The Demand Creator Blog

A new research report from SiriusDecisions presents a pretty damning view on the state of sales today. The 2018 Global Chief Sales Officer Study surveyed the heads of sales from 250 companies covering a broad array of business, from small business through large multinational businesses.

Here are some of the key findings:

• Fewer than 50% of sales reps are hitting quota
• At 70% of companies, fewer than 70% of sales reps are hitting quota
• Marketing is contributing less than (a paltry) 25% to revenue
• Sales cycles are getting longer for 64% of companies, with 27% seeing an increase of more than 30% in just the last year.
• For the typical company, sales reps spend just 27% of their time on direct activities involved in selling to customer or prospects. Higher-growth companies reported their reps spent 53% more time selling (though I'd point out that’s still only? 41% of their time spent actually selling).

I’ve got to tell you, I had to read the report twice before I believed what I was seeing. The last five years have seen greater investments in customer acquisition and sales than ever before, yet these numbers indicate that nothing has improved.

Of course, I really shouldn’t have been surprised to see these numbers as I’ve got front row seats to this whole thing. While I caution people to be wary in reading too much in surveys, this report is another piece in a growing plethora of evidence that shows that selling organizations have still not made the necessary adjustments in their approaches to sustain and succeed.

As the the great marketing strategist, William Shakespeare, said, “To gate or ungate your best content; that is the question?”

Over the last three years, there's been a growing roar questioning the wisdom behind one of today’s central practices for lead generation. An ever-increasing group of marketing and lead generation leaders are recommending that companies stop putting valuable content behind registration gates.

Drift, a martech provider focused on chat applications, and founded by former HubSpot Chief Product Officer David Cancel, was the first to call out the wisdom surrounding forms with the launch of the “No Forms” marketing campaign and positioning. Over the last year, HubSpot itself has questioned the use of forms as they’ve started talking about the use of “pillar content” and the impact it has on reach and search engine optimization (SEO). Over the last several months, more and more companies have “jumped on the bandwagon.”

The debate around forms vs. no forms is reminiscent of the Mac vs. PC debates of a decade ago, whereby otherwise intelligent and reasonable people seem to lose all rationale balance to advocate their position. Over the last six months, the call to eliminate forms continues to move more into the mainstream, and I see more sales & marketing advisors capitulating on the topic with little to no data to back up their conclusions. One prospect summed up where we find ourselves today when he asked me, “Doug, I haven’t even started using gated content and now I feel like I need to change before I start.”

Don’t get me wrong, it’s an important and valid question; one that should be at the top of the decision tree for any company executing a lead generation, inbound or content marketing program.

Growing revenue is difficult, complex work. Fraught with uncertainties, lack of information and changing market dynamics means that those who are good at growing businesses are always managing trade-offs in the decisions they make.

Charting your roadmap is difficult as well. There’s no shortage of “thought leaders” making grand claims that “this is the way to do it.” Of course most of these claims are made by someone that has a vested interest in what you do.

Making sense of all of the conflicting information, insights and “best practices” is often the biggest challenge facing growth executives. This is why I’m a fan of science. Science, done properly, is always a pursuit for the truth. When you find a truth, you’ll see that the principles apply to a variety of scenarios - even sales and marketing.

This topic came up recently on a podcast episode where I talked about my recent post on why hiring salespeople is not a smart strategy to stimulate growth. Needles to say, the post is a bit controversial. Anyway, in the podcast I talk about the principle of lift, the physics that make air flight possible and how this lesson applies to growing your business. I thought you would enjoy the excerpt:

I admit that I spend far too much time on social media, especially Twitter and LinkedIn. I can’t help it. There’s just so much great information and content available!

On the one hand, the access to insights, knowledge and even detailed process is extraordinarily valuable...but it’s also exceptionally dangerous. The reason is that the majority of organizations sharing valuable information have this in common:

• They’re sharing what works for them.
• They’ve got an interest in influencing you to see the world the way they do.

Now, neither of these things are bad, but they should put up a caution light to marketers, sales reps and executives committed to improvement and growth (personal and business). A quick review of my just my Twitter stream right now highlights the conflicting approaches being advocated. Here’s some of what I’m seeing:

I see it time and time again. A company, seeking to accelerate revenue growth and customer acquisition, makes the obvious decision to hire more salespeople. Every time (for purposes of accuracy, 95% of the time) I have the same reaction (as I bring my hands to my head in dismay):

NOOOO!!!!!!!!!!!!!!!!!!!

There’s a simple acid test that virtually any small or mid-market organization can use to determine if the time has come to hire salespeople. The acid test is “Do we have more high quality, right-fit leads than our existing sales team can manage?”

If the answer isn’t a definitive “YES!!,” then DON’T. HIRE. SALESPEOPLE. (YET).

I realize this advice is counter-intuitive. I understand that your board, your investors, hell, even your CEO (if she’s not the one reading this) are not going to like this take. I get that your VP of Sales quantifies his importance and domain by headcount (if some is good, more must be better). Your peers will look at you like you’re crazy, but I challenge you to think about this:

I share a lot on the topic of sales and marketing alignment, but I’m convinced that the successful organizations of tomorrow will move beyond merely aligning sales and marketing, a topic I’ll be highlighting in The 3 Places Where Exceptional Marketing Is The Difference Between Making The Sale...or Not webinar later this month.

To succeed in today’s noisy world, the terms “marketing” and “sales” are losing the valuable meaning behind their distinctions. These thoughts have led to a lot of work on our part focused on the increasing sales role that marketing must pick up in even the most complex B2B sales situations.

Earlier this week, I had a brief Twitter conversation with Pete Caputa, CEO of Databox. Pete provoked my thinking (as he always does) when he shared a question he’d been pondering for some time, which was “What can salespeople do to get people into the top of the marketing funnel?” I thought it was a great question, and a valuable consideration that I have not written about...until now.

It’s that time of year again. All across the land, sales and marketing executives, as well as salespeople themselves, are scurrying to put their 2018 sales plan together (for those who operate on a non-calendar year, I realize you’ve already done this).  

Plans are in development (with some even near completion) for the next 12 months.  Fueled by the euphoria of ending of a healthy year, the frustration from closing out a weak one or merely the optimism of what the new year and new plans can bring, companies are pulling everything together, with the goal of clarity, action and success.

I know this from being on more than a dozen calls with clients over the last three weeks helping them put these plans together. While the work is useful (as the saying goes, the value is in the planning - not the plan), I also get an empty feeling from all this work.  

Rarely are these plans actionable or useful. While the revenue targets outlined may be hit, when they are, they’re achieved in ways that are, how shall I say, less than predictable. As with so many traditional business disciplines, the effectiveness of most annual planning should be questioned and adjusted.

The biggest change over the last decade in B2B sales is the importance of your website and web presence. In 2007, your website supported and augmented your sales reps. In 2017, your sales reps augment your website. Make no mistake, your website is your number one, most important sales resource. An effective, sales-ready website positively impacts everybody - customers and salespeople alike.  

There are a number of advantages in this new world for growth-focused organizations. Your website works 24-hours/day, never calls in sick, doesn't complain and delivers the precise message you instruct it to, every time. Done correctly, your website also provides you with insights into what is on the buyer's mind, where they are in their buying journey and what key issues they're looking to address.

Unfortunately, it's still a very small minority of companies that are taking advantage of the power of their website. What's worse, the majority of business websites are sales killers. Despite your best efforts to enhance marketing and improve your sales efforts, what your website is, speaks so loudly no one can hear what you're saying (to paraphrase Ralph Waldo Emerson). Believe it or not, your website is crucial to your success. By the way, don't compare your website to others in your industry. That's not who you're competing with. A phenomenon called liquid expectations means that the experience (and expectations) that your customers and prospects have developed in areas having nothing to do with your company or industry, impact their expectations as much as anything.

Here are five of the most common ways that we see websites kill sales...make sure none of these apply to you.

The 2001 Oakland A’s had a problem. They’d won their division in 2000, but they were losing the league’s most valuable player, Jason Giambi, to the hated New York Yankees. What’s more, the A’s did not have the money or resources that their competitors had.

The front office, led by Billy Beane, had to figure out how they would replace Giambi and maintain the A’s winning ways. This is where he famously turned to his assistant GM, Paul DePodesta to develop a plan of attack.

This, of course, is the story that led to the bestselling book and movie: Moneyball. While DePodesta and Beane have achieved near hero status and as a result, went on to set a record for most consecutive wins (broken by the Cleveland Indians this past season) and repeat as division winner; they also highlighted essential lessons for every business executive.

In 2016, I spoke at Inbound16 to introduce and define the key principles that have come together to become the growing discipline of Sales Enablement. In that session, I defined Sales Enablement as the ongoing effort of aligning and optimizing all facets of an organization’s revenue generation process. It is focused on increasing the efficiency and acceleration of revenue generation tactics.  

I also highlighted that sales enablement isn't anything new. The world of sports and particularly baseball, have been implementing their version of sales enablement for more than a decade. They called it Moneyball.

So, let’s take a step back and think about the critical question that DePodesta was seeking to answer that led to the breakthrough and in turn, led to the book:

I recently was a part of a debate on Twitter with Brian Moseley about the role of salespeople, especially in SaaS. As you can see, Brian was saying the sales rep is dying.

I’ve lost count of the number of times that I’ve heard about the “death of the salesmen” over the past twenty years, and I’ve come to learn that one should never underestimate the resilience and the relevance of salespeople.

Brian then made an interesting point. He tweeted in response to me, “In SaaS at least, prospects don’t want a “demo” anymore, they want a “free version” with all the features.”

That got me thinking, as I’ve had the unfortunate pleasure of experiencing a multitude of demo’s over the last two months as we’ve been spending more time helping our clients navigate the technology they need to support their sales and marketing objectives.

Shortly before I was going to agree with Brian, I realized a flaw in the thinking. Most (like 90%+) demos are bad, disjointed, boring and self-serving. While I would agree that no one wants a bad demo, I disagree that no one wants a demo.

A quick note for those readers not involved in SaaS or not involved in giving demos- you can substitute the word “presentation” for the word “demo” and this post will still play to you.

Demos are still an important, potentially valuable touchpoint and the time has come to revitalize the demo. Here are some keys to making that happen: