Many Non-profit organizations enact in an egregious manner. It perplexes me that non-profit organizations believe that there is a significant difference in performance, reporting and business methodology. This myth is not only untrue and must cease. Fact, Non-profit organizations require bureaucracy, goals and accountability. More importantly non-profits must always be marketing.

While reading a national periodical I read that a fairly prominent non-profit was preparing to cut as much as one-third of its headquarters staff, up to 1,000 employees, and pare regional management due to fundraising issues. Is this a lack of money, or simply a lack of selling and a lack of accountability? I am often intrigued when management cuts staff to raise profits and even more concerned when issues arise because organizations fail to remain committed to its only rational goals- retain and gain clients.

Organizations and their managers emulate children; they will find an excuse for anything. The real issue is accountability. Some non-profits fail miserably at marketing and sales. Recent research for this article indicates that many non-profits focus attention on operations rather than an outward focus.

Currently, examples of fund raising efforts involve galas and unfortunately notoriety following a disaster. Most organizations are staffed with volunteers uneducated in closing sponsors and requesting money. The means to an end for many organizations is to implement a professional selling force that is 1) hungry in the hunt and enjoys searching for dollars in precarious places, 2) enjoys networking to uncover possible donations and 3) will not hesitate to ask for the business.

Secondly, many firms believe that internal training augments large spending. Not true. From over 25 years with clients around the globe I typically get calls from organizations to conduct training for two vital reasons, 1) there is a bias within the organization that disavows market trends. 2) Organizations fail to provide proper motivational and productivity tools that create a competitive sales force. Managers are not well versed in compensation, goal matrices etc. Sales people are driven by proper goals and compensation. 3) There is a systematic approach to selling and many internal trainers use books and tapes rather than practical experience. Sales take longer to close and professionals as well as executives get frustrated with lagging revenue. 4) Internal training is myopic. In recent research 76% of firms that internally train do so once per year, then speculate why production and profits fail. 5) People go into sales because they hunger for money and the thrill of the hunt, non-profits tend to instruct service and fail to create the panacea. 6) Internal training fails in how to close business.

Finally, there is a horrendous disconnection between, clients, staff and at times boards of directors concerning marketing intentions. On a recent journey to train a non-profit there existed a variety of interpretations with the firm’s marketing message. Staff and executives could not agree on the external message to clients. Worse yet many staff were unclear why the organization existed. It is imperative for organization to develop a solid value proposition. A pithy statement focusing on output and client values transcends purpose for staff and focus for clients and donors. An example statement- “Transforming lives on the road to independence”. With all working in concert the organization operates with a joint purpose. All staff are then involved in the selling process. The outward focused message creates interest and conversation while illustrating how sponsorship is utilized.

Clearly not all non-profits are dysfunctional and many do not have these issues. Yet many do and fail to realize that success hinges upon the ability to raise funds- continually. Rather than use perfunctory fundraising methods, organizations should use methods employed by for profit institutions. With changes in market conditions and the economy specifically, donations become slimmer and competition increases. Currently, 850,455 public charities and 104,276 private foundations are registered with the IRS. (Source: The Urban Institute, National Center for Charitable Statistics, Business Master File 01/06) In addition, 463,714 other types of nonprofit organizations, such as chambers of commerce, fraternal organizations and civic leagues, are registered with the IRS. (Source: The Urban Institute, National Center for Charitable Statistics, Business Master File 01/06) This creates a highly competitive enviornment with many organizations vying for similar dollars. Even for non-profits the world flatten with globalization and competition requiring a thirst for differentiation.

©2008

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.

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.

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.

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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.

Considering that my core focus is building, developing, coaching, and mentoring sales teams for emerging companies, many people ask me what it takes to get sales going. The answer is simple, but all too often the greatest challenge a young company faces. If you just decided your product is ready for market, then take a long hard look at your first sales person. Take a look in a mirror, because it is you.

The problem is, in some cases, you are a website designer, or a programmer; possibly a business man or a finance guru, but a sales guy? You are not the one who gets people to buy. Well wait a moment, because all the efforts you put into your state-of-the-art offering that will change the world will sell itself right? We just have to advertise and the sales ready buyers will flock to our website, phone line, and inbox.

I do not relish being the bearer of bad news, but if you believe the latter, prepare to move back into the corporate world and slip those boots off for good. Someone in the founding group must be a capable sales person, and one who understands the innovators in your field. They have to know how to evangelize your offering without pitching and convincing. No one like this on your team? Then the first thing you should do is get a coach. Then read some books, articles, blog posts, and get ready for another education as you get your degree in selling.

There are some other basics to getting a competitive advantage when selling. First of all, innovators like other innovators, and while you can find many helpful hints on my blog and in other posts, most of my work here will be in sharing how to use Web 2.0 and cutting edge technologies to better sell your products. I hope you find this helpful as we journey through the advances of the 21st century. If you want to have a successful sales team, you have to start by getting some sales.