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Escola Universitària d’Enginyeria Tècnica
de Telecomunicació La Salle
Management case
Graduate in Management of Business and Technology
Student Student Promoter
Josep Deulofeu Mayoral Biel Buxó Brunet Lluís Campederrós Reyes
CONVERSION FUNNEL METHODOLOGY DESIGNED FOR
SMALL BUSINESS FOCUS ON PRODUCT SALES
ACTA DE L'EXAMEN
DEL TREBALL FI DE GRAU
Meeting with the evaluation panel on this day, the students:
D. JOSEP DEULOFEU MAYORAL
D. BIEL BUXO BRUNET
Presented their final management case on the following subject:
CONVERSION FUNNEL METHODOLOGY DESIGNED FOR SMALL BUSINESS
FOCUS ON PRODUCT SALES
At the end of the presentation and upon answering the questions of the members of
the panel, this management case was awarded the following grade:
Barcelona,
MEMBER OF THE PANEL MEMBER OF THE PANEL
PRESIDENT OF THE PANEL
Index
1. Introduction - Conversion funnel methodology designed for small business focus on product sales 1
1.1. The conversion funnel methodology 1
1.2. Application of SOSTAC & Lean Startup methodology 1
2. Problem statement 2
3. Context Analysis - Interviews made to experts and experienced managers of SMEs 2
3.1. Benefits of ICT 2
3.2. Objectives of the digitalization strategy 4
3.3. Consequences of a bad implementation of ICT 5
3.4. Introducing Porter’s Value Chain 5
3.4.1. Primary Activities: 5
3.4.2. Support Activities: 6
3.4.3. Marketing and Sales departments 6
3.5. The conversion funnel tool 7
3.6. TOFU - Top of the funnel 12
3.7. MOFU - Middle of the funnel 15
3.8. BOFU - Bottom of the funnel 16
3.9. Application of SOSTAC & Lean Startup methodology to the conversion funnel 17
4. Proposed solution - Activities designed for the sales funnel model adapted to SMEs 18
4.1. Activities to Discover 18
4.1.1. Definition of customer journey + canvas persona 18
4.1.2. Brand creation plus communication strategy 19
4.1.3. Content marketing 19
4.1.4. SEO - Search Engine Optimization 19
4.1.5. SEM - Search Engine Marketing based on Adds 20
4.1.6. Definition of a roadmap for the commercial team 21
4.2. Activities to Attract 21
4.2.1. Calendar for the promotions 21
4.2.2. CRM automation - Content customization 21
4.2.3. Usability of the platforms 21
4.2.4. Email marketing strategy 22
4.2.5. Collaborations with experts and influencers of the sector 22
4.2.6. Social selling 22
4.2.7. Call to action 22
4.3. Activities to Sell 22
4.3.1. Retargeting 22
4.3.2. Cognitive persuasion strategies for e-commerce and commercials 22
4.3.3. Telemarketing + Email Marketing 22
4.3.4. Visits of the commercial team 23
4.4. Activities to build loyalty 23
4.4.1. Promotions for continuous purchases 23
5. Conclusion of activities to apply in the conversion funnel for SME 24
6. Bibliography 28
7. Appendices 31
8. Future studies 58
Figure 1 ................................................................................................................................. 10Figure 2 ................................................................................................................................. 11Figure 3 ................................................................................................................................. 18Figure 4 ................................................................................................................................. 19Figure 5 ................................................................................................................................. 24Figure 6 ................................................................................................................................. 25Figure 7 ................................................................................................................................. 26Figure 8 ................................................................................................................................. 34Figure 9 ................................................................................................................................. 47Figure 10 ............................................................................................................................... 48Figure 11 ............................................................................................................................... 48Figure 12 ............................................................................................................................... 49Figure 13 ............................................................................................................................... 57
Word Count: 7.985
Acknowledgments
This final Management case research paper was made possible through the motivation,
inspiration, and support of different people in La Salle University that helped us during the last
4 years.
We want to thank Lluís Campderrós, our management case promoter and professor on Digital
marketing subjects, for helping us develop the correct scope of our project and making it
interesting for us; the result could be interesting for future development in our professional
careers.
- ¡Gracias!
The people that we had the opportunity to meet them and interview during the fairs, like the
Gifts and furniture fair in Barcelona and the eShow fair, mainly focused on the digitalization of
companies. In addition, we want to thank the University environment, where they share with
us experience and knowledge related to their sectors and knowledge base on Digitalization
processes for companies. “They” are Montse Peñarroya, Fernando Ramoneda, Javier
Contreras, Ferran Robla, Antoni Ribas-Font and all the companies that participated directly or
indirectly with our Management case, as without them this work could not be possible.
- Gràcies!
All of our professors from La Salle involved in the progress of our degree in Business
Management and New Technologies, especially Dawn Hiscock, Ferran Blanch, Paul Fox, Just
Pifarre, and Christopher Kennett—all of them have made us reach standards of knowledge
far above expectations to gives us a head start in our professional lives.
- Thanks!
Finally, we give our acknowledgement to our respective families and friends, as we recognize
that our life would not be the same without all of them.
- Thanks!
Executive summary
This Management Case aims to analyze and find a methodology, and a list of activities based
on the usage of the Conversion Funnel theory of adequate application in SMEs that sell
physical products. Taking into account the difficulties that SMEs have digitalizing their internal
processes and their implementation in daily business activities. Based on our research, we
could have a context picture of all the advantages offered by new technologies to management
and administration of different types of businesses. Additionally, led by the “learning by doing”
philosophy, our experience from internships and summer jobs in SMEs and Startups allowed
us to see the reality of the market, one where there is missing information on how to apply a
realistic methodology to these companies, and how to adapt their activities to digital processes
obtaining benefits and improving services.
Our study’s main objective, is to define and establish the best practices, techniques, and
operating systems to use in each stage of a “best fit” conversion funnel, in order to establish
specific sales and marketing management methodologies and activities for SMEs focused on
product sales to help them work on an efficient way, leading to higher productivity. The above
will take into account the SOSTAC theory model and Lean startup methodologies that will be
implemented in the strategy and the implementation of the activities that we will define to have
a good performance without taking high risks. We will also consider digital transformation as
an opportunity. The digitalization of the processes that are of great relevance in Porter’s value
chain within a company, provide the optimization and improvement of each and every one of
the processes through more information, better communication, automation, more usability for
the workers, and the possibility of measurement and definition of quantitative objectives
through the internal data that the company creates.
In addition, digital transformation through the implementation of new technologies allows us
to create new business models in markets with low competition, providing the opportunity to
meet the needs of our customers more efficiently, thus obtaining a competitive advantage and
stronger entry barriers, as it has been the case of Netflix versus video stores or Amazon in the
retail sector. The structure of the conclusion will be provided chronologically according to how
it should be applied it the sales conversion funnel for a company that wants to implement a
new sales and marketing strategy.
Glossary
- B2B: Business to Business commercial relation.
- B2C: Business to consumer commercial relations.
- Business intelligence: The department of a company that analyzes data and transforms
into a visual way to give more insight to the managers and help them to take a decision.
- Call to action: Is a marketing term widely used in advertising and sales; it refers to any
device designed or format to elicit an immediate response or encourage immediate action.
- Cookies: It is a small information packet sent by a website and stored in the user's browser
so that the website can consult the previous activity of the browser by the user.
- CRM: Customer relationship management used to manage the interaction with the clients.
- Data Base: Data which companies collect from different areas of the company or which
they buy from other companies.
- DAFO: Methodology to analyze the internal and external reality of the company.
- Digitalization: In management and administration contexts, the implementation of new
technologies to optimize the processes of the company.
- Digital Transformation: In management and administration contexts, the process of
transforming a business model with/to a new technology in order to generate a new type
of business as with a competitive advantage.
- ICT: Technology of information and communication.
- IOT: Internet of thing, a connection between devices through internet.
- Inbound Marketing: “Inbound marketing is a methodology that combines non-intrusive
marketing and advertising techniques in order to contact a user at the beginning of their
purchase process and accompany them to the final transaction, created by Hubspot”.
- KPI’S: Key performance indicator; a measurement of the level of the performance of a
process.
- Marketing automation: Marketing based on the use of software to execute generic
activities, connecting the potential customers in a personalized way based on previous
information obtained by a form or a well-segmented database, connecting to potential
customers by using mail marketing tools in an automatic and effective way.
- Lead nurturing: “The Inbound Marketing technique based on the creation of value
relationships with our users with the aim of accompanying them during their purchase
process. According to a Sherpa Marketing study, 73% of the leads we capture never
become customers.” - 40fiebre.com.
- P2P: Peer-to-peer commercial relations.
- Retargeting: A form of online-targeted advertising whereby online advertising is targeted
to consumers based on their previous internet actions through information found in
cookies.
- ROI: Return on investment.
- SEO: Search engine optimization; a technique used to increase presence on online
searches engines such as Google.
- SEM: Search engine marketing; advertisement technique used to appear via cost-per-
click, impression or acquisition on the search of platforms.
- SMEs: Small to Medium Enterprise.
- UX: Web experience and usability of a user.
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1. Introduction - Conversion funnel methodology
designed for small business focus on product sales The reality of the needs and shortcomings of SMEs in the face of the digitalization of their
processes in order to improve their sales processes through new technologies will be
recorded in our documentation process, reflected on the appendices of the Management
case.
We will introduce the opportunities offered by new technologies for sales activities as a
reference, along with their implementation for its optimal application in real cases; for this
reason, we will proceed to the introduction of the conversion funnel methodology.
1.1. The conversion funnel methodology
A graphical way of capturing the different stages and processes through which a consumer
goes through until they become a real purchaser, thus ending with a purchase and a posteriori
definition of the customer loyalty if tracked in the proper manner and consequently nurtured
with “value”.
It is a generic tool for all business models and sizes, which is perfectly adaptable to the
resources and environments of all type of companies.
One of the main benefits is that it allows companies and their employees to visualize the span
from the initial moment where the firm made contact with a new potential customer through
the marketing department or sales team, until the moment of the final conversion. (Appendix
C)
1.2. Application of SOSTAC & Lean Startup methodology
Finally, we will consider the SOSTAC methodology and the Lean Startup process, to create
the strategy in which the conversion funnel should be applied adequately in accordance to the
company’s type, as we want to guarantee a practical and real solution. (Appendix D)
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2. Problem statement It is a reality, that a large part of SMEs focus on product sales has not successfully introduced
management technologies, mainly caused by the fact that solutions are very complex, and
that the workers and directors lack the necessary knowledge, and that the tools chosen
implemented tools are not the best fit for the characteristics of the company. (Researchgate,
2016)
The non-profit organization eAPyme, which gathers more than one million self-employed
workers and SMEs together, prepared a report on digital transformation: it revealed that
entrepreneurs understood the value of ICTs; however, "they feel saturated by a large number
of existing solutions that, in many cases, are difficult to integrate" with their work systems.
This study also revealed that many SMEs reject the implementation of ICT systems due to the
reluctance shown by the staff when learning to use new work systems. (Carrillo de Albornoz,
2017)
3. Context Analysis - Interviews made to experts
and experienced managers of SMEs We have carried out a questionnaire with the objective of defining a methodology through the
theory found and structured together by the opinion and knowledge of marketing and sales
department experts and medium and small company owners.
Through their answers to our questions, these will be defined either as good practices to be
taken into account or possible bad actions or problematic realities for the company, using the
theory and the applicable benefits of introducing a Conversion Funnel as a methodology in a
company.
3.1. Benefits of ICT
How have new technologies brought improvements in your company? (Appendix G: Interviews
made on the Barcelona Fair Expohogar Primavera + Eshow Bcn 2019 fair of digital marketing).
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Positive answers include:
● Optimization in administration processes
● More agile communication within the company
● Allows the internationalization of a product
● Specialization in a single product or service is profitable through online media
● Increase the efficiency and control of these processes
● Allows to visualize data in real-time
● Allows monitoring all the management projects from one place
● Allows to follow customers during all the purchase process to improve key steps
Negative answers include:
● Large time investment to learn, adapt and implement new technologies
● Very expensive for the benefit they get
● It is not suitable for short-term results
● All the company needs to adapt
● Workers need to be trained from early steps or from zero
● Cost of programs
● The flow of data from the old to the new software sometimes is difficult to implement
● Once you have all the data into the cloud and online services, you need to protect from
cyber attacks and make backups periodically
Many of the companies that we met at the fair had very little awareness of the reality and the
opportunities that new technologies like process optimization and data collection can bring to
them.
What we found in common is that there are many companies that had implemented new
technologies, mainly into the accounting and communication department, but they have no
idea about the full potential of the benefits. In many cases, these companies are
manufacturers and they sell primarily through distributors or external companies.
To improve the effectiveness of commercials, there is an increasing amount of companies that
provide mobile or tablet apps with digital catalogs and order programs to optimize information,
facilitating the communication and simplifying the process in order to increase the number of
sales as we see in Item Internacional and Puckator.
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What do you think about selling products online? (Appendix G: Interviews made in Barcelona
Fair Expohogar Primavera + Eshow Bcn 2019 fair of digital marketing)
Pros:
● Another sales channel to distribute our product.
● It allows the internationalization of our product.
● The specialization in a product or service is more profitable, the niches are more profitable
through the ease of its diffusion.
● An easier way to establish a direct relationship between the brands and the final
customers.
● Reduces the intermediaries and consequentially increase the margin for the company who
creates the brand.
Against:
● Fear of possible copies of your product.
● They DO NOT believe in online sales, but they do not show data in reference.
● They do not have time for the implementation of technologies for online sales.
● Business online not feasible in the B2B relationship.
● So sophisticated channel to sale
● You can’t touch or see the product.
● Lack of communication between the commercial and client.
3.2. Objectives of the digitalization strategy
Does the company have any future vision defined for the entire organization in terms of the
implementation of new technologies? (Appendix G: Interviews made in Barcelona Fair
Expohogar Primavera + Eshow Bcn 2019 fair of digital marketing)
Most of them focus on the transformation processes of the products and activities that bring
value to the market. If these new technologies interfere, they may want to adapt and introduce
into the different processes. However, if it is for the management of the company or for a
department different from the product transformation, the introduction of new technologies will
be more complicated since it does not reflect directly on the product, despite reflecting on the
final customer service.
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3.3. Consequences of a bad implementation of ICT
Have they had a bad experience in reference to the implementation of new technologies?
(Appendix G: Interviews made in Barcelona Fair Expohogar Primavera and Grup
Magnetmania S.L.)
We have detected that the worst experiences have been caused by poor communication
between service providers and the company, a poor follow-up and undefined objectives for
the project, in addition to a lack of knowledge. These are the main points to define when we
hiring a consultant specialized for the digitalization process; it would be very useful if we do
not have a clear idea on how to take the company to the next level.
3.4. Introducing Porter’s Value Chain
What is the most important department in your company? (Appendix G: Interviews made in
Barcelona Fair Expohogar Primavera)
Most of them focus on product creation and transformation, where they create value and
differentiate for the other companies in the market. On the other hand, in some interviews, as
they told us in Clima, sales and marketing departments are fundamental for the proper
functioning of the company.
Nowadays you cannot create an entry barrier through product creation in globalized markets
like us, so the competitive advantage focuses on the optimization of internal processes,
improvement of departments, creation of a brand, and improvement of the commercial
relationship to create differentiating values and better interactions between company and
client.
3.4.1. Primary Activities:
What tools do you use to control the entry, order, and exit of your stocks? Do you have any
problem? (Ribera Digital)
We interviewed the CEO of Ribera Digital, a commercial company focused on the Graphic
Solution Business, and he told us that they use ABC Inventory, a good tool for small and
medium companies like theirs, but very basic for large companies, since it has many limitations
in terms of parameter flexibility. He also told us, that if he could go back to in time he would
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have chosen a different program that would allow more connectivity between the current they
have in the different departments.
What tools do you use to administrate and control your company? (Appendix G: Interviews
made in Barcelona Fair Expohogar Primavera )
They mostly use ERP software from external companies that can offer a closer service and
constant maintenance and updating of the tool.
3.4.2. Support Activities:
What do you think about optimizing “secondary departments” such as human resources and
IT? (Appendix G: Interviews made in Barcelona Fair Expohogar Primavera )
In most of the companies interviewed, the human resource department is managed by the
founders themselves, as in this type of companies, having a reduced number of workers, can
be perfectly managed by the director.
On the other hand, sometimes they outsource specialized tasks such as the creation of
catalogs or posters, and web page development, among other specific jobs. If they need to
hire a specialized party to focus only to these specific services, the cost will be higher than the
benefit. A crucial point to take into account is that the company needs to be able to analyze if
it is beneficial or more profitable to hire a new person or to outsource. Said activities include
all the tasks related with the digitalization process, like the web creation, SEM activities, and
multimedia content of the products, among other important tasks.
In essence, they try to find a balance between the number of internal employees that possess
the business expertise and are one-hundred percent dedicated to their respective tasks, and
contractors that can be beneficial to focus on specific tasks that can be done without lack the
same degree of expertise on the business.
3.4.3. Marketing and Sales departments
Do you think that the continuous monitoring, implementation, and adaption to the market is
crucial for the company? (Appendix G: Barcelona Fair + Eshow 2019 )
Most of them do not monitor as much they would like to, but they know that are very beneficial
for the good performance of the company. The analysis of this data is the key to follow the
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strategy of the company and obtain benefits to continue investing in this area. As we have
seen in various interviews, the tracking of their sales is practically non-existent, they are only
interested and focused into the final results, and this is a key error that can lead to a total loss
of control of the sales department of the company.
The same happens in the marketing department; rarely do companies analyze the
performance of each campaign to see what has worked for them and what has not. This
causes them to invest a lot of money in similar campaigns they have not worked before, losing
a lot of time and money.
A good example of how to perform a good follow-up can be seen in the interview with one of
the HP Core Business employees, where in broad terms, the process is to analyze all data
provided by the Business Intelligence department related to sales and marketing departments
and to take appropriate decisions so the manager-established objectives can be achieved.
You cannot compare the budget of a multinational such as HP with a medium or small
company, but what is interesting to see how every time fewer companies make decisions
based on intuition, and more with data obtained from platforms such as Google analytics,
Facebook business or internal ERP software. With these tools, with a simple analysis of the
behavior of your customers, or specific KPI to measure the performance of the company, you
can increase sales and reduce drastically the costs of both marketing and operations
department.
3.5. The conversion funnel tool
What tools do you use to manage and track the sales of your company? (Appendix G:
Interviews made in Barcelona Fair Expohogar Primavera + Eshow Bcn 2019 fair of digital
marketing)
The tools that most of the companies use to control the evolution of sales are basically systems
offered by banks to track accounts so that there was mostly no tracking of sales processes
through any software, and it was followed by communication software such as email or
WhatsApp.
In big companies like HP, they implement CRM programs to create a sales funnel to track the
evolution of sales in each step of the negotiation to make better decisions and achieve the
final goals.
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What is the main point that the management of a commercial team needs to take into account? (Appendix: Ferran Robla marketing department ForceManager)
Ferran told us that what he has seen in ForceManager is that good management of the
organization more specific to the sales and marketing team are crucial for a good performance
of the company. That is why you have to prepare a good management plan in order to cover
some key aspects. In addition, what they are doing in FM is trying to increase the
communication with market research department in order to increase the connection with
salespeople and help them on the process of warming up the leads.
As is well known, it is crucial to incentivize the commercial team, and then you can think about
how you want to define the bonus if you want to focus on the final purchase or only in demos
booked. Moreover, you need to be aware that not all countries or territories could have the
same objectives because there may be a region that invests more money in order to get more
interaction, or which plans to focus more than others and this has to affect at the moment of
defining the incentives.
In terms of to be aware that the commercial team is performing well, you have to analyze and
have data to do that. What they do in ForceManager is that the commercial team holds a
meeting every Monday with their sales representative, sales manager, and head of operations,
to organize a good structure for the commercial team that needs to be linked and supported
by all the members.
What tools are used to manage the commercial team of your company? (Appendix G:
Interviews made in Barcelona Fair Expohogar Primavera + Eshow Bcn 2019 fair of digital
marketing)
What they are doing is utilizing basic programs adapted to each one of them. These programs
were programmed in order to send commands of the products directly to the headquarters of
the company, and in some cases, the application also allows displaying a catalog with all the
products, without the need to go with physical ones, being able to update them whenever they
want without the need of printing them again.
One of the facts that surprised us most is what Clima commercial told us: that in the CRM
software they use, they do not have the obligation to report which clients they are going to
visit. The company only expects from them are results, no matter what they did during the
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workday. This is because most of the company’s commercials are not internal and they work
with different ones, having limited control over them.
What offline tools or platforms does the company use to communicate and be visible?
(Appendix: Interviews made in Barcelona Fair Expohogar Primavera + Eshow Bcn 2019 fair
of digital marketing)
Many of the companies we spoke with continued using the fairs as an offline medium to
increase sales, even recognizing that it is a channel that is becoming less profitable as the
years go by. Furthermore, it is true that the common justification they use is that the economy
has not recovered yet, but on the other hand the Spanish economic indexes (GDP) according
to the World Bank are growing since 2015 and the unemployment rate continues going down
since 2013.
Therefore, the fact that fairs have reduced the number of visitors is caused by a change in
companies’ behavior to find suppliers and now is through search engines and social networks.
What online tools or platforms does the company use to communicate and be visible?
(Appendix: Interviews made in Barcelona Fair Expohogar Primavera + Eshow Bcn 2019 fair
of digital marketing)
These companies mostly had poor or nonexistent presence in social and digital networks,
while few had made a coherent brand strategy had different means of communication. One of
the main brands that they have had a strong online presence creating a brand has been
Mr.wonderful or Brava, where they could see the importance of creating a brand to create an
entry barrier that cannot be easily pierced.
What are the key points in the company's sales strategy? (Appendix G: Interviews made in
Barcelona Fair Expohogar Primavera + Eshow Bcn 2019 fair of digital marketing).
They mostly focus on the use of commercials and distributors of their product. Success among
companies in the same sector is denoted in those companies that are manufacturers and had
their own brand such as Lugupell or Clima, which are examples of a good company to
consider.
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How we can automate the activities of our marketing and sales department?
Fernando Ramoneda General Director General at INICED. Digital Transformation of
companies, HR, Digital Marketing and Change Management. (Appendix I: Audio of Fernando
interview into the appendix + content referring to his explanation)
To establish a sales automation process, a strategy must be defined through a CRM by
defining all the company's external interactions, defining a cognitive plan (Decision Method)
for all company processes that require a common decision, interacting with clients and
shareholders to automate processes increasing the service for them, following the objectives
defined into the sales funnel. By defining these decision points, the automation of different
actions from the CRM can begin in order to obtain data from our customers to establish a real
follow-up.
Fernando explained to us that the first step that a company must make is to define a CRM
strategy and therefore analyze their database, performing segmentation according to the
available products and solutions, taking into account their needs and interests, among other
attributes, which will allow them to segment their database in reference to their products. In
addition, it is necessary to establish automatic actions that need to be created following the
sales funnel theory defined into the following infographics.
Figure 1
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Figure 2
1. The first step is when a customer finds us on the internet creating the first interaction
with our brand. The company will automatically establish through a CRM an action to
attract them through a call to action on the same web page how can be a pop-up, to
obtain their data and put it in our database.
2. Once this potential client is in our database, we can segment them and analyze their
behavior and interactions with us, identifying similar patterns with other clients that we
have in our database to define a sales strategy personalized for them knowing their
needs based on their behavior.
3. An example of a sales strategy is to perform automatic remarketing actions on social
networks associated with their profile through a call to action related to the product
visited on our website. In this way, we will continue increasing the positive interactions
of our brand with the potential customer who already knows our product. Note that all
this process has been automated through CRM and is being tracked and analyzed.
4. At this point, the customer knows the advantages of our product and has compared it
with others according to their parameters of choice, which the company has previously
analyzed; we then optimize the message in reference to their needs and desires in our
communication strategy. The points that this potential client values more, will
automatically connect our "emotional" message to them.
5. One strategy could be, for example, knowing that our customer could have a salary
depending on the information that we have about them, provide at the beginning of the
month a discount code to the channel they have chosen (email, SMS…) to get closer
to the final sale.
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6. Finally, the client buys the product and arrives the day after he requested it, which he
has been able to follow it by a specific ID provided by the company through an
automatic email confirmation.
7. Once the product arrives, you will find a package with some details like a letter of
appreciation from the company as well as an offer for complementary products and a
discount code for being a loyal customer.
8. When the customer has their product, our objective is to share their experience with
their friends and family, so more people can know about our product.
9. Once the second purchase is made, the client finds a letter that the CRM automatically
has printed in the shipping process in the warehouse equipment where can find a
discount code, exclusive with their name to share it with his friends. This email will also
be automatically activated by the decision making programmed and established into
the CRM of the company.
Through this example, we have defined the different processes that can be automated
following the steps of the sales funnel, with the aim of establishing the optimal commercial
decisions and actions to increase the number of clients and sell more.
With these strategies, the advertising cost will be associated with a cost of sales, which means
that the cost of advertising will exist at the same time the transaction is made by the client.
Finally, Fernando recommends a CRM called Bistrix24, which allows this type of automation
from his experience as a consultant doing the digitization of many projects in different
companies
3.6. TOFU - Top of the funnel
How do we make our brand known in our market and what are the fundamental activities?
(Appendix H: Interview with Javier Contreras Marketing and Communications Manager in
Daedo International & Co-founder in Conpass)
To initiate activities in reference to communication and brand creation, it is essential to
implement a strategy and a prior study in reference to an internal and external analysis of the
company so that we can define our brand identity and position in the market. We must have
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in mind that brand creation must be addressed with all the potential clients that can interact
with the company in mind, considering that each one will have different needs and interests.
In order to define our brand identity, we must work on unique and different distinctive points
that need to be coherent with the market according to the needs and desires of our target
audience and the competition in which it is found.
Once an internal and external distinction of the company has been established, you have to
start studying the activities for the creation of final messages. The messages of the company
will consist of transmitting the values in a coherent way, adapted to the reality of the company.
How do we communicate our brand? (Appendix H: Interview with Javier Contreras Marketing
and Communications Manager in Daedo International & Co-founder in Conpass)
As Javier tells us, in Daedo, a brand focused in the martial arts and the sports sector, they use
sponsorships through athletes that provide credibility and that match the standards and values
of the brand in reference to success, respect, hard work, and excellence. The way to transmit
the message is centered on a sentimental communication, where athletes are a bridge
between the brand and the final consumers, allow them to connect more emotionally with their
target audience, providing credibility and coherence with the message.
Javier shares the idea that has the best Kimono in the world and for this reason, have a high
price. They collaborate with these athletes who demonstrate through their actions the
excellence, in this way, the message of being the best kimono in the world gets consistency.
The ultimate goal is to connect emotionally with the final consumer, empathizing with their
needs and problems in reference to the solution that the company can offer through a
relationship of tangible and intangible things. This can be the colors, the logo, the quality of
the product and the emotions that transmit, and what represents to the athlete. To realize and
establish a constant pattern in the communication of the brand, the consumer will be the center
and it will be fundamental to learn, adapt. and empathize with them constantly without being
annoying.
For this reason, the importance of using the canvas, persona, or customer journey tools in
reference to the SOSTAC method to fully understand and know our target audience in order
to offer the best possible solution according to their values, needs, feelings between the client
and the product, and how they feel about the product as a solution, and its deficiencies.
14
How do they use social networks to carry out brand creation? (Appendix H: Interview with
Javier Contreras Marketing and Communications Manager in Daedo International & Co-
founder in Conpass)
Javier explains to us that the use of social networks for brand creation is based on the sum of
positive interactions between the brand and the consumers. He also affirms that the style of
communication in social networks focuses on active listening with the aim of humanizing the
brand, using it to obtain feedback from the target.
What techniques or strategies do you perform in the offline channel to obtain clients?
(Appendix G: Interviews made in Barcelona Fair Expohogar Primavera + Eshow Bcn 2019 fair
of digital marketing)
Predominantly, the use of sales representatives by region. The creation of brand identity in
reference to a collection of products of the same theme or segment to the B2C market
facilitates the entry of products into the B2B. The objective is to enhance the presence of the
brand in environments and platforms where the target audience of the company is located by
a coherent communication so the consumer can identify the identity of the brand in reference
to the needs and desires that it has, so this influence to the final decision. According to expert
Antoni Ribas-Font from Stickers.com (Appendix G)
What techniques or strategies are carried out in the online channel to obtain clients?
(Appendix G: Interviews made in Barcelona Fair Expohogar Primavera + Eshow Bcn 2019 fair
of digital marketing)
Most of them do not have a defined brand or commercial strategy focused on their customers
and neither to their products and internal needs.
15
3.7. MOFU - Middle of the funnel
What techniques or strategies do you perform in the offline channel to attract more leads and
persuade them to purchase? (Appendix G: Interviews made in Barcelona Fair Expohogar
Primavera + Eshow Bcn 2019 fair of digital marketing)
B2B relationship
- Offering discounts for volume
- Giving samples
- Customized catalogs according to the needs
- Professional business relationship
- Professional information of the company about the sector
B2C relationship
- Advertising at sales points, with traditional media
- Packaging of the product
- Discounts for prices
- Specific sales sites
- Customer experience
What techniques or strategies do you perform in the online channel to attract more leads and
persuade them to the purchase? (Appendix G: Interviews made in Barcelona Fair Expohogar
Primavera + Eshow Bcn 2019 fair of digital marketing)
B2B relationship
- A digital platform to make and manage purchases more efficiently
- Commercial assistants
- Professional information of the company about the sector in the Blog
B2C relationship
Most of them have done it externally, starting from the creation of the website to the
management of the ads campaigns, but what the experts from the eShow Barcelona fair
recommend is to create a brand identity internally.
- Interesting content in relation to the needs of our clients in the Blog, Social Networks and
Forums
- E-commerce to facilitate the purchase of products
- Contact forms to get data and then send specific content and exclusive offers
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- Create brand through the use of influencers and brand ambassadors
- Sponsoring events in relation to the values of the brand
- Ads in Social Networks and Search Engines
- Retargeting and remarketing
3.8. BOFU - Bottom of the funnel
What offline techniques or strategies do you perform to keep your customers and persuade
them to buy your product? (Appendix G: Interviews made in Barcelona Fair Expohogar
Primavera + Eshow Bcn 2019 fair of digital marketing)
The merchants and the official distributors have the responsibility of maintaining their clients.
The negative point of this sales system is that often these merchants do not work with a single
company, which means that they do not really focus on a single set of products. This is the
reason why one of the CEOs interviewed told us that can sell alone twice as much as a
commercial.
Some of the strategies used to increase loyalty and improve the relationship between both
parties are making discounts to regular customers, free complementary services, among other
promotions by volume of purchases. Euge Oller, CEO of Emprendeaprendiendo, developed
a theory where the main objective was to sell even though the first time you lose money
following the rule of reciprocity, giving help and advantages at the beginning for free, with the
objective of getting future incomes (Emprendeaprendiendo.com, 2019).
The main objective is that the client tests your product or services, increasing the confidence
if the interaction has been grateful. Once the client is satisfied, they will be ready to purchase
a high amount of money, as they know the quality of the product is high. The main point is to
increase as much as possible the interaction with potential clients with a lower price value
proposition to do it easier for them to interact with your product or in otherwise create a strong
brand where they become enamored with the meaning associated to them.
Once you have a brand created, you will be able to do the same that Apple has done with their
products, being able to put higher prices than the competence with the only reason of what
the brand means for their clients.
17
What techniques or strategies do you use in the online channel to keep your customers?
(Appendix G: Interviews made in Barcelona Fair Expohogar Primavera)
Lugupell is a very good example when talking about online sales strategies. On their website,
as the CEO told us, they have the possibility to create an account whether you are a company
or a final customer, using both B2B and B2C channel at the same place. Focusing on the B2B
channel, once the client has started a business relationship with Lugupell, they will have
specific discounts, which may vary over time depending on the volume of sales, specific
promotional campaigns among many other options.
3.9. Application of SOSTAC & Lean Startup methodology to the
conversion funnel
Do you know about the Sostac method or do you have some kind of strategy or objectives in
common in the company? (Interviews made in Barcelona Fair Expohogar Primavera)
Most of the companies interviewed into the Barcelona Fair do not have a road map or common
objectives established in the company to improve or optimize the company's processes or to
implement them.
Why is important to establish a strategy, based on a digitalization process? Fernando reaffirmed the reality of the Spanish business sector in reference to the digitalization
of SMEs and the definition of a common strategy throughout the company as we could detect
in the interviews at the Barcelona fair. A basic aspect to be able to perform is the
implementation of new technologies for its improvement since these improvements will be
implemented in reference to different digitization actions according to reality and the previously
defined objectives in a joint strategy in the company. (Appendix I, Audio of Fernando interview)
Following the advice and Fernando’s experience, you can have a great team but if this is not
well managed with a defined strategy and defined objectives, you will not be able to compete
with anyone.
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4. Proposed solution - Activities designed for the
sales funnel model adapted to SMEs Recommendation of basic activities to implement in the sales funnel effectively by deciding
whether to outsource, taking into account that this model is specific for companies focus on
product sales. We will also use as an example, the case of a company that designs, creates
and sells belts with its own brand called Jmn.
4.1. Activities to Discover
4.1.1. Definition of customer journey + canvas persona
Establish quarterly meetings according to the analytics of the web, the feedback of our
commercial team, and ultimately the set of data we can receive to define perfectly our different
customer segments and the best value proposition for them with messages. Therefore, our
solution, our joint services, and brand communication have consistency and respond perfectly
to their needs and ways of thinking in the decision-making process of purchasing, with the aim
of being the chosen ones.
Figure 3
19
Figure 4
4.1.2. Brand creation plus communication strategy
In this way, our potential customers can associate our name and brand identity with a tangible
and intangible perception, facilitating the purchase process through specific rational
parameters such as price or product quality and through irrational parameters such as
emotions associated with our product.
Using the Jmn’s example, the company is oriented towards a segment where their interests
are the quality of the products, and be well dressed, in addition to a high social status for their
image. Taking into account the needs of this segment, the company should enhance this vision
of its potential consumers through its products and communication. So that the brand
represents their values and their image.
4.1.3. Content marketing
Considering the abundance of content into the digital media channels, we must bear in mind
that our goal is to create quality content and not quantity, with the objective that our target
audience has a real interest in it so that we can attract them to our web page to know and
value our brand and products.
Example, Jmn elaborates articles in reference to dress codes to combine with belts and other
accessories such as shoes, and watches, bearing always in mind, their segment.
4.1.4. SEO - Search Engine Optimization
Once the webpage is created by internally or externally, we have to know the objectives and
communication strategy that we want to convey, in addition to focusing on usability. For this
20
reason, we must apply activities to conduct a study of keywords that are related to our products
or services.
Different types of SEO strategies that can be applied:
Navigational: The user has known the brand and wants to know more about them, and see if
the prices are lower on the webpage.
Informative: The user wants more information on a specific matter, and for this purpose, the
company can define its content strategy focus on the blog, that we will explain letter.
Commercial (Transactional): The potential client, will directly search for a product that he
already had in mind, for this purpose, the company must optimize continuously the keywords
related on their product pages and their categories to increase the conversion rate as more
as possible.
Pre-purchase: This type of searches increases according to the sensitivity that the customers
have about the price of the product. If the product is more expensive, it will take more time to
search information about it, so this decision is completely rational and justified.
Action: Through this type of searches, the potential client will look for the realization of a
specific action, such as downloading the catalog of the brand or searching for a specific
discount code, among other options.
4.1.5. SEM - Search Engine Marketing based on Adds
Establish ads campaigns in search engines such as Google and social networks focusing on
your target audience. The activities we recommend to be outsourced to experts, digital
marketing companies that create and monitor based on objectives, and budgets that will be
defined on our strategy. We recommended in the short term of the project, achieve a lot of
traffic at the initial stages to obtain feedback to improve the usability of our landing pages
improve the conversion rate.
Therefore, we must have a balance between SEM and SEO strategies, keeping in mind that
SEO positioning it is effective in the long term, while SEM activities are more short-term
focused, and once you stop investing the company stops receiving traffic.
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4.1.6. Definition of a roadmap for the commercial team
This roadmap should be joint for all the commercial team where the necessary information
about the sector, the company, and its clients are established to facilitate and establish a way
of selling to increase the sales ratio.
On the other hand, we recommend monthly meetings with the team to maintain the vision,
brand communication, and objectives of the company so can detect possible improvements in
their messages. This roadmap needs to cover a minimum on how to build trust as being
experts, and the sales ethics for the sector.
The company as a general strategy needs to help commercials to deal with the constraints to
earn confidence with clients and create a long-term commerce relationship defining its
geographical framework. The commercial team is one more client and the company needs to
provide all the possible facilities so that they have all the necessary information to sell
effectively and be motivated.
4.2. Activities to Attract
4.2.1. Calendar for the promotions
Create a calendar of action taking into account the most important promotions such as Black
Friday or Christmas bearing in mind the seasonality of the sector and the company brand
identity.
4.2.2. CRM automation - Content customization
Integration of management tools to create specific customer segmentations into the database,
connecting all the processes and departments of the company. Therefore, from only one
place, we will be able to manage all the data from the company
4.2.3. Usability of the platforms
Establish the best practices for our digital platforms, taking into account the solution we are
offering and the goal we want to achieve both in the different platforms whether they are apps,
web pages, digital catalogs or internal portals of the company.
22
4.2.4. Email marketing strategy
Implement an automated email marketing strategy. Starting from the subscription of a new
client in our newsletter, sending promotions every month, tracking id, or even thank you for
your purchase.
4.2.5. Collaborations with experts and influencers of the sector
Establish actions, cooperation using prescribers and brand ambassadors to create a brand
image.
4.2.6. Social selling
Enhance the use of social networks to attract traffic with purchase intention to our website
through photos and videos and to create a brand image.
4.2.7. Call to action
Establish objectives for each landing page based on the communication strategy that the
company wants to follow.
4.3. Activities to Sell
4.3.1. Retargeting
Establish retargeting actions through expert companies and our CRM to evaluate the best
activities to increase the number of transactions.
4.3.2. Cognitive persuasion strategies for e-commerce and commercials
Be constantly up to date with sales books and the internet to learn the main cognitive
persuasion strategies to use to increase the sales as we can found in this article from
Puromarketing (PuroMarketing, 2019)
4.3.3. Telemarketing + Email Marketing
Establish personalized offers based on the client's needs, as the main objective is to serve the
best solutions for our clients.
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4.3.4. Visits of the commercial team
Strategy plan of visits based on territorial areas or business strategy to optimize the number
of visits.
4.4. Activities to build loyalty
4.4.1. Promotions for continuous purchases
Establish discount codes for customers who have already purchased our products, offering
personalized discounts for those products they have on a favorites list, have previously visited
or other variations that provide a rational reason to encourage the purchase.
Customer cards with which they can finance their payments, accumulate points to receive
discounts among other options such as Awin with their affiliate program (Awin, 2019).
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5. Conclusion of activities to apply in the conversion
funnel for SME
Figure 5
25
Figure 6
26
Figure 7
27
Therefore, the website needs to be translated for each one of the targets that the company
wants to focus on.
E-commerce focused on B2B sales, needs to be different compared to the B2C strategy. We
know that the transaction values are higher, so the company needs to create a higher grade
of confidence between the two companies. Automation and simplification processes needs to
be defined for the interaction keeping in main their needs and the company's objectives.
We must also consider that the commercial team will be like any other client, and we will have
to offer the ideal tools so that they can sell effectively without any problem, in addition to having
defined a specific strategy for them and their sales motivation, through variable commissions.
A web page or platform so that they can send their orders through catalogs and updated
information directly through their mobile phones or tablets.
SMEs, through the digital transformation and the digitalization of their processes, have the
opportunity to offer added value in their sectors and establish competitive advantages, in both
medium and long term, through their infrastructural flexibility, taking into account that internet
allows niches to be profitable through the ease of communication around the world in a
cheapest and effectiveness way than ever.
Therefore, specialization in a niche for an international market is a great opportunity through
the successful implementation of a digital marketing strategy for the entire company through
a brand that identifies the SMEs products that helps to create a differentiation in the sector
building important entry barriers.
Technology is here and it needs to be used—if not you, will be destined to fail. Nowadays, it
is very easy to create a web page and start selling products online, so you need to be different
and take advantage of the knowledge and experience that you have in the market to create a
solid strategy. Once you have clearly defined the marketing and sales strategy that you want
to follow, needs to be constantly improved through the data that the market provides to you.
In this way, you will be able to survive being able to protect anticipating and knowing where
and when the attacks from outside will come.
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7. Appendices
Appendix A: Structure of SMEs
Taking into account as a reference (European Commission 2014) we define the company as
an SME, when it is structured as a business employing less than two-hundred-and-fifty
salaried employees for medium-sized firms, less than fifty for small firms, and less than ten for
micro firms.
In addition, from the point of view of learning and influence in business schools (Gary Lawless
2000) the majority of case studies and the theory in business administration in universities are
directed to cases refers to large companies, a question that is understandable from the
theoretical point of view and of relevance of these but incomprehensible in practice since the
majority of companies that are in the European register are recognized as SMEs in 99% of
the total number of companies in the base of data, therefore only the case studies correspond
to only the 1%.
For this percentage, these companies have external teams based on the administration and
update from the computer point of view of the company, of course commented above for its
economic power and investment risk. Following the related data on 99% of SEM’s located
within the European framework, Eurostat affirms that the 90% of these companies are
considered to be by their structure and volume of employees micro firms, less than 10
employees in the company.
Therefore, the SMEs are companies that by their very nature have few resources, which are
used for the continuity of the exploitation of the business model and maintenance of its assets
and financial structure.
Appendix B: Benefits of ICT
It is a reality that new technologies can represent an added value for companies, simplifying
and justifying the decisions that the managers take. All these decisions can provide
competitive advantage and also optimize internal processes of any type of companies, as we
have seen in the research done previously or in the article from SMEs that do not use ICTs
lose up to 30% of their income (Technology for business, 2019)
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Every time there are more managers that talk about the use of ICT, like Rolando Liendo
president of TRI saying, "Companies that do not use ICTs see their growth limited by the loss
of inventories, loss of money due to lack of control, loss of customers due to lack of information
and uncertainty in decision making, among others. Not using ICTs can reduce the income of
SMEs between 10% and 30%”. (Entrepreneur, 2019)
The objective is to find a solution that can be adapted to the different structures of SMEs focus
on product sales.
For example, one important variable that can affect a lot our solution, can be the human capital
of each company, because usually this type of companies have a very flexible structure, but
also sometimes can be very rigid and difficult to change, so we need to evaluate all the parts
that can affect our final solution, and then create general groups that can be adapted to all of
them.
One of the most important benefits of ICTs is that there are a lot of different tools available in
the market which are truly versatile, and that can be adapted to the different types of
companies; we need to find which ones are the best fit, and also the ones that can be adapted
better to each size regarding both employees and revenue.
Objective of the digitalization strategy
The use of information technologies and collaborative tools can allows the increase of
efficiency and the processes of an entire company (Inloox.com, 2019) Keeping this in mind,
one of the main competitive advantages of small companies is the flexibility and the easiness
to do changes, so we need to take advantage of that, to convince that with the conversion
funnel methodology proposal, it will be possible to increase the performance of their
companies in less than one year and with a positive ROI.
All the innovations that can be implemented in the information systems need to improve the
processes related with productivity, the efficiency, and all the parts of a business. However,
many times, we invest a large amount of time and money in the final product, and there are
many other factors that are on its path and interfere with a good product, as we can identify in
the Porter’s Value Chain theory. (Appendix A)
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Employees can become more efficient and effective, if they specialize within their different
roles for the proper functioning of the different areas of the company. However, can we
improve the productivity of our employees by applying the right information technologies?
The mechanisms of work and communication of employees can be optimized to be faster,
more comfortable, practical, useful, higher quality and more productive.
Currently, we have all kinds of technological solutions, apps, software, tools, devices, etc. that
help SMEs improve the day to day of the employees and the work dynamics, so we cannot
leave them aside in our Strategy for the company. Which should mean an improvement in the
productivity of the company following the main activities of a SMEs focus on product sales:
directly, by reducing production time, saving costs, simplifying processes, and indirectly, by
motivating employees, improving safety and reducing emissions. For this reason, we can
simplify it in the generic improvement on these points:
● Efficiency in repetitive processes - One of the key factors in which technology can affect
productivity is by simplifying processes, automating repetitive tasks or making
communication faster. As we can see, everyday there are more companies working with
robots to reduce these types of processes, and in the future, through the use of artificial
intelligence, these tasks will be reduced even more. Reducing these tasks, will allow
employees to focus on more important duties.
● Improved communication - The level of hyper-connectivity that has been achieved today,
allows a faster and efficient communication within the company, exponentially improving
the ability of internal collaboration. Currently it is possible that within a company with a
large number of employees, all of them are connected to each other, independently of the
internal hierarchy and can collaborate on projects, share information, etc.
● Control of costs and analytics - With the improvement and simplification of internal
processes inevitably comes a reduction in costs, but technology also allows us to take a
much more comprehensive control of them at all levels, which allows us to detect problems
and act in the areas of the company that are less efficient.
● Increase in security and control - Security, at all levels, is a key part of the productivity of
companies and technology is essential to avoid what can be important threats, not only for
productivity but for the continuity of the same
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Consequence of bad implementation of ICT
We established as a guide a simple and clear methodology called the conversion funnel. This
is a generic tool that applies in the process of selling, and can be implemented in the following
departments: sales, management and marketing, doing tasks like data management and automation of tasks.
Appendix C: Introducing Porter’s Value Chain
Porter's Value Chain by the “Mindtool content team on 2017” to understand how value and
activities are distributed and created within generic organizations (Mindtools.com, 2019)
Figure 8
We will take into account the porter value chain to define the different department roles we
could find in the different company structures.
Primary Activities
The Primary activities in the companies following the value chain of Porter are relate directly
to the physical creation, sale process and prospections, maintenance and support of a product
or service that the company creates for the market.
We can divide this main general activities in 5 groups, distributed on a chronological way, but
where the order is not directly related on the importance for the company success.
They consist of the following general concepts:
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1. Inbound Logistic: Understanding the natural processes on SMEs related to receiving,
storing, and distributing inputs internally of the chain of the company on their warehouse.
Where the supplier relationships like curriers are a key factor in creating value to have a
good performance and control of the stock of the company to achieve good data quality of
the performance of the company and main KPI’s.
2. Operations: This stage is where the company is identified and they create its value
differentiation. It consists in the transformation activities that change inputs into outputs
that will be finalized on the final tangible product that will be sold to customers. Here is
where the company operational systems and knowledge base their business and the
product transformation create value for the sector and the customer needs.
3. Marketing and Sales: These are the phases where the company use to understand the
needs of their potential clients and consumer behaviors referred to keep improving their
operations on their product transformation in order to have clear arguments to persuade
clients to purchase from the company instead of their competitors in the market. The main
objective consist of being known by the market by which benefits the company offers and
the meanings that their product as a brand is associated, and how well they communicate
them based on their values and the meanings that they want to be associated with their
product. These are sources that help a company run their business, and to keep growing
their main incomes and to keep investing in all the department and activities of the
company.
4. Outbound Logistics: These activities are a consequence of the nature of a SMEs focused
on product sales where the raw materials that are transformed and then are sealed needs
to be delivered to their distributors, franchises or directly to final customers that can be
sold for example through e-commerce platforms. There are different steps that we need
to take into account inside this phase in order to succeed this model like data collection,
data storage, distribution systems among other variables.
5. Services: These are the activities related to maintaining the value of the product or service
to the customers and shareholders of the company, once it has been purchased.
Companies often do not give importance to this phase, and is one of the most important
ones, because is much more economic to keep existing clients providing good services
during the purchase process so the clients will have a good experience and possibly will
purchase again in the future, than constantly go for new ones, as the main objective of a
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company it to have a large database of active clients that purchase their range of product
more than one time.
Support Activities
The Support activities are fundamental to achieve the main objectives established on the
natural primary activities. These activities support the primary functions where each of the
secondary activities can play a role in each primary activity to be more efficient and create
competitive advantages for the company. We can focus on these 4 fundamental activities to
have an optimal performance of the company:
1. Procurement (purchasing): This is what the organization does to get the resources it needs
to operate, (B2B negotiations). This includes finding vendors and negotiating best prices,
very important to increase as much as they can the benefit of the company and their
margins.
2. Human resource management: This is how a company recruits, hires, trains, motivates,
rewards, and retains its workers. People are a significant source of value, so businesses
can create a clear advantage with good HR practices. One of the biggest problems
nowadays is that companies do not keep the workers that they have, and this is a big
issue, because all the time that a company invest to form a worker is wasted, and they
need to do it again with other worker.
Companies now, more than never, need to find the way to motivate their employees,
because each generation is different, for example, millennials that is the generation that is
starting to work now, they value other things more than money.
3. Technological development: These activities relate to managing and processing
information, as well as protecting a company's knowledge base. Minimizing information
technology costs, staying current with technological advances, and maintaining technical
excellence are sources of value creation.
Data is the currency of the future. For this reason, companies need to keep all their
information as safe as possible, and keep in places safe from loss. With all of this historical
information, with future advances like artificial intelligence, companies will be able to create
predictive models to know what will happen in the future before it happens.
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4. Infrastructure: These are a company's support systems, and the functions that allow it to
maintain daily operations. Accounting, legal, administrative, and general management are
examples of necessary infrastructure that businesses can use to their advantage.
Companies use these primary and support activities as "building blocks" to create a
valuable product or service. In this point, one of the most important things to do is keep all
the structure liked and communicated, where from one central point you can be able to
know all the information of the different blocks. With this connection, you will be able to
manage better all the company and optimize processes.
Appendix D: Marketing and sales department:
Once we have defined the different departments through the model developed by Porter, we
can start focusing on the Marketing and Sales activities departments.
At this point, as we already commented, we can assume that these are the most important
processes to persuade that the possible clients will buy you instead of your competition.
The benefits that the company offer, and how well they communicate them, are our sources
of value. This is the main reason why we define the main methodologies and good practices
to replicate to SMEs but taking account the resources available and the potential application
of new technologies in SMEs.
One of the most important points is to focus on the infrastructure of these type of companies
and their way of working. Every day there are more new technologies that can provide
solutions based on the reduction of operation time, increase in effectiveness, reduction of
errors, reduction of management costs, and administrative exploitation contributing on new
scalable business models that can update the current one. Thus, obtaining natural business
opportunities as the thesis "Successful enterprises focus on building a specific skill set or using
innovative IT to adapt and expand their specific market needs" - by (Passerini, K., Patten, K.
and El Tarabishy, A. (2013) introduces to us:
“Their aversion to innovation tends to have a common issue, and basically all of them are
directly related to the company's technical and monetary resources”
Based on the reference of the thesis by Passerini, K., Patten, K. and El Tarabishy, A. (2013)
the implementation and innovation in the SMEs is given by the decision of a few people or
38
even by a single person in organizations around 50 people (representing a 90% in Europe)
that they produce and execute their decisions.
Basing on the theses previously mentioned, we could simplify them with the following
examples:
● The owner of a small grocery store may decide to use broadband to create an automatic
reorder system with suppliers.
● The president of a small bank can decide to enable customers to process checks on mobile
devices.
In both cases, these leaders are free to make innovations. This type of adoption to a new
technology is defined directly to the person who manages and directs the SMEs which usually
has a unique vision based on its experience in the market from the technical point of view of
the sector.
In other words, in a traditional sector, the implementation of IT softwares will reduce time and
errors and optimize resources, just as if it is a technological Startup. The implementation of
this type of "basic" management technology is a risk of learning less in both cases and is
defined by the person who directs them, so that the profile of this will define the degree of
innovation of the company.
We must also consider that the innovation and implementation of new resources in this type
of company is due in particular to its consequences, since unlike large companies, they do not
have enough capital to integrate an R&D model, as we confirm the benefits and advantages
of being a large company. "Large organization's main advantages are the easy access to
capital as well as an established brand name and value chain" (Passerini, K., Patten, K. and
Tarabishy, A. (2013).
The contextualization of our society and economy based on the continuous implementation of
new technologies in the market, gives us the importance and the potential to take into account
new technologies for this type of companies.
The key idea is to have a basic knowledge about how specific programs and technology works
and how can be applied to their companies, by merging these, businessman's will be able to
create new opportunities and take advantage of economies of scale reducing costs and being
39
more efficient for the sustainable growth of the company from the base and experience of
know-how.
Based on Julie Fisher, Uwe Leimstoll 2007) ICT, we have enabled a new information society
and operation of the sectors of services and products. Whereas the daily procedures of the
companies have evolved, in which the generation, the processing and the transmission of data
become the fundamental sources of productivity and the power in taking decisions. Taking
into account that we make the decisions based on the internal or external information that we
have and its veracity based on the facts of the sector, currently optimized due to the new
technological conditions.
Appendix E: Conversion funnel methodology
Once you know all is happening during all the conversion process, you will be able to take the
most accurate decisions in order to increase the performance of the company to sale more,
increasing the benefit, reduce costs among many other benefits.
Considering the history and origin of this methodology, we can say that is recognized as one
of the most popular consumer analysis Picher Vera, Deborah, (2014-09) as we can reaffirm
the source of measuring the performance and budget of online marketing. “el caso de Azud.
el 7 de diciembre de 2017”.
We want to emphasize that this application to marketing is very helpful in the diagnosis of a
brand, as well as in the evaluation of marketing actions and the operation of a company in
natural sales processes, thus following the affirmation of its creator.
Which initially attributed its development to Elmo Lewis in 1898 and was known as the AIDA
model, by the initials in English of the four stages of the buying process that suggested:
knowledge, interest, desire and action (awareness, interest, desire, action).
Why do we use the conversion funnel? ( Vilma Núñez - 28 de septiembre del 2018 )
The most important thing to keep in mind is that we must understand that a funnel is
synonymous with planning and conversions, plus taking account that is a processes to
measure and track according to ( María Díaz 2017), Where we simplify the sales process as
the consecutive stages that a user must meet until they reach a specific goal.
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The main reasons we must take into account to apply this methodology on the SMEs
businesses are:
● Simplification of the sales process: You reduce the number of steps that a user takes to
become a lead or client, which means that you will get results quickly.
● Automated system: Convert your website into a conversion machine because you optimize
everything and generate funnels for online sales and prospecting for offline sales, then we
are working on Omni channels.
● Useful contact: You only communicate with users who are interested (qualified) and leave
mass marketing aside.
● Effectiveness in sales: You can offer exclusive offers and discounts for users who are
interested in your product or service and increase sale applying cognitive techniques for
potential customers personalized.
● Improved ROI in advertising: Optimize the investment you make in content, public
relations, paid advertising and Email Marketing, base on KPI’s and real data of Ads
campaigns.
● Quality information: With the funnels we can better understand the needs of our customers
and cultivate our relationship with them in a more effective and personalized way.
Taking into account the approach that the main objective from the business point of view is
usually to generate leads, increase sales, increase traffic to a web page, blog or online store
or physical and among other objectives in order to sell.
According to the ( Vilma Núñez - 28 de septiembre del 2018 ), she points out that it is a very useful tool as a roadmap to determine actions and techniques to apply on daily activities within
a company departments especially on sales and marketing.
Its application and use follow the reference of use of its name, "funnel". In a first stage, the
number of users is immensely greater than those who reach the last stage.
For that reason, having clearly understood the different phases that make up your funnel and
giving them real attention, will help the company to identify in which part of the process of
41
selling are losing the majority of their potential clients and can take measures in this regard.
Therefore, the various steps will surely demand different types of actions.
The conversion funnel can be long or short (depending on the service or product the company
have), so its semi-stages can be generated according to the processes of each company, but
what does not change are the states in which the users are. Where we define three major
processes, which names them as stages of the conversion funnel:
● TOFU à Awareness, Discover
● MOFU à Consider, Compere, Attraction
● BOFU à Sell by Purchase and Fidelization
TOFU - Top of the funnel
It is the first stage in which the user is located, where generically for all sales processes is
recognized as the identification stage.
This occurs when the user or potential customer has had some contact with your company for
different reasons based on a need, but this has no intention of buying your products or services
for the time being. In this first contact you can use content with those who start to get
confidence and know you more based on the company, the products you have, the natural
added value of your company among other aspects that we do naturally when we have interest
or not and we know someone, the simple prejudice of the first interaction will define us.
Therefore, we can earn their trust by applying a content marketing strategy such as: guides,
whitepapers, ebooks of interest about trends, strategies, good practices or value checklist.
Brand Management and Creation.
On other hand, nowadays the barriers and competitive advantage by knowledge on product
creation are becoming lower through the new technologies, like internet, where we can
communicate and found information without limits.
This is the main reason where the brand creation and the identity on the market is being
fundamental to protect our competitive advantage on the market.
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Problems and difficulties of SMEs to attract their potential customers
The generic problem in the SMEs that we have detected consists of the absence of the
definition of a marketing strategy in the online and offline channels, as a consequence of the
threat of this strategy, no type of action and measured techniques for obtaining it have been
defined. Traffic or potential customers towards the solution provided by the company.
(Appendix E)
MOFU - Middle of the funnel
This is the second stage of the conversion funnel in which customers are in the middle of the
purchase process.
In this phase, users are clear about what they need and start to associate to a desire product.
The potential client will show greater interest in the product of the company. These can be
considered qualified leads with which the marketing team should work with a defined strategy
focus on their value propositions that are associate on their needs and desires.
At this point, the company can offer other content in exchange for information, generating
those qualified leads.
This does not mean that 100% of users will go through the entire funnel until the final
conversion, so it is important that the company work with strategies that encourage the
potential customer to reach the end of the process.
It is the moment in which is important to be a professional, and as a business we have to
asis on lead nurturing, working in Inbound Marketing with the aim of creating valuable
relationships for the users.
It adapts the contents with the objective that the potential client keeps his interest and is willing
to provide you with more information about what he needs to have more possibilities of
converting into a sale, as the company will be seen as professional and giving to the potential
customer more value to keep engaging with their products and experience to buy it.
Problems and difficulties of SMEs to keep the attraction of customers who enter to the
funnel (Appendix E)
The main cause that customers do not take into account the products or services of these
companies is by the maze of a defined business strategy to treat these customers who have
43
a need but still have doubts about how to solve it for lack of information, where it is here where
it plays a very important role to define a content marketing strategy, in addition to tracking the
customer until the sale. (Appendix E)
BOFU - Bottom of the funnel
This stage is very important since it is prior to the sale and without a doubt the fundamental
piece that will close the sales cycle. This part of the conversion funnel will only reach users
who, after learning a lot and having investigated in depth, consider that your company can
adequately meet their desires created by their needs.
These hot leads should be worked on so that your sales team can contact them through the
channels you have established in your strategy: email marketing, telephone, visit ... depending
on the type of professional relation you have b2b, b2c, p2p you will use some techniques or
others.
In this stage it is recommended to create personalized contents so that the probabilities of
converting them into clients increase, such as: demos or free trials, discounts, etc. They are
small incentives to convince undecided users.
Problems and difficulties of SMEs to convert their leads into sales: (Appendix)
These last deficiencies at the end of the sales conversion funnel is one of the most critical,
since it will define our sales conversion ratio of the company. For this reason, it is of vital
importance to define specific strategies to increase the conversion ratio through personalized
commercial actions, with the aim of closing more sales and establishing a relationship with the
customer in the long term.
Find all the problems for the stage of the BOFU defined and set out in the appendix
Appendix F: SOSTAC Model
The SOSTAC model is a methodology that helps us to define a strategy and the objective
situation of the company in the market base on the marketing strategy. (Antevenio, 2019)
SOSTAC are the stages of:
Situation – where are we now?
Objectives – where do we want to be?
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Strategy – how do we get there?
Tactics – how exactly do we get there?
Action – what is our plan?
Control – did we get there?
Situation
The first stage of implementation of the SOSTAC methodology is to establish an analysis of
the overall and objective situation of the company and the sector in which it is located. On this
stage the company need to clarify the main vision of the their business model taking account
internal and external aspects.
The objective of defining the situation of the company should provide a general description of
the organization in a clear way: Who are you? What do you do? How do you interact online
with all the actors that cross your business?
The main tools that allow the companies to define its environment market are:
● Empathy Map & Buyer Persona
They are the perfect tools to determine and define the customer segments that our
products or services are aimed at as the cohesion of our solution to the problems that
respond to their needs and behavior. In this way we will have a clear image of our value
proposition according to the needs of each segment (Melara, 2019)
In this way we will have the opportunity to define a communication and a coherent value
proposal according to your needs for each of the segments (Siqueira, 2019)
● Customer Journey
It is a tool that allows you to graphically capture, each of the stages, interactions, channels
and elements that a customer goes through during the purchase cycle and decision
processes on a product about our business, so that we can locate positive points related
to our product.
For example at the time of the election or test this or take into account the negative points
as the time to stand in line or pay where we must take actions to dispel this feeling (Doppler
Relay Blog, 2019)
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● Business canvas
It is a tool that will allow us to define the environment, the reality of our company, the
business opportunity, our way of making money and the possible costs of our business
model in a visual way. Perfect to be changed throughout the implementation of the
business in the market with the aim of being a tool that helps us adapt to the needs of the
market and the natural changes of this (Megias, 2019)
● Value proposition canvas
Basically it is a tool linked to the Business model Canvas, which is used to coherently
define the values and meanings that identifies our solution provides for each of the
problems of our potential consumers, in short define the cost and benefit from the point of
view of the client, where our objective will be to reduce their perception of the cost and
increase the benefits perception of our solution.
On the other hand it will be very useful to establish Keywords or Meanings to establish in
our communication strategies and brand creation. (Megias, 2019)
● Porter 5 forces
It is a tool that we use to establish the environment and sector that our company finds
taking into account the power of the demand on our business model, the power of the
suppliers, the entry barriers to enter our market, the ease that is copy our business model
and finally the level of competition the market valuing the references of blue ocean or red
ocean (Mindtools.com, 2019)
● SWOT
Tool to establish the situation of the company taking into account internal features of this
and external features of this, such as the sector or market, through the parameters:
Strengths, Weaknesses, Opportunities, and Threats related to business. (Dafo.ipyme.org,
2019)
Objectives
This stage response to the question of, where would you like to go with your company? What
goals would the company like to fulfill?.
The second stage of the SOSTAC methodology should focus on the objective and main ke
point of the strategy of the company base on external factor and internal factor taking account
46
the value chain of porter for our company and the sector, where we will need to identify what
are the main departments to develop to have a competitive advantage on the sector.
On this way we will be able to establish KPIs to measure how we have applied and how the
strategy has been evolved on the market, taking account that we need to track all the activities
to be able to value them. One of the most used tools to define objectives is the tool or
methodology;
● SMART
Each of its acronyms define the points to take into account to effectively determine the
objectives of our company, each of its acronyms means that the defined objective must
respect the following parameters:
● S: Specific, It should be as concrete as possible. Any person who knows your goal should
know what exactly you intend to do and how.
● M: Measurable, so it must be a quantifiable goal in order to analyze our strategies
performance and obtain real and effective feedback to be able to be adaptable.
● A: Attainable, The objective must be ambitious, a challenge for the company but possible
in terms of the capabilities of them and the market opportunity. It is necessary to give the
possibility of adjusting the objectives if there are changes in the market.
● R: Realist, Be coherent tanking account our available resources, and for our motivation to
achieve this goal.
● T: Timely defined, It is necessary to have a temporary line established, each objective
must be defined in time, since it will help us to mark the different stages that will allow us
to reach the proposed goal (Bernabeu, 2019)
Strategy
How are you going to get there? - Conversion funnel tool
47
Figure 9
The strategy makes reference to the fact that the company wants to obtain the objectives
established on the basis of sales.
That is to say, once the company has defined clear objectives and understands what
resources it needs and processes that it must carry out. Creating a strategy in its simplicity is
to draw a road map that indicates the path and points to follow for the company.
For example, a strategy that provides powerful results could be Inbound Marketing, which
seeks to attract potential customers through quality content to educate and retain them,
through the use of a conversion funnel, which allows us to define the processes to perform
according to the behavior of the consumer as we have already commented.
Tactics
What techniques would you use to achieve it? The tactics cover the specific tools of the digital
combination that you plan to use to meet the objectives of your marketing plan. The strategy
section should also identify which market segments you want to reach with your plan.
What tactics can you follow base on the techniques to use defined on each stage of the
conversion funnel as a strategy sales tool?, well there is a few but one of the most commonly
used are these for each stage:
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Figure 10
Figure 11
Action
What actions are you going to use? The fifth stage consists in giving life to the plane defined
by the company where will be taking the appropriate measures. Here the company will start
the campaign and all the hard work. And answering the 5W is essential for this.
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• The 5 Ws method
Is used in professions where it is necessary to verify that a document is complete and written
for the potential clients that has been decided to attract and sales. In fact, they answer the
following basic questions:
● Who? What? Where? When? and How?
Responding adequately to the 5 Ws is very important. Determine the success of a campaign.
Regardless of the channel in which it is launched. And as such, it is shown as the result of
conscious and intelligent planning and proper execution. That success will depend on the
implementation of them (Focushr, 2019)
Obtaining, controlling and analyzing data
The measurement of results of all the processes are basic to keep tracking the performance
of the company base on the strategy designed, to validate them to keep implementing or adapt
them based on the experience and the result that we obtain one time we are in the
implementation process, the level of adaptation of a company define the success on them,
where the infrastructure of a SMEs allow to have a high level of adaptation to new technologies
and changes on the market.
Figure 12
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Appendix G: Lean Startup Model
Lean Startup created by (Eric Ries in 2008), This model of innovation is based mainly on 3
basic tools for its development: the first tool to be taken into account is the Business Model
Canvas developed by Alexander Osterwalder e Yves Pigneur. Is a useful system to define the
business model and ask the questions necessary? Next, we use Customer Development
created by the entrepreneur Steve Blank, the ideal formula to obtain the information you need
from the environment and from potential clients for your product (Theleanstartup.com, 2019)
Fantastic to be able to validate hypotheses to reaffirm them. Finally we consider Agile
Development, in this phase what matters is the action that allows to check with agility and with
the minimum consumption of energy and resources, the validity of a business idea, product or
service.
Then knowing the fact a the main concept related on innovation we are going to take into
account Brainstorming and Scamper innovation method to take care the creativity within a
company and the performance of the techniques. (Serrat, 2019)
Then the main conclusion is that the lean startup model is a successful tool to define the
stages to make a new product or service go on, then went we are creating a conversion funnel
for a company is useful to understand all the main situation of the company to correctly define
the stages and the way that we will make the different task on the sales department.
Then the lean startup model similar to the design thinking model it consist in differents stages
of the company when they are developing a new project - “product”. This is useful tool for
company that already sales to understand better and focus their product or services strategy
to their clients.
Then the stage base on SMEs:
Empathize with your actual clients or potential clients of your business / sector. Define,
redefine and clarify the main problems of potential and actual clients. Ideate, base on the
problems or pain point we can found ideate the possible solution for them. Prototype, improve
your product or create a new one considering the (Minimum Variable Product) that it consists
to create a prototype functional for the need that is request.
Process to make on time the prototype is done:
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Build the prototype to have a tangible fact of our main solution to test on our potential clients.
Test them to have real feedback base on the characteristics and tangible aspect of the
potential of our solution in the market. Learn and keep improving, base on the technology
opportunities that give to SMEs companies that fore natural approaches they have more
flexibility than big companies base on the strategy changes and infrastructure, the for SMEs
is so important to keep improving their products to achieve new opportunities to grow up in
the business.
Appendix H: Problems or difficulties detected on the conversion
funnel methodology by SMEs
Problems and difficulties of SMEs to attract their potential customers on
the TOFU stage
• They don’t have specific marketing strategies (marketing plan). The company only focuses
on the product not on their potential customers.
• They work with external sales teams as representatives or independent distributors of their
products, as their main and unique way to sell.
• Does not grant any tangible argument to be identified by any added value in their product
that makes them different in the market
• Sales representatives are not trained and work without a clear sales strategy
• Brand strategy not defined
• Only tangible arguments to sell
• Good communication strategy not defined (branding)
• They don’t have been created a “similar canvas persona” to know about the need’s and
the values of their potential customers
• They don’t have a good control and updated web pages
• They do not have any conversion goal in their websites
• No strategies defined in their social networks
• Bad practices in their social media networks
• They don’t have knowledge or any idea how to conduct a content marketing strategy
• They don’t know who are their potential customers inside their funnel (They don’t know
what a conversion funnel is)
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• They don’t carry out any control over the evolution of their sales of weekly, monthly basis
based on real statistics (they do not use control systems and statistics creation)
• They don’t have any strategy for the ads campaigns
• Bad implementation of Facebook ads
• Bad implementation of Google ads
Problems and difficulties of SMEs to keep the attraction of the users that
entrance to our funnel on the MOFU Stage
• Once they enter to the conversion funnel, there is no planned interaction designed for the
client “to fall in love with the products” of the company.
• Content marketing in blog, Live customer professional service
• There are aggressive sales, where we do not contribute any value
• Offer knowledge articles to help the client to dispel their doubts about their need in
exchange for their mail
• They do not have postal automation systems
• They do not have customer management systems ( CRM ), to manage and know their
potential customers and make special offers to them
Problems and difficulties of SMEs to convert their leads into sales on the
BOFU Stage
• There is no defined strategy for these customers who have already purchased or who are
valuing the purchase of our products.
• No historical data on customer behavior (Google analytics)
• No email marketing strategy
• Not structured and bad organization of Databases
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Appendix I: Barcelona fair interviews + Eshow 2019 Barcelona
Digital Marketing and presentations (Drive.google.com, 2019)
Appendix J: Interview Javier Contreras Marketing and
communication on Daedo (Google Docs Javier, 2019)
Appendix I: Interview Fernando Ramoneda in the appendix +
content referring to his explanation (Google Docs Fernando, 2019)
Appendix K: Interview with Ferran Robla - Marketing at
Forcemanager - CRM for Commercial Teams
Questions: What are the main points that a company need to take into account to improve the
management of a commercial team?
Questions: What are the main points that a company need to take in account to manage the
commercial team in the right way?
[16:24, 20/3/2019] Ferran Robla: What I can see through my experience in ForceManager is
that the organization and management of the sales team it’s key for the good performance of
the company
If you are a company focused of product sales, your sales representatives are your own key
actors and your performance vary depending of them, so they need to be informed and
motivated to get good results. That's why you have to take care and prepare a good
management plan in order to cover some key aspects. Also what I’m doing in FM is try to
increase the communication with Market Research in order to increase the conexion with sales
people and help them on the process (warming up the leads, etc..)
You have to incentivize the commercial team with bonuses, then you can think how you want
to define the bonus if you want to focus on the final purchase or only in demos booked. But,
bonus is important for the management team. Also, you have to be conscient that not in every
country, or territory needs to be the same objectives, because maybe there is a territory that
54
they invest more money in order to get more interaction or they want to focus more than others
and this have to affect to the incentives.
In terms of to be aware that they commercial team is performing well you have to analyze the
data. What I can see in ForceManager is that the commercial team do a meeting every monday
with their sales representatives, sales manager, and head of operations. Also they do every
week a private meeting with the sales manager in order to help to organize the strategy and
to focus with the objectives. So the main point is that you have to organize a good structure
for the commercial team that have to be linked and supported in order to make them keep
working and as FM commercial team mantra is: Skyrocket your sales!
Appendix L: Conclusion on defining a realistic conversion
funnel for SMEs
Definition of the strategy
This first process has been one of the biggest gaps in the vast majority of SMEs we have
interviewed, so we have realized that without a good implementation and definition of the
strategy, it will not be efficient due to the lack of defined activities through a common objective
within the company.
Strategy tracking
Once the strategy is implemented, we must follow up on the objectives that the company has
defined transversally in all departments of the company, through pre-established periods, in
order to see and detect points of improvement or even new adaptations of its strategy to the
constants changes of the market.
Adaptation to the market
The consequence of a good analysis and monitoring of the evolution of the company, will allow
us to anticipate future events, in this way we can adapt the business model and the activities
of the company to the market. Taking into account that companies should have their
customers in the center of their business models, not their products.
As we have seen during the study, the companies that have a higher turnover are those that
focus on the needs and behavior of their customers and work to provide comforts and facilities
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to their needs through products and services, unlike other companies that focus only on the
margins and sales promotions of their products, a very fragile type of competitive advantage.
In addition, with the digitalization of the processes of companies and their optimization, this
adaptation to change is fundamental for the optimization of services and processes of the
company, where they are increasingly faster and provide a huge differential value even
providing new business models, which endanger a lot of companies as we can currently see
in the taxi drivers sector through the emergence of companies such as Uber or Cabify or the
emergence of new subscription models, such as Netflix or Spotify, which has come to
eliminate thousands of video clubs and music stores around the world.
Sales process automation
Establish automations in the different sales processes to improve the conversion of sales
through the optimization and improvement of customer service in a personalized way, creating
interactions between the brand and the consumer. Through data analytics as the exclusive
and primary source of information for the company, which is an exclusive competitive
advantage.
This process, as we have seen, will be done through the definition of an action plan based on a
CRM strategy, as we have been arguing with Mr. Fernando, which we recommend to contract as
an outsourced company to be able to implement segmented automations according to the
database of our clients.
Brand Creation
As a result of globalization and the ease of communication and information, we are
increasingly the number of mature markets, where retailers themselves have the ability to
produce their own products recognized as "white brands" as is the case of Mercadona in Spain
with Hacendado or at a global scale with "Amazon Basics" producing over exploitation of
supply over demand causing a fall of the prices in this market.
In addition to other factors related to consumer decision and buying processes, it is essential
to establish a brand identity through tangible and intangible meanings, establishing important
entry barriers in our sector as well as being identified in the market by differentiating values
that will define our product to be able to obtain a bigger percentage of the market and maintain
it.
Leadership figure
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During our work, we have realized that the digitalization of the company depends only on one
or two people.
For this reason, we want to emphasize that the definition of a sales funnel model for a product
SME will not lead to success and increase sales directly in the company.
The sales funnel is a tool that will be very useful if used strategically and consistently. This
obligation falls on the founders and directors of the company who must be trained on the basis
and continuously in matters of leadership and strategy, so that their decisions through their
experience and knowledge are adapted to the market and the needs of the company.
Appendix: Sales funnel model for SMEs and objectives to define
Discover
The objective of the company is to perfectly segment our target audience to define in which
channels or sites should be efficiently invested so that the acquisition cost is as tight as
possible, so a prior study should be carried out to define where We must focus our
communication and how we will do it, either online or offline.
Attract
The first objective of the company will be to establish a friendly first contact to obtain data from
them, so that we be introduced in our CRM to define a strategy based on its behavior,
interactions and answers that contribute to our questions to know and understand her problem
by marketing automation software.
Sell
The objective of the company will be to influence and persuade to finalize the purchase so it
is satisfied and wants to buy again in the future, since the benefits it obtains are above the
cost that suppose. We can achieve this through the creation of a brand and the perfect
interaction between the client and the company.
Loyalty
The objective of the brand will be to establish a loyalty strategy to maintain contact and
interaction between the customer and the brand, so that they feel identified with it and continue
to obtain benefits from this either through the acquisition of their products, through information
that it performs as a brand among other actions that encourage positive interaction between
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brand and client. One of the best ways to maximize the loyalty of our customers is through a
good segmentation of CRM providing only content that really interests our customers.
Prescribers and Brand Representatives
The objective of the brand will be to encourage these actions through affiliation strategies or
the creation of activities so that they naturally share their experience with their environment,
which will most likely be very close to our target audience.
Appendix M: Conclusion of activities to apply in the conversion
funnel
It’s essential to establish a strategy taking into account the Hub Spoke technique, where the
obtaining of traffic is centered in our platform where we have the main control.
Figure 13
Communication styles, marketing strategies and differences between outbound and inbound
marketing needs to be used, having in mind the reality and the consequences of each one:
- Outbound marketing:
- Higher acquisition cost per lead
- Fairs, Telemarketing, mail marketing, physical publicity
- Inbound marketing:
- Organic attraction, success based on creativity, lower acquisition cost
- SEO, email marketing, social media, events.
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8. Future studies
Topic 1 - Biel Buxo 1.What are the barriers to business addressing this problem and how can we overcome
them? Business need to take care of the environment and reduce the usage of plastic as
much as they can, starting for the development of the products and finishing with their
packaging’s. We can not continue with the actual numbers, because we will finish in the
worst possible way, destroying the entire ecosystem. There are few studies from the ONU
that say, that it is produced more than 250 million tons every year around the world, and
more than eight million tones is thrown into the ocean, so taking into account this numbers,
the first thing that we need to do is start producing less plastic and recycling the existing one.
In this way, we will be able to reuse most of the products, and reduce the creation of new
one. Nowadays, luckily, there are more and more regulations every year. Because a whole
host of carcinogenic, neurotoxic, and hormone-disruptive chemicals are standard ingredients
and waste products of plastic production, and they inevitably find their way into our ecology
through water, land, and air pollution. There are different ways to overcome the barriers that
the usage of plastics supposes for the companies, one of the main ones can be changing
the plastic for other materials like recycled paper, like the supermarkets did some years ago,
replacing the plastic bags for paper bags. Also if plastic is necessary anyway, there are
some alternatives like reduce the quantity of plastic of the products, like some companies did
with the tap of the bottles, or reducing the thickness of the transparent plastic. Also
companies can take advantage and recycle all the materials that nowadays throw away, to
produce other products that can be an extra income for the company. The objective is try to
find always the way to reduce the usage of plastic, in this way we will keep the oceans clean
and we will reduce the number of diseases because of the use of plastic among many other
benefits.
2.In addition to the action mentioned in the article “A Running list of Action on Plastic
Pollution”, tell me what other specific action business taken to address this problem. One of
the main actions mentioned in the article and the business in general need to do, is to
reduce the SINGLE-USE plastics, in this way, the quantity of plastics used by the individuals,
will be reduced a lot, being able to use the ones that we have more than one time. This
single use plastics, are mainly used in the packaging’s of the products, so companies need
to invest money in order to find the way to reduce this type of plastics for other alternatives.
An other interesting alternative can be to develop a new business model in order to increase
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the number of persons that they recycle and make money thanks to them. For example, a
very interesting idea is that the workers of the company go to the house of the clients that
through an app they know that they have their bin full. Once the workers have the plastic, will
be transported in a factory where the plastic will be converted again into a raw material, that
will be sell it to other companies. With this business model the recycling process will be
closed, reusing the number of single use plastics used for the companies. Moving to real and
specific cases, in McDonalds, the 100 percent of its packaging comes from renewable,
recycled or certified sustainable sources. Also has pledged to work and cooperate with local
governments to achieve their goals. An other real case is Evian, where by 2025, the French
company has made the pledge to only produce bottles which are 100 percent recycled. To
do so, it is working to create a truly “circular model” across the business, if not the model will
be not viable. So as we can see, there are a lot of new business models that can be
developed and implemented, and actual companies only need to reinvent to be more
sustainable as the previously companies mentioned before did, or want to do.
3. As a future business person/leader what steps have you taken, or can you take to address
this problem in your community? I've been working in HP for a month and I’ve been able to
have contact with 3D printers and I've seen the potential and the future of this type of
printers. Also I have noticed that the materials that it uses in both, industrial and homemade,
was ABS plastic (derived from petroleum). A very interesting alternative would be to be able
to make the material of these printers from the recycled plastics, such as, for example,
collecting plastics found in the ocean.
This method of obtaining materials from the sea is very interesting because on one hand we
clean the oceans and on the other hand, at the same time we give a second life to the
poured product, extending its useful life cycle. A great example of this is what Stella
McCartney has done to obtain recycled nylon to create, among other things, handbags and
shoes. This recycled nylon comes from waste such as industrial plastic, waste fabric and
fishing nets from oceans. Then is recycled and regenerated into a new nylon yarn that is
exactly the same quality as virgin nylon. So the potential of this recycled plastic and the 3D
printers is incredible, you can reuse raw materials and increase the value by creating
products from nowhere, to sell it in the future and get a good benefit from it, always
contributing to keep our ecosystem clean. So basically the mentality of the business persons
need to change, from try to reduce the costs of the products using only the cheapest plastics
available in the market to, how can we reuse raw materials in order to contribute with the
environment and reduce the costs of the company in a future? This final question is the key
if we want to keep our world safe and clean in the future.
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Topic 2 - Biel Buxo
The Colvin Co is a flower delivery company created in 2016 in Barcelona that aims to
revolutionize the way to receive, give and relate to flowers and the experience with the
consumers.
Since it was set up as the model of Startup, Colvin has multiplied its turnover by 10 and
currently has a staff of 45 employees in Barcelona, base on their strategy on digital
environments and business models, in this case using the main platform of the ecommerce
to sell their products or services as a subscription model.
The Catalan company has set itself the goal for 2019 to continue growing up to five times
its sales and start expanding its business internationally to all Europe.
Colvin's value proposition and bet is to integrate directly with the producers and bring
freshly cut flowers from the ground to the end customer, avoiding intermediaries as a
consequence of reducing the price and control all the operational performance of the
company to the ground to the final consumer giving them the experience with the brand
that they want. It is a revolution in the field of online floristry.
Content has become core to marketing (and sales, too).
Their typical clients, explains Cester, are usually women between 25 and 35 years old,
who live in urban areas and are interested in fashion and lifestyle. This is why Instagram
was their main social network, where the conversion rate is very high, comparing to other
social networks like Facebook, so their objective in the future is keep using this channel.
Winning the user's trust is a challenge for any service or product that is sold online. In
the team of Colvin we are clear that buying flowers online is not just a buying process, it
is an experience.
From choosing your flowers, the day you want to receive them, personalize them with a
message, and above all the way in which they arrive with a very careful packaging, which
turns the buying process into a ritual that invites you to enjoy the magic of the flowers
from the first moment.
Chat bots will offer benefits beyond customer service.
Nowadays the company is investing in a new Business Intelligence team, to be able to
understand better their customers, and provide personalized experience thorough
adapted products, chat bots, among many other artificial intelligence applications.
Now they are using a basic external Chat bot, where some employees of Colvin make
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Sure that all the answers are correct and also they answer some of the questions by
themselves.
Alternative search formats are on the rise.
In Colvin they have an App where you are able thanks to voice recognition provided by
an external company you can buy an specific bouquet of flowers. This is a clear example
how alternative channels can be useful and more in the future with artificial intelligence
robots like Alexa or Siri that will be able to understand you perfectly and ask for
everything.
4. Marketing and PR will continue to overlap.
In Colvin Co there are investing a lot of money in a good communication strategy
through Instagram and also through influencers and PR, that are very useful within their
target.
PR have been always very important, but nowadays with all the channels that are available,
are more important than ever, and can be very useful to promote a company.
5. Security and data privacy will be major concerns
All technological companies have a lot of data in relation with their customers, like
personal information, credit cards, customer behaviors… and Colvin Co is a clear
example.
All this data can be very useful to provide advantages and take decisions in a based
model, but also is crucial to keep all of this information encrypted and secured,
because if not, can be one trigger to bankruptcy among many other problems.
This is the reason why in Colvin Co there are creating a new data security team, very
close to the Business Intelligence team, to keep all the information as safe as possible.
6. Personalization and authenticity will separate successful marketers from those
who just contribute to noise. The personalization is the key to the success of the companies
in the future, as we can see in Instagram Ads, Facebook Ads, Amazon page, You Tube
videos…
All this companies are investing a lot of money to create predictive models based on
machine learning to understand each customer and provide the products, information… that
better adapts to them and every time with more data this models will be better.
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This is the reason why, how I said before, Colvin is investing in a new Business
Intelligence Team, to provide personalized products to each customer depending to
their interests and behavior. Big companies since a time ago, ara investing in this
technology, and now thanks to free BI programs like Power BI, Tableau…, more
professionals in this area, and a lot of shared knowledge in the network, startups and
medium companies are able to start investing in this area with the objective to increase their
incomes and reduce costs.
Less will be more Only provide what the customers are looking for is the key to success and
one of the most difficult parts of a company, a clear example of this is Google. At the
beginning Google had less content than Yahoo but had a better user interface,
on the other hand, the objective of Yahoo was to have as much content better, but
then was very difficult to find what the customers have been looking for.
We all know how the history ends, so this is a clear example how less can be more if we
simplify the steps that the customer need to do to achieve their objective will be able to add
value to the company.
https://www.lavanguardia.com/economia/emprendedores/20181009/452253286939/
https://marketing4ecommerce.net/andres-cester-the-colvin-co-nuestro-producto-es-
escalable-italia-es-solo-el-primer-paso/
https://www.linkedin.com/jobs/view/bi-analyst-at-the-colvin-co-
1014067742?originalSubdomain=es
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Topic 3 - Biel Buxo
Do you think new technological progress will fundamentally reduce the need for human labor
in the next few decades?
How might this be a problem?
There are different studies regarding the number of jobs that will be destroyed with the
arrival of the machines, the vast majority point to an important loss that will mainly affect
those jobs that require physical work.
There are some estimations that say that around 400 and 800 million people will be
displaced from their jobs in 2030 due to automation.
It is estimated that 54% of all employees will need training in new skills during the next five
years, it would be training focused on high speed mobile internet, artificial intelligence, big
data analysis and cloud computing, thus It would boost the demand for a new type of work
force that would coexist with the arrival of the machines.
Additionally, and since machines lower costs, the citizen ultimately has more money to
spend on other things that do not correspond to day-to-day needs.
The machines will be responsible for the most repetitive and laborious tasks, but we do not
seem to be closer to eliminating the need for human work than in the last 150 years.
Machines, including robots, do not take away work, or anything, from anyone. On the
contrary, they provide us with more free time since with less hours of work we can produce
equal or greater quantity of goods and services.
We can see in the numbers that also not necessarily having many robots the employment
rate is going to be very high. A clear example is the most robotized country in the world,
which is South Korea that has 53 robots per thousand employees. The unemployment rate
in Korea is 3.6%. The second is Singapore with 40 robots per thousand employees. Its
unemployment rate is 2.2%. The next two in robotization are Japan and Germany with
unemployment rates of 2.8% and 3.7% respectively. So clearly we can see, that the jobs that
the robots substitute have been replaced with other ones, like in the industrial revolution.
Do you think the introduction of a Universal Basic Income might help resolve this problem?
The implantation of a tax on robots that facilitates a system of Universal Basic Income
(RBU), not only to guarantee the minimum sustenance for all, from a progressive social
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perspective, but also to maintain, from a economical-liberal perspective, the purchasing
power necessary to that the cycle of consumption and production runs its course. Whether
we propose a scenario in which the economy is not based on growth, or if we maintain the
current dynamics, it seems necessary a mechanism that compensates for the absence of
salaried jobs if they are scarce in excess.
One of the arguments put forward in favor of the Universal Basic Income is that robots are
taking jobs away from workers, that workers are going to be massively unemployed and
therefore need an RBU that allows them to live, decently, without working. An "ideal" future
society is projected in which a capitalist oligarchy possesses an enormous army of robots
controlled by a privileged minority of skilled workers, while the social majority can survive
without working thanks to the RBU.
I don’t think this is the solution. To begin, making that everyone earn a minimum salary
would create a system where some would work for others to earn money for doing nothing.
Even so, I find logical the idea that a minimum salary is created only for those people who
have lost their job because of robotization, or for those who stop working to start learning
new things to be updated.
On the other hand, the idea of the universal minimum salary could work according to the
culture of the place, for example, I think that in Spain it would not be a good implementation
because the society is governed by the minimum effort. On the other hand, in Nordic
countries it could work perfectly, so the implementation would need to be adapted to every
place.
If you never had to work again, what would you do?
Enjoy every moment of my life, learn new things try to improve in different areas like art,
music etc. where I had no time before to start learning it.
In this way, life would never be the same, everything would be focus in the learning of
humans and not in the investment of time working for others and trying to survive as is
happening nowadays.
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Topic 4 - Biel Buxo
1.Which are the main challenges firms faces nowadays? How do you think these might
affect your professional career?
The main challenges that companies face in the following years, in order to have in their
ranks the indicated and highly qualified workers are:
Implementing new selection processes: Hiring a candidate requires much more than offering
an economic reward, you must start by seeing if the candidate is able to provide solutions,
offer growth opportunities, develop and strengthen their commitment to the company's
objectives. Creating talent programs is an idea that is increasingly recurrent among
employers.
Leading the digital era: companies must bet on innovation, new strategies and business
models, as well as the launch of new products, supported by new technology tools that not
only allow them to increase efficiency in processes and operations, but also improve the
User experience in your shopping trip for a product or service.
Facilitate professional growth: Development opportunities is one of the main factors that
allows companies to retain their employees and integrate them into the work scheme.
Occasionally, employers see a raise in salary or other benefits as a reflection of professional
growth; However, for many professionals, it has been more important to advance in their
professional careers.
New management models: From following years, especially, because they know that the
management of the staff is not the same as a decade ago this time many companies are
beginning to rethink the way they will work for the five years ago.
All this challenges will affect a lot our professional careers, the new digital era will create a
lot of new job to face up all this challenges.
2.How do we create organizations that are truly “fit for human beings”?
Aspiring innovators in today's administration have a real advantage when it comes to
reinventing the organization. Unlike the early pioneers of management who set out to
convert human beings of free thought of flesh and blood into semi-programmable robots, we
are working with the grain of human nature. We know that the only way to create an
organization that is really fit for the future is to build one that is really fit for human beings.
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3.Why is it necessary to change the “classical” management principles in order to adapt
them to today’s fast-changing business environment?
Is very important because all the companies are changing very fast, for this reason, the
management of the companies need to be constantly reinvent to adapt to each environment,
if not the companies will not follow the new trends and will not be adapted to the actual
models.
Lately there have been many advances in the field of management techniques, which you
will find very interesting and beneficial.
The purpose of learning new management techniques is to reduce the amount of "trial-and-
error learning" that many managers must face before they can achieve "excellence."
Many managers do not achieve excellence, because they never think about improving their
management techniques. They just jog their usual responses to situations. Their responses
evolved through painful experiences, or they claim that they learned them by studying in "the
school of hard blows".
Learning techniques consists of NOT taking "hard knocks" or learning by trial and error.
Instead of trial and error, or learning painful experiences, you learn the right techniques. You
go directly to identify the Ideal Answer for certain situations, and then apply them
intelligently, in practice.
Many people never study techniques. They mistakenly believe that management skills are
innate. They mistakenly believe that people management skills can not be taught.
4.How is it possible to build organizations that have an “evolutionary advantage”?
Evolutionary Advantage: Is the capacity of the evolution companies for the power, not only to
react to the changes of the vertical environment, but to anticipate them. The evolutionary
advantage, the capacity for deep transformation of the company, would be a companion of
the competitive advantage.
The change is multifaceted, incessant, subversive and, occasionally, frightening. Today, the
most important question that should be anywhere is the following wording: are we changing
at speed what it does now? world around us?
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In my opinion, the concept of evolutionary advantage must be prior and superior to the
competitive advantage in an organization, it must be part of the DNA, being the evolutionary
advantage in the future, the validation and the new competitive advantages. And you, are
you changing at the speed of the world around you? Or change or change you, precious
CEO.
5.To what extend do you agree with the mantra: “Employees first, customers second”?
If your employees are happy inside the company, then the positive environment that they will
create will incentivize and increase the performance of the company. Then thanks to this,
your customers will be more satisfied. This is why in a company your customers need to go
first, because then all the other factors will be positively increase.
Topic 5 - Biel Buxo
New Intelligent Trash to recycle more
Basically the idea is to create an intelligent trash connected to internet (IoT) with three
different departments:
-Packaging’s: With a system to reduce the space they use.
-Organic: To keep the smell of this products
-Glass: To also reduce the space that the glass bottles use
Thanks to this trash you will be able to know in every moment how you contribute to save
the planet, and achieve personal objectives, increasing the motivation to recycle.
Also with the system to reduce the space of the packaging’s, and keep the smell of the
organic products, you will reduce by 50% the number of times that you need to go to throw
your rubbish.
1. How would you affect the lives of a billion people positively in 10 years?
What big world problem would you try and solve? If you need inspiration,
check the Sustainable Development Goals
The health of the Earth can not wait. All of us, regardless of the field in which we develop or
the work we do every day, we must actively engage to stop the problems that threaten the
environment.
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These are the main problems that I’m trying to solve with this new intelligent trash:
1) Lack of space for waste treatment
If we did not recycle, the waste would increase considerably until there was no space to treat
and classify them. Some contemporary cities, such as some capital cities of the United
Kingdom, are already facing this problem. This could generate more pollution and health
problems due to poor air quality.
2) Disappearance of natural resources
Not recycling would have as a direct consequence a considerable increase in the production
of the products that we consume on a daily basis, something that implies a greater use of
natural resources such as water and electricity. There would come a time when these would
be scarce, rise in price and, in the long term, disappear in certain regions of the world.
3) Increased pollution
Waste or materials that are not recycled must be incinerated in the shortest possible time.
This generates ashes and toxic gases that would increase the levels of pollution in the air,
generating in turn respiratory problems for the inhabitants of cities or entire regions. But it's
not just that; there would also be an increase in greenhouse gases, which would raise the
average temperature of the Earth and directly affect global warming.
4) Disappearance of ecosystems and natural habitats
In order to obtain the natural resources that satisfy the demand for products, which without
recycling would be growing, companies would have to break into the ecosystems that until
now have remained virgin. That is, it would increase the deforestation of forests and natural
reserves, the use of chemical products and preservatives and, therefore, the disappearance
of animal and plant species that have these spaces as habitats.
2. How have people tried to solve this problem until now? Give specific
examples of the best solutions right now, and why they’re insufficient.
A very interesting idea is to receive money in exchange for recycling.
Waste payment methods, such as the Deposit, Return and Return System (SDDR), are
promoted in several countries. You can offer money or prizes. There are several systems of
this type, such as RecycleBank, Bottle Bills, Envirobank, Gazelle, YouRenew or
BuyMyTronics.
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Specifically, the Deposit, Return and Return System (SDDR) is implemented in Germany
and other European countries, while in Spain, many organizations and citizens ask that it be
used.
Here is the problem, that this system to be implemented, need to be with an agreement with
the government, and now and never have been interested in reduce the usage of raw
materials.
3. Why is it so difficult to solve?
Basically because there are a lot of myths behind the idea of recycling.
-Recycling is expensive
It is logical to think that, therefore, the producers raise the price to the products to
compensate this rate. Recycle or not recycle, that payment is made, the difference is that
obtaining the materials with which the containers of nature are made is more expensive,
environmentally and economically. Recycling allows the recovery of these materials.
-The products that are obtained are of poor quality
In other entries I already talked about upcycling and down cycling. If you think that the
products are of less quality, I challenge you to find the difference between a jar of recycled
glass and another that does not.
-In the end, the money of my effort is taken by others
First of all, I think the effort is minimal. Second, the separated and selected materials are
bought by the producers, it is not a gift. The entire recycling process is a chain that begins
when you separate the waste.
-I do not have room at home to recycle
Probably the worst excuse of all. Really, there are people who think that they can not take
out a few square centimeters in their house to be able to separate waste?
4. What would you do differently? How could you use different exponential technologies?
Basically the product will be differentiated thanks to the use of the following technologies and
mechanisms.
-IoT to increase the motivation of the users thanks to an App
-Mechanical system, to reduce the space of the packaging’s
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-Big data, to know all the information related with the recycling process and can be useful in
the future to create new business models.
5. Create an X prize:
a. what would be your specific goals?
Basically the main target will be small houses with no space to recycle.
b. What specific criteria will you use to evaluate the solutions
No similar solutions available in the market
c. How will you communicate your goal to the world and make people believe in the project?
Basically the simple idea to share with the world is that all the excuses for not recycling are
over. Showing to the world the impact of not recycling will change people minds.
