Crucial Components for B2B Social Media Success

August 29th, 2010

Success in B2B social media marketing is like success in every other endeavor. It requires thought, planning, time and effort. Your social media plan must:

Social Media Marketing2 258x300 Crucial Components for B2B Social Media Success

1. Include input from Sales. If you haven’t already, align Sales and Marketing. You can’t afford not to. Sales should be immersed in the conversations taking place with prospects offline. That information is critical to success in migrating, extending and amplifying those conversations online.

2. Be no longer than six months. You can’t plan beyond that. The conversations you need to be having with suspects, prospects and leads is influenced to a significant degree by the environment. Things change in a hurry. Your plan should define how you’ll adapt, not predict the future.

3. Develop and define target personas. Who are you trying to reach? What are their interests, needs and wants? If your content isn’t relevant and useful to that person; it won’t be consumed, remembered or acted on. You have to know, specifically, who you’re engaging in conversation. What’s relevant and useful to one person is irrelevant and useless to the next.

4. Include search engine optimization (SEO), link building, and probably paid search, too. Place your QUALITY content where your targets are congregating online; and take the extra step to PULL others to your blog and website. If they can’t find you on Google, you don’t exist.

5. Have a content strategy that doesn’t assume ‘existing resources’ will do the development. Beyond the strategy itself, this is the most important piece of the plan. Hire someone (either permanent staff or an outside consultant) as a dedicated resource… someone who is an expert at content development. That means not only an excellent copywriter, but one who has SEO skills, and one who understands how to deploy multimedia to communicate your messages quickly, clearly and persuasively.

6. Include distribution, outreach and socialization… the mechanics of how you’ll get your quality content in front of your target audience (which includes not only prospects, but influential people in your industry, in the blogging world, in the media, etc.); and give them the tools they need to comment and distribute.

7. Build in an analytics plan. List key performance indicators (KPIs). What are your goals? They should include traffic, blog comments, retweets, and conversions. This last, conversions, are where the rubber meets the road. What action(s) do you want your targets to take after consuming your content? That must be clearly defined up front. Google Analytics will give you reams of data for free. You don’t want reams of data. You want the half dozen or so stats that will give you a good idea of how well the plan is meeting its goals.

8. Serve existing customers. It’s easier to keep existing customers than it is to obtain new ones. Does your social media marketing plan lay out how you’ll keep your current customers informed and happy? Social media isn’t only a marketing tool. It’s also an excellent research, customer service and PR tool. Make sure your plan leverages it across all those departments.

9. Include Facebook along with Twitter, LinkedIn, and Foursquare. There are so many people on Facebook you’d be crazy not to try to reach .01% of them. Also look at niche social networks that may aggregate your targets. Once the content is developed, there are tools that automate the process of distributing to these platforms.

10. Follow through. After the content is distributed, you have to follow through. Your social networks must be monitored; and questions and comments must be answered. That’s the essence of  conversation. Listen.

11. Build your house list. It’s your most valuable marketing asset. Your plan should include integration of the various social media platforms into your Customer Relationship Management (CRM) system.

12. Include a feedback loop. You developed relevant and useful content for your target audience. You distributed it. You socialized it. You listened and gathered intelligence re what your target thinks of your messaging. You’ve seen which content drives traffic and conversions, and which doesn’t. Feed that information back into the plan. Tweak, and repeat.

13. Be reasonable. There’s a perception that social media is low cost. The price of admission is practically zero, but social media marketing is a process. It requires a significant investment of time. You must listen, participate, and converse over time. Budget money and other resources accordingly.

14. Do the math. The easiest way to check on #13 is to do the math. Your social media plan should put a dollar value on a customer, and provide a worst-case cost estimate for acquiring that customer. Your customer acquisition cost, using social media, should be no more than a few percentage points of the lifetime value of that customer. If it isn’t, something is wrong with either your plan or your pricing.

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Enable Your B2B Sales Force with Fresh Info Straight from the Source

July 20th, 2010

The past doesn’t equal the future. Change is pervasive. There’s a major upheaval in how products and services are being bought. This upheaval is caused by:

  • changes in technology,
  • changes in economies,
  • changes in the perceptions of value,
  • a power shift from the seller to the buyer,
  • and a reversion back to the natural human interactions of commerce.

There needs to be a corresponding upheaval in how products and services are sold. Social media is contributing significantly. It enables a natural give and take between people. It’s a paradigm shift that is changing how business is conducted. The last 75 years or so (comprising the rise, reign and fall of the mass media selling model) were an aberration.

MultipleConversations Enable Your B2B Sales Force with Fresh Info Straight from the Source

Back to the Future – the Bizarre Bazaar

It may feel like today’s world of transparency, social media, digital relationships and reputation management is something exotic and new. It’s not. Mass media and push marketing (and to a lesser degree brand building) are no longer working because they were an anomaly, brought about by an artificial marketplace. The good news is we are reentering a more human way of conducting business. The bad news is most of us have to unlearn our sales and marketing habits.

So what are we supposed to do?

CONTENT. CONTEXT. CONVERSATION.

Value is communicated over time through a series of interactions between your company and your prospects. However, this value isn’t transferred from business to business. It’s achieved through conversations that individuals from your company have with specific people within an account. B2B sales are the result of many discrete conversations, and value is best communicated when those conversations focus on a common goal: solving the client’s problem.

Strong customer relationships are built over time, through a series of value-added interactions between various people from the buyer and seller organizations. Nevertheless, most B2B companies fail to use key conversations as input to formulate go-to-market strategy for subsequent sales efforts.

Digital versions of these conversations are happening daily, by the millions, in social media (AND THEY LEAVE AN AUDIT TRAIL)! The value of this information is astounding. Participate. Learn how to leverage these conversations. You can bet your business your brightest and toughest competitors are immersed in it.

Here’s what I’ve learned in working with my clients on social media. Common mistakes include:

  • Relegating social media to the most junior person on the Sales team.
  • Investing 10 or 20 hours in it, and declaring it a failure.
  • Treating it as a peripheral endeavor – something not core to the success of the business.

On the surface it makes sense to have a junior (i.e. young) person handle social media. After all, they understand this stuff, right? Yes… they understand the platforms and technologies. The danger is that they typically don’t have a deep understanding of your business, the industries it serves, and (HUGE) the nuances of interacting with clients and prospects. Social media are conversations. What is said, and how information is delivered, are extremely important. Sophisticated people skills are required.

Social media is relatively inexpensive. The price of admission is almost zero; but leveraging social media effectively takes a considerable investment of time. Social media reflects how we interact in the offline world. You must spend time listening and learning about the people you want to interact with; and then you must earn their trust. Plan on spending 10 to 20 person hours a week for a couple of months before you see a tangible payback. Too large an investment? It’s either that or compete on price. You choose.

Social media should be an intrinsic part of your business. It can drastically improve the effectiveness of everything from Customer Service to Marketing (including market research and PR) to Sales. Assign or hire a fairly senior person to manage your social media activities across your organization; and give that person a seat at the table along with the rest of your executives. This person will deliver significant value (more than you can imagine) if you give them the time, resources and respect that they deserve. Expect them to deliver documented, winning go-to-market strategies. Integrate them into the formulation and execution of your business development efforts.

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Sales 2.0 Merges Sales and Marketing

July 7th, 2010

I’ve been watching this coming for a long time, and I believe it’s really here now… and it’s a massive opportunity for SMBs (or SMEs for my Euro and Asian friends). Sales 2.0 finally does away with the ineffective and inefficient sales tactics that so many SMBs continue to use (as if they’re on auto-pilot). Cold calling and ABC (Always Be Closing) have been dead for years, it’s high time we gave them a decent burial.Sales 2.0 is the Merger of Sales and Marketing

In complex B2B sales, people still buy from people. I don’t want to give the impression that ‘Closing’ has gone away. It’s still extremely important, and the people who are ‘Closers’ are extremely valuable. More about this later.

Sales 2.0 merges Sales and Marketing to target prospects more effectively, using online technologies in innovative ways, to bring in more business at a significantly lower cost of sales. Information is available free (or close to it) today that you couldn’t buy for any amount of money five years ago.

Now we can find highly specific target prospects much more easily, AND we don’t have to interrupt them while they’re trying to do something else. Outbound sales messages, when they’re done via phone or even in person, are analogous to interruptive advertising. An Alterian poll determined that in 2009, 95% of advertising was ignored or disbelieved by its target audience. The old saw was that 50% of advertising didn’t work… you just didn’t know which 50%. Today, you can rest assured that 95% of advertising spend is wasted.

How do you build trust when your prospects won’t engage with you? Today’s B2B buyers want to engage in conversation where and when it’s convenient for them. That means social media. It’s not expensive, but it’s not free. It takes time and effort, knowledge and finesse. Increasingly, Sales and Marketing people are going to have to immerse themselves in social media (or hire a trusted resource) to do demand generation, lead nurturing and to build relationships… albeit digital relationships.

Now we get back to the ‘Closers’ I mentioned earlier. In B2B they’re essential, and they’re expensive. You don’t want them (and they wouldn’t do it anyway) spending time writing blogs, Tweeting, and trolling Discussion Groups on LinkedIn. The good news is they don’t have to. Once a digital relationship is established with a prospect, and the lead is qualified, whoever is handling social media for you should turn the realtionship/lead over to one of your closers. (You have at least one, or you wouldn’t be in business.) When the prospect is nearing a buy decision, they will want to speak with a sales person.

If the Sales 2.0/Marketing operation has done its job correctly, that face to face conversation won’t be focused exclusively on price. Your closer can spend their time and energy developing a personal relationship… and closing a profitable deal.

This is the first post in a series about B2B Sales 2.0. The next one will be titled ‘Sales 2.0 is Sales Enablement’.

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IT Sales and Marketing Must Adapt

June 23rd, 2010

First it was the Internet; then it was the recession; and now it’s Social Media. They all changed the way IT buyers buy. And each of those changes has created the need for IT Sales and Marketing people to adapt.

Social media and search have irreversibly merged the worlds of Sales and Marketing. Where marketing messages and sales relationship building begin and end is a moving target. So SMB IT providers must adopt a new set of marketing-related behaviors to thrive in this new environment.

SandM Alliance 300x223 IT Sales and Marketing Must AdaptSelling evolved long ago from an act of presenting and closing, to one of educating and consulting; but access to information via online sources (rating sites, filtering social media streams, and tools for competitive analysis) has changed the game.

Over the past five years B2B buyers have learned to research online. They don’t want to see or talk to a salesperson until they’re nearing a buy decision. That means Marketing, specifically online marketing, must create demand, nurture leads and keep them engaged until they’re ready for Sales.

Some businesses are attempting to meet this challenge by expecting salespeople to learn the ins and outs of the internet as a sales enabler, while also carrying a quota, building relationships, managing accounts and internal resources, upselling current customers, and prospecting! That’s a great way to set your salespeople up for failure.

My clients – SMB (20 to 100 employee) IT providers (hardware, software and/or services) have been evolving and they need to continue to do so. My experience with them (MSPs, SIs, VARs), is that they’ve been struggling to transition from a direct sales model to a model that better fits how their prospects want to buy.

SMB IT providers are still trying to get their web channel aligned (if they even understand that the web is their de facto channel to market). Now there’s another paradigm shift; and that’s social media. There’s the added challenge of figuring out how to reach prospects through blogs, LinkedIn, paid search, personalized email, and the new question burning up Twitter today – should we buy promoted tweets?

I want to draw an analogy here to earlier forms of media. Books were invented hundreds of years ago and they’re still going strong. Newspapers and magazines were invented later, and they’re still here, maybe not so strong. Radio is still here. So are movies and TV.

With each paradigm shift, the old way wasn’t destroyed, it was added to. That’s the situation with SMB IT providers – there’s still basic selling of boxes going on and that will continue, but there’s no margin in it. There’s still consultative selling of solutions going on, and that will continue, but now the prospect is in the driver’s seat and margins are under pressure. Effective Marketing (content marketing, inbound marketing, online marketing, social media marketing) can reduce the Cost of Sales and help IT providers to maintain margins.

There are no more blind dates. Your prospects can learn just about all there is to know re your company, your products and services, and your personnel. Some of my clients say, “Then let’s not tell them. Let’s leave that information off our website. Let’s not participate in social media. Then they’ll have to speak to our salespeople.” I disagree… vehemently. No SMB IT provider is selling any solution that prospects can’t find elsewhere. If your site doesn’t contain the relevant and useful information that people need to make an informed decision, you’ve already lost the sale.

In order to beat the competition, you need to be playing the social media game, and you need to do it well. There’s a misconception that social media is free. The platforms typically are free. Using them effectively takes time, knowledge (platform knowledge, but also business and people knowledge), and a well thought through strategy.

I have a client who asked me to help him find a recent college grad to do his company’s social media marketing. He figured that there are plenty of recent grads looking for work and they understand this social networking stuff. We couldn’t find anybody. There were plenty of applicants, just nobody capable. They didn’t understand business. They couldn’t discern what was appropriate communication, and what was not. They didn’t know the industry. When a client or prospect engaged them online, they didn’t comprehend the context of the message. They couldn’t reply in a meaningful way.

Social media is conversation. You need to make sure your end of that conversation is interesting, knowledgeable, relevant and courteous.

Social media presents a gigantic opportunity for SMBs. You can engage your prospects where they’re already congregating online, build credibility in your expertise, and (over time) gently persuade them to purchase from you. This takes both Sales and Marketing participation (and cooperation), time, effort, some money, planning, and a willingness to develop processes. It takes a concerted effort over time and across platforms. The payback is orders of magnitude greater than the Sales and Marketing ROI you’re used to.

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Torturing Leads vs. Nurturing Leads

May 4th, 2010

I used to think the worst thing my clients did to qualified leads was to ignore them once they found out they weren’t ready to close this quarter (or even this month).

Complex, high-ticket B2B solutions have long sales cycles. If you have a qualified lead (they have the need, budget and authority), keep them engaged and nurtured. There are right and wrong ways to do this. I’ve seen clients waste time and money on what they think are ‘nurturing’ activities, only to end up with annoyed, tuned-out prospects.

Here’s my list of Lead Torture vs. Lead Nurture:Torture 150x150 Torturing Leads vs. Nurturing Leads

Lead Torture – calling leads just to ‘touch base’ (“Are you ready to buy yet? I need to make my quota.”). Lead Nurture – calling leads when you have something to talk about, something that is of interest to that individual. Having a valid business reason to make the call.

Lead Torture - Tweets about mundane or arcane (too techie) matters; salesy, obviously self-serving Answers and Discussions on LinkedIn; invitations to become a fan of your company page on Facebook. Lead Nurture - a thought through, coordinated social media plan that has an objective, is congruent across platforms, and consistently delivers interesting, meaningful and/or entertaining information.

Lead Torture – sending the same, tired brochure (or case study or white paper) over and over again. Lead Nurture – sending new, relevant and useful information on a regular basis (blogs are a great way to accomplish this AND improve your SEO at the same time).

Lead Torture – sending weekly emails, written by whichever technician wasn’t billed out at the time, containing technology feature dumps. Lead Nurture - sending a weekly email that curates news items from the Net; items that are of interest because they’re related to that prospect’s industry, business role, etc.

If you’re going to do it, do it right. Otherwise you’re training your leads to dismiss your messaging and your company.

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Make Your Sales Calls Naked

April 30th, 2010

I ran across this blog post by Jill Konrath. She advises sales people to meet with prospects ‘naked’. That is without brochures, or PowerPoint presentations, or anything except a pen and a notebook. Her thinking is that this forces the sales person to focus on the prospect, to listen to their Naked Salesman 150x150 Make Your Sales Calls Nakedproblems, and to have a person to person conversation.

I agree with Jill. That may seem to be an odd stance for a guy who makes his living developing marketing collateral and sales tools, but it isn’t really.

Today people won’t agree to a meeting with a sales person unless:

  1. they feel you have a solution to a business problem they’re experiencing, and
  2. they’ve already checked out your website, read your company blog, and researched your executives on LinkedIn.

I’ve been there, so I know that hard copy collateral can be a crutch for sales people… especially young or inexperienced ones. It used to be that the collateral was necessary. Prospects had no other way to learn about complex B2B products and services. Those days are gone. Make sure your website is filled with high quality content that is relevant and useful to your clients and prospects; and keep adding content so people have a reason to return to your site.

Focus on developing relationships when you meet with clients. You’ll close more business. Don’t go in totally naked, though… I recommend you wear a smile.

Here’s Jill’s blog post Naked Selling.

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Changing Criteria and Calculations for MSP Valuations

April 18th, 2010

A client called me this past week and asked if I could help him ready his Managed Services Provider (MSP) business for sale. His time horizon is two years and, between now and then, he wants to make the business as attractive and as valuable as possible. This request was a bit far afield from the ones I normally get, so I asked him to give me a few days to research before I gave him an answer.

My research opened my eyes. There are several different forces at work that make the valuation ofFinancial Evaluation 150x150 Changing Criteria and Calculations for MSP Valuations an MSP business a dynamic process. How MSPs are valued is changing, and I was able to say, “Yes,” to my client.

Here’s what I found. The preeminent expert in this space is Charles Weaver. He’s the President of the MSP Alliance, and of a consulting group that specializes in MSP mergers and acquisitions. I exchanged a few emails with Charles. His position is that MSP valuations used to focus on annual profits. The purchaser would ask to see the books. They valued the business more if it could show a year over year improvement in net profits, and they would pay a multiple of last year’s net.

This profit metric led to MSPs choking off investment in the business for a couple of years prior to sale to pump up the size of their profits and, therefore, the selling price. Purchasers were paying top dollar for a business in decline, and they had to invest heavily to get it back into growth mode.

So the metrics changed. Instead of looking just at profits, potential acquirers also looked at the book of business. They reviewed the number of current contracts and their future value in order to get a better idea of future profits. So MSPs who were contemplating cashing out focused on signing clients to multi-year contracts. Charles feels that this is also a less than optimal valuation method. He thinks it’s actually unfair to the seller because there are many sources of non-recurring revenue that should be included. His preferred calculation method is to blend top line revenue and EBITDA.

According to Joe Panettieri, the ‘VAR Guy’ and President of MSPmentor, “effective Marketing, Sales and Consulting are the three basic criteria for long-term MSP success and maximum company valuation… the most successful MSPs have processes in place to work on social media, marketing and PR on an ongoing basis.”

What Joe is saying is that having processes in place to handle Marketing and PR functions delivers three positive influences on valuation:

  1. they indicate a willingness on the part of the business’ management to build and deploy infrastructure devoted to demand generation and lead nurturing (critical sales enablement ingredients when selling complex B2B services),
  2. they accrue sales assets, which are tools that accelerate and amplify the sales process, and
  3. they result in company and brand visibility in the geographies served and across the online world.

Marketing is not a one and done kind of thing. Like Sales and Consulting, it’s an ongoing process that needs to be worked on all the time. Especially today when everyone is dealing with ‘short attention span prospects’. Fresh, relevant and useful content is needed on websites and for social media platforms. You have to give prospects a reason to keep coming back (i.e. new information that educates and gently persuades), until they’re ready and willing to sit down with a salesperson.

So how do I help my client pump up the valuation of his business? By doing the same things I do with all my clients… get them to:

  • focus on Marketing as a strategic part of their business;
  • stop doing ‘promotional activities’ on an ad hoc, opportunistic, haphazard basis;
  • plan, budget and execute Marketing functions just as they do with Consulting and Sales functions.
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