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THE FALLACY OF THE
(SALES) FUNNEL
Copyright Driven Growth 2016 Confidential and Proprietary Information 1
And other strategies learned from the
trenches that will take your business to the
next level.
Copyright Driven Growth 2016 Confidential and Proprietary Information 2
•YOU NEED A PLAN FOR DRIVEN GROWTH
BIG OPPORTUNITY ON THE HORIZON
• You have built a successful
business and want to take it to a
higher level of success.
• You face some increasingly larger
business challenges
• High growth is more difficult due to
higher existing revenues
• Your sales and marketing playbook is
insufficient to hit your new goals.
• Your customers want to extract
higher value by reducing costs
Copyright Driven Growth 2016 Confidential and Proprietary Information 3
THE PLAN FOR DRIVEN GROWTH IS SIMPLE
Copyright Driven Growth 2016 Confidential and Proprietary Information 4
Service
Differentiation
Customer
Segmentation
Market
Analysis
Marketing
Programs
Sales
Customer
Service
Unique Vision and Value Proposition
Your business needs a FOCUSED plan based on your UNIQUE
business capabilities to reach your new pinnacle.
Copyright Driven Growth 2016 Confidential and Proprietary Information 5
•FOCUS IS YOUR ONLY WAY TO DRIVEN GROWTH
YOUR BUSINESS IS NOT A COMMODITY
• Commodity markets compete
nearly 100% on Cost
• Their products are highly
undifferentiated
• Large operations have a huge
scale advantage in commodities
Copyright Driven Growth 2016 Confidential and Proprietary Information 6
YOUR BUSINESS IS DEAD IN THE MIDDLE
Copyright Driven Growth 2016 Confidential and Proprietary Information 7
Differentiation Scale
Success
HIGH
SCALE
HIGH
UNIQUE
$
THE DEAD ZONE
Small or startup
companies must be
unique.
• Define a unique service
and value proposition
• Focus on your unique
value and avoid the “Hey
Squirrel Affect”
Service business scale
is driven primarily by
time.
• You can’t jump from low to
high sale
LOW UNIQUE
& LOW SCALE
YOU CAN’T BE GOOD AT EVERYTHING
Copyright Driven Growth 2016 Confidential and Proprietary Information 8
A “Blind Dog Will Find A
Bone” every once in awhile
• Too many times one-off
customers OR one-off projects
become prioritized business.
• Look for areas where you have
unique VALUE that you can
uniquely SCALE.
VERTICAL SEGMENTS
HORIZONTALCAPABILITIES
Unique
Value
MANY OPTIONS HURTS SALES CONVERSIONS
Copyright Driven Growth 2016 Confidential and Proprietary Information 9
Do Nothing
No
YesDoing nothing is the most likely
outcome when too many options
are presented to customers.
Developing your own Unique
Selling Proposition (USP) is critical
for converting quicker and scaling
faster.
Credit: The 1-Page Marketing Plan – Allen Dib
Copyright Driven Growth 2016 Confidential and Proprietary Information 10
•DEFINING YOUR UNIQUE BUSINESS OFFERING
WHAT IS A COMMODITY, WHY IS UNIQUE
Copyright Driven Growth 2016 Confidential and Proprietary Information 11
WHAT WHY
WHAT
HOW
HOW
Change the
focus of your
message from
WHAT you do,
to WHY you.
Credit: Simon Sinek Ted Talk 2008
YOUR UNIQUE VALUE = WHY + HOW
Copyright Driven Growth 2016 Confidential and Proprietary Information 12
WHAT
HOW
WHY
The combination of your VISION and HOW
you deliver your services is your unique value.
• Do you have a unique process
that has a higher success rate?
• Do you have unique technical
expertise?
• Do you have unique suppliers or
partners?
• Do you have unique people?
• Can you make a unique
promise?
“What” is what
everyone else does
IS YOUR UNIQUENESS BIG ENOUGH?
Without research, can you answer the
following 4 questions?
• Is your unique value a momentary niche?
• Is the market you are targeting growing?
• Can you think of enough customers to reach
200% of your 1-Year goals?
• Can you think of enough customers to reach
500% of your 3-year goals?
If you can’t answer the questions, keep
working on your unique value proposition
in your market.
Copyright Driven Growth 2016 Confidential and Proprietary Information 13
EXPAND WITHOUT LOSING FOCUS
Copyright Driven Growth 2016 Confidential and Proprietary Information 14
Horizontal Business Expansion
• Look for product or services that
compliment your capabilities or process
• Example: UX expanding to application
development
Vertical Business Expansion
• Look for vertical segments that have
similar supplier structures or business
cycles
• Example: Sales Closing Cycles
VERTICAL SEGMENTS
HORIZONTALCAPABILITIES
Unique
Value
Copyright Driven Growth 2016 Confidential and Proprietary Information 15
•DRIVEN GROWTH REQUIRES A SALES FOCUS
THE FALLACY OF THE (SALES) FUNNEL
So what are problems with the traditional
sales funnel approach?
• Work best for commodity businesses.
• You are not in that business
• Risks forecasting which in new or growing
businesses is very difficult.
• By the time you see the problem, it is too late.
• Hope of many may result in few or NONE.
• A mile wide but an inch deep with customers is a
poor approach.
• May miss the biggest opportunities
• Not all deals are of equal value.
Copyright Driven Growth 2016 Confidential and Proprietary Information 16
$
$$
$
$
$
$
$
$
$
$
$
$
Trello Board Template: Targeted Sales Management
WHY IS HIRING SENIOR SALES SO DIFFICULT?
Copyright Driven Growth 2016 Confidential and Proprietary Information 17
They Can Sell Themselves
Better Than Your Business
We Interview Sales Process
Knowledge, Not Results
Its Difficult To Evaluate The
Quality Of Their Rolodex
ONE SALES INTERVIEW QUESTION TO ASK
Why It Works
• Sets your expectation on urgency
• Eliminates process responses
• Checks their understanding of
your business
• Tests their rolodex
• Communicates performance
expectations.
• 5-deals eliminates “one trick pony”
potential
Copyright Driven Growth 2016 Confidential and Proprietary Information 18
What are the 5
accounts that you
will 100% close
by (when*)?
*When is determined by your
service’s highest sales performers.
I lied, there is one additional question to ask as follow-up.
How can you be 100% certain?
MAKE 100 SALES CALLS IN 3 DAYS
Tradeshow & Event Marketing
• Target your customers in one location
• Lower overall costs per sales call
• Cost-effectively demo products
• Big marketing lead generation potential
• Get your unique message out
• Events are promotable
• Establish relationships with media and
analysts
• Establish your thought leadership
• Speaking establishes credibility
• Supporting the industry makes you a
leader
Copyright Driven Growth 2016 Confidential and Proprietary Information 19
Copyright Driven Growth 2016 Confidential and Proprietary Information 20
•BUILD A MARKETING FUNNEL THAT CONVERTS
MARKETING FUNNELS PRINT MONEY
Copyright Driven Growth 2016 Confidential and Proprietary Information 21
ATTRACT
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
EXPAND
CONVERT
CAPTURE
NURTURE
ATTRACT
Marketing lists are your number
one business asset
Learning how to convert that list
is like printing money for your
business
• Very measurable results
• Reduced marketing campaign costs
• Built in fans for new product launches
• Increasing value per lead
USE IDEAS TO FUEL GROWTH
Powerful content marketing is the
way to position your company as
the industry thought leader.
To be a thought leader you must:
• Have unique and valuable ideas.
• Be willing to openly share your
ideas.
• Build a system for sharing the
ideas with your industry.
Copyright Driven Growth 2016 Confidential and Proprietary Information 22
Email
Newsletter
Blog &
SEO
Social
Media
Public
Relations
Content
Syndication
Press Release
Case Studies
White Papers
Videos
Infographics
Industry
Panels
Trello Board Template: Content Marketing Planning
YOUR IDEAS DRIVE INBOUND MARKETING
Copyright Driven Growth 2016 Confidential and Proprietary Information 23
Attract
Even if sales primarily drives your
revenue growth, inbound and
outbound marketing will provide a
powerful business accelerator.
• Great content attracts new leads that can
be nurtured
• Great offers convert leads to sales
• Great service creates lifetime fans
EMAIL MARKETING DRIVES CONVERSIONS
Copyright Driven Growth 2016 Confidential and Proprietary Information 24
LIST: Opt In
Email
Marketing List
EMAIL: Unique
Offer for
Targeted List
OFFER: Web
Landing Page
ACCEPTANCE:
Page to Finalize
Engagement
No: Make Offer In A New Way
Yes
ADVERTISING SHOULD DRIVE LIST BUILDING
Copyright Driven Growth 2016 Confidential and Proprietary Information 25
• Spending money on advertising without a
clear conversion metric is nothing but a
waste of your time and resources.
• A Driven Growth business DOES NOT use
advertising to build their brand.
• A Driven Growth business DOES use
advertising to develop its email list that will
be used to develop leads that convert to
sales.
• When you have a clear unique value
proposition use high ROI advertising to drive
new leads.
Copyright Driven Growth 2016 Confidential and Proprietary Information 26
•BUILD SYSTEMS AND MEASURE WHAT IS IMPORTANT
MEASURE ONLY WHAT YOU NEED
Copyright Driven Growth 2016 Confidential and Proprietary Information 27
Universal Truths
• 80/20 Rule
• Measure the 20% of the data that drives
80% of your business growth and value
• Measure Data For Making Decision
• Easily understood and actionable
• Motivates your people to improve
• Directly tied to companies goals.
This topic is much too large to cover in a single slide. Your unique data needs
are a function of your company’s services and current size.
DRIVEN GROWTH
WWW.DRIVENGROWTH.COM
PHONE: 1.800.216.6103
EMAIL: HELLO@DRIVENGROWTH.COM
Copyright Driven Growth 2016 Confidential and Proprietary Information 28

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The Fallacy of the Funnel and Other Lessons in Creating A Driven Growth Business

  • 1. THE FALLACY OF THE (SALES) FUNNEL Copyright Driven Growth 2016 Confidential and Proprietary Information 1 And other strategies learned from the trenches that will take your business to the next level.
  • 2. Copyright Driven Growth 2016 Confidential and Proprietary Information 2 •YOU NEED A PLAN FOR DRIVEN GROWTH
  • 3. BIG OPPORTUNITY ON THE HORIZON • You have built a successful business and want to take it to a higher level of success. • You face some increasingly larger business challenges • High growth is more difficult due to higher existing revenues • Your sales and marketing playbook is insufficient to hit your new goals. • Your customers want to extract higher value by reducing costs Copyright Driven Growth 2016 Confidential and Proprietary Information 3
  • 4. THE PLAN FOR DRIVEN GROWTH IS SIMPLE Copyright Driven Growth 2016 Confidential and Proprietary Information 4 Service Differentiation Customer Segmentation Market Analysis Marketing Programs Sales Customer Service Unique Vision and Value Proposition Your business needs a FOCUSED plan based on your UNIQUE business capabilities to reach your new pinnacle.
  • 5. Copyright Driven Growth 2016 Confidential and Proprietary Information 5 •FOCUS IS YOUR ONLY WAY TO DRIVEN GROWTH
  • 6. YOUR BUSINESS IS NOT A COMMODITY • Commodity markets compete nearly 100% on Cost • Their products are highly undifferentiated • Large operations have a huge scale advantage in commodities Copyright Driven Growth 2016 Confidential and Proprietary Information 6
  • 7. YOUR BUSINESS IS DEAD IN THE MIDDLE Copyright Driven Growth 2016 Confidential and Proprietary Information 7 Differentiation Scale Success HIGH SCALE HIGH UNIQUE $ THE DEAD ZONE Small or startup companies must be unique. • Define a unique service and value proposition • Focus on your unique value and avoid the “Hey Squirrel Affect” Service business scale is driven primarily by time. • You can’t jump from low to high sale LOW UNIQUE & LOW SCALE
  • 8. YOU CAN’T BE GOOD AT EVERYTHING Copyright Driven Growth 2016 Confidential and Proprietary Information 8 A “Blind Dog Will Find A Bone” every once in awhile • Too many times one-off customers OR one-off projects become prioritized business. • Look for areas where you have unique VALUE that you can uniquely SCALE. VERTICAL SEGMENTS HORIZONTALCAPABILITIES Unique Value
  • 9. MANY OPTIONS HURTS SALES CONVERSIONS Copyright Driven Growth 2016 Confidential and Proprietary Information 9 Do Nothing No YesDoing nothing is the most likely outcome when too many options are presented to customers. Developing your own Unique Selling Proposition (USP) is critical for converting quicker and scaling faster. Credit: The 1-Page Marketing Plan – Allen Dib
  • 10. Copyright Driven Growth 2016 Confidential and Proprietary Information 10 •DEFINING YOUR UNIQUE BUSINESS OFFERING
  • 11. WHAT IS A COMMODITY, WHY IS UNIQUE Copyright Driven Growth 2016 Confidential and Proprietary Information 11 WHAT WHY WHAT HOW HOW Change the focus of your message from WHAT you do, to WHY you. Credit: Simon Sinek Ted Talk 2008
  • 12. YOUR UNIQUE VALUE = WHY + HOW Copyright Driven Growth 2016 Confidential and Proprietary Information 12 WHAT HOW WHY The combination of your VISION and HOW you deliver your services is your unique value. • Do you have a unique process that has a higher success rate? • Do you have unique technical expertise? • Do you have unique suppliers or partners? • Do you have unique people? • Can you make a unique promise? “What” is what everyone else does
  • 13. IS YOUR UNIQUENESS BIG ENOUGH? Without research, can you answer the following 4 questions? • Is your unique value a momentary niche? • Is the market you are targeting growing? • Can you think of enough customers to reach 200% of your 1-Year goals? • Can you think of enough customers to reach 500% of your 3-year goals? If you can’t answer the questions, keep working on your unique value proposition in your market. Copyright Driven Growth 2016 Confidential and Proprietary Information 13
  • 14. EXPAND WITHOUT LOSING FOCUS Copyright Driven Growth 2016 Confidential and Proprietary Information 14 Horizontal Business Expansion • Look for product or services that compliment your capabilities or process • Example: UX expanding to application development Vertical Business Expansion • Look for vertical segments that have similar supplier structures or business cycles • Example: Sales Closing Cycles VERTICAL SEGMENTS HORIZONTALCAPABILITIES Unique Value
  • 15. Copyright Driven Growth 2016 Confidential and Proprietary Information 15 •DRIVEN GROWTH REQUIRES A SALES FOCUS
  • 16. THE FALLACY OF THE (SALES) FUNNEL So what are problems with the traditional sales funnel approach? • Work best for commodity businesses. • You are not in that business • Risks forecasting which in new or growing businesses is very difficult. • By the time you see the problem, it is too late. • Hope of many may result in few or NONE. • A mile wide but an inch deep with customers is a poor approach. • May miss the biggest opportunities • Not all deals are of equal value. Copyright Driven Growth 2016 Confidential and Proprietary Information 16 $ $$ $ $ $ $ $ $ $ $ $ $ Trello Board Template: Targeted Sales Management
  • 17. WHY IS HIRING SENIOR SALES SO DIFFICULT? Copyright Driven Growth 2016 Confidential and Proprietary Information 17 They Can Sell Themselves Better Than Your Business We Interview Sales Process Knowledge, Not Results Its Difficult To Evaluate The Quality Of Their Rolodex
  • 18. ONE SALES INTERVIEW QUESTION TO ASK Why It Works • Sets your expectation on urgency • Eliminates process responses • Checks their understanding of your business • Tests their rolodex • Communicates performance expectations. • 5-deals eliminates “one trick pony” potential Copyright Driven Growth 2016 Confidential and Proprietary Information 18 What are the 5 accounts that you will 100% close by (when*)? *When is determined by your service’s highest sales performers. I lied, there is one additional question to ask as follow-up. How can you be 100% certain?
  • 19. MAKE 100 SALES CALLS IN 3 DAYS Tradeshow & Event Marketing • Target your customers in one location • Lower overall costs per sales call • Cost-effectively demo products • Big marketing lead generation potential • Get your unique message out • Events are promotable • Establish relationships with media and analysts • Establish your thought leadership • Speaking establishes credibility • Supporting the industry makes you a leader Copyright Driven Growth 2016 Confidential and Proprietary Information 19
  • 20. Copyright Driven Growth 2016 Confidential and Proprietary Information 20 •BUILD A MARKETING FUNNEL THAT CONVERTS
  • 21. MARKETING FUNNELS PRINT MONEY Copyright Driven Growth 2016 Confidential and Proprietary Information 21 ATTRACT $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ EXPAND CONVERT CAPTURE NURTURE ATTRACT Marketing lists are your number one business asset Learning how to convert that list is like printing money for your business • Very measurable results • Reduced marketing campaign costs • Built in fans for new product launches • Increasing value per lead
  • 22. USE IDEAS TO FUEL GROWTH Powerful content marketing is the way to position your company as the industry thought leader. To be a thought leader you must: • Have unique and valuable ideas. • Be willing to openly share your ideas. • Build a system for sharing the ideas with your industry. Copyright Driven Growth 2016 Confidential and Proprietary Information 22 Email Newsletter Blog & SEO Social Media Public Relations Content Syndication Press Release Case Studies White Papers Videos Infographics Industry Panels Trello Board Template: Content Marketing Planning
  • 23. YOUR IDEAS DRIVE INBOUND MARKETING Copyright Driven Growth 2016 Confidential and Proprietary Information 23 Attract Even if sales primarily drives your revenue growth, inbound and outbound marketing will provide a powerful business accelerator. • Great content attracts new leads that can be nurtured • Great offers convert leads to sales • Great service creates lifetime fans
  • 24. EMAIL MARKETING DRIVES CONVERSIONS Copyright Driven Growth 2016 Confidential and Proprietary Information 24 LIST: Opt In Email Marketing List EMAIL: Unique Offer for Targeted List OFFER: Web Landing Page ACCEPTANCE: Page to Finalize Engagement No: Make Offer In A New Way Yes
  • 25. ADVERTISING SHOULD DRIVE LIST BUILDING Copyright Driven Growth 2016 Confidential and Proprietary Information 25 • Spending money on advertising without a clear conversion metric is nothing but a waste of your time and resources. • A Driven Growth business DOES NOT use advertising to build their brand. • A Driven Growth business DOES use advertising to develop its email list that will be used to develop leads that convert to sales. • When you have a clear unique value proposition use high ROI advertising to drive new leads.
  • 26. Copyright Driven Growth 2016 Confidential and Proprietary Information 26 •BUILD SYSTEMS AND MEASURE WHAT IS IMPORTANT
  • 27. MEASURE ONLY WHAT YOU NEED Copyright Driven Growth 2016 Confidential and Proprietary Information 27 Universal Truths • 80/20 Rule • Measure the 20% of the data that drives 80% of your business growth and value • Measure Data For Making Decision • Easily understood and actionable • Motivates your people to improve • Directly tied to companies goals. This topic is much too large to cover in a single slide. Your unique data needs are a function of your company’s services and current size.
  • 28. DRIVEN GROWTH WWW.DRIVENGROWTH.COM PHONE: 1.800.216.6103 EMAIL: HELLO@DRIVENGROWTH.COM Copyright Driven Growth 2016 Confidential and Proprietary Information 28