It bears repeating that despite all the possible permutations of how you can get there, there are only three ways to grow your business:
- Increase the number of customers
- Increase the average transaction size
- Increase the frequency of purchase
In order to be successful, you must align your marketing and sales model to meet one or more of these three objectives. If you can increase all three metrics, you will soon have a world-class operation. And while there are many possible ways to achieve a revenue objective, some organizations (perhaps yours) are not using the best strategy. Each of the possible methods has its plusses and minuses, and the best choice for you is not always the obvious choice. You should not make decisions regarding your marketing and sales model simply based on what your competitors are doing but rather on your unique assets and weaknesses.
When I talk about a sales and marketing model, I am referring to the specific methods and processes that are used to generate revenue. A sales and marketing model can be as simple as a corner lemonade stand, or as complex as Amazon’s e-commerce engine. Major sales models include direct sales, telesales, channel sales, retail sales and ecommerce sales with many hybrid options.
Tough Questions That You Need to Answer
Before considering a new way of doing business, it is helpful to understand your current situation. Begin by asking these questions:
- How did your current marketing and sales model evolve?
- What is your motivation for keeping the status quo?
- Are you doing things out of habit or by deliberate choice?
- Is your sales force earning its keep?
- Are your current channel partners helping or hindering progress?
- Are there any time bombs at your company?
Time bombs are those issues that, if not addressed, could have serious consequences downstream. If you prefer a different analogy, think of time bombs as the potential Achilles tendons of your organization – where you are most vulnerable to atrophy or attack. The Andy Grove statement, “Only the paranoid survive,” certainly applies here. Sometimes, the best time to be paranoid is when you don’t feel that you have to be. Here are a few of the most insidious time bombs:
- Metrics that are way below standards – for example, a high cost of customer acquisition.
- Good products, but a sales team that is stable, comfortable, and very inefficient.
- Channel partners that are leaving you for the competition.
- A prohibitive cost-of-goods.
- Products that are more than one generation behind the competition.
This post was excerpted from the white paper, How to Choose the Best Marketing and Sales Model.