This is a classic example of a non-customer centric process.  It is not built for the customer but rather for the vendor, in this case the bank.  Had that process been customer centric when I finally got to a representative the first thing out of their mouth should have been hello Mr. Walker how can I help you today.  I have already told them who I am and verified that for them…THEY SHOULD KNOW.

Problem is that same scenario is repeated time and again in all sorts of companies.  Marketing develops a lead and shoots it to sales without the proper details and the sales person calls the customer and starts at the beginning.  Sales closes a deal and the implementation process starts by hashing over a lot of the same information that was discovered in the buying process.  A call is escalated and the new technician starts right over at the beginning.  You get the idea and it is happening in most companies right now.

A customer centric process is built around the way the customer buys or interacts.  Information is shared seamlessly across all areas of an organization and common language and metrics are used.  In this sort of process a company aligns the processes with the buyer.  As the buyer interacts with various parts of an organization they encounter consistency which in turn builds and reinforces credibility.

The end result is the buyers like the relationship with your brand, trust your brand and buy more.  Isn’t that what we all want?

As you can see there are four distant components. Lets look at them.

Drive Demand

It all starts here. Our first machine component is build around three processes.

First we have to develop the Go-To-Market Strategy. In this process we need to accomplish such tasks as pick and segment the target markets, build our messaging, rationalize our pricing, understand the competition and decide what the distribution organization looks like.

Next we need to Build the Demand Model. Here we undertake such tasks as identify the demand channels, validate the technology infrastructure, create common definitions (i.e. what’s a lead), develop the hand-off mechanisms and other similar tasks.

Finally we start to Generate Leads. To accomplish this we need to build and execute marketing campaigns, track our ROI, nurture relationships and forward appropriate leads to sales people for follow-up.

Manage the Buy Cycle

This step is also known as the Sales Cycle. I like Buy Cycle because the real job here is to facilitate the customer’s buying process. Many companies have developed custom cycle steps and that’s ok but in general I think each of those steps falls into one of these general categories.

Qualify-no matter how good a lead is when you get it you have to make sure that the company is qualified. Ideally that means they have a need, a budget and some desire to use that budget to meet the need.  However, there are occasions when the company has a need they don’t understand yet and then the task is to guide them to an understanding of that need and instill the desire to address the situation.

Discovery-once a lead is qualified you need to go through the process of truly understanding the company. The most effective sales people will use this time to learn how the company makes money, the current challenges that exist and spot opportunities.  At the same time one must learn to operate within the political environment that exists in the prospect.  All companies have one and they way opportunities are pursued can vary widely depending on the company.

Opportunity Identification-the idea at this stage is to create a spreadsheet that looks something like this.

Some important points on creating your sheet.  First it is required that your prospect buy in on each line item.  The more concurrence you can create the easier the rest of the process will be.  It will take time to do it this way…it is worth it.  Next you will notice that I used an easily quantifiable point in the example.  There may be Value Opportunities that are not quantifiable, put them in a different sheet.  When you are done you will have two sheets that will form the basis of your business case for proceeding with the purchase.

Build the Business Case-here we will use the information we have collected to build both the business case and the presentation that will be given in support.  We will talk a lot more about the format of this case in subsequent posts but always remember that it must stand on it’s own.  When you leave it behind it will take on a life of it’s own.  People you may never meet will read and comment on it so make it as clear and unambiguous as possible.

Gain Concurrence-once your case has been built you still have to make the rounds of those that are involved in the decision to make sure that you have their concurrence and overcome any unforeseen objections.  The end of this step is when the prospect is ready to negotiate.

Negotiate-now it is time to agree on the details of the transaction.  There is a whole body of work that surrounds this particular stage and this stage has been impacted from the very beginning of the process.  Always remember as you set expectations at any place in the Buy Cycle they come back to you here.

Close-now it’s time for the ultimate buyer to sign the deal.  Always remember it’s never done until it’s done.

Before we move on remember there is a art to all this.  We could easily spend a week on any one of these stages and true sales professionals spend a lifetime on improving them.

Implement and/or Deliver

It doesn’t matter what you sell at some point its time to deliver the goods.  In the case of some products there may be an implementation process and for others just a product delivery process.  In all cases the execution of this component of the revenue cycle will have a direct bearing on future revenue from this client and others.

While the steps may vary wildly from company to company those steps generally fall into one of three processes.

Plan-no matter what your product after the sale you have to plan the specifics of delivery.

Execute-once the plan is in place it must be executed.

Validate-there needs to be a feedback loop established to ensure that the execution of the plan has been properly done and no adjustments must be made.

Grow and Extend

Every business knows it is far easier to sell to the customers you have than to acquire new ones.  This final piece of a High Performance Revenue Machine deals with how those relationships are managed.

This component is built around four processes.

Account Strategy-every account should have be a part of an account strategy process.  For larger key accounts that may mean the development of an individual account strategy.  Smaller or more regional accounts may be part of an account class that would then have a defined strategy.  This Account Strategy process is where you will make the decisions concerning resource deployment and account focus.

Account Planning-here you need to execute the Account Strategy.  Again for larger accounts this is an individualized activity and smaller ones may be combined into an account class.  In either case there must be defined objectives that support the overall strategy, a way to measure the attainment of those objectives and a regular review of the progress.

Relationship Management-there must be some framework associated with how each account relationship is managed.  Larger accounts will have teams of staff assigned and many contact relationships to manage.  Smaller accounts may have just a single contact and be assigned a representative that manages multiple such accounts.  In both cases there needs to be a systematic methodology that ensures proper attention is paid to each and every customer.

Customer Satisfaction-every High Performance Revenue Machine must have a customer satisfaction component. There are several defined methodologies that exist ranging from Net Promoter Scores to Differential Value Propositions.   It is important that one be chosen that best supports a particular business and that it be consistent over a period of time.  This is the only way you will be able to get a view of how your customers perceive your company and this is vital to the ongoing production of revenue.

Those four components combine to build a High Performance Revenue Machine.  To be really effective your machine must be consistent across all departments that are involved.  Terminology, definitions, KPI’s and other details must be common.  When they are you have enabled three cross functional activities.

Analyze and Improve-just as TQM, Six Sigma and Lean Manufacturing have impacted manufacturing and other process over the years now the revenue cycle must be impacted.  If your High Performance Revenue Machine is integrated across your enterprise then you can analyze its performance and make adjustments to improve results on a regular basis.

Reporting and Analytics-commonality across your enterprise will enable a range of insights and status reports across your Revenue Machine.  For example if incoming leads drop by 15% what is the impact on revenue next quarter, the quarter after that or two years down the road.  If we spend dollars to increase the percentage of prospects that move from Discovery to Opportunity Identification what is the impact on revenue.  With common data across your enterprise analytics can now be performed to help assess the ROI of individual actions, spot trends in data and pinpoint key spots in your process where improvement is possible.

Forecasting-revenue forecasting is always a bit of a guess.  But when you have a High Performance Revenue Machine you can measure each point in the process and understand the impact on revenue.  If you see your leads increasing you know how long you have to bring the resources to bear that will deliver on those sales.  If customer satisfaction starts trending down you can react to the problem and minimize the revenue impact.  The ability to review and include data from the entire revenue cycle in your forecast methodology will enable more consistent forecasts in the short, mid and long term.

Building a High Performance Revenue Machine will let your business focus driving growth and reap the rewards that come along with that growth.

I think we are at a point in business where an imperative exists.  We all know that the last few years have been quite tough for most of us.  Our economy has struggled, our finances have suffered and our future sometimes doesn’t look as rosy as we would like.  We are in need of an imperative and I believe that imperative is growth.

The modern economy is built on many things not the least of which is the confidence and outlook of its participants.  When people are optimistic they take actions which reflect that optimism.  They buy and invest in the future.  When they do that our economy grows and nothing breeds confidence like confidence.

In times like now, people and companies don’t buy as much and don’t invest or hire for the future.  Instead they become insular and attempt to protect what they have.  The irony is that played across a macro stage these actions become a self fulfilling prophecy.  To some extend we are there now and the tide must be turned.

I believe that enterprise must play a significant role in this process by driving growth.  In fact it is the Business Imperative of our times to drive growth and restore the confidence in our economy.  If we do that all other problems become easily solvable.

The science of sales or revenue production lies in managing the messages, contacts and content involved in getting a sales rep in front of a prospect.  Another part of the science is leveraging the technology of today to understand what works and what doesn’t, where the key points of the buying process lie and how they can be impacted.  Then just like manufacturing you can apply analytics and continuous improvement methodologies to improve the process.

The art is when that sales rep is in front of the prospect.  How do you “peel the onion” to learn the issues?  What are the right questions to ask?  How do you create and nurture trust in the relationship.  How do you overcome an objection?  How do you deal with negative influences.  These are part and parcel of the art and like any art form some people are more naturally inclined than others but most everything can be learned if you are willing put in the effort.

For a company to be successful in driving revenue both the art and science of driving revenue must be understood and nurtured.

In the past it was that great sales rep that always managed to get involved in sales cycle  before the competition.  That was important because that rep got to set the expectations and began to educate the prospect as to what could be expected from the solution.  The hunter was on the scene first and put themselves in position to drive the process and as a result won the most new business.

Another trait of this traditional hunter was the drive for immediacy.  When they engaged a client the objective was singular…sell something now.  If that objective can’t be met for some reason that lead is discarded and the traditional hunter is on to the next hunt.

Problem is that over the last few years the hunting dynamic has changed.  The old style hunter that’s out in the market trying to insert themselves into the process as early as possible will likely find a cool if not downright cold reception.   Customers today have access to information and like to do their research independently of the sales rep.  I have seen studies that indicate that sales cycles can be 60% to 80% complete BEFORE the prospect is ready to engage a sales rep and that changes the whole dynamic of hunting.

That means that a vital part of hunting today is content focused.  It’s the same concept as before.  Get your information in front of the prospect and drive the process.  In the past that was done exclusively via face to face sales calls.  Today you have to create compelling content then use and manage a variety of information channels to accomplish the task.  Now I know that when I say compelling content most of you are thinking that’s expensive, but it does not have to be.  Content can be anything from a text message to an email message to a YouTube video.  Compelling content is valuable not necessarily expensive.

In most larger organizations the Marketing Department creates some content and can even manage a lot of the pre-engagement information flow and lead nurturing.   In an organization where there is not a Marketing Department does that performs this function it is now up to the rep to manage that process.  In both cases that means changes to the traditional sales paradigm that I will talk more about in subsequent posts.

For now we will end with this thought…the trick for successful hunting in todays market is for the hunter to use content and a lead nurturing process to pave the way and then insert themselves into the process at the RIGHT time not just the earliest possible time.

At the same time you are creating jobs and profits for your own company.  The resulting growth in both companies will add more jobs and more growth to the overall economy resulting in a host of benefits for all involved.   By driving revenue you are improving the lives of all you touch and that is indeed a noble purpose.  When training sales people I always tell them that the most important sale is to themselves because if they don t believe they can’t paint the right picture for the client.  This sale starts with the profession itself…done properly it is the most noble of endeavors.

Years ago I read a study on purchasing agents and their buying tendencies.  One of the questions was… How many calls does it take before you buy from a new rep?  The answer was seven calls.

A few weeks later I read another study, this one on sales reps.  One of the questions on this study was… How many calls do you make on a new account before you give up?  The average was four.

What does that tell you about how much new business an “average rep” drives?