B2B Marketing. A Seven Step Guide to Launching New Propositions through your Sales Force
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1 B2B Marketing A Seven Step Guide to Launching New Propositions through your Sales Force
2 Are your sales and marketing teams working in harmony during new product launches? Or is it a time for blame and missed opportunities... This quiz will give you a good idea of how well your sales and marketing departments align when a new B2B product or service is launched. It s born of our experience working extensively with both sales and marketing functions. If you score highly, you are almost certainly already doing most of the activities suggested in this paper; you should stop reading and carry on running your successful enterprise. If your score is less than brilliant then read on... How aligned are your sales and marketing teams? (Print and mark up.) Score 1-5 (1) Strongly disgree (2) Disgree (3) Neither agree or disagree (4) Agree (5) Strongly agree Marketing are clear about which customers they are targeting with new propostions The value of the proposition to target clients/customers is clearly defined Collateral for the new proposition is linked to the current sales methodology, and highly rated by salespeople Sales insghts are used in the proposition development process, and salespeople are involved in testing ideas There is a formal team consisting of marketing and sales representatives that meets regularly during the development and launch period of a new proposition How the product is to be sold is a core consideration in the development of the proposition There is sufficient time and investment in training to get sales teams quickly up to speed and confident to sell Training on the new proposition is focussed as much on how to sell the product/service as on its features and benefits Salespeople leave product training sessions with a clear action plan and strategy for key accounts 1
3 Score 1-5 (1) Strongly disgree (2) Disgree (3) Neither agree or disagree (4) Agree (5) Strongly agree New proposition training sessions reinforce and support existing sales methodologies There are sufficient case studies and sales tools produced by marketing to support the sales teams Marketing provide good up-to-date information on the competition and strategies for dealing with them Marketing are clear where likely obstacles to customers buying a new proposition lie Marketing suggest strategies for dealing with these likely obstacles to customers buying a new propostion There is at least one marketer with the role of liaising with the sales force throughout the launch of the proposition Marketing people meet regularly with customers before, during and after the launch of the proposition Your organisation has avoided the culture of blame that can exist between the marketing and sales areas There is a common language used in marketing and sales to describe customers and the sales process Reward/commission schemes are in place before the launch of new propositions The sales force is skilled at providing timely and useful feedback to marketing after the product launch Scoring: = In good shape, there is strong alignment between marketing and sales in the development and launch of new B2B products. You are well positioned for innovative new launches = Not bad, but when the pressure is on cracks may appear and the effectiveness of new launches may be impaired = More thought needs to be given as to how sales and marketing work together during key product launches. You re likely to be getting some disappointing results = Your company is poorly positioned to be launching anything more than business-asusual propositions. 2
4 A seven step guide The tensions between sales and marketing departments are evident in many organisations. That these tensions exist is not surprising, as the departments compete for budget (there is often a choice between more salespeople or more marketing spend) and rely on each other for their success. Because of this interdependency, they can blame each other for failures. During good economic times, when marketing are asking the sales teams to sell a consistent product line featuring the occasional add-on or refinement, companies are generally able to live with this tension. However, when the economy turns or a company decides to innovate and sell new propositions to existing or new customers, the disconnect between the two departments can become damaging and expensive. Salespeople are under more pressure and/or outside their comfort zone, and need much more support and direction from marketing, but the processes and culture are often not in place to provide or understand what support is required. Symptoms of this dysfunction include: Salespeople failing to find early customers for the new proposition and reverting to selling what they are used to and comfortable with; Resistance among salespeople to introducing the proposition to their best customers amid excuses as to why it s not possible or appropriate to sell it to these customers; Inconsistency in sales approach leading to highly variable success rates; Meetings between sales and marketing focusing on blame rather than problem solving and customer feedback; Marketing changing the four Ps in an attempt to find a magic solution that will increase sales. Where price is changed, this normally leads to an erosion of margins; The failure of proposition launches that should have succeeded; Confused customers with a growing sense that the company does not understand their needs. The result: fewer sales, longer sales cycles, lower margins, dissatisfied customers and a fractious relationship between two key departments. The remainder of this paper provides seven practical ideas for how, with sensible planning and welltargeted investment, this scenario can be avoided. 3
5 Proposition development 1. Build a cross-functional team Salespeople need to be involved in the earliest stages of the development of new propositions. A proposition team should be brought together that includes at least two salespeople with deep experience of the target customers and credibility within the sales force. If appropriate, representatives from channel sales and customer services can be included, as well as a member of the team tasked with training the sales channels in the new proposition. This team then plays a critical alignment role throughout the development and launch of the proposition by ensuring that: The insight behind the proposition is sharp and resonates with the sales channels and customers; The customers Buying Cycle is properly considered in the positioning of the proposition, and that there are strategies in place to accelerate customers through the cycle; A thorough training and communications plan is developed, providing sales teams with all the information and support they need to tailor the proposition to each of their targets as efficiently as possible; A feedback loop is in place to provide post-launch refinement and enhancement of the proposition; Sales feel increased ownership and commitment to the proposition, because their colleagues have been involved and their job made easier by the support provided. The team is best led by the marketer responsible for the proposition and all those involved should have the success of the proposition as one of their formal objectives. 2. Marketing must be present The more challenging the launch of a new proposition is to the sales channels, the more important it is that marketing remain present and accessible throughout its lifecycle. To a marketer, a new proposition launch provides the opportunity for advancement in the company and as a marketer. It must be clear to the marketer that their rewards and position are linked to the success of the proposition, and that distractions are to be avoided. Being present means not only being in touch with customers, running focus groups and organising events (most marketers are good at this) but being present for the sales force and channel teams. This includes presenting the proposition in person, attending early sales meetings and being available to the sales team when they have questions or need support. Where there are large numbers of people involved in the sales effort, personal accessibility can be difficult. 4
6 This can be tackled creatively by, for example, running a proposition-focussed web portal, open conference discussions and/or a blog picking up and responding to common themes. The more a B2B marketer puts into their relationship with the sales teams, the more support and feedback they will receive. When there is too much of a gap between the marketing and sales functions for example when launched propositions are handed over to in life or other support teams some of the energy and insight is lost. The sales team is often the marketer s most important weapon. Too often this is not reflected in where a B2B marketer chooses to spend their time and investment. 3. Marketers: Remember the Buying Cycle it takes time to sell new ideas In times of increasing competition, some companies respond with multiple new propositions to defend their markets and reduce the impact of lower sales from their traditional base. This can lead to sales forces being asked to sell new propositions to customers when they are already focussed on last quarter s proposition. Building a customer s desire to change the status quo and buy your product takes time, perhaps many months, depending on the size, complexity and urgency of the need being addressed. It is often better to launch fewer propositions well - with proper focus and sustained support and resource - than to throw too many poorly supported ideas at the sales force and their customers. 4. Don t skip the beta tests and case studies Salespeople need confidence in a new proposition. If the proposition has a technical element then they ll want to know and see evidence that it works. Nothing stops a sales team selling more than a fear that their customer will be let down by a poorly tested product. This may appear obvious but too many times a launch deadline is only met by reducing or ignoring the planned testing time. Case studies are a great support tool for salespeople. They show that someone who has purchased the proposition has found that the proposition met or exceeded their needs. The best case studies are written with the specific intent of moving customers around their Buying Cycle (see table below) for example, one case study may heighten the awareness of a problem solved by the proposition, encouraging the customer to recognise the value of acting; a second may demonstrate how the proposition outperformed an alternative solution. Case studies are often not written in advance of launch because of time constraints or the difficulty in finding a test customer. This can be a mistake as the information and feedback can be invaluable to the sales team. If a customer cannot be found to test the proposition in advance, perhaps by offering a price incentive, the value of the proposition to the customer base may need to be questioned. Case studies do not need to be long or complex; the best ones are written from the client s perspective making it easy for future customers to assess how the benefits of the purchase outweigh its costs. 5
7 Proposition launch 5. Develop proposition training and communications that SUPPORT the sales process This is perhaps the most critical alignment activity for a new proposition. The aim of any proposition training is to accelerate and improve sales performance. Providing detailed technical and product information is important but not enough on its own to ensure success. Good proposition training will help the sales teams move their customers confidently through their buying decision. This means providing strategies, support tools and documentation that positively enhance the selling process. To do this successfully, a marketer needs a deep understanding of how customers buy and the input of the sales representatives on the proposition team will be critical in developing the appropriate approach. The following section outlines how we break down a customer s Buying Cycle and some key questions a good marketer will have answered in some depth at each stage. It is important that marketers recognise that in addressing these questions they cannot afford to be superficial. So, for example, if one of the benefits of the proposition is to save the customer money, it must be clear who in the customer s organisation will benefit, how much will be saved, what information needs to be acquired by sales to calculate the ROI and so on. It s not enough simply to refer to cost savings. 6
8 The Buying Cycle Recognising where a customer is in their buying process is critical to both marketers and salespeople. This insight enables them to support each customer by making the right information and guidance available to them at the appropriate time in their buying decision. By providing this support marketing and sales are together able to build a profitable trusted adviser relationship with the customer. There are four major stages in any buying decision, these are: Awareness of Needs where the customer moves from being happy with the status quo to recognising the need to change product, service, process or supplier. Assessment of Alternatives where the customer has decided to act and is evaluating the product or service against competing alternatives. Alleviation of Risks where the customer has narrowed their choice to the preferred solution, but begins to think about the personal and business risks that may be involved. Achievement of Results where the buying decision has been made and the solution implemented, the customer is satisfied and open to discussing new opportunities. 7
9 Stage of the Buying Cycle Background: Proposition Knowledge of Results Achievement Decision Awareness of Needs The Buying Cycle Alleviation of Risk of Alternatives Assessment Example key questions to be answered by marketing What s the proposition? (elevator pitch) Which customers is the proposition primarily aimed at? What s the insight behind it? What does it do for our customers? Why will they want to buy it now? What capabilities do the company have that enhance the proposition people, assets, resources? What technical knowledge is needed to introduce this proposition to a customer? Other information that will support the sales effort Glossary of terms Availability of technical and product resources Proposition training that explains how the proposition should be sold as well as its features and benefits Online assessments to ensure understanding of the proposition and sales approach Awareness of Needs of Results Achievement Decision Awareness of Needs Alleviation of Risk of Alternatives Assessment Which needs does the proposition meet for these targets? Who in our client organisations cares most about these needs? What are the areas of Pain and Gain sales people should explore to create urgency in the customer s mind? How can the ROI be qualified for each customer? Clear targeting information and information on the success metrics of the target customers A value proposition including information on ROI if relevant Example Pain and Gain questions An example ROI case study and ROI calculator Availability of marketing support at sales meetings 8
10 Assessment of Alternatives of Results Achievement Decision Awareness of Needs Alleviation of Risk of Alternatives Assessment What is the customer s likely buying criteria for this type of proposition? Which of these criteria are likely to be more/less important to them? What is known about competitor propositions and their positioning? For which buying criteria are customers expected to perceive our propositions as stronger/weaker than the competition? Are there any buying criteria the customer may not immediately have thought of where the proposition performs well? Case studies and strategies to highlight strengths. Case studies and strategies to deal with obstacles and objections. Alleviation of Risk of Results Achievement Awareness of Needs of Alternatives Assessment Are there any risks that the customer might perceive that may prevent them from buying the proposition? Data case studies and other information to reduce and alleviate the customers likely concerns. Decision Alleviation of Risk 6. Deliver the training in a way that enhances sales skills and accelerates sales Two companies are competing in a similar space with similar propositions. One provides a web link to detailed and accurate product and technical information, and informs the sales teams of their targets. The marketers believe it is the sales team s job to work out how to sell the product and they move on to their next project. The other company runs face-to-face workshops that explain the value the proposition creates, how the proposition is to be sold and to whom. Sales skills are honed and experience of selling the proposition gained using scenario-based computer simulations and role-plays. Accounts are targeted; the value of the proposition to the account assessed and strategies are discussed for dealing with the competition. Coaching is provided, and the marketing team provides full 9
11 answers to the sales team s questions. When they leave they are referred to a resource centre that provides case studies, ROI tools, FAQs, a blog moderated by the lead marketer on the proposition, and quizzes that check on product knowledge. The marketers actively engage with the sales teams, believing them to be their most valuable resource. If a new proposition launch is important to a company, it should properly plan and invest in the training it gives to the sales team. It is reasonable to assume that all else being equal, the company that invested in this form of enhanced product training would benefit from shorter sales cycles, higher conversion rates and higher margins as the sales teams are equipped to sell on value rather than price. 7. Keep the communications alive Once a new proposition is launched there is a tendency for some marketers to breathe a sigh of relief and begin to consider their next challenge. This is a mistake. The sales teams will be facing and overcoming unexpected challenges and receiving invaluable feedback on the value of the proposition to the customers. This is the time when good propositions can be refined into great ones. It is also a time when sales teams can share their experiences and learn from the successes and failures of their colleagues. Marketers who remain close to their sales force, by attending meetings, calling review meetings of their proposition team and running a proposition forum on a website or blog capture this information and are in strong position to manage the lifecycle and performance of their proposition. They are also in a position to learn from their successes and failures and analyse the return on investment of their various marketing activities meaning both they and the business are strongly placed to do even better when the next proposition is launched. 10
12 Why Imparta? Imparta is ranked among the top three global sales training companies by US based consultancy ES Research Group, and has been named among the Top 20 global Sales Training Companies for the last three years running by TrainingIndustry.com Our long-term clients include some of the world s leading organisations, including GE, O2, Lloyds TSB, HP, Intel and the WPP Group. We cover sales, marketing and service, and are able to provide the glue that aligns those teams (e.g. sales-enabled product training) as well as in depth expertise in each field. We have a dedicated Client Impact team that can help you roll out a single workshop, or a sophisticated Sales, Marketing or Service Academy covering reinforcement, application, coaching, measurement and accreditation. Our expertise in experiential learning design ensures very strong learning impact (we are a pioneer in the world of simulations and remain a Microsoft Gold Certified Development Partner). Imparta has 140 trainers and associate trainers around the world and the capability to deliver large-scale, global roll-outs in local languages. Next steps We hope that these ideas are helpful as part of your decision-making process, and would be delighted to discuss any issues with you in more depth. Please feel free to contact one of our Client Directors on +44 (0) , via clientenquiries@imparta.com or via 11
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