Sales strategy workshop 2013 slideshare

OFFER

DISTRIBUTION CHANNELS

CUSTOMER RELATIONSHIPS

CUSTOMERSEGMENTS

REVENUE STREAMSCOST STRUCTURE

KEYACTIVITIES

PARTNERNETWORK

KEYRESOURCES

20 MIN

4

OFFER



CUSTOMERSEGMENTS


KEYACTIVITIES

PARTNERNETWORK

KEYRESOURCES

COMMERCIAL / BUSINESSSTRATEGY

OFFER



CUSTOMERSEGMENTS


KEYACTIVITIES

PARTNERNETWORK

KEYRESOURCES

1 What is the customer’s buying behaviour?

2What is our value

proposition?

3Who are we going to target and why?

4What type of relationships do we want?

5How are we going to do it?

1. What are their problems and needs?

2. What type of “value” are they looking for?

3. How do they typically buythis type of product / service?

OFFER



CUSTOMERSEGMENTS


KEYACTIVITIES

PARTNERNETWORK

KEYRESOURCES


1. Who are the main players and role do they play? Select a few key customers part of the segment.

2. What are the main problems / issues the customer is facing? To uncover them discuss the following items in group:

1. Information: What does he see and hear? Where is that information coming from?

2. Emotions: What do they think and feel?

3. Behaviour: What do they do?

3. Based on your information map identify which are the customer’s problems and which are the solutions (gains) the customer is trying the achieve.

Source: Dave Gray, “GOGamestorming”

10 MIN

What are their customers doing?

What are their suppliers doing?

What are their competitors doing?

Political / Legal Changes

Technological Changes

Economical Changes

Social Changes

Others ….

What is their opinion on all these changes?

What do they fear?

What do they like?

What do they do more, less?

What have they stopped doing?

What have they started doing?

What do they

see?What do they

hear?

What do they

think and feel?

What do they

say and do?

What are their main problems / pains? What do they try to achieve / gains ?



Source: Neil Rackham, “Rethinking the Sales Force”

Extrinsic Value Buyers

Intrinsic Value Buyers

Strategic Value Buyers

What is

the

price?

How will it

solve our

problems?

How will it

improve our

business?



3. How do they typically buy this type of product / service?


Str

ate

gic

or

cost

im

port

an

ce o

f th

e su

pp

lier

’s p

rod

uct

Difficulty of SubstitutionLow High

Leverage Size

Shop

Partner

Manage Risk


Stra

tegi

c o

r co

st im

po

rtan

ce o

f th

e s

up

plie

r’s

pro

du

ct


Leverage Size

Shop

Partner

Manage risk

Which mobile phone should I buy?

For which platform should we develop our app?Which bank will give us the best rate?

Which training organisation should we use?

1. What are the features, advantages and benefitsof your value proposition?

2. What is your sales pitch?

OFFER



CUSTOMERSEGMENTS


KEYACTIVITIES

PARTNERNETWORK

KEYRESOURCES

1. What are the features, advantages and benefits of your value proposition?

Benefits

Advantages

Features

“So what?”Ways in which the features can be used to help the user.

“What can your product do?”Raw facts and information about the product.

“What is it for me?”Ways how the product can be used to meet the needs of the user.

This mobile phone has a colour screen.

This mobile phone has an agenda function.

You don’t have to keep two agenda up to date because your phone’s agenda will synchronise with your outlook.

You said you wanted to know whether you received emails or phone calls during meetings, well with this phone you can do that by setting it on vibrate mode.

This phone is very light don’t you think?

FEATURE ADVANTAGE BENEFIT

The…(feature)…means you…(advantage)…with the real benefit to you being…(benefit).

1. Select at least 5 features of your value proposition

2. For each feature identify at least one advantage and one possible benefit.

3. Identify which 1 or 2 features really makes your company and product stand out from your competition.

20 MIN

1

2

3

4

5

Note: Which features makes you really unique?

1

2

3

4

5

1

2

3

4

5

1. What are the features, advantages and benefits of your value proposition?

2. What is your sales pitch?

1. Based the information from the FAB and from the customer intimacy map write down your own sales pitch.

HINT: A sales pitch is usually small. Do not try to put too much information.

20 MIN

For

who is unsatisfied with

Our product is a

that

unlike

we have assembled a product that

<ideal customer>

<current alternative>

<product category>

<key benefits/advantages>

<competition>

<unique differentiators>

1. What makes a customerattractive to us?

2. What makes us attractive to our customers?

3. How to differentiate our customer approach?

OFFER



CUSTOMERSEGMENTS


KEYACTIVITIES

PARTNERNETWORK

KEYRESOURCES

1. What makes a customer attractive to us?

Customer attributes

Risk reduction: working together

‘Hard’Nature of criteria

‘Soft’

• Spend

• Turnover

• Volume

• Cost to serve

• Profit

• Contribution

• Price

• Growth

• Strategically important

purchase

• Appropriate decision-

making structure

• Right attitude to

relationships

• Prepared to pay for

value

• Prepared to invest

• Member of targeted

segment

• Strategic fit

• Want non-standard

solutions

• Specifics (e.g. Speed,

compatible systems)

• Compatible services

Customer needs

Opportunities for product/service differentiation

Outcomes

Financial outcomes/profit

In groups of 5 people:

- Select 1 type / segment of customers within your group.

- Select 5 to 6 criteria that define the attractiveness of your customers.

- Attribute a weight to each of the criteria.

- Take 2 customers (preferably extremes) and rate their attractiveness

30 MIN

Customer attractiveness factors (CAFs) 1) Relative

importance

rating

2) Customer A

rating 1-10

3) Customer A

Score (=1x2)

2) Customer B

rating 1-10

3) Customer B

Score (=1x2)

100% Total = Total =



Examples of customer criteria when looking at their suppliers:

• Product/service range

• Product/service quality

• Product/service adaptation to Customer’s needs

• Quality of support services

• Price

• Associated Services (e.g. technical advice)

• Expertise

• Joint projects, R&D etc.

• Reputation and image of supplier

• Past experience of working with supplier

• Quality of sales/KAM/Customer service staff

• Quality of relationships

• Easy to do business with

• Geographical spread

• Value for money


• Select 5 or 6 criteria which you believe are the most important for your customers.

• Attribute a weight to each of the criteria.

• Put yourself into the shoes of your customers and see how they would rate your own company.

30 MIN

Business Strength 1) Relative

importance

rating

2) Customer A

rating 1-10

3) Customer A

Score (=1x2)

2) Customer B

rating 1-10

3) Customer B

Score (=1x2)

100% Total = Total =


• Select 4 or 5 of your customers. Preferable small and large customers.

• Complete the scorecard your just made for each of them and plot the result on your quadrant.

30 MIN

attr

acti

ven

ess

12

34

56

78

91

0

1 2 3 4 5 6 7 8 9 10

Business strength



3. How to differentiate our customer approach?

Att

ract

iven

ess

12

34

56

78

91

0

1 2 3 4 5 6 7 8 9 10

Business strength

Star Segments

or Customers

Strategic

Segments or

Customers

Status

Segments or

Customers

Streamline

Segments or

Customers

Invest

Maintain Manage for Cash

Selectively Invest

1. What type of relationships do we have?

2. What type of relationships do we want?

OFFER



CUSTOMERSEGMENTS


KEYACTIVITIES

PARTNERNETWORK

KEYRESOURCES


Adapted from Millman and Wilson 1994 by McDonald and Woodburn 2000

Customer Strategic Intent

Integrated

Interdependent

Co-operative

Basic

Exploratory

Collaborative

Transactional Collaborative

Stra

tegi

c In

ten

t

Board BoardAdmin AdminOps OpsSalesPerson

Key Customer

Contact

SONY CUSTOMERS / PARTNERS

Managers

Operations Operations

Administration Administration

Board Board

SalesPerson

CustomerKey Contact

Managers

You CUSTOMERS/PARTNERS

Rating Score

Strongly agree 4

Agree 3

Disagree 2

Strongly disagree 1

Does this statement apply to your relationship with your customer? Score

If our relationship ended, both parties would find it difficult and complicated to exitThere is a real spirit of partnership and trust between our two companies

Together we have produced long-term strategic plans for the development of our relationship and business together

Any information at all relevant to our business together is passed straight on to the client

People at all levels in both organisations are in constant communication with each otherWe have both realised substantial benefits through working together

Total Score


• For each of the customers you platted on your quadrant complete the customer relationships survey.

• Review with your colleagues if the relationships is in line with the type of customers.

20 MIN


2. What type of relationships do we want?

attr

acti

ven

ess

12

34

56

78

91

0

1 2 3 4 5 6 7 8 9 10

business strength

Integrated

Interdependent

Co-operative

Basic

1. What type of sales approach do we need?

2. Which channels should we use?

OFFER



CUSTOMERSEGMENTS


KEYACTIVITIES

PARTNERNETWORK

KEYRESOURCES


Str

ate

gic

or

cost

im

po

rta

nce

of

the

sup

pli

er’s

pro

du

ct


Leverage Size

Shop

Partner

Manage risk

Transactional Selling Consultative Selling Partnership Selling

Product and service

characteristics

-Well understood

-Readily substitutable

-Standard items

-Differentiated

-Customisable

-Hidden capabilities

-High strategic and or cost

importance

- Limited substitutability

Key buyer concerns and decision

criteria-Price

-Availability and risk

-Ease of acquisition

-Importance of problem

-Solution fit

-Price performance trade off

-Platform fit

-Value fit

-Sustainability

-Sufficient value for effort

Time horizon -Event -Purchasing stream -Strategic plan

Nature of relationship -Cost based

-Buyer seller

-Confrontational

-Benefit based

-Client advisor

-Cooperative

-Trust based

-Business equals

-Insider

Prerequisites for success -Access to decision maker -Access to influencers -Access to strategy

Nature of sale - Doing the deal

- Simple Sales process

- Short sales cycle

- One or few decision makers

- Problem / Need solving

- Long sales cycle

- Complex sales process

- Large DMU

-Agenda setting

- Boundaries blur – unclear who is

selling and who is buying.

Car Salesperson. Responsible for persuading customers to buy a Suzuki car.

Fleet Service Salesperson. Responsible for persuading Suzuki’s resellers to promote their fleet services.

Distribution Salesperson. Responsible for persuading potential resellers to become a Suzuki reseller.


IDENTIFYING EXECUTION GAPS

DEFINING PROBLEMS AND NEEDS

IDENTIFY SOLUTION

SELECT SUPPLIER &PRODUCT

PURCHASEDEFINESTRATEGICAGENDA

Transactional SellingConsultative SellingEnterprise Selling


2. Which channels should we use?


• Identify what are the different sales and servicing needs of your customers.

• How important are each of these services for your customers?

10 MIN

Expert advise and hand holding

Training

Customisation to specifications

Integrated total solution

On site setup and installation

Self Service

Low prices

Fast Local Support

24 * 7 Support

PERSONAL SELLING

Customer Needs Field Sales Force

Value Added Partners

Volume Resellers and Distributors

Retail/mass Merchants

Call Centres Internet

Expert advise and hand holding √√√ √√√ √ √√ √√ √

Training √√√ √√√ √√ √ √ √

Customisation to specifications √√√ √√√ √ √ √ √√

Integrated total solution √√ √√√ √√ √ √ √

On site setup and installation √√√ √√√ √√ √√ √ √

Self Service √ √ √ √√√ √√ √√√

Low prices √ √√ √√ √√ √√√ √√√

Fast Local Support √√ √√√ √√ √√ √ √

24 * 7 Support √ √√ √ √ √√√ √√√

SALES MANAGEMENT

ACTIVITIES PERFORMANCE REWARD LOYALTYSALES PEOPLE

SALES FORCE DESIGN

1 What type of sales targets do we need?

2What are the roles and responsibilities of our sales people?

4What type of sales people do we need?

3 What are the activities part of our sales process?

5How should we manage our sales people?

1. What is our strategy map?

2. What type of objectives, targets and measuresare we going to use for our strategy?

Instructions• In groups by company map

your own strategy map.• Focus on the sales &

marketing activities• Start by identifying the type

of financial objectives you use.

Examples• Financial Perspective

• Sales Volume per period• Profits per period• Orders per period

• Customer Perspective• Customer Acquisition• Customer Satisfaction• Customer Relationship

• Process Perspective• Sales Process• Account Planning process• Account Servicing Process

• Learning Perspective• Competitor Knowledge• Selling Skills• Customer Knowledge• Market Knowledge

30 MIN

Revenue

Better sales

approach

Increase nbr of new customers

Customer must see

the added value of

sales

Better marketing campaigns

Online Lead

generation Tools

Find more events

Sales Training

Sales & Marketing Objectives Measures Targets

• Increase sales revenue

• More new customers• Create a customer

experience

• Standardised consultative sales approach

• Increase follow up on leads

• More and better marketing campaigns to generate leads

• New online tools to capture leads

• Participate at new events• Increase training days

• Sales Revenue

• #contracts

• #leads follow up• #proposal• #proposal follow up

• #of leads per sales person

• #Training days• #Coaching days• #Events Participation

Fin

anci

al

Pe

rsp

ect

ive

Cu

sto

me

r P

ers

pe

ctiv

eIn

tern

al

Pe

rsp

ect

ive

Lear

nin

g P

ers

pe

ctiv

e

• 1.000.000 EUROS

• 1 contract a week

• 8 leads a week• 5 proposals a week• 5 follow up calls a week

• 400 leads by sales person

• Not defined

Instructions

For your own strategy map:

• Complete the objectives

• Define how you are going to measure it.

• Set the targets.

20 MIN

Sales & Marketing Objectives Measures Targets

Fin

anci

al

Pe

rsp

ect

ive

Cu

sto

me

r P

ers

pe

ctiv

eIn

tern

al

Pe

rsp

ect

ive

Lear

nin

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ers

pe

ctiv

e

1. What type specialisation do we need in our sales force?

2. What type of roles and responsibilities will we assign to our sales people?

Complex RANGE of Products

SIMILA

RCu

stome

r Need

s1

23

45

1 2 3 4 5

Product DrivenSpecialisation

Geography DrivenSpecialisation

Product / Market DrivenSpecialisation

Market DrivenSpecialisation

Customer Needs

Simple 1 2 3 4 5 Complex

All our customers and prospects have very similar needs.

All our customers and prospects have very specific needs depending on the type of organisation and sector their operate it.

Product Range

Simple 1 2 3 4 5 Complex

All our products are very similar allowing one person to easily sell their all.

Our products are very different and each of them require highly specific knowledge from our sales force.

They manage large scale and

value of sale. Long negotiation,

complex purchase decision,

usage of the product is different

from consumer sale. Main

activities are relationship

selling, and prospecting.

Sales person is not permitted or

expected to take orders. The

objective is to create goodwill or

educate the customer Main activities

are delivering samples, education ad

promotional activities and sales

service.

They seek out new channels

and support existing ones.

Main activities are channel

management, Prospecting,

Training and Recruiting and

entertaining. Additionally some

relationship selling

Salesperson predominantly

delivers the product. Selling

skills as secondary to good

servicing skills. Main activities

are stock shelving, writing up

orders, and checking inventory

.

Their objective and main

activities are providing support

to the sales people who are in

the field.

Maintaining close long-term

relationships with

organisational customers. They

are often involved in team

selling. Main activities are

providing product support,

maintenance and installation

and entertaining.

The objective is to win new

business by identifying and

selling to prospects.

Main activities are Prospecting

and Relationship selling.

They provide support to the

retailers and wholesales to

ensure that their product is well

represented and displayed.

Main activities are promotion

activities and servicing.

Retail sales assistant, customer

chooses freely the product.

Sales person only handles the

transaction. Telemarketing

taking orders from customers

how are calling in.

Position where the salesperson

is predominantly an order taker

Helping the customer to make

their choice and complete the

transaction.

They are involved in complex and

highly technical sales as support of

the sales team. They play a dual

role of sales person and advisor.

Main activities are analysing the

customer’s problems and needs and

proposing a tailored solution.

Identifying potential business

opportunities by analysing market

trends and developing strategies.

Closing new business opportunities

by coordinating requirements;

developing and negotiating

contracts.

1. What type of activitiesshould our sales people do?

2. What does our salesprocess look like?

LEADS

DEAL

Consists of activities that enable the customer to become aware of the needs for your product or services.

Consists of the activities that will stimulate interest with the customer for your product or service.

Consists of the activities that are likely to stimulate your customer to desire / want your product or service.

Consists of the activities that will get the customer to actually purchase your product or service.

AWARENESS INTREST DESIRE ACTION

Applicable for:

- Short sales cycles (1 to 2 visits to close a sales)

- Consumer sales

- Product Based Sales

Prospecting Qualification Presenting Negotiating Closed Follow-up

Consists of activities such as generating, qualifying and distributing new leads.

Consists of understanding the needs and problems of the customer and determining whether the sales person’s products and services can be of value to the customer.

Consists of showing the customer how the supplier’s produces and services will enable them to solve their problems and needs.

Consists of agreeing the terms of the purchase with the customer.

Consists of all the final contractual activities to close the deal.

Consists of all the activities the sales force provides during the after sales of the product.

Applicable for:

- Long and complex sales cycles

- Project Based Sales

- Business to Business sales

Consists of activities that enable the customer to become aware of the needs for your product or services.

Consists of the activities that will stimulate interest with the customer for your product or service.

Consists of the activities that are likely to stimulate your customer to desire / want your product or service.


EXPLORATION BASIC CO OPERATTION ALLIGNED


INTEGRATED

Applicable for:

- Long and complex relationships

- Key Account based Sales

- Business to Business sales

InstructionsIn groups of 4 or 5:

1. Select the sales stages tat are more appropriate for your sales process.

2. For each of the stages identify all the key activities that the sales people will need to perform.

30 MIN

SALES PROCESS: ….....

Stages

Activities

Tasks /Working

procedures

1. What type of sales people do we need?

9

8

7

6

5

4

3

2

1 2 3 4 5 6 7 8 9

CLOSER

CONSULTANTRELATIONSHIPBUILDER

DISPLAY SALES PERSON

Personality:

High energy

Manipulative

High Need to achieve

Risk Takers

Skills:

Prospecting

Presenting

Motivation:

Status

Recognition

Personality:

Team Leader

Professional

Enjoys challenges

Highly Educated

Calculated Risks

Skills:

Problem Solving

Motivation:

Mastery

Purpose

Personality:

Likable, fun

Hard working

Team Player

Likes his autonomy

Avoids Risks

Skills:

Developing

Relationships

Motivation:

Autonomy

Sense of Belonging

Personality:

Happy, outgoing

Service oriented

Not an overachiever

Pleases the customer

Avoids Risks

Skills:

Service driven

Motivation:

Recognition

Customer Needs

Sales Person ProfileNew Product

BuyersNew System Buyers

Established System Buyers

Commodity Buyers

85% 40% 25% 20%

50% 82% 46% 30%

15% 55% 89% 35%

10% 9% 18% 70%

Source: HR The Chally Group: « How to Match the Type of Salesperson to your customers? »

1. What type of sales approach to adopt ?

2. How will we coach our sales people?

MARKET BASED

The market / customer sales revenues determine whether the sales people are doing a good job or not.

BEHAVIOUR BASED

Adherence to our sales process and activity targets determine whether the sales people are going a good job or not.

CLAN BASED

Adherence to our company’s values and norms determine whether the sales people are going a good job or not.

97

MARKET BASED

BEHAVIOUR BASED CLAN BASED

ADVANTAGES

- Keep sales people focus on results.

- Easy to apply.

- Promote initiative

- Consistent across different people in the

organisation

- Requires very little management

attention

DISADVANATAGTES

- Focus on the end rather then the

means

- Fails to stimulate growth of

professionalism

- Short term focus

- Requires sales people whit a risk

taking profile

Tupperware ladies Self Employed Sales Agents“Jerry Maguire Movie”

ADVANTAGES

- Greater opportunity for behaviour

modification.

- Encourage customer relationships.

- Recognize the difference between

cause and effort.

- Encourages risk averse people to start

a career in sales.

- Applicable where sales people need

very specialised knowledge and skills.

DISADVANATAGTES

- Requires management ability to

observe and diagnose

- Require time for observation

- Requires impartiality

- Likely to be implemented with some

inconsistency across the organisation

Retail Salesperson

ADVANTAGES

- Requires very little management

effort

- Encourages loyalty

- Recognises that selling is a team

based effort.

- Promotes autonomy and initiatives

- Applicable where sales people need

very specialised knowledge and skills

- Applicable in highly volatile markets

DISADVANATAGTES

- Difficult to measure, very subjective

- Lack of outcome focus

- Requires impartiality

- Lacks real accountability

Sales Team

Behaviour or Outcome

Based

Behaviour Based

Outcome Based

Clan Based

Process Knowledge

Perfect Imperfect

High

Low

Ab

ility

to

mea

sure

acc

ura

tely

an

d c

om

ple

tely

InstructionsYou probably will combine all three approaches in your management style. The question is:1. How important is each going

to be. Draw a line connecting the three legs indicating their relative importance.

2. Describe how you are going to implement the approach in terms of management activities, rewards and targets.

20 MIN

MARKET BASED

BEHAVIOUR BASED CLAN BASED

In groups of 2 participants:

• GOALS: What are your goals for the this period?

• REALITY: How far are you from realising your individual goals? For which goals are you lagging?

• OBSTACLE: Why are you lagging? Ask 3 times the why question.

• WAY FORWARD: How can we remove the obstacle?

20 MIN

Why?

Why?

Why?