With How Many Of Your Customer’s Employees Are You Interacting?

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Mar 062016
 

It is often noted that successful salespersons interact with the right employees of their prospects/customers.

What is less often discussed is with how many of these folk a salesperson should interact. The question is more and more relevant because decision-making is increasingly and more and more diffused.

IDC’s 2010-2012 survey has something to say about this question.

In a survey of IT buyers (see figure 8) customers/buyers report the following statistics when asked “How many people were on your buying team including yourself — that is, the group actively involved in influencing the short list of vendors considered and making the purchase decision?”:

  • Companies with 100-499 employees: 3 to 4 people
  • Companies with 500-999 employees: 4 to 6 people
  • Companies with over 1,000 employees: 5 to 7 people

multiple lanes

Noteworthy is that in two out of three scenarios the number of employees involved in making a decision is increasing.

What a salesperson needs to know is that buying is a collaborative effort. As such, not only a wider view of the process is needed the typical marketing funnel and CRM single-person view of leads is lacking in a broader view of how customers buy unless used by sales as a single strand in a larger weave.

sales funnel

*Things That Need To Go Away: Marketing and sales efforts, which focus on persons, contacts and a decision-maker and are not holistically geared at accounts i.e. multiple persons.

 

Differentiation In An Undifferentiated Environment

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Jan 112016
 

Several years ago I wrote about Not Competing On Price. Sales organizations are in an unenviable state of affairs where competition is more fierce than ever, pressure on sales margins is unrelenting and, due to both information overload and borderline fantasy marketing by sellers, customers are either blind to what sets you apart or, more likely, do not want to pick up enough cues, which would set you apart from the competition.

I say “more likely” because customers are in fact more informed than ever. Partly as a result, Gartner believes that buyers see their interaction with sales as their least valuable part of their buying process.

How should organizations and sales departments respond? Put another way, the question is, how do organizations and sales departments differentiate themselves enough to hold a competitive edge? The answer should be simple. Have a better product and convey the strength to customers already suffering from cognitive dissonance. Easier said than done of course. Where it exists sales must know it and articulate it. Among other things a sales process must become

  • Better aligned to the contemporary buying process, which means not being strict about the pipeline and funnel milestones as defined in your CRM
  • Offer more domain knowledge,
  • A much better understanding of vertical KBRs is a must because you would want to align it to the customer’s purchase
  • Moreover, support and maintenance are tangible factors that remain dissimilar across companies.

Notice that, given our dilemma, these are still non-product differentiators. To keep our feet firmly planted in reality we are not going to see sales managers measuring their salespersons differently. Why? Wall Street, Bay Street, whatever quarterly measuring street.

Where a competitive edge does not exist the price pressure is even more acute.

What to do when a customer sees you as a commodity? What to do when a customer sees you as one of many? The answer is ‘disruption.’ A seller has to disrupt current customer thinking through one or more of the below:

  • Know yourself. If you cannot educate your customer to your differences then you are at a disadvantage. Do you have superior communication and articulation? Either way, you must get better. Do you have valid reasons, experience and stories? If so, maximize their utility. Importantly, be careful assuming that your customer’s knowledge of you is perfect. What they may know may not match what you know. Check and compare.
  • Know your competition. Educate your customer on the competition. Do you know their limitations? Do you know how they are processing their sales strategy?
  • Know your customer. This includes their hot buttons, preferred relationship parameters and interaction style preferences and big picture. The last item implies that the seller could go beyond the point solution and make truly constructive suggestions to customers. The triangulation of engineering, marketing and sales becomes more important than ever. Is this wishful thinking? Quite possibly. Selling organizations are as resource and time challenged as buyers. However, the extra effort and fastidiousness is worth it.

All products being roughly equal, or being perceived as such, something has to give. It will either be the price or your non-product differentiators.

*Things That Need To Go Away: companies and sellers who cannot articulate why they have a raison d’etre.

identical

How To Obtain Your First Customer

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Dec 102015
 

In the past I have often written about selling to customers and how to obtain new customers. It is a complex chain of interrelated actions and reactions, which even experienced salespersons and successful companies could benefit from reviewing often.

number one

What about obtaining your first client however? What is the approach and system to gain a first customer and to launch your company or product?

Consider these strategies:

  • Start small. Even the most successfully adopted product in human history Facebook started small and in a targeted fashion. The company did not launch as a forum for the world. It initially launched for Harvard University students in the USA, before becoming available to regional universities and going on to being a student-only site before opening itself up. Not only it had gained a core group of users in the process, but had also given itself the opportunity to develop itself. So, when I say start ‘small’ I mean ‘small and targeted.’

 

  • Implicit in the above is the need for identification of the ideal customer. What exactly is the target market? Without it the search is endless and unfocused. Finding the right customer is infinitely more difficult in the universe than it is on your own planet.

 

  • Give yourself away. To quote one Jeffrey Gitomer “give first and give freely.” The idea here and this case is more specific, namely every company needs a customer to be its proving ground, reference or bright spot and so the first ‘sale’ could often be given away. The give-away establishes the product and grabs itself a foothold. Moreover, a paying customer does not want to be the first buyer. Your non-paying or heavily discounted customer is your testimonial and reference.

 

  • I dislike this word, but there I will use it: ‘synergy.’ Where is your product or service complementary and adds in a small or large way to another? Join forces and form a more complete offer.

 

  • Once the above are done become aggressive with your Search Engine Optimization. It is critical that you be found and, as is often cited and you know by experience, most people do not go deep into any site’s search results. Know your industry’s keywords and leverage them on your website and back links. Do the same on the social media you utilize.

With the first customer under your belt it is worth remembering that it is always easier to sell more to an existing customer than to find a new one so do not compromise on customer service.

*Things That Need To Go Away: customers who rightfully feel they are guinea pigs.

start

The Inevitable Success Of Advertising

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Jan 062014
 

The title is an exaggeration, but the effectiveness of advertising is not hyperbole.

Why advertising works is a good discussion. We know the message is biased, partial, not challenged and conveyed and narrated by self-interested parties, but the medium is successful.

The tragedy of the below is not a laughing matter, but it is nonetheless instructive to go back and look at past marketing conveyed through advertising. I want my readers to take a moment to filter the below $182 (US) billion discrepancy through the inner ethical lens.

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AIG, the largest underwriter of insurance in the United States Of America, underwent severe turbulence in the recent 2008-2009 financial meltdown. It was only saved through governmental intervention.

Print advertisement from the ’90s: “financial strength,” “strongest insurance,” “AIG’s strength’s and stability,”… $17 billion in….  adjustment reserves,” “highest ratings,” et cetra.

Reality ten years later: according to Propublica journalism project, “On four separate occasions, the government offered aid to AIG to keep it from collapsing, rising from an initial $85 billion credit line from the Federal Reserve to a possible commitment of about $182 billion between the Treasury ($69.84 billion) and Fed ($112.5 billion).” These numbers help the company remain solvent, while nationalizing it.

Things That Need To Go Away: people believing advertisements, advertisers pitching make-believe and other illusions and delusions masquerading as fact.

 

(Channel) Trends For 2014

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Dec 302013
 

Miller Heiman has a short article on Channel Trends for 2014.

For someone who is on both sides of the aisle – direct sales and channel management – the article seems correct yet overly simplified.

The trends, according to the article, are:

  • Channel sales will continue to increase
  • New types of channels will emerge
  • The wall between direct and channel sales will continue to crumble

The tendency to foster and nurture an indirect sales route is congruent with the nature of the modern market. The world is tilting towards selling many with less margin. It is a volume play. Yes, exceptions always apply. One example is Tesla, which is selling cars directly. The company has been subject of lawsuits from car dealers trying to stop its direct sales route.

http://www.thecarconnection.com/news/1087492_gm-follows-teslas-lead-plans-to-sell-directly-to-online-shoppers

The article’s title is a misnomer however. While the tendency is there the trend does not belong to 2014. It has been ongoing for a good many years.

Additionally, the case for Cloud – which is addressed – is not as clear-cut given the costs, direct (i.e. margins, recruitment, education and marketing) and indirect (resolving conflicts, manpower and expertise), any company would incur.

The old ‘capital expense versus operations expense’ argument also applies. Cloud is less expensive to start, but from a purely dollar figure perspective it soon adds up to more. A better argument is made with factors such as upfront costs, management and ancillary expenses.

Here it is: http://www.millerheiman.com/blog/Miller-Heiman-Blog/September-2013/Channel-Trends-to-Watch-for-in-2014/

 

Untitled

Competition

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Dec 292012
 

Who Is My Biggest Competitor?

In sales one typically thinks of his competitors as the other companies in the same industry.

  • Belvedere sales staff likely fret over Johnson & Johnson’s shelf space
  • Dell marketing targets HP
  • Burger King is upset about Wendy’s taking over the number 2 spot.
  • Mazda likely issues internal collateral on how its people handle Toyota customers
  • Etc.

Based on experience, however, would you agree that other companies producing goods or services in the same vertical should every time be relegated to the number 3 spot every time? Consider that. There is that much slack in market for sales and prospects. If only one could convert those into sales, but if one’s direct competitors should be third on the list who or what occupies positions one and two?

One’s biggest competitor is always ‘doing nothing.’ This ‘do nothing’ is where a value or cost-benefit is not identified and companies choose to maintain status quo. Inattention to you has cost you a sale.

The second biggest competitor is likely something outside one’s industry. Any entity has limited resources, which it needs allocated and assigned according to actual or perceived priority. Perhaps your prospect has declined to move forward with the snow removal machines you were pitching in favour of upgrading the in-house cafeteria (or the endless permutations of that scenario)?

Also somewhere in there is commoditization. In our contemporary society there are so many on-going things and change happening at such speeds that not only customers are tired of you and your offering, but also your industry has become pedestrian. There simply is that much competition out there.

Consider the revised competitor line-up in your next sales and marketing effort.

*Things That Need To Go Away: A broader sense of the competition for your prospect’s dollars. 

Content Marketing

 Marketing, Uncategorized  Add Comments »
Nov 282012
 

Video has fast become a must-have for content marketers. With the advent of high-speed Internet and the ready availability of tools marketers have gradually, but surely, taken to increasing the video volume of their content marketing.

Evidence of that is everywhere. Video marketing, video blogs, video brochures and video channels are not novel any longer. Video, alongside or as part of Social Media engagement, is prevalent. The increase in Internet speeds around the globe has accelerated the trend not only from the supply side, but also from the demand side… but is that statement factual? Do more ‘audience’ members watch marketing-related videos? Is this something that the audiences demands or engages in? Yes, but consider that most of the world is on smaller mobile screens.

I was prompted to think about the subject not only because of the increase in video content, but also by a recent and credible article on SEO (Search Engine Optimization) which noted that Google ranks websites with video higher than those without. Incidentally, thank goodness this website has embedded YouTube videos. Should I add more?

Still, my question is whether the audiences is engaged with and interested in video Content Marketing? It certainly is more descriptive and obviously more visual, but it also requires a large investment of time if, that is a big if, focus and attention are given. Moreover, just like text, there is no shortage of media to disseminate the videos whose storage has become cheap.

 

 

 

 

When You Tell Your Story Do You Tell A Story?

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Nov 202012
 

It does not lend itself to a quick and efficient exchange, it requires thinking, preparation or imagination and is at odds with ‘soldier mentality’ and the speed of modern business.

Yet, storytelling is one of the most effective and enduring techniques to sell and market a product, service or idea.

Whether selling or marketing incorporating a story will have a sublime effect on the sales and marketing effort. People love hearing stories and often retain it better than an unthreaded pitch.

Leveraging storytelling as a technique is a good idea to start. It has a soft feeling that likely rekindles memories of one’s childhood and comfort or speaks to the narrative mind of mankind.

Nonetheless, storytelling does not exempt one from rules of sales and marketing.

  • Does the story invoke feelings and the warmness that is half the point of the technique?
  • Does the story allow for the recipient’s imagination and cognitive abilities to work and fill in the blanks? Are there numbers and facts included?
  • Like any sales pitch or marketing methodology the story cannot be perceived a false and bereft of logic.
  • Does it relate to the listener?
  • Does the story have a call to action?

 

Channel Reseller Support And Maintenance

 Articles, Marketing, Selling, Uncategorized  2 Comments »
Nov 132012
 

It is difficult to render a sweeping verdict on whether an indirect sales model is better or more beneficial or direct sales to end-users are optimal. Both models have been successful. A company like HP (Hewlett Packard) prospered selling through an indirect channel. A competing company, in the same industry, Dell prospered selling its hardware directly to end-users. However, Dell is a good example to cite given how it has since turned over a quarter of its sales to the ‘channel.’

Each model is valid and appropriate under different circumstances including product type, line maturity and revenue size. The channel model, however, is typically applicable for companies without dedicated resources or wishing to scale beyond certain revenue ceilings. Channel partners bring connections and a strength in numbers, but need maintenance and attention.

Pay attention to activities under each heading:

1- Recruit partners which address product needs technically and coverage needs geographically.

2- Retain them by maintaining mindshare, providing education, support and offering profitable resell margins.

3- Optimize co-selling possibilities. Stock the partner area or portal of your website with marketing collateral, FAQs, selling scenarios and deal registration space. Provide leads, while ramping up partner lead generation capability and independence.

4- Hold partners responsible for utilization, registration and monitor lead flows bi-directionally.

5- Maintain open communications and learn simultaneous to teaching.  Hold each other accountable.

 

Continuous feedback and collaboration is essential. Do not be afraid to cut ties once the relationship is stale and unprofitable.

This is the ultimate measurement of whether the channel is beneficial or perfunctory.

 

 

Line Of Business – What Is On The Mind Of ‘C-level’ or ‘V-level’ Customers And Prospects

 Articles, Marketing, Prospecting, Selling, Selling More, Uncategorized  Add Comments »
Jun 072012
 

What does your prospect think about? It depends on the customer’s role. Salespeople who target that position’s specific thoughts and concerns will be more successful. This is called role-based selling. For the purpose of this article I am skipping two crucial discussions. First, Assistants need to be marketed to as well. A salesperson must believe he or she deserves the executive’s time. After all, you are not wasting time, are you? Two, the approach to C-level and V-level roles needs to be personalized and stand out. More on those elsewhere as well as in future discussions. In the meantime, align your sales to the position’s objectives, while ensuring you are speaking correctly to the right ‘C’ (‘Chief’ title) or ‘V’ (‘Vice”-President title).

Peruse the below, but ultimately they need to tell you how to sell to them by telling you about their needs. This is why questions are important. This is why preparation in advance according to the below is important.

President or CEO

What? Grow and lead the company

Reports to: Board Of Directors/Shareholders

Pains and Concerns:

  • Grow revenue
  • More profitability/declining profitability
  • Shareholder value
  • Managing risk
  • Happier and more productive employees
  • Culture of organization
  • Partnerships
  • Company reputation and
  • Determining strategy and direction

Financial Managers (VP Of Finance, CFO, Controller, Treasurer)

What? Financial management

Reports to: CEO and Finance Committee of the Board Of Directors

Pains and Concerns:

  • Knowing and measuring financial drivers,
  • Profitability, Quarterly goals
  • Information and reports to manage events and conditions,
  • Reducing costs,
  • Predicting and eliminating risks
  • Return on investments and return on assets
  • Compliance and regulatory changes
  • Accounts reconciliation and forecasting (treasurer)
  • Business value (controller)
  • Shortening transaction times,
  • Line of business accountability
  • Closing books faster or consistently having them ‘closed,’
  • Ensuring consistency among territories, divisions and currencies,
  • Drive operational efficiencies,
  • Better, more consistent and more centralized reporting
  • Make better decisions faster and
  • Analyze and predict.

Human Resources Managers (VP Of Human Resources)

What? Manage the business’ people. A business’ most valuable asset is its people. Everything the company does or wishes to achieve is tied to its people’s skills and abilities.

Reports to: CEO or COO

Pains and Concerns:

  • Business and society, and employees, constantly change.
  • Doing more with the same or less,
  • Improving productivity,
  • Delivering and tracking education that is related to work,
  • Budgeting for, finding, hiring and calculating the cost and return on employees,
  • Complying with legal imperatives
  • Enabling employee self-service for faster and more efficient control and removing bottlenecks and
  • Local currency and regulations.

Manufacturing Management (VP Of Manufacturing, Chief Operating Officer)

What? Producing timely goods at the lowest cost

Reports to: CEO

Concerns:

  • Manufacturing on demand with the shortest possible lead time,
  • Manufacturing to order,
  • Forecasting demand,
  • Customizing and configuring to order,
  • Collaborate and communicate with supply chain including suppliers, sub-contractors and distributors including view into demand and inventory via EDI or the web,
  • Track costs,
  • R&D
  • Operational justification to understand where cutting cost won’t impact operations
  • Analyze efficiencies,
  • Predict inventory cycle and
  • Eliminate waste.

Sales and Marketing (VP Of Sales, VP Of Marketing, CMO)

What? Increasing sales, improving top and bottom-line and tracking to forecast

Reports to: CEO

Concerns:

  • Knowing the customers,
  • Sales growth,
  • Customer satisfaction/customer turnover
  • Pricing
  • Margin growth and maintenance,
  • Forecast accuracy and visibility,
  • Company profitability,
  • Monitoring sales channels and trend analysis,
  • New customer acquisition and cost of doing so
  • Company image
  • Productivity of sales and marketing staff,
  • Effectiveness of marketing programs and motions,
  • Positioning products, services or people
  • Efficiency of different types of marketing (such as promotions, web, channels, viral, etc.),
  • Campaign budgets and ROI (Return On Investment),
  • Anticipating trends and consumption,
  • Lead management and visibility into each representative’s achievements and pipeline.
  • See http://www.alighaemi.com/wp/?p=846 for different types of marketing.

Information Technology (VP of IT, CTO, CIO)

What? Lead the company’s information technology

Reports to: CEO or COO

Pains and Concerns:

  • Running the company’s information technology
  • Which hardware, software and service
  • Enabling productivity
  • Interoperability among internal and external customers
  • Flexible systems that can scale up or down with the business
  • Saving the company money
  • Eliminating disparate systems

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