Transcript Problems
www.rpmgi.com
ORGANIC FEE GROWTH
Empowering public practitioners to grow their fee base
2
“Adapt or
die.
”
Billy Beane General Manager Oakland Athletics 3
4
48% of sales rep’s
fail
to hit their target
Off Target 48% On Target 52%
Source: RPMG Revenue Performance Index 2011
5
Sales that fail to close as forecasted
= 88%
Leads generated not followed up by sales
= 68%
Actual selling time by sales people
= 31%
6
Only
15% of organisations
hit their sales target
Miss <10% Achieve?
15% Miss 11% 20% Miss > 20% Source: RPMG Revenue Performance Index 2011
7
And yet CEO growth aspirations for growth remain
optimistic Increase > 20% 23% Increase > 10% but < 20% 42% Source: RPMG Revenue Performance Index 2011
8
How to fuel sales growth… more feet on the street!
Increase >20% Increase 11-20% Increase <10% No Change Decrease 3% 10% 15% 27% 0% 10% 20% 30%
Source: RPMG Revenue Performance Index 2011
40% 45% 50% 9
End-To-End Sales Closure Rate now =
2.4%
4,0% 3,5% 3,0% 2,5% 2,0% 1,5% 1,0% 0,5% 0,0% 3.7% 2006 2007 2008
Source: RPMG Revenue Performance Index 2011
2009 2.4% 2011 10
Every major step
in the process is in trouble % of leads resulting in Meetings / appointments % of meetings leading to presentations/proposals % of proposals / offers resulting in closed sales Source: RPMG Revenue Performance Index 2011
11
Adapt or Die! Moneyball….for Revenue!
Sales Leads Required Lead to 1 st Meetings Ratio 1 st Meetings Required Meeting to Proposal Ratio?
Proposals Required Propose-To-Close Ratio?
New Deals to Close Average Contract Size?
New Revenue Next Year? 4,500 33% 1,500 33% 500 20% 100 $100K $10M 6,500 engagements needed 12
“Customer buying processes have evolved in our world of ubiquitous, instant, global communications.
But companies’ selling process have, for the most part, remained anchored in the dark ages.
”
Fred Hassan – CEO, Schering Plough
13
Revenue creation use to be simple and linear
Marketing Awareness Traditional Sales Process Opportunities
14
Buyers have now moved to new buying channels. Sellers have not.
Internet-driven changes in B2B buyer behavior
Your buyers go to the web to research business solutions... long before they will talk to your sales rep!
Marketing The marketing-to-sales Black Hole
+40% of your good prospects are lost or mismanaged in this process gap
Leads Truncated Sales Opportunities Process Leakage
15
Industry Specific
SMSF - 74,000 Monthly Searches 16
Accounting Practice Sales Funnel
very narrow opening sometimes blocked often random slow trickle of new revenue fairly good conversion metrics 17
Dreaming is at the heart of disruption !
Only when we dream can we hope to create something truly new, something that will overtake old habits, old customs, and old ways of thinking and being 18
Development of Sales
Three previous breakthrough ideas in sales • • • • • 1910: the division of labour in Insurance sales between ‘hunters’ & ‘farmers’ 1925: the understanding of buyer decision by E. K. Strong “Psychology of Selling” 1970’s: Consultative Selling eg Huthwaite S.P.I.N. took 1:1 sales into B2B 1980’s: Purchasing Revolution – saw no corresponding sales response!
2000’s: Internet Revolution – saw no corresponding sales response
Challenge the ‘Status Quo’
Warmer
Building credibility
Reframe
of problem
Rational Drowning
Intensification of problem
Emotional Impact
Humanising the problem
Value Proposition
A new way
Your Solution
implementation path Intrigued Source: The Corporate Executive Board Drowning Customer State Involved Relieved 20
Drivers of Customer Loyalty
19% 9% 19% Company and Brand Impact Product and Service Delivery Value-to-price Ratio 53% Sales Experience • • • • • • • The Purchase Experience… Offers unique, valuable perspectives on the market Helps me navigate alternatives Provides ongoing advice or consultation Helps me avoid potential landmines Educates me a new issues and outcomes Supplier is easy to buy from supplier has widespread support across my organisation 21 Source: Sales Executive Council Research
Individual “Heat-Map” Hunting 92 10 Steadiness 79 Farming Dominance 55 Orientation & DISC 20 Influencing 15 Conscientious ness Conscientious Extraversion 51 86 5 + 2 Personality Dimensions Agreeableness 92 79 Emotional Stability & Intelligence 86 Open Mindedness 80 Optimism Needs Identification 80 Positioning 95 Prospect Engagement 100 RPM Strength 95 Proposal & Validation 95 Dealing with Objections 85 Closing & Follow-Up Revenue Generation Experience 90 95%
0
Achievement Orientation 80 85 Persuasion & Influencing 90 Perception of Effectiveness Goal Clarity 80 Attention to Details 75 Competency Strength 85 80 Democratic & Teamwork Revenue Drive & Focus Customer Service Orientation 100 Networking & Prospecting 81 BD Strength 83 Business / Entrepreneurial Orientation 85 Business Development Skills
22
prob·lem
/ˈpräbləm/ Noun 1. A matter or situation regarded as unwelcome or harmful and needing to be dealt with and overcome.
2. A thing difficult to achieve or accomplish.
Synonyms question - issue - trouble
Why are problems important?
Benefits Solutions Needs
Problems
arise from… which address… which are prioritised by … A buyer with a need but not a problem will often spend time, but rarely spend money.
Sample Problems
• • • • • I can’t innovate fast enough and that means I can’t hit my business targets.
My employees can’t work when they’re not in the office and it’s costing me money Our organization has grown and acquired businesses but we still can’t unify our systems .
Our IT resources and skills are struggling to support our business and hindering growth .
We can’t align all our resources around solving our core business problems therefore our people can’t collaborate .
25
Problems Workshop
Consider your markets. What further problems do these buyers face (that you can solve)?
Consider your channels. What further problems for buyers does this channel uncover (that you can solve)?
Consider your offerings. What further problems does this solution solve?
Problems For Our Markets Problems Found By Our Channels Problems Addressed By Our Solutions
Key Problems
• • • Consider how these problems affect buyers. Mark those that you feel would cause most difficulty if they are not addressed Consider how well your solution solves these problems. Mark those that you feel are addressed by your solutions Identify the six problems that buyers ought to be troubled about, and that you solve the best Worst Problems – For Our Buyers Best Problems – For Us 4.
5.
1.
2.
3.
………………………………………… ………………………………………… ………………………………………… ………………………………………… ………………………………………….
4.
5.
1.
2.
3.
………………………………………… ………………………………………… ………………………………………… ………………………………………… ………………………………………….
One key problem?
Find a big enough problem experienced by a large number of buyers, and solve that problem for those buyers better than anyone else can, and those buyers will pay you more money for doing so.
Effective end to end revenue creation process
Utopia…
achieving revenue target taking the interested turning them into prospects then sales leads And ultimately new customers 29
INBOUND Marketing Ave. Lead Cost: $135
Filling The Funnel
WHO
and
HOW
OUTBOUND Marketing Ave. Lead Cost: $346 Source: The state of inbound marketing. Hubspot, March 2012 .
30
Lead to Customer Close % by Channel
16 14 12 10 8 6 15% 15% 9% 7% 4 2 0 SEO Direct Traffic Referrals Paid Search Source: The state of inbound marketing. Hubspot, March 2012 .
4% Social Media 2% Outbound 31
Roles(s) of Social Media
32
Utopia…????
33
Top of Funnel
Plan the path
And as much as possible
Enable it with technology
34
Marketing Automation
35
Interested
DEFINITION They might one day buy your product, but also includes everyone who may consume or share your content DESIRE Want what you know not what you sell CONTENT Info-graphics, Video’s, Curated Lists, Blog CHANNEL Blogs, Social Networks, Partner Sites capturing the interested turning them into prospects then sales leads And ultimately new customers 36
Prospects (MQL)
DEFINITION Have actively supplied personal information in exchange for more content DESIRE Content that relates to their professional interests CONTENT E-books, Guides, Reports, Guru’s capturing the interested turning them into prospects then sales leads CHANNEL Email / Direct Mail, Advertising / Display Webinar & Events And ultimately new customers 37
Bottom of Funnel
Personal Contact Close with confidence
38
Sales Leads (SQL)
DEFINITION SQL – as agreed by both sales and marketing has met specific criteria (who they are and what they have done) DESIRE Content that address their business pains CONTENT Industry specific case studies, white papers, product comparisons CHANNEL One to one – phone, email, face to face capturing the interested turning them into prospects then sales leads And ultimately new customers 39
Revenue Telemetry
Summary
• • • • • • • • Business Development is tough The Buyers Journey has changed Do you REALLY want to grow?
Who is part of your team?
What problem are you solving?
Measure the change you want to see Put process around achieving it Leverage technology to achieve it 41
THANKS
Andrew France [email protected]
www.rpmgi.com.au
42