Align Your Sales Strategy With Your Corporate Strategy Russ Lombardo PEAK Sales Consulting (702)655-5652 [email protected]

Align Your Sales Strategy With Your Corporate Strategy

Russ LombardoPEAK Sales Consulting

(702)[email protected]

www.PeakSalesConsulting.com (702) 655-5652

Where is Your Strategy Going?


Is your sales plan aligned with your corporate strategy?

A. Yes, totally

B. Some, but not enough

C. No


Sales Effectiveness & Customer Retention Survey – Jan. 2004

Is your sales plan aligned with your

corporate strategy?

48%50%

2%

0%5%

10%

15%20%25%30%

35%40%45%50%

% R

esp

on

den

ts (

To

tal

# 42

)

Yes, totally Some, but notenough

No


Impact of Misaligned Strategies

Perplexed Management

Dispersed Sales Resources and Efforts

Inconsistent Forecasts/Revenue

Conflicting Marketing Messages

Confused Customers

Negative Effects on Customer Retention


Symptoms

Negative Positive

Leadership Clouded &

inconsistent

Clear vision &

direction


Symptoms

Negative Positive


inconsistent

Clear vision &

direction

Communication Problems,

concerns &

creativity not

shared

Top-down,

clear w/ buy-in

of goals & obj.


Symptoms

Negative Positive


inconsistent

Clear vision &

direction

Communication Problems,

concerns &

creativity not

shared

Top-down, clear w/

buy-in of goals &

obj.

Management Cumbersome and

lacks verification

Processes in place

to monitor

progress


Symptoms

Negative Positive


inconsistent

Clear vision &

direction

Communication Problems, concerns

& creativity not

shared

Top-down, clear w/

buy-in of goals &

obj.


lacks verification

Processes in place

to monitor

progress

Courage No risk-taking Instinct & guts to

make tough

decisions


Symptoms

Negative Positive


inconsistent

Clear vision &

direction

Communication Problems, concerns &

creativity not shared

Top-down, clear w/

buy-in of goals & obj.


lacks verification

Processes in place to

monitor progress

Courage No risk-taking Instinct & guts to

make tough decisions

Timeliness Unnecessarily long

and drawn out

Efficient to meet

customer demands


Corporate Strategy

Defines the overall “Sales Process”

The process by which a Customer moves

throughout the entire company

Marketing Marketing CampaignsCampaigns

Leads

MarketingMarketing

Tech Support

Order Processing

Customer

ServiceAccounting

Telemarketing

Management

Field Sales

The Corporate Silo


The Effect on the Customer

Stop screwing with their mind!

Poor Support

Service Failures

Unmet

Expectations

Confusion

Exposure to Competition

Reduced Customer Spend

FurtherFurtherQualifyQualify

- Calls- Calls- Appts- Appts- Quotes- Quotes- Proposals- Proposals- Tech Info- Tech Info- Correspondence- Correspondence

CloseClose$$$$$$


Leads

InboundInbound

MailingMailingListsLists

MarketingMarketing

Lit Kit - Outbound- Scripts- Data Gathering- Qualify- Assign Field Rep- Send Info

Tele-Tele-MarketingMarketing

- Generate Invoices- ReceivablesAccountingAccounting

AccountHistory

- Order Tracking- Customer Follow Up- Sales InquiriesCustomerCustomer

ServiceService

- Trouble Tickets- Incident Tracking- Problem Escalation

Tech SupportTech Support

Problem/Problem/ResolutionResolution

R&DR&D

CustomerCustomerProfileProfile

LeadsLeadsAnalysisAnalysis

* *

*

*

- Process Order- Fulfillment- Schedule Shipping

OrderOrderAdminAdmin

Forecasts,Forecasts,Activity Lists,Activity Lists,

PipelinePipeline

Reports

Sales MgmtSales Mgmt

Cross Sell:Cross Sell:- Addt’l Products- Addt’l Products- New Products- New Products- New Versions/Revs- New Versions/Revs- Services- Services

CompetitiveInfo

FieldFieldSales RepSales Rep


Life-Cycle Management

FurtherFurtherQualifyQualify

- Calls- Calls- Appts- Appts- Quotes- Quotes- Proposals- Proposals- Tech Info- Tech Info- Correspondence- Correspondence

CloseClose$$$$$$


Leads

InboundInbound

MailingMailingListsLists

MarketingMarketing

Lit Kit - Outbound- Scripts- Data Gathering- Qualify- Assign Field Rep- Send Info

Tele-Tele-MarketingMarketing

- Generate Invoices- ReceivablesAccountingAccounting

AccountHistory

- Order Tracking- Customer Follow Up- Sales InquiriesCustomerCustomer

ServiceService

- Trouble Tickets- Incident Tracking- Problem Escalation

Tech SupportTech Support

Problem/Problem/ResolutionResolution

R&DR&D

CustomerCustomerProfileProfile

LeadsLeadsAnalysisAnalysis

* *

*

*

- Process Order- Fulfillment- Schedule Shipping

OrderOrderAdminAdmin

Forecasts,Forecasts,Activity Lists,Activity Lists,

PipelinePipeline

Reports

Sales MgmtSales Mgmt

Cross Sell:Cross Sell:- Addt’l Products- Addt’l Products- New Products- New Products- New Versions/Revs- New Versions/Revs- Services- Services

CompetitiveInfo

FieldFieldSales RepSales Rep


Does your sales team use any particular sales process or methodology?

A. All use the same company approved

process

B. Some use one, others do not

C. No



Does your sales team use any particular sales process or methodology?

37%

54%

9%

0%

10%

20%

30%

40%

50%

60%

% R

es

po

nd

en

ts (

To

tal

# 4

3)

All use the samecompany approved

process

Some use one,others do not

No


Benefits of a Sales Process

A good process helps you build an accurate Forecast

Each “stage” is clearly defined

More confidence in where you are in the process

Helps plan your next steps

Assists with territory management, reaching quota, task management, etc.


Reality Check

Sales People Sell By Process

or By Accident…

And Accidents Don’t Happen Often Enough!

For Sales to Succeed, You Need:

- Sales Training - Sales Processes


Sales Training

The methodology within the process

Aligned with the corporate strategy

Includes:• Cold calling

• Qualifying

• Listening/questioning

• Presenting solutions

• Overcoming objections

• Negotiating

• Closing

• Customer retention

Sales Process

10% - Initial Contact

20% - Qualified

40% - Presentation

60% - Proposal

80% - Negotiations

90% - Final PO

100% - Closed

SALES

LEADS

Cold Call

Listen/Qualify/Understand Req’ts

Establish Credibility

Present Solutions

Negotiate/Close

Handle Objections/Keep Sale

Action


Selling The Process To Your Sales Team

• Understand the problems that need to be solved• What needs to be fixed• What needs to improve (refine what’s right)

• Make sure sales reps fully understand those problems

• Ensure benefits are for the sales team• Include Sales Reps on the planning team

• Part of the solution• Successful, experienced Pros• New and struggling reps

• Communicate & train


Incenting Sales to Succeed

Compensation Plan

• Drives Sales’ behavior & serves corporate strategy

• Align with corporate strategy and commitments

• Customer focus

• Should treat reps like customers

• Distinguish top, middle and low performers

• Simple to administer and understand

• Review yearly, modify accordingly


Marketing’s Role


Marketing’s Strategy

A function of the corporate strategy

Target markets, product promotions, etc.

Must be compatible with sale’s goals

Marketing campaigns & target markets

• Support Sales’ efforts

• Align with comp plans


Marketing’s Strategy

Bad Marketing Strategy:

• Marketing promotes Interior Upgrades but

Sales gets bonus for selling Jet Engines

Good Marketing Strategy

• Marketing promotes end-of-quarter sale to

increase training programs, Sales gets bonus

on selling training programs!!


Do you have a comprehensive lead flow system that effectively acquires leads, qualifies them, sends them to the appropriate sales person, and then follows up on those leads over time?

A. Good system that works well

B. Partial system, needs improvement

C. No



Do you have a comprehensive lead flow system that effectively acquires leads, qualifies them, sends them to the appropriate sales person, and

then follows up on those leads over time?

26%

56%

19%

0%

10%

20%

30%

40%

50%

60%

% R

esp

on

den

ts (

To

tal

# 4

3)

Good system thatworks well

Partial system,needs improvement

No


Technology’s Role


Technology

Used to deploy your strategy and process, not drive It

Replicates best practices

Helps weaker sales reps succeed

Reduces learning curve for new hires

Use specialists to design & implement


How Technology Helps the Customer

Follow-up

Fast answers from customer service, support, etc.

Corporate awareness of customer history

Fast, efficient support and service

Consistency

Develops loyalty, encourages customer retention

Technology - Sample


Measuring Success

Internal productivity gainsShorter transaction timesReduced support requirementsCustomer satisfaction measurementRepeat businessCloser customer relationshipSales force assessment and ratingIncreased revenues, profits, ROI, etc.


Measuring Success

Set the success criteria from the outset• What are your business performance targets

• What are your technical performance targets

• How can you measure organizational and

workgroup satisfaction

Use these measures as focal

points throughout the process• Continually seek feedback from participants


Customer Example

High-tech vendor

Large reseller channel

Direct/indirect sales team

Recent merger


Customer Example

20% of leads distributed to channel – 80% stagnated

New Lead-Flow System 80% leads distributed to channel

Leads not for right target market or product

Marketing focused on core business as defined by Corporate Strategy

50% increase in lead quality, determined by successful entry into pipeline

New product from merger not gaining in sales

Comp plan incented Sales on new product revenue

25% increase in new product sales first year

Customer Satisfaction & Loyalty low, worsened by increased competition

Began Customer Care program

Cust. Sat. increased & defections decreased, thus loyalty increased. Increased future sales.

Dissention among competing groups (inside, outside, product-line, departmental, etc)

Instituted Team Selling programs & associated comp plans, bonus structure

Eliminated problem ~1 Qtr. Increased program cost but increased sales and retention.

Problem Action Results


Summary

Corporate

Strategy/Goals

Sales Strategy

Improve Customer

Retention

Bonus plan for

Customer

Satisfaction

ratings


Summary

Corporate

Strategy/Goals

Sales Strategy

Improve Customer

Retention

Bonus plan for

Customer

Satisfaction

ratings

Increase Market

Share

Compensation

geared toward

acquiring new

customers


Summary

Corporate Strategy/Goals Sales Strategy

Improve Customer

Retention

Bonus plan for Customer

Satisfaction ratings

Increase Market Share Compensation geared

toward acquiring new

customers

Reduce Expenses Provide tools for Sales to

do remote

meetings/demos


Summary

Corporate Strategy/Goals Sales Strategy

Improve Customer

Retention

Bonus plan for Customer

Satisfaction ratings

Increase Market Share Compensation geared

toward acquiring new

customers

Reduce Expenses Provide tools for Sales to do

remote meetings/demos

Prevent Customer Defection Streamline sales process,

order processing, follow-up,

etc.


How did you like my presentation?

A. Loved it, can’t believe I learned so much

B. Looking forward to getting back to start

implementing these ideas

C. Hated it. Wish I stayed at the bar!

Thank You!

Russ LombardoPEAK Sales Consulting

(702)[email protected]

Documents

Align Your Sales Strategy With Your Corporate Strategy Russ Lombardo PEAK Sales Consulting (702)655-5652 [email protected]