Top 5 Ways PR Can Support Sales

This post was also featured on PR News. 
For the most part, sales and marketing view PR/Corporate Communications’ role to be high in the funnel. Some would even say that its focus is on “above the funnel” activities.  But if used strategically, PR activities can be very effective in playing a critical role in supporting sales.  Below are five ways PR can help the sales organization:      

1. Creating an impression – Typically thought of as a primary role of PR, but the ability to create a perception that the company plays in a “space” gets the company in the consideration set and the sales force in the door.  A few years ago, we did some research on the key consideration drivers in Tech.  The research showed that relationship with the rep was not a driver…meaning, if the customer perception is that you don’t have product/solution for their need, the rep is not getting a call. 
2. Damage control – As “they” say, “things happen”, and how the company handles it may be the difference between losing and retaining a customer.  PR can help get out in front of an issue, explain the company’s position, and help the sales force navigate what can be a difficult conversation.  Ford’s handling of the corporate bailout was masterful.  As Alan Mullaly’s peers from GM and Chrysler were taking their corporate jets to Washington to ask for a hand out, he and his team were driving from Detroit.  They said “no” to the handout and walked out with consumer confidence, which later turned into market share gains.  
3. Checking a competitor – A huge concern for sales is having a competitor leapfrog ahead with a new solution or product.  PR can create the impression that the company has a similar product or solution when in reality it may not.  Large established companies, like GE and Cisco, turn up the noise to drown out fast moving smaller competitors. 
4. Building momentum– There’s nothing better for a salesperson than a product that “sells itself.”  Creating excitement in the market for a product or solution helps generate inbound leads, which have the highest close rates.  Do you really think that the new IPhone 5 went missing…again?  It’s all about creating a buzz.
5. Enabling and managing Social Media – In certain industries, such as hi-tech, Social Media is owned by PR/Corporate Communication. This important channel for engaging with customers can provide sales with new insights into customer behaviors, needs, and motivations, but that insight has to be carefully managed as to how it is used. 

And for a bonus example – Virtual Coverage - years ago, I conducted research on how well a medical equipment company was covering small customers.  The results showed that their sales force visited customers about once every three months while a competitive sales force came by about twice as much. 
The company couldn't afford to increase the field sales force but could ramp up corporate communications.  A year later when we did the same research, this time customers said that the reps were showing up twice as often.  They weren't, but the increased communication resulted in the perception that they were seeing the reps more often.  

The World's Most Famous Press Release

Post was featured on Forbes.com on July 4th. 
It was written over 230 years ago, 200-300 copies were printed for towns up and down the east coast, and a few made their way to Europe. Contrary to popular belief it contained no signatures and what it promoted was completely unique, new, and flawed.

The Declaration of Independence is arguably the “world’s most famous press release”, according the curator at Independence Hall in Philadelphia, where it was written and approved in its final form (unsigned) on July 4^th, 1776.  The signed copy we are familiar with was created in August for ceremonial purposes.  

I found it interesting to hear one of the world’s most famous and important documents being referred to as a “press release” during a class field trip with my son.  The curator used the analogy because he said that there is confusion regarding the purpose of the Declaration; “...the goal of the document was to only articulate “What” and “Why,” not “How.”

As a marketing guy in the audience, I found this history lesson to be an interesting “best practice” from the founding fathers; focus on effectively communicating ONLY “what “and “why.”  How many times have you written and/or read a press release that tried to say too much, and/or lacked clarity on its intended objective?

Another interesting point gathered during our visit was the struggle to form a new federal government (the “How”) under the Articles of Confederation.  At the time, the new federal government had no revenue source (taxation), and no real authority over the states.  

The states operated as their own “countries” deciding on their own currency, religion, and diplomacy with other countries.  Again the marketer in me saw the similarity to the power struggle between corporate marketing and other sales/marketing organizations (Product, Field, Region, etc.).  Would history provide another lesson for marketers?

Congress struggled with governing under the Articles.  Instead of revising the existing document, the Federal Convention decided to draft an entirely new frame of government.  According to the curator, three key issues hung up the approval of the Articles; 

1. Religion
2. Slavery  
3. The power given to the federal government, which many saw coming at the expense of the states. 

Addressing the religious issue was easy; they left it out of the U.S. Constitution.  It was later covered under the Bill of Rights.  On slavery, they reached a compromise by outlawing slave trade in 1808, twenty years in the future.  But the single most important change was the shift from states to the individual in granting the federal government its power.

“We the people…do ordain and establish the Constitution of the United States.”  The federal government now answered to citizens and not the states.  State representatives and congressman now represented the views and best interests of the people within their districts.  By putting citizens first, the founding fathers established a focal point that transcended state interest.  

Could this be the time for a B2B marketing revolution?  With the rise in social media adoption, marketers can now better gauge the needs and desires of their customers.  Customers for their part are showing a willingness to engage like never before.  

As a result, marketers are now presented with an opportunity to shift focus from solely addressing and satisfying internal “states” needs to anticipating, engaging, and serving the needs of customers.

Although I'm a proud Virginian, I'm no Patrick Henry but I say marketers, it's time for our own declaration...marketing by the people, for the people! 

5 Steps for Driving Growth

The good news is that economy is on the mend; consumer and customers are buying again.  The bad news is that many companies will struggle to capture that opportunity.

Changes made as a result of the recession may now restrict companies from growing.  During the recession, marketing budgets were cut and the sales force chased any customer willing to buy -- at any price.  Most likely, sales territories, products in the bag, etc. were expanding, either as a result of downsizing the sales force, and/or expanding opportunities so that they could have a chance to make quota…either way they have a lot of ground to cover. 

The question facing many organizations today is how to align sales and marketing activities, investments and resources, against the biggest growth opportunities while still covering the expanding set of customers and products.  How can the sales force, and/or our marketing resources to do more?   The classic -- do more with less scenario. 

Well, the answer this time is you can’t. The reason is that the recession lasted so long (20 months) that everything that could be stretched…has been stretched.  It’s now time to reset sales and marketing strategy.  Here are five steps to get you started:

1. Move the "low hanging fruit" – During the downturn many organizations allowed sales organization to count EVERYTHING towards quota.  It’s now time to start moving inbound orders (rebuys) and sales of a certain size (small) somewhere else (most likely telesales) to free up sales force time.  Move it quickly, consider incenting them during the first 6 months to migrate transactions to insides sales or partners. Capacity needs to be freed so that it can be redirected to growth.  If you are concerned about not being able to move fast enough, just stop paying commission on small or inbound deals and/or do not count them towards quota…nature will run its course. 
2. Relocate and recondition small customers – Along with small orders, small customers (who often require more than their share of attention) need to move as well.  They may have grown accustomed to the special attention they’ve received as a result of the downturn. However, it’s now time to ‘right size’ the cost to manage them with the opportunity they represent.  You may want to incent them to self-service via the web or transfer the relationship to a business partner.  Do your homework by evaluating customer profitability and set a new higher target.  
3. Push Sales into bigger deals – After you’ve freed up Sales’ time, focus on increasing the pipeline and average deal size.  Turn marketing back on to help (see my post on the Pipeline).  It’s also time to ramp up your analytics, segmentation and data mining operations.   Build models to help identify opportunities to cross-sell and up-sell products and customers.  Corporate Marketing will need to update corporate positioning and the messaging architecture to align with where the market and customers exist. Product marketing has to develop solutions and messaging to drive larger deals.
4. Increase price points  – This is related to the point above: stop discounting products and services immediately.  Wind down incentive pricing, and start developing new offers with customer, and market aligned value propositions.  This will be a challenge to manage as the sales force and customers have become conditioned to expect a “good deal," despite the fact that it has been shown to be ineffective.  Invest in research to determine how their expectations have been impacted because of this practice.
5. Expand your channels – this will be important to several reasons.  First, a new “home” for small transactions and customers is needed.   The second is that you may not be able to reach or capture the market because it has shifted (e.g. new technology/innovation, competitors, etc.).   Invest ahead of the curve as good sales people are hard to find and there is going to be a run on them.  Along with reps, get your partners up and running now, and grow into full productivity later. 

Lastly, don’t over look the need for change management.  According to the Corporate Executive Board, 25% of high performers indicated that they are interested in changing companies as the economy recovers.  Invest time in evaluating the impact of implementing the steps mentioned inside your organizations. 

Customer and rep behaviors have changed, as well as markets.  The recession was one of the longest in our history.  It’s a mistake to just snap back to the way it was.  Be smart and invest in research on your customers, competitors and markets.  Set a three year plan to double revenues, price points, etc.  Create aspirational goals and get the organization excited again…it’s been a long time coming.  

Creating a Corporate Value Proposition

In my experience, one of the most difficult tasks for an organization is defining their corporate value proposition and their key differentiators: The ”Why Us” question.  We were in a meeting recently with a company and they told us that the last agency resigned from the account because they went through 400 iterations (not making this up) on the value proposition and still couldn’t agree on one.  

Organizations fail for many reasons when developing corporate value propositions: too little collaboration yielding no buy-in, a meddling CEO, a lack of a disciplined approach, failure to properly test externally, etc.  But in this particular case, the company’s past success was now causing confusing among executives as they plotted their future course.  

The organization enjoyed 25 years of strong growth and profit performance (prior to the recession).  A portion of this success was attributed to allowing the business units to operate nearly autonomously. However, that freedom came with a price: it formed separate cultures, brand identifies, logos, sales collateral, even the “language” that was used varied when talking about “what the company was, what they stood for, and what it should be in the future”.

As a result, tying the organization together under one umbrella message and value proposition was a huge challenge.  

Defining Value

Michael Treacy & Fred Wiersema, in their ground-breaking book The Discipline of Market Leaders, suggest that there are only three ways an organization can define it’s value and hence, how they define themselves in the market:

Each type requires different operating models, corporate cultures, and marketing communication strategies. While companies may be able to provide value beyond one category, they must first define their primary value definition through a competitive and self-analysis. Part of this review includes an evaluation of an organization’s ability to deliver the value that is defined through its core-operating model.

An assessment revealed the company to have good products, but it was not a product leader, in the example that it employed no Product Managers. It also had strong relationships with customers, but could not be considered “Customer-Centric” since it had just launched an Account Manager role a few months prior.

It was clear.  The company's success was built on a core-operating model that emphasized scale and efficiency.  The model delivered operational excellence, however, too many in the organization equated that with being "Walmart."  Because they were in they were a professional services firm this view appeared to lack the important customer intimacy component, with was true, given their customer retention and satisfaction rates.   

Being presented as “Operationally Excellent” despite the performance it could deliver (EBITA 20+%), wasn’t viewed as “sexy” enough.  For someone who interfaced with the customer on a daily basis to solve complex problems, that value proposition seemed inadequate and incomplete.  While these points were accurate, they were secondary value propositions. 

And this became a key insight.  Treacy and Wiersema point out that to determine the right corporate value proposition you have to look at how the company is delivering scalable and sustainable value to customers.  What we learned was that employees have a tendency to perceive the value the organization delivers through their own experiences (that are generally not scalable), and not based on the core business model.  

In some cases, companies have been able to successfully shift their core value delivery model, for example, from delivering a product to a service, and as a result need to redefine their value proposition and how they communicate it.  In other cases, executives can get caught up in trying to define the company’s value from their personal point of view even though the core business model has not changed.  There is nothing wrong in wanting company to be more than it is, the problem is communicating and delivering on it.  

If you find yourself in that situation, take a look at what customers value and how you are delivering it.  It usually starts with understanding what built the company in the first place.  Starting there will guide you to your destination with most of your colleagues in agreement…and in less than 400 rounds.

The Customer or the Company Line

I was walking out of a meeting in New York yesterday and noticed that I had a missed call -- It was American Express who had called to alert me that someone in London was trying to charge $500 in telecommunications equipment (most likely, mobile phones) on my card.

Later that night, I was online paying my Capital One MasterCard and found that someone used my card on December 14th to purchase something with a vendor based in Riyadh, Saudi Arabia...and that person wasn't me.  Christmas is the high season for credit card fraud and I was living it. The only two credit cards I have were both under attack.

The way the two companies dealt with the fraud situation was so different that it became a real time case study on the "best" and "worst" practices for dealing with customers.  The key difference came down to the rep's ability to deal with me as a customer, versus sticking to the company policy.

The Best and the Worst

Detecting Fraud

American Express
I had been in London a couple of weeks ago, and most likely, one of the night clerks at the hotel where I stayed sold my Amex card number.  American Express, knowing that I had recently purchased train tickets to New York the day before, figured out that I couldn't be in two places at once, and stopped the transaction from going through.

Capital One
Clueless I had to report the fraud.  Granted the two transactions were only $10.50 each, but the location of the transactions should have flagged them for further investigation.  I caught them more than a week after the charges were made, Capital One had plenty of time to detect and investigate.  Living in McLean, VA, which happens to be the headquarters of Capital One, I know folks who work there, and having had MasterCard as a client for the past six years, I know a good bit about the credit card business, and CapOne.

I know that CapOne has very sophisticated models for segmenting and targeting customers, analyzing purchasing behavior, etc.  They have no lack of intelligence or technology that would prevent them from detecting fraud, it just may be a matter of focus.

Dealing with Fraud
American Express
Closed my account, alerted the merchant, and sent me a new card via Fedex.  It arrived the next day.

Capital One
Questioned me not one, but three times about whether I knew the merchant and if I had made the purchase.  I asked the CapOne rep to give me more information on the transaction.  She said she couldn't because the details were in Arabic.  I pulled the website, and it was in Arabic.  Despite not speaking or reading Arabic, and stating that several times, I was questioned about the transaction repeatedly.

After closing the account, I was then told a new card would be sent in 5-7 days, and that a form would be sent that I would need to fill out and return.  I asked what additional information they would need that I hadn't already reported.  The rep didn't have an answer, only telling that it was company policy.  At that point, I was "done" and ask for a manager.

I asked the same question to the managers, again the same answer.  I then reminded her that the date was 12/21, the last week before Christmas, and both of my credit cards were used fraudulently.  She said that she understood and would get a new card out to me in 2-3 days.   At that point, I asked for her manager, and finally, I was transferred to the Fraud department.  

Allen was nice enough, and was able to explain the reason for the form.  They needed a signature authorizing that I did not make the transactions so they could dispute the case.  I asked Allen if they were recording our conversation (as Amex did), and if we could just use that to support the case.  The answer was "No. We need the form."  Allen did say that he understood my situation, and would express a new card to me in 2-3 days.

Dealing with the Customer  
Over the years, I've done a good bit of research on defining the "Customer Experience."  When you ask customers what they want, the answers are fairly consistent regardless of company or industry:

• Know me - customers want companies to know them and understand their situation...how their product or services fits a need.  They also want them to anticipate and serve their needs.  With the increased use of social media, that has only increased. 
• Serve me - resolve my issues quickly...turn the "unpleasant into the pleasant."  Remember that I'm the customer, and I have options.  
• Empower me - give me access to resolve my own issues, or empower the employee that I'm speaking with to do it for me.

It sounds simple but it's, as I just experienced, difficult to execute.  The CapOne reps and managers were very nice but they weren't empowered to resolve my issue, or go off script.  Both call centers were outsourced, and probably all reps and managers I spoke with were following company policy and scripts.  The difference was that Amex knew my situation, anticipated my concerns, and resolved my issue in one phone call with one rep -- efficiently and stress free.

Two shopping days left, what's in my wallet?   American Express.

Why Product Companies Can’t Build Solutions - Reason #1

I’m working on my umpteenth “transition the organization from being product led to solution focused…” project. In today’s market environment, I imagine other organizations are pursuing this strategy as a way to improve margins, increase sales, etc.

The challenges facing companies that venture down this path are fairly consistent and complex…and certainly not easily described or solved in a post. With that said, I thought it might be helpful to describe how organizations get themselves into this situation and share some ideas on how to get moving in the right direction.

“Solutions” typically evolve in two ways at product oriented organizations, none of which are strategic.

• Internally - Someone in the product group or sales organization notices a trend - if a customer buys one product they most likely will buy another related one (if this, then that).
• Externally - Customers force the organization to integrate products and/or services (something Lou Gerstner took note of when he was at Amex that eventually led to the greater focus on services when he came to IBM).

The company then realizes (usually late) that this can lead to premium pricing and higher margins, increased share of wallet and customer loyalty, etc., and thus the journey begins. The problem is that they over estimate the ease of scaling solutions because:

• The last mile - no one trains the sales force, or the sales force doesn’t have the skill set, and/or no one has figured out how to comp on selling a “solution”…I’ve seen the last one a dozen times. 
• The solution is TOO customized – really good solutions are typically highly customized, you build the “solution” with the customer.  The challenge then becomes finding another customer and/or group of customers that looks like that one.  As a result, you can’t scale the solution. Put your hand up if you’re heard that one before.

So what do you do about it? The scenarios I described are symtematic of the “dipping the toe” approach to solution development. To successfully transition the first thing has to happen is that the company must make the COMMITTMENT.

It sounds easy but this is where most organization fall down. You will not be successful if you only “half ass” it. Building real solutions that scale requires time, investment, a new group/organization and probably new people. Understand why companies fail now?

 Some thoughts on how to do it right

I've commonly seen two successful approaches to starting the transition. The first is internally focused and involves evolving the product group. Best-in-class organizations that have made this journey start by adding or creating an “application” group.  This is commonly seen in the Hi-Tech industry.

This group begins collecting market data on customer trends looking for broad based technology, competitive or usage trends. The goal is anticipate and understand how the company’s portfolio of products and services can and/or will be used when applied to certain situations (use cases).  This then begins the solution development process.

The upside to this approach is that the products typically “snap together” seamlessly and are easy to install. The downside is that they sometimes miss the mark with customers because products get over engineered and lose sight of customer needs.

The other approach is to evolve from external side and develop a segment marketing group.  In organizations that can’t, or won’t, evolve their product organizations, I have helped companies build a segment marketing group that integrates products into market aligned solution sets.

The group is aligned to unique customer segments and uses customer research, feedback from the sales channels, etc. to develop solutions based on the specific needs of that segment. This approach is commonly seen in the financial services and communication industries. 

The upside of this approach is that solutions developed at the segment level have very compelling value propositions because of the tight alignment with customer needs. The downside is the solutions don’t always live up to the hype.

Whatever path your organization takes is a step in the right direction. It shows that the organization is committed...but it is also only a starting point.

More detail on how to complete the journey in future posts.

How to get an Organizational TRansformation Right

Now that companies have finished cutting, closing, "right sizing", etc., it’s time to figure out what to do with what’s left. Executives are now trying to figure out how to get their new, leaner organizations focused on driving performance again. In their haste to reduce costs quickly companies now find themselves with “lumpy” or “overtaxed” resources and/or essential areas completely gone.

Where to start? Here’s what I’ve learned on where to start, and how to be successful. I call it the “T’s” and “R’s” of organizational transformation.

TARGETS – the starting point and the first “T”. Given the new economic reality, how targets are determined, agreed upon, forecasted and measured all must be rethought. That new thinking then must cascade its way down through the organization. Once defined and communicated, you then move on to the addressing the second “T.”

TOOLS - what tools are needed by the organization in order to reach the targets? In this category, I include key enablers such as process, infrastructure, systems and measurement, etc. If this is not addressed fully...it will impact how you evaluate the next “T.”

TALENT – once you have an understanding of the results you’re trying to achieve and a good idea of what tools are needed THEN you address Talent. This includes defining skill sets, competency, organizational structure, roles & responsibilities. This particular “T” also creates a subset of “R’s”.

The R’s include:

• REALLOCATE - correctly allocating resources along the work flow should address the “lumpy” effect. Depending on the approach your organization took during the downturn will determine the amount of work you’ll need to do here. For example, in companies that made headcount reductions across the board…this may not be an issue. But for others that made cuts based on a performance and/or a ranking system, it could be a big deal…e.g. one group may have remained relatively untouched based on their performance while another part of the organization was completely decimated.
• REALIGN – resources may have to be realigned based on gaps left by RIF’s. Also, changes in corporate and/or customer needs and/or priorities may also bring about a need for “realignment.” Make sure you address compensation and performance objectives (e.g. MBO’s) during this step.
• REFRESH – could also call this step “reinvigorate.” After everything your team has been through during the past 12 to 18 months, it’s time to motivate them…this is not a “one and done” event. Build a 12 month plan and be consistent.
• RECRUIT - after all is said and done you may need new talent (for example, analytics, social media, etc.) either “coach 'em up” through training (the last “T”) and/or bring in new skills sets.

TRAINING – now that the resources are aligned, it's time to ensure that everyone knows how to use the tools, execute on their responsibilities, etc. Yes, it’s time to invest in your staff...again!

5 Key Questions for Creating a Compelling Value Proposition & an Integrated Communication Plan

I’m about to share with you the secret formula for; 1) creating a rock solid, compelling value proposition (for products, services, solutions, etc.) and, 2) aligning (enterprise wide) your corporate communications. It will seem like a very simple approach, and it is, but once you try to get consistent answers from the organization to the following questions (in order) you will understand why this is so challenging...and why so many companies fail.

Keep this in mind, effective communication to customers must happen through a consistent delivery of the right message, to the right customer, at the right time, in the right channels to facilitate effective, efficient dialogue.

This is how you do it. You have to be able to collectively (with the right internal groups) answer the following five questions in order:

1. Who? – what audience/segment are you targeting, and why
2. What? – what do you want/have to say to that segment that is relevant
3. Why? – why would they listen
4. When? – when do you contact them, and how often
5. Where? – where do they want to receive the message

Sounds simple right? If only. Here are a list of challenges you will face when go through the process:

• Who - right off the bat, you will find folks arguing about your target audience, the segmentation approach, the segments, etc.
• What – oh, you’ll have plenty of things you what to tell whatever audience you settle on but you will struggle with relevancy
• Why - now comes the killer question…why would they listen? Seen this question bring grown men (and women) to their knees. The reasons are many; Marketers don’t understand the products, products aren’t differentiated, etc. Getting this question right is the key to the whole process.
• When – the challenge is deciding on at what point in a sales process, a marketing campaign, events, etc., and the frequency of contact. Touch them too often and/or at the wrong point you’ll get opt-outs, too infrequently, you’ll get no mindshare.
• Where – notice that I said, "they", and not "you" on where the communication happens. Yes, it's about your customer and where they go for information not where you want to put it. Find out where your audience goes to get information and/or determine their perference for receiving it. The othe challenge is ensuring that the message fits the channel. Certain messages/value proposition, etc. fit a certain channel better than others. It’s worth the time to figure this out.

This approach creates an execellent output but it will take time, discipline and many iterations to get right...good luck.

7 Steps to Creating a Social Media Strategy

Lots of clients are now interested (finally) in getting their Social Media house in order. Fortunately, there is a ton of information on Social Media available…unfortunately; I haven’t seen anything that tells a Marketer what to do about it.

After spending a year and a half on this topic and working with clients, here's a quick “To Do” list based on the best and worst practices observed. The first 3 deal with the current state, the remaining 4 are future looking. At this point you should have the first three steps in place.

Current State – get this done TODAY

1. Educate – up, down and all around. This space is moving so fast that getting senior executives up to speed on the tools is critical for getting the right focus on the right topic the right way (more on that to come). Senior executives like simple visuals that tell a quick and easy story. I'd also recommend putting together a cross functional "task force" to focus on Social Media. Blend a mix of heavy users and novices it can be very effective for helping educate the organization. For example, in the "Dot.com" days, Merck assembled a cross functional team to work on Web 1.0 for about a year. Team members then went back into their respective regions/divisions/LOBs to spread the gospel and implement learnings...like it...like it alot.
2. DO NO HARM – while it may take time for a company to get a clear understanding of the upside of Social Media, it may only be a matter of seconds to get a feel for the downside. One of the things that is fascinating, for better or worse, about social media is its speed and reach. A company HAS to clearly map out Risk and how to handle certain scenarios…which leads me to the next point.
3. Create standards/protocol/guidelines – after building a solid knowledge foundation of the tools and their functionality and mapping the risk, the organization is now ready to issue a set of guidelines for employees when it comes to using social media (see the IBM guidelines in my last post).

Future Vision – get this done by the end of the year

1. Decide on what you want Social Media to do – this IMO is the most important step that is being missed by most companies currently and the reason…see Step 1. Companies are experimenting (which I applaud) but based on my experience it has not been aligned against a clear objective/s. With budgets harder to get and/or retain you have to have clear vision as to what you are trying to impact/accomplish/achieve (see the video on the “Six Sweetspots”).
   
2. Map the Value – Another thing to remember about Social Media is that there really isn’t anything truly new. The tools just do something that already exists but faster, better or cheaper. In an article in Time magazine featuring Twitter, you’ll learn that Twitter’s 140 character limit was based on the first question asked on most phone conversations (What are you doing?). So think about those things that most impact your business – customer satisfaction and loyalty, new product innovation, etc. and find a role for these tools that either augments current efforts and/or may fill a gap (because of cost, reach, etc.).
   
3. Align against key Metrics – many companies are struggling with this one. They say that can’t fund experimentation because they can’t, or don’t know, how to measure the value or ROI. That’s right…because many of the tools, tactics, etc. aren’t measurable on their own. Again back to my point above…they do something better, faster or cheaper, so align them against the metrics already in place. For example, let’s say you’d like to do a customer survey and the goal is to get 200 completed surveys. Use Twitter to announce the survey and watch how fast you get to 200…it will knock off days, believe me. The goal is # of completed surveys, Twitter accelerated the process (and probably saved you some money on incentives)…that’s the value.
   
4. BUY, DO NOT BUILD – unfortunately many companies who have funds to invest have wasted them on building their own branded sites/tools, internal capabilities, etc. Here’s the thing, Web 2.0 as I’ve mentioned before is about “Consumers Selling to Consumers.” Get it…not “Companies Selling to Consumers”...we have plenty of that happening already.
   
   When companies overly commercialize and/or control Social Media tools they fail (e.g. no audience, interaction, etc.). That’s what makes this space so tricky…you (companies) aren’t in control…but you love trying to have it…can’t help yourself and that’s when things fail.

For example, it's better to video a customer testimonial on buying insurance and hang it in a site like eHow than to invest in a production studio and shooting a “How to buy life insurance” video for their channel. Plus, this space is moving so fast that you will probably invest in something that will have a shelf life of less than 12 months…remember when MySpace used to be hot. BTW - it's dying because Ruppert has moved it into the lower right hand corner of the quadrant above.

The upside of the downturn is that you have to be frugal and that may turn out to be a really good thing. Get smart now, then act.

The Social Experiment

The answer to the question I asked in my last blog post is 3 hours and 48 minutes.

Tuesday’s blog post was an interesting experience/experiment in watching Social Media at work.

After posting the blog at 10:12 am and ending the post with this challenge; “Now, let’s see if they are as good as I think they are…how long before they pick this up and respond?” Richard Hammer (the author of the blogpost on Allstate & Twitter) posted a comment at 2:04 pm.

The question is how did they find out so fast? I asked our Director of Marketing the same question; “If someone wrote a story on MarketBridge how long would it take for us to pick it up?” He mentioned about a day, which sounded reasonable, but now it makes you think...is that too long?

After working with clients for years on improving their tracking, measuring and overall campaign and program effectiveness, Social Media suggests a whole new set of questions about how to track marketing efforts. We used to live in a world where we tracked programs over months/years, and campaigns over weeks/months. Now we’re dealing with hours or less …from “analog hours to digital minutes” as my colleague, Andy Hasselwander likes to say.

I still remember the impact of telling a client a few years ago that the effectiveness of an email campaign lasted less than 72 hours. Now we could be dealing with 72 minutes. It’s fascinating to watch and holds great potential, if understood. And if the social media platform providers can figure out how to monetize their models…e.g. right now Facebook is growing faster than their revenue model can support and how will Twitter make money?

This potential evolution/revolution poses some very interesting questions for marketers, such as:

• How long will “freeness” last?
• What platforms will be left and who will own them? Really, how many Microblogs do we need?
• How do I measure the impact of a “flash?"
• How do I control the “reach and direction” of my communication?
• Do I have to worry about privacy issues if everything is in the public domain?

So how did Modea find out that I blogged about them so fast? Google Alerts (free) as David mentions in his comment, most likely it was set to alert once a day, probably the reason why Michael thought it took them 8 hours to respond. How did I get comments from Modea bloggers, who I mentioned in the post, but not by name? Because the blog post was posted on Modea’s Facebook (free) page.

How did they know about the story so fast? Twitter (free) most likely from their Facebook posting. At least 6 people “tweeted” about story and linked to the post. How did I know? I searched Twitter (in the public domain) and Google Analytics (free).

How do I know they came from Facebook? The same way I know that there were 34 visits from 32 people from Blacksburg, VA to the post within the first 8 hours, Google Analytics (free).

Hope this helps answer the question about tracking Social Media. The bigger question is who will receive the value/benefit from “freeness” for now? My bet is Social Media/Digital agencies like Modea, who have grown incredibly fast over the last three years, because they understand how to use the “free platforms.”

How do I know…it’s in the public domain...just like all the information above. How long will it last...now that's a good question.

Social Media Agency uses Social Media to Promote Itself

How do you find Digital talent in an area of the country that is anything but a marketing hot spot? Don’t get me wrong Blacksburg, VA is a great college town, especially, if you’re a Hokies fan, but Digital Agency Mecca? Ah, no.

Where does a new fast growing Digital agency recruit that kind of talent? Well, being based in Virginia you go to the closest talent markets…Richmond, VA for creative folks (home of the Martin Agency…Gieco Caveman and Gecko, fame) and to Northern Virginia (NoVA) for Web Developers, Account Managers, etc.

But how do you get them interested in a small, relatively new agency in the middle of nowhere that specializes in social media? Simple, apply what you know… social media. Modea, a growing digital agency in southwest Virginia took a dose of its own medicine and pulled off a subtle but effective effort.

Recently and by accident, we picked up a couple of blog posts that made it into the mainstream media written by Modea employees. The first blog post, written by a recent grad, appeared in Ad Age on 4/13. The article, cleverly written, describes the author’s interview process/courting process with Modea and gave tips for other recent graduates looking for a job in this challenge environment…it also conveniently mentions the firm, Twitter, Facebook, etc.

It describes how she started her search on VCU’s BrandCenter Facebook page (recruiting Richmond talent). She points out that she had reservations about moving to Blacksburg. And, of course she subtlety gets in the plug for the agency…

"Modea is neither an agency nor a think tank. It is an idea-churning society."



Original? Not really, we found the exact quote in a photo of the Modea offices on their Facebook page. It was printed on a piece of paper and taped to conference room wall. Looks like she's "on brand."

The second ad/blog post was written by a Web Application Developer at Modea and appears on Handshake 2.0. This post is aimed at the NoVA crowd. Again, cleverly written as a blog post, it describes the experience of another recent hire that left Northern Virginia for the hills of Southwest Virginia.

He starts his story with the fact that he recently transplanted his family from NoVA to Blacksburg…”to take advantage of an amazing job opportunity.” Ah, there it is…the plug.

The author goes on to talk about his pipes bursting while he had the house on the market during a “bitter cold stretch.” He posted a Twitter status update that he was in "good hands with Allstate" and how quickly they responded to his post.

Through telling of his ordeal he also convenient slips in his initial skepticism about Twitter but now how it’s the greatest thing since Web 1.0.

"Here is a brand and a company that, in my opinion, gets it. Here is a visible, public social medium where people are sharing publicly their views and thoughts on anything and everything in their lives. Communities are sharing their experiences and current state of consciousness. Consumers are expressing opinions, both positive and negative, about the world around them and how they interact with it. It would be a missed opportunity for any brand to ignore this medium. Listening and being aware of what is being said about their brand, allows them to, in some cases, actually do something positive and nurturing about it”.

Now I'm not exactly sure what ol’ Mr. Web Application Developers job is at Modea but I’d be willing to bet it has something to do with helping clients with their Twitter strategy.

Anyway, with all this being said I have to take my digital hat off to these guys. Two things could explain this bloggin coincidence and both of them are good.

The first is that this is a well thought out Social Media campaign (which yes, happens to be one of the services that Modea offers). The second is it’s a case of passionate employees who are raging advocates applying their craft to spread the good word about a company they love (or perhaps there’s a big employee referral bonus). Either way…well done, Modea! You’re best in class either way.

Author’s note – I have no connection to Modea. I’m not being paid to endorse their services, I have no stake in the company, I’m not even a client…just a fan…or am I? Now, let’s see if they are as good as I think they are…how long before they pick this up and respond?

Why Sales Channels and Marketing Campaigns Fail…A True Story

In August 1999, Selling Power magazine ran an article featuring our firm and the work we’ve done helping clients, like IBM, build new sales channels and increase sales productivity. A few months later, we received a call from the head of a division within NCR asking us to meet with them to see if we could help them with something similar.

The senior executive with whom we met said if we could help IBM we should be able to do this project for them. Excited about the prospect of helping them build a new channel, we agreed and they laid out the challenge.

1. A well-known consulting firm had been previously engaged but had failed
2. ...which left only 41 working days to get the new sales channel up and running
3. An internal NCR tele organization was competing for this…which, we would later learn, tried to sabotage the effort...and us
4. And finally, we were entering the holiday season…good luck

After collecting the previous project work we quickly went to work on assessing what had gone wrong. It took us a while, but we finally discovered "IT". Once found, this insight became the key to unlocking success. Almost ten years later I’ve seen this scenario play out over and over in B2B companies. The following is what we discovered;

This simple equation is just as true today as it was a decade ago when we discovered it. Oh, you may find one or two exceptions but the majority of the time when we do post mordems on failed programs you find this equation at the heart of the problem. When combined with a few related pieces, like a lack of time in the market and/or funding, the initiative is doomed. The degree of “newness” in these three areas will directly impact the likelihood of success or failure.

NEWness kills campaigns and channels because it takes too long, is too expensive and/or is too risky. Here’s why -- customers/prospects have to go through the buying process…Learn, Shop and Buy. They have to become aware of your product/brand/solution, then understand how it fits their need (known or unknown), then assess how you compare to others in the market, how to buy, etc. By the time you get a customer/prospect to do this..bam...the company runs out of patience and pulls the plug.

Sales Channels

• Why they fail – new sales channels fail because companies aim new channels at the wrong targets -- new customers/markets. An investment in a new sales channel means that it is competing with existing channels for funding. If it does not hit expectations/goals quickly, it will be robbed of the necessary funding and/or resources needed to make it successful.


• How to improve the chances for success - The most successful way to build a new sale channel is to do exactly the opposite of what is described above. Shift coverage of existing customers or products to the new channel and use your existing channels to go after the “new.” Shift dormant or flat growth customers to the new channel to give it revenue immediately and free up your existing most knowledgeable, best trained sales folks to go after new.
  
  Pitney Bowes has a great program run by their Marketing Sciences group that constantly monitors account activities. Regional sales managers receive a monthly report of Accounts that have not grown within a certain time period, and as a result, they will be shifted to an inside account manager. We like to call it “shift” and “lift.”

Marketing Campaigns

• Why they fail – new marketing campaigns promoting new products aimed at new customers typically fail because of reasons listed above...they take too long to produce and/or aren't given the time. Here’s another common problem, agencies will tell you the problem is the "creative" or "value prop"...maybe, but they also could telling you this because they make money on creative and production. “New” works with their business model. More likely, if you did your segmentation right, aligned a solid value prop and offer, your problem is that the campaign has had a chance to work yet…don’t pull the plug. Remember customers have to go through the "learn...shop...buy process and it takes time.
  
• How to improve the chances for success – build less individual campaigns and invest more in one or two long term programs with many integrated tactics. Keep the programs in the market longer, closely monitor them and modify tactics based on performance. You don’t need a new campaign every month, you need a program that produces…and with tight budgets this will help you be cost effective/efficient.
  
  Years ago we did an assessment of campaign performance at IBM. We found that the highest performing campaigns had at least 7 integrated tactics and stayed in the market for at least 6 months. Use this as a starting point to design your campaigns and programs.

Keep in mind that the “Recipe” should be thought of as a “guideline” and not as a hard and fast rule. It’s kind of like playing the six degrees of Kevin Bacon ; “How can I connect, or create a connection, from a product to a target? How can I minimize the separation between the three key areas; channels, customers and products?” If you’re still stuck, here are some additional tips;

• New to New thru New = level set expectations and invest for the long haul. You will need time and commitment to make it successful. Companies have short term horizons that are getting shorter every day. If you’re going to lead this effort get everyone to agree on what defines success and stick with your timeline.


• New Product/Service/Solution – try to leverage existing channels, customers or both to start...then migrate to new. This way you can learn if you have the right value prop, messaging, pricing, etc. We like to take existing reps, for example, and use them to help launch a new sales channel, like Tele. We like to use existing customers to test new products, etc.

For example, at NCR, we got the tele channel up and running in 41 days. We transitioned existing field account managers to TeleAccount managers and built their territories around their customers. We then began to backfill them with new lower cost resources over time. You'll be happy to now that the manager of the group that tried to sabotage the effort got fired. The program hit our first year sales targets, reduced the expense to revenue ratio from 13% to 6% and grew sales productivity from $1.7M to $3.1M per rep. As a result, NCR then built a full scale tele channel with close to 80 reps. Interesting sidebar, the program was shut down a few years later.

It's a long story as to why, but I'll try to summarize. John Patterson, who bought the company that would become National Cash Register (NCR) in 1884 tried to sell the company back after he learned the hard way that no one saw the need for his new technology. So he developed what is viewed as the first modern concepts on sales territories, sales compensation plans, sales training, etc. Bottom line, the company has a strong field sales tradition and culture.

Mark Hurd, now CEO of HP, became the CEO of NCR a couple of years later and decided to shut the channel down, redirecting the resources to the field. Remember my comment about competing for resources…Mark’s a traditionalist...a FTF sales fan.

Culture runs deep, and can also kill channels and programs. Mabye I should update the "Recipe" to include the forth "New"...new leadership. As I said, the "Recipe” should be thought of as a “guideline” and not as a hard and fast rule.

Data Driven Action

Tell me if you’ve seen this movie before. After spending months debating about the right type of segmentation to do, you finally agree, do the research and…it never gets used. Or how about this one, you get a request from sales for information you’ve already sent to them…multiple times.

It’s a horror movie and it gets play out every day in organizations all across the country. Why? Why is it that we want “the data” but then we don’t end up using it? Based on my experiences with clients, I believe it comes down to few common problems that are manageable, if known.

The top 5 problems I see:

1. Insight – as in the lack of it…it’s the #1 reason why data doesn’t get used. Far too often the Ph.D’s will put out data without having interpreting it for the intended audience which then sets up the next problem.


2. Language/Communication – call it taxonomy, communication style, whatever, data folks and everyone else (in particular, sales & marketing) speak different languages.


3. Overload & Timing – yes, analysis paralysis does exist but not the way you might think. If you’re in a data rich environment, you’ve probably experienced this. Just too much info flying around and as a result, it often gets ignored. It’s not that it causes people to not take action, as much as it is people taken action and ignoring the data. In other situations, especially involving marketers, it may be a matter of timing. They may be in too much of a hurry to get something out the door to wait on the data.


4. 60-70% Complete - critical pieces are sometimes missing so you can’t see the insight. The dots haven’t been connected. The person responsible for supplying the data doesn’t, and/or wouldn’t, see the connection.


5. Skill set – CMO’s when asked the top reasons (see the chart in the post below) for the need for new skills in their organizations mentioned; “greater segmentation of market” and “increase demands for analytics” in their top 5. The problem is that there aren’t many of them out there.

Why is this important now? Because everything you do or want to do, or are thinking about doing, will have to be backed by data in this economic environment…you’ll need a rock solid reason for getting, or spending a budget.

Five things to do about it:

1. Apply the “So What” rule – yes, this rule is typically used to help define a feature from a benefit but it’s also effective at drawing out insight from raw data. If the data guys are presenting information that you don’t “get” ask them “so what?”…as in, what is this data suppose to tell me? And keep asking until you get to the “so what.”


2. Help connect the Dots – if the story is missing help supply/coach on how or where to connect the other pieces. If you’re the user know what you’re looking for and provide guidance on where to find it. As I mention above, researchers may not know or wouldn’t understand the connection. This also applies to coaching on communication. Help them understand the language you speak.


3. Chunk it up – sometimes there is just too much to take in and process. Chunk information into more digestible pieces. Take some time and think about what various groups can digest and how often…especially if you’re in a data rich environment.


4. Provide plenty of lead time and direction – don’t expect to get something insightful and/or useful if you don’t give adequate notice or direction. Getting a report on market share won’t tell you how to increase it, or why you’re losing it. Combining trended quarterly market share, key consideration drivers, and sales coverage will...but it takes time to collect. Know what you’re looking for and how to get it.


5. Hire an expert – as was mentioned above there is more demand than supply of talented people who can pull insight out of data and drive action from the insight. If you have to, partner with a vendor. It should also help with the timing/speed issue mentioned earlier. Additionally, they will have tools/approaches that help force out insight.

Data…leads to Insight…leads to Action…leads to Data…the cycle of life. It’s time to turn this horror movie into an action thriller.

Unclogging the Pipeline

This post was recently featured in an article on MarketingProf's

Pipeline slowed to a trickle? Opportunities backing up, lead-to-close time seem like forever…yea, welcome to the recession. With customers delaying and/or postponing decisions altogether the ol’ pipeline ain’t what it used to be.

Here are 7 Pipeline Management Best Practice tips taken from leading companies that might help:

1. Weekly Pipeline Meetings with Sales AND Marketing - yes weekly…and with Marketing, do it in country and at the region level. You may also do it at the corporate level with the CEO , like IBM.
   
2. Apply BANT – CRM is great at increasing visibility into opportunities but it tells you nothing about why opportunities aren’t advancing. BANT will. By qualifying and re-qualifying opportunities based on Budget, Authority, Need and Time you will get to the bottom line on why leads are not advancing. Reps will say that it’s “B” but I wouldn’t assume that. Companies are still spending (not as much) but now it takes a C-Level to approve (is your sales force getting to “A)? Budgets have moved higher in the organization and have been centralized. Also, business cases are required for EVERYTHING so if you aren’t submitting one with every proposal you’re not address “N”. Timing (T) of course, things are slow so you need to find out as much as you can about when budgets might get released and then check again, then again...


3. 90 day Movement Limit – this is one of my personal favorites. If a lead (that is truly a lead) does not advance within a 90 day window it moves back to the previous stage in pipeline or is killed. Given that lead cycle times have lengthened…considerably, you may want to make the window 120 days. Up or Out…learn it, live it, love it.
   
4. Define a lead and stick to it – look, it’s going to be difficult road but be honest with yourself on what is truly a lead. A response to a campaign offering a free gift card, or a download of a white paper off the website, aren’t leads…they’re responses and should be treated that way. Leads are defined by meeting a BANT criteria…see above. People will want to get fast and loose with the facts to satisfy the sales force or make marketing targets but don’t let them…stay firm, you’ll thank me when the recovery starts.
   
5. Response Management – so now that you’ve removed the “junk” out of the pipeline it’s time to do something with it. In reality responses aren’t “junk” (well, some are), they’re potential leads that just need to be nurtured…for a long time in today’s environment. Don’t disregard them, I’ve seen too many companies do nothing with this group. In the good times most of them would be leads. How to find them? Simple, ask this question during you pipeline call; “who owns responses that aren’t qualified leads…” wait for the silence. Bingo, there’s your answer. Take the last 6 months of campaign response and start digging.
   
   Sort through the “junk” and find the diamonds in the rough, pick out the ones who are in the right companies or have the right titles and work them. These are folks who are in the learning process, they may see the need but may not have the funding or approval yet. Make an effort to nurture it will pay off in the long run.
   
6. Lead Gen to Sales Enablement – it’s time to move marketing down the pipeline. Lead generation aimed at acquiring new opportunities is a waste of money in a recession. The cost of a qualified lead has skyrocketed…don’t believe me go do the analysis you will be surprised and in some cases shocked. So it’s time to invest against sales enablement and helping the sales force move opportunities already in the pipeline. Here’s another fact for you…B2B sales channels create 80-85% of all leads so cutting lead generation programs will not hurt you…I’ll say it again, redirecting investments away for lead gen activities will not hurt the pipeline. What is sales enablement, and how does it help the sales force? Well, it’s things like business tools that can prove a ROI, sales presentations loaded with proof points (case studies) on your value, and a robust customer reference program (see the graph above). By aligning marketing activities to moving the BANT levers you will be investing marketing dollars were they can have the greatest return…and your sales force will thank you for it.


7. Comp on or Emphasize Customer Meetings – if you build comp plans based on revenue and lead targets/production you may want to consider over emphasizing face time in front of the customer for the first half of the year. You’re probably saying to yourself, “but Scott, why would I do that if customers aren’t buying?” Right, but they can tell you why, when things might loosen, and who you need to get to (see my rant on BANT in bullet #2). It’s during these times that you need to have your reps in front of customers so they can collect the information needed to provide you with update during the weekly pipeline call. Use your sales enablement team (see paragraph above) to provide them with high value material to share with customers in order to get those meetings. See how it all connects?

I hope this helps. Unfortunately, it looks like we’re going to be stuck in this situation for all of 2009. Be strong…the bad times, just like the good times, don’t last forever.

Managing the "U"

Happy New Year! Well...I'm not sure if happy is the right word, maybe we should just hope that it will be better than 2008.

Anyway, I know that the current economic conditions have many executives scrambling to cut costs and keep their heads above water. As I mentioned in my post on November 6, 2008 entitled Best Practices from the Last Downturn, we’ve gone back and looked at what leading companies did to weather the storm, steal share and come out of the downturns ahead of their competition.

In the video above, MarketBridge CEO Tim Furey looks at what leading companies are doing this time around, and shares some best practices for firms going into 2009.

In Part 2 of this discussion Tim will more closely examine how a few specific companies (namely HP and CapOne) are utilizing the downturn as an opportunity to position themselves as market leaders.

Pre-register Here

Lines of Businesses, Verticals and Services…Oh, Boy

by Scott Gillum

Why can’t we all get along? On my flight home the other night I sat beside a woman who headed a line of business at an Environmental Waste compnay. She mentioned how they recently realigned the organization to a Verticals, LOB’s and Services model and that they are struggling with the transition…it sounded like I was talking to myself.

We made the same decision this year. After advising and helping companies tranisition their organization to this structure for years, it is only now that we are beginning to feel their pain. And boy, are we feeling it.

Here are some of the common challenges:

• Everybody will be in Everybody’s business – early on in the transition you’ll experience the “blob.” Everyone involved in the reorg will pretty much be stuck in the same place. Vertical guys will want to define products, LOB’s will want to do their own sales and marketing, etc. It will take time for the “blob” to spread out. Give it time.
• Lane Violations – as the “blob” starts to spread out people will begin to find their lane. The challenge will be those who refuse to stay in their lanes. Lane owners will need to be protective of their space and tell others to "get out"…easier said than done.
• I think there for I am – just because you’re the new head of a Vertical or LOB doesn’t mean you know how to do the job. You’ll find that it will take time for folks to truly understand what they are supposed to do…try 6 to 12 months. And for some…never.
• Marketing, Selling, Scoping Work, Pricing, etc. – yep, all these functions will be debated over and over...where they best fit, who should do what, at what point in the process, etc.
• Compensation – OMG, the elephant in the room. Yes, it will look easy on paper…Verticals = revenue…LOB’s = profit and/or contribution...Services = customer loyalty/satisfaction, but boy does it get messy. It should create a healthy tension in the organization as long as its managed with an iron fist that is covered with kid gloves. This one will take time to sort out and all those lane violators will want to make up their own rules and/or change the ones that exist. At the end of the day, err on the side of the customer and/or what makes best sense for the organization.

Tips on how to survive...and maybe thrive in this new world:

• Clear Definitions on the Role…and how to do the job – almost everyone will get the logic and/or rationale for the change and intuitively understand what they are suppose to do. The challenge is they may not, or most likely will not, know how to do it. I've seen this story a dozen times....create the org chart, make the announcement to the company; lay out some targets…now go. The missing piece? No one has given anyone instructions on how to do their job. Invest the time to be crystal clear on what and how you want the job to be done. It will go a long way in keeping the “lane violation” from causing problems.
• Hiring from the outside – it’s taken me a while to come to this but I think you may be better off hiring new blood to run the Verticals, especially if they are new. If your business is product focused and has been aimed at one or two specific industries consider hiring in talent from the industry you want to penetrate.
• Verticals go forward – the role of the vertical should be to understand the needs of the industry/customers (market sensing), the positioning of competitors, manage pipeline, and position the organization/product/services value proposition to be successful. They may also own account management activities. If they do, a line should be established on how big an account should be to warrant that type of coverage (more on that later). Notice I didn’t say develop products and/or services because they shouldn’t! Vertical folks will be invaluable resources for informing new products/services and adapting existing, but they should not drift into the LOB lane…they own products. If done right they should have an idea of what customers will be 2-3 years out and should challenge the organization to catch up with offers (click below).
  
  
• LOB’s go deep – the role of the LOB should be to develop a standard set of products and services that fit common needs of customers across industry and meet a defined profit target. They may or may not own the P&L, it depends on the industry but they should control PRICING. Enabling the sales organization (the Vertical) with good content to support their business development efforts and informing the services/solution organization on their needs is core to their role. LOB’s should also understand which channels support what products/services and provide them with the right funding/incentive model.
• Services and/or solutions go long - this group may often feel like the orphan in this new model but don’t neglect their needs, voice or insight. Most likely, they know the needs of the clients as well or better than the verticals, and how well products/services/solutions actually work. This group should focus on serving the needs of existing customers and finding ways to improve, strengthen and expand that relationship.
• Create a “Practice” – a “practice” is a cross organizational group that is focused on supporting a Vertical. It should include representatives from the Vertical, LOB and Service/Solutions groups. The purpose of this group is to decide on how to go to market. What segments/sub-segments to target, what to sell to whom by when, and to align and/or optimize resources against revenues. This gets the three groups talking, listening and focused on running the business effectively and efficiently and it can go a long way in helping define roles and responsibilities (see graphic above).
• Not every ‘customer’ needs to be in a Vertical – small and some medium customers don’t need and/or fit into a Vertical. Their needs may not be that unique and/or warrant the type of coverage of other larger customers. Additionally, if you’re deploying a geographic vertical coverage model it just doesn’t make sense in some areas. A dense concentration of customers like the Northeast can support a vertically aligned sales force but in the upper Mid-West…forgettaboutit. Run the territory models on what makes sense.

Good luck and godspeed.