Win. Grow. Social Sales. The Book. 3rd Edition.


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What if you could increase your win rate by 10%, 20% or 50% ?

The world of sales is changing: Information overload, buyer networks, social business and collaborative CRM are transforming the way we interact and engage with customers.

With «Social Sales», you can focus on what is really important: The people and social relationships behind the opportunity. It provides a fresh approach to master the complexities of B2B sales by capitalizing on the social capital of your company.

This book is targeted to sales, account, marketing and business managers applying «Social Sales» to hunt and farm new business.

The objective is to support sales teams to win strategic opportunities and grow within their target accounts.

If you believe, that people and relationships are the driving forces of sales success in your business, this book is designed for you.

Published in: Business, Technology

Win. Grow. Social Sales. The Book. 3rd Edition.

  1. 1. Win. Grow. Social Sales. rd The Book. 3 Edition. Leverage the Power ofCollaboration, Social Networks and CRM to Hunt and Farm new Business. Andreas Uthmann
  2. 2. 
  3. 3. Win.Grow.Social Sales. The Book. 3rd Edition.
  4. 4.
  5. 5. Win.Grow.Social Sales. The Book. 3rd Edition. Leverage the Power ofCollaboration, Social Networks and CRM to Hunt and Farm new Business. Andreas Uthmann
  6. 6. Copyright © 2012 by Andreas UthmannThird, revised and enhanced edition.Production & PublishingBooks on Demand GmbH,Norderstedt, Germany.ISBN 9783842382435
  7. 7. Inspired and contributed by Alfred Höllwarth, Andrea Luder, AndreeaSalbatecu, Andrei Postoiu, Brian Rüeger, Brian Solis, Claudia Meier-Biedermann, Daniel Haas, Dominik Steiner, Dr. Dorian Selz, Ed Thompson,Fred Kessler, Guy Loretan, Hakan Waerdell, Heinz Gras, Jean-PierreVuilleumier, Jenny Sussin, Jim Pulcrano, Jochen Gross, László István Etesi,Laura Ramos, Livia Scapin, Luc Galoppin, Prof. Dr. Manfred Vogel, MarkMöbius, Martin Wyttenbach, Dr. Michael Geke, Milan Vopolka, NiteshBansal, Patrick De Boer, Patrick Stakenas, Prof. Dr. Peter Gloor, Dr. PiusKüng, Renaud Richardet, Reto Graber, Sarah Hauser, Tobias Rohrbach, TomSearcy, Prof. Dr. Ulrik Brandes, Wolfgang Vogt.
  8. 8. Special thanks to the Commission for Technology & Innovation (CTI) of the Swiss Federal Department of Economic Affairs (FDEA)
  9. 9. Social Sales. The Book.«Social Selling is a business strategy that mutually benefits buyers and sellers by fostering meaningful engagement throughout the buying and selling process to generate efficiency, value and relationships.» InsideView2
  10. 10. (About.)About. 3
  11. 11. Social Sales. The Book. «If I had more time, I would write you a shorter letter.» Johann Wolfgang von Goethe, 17674
  12. 12. (About.)Kiss.With the rise of the Internet, the way we manage and consume informationhas dramatically changed. In this book, we are reflecting this by keeping itshort and simple. Some of the underlying concepts we are introducing dofill entire bookshelves. But the idea of this book is to compress the keymessages in a few simple sentences and no more than 5 bullet points.On top, we do explain and underline complex models by using side notes,comments and quotes that will be regularly updated.As a result, you are holding an interactive compendium in your hands, theencyclopedia of Social Sales. 5
  13. 13. Social Sales. The Book.Why Social Sales?What if you could increase your win rate by 10%, 20% or even 50%?No-one likes to loose. But we all do. And there are good excuses like price,features and our administrative workload. We also know that providing adiscount is not selling. But yes, we all do. And we all remember situationsfinding ourselves talking to the wrong audience…The world of sales is changing: Information overload, buyer networks, socialbusiness and collaborative CRM are transforming the way we interact andengage with customers.With «Social Sales», we can focus on what is really important: The peopleand social relationships behind the opportunity.This book is designed for the visionaries and game changers applying«Social Sales» to hunt and farm new business.It is targeted to sales, account, marketing and business managers who wantto invest in their social capital in order to succeed in relationship-drivensales environments.The objective is to support sales teams to win strategic opportunities andgrow within their target accounts.6
  14. 14. (About.)StorylineThe content of this book is structured into 5 chapters. Most topics arepresented in a closed way, so you can read it from right to left or back tofront depending on your interest. To breathe the full story we recommendyou to start with the background presented in the first chapters.I. People BusinessSales is about people. Period?II. BuysideNo selling without buying. The customer perspective.III. SalessideB2B sales can be very challenging. In this chapter, we will summarize someof the most popular concepts, processes and methodologies for you.IV. Social BusinessThe building blocks of social businesses: Thought leadership on socialmedia, social networks and collaboration.V. Social SalesHow does a SocialSalesMap look like? What is a SocialSalesIndex? And howcan a SocialSalesMatrix help you in defining the most effective action plan?Bonus Material 7
  15. 15. Social Sales. The Book.Sales is about people. Period?The world of sales is changing dramatically. Information overload. Buyernetworks. Social Business. Collaborative CRM. What strategic options do wehave to differentiate in the marketplace and grow our sales?8
  16. 16. I. People BusinessI. People Business 9
  17. 17. Social Sales. The Book. «Executives need to push their organizations toward becoming fully networked enterprises.»«A new class of company is emerging—one that uses collaborative Web 2.0technologies intensively to connect the internal efforts of employees and toextend the organization’s reach to customers, partners, and suppliers. Wecall this new kind of company the networked enterprise. Results from ouranalysis of proprietary survey data show that the Web 2.0 use of thesecompanies is significantly improving their reported performance. In fact,our data show that fully networked enterprises are not only more likely tobe market leaders or to be gaining market share but also use managementpractices that lead to margins higher than those of companies using theWeb in more limited ways.»McKinsey & Company,“The rise of the networked enterprise: Web 2.0 finds its payday.”,April 2011.10
  18. 18. I. People BusinessManaging ComplexityThe world of sales is changing dramatically. Driven by internationalizationand latest information technologies, B2B sales has become more complexthan ever before.1. Buyer NetworksValue chains are being transformed into networks. Hierarchies have turnedinto collaborative communities and virtual teamwork further acceleratesdistributed decision-making. As a result, buyer decision models are beingfundamentally transformed.2. Social BusinessOn top, social media, networks and business software are completelychanging the way we communicate and engage with people, internally aswell as externally. Gathering information about sellers and buyers in real-time has never been easier providing threats and opportunities at the sametime.The future success of sales organizations depends on how well they areable to adapt to the above changes in the marketplace. It also means thatselling roles will be changing.Are you ready? 11
  19. 19. Social Sales. The Book. «A wealth of information creates a poverty of attention.» Herbert A. Simon, Social Scientist, Nobel Prize in Economics12
  20. 20. I. People BusinessInformation OverloadWe are living and working in an information-driven world. Humanknowledge is multiplying within years. So is the number and availability ofinformation. Sales and marketing teams are in a constant fight for attentionfrom the customer.1. Content is KingIt’s very easy to find information on the Internet today, so sales teams canexpect to meet well-informed customers in most cases. The challenge is toprovide extra value by superior content that relates to the specificcustomer, brings in personal opinions and experiences and filters out thenoise.2. AirtimeEvery touchpoint is an opportunity to sell. Not just a product or solution,but your values, your brand, your company. Make sure you make use of thisattention with a nice message or extra value. Your customer might forgetthe last marketing brochure but she will always remember your excellentservice when she had a machine breakdown.3. RelationshipNaturally, the better and more intensive the relationship is, the higher thelikelihood of listening. So investing into good personal relationships willalready pay off very early in the sales process. 13
  21. 21. Social Sales. The Book. «It is taught in kindergarten that sharing is a nice thing to do. The same rule applies in business, at least when it comes to the type of CRM known as collaborative CRM.»«Collaborative CRM aims to get various departments within a business,such as sales, technical support and marketing, to share the usefulinformation that they collect from interactions with customers. Feedbackfrom a tech-support center, for example, could be used to inform marketingstaffers about specific services and features requested by customers.Collaborative CRMs ultimate goal is to use information collected from alldepartments to improve the quality of customer service, and, as a result,increase customer satisfaction and loyalty.»InsideCRM“Get it together with collaborative CRM”,November 2007.14
  22. 22. I. People BusinessThe evolution of CRM.In the past, customer relationship management (CRM) was mainly used tostreamline processes and running detailed analysis and reports. By addingcollaborative aspects, CRM gets a whole new dimension.1. TransactionalRunning marketing and sales operations efficiently requires a high level ofprocess optimization. This is especially true for service organizations or inclassical product sales using push technologies.2. AnalyticalAnalyzing customers, regions and SKU’s left and right is the fundament ofdata-driven, intelligent sales. Specific reports can be used to segmentmarkets, identify target accounts and maximize conversion rates.3. CollaborativeWorking together on projects and opportunities leveraging the power ofsocial technologies, can also help to achieve targets, not just to report onthem.Collaboration is not necessarily new. Nor is CRM. But making CRMcollaborative is a great opportunity to maximize the outcome of salesinvestments. At the end, it is about effectiveness, not just efficiency. 15
  23. 23. Social Sales. The Book. «If you dont have a competitive advantage, dont compete.» Jack Welch, Former CEO, General Electric16
  24. 24. I. People BusinessCompetitive DifferentiationThere is three ways for companies to create competitive advantages.1. Product LeadershipIt means delivering superior products, solutions and services by investinginto innovation, design & technology. Apple and Tetra Pak are goodexamples.2. Operational ExcellenceIt is about optimizing processes to achieve advantages in terms of time, costand quality. Dell aims to lead the PC business regarding process efficiency.General Electric (GE) has invested heavily into six sigma to become qualityleader.3. Customer IntimacyInvesting into your social capital to build intimate customer relationships isthe most rewarding strategy in the majority of project and solutionbusinesses. By better understanding the needs and wants of yourcustomers, you will enjoy a higher win rate, achieve a price premium andmore repeat business. IBM and McKinsey are good benchmarks in thiscategory.Social Sales is a way of applying operational excellence in selling to achievecustomer intimacy.What competitive strategy do you have? 17
  25. 25. Social Sales. The Book. «People don‘t care how much you know, until they know how much you care.» Theodore Roosevelt, 26th President of the United States18
  26. 26. I. People BusinessSales is about people.In theory, business decisions are made in a very analytical, un-emotionalway. This might be true in some cases, but parts of the analytics are softdecision-criteria that can make a real difference.1. TrustCustomers want to minimize risk. Successful sales is about being trustedand viewed as a respectable as well as credible partner.2. RelationshipPeople buy from people they like. Having a positive relationship meansaccess to the right information and having the opportunity to interact.Relationship matters.3. Individual NeedsUnderstanding the career ambitions, agenda and personal interests ofpeople is equally important then the business case itself. The more you canstep up and take responsibility for the individual needs and wants, thehigher the value you create, the higher the premium you get.It doesn’t matter whether you are selling a product frame agreement, aservice project or a technical solution. The best business proposal is uselessif you cannot identify, engage and manage the right persons effectively. 19
  27. 27. Social Sales. The Book. «What if you added more reps?»What if you increased investments in lead generation to create moreopportunities? What if you reduced the no decision rate by a fewpercentage points/or increased you win rates against competitors? Howabout figuring out how to remove some of the admin burden from yoursales people so they have more time to actually sell?CSO Insights,“Revenue 2012: Making it Happen Versus Hoping it Happens”,January 2012.20
  28. 28. I. People BusinessGrowth OptionsDo you plan to increase sales this year? Let’s assume for a second thatdemand, offering and competition will be stable, what options do you haveto grow your sales?1. Increase SalesforceDepending on your market coverage, hiring new sales employees shouldgive you the capacity to acquire additional business, directly or indirectly.The challenge is to train and coach them effectively, keeping lead times inmind. This is even more true for entering new markets.2. Increase Sales EfficiencyIn B2B, salespeople often spend some 30% of their time on administrativetasks. Reducing the admin effort and/or offloading internal activities tosales assistants or operation centers, will free time for direct sales activitieslike customer calls and other touches. You will also see positive impact onthe average cost of sales (COS).3. Increase Sales EffectivenessKeep the team, but increase the outcome (win rate) by better customerengagement. Social Sales aims to help you achieve more with the sameresources by extending and capitalizing on your social relationships.Where do you see the highest impact? What’s the best mix for yourbusiness? 21
  29. 29. Social Sales. The Book.No selling without buying.Before jumping into the sales discussions, let’s look on it from the customerperspective first. How are complex buying decisions being made? How doesa typical buying cycle look like? Which roles are involved? What impactdoes the personality have on individual decision-making? And how aresuppliers being managed most effectively?22
  30. 30. II. Buyside.II. Buyside 23
  31. 31. Social Sales. The Book.«The shift from hierarchical leadership to tribal leadershipmakes it clear that social architectures don’t need control; they need trust.»«As we are witnessing the end of the Industrial Revolution, we discover thatleadership and workplace dynamics are no longer hierarchical. That game isover. We need to take into account the fact that the internet isfundamentally changing the DNA of workplace dynamics.»Luc Galoppin,“Social Architecture, a Manifesto”January 2011.24
  32. 32. II. Buyside.Buying Decision ModelIn the past, decisions have been made in silos and by Patriarchs. Today,extensive collaboration across complex buyer networks is reality. We candifferentiate the following buying decision models:1. HierarchicalClassical top-down approach. Decisions are being prepared by the Indiansand decided by the chiefs.2. DecentralizedLocal organizations are entitled to decide based on their individual needs.3. CollaborativeDiverse, multidisciplinary and open teams are working together to find thebest solution.4. Buyer NetworksExternal influencers like partners, suppliers, experts and institutions areactively integrated into the decision process.There is a clear downshift, with dramatic impact on any sales organization.We have to learn how to effectively manage and succeed as part ofcomplex value networks. 25
  33. 33. Social Sales. The Book.The Buying CycleToday’s buying journey consists of a mix of interactions across differentchannels and networks. However, the traditional buying cycle still appliesbehind the scenes.1. AwarenessAn initial stimulus let the discussion start. This could be an internal problemescalation, a marketing interaction or just a coincidental meeting.2. ConsiderationDepending on the potential, the customer forms a first buying intention andactively gathers information to satisfy its needs. Typically, at this point, youwill have the first sales meeting.3. PreferenceA detailed analysis will let the customer narrow down different alternatives.Often, a structured RFQ process is being used. At the end, there should be apreliminary decision.4. ActionSo if you don’t mess up in final negotiations or run into unacceptablecontractual terms, the purchase is being formalized.5. LoyaltyThere’s a great opportunity to intensify the relationship during delivery andif maintained well, trigger re-purchases, up- and cross-sell business.26
  34. 34. II. Buyside.ZMOTWhat has really changed is that the customer now has the opportunity todo intensive research by herself using search engines and social media,without and before talking to a supplier. That is, what Google calls the“Zero Moment of Truth” (ZMOT).1. StimulusThe awareness phase.2. ZMOTThe customer researches potential solutions, compares products andprices, follows discussions and reads reviews. Online.3. ShelfThe first touchpoint with the potential product, service or solution. In theB2B world, this might be your sales presentation.4. ExperienceThe second, “real” point of truth. Does the solution keep its promises whenusing?As a result, you will meet a better informed customer who often alreadyhas a preference in mind before talking to you. So the best way is to be thestimulus yourself to trigger the direction the customer takes. And to workwith existing customers to provide positive online reviews and case studiesto positively influence the ZMOT. 27
  35. 35. Social Sales. The Book.Buying Criteria.Interestingly, buying criteria are traditionally changing along the buyingjourney.1. NeedIdentifying a business issue and analyzing its root cause triggers the start ofa new buying process. The need is the most important subject of thediscussion.2. SolutionSecond, we can look into alternative solutions addressing it. What are thepros and cons?3. CostIf the solution and its related value are understood, the buyer intends tominimize costs in order to improve the ROI. Often, the purchasedepartment comes into play.4. RiskAt the end of the buying cycle, risk is the dominant factor. So if the buyerstarts to ask the “risk” questions, you are coming to an end. The businesscase is being completed.28
  36. 36. II. Buyside.How are group decisions being made?According to studies of behavioral science, the interaction of groups indecision-making can be structured into different phases.1. OrientationThis is the warm-up phase, where people start to meet and interact witheach other.2. ConflictOnce the group is being formed, there’s a healthy phase of arguing anddiscussing, not just on facts, but also on positions.3. EmergenceDifferent views and opinions are consolidated into a common picture.4. ReinforcementOnce the decision is being made, members will try to defend it, internally aswell as externally.Most probably you will recognize above behaviors in most buying decisionsof your customers. But let’s also keep in mind that decisions are rarelybeing made in isolated groups, but in complex networks. For the good andthe bad. 29
  37. 37. Social Sales. The Book.RolesToday, roles are more important than functions. It’s the hat(s) thatsomeone has in a project, not the imprint on her business card, whichmakes the difference.1. Budget OwnerThe ones sitting on the money to fund the exercise. In enterprises, budgetowners might be very different from the ones receiving the value.2. Contract SignatoryUsually, two persons with power of procuration will put their signatureunder the final contract.3. Opportunity OwnerWho is having the lead on solving the problem on customer side? Who isdriving the deal from the partner and from our side?4. Proposal LeadThe person running the RFP process. In our team, the member responsiblefor preparing the bid.5. Subject Matter ExpertSpecialists or trusted advisors that do the technical or functionalassessment or build the vision.6. Ultimate AuthorityWho is doing the final, final go/no go decision?30
  38. 38. II. Buyside.Psychology - The People Side of BusinessAt the end of the day, we are selling to people, not companies.According to psychology, the personality of every person can be classifiedinto a mixture of 3 main structures.1. RedThis is the emotional, dominant, dynamic side of life. Red personalities loveto win and would like you to go the extra mile.2. GreenGreen characters are very communicative, nice and relaxed persons. Theyvalue harmony and personal relationships.3. BlueBlue signals fact-based, analytical and serious behavior. Blue charactersneed to be convinced with arguments and strong cases.Understanding the characteristics, needs and interests of people is the firststep of finding the right sales approach to turn challengers into champions. 31
  39. 39. Social Sales. The Book.Cognitive StylesAnother way, to look at it, is the Myers-Briggs Type Indicator (MBTI). Itcaptures a person’s behavior across four polarizing dimensions.1. Extroversion (E) vs. Introversion (I)This parameter describes the general attitude of a person, which can beused to engage with her.2. Sensing (S) vs. Intuition (N)This pair is capturing the irrational, perceiving function. This attitude ismainly used while gathering information.3. Thinking (T) vs. Feeling (F)This behavior is called the rational or judging function. It is especiallyimportant in decision making. A thinker will seek for a reasonable, process-oriented and analytical approach. Instead, a feeler will try to balance theinterests, seek consensus and trust her instinct.4. Judgment (J) vs. Perception (P)The lifestyle set analyzes, whether the perceiving or judging functions aredominating. Is the person rather strong in preparing the story or in closingthe discussions?It can also be applied to explain cross-cultural differences in decision-making.32
  40. 40. II. Buyside.Supplier Relationship Management (SRM)The idea of effective supplier relationship management (SRM) is to segmentthe entire portfolio into manageable groups depending on factors likevolume, value and variability. By using ABC analysis and differentcollaboration models within each segment, the buyer can make best use ofits resources as well as the supplier capabilities.A StrategicYou are trusted and respected to contribute to the long-term businessobjectives of the buyer. You are expected to create value by effectivecollaboration beyond delivery.B TacticalYou might still sell significant volumes with certain interdependencies,however your contribution is limited to satisfy a specific demand. There islittle influence on the specification or strategic direction of the customer.C TransactionalYou are seen as non-critical by the buyer. Perceived differentiation andswitching costs are low. 33
  41. 41. Social Sales. The Book.Supplier SegmentationAnother way to segment suppliers is by defining the role they play incontributing to the buyer’s business.1. Approved VendorYou are selling a good product or service at attractive conditions.2. Preferred SupplierYou are a supplier of choice in certain product categories. You have a basicunderstanding about the application areas and use cases of your products.3. Strategic PartnerYou are solving specific problems for the customer. The focus of thediscussions shifts from the functional level to the business needs. You areinvolved early in the decision process.4. Trusted AdvisorDue to your excellent understanding of the customer’s industry andbusiness, you have the luxury to influence the strategic direction of thecustomer on the executive level.Not every company needs to and will move up the ladder. Vice versa, mostcompanies will find themselves at the vendor levels with most customers.However, if you are in the solution business, the best way to increase yourshare of wallet and keep attractive margins is to become a trusted advisorin the long run.34
  42. 42. II. Buyside. 35
  43. 43. Social Sales. The Book.The Art and Science of SellingB2B sales can be very challenging. It requires broad knowledge, practicalexperience and especially senior management skills. In this chapter, we willsummarize some of the most popular concepts, processes andmethodologies for you. The topics range from qualifying opportunities,increasing forecast accuracy, getting the most out of a sales meeting up tomanaging risks and lifetime value. Depending on your specific salesenvironment, not all of it will apply to you, but it’s good to keep theconcepts in mind to stay on top of your sales opportunities at any point intime.36
  44. 44. III. Salesside.III. Salesside 37
  45. 45. Social Sales. The Book.The Sales JourneySales can be positively or negatively influenced at many points during abuying journey. The key challenge is to ensure consistency of messages andservice levels across all touchpoints, independently of department andfunction.1. Attention – MarketingIt’s the responsibility of the marketing department to provide strongmessages to the market, the media, partners and prospective buyers tocreate initial appetite.2. Promise – SalesOnce a prospect is being qualified, the sales team takes the lead to analyzethe individual buyer needs, build a relationship and work out a matchingproposal.3. Delivery - OperationsFulfillment is in charge in delivering against customer expectations createdat earlier stages of the cycle.4. Loyalty – ServiceAfter customer acceptance, the service teams ensure that the customergets the most value throughout the lifetime of the product or solution.This setup not just calls for intensive collaboration across the entireenterprise but also shows that selling is within the responsibility of thewhole organization, not just the sales department. In fact, every employeeis also a salesperson.38
  46. 46. III. Salesside.Lead ManagementSales starts with a lead. Effective lead management is important to fill yoursales pipeline with a continuous flow of new opportunities.1. Lead IdentificationCapturing leads is like fishing in a pool of prospects for those who are mostreceptive and hungry for your offering. Either they need to show a certainlevel of interest or have a very high sales potential.2. Lead NurturingBy engaging in a value-adding dialogue between prospect and vendor, alead can be advanced or disqualified at an early stage.3. Lead ScoringWhen a lead reaches a certain state, i.e. qualifies against the criteria, itturns into a sales opportunity and becomes part of your sales pipeline.To avoid the classical mismatch between sales and marketing, it isimportant that both teams agree on the way leads are being managed andqualified. Depending on your type of business, responsibilities can varysignificantly. But it is not important who is in charge nor when the handoveris taking place, but there is clear responsibility at any point in time. 39
  47. 47. Social Sales. The Book.Sales StrategiesThere are 2 fundamental sales strategies. Farmers will earn a pricepremium, while hunters will keep your cost-of-sales low.1. FarmingDeveloping a target account strategically can be a challenging and time-consuming task. The fruits are sustainable relationships and strategicinsights. If you believe, that long-term partnerships are crucial to yourbusiness, seed.2. HuntingHunters are focusing on low-hanging fruits instead. The goal is not tobecome a trusted advisor, but to win that particular opportunity and thenmove on to the next. It can be most effective to work with B and C accountsor markets.Depending how relationship-intensive your business or industry is, you willmeet more farmers or hunters. But most often, you will see a mix of bothworking in parallel.40
  48. 48. III. Salesside.Sales StagesWithout process, you simply can’t manage your sales activities strategically.Following a structured process, will enable effective planning, collaborationand especially resource allocation.1. DiscoveryA potential sales opportunity is being identified.2. QualificationDoes the opportunity meet our bid criteria?3. Pre-ProposalAnalyzing key needs by active listening. Here, you can take the mostinfluence shaping the customer needs and wants.4. ProposalIn close collaboration with the customer and partners, a formal offer isbeing provided.5. NegotiationFinal terms and conditions are being agreed upon.6. AwardThe contract is being signed. Start of delivery.In general, the earlier the interaction with the customer and partners, thebetter, so you cannot just maximize your influence but also come to anearly go/no go decision. 41
  49. 49. Social Sales. The Book. «As a rule of thumb,orders always take 2 times longer and are 1/2 the volume.» Felix Mayer, CEO, Sensirion AG.42
  50. 50. III. Salesside.ForecastingAccurate forecasting is not rocket science, if you have a good pipelinemanagement in place.1. Opportunity ProbabilityWhat is the likelihood of the opportunity to be awarded? Are thequalification criteria fulfilled? Will there be any organizational changes? Isthe business climate stable?2. Likelihood to WinAssuming the project will be awarded, what are our chances to wincompared to the competition? How many vendors are involved at thedifferent buying stages? Do we have good or superior relationships and/orvalue propositions?3. Weighted ForecastAn opportunity of 1mio with a probability of 80% and a 50% likelihood ofwinning makes up 400,000 in the books. Simple, but effective.4. Weighted ValueOn top you might want to consider the strategic value of entering newmarkets, cracking a reference account or winning a pilot project. Whateverfactor you apply, make sure it is also reflected in the compensation plan, sothe sales team matches their level of effort.The more you automate the process, the more time for selling. Tying itstrictly to the sales stages and their qualification criteria will leave no roomfor interpretation. 43
  51. 51. Social Sales. The Book.BANTAsking the BANT questions at an early stage ensures to focus our limitedresources on the “real” opportunities.1. BudgetIs the potential funding of the deal secured? Does the sponsor have enoughcash to pay for the total expenses?2. AuthorityDo we have access to the “real” decision-makers? Can we leverage anydirect or indirect relationships to the person in charge?3. NeedDoes the customer have a latent or explicit need? Is there a problem to besolved?4. TimelineIs there a clear timeframe to resolve the problem? Do you feel a certainsense of urgency? Has the customer set any milestones for decision-making?Yes, we have a qualified opportunity. So there is real demand. But what isour chance of winning?44
  52. 52. III. Salesside.AIDAClassical sales pitches follow the AIDA principle.1. AttentionEntry question, joke or story. “Did you know that SuperCompany doubledtheir win rate by engaging in Social Sales?”2. InterestFacts. Facts. Facts. What’s the problem? What’s the solution? What are thekey features and benefits?3. DesireExplain the value proposition. Potential impact. Reason-to-buy. Proof-Points. Why now?4. ActionGet a specific deliverable or commitment from the customer side. Nextsteps?While a lot has changed since the introduction of solution selling concepts,there still might be moments within the sales process where it is highlyeffective to follow the AIDA principle.Just think of your next proposal presentation. 45
  53. 53. Social Sales. The Book. «People love to buy. But they hate to feel being sold to.» Miller Heiman.46
  54. 54. III. Salesside.Solution SellingSolution selling is complex in practice, but simple in theory.1. Identify ProblemAre there any pain points the customer experiences? Can we pinpoint theroot cause? And what’s the impact for her business?2. NeedA problem turns into a need if the customer is prepared to fix it.3. SolutionThere are many ways of satisfying a specific need. The challenge is to helpthe buyer build a vision for a solution, which outbeats alternatives.4. ValueThe best solution will remain on shelve, unless we can help the buyer tojustify the costs and risks associated. If we have a superior valueproposition, it’s time to put it on the table now.The tricky thing is to make the buyer feel being in full control throughoutthe process and help her to make a smart decision by really understandingher specific needs. 47
  55. 55. Social Sales. The Book.Value TreeLarger investments will often require a business case behind. The better weunderstand and help to assess the value and impact of the buying decisionon the customer’s performance, the higher our likelihood of winning. Thevalue tree is a nice model in showing the ROI case in a structured way.1. RevenuesHow can we contribute to the growth objectives of our customers? Howcan we help her sell more, more effectively?2. ProfitabilityWhat does our product or solution add to the bottom line of ourcustomers? How can we make her save costs or make her more efficient?3. InvestmentAnd what kind of financial effort does it take to introduce the changesrequired? And what does it cost to operate it?Please check the bonus material for a more detailed example of a valuetree, used to quantify the business case of CRM investments.48
  56. 56. III. Salesside.Managing RisksLife is about risks, especially sales life. At the end of the buying cycle, riskbecomes the most important decision criteria for the buyer, so we have thechance to positively influence the decision.In quantitative risk analysis, the following parameters are being used toprioritize and decide whether to enter a specific risk or mitigate.1. ProbabilityWhat’s the likelihood of a specific event to occur?2. ImpactIn case the event happens, what is the magnitude of the potential loss?3. EffortWhat’s the cost of mitigating the risk? In case of uncertainty due to lack ofinformation, it can be rather low. But sometimes a complex proof-of-concept or contingency plan might be needed to convince the customer.At the end, probability times impact minus effort gives the customer anidea whether a possible mitigation would see a positive ROI or not. 49
  57. 57. Social Sales. The Book.Sales KPIWhat you can’t measure, you can’t manage. Using the most appropriatesales KPI for your business will help you to take your sales to the next level.1. Response RateFor any sales and marketing campaign, how many contacts from the targetcommunity make use of the call-to-action, e.g. visiting the landing page,ordering a sample or requesting a service?2. Conversion RateIt tells us how much effort it takes to transfer a visitor, contact or lead intoa qualified opportunity.3. Bid RateFrom all the requests we receive, in what percentage of potential salesvolume have we made an offer?4. Hit RateFrom all offers made, what volume percentage have we won? Since it alsoincludes cancelled opportunities, it tells us whether we have put the effortson the right place.5. Win RateMeasured against the volume of awarded opportunities, what percentagedid we finally win against competition?50
  58. 58. III. Salesside.Customer SatisfactionIn most businesses, the typical sales effort for keeping existing customers isjust 10-20% of winning new ones. Increasing customer satisfaction andstimulating cross- and upselling should be a priority for every sales team.1. Repurchase RateThe repurchase rate is a good indicator for how satisfied new customers areand whether your products, solutions and services have met theirexpectations.2. Retention RateManaged well, the renewal of service contracts or frame agreements is agreat opportunity to ensure a constant revenue stream from existingcustomers.3. Net Promoter Score (NPS)With NPS, you can measure and compare what percentage of customerswill be very likely to recommend your product, service or solution to afriend or colleague (promoters) versus the unlikely ones (detractors). Thereis a direct correlation between NPS and company growth.4. Lifetime ValueWhat’s the average contribution a new customer of a specific type bringsthroughout the product/solution lifecycle? In other words: What’s thecross- and upsell potential for new customers? For many investment goodslike machinery or software, the service business exceeds the new businessby factor 2 or more. This figure tells you how aggressive you can be inacquiring new customers. 51
  59. 59. Social Sales. The Book.Sales ProfilesAccording to the Corporate Executive Board, we can differentiate sales repsinto 5 profiles.1. The Hard WorkerBy maximizing the number of activities, calls and visits, hard workers arepushing the business forward.2. The Lone WolfThey are taking full ownership by hunting new business by themselves withvery little internal collaboration.3. The Problem SolverConsultants put the needs of the customers first.4. The Relationship BuilderThis profile invests into the social capital by developing strong personal andprofessional relationships.5. The ChallengerThe challenger is uncovering unidentified opportunities and hiddenproblems by critically questioning the customer.According to the research, salespeople can be performing well across allprofiles. However, challenging the customer seems to be a behavior thatyields positive return, but also requires a healthy working relationship ofbeing a trusted advisor to the customer.52
  60. 60. III. Salesside.Top5 Sales QuestionsQuestions are the answers. Here are the top 5 qualification questions.1. Why?Is there a specific customer need?2. What?Do we have a competitive solution to address the problem?3. Who?Do we know the key players in the buyer network?4. How?Do we have a good sales strategy and action plan to win?5. When?Is the timing right? When will the existing contract expire or when does theexisting equipment need to be replaced? 53
  61. 61. Social Sales. The Book.The building blocks of social businesses.The social media revolution is still very young but has fundamentallychanged the way we communicate and exchange information, forindividuals and businesses alike. We are still in the process of learning howto utilize social communities and networks most effectively. However, it is apleasure to present some of the thought leadership on social media, socialnetworks and collaboration in the following. Today, we cannot imagine acompany without email or Internet presence. In the future, there will be nocompany without social media engagement and social collaboration, notjust related to marketing and sales.54
  62. 62. IV. Social Business.IV. Social Business 55
  63. 63. Social Sales. The Book. «As the world becomes more instrumented, interconnected and intelligent and the populationcontinues to embrace social computing, today’s enterprises face the dawn of a new era – The era of the Social Business.»«Just as the Internet changed the marketplace forever, the integration ofsocial computing into enterprise design represents another enormous shiftin the landscape. Organizations that successfully transform into a SocialBusiness can potentially reap great benefits – among them the ability todeepen customer relationships, drive operational efficiencies and optimizethe workforce.»IBM Corporation,“The Social Business - Advent of a new age”,February 2011.56
  64. 64. IV. Social Business.Social Media OpportunitiesWhether in sales, marketing or service, providing a great customerexperience also means making effective use of social networks and media.1. ListenThe first step of every social media engagement is to understand thedifferent channels, conversations and opportunities by effective SocialMedia Monitoring (SMM) and Analysis.2. EngageProviding interactive support is a great way to collaborate with existing andpotential customers alike. Technical communities can build the first level oftrust required for future touchpoints.3. PromoteSocial media marketing is the art of using social media channels to increasemarketing reach and awareness.4. LearnFinally, social media can be used to co-innovate with customers andpartners by crowdsourcing ideas and continuously gathering marketfeedback. 57
  65. 65. Social Sales. The Book. «Social Media puts Buyers, not Marketers in Control.» Laura Ramos, Forrester58
  66. 66. IV. Social Business.Social Media MarketingSocial media enables individual, targeted marketing responses along thecustomer decision journey. McKinsey differentiates the social mediamarketing landscape into the following categories.1. MonitorUsing social channels to identify trends and gain incremental marketinsights for effective brand management.2. RespondReply to customers by effective crisis management or customer service.3. AmplifyLeverage the power of referrals and recommendations, fosteringcommunities and brand advocacies.4. LeadActively manage changes in sentiment or behavior by driving brand contentawareness and product launches, providing targeted deals and offers aswell as using customer input. 59
  67. 67. Social Sales. The Book.Social AnalyticsOne of the huge advantages of interacting on social networks is that itbecomes fully measurable.1. Sentiment AnalysisWe can measure brand awareness and reputation by clustering the tonalityof posts in positive, negative or neutral mentions.2. Social ReachThe community of fans, followers and group members across the differentplatforms is an indicator on how far we can potentially spread a message.3. Social EngagementFinally, we can measure the effectiveness of sales and marketing activitiesby analyzing the social feedback through likes, shares, posts and (re)tweets.4. Demand GenerationWouldn’t it be also nice to know how many of our contacts, leads andopportunities have been originated from social interactions at first?60
  68. 68. IV. Social Business.POEMThe Paid, Owned, Earned Media (POEM) framework is a powerful tool tounderstand the new media environment.1. OwnedThe good thing with owned content is that you have full control of it, mightit be your websites, online stores, apps, newsletters or social networkprofiles. Here, you can maintain relationships and stimulate cross- andupselling.2. PaidBanner ads or paid search engine marketing can be a great source toincrease awareness and generate traffic. While response rates aredeclining, it can still provide the required scalability to generate new salesleads.3. EarnedObviously, the most credible form of content are external comments, likes,shares, forum entries, blog posts or other forms of word-of-mouth and viralmarketing. Establishing a strong community of net promoters is fuel foryour sales engine.While the roles of the different media types are very different for sales andmarketing alike, synchronized well, they all play together to help youachieve your overall business goals. 61
  69. 69. Social Sales. The Book.90-9-1 PrincipleIn Internet communities, forums and social networks we can see a largeparticipation inequality, described by the 90-9-1 rule.1. ReadersA large majority (90%) of users view content without contributing.2. ContributorsSome 9% of users edit or modify content.3. CreatorsBut only 1% of users create new content.While this is not necessarily surprising, it is important to keep in mind whenusing social business software for sales and marketing purposes.62
  70. 70. IV. Social Business.Social AdoptionLikewise, Forrester classifies the social media audience into 6 groups basedon their adoption levels.1. CreatorsThey create and publish social media content in blogs, posts and/or articles.2. CriticsCritics post reviews, recommendations, discuss in forums and leavecomments.3. CollectorsCollectors mainly consume info but also tag and vote content.4. JoinersJoiners visit networks and own and maintain social profiles.5. SpectatorsSpectators read, watch and listen to social media content.6. InactivesInactives do not use social media at all. 63
  71. 71. Social Sales. The Book. «Social CRM is a business strategy that generates opportunities for sales, marketing and customer service, while also benefiting cloud-based communities.»«Social CRM applications need to be far more customer-centric than moretraditional CRM applications. Without benefits for the customer,communities and social networks die, resulting in no benefits to theorganization using the social CRM applications. To be successful with socialCRM, organizations need to be much less focused on how an organizationcan manage the customer, and much more focused on how the customercan manage the relationship.»Gartner Group,“Magic Quadrant for Social CRM”,July 2011.64
  72. 72. IV. Social Business.Social CRMAlready today, every salesperson, marketeer and service manager can makeeffective use of social media. Moving forward, there will be no CRM servicewithout reaching out into social networks anymore.1. Identify service opportunitiesTurning a twitter complaint into a support opportunity.2. Identify leadsCapture a sales lead from a LinkedIn group or Quora discussion.3. Identify target audiencesUse social media profiles on Xing or Google Plus to identify potentialinfluencers and decision-makers.4. ConnectUse existing relationships to reach out and build new relationships in acredible way. 65
  73. 73. Social Sales. The Book. «We believe influence is the ability to drive action.»«Its great to have lots of connections but what really matters is how peopleengage with the content you create. We believe its better to have a smalland engaged audience than a large network that doesnt act upon yourcontent.»Klout,“Understanding Klout”,2012.66
  74. 74. IV. Social Business.Follow Me.Ties between people can have many faces, especially in social networks.1. SubscriptionFollowing someone or something on social media means institutionalizingthe interest into a person or group by subscribing to her posts and updates.2. ConnectionBased on mutual agreement, a friendship or connection can be established.In theory, every person is connected with every other person by not morethan 5 degrees.3. InteractionIn social media, an interaction can be commenting, liking, sharing, writingon the wall, mentioning or re-posting. Every interaction is an opportunity tostrengthen a relationship.4. RelationshipA relationship constitutes of the sum of all interactions, online and offline,between two parties. In a network, it represents the flow of informationand communication.In fact, a subscription or connection is a sign of potential influence. Butinteractions are measurable indicators of relationship intensity. 67
  75. 75. Social Sales. The Book.Social Network Dictionary1. EdgeInterdependent social relationship (tie, connection, link) between teamsand/or persons. Represents the flow of information and communication ina network. Can be directed or undirected.2. NodeA social entity, either an individual (person, contact) or a team (group,organization).3. TeamIn multi-level networks, persons with common attributes can be groupedtogether into teams.4. BridgeRelationship providing indirect access to other teams and/or persons forintroductions or for channeling messages.5. GatekeeperPerson providing exclusive access to disconnected teams or persons. Can beused for channeling or need to be bypassed.6. HubCentral team or person connected to multiple other teams and/or persons.Good subject for effective targeting.7. SatellitePerson linked to a central hub.68
  76. 76. IV. Social Business.Social Network AnalysisSocial Network Analysis (SNA) studies relationship structures among socialentities (teams, persons) in order to assess its social influence andimportance.1. CentralityIndicates the social influence or importance of a node based on their socialconnections in a network.1. Degree CentralityMeasures the number of connections a node owns. It only takes directrelationships into account.2. Closeness CentralityMeasures the influence based on the shortest paths to any other node.Hubs typically have a high closeness centrality.3. Betweenness CentralityMeasures the influence based on how often a contact sits on the shortestpath connecting other nodes. Gatekeepers typically have a highbetweenness centrality.4. Eigenvector CentralityMeasures the importance of a node by taking into account the strenghts ofrelationships and influence of directly and indirectly connected nodes. Byanalyzing sales networks using Eigenvector centrality, the «real»importance of influencers and decision-makers can be assessed. 69
  77. 77. Social Sales. The Book.Pillars Of InfluenceBrian Solis has built a framework to understand influence of people in asocial network in order to determine how a brand or person can causechange or effect.1. ReachReach defines how far a message can travel across the social graph,measured in terms of popularity, proximity and goodwill.2. RelevanceMore importantly, the interest graph models the quality of the message tothe specific audience in terms of authority, trust and affinity.3. ResonanceAs a result, the resonance measures the duration, rate and intensity level ofthe generated activities, measured as frequency, period and amplitude.Together, the pillars of influence form the social capital, a catalyst forpotential influence.70
  78. 78. IV. Social Business.Law of the Few.Research suggests that within a social network, there is a small number ofinfluencers that can make an idea or opinion succeed. This phenomenon iscalled the law of the few. Malcolm Gladwell differentiates in 3 types ofroles that have the particular and rare social gift to create such a socialepidemic.1. ConnectorsConnectors are people experts. They own a large social network, so theycan spread the word and provide required reach for your messages.2. MavenMavens are information experts. They accumulate incredible knowledgeand are recognized, trusted experts in their field. Typically, they are earlyadapters of new technologies.3. SalesmenSalesmen are very charismatic persuaders. They have very strongnegotiation skills and can make people buy into your idea.Depending on what message you want to spread, you can make use of thedifferent types of influencers. Important is to recognize and identify the fewkey influencers that will have the real impact. 71
  79. 79. Social Sales. The Book.The strength of weak ties.Another interesting phenomena shows that loose social networkconnections, i.e. weak ties, can be a great source of differentiation anddiversity.1. FrequencyStrong ties are more likely to share the same or similar information.Contacts are more likely to consume and respond to information fromstronger ties.2. GroupingInteracting with a group of contacts frequently, also raises the likelihoodthat these contacts will interact more frequently with each other. As aresult, homogeneous groups of strong ties emerge.3. BreathOn the other hand, the vast majority of information comes from contactsthat we interact with less frequently, due to typically larger volume of weakties in the network.4. NoveltyOften, weak ties act as gatekeepers to disconnected groups and teams. As aresult, they can enrich discussions with new perspectives and information,which might have left out by a group of strong ties.72
  80. 80. IV. Social Business. «Its time to transform your business for the new social reality.»«Social media is changing how we connect and share in our personal livesand—increasingly—in business. Our customers are just as likely to look forus on Facebook as they are to visit our corporate website. Internally, wework more productively when we can easily collaborate with our colleaguesonline. Weaving a social context into your business is quickly becoming aprerequisite for success. Its time to transform your business for the newsocial reality. Its time to delight your customers by connecting to them—and to your employees—in new and powerful ways. Welcome to the SocialEnterprise.»,“The Social Enterprise”,January 2012. 73
  81. 81. Social Sales. The Book.CollaborationPut simply, collaboration means working together towards commontargets. Successful sales collaboration consists of 3 critical elements:1. TeamworkIt is about people sharing information, exchanging documents and opinions.Sometimes organized in public groups, to get broad input on the next salescampaign. But very often in small teams, to collaborate on a specific salesopportunity in an intimate way.2. Project ManagementIn fact, every sales opportunity is a small project requiring resourceorchestration and task synchronization in order to make best use of thecollective knowledge and relationships of its members.3. CommunicationFinally, we can make use of online communication tools like discussionforums, chat, video chat and web meetings to effectively communicate witheach other.Depending on the complexity of the opportunity, there is a directcorrelation between sales effectiveness and collaboration.Short: No sales without collaboration.74
  82. 82. IV. Social Business.Roles in CollaborationAccording to Tom Searcy, speaker and sales consultant, collaboration is thesecret sauce of successful selling. It means structured teamwork toaccomplish a shared goal that no member or subset of the group couldaccomplish alone. Effective collaboration requires members consisting of 3roles.1. FacilitatorThe group needs a moderator to manage the process and transition theproject to the next step.2. ClarifyerThe clarifiers will take the action items and solve the issues.3. ExpertExperts bring in the subject knowledge. They serve as a resource pool.Or in other words: You need effective project management, executioncapabilities as well as specific subject knowledge at the table. 75
  83. 83. Social Sales. The Book. «Social Business Software is transforming business as we know it. And driving breakthroughs in productivity, sales, product innovation, and employee and customer satisfaction.»«Traditional enterprise applications reinforce hierarchies and create siloes.With Social Business, information flows freely. Social Business Software letspeople form self-organizing communities, discover each other and connect– instantly. Work gets done far more naturally and faster than ever before.»Jive Software,“New to Social Business?”,January 2012.76
  84. 84. IV. Social Business.Enterprise 2.0Described as Facebook for the enterprise, social business software helpsusers to collaborate more effectively, internally as well as externally.Typically, it consists of the following functionality.1. ProfilesUsers can manage their profile information including contact details,competencies, business background, education and current responsibilities.This is especially valuable to identify appropriate project resources.2. ConnectionsUsers can follow and connect with each other in order to stay up-to-date oncollegues and their activities.3. Real-Time UpdateBy following other users, groups, sales opportunities or even customers andcompetitors, users can receive a network stream of status updates in real-time.4. TeamroomsEvery sales opportunity is a project. Users can join groups to shareinformation, exchange documents and manage project tasks and calender.5. ChatIntegrated presence management and chat functionality facilitatescommunication. 77
  85. 85. Social Sales. The Book. Shake up your B2B sales by leveraging the power of collaboration, social networks and CRM.Social Sales means seeing relationships as assets and investing into thesocial capital of your company, your sales networks, in order to winstrategic opportunities and grow your business. It provides a structuredapproach to relationship-driven decision-making. Over time, it has evolvedinto a comprehensive sales approach to “identify, analyze and act”. Buthow does a SocialSalesMap look like? What is a SocialSalesIndex? And howcan a SocialSalesMatrix help you in defining the most effective action plan?78
  86. 86. V. Social Sales.V. Social Sales 79
  87. 87. Social Sales. The Book. «Social Sales represents a new way of fueling sales force productivity, eliminating functional silos and becoming more responsive to customer demands. »«At Accenture, we believe any organization can benefit from a Social Salescapability. Our research and experience have shown that top sales forcesacross all industries achieve an optimal balance of data, technology, processand talent. In doing so, they master both the art and science of sales. Socialsales provides a low-cost mechanism by which companies can not onlyachieve the balance of skills they need, but also bridge the art/science gap.This, in turn, helps organizations improve their sales force productivityacross the sales lifecycle, from identifying prospects to winning the deal. »Accenture,“Social Sales - Collaborating for high performance”,2011.80
  88. 88. V. Social Sales.Social Sales OpportunitiesSales has always been challenging. Especially strategic sales.1. RelationshipEngaging multiple levels of decision-makers across complex value networksrequires a very structured and analytic approach to relationship-drivendecision-making.2. Soft FactorsEffectively navigating politics by incorporating social factors will reduce therisk of failure and avoid unwanted surprises.3. CollaborationCollaborating effectively with internal stakeholders, channel partners andinfluencers can shorten the sales cycle, increase your win rate and help yougrow your business.4. Social MediaMaking best use of social networks to identify and engage relevantinfluencers. 81
  89. 89. Social Sales. The Book.Identify, Analyze, ActSocial Sales is about mapping and analyzing Social Sales networks to definethe most effective, relationship-driven sales strategy and action plan.1. IdentifyIn a first step, we need to identify and map decision-makers, influencers,partners and customer contacts (and their relationships) into a socialnetwork graph. By visualizing the results, you can get a first idea ofpotential options.2. AnalyzeBased on the information available, who is the most important contact forus to work with? Where should we focus our resources? Which contacts toengage first?Applying social network analysis (SNA) to complex B2B sales can provideanswers to some of those questions.3. ActSales teams want to win, so they need to focus their efforts on the mostimportant tasks. By using the above visualization and analysis, they havethe transparency and confidence in place, to build the most effective salesstrategy and action plan leveraging their existing relationships networks. Asales network lives. Actions will turn into new identified contacts andchanged relationships. Managing it in iterative circles will help you to getthe most of your sales engagement.82
  90. 90. V. Social Sales.1. IdentifyLike in classical buying center analysis, it is important to understand the keyplayers of a deal. The difference with using Social Sales methodologies isthat we can also map the relationships between them in form of a network,so it helps to understand how the influence moves and where the socialcenter of gravity is.1. Decision-MakerWho are the relevant authorities in the specific buying process, formally orinformally?2. InfluencerWho are the internal and external people with the most (potential)influence on the buying decision?3. PartnerAre there any channel partners that we should bring to the table? Does thecustomer have a preference for specific distributors, integrators, designhouses or consultancies?4. Internal SupportDo we need an executive sponsorship? Who in the account team hasrelevant relationships to leverage? How can we get support from the rightpeople in the product or service team? 83
  91. 91. Social Sales. The Book.Shot: SocialSalesMapA picture tells more than words. And faster. When it comes to networks,traditional tables and forms reach their limits. Instead, maps can help youtelling the story.84
  92. 92. V. Social Sales.SocialSalesMapA SocialSalesMap is a graphical representation of a sales network. It helpsto identify, engage and manage key influencers and decision-makerseffectively.1. Simple information accessIt carries information on companies, teams, contacts, relationships andactions.2. Graphical visualizationIt displays key data like influence, position, names, functions, actions, rolesand relationships directly on the map.3. CollaborationIt enables multi-user access, simulations, action and milestonemanagement to facilitate teamwork and effective collaboration.4. Social Network Analysis (SNA)SNA allows you to segment your contacts and aggregate drivers into aninteractive graph to ease sales life and support pro-active decision-making.5. Smart IntegrationBy integrating to Outlook, LinkedIn, Xing, Facebook, Twitter and Skype aswell as leading CRM systems, you can re-use existing contact andrelationship information. 85
  93. 93. Social Sales. The Book.Social RelationshipsA relationship lives. It can grow or dry out over time. In order to analyzenetworks, we need to capture and understand the relationships in moredetail, especially...1. Relationship IntensityThe frequency of interactions and touchpoints drives the intensity of arelationship.2. Relationship QualityWorking with someone on a daily base makes up a high intensity, but itdoesn’t mean you have a very intimate relationship. Instead, therelationship quality is defined by the mutual acceptance, intimacy and trust.It can be both, positive or negative.3. Relationship TypeThe nature and kind of relationship can be very different reaching fromkinship to friendship, from membership to business.4. DirectionSome relationships like member (of) or reporting (to) will also feature aclear direction.Regarding sales, it is important to understand the different parameters inorder to judge the potential cross-influence between the counterparts.86
  94. 94. V. Social Sales.2. AnalyzeBased on the information available, who is the most important contact forus to work with? Where should we focus our resources? Which contacts toengage first?Applying social network analysis (SNA) to complex B2B sales can provideeffective answers to some of those questions. Assuming, a first estimate ofthe influence of a contact is available, we can use SNA algorithms tocalculate the overall importance of any contact within a sales network, i.e.the so-called SocialSalesIndex (SSI).1. Individual and team InfluenceThe more influence my team has, the higher my importance for the specificopportunity. Specific roles are also strong drivers of influence.2. RelationshipsThe underlying logic is simple. The more relationships someone has to otherimportant stakeholders, the higher her indirect influence. The more intensethose relationships, the better.The SocialSalesIndex (SSI) is an indicator of social influence of teams and/orpersons in a sales network based on network topology as well as relevanceand intensity of her relationships (calculated as Eigenvector Centrality).It can be used for ranking key decision makers in terms of importance. Thehigher the SocialSalesIndex, the more important the contact for the salesdecision. 87
  95. 95. Social Sales. The Book.Shot: SocialSalesMatrixEngineers like matrix diagrams. But business people love it. Looking at theSocialSalesMatrix, we can focus our sales efforts on the most importanttargets and hopefully avoid talking to the wrong audience.88
  96. 96. V. Social Sales.SocialSalesMatrixIn a SocialSalesMatrix, all contacts are being segmented by importance(SocialSalesIndex) as well as their pro/contra position. As a result, wereceive manageable, actionable groups.1. ChallengersIt’s very important to understand the most important, but critical decision-makers to decide about potential mitigation. A hunter will focus most of herefforts here.2. CriticsIn the mid-term, a farmer will try to improve the position of less importantcontacts through better sales, marketing and service engagement withreasonable effort.3. SupporterThis group can be used very well for a positive “Grundrauschen”, even iftheir immediate importance is limited.4. ChampionsThese are our most important promoters. If we manage to turn all decision-makers into champions, we will win. 89
  97. 97. Social Sales. The Book.Shot: Driver AnalysisA spider graph helps to understand and focus on the mission-critical driversof your sales opportunity. Tip: You might also map the capabilities of yourpartners to the spider, so you can complement your skills.90
  98. 98. V. Social Sales.Driver AnalysisOnce we have understood the sales network and its players, we can nowthink about which are the key decision criteria that we need to work on tosecure the deal.1. Driver AssessmentDecision criteria can vary a lot by target group and buying phase. Thebusiness team might want to facilitate profitable growth, purchasing wantsto reduce costs and the technology team might look for new innovation,compatibility or reliability. In a first step, we need to identify those keydrivers and assess their importance on a fixed scale.2. ConsolidationWhen consolidating the different needs into a common view, we can re-usethe results of the SNA. The driver of teams with the highest influence on thebuying decision will have more weight.3. Gap AnalysisIn order to do a gap analysis, we can now match our capabilities against theconsolidated, weighted needs. What’s the perceived contribution in termsof growth, price and innovation? How do we rank compared tocompetition? 91
  99. 99. Social Sales. The Book.Shot: Action TimelineYou need both: An effective sales strategy and a professional execution.The best plan is obsolete if you don’t have the tools and structure in placeto follow-up.92
  100. 100. V. Social Sales.3. ActEvery sales network is different, so is the sales strategy and action plan.Important is to follow an analytic, structured approach, understand thestrategic options and apply them most effectively.1. TargetingIf relationships to key influencers or decision-makers exist, we can targetand engage them directly. The good thing with targeting is that we have fullcontrol of our message and can actively handle objections.2. BridgingIn case no direct relationships exist yet, we can establish bridges by eitherbeing introduced to the target or for future channeling.3. ChannelingSometimes, it can be most effective to use bridges respectively indirectrelationships to channel our message instead of trying to build up a directrelationship. This is especially true if close contacts of the target audienceact as trusted advisor.4. BypassingIn order to minimize dependency on existing bridges or gatekeepers, wemight want to neutralize them by establishing direct relationships orbuilding up alternative paths.In reality, the most effective sales strategy will always incorporate a mix ofdifferent Social Sales actions. 93
  101. 101. Social Sales. The Book.Social Door OpenersThe times of cold calls are gone. But the good news is that social networksoffer a great opportunity to warm up your target contacts.1. IntroductionAsk someone of your bridge contacts to introduce you by arranging a jointmeeting.2. Social IntroductionSocial networks like LinkedIN feature a “get introduced” function toleverage your joint connections.3. ReferralBuild trust by referring to a relevant friend, colleague or business partnerconnected to your target contact.4. Profile InfoAnd if you can’t identify any joint connections, you can still use backgroundinformation from her profile. “I have seen you are interested in or lookingfor...”.5. Yes-StreetMake use of posts, tweets or other social content to ask for feedback andtry to build a “yes” street by using engaging, positive questions.94
  102. 102. V. Social Sales.Social ActionsWhatever sales action you take, there is always the possibility to use thesocial capital of you, your team and your company. In fact, every salesaction carries a social component, some more, some less.1. Enlarge the tableAre the right people involved in the decision? Maybe the assessment teamlacks some key people who could help you to win? Are they aware?2. Match the AudiencePeople like talking to their counterparts, lawyers to lawyers, engineers toengineers and managers to managers. Instead of trying to handle keycontacts by yourself, make use of your specialists and the existingrelationships of your teammates to match the target audience.3. Find the bad guyWhatever you do, somebody will fight the project. Change creates anxiety.And someone will feel responsible for the status quo. So make sure thatwhatever pain and need you are addressing, you will not blame nor step onthe feet of the key decision-makers and influencers. Instead, if needed, tryto find the bad guy outside of the room or even organization. 95
  103. 103. Social Sales. The Book. «In todays workplace, people have emerged as the most valuable asset to unlocking the power of information and ideas.» «To innovate and remain competitive, organizations need to provide the right tools, culture, and IT ecosystem for employees, business partners, suppliers, and customers to communicate and collaborate.»IDC,“Enterprise Collaboration and Social Solutions.”,2012.96
  104. 104. V. Social Sales.CollaborationSometimes, orchestrating the internal team can be more challenging thanworking with the customer.1. LeadershipThe opportunity owner is responsible to coordinate the overall effort. Sheneeds to build the team, assign roles and responsibilities, as well as coachand support the team members. By visualizing your own team on your salesnetwork you will increase transparency and commitment.2. Weekly Opportunity ReviewsRegular status meetings, either as online conferences or in person are aprerequisite to keep everybody aligned and engaged.3. NotificationsReal-time information on contacts, customers and partners will keep yourteam up-to-date on the latest status and actions and help you to re-act fast,if needed.4. Win/Loss AnalysisThere’s a lot you can learn from a good debriefing. Review the keymilestones and how your sales network has evolved over time. What wouldyou do differently today and what would you re-do the same way again? 97
  105. 105. Social Sales. The Book. «Nothing is easier than losing a competitive edge in the marketplace. You just have to stand still.» Marcel Dobler, CEO, Digitec98
  106. 106. V. Social Sales.The Road to Success.Social Sales will not happen overnight, but can be developed in stages.1. Internal CollaborationBreak the silos. Build diverse, multi-functional, cross-group teams tomanage specific opportunities. Run brainstorming workshops to leverageyour social capital most effectively.2. External CollaborationEnhance your sales network by making your partners become part of yourteam. Engage influencers strategically. Ask your customer supporters andchampions to help you on your journey.3. StandardizationAlign your tools, processes and terminology into a common Social Salesframework. Define local superusers to provide interactive trainings andgather continuous feedback.4. Advanced DeploymentSocialSalesMaps have entered the boardroom and are a core element ofyour account planning. Pipeline reviews have turned into “social”opportunity reviews. Sales incentives are aligned with social objectives.5. Strategic EngagementEnhancing your social capital is the core driving force of your growthstrategy. Social Sales has become part of your corporate culture and DNA. 99
  107. 107. Social Sales. The Book. «The implications for a salesperson are simple.They have to understand that generating leads, managingopportunities and closing deals need fresh approaches and skills in utilizing tools that help enrich customer insights.»«Because whether it’s a B2B or B2C sale, the customer is expecting you, thesales maven and your company, to know them and what they want. Thatmeans that sales intelligence and engaging in the networks the customerparticipates in are of critical importance.»Oracle/The Customer Collective,“The Art of Social Sales”,2009.100
  108. 108. V. Social Sales.SummaryIt will be hard to ignore the changes and opportunities provided bycollaboration, social networks and CRM.Sales is about People. And Social Sales is about engaging the right people atthe right time via the right channel in order to win. It provides a freshapproach to master the complexities of B2B sales by capitalizing on thesocial capital of your company.In brief, Social Sales addresses the need to1. Identify and map influencers and decision-makers2. Analyze, manage and enhance sales networks3. Effectively act on relationship-driven sales strategiesAnd finally to collaborate across the sales cycle, internally as well asexternally.If you believe, that people and relationships are the driving forces of salessuccess in your business, Social Sales will help you to achieve and exceedyour targets.What are you waiting for? 101
  109. 109. Social Sales. The Book.102
  110. 110. Bonus MaterialBonus Material 103
  111. 111. Social Sales. The Book.ChecklistThis checklist can be used to facilitate discussions across the sales cycle onpotential actions and issues.1. Discovery[ ] Do we have an <Opportunity Owner> assigned?[ ] Does the <Opportunity Owner> confirm her/his role?[ ] Do we have a first idea of the customer budget?[ ] Do we have a first relationship to the customer?2. Qualification[ ] Is the <Budget Owner> identified?[ ] Does the <Budget Owner> confirm the budget?[ ] Is the <Ultimate Authority> identified?[ ] Do we have a first idea of the customer drivers?[ ] Do we know the timeline?[ ] Did the customer confirm the timeline?3. Pre-Proposal[ ] Did we receive a request for information?[ ] Is the <Proposal Lead> identified?[ ] Does the <Proposal Lead> confirm her/his role?[ ] Do we have a direct relationship to the <Ultimate Authority>?[ ] Do we have a relationship to the majority of important players?[ ] Did we identify potential partners?[ ] Did we establish relationships to the potential partners?[ ] Did we validate the drivers of the customer?[ ] Did the important players confirm their key drivers?104
  112. 112. Bonus Material[ ] Are our capabilities close to the drivers of the customer?[ ] Has the timeline being updated/reconfirmed?[ ] Did we provide a draft budget proposal to the customer?4. Proposal[ ] Did we receive a request for proposal?[ ] Is the <Contract Signatory> identified?[ ] Can we turn the <Ultimate Authority> into a <Champion>?[ ] Did we turn the majority of <Critics> into <Supporters>?[ ] Did we turn the majority of <Challengers> into <Champions>?[ ] Do we have the support of potential partners?[ ] Did the partner(s) confirm their support and championship?[ ]Did we re-validate the drivers of the customer?[ ] Did the important players confirm the key drivers?[ ] Do our capabilities match ALL customer drivers?[ ] Has the timeline been updated/reconfirmed?[ ] Did we provide a final proposal to the customer?5. Negotiation[ ] Did we receive a verbal commitment?[ ] Did we establish relationship to the <Contract Signatory>?[ ] Do we have the support of the <Contract Signatory>?6. Award[ ] Did the customer award the contract?[ ] Did we win? 105
  113. 113. Social Sales. The Book.Quick AssessmentThe Quick Assessment provides a simple, but structured way of identifyingthe gaps and opportunities in sales, marketing and service performance aswell as potential for collaboration and CRM.1. How do you rate your companys sales performance?[ ] Our win/loss ratio is better than that of most our competitors.[ ] Thanks to the insight into our sales pipeline, we enjoy a high forecastaccuracy.[ ] In strategic opportunities, we are using the collective knowledge andrelationships of our people to win.[ ] We have good transparency into our customers relationship networks,politics and decision-making processes.2. How do you perceive your companys marketing performance?[ ] The number and quality of responses/leads generated from ourmarketing campaigns are very good.[ ] We are managing customer touchpoints across departments andchannels in an integrated way.[ ] We know all key influencers (consultants, politicians, academic, partners)of our customers in the market.[ ] We have excellent collaboration with our channel partner network.106
  114. 114. Bonus Material3. Whats your opinion on your companys service and support?[ ] Customer requests are replied and resolved in a very fast and effectiveway.[ ] The volume of our service business lives up to its real market potential.[ ] Our customers do pro-actively recommend working with us towards theirfriends and colleagues.[ ] We never compete internally. Instead we collaborate across our differentbusinesses to support our customers best.4. What do you think about your companys market intelligence?[ ] We have deep and actual market know-how to re-act fast on anychanges. ][ ] We are focusing on the right target opportunities and accounts.[ ] We have the right metrics in place to measure our sales, marketing andservice performance.5. How do you feel about your companys customer relationshipmanagement strategy?[ ] Customer relationship management is considered very strategic andsupported by top management.[ ] We have already exploited our full internal cross-sell potential.[ ] Sales and marketing are working closely together towards commonobjectives.[ ] How do you feel about your companys customer relationshipmanagement strategy?[ ] Our team has the right tools and systems in place to be successful.[ ] We are investing the right resources, time and money to improve sales,marketing and service performance. 107
  115. 115. Social Sales. The Book.Value TreeThe value tree helps you to build the business case and model your valueproposition to the customer in a nice way.1. Revenue Growth 1.1 Marketing Effectiveness 1.1.1 Market Penetration Market Coverage (Access) Market Reach (Information) 1.1.2 Conversion Prospect Conversion (Interest) Lead Conversion (Consideration) 1.2 Sales Effectiveness 1.2.1 Pipeline Effectiveness Request Rate Bid Rate Hit Rate 1.2.2 Channel Optimization Direct Sales Rate Sell-Through Rate Sell-With Rate 1.3 Service Effectiveness 1.3.1 Collaboration 1.3.2 Cross-Sell 1.3.3 Up-Sell 1.3.2 Customer Satisfaction Net Promoter Score (NPS) Repurchase Rate108
  116. 116. Bonus Material2. Profitability 2. 1 Efficiency 2.1.1 Price Optimization 2.1.2 Resource Utilization 2.2 Cost Structure 2.2.1 Marketing Costs 2.2.2 Sales Costs 2.2.3 Service Costs3. Investments 3.1 Technology 3.1.1 Design 3.1.2 Development 3.1.3 Software 3.1.3 Hardware 3.2 Change Management 3.2.1 Business Management 3.2.2 Communication 3.2.3 Training 3.2 Operation Costs 3.2.1 Services 3.2.2 Licenses 109
  117. 117. Social Sales. The Book.Market ModelThe market model connects the marketing funnel with the sales pipeline toalign terminology, processes and measurement across the entire customerlifecycle. Marketing Stage Sales Status KPI Potential n/a n/a Access n/a Coverage Marketing Awareness Prospects Reach Interest Leads Prospect Conversion Consideration Opportunities Lead Conversion Information RFI RFI Rate Pre-Evaluation Budgetary Offer Pre-Bid Proof Feasibility Study POC Rate Sales Preference RFQ Request Rate Evaluation Offers Bid Rate Commitment Customers Hit Rate Repeat Loyality Repurchase Rate Service Customers Referral Net Promoter Net Promoter Score110
  118. 118. Bonus Material 111
  119. 119. Social Sales. The Book.112
  120. 120. AbbreviationsAIDA – Attention, Interest, Desire, ActionBANT – Budget, Authority, Need, TimelineCRM – Customer Relationship ManagementCOS – Cost of SalesNPS – Net Promoter ScoreROI – Return of InvestmentRFQ – Request for QuotationRFP – Request for ProposalSKU - Stock Keeping UnitSME – Subject Matter ExpertSMM – Social Media MonitoringSNA – Social Network AnalysisSRM – Supplier Relationship ManagementSSI – SocialSalesIndexPOEM – Paid, Owned, Earned MediaZMOT – Zero Moment of Truth 113
  121. 121. Social Sales. The Book.114
  122. 122. Recommended ReadingsAccenture, “Social Sales - Collaborating for high performance”,2011.CSO Insights,“Revenue 2012: Making it Happen Versus Hoping it Happens”,January 2012.Gartner Group, “Magic Quadrant for Social CRM”, July 2011.IBM Corporation, “The Social Business - Advent of a new age”, February2011.Luc Galoppin,“Social Architecture, a Manifesto”, January 2011.Matthew Dickson/Brent Adamson, “The Challenger Sale: Taking Control ofthe Customer Conversation”, 2011.McKinsey & Company, “The rise of the networked enterprise: Web 2.0 findsits payday.”, April 2011.Oracle/The Customer Collective, “The Art of Social Sales”, 2009. 115
  123. 123. Social Sales. The Book.116
  124. 124. About the AuthorAndreas Uthmann is a business developer and consultant with a strongpassion for technology and innovation.He is the founder and CEO of Blueconomics Business Solutions GmbH( supporting customers to drive B2B sales,marketing and service effectiveness by leveraging the power ofcollaboration, social networks and CRM.He was born in Westphalia/Germany and lives in Zürich/Switzerland. 117