ORGANIC
FEE GROWTH
Empowering public practitioners to
grow their fee base
www.rpmgi.com
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andrew.france@rpmgi.com
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“Adapt or die.”
Billy Beane
General Manager
Oakland Athletics
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48% of sales rep’s fail to hit their target
Off Target
48%
Source: RPMG Revenue Performance Index 2011
On Target
52%
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Sales that fail to close as forecasted =
88%
Leads generated not followed up by sales =
Actual selling time by sales people
68%
= 31%
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Only 15% of organisations hit their sales target
Miss <10%
Achieve?
15%
Miss 11% 20%
Miss > 20%
Source: RPMG Revenue Performance Index 2011
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And yet CEO growth aspirations for growth
remain optimistic
Increase > 20%
23%
Increase > 10% but < 20%
42%
Source: RPMG Revenue Performance Index 2011
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How to fuel sales growth…
more feet on the street!
10%
Increase >20%
Increase 11-20%
27%
Increase <10%
45%
15%
No Change
3%
Decrease
0%
10%
20%
Source: RPMG Revenue Performance Index 2011
30%
40%
50%
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End-To-End Sales Closure Rate now = 2.4%
4.0%
3.5%
3.7%
3.0%
2.5%
2.4%
2.0%
1.5%
1.0%
0.5%
0.0%
2006
2007
2008
Source: RPMG Revenue Performance Index 2011
2009
2011
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Every major step in the process is in trouble
Source: RPMG Revenue Performance Index 2011
2011
2009
2008
2007
2006
2011
2009
2008
2007
2006
2011
2009
2008
2007
2006
% of proposals / offers
resulting in closed sales
% of meetings leading to
presentations/proposals
% of leads resulting in
Meetings / appointments
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Adapt or Die! Moneyball….for Revenue!
Sales Leads Required
Lead to 1st Meetings Ratio
1st Meetings Required
Meeting to Proposal Ratio?
Proposals Required
Propose-To-Close Ratio?
New Deals to Close
Average Contract Size?
New Revenue Next Year?
4,500
33%
1,500
6,500 engagements needed
33%
500
20%
100
$100K
$10M
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“Customer buying processes have evolved
in our world of ubiquitous, instant, global
communications.
But companies’ selling process have, for the
most part, remained anchored in the dark
ages.”
Fred Hassan – CEO, Schering Plough
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Revenue creation use to be simple and linear
Marketing
Traditional Sales
Process
Awareness
Opportunities
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Buyers have now moved to new buying
channels. Sellers have not.
Internet-driven changes in B2B buyer behavior
Your buyers go to the web to research business solutions...
long before they will talk to your sales rep!
Marketing
The marketing-to-sales
Black Hole
+40% of your good prospects are lost or
mismanaged in this process gap
Truncated Sales
Process
Opportunities
Leads
Leakage
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Industry Specific
SMSF - 74,000 Monthly Searches
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Accounting Practice Sales Funnel
very narrow
opening
sometimes
blocked
often random
fairly good
conversion
metrics
slow trickle of
new revenue
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Dreaming is at the heart of
disruption !
Only when we dream can we hope to create
something truly new, something that will
overtake old habits, old customs, and old ways
of thinking and being
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Development of Sales
Three previous breakthrough ideas in sales
• 1910: the division of labour in Insurance sales between
‘hunters’ & ‘farmers’
• 1925: the understanding of buyer decision by E. K.
Strong “Psychology of Selling”
• 1970’s: Consultative Selling eg Huthwaite S.P.I.N. took
1:1 sales into B2B
• 1980’s: Purchasing Revolution – saw no corresponding
sales response!
• 2000’s: Internet Revolution – saw no corresponding
sales response
Level of Customer Excitement (feeling)
Negative
Neutral
Positive
Challenge the ‘Status Quo’
Your Solution
implementation
path
Reframe
of problem
Warmer
Building
credibility
Rational
Drowning
Value
Proposition
Intensification
of problem
A new way
Emotional
Impact
Humanising
the problem
Intrigued
Source: The Corporate Executive Board
Drowning
Involved
Customer State
Relieved
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Drivers of Customer Loyalty
Percentage of Contribution to
Customer Loyalty
The Purchase Experience…
•
53%
•
•
•
9%
•
•
19%
•
19%
Company and
Brand Impact
Product and Value-to-price
Service Delivery
Ratio
Source: Sales Executive Council Research
Offers unique, valuable
perspectives on the market
Helps me navigate
alternatives
Provides ongoing advice or
consultation
Helps me avoid potential
landmines
Educates me a new issues
and outcomes
Supplier is easy to buy
from
supplier has widespread
support across my
organisation
Sales
Experience
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Individual “Heat-Map”
Hunting
79
92
Dominance
55
Needs
Identification
Positioning
80
100
Prospect
Engagement
95
86
Emotional
Stability &
Intelligence
79
80
Optimism
Open
Mindedness
Persuasion &
Influencing
Achievement
Orientation
95%
Proposal &
Validation
80
85
0
Goal
Clarity
Dealing with
Objections
95
85
5+2
Personality
Dimensions
86
Conscientiousness
RPM
Strength
95
20
Conscientious
Influencing
15
Steadiness
92
51
Orientation &
DISC
10
Agreeableness
Extraversion
Farming
75
Revenue
Generation
Experience
Closing &
Follow-Up
Perception of
Effectiveness
90
Customer
Service
Orientation
90
BD
Strength
100
Networking &
Prospecting
Competency
Strength
80
81
83
85
Attention to
Details
85
Revenue
Drive &
Focus
80
Democratic &
Teamwork
Business /
Entrepreneurial
Orientation
Business
Development
Skills
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prob·lem
/ˈpräbləm/
Noun
1. A matter or situation regarded as unwelcome or harmful and
needing to be dealt with and overcome.
2. A thing difficult to achieve or accomplish.
Synonyms
question - issue - trouble
Why are problems important?




Benefits
Solutions
Needs
Problems
arise from…
which address…
which are prioritised by …
A buyer with a need but not a problem will
often spend time, but rarely spend money.
Sample Problems
• I can’t innovate fast enough and that means I
can’t hit my business targets.
• My employees can’t work when they’re not in the
office and it’s costing me money
• Our organization has grown and acquired
businesses but we still can’t unify our systems.
• Our IT resources and skills are struggling to
support our business and hindering growth.
• We can’t align all our resources around solving
our core business problems therefore our people
can’t collaborate.
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Problems Workshop
 Consider your markets. What further problems do these buyers face (that you can solve)?
 Consider your channels. What further problems for buyers does this channel uncover (that you can solve)?
 Consider your offerings. What further problems does this solution solve?
Problems For Our
Markets
Problems Found By
Our Channels
Problems Addressed By
Our Solutions
Key Problems
• Consider how these problems affect buyers. Mark those that you feel would cause most difficulty if they are not addressed
• Consider how well your solution solves these problems. Mark those that you feel are addressed by your solutions
• Identify the six problems that buyers ought to be troubled about, and that you solve the best
Worst Problems – For Our Buyers
Best Problems – For Us
1.
…………………………………………
1.
…………………………………………
2.
…………………………………………
2.
…………………………………………
3.
…………………………………………
3.
…………………………………………
4.
…………………………………………
4.
…………………………………………
5.
………………………………………….
5.
………………………………………….
One key problem?
Find a big enough problem
experienced by a large number of
buyers, and solve that problem
for those buyers better than
anyone else can, and those
buyers will pay you more money
for doing so.
Utopia…
taking the
interested
Effective
end to end
revenue
creation
process
turning them into
prospects
then
sales leads
And ultimately
achieving
revenue target
new
customers
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Filling The Funnel
WHO and HOW
INBOUND
Marketing
OUTBOUND
Marketing
Ave. Lead
Cost: $135
Ave. Lead
Cost: $346
Source: The state of inbound
marketing. Hubspot, March 2012.
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Lead to Customer Close % by Channel
16
15%
15%
14
12
9%
10
7%
8
6
4%
4
2%
2
0
SEO
Direct
Traffic
Referrals Paid Search
Source: The state of inbound marketing. Hubspot, March 2012.
Social
Media
Outbound
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Roles(s) of Social Media
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Utopia…????
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Top of Funnel
Plan the path
And as much as possible
Enable it with
technology
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Marketing Automation
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Interested
DEFINITION
They might one day buy your product, but
also includes everyone who may consume or
share your content
DESIRE
capturing the
interested
turning them into
prospects
Want what you know not what you sell
CONTENT
then
sales leads
Info-graphics, Video’s, Curated Lists, Blog
CHANNEL
Blogs, Social Networks, Partner Sites
And ultimately
new
customers
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Prospects (MQL)
DEFINITION
capturing the
Have actively supplied personal information in
exchange for more content
interested
DESIRE
turning them into
Content that relates to their professional
interests
CONTENT
prospects
then
sales leads
E-books, Guides, Reports, Guru’s
CHANNEL
Email / Direct Mail, Advertising / Display
Webinar & Events
And ultimately
new
customers
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Bottom of Funnel
Personal
Contact
Close with
confidence
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Sales Leads (SQL)
DEFINITION
SQL – as agreed by both sales and marketing
has met specific criteria (who they are and
what they have done)
DESIRE
Content that address their business pains
CONTENT
Industry specific case studies, white papers,
product comparisons
CHANNEL
One to one – phone, email, face to face
capturing the
interested
turning them into
prospects
then
sales leads
And ultimately
new
customers
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Revenue Telemetry
Summary
•
•
•
•
•
•
•
•
Business Development is tough
The Buyers Journey has changed
Do you REALLY want to grow?
Who is part of your team?
What problem are you solving?
Measure the change you want to see
Put process around achieving it
Leverage technology to achieve it
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THANKS
Andrew France
andrew.france@rpmgi.com
www.rpmgi.com.au
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