© 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
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Today’s Presenters
Colin Carroll Director, Pricing and
Profitability
Alex Hoff VP Business Consulting
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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
Role-specificContent & Delivery
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
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• 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 Pricing Context
• Deal-Specific Competitive Context
– Capture AND Utilize / Recycle Competitive Intelligence
Supporting Collaboration…
Deliver The Why and Not Just the What
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• Deal-Specific Pricing Context
• Deal-Specific Competitive Context
• Deal-Specific Segment & Customer Context
– Pricing Segment Insights (e.g. Pricing Power, Pricing Risk)
Supporting Collaboration…
Deliver The Why and Not Just the What
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• Deal-Specific Pricing Context
• Deal-Specific Competitive Context
• Deal-Specific Segment & Customer Context
– Customer Profile & Context
Supporting Collaboration…
Deliver The Why and Not Just the What
• 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
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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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SAP Manufacturing Industries Forum 2015Lombard, IL | June 23-27
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