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
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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 “