Sales, Sales Management, Sales Strategy

May 27, 2016 | Author: Viet Long Plaza | Category: N/A
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Strategy, Sales, & Sales Management

Strategy, Sales, Sales Management

B2B Sales Management 101 B2B Sales Strategy 101 B2B Sales Case Study: Groove Sales & Strategy Reading List

B2B Sales Management 101 -- Harsh Reality

B2B Sales Management 101 – The Number “Quarteritis…”

“The sun rises & sets on the quarter”

B2B Sales Management 101 – Sales Representatives Sales Rep Profile Personable, builds trust High energy Aggressive/”edge” Street Smart (v. book-smart) Listeners/nonverbal Motivated by money

80-20 rule Compensation Base $90k - $100k Commission $125k (plus draw) 0%-50% quota = x%; 50% -100% quota = 2x%; > quota = 3x%

Stock options – less important President’s Club Top reps’ pay > CEO’s Measurable & Accountable – high turnover tolerated

B2B Sales Management 101 – Strategic Selling BOD CEO LOB …Bus IT

LOB

LOB

LOB

LOB

IT Finance VP Enterprise Apps …Bus IT …Bus IT …Bus IT …Bus IT VP Enterprise Infra CTO Etc

Nuclear unit SR, SE, Cnslt, Mgmt Power Selling Champions Coaches Economic Buyer IT, LOB IT, LOB, Prchsg Legal, Finance, BOD Find Pain, Find $ Ask questions/listen/non-verbal

Purchasing Legal

HubSpot HI-IQ

Marketing

B2B Sales Management 101 – Predicting The Future

SUSPECTS (HubSpot, WSG; PPC MVT)

PROSPECTS (Email, URL, Source, HI-IQ Email Nurture)

Sales

(Phone #, Lead Conversion Event)

OPPORTUNITIES NEW CUSTOMERS (CC# and Authorization)

Unsatisfied

Satisfied

CHI < 70

CHI > 70

SalesForce.com

Customer Service

(Demo/Trial, 3 per day per rep)

SalesForce.com

LEADS

B2B Sales Management – Predicting the Future The Funnel Visitors Prospects

Leads Opts

B2B Sales Management 101 -- Predicting the Future The Forecast Current Quarter's Forecast Rep eCommerce Inside Sales Salva McPartland Black Okada Okada Foster Marcus Wilson

Account

Army: Stryker 125th TF Olympia KPMG - Services BAH / Centrix NG / State Near East Bureau CARE Tyco - software CA Dept of Justice Microsoft

Smith Black Tyre Foster Marcus Shartzer Shore Manniso Tyre Smith Salva McPartland Salva Shartzer Shore Salva Shore Foster Manniso Hommes & Process (Fr) Marcus Edginton Tyre Wilson McPartland Marcus Foster Foster Boyd

SPAWAR-DM,B/U Svr DARPA (SAIC/Hicks) EDS Praxair State of FL LDS - Deseret Mgt P&G VA - Infrastructure (Albany NY Buyer) Shell - trial extension SPAWAR Europe/Ivan(2) Army Corp. Of Engineers EY - enterprise Army: HQ Hitachi Data Systems GSK PM RESET (Aviation) Lowe/Draft Praxair VA Florida Ohio buyer GTSI CCAIG State of FL Intermec American Express Intel KPMG - Servers USG - New project Siemens Siemens La-Z-Boy

Closed 248,405 207,900 151,662 150,000 78,183 62,894 60,266 56,389 56,279 54,856 37,021 36,794 32,218 28,265 23,977 22,943 18,483 17,987 15,120 15,000 14,075 -

Likely 47,250 10,000 1,808,559 787,000 439,480 192,465 104,000 93,417 65,000 59,000 46,125 40,000 22,943 21,893 -

Upside 15,000 678,000 310,126 132,600 125,000 86,000 55,000 45,850

Sales Qualifiers Q+1 10,000 -

P

E

D

D

I

C

Prob Adjustments C

RD%

VP%

Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y y Y Y y y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

50% 80% 95% 80% 70% 95% 70% 90% 90%

Y Y Y Y Y Y Y Y Y Y Y Y Y N Y Y N N Y Y N Y Y N N Y Y N Y Y Y N Y Y Y y y y y y y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

90% 75% 40% 60% 35% 75% 50% 50% 65%

50% 90% 95% 80% 90% 90% 50% 90% 90% 100% 80% 75% 40% 60% 35% 50% 60% 60% 65%

Fcst 9,025 1,000 904,280 78,700 21,974 38,493 10,400 9,342 32,500 5,900 4,613

Upside 9,000 -

4,589 5,473 -

271,200 186,076 46,410 62,500 51,600 33,000 29,803

B2B Sales Management 101 -- Other

Accounts Reviews Recruiting (profile) Territory Distribution Compensation Plans Sales Rep Development Sales Process & methodology

B2B Sales Strategy 101 Segmentation = Profits All Customers

Avg. Trans. < $3k

Avg. Trans > $3k

SMBs

28

108

VSBs

21

28

Total

Cancelled Customers

185

Avg. Trans. < $3k

Avg. Trans > $3k

SMBs

3

7

VSBs

11

7

Total Monthly Churn Rate 1

Avg. Trans. < $3k

Avg. Trans > $3k

SMBs

2.6 %

1.6 %

VSBs

12.6 %

6.0 %

Total

1

28

3.6 %

Total churn rate (not shown) is calculated as cancelled customers (all time) divided by total customers (all time). Monthly churn rate is total churn rate divided by average customer lifetime of 4.16 months

B2B Sales Strategy 101 Crossing the Chasm…

B2B Sales Strategy 101 Model Comparison TRANSACTIONAL

CONSULTATIVE

Product or service characteristics

Well Understood Readily substitutable Standard items

Key buyer concerns and decision criteria

Price Availability risk Ease of acquisition

Time horizon

Event

Purchasing stream

Nature of relationship

Cost - based Buyer-seller Confrontational

Benefits – based Client-advisor Cooperative

Prerequisites for success

Access to decision maker

Access to influencers

Nature of sale

Doing the deal

Problem solving

Source: Rethinking the Sales Force

Differentiated Customizable Hidden Capabilities

Importance of problem Solution fit Price-performance tradeoffs

ENTERPRISE High Strategic and/or cost importance Limited substitutability

Platform fit Values fit Sustainability Strategic plan

Trust – based Business equals Insider Both parties change fundamentally Access to strategy

Agenda setting Boundaries blur- unclear who is selling and who is buying

B2B Sales Strategy 101 Reason for shift to consultative model

$

Resource commitment needed for consultative selling

Cost

Sales 1

Sales 2

Sales 3

Sales 4

Sales 5

%

0%

Return

Sales 1 Source: Rethinking the Sales Force

Sales 2

Sales 3

Sales 4

Sales 5

B2B Sales Strategy 101 Consultative Model “Listening and gaining business understanding are more important selling skills than persuasion; creativity is more important than product knowledge.” “The only single „truth‟ that seems to be holding true for all sales forces is that they have to create value for customers if they are to be successful. Just communicating the value inherent in their products isn‟t enough.” “It‟s a risky strategy in a consultative sales to go to a senior-level decision maker before thoroughly understanding the issues and problems where you can create value. Most good consultative salespeople will first do their homework by working with those influencers in the buying organization who have the best knowledge of the problems and opportunities where the selling organization hopes to create value.”

…Quotes from “Rethinking the Sales Force.” Neil Rackham & John DeVincentis

B2B Sales Case Study: Groove Networks P0: Evaluation

COST OF SALE

REVENUE

P1: Validation

P2: Initial Rollout

P3: Enterprise Rollout

B2B Sales Case Study: Groove Networks P0: Educate

P1: Validate

P2: Initial Rollout

P3: Enterprise Rollout

SALES ACTIVITIES • • • •

IT call(s) Orientation LOB/LOB IT calls Validation

LOB Pain ID’d IT Champ Validation Process

2 months

2 Track Pilot Trial: - IT validation - LOB pain project

Pain Validated IT Validated $100k+

2-3 months

• Implement seats & gather metrics • Penetrate new LOBs • Engage enterprise apps • Horizontal bus processes

Multiple Pain/Lob IT Service Offer’g $500K+ MSLSA

6 months

• Groove as standard desktop DNA • Integrate w/ Ent Apps • Groove broadly deployed and used throughout value chain

$1m/yr Every desktop

ongoing

B2B Sales Case Study: Groove Networks Q1 (P)hase Movement P0‟s SPAWAR $18K Hitachi $10K CARE $7K DuPont $7k Verizon $6K ServiceCo $16k

P1‟s Lowe ESP AMEX Mattel Intermec

$46K $50K $40K $35K $22K

P2‟s HP Mktg OCPA Siemens SAIC Praxair Novartis VLH Army HP C&I KPMG

$770K $691K $111K $142K $100K $86k $522K $154K $106K $100K

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