sales, sales management, sales strategy
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Sales, sales management, sales strategyTRANSCRIPT
Strategy, Sales, & Sales Management
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Strategy, Sales, Sales Management
B2B Sales Management 101B2B Sales Strategy 101 B2B Sales Case Study: GrooveSales & Strategy Reading List
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B2B Sales Management 101 -- Harsh Reality
B2B Sales Management 101 – The Number“Quarteritis…”
“The sun rises & sets on the quarter”
B2B Sales Management 101 – Sales Representatives
Sales Rep ProfilePersonable, builds trustHigh energyAggressive/”edge”Street Smart (v. book-smart)Listeners/nonverbalMotivated by money
80-20 ruleCompensation
Base $90k - $100kCommission $125k (plus draw)
0%-50% quota = x%; 50% -100% quota = 2x%; > quota = 3x%Stock options – less importantPresident’s ClubTop reps’ pay > CEO’sMeasurable & Accountable – high turnover tolerated
B2B Sales Management 101 – Strategic Selling
Nuclear unitSR, SE, Cnslt, Mgmt
Power SellingChampionsCoachesEconomic Buyer
IT, LOB IT, LOB, Prchsg Legal, Finance, BOD
Find Pain, Find $Ask questions/listen/non-verbal
BOD
CEO
LOB LOB LOB LOB LOB IT Finance Purchasing LegalVP Enterprise Apps
…Bus IT …Bus IT …Bus IT …Bus IT …Bus IT VP Enterprise InfraCTOEtc
B2B Sales Management 101 – Predicting The Future
PROSPECTS(Email, URL, Source, HI-IQ Email Nurture)
LEADS(Phone #, Lead Conversion Event)
NEW CUSTOMERS(CC# and Authorization)
SatisfiedCHI > 70
UnsatisfiedCHI < 70
Mark
eti
ng
Sale
sC
usto
mer
Serv
ice
HubSpot H
I-IQSalesForce.comOPPORTUNITIES
(Demo/Trial, 3 per day per rep)
SalesForce.com
SUSPECTS(HubSpot, WSG; PPC MVT)
B2B Sales Management – Predicting the FutureThe Funnel
Visitors
Prospects
Leads
Opts
B2B Sales Management 101 -- Predicting the Future The Forecast
Closed Likely Upside Q+1 P E D D I C C RD% VP% Fcst UpsideeCommerce 248,405 47,250 15,000 10,000 9,025 9,000 Inside Sales 207,900 10,000 - - 1,000 - Salva Army: Stryker 125th TF Olympia 151,662 - - - - - McPartland KPMG - Services 150,000 - - - - - Black BAH / Centrix 78,183 - - - - - Okada NG / State Near East Bureau 62,894 - - - - - Okada CARE 60,266 - - - - - Foster Tyco - software 56,389 - - - - - Marcus CA Dept of Justice 56,279 - - - - - Wilson Microsoft 54,856 - - - - -
37,021 - - - - - Smith SPAWAR-DM,B/U Svr 36,794 - - - - - Black DARPA (SAIC/Hicks) 32,218 - - - - - Tyre EDS 28,265 - - - - - Foster Praxair 23,977 - - - - - Marcus State of FL 22,943 - - - - - Shartzer LDS - Deseret Mgt 18,483 - - - - - Shore P&G 17,987 - - - - - Manniso VA - Infrastructure (Albany NY Buyer) 15,120 - - - - - Tyre Shell - trial extension 15,000 - - - - - Smith SPAWAR Europe/Ivan(2) 14,075 - - - - - Salva Army Corp. Of Engineers - 1,808,559 - - Y Y Y Y Y Y Y 50% 50% 904,280 - McPartland EY - enterprise - 787,000 - - Y Y Y Y Y Y Y 80% 90% 78,700 - Salva Army: HQ - 439,480 - - Y Y Y Y Y Y Y 95% 95% 21,974 - Shartzer Hitachi Data Systems - 192,465 - - y Y Y y y Y N 80% 80% 38,493 - Shore GSK - 104,000 - - Y Y Y Y Y Y Y 70% 90% 10,400 - Salva PM RESET (Aviation) - 93,417 - - Y Y Y Y Y Y Y 95% 90% 9,342 - Shore Lowe/Draft - 65,000 - - Y Y Y Y Y Y Y 70% 50% 32,500 - Foster Praxair - 59,000 - - Y Y Y Y Y Y Y 90% 90% 5,900 - Manniso VA Florida Ohio buyer GTSI - 46,125 - - Y Y Y Y Y Y Y 90% 90% 4,613 - Hommes & Process (Fr) CCAIG - 40,000 - - 100%Marcus State of FL - 22,943 - - Y Y Y Y Y Y Y 90% 80% 4,589 - Edginton Intermec - 21,893 - - Y Y Y Y Y Y N 75% 75% 5,473 - Tyre American Express - - 678,000 - Y Y N N Y Y N 40% 40% - 271,200 Wilson Intel - - 310,126 - Y Y N N Y Y N 60% 60% - 186,076 McPartland KPMG - Servers - - 132,600 - Y Y Y N Y Y Y 35% 35% - 46,410 Marcus USG - New project - - 125,000 - y y y y y y N 75% 50% - 62,500 Foster Siemens - - 86,000 - Y Y Y Y Y Y Y 50% 60% - 51,600 Foster Siemens - - 55,000 - Y Y Y Y Y Y Y 50% 60% - 33,000 Boyd La-Z-Boy - - 45,850 - Y Y Y Y Y Y Y 65% 65% - 29,803
Prob AdjustmentsSales Qualifiers
Rep Account
Current Quarter's Forecast
B2B Sales Management 101 -- Other
Accounts ReviewsRecruiting (profile)Territory DistributionCompensation PlansSales Rep DevelopmentSales Process & methodology
B2B Sales Strategy 101Segmentation = Profits
All Customers Avg. Trans. < $3k
Avg. Trans > $3k
SMBs 28 108
VSBs 21 28
Total 185
Cancelled Customers
Avg. Trans. < $3k
Avg. Trans > $3k
SMBs 3 7
VSBs 11 7
Total 28
Monthly Churn Rate 1
Avg. Trans. < $3k
Avg. Trans > $3k
SMBs 2.6 % 1.6 %
VSBs 12.6 % 6.0 %
Total 3.6 %
1 Total churn rate (not shown) is calculated as cancelled customers (all time) divided by total customers (all time). Monthly churn rate is total churn rate divided by average customer lifetime of 4.16 months
B2B Sales Strategy 101Crossing the Chasm…
B2B Sales Strategy 101 Model Comparison
TRANSACTIONAL CONSULTATIVE ENTERPRISE
Product or service characteristics
Well UnderstoodReadily substitutableStandard items
DifferentiatedCustomizableHidden Capabilities
High Strategic and/or cost importance
Limited substitutability
Key buyer concerns and decision criteria
PriceAvailability riskEase of acquisition
Importance of problem
Solution fitPrice-performance
tradeoffs
Platform fitValues fitSustainability
Time horizon Event Purchasing stream Strategic plan
Nature of relationship
Cost - basedBuyer-sellerConfrontational
Benefits – basedClient-advisorCooperative
Trust – basedBusiness equalsInsiderBoth parties change
fundamentally
Prerequisites for success
Access to decision maker
Access to influencers
Access to strategy
Nature of sale Doing the deal Problem solving Agenda settingBoundaries blur-
unclear who is selling and who is buyingSource: Rethinking the Sales Force
B2B Sales Strategy 101Reason for shift to consultative model
Sales 5
Resource commitment needed for consultative selling
Sales 4Sales 3Sales 2Sales 1
$Cost
Source: Rethinking the Sales Force
Sales 5Sales 4Sales 3Sales 2Sales 1
%Return 0%
B2B Sales Strategy 101 Consultative Model
“Listening and gaining business understanding are more important selling skills than persuasion; creativity is more important than product knowledge.”“The only single ‘truth’ that seems to be holding true for all sales forces is that they have to create value for customers if they are to be successful. Just communicating the value inherent in their products isn’t enough.”“It’s a risky strategy in a consultative sales to go to a senior-level decision maker before thoroughly understanding the issues and problems where you can create value. Most good consultative salespeople will first do their homework by working with those influencers in the buying organization who have the best knowledge of the problems and opportunities where the selling organization hopes to create value.”
…Quotes from “Rethinking the Sales Force.” Neil Rackham & John DeVincentis
B2B Sales Case Study: Groove Networks
P0: Evaluation P1: Validation P2: Initial Rollout P3: Enterprise Rollout
REVENUE
COST OFSALE
B2B Sales Case Study: Groove Networks
P0: Educate P1: Validate P2: Initial Rollout P3: Enterprise Rollout
SALES ACTIVITIES• IT call(s)• Orientation• LOB/LOB IT calls• Validation
2 Track Pilot Trial:- IT validation- LOB pain project
• Implement seats & gather metrics
• Penetrate new LOBs• Engage enterprise
apps• Horizontal bus
processes
• Groove as standard desktop DNA
• Integrate w/ Ent Apps• Groove broadly
deployed and used throughout value chain
LOB Pain ID’dIT Champ
Validation Process
Pain ValidatedIT Validated
$100k+
Multiple Pain/Lob
IT Service Offer’g$500K+MSLSA
$1m/yrEvery desktop
2 months 2-3 months 6 months ongoing
B2B Sales Case Study: Groove NetworksQ1 (P)hase Movement
P1’sLowe $46KESP $50KAMEX $40KMattel $35KIntermec $22K
P2’sHP Mktg $770KOCPA $691KSiemens $111KSAIC $142KPraxair $100KNovartis $86kVLH $522KArmy $154KHP C&I $106KKPMG $100K
P0’sSPAWAR $18KHitachi $10KCARE $7KDuPont $7kVerizon $6KServiceCo $16k
Questions?