Historically, conventional telemarketing has been attempted as one method to generate sales pipeline growth, however, it produces consistently poor results for enterprise solutions , yet is successful when applied to Demand Generation for simple products – why is this ?
In today’s market the selection and implementation of enterprise software and strategic or high value consultancy services will involve senior management in the decision process, with approval for these projects often involving 6 – 12- 18 months of investigation; scoping; budgeting and approval, prior to a customer committing to a contract.
As a result enterprise sales organisations need to identify senior executives early in the sales cycle and commence building trusted relationships with senior executives over time, and prior to the commencement of a formal procurement process. This early stage of identification, development of leads for the pipeline and nurturing of these relationships is critical to long term success with existing clients and new clients.
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Characteristics of
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Characteristics of |
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Solution is of high value > $100,000
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Product is of low value |
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Fewer prospects to sell to, often a few dozen or a couple of hundred prospects only.
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Thousands, or tens of thousands, of prospective customers. |
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C Level executives engaged
More difficult to get in contact with, usually guarded by Personal Assistants, and time poor
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Middle or junior Management engaged
Usually simpler to make contact with. |
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Dialogue is based around what the solution can deliver for the business, what problems it can address ie a "Business” discussion
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Dialogue is usually around the Features and Functions of the product ie a “Technical” discussion |
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Salesperson credibility is as valuable as the company brand credibility
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Credibility is established by the vendor’s brand |
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Long Sales Cycles, often 6 months +, multiple influencers in decision making process
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Short Sales Cycles, often only one influencer or decision maker |
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Budget is usually sought after engagement with potential vendors
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Budget usually exists, as part of an annual budget process |
Because of the radically different nature of solution conceptualisation, development and procurement for enterprise level solutions, in comparison with simple products purchasing, both the face-face selling process and the process of generating demand need to differ.
It is NovaTech Venture’s view, and the view of our clients, that conventional telemarketing is not suitable for generating demand for enterprise solutions, while being suitable for lead generation or discovery of simple product sales opportunities.
By “conventional telemarketing”, we mean
The running of ad-hoc campaigns, typically of shorter duration (4 – 6 weeks) conducted by younger staff (< 40 years of age), working from call centres.
Staff with limited sales experience, or no sales experience, who are remunerated commensurate with their level of experience.
Campaigns are usually focused on Volume calling, contacting a large number of medium-to-small companies.
High staff turnover is the norm (usually 30 – 60% per annum).
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