Sales Productivity Tip: Measure Key Sales and Marketing Ratios

William Hewlett, Co-Founder of Hewlett-Packard often said: "What gets measured gets done." You can increase Sales Productivity if you focus on Tracking, Reporting and Reviewing these Metrics on a regular basis.

Five Key Sales & Marketing Metrics

1. Closed Sales Ratio
2. Qualified Lead Ratio
3. Pre-Qualified Lead Ratio
4. Marketing Response Ratio
5. Sales Cycle Ratio

Here are the Five Key Sales and Marketing Metrics and their descriptions:

1. Close Ratio

Measures the number of Sales Orders Closed divided by the number of Total Sales Deals that were listed in a Sales Forecast.

Example: It takes 5 Qualified Leads to close 1 Sales Order. This would be a 20% Close Ratio.

2. Qualified Lead Ratio

Measures the number of Qualified Leads divided by the number of Pre-Qualified Leads in the Sales Funnel (or Sales Pipeline).

Example: It takes 10 Pre-Qualified Leads to get 4 Qualified Leads. This would be a 40% Qualified Lead Ratio.

3. Pre-Qualified Lead Ratio

Measures the number of Pre-Qualified Leads divided by the Total Suspects that responded to all marketing events.

Example: It takes 100 Suspects to get 30 Pre-Qualified Leads. This would be a 30% Pre-Qualified Lead Ratio.

4. Marketing Response Ratio

Measures the number of Suspects divided by the total number of contacts sent marketing communications documents.

Example: It takes 1000 names on list to get 20 Suspects to respond. This would be a 2% Marketing Response Rate.

5. Sales Cycle Ratio

Measures the Date a Suspect has first Contact with a company minus the Date an Sales Order is Closed/Booked by the company.

Example: It takes an average of 6 months for a new Suspect to become a New Customer (or book its first sales order). This would be a 6-month Sales Cycle.

Small Business Marketing - Which Tactics are Moving to the Web in 2010?

There will be significant change in Small Business Marketing in 2010.  According to several recent studies, Small Businesses are planning to increase investment in Web and Social Media Marketing Tactics...and reduce investments in more traditional Print, Postcards, Catalogs, TV, Radio Ads.  There are three big reasons why executives are changing their tactics:

1. Reduced Cost of  Lead Generation Programs
2. Better Measurement of ROI
3. Reduced Sales Cycles

...all resulting in faster sales.

The eMarketer chart below is a good summary of the top 2010 marketing tactics:

How to Hold a Virtual Party at Your Office or Home

For those people who can't be at your Party (especially your overseas friends and family),  set up a FREE Video Web Conference using Skype — that way they can participate live during the event. Here is how we we use Skype for our parties.

First, you need two Skype accounts.   It only takes a few minutes to set up the service  if you do not have it. With Skype,  you can make FREE voice and video calls over the Internet (Click to set up a Skype Account) You also need unlimited internet connections at both locations to place the Skype Calls (most people have this service these days).

Before the party starts, we set up the webcams and laptops in the locations that you want to connect.

Make sure the Webcam is plugged into your computer, you've installed the webcam software that came with it,  and that it's switched on.

Dial each other using Skype and turn on the video. Since the calls are completely free, we just leave the video conference up during the whole party.

Then people can wander over to the camera during the party and talk with each other, make bets on the game,  and taunt the other fans that are located in each party.

Have fun and may the best team win!

More Skype Info or Order a New High Quality Video Webcam before the party

2010 Consumer Electronics Show (CES) Summary and Favorite New Products

The Consumer Electronics Show (CES) featured more than 120,000 attendees, 2,500 exhibitors and 20,000 products....over 1.5 million square feet of show space to see. Over the last 2-3 years, CES became boring...with few new exciting products.  Apple Macworld had most of the new buzz and fun announcements.  Well.. not anymore!

The new decade started off with a bang.  Lots of new exciting technology and products for 2010 and beyond.

After attending the show, we are most excited about the following product categories:

• Almost all new HDTVs will be connected to the internet (this is my favorite big trend) - Due by Christmas 2010
• A Samsung see-thru laptop screen prototype...Expect them in about 3-5 years
• Apple's Tablet - Not announced at CES but everyone is talking about it - Jan 27th is the big announcement
• Project Natal - Using your hand movements to navigate the TV or Computer is pretty cool - Expect Games later this year and other products next year
• Flip-like Easy-to-Use Video Cameras were everywhere
• eBooks or eReaders will continue to grow rapidly this year - We expect the high-end eReaders to be be replaced with Tablets by 2011
• Blu-ray Players with 3D and Wi-Fi Internet Connections are due this summer
• Many Digital Cameras with GPS will wirelessly connect to your Internet Services
• HD Video Conferencing and Telepresence Systems will be available in 2010  for the Home, Home Office and Small Business at reduced prices using your HDTVs and Wireless Internet Connections
• Military-like flying toys that are wirelessly controlled (using Wi-Fi) by an iPhone and delivers a live video feed in flight - Very cool and due this summer

Many articles and TV Shows focused on the new 3DTVs. They looked terrific. However, we don't think most people are going to charge up their $100 3D-TV glasses every night to watch TV shows.

We do expect the 3D Adult videos (that are due out in the fourth quarter of 2010) to be responsible for many of the 3D HDTV sales during the next 1-3 years. Over the last two decades, the Adult industry always implemented new video technology products before the mainstream companies.

2010 CES List of Top New Product Updates Our Top 10+ CES 2010 show Products

How to Cut Your Mobile Phone International Calling Expenses in 2010

Everyone is looking for ways to cut costs in 2010 - including us. We are using a NEW mobile service called "Skype to Go" that is very easy-to-use and has been saving us a lot of money each month. The service lets you make international calls from any mobile phone at dramatically reduced prices, compared to typical phone company rates. You do NOT need your PC or Mac to make these calls.

We call London (UK) on a regular basis using an Apple iPhone or a Google Android MyTouch mobile phone. Our carrier, AT&T Wireless, offered us an international discount plan that reduced our mobile phone costs from $1.25 to 99 cents per minute when calling London. That sounded good before we tested the new "Skype to Go" Service.

A few months ago, we switched to using a "Skype to Go" number which dramatically cut our costs to about 2.4 cents per minute.. a 96-cent per minute savings. We talk about 8 hours per month on international calls and now save approximately $460 per month. Wow!

The "Skype to Go" number is very easy-to-use and set up.

8 Easy Steps to Set Up the "Skype to Go" Service

1. Go to the Skype Website
2. Select either the Pay-as-You-Go or Monthly Payment Plans to set up your account. There are NO long-term contracts to sign.
3. Important: Once Your Account is established, Look for the "Skype to Go" Set-up Button and Press it.
4. Select a "Skype to Go" Number. The number is your "Skype to Go" local phone number. Write it down.
5. Enter the Mobile Phone Number(s) you plan to use to call overseas.
6. Enter up to 10 phone numbers that you commonly call overseas in the Auto-Dial Fields.  Note: You can also directly dial any international number from your mobile phone when you are out and about.
7. Key in your "Skype to Go" number into your mobile phone Contact List to make life easier when you dial international calls.
8. You will get an email confirmation for your new account and your new Skype to Go Number..

3 Easy Steps to Use "Skype to Go"

1. Go to the "Skype to Go" Number in your mobile phone and Dial It
2. After the recording, either Select a Pre-Set Phone Number or key in the International phone number you are calling
3. That's it!

So... is There Anything else You Should Know?

The phone service has been wonderful, sound quality has been very good. However, we have heard from others that the Skype customer service could be improved. The good news is that there is NO contract! If you don't like Skype, and the money you are saving,  just cancel the service.

My other comment is, if you don't like new technology, and saving money is no big deal, then skip this service... but then again, you probably wouldn't be reading this article... would you?

If you want to instantly cut your monthly international calling costs, get a "Skype to Go" Number for your small business or personal use.

For More info click on this link and Search on: "Skype to Go"

Top 10 Things NOT to do When a Customers Calls!

I've had lots of bad experiences (and a few great ones) this HolidaySeason with automated phone systems and customer service centers.  I will not name the poor company experiences here...tis the holiday Season :)  However, if you want a great experience... call  Zappos.com with a customer service problem...and listen to the magic. According to a recent survey of 8,880 consumers across 16 countries, poor customer service cost an aggregate of $338.5 billion per year, the average value of each lost relationship across all countries surveyed costing $243.  2009  (Survey by Greenfield Online and Ovum).

It's hard enough to find a customer service phone number on a customer website.  However, when you make the call, the experience should not make the situation even worse.

Phone System Best Practices

I thought I would share some Phone System Best Practice Reminders for Small Businesses:

1. Don't transfer the customer to a non-working phone extension (or busy signal)
2. Don't trap a customer in your automated self-service (so you need to hang up, re-dial and start again)
3. Always have  the option to press "O" to get to a live operator at any time (only the better companies do this)
4. Don't make the customer wait too long  before reaching a live rep (especially during the Holidays)
5. Don't require customers to repeat themselves to several Representatives
6. Don't be cheap on continuous Representatives skills training  on how to answer inquiries
7. Don't forget to train outsourced Reps on US (or any host country) Culture and Thinking
8. Offer to send an email confirmation of the conversation (Great way to collect customer email addresses)
9. Always put your phone number on your "Contact Us" web page.
10. Don't forget to Thank the Customer for their Business

You may want to complete a quick audit of your customer service and phone system NOW to fix any short-term major issues.   However, plan on a more formal review and repair of your phone system, customer policies and call center  procedures in Q1 2010. If you are concerned about the cost, review the costs of lost business at the beginning of this article.

Important 2010 Tip

Don't forget to budget time and money for adding and  expanding Social Networking Programs. It's NOT an option anymore...but a "requirement" for high customer satisfaction.

Feel free to add comments on your own Holiday Customer Service Experiences... any great company customer service experiences out there?

Happy Holidays!

Small Business Tips on Sending out eMail this Holiday Season & in the New Year

Are you planning to send out Marketing eMail and eNewsletters in the New Year?  If so,  are you aware of  the relatively new Federal Laws in this area? In addition to following the law, these guidelines are just good business sense and company policy.  Your new and existing customers will appreciate your attention to these details.

An easy way to comply with the law is to use an outsource company for your mass Marketing eMails and eNewsletters. We have been using Vertical Response for the last 5 years.   The service is very easy to use and the customer service is outstanding.

Below is a copy of the Federal Trade Commission Law and a link to their website.  It is very easy to comply with the 7 mandatory requirements.

Federal Trade Commission -  CAN-SPAM US Law

Do you use email in your business? The CAN-SPAM Act, a law that sets the rules for commercial email, establishes requirements for commercial messages, gives recipients the right to have you stop emailing them, and spells out tough penalties for violations.

Despite its name, the CAN-SPAM Act doesn’t apply just to bulk email. It covers all commercial messages, which the law defines as “any electronic mail message the primary purpose of which is the commercial advertisement or promotion of a commercial product or service,” including email that promotes content on commercial websites. The law makes no exception for business-to-business email. That means all email – for example, a message to former customers announcing a new product line – must comply with the law.

Each separate email in violation of the CAN-SPAM Act is subject to penalties of up to $16,000, so non-compliance can be costly. But following the law isn’t complicated. Here’s a rundown of CAN-SPAM’s main requirements:

1. Don’t use false or misleading header information. Your “From,” “To,” “Reply-To,” and routing information – including the originating domain name and email address – must be accurate and identify the person or business who initiated the message.
2. Don’t use deceptive subject lines. The subject line must accurately reflect the content of the message.
3. Identify the message as an ad. The law gives you a lot of leeway in how to do this, but you must disclose clearly and conspicuously that your message is an advertisement.
4. Tell recipients where you’re located. Your message must include your valid physical postal address. This can be your current street address, a post office box you’ve registered with the U.S. Postal Service, or a private mailbox you’ve registered with a commercial mail receiving agency established under Postal Service regulations.
5. Tell recipients how to opt out of receiving future email from you. Your message must include a clear and conspicuous explanation of how the recipient can opt out of getting email from you in the future. Craft the notice in a way that’s easy for an ordinary person to recognize, read, and understand. Creative use of type size, color, and location can improve clarity. Give a return email address or another easy Internet-based way to allow people to communicate their choice to you. You may create a menu to allow a recipient to opt out of certain types of messages, but you must include the option to stop all commercial messages from you. Make sure your spam filter doesn’t block these opt-out requests.
6. Honor opt-out requests promptly. Any opt-out mechanism you offer must be able to process opt-out requests for at least 30 days after you send your message. You must honor a recipient’s opt-out request within 10 business days. You can’t charge a fee, require the recipient to give you any personally identifying information beyond an email address, or make the recipient take any step other than sending a reply email or visiting a single page on an Internet website as a condition for honoring an opt-out request. Once people have told you they don’t want to receive more messages from you, you can’t sell or transfer their email addresses, even in the form of a mailing list. The only exception is that you may transfer the addresses to a company you’ve hired to help you comply with the CAN-SPAM Act.
7. Monitor what others are doing on your behalf. The law makes clear that even if you hire another company to handle your email marketing, you can’t contract away your legal responsibility to comply with the law. Both the company whose product is promoted in the message and the company that actually sends the message may be held legally responsible.

The CAN-SPAM Act: A Compliance Guide for Business

More Inforamation on the FTC Website on CAN-SPAM