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Sales & Marketing Revitalizing the Value Proposition, Keith O'Brien, Frost & Sullivan, Jim Kizielewicz, Kronos

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  • 1. Marketing and Sales Alignment conference September 20–21, 2011 Sales & Marketing:Revitalizing the Value Proposition Keith O’BRien JiM Kizielewicz Vice President, Global Research, Senior Vice President and Growth Team Membership™ Chief Marketing Officer Frost & Sullivan Kronos incorporated Keith.OBrien@frost.com james.kizielewicz@kronos.com
  • 2. The Growth Team Membership™ (GTM) GtM is a subscription program GtM provides best practices, events, and that supports executives within the services that enable executives to address functions that report to the ceO challenges within their companies ceO’s Growth team™ GtM: creating client Value GtM’s case-based best practices help executives: R&D/ Innovation Corporate Sales Strategy Leadership Speed the design and implementation of initiatives by not reinventing the wheel Marketing Marketing CEO Corporate Development Save money and reduce risk by avoiding mistakes made by other companies Investors/ Market Accelerate problem-solving with a cross-industry Finance Research perspective Competitive Intelligence improve their functions’ and companies’ performance and productivityThe contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research. 2
  • 3. Profiled Best Practice Company Firm: Kronos industry: Software Services and Applications headquarters: chelmsford, Massachusetts, United States Geographic Global Footprint: Ownership: Private Revenue (2010): ~$750 million USDThe contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research. 3
  • 4. Growth Challenge Problem: Slowing product growth forces Kronos’ marketing and sales organizations to create and deliver a differentiated value proposition.The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research. 4
  • 5. Kronos’ marketing leadership works with Sales to revitalize the value proposition andcreate differentiated sales messages creating and embedding a new Value Proposition Revisit Existing Value Create New Value Develop Sales Drive Sales Force Proposition Proposition Messages Adoption Objective Objective Objective Objective conduct a baseline assessment Develop differentiated value translate the value proposition Achieve 100% adoption of new of the current value proposition into sales force messaging messaging by sales force proposition’s strengths and weaknesses Activities Activities Activities Activities • Perform market assessment • conduct Affinity • conduct Power Messaging® • conduct Power Messaging® • conduct brand positioning Diagramming exercise to workshop with sales and workshops with entire workshop identify customers’ critical marketing leadership to sales force • Run customer/prospect Business issues (cBis) update messaging and • establish Sales and focus groups • Pinpoint how Kronos techniques Marketing leadership uniquely addresses these councils by vertical market cBis and translate into a value proposition Output Output Output Output • Market assessment • critical Business • new messaging techniques • Sales force adoption of • Focus group findings issues (cBis) and key • Portfolio of customizable customizable messages and • Governing Brand idea (GBi) differentiators messages techniques • new value proposition • industry-specific Sales • Foundational Message Guide and Marketing leadership (FMG) councils to drive ongoing adoptionThe contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research. 5
  • 6. Pressure-test market understanding and value proposition Market Assessment Brand Positioning workshop Participants Situation Senior sales and marketing executives (one-day workshop) • Management believed Kronos was the market leader, but the company’s product Objectives revenue growth was flat, despite category • Audit existing marketing messages and growth collateral • commissioned a third-party assessment of • Develop preliminary Governing Brand ideas the workforce management (wFM) market (GBis) to be tested in focus groups Objective Preliminary Governing capture the current state of the workforce management category. Brand ideas (GBi) Findings “The experience to know it’s complex. The 3two customer segments exist: expertise to simplify it.” - ease-of-use buyers who value straightforward implementation with low cost of ownership need to revise brand positioning “Workforce (50%) management doesn’t to appeal to both - Functionality users who value advanced have to be so hard.” segments features (50%) Kronos is the market leader, but growing slower “Simple solutions that than the market work hard.” Kronos lacks a compelling category positioningThe contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research. 6
  • 7. Conduct focus groups to gather insights on the most effective brand positioning Focus Groups Objective: Validate Market Objective: Assess Kronos’ Objective: identify the most Assessment findings competitive standing convincing GBis Sample Questions Sample Questions Sample Questions • what are your top-three needs • what is Kronos’ personality? • which positioning statement do addressed by a wFM solution? • For what type of solution would you find most compelling? • On a scale of 1 to 5, how you call ADP? • would the statement entice you to important is fast payback to you? consider Kronos? Results • Awareness and consideration rates Results are lower than expected • Users are frustrated with the Results complexity of wFM solutions • existing value proposition around • “Workforce management doesn’t time and attendance benefits is have to be so hard” is an appealing • Prospects who value ease-of-use undifferentiated brand position: wFM solutions are currently underserved • Perception of market strengths - the statement defines the category does not align with customer/ and appeals equally to functionality prospect perceptions and ease-of-use buyers Action Steps Action Steps Action Steps • Simplify the customer experience by • Develop a differentiated value • leverage the brand positioning in modifying the user interface proposition marketing • expand brand positioning to • work with sales leadership to • create internal documents and accommodate ease of use and high- embed new value proposition with perform training to align employees functionality customer segments the sales force on the new positioningThe contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research. 7
  • 8. Develop a customer-focused, differentiated value proposition Developing the Value PropositionUsing the Governing Brand idea as the foundation, Marketing leaders Marketing leaders identify howemploy the Affinity Diagram to identify three critical customer needs Kronos can uniquely addressthat should be addressed by a workforce management (wFM) solution. critical Business issues. Create Affinity Diagram Identify Critical Develop Kronos’ Key Articulate Value Business Issues (CBIs) Differentiators Proposition cBis are core customer Kronos is the global Workforce management doesnt have to be so hard! needs that can be addressed by workforce management 33 Kronos provides complete automation leader in workforce management solutions. Improve 33 Kronos delivers high- quality information solutions that enable organizations to: • control labor costs Control labor costs workforce productivity 33 Kronos is easy to own • Minimize compliance riskcMO VP, enterprise • improve workforce VP, corporate Marketing Marketing productivity Minimize compliance risk The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research. 8
  • 9. Create a Foundational Messaging Guide to provide a companywide reference pointfor the new value proposition Foundational Messaging Guide (FMG) The FMG: An Overview • the FMG is designed to align all employees on Kronos’ value FMG’s ability to proposition and is updated regularly FMG Objectives attain objective • the FMG demonstrates how Kronos addresses the two core questions listed below create common understanding of the value proposition  Drive alignment on role of wFM, core customer needs, and Kronos’ solutions  why do customers Foundational Messaging Guide Supply the building blocks for differentiated sales messages Provide sales messages to  purchase workforce management? contents why workforce Management? . . .3 address critical business issues Develop selling techniques to be Answer: the three critical Business issues (cBis) cBi #1 controlling labor costs . cBi #2 Minimizing compliance Risk . . . . . . . . . . . . . . .4 .7 used with prospects cBi #3 improving workforce Productivity. . . . . . . . . .9 mm ary In Su Differentiator #1: why purchase a Kronos complete Automation . . . . . . . 14 workforce management Differentiator #2: solution? high-Quality information . . . . . 17 the FMG captures the value proposition Differentiator #3: in a written format; however, it does Answer: Kronos’ key easy to Own . . . . . . . . . . . . . 18 not enable Sales to articulate the value differentiators around each proposition verbally. cBiThe contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research. 9
  • 10. Translate the value proposition into effective sales messaging Sales Force Adoption challenges Sales Messaging techniques Messaging Techniques Bringing differentiators to life through customer messages Stories 3D Message Number Big with Props Attributes Plays Picture Contrast the sales force needs to believe in the messages leverages customer “not invented here” syndrome stories Appeals to multiple learning Power Messaging® workshop styles (visual, auditory, kinesthetic) Workshop Participants Marketing leadership, Sales leadership, Key sales representatives, customers can and Product Management relate to the message Purpose • translate differentiators into messages and delivery impact is easily techniques for Sales understood • Build sales and marketing consensus on messages and and memorable techniques Critical Inputs • why customers buy (cBis) and why they buy from Kronos (differentiators) • Preliminary success stories that demonstrate how Kronos uniquely meets customer needsThe contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research. 10
  • 11. Develop easy-to-customize messaging techniques how to create a Story with contrast Retail & Hospitality Customer Example Squeezing More Out of Schedulingthe story Jamba Juice Results Achievedmust berelevant • Quick-serve “The $19.7M decrease in labor cost was highlight Business restaurant primarily attributed to optimization of labor pertinent • Smoothies scheduling, leading to more efficient labor results management.” • 730 locations – 2010 Annual Report company • Operates in 47 Size • 2008 labor = 36% of sales states it’s a story, • 2009 labor = 34% of sales so limit • timekeeping, data Key forecasting, Products scheduling Before Kronos After Kronos • Manual forecasting and scheduling • Automated scheduling resulting in: • Accurate baseline forecasts - Gaps in coverage • Quick reaction to weather conditions: - Overstaffing Make the - Overcast and cold—call people off • inability to react to changing customeremphasize - Sunny and hot—staff up conditions, especially the weather the herothe benefits • companywide scheduling and • no visibility into store operations regulatory complianceof choosingKronosThe contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research. 11
  • 12. Drive sales force adoption by directly addressing barriers to adoption Power Messaging® workshop with Kronos Sales Force Workshop Secure Buy-In on the Create Ownership Put the Techniques Overview CBIs and Differentiators of the Techniques into PracticeAttendees:Sales force (450 Adoption Barrier: Adoption Barrier: Adoption Barrier:participants, ingroups of 25–30) Skepticism Ownership ConfidenceDuration:two Days Overcoming the Barrier: Overcoming the Barrier: Overcoming the Barrier:Pre-work: the facilitator leads a group the facilitator helps participants the facilitator leads role-play • complete exercise requiring participants tailor their own success sessions to practice message Power to “wrestle” with the new stories for the new messaging delivery and drive behavior Messaging® messaging: techniques by: change: elearning module • Discuss the cBis and • encouraging participants • Participants present their differentiators candidly and to use multiple messaging stories using the new • Bring compare them to existing techniques and select the techniques and receive peer examples of messages ones they prefer and facilitator advice customer challenges • Prove that the differentiators • Participants build their successfully are unique compared to confidence in the messages addressed competitors’ offerings and techniques by Kronos’ • emphasize positive differentiators engagement with the differentiators The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research. 12
  • 13. Establish Sales and Marketing Leadership Councils to drive ongoing application of the value propositionSales and Marketing Sales and Marketing leadership councilleadership council charter Service & Retail & Purpose Manufacturing healthcare Public Sector Distribution hospitality • Run operations reviews of each vertical market Marketing Sales Product Services • Build and maintain trust and Attendees: Attendees: Attendees: Attendees: transparency Director of Marketing; Area VP, Sales; Director Director of Product Director of Services Responsibilities VP, enterprise Marketing of Sales Management Management • Monitor the state of the business Value Proposition Value Proposition Value Proposition Value Proposition Support: Support: Support: Support: • examine sales • Develop Stories with • conduct follow-on • Align the product • train services staff and marketing contrast for Sales training roadmap effectiveness • ensure the customer • Provide presentation • Provide customer • ensure development experience reflects Meeting Schedule templates success stories to plans address the promised value Monthly for four hours marketing customer issues Example: Example: Example: Example: Spot-check sales Video mock sales Use customer review certify services staff so presentations for presentations using new panels to confirm they communicate the consistency with brand messaging techniques innovations reflect the same value proposition messaging and provide feedback voice of the customer to customers The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research. 13
  • 14. Business Results Percentage of Sales Force impact of Power Messaging® Using Power Messaging® techniques yltne techniques on closing Business ts isnoC (Survey of Kronos Sales Force) yreV (Survey of Kronos Sales Force) yltne Somewhat Consistently Consistently tsisno C Some Impact Very yltne tsisno C tah wem 4% 8% oS Consistently Significant Impact 16% Somewhat Consistently Consistently 21% Very Consistently 71% High Impact 80% Annual Revenue and eBitA* $820 $250 Revenue $800 eBitA $780 $200 $760 $740 $150 Revenue $720 eBitA ($ Millions) $700 ($ Millions) $100 $680 $660 $640 $50 $620 $600 $0 * EBITA is earnings before interest, FY 2008 FY 2009 FY 2010 FY 2011 taxation, and amortization.The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. projected Growth Team Membership™ research. 14
  • 15. Register for a webinar with Charles DeWitt (Kronos Inc.) and Tim Riesterer(Corporate Visions) Ask the Thought Leader Webinar Sales & Marketing: Revitalizing the Value Proposition tuesday, 27 September 2011 11:00 et (Duration: One hour) ReGiSteR for Free at http://www.frost.com/Atl charles Dewitt tim Riesterer the webcast will feature: • A best practice case study that shows how Kronos’ Marketing and Sales developed and delivered effectively a differentiated value proposition • Key lessons learned and Q&A with charles Dewitt, VP—enterprise Marketing and tim Riesterer, cMOThe contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved. Growth Team Membership™ research. 15