Sales and Marketing in the Information Age Creating Value for Buyers The Changing Face of IT Sales Peter Lawless

What Constitutes a Successful Company? Producing an excellent product or service. Selling and Supporting what they produce.

Producing an excellent product or service.

Selling and Supporting what they produce.

The 5 Key Success Factors Increasing Leads Converting Leads to Sales Lifetime Customer Value (Annualised) Operating Costs (Margin) Reinvesting Profit to foster Innovation

Increasing Leads

Converting Leads to Sales

Lifetime Customer Value (Annualised)

Operating Costs (Margin)

Reinvesting Profit to foster Innovation

Lead Generation (Prospecting) Commonly known as Marketing A 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 - outbound Or them contacting you - inbound

Commonly known as Marketing

A 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 - outbound

Or 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?

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 & Support CRM processes Customer Relationship Management Multiple transactions – Cross Sell Similar experience across Channels Easy for customers to buy Brand Recognition & Value Customer Loyalty

Excellent Service & Support

CRM processes

Customer Relationship Management

Multiple transactions – Cross Sell

Similar experience across Channels

Easy for customers to buy

Brand Recognition & Value

Customer Loyalty

Increasing Margin (reduce costs) Margin = Selling Price – Cost 2 ways to increase Margin Increase Selling Price Reduce Cost of Production and Sales Costs consist of two variables Fixed – constant regardless of production volume Variable - relating to volume and sales

Margin = Selling Price – Cost

2 ways to increase Margin

Increase Selling Price

Reduce Cost of Production and Sales

Costs consist of two variables

Fixed – constant regardless of production volume

Variable - relating to volume and sales

Protect Profit and Increase Wealth Financial Maintain cash flow at optimum cost Reinvest Profits – Strategic Planning R&D – Innovation and diversification Increase production and sales capacity Legal Protect Intellectual Property Mitigate against contrary Conditions HR People are your most vital asset

Financial

Maintain cash flow at optimum cost

Reinvest Profits – Strategic Planning

R&D – Innovation and diversification

Increase production and sales capacity

Legal

Protect Intellectual Property

Mitigate against contrary Conditions

HR

People are your most vital asset

Success Factors in Practice Qualified Marketing Leads received by Sales Wealth Profit Margin Lifetime Value Conversions 100 Leads

Qualified Marketing Leads received by Sales

Success Factors in Practice The Percentage of leads that turn into sales Wealth Profit Margin Lifetime Value 20% Conversions 100 Leads

The Percentage of leads that turn into sales

Success Factors in Practice The Average amount a customer will spend as long as they remain a customer Wealth Profit Margin € 1,000 Lifetime Value 20% Conversions 100 Leads

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

Success Factors in Practice Sales less expenses expressed as a percentage Wealth Profit 50% Margin € 1,000 Lifetime Value 20% Conversions 100 Leads

Sales less expenses expressed as a percentage

Success Factors in Practice Profit is arrived at as follows: Leads * Conversions * Lifetime Value * Margin Wealth € 10,000 Profit 50% Margin € 1,000 Lifetime Value 20% Conversions 100 Leads

Profit is arrived at as follows:

Leads

*

Conversions

*

Lifetime Value

*

Margin

Success Factors in Practice Wealth is defined as what the business owner takes before tax € 10,000 Wealth € 10,000 Profit 50% Margin € 1,000 Lifetime Value 20% Conversions 100 Leads

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?

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 cultures Increasing sales alone is not always the answer – especially if each sale loses money!

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 cultures

Increasing sales alone is not always the answer – especially if each sale loses money!

10% Across all 5 key success Factors Yields 61% Growth Now Increase € 16,110 € 14,640 55% € 1,100 22% 110 10% 10% 10% 10% 10% 10% € 10,000 Wealth € 10,000 Profit 50% Margin € 1,000 Lifetime Value 20% Conversions 100 Leads

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.

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's Secret Seven (ADSPORT) Advertising Direct Mail Speaking Publishing Online Referral Telephone

Tactic 1 - Advertising Classic Advertising Print, TV, and Radio New Wave Google, Viral, Banner Innovative Luas Tickets, Space Shuttle, Taxi All Advertising MUST have a “Call-to-Action”

Classic Advertising

Print, TV, and Radio

New Wave

Google, Viral, Banner

Innovative

Luas Tickets, Space Shuttle, Taxi

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

Tactic 2 – Direct Marketing Hard Copy Letter, Flyers, Postcards, Newsletters Electronic eZines, Fax, Text, Newsreader Innovative Creative way of delivering targeted message to decision maker

Hard Copy

Letter, Flyers, Postcards, Newsletters

Electronic

eZines, Fax, Text, Newsreader

Innovative

Creative way of delivering targeted message to decision maker

Tactic 3 – Speaking Company Run Seminars Audio Tapes/CDs Training Media Interviews (TV, radio) Guest Speaker Excellent 1 to Many medium

Company Run Seminars

Audio Tapes/CDs

Training

Media Interviews (TV, radio)

Guest Speaker

Excellent 1 to Many medium

Tactic 4 – Publishing Media Interviews in Print Web Articles Press Releases White Papers eBooks Books “ let me introduce you to the guy who wrote the book”!

Media Interviews in Print

Web Articles

Press Releases

White Papers

eBooks

Books

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

Tactic 5 – Online Web Presence Marketing and Sales Tool What should it achieve? Sign up for newsletter Avail of Consultation Buy Product Inform your prospects Can it be seen SEO, Page ranking, Blogs, etc

Web Presence

Marketing and Sales Tool

What should it achieve?

Sign up for newsletter

Avail of Consultation

Buy Product

Inform your prospects

Can it be seen

SEO, Page ranking, Blogs, etc

Tactic 6 – Referrals The Ultimate Lead Generation Tool Different from “Word of Mouth” Have a Strategy Always ask Make it easy Reward Referrers

The Ultimate Lead Generation Tool

Different from “Word of Mouth”

Have a Strategy

Always ask

Make it easy

Reward Referrers

Tactic 7 – Telephone Outbound Cold calling (never) Telemarketing agency Inbound Scripts Interactive Call to Action Don’t Sell – set appointment

Outbound

Cold calling (never)

Telemarketing agency

Inbound

Scripts

Interactive Call to Action

Don’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.

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 Prospects Customers 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?

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: R evenue Growth R eduction in costs R egulatory Requirements

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

R evenue Growth

R eduction in costs

R egulatory Requirements

Sales Cycle 1 – Identifying – 10% Solution payback mapped to 3Rs Champion Identified Timeline to Purchase agreed

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

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

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

Evaluation criteria met or exceeded

Verbal agreement from DM

Contracts with Legal and Purchasing

Converting Leads to Sales

Thank you for Participating Your Business Growth Specialists Increasing Your Sales Delivering More leads Coaching Leaders for Success Motivating teams and groups www.3r.ie

Your Business Growth Specialists

Increasing Your Sales

Delivering More leads

Coaching Leaders for Success

Motivating teams and groups