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Is depending on sales people a sure bet to hit sales targets?

Posted by Teicko Huber on Tue, Dec 21, 2010 @ 12:29 PM
  
  
  
  
  

Is the move to double the salesforce the right way to solve a marketing problem?

In the Minneapolis/St. Paul Business Journal, a local medical company has a first page article with the headline boasting how they are doubling sales staff for a rebound. Within two paragraphs my worst nightmare comes true, they use the dreaded nine letter word when talking about sales people, MARKETING. "The new hires will focus on marketing..."

Following, I break down why this decision is less than ideal.

3 Reasons Why Using Sales People to Solve a Marketing Problem is a Bad Idea 

1. It's way too expensive (Topgrading, HBR)

Look at the 30 new hires through this lens:

Of all these news hires:

  • less than 15 will most likely make quota
  • 22 will not prospect for new opportunities
  • 14 won't be able to close
  • 9 out of 10 sales/marketing calls won't result in new business
  • 9 months is the time they will need to carry the sales team before they start to produce results
2. It's the least effective way to solve a marketing problem

If you go directly to this company’s website it's a nice site, but the company is nowhere to be found when you actually query the types of problems most people are searching for that this company could solve. The volume of queries for the top twenty long tail keywords for problems they solve is north of 1,000,000,000. And to convert a fraction of that traffic it would be cheaper to hire an entire inbound marketing firm than a single salesperson. In fact, most inbound marketing firms could be retained for less than the cost of one sales person. In turn, the sales ready leads could be fed to the top performers.

3. It’s not aligned with how buyers are making purchase decisions

A better share of the buying process is completed online before ever speaking to a sales person. This being the case, this company should be working to create demand instead of unleashing a pack of sales people. Buyers no longer systematically chip away at which brand they would like to buy. Instead, most buyers engage in channels outside the control of the business. Yet, when you evaluate this company’s online marketing mix, they have little to no presence online aside from a brochure-like website.

Some Things to Noodle:

  1. What would this company have to lose if they tried a less traditional approach to solving sales problems?
  2. Are their potential customers sitting back waiting for a sales person to call, or are they most likely doing confidential research to find the answers to their questions?
  3. What if the company hired in a 1:1 ratio of marketing vs. sales?

We'd love to hear how you might solve this problem.


aligning sales and marketing

LET'S FACE IT...Like cars, social media, googling and all that jazz has made selling and marketing a pain in the butt. If you want advice for getting more out of your revenue hot rod you're in the right spot.

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COMMENTS

Great post. I think as a field rep we constantly question whether our efforts of pounding the pavement can be better spent with more research in effective marketing, inbound or outbound. SOLVING the problem really depends upon the company talent, network and resources (both human and financial).

posted @ Tuesday, December 21, 2010 1:57 PM by Josh


@ Josh, thanks for the insightful comments. I think you hit on something key about building your network. I might add to your comment and say it's really about you create demand and make it as easy as possible for potential customers to connect and become a part of our network.

posted @ Wednesday, December 22, 2010 7:09 AM by Teicko Huber


Well presented, the sales industry (like all the others) is reshaping its focus.  
 
Having been in corporate America for 14 years, I wonder how long it will take for it to mesh with inbound marketing (at the 500 level)? Yes, I see your paving the way for the rest of us. Keep up the great work! 
 
Regards,

posted @ Saturday, February 05, 2011 7:17 PM by Doug Sherwood


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