Hubsher's Taming The Sales Beast

Taming the Sales Beast:Taming the Sales Beast:10 Principles that Harmonize the 10 Principles that Harmonize the relationship between Sales and relationship between Sales and

Marketing and produces real world Marketing and produces real world resultsresults

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Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected] 2

AgendaAgenda

Background

Word/overview about sales and Marketing and why it is important

Goals for the seminar

Today’s Sales and Marketing Challenges

Successful strategies to bridge the gap

Results - Case study

Building a World Class Sales & Marketing Organization

Wrap up/QA


A word about sales and marketing A word about sales and marketing

“Nothing Happens till a sales is made”

Sales and marketing team is the largest contributors to bottom line/most leverageable asset

Sales- kind of dirty word Rarely taught in business schools Misunderstood Last undisciplined functional area Last frontier, very different from

marketing team


A word about sales: Problem!A word about sales: Problem!

There is a disconnect between sales and marketing that costs companies

millions in revenue, market cap and personal wealth


Even small improvements in sales and marketing can lead to dramatic improvements in net income and market cap

Even small improvements in sales and marketing can lead to dramatic improvements in net income and market cap

Market Cap vs Sales Improvement Increase

4.11

7.62

12.88

21.65

0.00

5.00

10.00

15.00

20.00

25.00

0% 20% 50% 100%

% sales improvement

Mar

ket C

ap in

Billi

ons

1.9x

3.1x

5.3x


Goal to give you tools toGoal to give you tools to

Identify today’s sales and marketing disconnects Provide some sales background and insights that

will accelerate your success in sales and marketing A cohesive plan of attack to minimize disconnects

and maximize the ROI of the sales and marketing efforts

Stuff you can use and implement tomorrow


Today’s Challenges


Welcome to the JungleSome Sales Fundamentals


1) Know you ABC’s1) Know you ABC’s

A – Roles B – Executive vs. Missouri C – Two Slide Close™


1.A) - roles1.A) - roles

Buyer Type Role Satisfied

Financial Buyer Does the perceived benefits outweigh the cost and risk?

Specs Buyer Does this product fit our specifications?

(CIO/director of IT)

End User Buyer Will this product make me more effective?


1.B) - Two parts to selling1.B) - Two parts to selling

Executive sell (no product required) Given to the Financial buyer What Pain will this take away? What extra pleasure will this bring me? What is the risk/reward profile

Missouri sell (“Show Me”) First level pass with Financial buyer Deeper Dive Usually left to Specs Buyer and

End User to decide Will this product solve “MY” pain in my

environment Will this product give “ME” pleasure in my

environment


1.C) - You need the “Two Slide Close™”1.C) - You need the “Two Slide Close™”

Given to Financial Buyer(s)

1st slide – Pain slide/Pleasure slide 3-5 key benefits of your product

2nd slide -Financial justification ROI Payback NPV Cost of Alternative TCO

You should customize these slides to the title and the company you are selling to


Successful strategies to tame the beastSuccessful strategies to tame the beast

1. Who loves you baby?

2. Are you talking to me?

3. The horse whisperer.

4. Icebergs? What Icebergs?* (ASC)

5. Who’s your daddy?* (ASC)

6. Some assembly required.

7. Listen to the philosophers.

8. Know/no bull.

9. The Pipeline the Mother of all Sales.

10. Paradise by the Dashboard lights


1) Who loves you baby?1) Who loves you baby?

Scenario # 1 Know Male White


1) Who loves you baby?1) Who loves you baby?

Scenario # 1 Know Male White

Scenario # 2 Know Male White 6’2 tall Blue eyes Left handed

Sweet tooth Likes country western

music Favors the color red


Don’t waste timeDon’t waste time

Know your perfect prospect profile

Know the title of your financial buyer

VP of Sales

Know 3-5 key demographics

100+ employees or moreSell service oriented products or large discreet manufacturesHave a multi layered sales organizationGeographically distributed sales organization across the US/World

Know 3-5 key psychographics

Have been unsuccessful in using SFA in the pastHave a well defined sales processWant a system installed quickly


2) Are you talkin’ to me?2) Are you talkin’ to me?

Are you talkin' to me? Well, I'm the only one here so you must be talkin’ to me


Get inside their headGet inside their head

Terms in Marketing Market Share Mind Share Marketing communications PR Product, Price, Promotion, Placement Brand Lead

Sales Lead Qualified lead Opportunity, Deal Won, Lost (black white) Sale


The Biggest words of allThe Biggest words of all

Territory Quota Forecast

Anything that happens outside their territory means absolutely nothing

Collaborate: Help your sales people build territory plans to help them exceed their Quota


Pop QuizPop Quiz

Great News: A lead you have generated has directly lead to the biggest new sale in the company’s history:

How many people in marketing are happy?

How many people in the company are happy?

How many sales people are happy?

Why? For how long?


3) The Horse Whisperer3) The Horse Whisperer

Sales and Marketing Success starts with your prospects and clients

You must think like your prospect, not your product


Think like your clients: Map Buying Process to Sales ProcessThink like your clients: Map Buying Process to Sales Process

Buying Process Selling ActivitiesRating (High, Med,

Low)

Identify Pain Uncover/Clarify needsTurn latent needs into urgent needsReframe problem

EnvisionSolution

Explore value of solving solutionFind new solutions to existing problemCreate or Engineer Vision

Set DecisionMaking Criteria

Identify what is importantPreemptively position

Explore Options Present choices

Educate Product telling

Assess Risk Develop TrustProve Solution

Make Selection Decide if it is worth doing

Implement Easy to transact

Measure Reaffirm goalsMake sure goals are being met


Advanced Sales Concepts


4) Iceberg? What Iceberg?4) Iceberg? What Iceberg?

Business Motives are just the tip of the iceberg


Tune Into The Personal AgendasTune Into The Personal Agendas

Financial Buyer

Do the perceived benefitsoutweigh the cost and risk?

Agrees a piece of software will improve productivity 10% and will be worth the costs and risks of installing

Good:

Gets a 10% bonus if productivity increases

Perceived as a change leader

Bad:

Will force me to lay off my fishing buddy.

Will make me admit that the last package that I recommended was a failure/did not work


Watch Out For The Deep Six NukerWatch Out For The Deep Six Nuker

Specs Buyer

Does this product fit our specifications?

Agrees software fits technical specification, and can run on the present hardware

Will have to increase/decrease headcount to support

Good…

Makes my life easier

Bad: The rival brand will look better on my resumeI want to move my company in another IT directionThere is a project I’d rather complete firstI don’t want to get rid of my best friend in the IT departmentI don’t want to hire and manage another personFinancial buyer is an a pest in another department – screw himI don’t like the salesperson


……

End User Buyer

Will this product make me more effective?

Agrees the software will make more productive

Good:

Hey this may actually help me do my job and have more spare time

Bad:

Just a way for management to look over my shoulder

They’ll expect more work for me


5) Who’s Your Daddy?5) Who’s Your Daddy?

Find at least one buyer whose personal agenda will be greatly enhanced with you winning the business.

Leverage this/these resource(s) to understand the motivation and agendas of the other buyers

Position your product to satisfy the needs of people’s personal agendas

If you don’t have a daddy/champion, At best, you will lose to indecision/ no action At worst, you will lose to a competitor who

has one


Real life exampleReal life example

Name Role Agenda Satisfied

VP Janet Financial Buyer

Change Agent

Daddy

VP Derek Financial Buyer

Save Face

Dir of IT Gail

Specs Buyer No Tech Support

Analyst Karen

End User Buyer

SF Trip Daddy


Action ItemAction Item

Compile a list of wins Understand key

Daddies Business Motivations Personal Motivations Use that to map into

future marketing Materials and understand ideal client profile


6) Some Assembly Required6) Some Assembly Required

Process (How do I assemble the pieces) What are the steps for a deal to move from lead to close What information is needed, expected at each stage What commitments do you want to give to the prospect What commitments do you expect back from the process Will vary for your business

Tools to help you do the job (speed sales cycle, anticipate politics, identify buyers who are likely against you, over come competitors)

Parts (What pieces of information do I need - Sales methodologies)

What is the customer’s buying process Who are the key people involved Why are they buying What are the looking for What obstacles might get in the way What is driving the business need What pieces are you missing


Tool Kit:Tool Kit:


7) Listen to the Philosophers7) Listen to the Philosophers

“If I see farther than anybody else, it is because I stand on the shoulders of others”

Share Best Practices Leverage knowledge

Share Worst Practices Avoid repeating common mistakes Same mistake made 3 times by 3

individuals


8) Know/no Bull8) Know/no Bull

Common sales complaints Not enough leads Not enough collateral

Action items Confirm Zero Lead Policy Create library of customizable

materials


Active Deals in Pipeline vs Revenue

0

5

10

15

20

25

30

35

1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 1-Jan 1-Feb

# of

Dea

ls

0

20

40

60

80

100

120

140

160

180

200

$ R

even

ue 0

00 Deals

Revenue in 000

9) Pipeline the Mother of all Sales9) Pipeline the Mother of all Sales

Sales are misleadingSales are misleading


Active Deals in Pipeline vs Revenue

0

5

10

15

20

25

30

35

1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 1-Jan 1-Feb

# of

Dea

ls

0

20

40

60

80

100

120

140

160

180

200

$ R

even

ue 0

00 Deals

Revenue in 000

Launch

Sales and Marketing Campaign

Launch

Sales and Marketing

Campaign #2

Fear/stop marketing

Ecstatic

Done

9) Pipeline the Mother of all Sales9) Pipeline the Mother of all Sales

Sales are misleadingSales are misleading


How’s biz?How’s biz?

Sales Pipeline Implication

Future is bleak

No sales

Questionable future

Future probably good


10) Paradise by the Dashboard lights10) Paradise by the Dashboard lights

Incoming leads

0

20

40

60

80

100

120

140

J F M A M J J A

Month

Close Rate

0%

10%20%

30%40%

50%60%

70%80%

90%

J F M A M J J A

Avg Deal size

0100002000030000400005000060000700008000090000

100000

J F M A M J J A

Avg Days to close

0

20

40

60

80

100

120

J F M A M J J A

days

Incoming Leads

Avg Days To CloseClose Rate

Avg Deal Size


Pipeline AnalysisPipeline Analysis

Potential Sales by Sales Stage

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

A - First Meeting B - NeedsAnalysis

C - InvestmentPlan

D - Refine Plan E- Closed

New Prospects Existing Clients


Results and Case Study of Implementing these Principles


My 2 slide close to you: By implementing this principles:My 2 slide close to you: By implementing this principles:

Increase close rates Increase deals size Increase deal velocity

Dramatic positive impact on net income, market cap and personal wealth


5.5 improvement in close rates5.5 improvement in close ratesClose rate

14%

77%

0%10%20%

30%40%50%60%

70%80%90%

Before After

5.5 x

Results can be extraordinary!


4.8 x improvement in deal size4.8 x improvement in deal size

Avg Deals Size

$17,121

$81,529

$-$10,000$20,000$30,000$40,000$50,000$60,000$70,000$80,000$90,000

Before After

4.8x


2.4 x improvement deal velocity2.4 x improvement deal velocity

Avg Business Days to Close

88

37

0

20

40

60

80

100

Before After

Days

to C

lose

2.4x Increase


6,200 % increase in sales productivity6,200 % increase in sales productivity

$ Revenue/Rep

$136,190

$8,483,423

$-

$1,000,000$2,000,000

$3,000,000$4,000,000

$5,000,000$6,000,000

$7,000,000$8,000,000

$9,000,000

Before After

62x

Before After ImprovementClose Rate 14% 77% 5.5Avg. Deal Size 17,121$ 81,529$ 4.8Avg Business Days to Close 88 37 2.4$ Revenue/Rep $136,190 $8,483,423 62.3


Dramatic positive impact on net income, market cap and personal wealthDramatic positive impact on net income, market cap and personal wealth

Before AfterNet Profit/Rep ($81,905) $3,941,711Market Cap Inc/Rep $0 $98,542,787

Net Profit/Rep

($500,000)

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

Before After

Net

Pro

fit

$3.9 Mill

-$0.1 Mill


A Peek AheadCreating a world class sales and marketing organization


Creating a World Class Sales and Marketing OrganizationCreating a World Class Sales and Marketing Organization

Benchmark current environment

Compare to best practices Identify Gaps

Sales Management Sales

Create Roadmap and Implement Steps to Close Gaps


Benchmark Current EnvironmentBenchmark Current Environment

People Process Tools Technology

People & Skills Process Tools and TechnologyOrganization Structure Sales Management CRMResource Allocation/NormalizationAccount Management WebconfrecingPredictive Hiring Opportunity Management 2 slide closeCompensation Call Planning 3 slide closeNew Hiring Training Call Execution Sales MethodologyField Support Lead Management/DevelopmentTime lineCoaching Qualifying Reverse time lineOngoing training Best/Worst Practices Account PlanSkills Set Gap Analysis Objection Handling Opportunity PlanQuestioning and Qualifying Negotations Call PlannerShorten the sales Cycle Overcoming Negative Selling Qualify QuestionsUnderstanding the Politics Trapping for price cutting Profiling toolPresentation Competiveive Selling Knowledge CenterCalling High Forecasting Sales PlaybookObjection Handling Pipeline Management Value StatementNegotations Pricing Changes Anticipating Political ConflictPreparation Proposal Company KnowldegeListening Quoating Product KnowldegeDiscovery Skills Customer Leverage Programs Competitive Knowledge


Create a roadmap for sales successCreate a roadmap for sales success

Identify High ROI areas Create a roadmap Implement roadmap


Wrap up!


Ron Hubsher, Managing DirectorRon Hubsher, Managing Director

Ron Hubsher is managing director of the Sales Optimization Group. Ron has over 20 years of experience in sales, sales management, and business development. Prior to the Sales Optimization Group, Ron was in sales management at a leading CRM provider UpShot -- acquired by Siebel (Nasdaq:SEBL) -- where he helped hundreds of companies improve their sales performance. A former Management Consultant with Booz, Allen & Hamilton, Ron has worked with, and helped provide thought leadership for, Fortune 500 companies on their sales, marketing, and business strategies.

Ron graduated with an MBA from Columbia University Graduate School of Business. He has a Bachelors of Science degree in Operations Research from Columbia University where he was elected to the Tau Beta Pi and Omega Rho honorary societies.