VCs dream of big growth graphs moving aggressively up and to the right – and in the best of all worlds, straight up like a hockey stick. I have never met a founder for whom this not-too-subtle demand did not terrify because by most business standards it is extremely difficult to achieve.
However, over the last three years we have seen that aggressive growth has not only become possible, it is repeatable. Changes in B-to-B shopping habits and a comprehensive response make it possible. We have seen 600% to 850% ROI on marketing programs and growth to match. But certain conditions must apply and specific tactics must be executed. Here they are:
Product Price Point
The price point of the service or product must be high enough to absorb the ever increasing cost of customer acquisition. In the last decade, the cost of customer acquisition has risen so high that your average sales value (ASV) must be well into the thousands. This can be achieved through bundling hardware with service wrap arounds for example. Or, by finding a way to sell your product or service using a monthly recurring revenue (MRR) model and annual contracts. Under these conditions there is enough revenue to balance the cost of customer acquisition.
Death of a Sales Team
Pre-shopping online – a common practice among consumers – has invaded the B-to-B space. A recent Google/CEB study showed that shoppers are up to 70% through the shopping process by the time they want to speak to someone from your firm. That means that your web site must work very hard for you. It must quickly telegraph your differentiation and attributes. And it also means that the prospect does not want to waste time with a glib salesperson. They have tougher technical questions they need resolved before moving forward. So fire your salesforce and hire a few good sales engineers who can work in pairs with skilled sales closers.
Then hold expectations high. Today the freshness value of a lead expires within hours not days. Your sales team must jump on that lead within 30 minutes — for better success within three minutes. Like a mental-health hotline, some companies create 24/7 on-call schedules, rotating sales engineers to off hours and forwarding calls and emails to mobile phones.
Dig Deeply Into Your Prospects’ Brains
If your firm meets those conditions, then it is worth investing in a comprehensive online presence and lead-generation program to match. We call it a “stra-tactical” approach. The strategy was developed over years of practice but it is otherwise executed tactically....