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1.
The Seven Sins
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2.
The Original 7
Deadly Sins Superbia Pride Invidia Envy What if we Ira Anger came up with a new list that Avaritia Avarice focused on Tristia Sadness Marketing and Sales? Gula Gluttony Luxuria Lust © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
3.
The 7 Sins
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4.
Sin # 1
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5.
It’s about Orientation
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6.
Get Whole Brained!
Integrated Understanding of Customer Experience Increase understanding Share mkt intelligence of market environment Increase understanding Share street-level of real customer needs intelligence Get clear on messaging and value drivers S M Internal Campaign Launches Sales Ready Messaging Collect “proof” Killer Questions Get Marketing Input Tiered Value Propositions Get Sales Input Integrated Lead Generation & Qualification © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
7.
Measure & Prioritize
Create a lead quality scoring system 2 1 0 1. Source of lead external executive internal staff cold call 2. Level of contact CEO/President VP Sales other 3. Decision location local head office local autonomy remote 4. Size of potential $250k plus $100k to $250k <$100k 5. Competition loyalty neutral other loyal Scoring: 10 or 9 - excellent opportunity 7 or 8 - good opportunity 5 or 6 - fair opportunity... risk © 2006 Knowledgence Associates 4 or Ldennis@knowledgence.com less - don’t go! www.knowledgence.com
8.
Telecom Example
2 1 0 1. Telecom Spend/Mon $5K + $2.5 - $5K < $2.5K 2. Level of contact Decision Maker Evaluator/ Information Influencer Gatherer CXO, President Office/IT/Telecom Purchasing / Owner Manager Tactical 3. Value Recognition See value in Willing to change, No reason to their terms/pain for real reason change, best price wins! 4. Urgency Sense of urgency No Urgency, but Competitive still motivated contract expire 3+ mons 5. Customer Fit Exact Target Within range Outside © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
9.
48 – 36
Index (good) LM2 Customer Fit Index 35 – 21 Index (average) LM1 20 or less Index (poor) LM0 Prospect Name: # Attribute Poor Fit 1 2 3 4 5 6 Good Fit 1 Market Farmers Hunters Position (retention) (growth) 2 Number of < 15 15 - 200 Sales Reps 3 Active Deals <10 or >100 10 to 50 ideal in Pipeline 4 Value/Volume Higher Volume Higher Value Mix (Transactional) (Relational) 5 Company Status Quo or Change or Growth “We’re Fine” 6 Competitive Efficiency Focus Innovations/Client Strategy (commodity) Focus (people) 7 Market B2C B2B Type (retail) (business) 8 Channel Sell to channel Sell direct Complexity (indirect) (growth) © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
10.
Sin # 2
- One Size Fits All Value Propositions Major time and $$$ spent crafting and corporate value proposition statements ROI difficult to track Does the right “corporate” value proposition spell sales success? When was the last time a “one-size-fits-all” ANYTHING actually fit?! © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
11.
Value Proposition Defined Clear
and succinct statement indicating the specific value of a service or product or offer to a specific audience in order to differentiate its value © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
12.
Putting a Spin
on It Customer-focused description of value that demonstrates your knowledge about the customer’s experience or challenge and your specific offer to address it, underscored by what differentiates your offer from any other. © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
13.
Format and Language
Shift From To Offer Centric Customer Centric Offer description Customer experience or situation Why you need it Our offer for THAT experience or situation Why IT’S THE BEST OFFER! Why THIS OFFER rather than other options © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
14.
Building a Better
Value Proposition Component Description Perspective Customer Objective What specific This is about THEM objective(s) or need(s) do they have – in their language? Your Offer What is your offer that This is about you in will assist them in that relation to THEM endeavor? Differentiators How does your offer This is about you in stand out from other relation to OTHERS options? © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
15.
Tiered Value Propositions
Shift focus to market/customer, NOT just product or service Corporate Value Proposition Industry Vertical Product Category Relationship Market Segment Service Category Title © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
16.
Test - 3
Key Questions 1. What is the customer objective ? IN THEIR WORDS! 2. What is the specific offer to answer the customer need? 3. Why would a customer select this company over the other perceived market alternatives? © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
17.
Orientation From whose perspective is
value described? Insert Customer People don’t buy products or Here services, they buy outcomes! Think of Value Propositions as a mirror. © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
18.
Sin # 3-
The Charge to “Call Higher” Common problem of calling at non-decision making levels Depletes a sales person’s most important asset Difference between a “yes” or a “slow no” © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
19.
Do they know
how? Reps spend time with influencers, locking themselves into staying there in the hopes they will “earn” their way up the ladder But telling them to call high isn’t enough! – Lack of access – Lack of practice – Lack of focus Calling high first can double your wins © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
20.
Get Reps Ready
to have a Strategic Conversation Most sales people are simply unprepared to converse at that level The needs & wants of an influencer are dramatically different than someone at senor levels – Different goals – Different language – Different proof points © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
21.
Senior Level Focus
Shift Creating Strategic Value Building a tailored Value Proposition More Steps to the Executive Call Offering Personal Executive Value Common complaints: Didn’t understand my business Talked too much Didn’t communicate value © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
22.
Sin # 4
- Going out into the territory without a map Most reps have no clear, defined plan for where this year’s quota will come from Over-reliance on finding “low hanging fruit” or getting “qualified” leads from Marketing Tendency to “ping-pong” around the territory How do you get where you need to go without a map? © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
23.
Territory Planning The process
to improve quota attainment and forecast accuracy: Set goals around market segments, competition, trends, specific accounts, and new opportunities Design a Territory Plan that spells out specific approaches to: • Renewal business / Installed Base • Existing pipeline • Brand new opportunities • Sets specific territory objectives, strategies and action plans © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
24.
Creating a Plan
Unit Strategies Pre-work: Terr. or Acct Exit List of Current Map And Renewal Opportunities Protect Expand Terr. or Acct Pursue Plan Mutual Value Revenue Objectives Create © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
25.
Plan Components
Territory or Account Goal Revenue Relationship Cross-Account Objective Objective Objective Objective Objective Marketing Strategy Partner Action Resources Relationship Action Resources Review Action Resources © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
26.
Territory Planning Outcomes Increase
territory penetration Identify qualified prospects faster Gain new customers faster Retain existing customers Increase pipeline and forecast accuracy Effectively use company resources © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
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Sin # 5
- Suffering from “Premature Proposal” What’s the quickest way to get a sales person out of your office? ASK FOR A PROPOSAL! Issues: – Too quick – Not enough info – Product/Service centric – Sits in pipeline too long – Is it real? © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
28.
Missing pieces of
puzzle 2006 Initiatives? Funding in place? Desired Outcome? Who is on decision team? See Bonus Sin! © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
29.
You know it’s
too early if… You’ve had only 1 or 2 conversations Don’t know if your prospect IS the real decision maker Don’t know who else they are talking to Have no idea if the project is funded and staffed Time frame is fuzzy or non-specific Haven’t completed LEAD MEASUREMENT, and CUSTOMER FIT © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
30.
Have the courage
to: Push back and ask for more time with the prospect Request meeting with end users State information you need to complete a targeted proposal Ask for prospect’s assistance (time, people, resources) to gauge commitment Ask who else they are considering © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
31.
Sin # 6
- Bait & Switch: Technology or Sales Process? How does your organization sell? Is there a defined process that all sales reps follow? In the absence of a process, technology is enticing Assumption that software will impose a process on reps Reps immediately figure out work-arounds so they don’t have to change their “own” process © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
32.
Process is about
Integration VALUE VALUE PROCESS PROCESS SKILLS SKILLS TOOLS TOOLS © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
33.
Challenges No defined sales
process = MULTIPLE processes Every rep does it their own way Hard to manage multiple methods Forecasting suffers as a result Difficult to pinpoint the real problem when sales are down Marketers can’t provide actionable tools Very inconsistent customer experience © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
34.
Sin # 7 Cloning
your Super Star Where do the best sales managers come from? The common answer is promoting from the field Very few “stars” receive training on how to be a sales manager Result: They become “closers” Don’t have the coaching skills to help others do, so they ride in to “save the day” Different skill set required for the job © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
35.
What do they
need to succeed? A single sales process they can apply consistently with reps Coaching skills training Shift from managing 1 territory to a Sales Unit Account and territory review process Measurement tools for selling standards © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
36.
Selling Standards Territory Management
MEETS Territory Management EXCEEDS Territory Management FAILS Territory List - Segmented AM mentors AR Late or incomplete Territory Plan Sacred Time for cold calling Cross matrix – No Team Work Territory Plan - Finished and Approved Products Vs. Companies with Trends “Going through the motions” Working as a Team Attend Two or More Industry Events per Quarter Failure to attend any Industry Event Attend an Industry Event – Quarterly Become a Market Segment SME for the Team No Identified “Sacred Time” Keep-up with Industry Trends – Newspaper/Mag Present Industry Trend at Sales Meeting Account Penetration MEETS Account Penetration EXCEEDS Account Penetration FAILS Select and Track Accounts (20/AM, 40/AR) 50% Churn in Selected Account List – Quarterly No Plan – No Calls Execute your Territory Plan Face-to-face calls per month – 12 (At least 7 NEW) Fewer than 7 Face-to-face calls per month Use Notes in ACE to Track Success Refine Territory Plan Bi-Monthly Face-to-face calls per month – 7 (At least 4 NEW) Solution Selling MEETS Solution Selling - EXCEEDS Solution Selling FAILS Meets Farming Algorithm Exceeds Farming Algorithm Bad Farming Algorithm Understands 9-Boxes Always uses 9-Boxes Doesn’t use 9-Boxes Gains Access to Power More than 1 VIP Letter per week Poorly written SS Letters One VIP Letter per week for management review Starts with Power No Access to Power CRM/SFA MEETS CRM/SFA EXCEEDS CRM/SFA FAILS Submit Weekly Call-Logs Uses Tool Daily Refusal to Use Tool or its components Updates active account three times a week Attaches all VIP Letters No Weekly or Incomplete Call-Logs Notes Coaches and Trains others is use of Tool(s) No VIP Letters First Call’s check-off Pipeline Status © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
37.
BONUS SIN © 2006
Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
38.
Closing or Qualifying? Thinking
that your sales team has a “closing” problem instead of a “qualifying” problem “He or she just can’t close!!” or “These leads STINK.” All leads are not created equal – are your reps truly qualifying each lead? Marketing may pre-qualify – but final qualification is Sales’ job Jumping the gun by putting something in the pipeline that isn’t truly qualified © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
39.
© 2006 Knowledgence
Associates Ldennis@knowledgence.com www.knowledgence.com
40.
Qualifying Criteria
PAIN 1. Do we understand what the prospect’s desired outcome is? FIT 2. Can we fully meet the prospect’s needs and requirements? FUNDING 3. Is there a funded budget for this project? TIME 4. Do we know when they have to make a decision and why at that time? CRITERIA 5. Who is on the decision-making team and what is the each member’s decision-making criteria? PROPOSAL 6. Have we presented our proposal in person? SHORT LIST 7. Are we on a short-list of vendors? Who else is? © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
41.
Most Powerful & Overlooked
Sales Tool PROOF! Nothing you say about your company will be Nov 19, 1998 AMSP more compelling 12344 First ST. Vancouver, BC V6T 3R7 Re: Internet Application than what existing Outstanding performance on the application last developed by your company. customers say We can quantify a 30% increase in revenues as a result of this application. Regards, Turn it into a John Smith consistent program © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
42.
The 7 Sins
of Marketing & Sales Sin # 1 – Is your organization left or right brained? Sin # 2 – One Size Fits All Value Propositions Sin # 3 – The Charge to “Call Higher” Sin # 4 – Going out into the territory without a map Sin # 5 – Suffering from “Premature Proposal” Sin # 6 – Bait & Switch: Technology or Sales Process? Sin # 7 – Cloning your Super Star Bonus Sin! – Closing Problem or Qualifying Problem © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
43.
Pick Your Sin(s)
and Change Your View! See the world through your customer’s eyes™ © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
44.
THANK YOU FOR
COMING! BUSINESS CARD = Electronic copy of Value Proposition template & an article Lisa Dennis, President Knowledgence Associates Ldennis@knowledgence.com 617-661-8250 www.knowledgence.com © 2006 Knowledgence Associates Ldennis@knowledgence.com www.knowledgence.com
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