Posts Tagged ‘digital relationships’

Sales 2.0 Merges Sales and Marketing

Wednesday, 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’.

Share and Enjoy:
  • del.icio.us
  • Digg
  • Facebook
  • Google Bookmarks
  • LinkedIn
  • MySpace
  • Ping.fm
  • RSS
  • Sphinn
  • StumbleUpon
  • Technorati
  • Twitter
  • email
  • Print
  • PDF

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.

Share and Enjoy:
  • del.icio.us
  • Digg
  • Facebook
  • Google Bookmarks
  • LinkedIn
  • MySpace
  • Ping.fm
  • RSS
  • Sphinn
  • StumbleUpon
  • Technorati
  • Twitter
  • email
  • Print
  • PDF

Torturing Leads vs. Nurturing Leads

Tuesday, 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.

Share and Enjoy:
  • del.icio.us
  • Digg
  • Facebook
  • Google Bookmarks
  • LinkedIn
  • MySpace
  • Ping.fm
  • RSS
  • Sphinn
  • StumbleUpon
  • Technorati
  • Twitter
  • email
  • Print
  • PDF

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.

Share and Enjoy:
  • del.icio.us
  • Digg
  • Facebook
  • Google Bookmarks
  • LinkedIn
  • MySpace
  • Ping.fm
  • RSS
  • Sphinn
  • StumbleUpon
  • Technorati
  • Twitter
  • email
  • Print
  • PDF

Insurance Technology Pundits

Wednesday, August 12th, 2009

For those of you who own, manage or sell for IT companies that target insurers, I have a trio of blogs, and one trade publication, that you ought to be reading. It’s amazing the amount of free, yet valuable, information that’s available today on the web.

These three Insurance Technology pundits are Ellen Carney, Barry Rabkin and Ara Trembly. All three of these people make their living consulting to technology vendors in the insurance space. They are all well-connected in the industry, and they all have valuable insights.

Barry’s blog is called ‘Rabkin’s ROI – Rants, Observations and Insights from an Insurance Technology Analyst‘. Barry has a unique point of view as a result of 30 years of experience in what he calls the ‘InTech’ world.

Both Ellen and Ara have blogs on the Insurance Networking site. You may have to register to access the blogs, but it’s well worth the five minutes. You can also sign up to receive IN’s enewsletter. Lots of good information. Here’s an excellent post by Ellen listing the findings of a recent Forrester research study re how insurance execs are planning their IT spending; and an insightful one by Ara discussing the demise of homegrown insurance systems (or not).

These people are bona fide world class experts in the field of information technology in the insurance industry, and you can peek inside their brains for free! Relevant and useful information to help you make better business decisions. It’s a wonderful world.

Share and Enjoy:
  • del.icio.us
  • Digg
  • Facebook
  • Google Bookmarks
  • LinkedIn
  • MySpace
  • Ping.fm
  • RSS
  • Sphinn
  • StumbleUpon
  • Technorati
  • Twitter
  • email
  • Print
  • PDF

Finally Time for Insurers to Develop Comprehensive Views of Clients

Friday, June 26th, 2009

Adapting to the new economic and regulatory realities requires some new thinking on the part of insurance executives. It’s always easier for them to continue using legacy systems without any significant changes. In times like these, however, change is needed. There’s a considerable amount of research predicting that insurance industry IT budgets will increase in the remainder of 2009.  This is a good sign for the industry’s future, and for vendors selling hardware, software and services to the industry.

Research shows that insurance industry executives are more likely to seek advice from technology vendors than their counterparts in banking and most other industries. I haven’t seen any convincing arguments regarding why this is the case; but anecdotal evidence from our clients supports it.

A recurring theme in media predictions and analysts’ research is that insurers are investing in better underwriting and improved risk management. These offer good and necessary improvements, but only on the tactical level, i.e. incremental improvements in efficiency.

Technology providers ought to focus on changing the way insurers operate strategically and help them to place greater emphasis on customer lifetime value. It requires some creativity and a change of mindset. It’s amazing to me that this is still an issue. Twenty years ago, when I was in Digital Equipment Corp.’s Insurance Industry Consulting Practice, we were addressing ways (mostly data warehouses) of building 360 degree views of insurers’ clients across lines of business.

It may be that, given the current environment, insurers are finally feeling enough pain to take the steps necessary to  increase value and profitability by better knowing their customers. It takes more than just a vision to make things happen, though, especially with such a high level of uncertainty in the air.

I’d like to hear from insurance executives, research pundits and IT providers out there:

  1. Is customer knowledge across lines of business still the holy grail for insurers?
  2. How are you solving this issue?
  3. Do you think insurance industry executives are finally ready to tackle this beast?
Share and Enjoy:
  • del.icio.us
  • Digg
  • Facebook
  • Google Bookmarks
  • LinkedIn
  • MySpace
  • Ping.fm
  • RSS
  • Sphinn
  • StumbleUpon
  • Technorati
  • Twitter
  • email
  • Print
  • PDF

Digital Relationships

Wednesday, June 24th, 2009

Business to Business Moves Online

It isn’t news to you that the nature of your relationships with your clients and prospects has changed. Existing relationships are more difficult to maintain as the people you used to deal with leave their posts, and their replacements (if there are any) are much less inclined to engage with IT providers. Cultivating new relationships is more difficult because prospects don’t feel the need to interact with IT providers until they’re ready to buy. They do their research online. If they contact you, the conversation will be about price.

Relationships

Relationships

What may be news is that there’s a more cost effective way to build, nurture and maintain relationships with clients and prospects. You don’t have to be in the same room (or the same country). You can build the trust online that forms the foundation of every sale. With one caveat – the relationships you build must be authentic. Everybody has a well-honed BS detector today. If you aren’t in it for the long haul, if you’re just trying to make your quarterly numbers, resign yourself to competing on price.

Return On Influence

There’s networking and relationship-building for business, and there’s ’sales disguised as networking’. Don’t confuse the two because your prospects won’t. The first one is truly helpful because he wants to make and keep relationships. The second one is interacting only to fill an immediate need.

By being helpful over time, even when there’s no imminent payoff on the horizon, you become a trusted advisor. And you’re able to accomplish this fairly easily, because it’s a one to many relationship. By communicating relevant and useful information through your blog (and commenting on other appropriate blogs), and/or a newsletter, white papers, videos, your website etc., you build a reputation. As long as the content you develop is high quality, people with an interest will find it and disseminate it to others.

Starved for Time, Not Information

It seems counter intuitive. Why develop more content when people don’t have time to consume the information that’s already available to them? If you develop content that resonates, or informs in a way that’s valuable, or entertains (or preferably, all three), people rightly perceive it as a time saver. They didn’t have to hunt down these tidbits, assimilate them and think them through – you did it for them.

Content Strategy

Of course, you can’t deliver useful, relevant, compelling information off the cuff. You must determine what your positioning is. What subject matter do you want to be the trusted advisor for? And who are your target prospects? Once that’s done, you can develop a content strategy that outlines the research you’ll do and the topics you’ll cover. An added bonus is that, as search becomes more contextual (see Bing, Kosmix and Duck Duck Go), your relevant content becomes your search engine optimization (SEO). No need to trick the search engines into driving traffic. The same valuable information that keeps people interested, will also draw the interest of the search engines.

Share and Enjoy:
  • del.icio.us
  • Digg
  • Facebook
  • Google Bookmarks
  • LinkedIn
  • MySpace
  • Ping.fm
  • RSS
  • Sphinn
  • StumbleUpon
  • Technorati
  • Twitter
  • email
  • Print
  • PDF