Transcript Accelerating Success Through Marketing PPT

Business Development 2010
Accelerating Success Through Marketing
Webinar Series: 1.0
Presented by Don Neal
December 16, 2009
Good Afternoon & Welcome
• The good news – 20% sales growth in 2010
• The bad news – what got you here won’t get
you there
• YOU can’t change anyone’s mind
If You Don’t Like Change
You’ll Like Irrelevance
Even Less.
General Eric Shinseki, Chief of Staff US Army
The fact Is:
• MSCA STARS have been cool
on marketing
• The need for marketing has
heated up
Survey Says…
What Grade Would Your Sales Force
Give Your Company On Their
Marketing Efforts?
A=1
B=1
C = 11
D=5
F=2
Our Objectives This Afternoon:
1. Get serious – adoption
2. Get ready – plan
3. Get started – take action
Getting The Most From This Webinar Series
• Your role – ambassador, coach, leader
• Learn to teach - socialize and sell; give this
presentation
• Dedicated notebook; take notes – convert
• Ask questions throughout – interact
• Lock webinars #2, #3 and #4 in on your
calendar
• Get sales involved
• Call in Q&A session
Where Is The Growth in 2010?
1. New construction: new / new
2. Switch / move business from a competitor
3. Up-sell / Cross-sell
What %:
1. < 20%
2. 20% - 50%
3. > 50%
Current Customers
• 65%+ of sales come from existing satisfied
customers
• 100% or more of profits come from 20-30% of
those customers
• Customer acquisition is six times more
expensive than retention
• A 5% increase in retention can boost profits
from 25% to 125%
Survey Says…
•
•
•
•
•
What is The Acquisition Cost For a
New Customer?
“Very good question”
“Not sure”
“Don’t know”
“A lot!”
$500
Customer Loyalty Profit Analysis
Profits from Reduced
Operating Costs
Profit from Price Premium
Profit from Increased
Purchases
Profit from Referrals
Base Profit
Acquisition Cost
0
1
2
3
4
5
6
Year of Customer Life
Survey Says…
65% Don’t Know the Latent /
Potential Value Within
Current Accounts!
What’s Holding You Back?
• Measuring the value
Survey Says…
Do you know the ROI for
your 2009 sales &
marketing investment?
100% Responded No!
What’s Holding You Back?
• Measuring the value
• The appropriate budget
Survey Says…
From 16% to 0.2%
Average 3.78%
What’s Holding You Back?
• Measuring the value
• The appropriate budget
• Dedicated marketing staff
Survey Says…
From 10% to 100%
Average 20%
What’s Holding You Back?
•
•
•
•
Measuring the value
The appropriate budget
Dedicated marketing staff
Marketing database
Survey Says…
50% have segmented their
database in the 20% 60% - 20% tiers
What’s Holding You Back?
•
•
•
•
•
•
Measuring the value
The appropriate budget
Dedicated marketing staff
Marketing database
A clear plan of action
Confidence and belief
What is Marketing?
A process that creates
conditions for a sale
to occur…and an ongoing relationship to
be cultivated!
Marketing Awareness – Decision
Continuum
Loyalty
Customer
Engagement
& Value
Purchase
Trial
Consideration
Interest
Awareness
Cost & Time
Survey Says…
5 Most Successful Marketing Activities:
1.
2.
3.
4.
5.
Cross-selling existing customers
STAR literature
Speaking engagements
Word of mouth / referrals
E-mail / trade shows
Identify the Top 10 Conditions
•
•
•
•
•
Awareness
Leads
Referrals
Cross-sell
Up-sell
Sales Objectives & Metrics
•
•
•
•
•
•
•
•
Profitable revenue growth
100% share of spending
Revenue / technician
Revenue / profit per location
Revenue / profit per customer
LTV
Sales /acquisition costs
Servicing costs
We Have 3 Basic Lever to Pull
1. Audience
2. Message
3. Media
Who Is Your Audience?
STP
Scoring and Segmentation
Current Value
• Incorporates monetary value, sales trends
and recency into a single score
• Based on core product sales only
Scoring and Segmentation
Current Value by Segment
• Scores clustered into three segments:
A = high value
B = moderate value
C = low value
Scoring and Segmentation
Potential Value Scoring Process
• Based on performance of site versus
peer group of similar sites
 Underperforming peers = higher potential
• Potential value score is a surrogate
for information to be gathered directly
from customers over time
Scoring and Segmentation
The Customer Database
Customer
database
(64, 831)
High
A
Medium
B
Low
1
2
C
Current
Value
Score
Potential
Value
Score
3
A1
A2 A3
B1
B2 B3
C1
C2 C3
Customer Segmentation
Potential Value
Current
Value
A1
A2
A3
B1
B2
B3
C1
C2
C3
Customer Segmentation
Total Sales
Ave. Sales/Site
Ave. Potential/Site
$6.7 MM
$18,527
$2,518
$3.0 MM
$8,248
$850
$1.8 MM
$4,947
$504
Total Sales
Ave. Sales/Site
Ave. Potential/Site
$1.3 MM
$667
$2,325
$3.9 MM
$1,285
$700
$7.5 MM
$1,509
$180
Total Sales
Ave. Sales/Site
Ave. Potential/Site
$405K
$203
$2,848
$576K $2.7 MM
$192
$55
$1,309
$109
Customer Segmentation
Enhanced,
customized
programs
A1
A2
B1
B2
A3
B3
Current
programs
C1
C2
C3
Are You Talking To Me?
The Message
Does it stick to
the roof of your
mind?
The Messaging Pyramid
Give you control
Headline
Proves a point
Facts
Reinforces the message
Anecdotes,
Examples &
Case Studies
Bottom Line
Creates a picture
Customer Benefits By Segment
Customized On-Site Audit Program
On-site Training Support
Customized Benefits
Dedicated Customer Care Account Manager
Customized Marketing Training Programs
Trade Show Specific STARS Offers
Ready to Use Customizable Marketing Materials
National Brand Awareness Promotion
A1
A2
A3
B1
B2
C1
B3
C2
C3
What is Your Media?
The Plumbing
Four Categories of Media
•
•
•
•
Paid
Shared
Owned
Earned
What Media Can You Best
Leverage?
•
•
•
•
•
•
•
•
Collateral
Signing
Vehicles
Direct mail
Uniforms
Word of mouth
Billboards
The web
Media Effectiveness
75.20%
Word of Mouth
Coupons
In-store Promotion
57.60%
TV/Cable
50.60%
Newspaper Inserts
Newspaper
34.40%
Radio
Yellow Pages
27.50%
Direct Mail
13.60%
Magazines
Internet Advertising
E-mail Advertising
Billboards
Most Effective Influencers
Are You…
• Serious?
• Better prepared?
• Going to get started ?
Next Steps
• Indentify who needs to be sold and on-board
• Identify the 2010 sales objectives and allocate
3% to marketing
• Assign resources – staff
• Segment your customer base
• Identify your STARS differentiation
• Involve the salesforce
• Begin developing your marketing plan
Thank You!
[email protected]
703-915-8421