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No to Yes Dramatically Improve Sample Conversion Rates with Two Best Practices

Two Best Practices to Dramatically Improve Sample Conversion Rates

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No to YesDramatically Improve Sample Conversion Rates with Two Best Practices

© 2014 Primary Intelligence Inc.No to Yes: Dramatically Improve Conversion Rates • Page 2

You Lost the Deal – Now What?Imagine that you’ve just learned that a prospect has elected to go with the competitions solution instead of

yours. Your sales team did everything they could to understand the prospect’s needs and build the relation-

ship. Your product managers and marketing executives provided excellent support as well as thorough well-

thought out responses to all the prospects product-related questions. The demonstration of your solution

went exceptionally well. Management was actively following the opportunity, and everyone thought you

were going to win. The deal was an important one because of who the prospect was, or the absolute size of

the deal, or the industry the prospect was in, or a combination of these things.

Now everyone wants to know why you lost.

You’ve been tasked with calling the decision makers to find out exactly what happened and learn everything

you can about why they chose the competition. You spend the next three weeks leaving messages, but they

don’t call you back, or you catch them live on the phone, but they don’t have time to answer your questions.

Now what?

© 2014 Primary Intelligence Inc.No to Yes: Dramatically Improve Conversion Rates • Page 3

Sample Conversion Rates – Not for the Faint of HeartPerforming win loss analysis research can be a challenge under the best of circumstances. One of the con-

stant challenges is maximizing response rates or participation rates. That challenge is even greater in this

type of market research because sample is limited and you only have a finite number of competitive wins

and losses you can study. If we aren’t able to get them to participate, it is a missed learning opportunity that

we can’t necessarily duplicate.

The question becomes, How can we increase our response rates?

At Primary Intelligence, we spend a lot of time and resources addressing this very question. I know two best

practices you can implement today to dramatically increase your response rates.

{

Sample/ˈsampəl/One or more recent decision makers who

will be contacted for a win loss analysis

interview.

These buyers represent a “sample” of your

total “population”, which is all the buyers

you interact with.

Conversion Rates/kənˈvərZHən rāt/The number of buyers you complete an

interview with, also known as a response

rate. {

© 2014 Primary Intelligence Inc.No to Yes: Dramatically Improve Conversion Rates • Page 4

Best Practice One: Introduction NoteThere are quite a few things we do to increase participation rates for our customers, but one of the most im-

portant practices is to create and utilize what we call introduction notes. These are notes that introduce why

you want to talk to the decision maker and what you are hoping to accomplish.

The introduction note really helps remove the surprise attack feeling that decision makers can get when

you are cold calling them to do a debrief of their purchase decision. Cold calling a decision maker is a lot like

the solicitor that knocks on your door. You open the door expecting someone you know and instead get a

complete stranger that wants to wash your windows or aerate your lawn. Surprising a decision maker is a

sure way to kill response rates for your win loss analysis program.

{Warm Hand-OffSurprising a decision maker is a sure way

to kill response rates for your win loss

analysis program. An introduction note

takes away the surprise. {

© 2014 Primary Intelligence Inc.No to Yes: Dramatically Improve Conversion Rates • Page 5

What should the note include?There are five key elements to include in the introduction note that you will send on behalf of an executive,

the sales representative, or yourself:

Even though there are a lot of elements you need to include, it is important that you keep your note brief

and to the point. For these notes, straightforward information and a simple request will be your most persua-

sive argument.

Who should send the note?While the content of the note is very important, who the note ultimately comes from can be even more

important than the words you use.

There are three potential options when it comes to deciding who the introduction note will come from:

To successfully implement this practice, you will need to choose which of these three options will work best

for your situation and then create two introduction note templates one for your wins and one for your losses.

If you analyze your no decision deals (deals where no vendor was selected), you will want a different intro-

duction note for that as well.

{

Sample Introduction Note TemplatesOver the years, Primary Intelligence has

spent a lot of time and effort in creating

notes that will elicit the kind of response

we need to be successful. If you would like

a template for one of these introduction

note types, send me an e-mail with the

template you are interested in and I’ll send

you a sample of what were currently using

to help move you along with this best

practice.

[email protected] {Note Checklist1. Introduce the executive, the sales rep, or yourself at the beginning

of the note2. Introduce the purpose of the research—to understand how you

can improve3. Ask them to be candid and forthcoming—we learn the most from

our mistakes4. Identify the amount of time you’ll need for the interview—be

specific and honest here5. Let them know when someone will call to schedule the interview

1. From a key executive (higher the better, with CEO being best)2. From the sales representative responsible for the deal3. From you

© 2014 Primary Intelligence Inc.No to Yes: Dramatically Improve Conversion Rates • Page 6

Introduction Note from Key ExecutiveThis is your best option for improving participation rates. You can send the e-mail on behalf of the execu-

tive, but you will want the executive to understand what you’re doing and have him or her sign off on the

process as they could get replies from decision makers and they will need to be in a position to respond to

those replies. C-level executive sponsorship will do wonders for increasing response rates, with the CEO be-

ing the best possible option.

This approach is easiest if you have a direct executive sponsor. You will be sending the e-mail on behalf

of the executive you ultimately get to sponsor your efforts. This way, you have complete control over the

process and your efforts won’t be held up by the executive’s busy schedule.

When you have an executive sponsor, you will want to emphasize to respondents that they can reach out

to the executive if they have any questions or concerns. Make sure your executive is prepared for this situa-

tion, as it can really have a positive impact on decision makers when they see your company’s commitment

to them and improving your solution to meet their needs.

Introduction Note from Responsible Sales RepresentativeIf you can’t get an executive sponsor, the next best solution is to involve sales in the win loss analysis process.

An important distinction here is that the sales rep responsible for the deal should not be doing the interview

with decision makers. Decision makers will filter out information they perceive to be negative if the sales

representative is the one doing the interview with them.

In order to get sales support, you will likely have to overcome some natural anxiety that the sales repre-

sentative will have with you contacting the people they were selling to. You will want to reinforce that this

process is to identify areas for improvement to help them sell more and not a witch hunt. Don’t be too hard

on your sales reps. Imagine how you would feel if someone said they were going to come in and analyze

how you were doing your job. It’s natural for them to feel some discomfort, but once they see the results of

your efforts and how you intend to leverage those results, this discomfort and anxiety should fade away.

You will want to send the e-mail on behalf of the sales representative so that you can control the process,

although we have quite a few customers that have their sales representatives send the introduction notes

directly. A sales representative introduction note differs in a few ways from an executive introduction note.

You will want to add the following elements to your sales introduction notes:

1. Reinforce that you are not trying to re-engage the sales process (applies to losses and no decisions).

2. Make the debrief request a personal request on behalf of the sales rep. Leverage the relationship the

sales person has with them.

© 2014 Primary Intelligence Inc.No to Yes: Dramatically Improve Conversion Rates • Page 7

Introduction Note from YouIf you are utilizing this method it means that you weren’t able to get executive sponsorship or sales

support in your efforts to review why you are winning and losing. The most important thing to remember

about introduction notes that are coming from you is that you are letting the decision maker know why you

want to talk to them and removing that surprise element. Practicing this will improve your response rates,

but your real goal is to upgrade your program to the executive-level introduction notes or the sales repre-

sentative introduction notes.

No executive sponsorship for your win loss program?Don’t worry, you can overcome this lack of sponsorship and sales support by pressing forward and gathering

actionable data that you can share with both executives and sales. Utilize the data to accomplish your objec-

tives, but don’t be selfish with it. Share the data with everyone you think could benefit from it, including the

CEO (trust me, these guys are ALWAYS interested in why you are winning and losing), product management,

product marketing, sales support, sales management, marketing, and sales representatives. In our experi-

ence, it only takes sharing a couple of reviewed opportunities (especially losses) before both executives and

sales will recognize the value of the intelligence and get on board with the program. However, this can’t

happen if you aren’t sharing the data. I’ve seen too many cases where this valuable intelligence isn’t shared

across the organization.

Next: Best Practice Two: Minimize Factors that Deflate Conversion Rates6

{

No executive sponsorship?Share the data with everyone you think

could benefit from it, including the

CEO (trust me, these guys are ALWAYS

interested in why you are winning

and losing), product management,

product marketing, sales support, sales

management, marketing, and sales

representatives. {

© 2014 Primary Intelligence Inc.No to Yes: Dramatically Improve Conversion Rates • Page 8

Best Practice Two: Minimize Factors that Deflate Conversion RatesIn some cases, a poor conversion rate may be a result of picking the wrong sample set to begin with.

Deal SizeThis is probably the single biggest factor we have seen that impacts win loss analysis response rates. The

larger the opportunity size the greater the participation rates you can expect. Our experience shows that as

deal sizes grow north of $1M you should experience response rates for wins of close to 100%. For losses we

find nearly the same response rate, but you will get the occasional buyer(s) that indicates they won’t partici-

pate. For deal sizes less than $100K, we find that response rates definitely drop. We would expect participa-

tion rates of at least 30 to 50% for your wins and 20 to 40% for your losses (these are “baseline” participation

rates as implementing certain best practices can dramatically improve these rates).

{Deal SizeThe larger the opportunity size, the greater

the participation rates you can expect.{

© 2014 Primary Intelligence Inc.No to Yes: Dramatically Improve Conversion Rates • Page 9

Nature of the EvaluationAnother factor that negatively impact your response rates are whether or not a true evaluation occurred (e.g.

non-competitive renewal) and if you were seriously considered as a finalist. In addition, if your product is

perceived as a commodity versus a differentiated solution, you will see your response rates suffer.

Evaluation Length and DateIf the evaluation took place more than six to 12 months ago, the buyer will not only be less willing to

participate, but will have a hard time remember specific details about the engagement. Ideally, interviews

should be conducted as soon after the purchase as possible, which can be done effectively if the sales

group positions the interview process as the final part of their sales engagement with the buyer, and

there is a proper process in place for submitting the details of the opportunity with the team conducting

the win loss program.

The evaluation length can also influence response rates because buyers are more willing to take the

time to provide feedback when the sales team has spent a significant amount of time working on the deal,

regardless of the outcome. Typically, sales cycles that run between three months to a year have a higher

response rate than evaluations that took only a few weeks. This also relates to the nature of the evaluation

mentioned above, because the more complex the product or evaluation process, the longer it takes to close.

MessagingThree key areas of communication need to be addressed in order to enable higher participation rates. First,

as mentioned above, having sales leadership and reps on board with the process can make a big difference

in your response rates as they can help in scheduling the interview and communicating with the buyer that

a win or loss review will be done—setting expectations when they first start engaging with prospects that

an interview will be conducted, regardless of the outcome.

Second, it is important to properly communicate your intent and the purpose of the interview with the

buyers. If buyers feel the information will be used to improve your products, services, and relationships, they

will be significantly more likely to participate.

Finally, once you have support from sales and your messaging is in order, how you approach the buy-

ers to schedule an interview can be just as crucial. It is important to have a consistent, professional, and

established method of contact. Make sure your approach includes proper follow-up and determines when a

contact should no longer be approached about participating.

{

Evaluation Length and DateIf the evaluation took place more than six

to 12 months ago, the buyer will not only

be less willing to participate, but will have

a hard time remember specific details

about the engagement. {

© 2014 Primary Intelligence Inc.No to Yes: Dramatically Improve Conversion Rates • Page 10

GeographyWe have found that you can be successful around the world performing win loss interviews, but your

response rates will definitely suffer in the Asia-Pac area, given cultural preferences for not disclosing sensi-

tive information or speaking to people without a formal introduction. Cut your expected response rates in

half for this area of the world. If the person speaks English, they may be more likely to do the interview, but

you can’t really rely on this. Other areas of the world are generally similar to North America with a few minor

exceptions (Spain, Italy and sometimes France can be difficult).

Conducting interviews with the use of a translator can be more cumbersome and will typically take lon-

ger, but this is a good option for buyers that feel they could best express their answers in their native tongue.

TitlesThe title of the buyer can impact response rates as well. The higher up the executive ladder you go the

tougher it becomes to secure an interview and the more important your approach and messaging become.

It also becomes increasingly important to schedule your interviews, rather than rely on catching the buyer

and conducting an interview “on the fly.”

Don’t, however, assume response rates will always be lower with C-level executives. Buyers much lower

in the corporate ladder may also be unwilling to participate because they are unfamiliar with debriefing

processes, and so deserve equal attention when you are creating the messaging.

Roles can also have an impact on participation rates. Buyers in an IT role, for example, are typically more

willing to provide feedback than buyers in the healthcare space, simply by nature of the fact that healthcare

buyers are typically not working at a desk or are less accessible by phone.

The title or role of the person doing the interview can also influence participation rates. For example,

sales should never be the ones actually conducting the win or loss interview. In fact, you’ll see response rates

go down and misinformation go up if you have sales performing win loss analysis interviews. If you’re not

having an objective third party do your loss interviews, you’ll want to make sure that you communicate very

clearly that you will not be attempting to “re-sell” the buyer, otherwise your loss response rates will suffer.

IndustryThe buyer’s industry could also impact response rates, given that in some areas—financial services, for ex-

ample—transparency in the buying process is not as customary as other segments, such as manufacturing.

Response rates will be pretty similar across the public and private sectors with the exception being when

state law or policy prevents the buyer from doing the interview. In our experience, however, the majority of

public sector entities are able to participate.

{

Sales People Shouldn’t InterviewSales should never be the ones actually

conducting the win or loss interview.

In fact, you’ll see response rates go

down and misinformation go up if you

have sales performing win loss analysis

interviews. {

© 2014 Primary Intelligence Inc.No to Yes: Dramatically Improve Conversion Rates • Page 11

Survey FatigueHave you or others in your company been hitting the same group of buyers up for surveys or other research

initiatives in the recent past? If so, this will drastically reduce the probability of them agreeing to do an inter-

view with you.

The length of the interview you are requesting is also a consideration. In our experience, most buyers are

willing to commit to about 30 minutes on the phone, and around 15 minutes with an online survey. Buyers

with strong opinions or for complex sales processes will usually agree to more time once you reach 30 minutes,

but others tend to grow weary of questions and stop providing meaningful information.

Next: Best Practices in Action6

{

Survey FatigueIn our experience, most buyers are willing

to commit to about 30 minutes on the

phone, and around 15 minutes with an

online survey. {

© 2014 Primary Intelligence Inc.No to Yes: Dramatically Improve Conversion Rates • Page 12

Best Practices in ActionA client in the financial services industry was looking to reach out to US-based C-level decision makers primarily in

the technology, manufacturing, and healthcare space. The telephone interviews ranged from 20 to 30 minutes.

The client established qualification criteria for the program, requiring deals to be competitive (as defined by

the sales rep in their CRM tool), more than $100k (usually averaged $250k), and have a decision date between

30 to 90 days ago. On average, the client’s sales cycle lasted two months and was for a differentiated service.

Prior to submitting opportunities to Primary Intelligence, the client’s marketing and competitive intel-

ligence teams sent an email to the buyer explaining that the interview was intended to improve on the

company’s sales efforts and product offerings. Buyers were called daily for four to five weeks, with a voice

mail and email sent only once a week. After the interview was conducted, the client sent a follow-up thank

you message to the buyer.

The client is currently enjoying an 84% participation rate and the buyers that do decline to participate are

most frequently citing time constraints as the reason.

On the other end of the spectrum, another client refused to acknowledge the key factors identified above

and declined to implement the recommended best practices resulting in a win loss program with participa-

tion rates that were less than 10%.

About the Author Ken Allred, Founder and CEO of Pri-

mary Intelligence, is a thought leader

in SaaS-based sales intelligence, ana-

lytics and sales enablement solutions.

He is committed to the optimization

of sales, marketing, and product

management teams through the implementation of

advanced Sales 2.0 intelligence solutions.

© 2014 Primary Intelligence Inc.No to Yes: Dramatically Improve Conversion Rates • Page 13

Cheat Sheet for Improving Conversion Rates Best Practice One: Introduction Note

Send an introduction note to every contact prior to scheduling.

Key Elements For Best Conversion RateContent of the note Include the following in the note:

1. Introduce executive, sales rep, or yourself

2. Introduce purpose of the program

3. Ask for honest feedback

4. Identify length of interview or survey

5. Indicate the next steps

Sender of the note Send from one of the following:

Key Executive (best option)

Sales Representative (good option)

Project Coordinator (okay option)

Best Practice Two: Minimize Factors that Deflate Conversion RatesUnderstand the demographics of your sample set.

Key Elements For Best Conversion RateDeal Size Select deals with larger values

Nature of the Evaluation Select deals where a full evaluation process occurred and you were a finalist

Evaluation Length and Date Select deals with evaluations within the past 6 months

Messaging Alert buyers about the program during the sales process

Communicate the intent of the program

Provide consistent and professional communication

Geography Align messaging with cultural norms

Adjust conversion rate expectations according to target locations

Provide translation services when needed

Industry Understand disclosure norms in the target industries

Survey Fatigue Limit the number of requests for research or feedback from buyers and customers

Set a reasonable interview (30 minutes) or survey length (15 minutes)