Download - Sales and Marketing in the Information Age
Sales and Marketing in the Information Age
Creating Value for BuyersThe Changing Face of IT Sales
Peter Lawless
What Constitutes a Successful Company?
Producing an excellent product or service.
Selling and Supporting what they produce.
The 5 Key Success Factors
Increasing LeadsConverting Leads to SalesLifetime Customer Value (Annualised)Operating Costs (Margin)Reinvesting Profit to foster Innovation
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
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?
Increasing Lifetime Value
Excellent Service & SupportCRM processes
Customer Relationship ManagementMultiple transactions – Cross SellSimilar experience across ChannelsEasy for customers to buy
Brand Recognition & ValueCustomer Loyalty
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
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
Success Factors in Practice Qualified Marketing
Leads received by Sales
Leads 100
Conversions
Lifetime Value
Margin
Profit
Wealth
Success Factors in Practice The Percentage of
leads that turn into sales
Leads 100
Conversions 20%
Lifetime Value
Margin
Profit
Wealth
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
Success Factors in Practice Sales less
expenses expressed as a percentage
Leads 100
Conversions 20%
Lifetime Value €1,000
Margin 50%
Profit
Wealth
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
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
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?
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!
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
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.
Lead Generation - ADSPORT
Lead Generation'sSecret Seven(ADSPORT)
Advertising
Direct Mail
Speaking
Publishing
Online
Referral
Telephone
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”
Tactic 2 – Direct Marketing
Hard CopyLetter, Flyers, Postcards, Newsletters
ElectroniceZines, Fax, Text, Newsreader
InnovativeCreative way of delivering targeted message to decision maker
Tactic 3 – Speaking
Company Run SeminarsAudio Tapes/CDsTrainingMedia Interviews (TV, radio)Guest SpeakerExcellent 1 to Many medium
Tactic 4 – Publishing
Media Interviews in PrintWeb ArticlesPress ReleasesWhite PaperseBooksBooks
“let me introduce you to the guy who wrote the book”!
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
Tactic 6 – Referrals
The Ultimate Lead Generation Tool
Different from “Word of Mouth”
Have a StrategyAlways askMake it easyReward Referrers
Tactic 7 – Telephone
OutboundCold calling (never)Telemarketing agency
InboundScriptsInteractive Call to ActionDon’t Sell – set appointment
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.
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
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?
Definition of the 3Rs
Solution Payback is expressed in terms of at least one of the following:
Revenue Growth
Reduction in costs
Regulatory Requirements
Sales Cycle 1 – Identifying – 10%
Solution payback mapped to 3Rs
Champion Identified
Timeline to Purchase agreed
Sales Cycle 2 – Valuing – 25%
Champion Visualizes 3R payback
Agreement to meet Decision Maker/s
3R Stakeholders Identified
Sales Cycle 3 – Qualifying – 50%
Decision maker confirms 3R payback
Evaluation criteria and plan agreed
Method of Finance agreed
Sales Cycle 4 – Negotiating – 75%
Evaluation criteria met or exceeded
Verbal agreement from DM
Contracts with Legal and Purchasing
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
Thank you for Participating
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