Sales, Sales Management, Sales Strategy

Strategy, Sales, & Sales Management

Strategy, Sales, Sales Management
B2B Sales Management 101
B2B Sales Strategy 101
B2B Sales Case Study: Groove
Sales & Strategy Reading List

B2B Sales Management 101 -- Harsh Reality

B2B Sales Management 101 – The Number “Quarteritis…”
“ The sun rises & sets on the quarter”

B2B Sales Management 101 – Sales Representatives
Sales Rep Profile
Personable, builds trust
High energy
Aggressive/”edge”
Street Smart (v. book-smart)
Listeners/nonverbal
Motivated by money
80-20 rule
Compensation
Base $90k - $100k
Commission $125k (plus draw)
0%-50% quota = x%; 50% -100% quota = 2x%; > quota = 3x%
Stock options – less important
President’s Club
Top reps’ pay > CEO’s
Measurable & Accountable – high turnover tolerated

B2B Sales Management 101 – Strategic Selling
Nuclear unit
SR, SE, Cnslt, Mgmt
Power Selling
Champions
Coaches
Economic Buyer
IT, LOB IT, LOB, Prchsg
Legal, Finance, BOD
Find Pain, Find $
Ask questions/listen/non-verbal

B2B Sales Management 101 – Predicting The Future PROSPECTS (Email, URL, Source, HI-IQ Email Nurture) LEADS (Phone #, Lead Conversion Event) NEW CUSTOMERS (CC# and Authorization) Satisfied CHI > 70 Unsatisfied CHI < 70 Marketing Sales Customer Service HubSpot HI-IQ SalesForce.com OPPORTUNITIES (Demo/Trial, 3 per day per rep) SalesForce.com SUSPECTS (HubSpot, WSG; PPC MVT)

B2B Sales Management – Predicting the Future The Funnel Visitors Prospects Leads Opts

B2B Sales Management 101 -- Predicting the Future The Forecast

B2B Sales Management 101 -- Other
Accounts Reviews
Recruiting (profile)
Territory Distribution
Compensation Plans
Sales Rep Development
Sales Process & methodology

B2B Sales Strategy 101 Segmentation = Profits 1 Total churn rate (not shown) is calculated as cancelled customers (all time) divided by total customers (all time). Monthly churn rate is total churn rate divided by average customer lifetime of 4.16 months All Customers Avg. Trans. < $3k Avg. Trans > $3k SMBs 28 108 VSBs 21 28 Total 185 Cancelled Customers Avg. Trans. < $3k Avg. Trans > $3k SMBs 3 7 VSBs 11 7 Total 28 Monthly Churn Rate 1 Avg. Trans. < $3k Avg. Trans > $3k SMBs 2.6 % 1.6 % VSBs 12.6 % 6.0 % Total 3.6 %

B2B Sales Strategy 101 Crossing the Chasm…

B2B Sales Strategy 101 Model Comparison Source: Rethinking the Sales Force ENTERPRISE CONSULTATIVE TRANSACTIONAL
Agenda setting
Boundaries blur- unclear who is selling and who is buying
Problem solving
Doing the deal
Nature of sale
Access to strategy
Access to influencers
Access to decision maker
Prerequisites for success
Trust – based
Business equals
Insider
Both parties change fundamentally
Benefits – based
Client-advisor
Cooperative
Cost - based
Buyer-seller
Confrontational
Nature of relationship
Strategic plan
Purchasing stream
Event
Time horizon
Platform fit
Values fit
Sustainability
Importance of problem
Solution fit
Price-performance tradeoffs
Price
Availability risk
Ease of acquisition
Key buyer concerns and decision criteria
High Strategic and/or cost importance
Limited substitutability
Differentiated
Customizable
Hidden Capabilities
Well Understood
Readily substitutable
Standard items
Product or service characteristics

B2B Sales Strategy 101 Reason for shift to consultative model Sales 5 Resource commitment needed for consultative selling Sales 4 Sales 3 Sales 2 Sales 1 $ Cost Source: Rethinking the Sales Force Sales 5 Sales 4 Sales 3 Sales 2 Sales 1 % Return 0%

B2B Sales Strategy 101 Consultative Model
“ Listening and gaining business understanding are more important selling skills than persuasion; creativity is more important than product knowledge.”
“ The only single ‘truth’ that seems to be holding true for all sales forces is that they have to create value for customers if they are to be successful. Just communicating the value inherent in their products isn’t enough.”
“ It’s a risky strategy in a consultative sales to go to a senior-level decision maker before thoroughly understanding the issues and problems where you can create value. Most good consultative salespeople will first do their homework by working with those influencers in the buying organization who have the best knowledge of the problems and opportunities where the selling organization hopes to create value.”
… Quotes from “Rethinking the Sales Force.” Neil Rackham & John DeVincentis

B2B Sales Case Study: Groove Networks P0: Evaluation P1: Validation P2: Initial Rollout P3: Enterprise Rollout REVENUE COST OF SALE

B2B Sales Case Study: Groove Networks 2 months 2-3 months 6 months ongoing P0: Educate P1: Validate P2: Initial Rollout P3: Enterprise Rollout SALES ACTIVITIES
IT call(s)
Orientation
LOB/LOB IT calls
Validation
2 Track Pilot Trial: - IT validation - LOB pain project
Implement seats & gather metrics
Penetrate new LOBs
Engage enterprise apps
Horizontal bus processes
Groove as standard desktop DNA
Integrate w/ Ent Apps
Groove broadly deployed and used throughout value chain
LOB Pain ID’d IT Champ Validation Process Pain Validated IT Validated $100k+ Multiple Pain/Lob IT Service Offer’g $500K+ MSLSA $1m/yr Every desktop

B2B Sales Case Study: Groove Networks Q1 (P)hase Movement
P1’s
Lowe $46K
ESP $50K
AMEX $40K
Mattel $35K
Intermec $22K
P2’s
HP Mktg $770K
OCPA $691K
Siemens $111K
SAIC $142K
Praxair $100K
Novartis $86k
VLH $522K
Army $154K
HP C&I $106K
KPMG $100K
P0’s
SPAWAR $18K
Hitachi $10K
CARE $7K
DuPont $7k
Verizon $6K
ServiceCo $16k

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Sales, Sales Management, Sales Strategy

by Brian Halligan on Jan 28, 2008

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