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Sales & Marketing: Revitalizing the Value Proposition
Keith O’BRienVice President, Global Research, Growth Team Membership™Frost & Sullivan
Keith.OBrien@frost.com
JiM KizielewiczSenior Vice President and Chief Marketing OfficerKronos incorporated
james.kizielewicz@kronos.com
Marketing and Sales Alignment conferenceSeptember 20–21, 2011
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
The Growth Team Membership™ (GTM)
CorporateStrategy
Corporate Development
Marketing
CompetitiveIntelligence
MarketResearch
SalesLeadership
R&D/Innovation
Investors/Finance
CEOMarketing
GtM is a subscription program that supports executives within the functions that report to the ceO
ceO’s Growth team™
GtM provides best practices, events, and services that enable executives to address challenges within their companies
GtM: creating client Value
GtM’s case-based best practices help executives:
Speed the design and implementation of initiatives by not reinventing the wheel
Save money and reduce risk by avoiding mistakes made by other companies
Accelerate problem-solving with a cross-industry perspective
improve their functions’ and companies’ performance and productivity
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
Firm: Kronos
industry: Software Services and Applications
headquarters: chelmsford, Massachusetts, United States
Geographic Footprint: Global
Ownership: Private
Revenue (2010): ~$750 million USD
Profiled Best Practice Company
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
Growth Challenge
Problem:
Slowing product growth forces Kronos’ marketing and sales organizations to create and deliver a differentiated value proposition.
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
Kronos’ marketing leadership works with Sales to revitalize the value proposition and create differentiated sales messages
creating and embedding a new Value Proposition
ActivitiesPerform market assessment•conduct brand positioning •workshopRun customer/prospect •focus groups
Activitiesconduct Affinity •Diagramming exercise to identify customers’ critical Business issues (cBis) Pinpoint how Kronos •uniquely addresses these cBis and translate into a value proposition
Activitiesconduct Power Messaging® •workshop with sales and marketing leadership to update messaging and techniques
Activitiesconduct Power Messaging® •workshops with entire sales forceestablish Sales and •Marketing leadership councils by vertical market
Objective conduct a baseline assessment of the current value proposition’s strengths and weaknesses
Objective Develop differentiated value proposition
Objective translate the value proposition into sales force messaging
Objective Achieve 100% adoption of new messaging by sales force
Output Market assessment•Focus group findings•Governing Brand idea (GBi)•
Output critical Business •issues (cBis) and key differentiatorsnew value proposition •Foundational Message Guide •(FMG)
Output new messaging techniques•Portfolio of customizable •messages
Output Sales force adoption of •customizable messages and techniques industry-specific Sales •and Marketing leadership councils to drive ongoing adoption
Revisit Existing Value Proposition
Create New Value Proposition
Develop Sales Messages
Drive Sales Force Adoption
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
Pressure-test market understanding and value proposition
Market Assessment Brand Positioning workshop
Situation
Management believed Kronos was the •market leader, but the company’s product revenue growth was flat, despite category growth
commissioned a third-party assessment of •the workforce management (wFM) market
Objective
capture the current state of the workforce management category.
Findings
t 3 wo customer segments exist: ease-of-use buyers who value straightforward -implementation with low cost of ownership (50%) Functionality users who value advanced -features (50%)
Kronos is the market leader, but growing slower �than the market
Kronos lacks a compelling category positioning �
ParticipantsSenior sales and marketing executives (one-day workshop)
ObjectivesAudit existing marketing messages and •collateral
Develop preliminary Governing Brand ideas •(GBis) to be tested in focus groups
“The experience to know it’s complex. The expertise to simplify it.”
“Workforce management doesn’t have to be so hard.”
“Simple solutions that work hard.”
Preliminary Governing Brand ideas (GBi)
need to revise brand positioning to appeal to both segments
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
Conduct focus groups to gather insights on the most effective brand positioning
Focus Groups
Objective: Validate Market Assessment findings
Sample Questionswhat are your top-three needs •addressed by a wFM solution?
On a scale of 1 to 5, how •important is fast payback to you?
ResultsUsers are frustrated with the •complexity of wFM solutions
Prospects who value ease-of-use •wFM solutions are currently underserved
Objective: identify the most convincing GBis
Sample Questionswhich positioning statement do •you find most compelling?
would the statement entice you to •consider Kronos?
Results“Workforce management doesn’t •have to be so hard” is an appealing brand position:
the statement defines the category -and appeals equally to functionality and ease-of-use buyers
Objective: Assess Kronos’ competitive standing
Sample Questionswhat is Kronos’ personality? •
For what type of solution would •you call ADP?
ResultsAwareness and consideration rates •are lower than expected
existing value proposition around •time and attendance benefits is undifferentiated
Perception of market strengths •does not align with customer/prospect perceptions
Action StepsSimplify the customer experience by •modifying the user interface
expand brand positioning to •accommodate ease of use and high-functionality customer segments
Action StepsDevelop a differentiated value •proposition
work with sales leadership to •embed new value proposition with the sales force
Action Stepsleverage the brand positioning in •marketing
create internal documents and •perform training to align employees on the new positioning
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
Develop a customer-focused, differentiated value proposition
Developing the Value Proposition
VP, corporate Marketing
cMO VP, enterprise Marketing
Control labor costs
Minimize compliance
risk
Improve workforce
productivity
Create Affinity Diagram Identify Critical Business Issues (CBIs)
cBis are core customer needs that can be addressed by workforce management solutions.
Develop Kronos’ Key Differentiators
Kronos provides 33 complete automation
Kronos delivers high-33 quality information
Kronos is easy to own 33
Marketing leaders identify how Kronos can uniquely address critical Business issues.
Using the Governing Brand idea as the foundation, Marketing leaders employ the Affinity Diagram to identify three critical customer needs that should be addressed by a workforce management (wFM) solution.
Workforce management doesn't have to be so hard!
Articulate Value Proposition
Kronos is the global leader in workforce management solutions that enable organizations to:
control labor costs•
Minimize compliance •risk
improve workforce •productivity
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
Create a Foundational Messaging Guide to provide a companywide reference point for the new value proposition
Foundational Messaging Guide (FMG)
Foundational Messaging Guide
contentswhy workforce Management? . . . 3 cBi #1 controlling labor costs . . 4 cBi #2 Minimizing compliance
Risk . . . . . . . . . . . . . . . 7 cBi #3 improving workforce
Productivity . . . . . . . . . . 9 Differentiator #1: complete Automation . . . . . . . 14Differentiator #2: high-Quality information . . . . . 17 Differentiator #3: easy to Own . . . . . . . . . . . . . 18
The FMG: An Overviewthe FMG is designed to align all employees on Kronos’ value •proposition and is updated regularly
the FMG demonstrates how Kronos addresses the two core •questions listed below
FMG Objectives FMG’s ability to attain objective
create common understanding of the value proposition Drive alignment on role of wFM, core customer needs, and Kronos’ solutions Supply the building blocks for differentiated sales messages Provide sales messages to address critical business issues �Develop selling techniques to be used with prospects �
why do customers purchase workforce management?
Answer: the three critical Business issues (cBis)
why purchase a Kronos workforce management solution?
Answer: Kronos’ key differentiators around each cBi
the FMG captures the value proposition in a written format; however, it does not enable Sales to articulate the value
proposition verbally.
In Summary
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
Translate the value proposition into effective sales messaging
Sales Force Adoption challenges
Power Messaging® workshop
Sales Messaging techniques
Bringing differentiators to life through customer messages
the sales force needs to believe in the messages
“not invented here” syndrome
Workshop ParticipantsMarketing leadership, Sales leadership, Key sales representatives, and Product Management
Purposetranslate differentiators into messages and delivery •techniques for SalesBuild sales and marketing consensus on messages and •techniques
Critical Inputswhy customers buy (cBis) and why they buy from Kronos •(differentiators)Preliminary success stories that demonstrate how Kronos •uniquely meets customer needs
Messaging Techniques
Message Attributes
Number Plays
Stories with
Contrast
Big Picture
3D Props
leverages customer storiesAppeals to multiple learning styles (visual, auditory, kinesthetic)customers can relate to the messageimpact is easily understood and memorable
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
Squeezing More Out of Scheduling
Jamba Juice
Key Products
timekeeping, •forecasting, scheduling
Develop easy-to-customize messaging techniques
how to create a Story with contrastRetail & Hospitality Customer Example
Before Kronos
Manual forecasting and scheduling •resulting in:
Gaps in coverage -Overstaffing -
inability to react to changing •conditions, especially the weather
no visibility into store operations•
Results Achieved
“The $19.7M decrease in labor cost was primarily attributed to optimization of labor scheduling, leading to more efficient labor management.”
– 2010 Annual Report
2008 labor = 36% of sales•
2009 labor = 34% of sales•
After Kronos
Automated scheduling•
Accurate baseline forecasts•
Quick reaction to weather conditions:•Overcast and cold—call people off -Sunny and hot—staff up -
companywide scheduling and •regulatory compliance
BusinessQuick-serve •restaurantSmoothies•
company Size
730 locations•Operates in 47 •states
the story must be relevant
emphasize the benefits of choosing Kronos
highlight pertinent results
it’s a story, so limit data
Make the customer the hero
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
Adoption Barrier:Skepticism
Adoption Barrier:Ownership
Drive sales force adoption by directly addressing barriers to adoption
Power Messaging® workshop with Kronos Sales Force
Workshop Overview
Attendees: Sales force (450 participants, in groups of 25–30)
Duration: two Days
Pre-work:
complete •Power Messaging® elearning module
Bring •examples of customer challenges successfully addressed by Kronos’ differentiators
Secure Buy-In on the CBIs and Differentiators
Overcoming the Barrier:the facilitator leads a group exercise requiring participants to “wrestle” with the new messaging:
Discuss the cBis and •differentiators candidly and compare them to existing messages
Prove that the differentiators •are unique compared to competitors’ offerings
emphasize positive •engagement with the differentiators
Create Ownership of the Techniques
Overcoming the Barrier:the facilitator helps participants tailor their own success stories for the new messaging techniques by:
encouraging participants •to use multiple messaging techniques and select the ones they prefer
Put the Techniques into Practice
Overcoming the Barrier:the facilitator leads role-play sessions to practice message delivery and drive behavior change:
Participants present their •stories using the new techniques and receive peer and facilitator advice
Participants build their •confidence in the messages and techniques
Adoption Barrier:Confidence
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
Establish Sales and Marketing Leadership Councils to drive ongoing application of the value proposition
Sales and Marketing leadership council
charter
Sales and Marketing leadership council
PurposeRun operations •reviews of each vertical market
Build and •maintain trust and transparency
ResponsibilitiesMonitor the state •of the business
examine sales •and marketing effectiveness
Meeting ScheduleMonthly for four hours
Marketing
Attendees:Director of Marketing; VP, enterprise Marketing
Value Proposition Support:
Develop Stories with •contrast for Sales
Provide presentation •templates
Sales
Attendees:Area VP, Sales; Director of Sales Management
Value Proposition Support:
conduct follow-on •training
Provide customer •success stories to marketing
Product
Attendees:Director of Product Management
Value Proposition Support:
Align the product •roadmap
ensure development •plans address customer issues
Services
Attendees:Director of Services
Value Proposition Support:
train services staff •
ensure the customer •experience reflects the promised value
Example:Spot-check sales presentations for consistency with brand messaging
Example:Video mock sales presentations using new messaging techniques and provide feedback
Example:Use customer review panels to confirm innovations reflect the voice of the customer
Example:certify services staff so they communicate the same value proposition to customers
Retail & hospitalityManufacturing Public Sectorhealthcare Service &
Distribution
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
Business Results
Percentage of Sales Force Using Power Messaging® techniques
(Survey of Kronos Sales Force)
impact of Power Messaging® techniques on closing Business
(Survey of Kronos Sales Force)
Annual Revenue and eBitA*
* EBITA is earnings before interest, taxation, and amortization.
Very Consistently
Consistently
Somewhat Consistently
71%
21%
8%
Somewhat Consistently
Very Consistently
Consistently
Very Consistently
Consistently
Somewhat Consistently4%
80%
16%
Some Impact
High Impact
Significant Impact
$600$620$640$660$680$700$720$740$760$780$800$820
$0
$50
$100
$150
$200
$250
FY 2008 FY 2009 FY 2010 FY 2011 projected
Revenue($ Millions)
eBitA($ Millions)
Revenue
eBitA
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
Register for a webinar with Charles DeWitt (Kronos Inc.) and Tim Riesterer (Corporate Visions)
Ask the Thought Leader Webinar
Sales & Marketing: Revitalizing the Value Proposition
tuesday, 27 September 201111:00 et(Duration: One hour)
ReGiSteR for Free at http://www.frost.com/Atl
the webcast will feature:A best practice case study that shows how Kronos’ Marketing and Sales developed and •delivered effectively a differentiated value propositionKey lessons learned and Q&A with charles Dewitt, VP—enterprise Marketing and tim •Riesterer, cMO
charles Dewitt tim Riesterer
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