White paper. Secure Your Next Customer: Peeling Back the Layers of Industry Insight
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1 White paper Secure Your Next Customer: Peeling Back the Layers of Industry Insight
2 Acquiring a new customer has never been easy, but the process is becoming even more complex with increasing competition in a marketplace crowded with look-alike companies all boasting similar value propositions. Gone are the days when a company could attend a trade show and happily be the only business in the room selling a particular product. Simply put, competition is fierce and customers are always a click away from doing business with your competitors. As such, the probability of selling to a new prospect is only 5% to 20%, whereas the likelihood of selling to existing customers is 60 to 70% 1. Further, it costs six to seven times more to acquire a new customer than to retain an existing one. it s no longer enough to just get the signature on the dotted line; it s about retaining existing customers and fostering strong relationships. The statistics illustrate one overarching truth: identifying your next potential buyer and ensuring he or she converts into a longterm brand proponent is becoming critically important. It s no longer enough to just get the signature on the dotted line; it s about retaining existing customers and fostering strong relationships. So how do you scoop up qualified leads, win your next few customers, and move them down the funnel to become brand advocates? By deriving as much insight as possible about your target industry so you can sell better. It s imperative to have insight into a number of factors so you can acquire customers more quickly and strengthen your sales operation. Understanding the Phrase Industry Insight To compete aggressively and sign their next customer, businesses need to have a firm handle on their target market and that all starts by gathering industry insight. By having complete understanding of all the nuances and subtleties of your respective space, your company can make more informed marketing, sales, and lead nurturing decisions, and move prospects down the sales funnel more quickly. Insight can be gleaned in a variety of ways including: market research, competitive analysis, and business databases. Market Research Understanding your market including their pain points, budget constraints, and future needs is the first step to securing new customers. After all, if you don t have a handle on the needs of your prospective audience, you will have difficulty conceptualizing a sales strategy and perfecting your go-to-market campaign. There are two main ways to gain this insight: 1. Primary research: This type of research refers to information gathered directly from the source, your potential buyers. Data can be obtained through interviews, surveys, questionnaires, and focus groups as well as by analyzing current sales and the effectiveness of current campaigns. another step to winning your next customer is to explore the current strengths and weaknesses of your competitors. 2. Secondary research: This type of research has its drawbacks, namely that the previously documented information may not be credible or accurate depending on the source. This data gives you insight into market trends and target segments. While less time consuming than primary research, this type of research has its drawbacks, namely that the previously documented information may not be credible or accurate. Also, time spent hunting and sifting through multiple sources for useful intelligence is time lost moving your business forward
3 Competitive Analysis Another step to winning your next customer is to explore the current strengths and weaknesses of your competitors. Doing so may uncover gaps in the market that you may be able to take advantage of. For example, if you re a provider of cyber-security software, it s imperative to know that the government vertical, in particular, is actively working on regulatory proposals to protect networks of critical US industries from hackers and cyber spies. Therefore, they are increasingly turning to IT consulting companies; as such, these companies can be a great market for your technology. When the marketing department boasts valuable industry perspective, conversion rates can be significantly curtailed Similarly, if social media chatter reveals a shared frustration among your audience that they re often ignored by the companies with which they do business, then your business can differentiate itself by delivering unparalleled customer service and communication. Ask yourself the following questions when performing competitive analysis: What do our competitors do well? Where are they lacking? What seems to be the public sentiment surrounding our leading competitors? Why should customers choose us over other businesses? How can we set ourselves apart? Are there gaps in the market? Can we make a play in these areas? How does our prospective market seem to be responding to the core offerings of our competitors? What can we learn from this? Business Databases Fortunately for companies feeling overwhelmed by the concept of industry insight, there are a number of external sources designed to enhance account knowledge. These third-party databases can grant unprecedented insight into markets, key competitors, and prospective stakeholders and provide the qualitative and quantitative data needed to make informed decisions about securing your next customer. armed with this intelligence, your company can quickly emerge as a trusted advisor, which can considerably shorten the prospecting timeline. Comprehensive business databases have a trove of helpful information about your market including your prospective client s company overview, history, competitors, financials, and more. Armed with this intelligence, your company can quickly emerge as a trusted advisor, which can considerably shorten the prospecting timeline. Now that you know the keys to unlocking industry insight, how can your departments use this valuable data to excel? Let s take a look... C-Suite: Steering Business Decisions While your C-suite may rarely directly touch the customer or have a direct hand in prospecting and lead nurturing it does play a critical role in guiding customer acquisition strategy and product discussion. In fact, as revealed in IBM s Global C-suite Study, 55% of CEOs cited customers as the biggest factor when it comes to strategic vision and business strategy, and 35% of chief executives admit that they don t understand their customers well today. The same study revealed that C-level executives plan to leverage a variety of channels such as digital platforms, face-to-face interactions, and traditional 2 3
4 media to better engage with prospective customers and move them down the sales funnel. By possessing the right knowledge about potential customers, the C-suite can: Identify new market potential and unlock hidden areas of profitability Set corporate goals that are attainable for each department Conceptualize marketing/sales campaigns today s market research proves that buyers are more apt to stay with companies that deliver above par customer service. One of the greatest advantages of industry insight is that it gives the C-suite a better sense of the path for their strategic roadmap. For example, if that same company that sells cyber-security software learns that executives at consulting firms are looking to expand their areas of expertise to become one-source service providers for all IT and HR needs, that company has pinpointed huge market potential. Also, if market analysis reveals that pricing in your overall industry is trending down even though your pricing has remained constant your C-suite is given a window into why your customer acquisition process the past two quarters has proved futile. With this insight, chief executives are able to better set corporate goals. For example, today s market research proves that buyers are more apt to stay with companies that deliver above par customer service. In fact, customer service is the No. 1 factor when it comes to vendor trust. After all, 62% of B2B customers purchase more following a good customer service experience and 66% stop buying from a company after a bad interaction, according to Dimensional Research s 2013 Customer Service and Business Results: A Survey of Customer Service from Mid-Size Companies report 3. With this in mind, chief executives can set standards of excellence when it comes to customer service such as: communicating more frequently with stakeholders across social media platforms; using personal touches when it comes to prospecting; and relying on automation software to more efficiently follow up with leads. Lastly, the C-suite can use this information to drive campaigns. While executives need not get into the weeds of recruiting and prospecting, they can advise direct reports on how to originate stronger marketing and sales strategies that speak directly to the prospect and help convert leads expediently. Marketing Department: Fine Tuning the Go-To-Market Strategy Once the C-suite has identified viable market opportunities and strategic ways to reel in customers, it s up to the marketing department to develop a robust go-to-market strategy, one that sales can rely on to move individuals from suspects to prospects to customers quickly. And when the marketing department boasts valuable industry perspective, conversion rates can be significantly curtailed. there are a number of assets your department can create and gate so that sales can receive quality leads. Selecting the right communications vehicles When conceptualizing a go-to market strategy, it is important to remember that different communications vehicles can be used to communicate different parts of your 3 4
5 message. For example, if you are looking to highlight an underused feature of your flagship offering perhaps you can start running a Did You Know video series highlighting these specific uncovered features of your product. If you are instead looking to network with thought leaders and gain more earned media perhaps pulling together a robust web event program filled with valuable speaking engagements is a better avenue to explore. After identifying the right vehicle, forward-thinking marketing departments can take it a step further and glean relevant industry insight that can prove invaluable in originating scripts, campaigns and brand messaging. Armed with the right data, marketing departments can spread the word about new offerings through the right platform such as: Digital Marketing: A strong web presence is a great way to share news of product launches, M&As, market expansions, and trade show opportunities. Whether you are looking to spearhead a blogging platform, marketing strategy, or social media platform, a robust digital marketing strategy will enable you to reach customers faster and across the platform of their choosing. Premium Content: There are a number of assets your department can create and gate so that sales can receive quality leads, such as white papers and webinars. Including a few qualification questions along with the standard registration form to access the material will help to score the leads for the appropriate follow-up activity. Be careful to only gate content that provides a unique and valuable perspective. In-Person Events: There s a reason so many companies invest in tradeshows, conferences, and in-person meetings. It s because a great number of leads still crave face-to-face interaction prior to converting. After doing a deep dive into your industry, you will have a better understanding as to whether your company should be present at these events to stay competive and build relationships to secure new business. Learning the Lingo Figuring out how to talk about your product is critical. After all, there are certain tones and verbiage that work better with one audience than another. With the end goal of winning potential buyers, leverage market research to understand how to win customers. The right insight can steer your campaign messaging, making sure you are using the right terms and addressing the correct pain points. In addition, this valuable data can be used to develop custom call prep sheets like those provided by Hoover s to arm marketing and sales departments with the appropriate verbiage and messaging to connect with prospects from the first interaction. After identifying the right vehicle, forward-thinking marketing departments can take it a step further and glean relevant industry insight that can prove invaluable in originating scripts, campaigns and brand messaging. Fostering Marketing/Sales Alignment A significant responsibility of the marketing department is to provide sales representatives with the necessary collateral so that they can engage positively and seamlessly with prospects. When armed with information about prospective customers, the marketing department can create an open dialogue between the two departments, ensuring that each is working toward a common goal. And when marketing and sales are in alignment, the prospect can be won quickly. 5
6 Sales Department: Making an Impression Right Away Without question the sales process has evolved from solution selling to insight selling. As such, sales representatives have to be industry experts and help customers solve problems they don t even know they have yet. The only way to excel at insight selling is to leverage tools like market research, competitive analysis, and information from business databases to get a better handle on a prospective market. Sales reps have a limited amount of time to make an impression on prospective customers and stakeholders; therefore, it s paramount that they quickly engage key decision makers in meaningful conversation. Let s take a look at the chief ways industry insight can facilitate the sales process: 1. Start the Conversation off Right: Customers want sales reps who speak their language. Despite this, 42% of sales reps feel they do not have the right information before making a call 4. Gathering valuable market insight ensures that the sales team is armed with the right information to craft their sales messages accordingly and emerge right away as a trusted adviser. 2. Determine the Right Sales Tactics: There are a variety of sales tactics your team can use such as marketing, video conferencing, and cold calling, among others. By understanding the nuances of your industry, your team will be better able to tailor its prospecting approach. 3. Build Credibility: If you expect to sell in your space then your prospects expect you to know your industry inside and out. Fortunately, readily available data will arm your representatives with the information they need to become experts. In so doing, the potential customer will feel comfortable with the fact that your sales team has relevant experience and knowledge of their business. 4. Shorten the Time to Close: Understanding your prospects and their unique needs allows you to win customers quicker. With the right information at your disposal, your team can participate in fewer prospecting calls and get signatures in less time. When marketing and sales are in alignment, the prospect can be won quickly. What it Takes to Win the Customer The winning formula for securing that next prospect is constantly changing. In years past, having an aggressive product offering, competitive pricing, and a traditional go-to-market strategy was enough. But today, customers are more discerning than ever before. Technologies, such as the Internet and digital platforms, have complicated the sales prospecting process. While there are some unknowns in the customer formula, one ingredient is emerging as a dominant factor: industry insight. With industry insight your company will better understand its prospects, its key competitors, and the factors shaping your marketplace. It s the key to winning your next customer and uncovering hidden revenue waiting to be realized. 4 demandgen-report-sales-productivity-hampered-by-poor-data-lack-of-prioritza 6
7 About Hoover s Hoover s Inc., a subsidiary of The Dun and Bradstreet Corporation (D&B), offers proprietary business information through our online platform and integrated workflow solutions. Whether you are looking for leads, companies, or industries, our data on more than 85 million corporations, 100 million people, and 1,000 industries fuels powerful data cleansing, analysis, list building, and corporate linkage capabilities that accelerate your sales and marketing cycles. Hoover s Inc Airport Blvd. Austin, TX About Dun & Bradstreet (D&B) Dun & Bradstreet (NYSE:DNB) is the world s leading source of commercial information and insight on businesses, enabling companies to Decide with Confidence for 172 years. D&B s global commercial database contains more than 220 million business records. The database is enhanced by D&B s proprietary DUNSRight Quality Process, which provides our customers with quality business information. This quality information is the foundation of our global solutions that customers rely on to make critical business decisions. For more information, please visit Dun & Bradstreet, Inc All rights reserved. (DB /14)
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