Sales and Marketing in the Information Age

Creating Value for BuyersThe Changing Face of IT Sales

Peter Lawless

What Constitutes a Successful Company?

Producing an excellent product or service.

Selling and Supporting what they produce.

The 5 Key Success Factors

Increasing LeadsConverting Leads to SalesLifetime Customer Value (Annualised)Operating Costs (Margin)Reinvesting Profit to foster Innovation

Lead Generation (Prospecting)

Commonly known as MarketingA lead can be defined as follows:

A person or company that has expressed an interest in you or your product

This could be either as a result of:You contacting them - outboundOr them contacting you - inbound

Converting Leads to Sales

What problem or desire does the product address?

What does addressing that issue enable the purchaser to do?

Can the buyer assign a value to that new capability?

When ideally do they need this by? What is the cost of doing nothing?

Increasing Lifetime Value

Excellent Service & SupportCRM processes

Customer Relationship ManagementMultiple transactions – Cross SellSimilar experience across ChannelsEasy for customers to buy

Brand Recognition & ValueCustomer Loyalty

Increasing Margin (reduce costs)

Margin = Selling Price – Cost

2 ways to increase MarginIncrease Selling PriceReduce Cost of Production and Sales

Costs consist of two variablesFixed – constant regardless of production volumeVariable - relating to volume and sales

Protect Profit and Increase Wealth

FinancialMaintain cash flow at optimum cost Reinvest Profits – Strategic Planning

R&D – Innovation and diversificationIncrease production and sales capacity

LegalProtect Intellectual PropertyMitigate against contrary Conditions

HRPeople are your most vital asset

Success Factors in Practice Qualified Marketing

Leads received by Sales

Leads 100

Conversions

Lifetime Value

Margin

Profit

Wealth

Success Factors in Practice The Percentage of

leads that turn into sales

Leads 100

Conversions 20%

Lifetime Value

Margin

Profit

Wealth

Success Factors in Practice The Average

amount a customer will spend as long as they remain a customer

Leads 100

Conversions 20%

Lifetime Value €1,000

Margin

Profit

Wealth

Success Factors in Practice Sales less

expenses expressed as a percentage

Leads 100

Conversions 20%

Lifetime Value €1,000

Margin 50%

Profit

Wealth

Success Factors in Practice

Leads 100

Conversions 20%

Lifetime Value €1,000

Margin 50%

Profit €10,000

Wealth

Profit is arrived at as follows:

Leads*

Conversions*Lifetime Value*Margin

Success Factors in Practice

Leads 100

Conversions 20%

Lifetime Value €1,000

Margin 50%

Profit €10,000

Wealth €10,000

Wealth is defined as what the business owner takes before tax

Influencing the Success Factors

A 10% increase in any one factor would yield

€1,000 more profit

Do Companies Capitalise on this?

Which factors Should You influence?

Influencing the Wealth Factors

New Business can implement strategic plans for continuous monitoring and improvement of all 5 wealth factors

Existing business should choose at least 2 to start with and work up to having a plan for all 5

Key challenges are to change existing culturesIncreasing sales alone is not always the answer – especially if each sale loses money!

10% Across all 5 key success Factors Yields 61% Growth

Increase Now

Leads 100 10% 110

Conversions 20% 10% 22%

Lifetime Value €1,000 10% €1,100

Margin 50% 10% 55%

Profit €10,000 10% €14,640

Wealth €10,000 10% €16,110

We will now focus on just 2?

Marketing - Providing a constant flow of quality leads.

Sales – Converting the leads into customers, in the shortest time, with a maximum lifetime value.

Lead Generation - ADSPORT

Lead Generation'sSecret Seven(ADSPORT)

Advertising

Direct Mail

Speaking

Publishing

Online

Referral

Telephone

Tactic 1 - Advertising

Classic AdvertisingPrint, TV, and Radio

New WaveGoogle, Viral, Banner

InnovativeLuas Tickets, Space Shuttle, Taxi

All Advertising MUST have a “Call-to-Action”

Tactic 2 – Direct Marketing

Hard CopyLetter, Flyers, Postcards, Newsletters

ElectroniceZines, Fax, Text, Newsreader

InnovativeCreative way of delivering targeted message to decision maker

Tactic 3 – Speaking

Company Run SeminarsAudio Tapes/CDsTrainingMedia Interviews (TV, radio)Guest SpeakerExcellent 1 to Many medium

Tactic 4 – Publishing

Media Interviews in PrintWeb ArticlesPress ReleasesWhite PaperseBooksBooks

“let me introduce you to the guy who wrote the book”!

Tactic 5 – Online

Web PresenceMarketing and Sales ToolWhat should it achieve?

Sign up for newsletterAvail of ConsultationBuy ProductInform your prospects

Can it be seenSEO, Page ranking, Blogs, etc

Tactic 6 – Referrals

The Ultimate Lead Generation Tool

Different from “Word of Mouth”

Have a StrategyAlways askMake it easyReward Referrers

Tactic 7 – Telephone

OutboundCold calling (never)Telemarketing agency

InboundScriptsInteractive Call to ActionDon’t Sell – set appointment

We will now focus on just 2?

Marketing - Providing a constant flow of quality leads.

Sales – Converting the leads into customers, in the shortest time, with a maximum lifetime value.

Converting Leads to Sales

Identifying – 10%

Valuing – 25%Qualifying – 50%Negotiating – 75%

Implementing / Supporting

Lead Generation

A good sales process ensures best sales practices get repeated

Converting Leads to Sales

What problem or desire does the product address?

What does addressing that issue enable the purchaser to do?

Can the buyer assign a value to that new capability?

When ideally do they need this by? What is the cost of doing nothing?

Definition of the 3Rs

Solution Payback is expressed in terms of at least one of the following:

Revenue Growth

Reduction in costs

Regulatory Requirements

Sales Cycle 1 – Identifying – 10%

Solution payback mapped to 3Rs

Champion Identified

Timeline to Purchase agreed

Sales Cycle 2 – Valuing – 25%

Champion Visualizes 3R payback

Agreement to meet Decision Maker/s

3R Stakeholders Identified

Sales Cycle 3 – Qualifying – 50%

Decision maker confirms 3R payback

Evaluation criteria and plan agreed

Method of Finance agreed

Sales Cycle 4 – Negotiating – 75%

Evaluation criteria met or exceeded

Verbal agreement from DM

Contracts with Legal and Purchasing

Converting Leads to Sales

Manual Pipeline analysis Enter appropriate number (1,2,3,4) when action done for each customer© 3R Consulting Ltd 1 1 1 2 2 2 3 3 3 4 4 4 5

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Sample 1 buying xyz product €100,000 50% €50,000 30/06/2004 yes 1 1 1 2 2 2 3 3 3 4Sample 2 blah €20,000 25% €5,000 30/06/2004 yes 1 1 1 2 2 2 3 3Sample 3 blah €12,000 10% €1,200 30/06/2004 yes 1 1 1 2 2Sample 4 blah €25,000 75% €18,750 30/06/2004 yes 1 1 1 2 2 2 3 3 3 4 4 4Sample 5 blah €120,000 0% €0 30/06/2004 yes 1 1Sample 6 blah €12,000 10% €1,200 30/06/2004 yes 1 1 1 2Sample 7 blah €111,000 50% €55,500 30/06/2004 yes 1 1 1 2 2 2 3 3 3 4 4

0% €00% €00% €00% €00% €00% €00% €00% €00% €00% €00% €00% €00% €00% €00% €0

Totals €400,000 €131,650

3R Definition:

Solution Payback Could be expressed in terms of:

Revenue Growth

Reduction in costs

Regulatory Requirements

Thank you for Participating

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