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Source : Technology Sales Leads (TSL)
IT Sales Lead Generation: Understanding the Complex Sales Needs of the IT Industry
Sales Lead Generation is also known as:
Lead Distribution Management,
Sales Force Automation,
Technology Sales Leads,
Sales Lead Generation Methods,
Lead Generation,
Customer Relationship Management (CRM).
Drive Sales,
Sales Prospecting,
Lead Generation Explosion,
Internet Sales Lead Generation,
Sales Lead Generation Company
business sales leads,
sales lead lists,
lead generation services.
About Technology Sales Leads
1. Introduction
The sales lead generation process for technology companies is very different
from lead generation in other industries. Technology sector needs are much more
precise: the target audience is much more difficult to reach; the products or
services are generally complex, high-value, and high-end; and the evaluation and
selection process can be quite long, taking months, if not years, to bring the
target from initial contact to closing the sale.
Leads in the technology sector (let's keep it as formal as possible ' "are
not" discovered simply by a reference or a cold-call. Leads are nurtured from
simple possible interest in services right until the final purchase decision. In
traditional lead generation, the target could be anyone from a low level
employee to a CEO, and you can span the entire range of B2B. In technology
sales, however, the target market is almost exclusively B2B, and the target
individuals are usually decision makers high up the corporate ladder.
Identifying the target isn't always difficult, but reaching them can be.
As a sales representative in the IT industry, you need to identify and reach
the key influencers, evaluators, and recommenders, or you stand no chance of
moving towards a sale.
Even when you do get to speak to the key decision makers, unless you
completely understand the client's internal structure
and can distinguish between Line of Business (LOB) and Technical Contacts, you
will not gain success.
Regardless of how well you know your own products, to sell them you will need
to understand the systems and processes of your potential clients. In order to
accomplish this, you will need not only a broad understanding of enterprise
software & enterprise technologies, but also a broad understanding of the
underlying business issues and goals of your potential client. Unless you fully
understand this situation, you can't fully understand how your products and
services can fit their needs
2. Complex Sales
Customer contact in complex sales usually involves a sales team instead of a
solo contact. The team is functionally divided into sales, technical,
operational, financial, or other specialists. In addition, many customers hire
third party consultants who are paid to help evaluate goods and services. This
is very common in high-tech fields that are rich with complexity and varieties
of applications.
Selling technology products is an involved and time-consuming process. Before
you jump into a sales process, you need to determine all the key factors in the
decision-making sequence. The principal factors are:
- Evaluators - You need to establish who the
evaluator(s) of the product will be in order to pitch the performance and
functionality of your product.
- Recommenders / Influencer ' You need to
establish who in the target company will be involved in giving opinions to
the decision maker. Usually this includes the manager of the department that
will require your service/product, but there can be numerous influencers
throughout an organisation, and even external to it if consultants are used.
- Decision Makers ' You need to establish who
the key individuals are with the authority to decide on the final purchase.
Relationships with the Recommenders, and what influence each of them has
also needs to be established.
- Buyer's Needs - You need to understand what
needs your buyer has in order to decide if your product/service is a
solution to their needs. If your product is not a solution for this specific
lead, then nurturing the lead is usually not worthwhile.
Characteristics of the Complex Sale
These and other factors have created a new and different "complex sale." This
type of sale can be identified by certain characteristics. In non-complex sales,
one or a few of these elements may exist; but in complex sales, they are all
present.
The characteristics of complex sales are:
- A long sales cycle
- A significant decision to be made in terms of dollars or strategic
direction
- Significant resources are invested prior to making a decision on the
part of both seller and buyer.
- Multi-level contact within the buying organization.
- A range of competitive strategies from which the vendor may choose to
engage competitors.
- Buying decisions that have significant impact on the customer's
business.
- Complex issues and solutions.
- Political dimensions which often supersede product and business issues.
The product or service in this type of sale may or may not be complex by
itself. The sale can be made complex by the environment. For instance, selling
socks over the counter may be a non-complex sale. Selling socks to the US Army
is an altogether different selling situation.
Challenges of Complex Sales
In complex sales, vendors must acquire deeper levels of understanding about
the customer's business and organization in order to be successful. This is one
of the reasons for the longer sales cycle. The first challenge of a complex sale
is to know enough about the customer's business to determine whether the selling
organization's services, products, and culture are compatible with those of the
customer. The solution that the seller provides will only be as good as their
ability to implement.
Beyond just understanding the customer's business, there must be a
demonstration of understanding of the inner workings, or politics, of the
customer organization. Most complex sales are won or lost on the political
playing field. The vendor with a viable solution, who is able to analyze the
political structure and align with those who have the greatest influence on the
decision, is usually the winner.
Thirdly, there is a competitive dimension in complex sales. The seller must
understand who their competitors are, both internally (within their own and the
customer's organization) and externally (the competitors). The vendor must learn
to identify the strategies that are being employed to thwart the success of
their efforts. Once they have identified what these competitive strategies are,
the seller must then choose the most effective strategy to overcome the
competitor, while simultaneously demonstrating the most attractive solution for
the customer.
In complex sales, the vendor must prove their case at the operational,
financial and executive level, but there is a fourth dimension affecting the
decision that is not so obvious: the dimension of influence. Influence may come
in the form of a person, but it may assume other forms as well. Political
issues, both internal and external to the customer may influence the decision.
The business environment will affect the sale, such as regulatory changes or
even pending changes.
Preparing For a Complex Sale
There are no guarantees that having the most resources will provide the
decisive competitive edge. The successful complex sale is as much a result of
choosing the right strategy as it is of having the necessary resources. No one
should attempt a complex sale without some formal methodology for managing the
process. There must be tools and processes in place to communicate amongst the
sales team, establish and record the achievement of milestones, map the
political structure of the customer, and define goals and objectives. Nothing,
including experience, will replace good processes when managing a complex sales
campaign.
The choice of competitive strategy must not be made too early in the sales
campaign. The strategy decision is a function of the seller's knowledge of the
situation, the customer and the competition. Timing is the critical element in
implementing a strategy. Applying resources to those campaigns where there is
the greatest likelihood of winning also allows the vendor to compete another
day.
3. Enterprise Prospecting Methodologies
Enterprise prospecting is a multi-stage process that allows a company to
systematically narrow in on the correct individuals to speak to in an
organisation, and subsequently discern the current or future fit for their
services in the organisations they wish to prospect. Error! Reference source not
found. summarizes the enterprise prospecting process. Enterprise prospecting
consists of several distinct stages which, when implemented effectively, help
grow basic leads into full opportunities, and allow a business to target their
full sales pitch on companies with a definite need and a definite interest. This
means sales time is spent closing deals, and not trying to find them.
Stage 1 - List Development
While it seems a very basic starting-point for enterprise prospecting,
effective list development is often overlooked. Effective list development can
be the key to the success or failure of an enterprise prospecting campaign. If
you don't define the basic parameters of your target audience properly at the
beginning, the rest of the prospecting process can be futile. Simply, if you are
talking to the wrong customers, it doesn't matter how good your sales process
is, or indeed how good your product is. Enterprise prospecting is about finding
potential customers with the right budgets and/or needs that make them possible
future leads. Once the criteria for the target audience is established, a list
of companies that meet the basic target criteria (geography, industry, systems
in use, turnover, employees, etc.) should be drawn up. This can be accomplished
from existing data, internet searches, purchasing from list brokers, or
utilising a professional lead generation agency
Stage 2 - Account Profiling
From the outline list of companies developed in Stage 1, the next step is to
profile the data. Even if you used current data from your own databases, the
details on the lists must be re-verified to help progress the campaign as
smoothly as possible. Nurturing a lead for weeks, only to find that an internal
change in the company has rendered them outside your target market is an
expensive mistake.
Once the basic details are re-verified, the main process, major account
profiling can begin. The first step in this process is to profile the companies
to ascertain suitability for your company's solutions. This can vary greatly
between companies, but here are a few examples:
- Company A is using suppliers X, Y and Z and is therefore a suitable
target.
- Company B utilises a Unix operating system and is therefore suitable.
- Company C has no customer complaints department and is therefore
unsuitable.
After each company's information has been verified, the next step in this
process is to determine the key decision makers in the target company. Key
contacts may have been established as part of the list development process, but
they need to be re-verified. In addition, their responsibility needs to be
established. An IT Manager will not necessarily have the decision making power
over IT Infrastructure projects, so may not be the key contact for your
prospecting.
The establishment of key individuals and their responsibilities allows
prospecting efforts to be as targeted as possible, since prospecting to the
wrong person is a waste of time and resources. However the key contact for a
company could still be several people in the organization, depending on the
project. For example, if you are prospecting for an ERP system, IT, Finance and
Data managers could all be relevant key contacts.
Cleaning, verification, and enhancement of your data should be done
systematically, and requires the skills of an experienced operative to acquire
the relevant data without falling foul of corporate data restrictions such as
"no name" policies. In addition, the person doing this enhancement must be
experienced in enterprise prospecting and sales lead generation. Although the
object is to gather data, and not to speak to key individuals at this stage,
invariably you do sometimes get put through to the key contact. This could be
your only opportunity to speak to them, so you have to be ready to nurture the
prospect as the opportunity arises.
Another vital process of major account profiling is to establish internal
relationships. Without knowing the internal relationships in the company, a
prospector will find it difficult to target the correct areas and correct
individuals at the correct times. If the IT Director reports to the Finance
Director, you would target your prospecting differently than you would if the IT
Director reports to the CEO.
The account profiling process will leave you with a list of highly qualified
leads. This will save you time by helping you avoid chasing leads that are only
marginally qualified or completely unsuitable for your products.
Stage 3 - Sales Lead Generation
Once the major account profiling has been completed, the sales lead
generation process begins. Each company must be prospected as an entity. The
relationship between the key contacts in the company (who reports to whom, etc.)
must be established, and the decision-making abilities of each discerned. The
sales partnering relationship begins here. Get off on a good foot here, and your
job later will be much simplified. Remember, not every company may be a good
prospect now, but if your list development process was correctly specified, they
are in your target audience, and may be a prospect in the future.
Once the introduction of your product/service is completed, and the
establishment of possible needs/requirements is completed, all leads must be
classified to allow them to be tracked. You need to know what leads are ripe for
your sales team to try to sell to now, which leads may be ready in a medium
period (6-12 months), and which leads are possible future buyers, but with no
definable time scale. Use a customer relationship management (CRM) system in
some form to record all contacts with each of your leads. This will allow you to
track the effectiveness of your sales process and to eliminate redundancies.
Correct classification of your prospects is key. Without this, your sales
team will expend efforts on what are not current possibilities, while red-hot
leads in other companies may slip by. Strategic Selling is part of the overall
approach, not just part of the closing.
Stage 4 - Lead Nurturing
Not all Leads are ready to close directly after the lead generation process.
In fact, very few are. Most leads enter into the nurturing process, where you
have made the client aware of your services, established a possible need, and
you decide the optimum time period before follow-up contact should be made.
Again, this is where the expertise of the individual is paramount. Follow-up too
soon, you risk annoying the customer, and being eliminated from any future
sales. Follow-up too late, and even if the decision hasn't been made, you may
not be able to get your services on the table for consideration. It is a fine
line, and one that is difficult to judge. However, getting it wrong at this
stage costs your company medium and high-probability opportunities. 3rd party
agencies in this area can be an excellent source of expertise without the need
for in-house up-skilling and the associated problems of staff-retention and
skill-set acquisition.
Following the four stages of enterprise prospecting will get you on the right
track. However, even if you do effectively complete the list development,
account profiling, sales lead generation, and lead nurturing stages, sales can
still leak from the pipeline quite easily. In fact, this is the most expensive
stage at which to lose a sale, as you have already invested the time and effort
to develop, profile, prospect, and nurture the lead all the way to the point of
sale. If you are exploring the route of enterprise prospecting, you should also
ensure you reduce leaks from your sales pipeline.
4. Implementation
Once you have developed a solid sales lead development strategy, the next
step is to integrate your strategy into existing sales processes seamlessly and
painlessly. This integration process has three steps: analyse, design, and
implement.
Step 1 - Analyse
In order to implement a sales lead development strategy, you must first
analyse your own set-up.
You need to determine:
- Do you have a definable market for your product?
- Do you have the in-house skills to turn prospects in to clients?
- Do you have the structure in place to cope with increased sales?
- Do you have the ability to effectively manage your sales pipeline?
Step 2 - Design
Once you are sure that your organization is ready to go forward with a sales
lead development process, the next step is to design that strategy.
- Identify the how the four stages of enterprise prospecting will fit in
your sales cycle.
- Identify the individuals within your organization that will be
responsible for each stage. If you decide to outsource your prospecting
functions, identify the individuals within your organization that will
coordinate with the 3rd party agency, set targets, and monitor results.
- Train your staff in the appropriate processes and design good call
scripts.
- Design your system to track all the data. Your system could include
anything from a simple sales database to an updated CRM, depending on the
scale and complexity of your organization and sales processes.
Step 3 ' Implement
Start the prospecting process slowly. There will often be problems when a new
system is implemented, so launching a small-scale project to test out the
systems, the staff, and the process may be a good option for your company. Begin
the process by isolating an initial target group in your list development. Get
your staff members involved in the account profiling process. This will give
them a foundation of knowledge about potential client organizations. Assist your
staff with the development of call scripts and listen to sales calls to assist
your staff with situations they haven't encountered before. Continuously analyse
your reasons for success and failure at each stage to optimise your process.
5. Sales Pipeline Management
Often overlooked in the sales and marketing process, managing your existing
sales pipeline is probably the most effective way of maximising sales.
Generating sales can be a long and complicated process, so avoiding the loss of
sales in your pipeline should be a top priority. In addition, managing existing
sales properly is a very effective way of generating additional sales.
There are many stages of a sale, and knowing what stage in the pipeline each
lead is at will help you reduce sales leakage and manage sales effectively. A
lead will flow through several stages in your sales pipeline:
- Prospecting - The lead is in the basic stage
' target clients are being identified.
- Qualification - The target client is being
assessed.
- Needs Analysis - A detailed analysis of the
client's needs is performed.
- Value Proposition - An initial statement is
made to the client of the basic outline of the product/service and its
suitability.
- Identify Decision Makers - Key decision
makers and internal relationships in the company are identified.
- Perception Analysis - An in-depth analysis
of the potential client, their needs, and how your product might appear to
fit their needs.
- Proposal/Quote ' Full proposal submitted to
the client detailing costs, suitability, ROI, etc.
- Negotiation/Review - Discussion of the
proposal with the client and possible review of terms/prices.
- Closed: Won - Deal is won and contracts are
signed
- Closed: Lost - Deal is not awarded or has
been awarded to another vendor. Reasons for loss should be identified to
enhance future bids
There are several analysis processes that can assist you in managing your
sales pipeline:
- Probability Analysis - A determination of
the probability of the success of a bid based on all the various factors.
The probability should increase as the lead progresses through the pipeline.
- Win / Loss Analysis - All closed leads, lost
& won, should be analysed to identify the reasons for success and failure.
Identification of these reasons helps firm up the future pipeline.
- Lead Conversion Rate Analysis - The rate at
which leads become closed deals give you a good idea on how successful you
are at selling your services/products. What equates to a good rate of closes
will vary depending on your service/product. However, what is important is
to see if your closure rate improves or worsens over time.
6. Outsourcing
If the process of implementing a full enterprise prospecting program seems
too difficult for your company, it is possible that outsourcing the process
might be a solution that works for you. In fact, outsourcing can provide your
company with several benefits:
- You can add resources to your company, rather than using them up.
- You can create instant expertise rather than slowly building it. You
don't have to build a range of core competencies within your own company.
- Third party agencies manage their own staff-turnover and training.
- You can have enterprise prospecting programs ready to go within days of
decision to start.
- You can implement multi-lingual capabilities through a 3rd party agency
to leverage new markets.
- Service-level agreements mean you are guaranteed the results you pay
for.
- You and your company can concentrate on closing sales rather than
sourcing them.
3rd Party Agencies often have other resources such as large corporate
databases, direct marketing services, and website promotion/enhancement services
that you can leverage and further boost your sales pipeline.
While outsourcing can provide your company some valuable benefits, it is
necessary to perform due diligence to ensure that you select the right 3rd party
agency for your business.
- Take your time to assess vendors based on your company's specific needs.
Not all vendors are appropriate for your business.
- If you specialise in the B2B technology sector, so should your agency.
An agency that sells anything from insurance products to household products
will not have the full skill set to sell your products.
- An over-successful project can stretch company resources if you are not
prepared for it. Spending money to generate leads you can't cope with is a
waste of time, money, and a loss of opportunity.
- Even the best outsourcing company cannot help if your product and sales
processes are not up-to-standard. An unsalable product will not sell ' no
matter how good the sales lead process.
- Because you are not hiring in-house personnel, expertise is only
available for the project you pay for. Skills stay with the agency and do
not enhance your core-competencies, unless you request training as part of
the contract with the agency.
Outsourcing your sales lead generation to a 3rd party agency could be an
attractive option for your company, if your company is in the right position to
expand and you select the right agency to match your company's needs.
7. Conclusion
Sales lead generation in any sector, but especially in the IT Sector, is the
critical method of driving revenue, increasing sales, and growing your company.
However, the sales lead generation strategy is only as effective as the
analysis, design, and implementation stages that are undertaken to put the
strategy into action. If you take the time to properly analyse your own company
and products/services, design a solid SLD Process, and implement it on a phased
basis with on-going review, you will be on the right track. If you carefully
manage the process on an ongoing basis, and ensure you have effective sales
pipeline management, then you should see a significant increase in leads being
nurtured and indeed closed sales.
Constant review of the process is essential. A process that works today will
not necessarily work in six months. The market is constantly shifting, and just
as your products and services must evolve, so must your sales process. You must
manage all partners in the process (marketing, account profiling, etc.). If
carefully managed, your sales lead generation strategy will be a key part of
your recipe for success.
Enterprise prospecting should be part of an overall integrated
marketing/relationship marketing strategy. There are many facets to the process
of driving sales. Just as direct and targeted sales lead development work can
drive revenue, so can more general marketing efforts. Direct mailing, email
newsletters, website promotion, search engine optimisation, and, where
appropriate, trade shows are all elements of the general marketing process that
should also be explored to get your products and services in front of as many
key decision makers as possible.
8. Glossary
Complex Sales ' A sales process characterized by
factors such as long sales cycles, multiple points of contact, potential
political influences and significant investment on the part of the customer and
the organization making the sale.
Enterprise Prospecting ' A multi-stage process
that allows a company to systematically narrow in on the correct individuals to
speak to in an organisation, and subsequently discern the current or future fit
for their services in the organisations they wish to prospect.
Enterprise Technologies ' Software or systems
that support a function over an entire company, such as accounting, commerce
functions, or production scheduling.
Influencers ' In the sales process, influencers
provide input to the decision makers. Evaluators ' In the sales process,
evaluators may be the end user of the product, and can provide input to the
influencers and recommenders.
Line of Business ' non-IT business functions,
such as customer service department.
Recommenders' In the sales process, recommenders
provide input to the decision makers.
Sales Leakage ' Losing sales from customers who
are already in your sales pipeline.
Technical Contacts ' Contacts within a target
organisation who have the technical expertise required to make an informed
decision, or to influence the decision.
About Technology Sales Leads
Technology Sales Leads is a sales lead generation company operating solely in
the technology sector. TSL operate offices in Ireland and Boston, USA, and
provide technology sales lead generation services worldwide. TSL offer their
services in multiple languages across the entire Technology Sector.
If you would like further information please contact TSL on :
+353 59 913
6700 (Ireland) +44 208 133 1862 (UK) +1 617 753 9100 (USA) or visit
http://www.tslmarketing.co.uk/
Technology Sales Leads
White Paper
Author: Mark Cradock
Technology Sales Leads
mcradock@tsleads.com June 2008
Table of Contents
- Introduction
- Complex Sales
- Enterprise Prospecting Methodologies
- Stage 1 - List Development
- Stage 2 - Account Profiling
- Stage 3 - Sales Lead Generation
- Stage 4 - Lead Nurturing .
- Implementation
- Sales Pipeline Management
- Outsourcing
- Conclusion
- Glossary
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