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Sales and Distribution

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  1. Sales and Distribution Presented by: Stephen LeVan

  2. Overview To be effective in managing sales in your territory it is critical that we understand our offers, marketing, and sales distribution. This presentation is give an overview of our sales and distribution and give you some tools to better understand and manage sales in your market.

  3. Marketing Organization • Roles of the Marketing Organization • Local Marketing Teams • Sustaining • Promotions • Win-back • Bundles • National Marketing Team • National Campaigns (Rolling Thunder) • Creative Production • Implementation (offer construction) • Service creation/bundling • Key Contacts • East Region - Don Banowetz/Jim Markwood • Central Region – Jill Wagner • West Region – Bob Woods • National Marketing – Melinda White/Lise Barbanti

  4. Marketing Tactics • Direct Mail, Email blasts, Val Pack • Drop Timing • Customer Segmentation • Messaging • Start/end dates • Goal – Drive calls into the call center to close sales • Mass Marketing • Radio, Print/Free Standing Inserts(FSI), Television, Internet (banner ads) • Message and Call to action • Start/end dates • Goal – Raise awareness, drive sales in all channels • Internet/Bill Message/Bill Insert • Can change relatively quickly • Inexpensive • Goal – Raise awareness, drive calls into the call center to close sales • Local Events • Attendance • Exposure to potential customers • Community relations • Ability to close sales • Goal – Leads and sale generation, awareness of products and offers • It is critical that you are aware of our current offers and tactics in your market.

  5. Distribution Channels and Key Elements • Call Center – Our Main Sales Channel (targeting 70% of sales in 2009) • Where • Deland, Burnsville, Work at Home • Focus • Customer Service Conversion • Marketing Call Conversion • Key Metrics • Call Volume • Close Ratio • Abandon Rate • Grade of Service • Average Handle Time • Revenue/Call • Observe Calls • As time permits observe calls to be familiar with our customers and their perspective and experience • Witness – Recorded calls that can be drilled to the NPA-NXX level • Aspect Dial In – Live, but less ability to get local calls

  6. Distribution Channels and Key Elements • Direct Sales – our primary commercial sales source • Who • Direct Sales reps in individual markets • Customer Service Reps and Sales Engineers support account base • TAM group based in Elk Grove for Commercial (small business) • Focus • Building and maintaining strong relationships with customers • Consultative sales process designing customized solutions • Regular account contact and prospecting • Focus on term deals as investment is often needed to implement the solution • Ensuring that our pricing and services are market leading and we are aware of what the competition is offering. • Key Metrics • Booked revenue quota performance • Billed revenue quota performance • Sales Funnel • Direct Sales organization nationally reports to Christine Morris • TAM group reports to Bob Woods

  7. Distribution Channels and Key Elements – Alternate Channels • Telemarketing • Where • Predominantly outsourced for residential • TAM group based in Elk Grove for Commercial • Assigned bases • Focus • Offers targeted to specific customer sets • Generally paired with top down promotional offers • Lists are scrubbed for “do not call” and non pay • 60 – 90 day “cooling off” period between TM contacts to a single customers to ensure we do not drive them to the “do not call” list. • Key Metrics • Target List • Customer Contact • Close percentage • Cost Per Gross Add (CPGA) • Payback (CPGA/Average Revenue Per Unit (ARPU)) • Managed by Regional Marketing

  8. Distribution Channels and Key Elements – Alternate Channels • Door to Door • Where • Outsourced vendors in specifically targeted neighborhoods • Permits obtained and Law Enforcement notified in communities that we roll the program out • Focus • Generating sales with current promotions • Sales reps are not given customer specific information, but are told to sell specific offers (e.g. pitch H.S.I. And Dish to 27 Maple St) • Sales are Third Party Verified • “Sales” from the door to door reps are sent to the Call Center (offline group) to close. • Key Metrics • Target List • Customer Contact • CPGA • Payback • Managed by Regional Marketing

  9. Distribution Channels and Key Elements – Alternate Channels • Retail • Where • Brick and mortar staffed by Frontier Employees • Focus • Generating sales with current promotions • Converting customer service and bill payments to sales • Conduct local telemarketing in slow periods • Support Take the Lead • Secret shop competitors for market awareness • Assist with local events as time permits (no overtime) • Key Metrics • Unit sales • Revenue quota performance of sales reps • Profitability of store

  10. Distribution Channels and Key Elements – Alternate Channels • Take the Lead - Employee Referral • Where • All employees and their families • Focus • Utilizing personal relationships, affiliations, and interactions to drive sales • Being aware on service calls to ensure interactions are sales focused • Make sure customers, friends, and family are aware of our products and promotion • Marketing will provide sales sheets, handouts, and door hangers to help with sales efforts. • Key Metrics • Lead volume • Close percentage • Monthly group participation

  11. Distribution Channels and Key Elements – Alternate Channels • Agents/Partners • Types • Referral Agents – partners who leverage their existing business and customer base to sell Frontier products • Business Partners – customers who let us present our products to their employees • Community Connections – Not for profits who solicit members/contributors to buy our services to raise funds • Focus • Utilizing the networks of community partners to build relationships and generate sales • Generating sales through a method that is mutually beneficial with our partners • Fixed cost per sale • Marketing will provide sales sheets and handouts to partners to aid in sales • Key Metrics • Lead volume • Close percentage • Sales volume

  12. Distribution Channels and Key Elements – Alternate Channels • Service Aggregators • Who • Movearoo (consortium of telcom providers (AT&T, VZ, Qwest)) • White Fence • All Connect • Focus • Aiding people who move in selecting a communications provider in the area where they are moving • On line interfaces for easy 24 hour access • Reach potential customers before they move into our territories • We provide offers and updates to these vendors • Key Metrics • Sales volume • CPGA • Payback

  13. Distribution Channels and Key Elements – Alternate Channels • Shop Frontier.com • Who • Our retail website • Focus • Comprehensive product and service information • On line interface allows for local offers and easy 24 hour access • Easy updating for refreshing and creative change out • Ability to give extensive product detail to customers wishing to know more • Requires customers to go find it, so it is referenced on all of our marketing materials • Inexpensive sales channel • Key Metrics • Web page visits • Parts of site visited • Sales

  14. Reporting • Campaign Evaluation • Projections are made by channel • Key inputs are detailed by channel which quantify market size, distribution, response and close • We estimate sales by sales channel • The sales numbers are then paired with ARPU and cost data to estimate campaign results • Projections are presented to the Senior Leadership Team for approval • Campaigns are then evaluated versus the business case to ensure we meet targeted performance

  15. Reporting • Sales Tactics are evaluated on the criteria detailed on the individual slides • An example of Alternate Channel Reporting follows: