Directly Affect Sales with Indirect Marketing Strategies

I just got off the phone with a long-time client, and his answer to my routine question, “how are things going?” was surprisingly different from the routine, “fine, and you?” Today, I was informed of the unpleasant privilege of being totally dependant on resellers, affiliates, and service bureaus for your corporate sales numbers. “If you come up with any ideas for getting these guys off their tails, let me know.” I have a few, so I thought I’d share with everyone.

Now, of course there are some obvious solutions that come to mind—up their quotas, cut their margins, threaten to cancel their contract—and all of these will work wonders on your long-term relationship, right?

Some of the best solutions hinge on human emotion and personal relationships. For example, instead of emailing leads to the next reseller in the queue, why not invest in a call. “Hi Joe, this is Nick. I’ve got a hot lead I need your help closing. I know you’re probably busy, but if you can get us in the door this week, I would really appreciate it.” Let them know you want their help. Acknowledge their importance in the sales process.

In addition to the human need to feel desired, we are also beasts that bask in praise. Some of the most productive resellers in the tech market are also the most highly decorated… and it’s a chicken-and-egg phenomenon. Give accolade, and you’ll soon find them earning even more. I encourage companies to “invent” new certifications, authorizations, and performance awards—enough to make sure every reseller has something to tout—and then offer maximum publicity for the recipients.

Finally, make sure your marketing budget and strategy reflects the importance of indirect sales. A strong focus on corporate branding that is absent of co-op marketing efforts can send mixed messages to your channel partners. The more you work for resellers, the more they’ll work for you. We structured a co-op marketing system for one client that allotted over 40% of their total marketing budget directly for co-op use. Their resellers planned events, ran ads, and even dedicated sales staff to this single product line. What more could you ask for?

Process-Centric Sales

In the high-tech world, we're constantly focused on improving processes. Manufacturing, R&D, testing, and engineering can all be improved by mathematical means like Six Sigma and the like. So, is sales such a process? Treated as a process, can sales be optimized in the same mathematical manner? Perhaps. But ask your customers how they feel about that.

I recently had a conversation with a client about restructuring their sales department to be "optimized" for performance. They would segment the talents for "hunting" and "farming." Sales warriors devoted to hunting down the next opportunity would close a deal, then hand it off to farmers who excel at account management and relationship building. Seems ideal, right?

But, nobody in the room was prepared to talk about the recent challenges that occured when several customers suddenly went cold after being introduced to their new rep. In situations like those, it becomes obvious that people buy from people, not companies or brands. Can customers be modularized and moved along an assembly line?

While nearly every aspect of product manufacturing and delivery is scientific... sales is still an art. Art cannot be improved mathematically. It cannot be taught, nor learned.

Have you ordered new phone service recently, or purchased any major enterprise software? It is this process-centric approach toward sales that has resulted in the poor customer service and impersonal sales style that plagues major companies today.

Thank Goodness for High Oil Prices

Oh, don’t worry. I’ve already set up a special email filter in anticipation of all the hate mail I will receive for this right-wing stand. No doubt, the title of this article raised your eyebrows a bit, and perhaps your blood pressure, but hear me out.

Let’s look at some high-level facts. During the century-old oil consumption market in the U.S., the only period when consumption has actually decreased was for a brief decade from the early 70’s to the early 80’s. What happened? Two things: Gas prices soared during the ’73 oil crisis while simultaneously the EPA, which was officially formed in 1970, had begun to actually bring about change in the lives of everyday Americans.

Now, I’m not here to say that EPA regulations were flawless. I recall as a teenager, rebuilding an old engine with my dad and wondering why there were belt-driven air pumps that did nothing but force fresh air into the exhaust. Nonetheless, forming the EPA was a first step toward conscientious environmental protection.

So, whatever your theories on the cause for oil prices today—be it the war or peak oil projections—one thing is true: recent prices have caused the first noticeable decline in our insatiable oil consumption to ever occur in my lifetime (Reuters, 5/06/08).

What can we learn from this history lesson? Oil prices in the 70’s forced a market shift and ultimately lead to the popularization of gas-efficient smaller cars (Which, incidentally, killed the muscle car. That does make me sad. But it was for the greater good.). So, I say “thank goodness for high oil prices” if indeed ten years from now we can look back and realize that the price pinch forced us into greener technological solutions for energy, transportation, and lifestyle.