The Spigot Approach
Transcript of The Spigot Approach
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The Spigot ApproachThe End of the Sales Funnel
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ValuationCo
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ValuationCo
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“The ’90s called and want their sales system back!”
Paradigm Shift: A dramatic change in methodology or practice.
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Paradigm Shift
• From “managed” messages designed to persuade
• To “authentic” messages designed to narrate
• Owned vs. Earned• Internal process to
customer process
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Trends
1. 10,000 per day 2. Social Media3. On Demand4. Virtual Crowds5. Apps6. The Sales Paradigm Shifted• Sales Cycles• Consultative Sales• BMW Driving sales force
(Millennials)
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Sales Cycle Example
1. Suspect2. Prospect3. Presentation4. Needs Analysis5. Quote6. Follow Up7. Contracts8. Closing
Two Unforgivable Problems:
1. Not your customers process for buying.
2. Post Sales?
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Consumer Decision Journey
1. Consider
2. Evaluate
3. Buy
4. Research 5. Enjoy
6. Advocate
7. Bond
Customer Reviews
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Current Approach
Marketing
Customer Service
Sales
Interruptive Sales
Approach
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The Spigot ApproachMarketing Business
Development
SalesCustomer
Service
Database with Entry
Value
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New Sales Role
• Automate, Automate, Automate• Take inbound leads• Plug into Consumer Decision Journey
– No prospecting, presentation, or closing skills needed
• Manage closing ratios• Better sales operations (paperless)• Company owns the client• Easier compliance• Easy to Recruit• Less commission
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Commissions
Current Approach Spigot Approach
Sales/week 2 20
Avg Commission $1,000 $500
Commission % 50% 25%
Annual Comp $50,000 $125,000
Firm Comp $50,000 $375,000
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New Marketing Role
• Manage CDJ, including post sales (Research, Enjoy, Advocate, Bond)
• Monetize the Customer Database
• Marketing Calendars• Less about “Creative
Design and Copy”• More about data
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New Customer Service Role
• More than change of address and coverage questions
• Helps customers enjoy the product and become advocates
• Not a good target for outsourcing
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Business Development
• Strategic Partners• Negotiate CDJ Presence– Consider and Evaluate – Post Sales Presence
• Lead Generation– Large volumes – Predictable volumes– High quality
• Intuitive Talent Position
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A Few of My Partners
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Carrier Checklist
Who is the real competitor?Document your customer CDJHire BD ManagersLook for people in your
organization who have an aptitude for partnerships.
Define a good “Partnership” Pursue New economy partnersPursue Old economy partnersRe-evaluate Channel Sales
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Carriers Checklist
Update websites with information to focus on each step of the CDJ
Establish Internet presence where consumers Consider and Evaluate
Establish strategy for post sales: The Research, Enjoy, Advocate, Bond phases
Shorten and simplify the application process
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GCI Case Study
• National Health Insurance Broker
• 1,800 agents nationally• Negotiated over 20 large
Strategic Partnerships• Data showed losing 90% of the
leads• Started inbound call center w/
20 agents across three shifts• Closed sales doubled
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Google Compare Case Study
• Wants to expand into financial services
• Millions of leads/mo• No carrier has a “BD”
manager• Deal goes to a small
private broker
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Com
petiti
ve A
dvan
tage
Time
Market CapMarketing
SalesCustomer
Service
Database with Entry
Value
BD
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