Welcome to Today s Webinar: Local Media Sales Performance

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1 Welcome to Today s Webinar: Local Media Sales Performance June 20, 2012 For audio: You can either listen through your speakers or dial in. Once you choose, please do not change settings. Dial in: +1 (415) Access Code:

2 Introduction Agenda: A View from the Field, Hawthorne Search Research Overview Selling Traditional Media Selling Digital Media Impact of Digital Expansion on SMBs Local Media Confusion Steps to Improve Sales Performance And, the Survey Says BIA/Kelsey Delivering Sales Force Transformation Speakers: Bobbi Loy-Luster VP Client Services Charles Laughlin Senior VP and PD The Kelsey Report Directional Local Media Robert Hawthorne President of Hawthorne Search 2

3 A View From the Field: Local Search Sales 2012 Robert Hawthorne President Hawthorne Search

4 Context In 2011, Hawthorne Search placed over 150 local market sales reps 2012 YTD, placed over 50 sales reps in 22 cities 6 full time sales recruiters talking to dozens of sales reps on a daily basis Clients include local search, technology, media companies focused on SMB 4

5 Popular Misconceptions Myth #1: overall unemployment rate parallel with local market sales reps Reality: Even in the depths of recession, sales reps were still in demand Myth #2: Reps are happy since my turnover is down Reality: Strong pent up demand as many reps chose to ride out recession and are now interviewing 5

6 Popular Misconceptions Myth #3: Base salaries haven t increased due to economic conditions Reality: In Tier 1 markets, 60-65k base salaries common, Tier 2 50k minimum, small markets 40-45k average Myth #4: Local search companies need only worry about other LS companies poaching Reality: Yellow Pages/Local Search companies known for great training, coaching, sales development, many other industries want your people 6

7 Popular Misconceptions Myth #5: If I lose sales staff, it will be easy to find a replacement Reality: In many markets, even large base salaries no guarantee of robust candidate supply. Simply put, only so many top performers available Myth #6: Job ads on the boards will get me a replacement Reality: strong decrease in our posting results across all active job boards in past 2 years 7

8 Where the Action Is Daily Deals, Loyalty Marketing, Proximity Marketing, Verticals, Social Media These areas growing and hiring, drawn to your people Actively hiring both inside and outside sales forces Perceived as hot great place for local market sales person to grow their resume 8

9 What Your Sales People Want Stability. Many reps will eschew the start up in social media if they think their company is stable Resume Builder. Does your company allow your rep to keep their resume hot Selling new technology a way to keep reps from leaving Flexibility. Work from home, flex hours, flex vacation, etc. particularly with young set very important 9

10 What They Want to Earn 80k minimum by year 2 with no less than 50% of that in base salary Jobs that don t have minimum 40k base virtually impossible to recruit for Cell phone, laptop, paid expenses, etc. all very important to today s rep. Sell the package, not just the base salary. Benefits important, be specific 10

11 How to Keep Your Reps Home Keep their skill set fresh, they want to stay on the leading edge Praise goes a long way. Great bosses keep their reps Flexibility with proven reps. Work from home, ability to customize schedule to some degree, etc. help keep proven performers home. 11

12 Hawthorne Search Ability to handle large scale recruiting projects From sales reps to CEOs, proven methodology Robert Hawthorne 12

13 BIA/Kelsey-Hawthorne: Media Sales Research Audience, Format and Goals: Broad range of media reps and managers from a variety of media types Combination of online survey, interviews and first hand experience Goals were to understand the recruitment/hiring and day-to-day local media sales challenges 13

14 BIA/Kelsey-Hawthorne: Media Sales Research 60% 50% 54% Media Types Represented 40% 34% 30% 28% 26% 20% 10% 4% 8% 6% 4% 14% 10% 6% 14% 10% 0% Multiple responses permitted 14

15 Selling Traditional Media Greatest challenges to selling traditional media Seen as obsolete by SMBs -- 57% Ineffective/ Doesn t work -- 55% Low/Insufficient ROI -- 55% Too expensive -- 47% 15

16 Survey Verbatim Selling Yellow Pages advertising is becoming more difficult every day, yet the company I work for is raising quotas, lowering compensation and discontinuing training, benefits and bonuses. 16

17 Selling Digital Media Lots of digital products being sold Online display -- 75% Video -- 68% Listings -- 66% SEM/SEO -- 60% Web Site Dev % 17

18 Survey Verbatim There are too many sales people selling too many media products. I long for the day when Yellow Pages, newspaper and direct mail were all you dealt with. Today it is Google, Bing, Yahoo, Merchant Circle, Manta, ServiceMagic, Yelp, Groupon, Living Social, Angie's List, Patch, YP, SuperMedia, yellowbook 360, online newspapers and Valpak.com Need I go on? 18

19 The Impact of Digital Expansion on SMBs Greater number of digital choices for SMBs creates: Confused/Don t understand it - 79% Not clear on the ROI of digital - 46% 19

20 Survey Verbatim If you don't understand digital media sales and how to communicate to the C-level all the way down to an administrator on how digital media can positively impact their specific business, then you will suffer. 20

21 Impact of Local Media Confusion Confused buyers need more time and education requiring more sales calls 3 calls to close on average 39.6% 4 or more calls on average 33.3% 21

22 Survey Verbatim Five calls to close a sale? It s more like 100 calls equals four appointments equals one sale. 22

23 Impact on Selling Time Examining sales job time allocation we see Selling time in front of customers 26% of available time Administrative duties 18% Client Relationship Building 13% Lead generation 9% Selling time in front of customers 37%* of available time Lead Generation 20%* Post Sale Administrative Duties 18.4%* * CSO Insights

24 Survey Verbatim The time needed to complete paperwork is huge. Closing takes an extra sales call. Time spent on each presentation has increased by minutes per call. My company recently gave us a support staff for digital customers and that has been a great asset. 24

25 Steps To Improve Sales Performance Training 75% of respondents have received specialized digital sales training 57% have received solution/consultative sales training 55% have received multi-product training Sales Operations 57% changed sales strategy 52% received a new sales compensation plan 25

26 A Tough Job Getting Tougher SMB Confusion Performance Pressure Revenue Pressure ROI Longer Sales Calls Admin Time 26

27 Our View of A Solution Selling on value rather than products Ease in period of new reps Planned churn and planned hiring Rebalancing sales channels Portfolios and bundles that make sense Lead generation process Sales support after the sale Commission that focuses on the right behaviors rather than bottom line management Focus on sales culture 27

28 Survey Verbatim It was easier when we were the only game in town. 28

29 Delivering Sales Force Transformation BIA/Kelsey plans to inject local sales analysis into all its programs and services: Conferences SMB Digital Marketing (Sept , Chicago, IL) Focused on tackling the new SMB marketing environment and transforming traditional media Consulting Sales auditing, training and consulting services: Customized sales transformation plans to deliver exactly the results our clients need for their sales teams to be successful Advisory Services Programs will deliver reports and case studies covering this subject for the whole local media ecosystem: Interactive, mobile, verticals, video, directories, social Ad Forecast Reports Track where ad dollars are flowing in local markets: Media Ad View reports drill down on all the spending in local markets so sales teams are well-informed and prepared for diverse group of ad prospects 29

30 Success for Our Clients Our goal is to help you be successful in the transforming marketplace. Webpages to browse: Advisory Services: SMB Digital Marketing, Sept , Chicago, IL: Media Ad View- Local Market Ad Forecast Reports: (Special Summer Offer: 2 Updates for Price of 1) Contact us to discuss what we can do for you. or call (703)

31 Thank You! BIA/Kelsey (703) This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any unauthorized distribution could result in termination of the client relationship, fines and other civil or criminal penalties under federal law. BIA/Kelsey disclaims all warranties regarding the accuracy of the information herein and similarly disclaims any liability for direct, indirect or consequential damages that may result from the use or interpretation of this information.

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