market driven sales a research report supporting an ...€¦ · 4. generate the right leads 3....

Market Driven Sales – A Research

Report Supporting an Intelligent Route to New Business

Written by Jackie Jarvis & David Milnes

November 2012

Report Abstract: This research based report reveals that although the current tough economic climate is making sales ever harder, there are other

important factors behind why both traditional and digital lead generation

techniques are failing to provide adequate results for so many businesses.

With a plethora of sales and marketing choices available, knowing where to

spend ones often scarce marketing budget and where best to devote ones

finite business development time can be difficult.

This Report analyses feedback taken from 110 businesses in 2012 and gives

a practical 5 part framework to help them find an intelligent route to securing new business wins.

Executive Summary

Background

By July 2012 Britain was suffering its longest double-dip recession

for more than 50 years and therefore it was no surprise that

business coach Jackie Jarvis (Marketingco) and business research

consultant David Milnes (KyteMark Solutions Ltd), were hearing that many businesses were finding lead generation and lead conversion

increasingly difficult.

A research programme was designed to discover how, in this tough economic climate, successful business are generating quality leads

and securing new sales.

110 companies participated and several also agreed to a follow-up

telephone interview.

Business Growth Challenges

2½ times more respondents said that over the past 12 months lead

generation has become harder than easier.

Many businesses are after quick fixes - but finding that they are just

that – and not creating lead strategies which embed long term sustainable success.

Businesses suffer confusion from the plethora of traditional and digital sales mediums from which to choose from.

Our survey suggests the effectiveness of digital lead generation techniques is still far from certain.

Contrary to mainstream marketing theory, many companies are

ignoring customer and market research planning.

Businesses propositions of many businesses do little to differentiate

themselves from competitors, or give specific and relevant meaning

to potential buyers.

© Marketingco 2012. All rights reserved. 3

There was no correlation between the most commonly used lead

generation techniques, (namely; networking and business alliances)

and those which most respondents said were ‘very effective’.

Surprisingly 50% said they would be spending more on trying to get

new business versus 9% who said they would be spending less.

Finding the Success Your Business Deserves

Insufficient leads have led some business owners to lose heart,

motivation and even self-belief in what they offer. But most too had been creative and resourceful enough to find some ‘quick wins’.

This research study found the most successful businesses were focusing on just five core areas of their business.

• Gaining unwavering strength to continually overcome the current tough business challenges.

1 – Making the Mental Shift

• Ensuring your business is led by specific market requirments and not just by the greatness of your product/service.

2 – Letting the Customer Lead

• Knowing how to communicate your product/service benefits on your customer’s terms.

3 – Perfecting Your Proposition

• Engaging prospects without using traditional unproductive ‘door breaking’ sales methods.

4 – Generating the Right Leads

• Converting sales opportunities without using traditional 'hard nosed' closing techniques.

5 – Connection Selling


5 Practical Steps To Finding an Intelligent Route to New Business

It is the key conclusion of this research study that businesses will

only gain practical and achievable long term success by looking at these 5 core areas of a business:

Traditional and digital sales and marketing is important but these

tactical initiatives should take secondary precedence over the 5 core

pillars from which all other activity will be supported from.

1. Make the Mental Shift

Business

Product

Customer

Price Promotion

Place

4. Generate the Right Leads

3. Perfect the Proposition

5. Connection Selling

2. Let the Customer Lead

Market Driven Needs

Web Seminars

Social Media etc

Telemarketing

Networking

Email

Classic Sales & Marketing - a Secondary Focus


Report Contents

• Research objectives, methodology and positioning

Preface: Background & Framework

• Rediscovering self belief & embedding motivation

1 Make the Mental Shift

• Identifying market driven sales opportunities

2 Letting the Customer Lead

• Effective sales communication 3 Perfecting Your Proposition

• Finding an intelligent route to new business

4 Generating the Right Leads

• Avoiding hard selling 5 Connection Selling

• Practical application & next steps Survey Conclusions

Page 6

Page 9

Page 15

Page 17

Page 19

Page 23

Page 26


Preface: Research Background & Framework

Research Authors

Jackie Jarvis, Marketingco*

With over 20 years of sales, marketing and business mentoring

experience, Jackie has witnessed many common concerns for

businesses who are trying to grow their customer base.

By July 2012 official figures showed Britain was suffering its longest double-dip recession for more than 50 years and therefore it was no

surprise that so many companies were telling her that finding new

sales opportunities was getting increasingly difficult.

Despite this Jackie was also hearing instances of how some businesses owners were still achieving sales growth - in spite of the

general economic downturn.

She decided these ad hoc success stories needed investigating in a

more robust and objective manner.

Jackie has always sought ways to make the complex simple and

easy to understand and is interested in a practical straight forward

application of ideas to get important results.

Therefore Jackie wished to understand which of these techniques

and approaches could be adopted by others.

David Milnes, KyteMark Solutions Ltd*

For 10 years David has headed a business research agency called

KyteMark Solutions Limited. The core service involves researching potential buyers on behalf of clients to discover exactly what their

current needs are and how a proposed solution should be best

presented by a supplier.

Like Jackie, David has also seen the frequent trouble many companies have in trying to source newly qualified prospects.

David believes that too many crucial sales planning decisions are

based on unfounded personal opinions and whims – and not market

evidenced fact. His goal is to methodically and relentlessly

uncover the true factors and drivers which deliver sales results.

* Please note full biographies can be found in Appendix 1.


Research Joint Venture

In August 2012 Marketingco and KyteMark collaborated to

undertake an objective assessment of the current lead generation landscape.

The primary aim was to ask companies how, in this tough economic

climate, they are generating quality leads and securing new sales.

An online survey was jointly designed and sent to selected

companies.

110 participated and several agreed to a follow-up telephone interview.

An addition to the primary aim, information was also requested on

some secondary areas related to lead generation.

The challenges of delivering a sales plan.

The outsourced business growth services which deliver

a return on investment.

Comparison of traditional versus newer digital sales

techniques.

The personal values buyers expect.

Primary Research Aim:

Understand how businesses are generating and

converting leads.

Secondary Research Aims


Secondary Research Aims

The primary remit of the research was to focus on lead generation but in designing the survey it was considered important to also

briefly explore some wider aspects of developing sales.

According to textbook theory, running a business should be

straightforward. Once a business concept is born, all that’s left to do is: define the product or service, decide where it’ll be sold, agree

how much it should cost - and then to try executing sales through

some of the many available mediums.

Traditional Business Development

But most companies soon come to realise that unfortunately

business life just isn’t this easy or predictable.

The study’s summary aim was to provide businesses with a practical

framework to avoid common pitfalls and start utilising the most

effective approaches to achieving success.

1. Business

Concept

Business

Product

Customer Price Promotion

Place

5. Sales Targets

Actual £ Financial Pipeline???

Web Seminars

Social Media etc

Telemarketing

Networking Email

Classic Sales & Marketing

2. Marketing

Mix

3. Sales Plan

4. Sales Execution


1 Make the Mental Shift

1.1 Business Life Getting Harder

The answer to our opening survey question sought to understand the difficulty businesses are finding lead generation in the current

economic climate – and more importantly whether it is getting

harder.

2½ times more businesses said it is becoming harder than easier.

In a tough economic climate business owners spoke about how in

these circumstances it is very easy to lose heart, motivation and even self-belief in what your business can offer.

Easier No Change Harder

16

36 40

Has lead generation become easier or harder over the past 12 months?


1.2 Quick Wins but Slow Success

Many businesses are after quick fixes, whether it be the latest digital technique to reach an audience of several thousand – or to having a

sales line that’s supposedly guaranteed to secure a sale on every

occasion.

We were pleased that our respondents were willing to share some of their top tips.

A Small Selection of Respondent’s Top Tips

But many respondents said the trouble with the quick fixes is that

they are just that – and they don’t embed long term sustainable

success.

Survey quote: “We bought a smart car, branded it

with our company logo and drove

it around Oxford!”

Survey quote:

“We run seminars and we fill

these events by always choosing interesting venues

like museums and churches.”

Survey quote:

“Never give up on a lead. I saw a

prospect in 2005, again in 2009 and only just converted them in

2012!”

Survey quote:

“We’re an accountancy practice and have some specialist areas:

horse breeders and German

firms operating in the UK!”

Long term

££ Financial

Success???


1.3 Confusion from Choice

Businesses have a wide variety of sales

mediums to choose from but our respondents said the biggest difficulty

was that each of lead generation

methods don’t deliver consistent results.

It would be inappropriate to make

sweeping conclusions such as ‘local press

ads don’t work’ but ‘networking does’,

because there were good and bad stories for each of the suggested methods.

It is encouraging to see most methods are said to be more effective

than un-effective. But during the follow-up interviews many businesses reported old lead techniques were becoming increasingly

‘tired’ and they needed new ways to get more customers.

0%10%20%30%40%50%60%70%80%90%

100%

Very Effective Partly Effective Not Effective

Survey Quote:

“I spent £4,000 on a

½ page ad in a

directory and got just 2 small jobs from it.”

Which traditional lead techniques do you find to be effective?

Methods in order of most effective (left) to least effective (right).

Survey Quote:

“Yellow Pages used to

be my number1 lead

generator, now it’s probably at #19!”


1.4 Digital Rescue?

Much attention is now given to the still relatively new digital marketing mediums, which are touted

as an easy way for companies to

reach an unlimited number of

prospects, quickly and cheaply.

Our survey suggests the effectiveness

of digital mediums is still far from

certain. Only 11% said LinkedIn was

‘very effective’ and just 12% said the same about Twitter.

It would be wrong to entirely dismiss

the new age of technological marketing

but these results provide a warning to

businesses that sales success isn’t going to happen just from opening a Twitter

account.

0%10%20%30%40%50%60%70%80%90%

100%

Very Effective Partly Effective Not Effective

Survey Quote:

“Twitter is like sales by

Chinese water torture!”

Survey Quote:

“Blogs are too time consuming and relentless.”

Which digital lead techniques do you find to be effective?


1.5 Your Business’ Heart

Many companies believe the sales and marketing techniques available to them simply aren’t giving them the success they

deserve.

Therefore it is the key conclusion of this research study that

businesses will only gain practical and achievable long term success by looking at the following 5 core areas of their business:

Five Core Steps to Achieving the Success Your Business Deserves

Both traditional and digital sales and marketing is important but

these tactical initiatives should take secondary precedence over the

5 core pillars from which all other activity will be supported from.

1. Make the

Mental Shift

Business

Product

Customer

Price Promotion

Place

4. Generate the

Right Leads

3. Perfect the

Proposition

5. Connection Selling

2. Let the Customer Lead

Market Driven Needs

Web Seminars

Social Media etc

Telemarketing

Networking Email

Classic Sales & Marketing - a Secondary Focus


1.6 Five Step Plan to Achieving the Success You Deserve

Just by realising there is a practical and simplified way to navigate your business through the vast array of possible challenges and

potential tactical solutions is the first major step in putting the heart

back into your business.

Once a simplified plan has been conceived, ‘all’ that is left is to

make sure it’s acted upon - and that the results are tracked.

• Gaining unwavering strength to continually overcome the current tough business challenges.

1 – Making the Mental Shift

• Ensuring your business is led by specific market requirments and not just by the greatness of your product/service.

2 – Letting the Customer Lead

• Knowing how to communicate your product/service benefits on your customer’s terms.

3 – Perfecting Your Proposition

• Engaging prospects without using traditional unproductive ‘door breaking’ sales methods.

4 – Generating the Right Leads

• Converting sales opportunities without using traditional 'hard nosed' closing techniques.

5 – Connection Selling

Survey quote: “The best thing I’ve

done this year is to

start recording

exactly what is and what isn’t working.”


2 Let the Customer Lead 2.1 What’s keeping Your Customers Awake at Night?

A large proportion of companies surveyed do not appear to have structured business development planning in place. And, contrary to

almost every mainstream marketing theory, it was surprising to see

the areas with least activity related towards one’s ‘customer’ and

‘market’.

The same scenario appeared when businesses were asked about

their future investment intentions.

A leadgenerationstrategy

A definedsales process

A structuredmarketing

plan

A structuredCUSTOMERfeedbackprocess

A structuredMARKETappraisalprocess

47 47

41

34

16

54

37 23

35 27

13 12 17 11

4 13

20 7 14

18 13 6

3

Yes, and will do so again Yes, but probably won't do so again

Do you have the following plans and processes in place?

Have you invested in any of the following?


2.2 What Are Customers Spending On?

Businesses appear to be concluding that sales are primarily being hit

by the simple and logical argument that less money is being spent.

Businesses suspect their sales prospects are then further worsened, in equal proportions, due to; competition, marketing message

overload and resistance from buyers to traditional sales approaches.

It is suggested prospects chances of overcoming each of the issues

would be greatly enhanced by undertaking some robust market intelligence activity about ones buyers.

Customers may be spending less but this shouldn’t detract in finding

out what they are spending on and why.

Buyer'sbudgets

becomingsmaller.

Too muchcompetition.

Prospectsoverloaded

withmarketingmessages.

Resistance totraditional

salesapproaches.

Hard tocommunicate

benefits.

Ownmarketing

budgettightened.

85

67 67 65 62 55

Suggested reasons for any difficulty your company faces in generating leads?


3 Perfection the Proposition

3.1 Finding a Market Niche

Businesses were asked to describe in a single sentence what they

believed to be their market specialism.

Respondent’s Business Propositions

Some gave very general answers (lighter blue) which give little

indication of how they differentiate themselves from competitors, or

what specific meaning the business proposition would give to a potential buyer.

The business propositions shaded dark blue give an impression of

being better targeted towards who their customer is and how they would use the businesses’ goods and services.

Email Marketing Services

“Thunder Toffee

Vodka” IT Support

Latin American Business

Insights

Health &

Safety IT for

charities Tax

Planning

Legal Translation

Medical Asset

Marketing

Employee

Benefits

High End Building

Projects

Mint Custom Coins

Accounting and Payroll

Change management

Business Support

Catalogues for Art

Galleries

Does your business have a market specialism?


3.2 Propositions Which Matter to the Audience

Business descriptions which potentially capture greater interest tend to be more specific and in addition to saying what the company

does, also says who they do it for and why it matters to those they

want to influence.

Tipping the Balance towards Market Led Sales

At any networking event one is likely to hear meaningless pitches

such as, ‘I’m an accountant’, ‘We design websites’, or ‘We provide

training’, etc. Alternatively it’s far more refreshing to hear propositions such as, ‘We can reduce your yearly tax bills’, ‘We can

increase your inbound web enquiries’, or, ‘We can give you the skills

to increase your sales conversion rate’.

Product Led Niche

Market Led Niche


4 Generating the Right Leads

4.1 Building a Sales Pipeline

It was not surprising that most businesses said generating leads was

difficult.

4.2 Spending More to Get More?

But it was surprising to see a greater proportion (50%) saying they

would be spending more on trying to get new business versus those

spending less (9%). Perhaps businesses do actually have some money to spend – and some know how to spend it effectively?

VeryEasy

Easy FairlyEasy

FairlyDifficult

Difficult VeryDifficult

4% 1%

29% 32%

20%

12%

15%

35% 28%

7%

2% 13%

Greatly increase

Slightly increase

No change

Slight decrease

Greatly decrease

Not Sure

How will your lead generation investment change over the next 12 months?

How easy or difficult is it for your business to generate new business leads?


4.3 Fortune Favours the Bold?

Companies were asked about what proportion of their turnover they spend on lead generation.

Although the sample sizes weren’t statistically large enough to

irrefutably prove this point, the indication is that companies who speculate more accumulate more. Finding success will require

more than an open cheque book, particularly given the indifferent

performance of so many marketing and sales mediums.

4.4 Quality versus Quantity

It was interesting to hear from several respondents who found that

leads from ‘warm’ sources such as referrals and alliances have a far

higher conversion rate than those from cold enquiries.

50% 50% Easy

Difficult

31%

69%

Survey quote from an employee benefits firm:

“Alliances tend to provide

very good leads, ones who are ‘already sold’ – almost a

done deal.”

How will your lead generation investment change over the next 12 months?

Companies investing more than

5% of turnover Companies investing less than 5% of turnover


4.4 Which Lead Methods Work Best?

Businesses were asked which lead generation techniques they used and which worked best for them.

It was noteworthy there wasn’t a direct correlation between the

most commonly used techniques, (namely; networking and business alliances) and those which most respondents said were ‘very

effective’.

Many companies may not be able to afford the more expensive lead

generation techniques, such as national press or radio ads. Or they

may simply not be appropriate for their business.

But it is possible that many companies are not trialling methods

such as event speaking and press releases which other companies

are finding to be successful.

0%

20%

40%

60%

80%

100%

% Saying it's 'Very Effective' % Responders using this method

Usage of Traditional Lead Techniques & Their Effectiveness


4.5 Further Survey Quotes on Lead Generation

Even for businesses who were finding lead generation difficult, many

had still managed to find some specialist activity that worked well for them.

Many admitted to not always being expert in the skills required to

do these activities, such as speaking at events and writing press releases. Respondents were often pleased with the skills which they

had taught themselves whilst developing their businesses but also

suggested to not being afraid in getting professional help.

Survey quote from a photographer:

“I’ve used prize draw

competitions to build a database of about 1,000 people.

I initially only collected name

and address but now know these contacts very well.”

Survey quote from an accountant:

“I get most of my new business through speaking, including at

The Institute of Chartered

Accountants”

Survey quote from a business consultant:

“Telemarketing is very effective. You have to be patient and it might require sizeable

investment but I’ve used the same company for

years.

They collect great market intelligence too.”

Survey quote from a wildlife photographer:

“I speak at events where I’ll

meet my ‘ideal customer’ such as Women’s Institute or

University of the Third Age.”

Survey quote from a

solicitor:

“Our newsletters work

very well for us

because they clearly

demonstrate our areas of speciality and

expertise.”

Survey quote from a

chartered accountant:

“90% of my business

comes through referral.”


5 Connection Selling

5.1 What Type of People Do We Buy From?

Respondents were asked to pick from a suggested list the personal

qualities which they liked to see when being a buyer.

‘Trustworthiness’ was by far the most valued attribute by

respondents when buying.

We can often imagine good sales people as being extrovert and

charismatic. Whilst these traits aren’t necessarily bad, what we

want to know as buyers is that we’re going to get what we’re paying

for and are not going to be hoodwinked into buying something we don’t want.

As buyers ourselves in today’s fast

paced and crowded market place we often just want someone who can

communicate well and connect on what

personally matters.

Sellers might wish to think how they can best articulate the value they offer

in all aspects of their sales process –

from first meeting with a prospect, to

submitting a written proposal and in negotiating to close a sale.

33

12 9 8 7

3 2 2

1 1 1

As a buyer yourself, which of the following values are most important to you?

Survey quote:

“I mentally hug all my

customers!

They typically drive BMW’s and go to all the best

shops so I need to provide

a similar premier customer service”


Trust in a sales relationship is built no differently than with any

other form of human interaction. Sellers need to show genuine

empathy, listen, ask great questions, understand the buyers’

challenges and motivations demonstrate they’ve listened and then articulate the product or service benefits to the buyer.

The connection, clarity and confidence a seller has in communicating

their product or service will dramatically impact on the same for the

buyer. Buyers want results and they want to trust the person who is promising to deliver.

Understanding buyer’s values and connecting values is a very

important part of building more trust in any customer relationship. Could it be that this is forgotten in the race to win business?

5.2 Closing a Sales Pipeline

Most respondents were ambivalent about their ease to convert leads into sales.

This may be encouraging but it may also be that too often we’re not

being truly objective when assessing our own closing skills. It is often the case sales people have an apparently healthy looking sales

pipeline and yet actual closed sales are poor.

Many find that the follow up activity that is involved in finally confirming business is challenging and it may be that many

businesses have opportunities that they are missing out on because

they simply do not do enough sales activity.

VeryEasy

Easy FairlyEasy

FairlyDifficult

Difficult VeryDifficult

1 6

36

24

9 7

How easy or difficult is it for you to convert leads to sales?


5.3 Putting the Heart into Your Sales

Undervaluing ones service was seen as the biggest hurdle to closing

a sale. Why might this be? Do we doubt the benefits that we’ve

said our service will provide? If the seller doesn’t fully believe in the product then it is highly likely the buyer will quickly sense this.

Buyers need to be crystal clear.

There’s nothing wrong with being an expert in ones chosen field but not being expert in sales – as long as if you’re not an expert that

you acknowledge it and get some professional help.

23

15 13 13 12

10 9 9 8 6

If it is difficult to convert leads into sales how significant are the following reasons:


Survey Conclusions

Lead generating, converting sales and building business with the

right customers is vital to the long term success of any business.

Getting it right can be enhanced by fully understanding the

customers your business can help the most. These market insights

should then be used to drive what you say and inspire them with.

Your business exists for your customers, so to work well marketing

and sales must be all about them. An external as opposed to an

internal view.

If something works do more of it and if it doesn’t, stop it and work

out why not.

1

Make the Mental Shift

2

Letting the Customer

Lead

3

Perfecting the

Proposition

4 Generating the Right

Leads

5 Connection

Selling


We can learn all we need to know about how to design, position and

communicate our offering from our market place and our customers.

Always be open to listen, learn and improve things, the right

answers are often found by asking the right people the right

questions.

An intelligent route to new business can be found by an intelligent approach.

Do you want some help?

If you would like to explore how we could help you to enhance your lead

generation and sales results we would be happy to arrange an initial

consultation.

Our intelligent route to new business can help you to enhance your ability

to find, engage with and convert the customers you want.

Please email [email protected] or [email protected]

Or call 01491 833222

We do look forward to speaking to you.

mailto:[email protected]

mailto:[email protected]


APPENDIX 1 – RESEARCH TEAM

Jackie Jarvis, Director, Marketingco. (www.marketingco.co.uk)

Author of ’85 Inspiring Ways to Market your Small Business,’ Jackie Jarvis is the founder and Director of Marketingco and the creator of the Sales

and Marketing Fast Track programme.

With over 20 years of sales and marketing experience, she fully understands the problems and needs of the small business owner when

growing their customer base and building their business.

Jackie herself is a professional mentor, trainer and inspirational speaker with a strong corporate background in sales, marketing and the media.

She has managed and trained sales teams, set up, managed and

marketed a national training centre for one of the leading regional press

groups, and run a successful sales and management training business

with a partner for five years.

She has worked hands on in marketing, sales, PR and business

development, and in her time, has won awards as a top sales person. She

has also experienced the trials and tribulations of growing a business by being a major part of the development of a number of SMEs.

Jackie has always sought ways to make the complex simple and easy to

understand and is interested in a practical straight forward application of ideas to get important results. The products and services she offers have

all been personally developed by Jackie and have already helped and

inspired hundreds of small business owners who want and deserve to

succeed.

David Milnes, Director, KyteMark Solutions Ltd

(www.kytemark.com)

David Milnes leads KyteMark Solutions market insight services and is

responsible for delivering research programmes which he designs to

identify and connect clients to new business opportunities. A core

component includes David conducting face-to-face interviews with potential buyers to discover exactly what their current needs are and how

a proposed solution should be best presented by a supplier.

David has 20 years of experience in research, project management and business analysis roles for corporate clients including; Barclays, RBS, and

The Economist and has also supported mid-sized technology, marketing

services, property and professional consultancy companies in their

business development activity.

http://www.marketingco.co.uk/

http://www.kytemark.com/


Between 1992 and 2002 David worked with in client services and sales

roles for a direct marketing database bureau called Printronic

International, now part of The Adare Group. In his last year his personal

sales target was £2.3m - which he exceeded by £180,000. He also managed a prestigious joint venture promoting The Economist Group

Single View Customer Database requiring; product positioning, preparing

marketing collateral, arranging and promoting a seminars and delivering

product demonstrations.

David also worked as an account director for research agency BEM Group

(now part of Taylor Nielson), where he managed £million research

programs for Allied Domecq, Clydesdale Bank and HSBC. He holds The

Market Research Society’s Advanced Certificate, has a Postgraduate Diploma in Marketing Management and a degree in Social Economics.

David’s success is driven on a fundamental principle to provide his clients

with both short term wins and build customer insight which delivers long-term, high impact sales solutions.

market driven sales a research report supporting an ...€¦ · 4. generate the right leads 3....

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