By Sales Tracking Portal [ Free Online Sales Tracking Software]
Often the real profits lie in back-end sales.
Once you have a customer, you simply offer additional products, add-ons, upgrades, a super-deluxe version of the original product purchase with all the bells and whistles. The customer is already “sold” on the product or service, based on your sales material or presentation.
The back-end offer should supply the answer to “what’s next?” It should be related in some way to the original product, and the most successful back-end products are higher-priced accessories that makes it easier of better for the buyer than simply having the original.
A back end product should further enhance the product that the buyer intended to purchase. Whatever the original product does, a good back-end product will make it faster, better, more detailed, more complete or easier to use and benefit from – in essence it is far more helpful to the prospect in satisfying his wants, than is the original, more basic product.
Keys to Success
The success of back-end products can be attributed to having a captive, highly targeted audience who is definitely interested in achieving a specific result or solving a specific problem. The add-on product makes it easier to solve the prospect’s problem, quickly.
Another factor is to further sell the customer while he is still in the buying mode and while he is feeling good about solving a problem or moving closer towards a goal.
Examples
To come with examples of back-end products simply ask “What product or service could I also offer that would be a natural match for what my customer is buying now? A self-publisher could offer a booklet on a specific topic. As a back-end, he could offer the same topic covered in greater detail and presented in a multi-media format complete with audio cassettes, videos, manual and CD.
Opportunities for back-end or additional add-on products are easy to find. A shoe store can offer shoe buying customers, laces, polish, protectants or, other accessories, based on the type of shoe sold. Ever visit a theatre to watch a movie and not order popcorn, chips, soft drink, or some other refreshment? Those items are all back-end products. First you bought your tickets, then you went to the snack bar.
My local video store now offers “tape protection” as an extra option. It’s basically insurance against returning a damaged video. Since most videos rented out these days are new releases, tapes being returned in damaged condition are a rarity. Yet, many people gladly pay the extra twenty-five cents to “feel” secure. A clever new profit center for the video-rental industry.
How?
Always be mindful of products, services or ideas that your customers will willingly pay for. Anything that can make it easier or hassle-free for the customer, could be a good candidate as an add-on product. Convenience is a wonderful thing and many will willingly pay you for it.
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Simple, Achieve more sales!
Wednesday, January 12, 2011
Tuesday, January 11, 2011
10 Low-Cost Sales Boosters You Don't Want To Overlook
By Sales Tracking Portal [ Free Online Sales Tracking Software]
You don't have to spend a fortune to boost your sales! Take a look at these 10 quick and easy ways to send your profits to the moon without digging into you advertising budget.
1. Test and Evaluate
Have you ever wondered just how much of your advertising budget should go toward experimenting with the latest marketing strategies? Marketing gurus say... spend 20 percent looking for new and improved marketing methods, while the remaining 80 percent uses the "tried and true" marketing strategies to keep the profits flowing.
2. Capture Attention on your Website
Use headlines that leap out and grab the reader's attention to moment they open your Web page. Hey, they're just like you... if their attention isn't caught immediately, they 're ready to surf on the more exciting things!
3. Use the Best-Kept Marketing Secret - Postcards
Postcards are quick and easy to read, not to mention the fact that you can shave off a great deal of wasted advertising expenses by targeting your market. Hey, they're cheap and convenient for you, and they get read more than other types of advertising materials... a winner all the way around!
4. Let Customers Sell You
Some things sound better coming from someone else. Yes, it's hard to brag your business up as effectively as a satisfied customer. Testimonials are evidence that you deliver what you promise. Paste them across ads, your Website, and any other sales copy you happen to distribute.
5. Just Ask
Great salesmen take the time to listen to the questions the customer has, identify their wants and needs, then ask for the sale. That's right, they're not afraid to just ask them to buy! Sometimes customers just need that little bit of pressure to cement the deal.
6. Raise the Value
Sometime value is only in they eyes of the beholder. You can raise the perceived value of your products by pointing out benefits that consumers may have overlooked. While you're at it, raise the price. Yeah, we all know that more valuable items have higher price tags! Don't be surprised if your profits skyrocket.
7. Make it Easy to Decide
Have you ever had a hard time deciding what to buy? Uh-huh, you don't always come to a conclusion immediately. Every time a customer walks out of the store without making a decision, you take a big chance on losing the sale. Keep the options to a minimum to maximize the sales numbers.
8. Break it Down
Got a big ticket item? Break the price into bite sizes for more appeal. Yeah, 90 cents a day sounds much cheaper than $325!
9. Create Bonuses
An unexpected bonus with a purchase makes it seem like you got a lot more for your money. Keep customers smiling when they walk away from the cash register, and they'll keep coming back for more.
10. Handle Customer Complaints With a Little TLC
Don't waste time getting to the bottom of the problem. Customers want to feel they are being heard, or they wouldn't take the time to complain to you. Are you afraid that you'll be losing profit, if you have to bend too far backwards to accommodate them? Think of it this way... an unhappy customer you turn into a happy customer will become a loyal customer. Yeah, it'll pay in the long run.
By Sales Tracking Portal [ Free Online Sales Tracking Software]
You don't have to spend a fortune to boost your sales! Take a look at these 10 quick and easy ways to send your profits to the moon without digging into you advertising budget.
1. Test and Evaluate
Have you ever wondered just how much of your advertising budget should go toward experimenting with the latest marketing strategies? Marketing gurus say... spend 20 percent looking for new and improved marketing methods, while the remaining 80 percent uses the "tried and true" marketing strategies to keep the profits flowing.
2. Capture Attention on your Website
Use headlines that leap out and grab the reader's attention to moment they open your Web page. Hey, they're just like you... if their attention isn't caught immediately, they 're ready to surf on the more exciting things!
3. Use the Best-Kept Marketing Secret - Postcards
Postcards are quick and easy to read, not to mention the fact that you can shave off a great deal of wasted advertising expenses by targeting your market. Hey, they're cheap and convenient for you, and they get read more than other types of advertising materials... a winner all the way around!
4. Let Customers Sell You
Some things sound better coming from someone else. Yes, it's hard to brag your business up as effectively as a satisfied customer. Testimonials are evidence that you deliver what you promise. Paste them across ads, your Website, and any other sales copy you happen to distribute.
5. Just Ask
Great salesmen take the time to listen to the questions the customer has, identify their wants and needs, then ask for the sale. That's right, they're not afraid to just ask them to buy! Sometimes customers just need that little bit of pressure to cement the deal.
6. Raise the Value
Sometime value is only in they eyes of the beholder. You can raise the perceived value of your products by pointing out benefits that consumers may have overlooked. While you're at it, raise the price. Yeah, we all know that more valuable items have higher price tags! Don't be surprised if your profits skyrocket.
7. Make it Easy to Decide
Have you ever had a hard time deciding what to buy? Uh-huh, you don't always come to a conclusion immediately. Every time a customer walks out of the store without making a decision, you take a big chance on losing the sale. Keep the options to a minimum to maximize the sales numbers.
8. Break it Down
Got a big ticket item? Break the price into bite sizes for more appeal. Yeah, 90 cents a day sounds much cheaper than $325!
9. Create Bonuses
An unexpected bonus with a purchase makes it seem like you got a lot more for your money. Keep customers smiling when they walk away from the cash register, and they'll keep coming back for more.
10. Handle Customer Complaints With a Little TLC
Don't waste time getting to the bottom of the problem. Customers want to feel they are being heard, or they wouldn't take the time to complain to you. Are you afraid that you'll be losing profit, if you have to bend too far backwards to accommodate them? Think of it this way... an unhappy customer you turn into a happy customer will become a loyal customer. Yeah, it'll pay in the long run.
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Monday, January 10, 2011
4 Ways to Use Auto-Responders to Build Sales
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Auto-responders, email systems which are built to deliver multi-step messages over time, will add value to your business in four ways: auto-responders can educate customers about your products and services, auto-responders can build rapport with your prospects, and auto-responders can carry much of your customer support and customer training load. These systems are always working for you delivering important and valuable information. Please see several ideas on how to do this below:
1. Communicate with Customers: Enter company data and product information into a series of auto-responders. Messages should be informative for your customers and should include an offer of value which the recipient can respond to. The auto-responder cycle can add value by making your company information more accessible to your clients.
2. Increase New Business Sales: Put a lead management system in place with auto-responder functionality. This will solve a common problem. Sales people will work a lead list, and burn a lead if it does not respond. The multi-step auto-responder system keep your company in your prospects's mind. The AR system spark a low fire into the mind of your prospect and build mind-share touch by touch.
3. Distribute Training: Training is critical to customer adoption and customer retention. Training is expensive and can eat up valuable sales and operation time. Distribute training to customers, new and existing, with an AR. The messages can range from the "Welcome on-board" basics and can evolve to advanced learning. Why not create advanced usage streaming videos and content and load up a 7 or a 10 message AR and put this Advanced Training offer to your customers for a fee?
4. Distribute Support: Set-up an auto-responder with Frequently Asked Questions. Determine what customer queries are asked and put a series of answers into your auto-responder. Put your AR to work for you by distributing your FAQ to your customers and your trial users.
The auto-responder sequences are fluid: work always to improve your messages and your offers. Your auto-responders can differentiate your business by optimizing customer communication and getting the most from your lead generation and marketing systems.
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Auto-responders, email systems which are built to deliver multi-step messages over time, will add value to your business in four ways: auto-responders can educate customers about your products and services, auto-responders can build rapport with your prospects, and auto-responders can carry much of your customer support and customer training load. These systems are always working for you delivering important and valuable information. Please see several ideas on how to do this below:
1. Communicate with Customers: Enter company data and product information into a series of auto-responders. Messages should be informative for your customers and should include an offer of value which the recipient can respond to. The auto-responder cycle can add value by making your company information more accessible to your clients.
2. Increase New Business Sales: Put a lead management system in place with auto-responder functionality. This will solve a common problem. Sales people will work a lead list, and burn a lead if it does not respond. The multi-step auto-responder system keep your company in your prospects's mind. The AR system spark a low fire into the mind of your prospect and build mind-share touch by touch.
3. Distribute Training: Training is critical to customer adoption and customer retention. Training is expensive and can eat up valuable sales and operation time. Distribute training to customers, new and existing, with an AR. The messages can range from the "Welcome on-board" basics and can evolve to advanced learning. Why not create advanced usage streaming videos and content and load up a 7 or a 10 message AR and put this Advanced Training offer to your customers for a fee?
4. Distribute Support: Set-up an auto-responder with Frequently Asked Questions. Determine what customer queries are asked and put a series of answers into your auto-responder. Put your AR to work for you by distributing your FAQ to your customers and your trial users.
The auto-responder sequences are fluid: work always to improve your messages and your offers. Your auto-responders can differentiate your business by optimizing customer communication and getting the most from your lead generation and marketing systems.
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Friday, January 7, 2011
Why It Seems So Hard to Get Hired for Your Services!
By Sales Tracking Portal [ Free Online Sales Tracking Software]
To answer this question let’s first take a look at the difference between promoting products VS services.
Products often have cool features that show results quickly. Talk about the benefits of a feature and how it’ll make your customer’s life easier and you’ll probably get a sale.
Services on the other hand, are intangible. There are no buttons to push or “before and after” pictures to see. Services often get categorized as “luxury items” we can usually survive without. They are more challenging to sell because the “results” of a service can be difficult to quantify measure or prove.
Many “hard sell” sales trainers shy away from working with service providers. It is easier to train someone to sell products with features you can see and results you can prove.
After four years in the corporate world selling products (Electronic telephone systems), I transferred into yellow pages advertising. Many of the “sales” techniques we used to sell telephones wouldn’t work at all in advertising! I quickly found out that I needed new sales techniques to promote the intangible results of advertising.
Authors, Coaches, Consultants, etc. produce results that improve the human side of life and business and “Alternative Healers” deal with subtle energies that may take longer to produce quantifiable results. To the average consumer, these are luxuries that, although desirable and beneficial, can be “done without” if money is tight.
Most of my clients haven’t got a clue how to tell people about the benefits and results of their good services. They feel frustrated and wonder why clients are so hard to get. Many are good at explaining how they work and what tools they use. The problem is that most consumers couldn’t care less about how you work. We care more about the benefits we’ll experience after hiring you. We want to be clear on what results you can deliver in exchange for our hard-earned money.
“What’s in it for me?” your customers are asking. It is time to stop feature-dumping! Features only imply that a “process” is beneficial, or a “technique” is going to help…. As service providers we must be able to describe clear results to potential clients.
Success Story:
One client arrived in despair. She had a great service as a professional organizer and sadly, few customers to show for it.
I asked her to give me the top 10 benefits of her good service…alas she (like many others responding to this request) provided a list of top 10 features instead.
She listed “features” that describe how she gets to a result. Features like:
- Customized quotes
- Office flow organization tweaking
- Created new filing systems
- Ergonomic layouts for offices, etc.
Sound pretty good, don’t’ they? Sure, and her customers seemed interested and keen, BUT they were not following through and hiring her.
I helped her articulate a more effective sales list of the benefits and results of her good work. Results like:
- Added value of charging only her client’s specific needs
- Improved and streamlined office procedures
- To save time and decrease frustrations
- Ability to provide better customer service
- Increased efficiency with improved filing structure
- Less time wasted due to poor office layout
- Resulting in increased productivity all around.
We created a list of 6 good questions she can ask to uncover if a client needs organizational help. Why waste time telling clients all about our services if they don’t need them?
Now, my client will always ask questions to find out first if someone seriously needs her service. If they do, she tells them with confidence about the results she can provide and is more secure asking for their business. By following these guidelines you too can get hired faster with more confidence practically every time!
"Anna Kanary's Sales class was exactly what I needed! As someone with very little sales background and who struggles to close the deal with potential clients, this class gave me the format, confidence, clarity and momentum I needed to get out there and get more clients! Anna's expertise combined with her warmth makes this class not only exceptional but necessary...you will get more than you ever expected!"
Sarah O. Bloomquist, Personal Life Coach, Innermost Coaching, www.innermostcoaching.com
By Sales Tracking Portal [ Free Online Sales Tracking Software]
To answer this question let’s first take a look at the difference between promoting products VS services.
Products often have cool features that show results quickly. Talk about the benefits of a feature and how it’ll make your customer’s life easier and you’ll probably get a sale.
Services on the other hand, are intangible. There are no buttons to push or “before and after” pictures to see. Services often get categorized as “luxury items” we can usually survive without. They are more challenging to sell because the “results” of a service can be difficult to quantify measure or prove.
Many “hard sell” sales trainers shy away from working with service providers. It is easier to train someone to sell products with features you can see and results you can prove.
After four years in the corporate world selling products (Electronic telephone systems), I transferred into yellow pages advertising. Many of the “sales” techniques we used to sell telephones wouldn’t work at all in advertising! I quickly found out that I needed new sales techniques to promote the intangible results of advertising.
Authors, Coaches, Consultants, etc. produce results that improve the human side of life and business and “Alternative Healers” deal with subtle energies that may take longer to produce quantifiable results. To the average consumer, these are luxuries that, although desirable and beneficial, can be “done without” if money is tight.
Most of my clients haven’t got a clue how to tell people about the benefits and results of their good services. They feel frustrated and wonder why clients are so hard to get. Many are good at explaining how they work and what tools they use. The problem is that most consumers couldn’t care less about how you work. We care more about the benefits we’ll experience after hiring you. We want to be clear on what results you can deliver in exchange for our hard-earned money.
“What’s in it for me?” your customers are asking. It is time to stop feature-dumping! Features only imply that a “process” is beneficial, or a “technique” is going to help…. As service providers we must be able to describe clear results to potential clients.
Success Story:
One client arrived in despair. She had a great service as a professional organizer and sadly, few customers to show for it.
I asked her to give me the top 10 benefits of her good service…alas she (like many others responding to this request) provided a list of top 10 features instead.
She listed “features” that describe how she gets to a result. Features like:
- Customized quotes
- Office flow organization tweaking
- Created new filing systems
- Ergonomic layouts for offices, etc.
Sound pretty good, don’t’ they? Sure, and her customers seemed interested and keen, BUT they were not following through and hiring her.
I helped her articulate a more effective sales list of the benefits and results of her good work. Results like:
- Added value of charging only her client’s specific needs
- Improved and streamlined office procedures
- To save time and decrease frustrations
- Ability to provide better customer service
- Increased efficiency with improved filing structure
- Less time wasted due to poor office layout
- Resulting in increased productivity all around.
We created a list of 6 good questions she can ask to uncover if a client needs organizational help. Why waste time telling clients all about our services if they don’t need them?
Now, my client will always ask questions to find out first if someone seriously needs her service. If they do, she tells them with confidence about the results she can provide and is more secure asking for their business. By following these guidelines you too can get hired faster with more confidence practically every time!
"Anna Kanary's Sales class was exactly what I needed! As someone with very little sales background and who struggles to close the deal with potential clients, this class gave me the format, confidence, clarity and momentum I needed to get out there and get more clients! Anna's expertise combined with her warmth makes this class not only exceptional but necessary...you will get more than you ever expected!"
Sarah O. Bloomquist, Personal Life Coach, Innermost Coaching, www.innermostcoaching.com
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Thursday, January 6, 2011
Purchase Order Finance - Your Tool For Unlimited Sales
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Do you sell to the government or to large companies? Do you regularly get purchase orders that stretch your company’s ability to deliver? Lastly, if you had financing to cover all your supplier costs, could you sell more? Much more?
If you answered yes to any of these questions, then purchase order financing could help your business grow.
Purchase order financing is a way of financing sales that has been gaining popularity with US and Canadian businesses. It offers a very simple proposition. If you have an order from a large credit worthy business (or government agency), then the financing company will provide you with the necessary funding to fulfill your supplier payments and make the sale. Call it sales based financing. It works well for resellers, distributors and wholesalers, although it can also be used in other industries.
Here is how purchase order financing works. Let’s say that you own a company that has been getting progressively larger orders, tightening your cash flow. After setting up a purchase order financing agreement, this is how your sales financing would work:
1. You get an order from a client
2. The purchase order finance company handles up to 100% of your supplier payments (by direct payment or letter of credit)
3. The order is fulfilled and the goods are delivered
4. The transaction is settled, once the client pays their invoices
As you can see, purchase order financing allows you to leverage the resources of the financing company and allows you to increase your sales. With PO financing, lack of cash flow will never be a reason to lose a sale.
As opposed to a business loan from a bank, purchase order financing is very easy to obtain and can be set up in days. The main requirement is to have valid orders from good commercial or government clients. Most banks won’t offer this type of financing, but you can get it from a factoring company. As a matter of fact, purchase order financing and invoice factoring are frequently combined to help reduce the costs of the transaction.
So, if your purchase orders are piling up, be sure to consider financing with purchase order funding.
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Do you sell to the government or to large companies? Do you regularly get purchase orders that stretch your company’s ability to deliver? Lastly, if you had financing to cover all your supplier costs, could you sell more? Much more?
If you answered yes to any of these questions, then purchase order financing could help your business grow.
Purchase order financing is a way of financing sales that has been gaining popularity with US and Canadian businesses. It offers a very simple proposition. If you have an order from a large credit worthy business (or government agency), then the financing company will provide you with the necessary funding to fulfill your supplier payments and make the sale. Call it sales based financing. It works well for resellers, distributors and wholesalers, although it can also be used in other industries.
Here is how purchase order financing works. Let’s say that you own a company that has been getting progressively larger orders, tightening your cash flow. After setting up a purchase order financing agreement, this is how your sales financing would work:
1. You get an order from a client
2. The purchase order finance company handles up to 100% of your supplier payments (by direct payment or letter of credit)
3. The order is fulfilled and the goods are delivered
4. The transaction is settled, once the client pays their invoices
As you can see, purchase order financing allows you to leverage the resources of the financing company and allows you to increase your sales. With PO financing, lack of cash flow will never be a reason to lose a sale.
As opposed to a business loan from a bank, purchase order financing is very easy to obtain and can be set up in days. The main requirement is to have valid orders from good commercial or government clients. Most banks won’t offer this type of financing, but you can get it from a factoring company. As a matter of fact, purchase order financing and invoice factoring are frequently combined to help reduce the costs of the transaction.
So, if your purchase orders are piling up, be sure to consider financing with purchase order funding.
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Wednesday, January 5, 2011
The Effective Use of Business Lead Databases
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Business lead databases are an incredible resource for any business wanting to generate clients. Leads are the life source of almost every successful business. Without leads you have no customers and without customers you have no sales, no referrals, and definitely no income.
Business lead databases are essentially a huge resource of business leads. They are websites or companies that have a list of businesses categorized into industry sector. Decent business databases will be updated often and they will only contain opt-in leads to businesses that wish to be included.
Fresh Leads
Regularly updated lists mean you will always have up to date information. You won’t be clicking dead links to sites, you won’t be trying to contact people who have left the company or moved department and you won’t be contacting companies who are in a different industry to the type you are interested in.
Opt-In Leads
Opt-in leads mean that the business and contact details you are using are not only relevant but they are also willing recipients of your emails, letters or phone calls. With the increase of Spam and the prosecution of people and companies who partake in spamming individuals and companies it is in your best interest to make sure that you do not Spam.
Targeted Prospects
Specific leads from business databases will be categorized accurately dependant on geographic location, industry and any other specifications you may have. The increasing use of the Internet to run businesses means that geographic location isn’t as important anymore. You can sell your products or services to customers across the world but you may also want to send mail campaigns or paper flyers. You may be selling large heavy equipment or a service that can only be performed in person. In these cases you will only want to contact companies or people who are in a region close to your own.
Reputable business databases will offer all of this and much more. As you can imagine, keeping a database like this maintained and up to date will entail a lot of work. In order to do this effectively, they will more than likely charge a small fee to cover the ongoing work.
Find a Good Business Database and Stick With It
The Internet has a lot of available business databases and you should be careful to select one that has a large number of businesses included and keeps its records up to date and as accurate as possible. You shouldn’t just jump in with the cheapest one you can find or you may find that you wasted your money and you have to pay again for a better database.
Business databases are an invaluable resource for getting large amounts of leads in a very short period of time. They can save you months, even years, of trying to develop your own leads and every web site and small business should consider using one.
Paying for the use of business databases can either be as a one time payment allowing you full lifetime access or on a monthly basis, or even for each category of mailing list you require. There’s even a chance you could get some free leads for your money.
In short, business lead databases can be a great investment. Don't just jump in and buy the first lead list you find. Shop around, find a reputable company and the extra work and fees involved will likely be very worth the effort.
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Business lead databases are an incredible resource for any business wanting to generate clients. Leads are the life source of almost every successful business. Without leads you have no customers and without customers you have no sales, no referrals, and definitely no income.
Business lead databases are essentially a huge resource of business leads. They are websites or companies that have a list of businesses categorized into industry sector. Decent business databases will be updated often and they will only contain opt-in leads to businesses that wish to be included.
Fresh Leads
Regularly updated lists mean you will always have up to date information. You won’t be clicking dead links to sites, you won’t be trying to contact people who have left the company or moved department and you won’t be contacting companies who are in a different industry to the type you are interested in.
Opt-In Leads
Opt-in leads mean that the business and contact details you are using are not only relevant but they are also willing recipients of your emails, letters or phone calls. With the increase of Spam and the prosecution of people and companies who partake in spamming individuals and companies it is in your best interest to make sure that you do not Spam.
Targeted Prospects
Specific leads from business databases will be categorized accurately dependant on geographic location, industry and any other specifications you may have. The increasing use of the Internet to run businesses means that geographic location isn’t as important anymore. You can sell your products or services to customers across the world but you may also want to send mail campaigns or paper flyers. You may be selling large heavy equipment or a service that can only be performed in person. In these cases you will only want to contact companies or people who are in a region close to your own.
Reputable business databases will offer all of this and much more. As you can imagine, keeping a database like this maintained and up to date will entail a lot of work. In order to do this effectively, they will more than likely charge a small fee to cover the ongoing work.
Find a Good Business Database and Stick With It
The Internet has a lot of available business databases and you should be careful to select one that has a large number of businesses included and keeps its records up to date and as accurate as possible. You shouldn’t just jump in with the cheapest one you can find or you may find that you wasted your money and you have to pay again for a better database.
Business databases are an invaluable resource for getting large amounts of leads in a very short period of time. They can save you months, even years, of trying to develop your own leads and every web site and small business should consider using one.
Paying for the use of business databases can either be as a one time payment allowing you full lifetime access or on a monthly basis, or even for each category of mailing list you require. There’s even a chance you could get some free leads for your money.
In short, business lead databases can be a great investment. Don't just jump in and buy the first lead list you find. Shop around, find a reputable company and the extra work and fees involved will likely be very worth the effort.
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Tuesday, January 4, 2011
Sales Prospecting and a Targeted Selection Process
By Sales Tracking Portal [ Free Online Sales Tracking Software]
What’s a Targeted Selection Process? As related to prospecting, it is a process or system of defining whom you want to call on and performing the due diligence of data procurement to understand who you are calling on and why you have chosen them.
It can be as simple as choosing an industry, picking a company name out of the yellow pages, understanding the appropriate level of contact to call on, and investigating a name that goes with the title.
Or it can be as complex as an expensive CRM (customer relationship management) system for existing customers, defining market share of your product portfolio and routinely touching the existing base to broaden the revenue pond.
But here’s what’s important to understand. Your Targeted Selection Process is a separate component of your sales strategy. It stands by itself.
But it is directly allied with your other Sales performance indicators. The degree of success you’ll have in the business of sales is proportional to raising and maintaining these success indicators to a level more proficient than the industry norm.
And the direction you decide to travel is strategic to the outcome. I call it the ‘Playing Field’. Because that’s where it all starts… it’s where the game begins.
Here’s what I mean. There are basically (2) strategies in picking your ‘Playing Field’; a ‘Bottom-up’ approach or a ‘Top-down’ approach.
The following is an example of a Bottom-up approach. A Telecommunications rep initiates a telephone call into a company and asks the question “Who handles your telecommunications needs?” Guess where they are sent? If you said ‘office manager’ you guessed right. If you said ‘Head Janitor’ you weren’t far off.
Is there anything ‘wrong’ with that? Not really; it’s legal and a lot of folks out there do it.
But let’s think through this option as a ‘Business person’ would. Let’s study it as it relates to our sales process and individual Key Performance Indicators (KPI); Conversation-to-appointment ratio, 1st appointment to Proposal ratio, Closing ratio, sales cycle and average revenue per sale. Because these success indicators are gateways that directly affect the outcome of a sales process.
Do your KPI’s go up or down with a bottom-up approach? Historically, a bottom-up approach promotes a:
1. 1st appointment to Proposal ratio to decrease
2. Closing ratio to decrease
3. Sales cycle to increase
4. Average revenue per sale to decrease
Bottom line, you’ll be leaving time and money on the table if you choose this Target strategy.
We’ll revisit the Conversation-to-appointment KPI in a minute.
At the other end of the Target spectrum is the ‘Top-down’ strategy for securing a new Targeted business appointment. Let’s say that same telecommunications rep chose this approach in prospecting for new business. The first step in this process is ‘Homework’; some due diligence prior to picking up the telephone.
Activities like:
• Gathering a list of appropriate industries
• Assigning the highest appropriate level of contact to each account; by company size and industry
• Researching contact name for each appropriate title and account
• Researching what each business does to exist and prosper
That sounds like a bit of work. But what historically happens with a ‘Top-down’ approach in line with sales performance KPI’s?
1. 1st appointment to Proposal ratio increases
2. Closing ratio increases
3. Sales cycle decreases
4. Average revenue per sale increases
OK. We agree that’s a no-brainer. So it all comes down to the 1st and foremost sales performance indicator, your Conversation-to-appointment ratio.
That’s simply how many times you conduct a conversation with a target prospect versus how many times you achieve one. And the national average on that KPI is between 4% and 18%; Top-down or Bottom up approach. So it takes 10, 12 or 20 conversations to achieve 1 or 2 appointments. And that’s a lot of work. In fact, JDH Group studies show sales individuals spend an average of 50% of their time on prospecting activities, or about 22 hours per week.
That leads a sensible person to the conclusion that one needs to focus on efficiencies in Prospecting. And to secure those ‘Competencies’ one must develop a communication ‘system’ in line with your business solutions, your ‘Top-down’ Prospect perceptions and your competitive influences.
Not from a product/service angle, that’s ‘selling’ over the telephone. But a communications methodology that lends itself to ‘Business acumen’; insight into what is strategic to your target prospect’s business objectives, what pains they are facing due to recent events or what changes are on the horizon that may effect their current status quo.
Next is figuring out how to communicate to your ‘Top-down’ target the prospective benefits of your product/service in terms relevant to their financial Key Performance Indicators; line items like ROI, IRR and Payback Period. Those are success indicators that organizations rely on to measure progress toward their organizational goals. It’s their ‘Scorecard’.
So lesson number one. When you’re addressing a target level that has Budget authority; a President/Owner of a small company or a CFO/Controller of a medium size one, you’d better be talking terms in line with what they need to accomplish, not in a ‘sales language’ creating a prospect perception that you’re (1) don’t understand their business and (2) are simply trying to make a living.
From a 10,000 foot altitude, understand and communicate what’s on your ‘Top-down’ target prospect’s ‘Front Burner’ business objectives…not clear over in the freezer!
You can choose not to accept the standard ‘sales 101 playing field’.
Identify your individual performance components (KPI’s) that are essential to your success and develop or seek systems to raise your competency ratios and performance efficiencies.
And start your process by picking a ‘Top-down Playing Field’ and educating yourself to their world.
By Sales Tracking Portal [ Free Online Sales Tracking Software]
What’s a Targeted Selection Process? As related to prospecting, it is a process or system of defining whom you want to call on and performing the due diligence of data procurement to understand who you are calling on and why you have chosen them.
It can be as simple as choosing an industry, picking a company name out of the yellow pages, understanding the appropriate level of contact to call on, and investigating a name that goes with the title.
Or it can be as complex as an expensive CRM (customer relationship management) system for existing customers, defining market share of your product portfolio and routinely touching the existing base to broaden the revenue pond.
But here’s what’s important to understand. Your Targeted Selection Process is a separate component of your sales strategy. It stands by itself.
But it is directly allied with your other Sales performance indicators. The degree of success you’ll have in the business of sales is proportional to raising and maintaining these success indicators to a level more proficient than the industry norm.
And the direction you decide to travel is strategic to the outcome. I call it the ‘Playing Field’. Because that’s where it all starts… it’s where the game begins.
Here’s what I mean. There are basically (2) strategies in picking your ‘Playing Field’; a ‘Bottom-up’ approach or a ‘Top-down’ approach.
The following is an example of a Bottom-up approach. A Telecommunications rep initiates a telephone call into a company and asks the question “Who handles your telecommunications needs?” Guess where they are sent? If you said ‘office manager’ you guessed right. If you said ‘Head Janitor’ you weren’t far off.
Is there anything ‘wrong’ with that? Not really; it’s legal and a lot of folks out there do it.
But let’s think through this option as a ‘Business person’ would. Let’s study it as it relates to our sales process and individual Key Performance Indicators (KPI); Conversation-to-appointment ratio, 1st appointment to Proposal ratio, Closing ratio, sales cycle and average revenue per sale. Because these success indicators are gateways that directly affect the outcome of a sales process.
Do your KPI’s go up or down with a bottom-up approach? Historically, a bottom-up approach promotes a:
1. 1st appointment to Proposal ratio to decrease
2. Closing ratio to decrease
3. Sales cycle to increase
4. Average revenue per sale to decrease
Bottom line, you’ll be leaving time and money on the table if you choose this Target strategy.
We’ll revisit the Conversation-to-appointment KPI in a minute.
At the other end of the Target spectrum is the ‘Top-down’ strategy for securing a new Targeted business appointment. Let’s say that same telecommunications rep chose this approach in prospecting for new business. The first step in this process is ‘Homework’; some due diligence prior to picking up the telephone.
Activities like:
• Gathering a list of appropriate industries
• Assigning the highest appropriate level of contact to each account; by company size and industry
• Researching contact name for each appropriate title and account
• Researching what each business does to exist and prosper
That sounds like a bit of work. But what historically happens with a ‘Top-down’ approach in line with sales performance KPI’s?
1. 1st appointment to Proposal ratio increases
2. Closing ratio increases
3. Sales cycle decreases
4. Average revenue per sale increases
OK. We agree that’s a no-brainer. So it all comes down to the 1st and foremost sales performance indicator, your Conversation-to-appointment ratio.
That’s simply how many times you conduct a conversation with a target prospect versus how many times you achieve one. And the national average on that KPI is between 4% and 18%; Top-down or Bottom up approach. So it takes 10, 12 or 20 conversations to achieve 1 or 2 appointments. And that’s a lot of work. In fact, JDH Group studies show sales individuals spend an average of 50% of their time on prospecting activities, or about 22 hours per week.
That leads a sensible person to the conclusion that one needs to focus on efficiencies in Prospecting. And to secure those ‘Competencies’ one must develop a communication ‘system’ in line with your business solutions, your ‘Top-down’ Prospect perceptions and your competitive influences.
Not from a product/service angle, that’s ‘selling’ over the telephone. But a communications methodology that lends itself to ‘Business acumen’; insight into what is strategic to your target prospect’s business objectives, what pains they are facing due to recent events or what changes are on the horizon that may effect their current status quo.
Next is figuring out how to communicate to your ‘Top-down’ target the prospective benefits of your product/service in terms relevant to their financial Key Performance Indicators; line items like ROI, IRR and Payback Period. Those are success indicators that organizations rely on to measure progress toward their organizational goals. It’s their ‘Scorecard’.
So lesson number one. When you’re addressing a target level that has Budget authority; a President/Owner of a small company or a CFO/Controller of a medium size one, you’d better be talking terms in line with what they need to accomplish, not in a ‘sales language’ creating a prospect perception that you’re (1) don’t understand their business and (2) are simply trying to make a living.
From a 10,000 foot altitude, understand and communicate what’s on your ‘Top-down’ target prospect’s ‘Front Burner’ business objectives…not clear over in the freezer!
You can choose not to accept the standard ‘sales 101 playing field’.
Identify your individual performance components (KPI’s) that are essential to your success and develop or seek systems to raise your competency ratios and performance efficiencies.
And start your process by picking a ‘Top-down Playing Field’ and educating yourself to their world.
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Monday, January 3, 2011
Setting Realistic Goals
When we make a sale, or take one step closer to meeting our goal, we are overcome with a felling of achievement which motivates us to sell more.
I’m sure that anybody who is reading this article has been in the situation where they may have been given unobtainable goals from one of their bosses, sales manager’s, or some higher up somewhere in the company.
When goals are given that are unrealistic, the mission is doomed from the beginning. It immediately gives a feeling of despair to the sales team, which can be devastating to morale.
The sales team will do their duty and work as hard as they can to obtain the goals, but when they fall short, they will have feelings of failure, and will be reluctant to move on.
Simply stated, unrealistic goals, take the fun out of selling.
A personal story . . .
During my years in the banking industry, I managed a sales team in a small branch inside of a grocery store. This is what is known as In-store banking. It was estimated that seven thousand people came through the grocery store where my branch was located on a weekly basis.
With that statistic, my sales team was given a goal of opening up six checking accounts per day, among other things.
This would be a monthly goal of one hundred and eighty checking accounts per month. To me and my team, this was highly unrealistic.
Then, In-store banking was brand new to the banking industry, and these goals were being handed down by people who never once stepped foot in an in-store branch.
Please understand, I am not bitter about this, I am just stating the facts, and believe this to be an on going problem with companies.
This problem works both ways. Sometimes the goals being handed down are not enough, and a sales team will fall short of what their potential could be.
Needless to say, my sales team never met their daily, weekly, or monthly goals. We did however, fight the good fight and manage to hold our own. But morale was never what it should have been.
Every six months my team and I would attend the semiannual sales rally, where we would sit and watch as the other branches so proudly accepted their awards for meeting their goals. It pained me to watch my team walk away empty handed knowing that they worked so hard.
My point is, when goals are being set, they need to be realistic and obtainable. The more you or your team reach their goal the more motivated they will be.
Once you are reaching your goal at a steady pace, challenge yourself or your team, and raise the bar. Challenge them to reach higher on a daily basis
Keep in mind, when you raise the bar, keep this new goal realistic as well, you don’t want to become over confident and put your goals out of reach.
One last thing . . .
The goals that are being set, should be put in place by a person or people who know you, your staff, and your demographics. Not by somebody in an ivory tower.
If they are not being put into place by the appropriate people, suggest this idea to someone in your organization that you can trust.
This article may be reproduced by anyone at any time, as long as the authors name and reference links are kept in tact and active.
Monday, December 27, 2010
Sales and the Importance of Following Up
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Sales are the life force of any business. Here’s an outline of the key factors in getting them for your business.
Persistence
Business owners and decision makers are typically very busy people. Often, the difference between making a sale and not making a sale is catching the decision maker at the right time. One of the best ways to catch a decision maker at the right time is to catch him or her many times. Of course, you do not want to be contacting a prospect so often that you become an annoyance. Still, using a combination of phone calls, emails, faxes and snail mails you can ensure your prospect remembers your company when the time comes to purchase the product or service you sell.
Organization
One of the most important aspects of following up is being organized. There is a great variety of software to help you get your lead management in order, but all lead management software is not created equal. One feature to look for in lead management software is portability. Web based systems allow users to access their leads from any Internet connected computer. Another feature to look for is built in document management. Ideally, your lead management software will allow you to easily send emails, faxes and snail mails and document the contact automatically. A good scheduling tool is also a great asset to lead management software.
Follow Up and Consistency
Once you have contacted your lead, make sure to let them know when you will follow up again and follow through. Setting a time and day to follow up and then following through will build trust with your prospect. Just doing what you say you'll do is a huge source of confidence to prospective clients. After following up several times at the same time and day of the week, your prospect will come to expect your contact. Use this to build rapport. Become involved in your prospect's life and you are much more likely to make a sale. Use your lead management software to make notes about your conversations. Other wise, it is very difficult to remember the details of every conversation you may have. By following up and staying in front of your prospects, you will make more sales. The more familiar your prospects are with your company and products or services, the more likely they are to choose your company. Using the right lead management software can make the task of following up a breeze.
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Sales are the life force of any business. Here’s an outline of the key factors in getting them for your business.
Persistence
Business owners and decision makers are typically very busy people. Often, the difference between making a sale and not making a sale is catching the decision maker at the right time. One of the best ways to catch a decision maker at the right time is to catch him or her many times. Of course, you do not want to be contacting a prospect so often that you become an annoyance. Still, using a combination of phone calls, emails, faxes and snail mails you can ensure your prospect remembers your company when the time comes to purchase the product or service you sell.
Organization
One of the most important aspects of following up is being organized. There is a great variety of software to help you get your lead management in order, but all lead management software is not created equal. One feature to look for in lead management software is portability. Web based systems allow users to access their leads from any Internet connected computer. Another feature to look for is built in document management. Ideally, your lead management software will allow you to easily send emails, faxes and snail mails and document the contact automatically. A good scheduling tool is also a great asset to lead management software.
Follow Up and Consistency
Once you have contacted your lead, make sure to let them know when you will follow up again and follow through. Setting a time and day to follow up and then following through will build trust with your prospect. Just doing what you say you'll do is a huge source of confidence to prospective clients. After following up several times at the same time and day of the week, your prospect will come to expect your contact. Use this to build rapport. Become involved in your prospect's life and you are much more likely to make a sale. Use your lead management software to make notes about your conversations. Other wise, it is very difficult to remember the details of every conversation you may have. By following up and staying in front of your prospects, you will make more sales. The more familiar your prospects are with your company and products or services, the more likely they are to choose your company. Using the right lead management software can make the task of following up a breeze.
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Tuesday, December 21, 2010
Business Cards Are Excellent Salesman
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Since the 19th century business cards were widespread among people of all classes with a business to promote. The earliest form of business cards, known as tradecards, were used as advertising materials and as maps used to direct the public to the merchant’s store. Today business cards are among the most important marketing material that every business must have.
The business card is perhaps the best salesman that you can have. That is why it is essential that it contains much more than your name, address, and contact numbers and services. It should be designed keeping its purpose in mind – that is its being a powerful sales tool. So let’s start with the design. If you want to create a business card that contains a photo with gradient colors you can try using a glossy paper to ensure that the cards are printed as good as they look on the screen. Or else, you can get disappointed with the print out.
In addition, if your card design contains background color or images, you can use papers that have gaps between them as these gaps will allow you to make up for the unavoidable elusiveness of the printer paper feed system. However, most stock cards don’t have gaps so if you don’t want to have trouble with printing, make sure your photos, images and text are at 3mm off the edge of the card. This way the minor printer imprecision will not destroy your business cards.
When it comes to printing, make sure that the paper stock that you will use is compatible to your printer. As inkjet and laser printer uses different technologies, it is important that you only feed paper type that is attuned to your printer choice. So for instance you will be using a laser printer, using a paper with glossy coating can cause damage to the printer. Hence, the right choice of paper stock will greatly affect your business cards print out.
Now let’s come to the strategies you can utilize in business card distribution. Aside from the usual handing out of your business cards during tradeshows, conventions, meetings and the like, tucking them in your products before delivery can be a good idea. Say you are a florist. You can consider tying your business card around the flowers. Or if use bags in packaging your products, you can staple or tie your card on the outside of the bag. You can also include you cards in your letters and invoices. And if you are really crafty you can slip in your cards into your designs – you can include them in your greeting cards, emboss them with your rubber stamps or blend them with your other artworks.
There are endless possibilities when it comes to designing and handing out your business cards. You just have to know how to utilize these possibilities to your advantage. Remember that your business cards can be your best salesman, so make them represent you effectively.
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Since the 19th century business cards were widespread among people of all classes with a business to promote. The earliest form of business cards, known as tradecards, were used as advertising materials and as maps used to direct the public to the merchant’s store. Today business cards are among the most important marketing material that every business must have.
The business card is perhaps the best salesman that you can have. That is why it is essential that it contains much more than your name, address, and contact numbers and services. It should be designed keeping its purpose in mind – that is its being a powerful sales tool. So let’s start with the design. If you want to create a business card that contains a photo with gradient colors you can try using a glossy paper to ensure that the cards are printed as good as they look on the screen. Or else, you can get disappointed with the print out.
In addition, if your card design contains background color or images, you can use papers that have gaps between them as these gaps will allow you to make up for the unavoidable elusiveness of the printer paper feed system. However, most stock cards don’t have gaps so if you don’t want to have trouble with printing, make sure your photos, images and text are at 3mm off the edge of the card. This way the minor printer imprecision will not destroy your business cards.
When it comes to printing, make sure that the paper stock that you will use is compatible to your printer. As inkjet and laser printer uses different technologies, it is important that you only feed paper type that is attuned to your printer choice. So for instance you will be using a laser printer, using a paper with glossy coating can cause damage to the printer. Hence, the right choice of paper stock will greatly affect your business cards print out.
Now let’s come to the strategies you can utilize in business card distribution. Aside from the usual handing out of your business cards during tradeshows, conventions, meetings and the like, tucking them in your products before delivery can be a good idea. Say you are a florist. You can consider tying your business card around the flowers. Or if use bags in packaging your products, you can staple or tie your card on the outside of the bag. You can also include you cards in your letters and invoices. And if you are really crafty you can slip in your cards into your designs – you can include them in your greeting cards, emboss them with your rubber stamps or blend them with your other artworks.
There are endless possibilities when it comes to designing and handing out your business cards. You just have to know how to utilize these possibilities to your advantage. Remember that your business cards can be your best salesman, so make them represent you effectively.
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Monday, December 20, 2010
Tips for Successful Negotiating by Phone
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Most of us negotiate something every day. Whether it's getting our kids to willingly clean their rooms, or hammering out an elephant-sized contract with more details than a politician has “special-interest” donors, our ability to haggle effects our results. Here are some useful negotiating tips.
1. Define Your Negotiables Other than Price. Inexperienced, unconfident, or plain old lazy reps take the easy route and drop price at the first sign of the other person seeking to get a better deal. Instead, first determine what you could offer, if needed, that has high perceived value to them, but little cost to you. For example, moving up the delivery date if they need it quickly, extending the warranty period . . . some distributors and suppliers like to throw in some products the customer isn't buying. This has high perceived value, and gets the customer to test the new product, which might pay off with future purchases.
2. Analyze Your Strengths, Their Needs. Before calling, list what you know they require and emotionally want, what you have, and what you want. You might know that this buyer always tries to pound you on price, but you also know you're working from a position of strength because you're the only one who has the quality of product he needs.
3. Set Your Objectives. Just like every call, define, “What do I want them to do as a result of this call, and what do I want to do?”
4. Aim High, Set Minimums. As part of your objectives, swing for the fence! Think big. Set the most favorable objective possible (one that is within reason). The richest sales reps I know can't believe anyone would think otherwise. Likewise, set minimums that you're willing to accept. You'll know how much you have to play with.
5. Prepare for their Possible Tactics. It's easier if you know the person. For example, knowing that Joe always starts with an outrageous request helps you prepare your counter-tactic. Otherwise, you need to dry-run through possible demands and tactics along with your responses so you're not blindsided into giving away something you didn't intend to.
6. Gather Information. As with all sales calls, the more you know the better.
7. Don't Give More Information (or Anything Else) than Necessary. I've seen sales reps offer price concessions that weren't asked for (“The price starts here, but I might be able to do a little better.”), and give up information that the customer used to ask for more concessions (“You mentioned another customer had additional training manuals thrown in free. I want those too.”)
8. Don't Split the Difference. It's human nature, but it costs you money. Let's look at the math. Your asking price is $50. They offer you $30. You counter with $40 and they figure splitting the difference is fair. Your tactic: come back with a pained tone of voice, “I might be able to do $46 or $47.” It's more likely you'll end up better than $40.
9. Trade Your Concessions. Get something in return. If you get them the better volume price, ask for a commitment for a blanket purchase order. One-sided giving rarely makes for a healthy relationship.
10. “If I, Will You?” A tactic to accomplish the previous point. Before agreeing to what they want, get commitment on what they'll give in return. “If I'm able to move your request to the front of the line, will you increase the order by 500?”
I believe I read this in an ad in an airline magazine for a negotiation seminar: “You don't get what you deserve; you get what you can negotiate.”
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Most of us negotiate something every day. Whether it's getting our kids to willingly clean their rooms, or hammering out an elephant-sized contract with more details than a politician has “special-interest” donors, our ability to haggle effects our results. Here are some useful negotiating tips.
1. Define Your Negotiables Other than Price. Inexperienced, unconfident, or plain old lazy reps take the easy route and drop price at the first sign of the other person seeking to get a better deal. Instead, first determine what you could offer, if needed, that has high perceived value to them, but little cost to you. For example, moving up the delivery date if they need it quickly, extending the warranty period . . . some distributors and suppliers like to throw in some products the customer isn't buying. This has high perceived value, and gets the customer to test the new product, which might pay off with future purchases.
2. Analyze Your Strengths, Their Needs. Before calling, list what you know they require and emotionally want, what you have, and what you want. You might know that this buyer always tries to pound you on price, but you also know you're working from a position of strength because you're the only one who has the quality of product he needs.
3. Set Your Objectives. Just like every call, define, “What do I want them to do as a result of this call, and what do I want to do?”
4. Aim High, Set Minimums. As part of your objectives, swing for the fence! Think big. Set the most favorable objective possible (one that is within reason). The richest sales reps I know can't believe anyone would think otherwise. Likewise, set minimums that you're willing to accept. You'll know how much you have to play with.
5. Prepare for their Possible Tactics. It's easier if you know the person. For example, knowing that Joe always starts with an outrageous request helps you prepare your counter-tactic. Otherwise, you need to dry-run through possible demands and tactics along with your responses so you're not blindsided into giving away something you didn't intend to.
6. Gather Information. As with all sales calls, the more you know the better.
7. Don't Give More Information (or Anything Else) than Necessary. I've seen sales reps offer price concessions that weren't asked for (“The price starts here, but I might be able to do a little better.”), and give up information that the customer used to ask for more concessions (“You mentioned another customer had additional training manuals thrown in free. I want those too.”)
8. Don't Split the Difference. It's human nature, but it costs you money. Let's look at the math. Your asking price is $50. They offer you $30. You counter with $40 and they figure splitting the difference is fair. Your tactic: come back with a pained tone of voice, “I might be able to do $46 or $47.” It's more likely you'll end up better than $40.
9. Trade Your Concessions. Get something in return. If you get them the better volume price, ask for a commitment for a blanket purchase order. One-sided giving rarely makes for a healthy relationship.
10. “If I, Will You?” A tactic to accomplish the previous point. Before agreeing to what they want, get commitment on what they'll give in return. “If I'm able to move your request to the front of the line, will you increase the order by 500?”
I believe I read this in an ad in an airline magazine for a negotiation seminar: “You don't get what you deserve; you get what you can negotiate.”
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Sunday, December 19, 2010
Be Persuasive When You Sell
By Sales Tracking Portal [ Free Online Sales Tracking Software]
When you are selling your products to clients, you don’t want to be pushy about it, you want to be persuasive.
Have you ever been around a sales person who seems to have everything going for him?
He has no problem talking to people, people like him, he seems to meet all of his sales goals so effortlessly.
This is not because he is lucky, or he was born with a natural gift when it came to selling. It is because he took the time and effort to make sure he went into the field well trained with the appropriate sales skills and product knowledge to make his sales seem as though they come without any effort.
This sales person, through hard work and sales training, has given himself the power of persuasion because he has the ability to find out what it is that his customers need.
When a sales person is being pushy with their product, it is a turn off to the customer. The last thing a customer wants, is somebody they just met up in their face who won’t stop talking. Pushy sales people come off rude, unprofessional and unknowledgeable.
From a customers point of view, a pushy sales person comes off as someone who just arrived from a one day sales training course on one particular product. Who is then sent out into the world to sell that product to anyone that will listen.
Most consumers can see right through this.
Persuasion takes subtlety. In fact, it is much easier to persuade someone to buy your product than to actually sell it.
Persuasion involves getting your customer to “buy in” to your product, or to see things from your point of view.
You must first get to know your customer. Take some time to ask a few personal questions. Such as where they live, what their occupation is, do they have any pets, etc.
People love to talk about themselves, so ask questions.
Once you get to know your customer, find out what their needs are. You can than match up your products to their needs.
Explain the benefits of your product, and give them a visual in their mind of themselves using your product. If you are selling baseball bats, give them the visual of using the bat to hit a home run in the bottom of the ninth too win the ball game.
Don’t do all the talking, listen to your customer. Listening is perhaps one of the most important sales skills you can posses. You can find out so much about your customer just by listening.
To persuade your customer to buy your product is to find a common ground with your customer. Smile, be courteous, answer their questions, learn what their needs are, listen to their concerns and try to alleviate them.
Once you have established what their needs are, tell them about the products you have that could satisfy their needs. Remember, don’t sell the product, tell them about the product, and what it can do for them.
Don’t think of it as selling, think of it as a normal conversation that you would have with one of your friends. Your sales will become more enjoyable, and they will also increase. Good luck.
This article may be reproduced by anyone at any time, as long as the authors name and reference links are kept in tact and active.
Jay Conners has more than fifteen years of experience in the banking and Mortgage Industry, He is the owner of http://www.jconners.com, a mortgage resource site, he is also the owner of http://www.callprospect.com, a mortgage lead company.
By Sales Tracking Portal [ Free Online Sales Tracking Software]
When you are selling your products to clients, you don’t want to be pushy about it, you want to be persuasive.
Have you ever been around a sales person who seems to have everything going for him?
He has no problem talking to people, people like him, he seems to meet all of his sales goals so effortlessly.
This is not because he is lucky, or he was born with a natural gift when it came to selling. It is because he took the time and effort to make sure he went into the field well trained with the appropriate sales skills and product knowledge to make his sales seem as though they come without any effort.
This sales person, through hard work and sales training, has given himself the power of persuasion because he has the ability to find out what it is that his customers need.
When a sales person is being pushy with their product, it is a turn off to the customer. The last thing a customer wants, is somebody they just met up in their face who won’t stop talking. Pushy sales people come off rude, unprofessional and unknowledgeable.
From a customers point of view, a pushy sales person comes off as someone who just arrived from a one day sales training course on one particular product. Who is then sent out into the world to sell that product to anyone that will listen.
Most consumers can see right through this.
Persuasion takes subtlety. In fact, it is much easier to persuade someone to buy your product than to actually sell it.
Persuasion involves getting your customer to “buy in” to your product, or to see things from your point of view.
You must first get to know your customer. Take some time to ask a few personal questions. Such as where they live, what their occupation is, do they have any pets, etc.
People love to talk about themselves, so ask questions.
Once you get to know your customer, find out what their needs are. You can than match up your products to their needs.
Explain the benefits of your product, and give them a visual in their mind of themselves using your product. If you are selling baseball bats, give them the visual of using the bat to hit a home run in the bottom of the ninth too win the ball game.
Don’t do all the talking, listen to your customer. Listening is perhaps one of the most important sales skills you can posses. You can find out so much about your customer just by listening.
To persuade your customer to buy your product is to find a common ground with your customer. Smile, be courteous, answer their questions, learn what their needs are, listen to their concerns and try to alleviate them.
Once you have established what their needs are, tell them about the products you have that could satisfy their needs. Remember, don’t sell the product, tell them about the product, and what it can do for them.
Don’t think of it as selling, think of it as a normal conversation that you would have with one of your friends. Your sales will become more enjoyable, and they will also increase. Good luck.
This article may be reproduced by anyone at any time, as long as the authors name and reference links are kept in tact and active.
Jay Conners has more than fifteen years of experience in the banking and Mortgage Industry, He is the owner of http://www.jconners.com, a mortgage resource site, he is also the owner of http://www.callprospect.com, a mortgage lead company.
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Saturday, December 18, 2010
A Favorable Juncture Of Circumstances
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Whenever decision-makers are willing to meet with you, you have reached a favorable juncture of circumstances. If you are then prepared to take advantage of this opportunity by building a level of trust with these individuals, there is a good chance that they will tell you enough about themselves so that you can easily recommend the appropriate package of your products and/or services that will meet their express needs.
Many top sales representatives feel that the sale is as good as closed if they can just obtain an appointment or meeting with a decision-maker. Their feeling is that their prospective customer must need their products or services or they would not be willing to set an appointment in the first place. The following checklist has been developed to help you make the most of a favorable juncture of circumstances and build the trust levels that are vital to your overall sales success:
Smile! No matter what kind of day you are having, if you will smile it will give those people you contact a feeling of acceptance. It will also help you feel better about your day. Tape a smiley-face or the word “smile” on your desk or telephone to remind you of the importance of a smile on your face and in your voice. Top sales professionals use the technique of thinking of a funny story or the latest joke they have heard just before meeting a prospective customer. Thinking about the story or joke almost assures them of having a smile on their face as they meet a decision-maker for the first time. Make sure you are smiling as you call for appointments or are conducting a sales presentation.
Shake your client’s or prospect's hand. A warm, firm, friendly handshake goes a long way in building a trusting relationship. It tells your clients or prospects that you are a friendly person and that you are glad to see them. If your handshake is limp it can leave a negative impression. It can be equally as bad to grip someone's hand too hard. Remember you only have one chance to make a great first impression.
Ask an open-ended personal question. (Open-ended questions require an explanation and can rarely be answered with a “yes” or “no”). Psychologists tell us that when a person reveals something personal about themselves, it builds trust.
It’s vital for you to practice using open-ended questions to create a short period of small talk (the prospect doing 80% of the talking), at the outset of your presentation. Remember, people buy from people that they trust. When people start to talk about themselves, they start to build a trusting relationship with you so that later, as you discuss your products and/or services, the things you say will be believed.
Research shows that people decide whether to follow the advice and buy from a sales professional in the first two minutes of the conversation. By following the track outlined above, you can make the most of your initial contact and truly turn each meeting of transaction into a favorable juncture of circumstances (a sales opportunity).
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Whenever decision-makers are willing to meet with you, you have reached a favorable juncture of circumstances. If you are then prepared to take advantage of this opportunity by building a level of trust with these individuals, there is a good chance that they will tell you enough about themselves so that you can easily recommend the appropriate package of your products and/or services that will meet their express needs.
Many top sales representatives feel that the sale is as good as closed if they can just obtain an appointment or meeting with a decision-maker. Their feeling is that their prospective customer must need their products or services or they would not be willing to set an appointment in the first place. The following checklist has been developed to help you make the most of a favorable juncture of circumstances and build the trust levels that are vital to your overall sales success:
Smile! No matter what kind of day you are having, if you will smile it will give those people you contact a feeling of acceptance. It will also help you feel better about your day. Tape a smiley-face or the word “smile” on your desk or telephone to remind you of the importance of a smile on your face and in your voice. Top sales professionals use the technique of thinking of a funny story or the latest joke they have heard just before meeting a prospective customer. Thinking about the story or joke almost assures them of having a smile on their face as they meet a decision-maker for the first time. Make sure you are smiling as you call for appointments or are conducting a sales presentation.
Shake your client’s or prospect's hand. A warm, firm, friendly handshake goes a long way in building a trusting relationship. It tells your clients or prospects that you are a friendly person and that you are glad to see them. If your handshake is limp it can leave a negative impression. It can be equally as bad to grip someone's hand too hard. Remember you only have one chance to make a great first impression.
Ask an open-ended personal question. (Open-ended questions require an explanation and can rarely be answered with a “yes” or “no”). Psychologists tell us that when a person reveals something personal about themselves, it builds trust.
It’s vital for you to practice using open-ended questions to create a short period of small talk (the prospect doing 80% of the talking), at the outset of your presentation. Remember, people buy from people that they trust. When people start to talk about themselves, they start to build a trusting relationship with you so that later, as you discuss your products and/or services, the things you say will be believed.
Research shows that people decide whether to follow the advice and buy from a sales professional in the first two minutes of the conversation. By following the track outlined above, you can make the most of your initial contact and truly turn each meeting of transaction into a favorable juncture of circumstances (a sales opportunity).
By Sales Tracking Portal [ Free Online Sales Tracking Software]
Friday, December 17, 2010
3 Easy Ways To Crank Up The Sales Volume
By Sales Tracking Portal [ Free Online Sales Tracking Software]
1. Supersize It!
Okay, okay... the real marketing term here us upsell it, but the word association takes me to McDonalds. You've been there... you pull up to the window, place your order and they always say... "Would you like to supersize that?"
What bugs me is that I instinctively say, "Yes!" After all, for a few cents more I'm getting nearly twice the amount of fries and beverage. We won't discuss the fact that a person with normal size kidneys couldn't possible drink the supersized drink before it goes flat... and that if I were to eat all of the supersized fries I'd be perfect advertisment for an acne medicine company... but hey, I got a good deal!
When your customers have their wallet out and are reaching for their money, they are ripe for shelling out just a few more bucks to sweeten the deal. In fact, about 50 percent will say yes without a second thought. It's the perfect time to offer an upgrade or an extra warranty.
2. After The Sale Offers.
Have you noticed that novel sequels seem to go like hotcakes? Once the author has caught the audiences attention with the first book, they can't wait to get their hands on the follow up.
The same idea carries over with your customers. A customer who is happy with the product and service you provided the first time, is much more open for a second experience.
The backend product you offer doesn't even have to be your own. Affiliate marketers are rolling in proceeds on ebooks that cover material associated with their products. It's an easy and painless process to market this way... the affiliate handles all the sales, while you collect the commission.
3. Reward Referrals
Customer surveys that ask 3 basic questions: What did you like best about the product?, How can we improve the value of the product?, and Who do you know that would benefit from the product?
In a nutshell, you are letting the customer know that his needs and opinions are important to you, and that you want to help someone else fulfill their needs too. You'll gain valuable insight into customer satsifaction, provide material for valuable testimonials, and get tips on potential customers.
Upselling, backend selling and referral selling work together to increase the number of sales you net, without increasing advertizing budgets. Try it... you'll be surprised at how easy it is to increase your marketing effectiveness within your current customer audience.
1. Supersize It!
Okay, okay... the real marketing term here us upsell it, but the word association takes me to McDonalds. You've been there... you pull up to the window, place your order and they always say... "Would you like to supersize that?"
What bugs me is that I instinctively say, "Yes!" After all, for a few cents more I'm getting nearly twice the amount of fries and beverage. We won't discuss the fact that a person with normal size kidneys couldn't possible drink the supersized drink before it goes flat... and that if I were to eat all of the supersized fries I'd be perfect advertisment for an acne medicine company... but hey, I got a good deal!
When your customers have their wallet out and are reaching for their money, they are ripe for shelling out just a few more bucks to sweeten the deal. In fact, about 50 percent will say yes without a second thought. It's the perfect time to offer an upgrade or an extra warranty.
2. After The Sale Offers.
Have you noticed that novel sequels seem to go like hotcakes? Once the author has caught the audiences attention with the first book, they can't wait to get their hands on the follow up.
The same idea carries over with your customers. A customer who is happy with the product and service you provided the first time, is much more open for a second experience.
The backend product you offer doesn't even have to be your own. Affiliate marketers are rolling in proceeds on ebooks that cover material associated with their products. It's an easy and painless process to market this way... the affiliate handles all the sales, while you collect the commission.
3. Reward Referrals
Customer surveys that ask 3 basic questions: What did you like best about the product?, How can we improve the value of the product?, and Who do you know that would benefit from the product?
In a nutshell, you are letting the customer know that his needs and opinions are important to you, and that you want to help someone else fulfill their needs too. You'll gain valuable insight into customer satsifaction, provide material for valuable testimonials, and get tips on potential customers.
Upselling, backend selling and referral selling work together to increase the number of sales you net, without increasing advertizing budgets. Try it... you'll be surprised at how easy it is to increase your marketing effectiveness within your current customer audience.
Tuesday, December 7, 2010
Sales Tracking Portal Forum is Live
Sales Tracking Portal Forum is live now. You can now share your idea with our community or request any help from Sales Tracking Portal support team easily on community.
Forum address : SALES TRACKING PORTAL FORUM
Sales Tracking Portal Home page : Sales Tracking Portal Home
Friday, December 3, 2010
Choose a software client relationship management (CRM)
In the Internet era, it is important to understand the expectations and needs of your customers. Especially if you bet on the web to grow your business. A dissatisfied customer can switch to the competition with a click. To limit this risk management software customer relationship management (CRM English) help you better define your business strategy. And words, to increase your profits. So how to choose the CRM is right for you?
· What is a software client relationship management (CRM)?
· Of what CRM professionals?
· Features and benefits of a CRM
· The functionality of a CRM
· Benefits of CRM
· Things to know before installing a CRM
· CRM software: which to choose?
· Office Software
· CRM-mode external or internal?
· CRM few generalists in external mode and / or internal
· Benefits of SaaS CRM
· The CRM thematic oriented SMEs
What is a software client relationship management (CRM)?
Solutions Customer relationship management is a major strategic asset for your business. They help you identify your best prospects, retain and keep track of your personal customers. The CRM solutions are especially suitable for sale on the internet or any other rapidly evolving business environment.
Of what CRM professionals?
Software for customer relationship management adapt to several categories of professionals:
- Finance
- Technology Products
- Pharmaceutical products and well-being
- Distributors (wholesalers, retailers)
- Customized products and crafts (in mail): customizable clothing, etc. gastonomiques products.
- Professions / Independent
Features and benefits of a CRM
The functionality of a CRM
CRM software has a specific role in each step of the sales cycle (pre-sales, sales, after sales).
CRM software will allow you, among others:
CRM software will allow you, among others:
- Manage your contacts (customers, prospects, partners)
- Identify and define the profile of best customers
- Organize communication with customers
- Track orders and invoices
- Anticipating the evolution of a market reports (marketing)
- Organize a personalized technical assistance
Benefits of CRM
The advantages of a manager of customer relations are primarily economic. CRM allows to:
- Increase company profits (margin on each client)
- Increase the rate of customer loyalty (which costs 5 times less expensive than win new)
- Save time by automating certain tasks (increase productivity)
- Optimize collaboration between the various company departments (sales, marketing, customer service)
- Improve responsiveness to a specific problem (eg declining sales figures)
Things to know before installing a CRM
A preliminary evaluation of your needs is essential before choosing the right software for customer relationship management. The installation of a CRM is a complex choice that changes in work organization and relations among company employees.
Choosing a CRM is not the same if you want to refine your communication strategy, or simply manage your contacts. An audit can be very useful to help you choose.
Choosing a CRM is not the same if you want to refine your communication strategy, or simply manage your contacts. An audit can be very useful to help you choose.
CRM software: which to choose?
So it depends on your type of activity, and the look you wish to expand. There are simple solutions, and other more complex
Office Software
A simple Excel spreadsheet or a database manager for relational data (such as Microsoft Access) may be sufficient to act as an accounting application / tracking orders or collect customer data.
Major drawback : the software has limited options (eg collaborative features, communication tools).
Major drawback : the software has limited options (eg collaborative features, communication tools).
CRM-mode external or internal?
You'll have to choose between outsourced CRM, that is to say, available via Internet on a remote server, and CRM internalized, that is to say installed on your corporate server:
- Selection criteria
If your priority is cost control, flexibility of use (eg on the move) and if your customer service has many employees, you will opt instead for outsourced mode in "SaaS".
The internal mode is best suited to newly established SMEs. Anyway, you can always upgrade to the external mode.
The internal mode is best suited to newly established SMEs. Anyway, you can always upgrade to the external mode.
- CRM external mode (SaaS)
The external mode means that applications are available on a remote server, accessible via the Internet. Multiple users can view and edit data simultaneously. SaaS involves the payment of a subscription to the hosting services.
Benefits of SaaS CRM
- Choice of formulas : Sales Tracking Portal, customer relationship and made to measure (custom applications).
- Best opportunities for collaboration and updates / upgrades instant data. use while mobile optimized.
- Economic : no installation costs (purchase of license), or mobilization of resources of the company
- Possibility of free trial.
Cons : Access to a remote server is the problem of data privacy, and that the dependence on external service.
Article Source: Kenny Blog
Monday, November 29, 2010
Bain trial: cost pressures in the IT is changing the business models of enterprise software provider
In spite of the suggestive end the crisis continues to IT cost pressures is to the companies. The accelerated changes in the IT industry to on-demand services. In future, software will be offered more frequently than online platforms that will change the business model of enterprise software provider sustainable. This is the result of the recent study by Bain & Company "Preparing for the Game On-Demand in the Enterprise Software Industry". Four trends influence this development strongly: 1) Software-as-a-Service (SaaS) licensing revenues distributed to longer periods, 2) increasingly integrated IT provider, the boundaries between hardware, software and services to increase, 3), the service share of IT value increases and 4) open source is establishing itself as a real alternative to traditional software offerings. The success of a SaaS provider to decide a solid platform strategy, the management of software and service partners, and the timely and long-term occupation of the customer interface.
The economic crisis has led to massive IT budget cuts. Same time, the demand on IT development and redevelopment in the company. The recent study by Bain & Company "Preparing for the Game On-Demand in the Enterprise Software Industry" shows that IT managers in companies respond primarily to the conversion of fixed costs into variable costs. Thus increasingly come on-demand software is used, which is paid to usability and needs no large initial investment. Accelerated this trend by vendors of software-as-a-Service (SaaS) such as Sales Tracking Portal - a specialist in customer Releationship management. In the SaaS model takes over the service provider installation, operation and maintenance of software and servers in its data center and provides the use as a service available on call. Customers do not charge for software licenses, implementation, maintenance and hardware. You only pay the usage-based service fee.
For software companies is about to grow with this development, a revolution that threatened their traditional business model. Because they typically earn first by a royalty on the sale and then long term maintenance, ie the regular troubleshooting and software updates. The annual maintenance cost is an average of 18 percent of the original license fee. For providers of Enterprise Resource Planning (ERP) maintenance costs have averaged 30 percent of sales and 40 to 60 percent of income. "To a result of the crisis increases the risk that many ERP customers negotiate their fees again, do not renew maintenance contracts, or switch to third parties that offer this service for half the price," Matthias Budde, partner and IT expert at Bain & Company. "A price decline in the maintenance of just one percentage point would cost ERP vendors worldwide about 750 million euros and 300 million € income." For this reason, it is for software vendors established even more important to invest in customer loyalty in the they increase the value of their maintenance service for the customer visible.
Four major IT trends will determine the future
The Bain study predicts that the software market over the medium term can not build on past growth rates of ten to 15 percent annually. The growth in 2015 will amount to less than five percent a year. Bain founded the four major trends:
1. SaaS is growing, however, reduce the margins of the software industry: software-as-a-Service enables the acquisition of new customer groups that have not been made complex software. In addition, existing customers can test new features without making large investments have to. SaaS will initially be used primarily on customer relationship management, content management and human resources management. SaaS raises additional revenue potential in new hybrid areas of product and service, but also substituted existing software sales and shares in smaller cash flows. High installation and operating costs for the software provider while price pressures threaten the income of the industry.
2. Back to integrated IT vendors: The differentiation of the industry in hardware, software and service provider begins to dissolve. Companies are, increasingly present in adjacent segments of IT and offer - as Oracle after the Sun acquisition - to integrated IT products. As in the 1960s, when IBM sold its server systems, including software, customers have less and less in the future take care of itself to the integration of components in its own data center. Buy server performance together with the required operating system or completed usable database server, without even match the hardware, operating system and software to another must.
3. Existing IT environments continue to increase the software maintenance costs: Customers who follow the traditional model of separate server architectures and applications that deal with the increasing complexity of their application landscape. Service-oriented architectures could prevail in reality have not felt as leverage to IT simplification. Therefore reinforces the growing complexity of business on the complexity of IT. The cost for the implementation and integration of new software is in relation to the licensing costs continue to rise.
4. Open source is becoming a real alternative: On operating systems and databases has open-source software already has a high double-digit market share. For business-critical and complex applications such as ERP still dominates the closed-source software support and maintenance fee by the provider. But even this model is increasingly under threat from open-source ERP such as Compiere and Openbravo, enabling, in particular in combination with flexible uses on-demand infrastructure services ("cloud"), massive cost reductions and today's enterprise software provider by sales and put pressure on margins.
Opportunities and risks for software vendors
On-demand software is undoubtedly the next evolution of the software industry. But the model is also associated with significant risks. SaaS requires high initial investment by providers, as initially set up an online platform and marketed to be. These high installation and operating costs are paid by the regular user fees only slowly. Sales Tracking Portal took ten years to be profitable. On average, it takes a year to generate the distribution costs for SaaS customers.
Bain & Company anticipated due to the high investment requirements that the SaaS market will consolidate relatively quickly to a few software providers per segment. The companies will be successful, their existing hardware, software and service customers can turn into productive SaaS customers. Many other IT vendors are suppliers of SaaS providers with a large buying power for servers, network infrastructure, software and systems integration.
Software vendors have two options in the medium term, to position themselves in the SaaS market: either they are suppliers of a SaaS platform, which is operated by a third party or develop itself into an integrated SaaS provider. Anyone who embarks on the path of a SaaS provider, must build a strong position as a software supplier, not to be replaced in the medium term, for example, by open-source or completely displaced from the market. Those who positioned themselves as SaaS providers need to build infrastructure capacity, or buy and acquire skills for managing a SaaS ecosystem, such as the integration of third-party or usage-based billing. In addition to an aggressive acquisition strategy for new customers, it must also have a migration strategy for existing customers from traditional license and maintenance business to the SaaS model type, aimed at possible long-term commitment to the more profitable, classical model.
IT service companies that want to join the SaaS business need, in addition to their existing skills - provision and management of IT infrastructure - capacity and skills in software development. End, they may enter into partnerships with leading software vendors, or take a software provider.
"Software-as-a-Service is to establish itself as an important segment in the enterprise software market. As the future landscape looks like and whether prevail primarily software companies or IT service provider, is still completely open, "says Bain expert Budde. In addition to developing start-ups such as Sales Tracking portal of software vendors like Oracle and SAP established in the direction of SaaS, as well as infrastructure and service providers such as T-Systems. "Ultimately the industry will probably develop over SaaS out," predicts Matt Budde. "It is likely that the existing business process outsourcing as a process-as-a-service was resumed and on-demand services. Thus, the SaaS cards would reshuffled. "
SaaS ISV Forum subnet: "Should I or should not I ...?"
For software companies or IT service providers who are faced with the question of whether and how to model business software-as-a-Service (SaaS) to enter this in the offers in the SaaS ISV Subnet forum with valuable information,
Article Source : Kenny Blog
The economic crisis has led to massive IT budget cuts. Same time, the demand on IT development and redevelopment in the company. The recent study by Bain & Company "Preparing for the Game On-Demand in the Enterprise Software Industry" shows that IT managers in companies respond primarily to the conversion of fixed costs into variable costs. Thus increasingly come on-demand software is used, which is paid to usability and needs no large initial investment. Accelerated this trend by vendors of software-as-a-Service (SaaS) such as Sales Tracking Portal - a specialist in customer Releationship management. In the SaaS model takes over the service provider installation, operation and maintenance of software and servers in its data center and provides the use as a service available on call. Customers do not charge for software licenses, implementation, maintenance and hardware. You only pay the usage-based service fee.
For software companies is about to grow with this development, a revolution that threatened their traditional business model. Because they typically earn first by a royalty on the sale and then long term maintenance, ie the regular troubleshooting and software updates. The annual maintenance cost is an average of 18 percent of the original license fee. For providers of Enterprise Resource Planning (ERP) maintenance costs have averaged 30 percent of sales and 40 to 60 percent of income. "To a result of the crisis increases the risk that many ERP customers negotiate their fees again, do not renew maintenance contracts, or switch to third parties that offer this service for half the price," Matthias Budde, partner and IT expert at Bain & Company. "A price decline in the maintenance of just one percentage point would cost ERP vendors worldwide about 750 million euros and 300 million € income." For this reason, it is for software vendors established even more important to invest in customer loyalty in the they increase the value of their maintenance service for the customer visible.
Four major IT trends will determine the future
The Bain study predicts that the software market over the medium term can not build on past growth rates of ten to 15 percent annually. The growth in 2015 will amount to less than five percent a year. Bain founded the four major trends:
1. SaaS is growing, however, reduce the margins of the software industry: software-as-a-Service enables the acquisition of new customer groups that have not been made complex software. In addition, existing customers can test new features without making large investments have to. SaaS will initially be used primarily on customer relationship management, content management and human resources management. SaaS raises additional revenue potential in new hybrid areas of product and service, but also substituted existing software sales and shares in smaller cash flows. High installation and operating costs for the software provider while price pressures threaten the income of the industry.
2. Back to integrated IT vendors: The differentiation of the industry in hardware, software and service provider begins to dissolve. Companies are, increasingly present in adjacent segments of IT and offer - as Oracle after the Sun acquisition - to integrated IT products. As in the 1960s, when IBM sold its server systems, including software, customers have less and less in the future take care of itself to the integration of components in its own data center. Buy server performance together with the required operating system or completed usable database server, without even match the hardware, operating system and software to another must.
3. Existing IT environments continue to increase the software maintenance costs: Customers who follow the traditional model of separate server architectures and applications that deal with the increasing complexity of their application landscape. Service-oriented architectures could prevail in reality have not felt as leverage to IT simplification. Therefore reinforces the growing complexity of business on the complexity of IT. The cost for the implementation and integration of new software is in relation to the licensing costs continue to rise.
4. Open source is becoming a real alternative: On operating systems and databases has open-source software already has a high double-digit market share. For business-critical and complex applications such as ERP still dominates the closed-source software support and maintenance fee by the provider. But even this model is increasingly under threat from open-source ERP such as Compiere and Openbravo, enabling, in particular in combination with flexible uses on-demand infrastructure services ("cloud"), massive cost reductions and today's enterprise software provider by sales and put pressure on margins.
Opportunities and risks for software vendors
On-demand software is undoubtedly the next evolution of the software industry. But the model is also associated with significant risks. SaaS requires high initial investment by providers, as initially set up an online platform and marketed to be. These high installation and operating costs are paid by the regular user fees only slowly. Sales Tracking Portal took ten years to be profitable. On average, it takes a year to generate the distribution costs for SaaS customers.
Bain & Company anticipated due to the high investment requirements that the SaaS market will consolidate relatively quickly to a few software providers per segment. The companies will be successful, their existing hardware, software and service customers can turn into productive SaaS customers. Many other IT vendors are suppliers of SaaS providers with a large buying power for servers, network infrastructure, software and systems integration.
Software vendors have two options in the medium term, to position themselves in the SaaS market: either they are suppliers of a SaaS platform, which is operated by a third party or develop itself into an integrated SaaS provider. Anyone who embarks on the path of a SaaS provider, must build a strong position as a software supplier, not to be replaced in the medium term, for example, by open-source or completely displaced from the market. Those who positioned themselves as SaaS providers need to build infrastructure capacity, or buy and acquire skills for managing a SaaS ecosystem, such as the integration of third-party or usage-based billing. In addition to an aggressive acquisition strategy for new customers, it must also have a migration strategy for existing customers from traditional license and maintenance business to the SaaS model type, aimed at possible long-term commitment to the more profitable, classical model.
IT service companies that want to join the SaaS business need, in addition to their existing skills - provision and management of IT infrastructure - capacity and skills in software development. End, they may enter into partnerships with leading software vendors, or take a software provider.
"Software-as-a-Service is to establish itself as an important segment in the enterprise software market. As the future landscape looks like and whether prevail primarily software companies or IT service provider, is still completely open, "says Bain expert Budde. In addition to developing start-ups such as Sales Tracking portal of software vendors like Oracle and SAP established in the direction of SaaS, as well as infrastructure and service providers such as T-Systems. "Ultimately the industry will probably develop over SaaS out," predicts Matt Budde. "It is likely that the existing business process outsourcing as a process-as-a-service was resumed and on-demand services. Thus, the SaaS cards would reshuffled. "
SaaS ISV Forum subnet: "Should I or should not I ...?"
For software companies or IT service providers who are faced with the question of whether and how to model business software-as-a-Service (SaaS) to enter this in the offers in the SaaS ISV Subnet forum with valuable information,
Article Source : Kenny Blog
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