Strategic sales management

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Information about Strategic sales management
Business & Mgmt

Published on March 10, 2014

Author: maneeshkonkar


Strategic Sales Management designed for B to B Sales Situations By Direction One Consulting

Strategic Sales Management Process Develop a 1. Mission & 2. Vision. 3. Drill down to Territory action plan for month. 4. Develop an Account KYC Identify challenges for business & key people. 5. Do Invmt Benefits Analysis Present proof of financial impact of product / service . Follow up & close. Document activities & best practices. Direction One Consulting

The Four Mistakes of my Sales Life!! 1. 2. 3. 4. Spray & pray. Buffet Counter. Sir – we have this great product. Beggar. Lets develop a sales process that avoids these mistakes and produces consistent sales growth. Direction One Consulting

Tool 1 – Discovering the Mission for the Business 1. Our most satisfying, best effort. 2. The impact we had on our customer. Our mission – to consistently deliver this impact to our customers…… Direction One Consulting

Tool 2 – Developing a Vision for the Business 1. The state of the business today? Sales / Margins / cash flows / risks – product, customer, geography, people……. 2. The desired state in the future. Our vision – where do we want to go……. Direction One Consulting

Tool 3 – Drill down to a Territory Action plan a. b. c. d. e. My current year financial target…….. The business I can expect from current customers……. The business I need to develop from new customers (a – b)…….. The average ticket size of the business today…….. The number of new customers I need to develop this year (c divided by d)……… My territory action plan: Calls / meetings I need to do…… Direction One Consulting

Tool 4 – Developing a Key account map for each customer – KYC. A. Understanding my customer’s business today? Financials, operations, pain areas, business challenges……. B. Understanding the customer’s buying process & people. C. Opportunity Assessment: 1. Which of my products & services can address this pain, assist the customer in this business challenge….. 2. Potential business, opportunity analysis……. Direction One Consulting

How does an institution buy? • Is the only one who can say YES. • Usually a owner or Business Head. • Has profit center / SBU responsibilities. • Is & behaves like a King. Decides on his own, sets scope for others. • Looks at both sides of the menu card. F – King decides. King C – King initiates action to address the pain B – king acknowledges the pain E – Evaluator shortlists proposals. Evaluator E – Evaluator gets D – Evaluator proposals. takes action. • Evaluates and shortlists. Issues RFPs •Is like a filter, can say No but cannot say yes. •Looks at only right side. •Works within boundaries defined by others. A – User experiences pain User • Uses the service on the job. •Has good influencing power. • Looks at the left side of menu card. • Has boundaries to work within, though occasionally thinks beyond. Direction One Consulting

King Evaluator User What is our probability of success if we talk only to Evaluators? • Most price sensitive person in the company. • Comes into buying process late, when requirements have already been set. • May operate on his own without any need established. • Unlikely to recommend any vendor, because of risk in role. • Not very influential with King, high need to impress, tends to be therefore unreasonable & aggressive. • Going bottom – up is difficult. Direction One Consulting

King Evaluator User How does an institution buy? • Where does the buying process start? Where is the need for the service felt first? • How does the buying process advance? • When does Evaluator enter the picture? • How long does this process take for the institution? Direction One Consulting

How are the needs of these buyers different? King Evaluator – Purchase / Commercial - Price. -Reliability of supplies. - Convenience of doing business. - dependency, share of business - Business impact on total costs, quality and time. Evaluator – Technical - Quality of product. - Meets specs - Technical knowledge provided. User -Total operating costs. - Service response. -Business growth linked to targets. Direction One Consulting

King Evaluator User Why does an institution buy? Why do people of an institution buy? •To address pain •To solve business challenges. Direction One Consulting

How does the King decide? King Direction One Consulting

Who takes the decision? • Mostly - the King. • In consultation with the other buyers. • Difficult to figure out power equations. • So best to pitch to all. Direction One Consulting

Strategic Sales Management: Becoming a Great Sales Professional • The difference between servicing demand & creating demand. • Great salespeople create demand for their products & services. • What exactly is Selling? It is not spray and pray, buffet counter, just talking about product or begging for business. It is creating demand for our products and services. What is strategic sales management / creating demand? It is creating awareness of areas for improvement in our customer’s way of doing business & positioning our products / services as a means of doing that. • Any fool can sell at a discount / any fool can bribe …….. and most fools do exactly that!!!! Direction One Consulting

Typical pain areas / business challenges? • Cost – High. • Risk – High dependency on customers / vendors / people. • Performance - Low process performance. • Quality - Poor. • Customer / Business Issues: Low growth of business, poor customer loyalty, low ticket size. The sales process has to identify which of these issues exist in our prospect? Direction One Consulting

Focus of Strategy? • What are you going to sell? • Who are your target customers? • How are you going to avoid or beat competition? • • • • What markets? Who are your competitors? What are you good at? Do a SWOT. Direction One Consulting

Becoming a Great Sales Professional – selling to institutions. • Mckinsey – quality of research about customer, Ideal Customer. • Xerox – KYC - tapping multiple buying influences. • Infosys – account mapping process & probability of sales / sales forecast & accountability. • Johnson & Johnson Sales planning process. • Voltas – forklifts – sales pitch to users also. Direction One Consulting

Justifying Price & Communicating Value • • • • • • • Asian PPG Industries. GE Medical Systems. Voltas – Cost of operations, impact on business. Asian Paints – lifetime value. Everest roofing products. Volkswagen Polo vs Indigo. • Price is relative, it is not an absolute figure. Therefore success depends on our ability to compare it to a Value which is much larger than the price. • That value is the financial benefit to the customer’s business over the life of the product. Direction One Consulting

Too 5: Investment Benefits Analysis: What pain areas / problems does our product solve for our customers? Features Benefits Financial benefits of Solution to the Customer 1. Does it increase investments but reduce “total costs” in the long run? 2. Does it save time, speed up processes, enable things to be done faster? 3. Does it improve the quality of the product or process? 4. Does it help the customer manage his risk in the business? 5. Does it help him attract more customers, increase ticket size per customer, charge higher prices or increase customer loyalty? 6. Does it simplify the business, making it easy to run? And what is the financial impact of all the above? In Rs. Refer to Worksheet

How do you Sell? Good Salesperson – sells on benefits Great Sales person – identifies pain areas, provides solutions Average Salesperson – sells products & services Direction One Consulting

The ACCESS Sales Process A C Acquire a Capture research a high orientati position on C Clarify value add through diagnost ics E S Educate about Settle service object features ions and benefits S Summarize & close on winning note Direction One Consulting

Acquire a research orientation • Our company knowledge • Product knowledge. • Research target industry. • Research target customer. • Research competition. • Where do we quickly get all this information from? •How do we know we have done this well? Direction One Consulting

Tool 6: Using a Catalyst • Acquiring information about an institution is a complex activity & too difficult to be done alone. • Need a Catalyst who: – knows the account. – wants you to succeed in that account. – does not gain financially from your success. Direction One Consulting

The Concept of the Catalyst • Who can be a catalyst: – Existing Kings. – Friends. – Non-competitive suppliers to the same customer. – Ex-employees / colleagues at the account. – Consultants. – Press / PR professionals. Direction One Consulting

Capture a high position • Use catalysts to approach the King. • However, DO NOT SELL TO KING. • Use king to only gain access to the institution. • Move to next stage - Seek to Clarify value add through in-depth diagnostics. • How do we know we have done this well? Direction One Consulting

Clarify value through diagnostics • Study the business – Identify waste, inefficiencies, areas for improvement. • Learn current business challenges for King (through KRAs). • Learn growth plans for company. • Anticipate future challenges. • Understand our competitive position. • How do we know we have done this well? • Derive Business Value Added. • Clarify personal value add for each buyer. Direction One Consulting

Energize by educating about service features and benefits Present to different buyers as follows: • Your understanding of the current situation. • Your assessment of the future challenges likely to be faced & the risks. • Your solution. • Your BVA & PVA • How do we know we have done this well? Direction One Consulting

Settle objections • Note – If ACCE of ACCESS is done well, this stage would be skipped by customer altogether. • Anticipate likely objections. • Prepare responses. • How do we know we have done this well? Direction One Consulting

Objections • You are highly unlikely to ever meet a customer who says – wow, where were you, I was waiting for you, what amount do I write on the cheque?…….

Just fishing for discounts – be prepared. Drawback – if true, admit the drawback, refocus attention on plus points. Why do customers object? Doubt – offer proof, data, references. Misunderstanding – clarify. Direction One Consulting

Handling objections • Look at them as a buying signal - think of what would happen if your customer said nothing!!!. • Probe – use open questions • The power of knowledge! • Never argue – agree with feeling, not necessarily with the statement. Direction One Consulting

Give discounts / your price is high • Good things are not cheap, cheap things aren’t good. • Nobody gives discounts because their products are selling too well. • Are they so desperate? • What would be more important to you - price or cost? Then elaborate on cost. • Give examples of other premium products where the customer has paid more – eg for men / women. Direction One Consulting

Give discounts / your price is high • “Maybe I did not explain the value of my product well!” • People who give discounts generally cut corners elsewhere in areas where customers do not notice (especially in service). • Reduce the excess price over life of the product. • Reduce the profile of product being offered. • Actually our product is not meant for everybody…. • “xxxx” customers cannot be wrong (give national sales data). Direction One Consulting

Let me think over it • Is there something about my product or company that you are unsure of? • Is there something about me that you are unsure of? • Quite simply, your business is important to me & you will not regret your decision to purchase this product. Could we start the paperwork now? Direction One Consulting

(You come to know) I am not the decision-maker • • • • Stop selling immediately. Besides you, who else would be involved in the decision? Do not sell through, use relationship to map account. Plan to meet the King directly – going top-down is faster. Direction One Consulting

I’m happy with my service provider • Definitely, lots of xxx owners…… • Share examples from similar profile. • The best time to look for a new supplier / job is when you are happy with your old job. • Single supplier relationships sometimes lead to complacency from the supplier’s side. Give us 20% of the business, both of us would stay alert to providing good service. Direction One Consulting

Previous bad experience with your service • Find out why. Then tell the truth to customer. Show you are sweating. • Say – “thanks, your feedback helped us…………”. • Explain how things are different now. • Close. Direction One Consulting

On the phone – I’m not interested • The worst that would happen is that both of us would have made a new acquaintance. • Ask for references. • Ask for permission to call later. Direction One Consulting

Summarize & close on a winning note •Ask for PO / close. • Ask for cheq? • Use closing techniques. • How do we know we have done this well? Direction One Consulting

Win with Closing Skills • Ask for the order. • Balance Sheet Close Direction One Consulting

Ask for the Order • The ABC of sales. • The simplest most effective way to close. • And the most powerful. Direction One Consulting

Balance Sheet Close To be used during competitive sales pitches. Take a blank sheet of paper, draw a line down the center. On the left, list down advantages of yr product. Atleast 7. On the right side, put ONLY the heading – advantages of “competition product”. • Pass sheet to customer. Ask customer to fill up the right column. DO NOT HELP THE CUSTOMER AT THIS POINT. • Customer will most likely struggle. After some time say “Our product really would be the most suitable for your needs………” • • • • Direction One Consulting

You never close a sale, you always begin a relationship 1. Not spray & pray – a customized pitch 2. Not Buffet Counter – only a few products recommended. 3. Some conversations on the product – yes, but a greater emphasis on pain areas, business challenges & what the product / service can do for the customer. 4. No Beggar – just a matured satisfying way to work. Direction One Consulting

Maneesh Konkar Connect with me on & Twitter: youngldrs Email: Blog: Facebook: Young Leaders at Every Level Tel: +91 – 98205 03710 Direction One Consulting

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