2000-2002 Copyright - YankeeTek Confidential Selling 1001 By: Tim Kraskey Managing Director, YankeeTek Ventures PROMOTING THE GROWTH OF GREAT IDEAS

2000-2002 Copyright - YankeeTek Confidential

Selling 1001

By: Tim Kraskey

Managing Director, YankeeTek Ventures

PROMOTING THE GROWTH OF GREAT IDEAS


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Who is Tim Kraskey

Tim Kraskey – Currently is a Managing Partner at YankeeTek Ventures, an early stage venture firm focused on technology in the Boston area.

Over 15 years of experience in sales, marketing and operations of networking companies. An entrepreneur and co-founder of Sahara Networks (Acquired by Cascade/Ascend/Lucent). Worked in senior management/Sales/Marketing positions for Newbridge, Cascade, Ascend, GDC and ADC Telecommunications.


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What is Selling!

•Definition:

“Selling is the transfer of products or services from one person to another through an exchange mechanism called money.”


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Selling is NOT …

• An art. It is a Process.

• A “Low-Life” profession.

• Done solely on relationships.

• Throwing out the latest features.

• A price game.

Remember: “The Customer Pays your Paycheck


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Selling Facts

• “PEOPLE BUY NEEDS SATISFACTION”• Selling is the fastest way to wealth outside of

an inheritance.• “Sales success is a continuous journey

towards the achievement of predetermined goals.” (by: Tom Hopkins).

• 20% of your customers will generate 80% of your sales.

• Sales is a “Numbers Game”.• Sales is a “Planned Process.


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Sales Building Blocks


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Why Sales People Fail?• Lack of planning.• Lack of product knowledge.• Poor work habits and time management.• Lack of desire, ambition or drive.• Lack of vision for opportunity.• Inability to handle objections.• No self-confidence and easily discouraged.• Can’t close effectively.• Poor presentation skills.• Poor listener or communications skills.


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The Ideal SalespersonMind: Top salespeople truly understand the customers

business. They strategically plan all sales calls.

Eyes: Sales superstars look at situations from the

customer’s point of view. They see their customers as

partners.

Ears: The best salespeople are the best listeners. They

involve their clients in creating solutions to needs.

Nose: A top performer can smell an opportunity through knowledge, communications

and persistence.

Heart: The surest way to a customer’s heart is honesty.

Good salespeople only promise what they can

deliver.

Technology: The superstars use telephone, computers, etc. to access information to out flank the

competition.

Legs: Savvy salespeople use their influence within the company to help meet their clients’ needs and get a leg

up on the competition.

Feet: Fancy footwork and product knowledge are no longer enough. The right to

do business must be earned, not assumed.


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The Selling Triangle

Pro

duct

Kno

wle

dge

Selling Tactics & Strategies

Attitude, Enthusiasm & Goals

Source: Tom Hopkins


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What People Buy …

Benefits

Features

Options

ModelBrand

Repair

Installation

Warranty

Service

Credit

Source: Selling & Sales Management

Core Product

Formal Product

Ancillary Product


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The 7 Step Sales Process

1) Plan1) Plan

2) Meet

3) Qualify

4) Propose

5) Confirm

6) Close

7) Assure

Target MarketSegments or Specific

Prospects

InitialContact

Get Needs

Presentation

ProposeSolution

Confirmthe

Order

New SatisfiedClient

Get Referral

Source: Be Your Own Sales Manager


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Sales Planning


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Account Planning

• What are the key events in the sales cycle?• Who are the target customers?• Have I completed the Feature/Benefit

analysis for my products vs. the competition?• What are the sales call objectives?• What are the pluses/minuses that affect the

sale?• What supporting information and resources

do I have?


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Sales Prospecting


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Prospecting• It about gathering information over time.• How do find out “Who” to contact?• Prospects or “Leads” come from many areas.

Example: Real Estate …– Friends– Parents– Coworkers– Churchgoers– Mechanic– Doctors/Dentists– Teachers– Fraternity or Sorority– Local company HR departments

• Employ the 3 foot rule!• Your best prospect is your last satisfied customer.


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Prospecting (cont.)• Words to eliminate in your sales vocabulary …

Source: Tom Hopkins

Instead of … Use …

Sell Get them involved or help them acquire

Contract Paperwork, agreement, or form

Cost or Price Investment or amount

Payment Investment or amount

Pitch Present or demonstrate

Buy Own

Deal Opportunity or transaction

Objection Area of concern

Problem Challenge

Appointment Visit, as in “pop by and visit”

Sign Approve, authorize, endorse, or okay


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Sales Product Knowledge

“Never make a call until you know your products!”


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Know your Product/Service/Company

• People buy “Benefits” not features.– A feature is a descriptive set of characteristics of a product

or service.– A benefit is the “Satisfaction” of a need you get from the

feature of a product or service.

• Feature/Benefit needs analysis.Product or Service Name

Pencil

No. Feature Benefit What the competition will say?1 8" Long Long lasting2 No. 2 Black lead Won't smug easily3 Accommodates special naming Advertising company name4 Eraser Mistake can easily be removed5 Six sided Easy to grip and won't slip

• Know your competitions products/services and how they might beat you.


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Know your Customer …• Develop an account profile on each account.

– Company history and key locations– Mission statement– Financial condition - growth/decline (D&B rating and annual

report)– Founders or key management– Stock information & performance– Product offerings– Marketing and advertising policy– Customer service policy– Quality and ethics policy– Distribution and sales policy– Personnel and employment policy


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The Sales Call …• The sales call is also called prospecting.• Know “Who or Whom” you are prospecting

on.• Types of calls.

– Telemarketing & Telephone– Direct Mail– Person-to-Person– E-mail

• You need to have a “HOOK”.– A hook is the message to getting to the next step

in the sales process.


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The Sales Meeting …• Know before you meet “Who or Whom” you are

presenting too …• Go prepared with backup failure scenarios (e.g.

No projector, burnt out bulb, etc.).• Probe for areas of need.

– Use “open” probing questions for discovery.– Use ‘closed” probing questions to quantify need.

• Being dumb like a fox!

• When you discover a need …– Acknowledge the need.– Introduce the appropriate benefit(s) that will satisfy

the need.


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“Active Listening”• Why did God give us 2 ears and 1 mouth?• Listen for …

– Main supporting points.– Focus on key words to support points.– Categorize key points.

• Pros vs. cons• Advantages vs. disadvantages• Likes vs. dislikes• Similarities vs. differences

– Clear vs. unclear message.• Verify message

“Remember, every time you open your mouth in the presence of someone who has superior knowledge, you display to that person your exact stock of

knowledge, or lack of it! Genuine wisdom is usually conspicuous through modesty and silence.”

By: Napoleon Hill


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Maslow’s Model

Self-Actualization

(Fulfillment of IndividualPotentialities)

Achievement and Esteem(Self respect, esteem of others, need for

achievement, prestige & status)

Affiliation(Love, affection, belongingness, acceptance)

Safety(Order, need for security, no risk, stability)

Physiological(Water, food, shelter, sleep, sex)


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Influence TypesType Definition

User The person using the product.

Influencer The person who help influence the sale, such as a consultant.

Technical Decision Maker

The person who qualify, technically the product or service.

Economic Decision Maker

The person who has the authority to approve the purchase.

Buyer The actual purchaser, usually a purchasing agent.

Enemy The person who does not want your product sold to the company.


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Psychological “Needs” of SellingPsychological Needs Decision Making Process Sales Cycle Timing

Power Bold decisive decisions; Influences control of the sales process on others.

Fast

Achievement Bold decisive decisions; The need to accomplish or see change; Results driven.

Fast

Recognition Moderate decisions; Influences the sales process on others and must be recognized.

Moderate

Affiliation Moderate decisions; Team or group driven; Influences the sales process with others.

Moderate

Control Cautious decisions; Must have order, process or rules; Influences others sometimes.

Slow

Security No real decisions; Avoids risk or change; No real influence on others in the sales process .

Slow

Source: Tom Hopkins & Tim Kraskey


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Multi-Level Selling

• When selling in large organizations, you will have different “Needs” satisfaction in various departments and individuals.

VP EngineeringAchievem ent

Dir. M anufacturingSecurity

VP O perationsSafety

Outside ConsultantEnem y

Dir. M arketingAffiliation

VP M arketingControl

PurchasingM anager

Recognition

CEOPow er

Circle of Influence


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8 Basic Objections

• 80% of all objections come down to these 8 classifications.

2) Price

3) Quality

4) Service

8) Competition

7) Application

6) Delivery

5) Experience

1) Reputation


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Handling Objections …• Define & determine existence of obstacles.

– Hear them out.– State, confirm and question the obstacle.– Answer it after you are sure you understand it.

• Apply “Needs” satisfaction to the obstacles.– Remind customer of any benefits accepted.– Offer alternatives.– Build a win-win solution.

• Offer “Proof” for any skepticism.• If a prospect shows indifference…

– Probe to uncover unrealized needs.

• “It costs too much” = Opportunity.– When a prospect says this line it is an opening to find out

what he can spend.


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Territory Management• You need to analyze the prospects and the

geography.– Goals need to be set.

• Long term – Within 1 year• Short term – Interim results towards long term goals

• Prospects need to be categorized.– A, B, C …

• Focus on prospects with high degree of high expected value.

• Develop a plan for each account.• Time is the real “Death of a Salesman”.• Time is MONEY.


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• Prospects need to be categorized.– A, B, C …

Territory Management (cont.)

C

B

A

Give to the Competition

Strategic FocusTactical Focus

Do when Time Permits


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Strategic vs. Tactical Selling

• Strategic selling is the 20/80 rule.

• Long term vs. short term goals.– Manage objective vs. time.

• What 10 prospects will make my quota?– How do I get them?

• Effective time management is the key.

• All other activities are “Tactical”.


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How Much is Your Time Worth?

• What is your cost per hour?

• What does it cost your company per hour?– S/W = $75/Hr. @ a $1.5M quota– H/W = $125/Hr. @ a $2.5M quota– Avg. 2000 hours in a year


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Activity Quotas

• Number of …– Calls made on new customers– Calls on existing customers– New accounts won– Demonstrations– Training sessions– Service calls

• Again, “It’s a numbers game”.


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Channels

• Are extensions of your sales force.– Training– Reporting

• Must compliment the Sales/Marketing/Company strategy.

• Pricing must meet both your company and channels profit directives.


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Sales Closing


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Most Common Reasons Given Not to Buy

• Financial• Cannot make decision• Fear of making wrong

decision• Using competitor’s

products• Has no use for the

product/service• Doesn’t see the value• Does not understand the

products value

• No immediate need• Price too high• Does not meet quality

standards• Can’t be delivered on time• Needs approval from others• Doesn’t like the salesperson

“These will affect your ability to Close”


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What is Closing?

• Close is the tangible measure to the “goal” you have set for the sales process. It includes …– A meeting– A request for a demonstration– A commitment to an order

• Sales people should close on every sales call.


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When do you Close?• When you see buying signals …

– Summarize benefits from the call.– Formulate an action plan that requires a

commitment.

• Types of buying signals from a prospect …– Makes a positive statement about the product.– Asks about price, installation or delivery.– Wants to test or try the product.– Changes voice/actions to be more positive.– Wants references.– Physically handles the product.– Asks about buying incentives.


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One Key Sign a Close is Near!

• When a customer says, “It Costs too Much”! – “You know you should win this deal”.

• Price is usually the last hurdle to climb to getting the order.


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Closing

• Don’t change your style when preparing for a close.

• You must “Ask” for the order.• Close with confidence.• Closing should make your customer feel

“Good”.• Follow-up: After you get an order make

sure the customer is HAPPY. If they are HAPPY, ask for a referral.


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Transitioning to Sales Management

• “Super Salesperson” = Includes adjectives that describe an individual who works best alone, with very little direction (A lone wolf).

• “Super Sales Manager” = Includes adjectives that describe an individual who works best through others.

A CONRADICTION?


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Sales Management

• Selling is different than Sales Management.– The “Best” sales people usually are the worst

managers.

• Sales personnel do what you as a manager “Inspect”. Inspect what you require the sales team to do.

• Manage by specifics that are quantifiable (e.g. Pipeline, objectives and quotas).

• Have all sales personal do a territory plan and update it quarterly.


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The Sales Effect to the Process

- No. of Salespeople

- Staffing- Training- Procedures- Tools- Information- Motivation- Compensation- Monitoring- Feedback

Sales ManagerControllables

- Marketing Strategy

- Marketing Mix- Product- Price- Promotion- Place

- No. of Calls- Quality of Calls

- Content- Communications- Service

- Allocation of Effort

CorporateInput

SalespersonInput Variables

- ROI- Growth- Net Profit- Market Share

CorporatePerformance

- Sales Volume- Sales Mix- Sales Costs

SalespersonOutput Variables

- Contribution to Profits

- Return on Assets Managed

- Sales Cost Ratio

SalespersonPerformance

Source: Henry Porter


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Sales Management (cont.)

• Review your sales staff every 3 months.– Be prepared to make immediate changes

after review.

• Have signals on joint sales calls with you and your team members.– One to end the call.– One turn to the call over to the sales

manager.


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• All training must be measurable or don’t do it.• Paperwork:

– File for each sales person and performance vs. objective.

– File for recruiting and active prospects.

• An itinerary should be updated by each sales person once a week on Monday. Should only include “A” accounts and “Cold Call Prospects”.


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• Planning is a “One-on-One” activity and NOT a group effort.

• Spend 80% of your time as a manager on the “High Potential” accounts and the “A” accounts. All “C” accounts with low priority should be left to a competitor.

• Appraisals: Should be done in writing. Leaves “No Shocks” when action is required.


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• Sales manager should expect sales team to be prepared before a call with:– Company Profile– Personnel Profile– Historical Data

• Do a “Trunk” inspection when visiting a territory. Should include:– Literature– Samples– Be Clean


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• Only give a couple days warning when traveling with a sales member.– Give positive feedback before negative.– Summarize the trip and place it in the file.

• Call reports should be mandatory after every call.

• Recruiting is the hardest part of sales management.


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• Firing a Sales Member:– Do it on a Monday. Never Friday.– Have a case in writing. Objective vs. Plan.– Don’t fire someone in your office (e.g. Meeting

room) with a witness.– Hire sales members on at “At-Will” basis.– Pay the sales person commission owed.– Give them the opportunity to resign.– Never give information on a former sales

employee.


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Recruiting Sales People• Good Sales People are?

– Realistic – Thorough – Articulate – Good planners – Assertive – Persistent– Winning attitude– Have great communications skills– Well groomed

Want $$$


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Sales Compensation• Straight salary plan• Straight commission plan• Combination base + bonus plan

– Before quota objective– After quota objective

• Additional bonuses– Product spiffs– Timing spiffs– Marketing spiffs

• Management overrides


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Account Management Systems

• Many software systems exist today.– www.salesforce.com– ACT, Siebel, Outlook, etc.– Keep it simple and accurate.

Garbage in = Garbage out.

• Call reporting is a must.

• Forecasting is a must.


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Sales Forecasting & Pipeline• Forecasting needs to be quantifiable and

predictable.• Do “NOT” allow sales people to make up the

metrics.

Joe Smith Forecast Month May, 200220-Apr-02 Territory Northeast

Customer Name Product or Order *Probability $ Value (000's) CommentsService Month of Success 30 60 90+

ABC Co. 3270 June 90% $150 Told we WONMaster Lock July 75% $300 NegotiatingZebco Safe Aug. 75% $450 Proposal Submitted

Real Co. Sept. 25% $200 Proposal SubmittedTotal $150 $300 $650


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Sales Forecasting MetricsSales Process Status Time Percentage

Closed/Lost 0%

- Company identified- Prospecting key contact/levels and decision making process- Product materials sent- Webinar held/completed

Open 1-2 Months 25%

- Decision makers identified- Early meetings held and needs assessed- NDA signed - Project identified and RFI/RFP process has begun- Project has early funding- Negotiating evaluation & timeline

Open 1-6 Months 50%

- Sponsor identified- Lab evaluation has been approved/installed - Test/Deployment plan has been agreed to- Project has been fully funded- Customer pilot test site confirmed - RFI/RFP has picked us as 1 of 3 players- Business discussions underway/contract negotiation

Open 1-6 Months 75%

- RFI/RFP has been won – Verbal order given- Product is available- PO & contract to close in 30 days

Open 1 Month 90%

- PO received Closed/Won 100%


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Know your Customer …• Develop an account profile on each account.

– Company history and key locations– Mission statement– Financial condition - growth/decline (D&B rating

and annual report)– Founders or key management– Stock information & performance– Product offerings– Marketing and advertising policy– Customer service policy– Quality and ethics policy– Distribution and sales policy– Personnel and employment policy


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Know Your Contacts• What to keep track of on your prospects/customers …

– Names– Company names– Addresses– Various phone numbers– E-mail addresses– Assistants name– Best times of day to reach the client– Dates, locations, and times of appointments– Notes on conversations– Correspondences sent– Products or services ordered– Delivery dates– Challenges that arose and how you overcame them– Future growth plans and forecasts– Birth date, hobbies, how long they have been with the company, etc.


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Sales Ethics

• It is best to be “Honest.”

• If you “Lie” you will eventually be caught = Loss of trust which, in turn

= No sale or lose your job.

• Many clients are unethical. Walk away from the sale or find a way to go around.


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References and Other Reading

• “How to Master the Art of Selling,1982”, by Tom Hopkins• Selling for Dummies, 2001”, by Tom Hopkins• “Think & Grow Rich, 1990”, by Napoleon Hill• “The Official Guide to Success, 1982”, by Tom Hopkins• “Changing the Game: The New Way to Sell, 1987”, by Larry

Wilson• “Be Your Own Sales Manager, 1990” by Tony Alessandra, Jim

Cathcart & John Monoky• “Strategic Selling, 1985”, by Robert Miller & Stephen Heinman• “Strategies for Effective Listening, 1977” by Xerox• “Account Development Strategies, 1980” by Xerox• Managing Time & Territory, 1979”, by Xerox• “Professional Selling Skills, 1983”, by Xerox


Thank YouTim Kraskey

Managing Director(617) 250-0500

[email protected]

PROMOTING THE GROWTH OF GREAT IDEAS

Documents

2000-2002 Copyright - YankeeTek Confidential Selling 1001 By: Tim Kraskey Managing Director, YankeeTek Ventures PROMOTING THE GROWTH OF GREAT IDEAS