I just viewed a great online video that deserves its own blog post. The speaker is Barry Trailer, Chief Research Officer of CSO Insights (now a division of MHI Global) and the topic was the CSO 2016 Sales Best Practices Study Results. Barry and his colleague, Jim Dickie, have been following and reporting on the best practices and outcomes from sales organizations for over a decade. The information is always interesting and informative and as I will share below, it can help transform both the marketing and sales organizations.
As a B2B marketing professional, I make it a point to follow and understand what my clients (B2B sales organizations) are doing and thinking. This is important for you, as well. You may think of your customers as being the end users of your products or services, but in fact, if the sales team isn’t happy with you, life can be very unpleasant.
So what did Barry say that was so interesting? You can see for yourself, but here are four key takeaways that stood out for me:
1. 94% of world-class companies indicate that sales and marketing are aligned (vs. 34% of all respondents). To be sure, sales and marketing alignment is somewhat subjective; there are no hard and fast metrics that prove or disprove alignment. However, if you don’t have it, you know it, and it is definitely costing you revenue and productivity.
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2. 84% of world-class companies have specific criteria as to what constitutes an acceptable prospect. This has been a recurring theme with CSO and Trailer. The lack of well-defined criteria causes many problems, including:
- Lost opportunity as reps forgo qualified prospects because they spend so much time chasing unqualified prospects.
- Missed quotas due to reps spending time on potential deals that are actually undoable.
- Discouragement and burnout from what would otherwise be effective reps.
- Failure to accurately forecast revenue, leading to all types of problems with the C-suite, partners, customers, analysts, etc. (especially for public companies).
Many marketing departments are great at the “quantity” aspects of their jobs. If the sales department says it needs X number of leads to make its number, marketing salutes and delivers X number of leads. However, if our colleagues who carry business cards with a “sales” title believe that what we are giving them is a bunch of non-qualified, uninterested and non-relevant tire kickers, it makes for an unproductive and tense relationship.
Granted, the sales folks may not know exactly what they want or may have unreasonable expectations – but it is better to be upfront and address the issue early than pretend it is going to work out downstream.
3. Life gets really good when you move up the value chain. When you can move the perception of how your clients see you from a vendor to that of a consultant, contributor or trusted advisor/partner, everything changes in your favor. The image below (sorry for the poor quality) shows the differences in how sales reps approach the account and what they bring to the table.
It requires a lot of mental energy and elbow grease to move up the value spectrum, but the rewards are great in terms of referrals, access, repeat business, trust and credibility. Equally important is what you will get less of: competition, sales cycle, price sensitivity and the importance of any particular feature.
Let’s use the last point as an example. If you are a trusted advisor/partner, contributor or consultant, it is great to not have the specter of your competitors coming out with a new feature that could cause your clients/customers to abandon you. Your higher-value relationship is a barrier that can prevent other companies from taking your revenue.
4. How you sell is more of a competitive differentiation than what you sell. You’ve probably heard this familiar refrain from salespeople and marketers alike: “Our product isn’t good enough to sell in this market,” or something like this. But the real problem may be that you are selling at the lower end of the value chain and being perceived as a commodity supplier, where sales cycles are long and price pressure is greatest. As Barry put in, the CSO definition of selling is “Establishing and elevating relationships over time.” Just remember the formula Elevated Relationships = More Revenue and More Profit.
In the spirit of not providing information without some practical application, let’s talk about what you and I should do as a result of these three takeaways:
- Get aligned. If you want to be a world-class company, you need to do what 94% of them do: gain alignment between the marketing and sales organizations. For some relevant info on how to do this, read my article about marketing and sales alignment. Interestingly, this post was published four years ago and has an Olympic theme.
- Get specific. While alignment is somewhat of a qualitative attribute (you know it when you experience it), you have to be very quantitative when it comes to establishing lead criteria. You need to create a service level agreement (SLA) that is specific about lead quantity + attributes.
- Get close. By this, I mean that you should modify your marketing and selling processes to intentionally move up the value chain and get closer to your clients/customers. You may not be able to leapfrog levels – customers that now view you as a vendor may not instantly accept you as a contributor or partner – but you can begin the journey right now.
Any one of these three strategic actions can have a strong positive impact on your revenue and effectiveness. Combining all three can be transformational.