounts on an on-going basis and renewing the customer’s understanding of the client and the depth and breadth of its product portfolio the Clarify Business Development team were able to facilitate the upsell and cross-sell of additional services. Clarify enabled the client to accelerate its sales transformation, selling its new portfolio into this existing market.
To quote one of the stakeholders of the outsourced Business Development capability, the New Business Enterprise Sales Director:
“The benefit was not only pipeline and revenue attainment, my account managers were delighted as their time was being very well utilised and I had increased confidence that my pipeline would deliver the results that I needed each quarter to build our business for the future.”
Business Development aligned strategically with Marketing
Enterprise Marketing was also a sponsor of the Business Development programme commenting:
“Clarify delivers exactly what they say they are going to deliver. To date all opportunities have been accepted and none rejected”
Marketing’s involvement was an additional facet of the Business Development programme; its challenge was to build pipeline for new product with minimal customer data and intelligence in place. With a $2million quarterly target in marketing derived pipeline opportunities, Clarify’s role has been to assist marketing by researching and profiling market opportunities, create intelligence and nurture opportunities to a 25 per cent weighting.
As a result of the campaign, account intelligence has been built for over 130 accounts, as a consequence the targeting of marketing campaigns became more effective and 117 percent of annual marketing-derived pipeline was achieved.
In terms of revenue, $8.50 was generated for every $1 spent with Clarify and a total of $21 in pipeline for every $1 spent overall.
A period of change?
Against this backdrop the business underwent a significant restructure. There were multiple changes not only to the organisational structure of the business, but also major changes in key personnel.
As a result nurturing relationships with clients and prospects were suffering. However this disruption was offset by Clarify’s role, managing opportunities in new and underpenetrated key accounts. Clarify was the consistent factor, amongst what at times seemed to be constant change. The client recognised the value of its relationship with Clarify – not only in financial terms – but the longevity of the programme is a testament to its success and on-going evolution.