Hubsher and Taming The Sales Beast

Taming the Sales Beast: 10 Principles that Harmonize the relationship between Sales and Marketing and produces real world results 650-520-9849 Bay Area Office 212-534-0626 NYC Office

Agenda Background Word/overview about sales and Marketing and why it is important Goals for the seminar Today’s Sales and Marketing Challenges Successful strategies to bridge the gap Results - Case study Building a World Class Sales & Marketing Organization Wrap up/QA Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com 2

A word about sales and marketing “Nothing Happens till a sales is made” Sales and marketing team is the largest contributors to bottom line/most leverageable asset Sales- kind of dirty word Rarely taught in business schools Misunderstood Last undisciplined functional area Last frontier, very different from marketing team Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com 3

A word about sales: Problem! There is a disconnect between sales and marketing that costs companies millions in revenue, market cap and personal wealth Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com 4

Even small improvements in sales and marketing can lead to dramatic improvements in net income and market cap Market Cap vs Sales Improvement Increase 25.00 M a r k e t C a p in B illio n s 21.65 20.00 5.3x 12.88 15.00 3.1x 7.62 10.00 4.11 1.9x 5.00 0.00 0% 20% 50% 100% % sales improvement Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com 5

Goal to give you tools to Identify today’s sales and marketing disconnects Provide some sales background and insights that will accelerate your success in sales and marketing A cohesive plan of attack to minimize disconnects and maximize the ROI of the sales and marketing efforts Stuff you can use and implement tomorrow Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com 6

1.A) - roles Buyer Type Role Satisfied Financial BuyerDoes the perceived benefits outweigh the cost and risk? Specs Buyer Does this product fit our specifications? (CIO/director of IT) End User Buyer Will this product make me more effective? 10 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

1.B) - Two parts to selling Executive sell (no product required) Given to the Financial buyer What Pain will this take away? What extra pleasure will this bring me? What is the risk/reward profile Missouri sell (“Show Me”) First level pass with Financial buyer Deeper Dive Usually left to Specs Buyer and End User to decide Will this product solve “MY” pain in my environment Will this product give “ME” pleasure in my environment 11 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

1.C) - You need the “Two Slide Close™” Given to Financial Buyer(s) 1st slide – Pain slide/Pleasure slide 3-5 key benefits of your product 2nd slide -Financial justification ROI Payback NPV Cost of Alternative TCO You should customize these slides to the title and the company you are selling to 12 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

Successful strategies to tame the beast Who loves you baby? 1. Are you talking to me? 2. The horse whisperer. 3. Icebergs? What Icebergs?* (ASC) 4. Who’s your daddy?* (ASC) 5. Some assembly required. 6. Listen to the philosophers. 7. Know/no bull. 8. The Pipeline the Mother of all Sales. 9. Paradise by the Dashboard lights 10. 13 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

1) Who loves you baby? Scenario # 1 Know Scenario # 2 Know Male Male White White 6’2 tall Blue eyes Left handed Sweet tooth Likes country western music Favors the color red 15 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

Don’t waste time Know your perfect prospect profile VP of Sales Know the title of your financial buyer 100+ employees or more Know 3-5 key demographics Sell service oriented products or large discreet manufactures Have a multi layered sales organization Geographically distributed sales organization across the US/World Have been unsuccessful in using SFA in the past Know 3-5 key psychographics Have a well defined sales process Want a system installed quickly 16 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

2) Are you talkin’ to me? Are you talkin' to me? Well, I'm the only one here so you must be talkin’ to me 17 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

Get inside their head Terms in Marketing Market Share Mind Share Marketing communications PR Product, Price, Promotion, Placement Brand Lead Sales Lead Qualified lead Opportunity, Deal Won, Lost (black white) Sale 18 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

The Biggest words of all Territory Quota Forecast Anything that happens outside their territory means absolutely nothing Collaborate: Help your sales people build territory plans to help them exceed their Quota 19 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

Pop Quiz Great News: A lead you have generated has directly lead to the biggest new sale in the company’s history: How many people in marketing are happy? How many people in the company are happy? How many sales people are happy? Why? For how long? 20 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

3) The Horse Whisperer Sales and Marketing Success starts with your prospects and clients You must think like your prospect, not your product 21 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

Think like your clients: Map Buying Process to Sales Process Rating (High, Med, Buying Process Selling Activities Low) Identify Pain Uncover/Clarify needs Turn latent needs into urgent needs Reframe problem Envision Explore value of solving solution Solution Find new solutions to existing problem Create or Engineer Vision Set Decision Identify what is important Making Criteria Preemptively position Explore Options Present choices Educate Product telling Assess Risk Develop Trust Prove Solution Make Selection Decide if it is worth doing Implement Easy to transact Measure Reaffirm goals Make sure goals are being met 22 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

Tune Into The Personal Agendas Financial Do the Agrees a Good: Buyer perceived piece of Gets a 10% bonus if benefits software will productivity increases outweigh the improve Perceived as a change cost and risk? productivity leader 10% and will be worth the Bad: costs and risks of Will force me to lay off my installing fishing buddy. Will make me admit that the last package that I recommended was a failure/did not work 25 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

Watch Out For The Deep Six Nuker Specs Does this Agrees software fits Good… Buyer product fit our technical specification, Makes my specifications and can run on the life easier ? present hardware Will have to increase/decrease headcount to support Bad: The rival brand will look better on my resume I want to move my company in another IT direction There is a project I’d rather complete first I don’t want to get rid of my best friend in the IT department I don’t want to hire and manage another person Financial buyer is an a pest in another department – screw him I don’t like the salesperson 26 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

… End User Will this Agrees the Good: Buyer product software Hey this may actually help me make me will make do my job and have more more more spare time effective? productive Bad: Just a way for management to look over my shoulder They’ll expect more work for me 27 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

5) Who’s Your Daddy? Find at least one buyer whose personal agenda will be greatly enhanced with you winning the business. Leverage this/these resource(s) to understand the motivation and agendas of the other buyers Position your product to satisfy the needs of people’s personal agendas If you don’t have a daddy/champion, At best, you will lose to indecision/ no action At worst, you will lose to a competitor who has one 28 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

Real life example Name Role Agenda Satisfied VP Janet Financial Change Daddy Buyer Agent VP Derek Financial Save Face Buyer Dir of IT Specs Buyer No Tech Gail Support Analyst End User SF Trip Daddy Karen Buyer 29 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

Action Item Compile a list of wins Understand key Daddies Business Motivations Personal Motivations Use that to map into future marketing Materials and understand ideal client profile 30 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

6) Some Assembly Required Parts (What pieces of information do I need - Sales methodologies) What is the customer’s buying process Who are the key people involved Why are they buying What are the looking for What obstacles might get in the way What is driving the business need What pieces are you missing Process (How do I assemble the pieces) What are the steps for a deal to move from lead to close What information is needed, expected at each stage What commitments do you want to give to the prospect What commitments do you expect back from the process Will vary for your business Tools to help you do the job (speed sales cycle, anticipate politics, identify buyers who are likely against you, over come competitors) 31 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

7) Listen to the Philosophers “If I see farther than anybody else, it is because I stand on the shoulders of others” Share Best Practices Leverage knowledge Share Worst Practices Avoid repeating common mistakes Same mistake made 3 times by 3 individuals 33 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

8) Know/no Bull Common sales complaints Not enough leads Not enough collateral Action items Confirm Zero Lead Policy Create library of customizable materials 34 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

9) Pipeline the Mother of all Sales Sales are misleading Active Deals in Pipeline vs Revenue 35 200 180 30 160 25 140 $ R even u e 000 120 # o f D eals 20 Deals 100 Revenue in 000 15 80 60 10 40 5 20 0 0 1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 1-Jan 1-Feb 35 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

9) Pipeline the Mother of all Sales Sales are misleading Active Deals in Pipeline vs Revenue Launch 35 200 Sales and Ecstatic 180 Marketing 30 Campaign #2 160 25 140 Launch $ R even u e 000 120 # o f D eals 20 Deals Sales and 100 Revenue in 000 Marketing 15 Campaign 80 60 10 40 5 20 0 0 1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 1-Jan 1-Feb Done Fear/stop marketing 36 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

10) Paradise by the Dashboard lights Avg Deal Size Incoming Leads Avg Deal size Incoming leads 100000 140 90000 120 80000 100 70000 80 60000 60 50000 40000 40 30000 20 20000 0 10000 J F M A M J J A 0 Month J F M A M J J A Close Rate Avg Days To Close Close Rate Avg Days to close 90% 120 80% 100 70% 80 60% 50% 60 40% 40 30% 20 20% 0 10% J F M A M J J A 0% J F M A M J J A days 38 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

Pipeline Analysis Potential Sales by Sales Stage $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- A - First Meeting B - Needs C - Investment D - Refine Plan E- Closed Analysis Plan New Prospects Existing Clients 39 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

My 2 slide close to you: By implementing this principles: Increase close rates Increase deals size Increase deal velocity Dramatic positive impact on net income, market cap and personal wealth 41 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

Results can be extraordinary! 5.5 improvement in close rates Close rate 90% 77% 80% 70% 5.5 x 60% 50% 40% 30% 14% 20% 10% 0% Before After 42 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

4.8 x improvement in deal size Avg Deals Size $90,000 $81,529 $80,000 $70,000 $60,000 4.8x $50,000 $40,000 $30,000 $17,121 $20,000 $10,000 $- Before After 43 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

2.4 x improvement deal velocity Avg Business Days to Close 100 88 80 D a y s to C lo s e 2.4x Increase 60 37 40 20 0 Before After 44 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

6,200 % increase in sales productivity $ Revenue/Rep $8,483,423 $9,000,000 $8,000,000 $7,000,000 $6,000,000 62x $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $136,190 $- Before After Before After Improvement Close Rate 14% 77% 5.5 Avg. Deal Size $ 17,121 $ 81,529 4.8 Avg Business Days to 88 37 2.4 $ Revenue/Rep $136,190 $8,483,423 62.3 45 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

Dramatic positive impact on net income, market cap and personal wealth Net Profit/Rep $4,500,000 $3.9 Mill $4,000,000 $3,500,000 $3,000,000 Net Profit $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Before After ($500,000) -$0.1 Mill Before After Net Profit/Rep ($81,905) $3,941,711 Market Cap Inc/Rep $0 $98,542,787 46 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

Creating a World Class Sales and Marketing Organization Benchmark current environment Compare to best practices Identify Gaps Sales Management Sales Create Roadmap and Implement Steps to Close Gaps 48 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

Benchmark Current Environment People & Skills Process Tools and Technology People Organization Structure Sales Management CRM Resource Allocation/NormalizAccount Management Webconfrecing Predictive Hiring Opportunity Management 2 slide close Process Compensation Call Planning 3 slide close New Hiring Training Call Execution Sales Methodology Field Support Lead Management/DevelopmeTime line Tools Coaching Qualifying Reverse time line Ongoing training Best/Worst Practices Account Plan Skills Set Gap Analysis Objection Handling Opportunity Plan Technology Questioning and Qualifying Negotations Call Planner Shorten the sales Cycle Overcoming Negative Selling Qualify Questions Understanding the Politics Trapping for price cutting Profiling tool Presentation Competiveive Selling Knowledge Center Calling High Forecasting Sales Playbook Objection Handling Pipeline Management Value Statement Negotations Pricing Changes Anticipating Political Conflict Preparation Proposal Company Knowldege Listening Quoating Product Knowldege Discovery Skills Customer Leverage Programs Competitive Knowledge 49 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

Ron Hubsher, Managing Director Ron Hubsher is managing director of the Sales Optimization Group. Ron has over 20 years of experience in sales, sales management, and business development. Prior to the Sales Optimization Group, Ron was in sales management at a leading CRM provider UpShot -- acquired by Siebel (Nasdaq:SEBL) -- where he helped hundreds of companies improve their sales performance. A former Management Consultant with Booz, Allen & Hamilton, Ron has worked with, and helped provide thought leadership for, Fortune 500 companies on their sales, marketing, and business strategies. Ron graduated with an MBA from Columbia University Graduate School of Business. He has a Bachelors of Science degree in Operations Research from Columbia University where he was elected to the Tau Beta Pi and Omega Rho honorary societies. 52 Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, RonHubsher@soptimization.com

Hubsher and Taming The Sales Beast

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