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How to drive sales and customer loyalty in a rapidly changing buying environment. CEB and Implement Consulting Group have formed a strategic partnership to bring the best commercial insight and support capabilities to clients seeking to improve commercial operations and outcomes. Together, we hope to provide valuable perspectives on today’s key commercial challenges and to offer a unique set of support capabilities, enabling companies to compete more effectively in rapidly changing global markets.
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Using the Latest Sales Insights to Lead Commercial Transformation
7 October 2014 – Copenhagen
Presenters:
Stig Albertsen
Zach Gropper
© 2014 CEB. All rights reserved. 2
Striving for Commercial Excellence
Value Proposition
Design
Commercial Messaging
Sales Process & Pipeline and
Sales Tools Design
Go to Market – Segmentation &
Prioritization
Commercial Competencies & Skill Build
Commercial Leadership & Opportunity
Coaching
AcceleratedGrowth
Realizing excellence across a complex organization requires smart strategies for organizational design, enablement and leadership. To achieve change with impact, companies also need a catalyst…a common and compelling approach on which to center their transformation.
+
© 2014 CEB. All rights reserved. 3
Harnessing the Power of Data and Best Practices
CEB’s Research-based Business Model
Research and Insights
Proven Best Practices
Advisory Support
Decision and Diagnostic Tools
Peer Benchmarks
Executive Networking
Live and Online Learning Events
Recent Sales Research Studies
• Creating Customer Consensus
• Hiring Top Sales Talent
• Driving Manager Effectiveness in the Insight Selling Era
• The Voice of the Sales Force: Engagement and Retention Trends
• Creating a Customer-Verified Sales Process
• Replicating the New High Performer
© 2014 CEB. All rights reserved. 4
Roadmap
How Has the Buying Process
Changed?
What Does Challenger
Sound Like? How Do I Adapt?
© 2014 CEB. All rights reserved. 5
Reluctant Customers
The Good
Customers’ time horizons extended
1
Contact turnover stabilized
2
Customers open to new ideas
3
Customer spending still down
4
Price pressure still significant
5
The Bad The Ugly
Consensus requirements
expanding
6
Customers push risk onto suppliers
7
Increased demand for customization
8
Customers using consultants to drive purchase
9
© 2014 CEB. All rights reserved. 6
A Different Kind of Buying
Customer Due Diligence
Begins
Customer’s First Outreach
to Supplier
Customer Purchase Decision
57% Complete
Customer Needs Well-Scoped
Priorities Set
Requirements Mostly Defined
Providers Compared
Prices Benchmarked
Customer Purchase Timeline
© 2014 CEB. All rights reserved. 7
What Drives Purchasing Decisions
Company and Brand Impact
Product and Service Delivery
Sales Experience
Value-to- Price Ratio
53%
19%
19%
9%
Percentage of Contribution to Customer Loyalty
What customers want from sellers: • Unique perspectives on my business • Help me navigate alternatives • Help me avoid potential mistakes • Teach me about new issues • Be supported within my organization
© 2014 CEB. All rights reserved. 8
Profile of Today’s Sellers
The Hard Worker
• Strong process
management skills • Doesn’t give up easily • Self-motivated • Interested in feedback
and development
The Relationship
Builder
• Builds advocates in customer organization
• Generous in giving time to help others
• Good interpersonal skills
The Challenger
• Personalizes sales
message to the customer
• Knows how to drive the customer to a decision
• Delivers new insight to customers
The Lone Wolf
• Follows own instincts • Self-assured • Difficult to control
The Problem Solver
• Reliably responds to
internal and external stakeholders
• Ensures that all problems are solved
• Detail oriented
5 Behavioral Profiles Identified in CEB research of 30,000 sellers
© 2014 CEB. All rights reserved. 9
Challengers Most Likely to Win
22%
14%
26%
17%
12%
7%
The Hard Worker The Problem Solver The RelationshipBuilder
23%
15%
39%
25%
The Challenger The Lone Wolf
Percentage of Core Performers
Percentage of High Performers
Percentage of Population
© 2014 CEB. All rights reserved. 10
Complexity Widens the Gap…
20%
54% 25%
25%
26%
10% 18%
7% 11% 4% Relationship
Builder
Problem Solver
Hard Worker
Lone Wolf
Challenger
Complex Selling
Transactional Selling
High performers are 4.7x more likely to be
Challengers in complex environments.
4.7x
Percentage of High Performing Sales Professionals
© 2014 CEB. All rights reserved.
Critical Components of the Challenger™ Sales Model
Source: CEB Sales Leadership Council’s Rep Skills Diagnostic
Teaches for Differentiation … delivers insight to customers
Takes Control … develops the business opportunity and manages the purchase decision
Tailors for Resonance … communicates sales messages in the context of the customer
What it Means to Challenge Customers
Challenger
© 2014 CEB. All rights reserved. 12
Another Evolution in Sales
Moving Sales from Value Articulation to Value Creation
Product-Based Selling (pre 2000)
Solutions Selling (2000 – 2008)
Challenger Selling™ (2008 – )
Nature of Relationship
• Frequency-based • Service-based • Insight-based
Value Created Through
• Product Design • Customization • Enhancing Customer Competitive Strength
Defining Features
• Positions product against price
• Minimal investment of customer time
• Rep well versed in product features and price
• Designs unique solutions from needs analysis
• High investment of customer time
• Fraught with problems (rep diagnostic skills needed, executing on complex solutions)
• Discussion orients around unarticulated problem
• Low investment of customer time
• Rep must be a Challenger and know customer’s business
© 2014 CEB. All rights reserved. 13
Roadmap
How Has the Buying Process
Changed?
What Does Challenger
Sound Like? How Do I Adapt?
© 2014 CEB. All rights reserved. 14
Commercial Insight
Commercial Insight
General Information
Accepted Information
Thought Leadership
Insight
1
2
3
4
5
Commercially insightful messages lead back to the supplier exclusively, and also challenge conventional wisdom.
Challengers use the right message when approaching the right customer stakeholder
© 2014 CEB. All rights reserved. 15
From Features and Benefits to Teaching
■ Leads w/ value of product features ■ Focuses conversation on known
customer needs
Before
Feature-Oriented Interaction Teaching-Oriented Interaction
After
Impact of Hygienist Absenteeism Annual Absenteeism Rate: 34% Associated Turnover: 10% Lost Revenue / Missed Appt. $2,500
Total Opportunity: $500,000
“I’d like to talk to you about the drivers and costs associated with hygienist absenteeism…”
“Our product’s lightweight, ergonomic design is
revolutionizing dental care. Your hygienists will love it.”
■ Leads with issues costing customers $$ ■ Tells customers something they don’t
know about themselves ■ Concludes with Dentsply solution
© 2014 CEB. All rights reserved. 16
Roadmap
How Has the Buying Process
Changed?
What Does Challenger
Sound Like? How Do I Adapt?
© 2014 CEB. All rights reserved.
Now the Hard Part…
COMPANY Value Proposition
CUSTOMER Value Perception
• Only 47% of the information used during customers’ purchase decisions comes from a supplier.
• Only 14% of Customers perceive a real difference between supplier offerings AND value the difference enough to pay for it.
• Only 13% of CMOs agreed that “If I Removed the Identifying Information for Our Commercial Collateral and Pitch Material, Our Customers Could Easily Determine It Came from Us.” Source: CEB Research
© 2014 CEB. All rights reserved.
Challenger is an Organisational Capability
Source: Sales Leadership Council research
Sales Professional’s Role:
Commercially “Teach”
Customers
Manager’s Role: Coach, Develop and
Reinforce Behaviours
& Messages
Marketing’s
Role
Creation of Commercial
Teaching Insight
A consistent process of market
intelligence collection must be
established to ensure the sustainability
of commercial teaching insight creation.
Challenger™
Model
Continuous on-the-
job development of
teams
Powerful message
to reframe
perceived value
Scaling
infrastructure to
support
development
Managers must be equipped with the
tools and competencies to coach and
reinforce the Challenger™ skills across
their teams and to reinforce
differentiated sales messages. Manager
capability is critical to the long term
sustainability of any initiative.
Product Marketing must arm the
front line with commercial teaching
value propositions and collateral
that lead to your unique
differentiators not with them
In order to install and sustain the Challenger™ commercial model, action must be taken across the following 3 critical pillars
© 2014 CEB. All rights reserved. 19
Pricing & After Market Strategy
Commercial Excellence
Ancillary Services
Corporate Strategy
Strategic Planning
Commercial Strategy
Sales Excellence
Accelerated Sales
Effectiveness
Sales Acceleration Segmentation Segmentation
Corporate Strategy
Re-negotiation strategy
Sales Acceleration
Commercial Transformation 2.0
© 2014 CEB. All rights reserved. 20
For Discussion – Applying Challenger Within Your Business
To what extent does your commercial organization bring new insights to customers ?
To what extent do you have a value proposition that is framebraking, and forces customers to look at their business in a different way?
How do you ensure that sales and marketing is aligned in the way you communicate with and challenge customers?
Please discuss the above at the tables, and write your main take-away of the day on a card-board
© 2014 CEB. All rights reserved. 21
Commercial Transformation Onsite (2 – 3 Hours)
Maximum of 5 Participants Recommended Attendees: Senior Sales Leader, Marketing Leader, Business/Line Leadership, 1 Sales Manager, 1 Sales Person
1) How are our customers changing how they buy?
2) How well are Sales and Marketing aligned to bring Insight to our customers?
3) Do our customers see our value proposition as differentiated?
4) What preparations do we need to make to support our team to deal with the complex consensus purchase?
5) Does the Challenger Model fit for my organisation?
© 2014 CEB. All rights reserved.
About Implement Consulting Group
© 2014 CEB. All rights reserved. 23
About CEB
Who We Are CEB is the leading member-based advisory company. By combining best practices with advanced research methodologies and human capital analytics, we equip senior leaders and their teams with insight and actionable solutions to transform operations. CEB enables executives to harness peer perspectives and tap into breakthrough innovation without costly consulting or reinvention. The CEB member network includes more than 16,000 executives and the majority of top companies globally.
25+ Years of Experience
50+ Countries Represented
5,300+ Participating
Organizations
225,000 Business
Professionals 50% of the Dow Jones Asian Titans 50
85% of the Fortune 500
70% of the FTSE 100
Marketing & Communications
Innovation & Strategy
Information Technology
Finance
Legal, Risk & Compliance
Human Resources
Procurement & Operations
Sales & Service
© 2014 CEB. All rights reserved.
Thank you Stig Albertsen Partner, Implement Consulting Group +45.23.38.00.70 [email protected] Zachary Gropper Managing Director, CEB +44.207.632.6508 [email protected]
Implementconsultinggroup.com
Implement Consulting Group Implement Consulting Group is a leading Scandinavia based management consultancy, specialised in driving strategic transformations with a strong differentiator on “making change happen” – delivering documented Change with Impact.
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