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Treasure vs. Trash
Differing Perceptions of Marketing’s Leads -- And How to Get in Sync with Sales
by Jennifer Saunders, Vice President of Marketing, Huthwaite
There’s estrangement between Marketing and Sales in many organizations. A major reason for it is the chasm between them about the value of the leads Marketing provides. Marketing believes its leads can make a significant contribution to the sales process. The leads identify live prospects. The salespeople can target their efforts better. It took hard work and in some cases high cost to generate the leads. They’re to be treasured. The leads are to be trashed, the sales force feels. That's not the kind of company we're after, not the level of buyer, not the kind of value we offer, and we don't need leads anyway. Yes, there are times when leads are unwanted. The sales force may be focusing on penetrating existing clients rather than creating new ones. The sales funnel may be full on top and attention now is needed at the bottom. New markets are being developed, new products are being introduced. Though the leads may be on target, they can’t be followed up because the sales force is short-handed or needs training or new distribution channels are being created. The lesson here is Marketing and Sales need to work more closely to create synergy in the lead generation process. Indeed, if they're not in sync on lead generation, they most likely are working at cross purposes in other areas as well. Getting Alignment The foundation for a productive Marketing-Sales partnership is a common understanding about what a good prospect looks like. Every prospect is seeking some kind of value in a sales transaction. A good prospect is one looking for the kind of value the salesperson’s company can provide. Customers can be grouped into three categories based on their value expectations.
- The customer knows what it wants and wants it cheaply. Picture Wal-Mart. This is an intrinsic value customer. The lead is ideal for a sales staff that's geared for transactional selling and can make a lowest-bid offer.
- The customer is willing to invest time with the salesperson to create a solution that provides value. This is an extrinsic value customer. The lead will be welcomed by a sales staff that does consultative selling.
- The customer is looking for a partnership with the supplier. It's ready to change its way of doing business to leverage the supplier's core competencies. This is an enterprise value customer. The lead will be sought after by sales staffs whose companies can support this kind of relationship.
Some companies are targeting all three types of customers via segmented sales staffs. In these companies, Marketing’s leads should be segmented as well. Other companies may be focusing on only one type of customer. Their salespeople need leads that zero in on this type. A better knowledge of the customer types Sales is targeting will help Marketing to improve the productivity of many of its activities. It will replace one-size-fits-all messaging by directing product bulletins to intrinsic value customers and the newsletter to extrinsic value customers, for example. Where Does the Sale Start? Apart from agreeing on the type of customer to be targeted, the Marketing-Sales partnership needs to get together on where in the customer organization the sale should start. Huthwaite classifies customer people into three groups. There are those who the salespeople find accessible for beginning a dialogue that provides the bedrock information the salespeople need. They’re the Focus of Receptivity group. Then there are those who own the problem the salesperson’s value solution will address. They comprise the Focus of Dissatisfaction group. On top of the hierarchy are people who must give their buy-in and provide the needed budget and resources. They're the Focus of Power group. Different sales forces begin their sales efforts at different places. Wherever that is, the lead generation effort should match it. Where the Customer's At To provide maximum benefit to the salespeople, sales leads should identify the stage in the buying cycle where the customer resides. Customers universally go through the same stages on their way to a buying decision. First there’s the recognition of needs stage, where it becomes clear that change of some kind is needed. That's followed by the evaluation of options stage, where the prospect assesses the various available alternatives, which might include an in-house solution, a competitor's solution or doing nothing. Then comes the resolution of concerns stage, where the customer tries to gain assurance that the solution being offered will actually work. When the reps know what stage customers are in they can plan the right approach for their calls. The leads should include customers dispersed throughout the buying cycle to give the reps flexibility. And More The sales staff will value whatever additional information Marketing can provide. Where did the lead come from? A prospect who attended a company-sponsored breakfast is more valuable than one who left a card in a trade show exhibit fishbowl. Did the prospect visit the company’s Internet site? What parts of the site were visited? Which white papers were downloaded? What information did the prospect provide when registering for the company’s e-newsletter. (The registration process should collect as much information as possible, but not tax the visitor's patience with too many questions.) Leads from the Internet should be transmitted to the sales force daily for fast follow-up because customers asking for information over the Internet expect a speedy response. Whatever the medium used to generate leads, the process should be planned with an objective in mind. Different kinds of planning are needed to identify people who will be invited to a company-sponsored breakfast than those who will be targets of a direct mailing, for example. It goes without saying that Marketing and Sales should agree on how many leads are needed at any given time. Improved Marketing-Sales synergy can increase revenue by dramatic margins. Marketing will make significant contributions to customer retention and to shortening the selling cycle. Marketing will participate in revenue generation not as a communicator of value but rather as a creator of value. Reprinted from Marketing News “Integrated Marketing with Sales”. Used with permission.
Jennifer Saunders is Vice President - Marketing for Huthwaite, one of the world's premier sales performance improvement companies and creator of SPIN Selling, a sales methodology based on a 12-year research study. The company creates customized sales effectiveness solutions based on individual customer business objectives and works with customers to reinforce learning through coaching and in-the-field assessment. Contact us at www.huthwaite.com or call at 703.467.3800.
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