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There are two types of accounts, regular and strategic. Both are important and need to be given the time and resources to be successful but strategic accounts has a larger impact on the company and will get some extra attention. The important thing to remember and be disciplined about is that NOT every account is a strategic account. The most important consideration for what makes a strategic account is whether the account you are working with desires a lasting win-win relationship with your company.
Choosing a strategic account
Accounts that are identified to become strategic for the company must be working for a common goal that will bring growth to both organizations. You need to think of choosing these accounts as a business initiative versus a sales initiative. If both companies aren’t committed to the partnership then you shouldn’t move forward.
Things you should put in place for a strategic account.
- A cross functional team for communication
- Full executive endorsement
- A clear measurement of growth and success.
Working with Strategic accounts
When you have identified a strategic account, the real work starts. Working with and managing the process of gaining a strategic account takes time and resources that you may not be familiar with. Because this account will have a long tem impact on your company, special attention needs to be paid to the process to insure everything falls into place as needed.
- Account specific value proposition
- Find out where each company sees the business relationship today, one year and five years out.
- Create a joint action plan that holds both companies accountable for success
- Roadmaps and future plans must be shared
Both companies should have separate sets of metrics, one that can be communicated with internally and one that will be shared in conjunction with the strategic account.
Internal measurements
- Revenue
- ROI of the project
- Margins achieved
Joint metrics
- ROI from joint investments
- Completed goals in the action plan
- effectiveness of the communication channels
If the strategic account falls apart then it’s safe to say that it wasn’t the right company for your business to be working with. If either of you are not achieving mutually beneficial goals then the relationship needs to be re-evaluated, fixed or disolved. This will happen as you work with more strategic accounts but should be minimized as much and as often as possible. Every strategic account that falls apart should be systematically analyzed to see the causes and understand what and more importantly when these red flags could have been identified to make the needed adjustments in the future.
How a few shifts in your sales process can have a huge impact on sales revenue.
I read a great article on Inc. yesterday on 12 ways to increase sales. The author Geoffrey James pointed out some of the most important things a salesperson or sales manager should do to increase sales in 2012. He hit the nail on the head when it comes to why these 12 ways to increase sales revenue will work, I want to tell you how to do it in 8.
1. Reduce the number of opportunities you pursue. It’s not a numbers game. By focusing your sales energy on fewer opportunities that have a higher chance of closing, you can give these customers more of your time to move the deal along. Leveraging traditional sales drivers and trigger events you are aware of, you will know which prospects have a much higher percentage of closing.
2. Increase the percentage of time you spend selling. There will always be admin work. As a salesperson you may not have the ability to hand your busy work off to others but there are ways that you can still increase your time selling. Most sales people on average spend 10hrs a week researching prospects. By leveraging technology and sales intelligence you can cut that amount of time in half and free up some of that precious time to be talking to prospects and customers and sell more.
3. Stop buying technology because it’s cool.
Stop spending your money on the next shiny object. Invest in technology that is actually going to help you sell. Focus on tools that will provide you
- Trigger events that effect your prospects and customers
- Valuable connections through multiple social networks and existing business relationships
- More personal insights that turn your CRM contacts into people you can relate to and add context around
- Highly targeted and intelligent prospect lists
4. Terminate weak engagements–politely but immediately.
Just as your company should have a solid lead qualification process to identify new opportunities you should spend the time to disqualify deals. A sales team should know what their ideal customer looks like and focus their energy on them. If a prospect doesn’t fit the mold, quit trying to force them into it.
5. Hone your lead generation effort.
Sales people need to understand the art of lead generation is shifting to an online world. Stop waiting for your phone to ring and look for the people you can help in real time. Social networks are a goldmine for the socially savvy sales rep. If you know what you are looking for, finding new opportunities with social media isn’t difficult. For example our sales team found this update on Twitter and jumped in.
What’s a good company database alternative to Hoovers? They don’t seem to want to sell me anything.
— Ross Mayfield (@Ross) January 10, 2012
These types of updates are something your sales team needs to be on the look out for. After 24 hours, Hoovers still has not replied to Ross’s update on Twitter. Listening is key. Leveraging connections and personal insights our sales team was able to connect and help Ross with his business needs.
6. Don’t focus on the gatekeepers.
Understand who the real decision makers are. Get to know them as people instead of the contact that makes decisions at XYZ company. Stay engaged with them during the sales cycle by engaging with them outside of the actual sale. Connect with prospects on social networks and try and help them with other questions they may have and add valuable insights on their industry.
7. Stay on top of your opportunities.
Build a watchlist on your opportunities so you can be fed news and other alerts to things that are changing within their company. Leveraging technology to keep your finger on the pulse of your opportunities will insure that nothing slips by you and you can even stay a step ahead during the sales process.
8. Outflank your competition.
I say it during my speaking engagements: Be different, Be better. Your prospects are getting 100+ emails a day and called as many times a week. This tactic may work some of the time but don’t do what your competitors are doing. Stand apart from them by leveraging your connections to get the introduction, connect with the decision makers on social networks to have more engaged conversations in a medium that they are already spending time in.
It works!
It’s a new year and you have new sales goals but you can’t dismiss the facts gathered from 2011. 92% of executives you try to contact will not return your phone call. You should already know why, unless you have an amazing reason for them to listen to your message, they will delete it in the first 5 seconds. If you don’t give them a compelling reason to spend the time to call you back then you get forgotten about.
When calling on a prospect for the first time there are some simple steps you should take to make sure they return your call.
Leveraging existing connections
When doing your 2012 prospecting, make sure you focus on people you are connected to. Your customers (if they are happy) should be willing to make introductions or serve as references to other companies that you are trying to engage with. 84% of the people you try to connect with leveraging an existing connection will respond. If there is ever a more compelling reason to stop dialing for dollars, this would be it!
A Little Research Goes a Long Way
Do your homework on the person you are calling before you pick up the phone. Stop treating the names in your CRM as contacts and start thinking about them as people. If you dont have a prospect watchlist created for your prospects, do some research on them through social media. Are they active on networks like LinkedIn or Twitter? What are they saying. I’m sure there are some good pieces of information you can gather that will give you better personal insights on them.
Warm up every cold call.
Before calling, connect with the prospect on social media or by sending them the tried and true email. Send a short, personal letter saying something like, ‘I’d like to introduce myself. I’ve noticed your company has been actively growing the size of your widget factory and I’d like t know if I can help with anything’. Make sure you enclose something of value and indicating that you’ll be calling in a few days to gauge interest. Then, promptly follow up.
Build a conversation about the prospect first.
Building from that last two, you should know about your prospect as a persona and know about their specific business needs. Using the trigger events you monitor around their company and industry coupled with what you have gathered about the individual, structure your first conversation all around them. I’m not saying to avoid a sales pitch but make sure your pitch is completely focused to them and their company. Talk about what you have discovered and see if there is anything you are missing. Highlight how your product has helped companies like theirs recently and see if they are in a position to look at it in more detail and find additional value.
Closing out the year we wanted to look over the content that you have found most interesting and shared most often. 2011 was a big year for sales intelligence and the use of technology by sales teams to be more effective in finding new opportunities and closing more deals.
This is the list of the top 25 sales intelligence posts that people read during 2011
- 25 Influential Leaders In Sales
- How Science is Changing Sales As We Know It
- Why Cold Calling is the Bottom of the Barrel
- 40 Social Media B2B Infographics
- Gamification of the Sales Process
- 10 Reasons You Need a LinkedIn Profile
- 15 Posts on Why Cold Calling Is On Its Way Out the Door
- The History of Apple CEOs
- Bridging the Massive Social Media Gap Between Sales and Marketing
- Have No Fear: Why Sales Teams SHOULD Be On Social Media
- Creating a Sales Plan and Executing It.
- 10 of the Best Sales Sites
- The Death of Cold Calling – Ending the Debate
- 10 SlideShare Presentations That Will Make You a Better Salesperson
- Why Social Media is Important to the Sales Process.
- Top 10 Reasons for using Facebook for your Business
- 20 Awesome Sales Posts You Should Read
- 5 Great SlideShare Presentations on B2B Selling
- The Social Media Landscape – Facts and Figures for B2B Sales (Infographic)
- Should Sales People Be Blogging?
- The Problem with Big Data
- The Future of Social CRM
- Do You Listen to Your Customers?
- 10 tips for Driving Sales Productivity: Tip #1
- A Dip Into Sales Data vs. Sales Intelligence
This is part two in a study we created along with Focus.com to discuss the best practices to leverage social media for sales teams. After talking to eight of the top thought leaders in sales training and sales technology we wanted to bring their insights to you. This is going to be a 3 part series that covers what successful salespeople are doing to leverage social media in lead generation and accelerating their opportunities. Some of these experts are listed in our post on the 25 most influential sales leaders. Much appreciation to these experts for taking the time to address the question “How do your successful salespeople leverage social media for selling?“
- Miles Austin
- Marge Bieler
- Dave Brock
- Barbara Giamanco
- Matt Heinz
- Carlos Hidalgo
- S. Anthony Iannarino
- Craig Rosenberg (AKA The Funnelholic)
Sales Intelligence drives revenue.
“Based on the 12 ways sales people leverage the internet it is clear that B2B sales teams spend a lot of time researching prospects and customers on the web and social networks. It’s no longer an issue of not having any information ahead of time, the issue is that there is an overwhelming amount of personal insights available. Sifting through it to find the relevant information you can act on today appears to be the challenge at hand. Sales intelligence drives revenue by feeding sales people trigger events and insights within a company or contact.” (Koka Sexton)
Make the most of a B2B Social Networks more advanced features and functionalities.
“On the B2B side of the house, LinkedIn is the networking tool in the US with some 130 million members of the 100 million-plus community. Many people know how to invite people to their network, but they usually do not know what to do after that.”
Here are a few of the ways that savvy B2B salespeople will leverage B2B social networks:
- Advanced people search: Create prospecting lists based on the criteria of your ideal buyers. Save the list, and LinkedIn dynamically updates and alerts you weekly to the new people matching your criteria who have joined the network. Each week, you can then plan your strategy with respect to how you’ll approach the initial interaction.
- Applications: Use the applications to add video, compelling presentations, white papers and case studies or sync your blog posts to your profile. Keep your content fresh and people pay attention. In the past eight weeks, I’ve secured four paid gigs and in every single case, I was told it was because my profile stood out from the rest and because they liked the video. It is all about engaging people and enticing them to want to know more.
- Polls: Create a poll to gather real-time trending information that you can share with your prospective buyers.
- Status updates: Ongoing status updates that are ‘relevant’ and provide value to others keep salespeople visible; because at the end of the day, it is all about visibility.
- Groups: Leveraging groups (the right groups!) gives you an incredible opportunity to demonstrate credibility, but not selling!
- Use the Answers section to listen and respond to the questions that people are asking. Every single day people ask what products to buy and from whom.
- Events: Hosting an educational session for potential clients? Use the events functionality and use it to share with your network.” (Giamanco)
Monitor prospect discussion and social data for buying signals.
“Prospect research has changed forever. In no other time in my life have we seen prospects update their own information and update you on what they are doing in their personal and professional lives! Today’s modern social salesperson is exceptionally prepared for their sales calls. One tip: Company data is interesting (e.g., … [alerts] about your sales prospect’s company: ‘New product launch!’), but prospect social data is even more interesting, because it will tell you what the person really cares about (‘Just got back from sales training in Florida, learned a ton!’).” (Rosenberg)
“Leveraging twitter for sales is very effective. Once you know how to use Twitter as a sales tool, you can get insights into people and companies in realtime.” (Sexton)
“Watch for buying signals across the social Web. One of the greatest opportunities for salespeople via social media is to see into the buying cycle far earlier than we’ve typically had access to. Before social media, we could deepen our understanding of the buyer and use outbound marketing to connect with a particular need, try and find resonance with a buying signal, etc. But that, at best, was a fishing expedition most of the time. Now, if you know the buying signals and pain/problem keywords your prospects typically exhibit before they’re ready to buy, you can watch for those discussions and keywords across the social Web. Do a couple keyword searches on Twitter, for example, and you’ll be surprised how many people, in real-time, are talking about their existing challenges, their frustrations with competitive products and more.” (Heinz)
“Social media is a great tool for salespeople, but for not for the reasons that some people believe. Social media isn’t a replacement for the prospecting activities that success in sales requires, as some seem to suggest. It is a simply a set of tools that allow the execution of some of those activities. There is way too much focus on using social media tools for inbound marketing, and way too little on leveraging the tools to better enable the execution of the fundamental roles of salespeople: opening new opportunities. Opening new opportunities isn’t a passive activity, and salespeople who wait for their prospects to find them aren’t successful by any of the measures we use in sales. The salespeople who are successfully using social media are using the tools to identify and open communication with their dream client contacts. They are using tools like LinkedIn to identify the people who they can most easily create value for within their target accounts. More still, they are researching their prospects, discovering what they are reading, what they are writing about, and where their interests lie. Social media better enables salespeople to know who to call and how they might best create value for those people.” (Iannarino)
The best way to increase sales effectiveness is to speed up the research process and then get regular updates on your prospects and the companies they work for. In an article, Forbes spoke with some leaders in sales and got insights on the sales process and what steps sales managers should take to increase their effectiveness on finding more deals and closing them faster.
The overwhelming observations and advice from Wendy Weiss and Paul Castain pointed to finding the right prospects, being more prepared for the call, having intelligence around the prospects, and leveraging non-traditional communications channels to reach prospects.
Paul Castain,Vice President of Jedi Mastery at Castain Training Systems, says a lot of salespeople research a prospect only once during the process. “Business is moving at the speed of light, and things change constantly,” he says. “When you gather information, review it over and over again before you reach out to the client.”
Finding the right prospects to contact shouldn’t be a painful process. Sales intelligence can give you a fresh group of prospects based on sales trigger events in the industry specifically in your territory. These trigger events give you accurate and relevant news about the company or person you are calling. Since we know that most executives will not respond to a cold call, using connections to get introduced is important. If you can’t locate a professional connection to your prospect, use the intelligence you gather through news sources and social media to understand your prospect and make the connection.
Top sales tips to follow
- Approach them before they are in buying mode
- Focus on finding the best prospects
- Stop calling prospects if they are not responsive. Get creative in communications
- Sales people are expected to know about their prospects before the call
- Only talk 20% of the time and listen the other 80%
- Don’t be afraid to ask the tough questions
- Turn rejection into a learning experience
- Never stop learning how to be more effective
Surprisingly there are still a large number of companies that do not leverage sales intelligence. The Aberdeen study on the Science of Sales Intelligence shows that most companies deal with some very specific business pressures that sales intelligence can help with.
- 42% have insufficient knowledge of the business needs of prospects
- 40% do not have the ability to identify the most likely buyers of their product
- 34% complain of having a sales process that is too long
- 21% See an increased customer churn forcing them to focus on filling the funnel
All of these point to companies needing to be more nimble and enabling their sales teams to move faster with more targeted information. What are you going to different in 2012 to address these business issues?
The traditional approach to demand generation focuses primarily on outbound offers and campaigns to drive new leads into the funnel. However, the shift in buyer behavior forces companies to rethink their approach to demand generation. Social media stands out as a new source of customer engagement because it provides sales and marketing organizations with a tremendous opportunity to follow potential customers – even before they reach out to them.
Because the buyer relies more on peers and independent research in the early stages of engagement, it has become even more imperative that B2B firms bring sales and marketing together with a shared approach to revenue generation. Social intelligence has proven to be a key piece of this aligned approach as it enables deeper, more relevant engagement.
According to B2B’s “2010 Outlook: Marketing Priorities and Plans” survey, more than half (53.5%) of marketers surveyed said they currently use social media as part of their marketing strategy, up from 45% the prior year. Lead generation (cited by 48.9% of respondents) ranked as the second highest use for social media, behind only thought leadership (59.8%).
In one case study illustrating how progressive companies are integrating social media into their demand generation efforts, Concur Technologies has successfully integrated social intelligence across sales and marketing, influencing performance at each phase of the funnel.
Because the buyer relies more on peers and independent research in the early stages of engagement, it has become even more imperative that B2B firms bring sales and marketing together with a shared approach to revenue generation.
In the early stages of lead generation, Concur has utilized the list-building capabilities enabled by sales intelligence platforms to better target the SMB market. The company also improved conversions within the funnel by using social intelligence to address lead pre-qualification for inside sales. Finally, reps are able to receive alerts notifying them on trigger events at key accounts.
Despite the dramatic impact social media and social intelligence can have on demand generation, many companies do not integrate social media into their existing processes. During a recent presentation at the 2011 SiriusDecisions Summit, Jonathan Block, VP and Service Director for Reputation Management Strategies at SiriusDecisions, proclaimed, “Organizations ignore the leverage social media can offer throughout the cold-to- close process.”
Block emphasized the important factors that go into a successful social media strategy. He pointed out holistic measurement and reporting are key aspects of building an integrated social strategy. By effectively measuring both activity and impact, companies realize positive paybacks in brand reputation, demand creation and sales enablement.
It’s not only sales managers that are interested in increasing sales productivity. Every sales rep that is serious about their career tries to be more productive and effective in their sales efforts. One of the best ways to learn to be more productive as a sales person is to learn what is working and what is not by other experts.
Sure, we have a bunch of posts on how to be a more productive sales person but there is always more tips and tricks that come from other well known people that should be shared.
- How Entrepreneurs Can Increase Productivity by 500% -TechCrunch
- Top 5 Sales Strategies for 2012. Accelerate Your Momentum with Microsoft Dynamics CRM 2011
- The Three Types of Team Commitment
- What’s Driving Your Customers Away?
- 8 Ways to Incentivize Employees to Use CRM
- Negative Assumptions Before Your Calls Usually Come True
- What’s Your Plan Once You’ve Connected Via A Social Network?
- The 10 Biggest Referral Mistakes Salespeople Make
- Anatomy Of A Lousy Sales Email
- One Marketing Guy Who Gets It (What Sales Needs, That Is)
- Why Sales Forecasts Are a Joke
- The Presentation Trap: Why Making Presentations Can Cost You the Sale
- 10 Tips that Separate the Good Sellers from the Great Ones
- Ignite More Sales with Sales Intelligence
- Determining What Metrics to Track with CRM
It’s near impossible to be effective in sales without the use of the internet these days. In the 2011 Sales Performance Study by CSO Insights, they researched how sales people were leveraging the internet to get their jobs done.
On average sales reps will spend 24.1% of their time each week on research and lead generation activities. It’s no wonder why sales people go to the internet for help when almost 10 hours a week is spent researching contacts and companies.
The important task of sales research.
The study found that sales research is still the most important activity of how sales people leverage the internet. This is a positive sign in the case that sales people are now at a tipping point when it comes to understanding that it’s more important to sell to people and not contacts. 77.2% of the sales people must be onto something that makes them better at selling.
Now look at the number of people leveraging the internet to actually move people through a sales cycle.
- 56% conduct webinars
- 48% of their time is in web based meetings
- 46% are giving online demos
Sales leaders should be looking for ways to increase these numbers. The best way to do this is to help your sales team on how to be more effective in sales research and decrease the amount of time they spend in that area.
Two flavors of internet research
Companies fall into one of two buckets when it comes to enabling sales people with sales intelligence. Companies either empower their sales people with technology to aid in this effort or they expect a sales person to do all of this on their own. You can imagine what will have a better impact on a sales teams ability to generate more opportunities and increase revenue. The best in class companies which made up 61% of the businesses surveyed leveraged technology to conduct searches for sales reps while 37% left the work up to the individual sales rep.
Spending 10 hours a week on research obviously takes a toll on winning more deals. Though research is important, companies should be looking at ways to increase the amount of time sales people are actually selling.
Any sales reps worth their salt does their homework before contacting a lead. The following best practices can pave the way for highly effective conversations with prospective buyers.
Ignite Smarter Conversations
Once a contact becomes a qualified lead or opportunity, sales needs to know who to reach and how, and what to say to get their attention. It’s no longer just who you know that will make business deals happen, but what you know about who you know, tightly synched with when and where you should know it. After all, according to IDC, IT buyers indicate that ~54% of sales reps are unprepared for their initial customer meetings.
To prep for the meeting, your reps can tap into sales intelligence to pinpoint what’s top of mind for the contact and immediately establish rapport on the call. With access to multiple data sources in a single place, your sales reps will spend less time on research, yet will be more effective on the phone.
A study by CSO Insights shows that even when using CRM:
- It takes sales reps an average of 4 voice mails or emails to get that first, pivotal appointment with a prospect
- They often have to wait 3 to 4 days for a response
- 60% of sales reps waste the equivalent of 6 selling weeks a year just trying to get customers on the phone.
Combined, traditional business information services and social media can help create the best prospect intelligence, enabling sales professionals to sort through potential deals and dealmakers. With insight into companies (for example, M&A activity, new leadership, and major initiatives), contacts (title, email, and phone number), and social profile information or people insights (“I see we have friends in common,” or “We went to the same school,” or “You recently tweeted about X”), your sales reps can start the conversation off right.
The sales reps that take advantage of the intelligence to be found in the online conversation are reaping the rewards. In a study of sales reps within 2,000 companies, the reps that turned to sales intelligence ended up with higher win rates.
How ‘smart’ are the conversations you have with prospects?
