Sales training 3 understanding the competition and value

Strategic Value Selling (SVS) – Understanding the Competition and Value

A Different Perspective on Selling

Examine your prospect

• Assumptions – you have analysed the account and concluded

1. We can successfully compete

2. We have a good chance of winning

3. Competitive Positioning is Positive

4. There is a strong basis for mutual value

5. The decision to pursue is positive

• Geography, financial condition, money, competent, driving mechanism, there will be repeat business, good marketing value, profitable and low risk

• When will it close; year, quarter, month

• Before we go on to a clinical analysis of the opportunity, let’s consider the competition

The Competition

•They will find out you are in their account

•They will do something about it – but what?

•What is their strategy?

•What are they counting on to win?

•What are their “lose recovery” tactics?

•How are they going to screw you??

Direct – “I currently dominate my territory, how can I maintain that dominance?”

Indirect – “My competitor dominates my territory but I think I can over throw them.”

Divisional – “Currently, I cannot determine how to dominate my territory but I can dominate a piece of it.”

Containment – “I am in danger of a competitor throwing me out of my territory, how can I protect my installed base”

Based on your territory profile, what is your best strategy to win?

Opportunity Analysis

• To help you close as much business as possible, in a short a time as possible by telling you when and where to compete

• A way of grading your opportunities to prioritise allocation of resource. A method of forecasting by a points value system

• The quickest way of telling you where you are going to lose, why you are going to lose and how to defend against that

possibility.

Nothing in competition is more important than obtaining facts

Relevant Strategy

“You don’t have to be better

than your competitor, you

have to be more relevant”

The Chasm Group

Business Benefits

Losing the initiative means to be defeated, to be annihilate

If you are not in control, your competitor is. You make the running. You suggest the best way of evaluating, you suggest the visit to the states,

you suggest the user visit, get in the driving seat. Whatever level your competitor is at, strive to go

one level above.


•If you cannot distinguish, what you sell by how you sell,

you can only differentiate by how

much you sell it for !!!


The Mark of a Strategist is to Think, Plan and then Execute

The Mark of a Tactician is to Execute and hope for the best

“The will to win is not nearly

as important as the will to

prepare to win.”

From Features to Value Proposition

•Feature – I-deas is now available with the Parasolid kernal

•Advantage – This enables you to directly access part files from your sister

company using Unigraphics to analyse them with no translation or modification.

•Benefit – This will reduce the time and errors taken for analysis

•Value statement – SEN PLM Solutions software is used extensively in the

Furniture industry in South Africa.

•Value Proposition – Cape Town Chairs will be able to reduce the time

taken to analyse each prototype chair enabling better quality design and a reduction in time of 25 hours per chair. This time saving results in each design being completed two weeks ahead of the current schedule and the sales department has estimated an increased revenue of 10% for the lifecycle of each chair range. This is an additional potential revenue of $3m per annum for a total investment (including internal costs) of $37K for one year only.

Do you believe, really believe, in your value to your customer?

Do you truly understand the customer’s business environment?

To whom do you offer the value proposition?

Who competes?

Is a product a solution … and therefore a value?

Is Accelrys differentiated and if so does it impact the productivity … and profitability of

the customer?

•It should be stated something like this:

•“When we perform the X application, due to our advantages 1, 2 and 3, we increase the productivity over and above the competitor by approximately 37%. In your organization, this would amount to a yearly savings of $67,000 … a return much greater than the one time savings on the cheap price!”


View From The TopP

e r

s p

e c

t I v

eP

e r s

o n

a l A

g e

n d

a

Executive

Level

Management

Level

Operations Level

Value

Cost/ROI

Significance

Must be Successful

Price Survive

Sales Cycle

Value Proposition Template

( Customer ) will be able to ( improve what ) by

(how much and/or what percentage) through

the ability (to what) as a result of ( Accelrys

enabler, technology, and / or service).

At the end of your call – ask yourself

• Is Accelrys differentiated and if so does it impact the productivity … and profitability of the customer?

• What has the person I’m talking to taken away from the conversation, in terms of the value we can give and our differentiation in terms of his options. How will he articulate that to his colleagues?

• Constantly ask yourself – if the prospect

Value is different to each person

Operations Application

Executive Application

Management Application

Value Proposition Template

( Customer ) will be able to ( improve what ) by

(how much and/or what percentage) through

the ability (to what) as a result of ( Accelrys

enabler, technology, and / or service).

Potential areas to establish ‘Value’

• Improve customer ‘win chance’

• Improve their customers satisfaction

• Improve cost control and product quality

• Reduce time to market

• Enhance partner relationships

• Improve employee productivity

• Improve organizational quality and efficiency

• Improve distribution and delivery

• Improve access to information

• “Understand the clients perceived and unperceived needs, align your value proposition, then gain agreement to it’s value”

Activity – ‘Developing a Value Proposition’

Purpose: Develop a unique Value Proposition that positively differentiates you against the competition from the customers perspective.

Steps:

Describe your unique value by developing a value proposition for a 15 second elevator speech that is aligned with the compelling event

Want to know more?

Consulting rates apply

Contact [email protected]

5/16/2016 Produced by Sales Guerillas 21