The Spigot Approach

The Spigot ApproachThe End of the Sales Funnel

ValuationCo

mpe

titive

Adv

anta

ge

Time

Market Cap

ValuationCo

mpe

titive

Adv

anta

ge

Time

Market Cap

“The ’90s called and want their sales system back!”

Paradigm Shift: A dramatic change in methodology or practice.

Paradigm Shift

• From “managed” messages designed to persuade

• To “authentic” messages designed to narrate

• Owned vs. Earned• Internal process to

customer process

Trends

1. 10,000 per day 2. Social Media3. On Demand4. Virtual Crowds5. Apps6. The Sales Paradigm Shifted• Sales Cycles• Consultative Sales• BMW Driving sales force

(Millennials)

Sales Cycle Example

1. Suspect2. Prospect3. Presentation4. Needs Analysis5. Quote6. Follow Up7. Contracts8. Closing

Two Unforgivable Problems:

1. Not your customers process for buying.

2. Post Sales?

Consumer Decision Journey

1. Consider

2. Evaluate

3. Buy

4. Research 5. Enjoy

6. Advocate

7. Bond

Customer Reviews

Current Approach

Marketing

Customer Service

Sales

Interruptive Sales

Approach

The Spigot ApproachMarketing Business

Development

SalesCustomer

Service

Database with Entry

Value

New Sales Role

• Automate, Automate, Automate• Take inbound leads• Plug into Consumer Decision Journey

– No prospecting, presentation, or closing skills needed

• Manage closing ratios• Better sales operations (paperless)• Company owns the client• Easier compliance• Easy to Recruit• Less commission

Commissions

Current Approach Spigot Approach

Sales/week 2 20

Avg Commission $1,000 $500

Commission % 50% 25%

Annual Comp $50,000 $125,000

Firm Comp $50,000 $375,000

New Marketing Role

• Manage CDJ, including post sales (Research, Enjoy, Advocate, Bond)

• Monetize the Customer Database

• Marketing Calendars• Less about “Creative

Design and Copy”• More about data

New Customer Service Role

• More than change of address and coverage questions

• Helps customers enjoy the product and become advocates

• Not a good target for outsourcing

Business Development

• Strategic Partners• Negotiate CDJ Presence– Consider and Evaluate – Post Sales Presence

• Lead Generation– Large volumes – Predictable volumes– High quality

• Intuitive Talent Position

A Few of My Partners

Carrier Checklist

Who is the real competitor?Document your customer CDJHire BD ManagersLook for people in your

organization who have an aptitude for partnerships.

Define a good “Partnership” Pursue New economy partnersPursue Old economy partnersRe-evaluate Channel Sales

Carriers Checklist

Update websites with information to focus on each step of the CDJ

Establish Internet presence where consumers Consider and Evaluate

Establish strategy for post sales: The Research, Enjoy, Advocate, Bond phases

Shorten and simplify the application process

GCI Case Study

• National Health Insurance Broker

• 1,800 agents nationally• Negotiated over 20 large

Strategic Partnerships• Data showed losing 90% of the

leads• Started inbound call center w/

20 agents across three shifts• Closed sales doubled

Google Compare Case Study

• Wants to expand into financial services

• Millions of leads/mo• No carrier has a “BD”

manager• Deal goes to a small

private broker

Com

petiti

ve A

dvan

tage

Time

Market CapMarketing

SalesCustomer

Service

Database with Entry

Value

BD