Business Development 2010Accelerating Success Through Marketing

Webinar Series: 1.0

Presented by Don Neal

December 16, 2009

Good Afternoon & Welcome

• The good news – 20% sales growth in 2010• The bad news – what got you here won’t get

you there• YOU can’t change anyone’s mind

You’ll Like Irrelevance Even Less.

General Eric Shinseki, Chief of Staff US Army

If You Don’t Like Change

The fact Is:

• MSCA STARS have been cool on marketing

• The need for marketing has heated up

Survey Says…

What Grade Would Your Sales Force Give Your Company On Their Marketing

Efforts? A = 1

B = 1

C = 11

D = 5

F = 2

Our Objectives This Afternoon:

1. Get serious – adoption

2. Get ready – plan

3. Get started – take action

Getting The Most From This Webinar Series

• Your role – ambassador, coach, leader• Learn to teach - socialize and sell; give this

presentation• Dedicated notebook; take notes – convert• Ask questions throughout – interact• Lock webinars #2, #3 and #4 in on your

calendar• Get sales involved• Call in Q&A session

Where Is The Growth in 2010?

1. New construction: new / new

2. Switch / move business from a competitor

3. Up-sell / Cross-sell

What %:

1. < 20%

2. 20% - 50%

3. > 50%

Current Customers• 65%+ of sales come from existing satisfied customers

• 100% or more of profits come from 20-30% of those customers

• Customer acquisition is six times more expensive than retention

• A 5% increase in retention can boost profits from 25% to 125%

Survey Says…

What is The Acquisition Cost For a New Customer?

• “Very good question”

• “Not sure”

• “Don’t know”

• “A lot!”

• $500

Customer Loyalty Profit Analysis

Profits from Reduced Operating Costs

Profit from Price Premium

Profit from Increased Purchases

Profit from Referrals

Base Profit

Acquisition Cost

Year of Customer Life0 1 2 3 4 5 6

Survey Says…

65% Don’t Know the Latent / Potential Value Within

Current Accounts!

What’s Holding You Back?

• Measuring the value

Survey Says…

Do you know the ROI for your 2009 sales &

marketing investment?

100% Responded No!

What’s Holding You Back?

• Measuring the value• The appropriate budget

Survey Says…

From 16% to 0.2%

Average 3.78%

What’s Holding You Back?

• Measuring the value• The appropriate budget• Dedicated marketing staff

Survey Says…

From 10% to 100%

Average 20%

What’s Holding You Back?

• Measuring the value• The appropriate budget• Dedicated marketing staff• Marketing database

Survey Says…

50% have segmented their database in the 20% -

60% - 20% tiers

What’s Holding You Back?

• Measuring the value• The appropriate budget• Dedicated marketing staff• Marketing database• A clear plan of action• Confidence and belief

What is Marketing?

A process that creates conditions for a sale to occur…and an on-going relationship to

be cultivated!

Marketing Awareness – Decision Continuum

Cost & Time

Custom

er E

ngagement

& V

alue

Awareness

Interest

Consideration

Trial

Purchase

Loyalty

Survey Says…

5 Most Successful Marketing Activities:

1. Cross-selling existing customers

2. STAR literature

3. Speaking engagements

4. Word of mouth / referrals

5. E-mail / trade shows

Identify the Top 10 Conditions

• Awareness• Leads• Referrals• Cross-sell• Up-sell

Sales Objectives & Metrics

• Profitable revenue growth• 100% share of spending• Revenue / technician• Revenue / profit per location• Revenue / profit per customer• LTV• Sales /acquisition costs• Servicing costs

We Have 3 Basic Lever to Pull

1. Audience

2. Message

3. Media

Who Is Your Audience?

STP

Scoring and Segmentation

• Incorporates monetary value, sales trends and recency into a single score

• Based on core product sales only

Current Value

Scoring and Segmentation

• Scores clustered into three segments:

A = high value

B = moderate value

C = low value

Current Value by Segment

Scoring and Segmentation

• Based on performance of site versus peer group of similar sites Underperforming peers = higher potential

• Potential value score is a surrogate for information to be gathered directly from customers over time

Potential Value Scoring Process

Scoring and SegmentationThe Customer Database

Customerdatabase(64, 831)

A1 A2 A3

B3B2B1

C1 C2 C3

321

PotentialValueScore

Medium

CurrentValueScore

High

Low

A

B

C

Customer Segmentation

Potential Value

Current Value

A1 A2 A3

B1 B2 B3

C1 C2 C3

Customer Segmentation

$6.7 MM$18,527

$2,518

$3.0 MM$8,248

$850

$1.8 MM$4,947

$504

$1.3 MM$667

$2,325

$3.9 MM$1,285

$700

$7.5 MM$1,509

$180

$405K$203

$2,848

$576K$192

$1,309

$2.7 MM$55

$109

Total SalesAve. Sales/SiteAve. Potential/Site

Total SalesAve. Sales/SiteAve. Potential/Site

Total SalesAve. Sales/SiteAve. Potential/Site

Customer Segmentation

B3

C2 C3

Currentprograms

A1 A2 A3

B1 B2

C1

Enhanced,customized programs

Are You Talking To Me?

The Message

Does it stick to the roof of your mind?

Headline

Facts

Anecdotes,Examples &

Case Studies

Bottom Line

Reinforces the message

Creates a picture

Proves a point

Give you control

The Messaging Pyramid

Customer Benefits By Segment

Customized On-Site Audit Program

On-site Training Support

Customized Benefits

Dedicated Customer Care Account Manager

Customized Marketing Training Programs

Trade Show Specific STARS Offers

Ready to Use Customizable Marketing Materials

National Brand Awareness Promotion

C3C3C2C2B3B3C1C1B2B2B1B1A3A3A2A2A1A1

What is Your Media?

The Plumbing

Four Categories of Media

• Paid• Shared• Owned• Earned

What Media Can You Best Leverage?

• Collateral• Signing• Vehicles• Direct mail• Uniforms• Word of mouth• Billboards• The web

Media Effectiveness

Most Effective Influencers

75.20%

57.60%

50.60%

34.40%

27.50%

13.60%

Word of Mouth

Coupons

In-store Promotion

TV/Cable

Newspaper Inserts

Newspaper

Radio

Yellow Pages

Direct Mail

Magazines

Internet Advertising

E-mail Advertising

Billboards

Are You…

• Serious?

• Better prepared?

• Going to get started ?

Next Steps

• Indentify who needs to be sold and on-board• Identify the 2010 sales objectives and allocate

3% to marketing• Assign resources – staff • Segment your customer base• Identify your STARS differentiation• Involve the salesforce• Begin developing your marketing plan

Thank You! don@privateequitymarketing.com

703-915-8421