In house lead generation can often prove to be a difficult system to effectively set up, plus it can be quite costly as you find the right rhythms and approach that will be successful for your organization in the long term. Building a useable list of contacts that are able to provide high quality and actionable leads for your sales team can prove extremely difficult. Outsourcing to a third party service provider can be more effective and cost efficient, especially for those who are new to the game and need an instant return on their investments to push forward and grow as a business.
All companies need to generate new B2B leads and many do it through telemarketing as the easiest and cheapest staffing option. It is not always successful and if you do not have the means to effectively produce the results yourself then why not take the option of a third party provider who has expertise in this so crucial field. You have to be in a position to retain as many of your prospects as possible, both with that initial sale and retaining them as a longer term client. By using a company that can provide you with detailed analysis of prospects they have acquired on your behalf you will be surer of gaining a positive response once you make contact.
If your expertise is away from the sales side of your business then you would be foolish to try and use it within sales. By letting someone else generate your leads you are in fact saving time, money and opportunities. You can focus your energies towards improving the business in the areas that you have knowledge and practice. Internally there can be a streamlining of operations towards greater effectiveness, always looking to improve the business the best you can.
The outsourcing of your lead generation will lead to a decrease in your financial outgoings towards the sales department of your business.
But let us get down to the fact of the matter. A qualified outsourced B2B lead generation team will provide you with prospects that are more likely to bite. Using these more qualified sales staff will lead to a much higher conversion rate than should you try to take on the lead generation yourself. There will also be a faster conversion rate and an accurate response to your requests for a specific and targeted prospect audience.
Wednesday, June 29, 2011
Capturing Leads: The Power Of 3 Insurance Sales Management Systems
Most insurance industry experts agree capturing leads is the cornerstone of a successful insurance sales training program and the insurance sales management systems employed to ensure an producer's success in generating those leads is pivotal to the overall success of the company's business marketing strategy.
These three insurance sales management systems are all good systems in their own right, designed to capture leads and create sales opportunities, but when taken together, and in the order described, they guarantee an inexhaustible supply of prospects and a high probability of success.
The Referred Lead Card System is designed to generate good quality leads through referrals. It begins on the initial sales call when an producer interviews a prospect to assess needs and determine whether or not a sales opportunity exists. Before the interview begins, the producer sets out three pre-printed referral lead cards right alongside his/her laptop. At the end of the interview, whether this customer buys or not, the producer asks for three referrals. Using pre-scripted questions, like "Mr. _____, I know you know a lot of people. Who would you want to tell about the products, services and ideas I shared with you today?" and handling objections, like "I don't like to give names out" with responses, like "I can understand that, but I have found from past experience that many of my referrals were very interested in the products and services I offer and appreciated seeing the type of work I do."
The producer then completes a card on each referral -- a perforated card with all the relevant contact information on top (which the producer then keeps as a filing and phone call reference card) and with a pre-scripted note signed by the customer making the referral on the bottom. This card is then mailed to the new prospects. Five days later the producer calls the new prospect to schedule an interview.
Advocates of the Referred Lead Card System strongly attest to its success and believe it is the single, most significant resource they have in training their insurance producers to sell. Not one of them recommend buying insurance leads. Research shows that only one out of every 13 cold calls results in an appointment. However, two out of every three calls made to qualified lead referrals result in one. Better yet, producers who use the Referred Lead Card System close 80% of the business generated from those referrals.
Quality lead referrals generate sales prospects for the producer. As the list of prospects grows, a sales pipeline is created. It is in the pipeline where gaining trust and creating actual sales opportunities begin. A sales pipeline or "funnel" is typically a series of emails sent to prospects at pre-determined intervals. These emails all pertain to a particular topic of interest and are written with the expressed intent of slowly building a relationship between producer and prospect. Prospects or "subscribers" receive the emails at a comfortable pace with ample time to digest the contents.
The best and most versatile system an insurance company or agency can employ to enhance an producer's selling experience and ensure operational efficiency of the producer's pipeline or "funnel" is an Auto-Responder System. This piece of software resides on a mail server that holds, tracks and sends pipeline or "funnel" emails out in an organized fashion to all pipeline prospects on a pre-set schedule. Regardless of when they subscribe, prospects receive the same series of emails that all other subscribers receive, but on their own schedule.
A key advantage to using an Auto-Responder System is that the information and products sent to the prospect are done in a way that brings their understanding and experience level up gradually. However, if prospects are going to stay subscribed, value will be key -- value in the form of highly relevant and useful information as well as free products or services that lead the prospect to buy something. The more value added to the sales pipeline, the easier it is to monetize. When adding value or when making product or service recommendations, though, make sure the products and/or services being recommended are reputable ones than can be authenticated. Reputation is everything here.
Prospects stay in an producer's pipeline for as long as it takes the producer to sell them a product or service. While they are in the pipeline and as they increase their knowledge base and experience level about the products and services being offered, they may elect, with an invitation from the producer, to subscribe to an E-Newsletter. New and long-established customers can also subscribe to this.
E-Newsletters allow producers to add any and all relevant, quality information about product offerings, cutting-edge developments in the industry and any additional material for customers with advanced or experienced product knowledge. They are generally a key component of the insurance company's or agency's Internal Marketing System. As prospects gain a greater understanding of the products and services being offered, or if their experience level becomes greater than the information contained in the sales pipeline, the E-Newsletter proves to be the better option for them. The same is true for new and existing customers.
Proponents of the Auto-Responder System and the E-Newsletter recommend using both but recommend keeping two separate lists -- one for prospects and one for customers. By using both systems, and keeping their respective lists separate, there is no overlap between them. Prospects sign up for the Auto-Responder to bring their knowledge base and experience level up to speed slowly. Once they have completed the Auto-Responder Series, they can sign up for the E-Newsletter and begin forging a lasting professional relationship with the producer or insurance company. Prospects who take this route tend to be more loyal and profitable to the company. Additionally, they are not overwhelmed by information and their inbox is not overrun by constant emails which can drive them to unsubscribe. New and experienced customers can skip the Auto-Responder Series and simply sign up for the E-Newsletter. That way, they can begin receiving advanced product information and product offerings immediately.
These three insurance sales management systems are all excellent stand-alone systems for capturing leads, and when taken together and in the order listed, they are a dynamic and proven powerhouse of tools, methods and strategies designed not only to capture leads, but create sales opportunities that virtually guarantee the success of every producer and insurance company who uses them.
These three insurance sales management systems are all good systems in their own right, designed to capture leads and create sales opportunities, but when taken together, and in the order described, they guarantee an inexhaustible supply of prospects and a high probability of success.
The Referred Lead Card System is designed to generate good quality leads through referrals. It begins on the initial sales call when an producer interviews a prospect to assess needs and determine whether or not a sales opportunity exists. Before the interview begins, the producer sets out three pre-printed referral lead cards right alongside his/her laptop. At the end of the interview, whether this customer buys or not, the producer asks for three referrals. Using pre-scripted questions, like "Mr. _____, I know you know a lot of people. Who would you want to tell about the products, services and ideas I shared with you today?" and handling objections, like "I don't like to give names out" with responses, like "I can understand that, but I have found from past experience that many of my referrals were very interested in the products and services I offer and appreciated seeing the type of work I do."
The producer then completes a card on each referral -- a perforated card with all the relevant contact information on top (which the producer then keeps as a filing and phone call reference card) and with a pre-scripted note signed by the customer making the referral on the bottom. This card is then mailed to the new prospects. Five days later the producer calls the new prospect to schedule an interview.
Advocates of the Referred Lead Card System strongly attest to its success and believe it is the single, most significant resource they have in training their insurance producers to sell. Not one of them recommend buying insurance leads. Research shows that only one out of every 13 cold calls results in an appointment. However, two out of every three calls made to qualified lead referrals result in one. Better yet, producers who use the Referred Lead Card System close 80% of the business generated from those referrals.
Quality lead referrals generate sales prospects for the producer. As the list of prospects grows, a sales pipeline is created. It is in the pipeline where gaining trust and creating actual sales opportunities begin. A sales pipeline or "funnel" is typically a series of emails sent to prospects at pre-determined intervals. These emails all pertain to a particular topic of interest and are written with the expressed intent of slowly building a relationship between producer and prospect. Prospects or "subscribers" receive the emails at a comfortable pace with ample time to digest the contents.
The best and most versatile system an insurance company or agency can employ to enhance an producer's selling experience and ensure operational efficiency of the producer's pipeline or "funnel" is an Auto-Responder System. This piece of software resides on a mail server that holds, tracks and sends pipeline or "funnel" emails out in an organized fashion to all pipeline prospects on a pre-set schedule. Regardless of when they subscribe, prospects receive the same series of emails that all other subscribers receive, but on their own schedule.
A key advantage to using an Auto-Responder System is that the information and products sent to the prospect are done in a way that brings their understanding and experience level up gradually. However, if prospects are going to stay subscribed, value will be key -- value in the form of highly relevant and useful information as well as free products or services that lead the prospect to buy something. The more value added to the sales pipeline, the easier it is to monetize. When adding value or when making product or service recommendations, though, make sure the products and/or services being recommended are reputable ones than can be authenticated. Reputation is everything here.
Prospects stay in an producer's pipeline for as long as it takes the producer to sell them a product or service. While they are in the pipeline and as they increase their knowledge base and experience level about the products and services being offered, they may elect, with an invitation from the producer, to subscribe to an E-Newsletter. New and long-established customers can also subscribe to this.
E-Newsletters allow producers to add any and all relevant, quality information about product offerings, cutting-edge developments in the industry and any additional material for customers with advanced or experienced product knowledge. They are generally a key component of the insurance company's or agency's Internal Marketing System. As prospects gain a greater understanding of the products and services being offered, or if their experience level becomes greater than the information contained in the sales pipeline, the E-Newsletter proves to be the better option for them. The same is true for new and existing customers.
Proponents of the Auto-Responder System and the E-Newsletter recommend using both but recommend keeping two separate lists -- one for prospects and one for customers. By using both systems, and keeping their respective lists separate, there is no overlap between them. Prospects sign up for the Auto-Responder to bring their knowledge base and experience level up to speed slowly. Once they have completed the Auto-Responder Series, they can sign up for the E-Newsletter and begin forging a lasting professional relationship with the producer or insurance company. Prospects who take this route tend to be more loyal and profitable to the company. Additionally, they are not overwhelmed by information and their inbox is not overrun by constant emails which can drive them to unsubscribe. New and experienced customers can skip the Auto-Responder Series and simply sign up for the E-Newsletter. That way, they can begin receiving advanced product information and product offerings immediately.
These three insurance sales management systems are all excellent stand-alone systems for capturing leads, and when taken together and in the order listed, they are a dynamic and proven powerhouse of tools, methods and strategies designed not only to capture leads, but create sales opportunities that virtually guarantee the success of every producer and insurance company who uses them.
Goal Setting - Make It a Winning Proposition
Picture this - You lead a relatively new sales team for a Multinational. Budgets are frozen at the Regional Headquarters and it trickles down to you. Your organization's fiscal quarters do not map one to one with the country's financial setup: however Quarterly linearity is globally decided at HQ. Sales teams carry a significant variable component in their compensation plan and are expected to maturely plan their sales achievement to maximize salary. And yet, cannot forecast below quarterly budget. Sounds familiar? If you are a new manager, how do you manage goal setting in such an environment?
Welcome to the real world of negotiation - executed with one limb tethered to the management pole and the other swaying to head winds of employee motivation, retention, volition and satisfaction. If there is anything called elasticity of balance, this is it - a single degree of freedom for one hand (or half is it,
since it only moves upwards?) and unlimited for the other.
Here is where your leadership matters the most - Whether you are Participative, Authoritative or Delegative, the quota setting time for sales reps will seriously test your ability to carry your team along. If you are the kind who will lose sleep over employee happiness, here are 5 steps that you could do to manage this process smoothly:
1. Get sales buy-in early on in the year reinforcing expected growth rates for the coming year and set a target for a rolling pipeline. Growth rates need to be dependent on a mix of several macro-economic parameters viz, GDP growth, sectoral investment, market maturity etc and not just visible pipe.
2. Get your market information correct. Present to the management your closest take on the competitor sales figures and sales teams, market size (from estimated primary and secondary sources), SWOT data, historical analysis of average deal size and what is required to increase quarterly transaction volumes etc and thereby work out the most appropriate growth. You may still be cajoled into accepting a higher budget, but at least you made an effort towards a realistic forecast.
3. Fit to a curve. Avoid applying uniform growth rates to all reps in the team. Your star performers will be more than willing to take on a higher growth. If your organization permits flexibility in the variable pay mix, offer to increase the accelerator earnings for higher performance.
4. Weed out the suckers. Howsoever lucky you may be, there will always be noisy cribbers in the team that won't align with your reason. Assist them this year with a possible re-alignment of territory, sectors or products. If the situation persists next year, get them out-placed. If you possess even one star performer in your team, it is absolutely imperative to continuously churn out the low energy reps - that is the only way to build an all-star team that will give more than expected growth year after year.
Welcome to the real world of negotiation - executed with one limb tethered to the management pole and the other swaying to head winds of employee motivation, retention, volition and satisfaction. If there is anything called elasticity of balance, this is it - a single degree of freedom for one hand (or half is it,
since it only moves upwards?) and unlimited for the other.
Here is where your leadership matters the most - Whether you are Participative, Authoritative or Delegative, the quota setting time for sales reps will seriously test your ability to carry your team along. If you are the kind who will lose sleep over employee happiness, here are 5 steps that you could do to manage this process smoothly:
1. Get sales buy-in early on in the year reinforcing expected growth rates for the coming year and set a target for a rolling pipeline. Growth rates need to be dependent on a mix of several macro-economic parameters viz, GDP growth, sectoral investment, market maturity etc and not just visible pipe.
2. Get your market information correct. Present to the management your closest take on the competitor sales figures and sales teams, market size (from estimated primary and secondary sources), SWOT data, historical analysis of average deal size and what is required to increase quarterly transaction volumes etc and thereby work out the most appropriate growth. You may still be cajoled into accepting a higher budget, but at least you made an effort towards a realistic forecast.
3. Fit to a curve. Avoid applying uniform growth rates to all reps in the team. Your star performers will be more than willing to take on a higher growth. If your organization permits flexibility in the variable pay mix, offer to increase the accelerator earnings for higher performance.
4. Weed out the suckers. Howsoever lucky you may be, there will always be noisy cribbers in the team that won't align with your reason. Assist them this year with a possible re-alignment of territory, sectors or products. If the situation persists next year, get them out-placed. If you possess even one star performer in your team, it is absolutely imperative to continuously churn out the low energy reps - that is the only way to build an all-star team that will give more than expected growth year after year.
You Can Always Sell More, By Helping Your Sales Team Hold Their Prices
An ongoing challenge to any sales leader is how and when to give a price concession when a sales person asks for pricing help to win a sale.
The Six Realities of Giving Price Concessions.
As a sales and sales management consultant and trainer I've been constantly asked how to handle this situation from both sides, from the side of the sales manager as well as from the sales rep's side. There are six realities to understand and communicate as a sales manager if you want to do anything other than just granting the price reduction request, (and giving away significant profitability for your company).
Reality #1 - You Are Not In A Price Driven Market.
The first reality of any business is that you are not in a price driven market. There are no markets that are truly price driven. The only time price is relevant to a buyer is as the second driver of any buying decision. The first and primary decision of any buying evaluation is a differential in value. If a buyer perceives no differential in value then they will of course buy based on lowest price. However, the more of a differential in value they see then the higher a differential in price they will be willing to pay.
The bottom line of all selling and buying is that a buyer can always find a vendor who will be willing to offer a cheaper price for the same products. The way to compete against these low price sellers is to not fight them on the differences in your price but instead to fight them on the differences in the increased value and lower total cost your company can instead offer this buyer. A sales person does not have to be the lowest price to win the business when they can prove they can provide a lower total cost solution.
The Trap of Trying To Own the "Lowest Priced" Vendor Position in a Market.
The easiest position to win, but also the easiest and fastest position to lose, is that of the lowest price position. It takes little to no selling skills to sell a message that "we'll be the lowest priced vendor." However, winning business based on lowest price means you have to be constantly cutting your price against your competitors to be able to keep this customer and their business. If a buyer was able to negotiate a discount for their original purchase then of course they will also demand and expect similar discounts for any additional products or services purchased in the future.
A Sales Person's Goal Is To Exceed a Competitor's Value Instead Of Only Matching Their Low Price Demands.
Customers naturally want to buy the lowest price possible, wouldn't you? However, the lowest price quoted will not necessarily also be the lowest total cost to a buyer. In fact, the lowest price will never be the lowest total cost in a competitive marketplace when all costs, opportunities, risks, and exposures are considered.
Customer loyalty is achieved when your customers see enough extra value and uniqueness in your company that they will be willing to build a relationship with you at the expense of your competitors. Otherwise, why would they be so loyal to you when they could save money by buying from a lower priced competitor?
However, the lower the experience and skills of a sales person then the more likely they will only have enough skills and awareness to sell a "lowest price" message to their buyers. It takes time and selling skills to communicate and prove how and why you can lower a buyer's risks and total costs.
Reality #2 - By The Time A Price Reduction Request Gets To You (The Sales Manager) Your Sales Professional Has Likely Already Positioned Themselves As A "Low Price" Competitor In Front Of Their Buyer.
There are really only two alternative positions available to a sales person selling in a competitive market. They can either communicate or "sell" a message of lowest price, or of increased value and support, (offering a lower total cost). No truly competitive market will allow any one vendor to offer both.
So what competitive message of uniqueness has your sales person already been communicating to this buyer? Have they been pushing their ability to be the "lowest price" or have they been selling their "higher price but lowest total cost and risk" message to their buyer? How have they been answering their buyer asking them "Why, based on all the competitive alternatives available to me as a buyer do I want to buy from you and your company?"
If a sales person thinks the only way they can win this business is with the "lowest price" then it is also a safe assumption they have also already positioned themselves and your company as a low price player who will cut whatever price is initially quoted. They'll also be constantly asking their buyer for a "last look" as a strategy to win business...a strategy that also means they can only win business when they offer the lowest price...killing your profit margins. By the time they come to you asking for more pricing help they have most likely already positioned and trained their buyer to expect them to come back with either a "lowest price" or at least an offer to match the lowest price quoted by your competitor.
Now you, as the leader of your sales team, are in a lose-lose situation. Either you give them additional pricing help so they can finally close the business, giving up profit margins, or you push them to hold their price and most likely lose the sale due to the buyer's already established expectations they will be receiving a significant price break as a condition of signing an order.
Reality #3 - Even If You Cannot "Save The Profit Margins" In This Sale You Can Still At Least Begin Repositioning A Sales Team On How They Need To Be Selling In The Future.
There is not much you can do to hold your pricing and refuse a price concession request if your sales person has already told their buyer, "I've done all I can do on price...Let me talk with my manager to see if I can get any more concessions on your quote."
Even if you cannot save the profitability on this sale, you can still use this customer situation as the reason to begin working with your entire sales team on how to win without having to drop your prices. You will be approving fewer price concessions as soon as your sales team increases their selling and positioning of your uniqueness and added value.
Reality #4 - The Key To Getting Stronger Margins Is In Your Sales Management Coaching And Leadership Efforts.
The average sales person has minimal concerns for the long-term pricing and profitability of their company but instead is only focused on closing the next sale. One of the jobs of a sales manager is to help their team better communicate your organization's lower risk (and greater value) so buyers will buy from you at a higher price.
Use this pricing request as the opportunity to lead your team in the discussion of what they can do long-term to increase the value and support they can be promoting to all their buyers to win a "lowest total cost" message, at a higher margin. A critical responsibility as the leader of your team is to help them package and communicate this "lower risk and lower total cost" solution available from your company.
Reality #5 - You Can Use This Price Reduction Request To Push The Need For More Sales Coaching And Training So They Can Learn How To Win Business Even When They're Not The Lowest Price.
Keep talking about ways to strengthen your team's message and positioning of your ability to be a higher priced, but lower total cost supplier due to your ability to best lower a customer's risk as well as save them the most money in the long-term.
Reality #6 - You Do Not Have To Give In To a Sales Rep's Price Cutting Demands.
Defending business against lower priced challenges is a normal and ongoing effort of any sales person with an established customer base. Buyers today more than ever are evaluating, or re-evaluating, if they can buy what they need at a cheaper price. Most sales reps I meet are being forced to spend significant amounts of time defending their existing business from competitive attacks, especially lower priced competitive attacks. However, a sales person can win this "higher price" battle if they take more proactive control of their multiple-stepped selling processes and take a more proactive position from the beginning that they and their dealership "...will not be the lowest price, but will be the lowest total cost."
All sales reps talk about their "added value" and uniqueness. Now is the time to take a realistic look at how often they are actually working to communicate and prove more uniqueness, value, or savings than their competitors.
Value is always a part of any vendor replacement evaluation. Your competitor will take business away from you when they can show a buyer they can provide the same (or greater) value than you, but at a cheaper price. Very few buyers will take the personal risk of being responsible for switching to a lower priced vendor who has significantly lower quality or service levels.
So how much value, uniqueness, and savings are your sales people currently communicating and providing to their customers? The simple reality of business is...the more of a differential in value you see then the more of a differential in price you will pay.
A sales rep asking for price concessions is only a symptom. The real problem is your sales team is not improving their selling skills and ability to communicate successfully a consistent message of increased uniqueness and value to their buyers. When your sales team increases their positioning and communications of lower risk and increased value, then all of these price reduction requests will start to disappear.
The Six Realities of Giving Price Concessions.
As a sales and sales management consultant and trainer I've been constantly asked how to handle this situation from both sides, from the side of the sales manager as well as from the sales rep's side. There are six realities to understand and communicate as a sales manager if you want to do anything other than just granting the price reduction request, (and giving away significant profitability for your company).
Reality #1 - You Are Not In A Price Driven Market.
The first reality of any business is that you are not in a price driven market. There are no markets that are truly price driven. The only time price is relevant to a buyer is as the second driver of any buying decision. The first and primary decision of any buying evaluation is a differential in value. If a buyer perceives no differential in value then they will of course buy based on lowest price. However, the more of a differential in value they see then the higher a differential in price they will be willing to pay.
The bottom line of all selling and buying is that a buyer can always find a vendor who will be willing to offer a cheaper price for the same products. The way to compete against these low price sellers is to not fight them on the differences in your price but instead to fight them on the differences in the increased value and lower total cost your company can instead offer this buyer. A sales person does not have to be the lowest price to win the business when they can prove they can provide a lower total cost solution.
The Trap of Trying To Own the "Lowest Priced" Vendor Position in a Market.
The easiest position to win, but also the easiest and fastest position to lose, is that of the lowest price position. It takes little to no selling skills to sell a message that "we'll be the lowest priced vendor." However, winning business based on lowest price means you have to be constantly cutting your price against your competitors to be able to keep this customer and their business. If a buyer was able to negotiate a discount for their original purchase then of course they will also demand and expect similar discounts for any additional products or services purchased in the future.
A Sales Person's Goal Is To Exceed a Competitor's Value Instead Of Only Matching Their Low Price Demands.
Customers naturally want to buy the lowest price possible, wouldn't you? However, the lowest price quoted will not necessarily also be the lowest total cost to a buyer. In fact, the lowest price will never be the lowest total cost in a competitive marketplace when all costs, opportunities, risks, and exposures are considered.
Customer loyalty is achieved when your customers see enough extra value and uniqueness in your company that they will be willing to build a relationship with you at the expense of your competitors. Otherwise, why would they be so loyal to you when they could save money by buying from a lower priced competitor?
However, the lower the experience and skills of a sales person then the more likely they will only have enough skills and awareness to sell a "lowest price" message to their buyers. It takes time and selling skills to communicate and prove how and why you can lower a buyer's risks and total costs.
Reality #2 - By The Time A Price Reduction Request Gets To You (The Sales Manager) Your Sales Professional Has Likely Already Positioned Themselves As A "Low Price" Competitor In Front Of Their Buyer.
There are really only two alternative positions available to a sales person selling in a competitive market. They can either communicate or "sell" a message of lowest price, or of increased value and support, (offering a lower total cost). No truly competitive market will allow any one vendor to offer both.
So what competitive message of uniqueness has your sales person already been communicating to this buyer? Have they been pushing their ability to be the "lowest price" or have they been selling their "higher price but lowest total cost and risk" message to their buyer? How have they been answering their buyer asking them "Why, based on all the competitive alternatives available to me as a buyer do I want to buy from you and your company?"
If a sales person thinks the only way they can win this business is with the "lowest price" then it is also a safe assumption they have also already positioned themselves and your company as a low price player who will cut whatever price is initially quoted. They'll also be constantly asking their buyer for a "last look" as a strategy to win business...a strategy that also means they can only win business when they offer the lowest price...killing your profit margins. By the time they come to you asking for more pricing help they have most likely already positioned and trained their buyer to expect them to come back with either a "lowest price" or at least an offer to match the lowest price quoted by your competitor.
Now you, as the leader of your sales team, are in a lose-lose situation. Either you give them additional pricing help so they can finally close the business, giving up profit margins, or you push them to hold their price and most likely lose the sale due to the buyer's already established expectations they will be receiving a significant price break as a condition of signing an order.
Reality #3 - Even If You Cannot "Save The Profit Margins" In This Sale You Can Still At Least Begin Repositioning A Sales Team On How They Need To Be Selling In The Future.
There is not much you can do to hold your pricing and refuse a price concession request if your sales person has already told their buyer, "I've done all I can do on price...Let me talk with my manager to see if I can get any more concessions on your quote."
Even if you cannot save the profitability on this sale, you can still use this customer situation as the reason to begin working with your entire sales team on how to win without having to drop your prices. You will be approving fewer price concessions as soon as your sales team increases their selling and positioning of your uniqueness and added value.
Reality #4 - The Key To Getting Stronger Margins Is In Your Sales Management Coaching And Leadership Efforts.
The average sales person has minimal concerns for the long-term pricing and profitability of their company but instead is only focused on closing the next sale. One of the jobs of a sales manager is to help their team better communicate your organization's lower risk (and greater value) so buyers will buy from you at a higher price.
Use this pricing request as the opportunity to lead your team in the discussion of what they can do long-term to increase the value and support they can be promoting to all their buyers to win a "lowest total cost" message, at a higher margin. A critical responsibility as the leader of your team is to help them package and communicate this "lower risk and lower total cost" solution available from your company.
Reality #5 - You Can Use This Price Reduction Request To Push The Need For More Sales Coaching And Training So They Can Learn How To Win Business Even When They're Not The Lowest Price.
Keep talking about ways to strengthen your team's message and positioning of your ability to be a higher priced, but lower total cost supplier due to your ability to best lower a customer's risk as well as save them the most money in the long-term.
Reality #6 - You Do Not Have To Give In To a Sales Rep's Price Cutting Demands.
Defending business against lower priced challenges is a normal and ongoing effort of any sales person with an established customer base. Buyers today more than ever are evaluating, or re-evaluating, if they can buy what they need at a cheaper price. Most sales reps I meet are being forced to spend significant amounts of time defending their existing business from competitive attacks, especially lower priced competitive attacks. However, a sales person can win this "higher price" battle if they take more proactive control of their multiple-stepped selling processes and take a more proactive position from the beginning that they and their dealership "...will not be the lowest price, but will be the lowest total cost."
All sales reps talk about their "added value" and uniqueness. Now is the time to take a realistic look at how often they are actually working to communicate and prove more uniqueness, value, or savings than their competitors.
Value is always a part of any vendor replacement evaluation. Your competitor will take business away from you when they can show a buyer they can provide the same (or greater) value than you, but at a cheaper price. Very few buyers will take the personal risk of being responsible for switching to a lower priced vendor who has significantly lower quality or service levels.
So how much value, uniqueness, and savings are your sales people currently communicating and providing to their customers? The simple reality of business is...the more of a differential in value you see then the more of a differential in price you will pay.
A sales rep asking for price concessions is only a symptom. The real problem is your sales team is not improving their selling skills and ability to communicate successfully a consistent message of increased uniqueness and value to their buyers. When your sales team increases their positioning and communications of lower risk and increased value, then all of these price reduction requests will start to disappear.
Sales Training - Searching Deep Behind Self-Motivation
A majority of sales reps grapple with self-motivation on a regular basis. Even the most successful reps sometimes struggle to keep doing the little things that are critical to their success, so one can imagine the constant battle within for the average performers. Just one or two months of missing quota can rear its ugly head and gather negative momentum. The reps might begin to doubt themselves which of course leads to loss of confidence and self-belief. Furthermore automatic negative thoughts inside their head spurred by rejection and anxiety brings down their enthusiasm all together decreasing their overall chances of success.
Sales managers must dig deep to evaluate how their sales reps deal with motivation when they fail to hit their goals. It's critical that the reps learn patience if they are not successful. Knowing their past history when things don't go their way is also important. Emotions play a huge part in determining self-motivation. The sales manager should ask questions relating to the rep's feelings and state of mind during past challenges. They must understand how the rep truly feels when he fails to meet his goals and connect the dots with prior behavioral patterns. Some struggling sales reps may become too overcome by past failures to push forward with the necessary enthusiasm.
It's the nature of the beast that certain actions taken by senior management in the form of verbal warnings may further de-motivate the reps. It then becomes imperative for the sales manager to turn that negative action into positive by any means possible. One way to transfer the negative into a positive outcome is to connect the sales rep passion with his true motivation. Senior management can learn to create a positive environment that can fuel the rep's creative juices to work his way out of the slump.
Focusing on the true source of their sales team's motivation will allow senior management to tailor the incentives and rewards programs accordingly. If sales managers truly understand what gets their sales team blood pumping, then you can get them bought into the required action steps. When sales reps learn to maintain their motivation through ups and downs, they are more likely to be successful when seeking to work themselves out of a sales slump. Reps need to have their confidence boosted when they encounter slower sales, not de-motivating factors. Managers should not under-estimate the ability of the sales rep to search deep within to come up with solutions to get themselves back on the right track to consistent success.
Sales managers must dig deep to evaluate how their sales reps deal with motivation when they fail to hit their goals. It's critical that the reps learn patience if they are not successful. Knowing their past history when things don't go their way is also important. Emotions play a huge part in determining self-motivation. The sales manager should ask questions relating to the rep's feelings and state of mind during past challenges. They must understand how the rep truly feels when he fails to meet his goals and connect the dots with prior behavioral patterns. Some struggling sales reps may become too overcome by past failures to push forward with the necessary enthusiasm.
It's the nature of the beast that certain actions taken by senior management in the form of verbal warnings may further de-motivate the reps. It then becomes imperative for the sales manager to turn that negative action into positive by any means possible. One way to transfer the negative into a positive outcome is to connect the sales rep passion with his true motivation. Senior management can learn to create a positive environment that can fuel the rep's creative juices to work his way out of the slump.
Focusing on the true source of their sales team's motivation will allow senior management to tailor the incentives and rewards programs accordingly. If sales managers truly understand what gets their sales team blood pumping, then you can get them bought into the required action steps. When sales reps learn to maintain their motivation through ups and downs, they are more likely to be successful when seeking to work themselves out of a sales slump. Reps need to have their confidence boosted when they encounter slower sales, not de-motivating factors. Managers should not under-estimate the ability of the sales rep to search deep within to come up with solutions to get themselves back on the right track to consistent success.
E-Mail Marketing Surviving Social Media 'Threat'
Social media is undoubtedly useful for business-to-business (B2B) marketing, with websites such as Facebook and Twitter revolutionising the way that certain advertising methods are undertaken. Despite the rapid rise of social media, e-mail marketing is continuing to prove an effective medium through which small, medium and large size enterprises can advertise their brands.
A recent study carried out by Epsilon that examined no less than 7 billion e-mail messages highlighted the value of e-mail marketing in B2B communications. According to Epsilon, open rates pertaining to e-mail campaigns reached 23.3 per cent by April this year - a success rate of almost one quarter.
Click-through rates, which are critical to B2B lead generation, were also relatively high at 5.9 per cent. Click-to-conversion rates - the holy grail of e-mail - rose by 26.5 per cent from the same period in 2010. As such, it could be argued that, despite the phenomenal rise of social media, e-mail marketing is very much holding its own when it comes to B2B lead generation.
Marketing opportunities in the commercial sphere need not be limited to e-mail, of course, but the web's most convenient and traditional form of communication should not be overlooked in place of new media. E-mail marketing has a proven track record in delivering results and it is unlikely the medium will suffer a major dip in the near future; indeed, current trends suggest e-mail marketing is set to increase this year and next.
According to the 2011 Digital Marketing Survey, which was undertaken by the Society of Digital Agencies, 70 per cent of marketers intend to increase investment in niche e-mail marketing throughout 2011. At the beginning of the year, a survey carried out by BtoB Magazine found that a massive 63 per cent of marketers hoped to increase spending on direct e-mail campaigns for the next 12 months and beyond.
E-mail is especially useful as marketers can track B2B lead generation using relatively simple methods and technologies. It is also the case that B2B e-mail marketing requires very little cost compared to other forms of advertising.
Although once considered a threat to e-mail, social media is proving to be a useful area in which marketers can promote a brand - but not one that is blind to all other forms of advertising; indeed, social media and e-mail can be utilised in combination to produce strong results for businesses. Ultimately, e-mail marketing is surviving the social media 'threat'.
A recent study carried out by Epsilon that examined no less than 7 billion e-mail messages highlighted the value of e-mail marketing in B2B communications. According to Epsilon, open rates pertaining to e-mail campaigns reached 23.3 per cent by April this year - a success rate of almost one quarter.
Click-through rates, which are critical to B2B lead generation, were also relatively high at 5.9 per cent. Click-to-conversion rates - the holy grail of e-mail - rose by 26.5 per cent from the same period in 2010. As such, it could be argued that, despite the phenomenal rise of social media, e-mail marketing is very much holding its own when it comes to B2B lead generation.
Marketing opportunities in the commercial sphere need not be limited to e-mail, of course, but the web's most convenient and traditional form of communication should not be overlooked in place of new media. E-mail marketing has a proven track record in delivering results and it is unlikely the medium will suffer a major dip in the near future; indeed, current trends suggest e-mail marketing is set to increase this year and next.
According to the 2011 Digital Marketing Survey, which was undertaken by the Society of Digital Agencies, 70 per cent of marketers intend to increase investment in niche e-mail marketing throughout 2011. At the beginning of the year, a survey carried out by BtoB Magazine found that a massive 63 per cent of marketers hoped to increase spending on direct e-mail campaigns for the next 12 months and beyond.
E-mail is especially useful as marketers can track B2B lead generation using relatively simple methods and technologies. It is also the case that B2B e-mail marketing requires very little cost compared to other forms of advertising.
Although once considered a threat to e-mail, social media is proving to be a useful area in which marketers can promote a brand - but not one that is blind to all other forms of advertising; indeed, social media and e-mail can be utilised in combination to produce strong results for businesses. Ultimately, e-mail marketing is surviving the social media 'threat'.
How Can Email Marketing Help B2B Lead Generation?
Targeting new and existing customers through email marketing is a very cost-effective and powerful means of generating sales.
Email marketing reduces the need for expensive, paper-based products such as printed brochures, mailed newsletters and print advertising; replacing them with downloadable PDFs, interactive electronic newsletters and online advertising. Email marketing is quick, efficient and inexpensive.
However generic, unsolicited email marketing ('spam') can deter potential customers if your messages are irrelevant to their business or sent to the wrong people at the wrong time. You may waste valuable resources if your marketing is not informed by customer behaviour and your credibility within the industry could be damaged.
To be effective, email marketing must be targeted. Unsolicited, generic emails are more likely to be deleted without opening or blocked by security software. However existing customers and contacts who have opted to receive marketing from you are more likely to respond to your emails, particularly if the content is relevant to their needs and delivered at the right time for their business.
Demand generation increases awareness within the industry of your products and services but to translate that into sales requires detailed analysis of customer behaviour. Research shows that around 25% of leads generated will be disqualified straight away, 25% will translate into sales but 50% of your B2B leads will require further nurturing before progressing.
Email marketing can be used for both B2B demand and lead generation to target customers based on their job title or position, location, company size or industry. You can purchase databases or enhance your own existing customer base. The information you have about customer behaviour, including how, when and how much they buy, will help you nurture business relationships and generate more sales.
Marketing automation software allows you to focus your B2B lead generation by analysing customer behaviour and interest in your products or services. It delivers sophisticated evaluation measures, including web traffic, email open rates, ad clicks and analysis of customer response to your marketing. This in turn helps you understand the effectiveness of your marketing campaigns and the return on your investment.
These tools allow you to build on your existing customer relations with consistent and relevant marketing. Rather than try to generate leads with a generic campaign, you can use this information to target potential customers with offers they will be interested in, at the right time in their sale cycle and within their budget.
Email marketing reduces the need for expensive, paper-based products such as printed brochures, mailed newsletters and print advertising; replacing them with downloadable PDFs, interactive electronic newsletters and online advertising. Email marketing is quick, efficient and inexpensive.
However generic, unsolicited email marketing ('spam') can deter potential customers if your messages are irrelevant to their business or sent to the wrong people at the wrong time. You may waste valuable resources if your marketing is not informed by customer behaviour and your credibility within the industry could be damaged.
To be effective, email marketing must be targeted. Unsolicited, generic emails are more likely to be deleted without opening or blocked by security software. However existing customers and contacts who have opted to receive marketing from you are more likely to respond to your emails, particularly if the content is relevant to their needs and delivered at the right time for their business.
Demand generation increases awareness within the industry of your products and services but to translate that into sales requires detailed analysis of customer behaviour. Research shows that around 25% of leads generated will be disqualified straight away, 25% will translate into sales but 50% of your B2B leads will require further nurturing before progressing.
Email marketing can be used for both B2B demand and lead generation to target customers based on their job title or position, location, company size or industry. You can purchase databases or enhance your own existing customer base. The information you have about customer behaviour, including how, when and how much they buy, will help you nurture business relationships and generate more sales.
Marketing automation software allows you to focus your B2B lead generation by analysing customer behaviour and interest in your products or services. It delivers sophisticated evaluation measures, including web traffic, email open rates, ad clicks and analysis of customer response to your marketing. This in turn helps you understand the effectiveness of your marketing campaigns and the return on your investment.
These tools allow you to build on your existing customer relations with consistent and relevant marketing. Rather than try to generate leads with a generic campaign, you can use this information to target potential customers with offers they will be interested in, at the right time in their sale cycle and within their budget.
Fix A Complacent Sales Team
John is the owner of Widget Distribution, Inc. He has a seven-person sales team with one sales manager. Faced with stagnant revenues in a tough economic climate, John decided to have a conversation about this issue with Bill, his sales manager. John made a suggestion that the sales people needed to learn some new behaviors to be more effective sales people. John's suggestions were, improving on setting and monitoring goals. Other areas to focus on would be how we create a budget when there is not a budget available for our products and service. In addition to these areas John asked Bill if he knew what intrinsically motivated each sales team member and what their behavior style was. Finally, John asked about each team member's Emotional Quotient. John was shocked by Bill's answers. It went something like this: "You know, we've tried some of those assessments in the past and they just didn't work. We've also worked on sales training in the form of improving behaviors. This didn't work well either because the sale people are so set in their ways they never would change their behavior. Besides, when would we find the time to do that training? We gave each team member their goals at the beginning of the year. If they would just call on more people they could meet their quota. In addition, we should be happy! Look at how many companies are losing revenue in this economy!"
Bill is suffering from sales leader complacency. In one sentence he would say we need to improve and constantly grow. In the next sentence Bill would begin with "yes, but..." Bill, like so many sales leaders, is conflicted and confused, which leads to fear and complacency. He is under the impression sales is only a numbers game and his job is to put the fear of God in those pesky sales people until they hit the goals he and the boss came up with. If they don't hit the goals, just start over with a fresh face. So is Bill a lost cause? I'm not sure. Perhaps the answer is yes, no and maybe. But this I know for certain: It takes emotion to make a sale and it will take an emotional turning point to move Bill out of his complacent mindset. So what will pull Bill out of his emotional hangover?
Start with emotions to improve behaviors and competencies. Using some examples from an article by Chip and Dan Heath titled "Why Emotion, Not Knowledge, is the Catalyst for Change". John came up with this solution. John realized he had to get Bill to see the amount of money that he left on the table for the past two years. Remember, this money left on the table was there because the sales team had missed their goals for the last two years an average of 20% across the board. Projected sales were $17,500.000 for each year. The company did $14,000,000. The amount was short $3,500,000 give or take for two years. John would receive a 2% override on all sales over $14,000,000 in addition to his lucrative salary and benefits. So John had just left approximately $70,000 or more on the table for two years. There is no cap on his bonus.
Bill is caught up in sales manager complacency. The company was still profitable and things were good, just not great. Now here is where the learning comes in. John went to his bank and put $140,000 cash in a briefcase. He opened the brief case and let Bill look over and count a lot of the money in the briefcase. He then powered up his trusty PowerPoint and ran through some full-color slides of what $140,000 could have bought Bill. He videotaped the entire session and would send clips of that to Bill throughout the next year. Guess what? The next year in a down economy the company did over $18,000,000 in sales. For those thinking this is a fairy tale, I will now explain scientifically why this happened.
It all has to do with emotions being the catalyst of change. Here is the formula for superior performance. What precedes superior performance is competency, and thus better decision making in the moment. Improving competencies is preceded by improving behaviors. What precedes behaviors is cognition, the ability to acquire knowledge. The key for superior performance is that for all these areas to function properly, you must start with emotions. Emotions trump all the other components on the path to Superior Performance. That is what was happening to Bill. Until he actually saw the money and the pictures of what it could have bought, he was not emotionally engaged.
Bill is suffering from sales leader complacency. In one sentence he would say we need to improve and constantly grow. In the next sentence Bill would begin with "yes, but..." Bill, like so many sales leaders, is conflicted and confused, which leads to fear and complacency. He is under the impression sales is only a numbers game and his job is to put the fear of God in those pesky sales people until they hit the goals he and the boss came up with. If they don't hit the goals, just start over with a fresh face. So is Bill a lost cause? I'm not sure. Perhaps the answer is yes, no and maybe. But this I know for certain: It takes emotion to make a sale and it will take an emotional turning point to move Bill out of his complacent mindset. So what will pull Bill out of his emotional hangover?
Start with emotions to improve behaviors and competencies. Using some examples from an article by Chip and Dan Heath titled "Why Emotion, Not Knowledge, is the Catalyst for Change". John came up with this solution. John realized he had to get Bill to see the amount of money that he left on the table for the past two years. Remember, this money left on the table was there because the sales team had missed their goals for the last two years an average of 20% across the board. Projected sales were $17,500.000 for each year. The company did $14,000,000. The amount was short $3,500,000 give or take for two years. John would receive a 2% override on all sales over $14,000,000 in addition to his lucrative salary and benefits. So John had just left approximately $70,000 or more on the table for two years. There is no cap on his bonus.
Bill is caught up in sales manager complacency. The company was still profitable and things were good, just not great. Now here is where the learning comes in. John went to his bank and put $140,000 cash in a briefcase. He opened the brief case and let Bill look over and count a lot of the money in the briefcase. He then powered up his trusty PowerPoint and ran through some full-color slides of what $140,000 could have bought Bill. He videotaped the entire session and would send clips of that to Bill throughout the next year. Guess what? The next year in a down economy the company did over $18,000,000 in sales. For those thinking this is a fairy tale, I will now explain scientifically why this happened.
It all has to do with emotions being the catalyst of change. Here is the formula for superior performance. What precedes superior performance is competency, and thus better decision making in the moment. Improving competencies is preceded by improving behaviors. What precedes behaviors is cognition, the ability to acquire knowledge. The key for superior performance is that for all these areas to function properly, you must start with emotions. Emotions trump all the other components on the path to Superior Performance. That is what was happening to Bill. Until he actually saw the money and the pictures of what it could have bought, he was not emotionally engaged.
The Best Way to Increase Your Prices Without Losing Business
How do you raise the prices of your services and products without losing business? Anyone can increase their prices. The big question is: Are you able to keep or increase your business when you raise prices?
There are three important steps to achieving this goal:
1) Know your market
The first step to achieving higher prices is to know your market. Get in touch with your competition and get quotes. Ask your clients what they're paying for products like yours. Learn your market and make an IMMEDIATE adjustment when you spot an opportunity.
I recently called our competitors to uncover what they were charging for their products. Although the pricing of our products was similar, I noticed that they were charging considerably more for transporting their products than us. Transportation is the second largest revenue stream at my company and this was big chance for me.
I immediately increased our transportation fees by 50% and guess what? Our customers didn't flinch. They kept ordering! In a month I added roughly 3% to the bottom line without doing anything different except quoting higher prices. Talk about return on investment! But first I had to gain a better understanding of the market.
2) Enhance your level of service
The second step to increasing your prices is to offer more and better SERVICE. If you're able to find ways to increase your service offering, your clients will pay you more.
People will pay you depending on how valuable you are to them. Price and value are two very different things. Price is what you set, value is what the customer gets.
The good news is that you can influence your value. You have a say in this! All you've got to do is offer more and better service. If you can influence value, then you can influence price as price follows value.
3) Ask for higher prices
The final step to achieving higher prices is to request them. After you gain a better familiarity with your market and improve your service offering, you're fully equipped to raise prices.
Have confidence when you request your higher prices. If you believe you are worth it, so will your clients. Never sell yourself short.
There are three important steps to achieving this goal:
1) Know your market
The first step to achieving higher prices is to know your market. Get in touch with your competition and get quotes. Ask your clients what they're paying for products like yours. Learn your market and make an IMMEDIATE adjustment when you spot an opportunity.
I recently called our competitors to uncover what they were charging for their products. Although the pricing of our products was similar, I noticed that they were charging considerably more for transporting their products than us. Transportation is the second largest revenue stream at my company and this was big chance for me.
I immediately increased our transportation fees by 50% and guess what? Our customers didn't flinch. They kept ordering! In a month I added roughly 3% to the bottom line without doing anything different except quoting higher prices. Talk about return on investment! But first I had to gain a better understanding of the market.
2) Enhance your level of service
The second step to increasing your prices is to offer more and better SERVICE. If you're able to find ways to increase your service offering, your clients will pay you more.
People will pay you depending on how valuable you are to them. Price and value are two very different things. Price is what you set, value is what the customer gets.
The good news is that you can influence your value. You have a say in this! All you've got to do is offer more and better service. If you can influence value, then you can influence price as price follows value.
3) Ask for higher prices
The final step to achieving higher prices is to request them. After you gain a better familiarity with your market and improve your service offering, you're fully equipped to raise prices.
Have confidence when you request your higher prices. If you believe you are worth it, so will your clients. Never sell yourself short.
The Dual Benefits of Marketing Automation for B2B Lead Generation
Many of those who consider using marketing automation and demand generation software first think about its applications for cost-cutting. Automated marketing packages can make light and easy work of a project that could tie up a staggering amount of man-hours if it was done by hand. This makes these systems very attractive to managers or small business owners who have had to let employees go during the current economic climate. Even those enterprises which have not needed to cut their wage bill may desire to use automated marketing so that valuable employee time can be used more efficiently and staff freed up to work on growing or consolidating the business.
However, automated marketing is not simply a tool that is used to replace personal attention; it is a valuable tool in its own right that gives particular benefits over and above that which can be gained from individual workers. Marketing automation allows a wide net to be cast in B2B lead generation through demand generation and email marketing. Generally speaking, the more contacts that are made, the more leads that are generated and the more leads that are converted to sales. This is not all that marketing automation is about; it is more than simply a automatic email-shot to a contact list. This kind of software also allows automation of responses based on the replies that customers send and integration of email marketing with the business's entire online marketing strategy.
Marketing automation software also allows analysis of trends and development of strategies based on hard data. Analysis of website visitors' behavior allows for automatic targeting of receptive potential customers so that they can be prompted to return to a business' website and convert into sales. Follow-up strategies to maximize the amount of sales from a single customer are also possible. This allows a more accurate determination of return on investment so that unsuccessful strategies can be abandoned or reworked and more focus can be put on those strategies that are resulting in successful B2B lead generation. May software packages also offer integrated control systems so that all of the elements of a business' marketing campaigns can be seamlessly organized from a single program.
While the cost-saving elements of marketing automation in B2B lead generation are a valuable draw, business owners should not forget the other benefits that they can gain and ensure that they choose the software that best allows their business to grow and prosper.
However, automated marketing is not simply a tool that is used to replace personal attention; it is a valuable tool in its own right that gives particular benefits over and above that which can be gained from individual workers. Marketing automation allows a wide net to be cast in B2B lead generation through demand generation and email marketing. Generally speaking, the more contacts that are made, the more leads that are generated and the more leads that are converted to sales. This is not all that marketing automation is about; it is more than simply a automatic email-shot to a contact list. This kind of software also allows automation of responses based on the replies that customers send and integration of email marketing with the business's entire online marketing strategy.
Marketing automation software also allows analysis of trends and development of strategies based on hard data. Analysis of website visitors' behavior allows for automatic targeting of receptive potential customers so that they can be prompted to return to a business' website and convert into sales. Follow-up strategies to maximize the amount of sales from a single customer are also possible. This allows a more accurate determination of return on investment so that unsuccessful strategies can be abandoned or reworked and more focus can be put on those strategies that are resulting in successful B2B lead generation. May software packages also offer integrated control systems so that all of the elements of a business' marketing campaigns can be seamlessly organized from a single program.
While the cost-saving elements of marketing automation in B2B lead generation are a valuable draw, business owners should not forget the other benefits that they can gain and ensure that they choose the software that best allows their business to grow and prosper.
Using Social Media for B2B Lead Generation
The shape of business-to-business (B2B) lead generation has changed significantly over the past few years. E-mail marketing campaigns continue to deliver results, but the way in which companies interact online has moved into new realms. If internet marketers wish to succeed in the current climate, they must explore and exploit the benefits of social.
Social media tools describe services that bring people and businesses together to communicate in some form or another. Two of the finest examples of successful social platforms are Twitter and Facebook, which have attracted more than 325 million users between them.
Availing of these tools is not easy, however, not least because many firms fail to appreciate the reasons why people choose to network online. As with conventional B2B lead generation methods, simply advertising a brand online is not always enough - users, particularly companies, expect more via social media.
Using social for B2B lead generation is set to become an integral aspect of demand generation in its broadest context, while e-mail marketing campaigns can learn a lot from experienced social media marketers because exploiting social media requires an understanding of 'buyer personas'.
Buyer personas describe the personality traits, characteristics and purchasing trends of potential consumers, clients and business partners. Online marketing campaigns have suffered in the past for failing to appreciate that the same template cannot be used successfully for all firms within a particular demographic - content must match a more precise target audience. Social media can be used to fine-tune B2B marketing campaigns to the point where marketers understand their audience on a more personal level.
B2B demand generation can be facilitated in this manner because companies are appreciating the value of being represented on Twitter, Facebook and other such websites. Firms communicate through social media with their customers, clients and business partners - tapping in to this vital mode of networking can stimulate lead generation across the board.
Of course, simply liking other firms on Facebook or following companies or investors on Twitter is unlikely to reap dividends. In order to utilise social media fully, firms must follow, be followed, like and be liked; furthermore, marketers must work hard to generate viable B2B content that can be used for lead generation.
Social media is not a direct replacement for conventional forms of lead generation such as e-mail marketing, but it has moved the goalposts. Companies can use social networks for advanced networking, targeted content delivery and integration with new and existing channels of B2B marketing - but only if the task is undertaken in a careful, deliberate manner.
Social media tools describe services that bring people and businesses together to communicate in some form or another. Two of the finest examples of successful social platforms are Twitter and Facebook, which have attracted more than 325 million users between them.
Availing of these tools is not easy, however, not least because many firms fail to appreciate the reasons why people choose to network online. As with conventional B2B lead generation methods, simply advertising a brand online is not always enough - users, particularly companies, expect more via social media.
Using social for B2B lead generation is set to become an integral aspect of demand generation in its broadest context, while e-mail marketing campaigns can learn a lot from experienced social media marketers because exploiting social media requires an understanding of 'buyer personas'.
Buyer personas describe the personality traits, characteristics and purchasing trends of potential consumers, clients and business partners. Online marketing campaigns have suffered in the past for failing to appreciate that the same template cannot be used successfully for all firms within a particular demographic - content must match a more precise target audience. Social media can be used to fine-tune B2B marketing campaigns to the point where marketers understand their audience on a more personal level.
B2B demand generation can be facilitated in this manner because companies are appreciating the value of being represented on Twitter, Facebook and other such websites. Firms communicate through social media with their customers, clients and business partners - tapping in to this vital mode of networking can stimulate lead generation across the board.
Of course, simply liking other firms on Facebook or following companies or investors on Twitter is unlikely to reap dividends. In order to utilise social media fully, firms must follow, be followed, like and be liked; furthermore, marketers must work hard to generate viable B2B content that can be used for lead generation.
Social media is not a direct replacement for conventional forms of lead generation such as e-mail marketing, but it has moved the goalposts. Companies can use social networks for advanced networking, targeted content delivery and integration with new and existing channels of B2B marketing - but only if the task is undertaken in a careful, deliberate manner.
Using Historical Performance to Aid a Reorganization
With the increase in organization complexity and runaway expectations in market growth, a re-organization of the field force can deliver significant results in a short time. Is there ever a right time for such a re-org and why should one do it at all? While there are several reasons mandating such a decision, let us examine a scenario where historical performance can assist in fine tuning the go-to-market model.
Say, your organization expects you to grow your business by an enormous percentage over the last year. By sheer dint of hard work aided by some charismatic leadership and a fair bit of luck, there could a possibility of landing a great year. However, a bit of additional homework can also help. Ask yourself a few questions:
a) What were the numbers of transactions executed in the last year?
b) How many of those could be considered outliers - both at the top and at the bottom.
c) What would be an average deal size without considering the outliers?
d) What was the average volume of deals executed by each sales rep?
e) How many sales reps have met their quota over the last 3 years? Is there a room for a growth in quota?
f) Was the number of transactions per rep influenced in any way by the limitations of process complexity? If yes, could a simplification result in a positive change?
g) What has been the trailing 3-years y-o-y growth in deal size, deal volumes and Outlier size and volumes? Is there a predictable pattern that could be used as a sustained learning?
Armed with the above perspective, draw up a reasonable estimate of how much the sales team is currently equipped to deliver and temper this with your judgmental estimate of macro economic growth factors.
Do you still see a gap to budget? If yes, pick up the cudgel now because here is where a re-organization can help you. Expand headcount, Realign priorities or focus, Create a newer SWAT team, Go after newer markets, Regroup teams, Attack process times on lead to order booking, Hire mavericks capable of challenging conventional wisdom etc and anything else you infer it will take to bridge the gap. Narrow down your efforts to counter the immediate challenge posed by the incremental terrain and then re-group the other parts of the organization around that. And all the while, resist the temptation to just rotate executives around.
Make no mistake, for a reorganization to work; it needs to be much more than a vanilla job rotation - moving around executives does have a near-term impact but longer term benefits can also be secured with carefully analyzed historical information.
Say, your organization expects you to grow your business by an enormous percentage over the last year. By sheer dint of hard work aided by some charismatic leadership and a fair bit of luck, there could a possibility of landing a great year. However, a bit of additional homework can also help. Ask yourself a few questions:
a) What were the numbers of transactions executed in the last year?
b) How many of those could be considered outliers - both at the top and at the bottom.
c) What would be an average deal size without considering the outliers?
d) What was the average volume of deals executed by each sales rep?
e) How many sales reps have met their quota over the last 3 years? Is there a room for a growth in quota?
f) Was the number of transactions per rep influenced in any way by the limitations of process complexity? If yes, could a simplification result in a positive change?
g) What has been the trailing 3-years y-o-y growth in deal size, deal volumes and Outlier size and volumes? Is there a predictable pattern that could be used as a sustained learning?
Armed with the above perspective, draw up a reasonable estimate of how much the sales team is currently equipped to deliver and temper this with your judgmental estimate of macro economic growth factors.
Do you still see a gap to budget? If yes, pick up the cudgel now because here is where a re-organization can help you. Expand headcount, Realign priorities or focus, Create a newer SWAT team, Go after newer markets, Regroup teams, Attack process times on lead to order booking, Hire mavericks capable of challenging conventional wisdom etc and anything else you infer it will take to bridge the gap. Narrow down your efforts to counter the immediate challenge posed by the incremental terrain and then re-group the other parts of the organization around that. And all the while, resist the temptation to just rotate executives around.
Make no mistake, for a reorganization to work; it needs to be much more than a vanilla job rotation - moving around executives does have a near-term impact but longer term benefits can also be secured with carefully analyzed historical information.
How Email Marketing Can Generate Quality Leads
In some quarters, emailing marketing has a less than optimal reputation. Some see it simply as the refuge of 'spammers', a low-rent way for businesses to try and grab the attention of their customers, while generally succeeding only in irritating them. It doesn't have to be like that. Over the last couple of years email has evolved and progressed through the use of in-depth analytical tools that allow for highly targeted and relevant campaigns. Good quality email campaigns can offer a great ROI and is an excellent opportunity work on customer and B2B lead generation.
Email marketing can easily be outsourced to specialist marketing firms. They will generally be able to offer a full email package designed to help your business win customers in a targeted way. Rather than untargeted campaigns that drive away as many customers as they gain, modern marketing aims to reach the right people and generate real leads. Rather than simply driving traffic to a website, quality email campaigns concentrate on customer and B2B lead generation. They generally do this by tracking and analysing behaviour.
After a marketing email has been sent, a lead generation tool can be used to work out which of the website hits that result from it are likely to be real leads. It can see when people have logged on to the site, how long they spent there, and whether and when they return. A customer who logs on repeatedly and frequently is, naturally, far more likely to be a good lead than one on who logs on once. This kind of information then needs to be used effectively. It could be sent to sales staff, who can then make calls to follow up the leads. It could also be used to trigger an automatic email, creating a kind of targeted email marketing 'virtuous circle'.
Effective email marketing that is combined with automatic customer and B2B lead generation in this way is intelligent marketing that can build business for the future. As with any kind of marketing campaign, it needs to be well handled in order to work, and the automated side of it is only part of the story. Without good sales people in place to back it up, it will not produce the kind of returns your business needs. However, with commitment and a holistic approach, using automatic lead generation can transform a very ordinary email marketing campaign into a huge success.
Email marketing can easily be outsourced to specialist marketing firms. They will generally be able to offer a full email package designed to help your business win customers in a targeted way. Rather than untargeted campaigns that drive away as many customers as they gain, modern marketing aims to reach the right people and generate real leads. Rather than simply driving traffic to a website, quality email campaigns concentrate on customer and B2B lead generation. They generally do this by tracking and analysing behaviour.
After a marketing email has been sent, a lead generation tool can be used to work out which of the website hits that result from it are likely to be real leads. It can see when people have logged on to the site, how long they spent there, and whether and when they return. A customer who logs on repeatedly and frequently is, naturally, far more likely to be a good lead than one on who logs on once. This kind of information then needs to be used effectively. It could be sent to sales staff, who can then make calls to follow up the leads. It could also be used to trigger an automatic email, creating a kind of targeted email marketing 'virtuous circle'.
Effective email marketing that is combined with automatic customer and B2B lead generation in this way is intelligent marketing that can build business for the future. As with any kind of marketing campaign, it needs to be well handled in order to work, and the automated side of it is only part of the story. Without good sales people in place to back it up, it will not produce the kind of returns your business needs. However, with commitment and a holistic approach, using automatic lead generation can transform a very ordinary email marketing campaign into a huge success.
How to Improve Your B2B Lead Generation Efforts
Improving B2B lead generation figures involves the integration of a number of different marketing mediums. Businesses often find it hard to keep track of their marketing efforts in a consistent manner, and as a result fail to take advantage of some powerful opportunities that can generate a significant number of leads.
Demand Generation
Demand generation is the process of building awareness through a variety of media including social media marketing, email marketing, pay per click ads, viral marketing, search engine optimization, offline advertising and affiliate marketing. Combining the different methods in a planned marketing campaign offers the greatest possibility of attracting the maximum number of new prospects.
Email Marketing
Email marketing continues to be a key part of any marketing campaign. Whichever method is used to make initial contact with prospects, email marketing is used to follow-up with these prospects, maintaining their interest in a service or product and facilitating the conversion of leads into customers.
Marketing Automation
Getting a direct link between your demand generation efforts and the revenue generated can be complicated, especially when using so many different channels. The most efficient way to track marketing and ROI is with the use of marketing automation software, viewing at-a-glance which methods are most successful for B2B lead generation.
• Find out which lead sources are converting best
See where you are getting the best ROI so you can eliminate unsuccessful campaigns and focus on the revenue generating campaigns.
• Tracking trends
Monitoring trends can identify patterns in prospect behaviour: if they are most responsive on certain days or certain times for example.
• Automation of repetitive tasks
Repetitive tasks can be very time-consuming and it pays to automate them whenever possible.
• Track marketing across a range of media
Instead of using several different tools or programs to track your marketing efforts, it is much more effective to be able to see at-a-glance all of the different media you are using and compare the results.
• Automatic follow-up of sales leads
Sales leads often convert only after several follow-ups. By automating prospect follow-ups you avoid losing potential clients through lack of contact.
With so many marketing mediums available, both offline and online, keeping track of leads and trying to convert them into clients has become a mammoth task. Businesses need to find a way to successfully monitor, analyze and maximize their B2B lead generation efforts if they want to keep up with their competitors.
Demand Generation
Demand generation is the process of building awareness through a variety of media including social media marketing, email marketing, pay per click ads, viral marketing, search engine optimization, offline advertising and affiliate marketing. Combining the different methods in a planned marketing campaign offers the greatest possibility of attracting the maximum number of new prospects.
Email Marketing
Email marketing continues to be a key part of any marketing campaign. Whichever method is used to make initial contact with prospects, email marketing is used to follow-up with these prospects, maintaining their interest in a service or product and facilitating the conversion of leads into customers.
Marketing Automation
Getting a direct link between your demand generation efforts and the revenue generated can be complicated, especially when using so many different channels. The most efficient way to track marketing and ROI is with the use of marketing automation software, viewing at-a-glance which methods are most successful for B2B lead generation.
• Find out which lead sources are converting best
See where you are getting the best ROI so you can eliminate unsuccessful campaigns and focus on the revenue generating campaigns.
• Tracking trends
Monitoring trends can identify patterns in prospect behaviour: if they are most responsive on certain days or certain times for example.
• Automation of repetitive tasks
Repetitive tasks can be very time-consuming and it pays to automate them whenever possible.
• Track marketing across a range of media
Instead of using several different tools or programs to track your marketing efforts, it is much more effective to be able to see at-a-glance all of the different media you are using and compare the results.
• Automatic follow-up of sales leads
Sales leads often convert only after several follow-ups. By automating prospect follow-ups you avoid losing potential clients through lack of contact.
With so many marketing mediums available, both offline and online, keeping track of leads and trying to convert them into clients has become a mammoth task. Businesses need to find a way to successfully monitor, analyze and maximize their B2B lead generation efforts if they want to keep up with their competitors.
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If you require any more information or have any questions about our privacy policy, please feel free to contact us by email at treudina@gmail.com.
At http://sales-management-treu.blogspot.com/, the privacy of our visitors is of extreme importance to us. This privacy policy document outlines the types of personal information is received and collected by http://sales-management-treu.blogspot.com/ and how it is used.
Log Files
Like many other Web sites, http://sales-management-treu.blogspot.com/ makes use of log files. The information inside the log files includes internet protocol ( IP ) addresses, type of browser, Internet Service Provider ( ISP ), date/time stamp, referring/exit pages, and number of clicks to analyze trends, administer the site, track user’s movement around the site, and gather demographic information. IP addresses, and other such information are not linked to any information that is personally identifiable.
Cookies and Web Beacons
http://sales-management-treu.blogspot.com/ does use cookies to store information about visitors preferences, record user-specific information on which pages the user access or visit, customize Web page content based on visitors browser type or other information that the visitor sends via their browser.
DoubleClick DART Cookie
.:: Google, as a third party vendor, uses cookies to serve ads on http://sales-management-treu.blogspot.com/.
.:: Google's use of the DART cookie enables it to serve ads to users based on their visit to http://sales-management-treu.blogspot.com/ and other sites on the Internet.
.:: Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy at the following URL - http://www.google.com/privacy_ads.html
Some of our advertising partners may use cookies and web beacons on our site. Our advertising partners include ....
Google Adsense
These third-party ad servers or ad networks use technology to the advertisements and links that appear on http://sales-management-treu.blogspot.com/ send directly to your browsers. They automatically receive your IP address when this occurs. Other technologies ( such as cookies, JavaScript, or Web Beacons ) may also be used by the third-party ad networks to measure the effectiveness of their advertisements and / or to personalize the advertising content that you see.
http://sales-management-treu.blogspot.com/ has no access to or control over these cookies that are used by third-party advertisers.
You should consult the respective privacy policies of these third-party ad servers for more detailed information on their practices as well as for instructions about how to opt-out of certain practices. http://sales-management-treu.blogspot.com/'s privacy policy does not apply to, and we cannot control the activities of, such other advertisers or web sites.
If you wish to disable cookies, you may do so through your individual browser options. More detailed information about cookie management with specific web browsers can be found at the browsers' respective websites.
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