Do You have the Right B2B Marketing and Sales Model?

Let’s face it – there are many businesses (perhaps yours) that are struggling because they have the wrong marketing and sales model for their particular time and circumstances. For example, the business may utilize a direct sales model when a full or hybrid channel model would work better. Or there may be resources such as inside sales (sales development) and the Web that are not being used effectively.    

Any conversation about the right marketing and sales model needs to start by acknowledging that there are three major ways to accelerate revenue. 

1. You can increase the number of customers who buy your products and services – more people buy.
2. You can increase the average size of each transaction – each buyer spends more.
3. You can increase the frequency of purchase – people buy more often.  

All three of these are worthwhile goals that can have enormous impact on your organization. Improve one area and you will have a good year. Improve all three and break out the champagne. The trick is to craft a marketing and sales model that accomplishes these goals at a reasonable cost of transaction (including all marketing and selling expenses). For example, the direct sales model will probably work best for increasing the average transaction size, but it will also be the most expensive on a per-transaction basis. Conversely, a Web-based or inside sales-based model will be less expensive on a per-transaction basis, but will not usually deliver the highest transaction size.  A hybrid, or channel sales model, falls somewhere in between.

Many companies choose their go-to-market model based on what the company’s executives (CEO, sales and marketing) have experienced in the past, and what competitors are doing. While these two factors are worth a consideration, they should not be the deciding criteria.  The two things that are most important are first, how prospects like to purchase, and second, what is the best model to achieve the three revenue acceleration objectives listed above.    

 A final thought:  If you are in a position where marketing and selling seem to be a constant struggle; it may have more to do with your sales model than your message, product, lead generation strategy, or the quality of your sales force. Fix the model and the rest will be easier, more productive and more enjoyable.

Carpe Occasio,

Chris Ryan