{"id":6518,"date":"2020-10-21T09:44:25","date_gmt":"2020-10-21T14:44:25","guid":{"rendered":"https:\/\/www.liongard.com\/?p=2517"},"modified":"2020-10-21T09:44:25","modified_gmt":"2020-10-21T14:44:25","slug":"demand-waterfall-9-strategies-to-optimize-your-msps-sales-cycle","status":"publish","type":"post","link":"http:\/\/64.4.160.99\/liongard\/blog\/demand-waterfall-9-strategies-to-optimize-your-msps-sales-cycle\/","title":{"rendered":"Demand Waterfall: 9 Strategies to Optimize Your MSP’s Sales Cycle"},"content":{"rendered":"

I recently participated in a\u00a0Facebook Live chat<\/a>\u00a0on the topic of\u00a0SiriusDecisions<\/a>\u202fDemand Waterfall\u00ae<\/a>\u00a0with\u00a0Axcient<\/a>\u2019s Matt Hemingway, Director of Growth Operations, and moderated by\u00a0Axcient\u2019s\u00a0Corey Banner, Director of Partner Success. We covered a lot of ground, and I wanted to share some of the\u00a0key\u00a0takeaways for how MSPs can better maximize their own demand waterfall.<\/p>\n

What is Demand Waterfall?<\/strong><\/h3>\n

Demand Waterfall is,\u00a0according to its creators, \u201ca framework for understanding how effective an organization is at identifying, attracting, engaging and qualifying that demand.\u201d Basically, it supports leaders as they methodically figure out which marketing and sales efforts will deliver the most return on investment (ROI).<\/p>\n

Why Implement Demand Waterfall?<\/strong><\/h3>\n

For MSPs, especially those small- to medium-sized operations with finite resources, it\u2019s imperative to make the most of your staff\u2019s time. Using\u00a0your\u00a0sales cycle and marketing data,\u00a0your managed services team can begin to pinpoint what activities make the most effective and profitable use of your resources.<\/p>\n

Though it should be common practice for all organizations, it\u00a0often is not.\u00a0When you start segmenting\u00a0\u00a0your data\u00a0and slicing\u00a0up\u00a0your marketing activities and sales cycles, you\u2019ll\u00a0begin to\u00a0gain\u00a0a better idea of what you should be focusing on\u2014and more importantly, what you\u00a0shouldn\u2019t<\/em>\u00a0be focused on.\u00a0You\u2019ll\u00a0notice\u00a0where\u00a0a lot of wasted time and money\u00a0might have been\u00a0spent on projects and activities that end up going nowhere.\u00a0You\u2019ll probably confirm some\u00a0of your suspicions about your sales cycle, but you\u2019ll probably also uncover some surprises about what you thought you knew!<\/p>\n

9 Strategies for Implementing\u00a0Demand Waterfall<\/strong><\/h3>\n

Matt and I discussed\u00a0a number of\u00a0things MSPs should be doing in order to reap the benefits of demand waterfall. Here are the top\u00a0concepts\u00a0to keep in mind:<\/p>\n

    \n
  1. \n

    Just start.<\/strong><\/h4>\n<\/li>\n<\/ol>\n

    You may\u00a0think your data is lacking for an undertaking like demand waterfall,\u00a0but you\u00a0have to\u00a0start somewhere. Smaller MSPs who can\u2019t afford a\u00a0customer relationship management (CRM)\u00a0platform like Salesforce have other, less expensive options including HubSpot, Zoho,\u00a0Freshworks\u00a0and others.<\/p>\n

    Even if those aren\u2019t options for your MSP, you can always use an Excel spreadsheet to track important dates in the sales cycle, like when a lead came in, when a sales rep made contact, etc.\u00a0This exercise will also help you identify where you may have some data gaps that you need to close.<\/p>\n

      \n
    1. \n

      Know your sales cycle.\u00a0<\/strong><\/h4>\n<\/li>\n<\/ol>\n

      Before you can do anything else, you\u00a0have to\u00a0know what your\u00a0MSP\u2019s\u00a0sales cycle looks like. Then, you can work up from there, looking at the deals you\u2019re closing and where they come from. Focus on what you know you have data\u00a0on and\u00a0start\u00a0asking\u00a0questions.<\/p>\n

        \n
      1. \n

        Work in both directions.<\/strong><\/h4>\n<\/li>\n<\/ol>\n

        As I mentioned, you\u2019re not just working from the top down and asking, \u201cHow much do we need to bring in to achieve our goals?\u201d You also\u00a0must\u00a0work from the bottom\u00a0up, looking\u00a0at what you already know about your MSP\u00a0and what your team can produce. A successful demand waterfall lets you meet in the middle to discover what you have the capacity to accomplish, what additional resources you need or how you need to scale back on goals if you don\u2019t have enough resources.<\/p>\n

        Working from the bottom up allows you to\u00a0have a realistic baseline for\u00a0your\u00a0goals\u2014which sets your sales team up for success.<\/p>\n

          \n
        1. \n

          Get curious.<\/strong><\/h4>\n<\/li>\n<\/ol>\n

          As an individual\u00a0sales rep, if you don\u2019t think\u00a0management is\u00a0serious about\u00a0demand waterfall, offer to help. It will at least get people thinking and start the conversation.\u00a0When you come in with an open mind, it takes you on an adventure\u00a0of discovery\u2014including\u00a0some\u00a0really cool\u00a0things you can take advantage of right away, as well as\u00a0a-ha moments that will have you asking, \u201cWhy were we even doing that?\u201d<\/p>\n

            \n
          1. \n

            Question what you think you know.\u00a0<\/strong><\/h4>\n<\/li>\n<\/ol>\n

            Use data to validate the \u201cfacts\u201d you think are correct about your team and their activities. For instance,\u00a0your salesperson\u00a0goes to trade shows\u00a0and\u00a0gets a lot of leads\u2014but what\u2019s the conversion rate? How many deals are\u00a0they\u00a0closing? Do those deals\u00a0take longer to close\u00a0than deals from\u00a0other types of events or marketing activities?<\/p>\n

            You might find that\u00a0some things are not as good of an\u00a0ROI\u00a0\u00a0as\u00a0you\u2019d thought, so you\u00a0have to\u00a0be willing to let go.<\/p>\n

              \n
            1. \n

              Make it a conversation.<\/strong><\/h4>\n<\/li>\n<\/ol>\n

              Marketing can\u2019t just hand off the leads to sales\u2014it\u00a0has to\u00a0be a partnership for demand waterfall to work.\u00a0Sales needs to be saying,\u00a0\u201cSend me\u00a0more\u00a0leads\u00a0like this\u00a0BECAUSE ______<\/em>,\u201d or, \u201cSend me fewer leads like this\u00a0BECAUSE ______,\u201d<\/em>\u00a0so marketing can constantly refine\u00a0and get\u00a0higher quality of\u00a0leads\u00a0for sales.<\/p>\n

              When you have these discussions, include all parties\u2014you never know where those golden nuggets of wisdom will come from!<\/p>\n

                \n
              1. \n

                Don\u2019t get defensive.<\/strong><\/h4>\n<\/li>\n<\/ol>\n

                It\u2019s easy to blame sales reps if they\u2019re not hitting their numbers, but you\u00a0have to\u00a0get to the bottom of\u00a0why<\/em>\u00a0that\u2019s happening. Find the missing link between what sales is saying and what marketing is doing, without getting defensive. I like to say, just go in there like Switzerland, stick to the facts and remain neutral.<\/p>\n

                  \n
                1. \n

                  Make it simple.<\/strong><\/h4>\n<\/li>\n<\/ol>\n

                  Data is great, but too much\u00a0data\u00a0leads to analysis paralysis. Make your\u00a0CRM\u00a0tool easy for your salespeople to work with.<\/p>\n

                  This requires discipline and the ability to compromise. As Matt says, on the operations side we\u2019re \u201cdata vacuum cleaners\u2014we just want all the info we can get!\u201d But your sales team doesn\u2019t want to be weighed down filling in\u00a0100 fields they don\u2019t see the value in.\u00a0That\u2019s when you start getting false positives, with sales having undocumented conversations to avoid the CRM hassle.<\/p>\n

                  To resolve\u00a0potential\u00a0disconnect, get input from sales (and marketing) on what fields to include, and pick the datapoints that matter most. It\u2019s all about\u00a0getting everyone in a position to win.<\/p>\n

                    \n
                  1. \n

                    Put your tools to use.\u00a0<\/strong><\/h4>\n<\/li>\n<\/ol>\n

                    The demand waterfall exercise is also a good time to\u00a0examine\u00a0all\u00a0the tools in your toolbox you might not be utilizing fully. At\u00a0Liongard,\u00a0we have seen our MSP partners use our platform\u2019s automated documentation to identify duplicate or unnecessary expenses within a prospect\u2019s system, which demonstrates real-world, bottom-line value to a prospect. Now more than ever, with\u00a0fewer\u00a0face-to-face meetings taking place, it\u2019s essential to be creative and resourceful, and get the most ROI from everything.<\/p>\n

                    To see\u00a0how your MSP\u2014including your sales team\u2014can benefit from\u00a0Liongard\u2019s\u00a0automated\u00a0documentation,\u00a0schedule a free demo<\/a>\u00a0today.<\/p>\n","protected":false},"excerpt":{"rendered":"

                    I recently participated in a\u00a0Facebook Live chat\u00a0on the topic of\u00a0SiriusDecisions\u202fDemand Waterfall\u00ae\u00a0with\u00a0Axcient\u2019s Matt Hemingway, Director of Growth Operations, and moderated by\u00a0Axcient\u2019s\u00a0Corey Banner, Director of Partner Success. We covered a lot of ground, and I wanted to share some of the\u00a0key\u00a0takeaways for how MSPs can better maximize their own demand waterfall. What is Demand Waterfall? Demand Waterfall […]<\/p>\n","protected":false},"author":9,"featured_media":6649,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[69],"tags":[],"class_list":["post-6518","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-liongard"],"acf":[],"yoast_head":"\nDemand Waterfall: 9 Strategies to Optimize Your MSP's Sales Cycle - Liongard<\/title>\n<meta name=\"description\" content=\"Take a deeper look at what activities bring your MSP the greatest ROI. 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