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Empower your Sales Team to fight Frugalnomics. - Engage higher, with economic-focused executives - Elevate relationship from salesperson to trusted advisor - Increase deal size / reduce discounting by 20% - Accelerate sales cycles by 20-30% - Double competitive wins Sound impossible? It's not with Alinean Sales Enablement Tools.
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Selling to Today’s Economic-Focused Buyer:
Leveraging Value-Based Tools for Sales Enablement Success
TOM PISELLO, Chairman & Founder
Blog: http://tompiselloroiguy.blogspot.com/
Twitter: @tpisello
http://www.alinean.comhttp://www.fightfrugalnomics.com
© 2011 Alinean, Inc.2
Today’s Economic-Focused Buyer
© 2011 Alinean, Inc.3
The Economic-Buyer
• Size
Longer Sales Cycles
Price Focus = Reduced Deal Size
More Leads to Close Same
Amount of Business
Stalled Deals
Increased Competition
© 2011 Alinean, Inc.4
Successive Downturns Cause Fundamental & Permanent Change
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
B2B Spending Annual Growth
IDC historical spend
Forecast compiled from IDC, Forrester, Gartner and Goldman Sachs
Two successive downturns in past 10 years have permanently changed buyers
Affected technology marketplace first:
Prior: Innovation, growth, time to market, features / functions drove purchases
After: Saving money, bottom-line impact, best value and fast payback
“Great Recession” downturn reinforcing / accelerating this fundamental change
All areas of economy impacted for all of B2B purchase decisions
Tech Bubble
Great Recession
IDC 2010
© 2011 Alinean, Inc.5
Quantifiable benefits
are mandatory
On average 90% of corporations surveyed require
quantifiable proof of bottom-line benefits on most
projects.
Quantifying value is
difficult for buyers
Two-thirds (65%) of buyers indicate that they do not
have the knowledge or tools needed to do business
value assessments and calculations.
Third party validation is
essential
Most trusted sources are: Industry Analysts (31.4%),
and Peers (28.7%).
Vendors lag as a trusted source for only 8.1%.
Buyers turn to vendors
for value proof points
81% of buyers expect vendors to quantify business
value of proposed solutions.
Source: IDC 2010, survey of 200 B2B buyers,
Sirius Decisions 2010 B-to-B Buyer Survey on trusted sources.
Frugalnomics: the new mantra for B2B Buyers
© 2011 Alinean, Inc.6
Internet Fueled Buying Cycles
• Buyers do more research independently and online
• Arm themselves with ideas, solution, competitive product knowledge
• Firmly in control of buying process
• Using online vendor content + 3rd party sources / social groups
• Inviting sales later, after set strategy, budget and solution roadmap
Not Prepared29%
Somewhat Prepared
36%
Well Prepared35%
At Same Time, Perceived Sales Readiness Is On the Decline
IDC 2010
© 2011 Alinean, Inc.7
CFOs Gain More Control
• CFOs responsible for more groups
• Taking control of strategy + buying-
cycle
• More financial due-diligence on all
purchases
• #1 Reason for NOT Meeting Sales Quotas –
Inability to Communicate Value Messages (27%) – SiriusDecisions 2010
• Only 38% of sales reps understand the
customer’s issues and can identify how vendor
can help – Forrester 2010
© 2011 Alinean, Inc.8
Fight Frugalnomics with Value Selling
http://www.fightfrugalnomics.com
© 2011 Alinean, Inc.9
Product / Solution Selling Reigns
Forrester - 2011
© 2011 Alinean, Inc.10
Fight Frugalnomics with Value Selling & Marketing
Value Focus
Discussion:
• Prescriptive & Quantified
• Discover… Is customer
aware of issue?
• Diagnose… How bad is it?
• Quantify … Value of change
• Compare … Value vs. Status
Quo / Competition
Drive: Diagnostic Led: What
is issue & value of change?
Product Focus
Discussion:
• Customer knows issue
• Tie features / functions to needs
• Compares product alternatives
• Feature • Function • Price
Drive: Sales Led: Product
Driven
Solution Focus
Discussion:
• Customer knows issues &
desired outcome
• Questions to discover pain
points
• Recommend solution to
solve pain
Drive: Sales Led: Pain-Point
Driven
Solution Provider Trusted AdvisorVendor
© 2011 Alinean, Inc.11
Strategic Vendors Reap Rewards
More Opportunities
Greater Deal Size
Shorter Sales Cycles
Greater Competitive Advantage
© 2011 Alinean, Inc.12
Value Selling: How Companies Buy vs. How to Sell
SiriusDecisions Buying Cycle
Loosening
of the
Status Quo
Committing to
Change
Exploring
Possible
Solutions
Justifying
the
Decision
Making
the
Selection
Committing
to a Solution
Decision
Consideration
Discovery
Requirements Definition
Sales Qualified Lead
Value Demonstration
Proposal
Negotiate
Close
Traditional Sales Cycle
© 2011 Alinean, Inc.13
Discovery
Loosening
of the
Status Quo
Committing to
Change
Exploring
Possible
Solutions
Justifying
the
Decision
Making
the
Selection
Committing
to a Solution
Decision
Consideration
Discovery
Risk adverse / overloaded
Easier to do nothing than change
Don’t have time to fully understand
issues
Executive driven / CFO aligned
Internet fueled via 3rd party sources
Sales often not engaged yet
© 2011 Alinean, Inc.14
Discovery - Diagnose with Assessment Tools
– Survey current spending and practices
– Diagnose issues
– Benchmark status quo versus competition and leaders
– Recommend improvement strategies
– Map solutions to improvement strategy
– 3rd party validation to improve credibility
14
© 2011 Alinean, Inc.15
Profile for Benchmarking
Benchmark comparisons
Typically by industry, location and size
© 2011 Alinean, Inc.16
Survey
Survey Questions – Multiple Choice, Pulldowns, Quantifications, Rankings
Spending, Sentiment or Current Practice Questions
Don’t Force Customer to Fill All In prior to Seeing Some Results
© 2011 Alinean, Inc.17
Diagnostic Assessment Results
Compare current responses vs. peer averages and leaders
Drive priorities through benchmark comparisons
Collaborate with customer / teammates to complete / refine
© 2011 Alinean, Inc.18
Detailed Drill Downs
Drill into details, layer by layer via pop-ups / drill downs
Confirm where doing well, illuminate areas needing improvements
© 2011 Alinean, Inc.19
Roadmap and Next Steps
Intelligently recommends solutions to resolve most pressing issues
Recommends next steps in buying lifecycle
© 2011 Alinean, Inc.20
Personalized Report
Results expanded in Word report. Can be further personalized.
PPT and PDF options available as well.
Multiple report options in single tool.
© 2011 Alinean, Inc.21
Discovery - Diagnose with Assessment Tools
– Reason to connect & engage earlier in decisions
– Earn right to call higher with executives
– Help set strategies, budgets and roadmaps
– Establishes urgency of resolving these issues over others
– Reduces time to realize issues and commit to change
– Elevate relationship from Vendor to Trusted Advisor
– Improves competitive position
21
© 2011 Alinean, Inc.22
Consideration
Loosening
of the
Status Quo
Committing to
Change
Exploring
Possible
Solutions
Justifying
the
Decision
Making
the
Selection
Committing
to a Solution
Decision
Consideration
Discovery
Recommend solutions to address
issues / goals
Quantify the cost of doing nothing
Make the case for change
Quantify rewards vs. risks
More stakeholders involved – Value is
in eye of beholder
© 2011 Alinean, Inc.23
Consideration : Justify Change with ROI Analysis
– Discover current costs for status quo, quantifying the “cost of doing nothing”
– Recommend solution and quantify the investment required
– Quantify the business benefits / savings for each stakeholder
– Tally the project’s net cash flow in CFO terms:• Return on investment (ROI)
• Net present value savings
• Payback period
• Internal rate of return (IRR)
– 3rd party validation to improve credibility
23
© 2011 Alinean, Inc.24
Profile
Profile current environment and opportunity.
Collect information about proposed solution / configuration.
Key defaults provided from research to streamline discovery
© 2011 Alinean, Inc.25
Benefits, Investments and ROI
Applying research, case studies and pricing, calculate investment, benefits & ROI
Allow specific benefits to be included / excluded based on what is important
© 2011 Alinean, Inc.26
Review Details and Edit Assumptions
Drill down into details to understand how each benefit / investment is calculated
Defaults provided, but allow review and editing of all metrics
© 2011 Alinean, Inc.27
Printed Report
Results expanded in Word report. Can be further personalized.
PPT and PDF options available as well.
Multiple report options in single tool.
© 2011 Alinean, Inc.28
Consideration : Justify Change with ROI Analysis
– Increase urgency for this project proposal over others
– Reduce time it takes for customer to build own business case / justify change
– Reduce discounting (value vs. price)
– Prove value of add on solutions / services
– Improve competitive positioning
28
© 2011 Alinean, Inc.29
Decision
Loosening
of the
Status Quo
Committing to
Change
Exploring
Possible
Solutions
Justifying
the
Decision
Making
the
Selection
Committing
to a Solution
Decision
Consideration
Discovery
Sales teams make the case for change,
but lose deal to competitor…
B2B customers strategy has changed –
“to buy only what they need at the
lowest possible price.” (Forrester)
Need to prove solution as best value
Total cost of ownership (TCO)
comparisons can help
© 2011 Alinean, Inc.30
Decision – Differentiate with TCO Analysis
– Select solutions to compare
– Quantify costs for unique opportunity
– Tally total costs over product lifetime not just up-front costs
– Prove better value via total cost of ownership (TCO)• Lower lifecycle cost
• Better benefit realization
• Lower risk
• Intangible benefits (more upside potential)
30
© 2011 Alinean, Inc.31
Profile
Organization Profile to customize TCO comparison for specific scenarios /
configurations
© 2011 Alinean, Inc.32
TCO Comparison Overview
Head to Head comparison of solutions total cost of ownership
Capital & operating costs over useful product life
Ability to select comparisons / customize configuration pricing & cost
assumptions
© 2011 Alinean, Inc.33
Comparative Cash Flow and ROI
Can combine TCO comparisons with comparative ROI / Cash Flow Analysis
© 2011 Alinean, Inc.34
Detailed TCO Comparisons
Detailed results to highlight advantages & review / fine-tune assumptions
3rd party validation and sources
© 2011 Alinean, Inc.35
Report Options to Match Stakeholders / Decision Phase
Multiple report options available including Word, PPT and PDF.
Different reports templates designed to target different audiences / different
stage in buying lifecycle.
© 2011 Alinean, Inc.36
Decision – Differentiate with TCO Analysis
36
– Validate selected solution as best value
– Quantify low risk of decision for buyer
– Reduce decision cycle in final stages of buying cycle
– Reduce competitive discounting
© 2011 Alinean, Inc.37
Value Selling Tools and the Buying Lifecycle
37
Diagnose to Engage Earlier:
• Diagnostic assessment to identify issues
• Benchmark for urgency of issues
• Develop strategies
• Set priorities and build roadmap
Justify to Make the Case for Change:
• Prove “cost of doing nothing”
• Cost justify the investment with ROI
• Prioritize urgency vs. other projects
Differentiate to Prove Superior Value:
• Compare competitive solutions / configuration
head-to-head
• Prove that the selected solution represents best
value
• Quantified lower cost of ownership (TCO)
• Competitive feature comparison
© 2011 Alinean, Inc.38
Next Steps
1. Your Sales & Marketing Ready to Do Business with Frugal Buyers? Take this Diagnostic Assessment to Find Out.
2. Research White Paper: Sales Enablement and the Economic Buyer
3. Over 200% ROI from a Value Selling Program Sound Impossible? Find Out for Yourself
4. Why Alinean? Alinean Vendor Profile (SiriusDecisions)
Alinean powered tools can significantly upgrade the quality of sales interactions
throughout the buying process, allowing prospects to drive at the beginning
through simpler, self-service tools and sales to provide greater depth as the buying
process proceeds – SiriusDecisions 2010
http://www.fightfrugalnomics.com