Tag Archives: social

Anti – Social

13 Apr

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B2B Marketing with Marco

11 Apr

Great marketing stories watching old documentaries on Marco Pierre White

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The linear buying model

11 Apr

Social Media Marketing is Like Going to the Gym

10 Apr

I overheard someone I work with making an analogy about the gym and social media effectiveness. So often we hear people struggling with how to manage the return of their social media efforts. Sometimes I struggle when an  IT vendor says, “I can’t spend time or money on social media until I can get exact ROI.”  (Hmmm, I wonder what is the ROI on the beautiful fountain outside the HQ that costs $150,000 a year to run.)

Oftentimes I believe that IT marketers think social media marketing is like a gumball machine where they see an immediate return. They set up and run a program on Facebook, LinkedIn or Spiceworks and then leave it alone.  They are left wondering why they didn’t get a lot of followers or engagement. In their mind they got nothing back.

IT marketers seem to be so focused on the ROI of a one-time ad, web page or action, that they actually miss ( ironically) hundreds of thousands of dollars worth of opportunities because they don’t see that social media is “ongoing” engagement. They forget that you need to “go to” the buyers first, provide them value, and spend time with them before they may take action.

Here is a conversation between me and the fitness professionals at my local gym earlier this week:

Client: “Hey it’s Kenny Madden here. I joined your gym three months ago and I just weighed myself. I have in fact loss zero pounds since I signed my membership. I want to cancel my membership right now.  Where the heck are my lost pounds? I am paying you guys $35 a month and I want  my weight down or else.  What are you going to do about it?”

Gym Rep: “ Sir, I understand that you are upset but let me check our records and I will see what we can do.  Yes, I see you started your membership with us  four months ago but you have not actually come into the gym yet.”

Client: “So what! What has that got to do with anything? I paid you some serious money and I want to lose those pounds. I was told every dollar of membership would help me lose five pounds a month.  I am not sure what your trying to pull here but I don’t like what I am hearing!”

Gym Rep: “Sir I appreciate that you are busy and upset because of your lack of weight loss but I assure you, we see great results when our clients actually come into the gym, work out, use the pool, get to know folks in the gym and start working at building relationships within the confines of the gym.   I have actually seen several members who come in once a week.”

Client: “This is ridiculous, I paid you the money so I wouldn’t have to do any of that stuff. I don’t have the time or resources for that. In fact I am thinking about hiring several other people to go and do my exercising for me instead of giving the money to you guys.”

Gym Rep: “Sir, I think you will find you have to actually come here you to lose weight, stay for the long term, set small incremental goals, make sure you are the right gym and you can develop a program that will achieve all your goals.”

Client: “Hmm I will get back to you.”

  • Engage
  • Put some roots down and stay for the long term
  • Understand who your buyers are and where they live, work and play
  • Do so and not only will people follow you and respond to your campaigns, they will purchase your products – And that is the best ROI a brand can get.

SMARKETING 3.0

10 Apr

One of the major problems at technology start up’s today is the lack of understanding of how much sales and marketing principles have changed.“If I need to double revenue growth, I need to double my sales force to drive it” or “I need to generate 1,000 leads to generate one sale. Therefore 2,000 leads will generate two sales.”

This does not make sense and management teams are confusing correlation and causality. A vendor who believes in this may as well claim, “Christmas trees cause Christmas.”  The majority of technology start up management teams are still under the influence of the 1980’s and 1990’s mind set. Sales and marketing has changed so much that it is amazing. The problem today: Not generating enough qualified pipeline and sales to hit and exceed estimated revenue targets.

Here are the two major root assumptions among executives, founders and VC firms that cause the majority of the problem:

1.  I need to double my revenue, therefore I need to double my sales team, and
2.  Salespeople can find new business on their own

No they won’t. They may find some but not enough to feed themselves. Here’s why:

1. Salespeople are terrible at prospecting. Sometimes it has takes 30 – 40 attempts to break into a company and qualify a brand new opportunity.  Salespeople usually stop after 4 – 5 times.

2. Salespeople hate to prospect and do the upfront work to drive demand. Salespeople want to sell – not drive demand.

3. Even if a salesperson does some prospecting, as soon as they generate some pipeline, they become too busy to prospect. It is not sustainable. This is why ramp up times are so much longer than anticipated.

Salespeople do not cause customer acquisition growth, they fulfill it.

It’s a huge shift in thinking. Of course a company needs more salespeople if they are getting bigger, but this is not the main cause of new customer growth. Marketing, awareness, demand generation and engagement causes new customer acquisition and sales fulfills that demand generated by marketing. There aren’t any quick fixes to this problem. However, there are ways to solve this. I have outlined, in brief, a few ideas below for you to consider.  These are especially important for companies with a high volume sales model.

1.  Trial-and-error in awareness, demand generation (requires patience, experimentation, money) MUST be a true combination of sales and marketing team working together. I jokingly call this SMARKETING but it works.

2.   Use CRM religiously and track, track, track.

3.  Have patience in building great word-of-mouth.  This is the highest value lead generation source, but the hardest to influence.

4.  Create a well supported sales development team with resources.  This is by far the most predictable source of pipeline, but it takes time and focus (ties in to point # 1.) This is the BEST indicator of pipeline generation in the short term. We did this at a previous company and took the business from $1.25 million to $6 Million.

5.  Use PR & Social media outreach on a consistent basis.

6.  Find the right network.

7.  Target social networks that are relevant.

8.  Listen.

9.  Engage.

10.  Track results.

11.  Calculate the amount of qualified pipeline your company needs to generate on a monthly basis? Most start up’s do not know this.

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