Archive for the ‘marketing strategy’ Category

IT Sales and Marketing Must Adapt

Wednesday, 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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Make Your Sales Calls Naked

Friday, 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

Sunday, 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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Using Social Media to Design New Products

Tuesday, February 23rd, 2010

I know that my clients (SMB B2B IT providers), amongst many others, need a better way to communicate to their prospects. acSellerant’s tag line is “Relevant and useful information builds trust. Trust sells.” While that still holds true, it’s not enough.Innovation Group 150x150 Using Social Media to Design New Products Not when it’s delivered primarily via text. The vast majority of B2B marketing messages are delivered online. People have a short attention span online

Relevant, useful, interesting… even entertaining copy is no longer enough to hold the interest of harried, starved for time, inundated with information business prospects. I’ve spent a lot of time and effort researching and building a process to develop multimedia storyboards that can deliver a significant amount of information in a short amount of time. The idea is to use sight and sound simultaneously to compress the amount of time, and increase the ease, in which information is communicated.

You’re thinking, “Wow, Bob. Alert the media. Ever hear of television or the movies?”

This process might include video, but it doesn’t have to, and it’s designed to be deliverable at less cost, with less equipment, and less prep time than video. It’s designed to fit the budgets of my clients. It’s untried, though.

So, I’ve been thinking about how to launch it. I first vetted the idea with friends, colleagues and clients over the holidays. Then I submitted discussions to a half dozen groups on LinkedIn. I was surprised at the response. Many smart, talented, creative professionals joined in the discussions. The consensus was, if I can pull it off, it’s a winner.

Then I went to three online custom publishers I have a relationship with. They were positive. They all said the same thing, they can sell it, IF I can pull it off. So now it’s time to develop a proof of concept and get feedback.

I’ve built a prototype with a voice over script, some on screen text, and a story told in cartoon format (with my crude stick figure drawings). I realized I needed a professional cartoonist to do the eight or nine frames necessary to tell the visual part of the story. So I’m using iFreelance and contacting other cartoonists I found on LinkedIn and through graphic designers I know.

So stay tuned. I’m going to blog about the process as I reveal the proof of concept online, try to build buzz via social media, and crowdsource tweaks to the process/product to improve it. By the way, one of the outcomes of the discussions on LinkedIn is a name for the product: acStream.

Should be interesting.

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Product Launch SWAT Team

Monday, February 15th, 2010

My last blog post introduced this series focused on launching a new product or service totally online. Product Launch SWAT teams are essential whether the launch is online, offline, or a combination of the two.

If a new product or service is important enough to build a launch, give the launch the resources it needs to be successful. SWAT team members should include people from Marketing, Product Management, Sales and Service/Support. Expect that these people will be devoting significant time to the launch effort, so make sure that they aren’t encumbered with too many other deliverables in the same time frame. Assume that half of their time will be devoted to the launch for approximately three months.

It’s essential that Sales be involved in every product launch in a meaningful way. That means at least one sales person will have to split time between roles. Reduce their quota for the duration of the launch. If you don’t, they’ll be busy making their number. The launch process will suffer and the ROI of the launch will be compromised.

You’re going to be tempted to put a junior sales person on the team to minimize the revenue loss. Don’t do it. Put the sales exec who’s going to be most affected by the new product on the team. Typically that will be somebody more senior, and somebody who will whole-heartedly contribute to the success of the launch.

Bruce Seidel is a B2B sales coach with a long history of success selling software. He wrote an excellent blog post regarding formal agreements between Marketing and Sales to ensure a successful new product launch. Read it. Copy it. Keep it someplace safe where you can access it when you need it. I did.

My next post will be about using social media (your blog, Facebook, LinkedIn, Twitter) to crowdsource the features, benefits, delivery model – even the name and branding of your new product or service (and to start a whisper campaign about it).

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Why Online Product Launches are Different, Better, Cheaper

Saturday, February 13th, 2010

As it happens, I’m in the midst of strategizing and planning new product launches for two clients and a new service launch for acSellerant. I’ve done several launches over the years, but this is the first time I’m doing them exclusively online. Traditional launches keep things a secret until the big launch day, then ‘Kaboom!’, a media blitz… and it’s over. Unless it’s Apple. Then people will continue to buzz about the product for months.

Alas, you’re not Apple, and I’m not Steve Jobs. That doesn’t mean we can’t pull off highly successful product launches, though.

Due to the tools we have available today, the research phase (which is an absolute must) can be combined with test marketing and some early promotion of the product.

The problem in developing successful new products is not a shortage of ideas, but the expense of bringing a new product to market without any guarantee of success. How much better to continually seek feedback from prospects along the way, and fine tune the product so you know it’s going to be a winner.

Research, Research, Research

Social media platforms like LinkedIn and Twitter constitute mind-boggling tools for accomplishing research on the fly with built-in feedback loops, and rock bottom pricing. Five years ago you’d have to pay tens or even hundreds of thousands of dollars for the information you can get at virtually zero cost today. Here’s the process:

  1. Determine who your best target customers are. “Everybody” is not an acceptable answer. Be as specific as possible. The better you know who you’re selling to, the better you can custom fit your product, and the more persuasive your marketing messages can be.
  2. Determine how you want to go to market. Are you going to produce the product in-house or outsource the production? Will you sell the product yourself or through resellers? If you’re going the partner route, thoroughly research potential partners to determine best fit.
  3. Market Research Phase:
    a. Research market size and potential.
    b. Interview end users, resellers and sales reps (you can do this via online polls on LinkedIn and Twitter, although you should also conduct some qualitative, in-depth interviews in person or over the phone).
  4. Analysis and Development of the Marketing Plan:
    a. Competitive Analysis – review competing products and how they stack up against your proposed product. If there aren’t any closely competing products, research how else people are solving the problem. If they aren’t solving the problem and they’re not suffering any pain, pull the plug. If they are suffering, but don’t realize they have a problem, you need to add in the overhead cost required to educate them.
    b. Evaluate the product’s Strengths, Weaknesses, Opportunities and Threats (SWOT). Develop a Proof of Concept so people can understand what it is and what it does. It’s OK to use smoke and mirrors, as long as you can build the real functionality when the time comes.
    c. Develop an Online Marketing Plan that leverages the unique capabilities of the Net. Successful online launches create a series of interactions with current customers, employees, prospects, suppliers, trade media, resellers and any other appropriate audiences.
  5. Execute the Plan and Launch the Product:
    a. Develop online (easily and inexpensively edited) collateral materials.
    b. Begin placement dialogues with the first step in the preferred channel.
    c. Have enough dialogues with enough different entities to uncover any previously undiscovered objections.
    d. Review and revise the Plan as necessary with the new information.
    e. Repeat until you’re satisfied you have market acceptance.
    f. Explore relationship extensions with partners.

I’ll come out with more details in shorter blog posts over the next several days.

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How Do You Communicate Value in a Digital World?

Wednesday, December 2nd, 2009

A client said something to me last week that I want to share with you. He asked me, “How do we communicate value in a digital world?” I asked him what he meant.

He said,  “Our services are virtual. We remotely monitor our customers’ systems and applications, and we fix things before they break. We used to get to play the hero now and then… swooping in when there was trouble and saving the day. How can we communicate that kind of value when we’re invisible?”Business Man Questioning

I know the answer, and I’ll share it with you in a minute.

On an earlier visit to that same office, I was asked to wait in the reception area for a few minutes until my client (the VP of Sales) was finished with a con call. So I sat and checked my phone, etc. I couldn’t help overhearing a conversation coming through the open door of their Help Desk area. One of the technician’s was busy relating how he had ‘helped’ a recent caller. She had phoned with a question that this technician considered “stupid”. He recounted (to the amusement of his peers) the conversation during which he solved the problem… and humiliated the caller.

At the time, I decided it wasn’t my place to mention this to my client; but his question was the perfect opening.

How do you communicate value in a digital world?

You make damn sure that every customer touch point is pleasant and reassuring. That Help Desk call was an opportunity for the technician to establish rapport, help the woman with her problem, and make her feel important. She is important. Her company is paying that technician’s salary.

I can divide my clients into two categories. Those who realize that so-called ‘soft skills’ are just as important as technical skills, and those who don’t. Guess who’s more successful?

If you’re remote, and your customer touch points are limited to an occasional phone call, an email now and then, and your website; make the phone conversations, emails and website as high quality as you can. Make them the Ritz-Carlton of phone conversations, emails and websites. If they’re the Holiday Inn Express of phone conversations, emails and websites, that’s how your clients will perceive your business, no matter how sophisticated and skilled your people are.

Evaluate your entire business. Look at every customer touch point and make sure that the employee (or digital entity) involved is not only technically competent, but is delivering Ritz-Carlton level service.

When that’s fixed, start (and maintain) a social media campaign. That’s how you develop digital relationships. More on that in future posts.

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Why Content Strategy is So Important

Thursday, November 12th, 2009

Seth Godin said, “Content marketing is the only marketing that works for B2B.” I absolutely agree. I see proof of it all the time. One can conclude then that content is important. How content is developed, organized and disseminated is also important.

Years ago your Sales department controlled every step of a prospect’s movement through the sales cycle – from initial interest to closing the deal. Your salespeople managed the prospect’s access to information about your products and services. Marketing’s job largely consisted of renting assets owned by other entitiesInformation Structure (advertising sales departments, PR firms with access to journalists, tradeshow organizers).

The internet has changed that forever. Fragmentation of media has created an information source explosion:

  • happy and disgruntled customers freely comment about vendors and services,
  • self-proclaimed industry experts blog about everything from features to pricing to future product releases,
  • competitors engage prospects online via the clever use of social media.

The days of controlling the conversation with customers and prospects are gone. Marketing must move from renting assets to building them. Marketers must become publishers.

Content in Context

The internet has disintermediated the middlemen. Used to be that Marketing ‘rented’ access to prospects via print advertising in trade publications. We all know that ads don’t work anymore. People have become inured. They ignore the ‘noise’.

Or Marketing rented access to prospects via articles placed in those same trade pubs. This can still work, but is prohibitively expensive for SMB companies. Compared with 10 years ago, the prices are higher and the readership is lower.

Trade shows can still work, but they too are expensive, and they’re time-consuming. Most SMB IT providers are selective about exhibiting at trade shows, and only do one or two a year.

The internet has given us direct access to prospects. We don’t have to go through those middlemen anymore. But there’s a downside. Those middlemen gave us context.

When buying a print ad, Marketing made sure that the readers of that trade pub were people in a position to buy what they were selling; and made sure that the ‘content’ of that ad spoke in terms that made sense to that target audience.

When a PR agency placed an article, the agency made sure that the placement was appropriate and that the content was relevant. Then a professional journalist wrote the article in a way that was (usually) interesting to the target audience.

In the trade show scenario, organizers demand that exhibitors meet certain criteria… that they’re focused on a niche that’s congruent with the target audience. Then they book speakers and seminars designed to attract that target audience. And they promote the show to ensure the targets attend.

Content Strategy Supplies Context

Content strategy plans for the creation, publication, and governance of relevant and useful content across a number of different vehicles (blogs, case studies, email campaigns, LinkedIn, online PR, podcasts, syndicated articles, videos, webinars, websites, white papers, etc.).

Gaining the interest of customers and prospects online is all about being willing to put your own agenda aside. Put yourself in their shoes and work hard to produce information that prospects find relevant and useful. If you can make it entertaining too – so much the better. Companies need not only the will, talent and skill to produce great content; they need the tools, processes and infrastructure. Those went away when we lost the middlemen.

The people who develop online content discuss user experience, information architecture, content management systems, metadata, visual design, user research and other disciplines that facilitate users’ abilities to find and consume content. What’s been largely ignored is the content development process.

Content Development Process

Content strategy is important. It provides the context for the content that forms the heart and soul of every successful B2B marketing effort. Content strategy deserves the focus of either someone internal to the organization, or by an external agency. A content strategist executes:

  • Channel Distribution Strategy – defining how and where content will be made available to prospects. (e.g. blogs, email marketing, LinkedIn, online article publishing, podcasts, posted videos, Twitter, website).
  • Content Management Strategy – defining the technologies needed to capture, store, deliver, and preserve an organization’s content. Publishing infrastructures, content management systems and workflows are key considerations.

  • Editorial Strategy – defining the guidelines by which all online content is governed: values, voice, tone, legal and regulatory concerns, user-generated content, and so on.

  • Keyword Research – using search term suggestion tools (on an ongoing basis) to determine which keywords and phrases people are using to find what you’re selling, and embedding those keywords in your content.
  • Link Building – an important component for superior search engine ranking. Google bestows high ranking on those websites that have been linked to from sites it considers to be “of high quality and relevance”.

  • Search Engine Optimization - editing and organizing the content on a page or across a website to increase its relevance and search engine ranking for specific keyphrases.
  • Stewardship of Company Positioning - ensuring all messages are congruent with the established brand, value propositions, etc. and adapting them as markets or competitive conditions change.

Businesses must commit to treating their marketing content as a valuable asset worthy of strategic planning. Otherwise content marketing efforts are haphazard and less effective than they could be. Anything worth doing is worth doing well. Content strategy is worth doing well.

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Marketing Defined

Friday, August 28th, 2009

Let me preface by saying this isn’t a textbook definition of ‘Marketing’. It isn’t how the American Marketing Association, or Proctor & Gamble, or even Apple would define it. This is Bob Leonard’s definition of ‘Marketing’ developed over many years of learning what works best for my clients – small to medium sized (SMB), information technology (hardware, software and/or services), business to business (B2B) companies.

Marketing Sign PostBrand communicates the ‘personality’ of the company and its products and services. Some people mistakenly believe that brand must be communicated through advertising and other promotional activities. Not!

The C suite should define and communicate what a company is about, so employees understand and transmit the brand message. ‘Brand’ is communicated through all customer and prospect touch points.

I define Marketing as “anything that helps Sales close profitable deals”. Branding is a part of that, but only a part. It’s an input to the process of Marketing.

Marketing can be used as a tool to help management develop market strategies (for each product/service) – which are built upon detailed descriptions of target prospects. Once we know exactly who will buy each product and service, and why, we can determine the best

  • messaging (benefit statements, value propositions, etc.)
  • offers (what will make them take action?)
  • vehicles (the most effective ways, online or off, to reach them).

Marketing can inject discipline into the Sales process. It can force the development of a strategy, plan and budget that eliminate one-off, shoot from the hip promotional efforts that do nothing to increase profitable business.

Marketing is a process that is composed of many parts. When conceived and executed properly, the return on investment is significant. Marketing is the planting of a seed, and the nurturing of that seed over time. Just as a farmer must water, weed and feed for months before reaping the benefits, Marketing takes time.

Marketing exists because Sales, by nature and due to compensation plans that reward short-term results, is unable or unwilling to perform that nurturing process. They just don’t have the time. Optimal results are achieved when Sales and Marketing work together. When each:

  • understands what the other is doing and why,
  • agrees on who is responsible for what, and
  • can clearly articulate a mutual definition of a ‘qualified lead’.

Marketing performs demand generation activities, and hands off warm, engaged leads to Sales when the time is right. Sales can then spend its time nurturing relationships with current customers to deliver upsells and repeat business; and developing and closing profitable deals with qualified leads.

Over time, I’ve devised a methodology for developing and executing effective ‘Marketing’ for my clients. The basic format is: ‘Strategy. Content. Design. Tools/Vehicles. Test/Optimize.’ More in upcoming posts.

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