Transactional and Consultative Selling

Ali Sherlock & Philip Bourne

Thursday 8th November, 2012

Objectives

In this session we’ll explore how to balance the

need for high value ticket sales (Consultative)

versus the requirement to fill schedule classes

with run rate (transactional) business. We’ll

discuss the challenges associated with deciding

on who sells, how they sell and what typical sales

strategies you can consider implementing.

So what do we mean by consultative versus transactional selling ?

Summary Comments

Transactional

Simple, short-term & customer typically knows what they want

Minimal product knowledge required on sales side

Buying criteria usually price or ease of acquisition

Customer knows what they want

Could be off the shelf or customised

Consultative

More complex long-term process

Involves collaboration of both buyer and seller

Seller must develop an understanding of the customer’s business, industry, and needs

Craft a solution to help the customer achieve their objectives.

‘Sales people are not needed to quote prices. They are the bridge between the

selling price and the perception of value provided to earn the sale ‘

Does it make any difference to distinguish and why?

Summary Comments Transactional

• Buyers focused on today’s transaction and give minimal thought to future purchases.

• Sales activity based on “price seller” who highlights costs; “content seller” who emphasizes features, often without linking them to benefits for the customer; “professional visitor” who wins with personality.

• Sales activity volume based, low ticket value from $3K to $20K

Consultative • Relationship based sale comprising different types of approach:

– Looks deeply at customer’s critical needs and customizes offerings

– Applies in-depth industry expertise to meet those needs

– Has deep insight into the customer’s business and industry need

– Uncovers and meets needs, and provides advice and assistance

• Sales activity account management based, high ticket $50K+

• Chance of repeat business is higher

How would you decide to organise your GTM strategy at your company?

Depends on what GTM model exists ?

• Enterprise Account Managers

• Product sales specialists

• Territory Account Managers

• Inside sales

• Professional Services

• Education sales

• Education Customer Care

• Sales Engineers

• Partner Account Managers

• Resellers

• Distributors

• Alliance Partners

• Education Partners

• Training Resellers

• Service Partners

• VARs

Marketing

Direct Channels Indirect Channels

Take a clear

view on the role

of marketing

Training Passport or equivalent

• Enterprise Sales/Trng.sales

• Consultative Sale

• Executive Target

• Large Enterprise

Training Courses

• Inside Sales Reps/Trng.sales

• Transactional Sale

• Technical Target

• Good for Mid-market/SMB

E-Learning

• No Touch/Inside Sales / SMB

• Easy Purchase Decision

• Requires no/little sales involvement

• Suitable for all markets

Each offering type targeted to specific direct sales profile

And what offerings makes sense to position

So what do you see or have been the key challenges for implementing your

GTM Strategy?

Key Challenges

• Value of training

• Extended sales cycle

• Compensation plan

• Establishing a committed relationship

• Commitment at senior and executive management

• Product quota attainment shortfalls ( priority switched to product )

How do you motivate your sales teams? • What incentives ? • How do you drive them ? • How do you show what opportunities

are out there ? • What value selling education

provides ?

What strategies / tactics do you consider a sales team should take?

Summary Comments

Transactional

• Promoting training as the one item you do not take off an order.

Consultative

• Making sure that Customers have thought about training.

• Engaging Training at inception of Sales cycle so that budget is placed on the amount of training required.

How do you manage and control the sales cycle?

Summary Comments

Transactional

• Make sure that Sales and Marketing are aware of who you are and what you offer.

• Issue Sales with a key list of offerings

• Ensure that they have details of costs for standard courses

• Reaching out to them for any additional need

Consultative

• Placing a Needs Analysis on every order as standard

• Meeting with Sales staff at quarterly kick off meetings

Have spent time this morning discussing pro’s and con’s of

Transactional versus Consultative selling – trust you found it

informative