TECHNOLOGY DOESN’T SELL ITSELF PRESENTED BY: MIKE JOHNSON PRESIDENT, INGENIUM PARTNERS 8/4/2012 Copyright 2012. All Rights Reserved. Document not to be distributed without written consent of the BTBC.
Meet Mike Johnson Senior sales and marketing executive with over 30 years of comprehensive experience in sales, marketing, business development, and strategic planning. Ten years of executive management experience with a proven record of progressively responsible positions including district manager, regional manager, director of sales, vice president of sales and senior vice president of sales and marketing. President of Ingenium Partners, a sales and marketing consulting firm working with Fortune 500 companies and start- ups.
Prior Experience Director of Sales, Service and Administration, Siemens Medical Systems Vice President of Sales, Becton Dickinson Infusion Therapy Systems Senior Vice President, Sales and Marketing Oread Labs
Joint Venture Selling Use a joint venture sales approach Achieve a win-win sales situation
Crossing The ChasmSource: Everett Rogers Diffusion of Innovations Theory
High Tech Marketing Model What happened to TiVo? - Single highest quality product introduced into a new category - Created a brand like Kleenex, Coke, Band-Aid, etc. - TiVo is a verb in the English language - TiVo was well-funded and had a technology that could reinvent how we consume television - Sales were and continue to be a huge disappointment. More homes have outhouses (671,000) than TiVo’s (504,000)
High Tech Marketing Model Problem was that they marketed the product to the early majority before getting innovators and early adopters to adopt the technology They attempted to convince with features and benefits (results) without first explaining the Why! The right model to develop a market is to work the curve left to right Focus first on the innovators, create Win-Win, Referrals
High Tech Marketing Model Referrals/Testimonials will open the doors to early adopters, grow this market and move on to the early majority and so on. “Catch the Curve” Referrals/Testimonials create momentum within the technology adoption life cycle and it is natural for the next group to want to buy-in Once a product gets to 15-18% penetration with innovators (2.5%) and early adopters (13.5%) then the growth moves at an extraordinary pace capturing the early majority (34%)
High Tech Marketing Model Keys to early success - Develop Ideal Account Profile Scorecard (Visionaries, Technology Enthusiasts) - Develop a target account list based upon which accounts most closely meet your Ideal Account Profile - Identify the Buying Influence Role that you will be targeting and craft your value message to the Role versus a generic value proposition
Sales and Marketing System Targeting Ideal Customers Buy-Sell Sales Production Process
Ideal Account and Opportunity Scorecard Profile Key ideas − The Ideal Target Account and Opportunity Profile is used as a predictive device to identify the most ideal targets − The Ideal Target Account and Opportunity Profile can be used as a sorting device to select the best targets − The closer your customers fit your Ideal Target Account and Opportunity Profile, the more likely you are to encounter fewer problems and have an easier sale
Example: Ideal Account and Opportunity Profile Scorecard
Business Process Businesses depend on having consistent processes. Accounting Manufacturing Sales & Marketing Human Resources
The Value of Processes With processes − People have focus − You know where you are − You know what to do next You are able to proactively − Identify problems and difficulties − Identify deficits in knowledge − Allocate resources effectively
Sales Production Process Impact on Sales Performance No Impact Do Not Know 90% of those surveyed show impact 6.2% 4.2% from implementing a sales process - Win rates increase - Cost of sales decreases - Productivity per sales rep increases - Ramp up time of new hires decreases - Forecast predictability improves Significantly Improves Improves 53.7% 35.8%
Customer Relationship and Sales Production Process Trusted Partner Successful Years Strategic 24% of Firms Contributor Solutions Challenging Consultant Months 47% of Firms Preferred Sleepless Supplier Nights 29% of Firms Approved Vendor Random Informal Formal Dynamic Process Process Process Process
Buying Process-Selling Process AlignmentKey Ideas − Steps in your sales process must align with the customer buying process − Increase win rates and speed up the sales cycle − Establish reasonable customer commitments at each step in your sales cycle − Increase forecast accuracy
FundamentalsSelling Process Conduct Generate Identify Qualify Needs Demo/Trial Propose Close DeliverLead/Target Opportunity Analysis All Selling activities and The Buying Process will people involvement always must be linked to the Buying override the Selling Process Process!Buying Process Agreement Business Impact Evaluate ImplementStatus Quo to do Select Sign Problem Analyzed Alternatives Solution Something Resolved
MisalignmentSelling Process Conduct Generate Identify Qualify Needs Demo/Trial Propose Close DeliverLead/Target Opportunity AnalysisBuying Process Agreement Business Impact Evaluate ImplementStatus Quo to do Select Sign Problem Analyzed Alternatives Solution Something Resolved
Fundamentals Movement through the Buying or Selling Process is measured in activities, NOT time. Agreement Business Impact Evaluate ImplementStatus Quo to do Select Sign Problem Analyzed Alternatives Solution Something Resolved
Sales Production Process Buy Process Step: Sell Process Step: Objective: Buying Customer Action Tools or Seller Actions Influences Involved Commitments Information Used
Sales and Marketing System Creating Opportunities
Buying Influences Concept Every decision maker and decision influencer has a solution image or concept Decision makers and influencers buy what they think your solution will enable them to accomplish The sales professional needs to understand the decision maker and influencers concepts
Even Keel (Most Decision Makers start here) Probability of taking action is low. Buying Influence asks, “Why do I need to make a change?” What is your plan for moving this Buying Influence from even keel?
Differentiation Products, services, or solutions must be differentiated before the decision makers and influencers make a decision to buy, or that decision may be based on price alone Decision makers and influencers do not buy products, services, or solutions per se; they buy what they think or feel the products, services, or solutions will accomplish for them The decision makers and influencers must see a link between your product, service, or solution and what they are seeking to accomplish, fix, and avoid
Unique Strengths What are your strengths? Do your strengths connect to what each decision maker and influencers is seeking to fix, avoid and accomplish? $$$
Features, Functions & Benefits’Understand Why It’s Wrong Take Action to Correct The basic issue here is a faulty set Instead of regurgitating a list of so- of assumptions compounded by called benefits, ask questions to faulty logic, causing muddled determine what the customer’s thinking. concept is. It is dead wrong! Inanimate What do they need to objects like product features correct, improve, or avoid? cannot inherently possess benefits. Focus on the customer by asking questions, not on the product by Perceiving a benefit is a human data-dumping. attribute.
Value PropositionUnderstand Why It’s Wrong Take Action to Correct Trying to craft a one-size-fits- Never try to construct a all statement of value is as generic value proposition. impossible as trying to come up with one silver-bullet sales It never works and usually just for the General Electric, Sony, confuses the customer as to or Siemens. what business you are really in. It cannot be done because the same statement does not The value you provide is apply in all situations. decided by your customer; not by you or your marketing department.
Sales and Marketing SystemManaging Opportunities − Operationalize your sales process
Manage Opportunities Key ideas− Develop an ongoing process for: • Analyzing sales opportunities • Setting effective strategies− Common language
Strategic Purpose: Build a Strong Strategy Identify Strengths ― Leverage strengths and capitalize on opportunities Identify Red Flags — Minimize and/or eliminate uncertainties and threats
Build a Strong Strategy… Analysis, Strategy, and Plan1. What are we proposing to sell - Single sales objective2. Euphoria Panic Continuum3. Who are the buying influencers, their roles, openness to change (mode), and degree of influence?4. How does each Buying Influencer rate our solution and how do I know this is an accuratte rating?5. What is each Buying Influencer seeking to fix, avoid, and accomplish (results) and how will each personally win?6. What is our current position versus the competition? 39
Build a Strong Strategy… Analysis, Strategy, and Plan7. Is the prospect a good match to our Ideal Customer Profile?8. What is my funnel position?9. What are those factors that strengthen my position (strengths) and what do I need to eliminate or neutralize (red flags)?10. What are all the possible actions we could take to strengthen our position? Leverage strengths to eliminate or minimize red flags.11. What information do we need, and what are the best actions to take to advance my position on the next call. Who will do them, and when? 40
Sales and Marketing System Managing Relationships
Managing Customer Relationships Customers are major assets that need to be managed and protected. Satisfied customers equals repeat business, referrals and new growth opportunities … Up Sell and Cross Sell.
Account vs. RelationshipPlanning LAMP Planning ®Traditional Account Planning Strategic Relationship Planning Sales-focused Customer relationship focused Developed by selling organization Developed by cross- functional team Discusses our revenue goals and objectives Discusses how to help the account meet its business objectives Developed to meet our quota Developed to meet Focuses on selling our product line the account’s business needs Determines solutions that are important for the account