Know-How Exchange : Strategy

Sure, here's a common one, regarding how much demographic information is captured when a visitor signs up for or subscribes to a product online. As a marketer, I know that the more demo questions I require--or even ask--the more my sign ups will be depressed. In fact, for every field over 3 we can see up to a 30% decrease for each field. So I want to ask only the absolute minimum questions, e.g., for an enewsletter, I would ask only for email address, if I could get away with that. Don't even need the name, unless I felt personalizing the communications to the signee (Dear Jill) would lift response (it might, might not). For a mailed product, like a print mag sub, obviously need address and if a paid product credit card, etc. But that's not demo--title, function, sales volume, # of employees, industry, etc. And it's that info that Sales wants!

So if I ask for all that on signing up for a free enewsletter, I will expect far fewer potential customers to complete the form. But sales will have more info at their command to work with. I have goals, they have goals, and in this scenario there is a built-in tension between the two.

The solutions are problematic. As a compromise, I may ask for name, email address, and one or two max demo questions, even tho I don't like it. Or I can go after what we call progressive registration--once we gt the prospect registered or signed up, we then ask for the demo info later, often with an incentive to encourage response. But we know the response rate, as in surveys of this kind, will be far less than 100%.

As a marketing or audience development director, I have encountered this conflict in three companies, sometimes with anger manifested.

The conflict I fist think of is related to the goals of each department.

Marketing's goals (as often backed up by their bonus and review structure) is overall market growth (often increase in profits). Sale's goal is based only on sales, and usually there is a strong connection in their pay related to how much they sell.

Marketing is also thinking longer term, where Sales is often just thinking about their next closed sale.

Sales may not be willing to take on the harder challenge of convincing someone of all the benefits of the sale in order to close the sale at the highest sales price, but instead will take the easier route of discounting a product immediately to quickly close a sale. This helps a salesperson's pay as it increases commission, but cuts into profits which is not something Marketing wants to see done.

A common problem is also companies in transition.
Here's an example:

Imagine a business is a commodity sales and distribution operation. (e.g. merchants in steel, pharmaceuticals, etc etc). But with margins under pressure, and a market in maturity, often 'added value' services are seen as a way to increase margin as well as making customers more 'sticky' to you.

In this situation sales is under pressure to maintain volumes, while marketing is trying to reposition the company as a 'consultant' or 'partner' as opposed to merely a product supplier.

But commodity sales reps can not become consultants overnight, if at all. Even though the long term future of their company may depend on it....

Train them. Replace them. These are both options.... but you still need to keep the current volumes in order to even make the transition.

p.s. I'm not sure I've ever worked with a company where sales are marketing were not in conflict - but I think that's a healthy sign of the reality that demonstrates their tasks are different even if the end goal is the same. So, sales and marketing... group hug!

Goals of each department ??

I am with MGoodman on this one, if each department is not in tune with the GOALS OF THE COMPANY, then some one needs to get fired :)

Personally, I don't believE in having the sales and marketing functions as two different deparments, I much prefer that the two disciplines, whilst clearly different, work together in a single department called sale and marketing and report to a single head.

I also require that sales people and marketing people take turns at doing each others jobs for several months at a time so that they clearly understand the challenges of each role.

it is very very important that marketing people get out in the field from time to time and actually talk to customers instead of sitting behind a desk analysing data and pretending that they know the market.

This forum is called marketing profs but there are frequently questions about sales. I am longoing for the day when they launch its partner site 'salesprofs'.

Come on guys! when are you going to launch SALESPROFS ??

:)))

Good luck,

Matthew