At Perpetos, we see an increasing demand for support in establishing better pipeline visibility and more reliable forecasting. Isn’t this surprising, as many companies have implemented a sales process and CRM over the past 15 years?
They were driven mainly by the following challenges in random order:

  • Visibility on pipeline and forecast
  • Centralised database of prospects and clients
  • Marketing searching to add value and better understand the market
  • Streamlining pre-sales, sales and marketing activities

Above all, managers were looking for a repeatable process to improve their hit-rate and decrease the cost of sales.
But most of these companies have been facing a couple of negative implications along the way:

  • Inward looking organisation
    The ‘process’ forced people to compare and analyse which actions led to deals won or lost. To create a successful repeatable process, companies started pushing actions that presumably have a positive effect on the sales cycle. But those companies who already measure pipeline velocity and decision date visibility, know that the opposite is true in complex buying cycles. Sales will eventually loose focus on the prospect.
  • Subjective status and success probability
    I sometimes see implementations where ’sending a proposal’ is being linked to the degree of probability to win the deal. Could anyone explain why sending a proposal after a demo will increase chances, let alone give an indication of the prospect’s decision date? This is another myth created over time by people designing processes.
  • Unreliable management reporting
    You only have to look at the amount of deals expected to be closed the last day of a quarter according to CRM data to see what I mean. A CFO recently told me that he is typically using between 22 and 28% of the sales forecast for his budget ..
  • Sales management increasing pressure on their team
    Opportunities being created upon or just before closing, is only one of the many symptoms I see time and time again. Sales are hiding opportunities: they are afraid of what full openness might do tho their targets and/or pressure from management.

The sum of all the above is that co-workers in many organisations are:

  • Managing spreadsheets and reports
  • Managing the end of the pipeline instead of the entry
  • Under pressure for unrealistic hit-rates because of a starved pipeline

I will come back with some simple remedies and solutions for the above issues in future blog posts.
What is your experience?

Join the club. A recent Marketingprofs survey among B2B Marketeers reveals that ‘producing engaging content’ today is their biggest challenge. ‘Contagious content’ is indeed another Marketing buzzword. But a crucial one if you want your company to stand out in a 2.0 information era! Have you managed to convert from a push to a pull lead generation strategy?

How does the quality of content impact your business

Traditional patterns have changed, sales no longer being the primary source of information to your prospects. Information today is everywhere and buyers go looking for it out there. It is precisely Marketing’s role to make sure that suitable and catchy content is available for potential customers in every phase of their buying cycle, right at the places where they expect to find it. Educate the market through contagious content and make sure your company will be top of mind as soon as potential clients get ready to buy. How will engaging content impact your business?

  • Become a thought leader
  • Drive web traffic

But most important:

  • Lower your lead generation cost and boost the amount of qualified sales leads
  • Improve the activity rate of sales
  • Increase the hit-rate

Creating value content: where to start

A few guidelines to get started creating demand through content:

  • Contagious content is in no way commercial
    Don’t write about products and features, nor about yourself. Educate your market and start a conversation
  • Write on topics that the greater part of your prospects will embrace
    Focus on challenges that your target audience will find interesting, skipping niche topics
  • Write as an advisor
    Make sure all content will provide actual solutions to your prospects’ business challenges
    Put yourself in their shoes and feel your buyers’ pain!
  • Prove the case
    Make sure to prove your point through customer references and statistics
  • Keep in mind that buyers go through different phases when buying
    No shop owner will be interested in the looks or features of your pay terminal before he even considered he needs one! Make sure potential buyers find content to suit their needs in any of their buying stages

One of our customers saw a 28% increase in qualified leads over a period of 6 months after changing the way they comunicate. Looking forward to reading about your challenges and results with content driven demand creation!

I regularly hear HR managers complain about the lack of impact they have on corporate decisions. That they’re not taken seriously. Being informed way too late of decisions to act pro-actively. That they should be part of the executive committee because people are the most important assets of the company. Could it be that HR is stuck in his own theories and all together are enclosed in their own HR living environment?

I see 3 reasons which I will support by real life examples:

  1. Many lack the necessary business insight to serve as a sounding board for line management. Therefore they behave as “prescribers” to questions from line management. Yey these questions are usually too symptomatic due to the daily ins and outs involvement of managers. A good example is a sales manager asking for closing skills training because of a too low hit-rate and/or decision dates continuously shifting over time. Result a closing skills training is being organized. Yet a lack of closing skills is in less then 5% the real cause of the mentioned problems. The solution should have been HR offering to analyze the root cause and to propose solutions with a lasting impact. This of course is only viable if HR is taken seriously thanks to their business insights.
  2. Secondly, I see HR departments with new, good in itself, theories and plans that are too heavy and difficult to be implemented on top of the daily work that unfortunately does not stop because of a change process. This in turn leads to frustration in HR departments because they get too little involvement of line management to implement the necessary changes. These projects are usually not enough adapted and pragmatic to the real world which leads to quite large resistance. This in turn leads to a too low adoption rate and results quickly fading out. A good example is some of the competence and growth/evaluation practices and programs put in place. Heavy bureaucratic processes with formalized timing and reporting from managers to HR. Automated in user unfriendly intranets. Seldom based on simple deliverables and a common language which improves day to day communication between manager and employee. Let alone creating an environment stimulating people to give the best of themselves in order to create a chain of actions leading to optimized business results.
  3. HR does too little effort to understand and create insights on management level in cross departmental issues and linkages. Their distance to the daily ins and outs puts them in the ideal position for those insights and to share these with their colleagues. Of course, they simultaneously need to propose pragmatic solutions. A good example is a solution consisting of building sales ready deliverables combined with sales training, coaching and upgrading sales meetings to becoming an experience sharing platform. This solution require budgets from 3 departments in a lot of large organizations.  Training from the HR budget, deliverables from marketing and coaching/consulting from the sales budget. I’ve seen very few HR people who took internal actions to launch such a project, let alone understanding the business need and internally sell such an integrated approach.

The above shows in a painfully obvious way that a lack of operational knowledge and insights on the one hand, and implementation focus on the other hand forms the basis of the problem.

Some possible actions which can resolve the problem:

Start by breaking down the HR walls. Translate theory into pragmatic solutions feasible even if it sounds like a bad idea from the theoretical point of view. This means that the broad and deep use of the skills and tools must get the upper hand on the theoretical appropriateness of the solution.

Focus on gaining more business insights through more time to spend in the workplace. Divide your time outside the company premises by not only networking and studying in HR circles but also spending a lot of time in broad management environments such as the vMA (management association in Flanders) to name only one. It will allow you improve your operational knowledge as well as being able to toss of your ideas and experience with line managers from other companies.

Only then will HR:

  • sufficiently understand what really lives on the floor;
  • get broad support from the staff and get surprised by the acceptance of their projects;
  • asked to be part of the executive management team;
  • and create lasting impact thanks to their efforts.

How to questions from readers and customers prompted me to write an add-on to my previous post on funnel management.

The first thing that has to be said is that few companies have changed their sales approach in an appreciable way over the last few decades. Yet buyers are seeking to buy and not to be sold to for over a decade.

I still see sales trainings and managers telling their sales and to look at the sales cycle and behave in an way that is inward looking. Sales force automation (SFA) and customer relation management systems (CRM) haven’t really helped to convert the front-line in an outward looking mode and helping people to buy from them instead of being sold to.

I was pleasantly surprised to see one of the outcomes of the 2009 sales conference in Miami where the buying cycle emerged as the new standard for funnel management. I trust this to be a stimulus for all  the Perpetos customers bringing this into practice since 2005. But their is still a long way to go. It is indeed the best way to get subjectivity out of your funnel, yet it demands a mind-shift of the whole sales organisation and another way for management to coach and interact with their sales team. They all must learn to ask way more questions and ‘really’ try to understand what the customer is saying.

The principle is simple: Ask the customer questions which allows you to know the readiness to buy of each individual in the decision making unit (DMU), align them all so that they move through the buying cycle in a synchronised way and adapt your actions to it.

A couple of tips to improve your funnel management:

  • Stop tracking and discussing sales steps and process. Start using readiness to buy phases based on reactions and answers to questions from each individual involved in the buying process. Ideally start using the Buying Clock. Using the time on the clock is an easy way for implementing a, consistent used, common language.
  • Are we asking for and tracking the next step or are we engaging the sales rep to first decide on the next objective to facilitate the buying process on a project level before deciding what the next step should be, when and with whom? Do we track this in our funnel?
  • Track the pain level of the customer by also knowing the impact of the challenges on the customer. Is their a compelling reason or an urgent need?
  • Has your sales rep access to the decision maker? Is he continuously involved in the process and kept up to date by the sales rep?
  • Is the go-live date the most important date we discuss with the customer? Is it a fixed date and why or can it easily be postponed?  Do we know and  are we tracking the go-live date?
  • Has the customer actually confirmed your solution fit and did we postpone drafting the proposal until that moment?
  • Split the weight % in 2 distinct ones: project%=what is the probability of the customer actually buying and win% = the probability of you winning the deal.
  • Are you tracking the most important mandatory buying criteria and what is the perceived scoring of the customer compared to the competition? Do you discuss ways to influence these buying criteria?

Finally:

  • Convert your weighted funnel in a scenario based funnel on which you coach the sales rep.
  • Engage in vivid 1:1 discusions with sales to set a continuous improvement process in motion.

Your benefit and result: An accurate forecast with a highly improved visibility.

The basis of a good quality funnel is one which is based on prospect readiness to buy!

The most often used funnels nowadays are still based on subjective input from sales. It’s amazing to see how many managers are using such a funnel to predict revenue and use it as the basis for budget exercises.  This is the funnel that most people use yet it is a very outdated model. This type of funnel is an artificial invention taking the eye away from the prospect and puts the focus on sales actions.

The fact that doing something is putting the opportunity on a given point in the funnel is a totally wrong assumption. The thinking is flood. You can give company and product presentations, demo’s, send proposals even when asked, etc without achieving anything. The question is am I doing something which corresponds with the readiness to buy?

Here are the biggest funnel mistakes:

  • input based on subjective sales rep input. The gut feeling of sales people in terms of funnel management are seldom correct because:
    • they are to closely involved to have an overall view
    • most sales are to much influenced by the opinion of their ’sponsor’ and/or last sales action
    • they have too little visibility on what’s happening at decision level
    • not enough, if at all, contact with the ‘real’ decision makers
  • individual forecast building by using a percentage win-rate on each of the opportunities. Most funnels at sales rep level and even on corporate level have to little opportunities at the same stage with too much variation in size
  • defined by selling activities: performing activities is not necessarily moving the opportunity closer to a decision
  • lack of common definitions
  • imposed as a reporting tool and not as a day to day self-coaching tool: The funnel will never be up to date or based on careful thinking if it is not in a format, and incorporated in the way of working, which influences the agenda and behavior of the sales rep
  • tracking and reviews based on must win deals resulting in starved pipelines and pushing salespeople to do the right things at the wrong time.

Helping management and the VP sales to more accurately predict the revenue is to convert the funnel into a buying funnel which tracks the readiness to buy of the opportunity. This is even more true in more complex sales with quit an amount of people involved in the decision taking. Because each of the involved people have their own agenda and readiness to buy which must be synchronized in order to move the opportunity closer to a decision in the quickest way possible.

The mental stages a buyer is going through:Opportunity buying clock These phases are universal and cultural independent.

  • execution of existing solution and not interested in any information or offering in that area
  • executuion and interested: something triggered the person to want to know more about something
  • Field of Tension: Starts with an admitted pain which evolves over time into an urgent need. This results in the decision to buy something
  • Market Research: The prospect goes out to the market to search for potential solutions and vendors
  • Hesitation: This phase starts when the prospect thinks to be convinced to buy what from whom. At his point the focus shifts from looking to the benefits and advantages of acquiring the solution to all what can go wrong after having bought.
  • Implementation: This is the period during which the solution is being implemented.
  • Execution: The solution is in full use until the cycle starts all over again.

Perpetos has converted these phases into a 24 hour buying clock™.

Some of the reported results you acquire by this system are:

  • a true shift towards customer focused thinking and acting
  • an objective pipeline with a much better accuracy
  • improved internal communication based on the hours of the clock
  • lower cost of sales (i.e. less multiple people meetings because sales and pre-sales exactly determine when their presence is needed)
  • improved hit rate
  • more balanced pipeline

Let my know your experiences!