Value Selling & Realization VSR Summit - The Importance of Getting Value / ROI Selling Right - Keynote w/ Jim Ninivaggi SiriusDecisions
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Keynote for the Value Selling and Realization Summit (VSR Summit) on the importance of getting value selling / ROI consulting right with B2B buyers / prospects. Featured Jim Ninivaggi from SiriusDecisions / Strategy to Revenue and Tom Pisello, the ROI Guy / CEO of Alinean (value sales and marketing tool experts).
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Semelhante a Value Selling & Realization VSR Summit - The Importance of Getting Value / ROI Selling Right - Keynote w/ Jim Ninivaggi SiriusDecisions
Semelhante a Value Selling & Realization VSR Summit - The Importance of Getting Value / ROI Selling Right - Keynote w/ Jim Ninivaggi SiriusDecisions (20)
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Value Selling & Realization VSR Summit - The Importance of Getting Value / ROI Selling Right - Keynote w/ Jim Ninivaggi SiriusDecisions
- 1. Copyright © 2001-2016, Alinean, Inc #VSRSummit @tpisello @jninivaggi Why we have to get Value Selling & Realization Right Thomas Pisello CEO & Founder tom@alinean.com @tpisello @AlineanROI www.alinean.com Jim Ninivaggi Chief Strategy Officer Jim.ninivaggi@strategytorevenue.com @jninivaggi @StrategyRevenue www.StrategyToRevenue.com
- 2. Copyright © 2001-2016, Alinean, Inc #VSRSummit @tpisello @jninivaggi 95% Require justification prior to approval (IDC) 65% Don’t have the research, metrics, tools or knowledge to do on their own (IDC) Expecting vendors to deliver a business case (IDC) 81% Buyers Have Changed In Control Cautious Economic-focused
- 3. Copyright © 2001-2016, Alinean, Inc #VSRSummit @tpisello @jninivaggi 1/3rd go to Dentist vs. another PowerPoint pitch (Zagby) 1 in 10 30% grade for reps knowledge of industry and discovery questions (Forrester) sellers are perceived as value- focused (Forrester) Sellers have not?
- 4. Copyright © 2001-2016, Alinean, Inc #VSRSummit @tpisello @jninivaggi # 1 Inability to articulate your unique value Admit current ROI selling programs need a major redesign (MHI Global / CSO Insights) 1 in 450% Indicate ROI selling programs need improvement need (MHI Global / CSO Insights) Do we really have a value problem? SiriusDecisions, 2011 - 2015 Rep’s ability to connect our offerings to client business issues Our reps spend too much time on non-selling activities Inability to manage today’s more educated buyer Lack of useful / relevant content from marketing Our reps lack the necessary selling skills Our reps lack the required knowledge 71% 65% 35% 32% 29% 24% =quota issue
- 5. Copyright © 2001-2016, Alinean, Inc #VSRSummit @tpisello @jninivaggi end in “No Decision” (SBI) 76% Why Change? Why Now? Why You? Buyer’s Journey? Quantify the Pain Justify the Gain Prove not the Same 24% Ideas Exploration Evaluation Selection 76% Forrester
- 6. Copyright © 2001-2016, Alinean, Inc #VSRSummit @tpisello @jninivaggi 43% More buyers involved in each decision (IDC) 24% Longer decision cycles (SiriusDecisions) Value Map More Stakeholders? Technology spending controlled by the business vs. IT (IDC / Gartner) 48% 90%
- 7. Copyright © 2001-2016, Alinean, Inc #VSRSummit @tpisello @jninivaggi The Dynamics of a Purchase Decision Safety Fuel Efficiency Performance Warranty Brand Image DesignCapacity Reviews Recalls Maintenance Price
- 8. Copyright © 2001-2016, Alinean, Inc #VSRSummit @tpisello @jninivaggi New Brain, Logic Logos Reptilian Brain, Emotions Pathos Middle Brain, Credibility Ethos The Art & Science of Decision Making
- 9. Copyright © 2001-2016, Alinean, Inc #VSRSummit @tpisello @jninivaggi 1million 1in 5 Sales Reps Looking for New Careers by 2020 (Forrester) Death of the B2B Sales Rep? Explainers Consultants Order Takers Navigators SolutionComplexity Buyer Dynamic Complexity
- 10. Copyright © 2001-2016, Alinean, Inc #VSRSummit @tpisello @jninivaggi Top Value Selling Challenges Difficulty Scaling Adoption Integration of Sales / VE Lack of Executive Support Cultural Resistance Methods / Standardization Other 85% 71% 59% 45% 25% 3% 10%
- 11. Copyright © 2001-2016, Alinean, Inc #VSRSummit @tpisello @jninivaggi Vendors not perceived as Value-focused Key Takeaways You have to Advance your Value Approach • Different throughout the buyer’s journey • Different “points of value” for each stakeholder • Go beyond the numbers to add Emotion (Pathos) & Trust (Ethos) Intense pressure to: • Justify Programs, “Do more with Less” • Pivot to enable value in marketing, inside sales & partner programs
- 12. Copyright © 2001-2016, Alinean, Inc #VSRSummit @tpisello @jninivaggi Why we have to get Value Selling & Realization Right Thomas Pisello CEO & Founder tom@alinean.com @tpisello @AlineanROI www.alinean.com Jim Ninivaggi Chief Strategy Officer Jim.ninivaggi@strategytorevenue.com @jninivaggi @StrategyRevenue www.StrategyToRevenue.com Stop by Alinean’s booth for a free signed copy
Notas do Editor
- Buyers don’t perceive vendors and sales approaches as having changed and aligned …. The Value Gap 32% of your prospects would rather go to the dentist than sit through another PowerPoint pitch? (Zagby) A majority of buyers (62%) indicate that your sales reps are knowledgeable about your company and products. However, Most reps receive very low grades (30%-40%) on their knowledge of the buyer’s industry and preparation for questions they would ask, and Three out of four sales reps are perceived as having little to no knowledge about the buyer’s specific business. (Forrester) According to buyers, a meager 7% of sales reps are perceived as value-focused (Forrester)
- And your Executives recognize there’s a Value Gap Issue … The #1 issue identified for not achieving sales quotas ….. (where almost 1/2 of sales reps will fall this year, CSO Insights Research shows there's been an 8.2% drop in overall plan attainment in the past 2 years, yet 94.5% of companies plan to increase numbers this year)….. is not a lack of sales training, quality leads, lack of social selling skills or product mix / availability issues, but sales rep’s “failure to effectively articulate value” (SiriusDecisions). 71% indicating it is the top issue. Top issue for past five years. 1 in 4 admit current #ROI #selling programs need major redesign & 50% say need improvement (CSO Insights) …. 75% of programs are not perceived as good.
- Most purchases are unbudgeted …. Have to engage earlier and more provocatively, to convince them that the status quo is not good / costly – illuminate the pain. 58% of a typical sales pipeline currently ends in “No Decision” (Sales Benchmark Index)….. Of the 58%, 100% made a decision to not make a decision….. your competitor was status quo and you lost. 76% of deals go to companies that engage with prospects early in the sales cycle, helping to establish the buying agenda, while only 24% of deals go to companies that win the “bake-off”. (Forrester) Imperative for a new paradigm or concept …. Wasn’t a budget for cellphones, etc…. so have to make the budget. Get their attention, motivate change, justify change and build trust May want to add another one on to this …. Why Renew ….. View value as continuous vs. just presales - Customers demand to know your unique value pre-sale. And after the deal is done? They expect you to prove that the realized value is exactly what you said you would deliver. Metrics on realized value … percentage of vendors recurring revenue vs. one time? SaaS world, there is no cycle …. Its continuous. Want proof of value continuously as a result, based on value perceived. A good up-front business case is essential for getting the recurring sale …. How to figure out a way to deliver and way to measure and prove value realized.
- More stakeholders involved in every decision, not getting to meet with everyone involved, and each has their own issues and POV. 43% increase in number of buyers involved in each B2B purchase over the past three years, growing to more than 8 decision makers involved in the average review / approval process. An average of 10 people are involved in a typical enterprise purchase decision (>$500k) (IDC) Sales cycles are taking 24% longer than they did just two years ago …. Mostly to gain consensus (SiriusDecisions) IT spend is no longer controlled by IT. Last year, IDC reported that 48% of IT spending was controlled or influenced by the business (IDC). In 2015, the trend for business unit control has accelerated, with business leaders and their reports for the first time in history in control of the majority of IT decision-making. And this trend is only accelerating, with Gartner predicting that by 2020, business units could control or influence as much as 90% of technology purchase decisions! Each stakeholder may be at a different point in the decision making process – some early: just getting a handle on the issues, and some late: already with a clear solution in mind. Point of Value - Each decision maker also has a unique set of priority challenges they would like to address, of potential risks, and a distinct view of the value you can provide to them.
- Car analogy and unique value to each …. Matches their lifestyle and image …. Prestige, safety, design, feel, smell, neurosenses involved…. Evokes Emotions… what does driving this car say about me. 3) Trust the brand 4) Rational – features, functions, price, in budget Only 13% of buyers view vendor-created content as credible … need 3rd party validation (SiriusDecisions) Not going to meet with everyone, so your business case and other value materials need to have each element to succeed.
- In working with many B2B solution providers like you, we found the key to effective content, conversations and proposals – the alignment between the ART of persuasion from Aristotle and the modern NeuroSCIENCE of Decision Making, and three key buy buttons to get from “Do Nothing” to “Yes” The three buy buttons in the brain consist of: The New Brain, the neocortex, responsible for rational thought, and this aligns with Aritstotle’s Logos – Logic - To appeal to this part of the brain you need to quantify “do nothing” costs and provide financial justification. Then there’s the Reptilian Brain, the cerebellum, responsible for fight-or-flight and basic survival, and this aligns with Aristotle’s Pathos - Emotion – To stimulate this part of the brain, you need storytelling and using simple visuals, contrast between how the status quo is risky / costly, and how your proposed solution can “save the day”. Finally, there’s the Middle Brain the "limbic brain”, aligning to Aristotle’s Ethos. This part of the brain is responsible for measuring credibility and gauging trust - To connect with this part of the brain, you can leverage success stories so the buyer can “see themselves” in the results. This is all detailed in the book from our founder/ CEO Tom Pisello: The Frugalnomics Survival Guide), and I will be happy to send you a signed copy of the book if you haven’t already purchased your own? Sell beyond just the audience you engage with….. connect savings to overcoming pain or real gain in their day to day improvement (Geico commercial parrot walking down street). Unique value …. Could give them reason to change, but only select category vs. your unique value and solution …
- The other challenge to a successful ROI / Value selling program is your Internal Environment has significantly changed and under extreme pressure: There is some research that indicates the Death of the B2B sales rep, and even though this may be an exaggeration, many of us are clearly seeing a trend for B2B companies to invest more in marketing, inside sales and partners, and less in higher cost / higher touch sales reps, pre-sales support and value consultants …. Did you know … Over 1 million B2B salespeople would go the way of the dodo by 2020 1 in 5 out of a job in 4 years, and that includes support people too (Forrester) Currently value engineers are around 25:1 ……. Will that remain, or come under intense pressure? Will it be tied to revenue or just reps …. If less sales reps, less value engineers? Harder time justifying themselves, and come under intense pressure to do more with less, Less sales reps to support means less funding and value engineers. Indisputable ROI for a value engineer? Help insides sales and channel partners better communicate and quantify value with tools and training Try to guide customer engagement for the millennial with tools and training Marketing -> help them develop self service content and tools to communicate and quantify value – Digital conversations and live conversations intermixed throughout the process SIMPLE SIMPLE SIMPLE Is this a real trend? Much of B2B buying will not need sales reps anymore, and will move to lower cost self-service or inside sales reps. 4 archetypes Order takers – transactional B2B sales reps are most at risk of being displaced by an online buying experience that makes it easy to obtain personalized recommendations, price / configure and purchase, often creating less friction in the buying process when compared to working with the Order Taker. Explainers – who have been leveraged in the past to convey information about various solutions, are next most at risk due to buyers being able to find this relevant content online more effectively in most cases than from the Explainer sales rep. Navigators – who are talented at helping buyers navigate the decision making journey and gaining consensus with larger buying committees, will still be relevant, but will see some shrinkage as well, as online self-service resources get smarter at helping buyers navigate the decision making journey. Consultants – who focus on buyer outcomes and value, are the only archetype expected to grow, adding ½ million to their ranks, as their insights What impact will it have on value consulting? Growing trend in queries to SiriusDecisions - How do we do more with less sales support people? For example at Oracle, positioning the following: Commoditization of the sales force – hiring younger people, junior sales reps and getting rid of the experienced ones ….. so divesting and making this more transactional. Definitely saves money $$$$ Elevating Consultative is still important …. Involves a business case but that the customer knows how they will benefit from a particular solution….. being focused on the largest deals …. Sales rep alone is not able to do this alone…… but is there a willingness to do this, make more capable to do this vs. less … and advice remain relevant and vital to their customers.