LTW Sales Funnel - Final

Lead to Win
“Opportunity Development – Making and Managing Sales”

August 26th , 2009
Stephen Davies and Serge Lafontaine
Lead to Win
Agenda
Overview
Find first customers most willing to buy from you
Adapt the funnel to sell to first customers you target
Map funnel information to cash flows
Exercise #1 and #2
Sales and product marketing techniques to maximize funnel value
Exercise #3 and #4
BREAK
Use the Internet to sell
Participants Open Discussion
Summary / Tasks Post Phase 2
Slide 2 Lead to Win

Agenda/Timeline
Overview
Exercise #1 and #2
8:45
Sales and product marketing techniques to maximize funnel
value
9:45 Exercise #3 and #4
10:15 BREAK

12:00
Slide 3 Lead to Win

Agenda
Overview
Exercise #1 and #2
value
Exercise #3 and #4
BREAK
Slide 4 Lead to Win

Overview
• Upon completion,
– You will know about
• What a sales funnel is
• Linking sales to cash flows
• What internet marketing techniques are out there
– You will know how to

• Categorize and prioritize customers
• Build a funnel for your organization
• Map sales to your cash flows
• Identify appropriate internet marketing techniques for your
organization
Slide 5 Lead to Win

Overview
• What this course is

– How to setup and manage sales
– How to link sales with marketing
• What this course is NOT
– How to sell
– How to market (detail)
• Terminology that is assumed
– Inside/outside sales
– Distribution channel
– Direct/indirect sales
– Others
Slide 6 Lead to Win

Agenda
Overview
Exercise #1 and #2
value
Exercise #3 and #4
BREAK
Slide 7 Lead to Win

Slide 8 Lead to Win

Customer Demand:
Need: The desire for a product or service

Demand: The ability to pay for a product or service
Demand
Demand is
is the
the desire
desire and
and ability
ability to
to buy
buy aa product
product or
or
service.
service.
Slide 9 Lead to Win

Characteristic Comments
• “A” Customers
– ‘Bring me a proposal I can sign.’
• “B” Customers
– ‘I like the product, but I need to do more research before I can decide.’
• “C” Customers
– ‘Yes, we have that problem, but I don’t know what to do about it. We get
by. How does your product relate to our situation?’
• “D” Customers
– ‘We have no problems like that in our organization.’
Slide 10 Lead to Win

Characteristic Comments - Strategies

• When talking to potential customers you need to ask the questions that allow
you to prioritize.
• You need strategies to move potential customers up the chain
– “A” Customers
• great, can you please provide me a reference
– “B” Customers
• here are links to impartial research to help you decide
• here is a list of references that will tell you what you need to know
– “C” Customers
• I will get you in contact with a technical person to discuss with you in detail
– “D” Customers
• Nice to talk to you, will contact you back in a year

Communication
• Close “A” customers. Get them to buy your product.
• Convince “B” customers: Provide them with additional
information to make a decision, and reinforce your company as

the best choice (share of mind)
• Coach “C” and “D” customers and use public presence as a
means to gain credibility with them—and access to them.

Customer Types and Technology Strategy

• Technology disruptions encounter “C” and “D” customers
– Longer sales cycles
– More subject matter expertise marketing
– Evangelical sales model
• Technology increments encounter “A” and “B” customers
– Shorter or immediate sales
– More product level marketing
– Direct sales model
Most
Most startups
startups tend
tend to
to be
be technology
technology disruptions.
disruptions.

Increasing the probability of engaging customers

• To target and engage higher probability customers you need to
identify the few key values from your product offering
• You also need to release your product at the appropriate level in
the marketplace




Agenda
Overview
Exercise #1 and #2
value
Exercise #3 and #4
BREAK

Source: Wikipedia
How does it work

• We take a generic, or organization specific list of stages and assign
probabilities to each stage.
• The probability represents the likelihood that the customer will move
to the next stage of the pipe
• New Opportunity (5%)
• Initial Communication (10%)
• Fact Finding (25%)
• Develop Solution (40%)
• Propose Solution (60%)
• Solution Evaluation (75%)
• Negotiation (85%)
• Contracts (95%)
• Closed won (100%)

Lead Yield Funnel Stage

30 “Raw” Confidence of Day 1
Winning 10%
20% Day 22
45% Day 44
60% Day 94
80% Day 160
90% Day 180
1 Won 100% Day 183

Doing it in practice
• For simple funnels use excel
• If you have a larger number of customers good idea to get
a CRM system, for example:

Totals/Average 47% $300,000 $142,500 06-Feb-10 177

Stage Contract Funnel Est Close Daysto
Company Opportunityname Funnel stage probability value value Date close
Steve co Product A New Opportunity 5% $10,000 $500 01-Jun-10 291
Bob co Product A and B Initial Communication 10% $50,000 $5,000 15-Apr-10 244
ABD Product B Fact Finding 25% $40,000 $10,000 01-Dec-09 109
DEF Product A Develop Solution 40% $30,000 $12,000 13-Feb-10 183
GHI Product C Propose Solution 60% $50,000 $30,000 15-Jan-10 154
Blockbuster Product A, B and C Solution Evaluation 75% $30,000 $22,500 24-Feb-10 194
PWGSC Product C Negotiation 85% $40,000 $34,000 04-Nov-09 82
CIBC Product C Contract 95% $10,000 $9,500 01-Sep-09 18
Lead to Win Product A Propose Solution 60% $30,000 $18,000 01-Mar-10 199
Redwood Product B Initial Communication 10% $10,000 $1,000 01-Jun-10 291

What is a sales funnel

• A tool that help you assess using different metrics how healthy and
balanced your future sales are. It will tell you:
– At what stage a customer is in the sales process
– What value of opportunity is associated with a customer
– How long customers are taking to move down the pipe
– Gross figure on how many customers are at what stage
– Project $$ revenue forecasts for your cash flow statements

Agenda
Overview
Exercise #1 and #2
value
Exercise #3 and #4
BREAK

Map the funnel to cash flows
Cash flow estimate:
Cash
Cashinjection
injectioninto
intocashflow
cashflowis:
is:
(closing
(closingdate
date++credit
creditterms)
terms)
atataavalue
valueof
of
(deal
(dealsize
size**funnel
funnelstage
stageprobability)
probability)

Funnel Est Close

Company Opportunityname value Date Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10
Steve co Product A $500 01-Feb-10 $ 500
Bob co Product A and B $5,000 15-Apr-10 $ 5,000
ABD Product B $10,000 01-Dec-09 $ 10,000
DEF Product A $12,000 13-Feb-10 $ 12,000
GHI Product C $30,000 15-Jan-10 $ 30,000
Blockbuster Product A, B and C $22,500 24-Feb-10 $ 22,500
PWGSC Product C $34,000 04-Nov-09 $ 34,000
CIBC Product C $9,500 01-Sep-09 $ 9,500
Lead to Win Product A $18,000 01-Mar-10 $ 18,000
Redwood Product B $1,000 01-Jun-10 $ 1,000
Totals $142,500 $9,500 $0 $34,000 $10,000 $30,000 $35,000 $18,000 $5,000 $0 $1,000
With no credit terms

Funnel Est Close

Company Opportunityname value Date Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10
Steve co Product A $500 01-Feb-10 $ 500
Bob co Product A and B $5,000 15-Apr-10 $ 5,000
ABD Product B $10,000 01-Dec-09 $ 10,000
DEF Product A $12,000 13-Feb-10 $ 12,000
GHI Product C $30,000 15-Jan-10 $ 30,000
Blockbuster Product A, B and C $22,500 24-Feb-10 $ 22,500
PWGSC Product C $34,000 04-Nov-09 $ 34,000
CIBC Product C $9,500 01-Sep-09 $ 9,500
Lead to Win Product A $18,000 01-Mar-10 $ 18,000
Redwood Product B $1,000 01-Jun-10
Totals $142,500 $0 $0 $9,500 $0 $34,000 $10,000 $30,000 $35,000 $18,000 $5,000
With 60 day credit terms

Agenda
Overview
Exercise #1 and #2
value
Exercise #3 and #4
BREAK

Exercise #1 – Building Sales Funnel
Using Exercise #1 – Worksheet (next page)

1. List 10-20 potential customers and identify customer type (A,B,C or D) for
– Leads
– Qualified Prospects
– Already engaged
1. Define Funnel Stages and according percentage values.
2. Populate the rest of worksheet for all fields

Exercise #1 - Worksheet
3
1 2 Contract
Customer Customer Stage Probabitlity
Product Funnel Stage Value
Name Characteristics (%) (S
($)
Co
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
A: ready to buy New Opportunity 5%
B: need more research Initial Communication 10%
C: have problem, but get by Fact Finding 25%
D: no problem Develop Solution 40%
Slide 31 Propose Solution 50% Lead to Win
Exercise #2 – Sales Funnel Cash Flow
Using Exercise #2 – Worksheet (next page)

1. Transcribe Funnel Value and Closing date information filled in
Exercise #1 Worksheet into Exercise #2 worksheet
2. For each customer entry, enter the Funnel value into the
appropriate closing date column
3. Calculate totals for each months
4. Identify your typical credit terms: ___ days
5. Change closing date months to reflect credit terms
6. Analyze cash flow requirements

Exercise #2 - Worksheet
2
Funnel
1
Estimated
Value
Close Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10
(Stage Prob *
(month/year)
Contract Value)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
3
20
Totals

Agenda
Overview
Exercise #1 and #2
value
Exercise #3 and #4
BREAK

Sales and product marketing
techniques to maximize funnel value
Marketing
Leads
CHASM {
Sales

Standard ways of marketing your product
• Print media
• Visual media
• Audio media
• Tradeshows
• Internet

Most effective for a start-up is Niche Marketing
By
Byseeking
seekingout
outsmaller
smallersegments
segmentsof oflarger
largermarkets,
markets,marketing
marketingcan
can
be
bedeveloped
developedand
andpromoted
promotedquickly
quicklyto touniquely
uniquelyserve
serveaatargeted
targeted
and
andpotentially
potentiallyloyal
loyalcustomer
customerbase,
base,leading
leadingtotoaasmall
smallbut
butregular
regular
income
incomestream.
stream.This
Thistechnique
techniqueisisthen
thenrepeated
repeatedacross
acrossseveral
several
other
otherniche
nichemarketing
marketingactivities
activitiesuntil
untilaadesired
desiredoutcome
outcomeisis
achieved.
achieved.

Most effective for a start-up is Niche Marketing
• Satisfying the needs of individuals
• Marketing centered around people
• Cultivating long-term relationships and trust with
customers, i.e. Communities
• Hearts and minds
• Concentrated effort:
– saves time and money
– focuses business
• Greater customer satisfaction due to better served needs
• Cultivates relationships

Agenda
Overview
Exercise #1 and #2
value
Exercise #3 and #4
BREAK

Exercise #3 – Marketing Strategies
to complete for your business

1. List out all of the ways you currently market (including
costs). NB leave Internet out for now (next section)
2. List out all of the ways your competitors market
3. Brainstorm new opportunities in other modes of marketing
that may be relevant

Exercise #4 - Markets
to complete for your business

1. List the markets you are selling into
2. List the markets you intend to sell into
3. For each of the above define an initial “beach head” niche
4. List other potential niches to move to once you have
revenue in the first.

Agenda
Overview
Exercise #1 and #2
value
Exercise #3 and #4
BREAK

• We are going to assume that everybody has, or intends to

get a website going.
• There are a number of ways to market on the internet, e.g.
– Paid advertising
–
– News channels/press releases
– Social Media
• We will concentrate on Social Media because this is
showing to be the most cost efficient and effective way to
market to your audience today.

• What is social media?

– Using the web to connect or reconnect with an individual or a
group of like minded individuals
• What is a social network
– A website or web-service with a database
Trends
Trendsshow
showthat
thatcommunity
communityusers
usersremain
remaincustomers
customers50%50%longer,
longer,
spend
spend54%
54%more
morethan
thannon-community
non-communityusers
usersand
andvisit
visit99times
timesmore
more
than
thannon-community
non-communityusers
users

Old New
Eyeballs Hands
Britannica online Wikipedia
Personal websites Blogging
Content Management System Wikis
Directories Tagging
Stickiness Syndication
Instant messenger Twitter
Conferences Unconferences

• Social Media Tools

– RSS feeds
– Social networks
– Blogging
– Micro-blogging
– Podcasts
– Message/discussion boards
– On-line video

• RSS feeds
– People subscribe through an RSS aggregator to be updated of news
– If you have frequent new updates, or use a mix of other social
media tools that you want to make people aware of
• Social Networks
– Search to find individuals in companies to directly target
– Ask questions to large populations of people
– Take out paid advertising to a directed group
– Start your own group, or join an existing industry group and
PARTICIPATE

• Blogging
– Get your technical people to blog on relevant industry advances
– Do NOT use a blog as an advertising medium
– Comment on other blogs and try and get cross-referrals
• Micro-Blogging
– More focused than blogging
– Great to update people at events (e.g. conferences)
– Post if you see something interesting, people use as a referral service

• Podcasts
– Keep them short and relevant
– Tie them to RSS feeds
• Discussion boards (Website Toolbox, Invision etc)
– Opportunity to be controversial (safely)
– Constantly watch, nothing worse than posting and not following up
– Reading other comments good opportunity for background research\
– Good to test ideas prior to implementation
• YouTube (or similar)
– HUGE following
– Opportunity to showcase products
– Some associated production costs

Agenda
Overview
Exercise #1 and #2
value
Exercise #3 and #4
BREAK

Lead to Win
Agenda
Overview
Exercise #1 and #2
value
Exercise #3 and #4
BREAK

In summary
• There are a LOT of people you can talk to

• You should only talk to people that are prepared to give
you $$ if your product/service is right for them
• Good, focused marketing will generate accurate leads
• Initial filtering by conversation will categorize
• Try to fill the pipe in priority order (A – D)
• Don’t forget you don’t necessarily want all A’s, a mix is
good BUT majority A’s and B’s is preferred
• The further you work down the pipe the harder it gets
• Enjoy – sales and marketing is a rewarding experience

Post Phase 2
Tasks
Lead to Win
Task 1 to complete for your business

1. Identify appropriate market segment to release technology into
2. Review list generated during Exercise #1 and add more target
customers
3. Blue ocean helps you differentiate from your competition, even if
you are not disruptive – perform analysis
4. This will enable you articulate key differentiators to your target
customers
5. Start phoning. For each call categorize the customer
6. Identify and implement your own strategies for moving up the chain
7. Only return (initially) to the highest ranked customers for ongoing
business development
Task 2 -Doing it in practice - extend the example

Simple additions that are valuable are (in no particular order):
1. Funnel value by month – vital for cash flow forecasting
2. Average number of days per funnel stage (too see where your
“blockages” are)
3. Estimated vs actual close
4. % dropouts at each stage of the pipeline (closed lost)
5. Keep track of the contract value as it changes (initial estimate –
final) to see how accurate your estimating is

Sales and product marketing techniques to
maximize funnel value
Task 3 - to complete for your business

1. List the ways you use the internet at the moment
2. List the ways your competitors use the internet
3. For each of your customer categories (A, B, C, D) list
appropriate ways of using different social media to reach out
to them

LTW Sales Funnel - Final

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Lead to Win

“Opportunity Development – Making and Managing Sales”

Stephen Davies and Serge Lafontaine

Slide 2 Lead to Win

Use the Internet to sell

Slide 3 Lead to Win

Slide 4 Lead to Win

– You will know how to

Slide 5 Lead to Win

• What this course is

Slide 6 Lead to Win

Slide 7 Lead to Win

Slide 8 Lead to Win

Need: The desire for a product or service

Slide 9 Lead to Win

Slide 10 Lead to Win

Characteristic Comments - Strategies

Slide 11 Lead to Win

• Convince “B” customers: Provide them with additional

information to make a decision, and reinforce your company as

means to gain credibility with them—and access to them.

Slide 12 Lead to Win

Customer Types and Technology Strategy

Slide 13 Lead to Win

Increasing the probability of engaging customers

Slide 14 Lead to Win

Slide 15 Lead to Win

Slide 16 Lead to Win

Slide 17 Lead to Win

Slide 18 Lead to Win

How does it work

Slide 20 Lead to Win

Lead Yield Funnel Stage

1 Won 100% Day 183

Slide 21 Lead to Win

Slide 22 Lead to Win

Totals/Average 47% $300,000 $142,500 06-Feb-10 177

Slide 23 Lead to Win

What is a sales funnel

Slide 24 Lead to Win

Slide 25 Lead to Win

Cash flow estimate:

Slide 26 Lead to Win

Funnel Est Close

With no credit terms

Slide 27 Lead to Win

Funnel Est Close

With 60 day credit terms

Slide 28 Lead to Win

Slide 29 Lead to Win

Using Exercise #1 – Worksheet (next page)

1. Define Funnel Stages and according percentage values.

2. Populate the rest of worksheet for all fields

Slide 30 Lead to Win

Using Exercise #2 – Worksheet (next page)

Slide 32 Lead to Win

Slide 33 Lead to Win

Slide 34 Lead to Win

Slide 35 Lead to Win

Slide 36 Lead to Win

Slide 37 Lead to Win

Slide 38 Lead to Win