Magnus Marketing Blog

Another post popped up on the AMA board from a marketing person who was seeking ways to market technology. I of course have a mouthful to say, but wanted to see what the others on the board would respond.

Here is one response:
am currently working with a client with a similar business model (VPN, end-to-end VoIP, etc.) We recently conducted a focus group ranging from SMB through Enterprise of IT Directors and execs. We found that they preferred to be reached via email or phone - not DM. That said, they also prefer you know "something" about them and their current networks and/or needs prior to contact. If you're budget allows, I would highly recommend using Harte-Hanks (http://www.harte-hanks.com). They focus on the IT industry, can provide very specific databases you can utilize in your campaigns AND have a call center to execute calling campaigns. If you're integrating: Start with an email introduction via email (if you have permissions) with a follow up call from a call center (or sales) to invite to a webinar. Standard follow up tactics like inviting them to monthly eNewsletters are also helpful. They (your target audience) will most likely keep your emails, info, etc. on hand until there is a definite need - a good start to a multi-touch/integrated marketing focus.

I wonder how much money the client paid to do a survey to tell them stuff most tech marketers already know? Further:
1. Harte-Hanks is a great resource, but massively expensive like thousands of dollars expensive just for the database. The callers are the same $10/hr people - I see their resumes on the employment boards a lot.
2. You do not need permission to contact someone via email, only to continue the emailing.
3. A webinar is only good if you have something demonstrable to show, otherwise it is best to do a needs assessment or set up a meeting with the techie and sales rep.
4. This is too simplistic, it is not likely that someone will keep your stuff and then just call you when there is a need - you need to create a process to contact them until there is a need. Newsletters are boring unless they provide VALUE.

We recently conducted a focus group ranging from SMB through Enterprise of IT Directors and execs. We found that they preferred to be reached via email or phone - not DM. That said, they also prefer you know "something" about them and their current networks and/or needs prior to contact.

She never answered the question of you need to know something about them - what those executives meant was not just the technology infrastructure, but the business need also. This folks is the sales intelligence piece which is only discovered through smart researching.

Nuff' said.

Telemarketing in b-to-b is having a resurgence of interest whether the results are worth it or not is questionable.

A few firms are starting to post competitive rates. The lower end of the spectrum which consists of the $8 - $10/hr telemarketing crowd and specialize in "dialing for dollars" seem to run $20/hr - $40/hr. The lower the rate the more likely the call center is located in India or the Philippenes. The average range is $40 - $100/hr, some have set-up charges. Many of these firms have more educated folks, but still rely on the script and list (which lists are purchased extra).

For some businesses, especially b-to-c, these type of firms are definitely worth it or if the goal is generating awareness or taking a broad sweep for low-hanging fruit engaging a "dialing for dollars" or "phone banging firm" is worth it. I managed a few relationships over the years with outsourced firms - the results were OK. I would not give strategic assignments, enterprise solutions, or bigger product/service deals to a call center. As long as your objective is defined and expectations are set accordingly, then this can work.

The statistics say that an average outsourced firm will generate a 5% return, slightly higher than direct mail at 3%, or the 1% overall. I like what someone had written: 25% is the message, 25% is the service, 25% is the person on the phone - the rest is other things. These components define success. It is important that you work with a firm that understands your business and industry.

For technology companies and certain commodity industries, the account-based approach or research-based approach is more effective because a key success factor in building a relationship with a decision-maker is knowledge of the business. Knowledge is not demonstrated by reading a script folks, as I have discussed in earlier posts.

If you want to build a relationship and establish a long-term account, phone banging is not the right tactic. The metaphor is in dating where the guy at the bar with the slicked back hair approached every good looking female with the same old pickup line...eventually some desperado will give him the time of day and maybe some fun. If you want quality - ignore the guy, hang out at church, and be genuine in your interest and approach! The latter is true business development.

Recently, I took my company to market meaning that I am now actively seeking new business from unknown customers in a more mass way. I am using a combination of RTD methodology and outright telemarketing which is scripted. In fact, the results have been 20X better through RTD than calling down a script. Remember, I did say telemarketing is good for broad awareness generation and low hanging fruit - so I am not being hypocritical. My biz dev guy is doing a great job, he is not a 10/hr guy either and knows the company very well!

Here is a story with some lessons I learned. I get a meeting/appointment with the CEO of a technology firm to discuss prospecting services. She meets with myself and my biz dev guy. It was made clear that my biz dev guy, who is more the appointment setter/rote type, will be handling her job. My role is oversight, messaging, coaching, and client liasion. She explained that the firm (a 20 year old company) is offering Managed Services locally and she is going to market with this new service. There is a full-time telemarketer who has worked there 5 years, but whose performance is dwindling - on a good month she may set two appointments. She wanted to meet with us because the outsourced firm she used which had $8/hr telemarketers did OK, but didn't meet her expectations. She wanted 10 qualified appointments per month for this new service. Her close rate was 30% for new business (very low for a salesperson). She did very little to no marketing. I explained that my biz dev guy would do the work, we would shoot for 10 appointments, but it would take time to ramp up to that (learn the market, perfect messaging, understand market needs, and competitive info analysis). She says great, give me a proposal and references.

I hear nothing from her for two weeks and call after I learn she spoke to references. She says the following: "I called your references who had nothing but wonderful things to say about you - you are a great person, smart, super at research....but you don't get appointments. You aren't as great as you say you are, you don't close, you push it off to the next person (sales) to handle it. When I asked how many appointments you set in a month - the answer was not good. I need to think about this more...". I was shocked! I am not as great as I say I am and don't get appointments? What the hell do you call faciliating a con-call with the VP of HR at IBM and my client? Or getting a multi-billion dollar reseller to talk to the sales rep of another firm which resulted in a facility tour? I have averaged about 1 Fortune 1000 contract/meeting a month, not including call backs from names that circulate in the industry! AND, I help DRIVE the marketing strategy for my clients!

I checked with my references as to where she would get that unfounded and ridulous impression. One said - I told her that you don't CLOSE business - don't do SALES, but transfer the opportunity to the salesperson or myself. Maybe she heard that. Both were incredulous.

I wanted to say, lady - the fact I make only a few calls to senior executives at Fortune level accounts and get callbacks, meetings, RFP's, etc. is nothing short of outstanding in today's competitive market. You also need to look at the industries I am operating in and for whom I work, success goals differ. A job can be secured without the benefit of a meeting.

The net was all she cared about was getting 10 qualified appointments and expected this to happen right away. Her inside telemarketer couldn't do it, she evidently doesn't make any calls, and her outsourced firm couldn't do it. Her database is stale, her messaging is probably irrelevant, and lord, if she talks to prospects and clients the way she did me - who knows how much business she lost! I guarantee that whomever she does work with will produce similiar results. She will find herself running to appointments that are merely that - nonessential, booked by a $10/hr person compensated on quantity. Let me tell you what would need to happen on a quantity basis: a telemarketer would have to make in excess of 80 - 100 calls per day or 500 calls a week for 3 months to get 10 appointments on average using a script and a good list.

If I wasn't producing for my clients, the relationships would have ended months ago. If I didn't "close" appointments, then why was she one of three meetings I had in week for my business? One was for another firm that...yes, was offering managed services! Actually, I had done coaching and calls for a $250+million reseller for Managed Services and even oversaw the effort for a short while - a meeting happened with the CIO of a very well known company.

Folks - it is not about QUANTITY OF APPOINTMENTS. Quality. I may have been able to get 2 or 3 qualified meetings in a month or so, maybe more - that could be worth $150K+ per year or more annually. The deliverable - the right messaging, list, customer profile, and strategy to repeat the process.

I wish her success regardless of whether she does work with us or not. Somewhere out there are the clients that will get what I do and how I do it. I look forward to working with them!

A client I work with has an old school sales guy. Every freaking week when we go over the report, he cries about metrics, metrics, metrics. His boss, who is a friend of mine, explained the metrics and said that it is important to him - but what is more critical is the LEADS.

Folks, when are we going to drop the number of calls made, connects, hours? Can we do this? It adds a lot of complexity to a really simple process. You pay me X for Y hours and I deliver Z leads. More importantly, of the Z leads I gave to you - how many were closed and if not closed, why weren't they closed. That is all anyone should care about. Cost of conversion the X Pay for Y Hours for leads. Many phone companies have flat monthly fees now don't they?

The reporter of CRN talked about how a reseller will win more business by pounding the phone more. Oh is he WRONG. Lets say I have a $10 hr person reading a script who makes 120 calls per day, of those 120 calls - he may connect with two people and get some interest. Chances are those two people are in the market, have been looking, and welcome the information. If the information is generically presented, you just helped these people complete their search - right, they can go to ANY vendor now....and the two people maybe will move to a meeting, maybe not.

Take my methodology. I research companies, find the best targets, craft a strong email, and then call. Maybe I make 10 calls a day, but I connect or get a response back from 6. The six are at the decision-maker level. I am shortlisted because I was compelling about my business which I know well and my well-above $10 hr professional prospecting agents can talk off script and intelligently about the industry. I get 3 meetings of the six. Did I bang the phone more? No.

Quality over quantity. I bet over time, more cost is dispensed in pounding the phone versus methodical intelligent prospecting.

Funny note: A telemarketing company prominently states that they do quality lead generation, real emphasis on quality. The website has no less than 5 spelling errors. Quality?

Let us can the old concepts of pounding the phone, connects, dials, and voicemails and concentrate on success factors like target messaging, lead definition, lead process, and closed business. In the end, the only thing that matters is results. Measurable, tangible, results.

Oh my. Yet another posting on the AMA board raises my concern about the professionalism of marketers. Once again, a marketing consultant who is likely charging in excess of $150 - $200/hr asks of the group I am representing some company, person, or widget - please advise me on how I can take this fillintheblank to market.

The problem is two-fold, one on the part of the client who assumes the marketing professional actually understands his capabilities, market, and business issues. The other is on the marketing professional who assumes the same. Unless you are proven to quickly learn and adapt to different businesses, products, or situations, do not represent people or things that you need to ask the AMA advice on how to market.

In order for marketing to be linked appropriately to sales, since marketing activities are the warm-up for the salesguy to go in and close, marketing needs to smartly position and pave the way for the salesguy to move forward. In fact, I believe good marketing starts with understanding the closing process. Track back from a customer at the time of close and follow backward the interest points and activities that kept him intrigued. How this process occurs can drive many of the tactics that push forward the sale.

To think that "marketing is marketing" is wrong in today's environment. You know, my company tries very hard to link pay to performance with payment linked to closed business. I'd like to see more marketers put their capability on the line and do the same, maybe then we would see more intelligent questions on the AMA Marketing Boards and less pleas from people to play second chair.