Recession: Reducing Costs Is Not Enough

Companies have survived recessions in the past, but most of them did not take advantage of such unique opportunity to change the way they managed business – specifically Sales and Marketing.

Sales and Marketing are the most inefficient business processes: less than 1$ in purchase orders out of 10$ in leads. That’s less than 10% efficiency!

Don’t compromise just by reducing operational costs and continue managing the old way. That’s what your competitors are doing too. Take it one step higher…

This crisis is also a timing opportunity to change your sales and marketing management methods from intuition based to a discipline based on structured processes monitored by measurable indicators, far deeper than just trivial quota attainment.

That’s the “Sales Engineering” concept. Leverage on our expertise in Sales Engineering to reduce cost of sales, reduce sales duration and improve your forecasting accuracy.

Visit http://www.abergman.com/ for more details.

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Cost per lead is irrelevant...

Do you establish a marketing budget for the year and increase it or decrease it the next year based on the performance of the business?

While spending tens of thousands of dollars on trade shows, workshops and marketing campaigns, companies almost never close the loop to determine the effectiveness of marketing outreach efforts.
They have no information regarding how many leads the program provided, how many of those leads turned into customers, and how much revenue was generated from that customer that they may have closed. As such, ROI from costly and significant marketing expenditures cannot be determined.

The truth is that sales people care very little about the cost of the leads marketing generates. What they really care about is how many of those leads will actually become viable sales opportunities. Cost-per-lead measurements are irrelevant unless we can answer another fundamental question first, “What is our rate of lead acceptance into the sales pipeline” and then “What is the cost per opportunity?”

Sadly, a lot of marketers tend focus on cost-per-lead because they really don’t know what happens to their leads after they hand them off to their sales teamWhile a strong vice-president, Marketing Director, or CEO should be paying close attention to these data, without a CRM (customer relationship management) solution and the appropriate reporting it becomes an impossible task. The result: instead of using vital and often limited funds to drive additional business from profitable marketing programs, companies just continue with business as usual repeating the same programs without measurement of success.

B2B Marketers must start measuring cost-per-opportunity now! It’s the one metric that can help you understand how well your sales team accepts and pursues leads. Ultimately, it shows if your leads are actually helping your sales team sell and if we’re positively contributing to their pipeline.

A CRM solution can help address such issues by deploying a structure that allows control. Ultimately such functions ensure that these corporate practices are part of a better sales and marketing behavior.

More on SALES PROCESS ENGINEERING & CRM ...

Does ERP apply to Sales?

ERP (Enterprise Resource Planning) software helps closing the loop between the shop floor processes to business planning by measuring the manufacturing stages from raw material, work in process, finished goods, payment collection and service.

Does the logic of ERP apply to sales too?
From an IT perspective CRM is to sales what ERP is to production.
Unfortunately this concept usually crashes, due to the traditional perception of sales belonging to a world of reaction rather than process oriented.
CRM software implementation may be a short term success but its long term adoption fail every day due to the above "software" approach.

The driving forces of CRM adoption:

1. Sales, not IT- must own the CRM.


2. Buying Process is first, only then Selling Process: know your customers buying processes - structuring the selling and marketing processes of your organization are just an outcome of it.


3. What gets measured is what gets done: define your KPI (Key Performance Indicators) in a simple and clear way. Do not add any new graph to your CRM dashboard unless everybody knows how to take correcting actions if it turns red. F2F (face to face) time with customers is your most valuable sellings asset. Reduce the reporting time (excels, powerpoint etc)spent by your salesforce. Management reports are dead: pipeline status, forecasts and won/lost assessments - among other KPIs - should be visualized on your CRM real time dashboards.


4. Invest in your dashboard analytics - not in gathering its data (a CRM technical functionality). Automate your workflows, such as price discounts authorization, forecasting overriding, red flags emails, commissions and entertainment expenses. Flow them streamily through your organization (a CRM technical functionality too).


5. Knowledge Center - a vital part of your CRM: "give me the information I need - now!". This applies both ways: salesforce to management and vice versa. We live in a Google era...where information is an on demand commodity, chasing data is wasting resources. Clear the knowledge traffic bottlenecks across your organization, as well as between your selling partners and your organization. An open knowledge flow between the main office and the sales channels - and between themselves - enriches the corporate selling IQ.


6. Leads generation is not the exclusive responsibility of the field salesforce anymore. Use automatic marketing tools like regular emailing, webinars, webadvertising, websurveying – just to mention a few.


7. "What's in it for me?". Adopting CRM by the salesforce - direct and indirect - is your ultimate concern regarding the success of a CRM project. Sales people are individualist, optimistic and self driven personalities. Educating them on the sales processes engineering and CRM advantages is an ongoing cultural change - certainly not a singular CRM technical training. If the sales person - direct or indirect - is not clear why adopting the selling process concepts managed by a CRM tool allows him selling more and getting higher commissions - CRM is at risk of failing.

ERP and CRM are both software but still two different animals - do not confuse them.
Think again of the 3 CRM ingredients: process, culture and people – to successfully gain an additional advantage in our daily differentiating race.

"Do what you do best and outsource all the rest"
Benefit by evolving sales management from an "art" to a discipline in your organization.
Call me at (Israel) 09-9502066.