by Katie Weisz Estimated read time: 1 Minute CEO, Scott Gillum, had the chance to be a guest on “AQ Blog and Grill” with host, Alan Quarry. As Alan states on his website, the show “dishes up food for thought on entrepreneurship, branding, startups and more in this video-based weblog.” In this episode, Scott shared more on the building of Carbon Design Co., how he has built consulting success around the idea of “working differently”, and how Carbon delivers value-based services thanks to the team and a “smarter not harder” approach. Follow the conversation here:
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The beginning of a new year can be a perfect time to pause to reflect on all the things in life and business that have shaped us over the past 12 months.
For Carbon Design, 2019 was a year of interviewing amazing people, making bold observations about sales and marketing, and predictions on what’s coming in business.
Join us as we look at our readers’ favorite posts of 2019.
#1 Do We Need Outbound Sales Anymore?
Our CEO, Scott Gillum, joined the Gartner’s Sales & Marketing Thought Leader Roundtable where he posed the question, “Do we really need outbound sales anymore?”. This question sparked a lively conversation that continued well after the meeting.
#2 Scott’s Interview with Carlos Hidalgo, Author of “The UnAmerican Dream”
When asked who the book was written for, Carlos stated,
“I wrote it from the perspective of an entrepreneur and a business owner and a professional. But it’s really a book to say, stop. What is the frenzy for and reassess your personal and professional relationships and define success on your terms.”
#3 Unlocking Growth by Learning How to Message to the Value Chain
https://vimeo.com/329172662
“Who invited marketing to the sales pitch?” It was said in passing, and intended as a joke, but the marketing team got the point.
The comment was made in a recent messaging workshop. The head of sales expressed his frustration at the messaging being developed by marketing. His point — there was nothing different. It sounded like the same sales pitch they had been giving customers for years.
“The odds of it happening are 1 in 1500 or .0007%, about the same odds of being randomly selected to come onstage at a concert hall. Similar to Courteney Cox being pulled on stage by Bruce Springsteenin his iconic Born in the USA video, of course without the scripting. And now that I’ve dated myself, yes, the odds of this happening increase with age.”
Read on more on Scott’s ill-timed detached retina- and the lesson he learned during his forced downtime.
Follow along in 2020 for more tips on marketing, business, and thinking differently delivered directly to your inbox, subscribe to our newsletter at www.carbondesign.com/subscribe.
People, we have a people problem. The US unemployment rate once again hit a 50 year low at 3.5 percent this month. But that’s not the big story. Something more menacing is at work. The US crossed “peak employment” earlier this year — the number of job openings now exceeds the number of available workers.
This “crossing” has created a problem that now threatens to make buyers unreachable. It also changes the relationship between employee and employer. And it’s not just “skilled labor” (which gets most of the press) that is in rare supply it’s ALL labor.
Right now there are 400,000 entry-level sales positions on LinkedIn. According to CSO Insights, it takes 4 months to recruit a one and 9 months to make them productive. New hires who are mismatched for the role or company (15% according to CSO) turnover within the first 90 days. The time to recruit them could actually be longer than the time they spent with your organization.
With an average tenure of only 1.5 years and plentiful job opportunities, reps could and do leave before ever becoming productive. (To keep a revenue-producing position filled for at least 3 years you’re looking at least 2 hires, for 5 years at least 3 hires). And, you’re swimming in a very shallow talent pool, it’s become a decision of hiring a “warm body” versus an “able body.”
This is the reason sales organizations have become obsessed with hiring for the last few years. Crossing the “peak employment” threshold has only compounded the problem. Once demand exceeds supply, employees gain leverage. Add that to a generation, like Millennials, and you have a recipe for a whole new set of expectations that comes along with hiring. If you’re not providing a clear career path, advancement opportunities, upskilling/training, a vacation policy, etc that aligns with their expectations, they’re gone.
This “people problem” has unleashed machines to fill the void. Robo dialers are now making hundreds of dials a day, at a rate of 33 calls per connection (a dramatic increase from 3 calls to connect 15 years ago). AI has now made its way into ABM tools to try to help inexperienced reps be more productive and that’s about to create another problem.
We are now caught in a cycle of what Hank Barnes of Gartner termed “The Machine of More.” With Robo dialers now pounding the phones, sales has set its sight on outmarketing marketing — sales now sends more emails than marketing. This is all ending up on the doorstep of buyers, who according to Hank and Gartner, are now only spending 17% of their time during the buying process speaking with reps.
How did we get here?
Good economic times have created a mentality that there is a linear correlation between hiring and revenue — more reps equal more revenue. As if the number of deals and buyers are keeping pace with this expansion. It’s a number game, namely volume. Cast a wider net and bring back more fish…except that’s not happening.
CSO Insights’ annual Buyer Preference Study finds that only about half (53%) of sales representatives are achieving quota. So what are smart sales managers doing? Knowing that about half of the sales force is ineffective, they’re hiring (or trying to) more reps to make their numbers.
How do we get out of this mess?
Here’s a handful of ideas to consider for 2020.
Long term focus on new hires – according to Seleste Lunsford of CSO Insights, who spoke last month at the University of Texas Dallas Sales Summit, 60% of the sales organizations surveyed are not providing sales coaching. Let that sink in. We’re hiring entry-level positions, who might not be a good fit for the role, and we’re providing little to no coaching. Finding, training, coaching and retaining salespeople has to be a focus. Focus on hiring half as many reps and make them twice as productive.
Focus on conversion, productivity, and profitability – this “mentality of more” is not confined to sales. Investors, you’re complicit in this as well. If you’re working at a SaaS company with investors on the board, you have probably been given the mandate to work the numbers — X in the top produces Y out the bottom. That’s incorrect and it’s creating the wrong behaviors. To be rewarded in today’s market a startup has to focus on driving profitability. The easiest way to do that is to narrow your focus and double down on conversion rates. Do more with less, and do it better.
Watch for sales creeping further into marketing – as I mentioned earlier, ABM tools are using AI in the goal of helping reps become more productive. Here are two areas to watch that are dangerous. The first is DISC personality profiling. Scraping the digital domain, AI tools can build individual buyer profiles in about 2 seconds. In a sense, sellers can now create “one to one” personas that do not align with typical marketing created “one to few” personas. This conflict will cause mixed messages to be sent to an audience who is increasingly becoming tone-deaf. The second challenge is curation tools which allow sales reps to send what they believe to be relevant content to buyers in hopes of being “value-added.” It’s instant ammo in their email spam gun. It’s also a missed chance to use the information to generate more engaging thought leadership content.
Enable buyers – this is the key to changing the tide. Allow buyers to go as far into the sales process as they want and let them choose how and when they want to engage reps. Remove all barriers to information they might need to make an informed purchase decision. Provide digital guidance on how to find the right content specific to their needs on your site or other sites (this will require improvements in UX). Become the source of the most credible information available. According to Gartner, buyers don’t trust reps to provide ALL the information needed. Let buyers do the curation, and you facilitate the process of helping them find it.
Finally, If you take anything from this post, remember these two numbers. First, only about half of sales reps are making their quota, (a decline for five straight years according to the CSO Insight report). Second, 17% of the buying process is spent speaking with sales reps (down from 19% the previous year).
These are two lights flashing something is wrong. Buyers are signaling to stop, but instead of picking up that signal we are ignoring it and the machines are throwing more at them.
The reality that we face today is that the supply of sales reps now has exceeded the demand from buyers for them. We have reached “peak sales hiring.”
At the Sales Summit, I asked the audience how many of their organizations have asked customers what they want, how buyers wanted to be sold to, a grand total of zero hands went up. If you want to create a sustainable competitive advantage, especially if demand slows, find out how buyers want to buy. We have to stop shouting at them and start listening. The machine has to stop.
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During this interview, Scott and Brent dove into the top three things sales and marketers should be thinking about for Fall and their 2020 budget.
Listen in as Brent dives into what he believes are the most important things to be focusing on when it comes to sales, marketing, and the customer experience in the buying process right now.
Over the last few months, I have had the opportunity to attend industry events, review new research on buyers and sellers, work with clients on very difficult challenges and observe the behavior of sales and marketing teams working together… and I’m worried.
I’m worried because of the following. Albeit a small sample size, I am seeing the issues below across organizations of various industries, big and small.
– Confusing Activity for Performance, Again
Despite our ability to measure more than ever I have observed organizations rushing campaigns out the door without proper performance metrics defined and/or proper mechanisms in place to capture performance data. And when flagged, the client took a pass on putting them into place because it would take “too much time.” The behavior of go, go, go is pervasive.
– Overreaching Procurementand IT
This observation is unique. It’s the first time I’ve ever seen the procurement and IT group change the requirements on making a purchase decision. The group changed the client sponsor’s key decision criteria to bring in their preferred vendor costing more than $100,000 above the next highest bid. The owner of the work did not get what they wanted and the organization ended up paying more for it. Someone has too much budget.
– Basic Building Blocks are Missing or Skipped
Database quality is owned by everyone, and no one, customer profiles lacking basic information (like emails), performance metrics are missing or not being tracked, process metrics are in place but not used, call list are not being bounced up against do not call list, agencies lacking knowledge on their clients customers and products, and on and on and on.
– Lack of Accountability
Large chunks of money being dropped on media without accountability on the performance of the spend, and sales comp not aligned to organizational revenue objectives and goals. Also see bullet above.
– Silver Bullet
Related to bullet #3, over reliance on the MarTech stack to fix basic problems that they were not intended to fix. The ramping up of Data Science departments to run sophisticated analysis on data that they may, or may not, realize is compromised. Marketing investment decisions being made using outdated marketing optimization models that only output “spend more” recommendations.
– Status Quo
Lack of courage or motivation to make difficult decisions that would impact performance for fear of being disruptive. Control issues that prevent real change from being made by team members who see opportunities to improve performance but may be perceived as threatening to others. “Things are good, don’t rock the boat.”
– Doing the Dirty Work
This is the most disappointing of all of the things I’ve observed. Good marketing is hard work. It requires research to understand buyers, products and competitors. And guess what, it takes time. Recently, I was in a meeting about a new positioning for the organization. Everyone was excited by the idea but the marketing team lost it’s enthusiasm when they heard the amount of work needed to take to bring the idea to life in a campaign. Breakthrough work requires ergs of effort to make it great. It’s the price you pay…get over it.
Much of what I have observed are symptoms of good economic times. Organizations flush with budgets, high demand for products and services, and growing profits are causing organizations to operate inefficiently. The reason this is so concerning is because we’ve seen this movie before, most recently in 2008.
Things are in motion. The trade war, the presidential election, candidates promising to come after industries and corporate profits, big tech getting squeezed by governments over their size and privacy issues.
For the past five years we’ve been able to get away with average efforts. Strong economies and demand bring about waste. “Doing” became more rewarding than “thinking.” Put more in the top and even more comes out the bottom. But those days are numbered.
Being smart about what you do and why, will become a necessity again. Doing more with less will become the reality. So as you do you 2020 planning, have a mindset that a recession is coming. Try taking an approach that assumes you have 20% less budget than last year. Here are 10 things to consider.
What would you cut to reach a 20% reduction, and why? Lay out 3-4 different scenarios.
What would you invest in in Q4 2019 to set you up to be more efficient in 2020?
If you had to turn off 2-3 tools what would they be, and why?
If you had to shut something down to reinvest to get a better return what would it be and where would you put the money?
Could you move something off of your budget line and onto someone else?
Are you paying for something that you shouldn’t or it benefits some other group?
Could you centralize something and get greater efficiencies?
Could you consolidate vendors to be more efficient?
Could you do less and produce better results by sticking to a limited set of priorities?
Could you have one centralized campaign and tie it to several products/markets or goals?
The goal is to become 20% more efficient. Even if the recession doesn’t come next year you’ll be able to clean up some of the sloppiness that comes with good economic times.
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It’s not unusual to find companies referring to their relationship with clients as “partnerships.” It’s common to find client logos on vendor websites. But how often do you see an agency or consulting firm’s logo on client websites? If you visit www.evepark.ca – that’s exactly what you’ll see.
Carbon Design, represented side by side with, a global architecture powerhouse, a world-class designer, and the project principal: the innovative green-tech engineering firm, S2E Technologies Inc. Under S2E’s leadership, these firms are inventing a new consumer category – one that integrates bold new ideas about housing and transportation – and radically resets the carbon footprint of both at the same time.
CASE STUDY
Did you know, that until recently restaurant owners only cared about the cleanliness of the food prep area? Most customers, and owners, assumed that if someone got sick after dining out it was because of food poisoning. That was until Carbon Design and Challenger Inc. helped “challenge” the norm by showing owners that half of the outbreaks in a restaurant were caused by people to people transmissions.
Now owners know where the “hotspots” are, and as a result, restaurant are cleaner than ever. Grab your face mask and enjoy a safe night out, but you may want to avoid the raw oysters 😉.
CASE STUDY
How do you do it? By giving clients and users what they want. Using the remaining budget that was to be used to update the site with the new branding we designed and built an entirely new site on a new platform. But audience needs are constantly evolving so the work never stops. Our team continues to audit performance and make improvements.
As a result, the two-year journey has paid off with the site being named #1 in the industry. Even more importantly, their key priority areas (site search, attorney profiles, etc.) were ranked in the outstanding category. Proving that excellence is a journey not just a destination.
