Eyes On Sales Selling Value Against Price


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Eyes On Sales Selling Value Against Price

  1. 1. Kenneth Lam
  2. 2. Price Objection … Price Sensitivity Your PRICE is too HIGH ! We are beaten on PRICE !
  3. 3. What if you are the SELLER BUYER Cannot match on price 55% - 60% 40% - 50% & not flexible on contract terms Other reason 45% - 40% 60% - 50% perhaps such as - 1] you didn't manage situation well I don’t think you 2] you are not sure why you lost know your solution WHAT DO well; or You didn’t 3] non-business related needs THESE MEAN? convince me 4] no body chemistry enough; or You talk only business
  4. 4. VALUE of TIME- the value of ONE year! Close your eyes and think about it for 1 minute !!!!! ….. ask a sales executive who MISSED his budget
  5. 5. WHO actually Controls our PRICE?
  6. 6. Our Price is what they are going to pay … We !!! We DO. We do.
  7. 7. What do you see inside this white rectangle?
  8. 8. Do you see anything else here?
  9. 9. People will Pay for VALUE and BRAND We give Value. We deliver a Brand.
  10. 10. Why should someone do business with You?
  11. 11. Can we achieve a Win / Win situation for us all ? Deliver your value-chain
  12. 12. Value Creation In the Eyes of: Customers “Best Place to Buy from” “Most Reliable Place to Buy from”
  13. 13. Customer knows PRICE is only one factor
  14. 14. Premium Brand carries Premium Value Good sales pro’s always welcome the price difference.
  15. 15. Business cannot be handled via just phone or emails
  16. 16. Building Value and The Sale DURING It is not just money; it’s also Dependency relationship & Trust
  17. 17. Building Value Before The Sale
  18. 18. Building Value Before The Sale Demonstrates our interest in serving their needs.
  19. 19. Building Value During The Sale LISTEN to your customer. Don’t leave your meeting or your presentation without UNCOVER an acceptable what the response or commitment from customer them toward the next is not telling you. course of action. Close the plan for them!
  20. 20. Building Value During The Sale Knowledgeable Professional with Integrity ? Never ever bad-mouth competitors; just say we don’t talk about others
  21. 21. Building Value During The Sale Over-deliver is better than over-promise.
  22. 22. Building Value During The Sale
  23. 23. Building Value During The Sale Customer Excellence and satisfaction bring Corporate Excellence and health that build Personal Excellence and stability.
  24. 24. Building Value During The Sale Write the List down for them to see ! Gross Profit = measure of Value a company creates for customers Give adequate facts to support our Price premiums.
  25. 25. Building Value After The Sale YOU are the Value; you are the delivery.
  26. 26. Building Value After The Sale Note that problems bring unsolved Opportunities.
  27. 27. Building Value After The Sale You are the Value in their maze.
  28. 28. BRAND Building [With] Your Customer Values build branding; Brand carries value and class. Price is not the bottom–line. Your Value is !
  29. 29. Building Our Value Statement
  30. 30. Delivering Value & Building Relationship VaR can also mean Value at Risk! Do not let this happen
  31. 31. Delivering Value & Building Relationship Value and Relationship = C1 x C x C x C
  32. 32. Delivering Value & Building Relationship Value and Relationship = C1 x C2 x C x C
  33. 33. Delivering Value & Building Relationship Value and Relationship = C x C x C3 x C
  34. 34. Delivering Value & Building Relationship Value and Relationship = C x C x C x C4
  36. 36. The VALUE of TIME -- the value of each day! Close your eyes and think hard about it for 1 minute. ……… ask yourself, now sitting in this room!
  37. 37. YES, We Beat Competition YOUR YOU YOUR PARTNER COMPETITION It Takes A Lot Of Work To Beat You.
  38. 38. Key Account Management (KAM) means the systematic analysis, selection and management of actual and potential strategically important customers to achieve comparative competitive advantage for both parties concerned.
  39. 39. Customer Development Account Management has become a crucial issue for many companies. Key account management is also known as strategic account management. Driven by the Pareto belief of 80/20 rule – 80% of current/potential revenue comes from 20% of customers; These 20% customers must be treated differently or require more of our attention from other customers.
  40. 40. We strive to answer these questions Should we have a key account program? How many customers should we include in the key account program? How we decide which customers to include in the key account program? Should all of these key accounts have equivalent status? What value should a key account program offer our customers?
  41. 41. Or these questions How should we organize to address key accounts? How should key account management interface with the sales force and other organizational units? How should we recruit, select, train and retain our key account mangers? How should we compensate our key account managers? What is the appropriate role for key account teams? What is the best way to develop strategy for our individual key accounts? What systems and process should we put in place to manage our key accounts?
  42. 42. Account Management Expand Share Current Expand Business Current Streams Business Future Today Good Account Management is Your Bridge to Growth and Expansion
  43. 43. Account Management is a Strategy Execution KEY ACCOUNT STRATEGY Bridge Steps Opportunities & Threats Planning Assumptions Key account fundamentals Situational Analysis Key Account Key account analysis Insight Fulfillment order process Customer value satisfaction Performance & Objectives Competitive Strategy & Action Plans Market Supply SWOT Analysis Insight Company-to-customer support Insight Resources & Outsourcing
  44. 44. Best Practice Account Management Implementation KEY ACCOUNT STRATEGY Execution Execution Relationship Managing Customization Pricing Strap Development Supply Chain Operational Delivery Execution Performance Monitoring & Adaptive Change
  45. 45. Identify accounts you can grow relationship with Account Management Process Steps to optimize our ability to secure and grow business profitability, and to achieve total customer satisfaction …
  46. 46. Like all good models it works on a Your customers number of Our company levels Understand & analyse Operational Plan & realise KAM Integrate & organise Corporate KAM Align corporate strategy, structure & culture
  47. 47. Operational KAM for Account Manager and team PEOPLE MANAGEMENT SOLUTIONS Understand the competence and Understand how we Understand this make-up of the team that will be are working with this customer’s needed for this account. Bring team account today. Agree current and how the team should together and ensure they are equipped be organised sell potential usage and communicate. and competitive Establish clear situation. Design processes, protocols and deliver the and guidelines. right solutions in the right way MEASUREMENT Understand the key STRATEGIES performance indicators Understand this for this account. customer’s Ensure they are business and set measured and the multi-level results used to objectives and strengthen relationship an overall strategy
  48. 48. KAM for senior management 3. PEOPLE 2. SOLUTIONS • How can we ensure we are giving our 4. MANAGEMENT • How do we integrate key account Managers the • What is the best way the special development they need? for us to manage our requirements we • What are the broader people issues key Account make to our K.A.s into related to the challenges of KAM?  managers? our standard product recruitment, training, incentives, • What are the or solution career planning etc.. organizational and development. process implications • To what extent are we of this KAM? ready to adjust and widen our offerings and solutions to key account’s requests? 5. MEASUREMENT • How do we gather 1. STRATEGIES our key account • What part should information quickly the Key Account and accurately? play in our overall • What does top strategy? management need • What makes this to know in order to customer a key achieve excellence account? in strategic account management?
  49. 49. Culture “The way we do things round here” People Finance Strategies Activities Structure Markets Relationship
  50. 50.  Understand the products and services that are being offered to the customer  Analyse the customer’s requirements  Analyse the competitive strengths of your products and services  Identify possible improvements  Identify possible future requirements that the customer might have in the future (possibly not yet recognised by the customer themselves)
  51. 51. Understanding customer better with Account Management solution WHAT Platinum Gold Silver Lead Loyalty High Medium Medium Low Importance Significant High Moderate Low Strong, Good, Weak or Position Strong Offensive Defensive Unknown Potential Very High High Moderate Explore Organization Opportunity/ Penetration Opportunity Low Proactive Reactive
  52. 52. Action: Tier your accounts  Platinum - Top 20 customers Customers Vertical  Gold – Next top 30 customers  Silver – Next top 50 customers  Lead -- Explore or leave Non Vertical Customers
  53. 53.  Require High Management Focus  Develop Corporate Level relationships  Acquisition and Fulfillment Team Based Account Management Your Long Term Growth Producers
  54. 54. Form core and wider account team. Implement and review Negotiate resources required from business Review once account objectives and strategy agreed Establish initial core team Understand and analyse current team
  55. 55.  Maximum Next 30 Customers  Moderate Management Focus  Acquisition and Fulfillment Team Account Management Build Gold Customers to Platinum
  56. 56.  Silver – Next 50 Customers maximum  Low Management concentration  Small acquisition and fulfillment team account management Target Silver for Future Gold  Lead / Dormant/Explore  Very low sales or management focus  Order taking accounts
  57. 57.  For Each Account Manager:  No more than 25 accounts total  No more than 5 Platinum  20 Combined total Platinum / Gold / Silver
  58. 58.  Each Account should have  Customer Organization Chart  Quality and quantity of targeted Customer Calls to build relationships at multiple customer levels  Each Customer Call should include  Who  Executive/Management/Technical  What  Message of Value Proposition  When  Timing and Sequence of opportunity  Why  Linkage to Trane Business Solutions and Customer Relationship Strategies
  59. 59. Account Maturity Path guide Requirements: -Full Account Team Present -Completed Account Planner Three Step Process  Account overview lead by the account team leader  Clarifying Questions  Strengthening the Plan
  60. 60. Account Review Lead by the Account Team Manager  Overview of Account Planner 30 Minutes  Customer Information Section  Review Customer Organization Chart  Overview of Customer Profile Section  Account Goals and Programs  Strategies and Tactics  Value Statement  Competitive Overview
  61. 61. Clarifying Questions Lead by the Account Review Team  Clarify Content 15 Minutes  Led by Account Manager  Clarify content presented in the Account Planner  If it is NOT in the Account Planner it does NOT exist  Everyone on the team has opportunity to ask questions  Not challenges to the plan  Not personal confrontations and personal criticisms
  62. 62. Strengthening the Plan Lead by the Sales Manager  Strengthen the Account Plan 15 Minutes  Not a personal challenge I see a weakness in the plan and the weakness is…..  If it is not in the plan – it does not exist  Create the account action plan Celebrate Completion of the Session with a Team Building Event!
  63. 63. ANY QUESTIONS ? if not, ANY COMMENTS ? IF not, we go to the next slide !
  64. 64. Thank You for your Order. Be Safe, Be Healthy, Do Great Things and Have Fun! 再 见