CEOs are spending more on marketing than ever yet not seeing greater results in sales. Why is that? This is because marketing is focused on quantity when it should be focused on something much more important.
If you’re marketing efforts – any and all forms – are producing X number of leads, what would you do to double the number of leads? Well, if you’re like most CEOs and leaders, you would ask your marketing team to double their efforts. Or “double their marketing spending.” If this is your first thought of a solution, you have fallen into the trap of “to get more you must spend more.” Not only is that approach not effective, but it is also quite expensive. Spending more to get more will cost your business a ton of money, support costs, and wasted effort – and all of those eat profit. If you want to double your sales, then you might do what our clients do – they don’t market more, they change how they do their marketing.
Note: If you’re a marketing person reading this, I know you’re thinking this is all about cutting your marketing budget or eliminating your resources. Actually, it’s just the opposite. This content is about how you can achieve more marketing success with your current marketing budget. And, if your CEO tracks your marketing ROI, taking these actions can make you a hero.
To understand how to dramatically increase sales with less marketing, let me reverse engineer the steps starting with the goal in mind. What happens when marketing and sales work together? The combined goal of both functions is to acquire enough new, high-quality clients to meet or exceed the quarterly corporate sales targets on a sustainable basis – quarter after quarter and year after year.
I hope you noticed the operative word (actually it’s a hyphenation) in that last paragraph – “high-quality.” A great business isn’t built by having just ordinary or average clients. Highly successful businesses are created and maintained by having the best clients. A great company is defined and measured by the quality of clients it attracts and keeps. However, don’t make the mistake of thinking a high-quality client is a “big brand” or well-known client. Sometimes, well-known companies make the worst clients.
The quality of a client is defined as one with whom you have a business relationship where those who are using your products or services do what they are supposed to do. A high-quality client understands and executes their roles and responsibilities. They take ownership when they make mistakes. Most clients are the opposite – they blame the vendor. Great clients pay their bills on time, another thing that too many clients don’t do.
To sign great clients, you have to start with great client (prospect) leads. And leads – great leads – must come from effective marketing efforts, and this is where the marketing and sales world falls apart. Too many marketing organizations are not bringing in enough high quality leads – great prospects.
In too many organizations, marketing is consumed, marketing is measured and marketing is rewarded for bringing in a “quantity” – a number – of new leads. I’d estimate 99% of all marketing organizations around the world focus too much on hitting a “lead count.” This is sometimes also called a “lead threshold,” a “lead target,” or a” lead number.” Then, they let the sales organization sort out the bad leads from the good leads. This approach is too late and too wasteful.
This is what you, the CEO, and the marketing and sales teams must do differently. Starting today, you must identify by attributes what makes a “great lead.” What are the qualities, what are the standards, what are the measurements of a high-quality lead? Few organizations have ever taken the time and made the effort to understand and then thoroughly answer those questions. Why? Because it’s mentally challenging – it’s hard to do.
After you have captured or listed the attributes, standards, or measurement of lead quality, then you must rank them in order of importance. For example, a lead-quality attribute for our business has nothing to do with demographics. We measure first and foremost the “level of frustration” our prospect lead is having with their sales growth, revenue production, or profit generation. If they are happy or satisfied, then they are not a high-quality lead for us.
There is one more big step to success in generating more sales from less marketing. What is or has been the source for your highest quality leads? What was the strategy that attracted that high-quality profile? What was the “trigger event” that connected them to your company? This is how you will start scaling your sales using less marketing and stop doing those marketing activities that don’t produce high-quality leads.
Most companies are trying to grow sales by growing the number of leads their marketing efforts are producing. It’s just the opposite of what should be done. Your company and your salespeople don’t need more leads; they need better leads. If you want quality clients, you must start with quality prospects.
If you want to transform your business to where it’s doubling or tripling sales, revenue, and/or profits – without spending more time, money or resources doing it – then contact us today.
Author Background: Kent Billingsley – the Revenue Growth Architect® – is an international keynote speaker, business transformation expert, and recognized authority on scaling sales and revenue acceleration. He has delivered over 10,000 hours of Revenue Growth® content and sessions to thousands of CEOs and business owners in over 36 countries.
Company Overview: The Revenue Growth® Company (TRGC), LLC is a firm based in the Dallas, Texas area and helps companies transform their enterprise into a strategic system for profit and revenue growth. Their proven value proposition is helping companies generate scalable amounts of sales, profit, and revenues without adding headcount, increasing costs, or working more hours. CEOs and companies in their programs have generated over $1B in new sales, revenue, and profits.
TRGC works with start-ups, medium size, and large corporations by delivering Revenue Growth®, RAMP®, P.E.R.F.E.C.T. Selling®, 3X Sales Transformation®, and Monetizing Value® content, workshops, keynote speeches, and high-intensity year-long programs.