Complex Sales The challenges of managing complex sales Ashutosh Bijoor, March 04, 2008

Typical Complex Sales Process

The Complex Sales Pipeline Milestones Opportunities Funnel 6 3 8 7 2 1 Responsible Time 0 days 15 days 35 days 55 days 70 days M1 Lead Captured M2 Requirements Understood M3 Solution Proposed M4 Negotiation M5 Order Confirmed 6 3 4 5 8 7 2 1 M6 Order Lost 6 3 4 5 8 7 2 1 6 3 4 5 8 7 2 1 6 3 4 5 7 2 4 5 Sales Sales Sales Sales Sales

Stake Holders Top Management / Principals Sales Management Sales Executives Customer Support & Fulfillment Channel Partners / Distributors Customers

Top Management / Principals

Sales Management

Sales Executives

Customer Support & Fulfillment

Channel Partners / Distributors

Customers

Top Management / Principals Long sales cycles Low conversion ratio Scarcity of skills in sales team Commoditized products Un-predictable demand leading to high inventory cost and long lead times Speed up sales process Improve conversion ratio Better utilize available skills Enhance product portfolio and cross-selling Forecast demand centrally, based on direct / channel sales pipeline Centralize inventory and just-in-time distribution Challenges Needs

Long sales cycles

Low conversion ratio

Scarcity of skills in sales team

Commoditized products

Un-predictable demand leading to high inventory cost and long lead times

Speed up sales process

Improve conversion ratio

Better utilize available skills

Enhance product portfolio and cross-selling

Forecast demand centrally, based on direct / channel sales pipeline

Centralize inventory and just-in-time distribution

Direct Sales / Sales Management Large number of prospects High cost of sales Low revenue per customer Ineffective channel sales team Improve collaboration with channel partners to increase reach and reduce cost of sales Track movement of opportunities through pipeline to identify bottlenecks Provide on-time sales support to channels Challenges Needs

Large number of prospects

High cost of sales

Low revenue per customer

Ineffective channel sales team

Improve collaboration with channel partners to increase reach and reduce cost of sales

Track movement of opportunities through pipeline to identify bottlenecks

Provide on-time sales support to channels

Channel Partners / Distributors Not enough opportunities Unpredictable demand Long lead times for procurement from principal Work with principals to generate demand and qualify leads Share sales pipeline data with principals, allowing more accurate demand forecasts Just-in-time procurement facilitated by accurately forecasted centralized inventory Challenges Needs

Not enough opportunities

Unpredictable demand

Long lead times for procurement from principal

Work with principals to generate demand and qualify leads

Share sales pipeline data with principals, allowing more accurate demand forecasts

Just-in-time procurement facilitated by accurately forecasted centralized inventory

Support and Fulfillment Incomplete, inconsistent or un-viable order specifications High discounting Inappropriate fulfillment and credit terms Delayed collections Monitor sales offers for technical and commercial viability Take away responsibility of creating and configuring offers Provide online customer outstanding and credit viability information to sales Challenges Needs

Incomplete, inconsistent or un-viable order specifications

High discounting

Inappropriate fulfillment and credit terms

Delayed collections

Monitor sales offers for technical and commercial viability

Take away responsibility of creating and configuring offers

Provide online customer outstanding and credit viability information to sales

Customers / Business Partners Sales process of suppliers not matching buying process Unresponsive sales process Unavailability of requisite items in stock Long delivery times Engage with suppliers early in buying cycle Prioritize suppliers based on responsiveness Assign higher value to suppliers capable of on-time deliveries Provide online feedback of required delivery schedules Challenges Needs

Sales process of suppliers not matching buying process

Unresponsive sales process

Unavailability of requisite items in stock

Long delivery times

Engage with suppliers early in buying cycle

Prioritize suppliers based on responsiveness

Assign higher value to suppliers capable of on-time deliveries

Provide online feedback of required delivery schedules

Current Solution Options Spreadsheets Simple, easy to use mechanism of collecting sales information Ready-made Sales Automation System Comprehensive features starting from contact management, opportunity management and CRM

Spreadsheets

Simple, easy to use mechanism of collecting sales information

Ready-made Sales Automation System

Comprehensive features starting from contact management, opportunity management and CRM

Implementation Challenges Lack of user adoption Sales executives and channel partners are not amenable to reporting sales data Most implementations fail due to lack of adoption No direct gains in sales performance System use not directly translated into enhanced sales performance Users tend to view these systems as an obstacle to work Inappropriate metrics Sales metrics analyse past performance and statistical forecasts Lack of operational metrics that assist day-to-day decisions

Lack of user adoption

Sales executives and channel partners are not amenable to reporting sales data

Most implementations fail due to lack of adoption

No direct gains in sales performance

System use not directly translated into enhanced sales performance

Users tend to view these systems as an obstacle to work

Inappropriate metrics

Sales metrics analyse past performance and statistical forecasts

Lack of operational metrics that assist day-to-day decisions

Find out how On2Biz can help manage your complex sales http://on2.biz