Strategic sales management b to b

Strategic Sales Management

designed for

B to B Sales Situations

By

Direction One Consulting


Develop a 1.

Mission & 2.

Vision.

3. Drill down to Territory

action plan for month.

4. Develop

an Account

KYC - Identify challeng

es for business

& key people.

5. Do Invmt

Benefits Analysis - Present proof of financial impact

of product / service

.

Follow up & close.

Document

activities & best

practices.

Strategic Sales Management Process

The Four Mistakes of my Sales Life!!

1. Spray & pray.2. Buffet Counter.3. Sir – we have this great product.4. Beggar.

Lets develop a sales process that avoids these mistakes and produces consistent sales growth.


Tool 1 – Discovering the Mission for the Business

1. Our most satisfying, best effort.2. The impact we had on our customer.

Our mission – to consistently deliver this impact to our customers……


Tool 2 – Developing a Vision for the Business

1. The state of the business today? Sales / Margins / cash flows / risks – product, customer, geography, people…….

2. The desired state in the future.

Our vision – where do we want to go…….


Tool 3 – Drill down to a Territory Action plan

a. My current year financial target……..b. The business I can expect from current customers…….c. The business I need to develop from new customers (a – b)……..d. The average ticket size of the business today……..e. The number of new customers I need to develop this year (c divided by d)

………

My territory action plan: Calls / meetings I need to do……


Tool 4 – Developing a Key account map for each customer – KYC.

A. Understanding my customer’s business today? Financials, operations, pain areas, business challenges…….

B. Understanding the customer’s buying process & people.

C. Opportunity Assessment: 1. Which of my products & services can address this pain, assist

the customer in this business challenge…..2. Potential business, opportunity analysis…….


How does an institution buy?

KingKing

• Evaluates and shortlists.• Is like a filter, can say No

but cannot say yes. • Looks at only right side.• Works within boundaries

defined by others.

• Evaluates and shortlists.• Is like a filter, can say No

but cannot say yes. • Looks at only right side.• Works within boundaries

defined by others.

EvaluatorEvaluator UserUser

• Is the only one who can say YES.

• Usually a owner or Business Head.

• Has profit center / SBU responsibilities.

• Is & behaves like a King. Decides on his own, sets scope for others.

• Looks at both sides of the menu card.

• Is the only one who can say YES.

• Usually a owner or Business Head.

• Has profit center / SBU responsibilities.

• Is & behaves like a King. Decides on his own, sets scope for others.

• Looks at both sides of the menu card.

• Uses the service on the job.• Has good influencing power.• Looks at the left side of menu card.• Has boundaries to work within, though

occasionally thinks beyond.

• Uses the service on the job.• Has good influencing power.• Looks at the left side of menu card.• Has boundaries to work within, though

occasionally thinks beyond.


A – User experiences

pain

B – king acknowledges

the painC – King initiates action to

address the pain

D – Evaluator takes action. Issues RFPs

E – Evaluator gets proposals.

E – Evaluator shortlists proposals.

F – King decides.

http://blogs.cyberciti.biz/hm/wp-content/uploads/2006/10/lion-picture-photo.jpg

What is our probability of success if we talk only to Evaluators?

KingKing



• Most price sensitive person in the company.

• Comes into buying process late, when requirements have already been set.

• May operate on his own without any need established.

• Unlikely to recommend any vendor, because of risk in role.

• Not very influential with King, high need to impress, tends to be therefore unreasonable & aggressive.

• Going bottom – up is difficult.

• Most price sensitive person in the company.

• Comes into buying process late, when requirements have already been set.

• May operate on his own without any need established.

• Unlikely to recommend any vendor, because of risk in role.

• Not very influential with King, high need to impress, tends to be therefore unreasonable & aggressive.

• Going bottom – up is difficult.


How does an institution buy?

KingKing



• Where does the buying process start? Where is the need for the service felt first?

• How does the buying process advance?

• When does Evaluator enter the picture?

• How long does this process take for the institution?

• Where does the buying process start? Where is the need for the service felt first?

• How does the buying process advance?

• When does Evaluator enter the picture?

• How long does this process take for the institution?


How are the needs of these buyers different?

King- Business impact

on total costs, quality and time. Overall business

growth.

King- Business impact

on total costs, quality and time. Overall business

growth.

Evaluator – Purchase /

Commercial- Price.

- Percentage discounts

given.- Reliability of

supplies.- Convenience

of doing business.

- dependency, share of business

Evaluator – Purchase /

Commercial- Price.

- Percentage discounts

given.- Reliability of

supplies.- Convenience

of doing business.

- dependency, share of business

User- Total operating

costs.- Service

response.- Business growth linked to personal

targets.

User- Total operating

costs.- Service

response.- Business growth linked to personal

targets.


Evaluator – Technical

- Quality of product.

- Meets specs

- Technical knowledge provided.

Evaluator – Technical

- Quality of product.

- Meets specs

- Technical knowledge provided.

KingKing


Why does an institution buy?Why do people of an institution buy?

• To address pain

• To solve business challenges.



How does the King decide?

KingKing



Who takes the decision?

• Mostly - the King.• In consultation with the other buyers. • Difficult to figure out power equations.

• So best to pitch to all.


Strategic Sales Management: Becoming a Great Sales Professional

• The difference between servicing demand & creating demand.• Great salespeople create demand for their products & services.

• What exactly is Selling?It is not spray and pray, buffet counter, just talking about product or

begging for business.It is creating demand for our products and services.

What is strategic sales management / creating demand?

It is creating awareness of areas for improvement in our customer’s way of doing business & positioning our products / services as a means of doing that.

• Any fool can sell at a discount / any fool can bribe …….. and most fools do exactly that!!!!


Typical pain areas / business challenges?

• Cost – High.• Risk – High dependency on products / customers /

vendors / people.• Performance - Low process performance.• Quality - Poor.• Customer / Business Issues: Low growth of business,

poor customer loyalty, low ticket size.

The sales process has to identify which of these issues exist in our prospect?


Focus of Strategy?

• What are you going to sell?• Who are your target customers?• How are you going to avoid or beat competition?• How is your business / product / service different?• What markets? • Who are your competitors?• What are you good at?• Do a SWOT.


Becoming a Great Sales Professional – selling to institutions.

• Mckinsey – quality of research about customer, Ideal Customer.

• Xerox – KYC - tapping multiple buying influences.• Infosys – account mapping process & probability of

sales / sales forecast & accountability.• Johnson & Johnson Sales planning process.• Voltas – forklifts – sales pitch to users also.


Justifying Price & Communicating Value

• Naukri.com.• Asian PPG Industries.• GE Medical Systems.• Voltas – Cost of operations, impact on business.• Asian Paints – lifetime value.• Everest roofing products.• Volkswagen Polo vs Indigo.

• Price is relative, it is not an absolute figure. Therefore success depends on our ability to compare it to a Value which is much larger than the price.

• That value is the financial benefit to the customer’s business over the life of the product.


Tool 5: Investment Benefits Analysis: What pain areas / problems does our product solve for our customers?

1. Does it increase investments but reduce “total costs” in the long run?2. Does it save time, speed up processes, enable things to be done faster?3. Does it improve the quality of the product or process?4. Does it help the customer manage his risk in the business?5. Does it help him attract more customers, increase ticket size per customer, charge higher prices or increase customer loyalty?6. Does it simplify the business, making it easy to run?

And what is the financial impact of all the above? In Rs.

Refer to Worksheet

Features Benefits

Financial benefits of Solution to

the Customer

How do you Sell?


Average Salesperson – sells products & services

Average Salesperson – sells products & services

Good Salesperson – sells on benefitsGood Salesperson – sells on benefits

Great Sales person – identifies pain areas, provides solutions

Great Sales person – identifies pain areas, provides solutions

The ACCESS Sales Process

A C C E S S

Acquire a

research orientati

on

Acquire a

research orientati

on

Capture a high

position

Capture a high

position

Clarify value add

through diagnost

ics

Clarify value add

through diagnost

ics

Educate about

service features

and benefits

Educate about

service features

and benefits

Settle objections

Settle objections

Summarize & close on

winning note

Summarize & close on

winning note


Acquire a research orientationAcquire a research orientation


• Our company knowledge• Product knowledge.• Research target industry.• Research target customer.• Research competition.• Where do we quickly get all this

information from? • How do we know we have done this well?

• Our company knowledge• Product knowledge.• Research target industry.• Research target customer.• Research competition.• Where do we quickly get all this

information from? • How do we know we have done this well?

Tool 6: Using a Catalyst

• Acquiring information about an institution is a complex activity & too difficult to be done alone.

• Need a Catalyst who:– knows the account.– wants you to succeed in that account.– does not gain financially from your success.


Tool 6: The Concept of the Catalyst

• Who can be a catalyst:– Existing Kings.– Friends.– Non-competitive suppliers to the same customer.– Ex-employees / colleagues at the account.– Consultants.– Press / PR professionals.


Capture a high positionCapture a high position

• Use catalysts to approach the King.• However, DO NOT SELL TO KING. • Use king to only gain access to the

institution. • Move to next stage - Seek to Clarify

value add through in-depth diagnostics.

• How do we know we have done this well?

• Use catalysts to approach the King.• However, DO NOT SELL TO KING. • Use king to only gain access to the

institution. • Move to next stage - Seek to Clarify

value add through in-depth diagnostics.



Clarify value through diagnosticsClarify value through diagnostics


• Study the business – Identify waste, inefficiencies, areas for improvement.

• Learn current business challenges for King (through KRAs).

• Learn growth plans for company.• Anticipate future challenges.• Understand our competitive position.

• How do we know we have done this well?• Derive Business Value Added.• Clarify personal value add for each buyer.

• Study the business – Identify waste, inefficiencies, areas for improvement.

• Learn current business challenges for King (through KRAs).

• Learn growth plans for company.• Anticipate future challenges.• Understand our competitive position.

• How do we know we have done this well?• Derive Business Value Added.• Clarify personal value add for each buyer.

Energize by educating about service features and benefitsEnergize by educating about service features and benefits


Present to different buyers as follows:• Your understanding of the current situation.• Your assessment of the future challenges likely

to be faced & the risks.• Your solution.• Your BVA & PVA


Present to different buyers as follows:• Your understanding of the current situation.• Your assessment of the future challenges likely

to be faced & the risks.• Your solution.• Your BVA & PVA


Settle objectionsSettle objections


• Note – If ACCE of ACCESS is done well, this stage would be skipped by customer altogether.

• Anticipate likely objections.• Prepare responses.


• Note – If ACCE of ACCESS is done well, this stage would be skipped by customer altogether.

• Anticipate likely objections.• Prepare responses.


Objections

• You are highly unlikely to ever meet a customer who says –

wow, where were you, I was waiting for you, what amount

do I write on the cheque?…….


Why do

customers

object?

Just fishing

for discount

s – be prepare

d.

Doubt – offer

proof, data,

references.

Misunderstandin

g – clarify.

Drawback – if true,

admit the drawback, refocus attention on plus points.

Handling objections

• Look at them as a buying signal - think of what would happen if your customer said nothing!!!.

• Probe – use open questions• The power of knowledge!• Never argue – agree with feeling, not necessarily with

the statement.


Give discounts / your price is high

• Good things are not cheap, cheap things aren’t good.• Nobody gives discounts because their products are

selling too well.• Are they so desperate?• What would be more important to you - price or cost?

Then elaborate on cost.• Give examples of other premium products where the

customer has paid more – eg for men / women.


Give discounts / your price is high

• “Maybe I did not explain the value of my product well!”• People who give discounts generally cut corners

elsewhere in areas where customers do not notice (especially in service).

• Reduce the excess price over life of the product.• Reduce the profile of product being offered.• Actually our product is not meant for everybody….• “xxxx” customers cannot be wrong (give national sales

data).


Let me think over it

• Is there something about my product or company that you are unsure of?

• Is there something about me that you are unsure of?• Quite simply, your business is important to me & you will

not regret your decision to purchase this product. Could we start the paperwork now?


(You come to know) I am not the decision-maker

• Stop selling immediately.• Besides you, who else would be involved in the decision?• Do not sell through, use relationship to map account.• Plan to meet the King directly – going top-down is faster.


I’m happy with my service provider

• Definitely, lots of xxx owners……• Share examples from similar profile.• The best time to look for a new supplier / job is when you

are happy with your old job.• Single supplier relationships sometimes lead to

complacency from the supplier’s side. Give us 20% of the business, both of us would stay alert to providing good service.


Previous bad experience with your service

• Find out why. Then tell the truth to customer. Show you are sweating.

• Say – “thanks, your feedback helped us…………”. • Explain how things are different now.• Close.


On the phone – I’m not interested

• The worst that would happen is that both of us would have made a new acquaintance.

• Ask for references.• Ask for permission to call later.


Summarize & close on a winning noteSummarize & close on a winning note


• Ask for PO / close.• Ask for cheq?• Use closing techniques.


• Ask for PO / close.• Ask for cheq?• Use closing techniques.


Win with Closing Skills

• Ask for the order.• Balance Sheet Close


Ask for the Order

• The ABC of sales.• The simplest most effective way to close.• And the most powerful.


Balance Sheet Close

• To be used during competitive sales pitches.• Take a blank sheet of paper, draw a line down the center.• On the left, list down advantages of yr product. Atleast 7.• On the right side, put ONLY the heading – advantages of

“competition product”.• Pass sheet to customer. Ask customer to fill up the right

column. DO NOT HELP THE CUSTOMER AT THIS POINT.• Customer will most likely struggle. After some time say “Our

product really would be the most suitable for your needs………”


You never close a sale, you always begin a relationship

1. Not spray & pray – a customized pitch2. Not Buffet Counter – only a few products

recommended.3. Some conversations on the product – yes, but a

greater emphasis on pain areas, business challenges & what the product / service can do for the customer.

4. No Beggar – just a matured satisfying way to work.


Maneesh KonkarConnect with me on & Twitter: youngldrs Email: [email protected]: http://youngleadersateverylevel.blogspot.com/Facebook: Young Leaders at Every LevelTel: +91 – 98205 03710 Direction One

Consulting

Marketing

Strategic sales management b to b