How to Generate Logistics Leads in Latin America
At the other end of the spectrum are the multinationals operating in Latin America, whose operations are more reliant on outsourced logistics than their legacy factories back home. As cogs in a global wheel of suppliers and customers, the Latin American subsidiary may not have the autonomy to choose its local 3PL provider. When they do, because of the degree to which their logistics are already outsourced, it becomes exceedingly challenging to convince them to unglue themselves from their existing 3PL supplier and try a new one.
So how does one generate leads from these two very different pools of prospects? The key is to develop a lead generation process that can be standardized and pushed down to a lower employee level, either internally or outsourced to a research firm. If lead generation is left in the hands of logistics salesmen, they will grow frustrated and disillusioned quickly because it is a very time- consuming process and frankly, it’s beneath their consultant-like skills.
A well designed lead generation process needs to accomplish a few objectives. These would be:
#1 Identify Prospects CorrectlyIdentifying logistics customer prospects among multinationals is pursued at two levels: one is to engage with very senior management, either through a relationship led by the 3PL sales team or a thought leadership event that facilitates a one-on-one discussion and demonstrates the 3PL’s capabilities.
The second approach is by surveying the multinational’s logistics buying team, in search of an unmet need or a level of dissatisfaction with their incumbent 3PL so that the door may open for a pilot test with your firm’s services. It is a matter of timing and thus an ongoing lead generation process is key.
In terms of prospecting among Latin American firms, one has to recognize that they divide into several categories. A few approach logistics much like multinationals, fully outsourcing. Most outsource only a portion of their entire logistics spend and therefore probing for opportunity requires the interviewer to ask questions that not only profile the firm’s logistics operations but also bring to light the missed opportunities resulting from choosing to insource non-core activities.
Another element not to be overlooked is the prospect lists one is using for this type of research. In Latin America, prospect lists are often poorly researched and rather incomplete.
#2 Define the Parameters of a Viable LeadTo train and put into action an effective lead generation team (insourced or outsourced), a 3PL has to define what a viable lead looks like by defining key parameters such as:
- Logistics spend — too small may prove unprofitable to service; too large and your firm risks being disqualified a potential vendor.
- Knowing the logistics services they outsource today — is there an opportunity to lure the prospect into outsourcing additional, value added services?
- Where is the decision maker? If it is a global position based in another country, it may not be viable to become a vendor.
- The prospects level of satisfaction with existing vendors — this may well define where the opening is found.
Sometimes, a sales team knows very well who they should target…so well that they ignore other types of prospects that they could convert into viable customers. To think out of the box, it is helpful to:
#3 Break the Pattern
- Study the sorts of clients that competitors service
With our insights
- Brainstorm with consultants and peers who have successfully managed lead generation programs themselves
- Design the prospect interview process to accommodate unforeseen company profiles as long as they fit the requirements you’ve established to identify a viable lead.
#4 Organize the ProcessA lead generation program is only as good as the follow-up process of the sales team. The sales team needs to be intimately involved in designing the sales lead generation process so that they are motivated to follow up leads as they are produced. There also needs to be regular communication between the researchers who first interviewed the prospects and the salesman following up the lead.
Like passing the baton in a relay, the transition must be seamless. Ahead of time, it should be determined how leads will be followed up. Some need immediate attention, others require an educative approach, still others require a vendor application to be filed.
Most sales managers underestimate the amount of time it takes to design and execute a lead generation process. That is why their first instinct is to task the same salesmen with generating their own leads. Once a 3PL comes to terms with the amount of work involved, they warm to the idea of outsourcing the process to a 3rd party supplier.
#5 Budget Enough Time—and People
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How AMI Can HelpAmericas Market Intelligence (AMI) has executed 3PL lead generation in the past. Our calculations show that clients who have entrusted us with their outsourced lead generation have yielded returns on investment from that spend of more than 1,000%.
Latin America continues to be a growing 3PL market because only a fraction of the addressable logistics market is presently outsourced. Exploiting that opportunity, requires planning, leadership and a little help from a firm like ours.
Contact us to find out how we can help your LatAm logistics company generate a flood of new, qualified leads.