Good Products Aren’t Enough
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Transcript Good Products Aren’t Enough
Good Products Aren’t Enough
Customer Retention is one of the primary
focuses of contemporary sales and marketing
Sales Process commands and controls
– What is so important about the sales process?
Tracking customers and prospects are
mandatory
Goals
Acquire and retain customers
Reduce administrative time (sometimes 50% of a
sales rep’s time
Robust account management (especially
Opportunity Management – and what does OM buy
the CEO)
Improve sales rep effectiveness and efficiency
(examples)
Increase profits
Keeping Customers vs Acquisition Costs
Losing a customer – drains psychic and financial
resources
Understand the switching costs of your product group
Direct Marketing Acquisition costs, $10:1-customer
Internet Marketing text says $3:1-customer
Other sources 5:1, 7:1
Customer acquisition costs contributed to the Dot
Com bust
Customer Lifetime Value
Measurement of what a customer is projected to be
worth over a lifetime
CLV (Customer Lifetime Value) = NPV of all orders (revenue
or profit) over the next N years less the acquisition cost
A customer’s (prospect) relative CLV enables you to
allocate resources in pursuit of customer loyalty
Customer Lifetime Value
Competition is vicious in acquiring the same
customer
Challenges in measuring CLV
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Average $ / order
Actual customer retention rate
Number of orders per year per customer
Cost of acquisition
Profit per order
Barriers to Success
No. #1Sales don’t use it
Many factors contribute to non-use
– Big brother
– Others ??
ROI
Creates more closings per rep; increase profits
Increased customer acquisition rate
Reduced customer service costs
Increased customer loyalty, satisfaction;CLV
Improved workflows: increased efficiency
Measuring the success of marketing campaigns
Many, many others
Functionality
Knowledge Management
Incentive Compensation
Analytics
Territory Management
Product Configuration
Customer Needs Assessment
Marketing Encyclopedia
More Functionality
Lead Management
Opportunity Management
Contact Management
Sales Methodology Framework (know the steps).
Post Sale with a sub step called “Collect the
Money”
Funnel / Funnel Analysis
And More Functionality
Partner Management
Expense Reporting
Proposal Management
Quote and Orders
Pipeline Management
Sales – Key differentiators
“ Show people what they want most, and they will move
heaven and earth to get it.”
Translating our strategy
#1 in customer experience across all services
Drive 2x revenue growth in expanded markets
Grow operating profits 3x over FY02
Achieve above targets within 4 years
“ Ability + attitude + activity – excuses = Sales Success “