Smarketing and Inbound Networking- Bedfellows?

Why might focusing on Entrepreneurs and Small Businesses be a good sales strategy?

I hope I am not letting the cat out of the bag, but this is the only strategy I can think of, right now, that makes sense for a sales director of a software company to pursue. Not that it should be the only one, but like everything- have more than one egg in the basket. Maybe it is the only one I can think of because it is one that I use.

First some background and a little bit more info. Inbound Networking is a coin recently termed by Pete Caputa at Hubspot. If you don't know his story, or HubSpot's, I suggest Googling it and drawing your own conclusions. (one thing you may not know, the inbound networking concept is how I founded and grew MiM).

Smarketing is a coin not-so-recently termed. Again, Google it- draw your own conclusions.

Question: is Inbound Networking a mini-Smarketing? (FYI: this is a question I was asked today)

Bottomline: can you create an economy of scale using a common resource pool to lower everyone's costs? The ones that are built on trust, work.

Customer Evangelists are Key to Growth

It is ONLY with this mindset and goal that Inbound Networking and Smarketing can work. Why?

Word of Mouth (WOM) is Smarketing strategy #1 (and only?).

• Faster: How a prospect finds you is the first step in the sales process. A trusted referral, or word of mouth, goes a lot further than any other means. This has always been true. (twist: consider now the microphone of social media)
• Cheaper: If done right, a referral that is closer to buying costs less because it takes less time and effort to generate and close.
• More profitable: Careful of your definition of profitable. We are speaking in terms of customer lifetime value (CLV). It might also be initial sale, but keep your eye on long term sustainable growth.

How does it work? Also an easy answer. When you are making decisions based on what is best for the customer, you are making better business decisions.

Small Businesses and Customer Evangelists as a sales strategy

It is easy to see how an enterprise or growing mid-sized firm can benefit from word of mouth. They have the resources and people to pay to organize that and make it happen. Then they call it a partner channel, or in-direct sales, or VAR program.

But how can it be profitable to target small businesses who are the least profitable margins (they cost a lot to get and spend the least amount)? Who has done this, made money and helped others to make money?

Ivan Misner. Again, Google it. So is the Smarketing and Inbound Networking concept a virtual version of 21st century BNI? Maybe.

Why should you care and what should you do about it?

Do your math. Does it seem like it should be a much higher number? Why isn't it?

Apply the 80/20 rule. How do you recognize who is the in the 80 versus the 20? What do you do next?

Answer these 4 questions. So what?

Want help? Just ask.