sales

The nation of Papua New Guinea has no idea how many people it has. The official count, according to this article in Financial Times, is 9.4 million, but other valid data shows that the population may be closer to 17 million. Apparently when asked to guess, the Prime Minister thought the population might be closer to 11 million.

That’s an entertaining factoid … until it’s not. How does a nation without any grasp on its population provide services? Collect taxes? Build schools and hospitals? Calculate wear and tear on roads? 

Before you finish shaking your head at the short-sightedness of others and go on with your life, let me ask you this: Do you know the number and value of leads in your sales pipeline right now? Do you know what percentage of those leads will ultimately close, and how long it will take for the average lead to move through each phase of the pipeline? Do you know what the dropoff will be from phase to phase? Can you make an accurate revenue forecast based on that activity? Are you using those accurate sales forecasts to create cash flow forecasts?

Most B2B small and medium-sized enterprises are still managing sales with 20th Century sales tactics.

• Exhibit at (or walk) trade shows to collect leads
• Run ads in trade magazines
• Buy industry lists
• Send cold emails
• Hire lead-generation services

Some (but by no means all) B2B SMEs have beefed up websites to get more inbound leads, and have their marketing departments nurture those leads until they are qualified, at which point the leads are thrown over the wall to sales. All these methods tend to be used as individual tactics, different sales people preferring some of those tactics over others. 

But that kind of I’ll do it my way you do it your way sales method throws strategy out the window and leaves business owners without the control they need to manage growth. Falling short on sales goals is obviously hard on cash flow and profits. But coming in far ahead of sales goals can cause operational and quality problems that reverberate through the organization and cause customers to lose trust.

What’s necessary is to consistently fill the sales pipeline with relevant leads and to be able to reasonably predict how that pipeline activity will relate to sales in both timeframe and dollars/pounds/euros/etc.

Many people incorrectly believe that sales forecasting is just a glorified term for dusting off the crystal ball and making a prediction, but that couldn’t be further from the truth. Companies using modern tools for sales management are able to build, manage, monitor, and analyze sales pipelines to increasingly accurate degrees. 

From a sales perspective this degree of control over sales is incredibly empowering. Each day the salesperson can look at what’s in the deal pipeline and proactively do the work to keep moving all their prospects and re-purchasing customers through to close. Even better, managing this way eventually leads to insight about what causes prospects to drop off between phases, which in turn can lead to the development of resources to mitigate the dropoff and improve close rates (and therefore, revenue).

From a management perspective, the benefits are even greater. Discussion about the challenges of managing distance employees has been a pandemic-era phenomenon, but challenges around maintaining visibility to sales team performance — many of whom have always worked from a distance all or part of the time — are well-known. Using the proper tools for sales enablement, sales managers can see how each team member is doing relative to managing their deal pipelines, coach them in specific rather than generic ways, and gather insights useful for training, product line and channel alignment.

If you are a member of a Fortune 1000 sales team, then this information is probably old hat. But for the majority of small and medium-sized enterprise owners, the tools necessary for this type of sales enablement have been unaffordable and largely unimplementable until very recently. 

Salesforce has long been recognized as a sales enablement tool, but in recent years HubSpot has added a suite of features specifically designed for holistic management of an account-based marketing (ABM) strategy. For the smallest businesses, Keap can be used for sales enablement as well, though without some of the automation and integration benefits more readily available with HubSpot and Salesforce.

Unfortunately, ineffective implementation of sales enablement platforms has left a bad impression on many sales teams. These problems are actually relatively easy to fix systemically, but resistance at the individual and sometimes cultural level frequently gets in the way.

At StrategyWerx, we embrace a technology agnostic approach to systems implementations. This enables us to remain objective about fitting customers with the right tools for their strategy, organization, technology stack, and culture. We maintain certifications in many different software applications and platforms in order to support our customers, and by maintaining relationships with platform providers we are also often able to pass on access to additional services and/or savings. Looking at the three main marketplace sales enablement tools, we tend to frame them in these ways:

• HubSpot: For larger small businesses (10 employees and up) through large enterprises with significant B2B sales pipelines that also pursue a significant marketing practice (inbound, outbound, and/or ABM). 
• Salesforce: For medium and large enterprises fielding large sales forces with more focus  on channel selling than marketing. Salesforce’s marketing features and automation are not as developed as they could be as they still rely on 3rd party tools.
• Keap: For small businesses (10 employees and under) that want to implement basic sales pipelines and integrate them with marketing. Keap’s toolset is much smaller than that of HubSpot or Salesforce, but the pricepoint is more accessible for small  businesses and toolset is sufficient for most companies at the beginning stages of growth.

With 80% of business owners concerned about labor shortages in 2023 and 38% already planning to hire, it’s no surprise that business automation is high on planned investment lists. Just remember that business automation isn’t just about administrative and operational benefits … sales and marketing enablement and automation should be a big part of those investment calculations. Not only will the right tools save you time and improve productivity and quality, they can also shorten the time from lead to invoice and increase the number of leads you convert.

Leveraging AI for Manufacturing Success 

The market for AI applications in the manufacturing sector is set to grow astronomically in the coming years. Market research and consulting group Precedence Research predicts that AI manufacturing market size will double by 2025 and grow from $5.7 billion in 2022 to $63 billion in 2023. These predictions reflect the enormous potential of AI for manufacturing.

While most of the talk about business applications of AI have been in the realm of generative AI (that is, text and image generators), the real power of these technologies lies in areas like inventory management and manufacturing. From process optimization to predictive maintenance, AI is poised to transform manufacturing in the next decade.

What Is AI?

It might be easier to begin by stating what AI is not: it is not Skynet from the Terminator films, and it is not Hal 9000 from 2001: A Space Odyssey. It is not intelligent in the way people are; it does not have a will of its own. It doesn’t now, and it probably won’t ever.

The basis of the type of AI that exists in reality involves machine learning. To quote our book on AI implementation, Beyond Profit: Responsible Adoption of AI for Business Growth, machine learning consists of show[ing] a computer program lots of examples of something—let’s say pictures, including pictures of dogs and names of dog breeds—and [telling] the program which pictures are dogs and which ones are not. Just as a dog may make mistakes at first when learning a new trick, the computer will also make mistakes when learning to recognize dogs. But over time, using more examples and consistent feedback, the computer gets better at recognizing dogs, until it recognizes dogs correctly every time. And that’s all that machine learning is—teaching a computer program to learn by showing it lots of examples and giving it lots of feedback.

Machine learning algorithms not only work with vast quantities of data, they also work extraordinarily fast, achieving in hours or days what might take a human analyst months or even years to sort through. This example should illustrate that we’re a long ways away from machines that think and act autonomously, if such a feat is even actually achievable. Nevertheless, machine learning is remarkable as it is, and the above example should already have you imagining the potential of AI for manufacturing.

Quality Control

Take the quote above and switch out dog breeds for machined parts like, say, aluminum expansion slots for a computer case. By analyzing thousands of examples, an AI model can “learn” to identify what a well-made expansion slot looks like and determine which ones coming off of the line are bent, cracked, scratched, or otherwise flawed. AI can do this much faster than human inspectors can. The program can then flag them for further inspection by a human inspector.

Predictive Maintenance

The best medicine is preemptive: taking care of yourself before a problem arises. The same goes for manufacturing equipment. Waiting until something breaks is much more expensive than taking preemptive action.

The same method used to train an AI to assist in quality control is used in AI-powered predictive maintenance. Predictive maintenance combines real-time monitoring with analysis of historical cases. As these case studies show, machine learning algorithms and artificial intelligence are already helping manufacturing companies predict equipment and electrical failures before they happen by comparing historical examples to the current status of a particular machine, part, or resource. Plant engineers can then use this information to make repairs or prepare for maintenance shutdowns in ways that don’t disrupt production.

Process Optimization

Efficient, thoughtful processes are where businesses succeed. Businesses put a great deal of effort into refining their processes because optimal processes allow employees to focus on doing their jobs rather than figuring out (or just remembering) how to complete each step of their job. This is one way in which UK-based startup DAFO is working to develop AI for manufacturing.

In this short video, DAFO co-founder Daniela Gonzales explains their Modular Operator Guidance Suite, an AI system designed for use in assembly plants. Using a form of AI called computer vision, the system helps the operator pick the correct component from the components on the table and then place the component in the correct position. The system will then let the operator know if they’ve completed the task correctly. It’s a great example of AI not replacing a worker but helping a human laborer focus on the task itself rather than on the steps of the task, enabling workers to work more efficiently with fewer errors.

Supply Chain Management

The events of the past few years have highlighted the need for a more robust, efficient, and flexible supply chain. Many large companies like Amazon and Walmart have been using AI to manage their supply chains for years, but this technology isn’t just for the biggest businesses anymore. Modern supply chains are vast and complex, and AI can help identify trends that human analysts might miss, such as shifts in consumer demand or raw material availability. AI trained on the right data can also optimize delivery routes and times and suggest the best ways to use available truck capacity, according to a recent Smart Industry case study of a large shipping carrier. The case study highlights the benefits of AI-supported supply chain management for manufacturers, including “significant increase in first-tender acceptance” and “a significant decrease in total transportation cost.”

Integrating AI into Your Business

The initial wave of hype surrounding text and image generators is dying down and businesses begin to realize the true strengths of AI lie elsewhere. Despite AI’s potential, the manufacturing sector has been slow to adopt these new technologies. A measured approach is a smart move given the amount of marketing hype surrounding these technologies, but you also don’t want to miss out on something that can give you a competitive advantage.

Before adopting any new AI-powered systems, know what you want to get out of them. Like any other tool, just having it around isn’t going to solve problems. You have to first identify where your current processes are failing and understand exactly how AI-powered tools can help improve them.

Also note that replacing a human workforce is not the ultimate goal of manufacturing automation. People live and interact in a physical world of the senses. We understand context, history, relationships, emotion, and how both employees and customers actually operate, all in a way machines just cannot. AI can augment the work of human safety inspectors, customer service agents, and QA specialists, but until we can get self-driving cars to stop mowing down pedestrians, it might not be a good idea to put people’s lives in the hands of AI or to believe that AI is a magic word that will solve all of our problems. Like any other tool, AI will only ever be as good as the human beings in control of it.

To grow a business, you don’t need to attract every single customer. You just need to attract the right customers. It’s something we’ve been helping our clients do for years, whether retailer, supplier, or manufacturer. In order to do this, you need a strategic growth plan, which involves reflecting on your business’s strengths, weaknesses, and values. When you know yourself, you get a better idea of the types of customers you can best serve. Account-based marketing (ABM) is a powerful tool for attracting, retaining, and serving the right customers.

What is Account-Based Marketing?

You may think that the recent emphasis on customized experiences is just a B2C phenomenon. In a retail setting swamped by choice, customers seek out customizable, personalized experiences with businesses that share their values, that speak their language. It’s not just the retail consumer looking to connect with a business it can vibe with. The same turn toward personalization is happening in the B2B sector. In this environment, it is more important than ever to focus on the right kind of client, to go into every marketing campaign with a clear sense of who you are and what you have to offer.

ABM is a sales method that, as part of your manufacturing sales strategy, will help you get focused and stay focused on selling to the right clients. At its core are just good marketing principles: creating targeted, persuasive messages for specific customers. In practice, it’s a method for aligning the work of marketing, sales, operations, and customer service into a unified team focused on generating revenue.

Marketing Is not Just for Retailers

In the B2B world, opportunities for growth can be limited by the small number of potential customers in your industry and long sales cycles. This is especially true for sales growth in the manufacturing sector. ABM can overcome these limitations by focusing on providing personalized service to a smaller number of high-value accounts.

Marketing and messaging can often seem too squishy and imprecise for B2B organizations, whose customers are driven more by research, data, and experience than by the kinds of emotional appeals that might sway the everyday consumer. The extent of many B2B organization’s marketing efforts is having salespeople get on the phone with suppliers or get in the car to talk with potential buyers in person.

If you want to grow, however, you’ve got to not only be proactive but focused and intentional, crafting the right message for the right customer. You craft that message by gathering data and building from what you know works. ABM is a data-driven, results-based approach that allows you to track sales activity and marketing effectiveness the same way you manage and track production activity.

Tailored Marketing Campaigns for High-Value Accounts

ABM is a strategy best suited to sectors where annual account value is high and number of sales opportunities is low. An ABM approach is about crafting clear, targeted messages for a targeted group of high-value customers. Contrast this with the traditional approach to marketing, in which you attempt to appeal to the broad universe of clients for whom you might be a “good” fit. The most likely result of that approach is time wasted chasing leads that amount to nothing. You will avoid wasted effort and convert more leads if you zero in on the clients for whom you are the “perfect” fit. ABM lets you target them in a way that shows them that you have taken the time to understand them and what they need.

Demonstrating to B2B decision makers that you understand and can deliver exactly what they need is crucial in manufacturing. Whether it's through webinars, blog posts, newsletters, ebooks, social media, sales emails, or paid ads, ABM ensures that you’re pushing the right content through the right channels for every stage of the customer journey.

Aligning Sales and Marketing Teams for a Cohesive ABM Strategy

The key to a successful ABM strategy is teamwork. Management, marketing, and sales can’t remain in their own boxes, passing customers back and forth to each other with no clear purpose or collaboration. All departments must bring together their expertise to:

• Create an accurate ideal customer profile
• Distill the essence and capabilities of the organization into a clear and targeted message
• Identify suitable clients
• Gather data on the best way to reach those clients
• Identify tools and information that will help educate the prospects at each stage of their buying journey
• Put the ABM plan into action

These bullet points do not denote a linear process but just some of the actions an organization will take while constructing and implementing an ABM strategy. Take for example a make-to-order manufacturing company experiencing a period of low demand. Their approach to seeking out new customers, which includes a PPC advertising campaign, a broad direct mail marketing campaign, and cold calling prospects, isn’t producing results.

With the help of StrategyWerx, the company shifted to an ABM approach as part of a sales organization upgrade. We helped them develop an ideal customer profile, conduct research on potential customers, and draw up a manufacturing sales growth strategy based on addressing those organizations’ business needs and pain points. To raise their profile among these potential customers, they offered a series of webinars which they marketed through data-backed targeted ads and supplemented with blog posts. They also promoted the webinar through a press release to industry publications. The result? They amassed a new list of warm leads from the webinar’s attendees.

While this webinar reached fewer organizations overall than their earlier scattergun efforts, the company realized a much better return on investment using this ABM approach. They effectively bypassed all the unqualified leads and went straight for the ones they know their business can best serve. Furthermore, they came out of the campaign with a much clearer understanding of their own goals and capabilities, stronger relationships with their customers, and new CRM infrastructure to manage accounts and integrate sales, marketing, and operations teams.

ABM Made Easy

On the surface, this might not look much different from a traditional marketing campaign. But the difference is the planning and the intention behind it. ABM is best used as part of a broader strategic framework, with marketing, sales, and operations all working from the same playbook. As ABM targets only the most qualified leads with personalized messaging, the revenue team must collect and analyze reliable data. The good news is that none of this is as daunting as it seems. We’re here to help you get started with the methods and technology that will unleash growth.

The tried-and-true methods of selling are still being tried, but they’re not so true anymore. Plastering social media everywhere and hoping for a response becomes less effective the more everyone does it (and the more algorithms change to boost paid content). It’s becoming impossible to find good on-the-road salespeople. If you’re able to put salespeople on the road, the process is frightfully opaque, as there’s no good way to know exactly what they’re up to.

Just generating more leads is not the solution. According to HubSpot’s 2021 Sales Enablement Report, half of all leads generated are not a good fit for your company. We need new sales methods for manufacturing that can more efficiently target, cultivate, and close more customers. That method is account-based marketing (ABM), and the key to ABM is sales targeting.

Targeted Marketing for Manufacturing

With an account-based approach, you’re not just throwing money at ads and hoping to see a return, or writing blogs just to have some SEO content on the website, or posting on Instagram and waiting to watch the follower count go up. That kind of untargeted marketing leads to lower returns, more time spent trying to convince leads of your value, more competition from companies that might seem more attractive to some leads. You don’t want to waste your time going after every lead. You just want the best leads. How, then, do you find the “best” leads? You start by identifying and then segmenting the market.

Segmenting the Market

Segmentation involves dividing a broad market according to some identifying factors. But first, you need to know what kinds of leads you want to chase. The most precise way to do this is with data, and you already have some valuable data on hand: your current client list. This can become a slow and complex task, but managing complexity of this kind is a lot easier when you have the right team with the right technology at your disposal. Identify the highly satisfied high-sales customers you are already serving and think about what they all have in common.

This is exactly what American Express did in the 90s to grow their business. They identified their high-sales customers—business executives who travel often—and created rewards programs for frequent flier miles and hotel points that would attract more of this type of customer.

Not all of those leads will have the same level of awareness of your company, so you won’t be able to reach out to them all in the same way. It’s the difference between asking for a bite of your spouse’s sandwich vs. asking for a bite of an acquaintance’s sandwich. One will take no convincing at all, while the other should be approached carefully. So take those leads and segment them into three categories:

• Little or no awareness of your business
• Some awareness of your business
• Much awareness of your business

Since you’ll be making appeals to potential customers at different stages of the buyer’s journey, you’ll have to craft marketing and sales messages that resonate with each segment’s familiarity and relationship with your business.

Crafting Personalized Messages and Solutions

Just because a lead has little awareness of your business doesn’t mean you should write them off as being a poor fit for you. You might be the perfect partner for them—they just don’t know it yet! These low-awareness leads just need to be nurtured. You have to craft messages that move them through the customer journey, from discovery to purchase and beyond. That means making a solid first impression on the low awareness group while getting down to the business of selling with the high awareness group.

Take for example a semiconductor manufacturer who identified its ideal customer and took the time to understand the traits their highest-value customers have in common. In the process, they learned more about distributors’ capabilities and motivations, two vital components of a successful manufacturer-distributor relationship, according to this McKinsey report. They then zeroed in on a few potential customers who were most similar to their ideal customer: distributors that can help with demand creation and that have global connections in the medical device industry.

One of the companies on the manufacturer’s shortlist had attended a webinar hosted by the manufacturer in the past. They go into the “high awareness” category. The others have never interacted with the manufacturer and are put into the “low awareness” campaign, which consists of a series of introductory emails. Those emails have nothing to do with sales and do not end with a call to action asking the receiver to book a meeting with a salesperson. Instead, they introduce the company, with a little bit about what they do and what their values are.

This is the power of sales targeting as a sales method for manufacturing: sending the same email to high-awareness leads as low-awareness leads will likely either feel too aggressive for low-awareness leads or leave high-awareness leads asking, “I already know who you are, so what?” More personalized messages, on the other hand, demonstrate that you’ve taken time to address each lead’s needs. It’s like taking that acquaintance out to lunch a few times and establishing a friendly relationship before asking them to share their food with you. The best part is that juggling all of this information is easy when you have the right technology.

The Way Forward for Manufacturing Sales

If the old ways of generating manufacturing sales aren’t working anymore, it might be time to try sales targeting. Rather than chasing after every lead, you’ll start zeroing in on the leads you’ll have the best chance of closing by reaching out to each of them with personalized messaging. With just a few simple new methods, you can meet your growth goals.