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8 Procedures to Take Control of Sales and Marketing - Articles Surfing
The Cash to Cash Cycle
Next Week: Accounts Payable
We*re sprinting toward that million dollar mark...and we*re only a couple strides away*
Decreasing inventory carried us over the first hurdle, and last week reducing Accounts Receivable sped us through the half-way mark. We*re making great time, so let's bring on the next mile marker * marketing and sales.
Increasing Overall Sales and Marketing Effectiveness
If you are an organization spending $500,000 or more on marketing expenses (e.g. advertising, trade shows, print materials, direct mail, etc.) then STOP! We found it again. Why you ask*? Because marketing has the greatest potential of being very unproductive. In fact, many marketing programs struggle to break even, and actually frequently lose money. So if we increase the overall effectiveness, then we can eliminate 50% or more of your wasted marketing efforts, which translates into $250,000 in cash.
So now, let's see how this actually works in a real-life scenario.
Sales and Marketing Company Policy Case Study
An organization with $500,000 in marketing expenses needed assistance. We examined their sales and marketing process to understand and quantify the lead flow, follow-up, and demand forecasting issues. Then we designed and implemented a process to improve their sales cycle efficiency and tie it closer to their customer's buying cycles. After the marketing reductions, we then reinvested $100,000 back into new processes for public relations and Customer Relationship Management (CRM), both of which were suffering badly.
The metrics we developed reduced their marketing expenses by 60% overall and increased their sales cycle efficiency from 40% to 60% within 6 months of implementing the new procedures. With these new processes and reports, the company now tracks sales cycle efficiency and life-time value rather than just sales quota achievement, as the measure of their sales & marketing effectiveness. The result: an extra $300,000 in cash plus a 50% increase in process capability (capacity).
As we have seen time and time again, time can be our best friend, if only we let it.
Methods to Design the New Sales & Marketing Process
Control of Sales and Marketing Policy and Procedures
Improve your sales cycle efficiency. Reduce your marketing expenses. Tie it closer to your customer's buying cycles. And take control of your sales and marketing program to let it work for you.
Improvement with Well-defined Policies and Procedures
With well-defined processes and procedures in place, you will increase efficiency by reducing ineffective sales and marketing programs. And, again, we make such improvements to create more cash on hand * all toward that million dollar goal and to cross the finish line.
Next week, we will hurdle the final $250,000 mark with the Accounting Payables function * so close you can see it.
Copyright © 1995 - Photius Coutsoukis (All Rights Reserved).
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