Business Development 2010 Accelerating Success Through Marketing Webinar Series: 1.0

1. Business Development 2010Accelerating Success Through MarketingWebinar Series: 1.0 Presented by Don Neal December 16, 2009

2. Good Afternoon & Welcome • The good news – 20% sales growth in 2010 • The bad news – what got you here won’t get you there • YOU can’t change anyone’s mind

3. If You Don’t Like Change You’ll Like Irrelevance Even Less. General Eric Shinseki, Chief of Staff US Army

4. The fact Is: • MSCA STARS have been cool on marketing • The need for marketing has heated up

5. Survey Says… What Grade Would Your Sales Force Give Your Company On Their Marketing Efforts? A = 1 B = 1 C = 11 D = 5 F = 2

6. Our Objectives This Afternoon: • Get serious – adoption • Get ready – plan • Get started – take action

7. Getting The Most From This Webinar Series • Your role – ambassador, coach, leader • Learn to teach - socialize and sell; give this presentation • Dedicated notebook; take notes – convert • Ask questions throughout – interact • Lock webinars #2, #3 and #4 in on your calendar • Get sales involved • Call in Q&A session

8. Where Is The Growth in 2010? • New construction: new / new • Switch / move business from a competitor • Up-sell / Cross-sell What %: • < 20% • 20% - 50% 3. > 50%

9. Current Customers • 65%+ of sales come from existing satisfied customers • 100% or more of profits come from 20-30% of those customers • Customer acquisition is six times more expensive than retention • A 5% increase in retention can boost profits from 25% to 125%

10. Survey Says… What is The Acquisition Cost For a New Customer? • “Very good question” • “Not sure” • “Don’t know” • “A lot!” • $500

11. Profits from Reduced Operating Costs Profit from Price Premium Profit from Increased Purchases Profit from Referrals Base Profit Acquisition Cost Year of Customer Life 0 1 2 3 4 5 6 Customer Loyalty Profit Analysis

12. Survey Says… 65% Don’t Know the Latent / Potential Value Within Current Accounts!

13. What’s Holding You Back? • Measuring the value

14. Survey Says… Do you know the ROI for your 2009 sales & marketing investment? 100% Responded No!

15. What’s Holding You Back? • Measuring the value • The appropriate budget

16. Survey Says… From 16% to 0.2% Average 3.78%

17. What’s Holding You Back? • Measuring the value • The appropriate budget • Dedicated marketing staff

18. Survey Says… From 10% to 100% Average 20%

19. What’s Holding You Back? • Measuring the value • The appropriate budget • Dedicated marketing staff • Marketing database

20. Survey Says… 50% have segmented their database in the 20% - 60% - 20% tiers

21. What’s Holding You Back? • Measuring the value • The appropriate budget • Dedicated marketing staff • Marketing database • A clear plan of action • Confidence and belief

22. What is Marketing? A process that creates conditions for a sale to occur…and an on-going relationship to be cultivated!

23. Marketing Awareness – Decision Continuum Loyalty Purchase Customer Engagement & Value Trial Consideration Interest Awareness Cost & Time

24. Survey Says… 5 Most Successful Marketing Activities: • Cross-selling existing customers • STAR literature • Speaking engagements • Word of mouth / referrals • E-mail / trade shows

25. Identify the Top 10 Conditions • Awareness • Leads • Referrals • Cross-sell • Up-sell

26. Sales Objectives & Metrics • Profitable revenue growth • 100% share of spending • Revenue / technician • Revenue / profit per location • Revenue / profit per customer • LTV • Sales /acquisition costs • Servicing costs

27. We Have 3 Basic Lever to Pull • Audience • Message • Media

28. Who Is Your Audience? STP

29. Scoring and Segmentation • Incorporates monetary value, sales trends and recency into a single score • Based on core product sales only Current Value

30. Scoring and Segmentation • Scores clustered into three segments: A = high value B = moderate value C = low value Current Value by Segment

31. Scoring and Segmentation • Based on performance of site versus peer group of similar sites • Underperforming peers = higher potential • Potential value score is a surrogate for information to be gathered directly from customers over time Potential Value Scoring Process

32. Scoring and SegmentationThe Customer Database Customer database (64, 831) A1 A2 A3 A High B Medium 1 2 3 B1 B2 B3 C C1 C2 C3 Low Current Value Score Potential Value Score

33. Customer Segmentation A1 A2 A3 B1 B2 B3 C1 C2 C3 Potential Value Current Value

34. Customer Segmentation $3.0 MM $8,248 $850 $1.8 MM $4,947 $504 Total Sales $6.7 MM $18,527 $2,518 Ave. Sales/Site Ave. Potential/Site $7.5 MM $1,509 $180 $1.3 MM $667 $2,325 Total Sales $3.9 MM $1,285 $700 Ave. Sales/Site Ave. Potential/Site $405K $203 $2,848 $576K $192 $1,309 Total Sales $2.7 MM $55 $109 Ave. Sales/Site Ave. Potential/Site

35. Customer Segmentation A1 A2 A3 B1 Enhanced, customized programs B3 Current programs C2 C3 B2 C1

36. Are You Talking To Me? The Message

37. Does it stick to the roof of your mind?

38. The Messaging Pyramid Headline Give you control Proves a point Facts Creates a picture Anecdotes, Examples & Case Studies Reinforces the message Bottom Line

39. Customer Benefits By Segment Customized On-Site Audit Program On-site Training Support Customized Benefits Dedicated Customer Care Account Manager Customized Marketing Training Programs Trade Show Specific STARS Offers Ready to Use Customizable Marketing Materials National Brand Awareness Promotion A1 A3 B1 B2 C1 B3 C2 C3 A2

40. What is Your Media? The Plumbing

41. Four Categories of Media • Paid • Shared • Owned • Earned

42. What Media Can You Best Leverage? • Collateral • Signing • Vehicles • Direct mail • Uniforms • Word of mouth • Billboards • The web

43. Media Effectiveness

44. Are You… • Serious? • Better prepared? • Going to get started ?

45. Next Steps • Indentify who needs to be sold and on-board • Identify the 2010 sales objectives and allocate 3% to marketing • Assign resources – staff • Segment your customer base • Identify your STARS differentiation • Involve the salesforce • Begin developing your marketing plan

46. Thank You!don@privateequitymarketing.com703-915-8421