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8/7/2019 LTW Sales Funnel - final
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Lead to Win
Lead to Win
Opportunity Development Making and Managing SalesAugust 26th, 2009
Stephen Davies and Serge Lafontaine
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Lead to WinSlide 2
Agenda
Overview
Find first customers most willing to buy from you
Adapt the funnel to sell to first customers you target
Map funnel information to cash flows
Exercise #1 and #2Sales and product marketing techniques to maximize funnel value
Exercise #3 and #4
BREAK
Use the Internet to sellParticipants Open Discussion
Summary / Tasks Post Phase 2
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Lead to WinSlide 3
Agenda/Timeline
10:15
8:45
9:45
12:00
OverviewFind first customers most willing to buy from youAdapt the funnel to sell to first customers you targetMap funnel information to cash flows
Exercise #1 and #2Sales and product marketing techniques to maximize funnelvalue
Exercise #3 and #4BREAK
Use the Internet to sellParticipants Open DiscussionSummary / Tasks Post Phase 2
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Lead to WinSlide 4
Agenda
Overview
Find first customers most willing to buy from you
Adapt the funnel to sell to first customers you target
Map funnel information to cash flows
Exercise #1 and #2
Sales and product marketing techniques to maximize funnelvalue
Exercise #3 and #4
BREAKUse the Internet to sell
Participants Open Discussion
Summary / Tasks Post Phase 2
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Lead to WinSlide 5
Overview
Upon completion,
You will know about
What a sales funnel is
Linking sales to cash flows
What internet marketing techniques are out there
You will know how to
Categorize and prioritize customers
Build a funnel for your organization
Map sales to your cash flows
Identify appropriate internet marketing techniques for your
organization
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Lead to Win
Overview
What this course is
How to setup and manage sales
How to link sales with marketing
What this course is NOT
How to sell
How to market (detail)
Terminology that is assumed
Inside/outside sales
Distribution channel Direct/indirect sales
Others
Slide 6
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Agenda
Overview
Find first customers most willing to buy from you
Adapt the funnel to sell to first customers you target
Map funnel information to cash flows
Exercise #1 and #2
Sales and product marketing techniques to maximize funnelvalue
Exercise #3 and #4
BREAKUse the Internet to sell
Participants Open Discussion
Summary / Tasks Post Phase 2
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Find first customers most willing to buy from you
Slide 8
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Find first customers most willing to buy from you
Customer Demand:
Need: The desire for a product or service
Demand: The ability to pay for a product or service
Slide 9
Demand is the desire and ability to buy a product orservice.
Demand is the desire and ability to buy a product orservice.
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Characteristic Comments
A Customers Bring me a proposal I can sign.
B Customers I like the product, but I need to do more research before I can decide.
C Customers Yes, we have that problem, but I dont know what to do about it. We get
by. How does your product relate to our situation?
D Customers We have no problems like that in our organization.
Slide 10
Find first customers most willing to buy from you
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Communication
Close A customers. Get them to buy your product.
Convince B customers: Provide them with additional
information to make a decision, and reinforce your company as
the best choice (share of mind)
Coach C and D customers and use public presence as a
means to gain credibility with themand access to them.
Slide 12
Find first customers most willing to buy from you
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Customer Types and Technology Strategy
Technology disruptions encounter C and D customers
Longer sales cycles
More subject matter expertise marketing
Evangelical sales model
Technology increments encounter A and B customers
Shorter or immediate sales
More product level marketing
Direct sales model
Slide 13
Find first customers most willing to buy from you
Most startups tend to be technology disruptions.Most startups tend to be technology disruptions.
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Increasing the probability of engaging customers
To target and engage higher probability customers you need to
identify the few key values from your product offering
You also need to release your product at the appropriate level in
the marketplace
Slide 14
Find first customers most willing to buy from you
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Lead to WinSlide 15
Find first customers most willing to buy from you
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Lead to WinSlide 16
Find first customers most willing to buy from you
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Lead to WinSlide 17
Find first customers most willing to buy from you
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Lead to WinSlide 18
Agenda
Overview
Find first customers most willing to buy from you
Adapt the funnel to sell to first customers you target
Map funnel information to cash flows
Exercise #1 and #2
Sales and product marketing techniques to maximize funnelvalue
Exercise #3 and #4
BREAKUse the Internet to sell
Participants Open Discussion
Summary / Tasks Post Phase 2
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Lead to WinSlide 19
Adapt the funnel to sell to first customers you target
Source: Wikipedia
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Lead to Win
How does it work
We take a generic, or organization specific list of stages and assignprobabilities to each stage.
The probability represents the likelihood that the customer will move
to the next stage of the pipe New Opportunity (5%) Initial Communication (10%)
Fact Finding (25%)
Develop Solution (40%)
Propose Solution (60%)
Solution Evaluation (75%)
Negotiation (85%)
Contracts (95%)
Closed won (100%)
Slide 20
Adapt the funnel to sell to first customers you target
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Lead to Win
Adapt the funnel to sell to first customers you target
Slide 21
Funnel StageConfidence of
Winning 10%
100%
Day 1
Day 183
20%
45%
60%
80%
90%
Day 22
Day 44
Day 94
Day 160
Day 180
Lead Yield
30 Raw
1 Won
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Lead to Win
Doing it in practice
For simple funnels use excel
If you have a larger number of customers good idea to geta CRM system, for example:
Slide 22
Adapt the funnel to sell to first customers you target
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Lead to WinSlide 23
Adapt the funnel to sell to first customers you target
Totals/Average 47% $300,000 $142,500 06-Feb-10 177
Company Opportunity name Funnel stage
Stage
probability
Contract
value
Funnel
value
Est Close
Date
Days to
close
Steve co Product A New Opportunity 5% $10,000 $500 01-Jun-10 291
Bob co Product A and B Initial Communication 10% $50,000 $5,000 15-Apr-10 244
ABD Product B Fact Finding 25% $40,000 $10,000 01-Dec-09 109
DEF Product A Develop Solution 40% $30,000 $12,000 13-Feb-10 183
GHI Product C Propose Solution 60% $50,000 $30,000 15-Jan-10 154
Blockbuster Product A, B and C Solution Evaluation 75% $30,000 $22,500 24-Feb-10 194
PWGSC Product C Negotiation 85% $40,000 $34,000 04-Nov-09 82
CIBC Product C Contract 95% $10,000 $9,500 01-Sep-09 18
Lead to Win Product A Propose Solution 60% $30,000 $18,000 01-Mar-10 199
Redwood Product B Initial Communication 10% $10,000 $1,000 01-Jun-10 291
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Lead to Win
What is a sales funnel
A tool that help you assess using different metrics how healthy andbalanced your future sales are. It will tell you:
At what stage a customer is in the sales process
What value of opportunity is associated with a customer
How long customers are taking to move down the pipe
Gross figure on how many customers are at what stage
Project $$ revenue forecasts for your cash flow statements
Slide 24
Adapt the funnel to sell to first customers you target
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Lead to WinSlide 25
Agenda
Overview
Find first customers most willing to buy from you
Adapt the funnel to sell to first customers you target
Map funnel information to cash flows
Exercise #1 and #2
Sales and product marketing techniques to maximize funnelvalue
Exercise #3 and #4
BREAKUse the Internet to sell
Participants Open Discussion
Summary / Tasks Post Phase 2
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Lead to Win
Map the funnel to cash flows
Cash flow estimate:
Slide 26
Cash injection into cashflow is:
(closing date + credit terms)
at a value of
(deal size * funnel stage probability)
Cash injection into cashflow is:
(closing date + credit terms)
at a value of
(deal size * funnel stage probability)
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Lead to Win
Map the funnel to cash flows
Slide 28
With 60 day credit terms
Company Opportunity name
Funnel
value
Est Close
Date Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10
Steve co Product A $500 01-Feb-10 500$
Bob co Product A and B $5,000 15-Apr-10 5,000$
ABD Product B $10,000 01-Dec-09 10,000$
DEF Product A $12,000 13-Feb-10 12,000$
GHI Product C $30,000 15-Jan-10 30,000$
Blockbuster Product A, B and C $22,500 24-Feb-10 22,500$PWGSC Product C $34,000 04-Nov-09 34,000$
CIBC Product C $9,500 01-Sep-09 9,500$
Lead to Win Product A $18,000 01-Mar-10 18,000$
Redwood Product B $1,000 01-Jun-10
Totals $142,500 $0 $0 $9,500 $0 $34,000 $10,000 $30,000 $35,000 $18,000 $5,000
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Lead to WinSlide 29
Agenda
Overview
Find first customers most willing to buy from you
Adapt the funnel to sell to first customers you target
Map funnel information to cash flows
Exercise #1 and #2
Sales and product marketing techniques to maximize funnelvalue
Exercise #3 and #4
BREAKUse the Internet to sell
Participants Open Discussion
Summary / Tasks Post Phase 2
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Lead to Win
Using Exercise #1 Worksheet (next page)
1. List 10-20 potential customers and identify customer type (A,B,C or D) for
Leads
Qualified Prospects
Already engaged
1. Define Funnel Stages and according percentage values.
2. Populate the rest of worksheet for all fields
Slide 30
Exercise #1 Building Sales Funnel
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Lead to WinSlide 31
Exercise #1 - Worksheet
CustomerName
CustomerCharacteristics
Product Funnel Stage Stage Probabitlity(%)
Contract
Value
($)(
Co
1
2
3
4
5
6
78
9
10
11
12
13
14
1516
17
18
19
20
A: ready to buy New Opportunity 5%
B: need more research Initial Communication 10%
C: have problem, but get by Fact Finding 25%
D: no problem Develop Solution 40%Propose Solution 50%
1 2
3
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Lead to Win
Using Exercise #2 Worksheet (next page)
1. Transcribe Funnel Value and Closing date information filled in
Exercise #1 Worksheet into Exercise #2 worksheet
2. For each customer entry, enter the Funnel value into the
appropriate closing date column
3. Calculate totals for each months
4. Identify your typical credit terms: ___ days
5. Change closing date months to reflect credit terms6. Analyze cash flow requirements
Slide 32
Exercise #2 Sales Funnel Cash Flow
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Lead to Win
Exercise #2 - Worksheet
Slide 33
Funnel
Value
(Stage Prob *
Contract Value)
Estimated
Close
(month/year)
Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul -10
1
2
3
4
5
6
7
8
9
10
11
12
13
14
1516
17
18
19
20
Totals
1
2
3
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Lead to WinSlide 34
Agenda
Overview
Find first customers most willing to buy from you
Adapt the funnel to sell to first customers you target
Map funnel information to cash flows
Exercise #1 and #2
Sales and product marketing techniques to maximize funnelvalue
Exercise #3 and #4
BREAKUse the Internet to sell
Participants Open Discussion
Summary / Tasks Post Phase 2
Sales and product marketing
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Lead to Win
Sales and product marketingtechniques to maximize funnel value
Slide 35
Lead
s
Marketing
Sales
CHASM {
Sales and product marketing
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Lead to Win
Sales and product marketingtechniques to maximize funnel value
Standard ways of marketing your product
Print media
Visual media
Audio media
Tradeshows
Internet
Slide 36
Sales and product marketing
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Lead to Win
Sales and product marketingtechniques to maximize funnel value
Slide 37
Most effective for a start-up is Niche Marketing
By seeking out smaller segments of larger markets, marketing can
be developed and promoted quickly to uniquely serve a targetedand potentially loyal customer base, leading to a small but regular
income stream. This technique is then repeated across several
other niche marketing activities until a desired outcome is
achieved.
By seeking out smaller segments of larger markets, marketing can
be developed and promoted quickly to uniquely serve a targetedand potentially loyal customer base, leading to a small but regular
income stream. This technique is then repeated across several
other niche marketing activities until a desired outcome is
achieved.
Sales and product marketing
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Lead to Win
Sales and product marketingtechniques to maximize funnel value
Slide 38
Most effective for a start-up is Niche Marketing
Satisfying the needs of individuals
Marketing centered around people
Cultivating long-term relationships and trust with
customers, i.e. Communities
Hearts and minds
Concentrated effort:
saves time and money
focuses business
Greater customer satisfaction due to better served needs
Cultivates relationships
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Lead to WinSlide 39
Agenda
Overview
Find first customers most willing to buy from you
Adapt the funnel to sell to first customers you target
Map funnel information to cash flows
Exercise #1 and #2
Sales and product marketing techniques to maximize funnelvalue
Exercise #3 and #4
BREAKUse the Internet to sell
Participants Open Discussion
Summary / Tasks Post Phase 2
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Lead to Win
Exercise #3 Marketing Strategies
to complete for your business
1. List out all of the ways you currently market (including
costs). NB leave Internet out for now (next section)
2. List out all of the ways your competitors market
3. Brainstorm new opportunities in other modes of marketing
that may be relevant
Slide 40
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Lead to Win
Exercise #4 - Markets
to complete for your business
1. List the markets you are selling into
2. List the markets you intend to sell into
3. For each of the above define an initial beach head niche
4. List other potential niches to move to once you have
revenue in the first.
Slide 41
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Lead to Win
Use the Internet to sell
We are going to assume that everybody has, or intends toget a website going.
There are a number of ways to market on the internet, e.g.
Paid advertising
News channels/press releases
Social Media
We will concentrate on Social Media because this is
showing to be the most cost efficient and effective way tomarket to your audience today.
Slide 43
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Lead to Win
Use the Internet to sell
What is social media? Using the web to connect or reconnect with an individual or a
group of like minded individuals
What is a social network
A website or web-service with a database
Slide 44
Trends show that community users remain customers 50% longer,
spend 54% more than non-community users and visit 9 times morethan non-community users
Trends show that community users remain customers 50% longer,
spend 54% more than non-community users and visit 9 times morethan non-community users
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Lead to Win
Use the Internet to sell
Slide 45
Old New
Eyeballs Hands
Britannica online Wikipedia
Personal websites Blogging
Content Management System Wikis
Directories Tagging
Stickiness Syndication
Instant messenger Twitter
Conferences Unconferences
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Lead to Win
Use the Internet to sell
Social Media Tools RSS feeds
Social networks
Blogging
Micro-blogging Podcasts
Message/discussion boards
On-line video
Slide 46
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Lead to Win
Use the Internet to sell
RSS feeds People subscribe through an RSS aggregator to be updated of news
If you have frequent new updates, or use a mix of other social
media tools that you want to make people aware of
Social Networks Search to find individuals in companies to directly target
Ask questions to large populations of people
Take out paid advertising to a directed group
Start your own group, or join an existing industry group and
PARTICIPATE
Slide 47
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Lead to Win
Use the Internet to sell
Blogging Get your technical people to blog on relevant industry advances
Do NOT use a blog as an advertising medium
Comment on other blogs and try and get cross-referrals
Micro-Blogging More focused than blogging
Great to update people at events (e.g. conferences)
Post if you see something interesting, people use as a referral service
Slide 48
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Lead to Win
Use the Internet to sell
Podcasts Keep them short and relevant
Tie them to RSS feeds
Discussion boards (Website Toolbox, Invision etc)
Opportunity to be controversial (safely)
Constantly watch, nothing worse than posting and not following up
Reading other comments good opportunity for background research\
Good to test ideas prior to implementation
YouTube (or similar)
HUGE following
Opportunity to showcase products
Some associated production costs
Slide 49
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Lead to WinSlide 50
Agenda
OverviewFind first customers most willing to buy from you
Adapt the funnel to sell to first customers you target
Map funnel information to cash flows
Exercise #1 and #2
Sales and product marketing techniques to maximize funnelvalue
Exercise #3 and #4
BREAKUse the Internet to sell
Participants Open Discussion
Summary / Tasks Post Phase 2
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A d
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Lead to WinSlide 52
Agenda
OverviewFind first customers most willing to buy from you
Adapt the funnel to sell to first customers you target
Map funnel information to cash flows
Exercise #1 and #2
Sales and product marketing techniques to maximize funnelvalue
Exercise #3 and #4
BREAKUse the Internet to sell
Participants Open Discussion
Summary / Tasks Post Phase 2
I
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Lead to Win
In summary
There are a LOT of people you can talk to You should only talk to people that are prepared to give
you $$ if your product/service is right for them
Good, focused marketing will generate accurate leads
Initial filtering by conversation will categorize
Try to fill the pipe in priority order (A D)
Dont forget you dont necessarily want all As, a mix isgood BUT majority As and Bs is preferred
The further you work down the pipe the harder it gets
Enjoy sales and marketing is a rewarding experience
Slide 53
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Post Phase 2Tasks
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Lead to Win
Task 1 to complete for your business
1. Identify appropriate market segment to release technology into
2. Review list generated during Exercise #1 and add more target
customers
3. Blue ocean helps you differentiate from your competition, even ifyou are not disruptive perform analysis
4. This will enable you articulate key differentiators to your target
customers
5. Start phoning. For each call categorize the customer6. Identify and implement your own strategies for moving up the chain
7. Only return (initially) to the highest ranked customers for ongoing
business development
Slide 55
Find first customers most willing to buy from you
Ad h f l ll fi
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Lead to Win
Task 2 -Doing it in practice - extend the example
Simple additions that are valuable are (in no particular order):
1. Funnel value by month vital for cash flow forecasting
2. Average number of days per funnel stage (too see where your
blockages are)
3. Estimated vs actual close
4. % dropouts at each stage of the pipeline (closed lost)
5. Keep track of the contract value as it changes (initial estimate
final) to see how accurate your estimating is
Slide 56
Adapt the funnel to sell to first customers you target
Sales and product marketing techniques to
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Sales and product marketing techniques tomaximize funnel value
Task 3 - to complete for your business
1. List the ways you use the internet at the moment
2. List the ways your competitors use the internet
3. For each of your customer categories (A, B, C, D) list
appropriate ways of using different social media to reach outto them