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четверг, 21 ноября 2024 г.

What SMBs Want From Their Websites

 SMB owners say increasing search visibility is the top website improvement they want to make over the next year, according to recent research from Duda.

The report was based on data from a survey of 300 owners of small and midsize businesses (firms with between 1-99 employees) in Europe and the United States.

Respondents say their biggest website priorities over the next year are improving visibility on search engines (31% cite that as a Top 3 improvement they want to make) and boosting lead generation (30%).


SMB owners say their top priorities for enhancing the customer experience on their website are improving social sharing, advanced support, and personalized recommendations.


SMB owners say the top ways their website contributes to their business are lead generation, information dissemination, and direct sales.


SMB owners say the top challenges they face when trying to improve their website are training and implementation issues, content creation and management issues, and limited budgets.


About the research: The report was based on data from a survey of 300 owners of small and midsize businesses (firms with between 1-99 employees) in Europe and the United States.

https://tinyurl.com/wft8rr9z




суббота, 31 августа 2024 г.

Sales Process Model for Obtaining Major Commitments

 


This article presents a model for executive modeling of sales and how to track the progress. I hope to update it and do the next generation soon.

During the past couple of decades, I have refined my model for making large ‘sales.’ By this, I mean ‘sales’ in the generic sense, which is the act of convincing someone or an organization to give you something of significant value – presumably currency – in return for something offered. I sometimes refer to this as the “Ten Touch Sales Model.”

Examples of ‘sales’ might include:

  • Corporate Sales
    • Products
    • Services
  • Start-Up and Corporate Fund Raising
    • Venture Capital and Equity Placements
    • Debt Instruments
  • Not-for-Profit Philanthropy
    • Scholarships, facilities, and endowments
    • Special designations (patrons, benefactors, …)
    • ‘Goodwill,’ Tax Benefits
  • Government Contracts
    • Military
    • U.S. Government
    • Foreign Governments

These examples are where one party invests significant amounts of their resources – money, time, future compensation – in return for something so valued. These large ‘sales’ do not happen solely because of marketing, such as advertising, websites, brochures, and mailings. The scale of this transaction typically requires person-to-person interactions and an integrated strategic and tactical plan.

Having worked in the private, non-profit, and government sectors, I was initially surprised by how much the ‘sales’ activities are similar across quite diverse sectors. Seeking large donations for philanthropic activities at not-for-profits is nearly identical to fundraising for venture capital in a corporate setting. Convincing a potential customer to make a significant commitment to your products or services in the corporate environment is remarkably analogous to trying to launch new initiatives for government programs.

Typically, these ‘sales’ activities are complex and involve: person-to-person interactions, relationship building, education, removing obstacles, managing politics, and dealing with other parties that might influence the process.

My conviction is that by developing a simple yet robust model of this process, it is easier to manage and motivate ‘sales’ teams, develop action plans, and report on the results.

I initiated a variation of this 10 Touch ‘Sales’ Model when I was a university president and became involved in significant fundraising for the first time. I later refined that model while raising venture capital for Insitu and then again when we transitioned to product and services sales. I worked with my colleague, Steve Nordlund, while at Insitu to infuse some of his sales expertise into the model. Steve spent part of his career within the sales organization at IBM, and I am certain that some IBM concepts leaked into the model.

The model has its genesis from:

Making a Significant ‘Sale’ Requires 10 Touches

  • Touch is defined as a significant, value-added interaction that results in a positive step forward.
  • Each touch generally requires about 10 prior contacts.
  • Every ‘sale’ requires a managed ‘campaign’ for success.

The box above is a simple model that implies that the sales team needs to develop and execute an approach plan for every key ‘sale.’ It is likely to take 10 touches to achieve success, and each touch is likely to take 10 contacts. It’s not an exact science, and the steps don’t happen uniformly. But after every major success, I found, in retrospect, that it takes about 10 touches with about 10 contacts per each touch to be successful.

This model creates a simple mental image and allows us to directly address some conceptual issues in such a ‘sale’:

  • It involves ‘touching’ or human contact. Many sales teams would rather rely on sales collateral, advertising, or websites. This will not work for significant or complex sales, and one might say, “It’s a body contact sport.” Fundamentally, complex sales are accomplished by solving customers’ problems with your products or services. Hence, engaging customers to understand their business or situation is critical.
  • Relationship Building. Beyond the human contact, sustainable relationship building must occur and will pay dividends post-sale. Many factors play into relationship building, so it cannot be computed or forced. Individual chemistry, backgrounds, common skills, areas of understanding, style, and personality all play into establishing and building customer relationships. People like to invest, buy, and donate to people they like.
  • Planning is needed. It is a complicated, multi-step process that requires a strategic and tactical plan. Additionally, major (touches) and minor (contacts) activities need to be cohesively integrated. The timing for engaging with the right content and deliverables for customer interactions – touches and contacts – is the key ingredient of the plan.
  • Teamwork is required. It will be difficult to accomplish 10 touches times 10 contacts with only one person. In fact, it’s preferable to share the load among a variety of players to maximize the probability of success.
  • No Home Runs. It is unlikely that success can be achieved with just 1 touch … the baseball analogy is an out-of-the-park home run on the first pitch. In fact, in my professional career, I don’t recall running into a situation where I, or even a colleague, made the “perfect sales pitch,” and someone wrote a significant check on the spot. It just doesn’t happen. But for some reason, many organize their approach expecting this to be the case.
  • Focus Required. The sales model implies that there are so many activities that the sales organization requires focus. In fact, it reinforces the concept of a sales funnel. That is, the sales process starts out with many leads. At each step in the maturity of the sales pipeline cycle, it is essential to leave some these leads behind, thereby allowing more focus for the remaining potential customers with the always-constrained sales resources. The ideal process, therefore, effectively and efficiently narrows the potential customers down to the final set of those who eventually become customers.

Discussing and Reporting

A major benefit of the 10 Touch ‘Sales’ Model is that it provides an excellent framework for discussing and reporting on the status of the sales effort. My experience is that without such a framework and vocabulary, it’s difficult to discuss the progress on a particular sales approach. A common frame of reference allows a better discussion about the sales process and assures that everyone is on the same page, consistent with the mental model described above.

For example, when a salesperson or other colleague is getting ready to call on a potential customer, one can say, “Good luck! Hope you get to Touch 2.” This reinforces the need to build a relationship but also to maintain patience. Home runs don’t happen, and the harder one pushes for it, in my humble experience, the less likely it will happen.

As the relationship evolves and a series of contacts and touches are utilized, it’s helpful to remind those in the business development, sales & marketing, development & fundraising roles that a lot of activity must be done to accomplish the large ‘sale.’ Every day should be filled with actions to support the contacts to support the touches.

I also find the 10 Touch ‘Sales’ Model a useful way to track and report progress for various stakeholders like other employees and board members. To the right is a hyperlinked picture of a typical chart we used for the board and executive council, meaning the highest ranking VPs reporting to the CEO.

In this chart, we list all the opportunities vertically in rows, and in the middle, one clearly observes the 10 touches status as green horizontal bars. The farther the bar stretches to the right, the higher the touch level. At a glance, it is easy to see the relative maturity of the sales pipeline.

I remember at several board meetings when we reviewed the pipeline chart that some board members remembered the ‘shape’ of these lines from meeting to meeting. One remarked: Line item ‘x’ has been at Touch 5 for a long time, how come it hasn’t matured over the past 3 months? Another comment I remember was something like: Wasn’t line item ‘y’ at a Touch 7 last month, why is it down to a Touch 5?

We had interesting answers for each, but notice how it created an opportunity for a productive conversation. The fundamental understanding of 10 touches along with a pictorial representation made it easy to see the status of the sales pipeline and identify issues at the strategic and tactical levels.

Other columns in this Microsoft Excel chart include the Customer Segment, the Opportunity Name, Customer Activity Status, P-Go, P-Win, Point-of-Contact (POC) or Project Lead, and the Contract Values.

Customer Activity Status is basically a color-coded cell – blue, green, yellow, or red – used to give an overall indication if the trends are going well with the customer and the expected speed of closing a deal. For example: Ahead of Expectations, Proceeding as Expected, Some Warning Signs, or Stalled/In Trouble.

P-Go is the probability that a customer program or project will go forward, meaning the customer secures funding, gets required approvals, and completes the tender process.

P-Win is the probability that if the project goes forward, the customer will select you. So, the expected value of the opportunity is the P-Go times the P-Win times the size of the initial contract.

Under Contract Values, we usually kept columns for the projected size of an initial contract, amount of potential revenue this year, and long-term potential sales for this opportunity.

Statistics teaches us that the expected value of any particular opportunity is not likely to be useful because you never actually receive the expected value of a contract. You either win it, or you don’t. But over a large enough number of opportunities and with sufficiently good estimates for the probabilities, the sum of the expected values will trend toward a meaningful estimate of the expected value of the collection of opportunities.


The second Pipeline chart example was adapted for selling software. This report was actually exported from SalesForce.com into MS Excel with some macros. The first column denotes a new opportunity; the ‘Status’ column has some special purpose, in this case, the gray blocks refer to customers waiting for a new software feature; the ‘Stage’ column is auto-generated by the Milestone/Touch Stage number saved with the opportunity; the up arrow, horizontal arrow, and black dot reflect how many days since a Milestone number has improved with a number alongside; and, the Activities column shows the number of various contacts to that customer in the past 45 days where 1 gets a check and more a star.


Assessing Step Levels

I personally view scaling to the touch level steps to be relative to a level of effort toward closing a deal. Touch 1 is when a prospect is qualified, and Touch 10 is when the contract has been awarded and signed and the opportunity is virtually certain of turning into revenue. One can think of reporting on the touches as being a linear progression toward an assessment of percent to complete. However, common steps are required in each sector of the 10-touch process, as depicted in the hyperlinked chart at the right.

The first band of touches (1 through 3) is typically for qualifying the prospect, defining the customer problem or pain. And then, validate that you have a valid solution and that the customer is likely to find funds for such a solution. The second range (4 through 6) is generally where the hard work is done to shape the customer. The decision-makers are validated, relationships are built with key influencers, and technical obstacles/issues/unknowns are removed or mitigated. Finally, the third zone (7 through 10) is where we drive toward closure. Funding is secured, commitment is gained, and the contracting approach is finalized.


In the early steps, it’s important to assess this particular opportunity. One of the worst things is to believe a customer has the potential to close a deal, expend incredible amounts of effort trying to get to closure, and then discover that a deal isn’t going to happen and that this was a knowable outcome early on. It would be a horrendous waste of time, but the opportunity cost is likely to be even larger. That is, the wasted time prevents spending time pursuing leads/prospects that have a higher probability of closure.

Best Practices

During my many years of leading sales, development/fundraising, and financing teams, I encountered many best practices. Here is a summary:

  • Building Strategic and Tactical Plans. Every significant ‘sales’ opportunity requires a well-thought-out battle plan. The biggest opportunities are entitled to a full-fledged ‘war room’ with postings on the wall, full-time staff support, daily 8 am status updates, and team members flowing in and out as necessary. Smaller opportunities still need a planning cycle, and it’s up to the leadership to determine the level of effort for each opportunity. Some of the key aspects of these plans include:
    • Identifying all of the ‘touch’ points, ‘contacts’ interfaces, and key influencers.
    • Developing relationship maps for each of the key people within the influence chain.
    • Laying out any supporting activities that are needed, such as marketing, trade shows, and white papers.
  • Secure Funding for the Customer. Many times when making a ‘sale’ to an organization, the key person on the other side would like to buy your product or service but isn’t able to obtain the funds. The reasons could be an organizational priority, lack of visibility of the particular problem being solved, organizational log jambs, need for government approvals, or sometimes even that your particular customer contact doesn’t know how to get the money or exert influence within his/her organization. A sales team must solve all these issues and even help educate the customer on steps that need to be taken on his/her side.
  • Touch People Matching. One necessary trick in the bag is to determine who should make each contact/touch based on the plans above, the relationship maps, the hierarchies, and relationship impedance matching. Every sales process requires this to be carefully tuned and orchestrated.
    • For example, when involved in fundraising for the university, I was generally involved in the ‘heavy lifting’ at about Touch 4 and Touch 9. This gave the development team the opportunity to ‘build up’ the meeting with me so that it could be significant. If I made every call, contact, and touch, it wouldn’t be as special. It means when I help make ‘the ask,’ it can also be impactful.
    • In contrast, when doing fundraising for venture capital, the expectation is that I, as the CEO, am involved in most of the touches, contacts, and calls.
  • Relationship Impedance Matching. This concept is mentioned above and is where we try to match personalities and dynamics between the participants in a particular touch opportunity.
    • Occasionally, sales teams and organizations rely too heavily on personnel titles and hierarchy to determine who makes particular calls and touches. For example, I am ‘good’ in sales calls, but I just do not sync with certain people. It would be better to not use me in situations where I could aggravate the sales process. So even though I was the CEO, I made it clear that we should always use the best person for each ‘touch’ interaction.
    • This is really hard to do in big companies because org charts rule the day. One could argue it’s harder in engineering-type companies where IQs are usually more dominant than EQs. This should be underscored for both large and small companies. And, as we know, it’s more than just aligning the right technical-to-technical contacts, having the CEO make a touch at the right time, etc. … it’s also the non-business chemistry. Our experience at Insitu was alma maters, college football, hometowns, and the like.

My colleague, Steve Nordlund, has a cute anecdote: “I remember my meeting with a key admiral that ultimately championed us onto a certain class of ship in the US Navy. We were scheduled for 30 minutes, but the meeting actually went for an hour and a half. For all but 15 minutes, we talked about Apple computers after he saw my Mac laptop. Turned out, he was a closet Apple guy inside the DOD. He told me at the end of the meeting, he would get us on DDGs, and he did just that.” {Editor’s Note: This was Touch 3, and it still took us a full 10 touches, but the momentum was established.}

  • Advisory Councils. I have used advisory councils to great effect. These are talented, experienced people with diverse backgrounds who can monitor the pulse of customer segments, give advice on positioning, arrange for meetings for the sales team, determine if customer communications are sufficient, and in the event of a problem, possibly intervene with the customer.
  • Collecting Data Prior to Meetings. Prior to a major ‘touch,’ we try to use the opportunity’s relationship map and all our resources to determine the touch points and issues. It’s amazing how successful a meeting can be if the issues are successfully predicted and the materials are prepared that exactly address those concerns.
  • Vocabulary. Although I have learned and adapted this approach using the terminology of ‘Touches’ and ‘Contacts,’ I have since evolved for my latest business endeavor and call them ‘Milestones’ and ‘Activities’ to increase clarity. The second pipeline example chart above reflects this update.
  • Getting to a Quick No. It is important to trim down the opportunities to the one that is likely to close as soon as possible. Ten touches times 10 contacts per touch is a lot of activity that has to be organized. Disaster would be to get to the end and discover there is no match.

I remember when I was raising venture capital, and one friendly venture capital firm kept having me come back, make presentations, supply due diligence data, interface with colleagues, and channel my team to their issues. In the end, they said they didn’t want to make an investment because they don’t invest in that sector. Ouch! We wasted so much time. I asked them why they just didn’t tell me that at the start. They said, in effect, that they liked us and didn’t want to hurt our feelings. As can be imagined, their response was not appreciated.

Summary

Every organization in every sector needs to collect resources to execute its purpose. We have used the term ‘sales’ as the generic process for the collection of those resources. Herein a simple model is proposed and illustrated for discussing, reporting, organizing, and managing the ‘sales’ process.

https://tinyurl.com/bddhvr2f


Updated Sales Model with Seeq Process

This article is an addendum to the previous most popular posts on my site, The 10 Touch Sales Model. I modernized it to include my methodology as it has been adapted to my current venture, which is a SaaS software company with a hybrid Enterprise Sales and Product-Led Growth sales model

Updated Model

Initially, I used the term “touch” because the philanthropy field, where I first devised this model, used it, and the word reinforces the need for personal interactions. But I found the term didn’t encompass the business aspect, so I refined The 10 Touch Sales Model over the years. My latest update came as the CEO at Seeq, a software company that works with clients in large process industries like super-major oil companies, specialty manufacturing, and pharma & biotech. Although I’ve also used the terms stages and steps instead of touches in previous years, my current preference is the term milestone, which is more motivating to sales teams and more professional for business settings. It is also a better way to explain that moving from one milestone to the next is moving the ball to the next stage.

Another major change that I made was to start at Milestone 0 instead of 1. Think of M00 as the holding bin, the potential users. No contact has been made, but they remain possibilities. After M09, the client moves off the list because we received the purchase order.


During M00 to M02, the relationships are in the hands of marketing to qualify the leads. A sales exec picks up these accounts in M02 to further qualify the lead and decide if and when there is enough value to take the contract forward. To move to M03, however, the sales exec must receive approval because, at this point, the customer needs more assessment, and Seeq must invest engineering resources to support the initial decision-making process on the customer’s part. The accounts are further developed in M04 to M06. At M07, the RFP or acquisition process begins. The contract moves off the list once payment is made.

As I’ve stated numerous times, this model must be adapted to each company. For example, at Seeq, our software is state-of-art, and as such, we have little competition. So, our process is streamlined, but we still have to go through each step and create the touches and pass each milestone. Other companies may need to spend more time countering what the competition can do.

Account Tracking


At Seeq, we use the above spreadsheet to track the progress of each account over the previous 30 days. We use this internally to track contracts daily, but we also share it with our Board every month, which provides transparency and an outside perspective. The green flag to the left identifies new accounts. In the Stage column, we have a green progress bar with a number that indicates the current milestone for that account. The symbols in the Duration column provide a visual indicator of the progress. A green vertical arrow indicates the account is moving forward, a yellow horizontal arrow shows a stalled process, and a black dot means that little to no activity has been made in the last 60 days for that account. The Activities column shows the number of contacts made toward the next milestone. The green checkmark signals that at least one contact was made in the past 30 days, and the gold star represents that more than one contact was made. The Amount column represents the initial commitment from the customer. The final right column contains the source of the contact if known.  

Here are some descriptions for the pipeline chart:



We also provide another tracking mechanism for the Board:

By looking at the past 6 months, 30 days, and the current accounts, we track progress over time. To ensure transparency, we provide as much information as possible.

Summary

Converting sales opportunities into actual customers, especially for large accounts, requires time, commitment, and a dedicated plan. No solution fits every situation, so use my model as the basis for a customized plan for your business. Read Managing and Growing Customer Accounts for my recommendations on maintaining and nurturing the relationship.


https://tinyurl.com/4knppttz

четверг, 22 февраля 2024 г.

The 2024 State of Marketing & Trends Report: Data from 1400+ Global Marketers. Part 2


Written by: Maxwell Iskiev

 (Part 1 you can see - https://cutt.ly/vwB8PU1G)

Top Marketing Challenges Ahead

6. Marketers turn to social media targeting and first-party data in response to Chrome's third-party cookie phaseout.

Increased data privacy regulations have been a hurdle for marketers over the past few years, from iOS changes to GDRP and Google’s plans to phase out third-party cookies. 

With 84% of consumers in our consumer trend survey saying data privacy is a human right, public opinion is definitely shifting towards more safeguards around personal data.

On the marketer side, 84% say data privacy changes affected their strategy in 2023. This year, key changes marketers expect to impact them most are:

  • Google Chrome's third-party cookie phaseout (a concern of 47% of marketers
  • Apple iOS Privacy Protection features (41%)
  • GDPR (General Data Protection Regulation (40%)

The issue is marketers aren’t quite ready for this shift - 81% say their marketing activities rely on third-party cookies to some extent and around one in five marketers say they aren’t prepared to lose access to them.




Additionally, 76% of marketers say Google phasing out third-party cookies will make marketing more difficult. 

So what are marketers doing about it? 47% say their company is exploring alternatives to third-party cookies, with social media targeting and first-party data being the most popular solutions.


25% of marketers are exploring targeted social media ads, followed by collecting first-party data (25%), Google Topics API (21%), contextual advertising (15%), and universal identifiers (14%).

We’ll talk about the benefits of first-party data next, but to learn more about these alternatives, check out our blog post taking a deeper dive into each solution.

Personalized Marketing with First-Party Data & AI

Despite steps towards personalization and a lot of talk about focusing on the customer experience, we know there’s plenty of room for improvement. 

Our survey shows only 35% of marketers say customers get a very personalized experience with their brand and just 65% of consumers say the content they see from brands feels relatable. 


On top of that, most marketers lack crucial information about their audience, with only 65% saying they have high-quality data on their target demographic.

When we asked marketers what they know about their target audience, less than half know where they consume content, their demographic information, their interests and hobbies, products they are interested in, and insights on their shopping habits.


Why is this so important? Getting this data helps you create a truly personalized experience, which 96% of marketers say increases the likelihood of buyers becoming repeat customers, and 94% say personalization increases sales. 


To top it all off, marketers whose brands give customers a personalized experience are 215% more likely to say their marketing strategy this year was very effective compared to marketers at brands that don’t offer a personalized experience.

As we mentioned in the previous trend, data privacy regulations make personalization a little more difficult by reducing your access to data.

But that also presents a new opportunity with first-party data, which is data collected directly from your customers. Not only is it higher quality, but it’s also unique to your customers and your business, providing better insights and only getting more powerful with the addition of AI.

While we’ve all been using generative AI tools that leverage public information, the real magic happens when you combine AI with your own business data, allowing marketers to offer a highly relevant, personalized experience.

77% of marketers who use gen. AI say it helps them create more personalized content, personalize the experience customers get with their company (72%), improve the overall customer experience (71%), and understand their customers better (71%).


While the power of AI and first-party data is still yet to be seen, all signs point to this intersection being the key to a truly scalable personalized experience. 

And when it comes to making the most of your data, one key piece to the puzzle is having a single source of truth, so let’s go over some of the reasons having centralized and accessible data is make or break in 2024.  

7. Marketers still struggle with disconnected data, tools, and company siloes.

In last year's State of Marketing report, data-driven decision making was both a top tactic and a top challenge marketers were addressing.

And, while AI and other flashy trends might convince you otherwise, data is more important than ever in 2024. Still, marketing data, teams, and tools are disconnected. 

This makes sharing and getting necessary data challenging, prevents organizations from getting a holistic view of their data, and reduces data quality. We call this phenomenon a crisis of disconnection.

Around 1 in 4 marketers say it’s difficult to share data with other teams and get data they need from other teams at their company.


On top of that, 23% of marketers say the way marketing data is stored at their company is inaccessible and just 26% say their marketing data is fully integrated with the tools they use. Additionally, only 59% of marketers say the tools they use are interconnected. 

Our survey also found that marketers with connected tools, data, and teams performed significantly better in 2023. 


The Solution: A Single-Source of Truth

While 93% of marketers with a single source of truth for data say it is beneficial to their organization, only 65% of marketers actually tell us they have one. 

A single source of truth directly addresses the top challenges marketers see with sales and marketing alignment -  a lack of effective communication between teams, sales and marketing teams using different tools, and difficulty sharing data between teams are all key drawbacks. 


So what actually happens when sales and marketing teams aren’t aligned? Marketers say their budgets are wasted, sales and leads are lost, and customers end up getting a poor experience. And marketers who are aligned with their sales team are 26% more likely to say their marketing strategy this year was very effective compared to those who aren’t aligned. 


One highly effective way to implement a single source of truth is getting a CRM like HubSpot, which integrates data with tools and boosts alignment across teams. 

86% of marketers using a CRM say it’s effective at improving alignment between the teams and marketers with a single source of truth are 56% more likely to be strongly aligned with their sales team than those without one. 

Furthermore, 76% of marketers with a CRM say it is important to the success of their overall marketing strategy, and 57% say their CRM became more important in 2023.


Marketers who use a CRM are 128% more likely to say their marketing strategy this year was very effective compared to marketers who don’t use a CRM. And on top of that, 93% of marketers using HubSpot CRM say their marketing strategy was effective this year.

Lastly, AI is also very effective at improving connection, with marketers who use it saying it helps their organization share data more effectively (74%) and collaborate more effectively (73%).


What's Next in Marketing

When it comes to all the things shifting in today's landscape, the list above is just the tip of the iceberg.

For a detailed list of the top tactics, opportunities, challenges, channels, and content marketers will leverage in 2024, stay tuned for our State of Marketing Report -- which launches next week and will be linked to this page soon. 


https://blog.hubspot.com