As a result of working with numerous OEM firms over the years we have also interacted with a massive variety of EMS providers and have come to realize some truths and trends about EMS industry-specific marketing and sales functions and the professionals with these roles and responsibilities.
An underlying issue with EMS sales effort is outreach. Getting ‘new’ customers. Part of the problem we see with ineffective EMS outreach aimed at identifying and winning ‘new’ OEM business is poor EMS sales and business development efforts. To a reasonable degree, we believe this is due to EMS marketing and sales people are not properly measured by the right metrics. EMS sales accountability and new business acquisition expectations are set too low.
What this means to EMS CEOs and owners
To help EMS CEOs focus their sales and business development teams on ‘new’ customer wins, EMS providers might consider implementing the following three metrics:
a.) Number of ‘new’ leads generated this month (excludes additional opportunities from existing customers)
b.) Number of ‘new’ leads in RFQ phase (actual, telephone or direct, in-person discussion (not just emailing back and forth) or “moving toward closing”
c.) Number of ‘new’ customer contract deals signed this month
So, instead of EMS sales and marketing staff submitting massive Excel files, Hubspot or Saleforce CRM printouts with little, to no, status changes for dozens, hundreds (1000s?) of cold leads going nowhere, the EMS corner office should guide EMS sales people to be more specific.
EMS CEOs might consider putting in place guide rails for sales people to help focus only on pre-qualified prospects, prospects converted to leads, and nurturing status of only those leads that sales is in actual discussions with – right now. This can help stop EMS sales departments from hiding behind the noise.
A new way forward
As EMS marketers and sales people become more effective, your teams will think twice before executing ineffective actions, and your staff will be less ineffective with busy OEM professionals. As for manufacturer reps (non-staff, repping multiple vendors), they have different motivations not always in the OEM’s best interest and can also be managed more effectively.
Average- and low-performing EMS staff marketers and staff sales people often hide behind the second metric listed above, prolonging discussions with leads and prospects, promising EMS leadership an RFQ is coming soon, and other delays, so they can keep their jobs.
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For some EMS leadership, there is considerable opportunity to counsel average- and low-sales performers unable to meet mutually agreed marketing and sales objectives. Those unable to meet expectations should be let go.
Why some EMS marketing and sales staff don’t perform
How did EMS industry get here? We share three EMS truths Venture Outsource is reminded of regularly when it comes to EMS marketing and sales people:
1.) Too few good EMS marketers: Most EMS marketers behave like sales people. EMS marketers are unable to quantify how marketing costs impact top line revenues, yet the marketing department holds tightly to ROI metrics. ROI is important but it is regressive thinking, serving mainly to justify next year’s marketing budget. The value of any prospect is equal to the amount of business a provider does with that converted lead, as a customer, over the life of the OEM-EMS business relationship.
2.) Little critical sense: Venture Outsource has interacted with a very high number of different EMS sales people over the years. We see lack of mandate alignments with EMS sales and marketers, when asked: ‘How can you quantify how EMS sales costs impact top line revenues?’ This is, perhaps, why many EMS sales people often focus the majority of their time trying to be the prospect’s friend rather than trying to comprehend the prospect’s business challenges.
Understanding intricate business challenges requires critical thinking and many sales people hired in EMS industry approach an exchange of ideas and discussion in a glib manner when a deeper approach is called for. EMS have historically sold on familiarity because they cannot lead a discussion on analysis to strategically position their firm’s EMS services strategically in the buyer’s mind. The vast majority of EMS providers we interact have difficulty explaining differentiation. More on EMS differentiation here.
