Sales Leadership

Sales leadership should not be confused with sales management; sales management implies authority to manage the sales team whereas being a sales leader implies team buy-in and commitment from the sales team towards higher business goals.

sales-leadership

In a rapidly changing sales environment, decisive sales leadership can be the difference between a company that thrives and a company that struggles to acquire enough customers to survive.

Sales leadership could be described as “the ability to get a salesperson to do something the sales leader wants done because the salesperson WANTS to do it.”

Here are a few qualities sales leaders have that separate them from just being sales managers.

  1. Sales leadership decisions are based on data

Selling is a numbers game, being a sales leader is part people artist, part data scientist. A successful sales strategy is measured in results – performance against targets. Were the sales results better than last quarter? How fast is the company’s revenue growing? Sales leaders know there cannot be “sales teams higher order needs” if the core sales results are not being delivered. Sales leaders through to sales managers or front line sales supervisors need to be number driven, using the data as proof of leadership effectiveness. Using data for sales and performance analysis allows sales leaders to make decisions for future sales growth or plans.

  1. Sales leaders have vision

The sales management aspect of running a sales team is mostly tactical, at the coal face level, sales leadership is about understand the business mission, the product strategy, the market dynamics, having a vision to where the sales growth can flow from and then putting in place plans and direction. Sales leadership is about taking the time to think strategically. Sales leaders impart there vision while stamping there mark on the culture of the sales organisation. Sales leaders devise sales plans, define, communicate and redefine the sales processes while uncovering sales effectiveness drivers using KPI’s.

  1. Sales leaders are empowering

Sales leadership is about getting the balance right between “Activity based management” and “Results based management”. Strong sales leaders empower their sales managers and sales reps to succeed using results based management. This means that Sales VPs or senior management sets the results and vision; they then empower the sales management and sales teams to execute the agreed sales tactics. Leaders lead and managers manage, this is why sales management is more focused on day-to-day sales execution and coaching the sales teams to sell more effectively. Sales leadership focuses on the data coupled with business mission to map out plans that gets buy-in and commitment from all the sales to the point where the sales team(s) WANTS to follow the sales leader and believe in the vision and strategic direction that the sales leader has communicated.

The effort and dedication to earn the title “sales leader” is high, and the business acumen along with business skills sales leaders must master require time and learning.

The path to sales leadership is no easy walk, and not every sales manager will join the ranks of company sales leader (usually a director or VP title. Why? Well research suggests that the average lifespan of VP sales is about 24 months. Why the short career? Today’s tough business market means the CEO has to deliver growth and change. If the sales leader does not manage the change, the CEO changes sales management.

So to be successful in sales leadership, a person has to have the vision. They take the time to think and plan ahead while executing against targets today. Sales leaders see the big picture. While sales managers know the “What” sales leaders know the “WHY and the “HOW”, sales leaders see opportunities and how to get them. Sales leaders inspire while keeping the sales team on track and on their toes. Sales leaders are tough, they say, “Let’s get moving or get left behind.”

Key Performance Indicators for Sales Success

Key Performance Indicators for Sales Success.

Sales in a digital driven world brings different challenges for the sales team, Key Performance Indicators (KPI’s) and sales metrics that reflect this shift is critical for sales success.

Measuring sales metrics like revenue per head, order values, margin mix are still valid measures for sales management as selling is a numbers game. However these metrics are only indicators of past performance, it allows sales management to measure the output but they don’t monitor the inputs needed to grow sales. Sales KPI’s are what sales managers or sales leaders need to use as the indicators to future sales success, indicators that show gaps in the sales process, how strong the sales funnel is, how deeply is the sales team connected to the industry and KPI’s that pinpoint coaching areas to lead the sales team in higher levels of performance.

sales-kpi's

“KPI’s – Measurements of sales activities that are vital gears in the success of a sales engine”

What does the term Sales KPI’s mean?

When sales leadership discuss the term KPI it is not always understood by the sales team or sometimes even management itself. To be defined as a Key Performance Indicator within the team it must be:

  • KEY to the future success of the organisation. A KEY is a measure, one of the plates management want to spin. An example could be “how many direct contacts and connections a company has with buyers in a market segment”
  • The KEY is then related back to the sales team PERFORMANCE where it is measured, monitored, quantified and can be understood by all the members of the sales and marketing teams. Linking a KEY to PERFORMANCE could be benchmarking when a sales person connects (phone call, LinkedIn, meeting) and influences (with great content) to an executive level decision maker in a customer segment.
  • Then this KP (Key Performance) will be used as an INDICATOR; where this information will be analysed to model future sales results or sales plans. So in this example, sales management might want to track the amount of time the sales teams spend social selling, the size of their LinkedIn/CRM database, the number of calls and the amount of time they spend influencing executive level decision makers in their accounts, and then set some SMART sales expectations there that can be measured, maybe the prospect to lead ratio, or lead to proposal ratio.

So when sales leadership discuss Key Performance Indicators (KPI’s), the sales team know to focus on indicators as part of their sales role – the team and management will use KPI’s as signposts along the way to focus everyone to spend time on activities that need doing in order for everyone to be successful now and in the future. KPI’s is one of the best ways to keep a sales strategy on track. Planning and laying the foundations are future success leads to great sales outcomes.

Remember that KPI’s and sales metrics are not the same. Sales metrics are outputs and results that are measured “past performance,” and sales managers have a tendency to give these most attention because they tend to be the metrics that go into sales reporting to senior executives.

KPI’s with a focus on the “Indicators” are sales activities and actions that will be tracked or measured for future success (as the sales pipeline is refreshed).

Here is some sample Key Performance Indicators that could be implemented.

Note: Sales KPI’s are about desired business outcomes, so they will be unique and individual to every business. So begin the construction of sales KPI’s with a clear understanding of the sales strategy and business goals. Try and ensure the KPI’s are specific, maybe it is to “Shorten the sales cycle by 40%”,” Generate 50% of sales leads from social selling” or  “Get existing customers usage up by 20%”. If a business links sales KPI’s to sales strategy and is clear about where the business is going, then any business will have a set of sales KPI’s to get the business to where it wants to get to.

Lead Generation Funnel

Lead generation is not the sole responsibility of marketing, think Smarketing; where sales and marketing both generate leads. How fast and at what cost can qualified leads be generated?  So the KEY is “number of sales leads generated this week” “PERFORMANCE” could be something like the lead response time (especially on inbound leads) to talking (yes talking) to the customer.

The “INDICATOR” might be how many leads got into the sales funnel (lead to proposal ratio). So have the lead generation funnel as a sales KPI , the business can determine how many and who generated sales leads, ideal contact times/points, rate of lead to prospect or how many leads does it take to generate one prospect.

Social Media Selling

This KPI will grow in important over time, social selling to influence buyers and as a channel to lead nurture is now paying dividends for forward thinking companies. If a business is in B2B selling then the sales teams needs to be social selling. Research from top performing sales teams using LinkedIn to build connections show a direct correlation between social media selling, leads and revenue as a result of activity in this channel.

KEY = Number of connections in sales funnel on Social Media

PERFORMANCE = number of leads generated or document views on LinkedIn or SlideShare

INDICATOR = Number of buyer discussions or leads generated from social selling channel

Sales Cycle

Sales Cycle is more of a sales process KPI. How many touch points (calls, meetings, presentations) over a given period of time needs to happen to ensure customer moves through the sales funnel. It also includes rate of contact as the focus is on the levels of performance and efficiency not just with the sales person, but with the company including pre-sales and customer service. When a business understand the sales cycle length it can forecast, budget and adjust the lead generation funnel creating efficiency in the sales engine but also controlling cost of sales.

Lead to Win/Lose Ratio

This KPI is critical to understanding how effective a sales person is at moving customers along the sales cycle. It also can throw up questions on sales training, product fit and pricing strategy. The focus here is on the lead drop-out rate, the connection between social selling and the sales cycle process. What is profile of customer guided through the sales funnel and what is the profile of customers who abandon the sales process at the proposal stage (think buget, needs, authority).

Sales KPI’s are powerful because they help sales leaders or senior sales management make better decisions, which leads to better sales execution and ensures a consistent approach across the sales focus. But mostly sales KPI’s ensures that the sales teams are connected to the overall sales or business strategy because everyone is focused on the KEYS that will make the business stronger.

Sales Strategy Plan

A sales strategy is the process of matching the business purpose or mission with a sales plan, then putting in place goals, metrics and sales tactics. The sales strategy will also map out courses of action and allocating resources to achieve the selected goals and tactics.

sales-strategy

A sales strategy is really about answering the one critical question “What is the best most viable method for the business reach paying customers for the product or service? Is it sell to or sell through, direct or indirect?

Before a sales strategy addresses how the sales team will sell or, it must first address how customers are buying. Today customers are seizing the balance of power in the buyer-supplier relationship, more and more aspects of the sales process is being played out online, so companies need to structure the sales plans and resources for this new reality.

  • “57% of the purchase decision is complete before a customer even calls a supplier.” (CEB)
  • “67% of the buyer’s journey is now done digitally.” (SiriusDecisions)

Today’s selling reality.

Potential customers or prospects will have researched a supplier based on digital reach and industry influence before a sales rep ever gets to talk to them

Sales and marketing are now one team, an integrated “Smarketing” team that functions to target and acquire customers.

Understanding customers buying behaviour define the product offerings.

To sell more and win market share a business needs to offer more seamless customer service touch points through lower cost channels

Vanilla flavoured selling will disappear, sales teams need to be specialised, social enabled and multi-channel savvy.

Sales reps have to work at adding value in the sales process rather than just quote features and benefits.

Sales complexity and the sales process needs to be minimised to ensure selling costs are controlled in a tighter margin environment.

The key Sales Strategy Questions.

Asking and answering a series of sales strategy questions will help a business identify and take advantage of the best opportunities to sell better and more often. Also Sales leaders who acknowledge the new selling reality need to know how to answer questions like:

  • Does the business have a market development lead strategy (selling more of same product to same/new customers) or a product development strategy (selling new products to same/new customers)?
  • Who is the business selling to? Does it know which market segments have the best growth rates?
  • What is the most effective means of reaching target customers and what is the cost in taking this route?
  • How does marketing and sales share the workload and collaborate?
  • How does the business equip the sellers (direct, indirect, partners) with the right content, expertise and skills to navigate the customers’ buying journey and then differentiate the business value proposition?
  • Does the business collect and analyse data to forecast which products customers are likely to buy or trends developing?
  • What is the most effective sales and distribution model?

“To compete in today’s customer educated world, companies got to have something different. The product must higher quality, easier to use, more convenient to buy, or a better fit than the competition.”

Sales Strategy Selection.

The sales strategy selection should cover what is the customer sweet spot, what are you offering them, sales deployment for customer coverage based on customer sweet spot, sales and marketing activities, what sales and marketing enables/tools will the business use, how you will manage and track performance against the goals.

  1. The target market. This is the customer selection, customer sweet spots where the sales and marketing focus will be.

Give it some detail. Once the target market has been defined, give it some detail. How big is it, profile of customers, buying preferences then create a hit list. The hit list should be number and data driven, do you have 100 or 1000 or 10,000 prospects on the list.

  1. Reaching the target market. What is the primary reach method or put another way “what is your customer acquisition plan”, is it on-line, social media, cold calling, partners, channel or networking?

Regardless of the method to reach paying customers, reaching the target audience takes “Smarketing”, sales and marketing working together on tactics like content marketing, social selling, industry influence, thought leadership, blogs, and whitepapers, audience reach on Twitter, Facebook, and LinkedIn etc.  Effective sales strategy using Smarketing means a business drives marketing qualified leads (MQL) and sales-qualified leads (SQL) into one sales funnel, then measures, monitors and ensures follow up on the leads generated for the business.

A business needs to map out the sales cycle and sales process. This is all about getting the sales team selling. The “Smarketing” effort should have a target of generating leads via inbound marketing, landing pages, request for information, social selling on LinkedIn and other social media sites, cold calling or field visits.

  1. Customer Nurturing. The sales process should be void of any unnecessary complexity or obstacles in customer interaction. The sales process has to include social selling, where the sales team gets engaged with social selling to the prospects. This stage is where prospective buyers are sourcing, digesting and reviewing information and content. A recent report by Act-On showed that 85% of Business-to-Business buyers said it takes three or more pieces of relevant content to help make a decision on progressing with a supplier. So, a business can lead nurture by influencing the buyer to take action by feeding them with relevant content on their terms or personalised preference.

Make sure the sales teams are delivering on what the marketing message promoted. Vanilla feature and benefit selling is gone, train the sales team to be industry experts, build the customer relationship. Don’t expect them to stay with you or use you for other needs if you are not taking the time to build a relationship with them. The sales process does not end with the sale.

  1. Collect and Analyse Data. This is one of the most critical aspects of a successful sales strategy. As a business moves forward with the sales plan it must collect, track and analyse how well the sales tactics, product offerings or pricing is working. Every sales rep to sales leader should be asking these questions:
  • How did it go?
  • What worked?
  • What didn’t work?
  • Did we hit the numbers?

Collecting the data gives the insights as to what works and what does not so a business can tweak the sales process.

So to recap, the Sales Strategy should cover:

Target Customer Profile – Customer Segmentation – Sales /Distribution Model – Sales Process Definition (i.e. Sales Cycle) – Sales Funnel Calculation – Pricing Strategy – Upselling and Cross selling Strategy

The actual Sales Plan Components should include:

Sales Materials – Content Materials – Sales Team – Smarketing, Sales Pipeline – Customer Nurturing and Channelling – Sales Cycle – Closing Techniques – Sales Forecast – Timeline – Budget

The challenge for sales leaders today is to better execute on their sales strategy. Buyers and business even consumers are going through changes in what they buy, how they buy, and what they are willing to pay for it. As buyers change how they buy, vendors need to change how they sell. The way a business sold its products or services is not going to cut it in the future. Sales strategies need to be nimble, social driven and customer lead. Now is the time to revisit and revise the sales strategy.

Social Media Marketing – Powering Sales

The use of social media within digital marketing and inbound marketing has become an important gear in the sales and demand generation engine. The sales and marketing engine needs fuel (supply of traffic or prospects) which the engine turns into visitors and leads where sales converts to customers.

social-media-marketing

The use of social media and lead generation are the gears which powers the engine. The bigger the social media gear size the harder the marketing gear works. And the harder the marketing gear works, the faster and more productive the sales machine will work to generate revenue.

Social media (blog, content marketing, and articles) is the gear that gets the marketing and sales engine working. Social media pulls in the traffic and prospects and converts them to visitors or leads. When driving a car, we push the pedal to the metal in the highest gear to get to a destination faster. The same logic applies to inbound marketing and lead generation. A business needs to work the biggest gear, social media, to ensure a constant supply of visitors, leads and buyers to power the business growth.

Social media also impacts SEO and long tail keywords. So if social media is the gear, then content marketing and blogging platforms like WordPress, Medium, Svbtle, Postach, Ghost, LinkedIn Pulse, Storify, Tumblr, Blogger, Buzzfeed etc. and the traffic they can generate is the fuel that turns the social media gear.

To put the potential impact of social media into perspective, here is some insightful statistics’ on buyer decisions.

  • “57% of the purchase decision is complete before a customer even calls a supplier.”
  • “67% of the buyer’s journey is now done digitally.”

Big business or small business, it is vital to have social media in the marketing plan for lead generation and inbound marketing strategy. Every marketing team has to see social media and inbound marketing tactics as a critical gear in the buyer’s journey.

Social Media Marketing Is Critical for Inbound Lead Generation Success, so is Sales.

The days when demand generation meant only using paid search or media placement and email marketing are over. Today’s buyers are on a different journey where business buyers and consumers are using keyword search and social channels to find content upon which to make informed choices. In fact, they are now in control of the buying process where they are start the demand generation process without any seller being involved.

Social media does not replace selling, good sales or selling practises, as research shows that talking to a sales person still has a strong influence on buyers vendor selection. Social media and inbound lead generation is just a gear (a vital gear) in the lead-to-revenue path that enables marketing to funnel leads to the sales machine, which turn them into customers.

Another reason that social media is a gear which needs to be connected to the sales engine is that while social media and inbound marketing can deliver more leads at a lower cost than outbound marketing or sales, inbound leads take 30 to 40% longer to move through the sales funnel.

The other Digital Marketing Gears

Like any engine, the sales and marketing engine needs more than one gear to power it, gears like social media selling, SEO gear, paid search (SEM) and email marketing gear all play a key role in lead generation and lead nurturing. Successful inbound marketing is about getting the mix right between short term tactics, longer term tactics and tactics that deliver demand now.

The Actions and Actives in getting the Social Media gear moving.

  1. Publish and Attract. This is about pulling in the fuel (traffic, prospects, suspects) into the engine. The greater the reach via multiple blogging platforms for content marketing, research papers, articles, the bigger the awareness a business can generate by posting the content via Facebook, Twitter, LinkedIn, StumbleUpon, Pinterest, SlideShare, Google+, Reddit and other content marketing sources. But attracting traffic and visitors is only VANITY, leads and customer engagement is SANITY.
  2. Convert. This step is about getting the traffic into visitors who will convert into at least repeat visitors to gather more information or as leads (newsletter signup, free trial, landing page, and request for information form). This convert point means the traffic the social media gear is attracting is the right profile plus they like the content or messaging pushed out. Other good convert points should include the visitors who follow, shared, liked, commented or republished the content. This convert point means a business has taken a step closer to building a relationship and nurturing the lead through the sales process.,
  1. Lead Nurturing. The lead and customer nurturing process fits between the attracting and closing stages. Returning visitors will seek out fresh content or product information, people who signed up for newsletters or email updates need to be influenced. The sales team should now be engaged with social selling to the prospects. This stage is where prospective buyers are sourcing, digesting and reviewing information and content. A recent report by Act-On showed that 85% of Business-to-Business buyers said it takes three or more pieces of relevant content to help make a decision on progressing with a supplier. So, a business can lead nurture by influencing the buyer to take action by feeding them with relevant content on their terms or personalised preference.
  2. Close. This stage is where leads are moved through the pipeline to become customers. Returning visitors will reveal themselves to enter into the sales funnel and existing lead nurturing prospects move down or out of the sales funnel. The key measure here is conversion, what is the lead-to-revenue conversion rate? What is the cost of customer acquisition? Closing is both a sales process and a workflow process so marketing and sales management need to work together to audit the attract, convert, lead nurturing and closing stages to ascertain what is working and what is not.
  3. Pipeline Replenishment. Reduce the cost of marketing by getting customer referrals or customer net promoters. The stage has to do with social media monitoring and sales teams using social selling to stay in touch with customers and expand their network. This stage can include surveys, feedback, and publishing new content and listening to social media chatter

Social media marketing is a process to generate leads via well written content that is published across multiple social channels resulting in lead nurturing activity by marketing and sales where strangers become customers

Customer Service Tips for Business Growth

Customer service has as much a part to play in customer acquisition or business growth as sales.  Customer service and how it is delivered must evolve alongside the adoption of social media and technology by consumers and business. Customer service is no longer an “after the event” function, it now impacts sales, business growth even product development.  We live in a digital world of connected people and devices. Today the world is talking about new technologies such as the internet of everything, products connected to the home, technologies and apps to improve everyday life.

customer-service

A company’s business prospects or potential customers are as new as these technologies. They are curious and now use different ways to research a brand or company before interacting with it; they are constantly gathering information from social networks and digital media to make informed decisions.

The sales and customer service channels are being rewritten, the buyer journey has been revolutionised like never before. Here are eight things a business should know to help acquire customers and grow a business.

  1. Customers like knowledge and to be informed.

Customers and potential customers will help themselves to product or company information if you provide a content library via the web of FAQ’s with at least 100 questions. If they don’t get it on your website, they most likely will go looking elsewhere in the presale process or phone customer service in “after the event” process.

Help content to support customer interaction should include how-to video content, written FAQs, product specs, replies to queries from social forums and research articles.  The goal is that this open availability of content will satisfy customers quest for information, allowing the customer service team to focus on higher impactful issues that need one-to-one attention. An informative and comprehensive FAQ page is a win for any business because it requires just time, not money.

  1. Customers want it to be personal.

Personalisation is the only game in town. Bland demographics are out. Selling today is all about the uniqueness of each potential client. Prospective and existing customers expect offers that are relevant and useful. Do not simply blast out mass messaging or post links on LinkedIn, nothing worse than ill-timed or ill-targeted messaging from a company to turn off customers.

A simple business tip is to focus on building personal relationships and remembering  about individual preferences uncovered along the way.

  1. Be flexibility with your policies.

Business policies may suit the business but do they endear customers. Consumer data shows that 70% of buyers feel that brands are motivated by a self-centred desire to drive profits rather than any genuine commitment to their customers. Some forward thinking companies are turning that feeling around is by becoming more flexible with purchase policies, returns and cancellations.

In the B2B market, especially in digital goods and software, buyers want to try before they buy and not be locked in to a purchase if not for them. Best in class companies are offering more transparent buying procedures, less restrictive return and cancellation policies. Flexible and transparent polices can act as a customer promoter.

  1. Clear the clutter in purchasing and interaction points .

No matter how big or small your business is, do not put clutter in the way of your customers when they want to purchase or interact. Buyers are educated and most are digital savvy so reduce down the steps when it comes to buying. Take the examples of pre-checking in on flights, paperless tickets for events, touchless payments in shops or ability to download and complete forms ahead of time to save time at hospitals.

These are just some of the examples a business can brainstorm how to clear the clutter and streamline purchasing and customer service.  Where do customers experience the biggest clutter points (usually measured in cart abandonment, exit pages, contact forms and phone calls) in your business? That’s the parts any business should clean up.

  1. Turn customer service into a marketing department.

Customer service is the new marketing. Easy access to information, FAQ’s and touches points to interact with the company impress a customer more than flash ads or meaningless straplines. The old saying of you only get one chance to make a good impression has never been truer with time poor buyers. It really is simple, use customer service as a way to compete and as a customer acquisition channel.

  1. Customers want a multi device experience.

Customers or prospects are searching, researching and checking out websites or social media channels while on the move. The key is to make it easy for anyone to share your content and communications around the web on smartphones and tablets. Ensure to test all the various elements of a customer’s journey on multiple devices.

7. Look at every touch point

Why spend money getting traffic, leads or sales when a bad customer experience at any point in the customer lifecycle can kill the customer relationship with a click. In is in every businesses interest to ensure the right skills and information is being deployed, does customer service understand their strategic importance. Focus in on the major touch points, but make sure the whole customer experience has been plotted. Customer service that is not fully integrated or with holes in the touch points can really hurt business growth.

  1. Business mission matters

Business mission matters so share it and live it with staff and customers. Customers and prospective buyers will take note if you let them know the business mission and why you are in business.

The bottom line is the customer service team is often the face and voice of a company. In the digital age a customer’s experiences will be defined by the information, skill, accessibility and quality of the support they receive.

A business who just wants to survive will have to have good customer service as standard, but a company who wants to grow and thrive will always be asking “What is great customer service?” These companies will constantly be on the lookout for opportunities to improve the customer service and use it as a customer promotion or customer acquisition channel.

 

 

Social Media Selling for Sales

A growing use of social media within companies by marketing and sales teams is in the area of social selling.  In the sales process connecting with prospects and establishing relationships can be the difference to winning or losing deals, more and more companies are using social media selling to help them accomplish these connections quickly and easily.

Selling and sales methods are evolving; the vast majority of buyers (business or consumers) are socially engaged and informed. The sales team must be too. They need to have the tactics, tools and training to leverage social media for sales success. The innovation of the Internet, cloud based business models, smaller transaction values and the adoption of sales technology tools means the sales profession is in a state of modernisation.

social-media-selling

The Inform versus The Interruption based sales model.

Why bother with social selling? Well still too many sales models are “interruption” based, meaning the sales person or marketing function targets a list of prospects then emails them, phones them, advertises on-line to them, chases them, which is still based on the hard sales concept (even if the actual sales discovery/meetings are collaborate the approach to getting the prospect to engage is interruption based).  Social selling with social media is when the sales team or marketing use social media to engage directly with selected prospects across a range of social networks. The sales team strives to provide value in the sales process by answering prospect questions, posting relevant content and offering insightful information on the company or product until the prospect is ready to engage in the buying process.

So social media is informed based, to intelligently inform a target audience thus allowing the sales teams to enlighten their prospects rather than interrupt them with cold calling or hard sells for meetings. The goal of social media selling is getting buyers into the sales funnel further down, it is about informing and educating prospects then converting them into buyers.

The shift in the way people are buying means sales trainers and sales teams have to shift the way they are selling. The Internet has changed the sales game, time was the only way a potential customer could find out about a product fit was to engage the company or more likely the company interrupted them. Not so any more, now Google, LinkedIn and on-line business forums will allow any buyer to identify the competition, do research on companies and narrow down the potential supplier list which will inform them on their purchase options. Options the supplier company can inform on via social media or let the competition do it. Studies in the sales process have proven time and time again that many buying decisions or lists of preferred vendors are made before a salesperson is even in the conversation, with many companies merely used as a stalking horse.

Sales success in Social Selling.

Before, the sale team signs up for twitter accounts or join hundreds of LinkedIn groups, to be successful in social selling they need to make the following happen.

  1. Sales people must give first, offer content, help and engage their network to become trusted.
  2. Sales people must change their behaviour and interact as buyers expect today.
  3. Sales people need to inform and connect social ties, mainly weak ties.

To assist sales teams with this sales transformation we will start with “social ties”. Almost everyone’s “social networks” is made up of a range of social ties that consist of friends, family, fellow workers, and other acquaintances. Typically this includes a group of very close social ties (family, friends) and a considerably larger number of weak ties (loose acquaintances) that get weaker as a persons social network grows. Across social networks today, the average user has over 800 social ties.

Why is this important to a sales person? Well it has all to do with the concept that weak ties are better than strong ones in social selling.

In social selling building a social network with weak ties offers the best sales opportunities in the longer run, due to different people and interests.

Why Weak Ties Are Better Than Strong Ones.

Well Doctor Mark Granovetter (author of “The Strength of Weak Ties) defined a social tie (and its strength) as, “a combination of the amount of time, the emotional intensity, the intimacy (mutual confiding), and the reciprocal services which characterize the social tie.” And if a sales person only spends time with stronger ties, then they only inform similar people, with similar skills, and similar interests.

Sales people and marketing need to understand that every social network is really a collection of smaller social groups.  The key is to inform the people who are weaker ties within this structure so they can act as a “bridge or broker”, by connecting the sales person to other groups of people as it is weak ties that allow a bridge to occur between two different social groups. A strong tie will usually only connect to similar profiles or interests.

When a sales person spends time informing and engaging weak ties they start connecting with different people, with different profiles, different connections and different interests.  And as a result of this, they create a network effect, opening them up to finding newer and different opportunities for development.

So the More Weak Ties, the More Opportunity.

Thanks to social media and social networks like LinkedIn, the average person has more weak ties than ever before. However the next challenge for the sales person is that is it not as easy to leverage weak ties. They can’t just phone them up and ask for a coffee or meet for lunch to ask them for an introduction to a company or buyer.  Sales people need to have a gradual approach, maybe some gentle nudging with insightful content on an industry, and over time grow the connection into a real business relationship.

This “inform” concept is at the core of social selling, because sales people need to build trusted relationships from the thousands of weak ties they are connected to today in order to influence the social ties they want to be connected to sometime down the line.

Sales people must change their behaviour to Social Selling with a Small Habit.

For social selling to really work, sales people will need to change their behaviour.  As anyone in sales understands, nothing is more important than hitting sales targets for this sales period and the next one will be just as important. But if a business or sales person wants to continue to succeed, they need to start building a social ties network of future opportunities now.

A simple method to do this is for sales people to form the small habit of sharing relevant content to their social network.  Train sales people that in quiet times, maybe as they wait to board a flight, having a coffee or after they check email, share some content prepared by marketing (not sales brochures or self-promotions) or maybe an article they read on LinkedIn, or twitter. Don’t bombard social ties with badly written or irrelevant content. As the sales person builds weak ties connections, they could send it directly to them as long as they know they will find it interesting.  Start small, maybe once per week, and they encourage them to gradually increase that to 2, 3 times per day.  Be thoughtful, be informative but build this habit.

Social selling using the Inform sales model is not a might do, the world and sales channels are shifting, selling power is in the hands of the buyer and buying power is in the hands of the seller, so sales people need to use social selling to attract buyers the same way as buyers are using social media to identify sellers.

Sales Management

Sales management or being a manager of a sales team could be described as leading people to higher levels of achievement to deliver company growth while implementing the sales process the company uses to target prospects and convert them to paying customers.

The starting point to managing a sales team is not with the sales team but with ourselves whether we are a sales manager or sales director. The reality is that to successfully manage and build a high performing sales team, the sales team needs a high performing sales manager.

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“People tend to follow those who will lead them somewhere”

To manage the sales team to high levels of performance, the sales manager needs at a minimum the following four competencies: (1) general business and market acumen, (2) ability to deliver effective coaching, (3) strong leadership skills and (4) evaluating and communicating individual salesperson performance. Sales managers who build on these core competencies are on the right track to managing the sales team.

In today’s highly competitive market with longer sales cycles and maybe smaller sales values, for a business to successfully sell their products or services, the sales leader needs to have these competencies to effectively manage and lead the sales team. The sales manager responsibilities also extends so that the sales team not only understands the sales objectives but the company’s overall strategic direction. It is about managing the sales team so they want to fully apply themselves to their roles and maximise their selling skills to sell solutions to customers.

Walk the job: As a sales manager, you need to allocate the time to work closely with your team so that you develop an understanding of each person’s motivation, strengths and weaknesses. This walking the job and communication will over time help a sales manager to put the right salesperson in the right sales role (hunter, miner, and farmer) that best suits the requirements of the sales process. A sales manager needs to organise the sales teams so that there is a range of different people bringing a range of different skills and experiences to the business.

Control: A sales manager can only control the outcome if they control what the sales people do! A balanced approach to managing sales people is about mixing activity based management with results based management. This is also known as Task V Individual in management schools. “Activity based management” is about giving the direction and coaching on the sales process and ensuring the associated activities get done. This could be coaching and educating sales people how many calls to make, how many appointments to set, what suspects to call, which products need to be pushed, etc.  The activities or tasks may be set by senior sales management or by the sales manager to assist the sales people to take ownership in managing their own sales business.

Remember that activity based management is not about trying to kill creativity or initiative in the sales process. It should be used to define the sales role expectations so that a sales person can take ownership of their role and clarifies the sales person question of “what do you want me to do?”

The “Results based management” aspect for a sales manager is to focus on the individual sales member’s goals, actions and target results.  It is about giving the sales team ownership and the ability to approach a sales process or task that suits their style. If a sales person likes to make a LinkedIn introduction prior to a sales call, then fine. This is about asking the sales person what their plan is to hit the sales target or what their personal goals are for a given sales period. Don’t be afraid to listen to the sales team’s views or insights on getting the desired results. It gives them freedom and shows you value their input.

If a sales manager gets the balance right between Activity and Results based management, sales teams realise their manager is leading them somewhere (bigger earnings, recognition, promotion, job enjoyment).

The Sales Managers “Playing Lines”.

Sales managers should set playing lines at an individual sales person level, they are at their widest when a sales person is delivering the agreed results, and the playing lines are at their tightest when the results are not there.

Playing lines represents how much scope (weekly rather than daily reports, less drill down on the pipeline or forecasting, reduced focus on the activity etc.) a sales person has earned from the sales manager when they are hitting their targets or results. If the results are there then the sales person enjoys the wider space in which to perform and be successful. The only things outside the playing lines are items such as company policies, human resources issues, unethical behaviour or actions that could affect the sales team. The sales person understands they have a level of autonomy earned from the sales manager due to past performance and can only be retained by continuing to perform.

The flip-side is if the sales results start to suffer or the numbers are not coming in, then the playing lines start to narrow. When the lines narrow, activity based management or task dominates. Now the sales manager needs to work the basics with the sales person bye spending more time challenging approaches or activities. Ask more questions. Deeper drill down into the metrics and status updates. The sales person still has the space to determine their own plan, just not as much. If over time, results are still not achieved and progress is not made then the playing lines will get even tighter to the point of performance management.

The playing lines concept is a great method to have a consistent approach to all sales team members with the ultimate goal of having all your sales team members operating within the widest lines of responsibility.

Quick sales management tip: Want to boost your sales team performance? It may sound simple but get the sales team spending more time selling. Managing a successful sales team requires the ability to get the sales team to spin the plates that matter.

A few more tips for managing a successful sales team.

Become a great sales coach

Create the space to let them do what they do best. Sell!

Give them recognition and constant feedback.

Always remember, in sales management it is not just about the final sales numbers. As any high performing sales manage will testify, you need the business acumen to know that the sales pipeline needs to be constantly filled and kept filling via sales activities, and this requires the competencies of a proper sales manager. In order to maximise the revenue of the sales teams pipeline, the sales manager needs to be able to analyse what actions and activities are working, and what is not then prioritise tasks. A high performing sales manager will always focus on the realities in the sales process of what works for the company and the sales team.

As written about earlier, managing a sales team is a balancing act. Clear guidelines on the “playing lines”, sales role definition and time spent on sales analysis can help sort the “what’s wrong from the “what’s working”. Strive to create the space to let the sales team do what they do best– sell the product. By working on the sales manager’s competencies and focusing on the sales process, a sales manager can enjoy watching the sales team thrive as a result of having earned a widening of the playing lines which will drive bigger revenue streams to contribute to company growth (not to mention your career).

Get the Sales Team Selling

To win more customers and grow, every business needs to focus on getting the sales team selling, they need to get sold on sales actions and sales time not just the company’s sales process. One question any salesperson needs clarification on is “what do you want me to do”. Seems like a easy question for a sales leader to answer,”Go sell”. So what does selling actually mean in your business?, is it revenue, margin, revenue by product line, number of new deals?. Once upon a time selling was easily quantified. In the day of the door to door sales, all a sales person needed was the product to demo and enough streets with enough door bells to ring. Simple numbers game, keep knocking until someone opens, give the sales pitch and close.

Today in the digital era, sales has moved inside, online, blended, push,pull, hunter,miner, gatherer and the systems supporting the sales process have gotten more complicated. First we had contact management with software programs like Goldmine, then came CRM and now Sales Force Automation.Which makes me wonder, has actual selling time got second billing to the sales process?, are sales people more engaged in the sales process and systems than the actual selling itself?. Maybe its time to spend longer fighting for more sales!

selling-time

Sales models for many companies have become more complex and less efficient in the quest for data, putting pressure on the rate they can acquire customers, productivity and even shifting the focus point from selling time to process time.

The guiding principle of all sales and marketing teams is to maximise selling time, lead generation and relationship building. That may sound obvious to any sales leader, but it is important to remember that the drive for data and sales insights can collide with the forces of rising complexity in the sales process. In fact, sales teams can over time slip comfortable into being sales processors against being sales winners. Companies must understand and clarify the scope of their sales teams while promoting efficiency throughout the sales process.

There are thousands of ways to kill a sale but only a few ways to win them. Some ways to kill a sale are obvious like not showing up to a meeting prepared, not following up, not listening, not establishing a realtionship, going to proposal too early, not speaking to decision makers… the list goes on. These can be easy to identify and with some training and practice can be overcome.

Then there are the sales killers that hide beneath the surface that many companies and sales managers do not even know exist. These are the sales weaknesses in the sales process (over reporting anyone?) which when combined with a salesperson’s own make-up can act like weights pulling down the sales efforts and results.

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Aligning your selling efforts with sales process takes work. Sometimes companies can be cautious about meddling with the sales force—directors and even owners need to overcome the common fear that disrupting it will hamper revenue or market intelligence. Then, other stake holders from not only sales, marketing and sales support but also other functions, such as finance, must work together to identify and prioritise the expected outputs from the sales engine. Next, successful sales teams transformations require support from the very top: someone has to take the lead, get the senior people from across the company to sit down, share data, and be willing to talk about what’s not working. This leader must override internal concerns, see the big picture, and focus on the best solutions to boost the time spent selling regardless of past practices.
Changing the sales focus and sales teams activities may mean changing the sales talent as successful sales teams refocusing may change how people carry out their roles and the ways other stakeholders interact, from customers to marketing and back offices.

Finally, winning back and protecting selling time for sales people to sell requires vigilance. The growth of multi channels marketing and sales channels in the  B2B and B2C markets can demand non-selling activities into the sales teams day. In addition, old habits chip away at selling time: a salespersons ingrained response when a customer needs a quick answer to something is to drop everything and dive in, even when a well mapped out sales support or customer support mechanism is in place to handle any issue faster and better. The new mantra has to be “A sales teams time is better used to sell.”

An example of refocusing the sales team selling time, was an Internet company who set aggressive targets for sales metrics such as the number of new customer interactions per week. Giving the sales people goals they could not meet without changing their behavior forced them to adopt to the change in sales focus. Success became self-reinforcing: the more they stayed in the business of selling the better they performed.

 In larger companies, viewing sales operations across departments may not be easy, nor is implementing changes that affect the entire sales process. Yet the more sales operations can be streamlined and admin reduced, the more likely customer satisfaction will improve as deals close quickly and sales pipeline grows faster. At these companies, the result can often be millions of Euros in higher revenues and lower sales costs.

Get the right sales people and channel in front of the customer at the right time.

It may not be enough to transform the sales teams by hiring people with the skills and capabilities to sell solutions to target sectors. Companies might have to restructure their sales coverage model, which means defining the sales roles differently. The questions to ask, include how much hunting versus gathering capacity to employ; what the role of sales specialists should be; whether to use one or multiple sales people to serve a segment or customers across different geographies.

When to hunt for new customers and when to mine deeper within current customers is one of the answers that needs to be made explicit to any sales team. Too many sales people often get comfortable serving their current customers, so an obvious initial step is to charge them with becoming more aggressive about mining the largest customers to their full potential. At the same time, however, the life blood of any business is acquiring new customers.

That’s why an effective coverage model needs to be deliberate about who should be hunting and where. Sales managers should meet regularly with hunting sales people to understand and actively refine their target prospects and beach-head plans. Given the degree of sales difficulty and the strategic value of acquiring new customers, sellers should receive a compensation recognition for breaking into new accounts.

Whether hunting,farming or mining, it’s critical to get the mix and sequence of sales skills, sales training and specialists right. Do not ignore a sales stream because there’s no sales expert in-house to cover the area with the skills the target customers considers crucial.

Sales people need to learn and be taught how to orchestrate effective teaming. Like musicians who seamlessly improvise back and forth after they have played together several times, salespeople who get to know and trust one another tend to sell together more effectively.

Sales people need to get sold on selling again,

They need to understand that new customer conversations are a priority, building and expanding relationships is more important that a spreadsheet and get the answer to “what do you want me to do?.

Lead Generation

Lead generation efforts whether online,social selling or via sales team can be one of the most underestimated activities in a business in terms of cost,time and the resources needed. The reality is that before a sale transaction happens (even if your B2C business is on-line), there is a process of generating leads (web traffic, inbound,outbound,on-line, events,shows, etc) and in many cases nurturing these leads over a period of time to turn suspects into prospects into sales. So before any sales happens, a business especially in the B2B environment needs a healthy and continuous pipeline of new prospects to sell to.

lead-generation

Generating leads is challenge for most companies 

Generating sales leads is a daily challenge for most companies and according to Forbes Magazine, more than 60% of the marketers polled in a recent marketing survey said their greatest marketing challenge for the year ahead was generating more sales leads to fuel the sales engine, and nearly two-thirds (63%) reported that their marketing mix either doesn’t meet sales demand or they’re unsure of whether their mix is effective. Nearly 40% of those polled cited accurate measurement and attribution of on-line marketing as their biggest challenge.

Remarkably, a quarter (26%) of respondents said they do not track leads to any marketing program at all or they only attribute leads to one program. The old saying about “They know half their marketing spend works but not which half” seems to still ring true more than ever.

Lead generation can be costly (clicks, CPL, sales hunters) so the business needs to educate everyone that without lead generation there is no customer acquisition and probably no sales. It must be the role of every sales and marketing leader in a company to boost sales leads and reduce the cost of filling the pipeline funnel. This needs to be attacked on two fronts, on-line marketing (push,pull,inbound, lead nurturing) and good old fashioned sales work as lead generation cannot be the function of marketing alone. There is now B2B automated lead generation solutions on the marketplace which radically reduces the time sales agents have to spend identifying prospects.

However, lead generation is more than just implementing passive activities like social media, inbound marketing or on-line marketing tactics, the lead generation effort must work hand-in-glove with the sales teams work including social selling, hunting activities around customer acquisition and channel development. Successful companies know how to build a lead generation machine using multiple networks and sources and then fill the sales funnel with qualified prospects on a continuous basis. Most small companies fail not because of product or they can’t sell but because they can’t build a big enough sales funnel of quality prospects in a timely,cost effective way to work the sales process to drive revenue.

sales-outsourcing

There are multiple lead generation tools and resources, for social selling there is LinkedIn, Crunchbase, Owler and other business forums. For on-line inbound lead generation, communities like Facebook, Twitter, Pinterest and Tumblr can deliver leads. B2B lead generation solutions which cut down on sales peoples time trying to get lists of prospects are provided from companies like Connectors Marketplace, Insideview, Sales Loft and Lead Genius.

Cost per Lead Generated

Regardless of where or how a business sources its sales leads, the cost per lead in customer acquisition needs to be measured across all the channels. The goal is to try and work back which channels delivered not quantity of leads or lowest cost per lead but the channel which delivers the best lead to conversion cost. An example of this is while the good old fashioned trade show might be considered very effective in generating high-quality leads, they are also expensive (maybe as much as €10,000 per lead) and what is the lead to conversation cost?.

So build a lead generation process, score or segment every lead, cost every lead and educate all the sales team that when they get handed a lead it has cost the business money to get to the point of just talking.

Customer Acquisition Strategy

This is a guide to a customer acquisition strategy. For many start-ups and new companies the customer acquisition strategy and financial cost of customer acquisition is a critical factor in business survival and often underestimated in a growing business. The cost of getting customers can be the difference between success and failure no matter how good a business believes its product to be.  I once read that the goal of any business is to acquire, develop and maintain customers at a profit. The develop and maintain aspects are more clear forward but let’s focus on the cost associated with acquiring new customers regardless of the channel.  

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Every business needs to acquire new customers to make products and businesses work. Whether the product is aimed at enterprises paying big money or getting thousands of visitors to a website, how a business gets and the cost of getting customers are the important part.

The Definition of Customer Acquisition Strategy could be defined as “The process of persuading someone to purchase a company’s goods or services”. The cost associated with the customer acquisition process is a critical measure for a business to evaluate in tandem with how much value having each customer brings to the business.

 

Is The Business Ready for Customer Acquisition?

Paper never refuses ink and this saying has been true in many a business or sales plan when it comes to putting a cost on customer acquisition. The cost is not just the marketing or sales cost but the time and resource cost to getting new customers. Has the business planned for the sales cycle, the demos, the travel, product trials or has a website planned for the cost from free signups to paid, customer or product support prior to a customer making a purchase. In other words, can a business survive while potential customers go through the acquisition cycle? While a quote like “move fast and break things” is exciting in a company start-up situation, it may not be the best advice when it comes to customer acquisition. The decision to start spending investor or shareholder money taking a product to market and begin acquiring new customers should be given the weight it deserves. Entrepreneurs or a business might have spent months or years developing the product, so the execution of the customer acquisition strategy has to be thought out very carefully.

Even before you spend a cent on customer acquisition ask the questions “is the product ready for some/many customers”? Are there still bugs that will make the customer interaction with the product flawed? While the saying “done is better than perfect” to avoid feature creep is practical; it would be a mistake to launch a broken product and fall at the first hurdle.

To take a step back into the business plan around customer acquisition strategy, can a business tick the box on questions like; how many sales calls per day do you expect the salesperson to make, do they have a target list of suspects and prospects, how much activity on the website can the servers handle? Do you have the customer support with the knowledge required to respond to the questions from new customers? Does the product value proposition the salesperson has to sell make sense to people outside the company? In other words, have you done customer validation? These are the type of questions that you need to answer before committing money to a launch.

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Being Prepared Always Matters

Any customer acquisition process is not straight forward or predictable but especially so for new companies, but that doesn’t mean a plan is not useful or necessary. The customer acquisition process is far from an exact science. There are many things that can (and do) go wrong, however there are some things that any business can do to mitigate risk and improve the chances of successfully acquiring new customers. Be clear with your team what “Cost to Acquire Customers” (CAC) means, is it paying customers, trial customers, engaged prospects or even website registrations.  In the long run it should only mean the cost to acquire a paying customer.

Estimate the Cost of Customer Acquisition

Money for new product or new business launches is hard won. The budget and time for a start-up may be tight, so the business needs to estimate “worst case scenario” the cost to acquire customers (CAC) before beginning the marketing or sales process. A businesses CAC is loosely defined as the cost of ALL the sales and marketing expenses over a given period of time, divided by the number of customers the business plans to acquire in that time frame. While no business can have a firm sense of the CAC until they begin acquiring customers, having an estimate will help the business leaders prepare to act accordingly.

Logic rules, no matter how excited a business is about getting it out there, do not underestimate the impact of starting the customer acquisitions spend before the product is ready. The greatest risk apart from alienating potential customers by launching a flawed product is the money a business can burn through before it realises it got something in the product wrong.  Every business should ask, what is the baseline product I am willing to “show” potential customers and in what target markets?

Thread carefully in the world of social media and PR, spending time and money on journalists to line up business or product coverage of your launch, only to find out that the product is delayed or has issues, can put the business credibility in jeopardy . Journalists lose interest pretty quickly and are never your friends.

Do Realistic CAC calculations

While a business waits for SEO efforts to kick in, a business may utilise Google Ad Words to drive traffic for (a) for lead generation or (b) sales. Take a look at this example. The cost per click works out at 50 cents, the resulting 1000 website visitors converting to a trial rate of 5% (50) at a cost of €500. These 50 trials are then converting to paid customers at the rate of 10% which is 5. So each customer is costing €100 in just lead generation expense excluding sales/product/support costs. For many companies in the B2C space or in the B2B space with software using the web as their main acquisition channel, it can be hard to get the consumer to pay more than €100 for the product or service

Many business underestimate or do not budget for a realistic CAC, if we take the above example the cost of customer acquisition can climb rapidly if leads require a sales person to convert them. This human interaction can be as simple as email follow ups right up to inside sales people doing multiple sales calls and demos. Depending on the trial/registration rate along with sales conversation rates the cost can vary from €400 to over €5,000 per new customer acquired, depending on the level of interaction needed.

Another CAC calculation is to look at the cost of a field sales force. The fully loaded cost of a field sales executive with travel, car, expenses and salary can push the CAC into over €10,000 in enterprise sales.

In trying to address the single most important early-stage question – customer acquisition – it is easy to waste a lot of money in the wrong channels and on the wrong customer acquisition tactics (lots of companies in the graveyard from just this one failure), especially the new companies that went  toe-to-toe with the big guys and can got blown away.

Every business has to execute in a different way

A business will only thrive by marketing and selling smart; acquiring customers in an economic way and in a way that differentiates the business from the crowd. To goal is to build a customer acquisition strategy for paying customers the business does not have to keep paying for every month.

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Create Demand

In larger companies with deeper pockets while the customer acquisition isn’t exactly simple, they do have more resources. The process of customer acquisition is more challenging for newer companies. Established business’s will utilise bigger budgets, have greater brand awareness, and an ever growing community of influencers. Most new businesses will not launch with a partnership with an established brand like Microsoft, Apple or Google where the demand for the product already exists. Instead a new business has to allocate sales resources and money wisely to fight (and a fight it is) to let potential customers or audiences know that you exist, explain to them why they should show interest, and initially even offering to go the extra mile by holding their hand through the sales process.

The focus of everyone in a new business is not only to create the brand but also the demand. Sales and marketing are not two different departments,  the person leading the marketing drive needs control spend on brand marketing and really understand how to execute lead nurturing, content marketing, web demand generation programs and work hard at marketing efforts that require time but not money. Marketing and sales need to work at the hip to generate a steady, growing stream of leads each and every month.”

Acquiring new customers means understanding what makes your customers tick and investing in inbound marketing strategies such as content and quality articles, got onto the forums, become a subject matter expert and invest in search engine optimization (SEO) as a longer term tactic.

The Business Model

Business model viability, in the majority of new companies, will come down to balancing two things:

Cost to Acquire Customers (CAC)

The ability to extract value from customers, or LTV (Lifetime Value of a Customer)

Web based companies have long understood these metrics as they have a much easier easy way to measure them. However there are huge benefits for all businesses to look at these same metrics.

To repeat the message from a few paragraphs back, to calculate the cost to acquire a customer, CAC, a business needs to take the entire cost of sales and marketing over a given period, including salaries and other headcount related expenses, and divide it by the number of customers that a business has acquired in that period.  (In pure web plays where the headcount does not need to scale as customer acquisition scales, it is also very useful to look customer acquisition costs with/without the headcount costs.)

To compute the Lifetime Value of a Customer(LTV), you would look at the margin that you would expect to make from that customer over the lifetime of your relationship. Margin should take into consideration any support, installation, and servicing costs.

Manage Optimism with Reality

To be in business requires huge optimism, and in a belief in how much customers will want to buy your product. Unfortunately this can lead businesses to believe that customers will be kicking down the doors to purchase the product. This has the effect of grossly underestimating the cost it will take to acquire customers. In too many companies there is little or no focus on how much it will cost to acquire customers. Vague strategies along the lines of web marketing, and/or viral growth with no numbers is not what you call business!

 

To finish, a well thought out CAC plan outlines the need to acquire customers through a series of steps like SEO, SEM, PR, Social Media Marketing, direct sales, channel sales, etc. with the cost of each step worked out. This planning brings honesty to the real cost of customer acquisition.