A big factor in the entire lead-to-revenue (L2R) process is making sure that you start with the right marketing and sales model. In our initial engagements with B2B clients, we are sure to ask them the types of questions that let us know whether their go-to-market model needs just a tune-up or a complete overhaul. See related blog post on this subject.
Before you evaluate a new way of doing business, it is very helpful to make sure you fully understand your current situation. Here are six key questions to ask:
- How did your current marketing and sales model evolve? We find that many of the go-to-market models we see happened over time because of ad-hoc actions – and not a well thought-out and top-down strategic plan.
- What is your motivation for keeping the status quo? Sometimes people that want to do better stick to their current model because they know that change will be long and painful or because a CEO, founder or board member wants to keep it despite the flaws.
- Are you doing things out of habit or by deliberate choice? A lot of what we do, and not just in marketing and sales, is done out of habit. If that is the case at your company, ask the question: If we were starting over, would we design the system in its current form. If the answer is no, ditch the habits and implement a better model.
- Are your sales force and marketing teams earning their keep? We work with some great companies that have solid professionals in the marketing and sales ranks. But I have seen others where the team is just not up to the task of creating and implementing an optimized sales model. This question may lead to some tough decisions but it’s better to get this figured out early.
- Are your current processes helping or hindering progress? When designing a lead-to-revenue framework, you should start with processes. Here are seven items to confirm:
- You use conversion ratios to monitor results at every step of the process and you utilize this data to consistently produce greater results.
- The system produces a high percentage of qualified leads relative to raw inquires (this is a key conversion metric).
- You follow up all leads in a timely manner (within 12-24 hours), except those that are obviously unqualified.
- The inbound lead flow is balanced by territory, sales rep, and product line.
- You produce inquiries/leads at a reasonable average cost per lead. These vary by industry and sales model.
- You capture all information generated from inquiries and from follow up efforts immediately (and preferably automatically) in a database system.
- You have a systematized nurturing process that converts a high percentage of today’s B2B sales leads to future customers.
You should also consider whether there any time bombs at your company? Time bombs are those issues that, if not addressed, could have serious consequences downstream. If you prefer a different analogy, think of time bombs as the potential “Achilles heels” of your organization – where you are most vulnerable to atrophy or attack.Here are a few of the most insidious time bombs:
- Metrics that are way below standards – for example, a high cost of customer acquisition.
- Good products, but a sales team that is stable, comfortable, and inefficient.
- Channel partners that are leaving you for the competition.
- A prohibitive cost-of-goods.
- Products that are more than one generation behind the competition.
- Staff that is mediocre or undependable.
Ask the tough questions early, decide whether you need a marketing and sales model tune-up or overhaul, and then take action to ensure a more successful 2018 B2B sales and lead-to-revenue model.