Brian Bachofner of InsideView illustrates how the customer is changing and how buying patterns are changing. He emphasizes the importance of understanding and adapting to those changes to remain relevant in the business world.
… and it all stems from the evolution in how buyers think and act now. Quite differently than 5 years ago.#1 Buyers carry shields, to deflect unsolicited inbound calls and emails! Bigger ones than they used to. It’s because they are much more proactive than they were 5 years ago. Leading the charge in defining their problems and scoping their requirements. Often 60% - 80% through their buying cycle before wanting to talk to vendors. And they pick which ones to call.#2 With this proactivity, they are growing very impatient with traditional relationships selling or solution selling. They don’t want to slow down to help the sellers catch up. Why would they? The one thing that DOES lower their shields is when they hear unique insights about their business, help them reframe their problem and consider other solution ideas.#3 Buyers need the support of their troops. It pretty surprising, given their proactivity and leadership in defining the solution. Buyers are actually significantly more risk averse and they are not willing to sign major deals without consensus among the key users and influencers.TRANSITION: Go straight to next slide.
2. The Biggest DRIVER of Customer Churn is Organizational Change! The top 5 drivers of customer churn are [read them off…]The biggest driver is People Changes – the most important being a change in your sponsor in the organization. Also critical is the arrival of new senior management (CEO, CMO, CF), who bring new ideas and new vendor relationships.[The SOURCE of this data is Mikael Blaisdell, the leading authority on Customer Success Management and Editor of “The HotLine Magazine”.]
In order to solve the three problems I just covered, your sales reps need to do Insight-quality research…And that’s a Big Problem: Insight-based research is NOT easy. [Build slide][Click] First it’s OverwhelmingIn the last 10 years, web traffic has grown 30,000 Percent commensurate with the growth of content on the web.And the biggest change in the last 5 years is the growth of user generated content and social media, rich with insights on people and companies (there is pressure now for executives to “have a point of view” and share it actively on Twitter and their own blogs).[Click] Secondly, it’s Time Consuming!Assuming each sales rep has 50 targets. It takes a minimum of 55 minutes to do Insight-level research on each account. And this only gets you HALF the insight value of an sales intelligence system gets you. That’s 45 hours of research. Just to get going. [This includes in order of time Company Website, LinkedIn, Relevant Trade Journal, Google News, Company 10K, Quarterly Call Report…]Then to keep current on it, it’s another 8 hours of update research – every week? Twice a week?90000
Results of Research• The biggest challenges sales people have is…– Getting in the door– Building support within the organization– Closing the deal• Biggest emotional driver in sales is Winning• Customer see us in the Vendor category• Differentiators are Insight and Connections
The Problem: The Buyer Has ChangedBuyers are impatientwith sellersuvInsight Research is timeconsuming and difficultwCustomerChurn/turnover isincreasingLeadsOpportunities
Major market shifts…require change in CRM Sales: from vendor driven to buyer driven process Marketing: from outbound to inbound marketing Buyers: from un-informed to very informed Channels: from few to countless channels Campaigns: from months/weeks to minutesCRM Intelligence is imperative to successful CRMSLIDE : 4
Declining EffectivenessSales & Marketing 1.0 Becoming IneffectiveSLIDE : 5of Buyers Deflect Calls and Emails92%Buyer Behavior Has Changed
The evolving BuyerSLIDE : 6CampaignEnrichConvert and WinRetain and GrowRelationshipManagerRECOMMENDLeadEnrichSales2013CampaignEnrichConvert and WinRetain and GrowRelationshipManagerRECOMMENDLeadEnrichSalesMARKETINGSALESAwarenessand InterestDecisionActionRetain and GrowRECOMMEND57%
Challenge 2: Organizational Change is Primary DriverSource: Mikael Blaisdell, Leading Authority on Customer Retention, Editor, The HotLine Magazine, 20120% 10% 20% 30%People Changes - Loss of SponsorLack of AdoptionBusiness DownturnCompeting ProductCustomer Acquired/Merged25% - 30%20% - 25%15% - 20%10% - 15%10% - 15%
Additional Problem: Insight Research is Not Easy…Initial Insight Research50 Accounts x 55 Mins/Account= 45 hoursTime ConsumingUpdate Insight Research50 Accounts x 10 Mins/Account= 8 hoursOverwhelmingMediaEditorialSocial
How Does An Average Rep Spend Their Day?Productivity and EffectivenessResearchingthe largestnon-selling activity2011 CSO Insights Sales Optimization Study
Discussion• What are you doing today to overcome these challenges?Whiteboard Session