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Pain chain

An effective methodology to track a problem’s impacts right through an organisation to create a truly compelling sales value proposition

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Pain chain

  1. 1. THE PAIN CHAINAn effective methodology to tracka problem’s impacts right throughan organisation to create a trulycompelling value proposition
  2. 2. THE PAIN CHAIN IS A GREAT SALES TOOL BECAUSE• A Pain Chain helps you:  Understand the full impact a problem is having on an organisation  Widens your base of contacts in an organisation  Help you qualify an opportunity by having a deeper perspective  Prepare a powerful value proposition and sales proposal  Improve your negotiating position
  3. 3. DOMINO EFFECT• All the people and functions within an organisation depend on each other• An impact in one area will have impacts on other areas• When exploring a problem in an organisation, a key question is “Who else does this affect and how?”
  4. 4. FOLLOWING A PROBLEM WIDENS YOUR CONTACTS• Today organisations buy collaboratively• The sales challenge is to identify everybody with a say in the decision• Following a Pain Chain will take you to everybody affected by a problem
  5. 5. MORE CONTACTS MEANS BETTER KNOWLEDGE• Talking to all the people affected by your proposal will result in better information and perspective• Understanding all the solution’s impacts in an organisation helps you qualify the opportunity better• Being able to propose a thorough value proposition differentiates your solution and increases its value
  7. 7. PROBLEMS, REASONS, IMPACTS AND EFFECTS• A PROBLEM is caused by a REASON REASON• A Problem has an IMPACT – probably financial – on the person you’re talking to PROBLEM• A Problem also has knock on EFFECTS in other parts of the organisation IMPACT EFFECTS
  8. 8. THE PAIN CHAIN IS A POWERFUL TOOL• The Pain Chain often looks like an organisation chart, but it’s not• Problems at one level become reasons at the next level up• Use it as a living document to plan and refine a pursuit• In meetings, the Pain Chain can help diagnose a problem’s impacts• In presentations, the Pain Chain can show the end-to-end effects of a problem• The Pain Chain is a great basis for internal sales reviews
  9. 9. FOLLOWING A PAIN CHAIN• Chief Information Officer  Problem and Effect  The marketing function are unhappy because they can’t implement new promotions quickly enough  Reason  “The booking system is old. It’s hard to make changes and they take a lot of time”  Impact  The old system is expensive to maintain and that’s costing £n
  10. 10. FOLLOWING A PAIN CHAIN• Chief Marketing Officer  Problem and Effect  Sales are reduced because we can’t get attractive offers to market  Reason  “We’re losing market share because we can’t introduce new booking promotions fast enough”  Impact  We’re having to spend more to promote the offers we can make and that’s costing £n
  11. 11. FOLLOWING A PAIN CHAIN• Chief Sales Officer  Problem and Effect  “I’m getting grief from the CFO because sales targets aren’t being met”  Reason  “We’re losing business customers because our offer isn’t exciting enough”  Impact  The sales team isn’t as effective as it could be and that’s costing £n
  12. 12. FOLLOWING A PAIN CHAIN• Chief Financial Officer  Problem and Effect  Missing quarterly revenue and profit forecasts  Reason  “The sales targets aren’t being met”  Impact  Our revenues are reducing but our costs are constant so our profitability is reduced by £n
  13. 13. FOLLOWING A PAIN CHAIN• Chief Executive Officer  Problem and Effect  Earnings per share is falling  Reason  “We’re missing our quarterly revenue and profit forecasts”  Impact  Shareholder value is falling because market capitalisation has reduced by £n
  14. 14. THE COMPLETE PAIN CHAINCEO CFO CSO CMO CIOProblem: Problem: Problem: Problem: Problem:Decreasing Missing Sales targets Selling offers Can’tearnings per revenue and not being met not exciting introduce newshare profit forecasts Reason: enough promotionsReason: Reason: Selling offers Reason: fast enoughMissing Sales targets not exciting Can’t Reason:revenue and not being met enough introduce new Inflexibleprofit forecasts promotions booking fast enough system
  15. 15. EVERY LINK IN THE PAIN CHAIN HAS A FINANCIALIMPACT Problem Reason Financial Impact CEO Decreasing earnings Missing revenue and Reduced market per share profit forecasts capitalisation - £? CFO Missing revenue and Sales targets not being Lost revenue and profit forecasts met margin - £? CSO Sales targets not being Selling offers not Increased cost/sales met exciting enough ratio - £? CMO Selling offers not Can’t introduce new Increased marketing exciting enough promotions fast costs - £? enough CIO Can’t introduce new Inflexible booking High maintenance promotions fast system costs - £? enough
  16. 16. AND THE VALUE PROPOSITION BECOMES…• The new booking system will enable you to:  Reduce your current IT costs by £n as result of having a more flexible booking system  Increase your market share by being able to implement new promotions faster whilst reducing current marketing costs by £n  Sell more by having more exciting frequent offers and increasing sales productivity by £n  Increase revenues and margins by an estimated £n  Increase earning per share and stop decline in market capitalisation
  17. 17. SUMMARY
  18. 18. SUMMARY• The Pain Chain  Gets you wider access in an organisation  Helps you shape a stronger value proposition  Enables you to build stronger relationships• As you talk to people, recognise  Problems are caused by reasons and have a financial impact  The reason at one level becomes the problem at the previous level
  19. 19. HELPFUL?• If you’ve found this helpful and • Mike McCormac founded Sales want to learn more, now Success and More to help schedule an hour’s sales professional sales people selling high value services achieve more. coaching with me to help you He has an MBA and his sales apply the principles to your background includes over 15 years situation. success selling IT services and• Go to Sales Coaching at Sales outsourcing. Mike works mainly in the UK and Cyprus. Success and More! • Connect on LinkedIn • Follow me on Twitter • Email me • Call me +357 99 860725