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Technology firms waste millions on unused collateral

Technology firms waste millions on unused collateral80% of collateral created by Information Communications Technology businesses is never used. This slightly surprising fact costs industry players millions.

Why does this happen?

The root of the problem is that sales and marketing don’t work together in an effective way. It is still often the case that business leaders do not ask marketing to account for the revenues its activities create, what impact it has on share of wallet or how it creates and fine-tunes a database of prospects with relevant information that helps sales people to sell. When this is the case, sales people disengage from marketing. Marketing should be about outcomes, not output. A lot of ICT marketing focuses on creating glossy brochures and gaining column inches in publications. What businesses forget to ask is; “What is this collateral meant to do? Who is it aimed at? What do I expect to happen when someone comes in contact with it?”

On the other hand, sales people spend almost a quarter of their time creating their own collateral. Clearly, this compounds the waste. It also lowers the quality of how a business presents itself to its customers. Sales people focus on their pitch first and are usually insensitive to how good it looks.

What steps can you take to stop this waste of time and money?

What can organisations do to change this status quo? There are two critical steps. Firstly, bring sales and marketing together by creating a shared understanding of what each function should be doing to increase revenues. Secondly, change how marketing is measured. Introduce success measures linked to business performance.

When you take these two steps you will find that your sales people have more time to sell and that your marketing people are energised because they have the opportunity to make a real difference to the bottom line.