Think your sales department is doing all it can to convert credit card processing sales leads or VoIP sales leads into paying customers? Think again. When it comes to maximizing lead generation efforts, perceived success rates are much higher than real statistics indicate, according to our recent study. (more…)
With news that retail sales rose 2.7% in August (higher than the 2% increase many experts predicted), many small business owners are breathing a sigh of relief. Nearly every business blogger has done some version of the “Recession-proof Companies” post, but what many fail to address is how you as a small business owner can translate these successful strategies for your own company. Should you dedicate more budget to online marketing efforts, position your brand differently, or employ several brand building strategies at once? Here’s a look at a few industries that have managed to slide through the past years relatively unscathed by the economic woes plaguing many businesses- and how you can use their secrets of success.
Fast Food
“Fast casual dining” (fast food restaurants) have done well over the past years. The success of businesses that offer lower-priced fare is often attributed to customers’ increasing desire for bargains, which sounds right- until you consider the case of McDonalds, which attributes a same-store sales rise of 2.6% to the launch of it’s McCafe line of espresso and coffee drinks. Conventional wisdom dictates that customers would forgo fancy coffee beverages the more financially stretched they become. But McDonalds turned what could have been a huge disadvantage into a marketing ploy: instead of going out the $5 lattes to save cash, just switch to a cheaper version. The $100 million campaign placed McDonalds as the cash-conscious alternative to Starbucks and other high-end coffee retailers.
Steal this Strategy: McDonalds’s strategy is a great example of turning lemons into lemonade. Even if you can’t position your product as the cash-saving equivalent of a pricier or luxury item, you can probably think of creative ways to turn a perceived hurdle into a successful marketing strategy. Online marketing efforts, pay per click ads, and related strategies can shift customer perception of your product in a relatively short span of time.
Beer
Alcohol is often touted as a “recession proof” product, even though this isn’t entirely the case- “value sector” brands tend to see sales increase or remain steady because drinkers mid-market beverages downgrade to more cost effective alternatives. Brands on the high end, where customer loyalty is the strongest, tend to sustain minimal damage during rough economic times, according to Beer Business Daily. Illustrative of this trend is the case of Chicago brewer Goose Island, which seen an increase in sales of its $8 and up bottles at local bars.
Steal this Strategy: The lesson here is that it can pay to position yourself either at the top or at the bottom of a specific market. Companies that produce niche products or those with a cult following seem to be less likely to lose business to mid- or low-market brands because loyalty is so strong. Building customer relationships can be as simple as offering special promotions to repeat clients or customers, initiating an email marketing effort, or ramping up a social media marketing campaign.
Pharmaceuticals
Medical News Today reports that revenues of pharmaceutical companies actively developing new drugs grew to $89.7 billion last year. Though some have pointed out that pharmaceutical industry growth in the US is “not sustainable” the current numbers show that explosive revenue growth is possible, even in a down economy.
Steal this Strategy: Not all drug companies are making piles of money. The largest profits seem to be reserved for those companies that place the most importance on growth: developing new therapies, obtaining new patents, and bringing new drugs to market. Innovation in any industry is key for long term success, but it can also drive short-term revenue, as well. Now is the time to evaluate growth strategies and get customers excited about new product or service offerings.
Technology
Some of the industries thriving in the recession are easy calls- people always need to eat, and take care of health needs, for example. Success in bargain markets is equally easy to predict. Don’t despair if your business isn’t serving a “steady demand” industry or producing low-cost goods. High-end retailers can also fare well in an economic downturn if they are strategic with sales and marketing efforts. Apple, the stylish innovator that brought the world the iPod, the iPhone, and a whole host of other sleek, easy-interface devices is the perfect example of a high-end brand doing better than expected in an economic decline.
Steal this Strategy: Apple capitalizes on all of the strategies employed by the other companies described: customers are fiercely loyal (even if prices are high), it positions itself as a “better” alternative to existing offerings (PCs, music players, etc.) and it manages to create huge excitement for even less than monumental innovations (iTunes 9). It does all of these things incredibly well. The lesson here: combine your strengths into a comprehensive marketing and sales strategy. Focusing on one technique might work well, but integrating several well-targeted efforts might work even better.
As an online entrepreneur, you know that great ecommerce web design can make or break your sales numbers. But statistics like site visits, click throughs to item descriptions, and other numbers might not tell the whole story: according to BizReport and eWay Direct, the majority of shoppers- a whopping 70%- browse products, set aside items for purchase and then…vanish. It’s called shopping cart abandonment- the process of loading items into a cart and then either purposefully or inadvertently navigating away from the site before completing a purchase. (more…)
Saying thank you is a key part of your follow-up marketing strategies. Send a hand-written note, a short email or pick up the phone and express your thanks quickly and sincerely.
Everyone loves to be appreciated and it goes a long way in fostering a good relationship. Don’t forget you can always send a small token appreciation as well, such as a magazine, movie tickets, online gift card - use your imagination!
Here are some instances where you could be expressing a heartfelt thank you:
referral
someone gives you a great piece of information
testimonial
someone compliments you
when you get a new client
when a project, program or service ends
Start taking advantage of opportunities to say thanks to people you encounter in your business life and you’ll start reaping the monetary and emotional satisfaction that will occur!
Webster’s Dictionary has been a tool used by many generations, now of course one of many options available online. It’s very much a democratic concept—words defined in the same way for all to employ. Yet, when it comes to marketing and sales, a common definition becomes very elusive. Or more accurately, the word, “lead,” employed by each discipline is dramatically different.
In many companies, sales and marketing work in silos, and when they do meet, they collide. To a marketing person, a “lead” is a name and phone number of a prospect, who based on their profile, is a potential buyer. To a salesperson, a lead is a targeted title at a targeted company with an expressed desire to buy from the company.
Therein lies a huge challenge.
A marketer develops campaigns designed to reach out to those potential buyers; most typically with a call to action. If a potential buyer (prospect) responds to that call to action, marketing calls this a “lead” and counts this as a feather in their cap. After all, marketers take a holistic approach to their craft. They are chartered with “making the phone ring” and use different mechanisms such as direct mail, email campaigns, trade shows, seminars, etc. to do so. Marketers measure success by “hits,” attendees, inquiries, etc., then try to equate a Return on Investment (ROI) to such metrics. Typically, this ROI is based on sales pipeline or projected sales which may take months or even years to materialize. While there is value in these marketing initiatives, quantification of value is in the eyes of the beholder.
Sales people are much more tactical and only focused on the numbers that really count—compensation for their efforts. In most organizations, sales people view leads much differently than marketing. They view them as opportunities to close business in a defined (the shorter the better) time period. A lead needs to be qualified.
The problem is in the definition of a “lead” and the definition of “qualified.”
You have two groups of people with different backgrounds, different objectives, and different definitions. In order to function properly, these two groups need to communicate more effectively. They need to share a common lexicon, a common dictionary, and a co-dependent level of accountability.
Of the two groups, marketing is more likely to have the advanced educational degree, work in the corporate office and be focused on metrics one or two steps removed from the heart of the sales cycle. They view leads as opportunities and the more the better.
Sales is much more primal. They think: “Is someone ready, willing and able to buy my product now?” These are relationship people and risk takers who are more likely to have been the quarterback on the football team or the captain of the baseball team. They are in the field and work directly with the customer.
Because of where they come from and how they are measured, a rift is inevitable. Marketing creates all this great activity and thinks “these dumb jocks can‘t sell their way out of a paper bag.” Sales looks at marketing and says “these poindexters wouldn’t know a good lead if their life depended up it.”
However, the common ground is that both sales and marketing need results to survive and prosper. They each need to contribute to corporate objectives, but take very different paths to get there, with many collisions along the way.
The Emergence of Translator
Recently, some open minded companies have begun to address this issue. These organizations bring in third parties to provide the common definitions between sales and marketing. More importantly, they bring in the associated processes that leverage the strengths and core competencies of each side. Sometimes these third parties introduce enabling tools and methodologies. Other times they provide outsourced services.
To succeed, these companies need to employ proven and repeatable methodologies that work with both marketing and sales to accomplish goals. Taking marketing’s strategies, these third parties create messages that position the company’s products and services in the context of the prospect’s needs. They identify the correct decision-maker or influencer within the organization and know how to gain the necessary time and attention of this potential executive sponsor to create consistent and repeated meaningful business conversations with this coveted audience.
Employing a campaign approach, these outside firms communicate key messages as they turn suspects into prospects and move them down the sales funnel. The net result—a sales funnel filled with qualified leads that understand the offering and want to hear more. A streamlined sales cycle that results in more sales, faster. By doing all the prep work before the salesperson makes that initial call, these firms leverage the time and talent of the best purveyors of a companies’ value proposition – their frontline sales people.
Marketers are freed up to understand their buyers better, pursue newer and better tactics, and measure their efforts. Sales has more time to do what they do best and that is to manage sales cycles and close deals. When sales closes more deals and marketing has the data to refine strategies and campaigns, goals are met and commissions and bonuses are paid. When this all comes together it is amazing how the language barrier is not a barrier after all.
It’s happened many times before …and it can easily happen to you too. You get the call that KWHOever is in the lobby with a camera crew wanting to know your company’s response to [insert crisis name]. You’ve got 60 seconds to figure out what to do before the camera goes live…don’t you just wish you’d DVR’d the situation so you can press rewind to grab more time to get ready before you go live?
One of the best responses to a crisis is doing something before it happens. You think it won’t or can’t happen? Think again. If you can imagine it, then it probably will. So what do you do? Get ready before you have to GET READY!!! Here’s how:
Prep the Scouts: Your employees know what’s going on in the trenches. Train them to tell you if they’ve sniffed out a potential crisis or issue of concern before it happens.
Don’t stop talking: Keep regular contact with your company leaders to let them know if there’s a possibility that something bad might happen. That way, you can start to put a plan into action to prepare.
Train the Infantry: Keep your employees informed about what’s going on with the company…good and bad. Not only will you inspire loyalty and trust, but your employees become a great, first line of defense should the media come calling.
Understand, reporters are a creative bunch and will do anything to get the story. I’ve had them stand in a parking lot to catch employees walking to their cars. Not a big deal…IF they know what to say. That’s why keeping them informed is so important.
Cozy up to them before its cold: Keep up relationships with reporters who follow your industry. Strong relationships with the media during a non-crisis time pay off when the heat is on.
Okay…so back to our story. What the heck do you do once the story’s on a roll? What actions can you take after the tape starts rolling? Here’s some things to think about:
It’s a wrap…or is it? Keep in touch with the reporter even if it seems like it’s over. Just because the story is a “wrap,” doesn’t mean it’s a wrap. Monitor how its going and don’t be afraid to call the reporter on the carpet if its not accurate.
Don’t speculate
It is just as important to provide accurate information as it is to act quickly. When researching questions for public release, it is imperative to stick with known facts and don’t feel pressured. The pressure to answer is a dangerous practice and gives rise to speculation. It is true that reporters will be pressing for answers; however, what’s more important is providing factual information.
Play Nice
During a crisis, messaging and communications to any audience should be compassionate to those that may have been affected.
A crisis is a very chaotic time and will create a period of confusion and second-guessing. Remember, everyone is dealing with a difficult time and intangible elements begin to pop up. Just remember, this is a time to show empathy as well as leadership.
Take control
Depending on the situation, the media may try to make a bigger story out of something that really isn’t. Make sure they have the facts right before making the issue to be something bigger than it really is.
If you have to answer
What’s the best thing to do? Take a deep breath and slow things down. Remember the story will be told whether you want it to or not…if you don’t talk, then the reporter will find someone who will. Find out exactly what they’re asking for and let them know you’ll track down answers. This will slow them down and give you time to react appropriately.
If you handle it with honesty and poise, the reporter, and the public, will remember that when times got tough, you handled it like a champ. Then and only then it might be time to set your DVR.
I work with many business owners and selling professionals. When I ask them what they do they immediately rush into their title. Each states, “I am the President of a Bank”, “I am a Consultant”, “and I am a Professional Speaker”. If I were a client and heard this I immediately state, “So What”? Professionals today refrain from their titles and occupations in the service business and speak with the reply to “So What”? The method for doing so is known as a Value Proposition.
What is a Value Proposition? Simply put, a value proposition is a pithy statement that promotes the business to clients using outcome and results. This brief statement denotes the benefit(s) that a client receives from working with you. It is outcome based and focuses all attention on client outcomes not process, method or anything further.
Most companies lack a useful value proposition. Research illustrates that many firms (93%) focus on process and not client outcomes. Exemplars include:
- We provide sales training.
- Our assessments assist with personality profiling.
- We analyze your issues with a needs assessment.
- Our model incorporates organizational redesign and leadership development.
These are not value propositions. While they indicate factual information about the organization; they do nothing else but focus on the organization. The entire purpose of a value proposition is to focus on sole benefit to the client.
Why have a value proposition? The proliferation of both the Internet and small business has created a conundrum of noise and activity around clients. That said it is vital for your services to be heard. Organizations today require focus on two complicated issues productivity and profitability- your mission is to create a succinct message that addresses these concerns to the decision maker.
Be mindful, this is not an elevator speech. The value proposition succinctly addresses the concern. Dependent the offered results the statement might also help with brand! A perfect example is FedEx- absolutely guaranteed to be there overnight. Not only is this one of the most powerful value propositions in the world but one of the best brands.
There are other reasons for writing a value proposition:
- Distinguishes you from the competition.
- Distinguishes you and the organization in distinctive markets.
- Provides a better source of lead generation.
- Accomplishes quicker time to market.
- Enables selling professionals to expediently get in front of decision makers.
What methods can I use to develop one? This tool contains no more than 10 to 15 words featuring as many adjectives as possible. Value propositions have these characteristics:
• Focus on what the buyer gets, it is outcome based
• Results focused that uses colorful words to gain the attention
• General in that the statement can appeal to any industry dependent on need
Here is an example to develop a value proposition:
1. A poor value proposition:
- We help create a fit individual
2. A good value proposition
- We have a 7-Step program for better abdominals
3. A great value proposition
- We dramatically accelerate results that match your individual fitness desires
How can an organization or individual develop a value proposition? The concept for developing a statement is not difficult to achieve yet takes patience. It is vital to look at the organization from a customer or competitive view.
Questions to answer are:
1. “What does your organization do that from a benefit and results perspective stands head and shoulders above any competitive pressure”?
2. What results to clients achieve with you?
3. What is the organization extremely passionate for in meeting client’s needs?
4. What are your core values that provide results to clients?
5. What an individual or organizational values, stated and/or implied provide value to clients?
6. How does the organization minimize client risk and provide a return on investment?
These are only a few of the many questions that can be asked to begin crafting a message. Do not expect to obtain a statement overnight yet do not belabor it either. Too many organization spend countless hours on mission, vision and values yet the organizational culture does not exemplify the creed or shamefully do not understand it. However, if you desire better results for your sales and marketing efforts it is best to begin with asking questions focused on client value and return on investment- to the client. If you cannot gain the answers the best source, your clients! Testimonials and case studies are great examples of value. Take their statements and simply develop them into benefit-based sentences.
It is imperative to understand that no magic formula exists for the creation of a value proposition. Further, it is an often overlooked and underutilized tool. And, organizations typically confuse mission and vision statements with this benefit based phrases. However, when researched, reviewed and required, these thought provoking statements might assist your organization to break away from the pack. The drafting of an articulate message might be split second differentiator between a cursory review of your competitor’s brochure or phone call and yours. Craft a new message, speak of value and results and watch the gap widen.
About Drew Stevens PhD
Drew Stevens PhD is known as the Sales Strategist. Drew assists organizations to dramatically accelerate business growth. He is the author of seven books including Split Second Selling and Split Second Customer Service and Little Book of Hope and is frequently called on the media for his expertise. Drew was recently nominated as one of 50 Top Sales Experts. Download a FREE copy of Drew’s White Paper on “Selling Effectiveness” or “Business Building” e-book at www.gettingtothefinishline.com.
Sales are the life blood of any company. Especially in the early stages, a startup business must sell in order to survive. The primary responsibility of its founders is to deliver growth and increased revenues in order to reach profitability.
Some companies succeed even with slower growth, while others struggle while making faster revenue gains. The reason for this is predictability - the founders achieve what they say they are going to achieve.
When predictability is so highly valued, making more money than forecast may be perceived as being as bad as not reaching stated targets. Companies often increase their forecasts if they are having a better year than expected because they don’t want their year-end figures to be higher than predicted. Conversely, organizations also downgrade their forecasts if things are not going as well as expected. Basically, the executives of the company need to demonstrate that they are in control. This is no different to sales people: they must also demonstrate control over their forecasts.
Each month and, more importantly, towards the end of the quarter, the sales professional puts forward his or her best guess as to where he or she will be in relation to their target when the quarter ends. As part of this prediction they may well also name one or two deals that they believe are crucial to them. These are often, if not always, the largest deals they have.
The data is then taken from the corporate pipeline and fed to the sales manager, who will manipulate it and feed it to the sales director or VP of sales. In turn, the head of sales will manipulate it further and feed the data, as a forecast, to the CFO and CEO. If it is going to be a bad quarter, they’ll be told so.
However, thanks to a chain of manipulation and wishful thinking, the figures at this stage will appear less grim than they really are. This allows the VP of sales to explain that with a fair wind they should just be able to turn it around and make the number.
The psychology of what’s happening is simple. People want to keep their jobs and believe that admitting that they’ll miss their quarterly target is not the best way to do that.
Sales professionals need tools to help them to do their job. Unfortunately, the tools supplied by a company are often for the benefit of the company itself and not to the individual’s advantage. Even then, the tools are rarely fit for purpose and most will not be able to adapt to taking a checks & balance approach.
For instance, the pipeline is used as a management tool to make sure there are enough deals in the right places to meet target. In other words it becomes a reporting tool. These reporting tools are often misguided in their approach to the problem.
A pipeline’s primary purpose is to show you are in control. It gives you the ability to predict the outcome, even if that outcome actually falls short of your sales target. Prediction is only successful when it’s accurate. If you say you’re going to come out at 100% and you come out at 110% that’s not good. It may be good in revenue terms but it’s not an accurate prediction.
Introducing Focus from First Border! Focus is a visual opportunity manager that’s easy to use and even quicker to set up. In a matter of minutes you can input the deals you’re working on now and see how closing them will affect your sales commission. It was made for all for us bootstrappers with limited resources; a copy of Focus is about $200.
Better still, it’s built to let you drag and drop deals within the application to show you how winning or losing any specific deal will affect your target and the resulting commission. With a series of grids that show you immediately the status of each opportunity, you know at a glance which deals are the important ones to work on to make your number and which deals you don’t have a chance of winning. Now you can save valuable time and put more energy into winning those deals that really matter.
The result? More accurate forecasting and maximized sales.
Focus is for those in sales who maintain a portfolio of sales prospects and who would like to simplify the challenge of managing the different priorities presented by the complexity of opportunities.
Focus is a personal sales productivity tool that provides a simple, quick and easy way to help focus on and manage the right opportunities at the right time in order to maximise sales and earnings.
Unlike the traditional corporate tools that are designed to provide benefit to the company, Focus delivers benefit directly to the sales professional.
The simplicity of Focus is the visual way in which the opportunities are managed through the buying process. You can see at a glance the status of your business.
Focus: Dashboard - Visual Performance Indicator
The Dashboard changes when deals are moved. This provides immediate visual and numeric status of performance against target and commission for both the current and potential outcome. If you drag a deal into or out of the forecast you will immediately see the impact it has on achieving target and commission earnings. Scenario planning couldn’t be easier.
Focus has minimum data requirements! Quick and easy updates
The only information required to enter a deal is the customer name and the date the deal is likely to close. All other information is optional. Typically, most people can input all their leads and opportunities in less than 10 minutes. New opportunities can be added in seconds.
If you enter the value of the deal you can use the Dashboard to immediately see the impact that deal has on the outcome of your sales period. Also, further information can be added at any time, but only add further information to those deals that are important. Therefore, maintaining Focus is quick and easy.
Drag & Drop for quick and easy updates
Once a deal is in it is moved between grids by Drag & Drop… making it very quick and easy to move deals around.
Deal Information and Plans - For total control
Focus allows you to maintain full Deal Information and Plans for all your important deals. Qualification questions are built in and work on a traffic-light system for quick visual representation of qualification risk.
Deal Plans help you think through the opportunity by developing a series of questions that need answering. These questions help you progress the deal by highlighting your risk of losing due to lack of knowledge of the deal. By finding answers to the questions you make the deal more robust and increase your chance of winning. Deal plans also make it easy to communicate the status of the deal to others.
Reports - for easy sharing
Focus provides a series of standard reports for sharing of information. The reports can be saved in various formats allowing further changes to be made or adding the information to other documents very easy.
Filters - for easy review & sharing
Focus allows you to filter all opportunities across various criteria. You can filter by Customer, Private or Public deals, Partners, Co-Workers, Teams, Sectors, Close Dates and Sales Periods.
You can also see all the opportunities and with their corresponding deal plans. You may also wish to set up lead generation labels as Teams. You can then view your opportunities by lead generation source and share the progress of these leads.
This is just is just a starting point of all of the things Focus can do. For more go to firstborder.com and read more under products.
Lead. Just say the word at a gathering of your company’s sales and marketing executives and you’re likely to re-open the debate that still sparks heated discussion. What is a lead? Sales executives have one definition. Marketing executives have another. If you’re really brave, try to get the group to agree on a definition for a qualified lead. Good luck!
Regardless of definition, both groups agree that leads - especially good, targeted, qualified leads - are a good thing. So, what is a lead?
At its most basic level, a sales lead is the first stage of the sales process and represents the identity of a person or entity who has expressed an interest in either addressing the underlying business issue which your product or service addresses and/or your specific product or service.
Get FREE Price Quotes from Top Lead Generation Companies
While that definition is technically accurate, the proper definition of a lead is whatever best suits you and your company. It’s more important that you agree on a definition than the definition itself. Once you agree on the basic meaning of lead, you’ll want to create variations - such as targeted lead or qualified lead.
Let’s use the definition above and add some qualifiers.
A Targeted Lead is a sales lead (as defined above) from a company that resides in your target market. For example, if your solution only delivers significant value for companies between $250M and $5B in revenue and the company expressing an interest has only $5M in sales, then the lead is not a targeted lead.
A Qualified Lead is a sales lead from someone in a targeted account with the proper role who has expressed a well-considered interest in your solution AND acknowledges elements of BANT (Budget, Authority, Need and/or Timetable) with respect to the business issue your solution addresses or your specific products/services. In other words, a qualified lead is from the right person in the right company with the right problem and the desire and ability to evaluate your solution.
I talked in a previous blog posting about the importance utilizing “pull” marketing, which is simply drawing people into your business by ensuring you constantly provide value to them.
Sounds good, but how are you supposed to provide value to your prospects and your clients?
The best way is with content rich material - which is just a fancy term for information-packed material that your prospects want and need.
Some examples are:
* an interesting news article photocopied or scanned and sent to them
* free reports available via your website or links provided in an email
* ezine or newsletter
* access to downloads on your website
* links to interesting studies or articles
* how-to lists, tips & tricks and top 10 lists
* new book titles
* information about applicable workshops or seminars (don’t have to be yours)
There are many, many different ways you can offer valuable information to people. You can help them learn to view you and your company as an important resource for them - someone who shares what they know (and others know) with them.
Providing value also extends to your email marketing. Obviously the purpose of some of your follow-up material will be to pass along information such as sale dates or workshop registration details, etc.
But you should strive to have the majority of your marketing emails to prospective and current customers to be of some value to them and their needs - whether you’re targeting consumers or businesses.
Let me give you a couple examples.
If you are a tax consultant, instead of sending out an email letting people know of the tax return due dates, why not send out an email that lists some of the most-overlooked exemptions (personal or business - depending on your client base) they could claim. You could be seen as someone who cares about making sure people are educated about overlooked money on their taxes.
Or you may run a health and wellness store. You could send out an email to people on your customer list 3 -4 times a year, outlining what nutrients and vitamins people’s bodies most need or lack during specific seasons (ie. vitamin D in winter). You’re not overtly selling them anything, just letting them know some important health information.
Take a look around your business and take note of all the material and information you have (on your shelves, in your filing cabinets, in your head) regarding your company, product or services, and the market you serve.
Quickly jot down 5 ideas or ways that you can make this valuable stuff available to your prospects and your clients and then get it up on your website, put it in an email or ezine, post it on your counter.
Start positioning yourself as someone who is valuable and shares valuable information…then watch your number of leads and customers start climbing.
You are currently browsing the archives for the sales 2.0 category.
Digg
del.icio.us
Mixx
Google
Reddit
StumbleUpon
Propeller
TwitThis
Subscribe by Email