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Strategy, Sales, & Sales Management

Sales, sales management, sales strategy

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Sales, sales management, sales strategy

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Page 1: Sales, sales management, sales strategy

Strategy, Sales, & Sales Management

Page 2: Sales, sales management, sales strategy

Strategy, Sales, Sales Management

B2B Sales Management 101B2B Sales Strategy 101 B2B Sales Case Study: GrooveSales & Strategy Reading List

Page 3: Sales, sales management, sales strategy

B2B Sales Management 101 -- Harsh Reality

Page 4: Sales, sales management, sales strategy

B2B Sales Management 101 – The Number“Quarteritis…”

“The sun rises & sets on the quarter”

Page 5: Sales, sales management, sales strategy

B2B Sales Management 101 – Sales Representatives

Sales Rep ProfilePersonable, builds trustHigh energyAggressive/”edge”Street Smart (v. book-smart)Listeners/nonverbalMotivated by money

80-20 ruleCompensation

Base $90k - $100kCommission $125k (plus draw)

0%-50% quota = x%; 50% -100% quota = 2x%; > quota = 3x%Stock options – less importantPresident’s ClubTop reps’ pay > CEO’sMeasurable & Accountable – high turnover tolerated

Page 6: Sales, sales management, sales strategy

B2B Sales Management 101 – Strategic Selling

BOD

CEO

LOB LOB LOB LOB LOB IT Finance Purchasing LegalVP Enterprise Apps

…Bus IT …Bus IT …Bus IT …Bus IT …Bus IT VP Enterprise InfraCTOEtc

Page 7: Sales, sales management, sales strategy

B2B Sales Management 101 – Predicting The Future

PROSPECTS(Email, URL, Source, HI-IQ Email Nurture)

LEADS(Phone #, Lead Conversion Event)

NEW CUSTOMERS(CC# and Authorization)

SatisfiedCHI > 70

UnsatisfiedCHI < 70

Mar

keti

ngSa

les

Cust

omer

Se

rvic

eHubSpot HI-IQ

SalesForce.comOPPORTUNITIES(Demo/Trial, 3 per day per rep)

SalesForce.com

SUSPECTS(HubSpot, WSG; PPC MVT)

Page 8: Sales, sales management, sales strategy

B2B Sales Management – Predicting the FutureThe Funnel

Visitors

Prospects

Leads

Opts

Page 9: Sales, sales management, sales strategy

B2B Sales Management 101 -- Predicting the Future The Forecast

Closed Likely Upside Q+1 P E D D I C C RD% VP% Fcst UpsideeCommerce 248,405 47,250 15,000 10,000 9,025 9,000 Inside Sales 207,900 10,000 - - 1,000 - Salva Army: Stryker 125th TF Olympia 151,662 - - - - - McPartland KPMG - Services 150,000 - - - - - Black BAH / Centrix 78,183 - - - - - Okada NG / State Near East Bureau 62,894 - - - - - Okada CARE 60,266 - - - - - Foster Tyco - software 56,389 - - - - - Marcus CA Dept of Justice 56,279 - - - - - Wilson Microsoft 54,856 - - - - -

37,021 - - - - - Smith SPAWAR-DM,B/U Svr 36,794 - - - - - Black DARPA (SAIC/Hicks) 32,218 - - - - - Tyre EDS 28,265 - - - - - Foster Praxair 23,977 - - - - - Marcus State of FL 22,943 - - - - - Shartzer LDS - Deseret Mgt 18,483 - - - - - Shore P&G 17,987 - - - - - Manniso VA - Infrastructure (Albany NY Buyer) 15,120 - - - - - Tyre Shell - trial extension 15,000 - - - - - Smith SPAWAR Europe/Ivan(2) 14,075 - - - - - Salva Army Corp. Of Engineers - 1,808,559 - - Y Y Y Y Y Y Y 50% 50% 904,280 - McPartland EY - enterprise - 787,000 - - Y Y Y Y Y Y Y 80% 90% 78,700 - Salva Army: HQ - 439,480 - - Y Y Y Y Y Y Y 95% 95% 21,974 - Shartzer Hitachi Data Systems - 192,465 - - y Y Y y y Y N 80% 80% 38,493 - Shore GSK - 104,000 - - Y Y Y Y Y Y Y 70% 90% 10,400 - Salva PM RESET (Aviation) - 93,417 - - Y Y Y Y Y Y Y 95% 90% 9,342 - Shore Lowe/Draft - 65,000 - - Y Y Y Y Y Y Y 70% 50% 32,500 - Foster Praxair - 59,000 - - Y Y Y Y Y Y Y 90% 90% 5,900 - Manniso VA Florida Ohio buyer GTSI - 46,125 - - Y Y Y Y Y Y Y 90% 90% 4,613 - Hommes & Process (Fr) CCAIG - 40,000 - - 100%Marcus State of FL - 22,943 - - Y Y Y Y Y Y Y 90% 80% 4,589 - Edginton Intermec - 21,893 - - Y Y Y Y Y Y N 75% 75% 5,473 - Tyre American Express - - 678,000 - Y Y N N Y Y N 40% 40% - 271,200 Wilson Intel - - 310,126 - Y Y N N Y Y N 60% 60% - 186,076 McPartland KPMG - Servers - - 132,600 - Y Y Y N Y Y Y 35% 35% - 46,410 Marcus USG - New project - - 125,000 - y y y y y y N 75% 50% - 62,500 Foster Siemens - - 86,000 - Y Y Y Y Y Y Y 50% 60% - 51,600 Foster Siemens - - 55,000 - Y Y Y Y Y Y Y 50% 60% - 33,000 Boyd La-Z-Boy - - 45,850 - Y Y Y Y Y Y Y 65% 65% - 29,803

Prob AdjustmentsSales Qualifiers

Rep Account

Current Quarter's Forecast

Page 10: Sales, sales management, sales strategy

B2B Sales Management 101 -- Other

Accounts ReviewsRecruiting (profile)Territory DistributionCompensation PlansSales Rep DevelopmentSales Process & methodology

Page 11: Sales, sales management, sales strategy

B2B Sales Strategy 101Segmentation = Profits

All Customers Avg. Trans. < $3k

Avg. Trans > $3k

SMBs 28 108

VSBs 21 28

Total 185

Cancelled Customers

Avg. Trans. < $3k

Avg. Trans > $3k

SMBs 3 7

VSBs 11 7

Total 28

Monthly Churn Rate 1

Avg. Trans. < $3k

Avg. Trans > $3k

SMBs 2.6 % 1.6 %

VSBs 12.6 % 6.0 %

Total 3.6 %

1 Total churn rate (not shown) is calculated as cancelled customers (all time) divided by total customers (all time). Monthly churn rate is total churn rate divided by average customer lifetime of 4.16 months

Page 12: Sales, sales management, sales strategy

B2B Sales Strategy 101Crossing the Chasm…

Page 13: Sales, sales management, sales strategy

B2B Sales Strategy 101 Model Comparison

TRANSACTIONAL CONSULTATIVE ENTERPRISEProduct or service characteristics

Well UnderstoodReadily substitutableStandard items

DifferentiatedCustomizableHidden Capabilities

High Strategic and/or cost importance

Limited substitutability

Key buyer concerns and decision criteria

PriceAvailability riskEase of acquisition

Importance of problem

Solution fitPrice-performance

tradeoffs

Platform fitValues fitSustainability

Time horizon Event Purchasing stream Strategic planNature of relationship

Cost - basedBuyer-sellerConfrontational

Benefits – basedClient-advisorCooperative

Trust – basedBusiness equalsInsiderBoth parties change

fundamentally Prerequisites for success

Access to decision maker

Access to influencers

Access to strategy

Nature of sale Doing the deal Problem solving Agenda settingBoundaries blur-

unclear who is selling and who is buying

Source: Rethinking the Sales Force

Page 14: Sales, sales management, sales strategy

B2B Sales Strategy 101Reason for shift to consultative model

Sales 5

Resource commitment needed for consultative selling

Sales 4Sales 3Sales 2Sales 1

$Cost

Source: Rethinking the Sales Force

Sales 5Sales 4Sales 3Sales 2Sales 1

%Return 0%

Page 15: Sales, sales management, sales strategy

B2B Sales Strategy 101 Consultative Model

“Listening and gaining business understanding are more important selling skills than persuasion; creativity is more important than product knowledge.”“The only single ‘truth’ that seems to be holding true for all sales forces is that they have to create value for customers if they are to be successful. Just communicating the value inherent in their products isn’t enough.”“It’s a risky strategy in a consultative sales to go to a senior-level decision maker before thoroughly understanding the issues and problems where you can create value. Most good consultative salespeople will first do their homework by working with those influencers in the buying organization who have the best knowledge of the problems and opportunities where the selling organization hopes to create value.”

…Quotes from “Rethinking the Sales Force.” Neil Rackham & John DeVincentis

Page 16: Sales, sales management, sales strategy

B2B Sales Case Study: Groove NetworksP0: Evaluation P1: Validation P2: Initial Rollout P3: Enterprise Rollout

REVENUE

COST OFSALE

Page 17: Sales, sales management, sales strategy

B2B Sales Case Study: Groove Networks

P0: Educate P1: Validate P2: Initial Rollout P3: Enterprise Rollout

SALES ACTIVITIES• IT call(s)• Orientation• LOB/LOB IT calls• Validation

2 Track Pilot Trial:- IT validation- LOB pain project

• Implement seats & gather metrics

• Penetrate new LOBs• Engage enterprise

apps• Horizontal bus

processes

• Groove as standard desktop DNA

• Integrate w/ Ent Apps• Groove broadly

deployed and used throughout value chain

LOB Pain ID’dIT Champ

Validation Process

Pain ValidatedIT Validated

$100k+

Multiple Pain/LobIT Service

Offer’g$500K+MSLSA

$1m/yrEvery desktop

2 months 2-3 months 6 months ongoing

Page 18: Sales, sales management, sales strategy

B2B Sales Case Study: Groove NetworksQ1 (P)hase Movement

P1’sLowe $46KESP $50KAMEX $40KMattel $35KIntermec $22K

P2’sHP Mktg $770KOCPA $691KSiemens $111KSAIC $142KPraxair $100KNovartis $86kVLH $522KArmy $154KHP C&I $106KKPMG $100K

P0’sSPAWAR $18KHitachi $10KCARE $7KDuPont $7kVerizon $6KServiceCo $16k

Page 20: Sales, sales management, sales strategy

Questions?