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COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Engineering Value In the Sales Cycle WEBINAR featuring Jim Ninivaggi Service Director, SiriusDecisions Tim Braman VP, Revegy

Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

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Customers want to work with vendors that understand their unique problems. They want solutions and value from their partnerships, and look to a good solution provider that can deliver this value from start to finish. Yet, all too often sales reps fail to discover what is important to each stakeholder, resulting in deep discounting or no-decisions. This webinar with SiriusDecisions’ Jim Ninivaggi, will explore practical ways to identify key stakeholders and business drivers, and will illustrate ways to map the value of your solutions to build trust with your clients throughout the sales cycle.

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Page 1: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL

Engineering Value In the Sales CycleWEBINAR

featuring

Jim Ninivaggi

Service Director, SiriusDecisions

Tim Braman

VP, Revegy

Page 2: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

© 2014 SiriusDecisions. All Rights Reserved 2

You Win Some. You Luge Some.

To have velocity at the finish…

… you need to build it from the start.

Page 3: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

SiriusPerspective: If you have not engineered value throughout the sales process, you will be forced to sell on price at the end.

Maybe It’s Not A Problem Closing

My reps need closing skills

Page 4: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

© 2014 SiriusDecisions. All Rights Reserved 4

Why to sell value

P&L

Reduce Sales

Expense 5%

Increase Sales

Volume 5%

Decrease

Discount 5%

Sales 100.0 100.0 105.0 105.0

Cost of Goods 60.0 60.0 63.0 60.0

Gross Profit 40.0 40.0 42.0 45.0

Fixed Costs 13.0 13.0 13.0 13.0

General & Admin.

11.0 11.0 11.0 11.0

Sales Expenses 6.0 5.7 6.0 6.0

Profit Before Tax 10.0 10.3 12.0 15.0

Profit Increase

3.0% 20.0% 50.0%Harvard Business School Publication #9-192-09

Page 5: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

© 2014 SiriusDecisions. All Rights Reserved 5

Discussion Overview

•Key Issues We See:• Sales organizations efforts in transforming their sales

organizations are stalling• Selling value needs to happen throughout the buyer’s journey• In absence of value, reps are forced to negotiate on price

•What You Will Walk Away With:• An understanding of the changing buyer’s journey• A road map on the changing conversations your reps need to

have to engineer value • How to leverage technology to enable this change

Page 6: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

The Changing Buyer’s Journey

Page 7: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

© 2014 SiriusDecisions. All Rights Reserved 7

More Than Ever: Understand the Buying Process

Solution Vendor SelectionEducation

Loosening of the Status

Quo

Committing to

Change

Exploring Possible Solutions

Committing to a

Solution

Justifying the

Decision

Making the

Selection

Page 8: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

SiriusPerspective: By the time a rep first meets with a buyer, need may be preordained and a solution preconceived.

Preordained Need/Preconceived Solution

8

While most marketing and sales organizations

have recognized this seismic shift, many have done little to

adjust.

Need and

SolutionWeb sites Blogs

Page 9: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

Changing the Conversations Sellers are Having With Their Buyers

Page 10: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

SiriusPerspective: Moving from product to solutions will require a different set of competencies.

The Product to Solution Evolution

PRODUCT SOLUTION

Page 11: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

© 2014 SiriusDecisions. All Rights Reserved 11

Most Prominent Inhibitors to Sales Achieving Quota

11

Insufficient Leads

Poor Sales Skills

Too Many Products to Know

Information Gap (Industry, Solution, Etc.)

Inability to Communicate Value Messages

26.0%

24.3%

21.4%

16.0%

13.3%

Page 12: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

SiriusPerspective: Relationships don’t matter to CXOs as much as company and industry insight.

What Does a CXO Want From A Salesperson?

12

4x

Cultivate a personal relationship with me

2XDemonstrate deep expertise about my companyShow they care

about my success

Share insightsabout my industry

Page 13: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

© 2014 SiriusDecisions. All Rights Reserved 13

We Asked Salespeople What’s Changed?

1. Buyers are more informed• Access to Content• Peer Network• Access to Data

2.Buyers need more (and earlier) ROI• Reason to Change• Peer Examples• Executive Support

3.Buyers are less likely to engage earlier• Self Service• Network Introduction• Events Not Working

Page 14: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

© 2014 SiriusDecisions. All Rights Reserved 14

Diametrically Opposed Forces

14

Transactional

Buyers

Reps Told to Sell

Solutions

Page 15: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

© 2014 SiriusDecisions. All Rights Reserved 16

Three Key Roles Salespeople Must Play

• Knowledge of products, customers, industry issues, financial acumen, best practices, etc.

• Critical early in process

Domain Expert

• Aligning internal resources with customer resources efficiently and effectively

• Critical in middle of process

Strategic Orchestrato

r• Demonstrate that potential risks are

outweighed by potential rewards, using proof sources and quantification when needed

• Critical later in the process

Risk Alleviator

Page 16: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

Organizational Requirements

Page 17: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

© 2014 SiriusDecisions. All Rights Reserved 18

Observable Outcomes

Customer Buying CycleExplore Options/Refine Requirements

Loosening of Status Quo

Needs Recognize/Commitment to Change

Evaluate OptionsRequirements Defined

Implement & Evaluate

Justification of Decision/Validate

Negotiate & Sign Contract

• Conducts thorough Discovery analysis, Monetizes problem of status quo

• Content and tools

• Solution shipped to customer

• Develop and maintain relations with decision makers and influencers

• Content and tools

• Requests meeting with customer

• Content and tools

• Shares business case for change away from status quo

• Content and tools

• Tailored Solution Demo provided to all necessary Stakeholders, awaiting decision from customer that we are the preferred choice

• Content and tools

• Final proposal and terms provided to Key Stakeholders

• Content and tools

• Contract prepared & delivered to customer

• Value Actualization• Contract delivered

for processing -Finalize any requirements for processing

• Content and tools

1. Needs Exploration

2. Needs Developed/Identified/Agreed

3. Solution Development

4. Solution Accepted

5. Final Terms & Conditions

6. Contract Submitted

7. Value Actualized

Sales Process

Sales Stages

5% 10% 25% 50% 75% 90% 100%

Observable Outcomee.g. web activity

Observable Outcomee.g. email confirmation of needs/scope and timeframe

Observable Outcomee.g. Solution Map document agreed upon

Observable Outcomee.g. email confirmation that solutions is in alignment

Observable Outcomee.g. Access to economic decision makerhas occurred

Observable Outcomee.g. Contract signed

Page 18: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

© 2014 SiriusDecisions. All Rights Reserved 19

The 7 Points where Value Leaks

Customer Buying CycleExplore Options/Refine Requirements

Loosening of Status Quo

Needs Recognize/Commitment to Change

Evaluate OptionsRequirements Defined

Implement & Evaluate

Justification of Decision/Validate

Negotiate & Sign Contract

• Conducts thorough Discovery analysis, Monetizes problem of status quo

• Content and tools

• Solution shipped to customer

• Develop and maintain relations with decision makers and influencers

• Content and tools

• Requests meeting with customer

• Content and tools

• Shares business case for change away from status quo

• Content and tools

• Tailored Solution Demo provided to all necessary Stakeholders, awaiting decision from customer that we are the preferred choice

• Content and tools

• Final proposal and terms provided to Key Stakeholders

• Content and tools

• Contract prepared & delivered to customer

• Value Actualization• Contract delivered

for processing -Finalize any requirements for processing

• Content and tools

1. Needs Exploration

2. Needs Developed/Identified/Agreed

3. Solution Development

4. Solution Accepted

5. Final Terms & Conditions

6. Contract Submitted

7. Value Actualized

Sales Process

Sales Stages

5% 10% 25% 50% 75% 90% 100%

Risk:• Low value business caseEffective Practice:• Provocation/Insight into value

achieved by peers

Risk:• Volunteering to discount earlyEffective Practice:• Lead with Value/ROI justification

Risk:• “Market Price” too lowEffective Practice:• Capture Additional value areas

from Key Stakeholder Discovery

Risk:• Your solution looks like everyone

else’sEffective Practice:• Deep Discovery to highlight your

Unique Value in Customers terms

Risk:• C-Suite PushbackEffective Practice:• Link ROI to Customers’

Strategy/Risks

Risk:• Procurement ‘Your Price is too

high!”• Nibbled to death by RabbitsEffective Practice:• Negotiate once and with a plan

Risk:• Next deal wants the ”special”

customer priceEffective Practice:• Measure the actual value

delivered

Page 19: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

© 2014 SiriusDecisions. All Rights Reserved 20

Guide your sales teams through the process

Page 20: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

© 2014 SiriusDecisions. All Rights Reserved 21

Mapping Sales Productivity

21

CoreSellingActivities

Non-CoreActivities

Internal Direct Engagement

(expense reports, travel)

BLACK HOLE

(customer service calls)

RELATIONSHIP

(research, proposals)

ENABLEMENT

(prospecting, sales calls)

ENGAGEMENT

Page 21: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

© 2014 SiriusDecisions. All Rights Reserved 23

Buyer Need DefinitionBuild Out Conversation Templates

.

Page 22: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

© 2014 SiriusDecisions. All Rights Reserved 24

Buyer Need Definition

Initiatives

Challenges

Job Role

Buying Role

Common Titles

SiriusDecisions Persona Template

Page 23: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

© 2014 SiriusDecisions. All Rights Reserved 25

Create the Persona Map in Salesforce.com

25

Page 24: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

© 2014 SiriusDecisions. All Rights Reserved 27

Prepare Your Reps For Every Conversation

Page 25: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

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Value-Selling Best Practices

Page 26: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

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Effective Practice #1: Know Your Ideal Customer Profile

Page 27: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

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Lead Score

Pro

spect

Fit

Effective Practice #1: Know Your Ideal Customer Profile

Page 28: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

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Effective Practice #2: Don’t Chase the ‘Unwinnable Deal’

Page 29: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

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Effective Practice #2: Don’t Chase the ‘Unwinnable Deal’

Page 30: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

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Customer Buying CycleExplore Options/Refine Requirements

Loosening of Status Quo

Needs Recognize/Commitment to Change

Evaluate OptionsRequirements Defined

Implement & EvaluateJustification of Decision/Validate

Negotiate & Sign Contract

Effective Practice 3: Coach the Deal

Right Deal?

Do we understandthe Business Need?

1. Needs Exploration

2. Needs Developed/Identified/Agreed

3. Solution Development

4. Solution Accepted

5. Final Terms & Conditions

6. Contract Submitted

7. Value Actualized

Sales Process

Does the Business NeedJustify the investment?

What is our Give/GetNegotiating Plan?

Page 31: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

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Effective Practice 3: Coach the Deal

Page 32: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

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Effective Practice 4: Does each stakeholder see the value?

✔ ✔

Page 33: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

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Page 34: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

© 2014 SiriusDecisions. All Rights Reserved 37

Key Take Aways

•Reps must look to build the “case for value” throughout the sales cycle.

•Be sure to provide the infrastructure and support your reps need.

•Ultimately, every sales comes down to a series of conversations.

Page 35: Engineering Value in the Sales Cycle Featuring Analyst SiriusDecisions

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Jim NinivaggiService DirectorJim.ninivaggi@siriusdecisions.comSiriusDecisionswww.siriusdecisions.com

Tim BramanVP Corporate [email protected]

Questions?