It seems there is a new sales methodology popping up every week. I have been fascinated by sales methodology since 1990 when I first learned about different types of closes (contained choice, direct, assumptive, the Ben Franklin close, etc.), so I read almost all of them.
Despite all of the technology (SFA, CRM) and methodologies, something is missing. My mission is to help you breakdown and simplify the processes already in use by your company and help you bridge the gap that exists between marketing and sales.
First, a simple sales process:
The problem, as I see it, is that marketing starts and stops at #1 and sales starts and stops at #5.
A white paper I authored (Point C: From Chaos to Kickass) provides real, detailed data (from one of the world’s largest software companies) and analysis, though the names have been withheld to protect the guilty. Basically, that company’s marketing department is providing Step #1 leads (they found a supposed pain or need because someone raised their hand and asked for a white paper) and sends those so-called leads to sales. The fact that only 1.28% of those leads are, actually, "leads," is inconsequential because marketing gets paid on lead quantity, not quality.
And the joke about sales is that they only accept a lead when all they have to do is stop by and pick up the purchase order on the way to the golf course. They get that reputation because they are driven by quarterly results and thus have no patience for longer term or what they sometimes call, "general interest leads." Specifically, we have turned over leads to multiple client organizations that include the right company, the right contact, agreed upon pain, interest in doing something about the pain – but no defined budget or timeframe. The result is that those leads are largely ignored. I believe that many sales reps have lost the art of turning interest into revenue. And fewer than 65% of reps make quota as a result.
To break the sales process down further, there are three conditions of need (three reasons why anyone buys anything):
Someone downloading a whitepaper may have a “fear of loss” condition, but it is more likely that they have an “opportunity to improve” condition; or what I call, "selling into the rainbow" – with little chance of success. So, when you uncover need, you must also get agreement that there is need and find a compelling reason to do something about the need in order to earn the opportunity to present a generic solution (one of the most important steps and frequently missed by sales as they rush to Step #5).
Inbound marketing strategies result in a greater number of poorly qualified so-called, "leads" being sent to sales faster than ever before. If you wonder why this is not resulting in more revenue, take a step back in your process.
Dan McDade is President and CEO of PointClear, LLC, a prospect development firm that helps B2B companies drive revenue by nurturing leads, engaging contacts and developing prospects until they're ready to purchase. The Sales Lead Management Association named McDade one of the 50 most influential people in sales lead management for the last four consecutive years. His first book, The Truth About Leads, is a practical, easy-to-read book that helps B2B companies focus their lead-generation efforts, align their sales and marketing organizations, and drive revenue. Read McDade’s blog (ViewPoint l The Truth About Lead Generation) or contact him by email at dan.mcdade@pointclear.com. Follow him at @dandade on Twitter.
Learn more about building a healthy pipeline in our ebook at the button below.