Collaborating with Sales: Best Practices for Developing ... · 6/11/2015 · effective. Coupled with “in the field” development, the value of sales training can be realized more

© 2015 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL© 2015 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL

Collaborating with Sales:

Best Practices for

Developing Effective

Pricing Processes

Vendavo Webinar

June 11, 2015

© 2015 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL

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Today’s Presenters

Colin Carroll Director, Pricing and

Profitability

[email protected]

Alex Hoff VP Business Consulting

[email protected]

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For your pricing project to succeed, collaboration with sales is important

essential.

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Why Collaboration is Key for Pricing Excellence

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An ‘optimized’ price is only optimal if Sales can present it

And defend it!

This pricing initiative is:

Corporate support to increase sales productivity and effectiveness

Not corporate governance and monitoring….

How do sales, pricing and product management collaborate, as opposed to pointing fingers….?

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What Does Collaboration Mean?Combine the best of both worlds

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Sales Pricing

helps translate strategy into tactics for sales execution, via:

Segmentation Pricing tactics Pricing Targets and floors Price Increase guidance Product lifecycle tactics

knows customer, competitor and territory best….

&

Objective: provide answers and suggested actions –put data in the hands of sales where and when

it can do some good

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Why Sales Force Change Programs Often Fall Flat

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The challenges with implementing Pricing Solutions fall into five categories:

Lack of clear linkage between solution and the organization’s key strategic priorities can result in inertia and lack of connection to program objectives

Piecemeal approach to Change Management, with changes not supported or

followed through leads to strained & over-loaded employees

Conflicting interests, leading to many small changes that gradually lead the solution program off course, cooperation between Sales and IT lags

Lack of rigor in benefits tracking and aligning with the business case for solution results in independently operating objectives that fail to work effectively together

Lack of sustainable buy-in and adoption throughout

the organization because organization struggles to sell the change or lacks support from the top

StrategyScope

Behaviors

Adoption Benefits

Pricing projects requires more cross functional collaboration than CRM

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Winning Over the Sales Organization: Common Adoption Challenges

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IT’s desire for a single, common platform works for no-one….

…but giving each BU a unique solution is expensive and untenable

Building a common core and systematically evaluating and delivering ‘variants’ is the only way to balance functionality with sustainability

But it takes knowledge and experience to sell ‘harmonization’ to sales

This is not my process!

What’s in it for me?

Reluctant to change

Difficult to monitor and influence negotiation discussions

Another top down initiative?!

Data quality and availability

Lack of competitive information

Poor data quality undermines credibility of analyst and analysis

This data isn’t right!

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It is Different in Sales

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Change activities must be hyper-focused on tactical behavioral adjustment

Leverage “hot spots”

Sales Managers are key

Tenure Matters

Don’t Jump Right into Training

Culture Matters

Learning & training is different in sales

Sales Adoption Key Considerations

Adoption rates & adherence to new processes varies by career level – distinguish between:• Early career “rookie”• Mid-career• Veteran

• 1st & 2nd level managers are key drivers of change

• Rely on management and leadership, not technology to drive adoption

• Encourage the right behaviors by managing Operating Mechanisms

• Discuss resistanceChange management skills training for sales managers is just as important to ensuring adoption as is training the sales rep

A strong sales training curriculum or time spent in the field, alone, are not effective. Coupled with “in the field” development, the value of sales training can be realized more quickly

Prepare the sales force with strong communications: the vision, the case for change, what’s going to change, “day-in-the life scenarios”, and “WIIFM” benefits

Identify behaviors that must change and incorporate into communications and training; incent and reward the right behavior

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7 BEST PRACTICES FOR SALES & PRICING COLLABORATION

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1. The ‘To-Be’ Process: Getting it RightGetting the new process right is simply the most important thing

Don’ts Do’s

Don’t hard-code today’s broken process

Don’t pave the cow path, but don’t be unrealistic about the process either

Don’t get carried away with what a solution ‘can’ do…simple is effective

Don’t oversell or overpromise

Create simple but compelling vision Involve stakeholders early and often

Manage scope and audiences

Link to core processes, e.g., Territory Review

Get ‘buy in’ and keep it ‘in’

Create a feedback loop

Create a harmonization framework for evaluating BU variants

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2. What’s in it for me? Address the human side…and help people to ‘get on the bus’

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This is the sales force of the future…

Move up the impact curve

Better decisions faster

More efficient use of time

More effective use of time

Negotiation is a core competency: who does it?

Leverage before and after visuals

By role, and by process step

The front line sales manager is a key role for creating change and sustaining performance

Coaching guides and sessions with standard agenda

But peers sustain change

Create and enforce a cadence calendar for tactical events

E.g, upgrade the mix

Messages Tactics

We want your institutional knowledge, not your ‘gut’…..

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3. Segment the AudienceDifferent users have different needs and different concerns

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Design different change strategies for each segment by role & adoption/enthusiasm

Early Adopters

Middle ground

LaggardsRisk

takers

Strategy Communication Ongoing support Care and feeding

Broker / Distributor/

Agent

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4. Communication and First Line SupportMake the change stick

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Make it stick

Adoption?

No. Competency!

Training

Train the Trainer

Learning organization

Online help

Collaboration forums

YouTube!

Push video scenarios to iPad

On-going support and reinforcement

Local champions

Mechanism for ongoing support

On Demand

Link to existing processes

Reference cards

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5. Role-based Training to Satisfy Learners Customize content and delivery methods

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Business Development Sales Management Account Management

Overview / Road-shows and Solution xxx)

for All Sales Employees

30-minute xxx

for Managersxxx/ Simulation

Monthly

Communication

xxx / Roadshows

for Managers

Role-specificContent & Delivery



xxxx / Roadshows

For Sales Associates

Illustrative

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Training Approach

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Design Training Strategy

Delivery Method

Instructional Strategies

Content Outline

DesignAnalysis

What sales end-users

know now and need to know

Design training to bridge knowledge

gaps

Role Workshops

Training Content Development

Create WBT storyboards

Conduct content client reviews

Develop

Develop training materials according

to the design

Logistics Management

Courseware Prep

Train-the-Trainer

Implement

Implement the training and

materials developed

Evaluation:Conduct surveys, interviews, and or observations to evaluate

Evaluate

Evaluate end-users’

training experience

Goals Analysis

Client Role Analysis

Content Analysis

Infrastructure Analysis

Illustrative

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6. Don’t Forget the Feedback LoopNothing kills adoption faster than “too late to provide feedback”

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Go Live = Feedback BeginsRoll-out & Training

Obvious data issues

Slow?!

Process Issues

Why do I have to re-enter….?

Can it do this?

Adoption

Competency

Suggestions

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6. Don’t Forget the Feedback LoopNothing kills adoption faster than “too late to provide feedback”

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Data improvements

Process improvements

Click analysis

Bottlenecks

Speed Data options (competitor, discount reason)

Field types (rich text, drop down)

Suggestions

Types of Feedback

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Metric driven

Wins

Mix upgrades

Price improvement, price increase realization

Share of wallet, volume compliance

Process wins

Quote cycle time

Auto approvals

Fewer manual entries

7. Celebrate Quick Wins and Early Successes to Build Momentum

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What Roles can “Tools”

Play?

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Strategy People

Process Tools

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Putting Technology / Tools in Their Place


• Deal-Specific Target Pricing

– Target, Stretch, Walk-Away, Floor, etc.

Simple, Deal-Specific Guidance

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• Deal-Specific Target Pricing

• Deal-Specific Product Suggestions

– Cross-Sell, Up-Sell, and Down-Sell

Simple, Deal-Specific Guidance

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Supporting Collaboration…Include All the Right People in Deal Collaboration

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• Deal-Specific Pricing Context

– Wins, Losses, Peer-deal Prices (within segment), etc.

Supporting Collaboration…

Deliver The Why and Not Just the What

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• Deal-Specific Competitive Context

– Capture AND Utilize / Recycle Competitive Intelligence



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• Deal-Specific Segment & Customer Context

– Pricing Segment Insights (e.g. Pricing Power, Pricing Risk)



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• Deal-Specific Segment & Customer Context

– Customer Profile & Context



• How important is this customer

to us?

• Does this customer do what

they say they will do?

• Are they just shopping me to

negotiate with my competitor?

• Are we hitting our targets with

this customer?

• What is the latest trend?

• Where is this customer fulfilling

it’s commitments?

• Where are they not?

• Where might I be exposed?

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Embed new pricing capabilities and best-practices within a familiar environment to

increase competency and minimize adoption risk / change management

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Link Pricing Capabilities to Existing Core

Processes they Have Today


The Sales Team will be far more likely to embrace the

technology if they can use it wherever/however they want…

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Keep it Simple…

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Collaborating with Sales: Best Practices for Developing ... · 6/11/2015 · effective. Coupled with “in the field” development, the value of sales training can be realized more