Executive program in sales management final
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  • very cool - I am interested in several topics you have shared. One today is slide 4 on the shared values. Can you tell me a bit more?
    scott@t2vc.com.
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  • Reference Softchoice Revenue and employee growth
  • For Example, listed below are the course objectives used in the previous session:1. Understanding how to Accelerate Sales Performance in the Age of Social Media2. Understanding the crucial connection between your Brand and your Culture3. Understanding the critical drivers and linkages of revenue and profit: market segmentation, sales plans, customer plans4. Understanding fundamentals of market segmentation5. Developing and implementing sales and customer plans and why that is important for your forecast reviews6. Understanding how implementing customer-specific value propositions can make you more efficient and profitable
  • What explicitly is the Job of Sales?What implicitly is the job of all managers? (increase productivity which means not letting the cost of sale rise at the same rate as the revenue)(Sales Managers sometimes don’t think about this as part of their role)
  • Workgroups – groups of 4What is changing out there?What are the new challenges that you are facing?
  • Sales People are an extremely valuable resource.They are expensive.They should be used at the right point in the sales process.
  • If you want to find out about a new restaurant where do you go to find information?If you want to find out about a new movie where do you go?If you want to find out about how a new piece of technology is being received you go where?
  • IF you are looking for a restaurant recommendation you go to:?If you want to know about cars you go to?If you want to know about the right electronics you go to?WHY? It is all about trust.
  • You send emails and direct mails to customers with a product offerYou cold call customers to give them a product pitchYou invite customers to an event that you think will interest themThere are a small group of people in the main group that love that you gave them that message, but there are a lot of other people that you are not meeting their needs or helping them on the projects that interest them.You are pushing your message on to people who want it or not.
  • You find all the people that already are showing that they have a need to for help with desktop virtualizationThey are tweeting that they need helpThey are goggling and looking for content on desktop virtualizationThey are asking questions about desktop virtualization on forums like SpiceworksThey are watching and sharing videos and webinars on the topicThey are downloading whitepapers from IT content sites like TechTargetThey are reading content that we email to them based on their Master BluePrintIf you present your message to these people, you are not only hitting the right people but you are meeting their needs and providing value.The customers are being pulled to you.
  • It’s not what You say – It’s what They sayIt’s not about Selling. It’s about Serving.It’s not about Presenting. It’s about Engaging.
  • 50,000 new customer views is ~30% of our total (70% would be existing customers)
  • The Social Media effect…Look at Glassdoor…what are employees saying about your company?What will ex-employees say if contacted via LinkedIn for a recommendation on your company?
  • ExerciseGroups of 4Pick a brand…What are the cultural attributes that you are aware of?Do they consistently keep their brand promise?
  • Where is your company? Groups of 2 – ask some questions and come up with your own assessment
  • Look for evidence here in what you might have been thinking. Does this align with your thought on the brand positioning?
  • What behaviours do you need to reinforce from everyone in your company in order to make sure that your brand promise is consistently kept?Differentiation may be important but with so much confusion out there…it may be more important to be consistent.
  • Do you know where your plan number comes from every year? Do you buy into all the things that created the plan number?How many of you put out stack ranking reports on sales performance?
  • Start with WHYIf there was a funeral for your company who would come and why would they be crying?
  • These things overlap and build on each other (REFERENCE THE SOFTCHOICE PLANNING CYCLE)Each year the planning cycle might be:Update any changes for the strategic planUpdate the Marketing plan with those key issuesMid-year – Cross Functional meeting to look at the next yearSeptember – Marketing update – segment plan, product group plan, etc. (based on 8+4)October – Cross Functional MeetingOctober – Sales Coverage Planning (where do we see moving $ around in the sales budget?)Sales Planning – NovemberBudget prep – November/December (10+2 or 11+1)Quarterly reviews during the year with Sales and Marketing (operations, manufacturing, etc)
  • If you are high volume you definitely need a marketing plan and a sales plan - the customer plans may be less importantIf you are low volume then the customer plan is critical while the sales plan depends on your coverage model and the marketing plan is still an overall framework.
  • Checklist for what might be needed
  • Why do we start with Opportunities? It focuses the conversation
  • Can we hear from people about how they are currently connecting with Customer needs in their companies?What is working?Do you really understand all the headaches your customers have with and around your products or services?What about looking at ComplaintsBoard.com or betterbusinessbureau.org
  • Share your segmentation with 2 other people…can you find something that another company does that might be interesting to look at?I like the idea of figuring out if you invited all your customers to Thanksgiving dinner…who would sit closest to the Turkey? To the stuffing? To the vegetables? Why?
  • Think about Cameras…Who wants a digital SLR?Who wants a pocket camera?Who wants a cell phone camera?
  • 50,000 new customer views is ~30% of our total (70% would be existing customers)
  • Assigning the activities to individuals…If you manage managers your plans have to roll up to your personal planIf you manage reps then each rep having a plan that rolls up to your plan gives you a roadmap of how you are going to be successful
  • What are the problems with this forecast?Can something in the 30 day column be at 30%?What would you have to know about the Jones Bros deal at 90% to believe it to be real?Should the total be the total of the gross (not probability discounted) dollars?What does a forecast review look like?

Executive program in sales management final Executive program in sales management final Presentation Transcript

  • Executive Program in Sales Management MARKETING
  • Nick’s Bio - Highlights Career: Personal: ComputerLand Canada Volunteering ◦ 8 Years in Sales and Sales Management ◦ Director of Marketing Softchoice Corporation ◦ ◦ ◦ ◦ VP of Sales VP of Marketing SVP of HR SVP of Business Development CultureByBrand ◦ Led teams to Ghana, Rwanda, Bali, Sri Lanka, Kenya, Uganda and Guatemala ◦ Board Member for The Strongest Oak Fitness ◦ Master’s Swim Club member for 22 years ◦ Club President Married with one daughter
  • Agenda Monday: 1. Accelerating sales force performance (in the Age of Social Media) 2. The Crucial Connection between your Brand and your Company Culture 3. Integrated Planning: Marketing, Sales and Customer Friday: 1. 2. 3. 4. Fundamentals of Market Segmentation Developing and Implementing Sales and Customer Plans Conducting Effective Forecast Reviews Frameworks and tools to develop segment and customer-level value propositions
  • Shared Values
  • Two ways to drive company financials: Decrease Costs Increase Revenue
  • Leverage Revenue Manage Understand Customer Needs Deliver Create Value Productivity Expenses
  • What Challenges are you Facing Today? Internally and Externally
  • Groups Group 1 Mike Martin Murray Hunter Rob Lee Marco Mathieu Group 2 Don Macfarlane Ricky Dowell Judy Williams Doug Fox Joel Burton Group 3 Robert Greene Mark Karsseboom Praveen Muruganandan Lee Harney Group 4 Shaun Keogh Lawrence Levinson Tim Hunt Rudy Mancini Group 5 Waylon Sharp Flavio Ferreira John Benton Michael Hachey
  • Price Value Customer Service Customer Collaboration Product Knowledge Customer Industry Knowledge Supplying Information Providing Insight Selling a Product Delivering Business outcomes Communicating Value Linking Challenges to solutions Relationships Connection to Communities of Interest Selling Serving Presenting Engaging The Old Way-------The Continuum--------The New Way
  • Accelerating Sales Performance IN THE AGE OF SOCIAL MEDIA
  • Accelerating Sales Performance Option 1: Option 2: Work Harder Be More Aggressive Work more Hours Skip Lunch Work Smarter Right Place – Right Time Systematic Approach Create Leverage
  • Sales People Marketing - Broad Appeal - Making the Phones Ring - Warming up the market Sales - Where a knowledgeable person makes the greatest impact Does Cold Calling work these days?
  • Do You Feel Like This? Sales Marketing
  • Audit What are the 6 elements of marketing Where are you strong? Weak? What are the gaps Something like the strategy canvas…… Plot ratings What are the issues
  • The Funnel Everyone Suspects Prospects Customers!
  • The Old Way
  • How Social Media Changes Everything
  • Finding Information Chevy Volt
  • Traditional Marketing
  • Content Marketing Attracts
  • In the future there will only be Content Marketing - Seth Godin
  • What do you have to say? What is your company’s Unique perspective? Why should prospective clients have an interest is what you think? What are the real issues in your industry? Whose thought leadership do you follow? What help can you offer beyond what is obviously good for your company?
  • Groups Group 1 Flavio Ferreira Judy Williams Waylon Sharp Marco Mathieu Group 2 Rudy Mancini Shaun Keogh Michael Hachey Robert Greene Group 3 Praveen Muruganandan Joel Burton Rob Lee John Benton Group 4 Don Macfarlane Lawrence Levinson Tim Hunt Murray Hunter Group 5 Mike Martin Ricky Dowell Mike Karsseboom Doug Fox Lee Harney
  • Intersection
  • The Marketing to Sales Funnel Traditional Marketing PUSH Mktg Interrupts Sales Cold Calls Social Media Content Marketing PULL Provide Value that Spreads Awareness Sales Discovery & Advocating Marketing Offers Sales Closes Consideration Hit Rate Warm Lead Transfer from Marketing to Sales Marketing Offers Sales Closes
  • New Customer Acquisition Funnel (Example) Sales Stage Volume Unique Views 50,000 Identified 7,500 MQL (Mktg Qualified Lead) 2,250 SAL (Sales Accepted Lead) 1800 SQL (Sales Qualified Lead) 1080 New Customer Sale Close 216 Conversion % 15% 30% 80% 60% 20% X $6k Annual GP = $1.3M GP
  • The Role of Marketing Department Understand Customer Needs Create Customer Value Deliver Customer Value Customer Satisfaction measurement and reporting Develop Marketing Plan Conduct formal marketing research Monitor Communities Marketing Develop Segment Specific value propositions Understand Customer Pains Pricing strategy and tactics Customer visits Write Blogs Market segmentation matrix Create Content (Buyer’s Guides, White-Papers) Competitive analysis Train Sales People on strategy, tactics, products, etc. Measure, segment customer and product attractiveness Manage Customer Value Customer listening (twitter, etc.) Accompany sales on periodic sales calls Manage Events, Webinars and Seminars Seed Content Marketing Automation (Mailing Lists, campaign lists) Sales Reviews Segment, customer, product mix review Brand and Culture Alignment Website Processes Buying Keywords for search Manage Segments for Profitability
  • The Role of Sales Department Understand Customer Needs Create Customer Value Deliver Customer Value Manage Customer Value Participate in Customer Sat measurement Sales Calls Sales Develop specialized knowledge of customer’s industry and business Join Industry forums or LinkedIn Groups Go where they are sharing info or looking for solutions online Develop Sales Plans Develop Key Account Plans Develop customer specific value propositions Collaborate with Marketing re: new ideas Customer Value Proposition delivery Establishing service level agreements Forward, Like or Post valuable content Invitations to webinars, seminars Be the voice of the Customer to product management Conduct Sales Reviews with Marketing Get Paid for Value being delivered to customer Manage Customer relationships for long term profitability
  • Marketing and Sales United Content • • • Sales Meetings Regular Training Certifications Sales Training • • • • Blogs eBooks Web Print Promotion Marketing Activities • • • • ‘Like’ content Email & Promote Team Contests Win Funds Sales Engagement • • • • Events • • Email Social Media Search Marketing (Google Adwords) Digital Advertising Webinars Local Events
  • Branding “A PROMISE CONSISTENTLY KEPT”
  • Who do you trust?
  • Build Culture & Brand Alignment Me Values Behaviours We Culture Brand Internal External
  • What Brands do you Love? Why?
  • Culture is the Elusive Link Company A Company B
  • Emotions Rule our Choices
  • Branding Model (Example from Level5 Strategy Group – BrandMapTM )
  • Personality/Emotional Attributes of Your Brand
  • Your Brand Identify 3 words that describe your brand Find a partner – share your 3 words Review your partner’s company (Anything you can find on the web) ◦ What are the consistencies? ◦ What are the inconsistencies?
  • Desired Culture Values
  • Espoused Values What are your Company’s Espoused Values? Are they real for you? How do you represent them on a Sales Call? Do you refer to them in presentations?
  • Culture What is your role in building a strong Culture? Culture A Promise Consistently Kept Brand
  • What Are Our Basic Needs and Growth Needs Growth Needs Satisfying your need to actualize your purpose by influencing or impacting the world around you. Satisfying your need for authenticity and finding meaning and purpose in your life. Satisfying your need for autonomy, freedom, independence and adventure. Satisfying your emotional need to be recognized for your skills, talents or qualities. Basic Needs Satisfying your emotional need for belonging, protection and connection. Satisfying your physiological needs for security; staying alive and keeping your body healthy. Evolution of Personal Consciousness Satisfying your need to leave a legacy—to have led a life of significance that will be remembered. At any given moment in time, our values are a reflection of our unmet basic needs, and the growth needs associated with the stage of psychological development we have reached.
  • Marketing Planning THE KEY TO SALES EXECUTION
  • Meaningful Vision
  • Planning Strategic Plan Marketing Plan Vision Overall Business View 3-5 Year Horizon Financial Goals Company Structure Leverage Investment Market-Centric - 1 Year Horizon What Segments? What Offers? What Competition? Differentiation Marketing Spend KPI KPI •Revenue Growth •SGA as % or Revenue •Cost of Customer Acquisition •Business Mix Sales Plan Execution-Centric - 1 Year Horizon Territories Coverage Sales Comp Business Mix Biz plan for each market KPI •Sales % of Plan •Growth Rate •Sales Comp as % of Revenue Customer Plan Customer-Based - Quarterly or Annually Customer Value Proposition Growth Goals Objectives KPI •Customer Retention •Customer Satisfaction
  • Planning Dynamics – B2B 1. High Volume Transactions – Each has a Small $ value ◦ Target Prospects are unknown 2. Moderate volume of Transactions with Moderate $ Value ◦ Roles of people who are target prospects 3. Low Volume of Transactions – Each has a High $ value ◦ Target Prospects can be named Marketing Plan Sales Plan Customer Plan
  • Marketing Plan Elements Section 1: Market Analysis Section 2: Situation Analysis Section 3: Marketing Strategy Section 4: Implementation Section 5: Financial Summary - Outcomes
  • Section 1: Market Analysis Buying Decision Economy Legal Macro Environment Technology Demographics Customer Industry Problems Vision Competitors Market Analysis Market Trends Market Size and Share Co. Culture Internal Resources
  • Section 2: Situation Analysis Opportunities Threats Strengths Weaknesses Situation Key Issues Critical Success Factors
  • Section 3: Marketing Strategy What are we Selling? • Products • Services • Mix and Lifecycle • Portfolio Analysis Who do we sell it to? Value Proposition How do we Sell it? • By Product • By Segment • By Geography • By Channel • Pricing Strategy • Margin Objectives • Angel Customers • Demon Customers • Sales Force • Social Media Plan • Website • Advertising
  • Section 4: Implementation People • Hiring • Training • Incentives Process Systems Contingencies • Changes in Workflow • Approvals • In-Process Measures • Systems Requirements • Reporting • What-if Scenarios
  • Section 5: Financial Summary Desired Outcomes • Measurements • Timing Assumptions Numbers P&L • Explicitly stated • Revenue and Margin • Costs • By Segment/Geo /Product Line • Profit(Loss) Impact • Balance Sheet
  • Planning Benefits Creating Alignment Locking in on Strategy Clearly defining roles and responsibilities Agreement on Objectives, key measures and desired outcomes Making the goals (numbers) add up
  • Segmentation IDENTIFY MEANINGFUL GROUPS OF CUSTOMERS
  • Segmentation Principles 5. Develop Go To Market Strategies 1. Understand Customer Needs Businesses Need to be Profitable 4. Develop Value Propositions for Target Groups Different customers have different value drivers Who do you choose to serve? 3. What are the Most Attractive Groups? 2. Group Customers
  • Understanding Customer Needs
  • What are you looking for? How have you grouped your customers today? How do you know that what they are asking for is a “market”? ◦ What is an attractive group? Geography Benefits Demographics (age, gender, etc) Customer Needs Buying Patterns Interests Size of Customer Values Value of Customer Attitudes Industry Behaviour
  • Segmentation Matrix Customer Segments
  • Segmentation Matrix (Example) Market Segments Customer Segments Premium Professional • • Performance Willing to pay top dollar for top quality and features Risk averse • May consider price premium if features are relevant Value • • Is price conscious but will not accept low quality Accepts fewer features Hobbyist • Willing to pay top dollar • Willing to pay more if there is a reason • Wants competitive pricing Casual User • Will pay for the cool factor • Product quality and reliability are drivers • Price is a big factor in what to buy
  • Customer Value Propositions Customer Segments Market Segments Premium Professional • • Hobbyist • • Casual User Performance Value Top of the line Pro Full Frame SLR Cameras with top of the line lenses Service Plan • Top of the line Compact System w/ interchangeable lenses Instructional classes • Top of the line with one good general purpose lens • The best combination of features and a great price – a bundle • Good Product – good warranty – good price • Basic Camera for occasional use • Compact Pocket Camera with all the Bells and Whistles (Wifi) Not top of the line but next level down • • • Product One generation old Refurbished lenses? Service: pay as you go
  • Segmentation Demands Data Customer Segments Premium Performance Value Market Segments Professional • • • • • Number of Customers Revenue Growth Profitability Market Share • • • • • Number of Customers Revenue Growth Profitability Market Share • • • • • Number of Customers Revenue Growth Profitability Market Share Hobbyist • • • • • Number of Customers Revenue Growth Profitability Market Share • • • • • Number of Customers Revenue Growth Profitability Market Share • • • • • Number of Customers Revenue Growth Profitability Market Share Casual User • • • • • Number of Customers Revenue Growth Profitability Market Share • • • • • Number of Customers Revenue Growth Profitability Market Share • • • • • Number of Customers Revenue Growth Profitability Market Share
  • Group Work Segmentation What are the variables in your industry? ◦ What are the driving needs?
  • Persona REAL EXAMPLES THAT FIT YOUR SEGMENTATION
  • Shaun works at ABC & Partners, a fast-paced entertainment law firm in the lower mainland of Vancouver. Because he’s the only IT employee in the office, he often wears many different hats – one day, he’s the primary IT decision maker. Some days, he’s tech support. But one thing is constant – he’s always the IT purchaser. Shaun has his favorite sites for IT – bestbuy.ca for the one-off retail purchases, and XYZ.com for more sophisticated IT products like servers and software licenses. It’s not uncommon for Shaun to use Google to search for product too. His cousin works at Microsoft, and suggested he give Softchoice a try for his IT needs. Off the bat, he wasn’t impressed that he had to wait for a buying account. When he received his confirmation email the next day, he visited his new customer portal page. Shaun B. IT Manager, ABC & Partners Existing Account | 35 Seats | Canada For the past month or so, Shaun has been using softchoice.com for some of his IT needs. He really liked how peppy the search results were – Shaun is notoriously impatient, and has often left websites (and not returned) if it took longer to load a page than he thought it should. One of the things Shaun found lacking was a central location for *real* deals and offers - he looked at the promotions section, but wasn’t impressed – it looked like static content. Key demographics: - Single, 33 years old - Middle class Vancouverite - University graduate Key psychographics: - Hates wait - Prefers websites over people - Early technology adopter - Driven by price and promos - Key marketing insight: Price & availability trumps value-add message Sean spends more time online than off – he views most online ads as clutter, but does look at (and sometimes clicks) sponsored links in search engines and sites like linkedin.com. Unique user goals: - Locate sweet deals ASAP - Self-service tools - Email/txt notifications Marketing opportunities: - Focus on price point & push run-rate - Notification system for best offers - Feed ego (small biz like to think of themselves as big biz) - Create EB destination point - Viral/WoM Key customer touch points: www scc .com @ @ scc www g
  • Sharon has been in the IT industry for nearly 15 years, but has always viewed technology as a means to an end. Sharon leads the team that is responsible for procuring IT product for her entire organization. DDX, INC is a leading North American provider of window fashions. On average, Sharon and her team place 15 orders a week, mostly off their standards list. A people-person through and through, Sharon has a solid relationship with her Softchoice account team. She rarely used the old softchoice.com – she didn’t mind how it looked, but she could never find what she needed, and ended up calling her ISAM Billie for pretty much everything. Because her orders are typically off a standards list, Billie has politely been encouraging Sharon to move most of her ordering online. Sharon C. Lead Purchaser, DDX , INC Existing BA | 650 Seats | North America Key demographics: - Married, 37 years old - Middle class working mother - University graduate Key psychographics: - Prefers people over websites - Views technology as a means to an end -- Worried about budget - Driven by saving time - Key marketing insight: Find them a better way and they’ll stay As a result of her past experience with the website, she was wary to try the new softchoice.com. Billie encouraged her to join a web demo to learn about what the new site has to offer. Sharon took the tour, and although she agreed to try the site out for the next few weeks, she continued to call Billie for most of her purchasing needs. Sharon did try using Active Quotes with Billie, and enjoyed the simplicity of the tool. Sharon takes great pride in her relationship with Softchoice. She recently saw an ad in Computer World, and cut it out to hang in her cubicle because her outbound rep was featured. She subscribes to a number of industry trade publications, and sometimes subscribes to IT company newsletters to keep abreast of market trends. Unique user goals: - On-demand help - Strong order & reporting tools Key customer touch points: .com @ @ scc www Marketing opportunities: - Try-and-buy incentives - Webinars - Ads within transactional emails - Create brand advocate - Viral/WoM
  • Matthew has been with Delta Enterprises for nearly 10 years, and last year was promoted to Senior IT Manager. Delta in an internationally known manufacturer of networking equipment, and has a presence across North America. As a result of his promotion, Matthew now has a much greater influence on how Delta procures IT products, and from whom. Because of the over 50 locations Delta has across North America, Mathew has worked hard to design and implement a procurement system that has workflow and approvals. Among other benefits, this gives his remote team a central source for ordering and reporting on the day-to-day IT resources they need. Anything over $5,000 requires Mathew’s approval, and anything over $15,000 needs senior management’s approval. Matthew H. Senior IT Manager, Delta Enterprises Existing BA | 2,250 Seats | North America Key demographics: - Married, 41 years old - Middle class Suburbanite - University graduate Key psychographics: - Appreciates simplicity - Sensitive to the realities of IT - Has multiple vendors Delta recently renewed their Microsoft EA, and chose Softchoice to facilitate the renewal. Mathew in particular was impressed with the knowledge of the Softchoice team as it relates to navigating the complex world of software licensing. Until recently, Delta has used Dell for hardware and on-site service support. Over lunch one day with his Outbound rep Jamie, Mathew mentioned they were looking at a large technology refresh next year. Jamie encouraged Mathew to look at HP or Lenovo as options as well. Mathew asked Jamie if softchoice.com could connect with his procurement system. Jamie wasn’t sure, but promised to follow up with him later that day with an answer. When he got back to the office, Mathew decided to visit softchoice.com on his own to see if he could answer his own question about workflow integration. Matthew couldn’t find any information on workflow integration at all, and wondered if Softchoice would be able to handle his hardware needs after all… Unique user goals: - Custom workflow integration - Control over website UI Key marketing insight: -Prove that Softchoice is right for my business Key customer touch points: scc.c om @ @ .com www Marketing opportunities: - Clear articulations of our capabilities - Value-add services and solutions - Create Enterprise destination point
  • Start Simple – Manufacturing Example Phase I Phase II K-12 Academic Higher Ed Enterprise Corporate Mid-Market Phase III Library Lab School Automation Universities Vocational Colleges Financial Services Oil and Gas Consulting Retail
  • Segmentation Mistakes Picking the Largest Segment Failing to identify and invest in emerging segments Developing Segmentation schemes that are not actionable or the same actions as another segment Market Disruptions change segments ◦ Are Cell phones changing the point and shoot camera market?
  • More Segmentation Mistakes Segmenting by product and not by market Using the same segmentation scheme as you competitors ◦ Your offerings will be more alike and harder to justify price differences Relying on the easiest demographics Products being the only segmentation What is easiest from a sales perspective driving segments Getting too complex – sales organization cannot execute
  • Customer Profitability Are all your customers equally valuable to your company? Do you have Angel Customers? and Demon Customers?
  • Market Segmentation Efficiency is the driver Without Segmentation: - you are treating all customers the same - wasting resources - trying to be all things to all people - not giving your sales force any direction
  • Sales and Customer Plans
  • So Far We Know what we Value We have identified that a Unique Perspective is required We Know what our Brand is about We have an overall Marketing Plan We have Segmented our Customers and know who we want to pursue
  • So what is a Sales Plan? Looks similar to a Marketing Plan Marketing language translated into ◦ Sales Opportunities ◦ Sales Objectives ◦ Sales Resources required Do you have an 80/20 Reality? - 80% of your revenue or profit comes from 20% of your customers
  • Practical Planning (Back of the Napkin) 1. What will my current customers buy this coming year? Any Annuity? ◦ Revenue ◦ Profit ◦ Products ◦ Services What does that add up to? 2. What is my Quota for the coming year? 3. What is the GAP I have to fill?
  • Fill the Gap (spreadsheet) What is our track record for adding new customers in a year? What is each new customer worth? Should I plan for customer attrition? What new products do we have to sell? Where can we sell new products to existing customers? Do I have uncovered territories (segments) that I need additional coverage for? What Quota will I assign?
  • Remember this? New Customer Acquisition Funnel (Example) Sales Stage Volume Unique Views 50,000 Identified 7,500 MQL (Mktg Qualified Lead) 2,250 SAL (Sales Accepted Lead) 1800 SQL (Sales Qualified Lead) 1080 New Customer Sale Close 216 Conversion % 15% 30% 80% 60% 20% X $6k Annual GP = $1.3M GP
  • Integrated Planning Option 1 80% Option 2 20% Key Customers The Rest • Account Plan • Account Plan • Account Plan • Etc. • Territory A • Territory B • Etc. Segment A Segment B • Key Customer • Key Customer • Etc. • The Rest • Key Customer • Key Customer • Etc. • The Rest 80% 20%
  • Key Customer/Account Plan What is your Strategic position in the account? ◦ ◦ ◦ ◦ Why do you win? (Strengths) What could happen that could cause you to lose? (Threats) What competitors are gaining strength in the account? (Weaknesses) What big problems does the customer have that you would like to be solving? (Opportunities) ◦ Where can you make money in this account? (Differentiation) ◦ Where are your relationships? What are they based on? If your company went bankrupt tomorrow what would the customer have to do to keep going? What do you plan to grow your relationship? ◦ Revenue ◦ Products ◦ Services
  • Territory Plans (rep=territory) What Quota will I assign? What is a basic expectation of revenue from that set of customers? What growth does this identify? What activities will need to happen to: ◦ Drive new business? ◦ Drive growth in existing accounts? ◦ Selling stuff we have not sold in the past
  • What Use is the Sales Plan? 2014 Sales Plan
  • Forecast Reviews 1. If the planning process made sense than a commitment to the Goal is mutual 2. The Territory Plan or Account Plan makes the Objectives for the year very clear 3. The Forecast review is as much about the actions and steps as it is about the $ Forecast. If the rep is not taking the steps can you reasonably expect the results to follow? ◦ ◦ Sales Management is about keeping reps on track with the right activities or adjusting based on new information Every Sales Call therefore has an objective relative to the monthly forecast discussion and the annual Sales Plan
  • Sales Management FORECAST REVIEWS – MONTHLY PLANNING
  • October Forecast Customer Opportunity Probability 30 Days 60 Days 90 Days ABC Co. HR Project 30% $12,000 $19,500 - Jones Bros. Dist. Refresh 90% - $100,000 B-Town Inc. Brampton Expansion 50% - - GrowTown International Services 70% - $19,000 - Tower Vendor of Record 75% - - $15,000 Run Rate $11,000 $11,000 $11,000 Forecast $32,000 $49,500 $126,000 $ 9,000 Probability is mapped to Sales Stage that is relevant to your company
  • November Forecast Customer Opportunity Probability 30 Days 60 Days 90 Days ABC Co. HR Project 40% $12,000 $19,500 - Jones Bros. Dist. Refresh 90% - - $100,000 GrowTown Vendor of Record 75% - $10,000 $10,000 Google Creative Building 20% $55,000 - - City of Dallas Property Project 90% $17,000 - - Run Rate $11,000 $11,000 $11,000 Forecast $95,000 $40,500 $121,000
  • November October Compare
  • November Action Log Action Who Owner/Help By When Purpose Meet ABC Co. Project Lead Me – take SME Nov 10 Figure out why this project is stuck Send Invites All Customers Me Nov 3 New Product Launch Me Nov 7 Support Awareness Post thought leadership Buyer’s Guide - LinkedIn
  • December Forecast Starts with Review of November Opportunity ABC Co. November Customer Probability 30 Days 60 Days 90 Days HR Project 40% $12,000 $19,500 - Jones Bros. Dist. Refresh 90% - - $100,000 GrowTown Vendor of Record 75% - $10,000 $10,000 Google Creative Building 20% $55,000 - - City of Dallas Property Project 90% $17,000 - - Run Rate $11,000 $11,000 $11,000 Forecast $95,000 $40,500 $121,000
  • Sales Management See your job as: “Getting People Done Through Work” Not “Getting Work Done Through People”
  • Frameworks for Value Props
  • Price vs. Cost Ever heard this? ◦ Q: Why did we lose? A: Our Price was too high. Is anybody really a price-only buyer?
  • How a Sales Rep sees it: Price
  • How a Customer Sees it: Total Cost of Ownership - Upgrade or Replacement - Switching Costs - Disposal - Ease of Purchase - Paperwork and Processing/ - Recycling - Website Price -Storage Space - Internal Handling - Interest - Shrinkage and Obsolescence - Labour Costs - Depreciation - Training TCO = Acquisition Costs+ Possession Costs+ Usage Costs+ Disposal Costs
  • What Value does your company bring that you are not getting paid for?
  • Make it Personal Stage of Development Cause of Happiness/Joy What We Value 7 Service Leading a life of selfless service for the good of the community, nation or the planet. Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations. 6 Making a difference Actualizing our sense of purpose by collaborating with others to make a difference in the world. Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose. 5 Internal cohesion Finding a sense of meaning and a purpose in life that is larger than meeting our own needs. Opportunities to lead a values- and purposedriven life that is meaningful to us and valuable for others. 4 Transformation Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live. Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others. 3 Self-esteem Feeling acknowledged and recognized by those who we respect and our peers. Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust. 2 Relationship Feeling accepted, cherished and nurtured by our family, friends and colleagues. A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other. 1 Survival Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace. A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families. What Value can your customer put on what you bring to the party?
  • Economic Comparison (Example) Customer’s Cost Category Details Acquisition Costs Price $ 899.00 $ Purchasing Process $ 4.00 $ Order Quality/Returns $ 4.00 Storage $ Interest $ Possession Costs Our Competitor Our Price $ 875.00 - $ 10.00 $ - $ 5.00 15.00 $ - $ - 2.00 $ - $ - $ - $ - Quality Control 899.00 $ 3.00 $ - $ - Shrinkage/Obsolescence/ $ Depreciation 7.00 $ - $ - Training $ 15.00 $ - $ Internal Handling & Labour Costs $ 2.00 $ - $ - Product Replacement $ 3.00 $ - $ - Disposal $ 5.00 $ - $ - Recycling $ 17.00 $ - $ - Repurchase or Lease Buyout Switching Costs $ 4.00 $ - $ - $ - $ 10.00 $ 910.00 Insurance Usage Costs End-of-life TOTAL $ $ 980.00 $ 899.00 10.00
  • Segmentation Matrix Market Segments Customer Segments Premium Professional • • Performance Value Willing to pay top dollar for top quality and features Risk averse • May consider price premium if features are relevant • Is price conscious but will not accept low quality Hobbyist • Willing to pay top dollar • Willing to pay more if there is a reason • Wants competitive pricing Casual User • Will pay for the cool factor • Product quality and reliability are drivers • Price is a big factor in what to buy
  • Value Propositions At our company we value ______________________________ This means we ______________________________ We seek to help Customers who ______________________________ Unlike our Competitors we ______________________________ Answering these questions: Why should someone purchase your offering? Why should someone purchase your offering instead of your competitors? What is most worthwhile for someone to keep in mind about your offering?
  • Summary
  • Contact Nick Foster Cell: 416-275-0776 Email: nick@culturexbrand.com
  • © 2013 BY NICK FOSTER ON BEHALF OF SCHULICH EXECUTIVE EDUCATION CENTRE (SEEC). ALL RIGHTS RESERVED. NO PART OF THIS PUBLICATION MAY BE REPRODUCED, STORED IN A RETRIEVAL SYSTEM, OR TRANSMITTED IN ANY FORM OR BY ANY MEANS, ELECTRONIC, MECHANICAL, RECORDING, PHOTOCOPYING OR OTHERW ISE, W ITHOUT WRITTEN PERMISSION OF THE COPYRIGHT HOLDER.
  • In the future there will only be Content Marketing - Seth Godin
  • Where are the fish biting? Marketing’s Questions What tackle are they using? Is it more work then the size or value of the fish? Can we teach people to use the same principles in their own rivers? Do we have to compete with other fishermen? Why will we be more successful than anyone else? Sales Leadership’s Questions How do we motivate the fishermen? How many fishermen are the right number?