Dennis Rodman. The Velos Group Accelerating Sales Results
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1 Dennis Rodman
2 Mark Friedman Sales and Marketing Consultant Married 27 Years High School JV Basketball - 2PPG No Piercings, no hair dye, no tattoos (Honestly!!)
3 Dennis Rodman 7 Consecutive NBA Rebounding Champion (92-98) 2 time Defensive Player of the Year Championship Teams Detroit Chicago 96-98
4 What do we have in common? We both focus our efforts on the basic, essential fundamentals, not the glamorous part of the game Rodman: Rebounds, not scoring Friedman: Assist sales, not the actual sales When we are successful, we hand the ball off to the stars Rodman: Michael Jordan, Scotty Pippen Friedman: The Sales Team When we are successful, the team is successful
5 Now You've Got the Lead -- What's Next Mark Friedman President The Velos Group
6 Why is Sales Lead Management so important? In a recent study by Performark of Business to Business Companies: In the year 2001, companies spent over $100 Billion in direct response, lead generating activities YET - 60% of the companies did not respond to sales inquiries within 60 days 50% of all web inquiries were never answered
7 Why is Sales Lead Management so important? 1. Increase Sales results and productivity - Goal: Sales reps spending more time selling to qualified prospects 2. Efficient spending of limited Marketing budget - What works/what doesn t 3. Continuous Improvement - competitive advantage
8 Inquiries are not Qualified Leads 1. What is an Sales Inquiry? Account who has expressed an interest in your product or service 2. What is a Qualified Lead? Account has been contacted, profiled AND has an identified project, and is interested/ready to buy your product or service 3. What ISN T a Qualified Lead * Trade Show Lead * Bingo Card Response * Direct mail Response * Magazine Subscription
9 Trade Show Lead Management: TYPICAL SHOW SHOW LITERATURE LITERATURE FULFILLMENT FULFILLMENT INQUIRIES DIVIDE BY BY TERRITORY CHANNEL INSIDE SALES FIELD SALES
10 Is this pretty much the way you distributed your Pack Expo Leads?
11 The Velos Group * The Velos Group is dedicated to helping companies accelerate their sales results and attain market leadership. * 20 Years experience in Sales Lead Management: 1. Database Marketing 2. Telemarketing 3. Sales Force Automation 4. Process, Procedures, Systems approach * Accenture, DREF published Wholesale Distribution Industry Best Practice
12 What are we striving to accomplish? TOTAL TOTAL LEADS 11,284 7,635 18,919 QUALIFIED LEADS 5,342 4,396 9,738 % ACTIVE LEADS 1,864 2,549 2,549 CLOSED LEADS CLOSED $ 1,630K 2,638K 4,438K Ave $/Closed deal: $49,394 $56,128 $55,475
13 What are we striving to accomplish? GET THE HUB THE BOOK FAULT MIXED FAIRY MIXED GUTS J F M A M J J A S O N D J F M A M J J A S O N D 2001 $ RESPONSES
14 What are we striving to accomplish? Cost per Response/Lead Analysis J F M A M J J A S O N D J F M A M J J A S O N D 2001 TOTAL A A+B A+B+C 2002
15 Trade Show Lead Management: RECOMMENDED SHOW SHOW LITERATURE LITERATURE FULFILLMENT FULFILLMENT UNQUALIFIED DATABASE LEAD LEAD QUALIFICATION QUALIFIED LEADS NON-QUALIFIED LEADS CHANNEL FIELD SALES INSIDE SALES SYSTEM
16 Why most Lead Management programs fail 1. Lack of Closed-Loop System Approach 2. Focus on Quantity vs. Quality: Inquiries Not Qualified 3. Qualified leads not distributed in a timely manner to lead owner 4. Feedback regarding lead status difficult to collect
17 The Velos Group Lead Management System Inquiry Sources Trade Shows Sales Force Automation Environment Work the Acct Reports MKTG Direct Mail Adv Data Base Entry Qualify Inquiries Distribute Leads Work the Acct Collect Acct Status Info SVC SALES Web, Etc. Work the Acct OPS
18 Do you have a closed-loop lead system in place today?
19 Elements of an effective Closed-Loop System 1. Ideal Prospect defined * Customer Segmentation Analysis * Marketing and Sales Input 2. Consistent data capture of important profile information 3. Prospect Database for all sales inquiries 4. Rapid, customized response to inquiries 5. Qualification of all inquiries that match Ideal Prospect based on BOTH Sales and Marketing input
20 Elements of an effective Closed-Loop System 6. Rules-based lead distribution process 7. Sales methodology defined and used for forecasting 8. Sales Force Automation (SFA) or Customer Relationship Management (CRM) software used consistently 9. Management reports for both Sales and Marketing defined in SFA/CRM software ( and used!)
21 Inquiries are not Qualified Leads 1. What is an Sales Inquiry? Account who has expressed an interest in your product or service 2. What is a Qualified Lead? Account has been contacted, profiled AND has an identified project, and is interested/ready to buy your product or service 3. What ISN T a Qualified Lead * Trade Show Lead * Bingo Card Response * Direct mail Response * Magazine Subscription
22 Do you qualify all inquiries sent to sales?
23 Real Issues: Credibility, Motivation and Productivity If your Sales Reps don t believe the leads you send them are REAL; they will NOT be motivated to follow-up on them..and won t!
24 Not all Sales Inquiries are created EQUAL! 1. Some need to be forwarded immediately to sales * Major Accounts * Named Accounts 2. Some deserve telemarketing (Higher cost qualifying) * Must meet Ideal Prospect criteria 3. The rest (some exceptions) should be entered into low-cost nurturing system * Competitors * Geographic areas * Penal Institutions
25 The Velos Group Lead Management System Trade Show Sales Inquiries Data Enrichment Field Sales Inside Sales Telemarketing Qualifying On-Going Campaign
26 Define a Lead Quality Code 1. Helps Sales prioritize follow-up efforts 2. Helps determine which marketing activities are generating the most AND best qualified leads 3. Helps define most cost-effective fulfillment method Full Literature Pack Partial Literature Pack response only
27 Sample Lead Quality Coding Should include these components: Decision timeframe Revenue potential Decision Timeframe Revenue Potential A = 0-3 Months 1 = $500,001+ B = 4-6 Months 2 = $200,001 - $500,000 C = 7-12 Months 3 = $100,001 - $200,000 D = 13+ Months 4 = $50,001 - $100,000 UNK = Unknown 5 = $50,000 and below UNK = Unknown
28 Leads not routed in a timely manner Speed Matters Sales leads are a lot more like fresh fish than fine wine! After 6 months after a marketing lead generation campaign, 20% of the inquiring companies purchased the product from either the company initiating the campaign or from a competitor After 1 year, 45% had purchased the product
29 Leads not routed in a timely manner Speed Matters The first company to respond stands a better chance of closing the deal. * Image Enhancement * Influence Specs Elements of Speed that need to be optimized: Speed in responding to an inquiry Speed in qualifying an inquiry Speed in delivering qualified leads to the ultimate lead owner
30 Leads not routed in a timely manner 1. Lead Distribution can be complicated 2. Segmented Sales Strategies * Fortune 1000, Government, Education, etc. 3. Geographic/Hierarchical Sales Organizations * Vendor Sales managers like to control the distribution of leads to channel partners 4. Leads sent to Sales Manager, who then decides where to send it Real Issue: Unless a lead is delivered to the correct ultimate owner, additional delay is inevitable
31 Lead Distribution Solution 1. Agree on who is the ultimate lead owner; define exception process 2. SFA software modified to deliver directly to this owner Info copy to each management level 3. Use other notifications methods on as a complement to SFA notification
32 Feedback regarding lead status difficult to collect 1. Everyone has good intentions; very few actually follow through * Sales people want to sell; don t understand/believe Marketing Benefit Statements WIIFM!! 2. Most Lead Management systems require 2 applications to provide feedback * Contact Managers/Forecasting Tools * Lead Delivery/Feedback System
33 Collecting Lead Status Solution 1. Qualified sales leads delivered to sales in the same application as their forecast is required 2. Only allow forecast from SFA application
34 Define Reports that help manage your business 1. Sales Reports NOTE: These reports Lead Status must be automatically Forecast generated by the 2. Marketing Reports SFA software. Quantity of Inquiries Quantity of Qualified Leads Cost per inquiry Cost per qualified lead ROI by each lead source
35 Sales Status Report Lead Status Report - Summary Timeframe: Report Date: Sales Stage Advertising Total # Qual % Qual Total # Total # Total # Total # Total # Total Magazine1 Resp. Leads Leads Pipeline Bank Book Upside Forecast Closed Revenue ROI Ad1 Name Ad2 Name Ad3 Name Total Magazine 1 Magazine2 Ad1 Name Ad2 Name Ad3 Name
36 Marketing Report Lead Cost Report - Detail Year: Date: LEAD SOURCE Magazine1 # PLACEMENTS $/PLACEMENT TOTAL $ # RESPONSES # A LEADS # B LEADS # C LEADS #A,B,C LEADS $/REPONSE $/A LEAD $/A+B LEADS $/A,B,C LEAD # CLOSED DEALS $/CLOSED DEAL ROI JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL
37 Conclusion 1. Effective Sales Lead Management can give your company a competitive advantage 2. A systems approach is required 3. Sales Inquiries Sales Leads: Qualify all inquiries 4. Consistent, disciplined use of SFA/CRM is required
38 The Velos Group Lead Management System Marketing Program Objectives Targeted Prospects/ Customers Prospect Data Bases, Lists Response Management Literature Fulfillment Lead Qualification Lead Distribution Sales Follow-up Opportunity Management Reporting
39 The Velos Group Accelerating Sales Results
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