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Presentation by Sandy Vaci on Best Sales Practices held at Maastricht School of Management Romania on the 1st of March 2012

Presentation by Sandy Vaci on Best Sales Practices held at Maastricht School of Management Romania on the 1st of March 2012

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Best sales practices, bucharest 2012 march 1, mba masterclass Best sales practices, bucharest 2012 march 1, mba masterclass Presentation Transcript

  • Global Best Sales Practices “ How to Beat the Recession and Come Out Ahead!” MBA Master Class MSM, Romania Bucharest, March 1, 2012 www.msmro.org facebook.com/msmro @msmromania SANDY VACI Adjunct Senior Lecturer [email_address] +36 70 43 43 284
  • Sandy Vaci - Introduction
    • Personal
    • 3 home bases (Toronto, Vienna, Budapest
    • 2 citizenships (Canadian, Hungarian)
    • 1 wife (for 25 years)
    • Too many interests to list
    • Current Engagements (samples)
    • Senior Lecturer, Maastricht School of Mgmt
    • Senior Lecturer, CEU Business School
    • Chairman, Credit Bank of Moscow (RUS)
    • Partner, Leaders’ Den Board Practice (UK)
    • President, Resp’y Patients’ Soc’y (HU)
    • Author, SearchingFinance Publishing (UK)
    • Advisor (Lever, WorldBank, Teva Pharma…)
    • Past Engagements
    • 30 years, 4 continents, 50 countries
    • P&G North Am, Citibank Global, Cadbury Int’l, Raiffeisen CEE, Royal Trust Cda, CIBC, Royal Bank of Scotland, 3-i Inc., etc.
    • “ A good crisis is a terrible things to waste!”
    Paul Romer, Senior Fellow Stanford University “ We always make our worst decisions during the best of times” Jamie Dimon, CEO JP Morgan
    • Boost efficiencies
    • Build it the right way: align, integrate
    • Plan your way to success
    • Use the best ideas but keep it simple
    • Maximize channel innovation
    • Own the revenue (RELATIONSHIP), not the cost (CHANNEL)
    • Keep control
    • Innovate, beware of the “basics”
    Beat the Recession! 1) Boost efficiencies with “global best sales practices” 2) Implement / integrate channel innovation for “first mover’s advantage
    • Boost efficiencies
    • Build it the right way: align, integrate
    • Plan your way to success
    • Use the best ideas but keep it simple
    • Maximize channel innovation
    • Own the revenue (RELATIONSHIP), not the cost (CHANNEL)
    • Keep control
    • Innovate, but beware of the “basics”
    Beat the Recession! 1) Boost efficiencies with “global best sales practices” 2) Implement / integrate channel innovation for “first mover’s advantage
  • Cross Functional Integration – Best Practice Example, Banking
  • Case Study – Key Components
    • Sales Objectives
      • Number of selected (focus) products to be sold monthly, split by week and individual (no aggregated volume targets)
    • Sales Activities / Processes
      • Introducing active part (outbound x-sell calls) alongside standard passive one, structured approach and conversion stages, daily activity / opportunity planning per individual
    • Sales Management
      • Daily, weekly, monthly sales meetings, formal coaching, on-going process planning and performance review (branch sales board), team work sales effort enforcement
  • Case Study – Key Components
    • Tracking and Control
      • Tracking the sales performance on a daily basis, per branch and front-line individual
    • Marketing Support
      • X-sell prospect list selection with opportunity rating
    • Reward Scheme
      • Simple prize based scheme (e.g. dinners)
  • Case Study – Enablers
    • Key Enablers
    • Branch Sales Capacity
      • Branch sales capacity measured before start and used for objective set-up and daily activity planning (incl. assessment of the spare sales capacity vs. capacity routinely utilised)
    • Sales, Management and Product Trainings
      • Sales Process Training utilising standardised regional process
      • Sales Coaching & Management Training, standard regional approach
      • Phone conversation (outbound) and scripting
      • Focus product re-training (sales process / benefit oriented)
    • Branch Site
      • Model Branch in good location but competitive city area
      • 7,000 customers with balanced product portfolio
  • Case Study – Sales Meetings
    • Daily
      • - 5-10 minute daily ‘warm-up’ covering a short recap of the last day’s
      • results and focusing the team for new day’s objectives / priorities
    • Weekly
      • - Results recap and next week’s planning and objectives highlight
      • - Address successes and identify improvement areas
      • - Recognise best performer(s)
      • - Ensure brief sharing of the team learnings
      • - Identify support required / expected
    • Monthly
      • - Review monthly sales performance and activities per branch and
      • individual
      • - Celebrate successes and recognise the best performer(s)
      • - Gather staff feedback, share and review learnings
      • - Address and plan for improvement areas
      • - Plan for the next month and highlight the objectives
  • Case Study – Sales Planning With Both Leading and Profit Indicators Example (Branch Level Tracking)
  • ( Banking Example)
  • ( Banking Example)
  • ( Banking Example)
  • ( Banking Example)
  • ( Banking Example)
    • Boost efficiencies
    • Build it the right way: align, integrate
    • Plan your way to success
    • Use the best ideas but keep it simple
    • Maximize channel innovation
    • Own the revenue (RELATIONSHIP), not the cost (CHANNEL)
    • Keep control
    • Innovate, but beware of the “basics”
    Beat the Recession! 1) Boost efficiencies with “global best sales practices” 2) Implement / integrate channel innovation for “first mover’s advantage
  • Let’s own the revenue part, not the costs! COST Items $ Physical outlets $ Fixed salaries $ Channel development
    • REVENUE Items
    • Acquisition ability
    • Sales opportunity
    • Relationships
  • Example #1: Direct Sales Agents
    • Direct Sales Agents (DSA)
    • Individual contracts vs. holding co. set up vs. 3 rd party management
    • Precursor to intermediary engagements
    • Exclusive vs. shared sales
    • Examples :
      • Avon USA
      • Knorr CH
      • Citibank HU
      • ABN AMRO RO
      • Citibank Sales Dynamics DSA Staff
        • # of products sold / mo 40 30
        • Of which, proactive sales 40 0-5
        • Proactive as % of total 100% max. 10%
        • % time spent on proactive selling 80% 20%
        • Max. sales if 100% time proactive 50 25
  • Direct Sales Agents
    • Control Items
          • Contracts to cover
            • Acquisition / sales focus
            • Authorized document use
            • Exercising duties personally
            • No other FI relationship
            • Cannot sign in Bank’s name
            • Minimum sales objectives
            • Training attendance
            • Document verification
            • Dress, manner
            • Credit, audit rules
            • Service quality
            • Disengagement clause
            • Compensation structure
    • Start with fixed (first 3 months)
    • Shift to mostly variable (4-6 months)
    • Three-tiered structure
    • - Basic – monthly draw
    • - Fee – per product sold
      • - Bonus – for higher sales
  • Example #2: Agent Outlets
    • Agents vs. Franchisees
    • Agent Franchisee
    • Uses brand, product, support
    • SLA, scorecard in place
    • Owns own business
    • Pays Parent
    • Gets paid by Parent
    • Examples : Citibank Belgium
    • Bendigo Australia
    • ING Romania
  • Agent Outlets
    • Issues
    • Integration
      • Organizational
      • Operational
      • Sales process
      • Risk management
    • Ownership
      • Brand
      • Customer
      • Cost
      • Services
    • Risk
      • Reputation
      • Regulatory
      • Fraud
      • Service quality
    • Coverage
      • Cannibalization
      • Conflict with other intermediaries
      • Gaps in coverage overlap between partners
    • Alignment
      • Strategic (long term)
      • Profit (short term)
      • Philosophy (Management)
  • Agent Outlets
      • Parent owns:
          • Signage
          • Stationary
          • Cash (if applicable)
          • Related channels installed (e.g.
          • ATM, vending machine, video
          • terminal)
          • Access to Parent’s system and
          • software
          • Maintenance contracts
      • These are provided free of charge to Agents
      • 15 to 20% of key outlets (“nodes”) also kept as
      • “ own outlets”
  • Example #3: Intermediaries (Alliances, Brokers, Other 3 rd Party Channels)
    • Contracts
    • Set out control framework
    • MUST include
      • Authorized activities and exclusions
      • Roles and responsibilities, for both
      • sales and service
      • Disengagement rules (selling business,
      • firing, transferring, contract renewal, etc)
      • Exclusivity, ownership, coverage, scope issues
      • Compensation
  • Intermediaries
    • Remuneration
    • Types
      • JV
      • Profit share
      • Revenue share
      • Commission
    • Basis
    • New sales
    • Portfolio
    • Knock out criteria
    • Hurdle rate
    • Parameters
    • % of sales (N.B.: WHAT is “sales”?)
    • Flat fee per sales
    • Floor price
    • Sliding scales
    • Support Needed
    • Start up
    • Training
    • Draw
    • Marketing
    • Professional (e.g. training, location selection, database analysis…)
  • Intermediary Innovation: Cadbury International, expanding from Canada to USA
    • Challenges
    • Chocolates are impulse purchase items,
    • yet…
      • No brand recognition
      • Retail penetration near impossible
      • Sampling is expensive
    • Approach
    • Use innovation, use…
      • Vending machines for “sampling with profit”
      • Brokers / master brokers for low cost distribution
      • Packaging for brand building (for end users)
      • Unique USP based on fresh research
      • (for intermediaries)
  • Leading Brand Average New Brand Average ------------------------------------- -------------------------------------
  • Leading Brand Average New Brand Average ------------------------------------- -------------------------------------
  • “ But what can be sold in vending machines?”
    • Candy
    • Drinks
    • Tickets
    • Toys
    • Gaming
    • Money
    • Milk
    • OTC
    • ETC?
  • But let us not forget the basics - among all this innovation …
  • Some basic reminders – for all of us…
    • Every channel, every offer, every customer must be profitable on its own, on a going basis
    • Acquire direct, service remote, build relationship in person – whenever you can
    • Be mindful of channel migration and segment shifts, always consider “streaming”
    • Pay attention to handover points – that’s where most customers and prospects are lost
    • Every new channel addition must be justified by solid business case
  • “ Let The Journey Begin!” Thank You For Your Attention… Sandy Vaci [email_address] Tel.: +36 70 43 43 284