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Sales and Marketing in the Information Age
Creating Value for BuyersThe Changing Face of IT Sales
Peter Lawless
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What Constitutes a Successful Company?
Producing an excellent product or service.
Selling and Supporting what they produce.
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The 5 Key Success Factors
Increasing LeadsConverting Leads to SalesLifetime Customer Value (Annualised)Operating Costs (Margin)Reinvesting Profit to foster Innovation
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Lead Generation (Prospecting)
Commonly known as MarketingA lead can be defined as follows:
A person or company that has expressed an interest in you or your product
This could be either as a result of:You contacting them - outboundOr them contacting you - inbound
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Converting Leads to Sales
What problem or desire does the product address?
What does addressing that issue enable the purchaser to do?
Can the buyer assign a value to that new capability?
When ideally do they need this by? What is the cost of doing nothing?
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Increasing Lifetime Value
Excellent Service & SupportCRM processes
Customer Relationship ManagementMultiple transactions – Cross SellSimilar experience across ChannelsEasy for customers to buy
Brand Recognition & ValueCustomer Loyalty
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Increasing Margin (reduce costs)
Margin = Selling Price – Cost
2 ways to increase MarginIncrease Selling PriceReduce Cost of Production and Sales
Costs consist of two variablesFixed – constant regardless of production volumeVariable - relating to volume and sales
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Protect Profit and Increase Wealth
FinancialMaintain cash flow at optimum cost Reinvest Profits – Strategic Planning
R&D – Innovation and diversificationIncrease production and sales capacity
LegalProtect Intellectual PropertyMitigate against contrary Conditions
HRPeople are your most vital asset
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Success Factors in Practice Qualified Marketing
Leads received by Sales
Leads 100
Conversions
Lifetime Value
Margin
Profit
Wealth
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Success Factors in Practice The Percentage of
leads that turn into sales
Leads 100
Conversions 20%
Lifetime Value
Margin
Profit
Wealth
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Success Factors in Practice The Average
amount a customer will spend as long as they remain a customer
Leads 100
Conversions 20%
Lifetime Value €1,000
Margin
Profit
Wealth
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Success Factors in Practice Sales less
expenses expressed as a percentage
Leads 100
Conversions 20%
Lifetime Value €1,000
Margin 50%
Profit
Wealth
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Success Factors in Practice
Leads 100
Conversions 20%
Lifetime Value €1,000
Margin 50%
Profit €10,000
Wealth
Profit is arrived at as follows:
Leads*
Conversions*Lifetime Value*Margin
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Success Factors in Practice
Leads 100
Conversions 20%
Lifetime Value €1,000
Margin 50%
Profit €10,000
Wealth €10,000
Wealth is defined as what the business owner takes before tax
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Influencing the Success Factors
A 10% increase in any one factor would yield
€1,000 more profit
Do Companies Capitalise on this?
Which factors Should You influence?
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Influencing the Wealth Factors
New Business can implement strategic plans for continuous monitoring and improvement of all 5 wealth factors
Existing business should choose at least 2 to start with and work up to having a plan for all 5
Key challenges are to change existing culturesIncreasing sales alone is not always the answer – especially if each sale loses money!
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10% Across all 5 key success Factors Yields 61% Growth
Increase Now
Leads 100 10% 110
Conversions 20% 10% 22%
Lifetime Value €1,000 10% €1,100
Margin 50% 10% 55%
Profit €10,000 10% €14,640
Wealth €10,000 10% €16,110
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We will now focus on just 2?
Marketing - Providing a constant flow of quality leads.
Sales – Converting the leads into customers, in the shortest time, with a maximum lifetime value.
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Lead Generation - ADSPORT
Lead Generation'sSecret Seven(ADSPORT)
Advertising
Direct Mail
Speaking
Publishing
Online
Referral
Telephone
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Tactic 1 - Advertising
Classic AdvertisingPrint, TV, and Radio
New WaveGoogle, Viral, Banner
InnovativeLuas Tickets, Space Shuttle, Taxi
All Advertising MUST have a “Call-to-Action”
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Tactic 2 – Direct Marketing
Hard CopyLetter, Flyers, Postcards, Newsletters
ElectroniceZines, Fax, Text, Newsreader
InnovativeCreative way of delivering targeted message to decision maker
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Tactic 3 – Speaking
Company Run SeminarsAudio Tapes/CDsTrainingMedia Interviews (TV, radio)Guest SpeakerExcellent 1 to Many medium
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Tactic 4 – Publishing
Media Interviews in PrintWeb ArticlesPress ReleasesWhite PaperseBooksBooks
“let me introduce you to the guy who wrote the book”!
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Tactic 5 – Online
Web PresenceMarketing and Sales ToolWhat should it achieve?
Sign up for newsletterAvail of ConsultationBuy ProductInform your prospects
Can it be seenSEO, Page ranking, Blogs, etc
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Tactic 6 – Referrals
The Ultimate Lead Generation Tool
Different from “Word of Mouth”
Have a StrategyAlways askMake it easyReward Referrers
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Tactic 7 – Telephone
OutboundCold calling (never)Telemarketing agency
InboundScriptsInteractive Call to ActionDon’t Sell – set appointment
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We will now focus on just 2?
Marketing - Providing a constant flow of quality leads.
Sales – Converting the leads into customers, in the shortest time, with a maximum lifetime value.
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Converting Leads to Sales
Identifying – 10%
Valuing – 25%Qualifying – 50%Negotiating – 75%
Implementing / Supporting
Lead Generation
A good sales process ensures best sales practices get repeated
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Converting Leads to Sales
What problem or desire does the product address?
What does addressing that issue enable the purchaser to do?
Can the buyer assign a value to that new capability?
When ideally do they need this by? What is the cost of doing nothing?
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Definition of the 3Rs
Solution Payback is expressed in terms of at least one of the following:
Revenue Growth
Reduction in costs
Regulatory Requirements
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Sales Cycle 1 – Identifying – 10%
Solution payback mapped to 3Rs
Champion Identified
Timeline to Purchase agreed
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Sales Cycle 2 – Valuing – 25%
Champion Visualizes 3R payback
Agreement to meet Decision Maker/s
3R Stakeholders Identified
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Sales Cycle 3 – Qualifying – 50%
Decision maker confirms 3R payback
Evaluation criteria and plan agreed
Method of Finance agreed
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Sales Cycle 4 – Negotiating – 75%
Evaluation criteria met or exceeded
Verbal agreement from DM
Contracts with Legal and Purchasing
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Converting Leads to Sales
Manual Pipeline analysis Enter appropriate number (1,2,3,4) when action done for each customer© 3R Consulting Ltd 1 1 1 2 2 2 3 3 3 4 4 4 5
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Sample 1 buying xyz product €100,000 50% €50,000 30/06/2004 yes 1 1 1 2 2 2 3 3 3 4Sample 2 blah €20,000 25% €5,000 30/06/2004 yes 1 1 1 2 2 2 3 3Sample 3 blah €12,000 10% €1,200 30/06/2004 yes 1 1 1 2 2Sample 4 blah €25,000 75% €18,750 30/06/2004 yes 1 1 1 2 2 2 3 3 3 4 4 4Sample 5 blah €120,000 0% €0 30/06/2004 yes 1 1Sample 6 blah €12,000 10% €1,200 30/06/2004 yes 1 1 1 2Sample 7 blah €111,000 50% €55,500 30/06/2004 yes 1 1 1 2 2 2 3 3 3 4 4
0% €00% €00% €00% €00% €00% €00% €00% €00% €00% €00% €00% €00% €00% €00% €0
Totals €400,000 €131,650
3R Definition:
Solution Payback Could be expressed in terms of:
Revenue Growth
Reduction in costs
Regulatory Requirements
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