ltw sales funnel - final

8/7/2019 LTW Sales Funnel - final

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Lead to Win

Lead to Win

Opportunity Development Making and Managing SalesAugust 26th, 2009

Stephen Davies and Serge Lafontaine


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Lead to WinSlide 2

Agenda

Overview

Find first customers most willing to buy from you

Adapt the funnel to sell to first customers you target

Map funnel information to cash flows

Exercise #1 and #2Sales and product marketing techniques to maximize funnel value

Exercise #3 and #4

BREAK

Use the Internet to sellParticipants Open Discussion

Summary / Tasks Post Phase 2


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Lead to WinSlide 3

Agenda/Timeline

10:15

8:45

9:45

12:00

OverviewFind first customers most willing to buy from youAdapt the funnel to sell to first customers you targetMap funnel information to cash flows

Exercise #1 and #2Sales and product marketing techniques to maximize funnelvalue

Exercise #3 and #4BREAK

Use the Internet to sellParticipants Open DiscussionSummary / Tasks Post Phase 2


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Lead to WinSlide 4

Agenda

Overview




Exercise #1 and #2

Sales and product marketing techniques to maximize funnelvalue

Exercise #3 and #4

BREAKUse the Internet to sell

Participants Open Discussion



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Lead to WinSlide 5

Overview

Upon completion,

You will know about

What a sales funnel is

Linking sales to cash flows

What internet marketing techniques are out there

You will know how to

Categorize and prioritize customers

Build a funnel for your organization

Map sales to your cash flows

Identify appropriate internet marketing techniques for your

organization


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Lead to Win

Overview

What this course is

How to setup and manage sales

How to link sales with marketing

What this course is NOT

How to sell

How to market (detail)

Terminology that is assumed

Inside/outside sales

Distribution channel Direct/indirect sales

Others

Slide 6


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Agenda

Overview




Exercise #1 and #2


Exercise #3 and #4





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Slide 8


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Customer Demand:

Need: The desire for a product or service

Demand: The ability to pay for a product or service

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Demand is the desire and ability to buy a product orservice.

Demand is the desire and ability to buy a product orservice.


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Characteristic Comments

A Customers Bring me a proposal I can sign.

B Customers I like the product, but I need to do more research before I can decide.

C Customers Yes, we have that problem, but I dont know what to do about it. We get

by. How does your product relate to our situation?

D Customers We have no problems like that in our organization.

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Communication

Close A customers. Get them to buy your product.

Convince B customers: Provide them with additional

information to make a decision, and reinforce your company as

the best choice (share of mind)

Coach C and D customers and use public presence as a

means to gain credibility with themand access to them.

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Customer Types and Technology Strategy

Technology disruptions encounter C and D customers

Longer sales cycles

More subject matter expertise marketing

Evangelical sales model

Technology increments encounter A and B customers

Shorter or immediate sales

More product level marketing

Direct sales model

Slide 13


Most startups tend to be technology disruptions.Most startups tend to be technology disruptions.


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Increasing the probability of engaging customers

To target and engage higher probability customers you need to

identify the few key values from your product offering

You also need to release your product at the appropriate level in

the marketplace

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Lead to WinSlide 16



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Lead to WinSlide 18

Agenda

Overview




Exercise #1 and #2


Exercise #3 and #4





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Lead to WinSlide 19


Source: Wikipedia


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Lead to Win

How does it work

We take a generic, or organization specific list of stages and assignprobabilities to each stage.

The probability represents the likelihood that the customer will move

to the next stage of the pipe New Opportunity (5%) Initial Communication (10%)

Fact Finding (25%)

Develop Solution (40%)

Propose Solution (60%)

Solution Evaluation (75%)

Negotiation (85%)

Contracts (95%)

Closed won (100%)

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Slide 21

Funnel StageConfidence of

Winning 10%

100%

Day 1

Day 183

20%

45%

60%

80%

90%

Day 22

Day 44

Day 94

Day 160

Day 180

Lead Yield

30 Raw

1 Won


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Lead to Win

Doing it in practice

For simple funnels use excel

If you have a larger number of customers good idea to geta CRM system, for example:

Slide 22



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Lead to WinSlide 23


Totals/Average 47% $300,000 $142,500 06-Feb-10 177

Company Opportunity name Funnel stage

Stage

probability

Contract

value

Funnel

value

Est Close

Date

Days to

close

Steve co Product A New Opportunity 5% $10,000 $500 01-Jun-10 291

Bob co Product A and B Initial Communication 10% $50,000 $5,000 15-Apr-10 244

ABD Product B Fact Finding 25% $40,000 $10,000 01-Dec-09 109

DEF Product A Develop Solution 40% $30,000 $12,000 13-Feb-10 183

GHI Product C Propose Solution 60% $50,000 $30,000 15-Jan-10 154

Blockbuster Product A, B and C Solution Evaluation 75% $30,000 $22,500 24-Feb-10 194

PWGSC Product C Negotiation 85% $40,000 $34,000 04-Nov-09 82

CIBC Product C Contract 95% $10,000 $9,500 01-Sep-09 18

Lead to Win Product A Propose Solution 60% $30,000 $18,000 01-Mar-10 199

Redwood Product B Initial Communication 10% $10,000 $1,000 01-Jun-10 291


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What is a sales funnel

A tool that help you assess using different metrics how healthy andbalanced your future sales are. It will tell you:

At what stage a customer is in the sales process

What value of opportunity is associated with a customer

How long customers are taking to move down the pipe

Gross figure on how many customers are at what stage

Project $$ revenue forecasts for your cash flow statements

Slide 24



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Lead to WinSlide 25

Agenda

Overview




Exercise #1 and #2


Exercise #3 and #4





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Map the funnel to cash flows

Cash flow estimate:

Slide 26

Cash injection into cashflow is:

(closing date + credit terms)

at a value of

(deal size * funnel stage probability)

Cash injection into cashflow is:

(closing date + credit terms)

at a value of

(deal size * funnel stage probability)


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Lead to Win

Map the funnel to cash flows

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With 60 day credit terms

Company Opportunity name

Funnel

value

Est Close

Date Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10

Steve co Product A $500 01-Feb-10 500$

Bob co Product A and B $5,000 15-Apr-10 5,000$

ABD Product B $10,000 01-Dec-09 10,000$

DEF Product A $12,000 13-Feb-10 12,000$

GHI Product C $30,000 15-Jan-10 30,000$

Blockbuster Product A, B and C $22,500 24-Feb-10 22,500$PWGSC Product C $34,000 04-Nov-09 34,000$

CIBC Product C $9,500 01-Sep-09 9,500$

Lead to Win Product A $18,000 01-Mar-10 18,000$

Redwood Product B $1,000 01-Jun-10

Totals $142,500 $0 $0 $9,500 $0 $34,000 $10,000 $30,000 $35,000 $18,000 $5,000


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Lead to WinSlide 29

Agenda

Overview




Exercise #1 and #2


Exercise #3 and #4





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Lead to Win

Using Exercise #1 Worksheet (next page)

1. List 10-20 potential customers and identify customer type (A,B,C or D) for

Leads

Qualified Prospects

Already engaged

1. Define Funnel Stages and according percentage values.

2. Populate the rest of worksheet for all fields

Slide 30

Exercise #1 Building Sales Funnel


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Lead to WinSlide 31

Exercise #1 - Worksheet

CustomerName

CustomerCharacteristics

Product Funnel Stage Stage Probabitlity(%)

Contract

Value

($)(

Co

1

2

3

4

5

6

78

9

10

11

12

13

14

1516

17

18

19

20

A: ready to buy New Opportunity 5%

B: need more research Initial Communication 10%

C: have problem, but get by Fact Finding 25%

D: no problem Develop Solution 40%Propose Solution 50%

1 2

3


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Lead to Win

Using Exercise #2 Worksheet (next page)

1. Transcribe Funnel Value and Closing date information filled in

Exercise #1 Worksheet into Exercise #2 worksheet

2. For each customer entry, enter the Funnel value into the

appropriate closing date column

3. Calculate totals for each months

4. Identify your typical credit terms: ___ days

5. Change closing date months to reflect credit terms6. Analyze cash flow requirements

Slide 32

Exercise #2 Sales Funnel Cash Flow


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Exercise #2 - Worksheet

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Funnel

Value

(Stage Prob *

Contract Value)

Estimated

Close

(month/year)

Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul -10

1

2

3

4

5

6

7

8

9

10

11

12

13

14

1516

17

18

19

20

Totals

1

2

3


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Lead to WinSlide 34

Agenda

Overview




Exercise #1 and #2


Exercise #3 and #4




Sales and product marketing


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Sales and product marketingtechniques to maximize funnel value

Slide 35

Lead

s

Marketing

Sales

CHASM {



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Standard ways of marketing your product

Print media

Visual media

Audio media

Tradeshows

Internet

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Slide 37

Most effective for a start-up is Niche Marketing

By seeking out smaller segments of larger markets, marketing can

be developed and promoted quickly to uniquely serve a targetedand potentially loyal customer base, leading to a small but regular

income stream. This technique is then repeated across several

other niche marketing activities until a desired outcome is

achieved.

By seeking out smaller segments of larger markets, marketing can

be developed and promoted quickly to uniquely serve a targetedand potentially loyal customer base, leading to a small but regular

income stream. This technique is then repeated across several

other niche marketing activities until a desired outcome is

achieved.



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Slide 38

Most effective for a start-up is Niche Marketing

Satisfying the needs of individuals

Marketing centered around people

Cultivating long-term relationships and trust with

customers, i.e. Communities

Hearts and minds

Concentrated effort:

saves time and money

focuses business

Greater customer satisfaction due to better served needs

Cultivates relationships


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Lead to WinSlide 39

Agenda

Overview




Exercise #1 and #2


Exercise #3 and #4





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Lead to Win

Exercise #3 Marketing Strategies

to complete for your business

1. List out all of the ways you currently market (including

costs). NB leave Internet out for now (next section)

2. List out all of the ways your competitors market

3. Brainstorm new opportunities in other modes of marketing

that may be relevant

Slide 40


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Exercise #4 - Markets

to complete for your business

1. List the markets you are selling into

2. List the markets you intend to sell into

3. For each of the above define an initial beach head niche

4. List other potential niches to move to once you have

revenue in the first.

Slide 41


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Use the Internet to sell

We are going to assume that everybody has, or intends toget a website going.

There are a number of ways to market on the internet, e.g.

Paid advertising

News channels/press releases

Social Media

We will concentrate on Social Media because this is

showing to be the most cost efficient and effective way tomarket to your audience today.

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What is social media? Using the web to connect or reconnect with an individual or a

group of like minded individuals

What is a social network

A website or web-service with a database

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Trends show that community users remain customers 50% longer,

spend 54% more than non-community users and visit 9 times morethan non-community users

Trends show that community users remain customers 50% longer,

spend 54% more than non-community users and visit 9 times morethan non-community users


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Slide 45

Old New

Eyeballs Hands

Britannica online Wikipedia

Personal websites Blogging

Content Management System Wikis

Directories Tagging

Stickiness Syndication

Instant messenger Twitter

Conferences Unconferences


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Social Media Tools RSS feeds

Social networks

Blogging

Micro-blogging Podcasts

Message/discussion boards

On-line video

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RSS feeds People subscribe through an RSS aggregator to be updated of news

If you have frequent new updates, or use a mix of other social

media tools that you want to make people aware of

Social Networks Search to find individuals in companies to directly target

Ask questions to large populations of people

Take out paid advertising to a directed group

Start your own group, or join an existing industry group and

PARTICIPATE

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Blogging Get your technical people to blog on relevant industry advances

Do NOT use a blog as an advertising medium

Comment on other blogs and try and get cross-referrals

Micro-Blogging More focused than blogging

Great to update people at events (e.g. conferences)

Post if you see something interesting, people use as a referral service

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Podcasts Keep them short and relevant

Tie them to RSS feeds

Discussion boards (Website Toolbox, Invision etc)

Opportunity to be controversial (safely)

Constantly watch, nothing worse than posting and not following up

Reading other comments good opportunity for background research\

Good to test ideas prior to implementation

YouTube (or similar)

HUGE following

Opportunity to showcase products

Some associated production costs

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Lead to WinSlide 50

Agenda

OverviewFind first customers most willing to buy from you



Exercise #1 and #2


Exercise #3 and #4





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A d


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Lead to WinSlide 52

Agenda

OverviewFind first customers most willing to buy from you



Exercise #1 and #2


Exercise #3 and #4




I


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In summary

There are a LOT of people you can talk to You should only talk to people that are prepared to give

you $$ if your product/service is right for them

Good, focused marketing will generate accurate leads

Initial filtering by conversation will categorize

Try to fill the pipe in priority order (A D)

Dont forget you dont necessarily want all As, a mix isgood BUT majority As and Bs is preferred

The further you work down the pipe the harder it gets

Enjoy sales and marketing is a rewarding experience

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Post Phase 2Tasks


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Task 1 to complete for your business

1. Identify appropriate market segment to release technology into

2. Review list generated during Exercise #1 and add more target

customers

3. Blue ocean helps you differentiate from your competition, even ifyou are not disruptive perform analysis

4. This will enable you articulate key differentiators to your target

customers

5. Start phoning. For each call categorize the customer6. Identify and implement your own strategies for moving up the chain

7. Only return (initially) to the highest ranked customers for ongoing

business development

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Ad h f l ll fi


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Task 2 -Doing it in practice - extend the example

Simple additions that are valuable are (in no particular order):

1. Funnel value by month vital for cash flow forecasting

2. Average number of days per funnel stage (too see where your

blockages are)

3. Estimated vs actual close

4. % dropouts at each stage of the pipeline (closed lost)

5. Keep track of the contract value as it changes (initial estimate

final) to see how accurate your estimating is

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Sales and product marketing techniques to


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Sales and product marketing techniques tomaximize funnel value

Task 3 - to complete for your business

1. List the ways you use the internet at the moment

2. List the ways your competitors use the internet

3. For each of your customer categories (A, B, C, D) list

appropriate ways of using different social media to reach outto them

ltw sales funnel - final

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