This slide deck gives some high-level information on how to set a Sales Strategy for 2012. Keywords include: Sales Strategy, Sales Force Effectiveness, Making the Number, Sales Targets, Sales Revenue, Sales Costs, Market Share, New Product Launch, Sales Readiness
Sales Strategy exists to help fulfill one or more Corporate Strategies
– The life cycle of an industry, company and product will follow a typically growth, maturity, and decline phase. Sales Strategies will also experience the same cycle. That is why you must modify sales strategy with the same diligence as a change in corporate strategy.
Sales Strategy relates to all SFE drivers (from the next slide) in that, depending on your sales strategy, the other drivers will need to be modified or developed entirely.
Sales Strategy will dictate which of the Sales Force Effectiveness (SFE) drivers need to be implemented or improved. This assumes, of course, that an assessment of all SFE drivers is done to know what the current state is.This graphic shows some drivers, while other drivers are within sections of the framework:Account SegmentationTerritory PotentialTerritory DesignLead GenerationDemand GenerationSales ProcessChannel ManagementKey Account ManagementSales Force StructureSales Force SizingQuota SettingSales TrainingSales Performance ManagementCompensation PlanningTalent ManagementSales Readiness
One part of evaluating your organization’s design is to perform a Value Chain Analysis
Competitive Intelligence is an iterative process that requires understanding of how the market consumes information. Questions: Where do customers get information? When/why do they look for information? Who do they consult?
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Sales Strategy: How to Set Up 2013 for Sales Success
Sales Strategy What is a Sales Strategy? • An operating plan for a company’s sales force. What does a Sales Strategy do? • Allocates sales resources efficiently to drive selling costs down and revenues up. What does it mean to use a Sales Strategy? • CEO can get the most out of his/her sales force.2
A Sales Strategy Solves for Typical Problems Merger of sales forces after Acquisition Declining Sales Revenues Declining market share Increasing cost of sales Changing market- product mix New Product launch that falls short of sell-through expectation New market entries posing competitive threat5
Sales Strategy is Step 1 to World Class STEP Account Segmentation Lead Management Segment accounts by Ideal Customer Profile Generate MQL/SAL/SQL Develop 1 Sales Strategy Sales Process Map customer/prospect buying process to custom built sales process Develop Channels Determine optimal route to market 2 Go-to-Market Plan Sales Force Structure Organizational model effectiveness vs. efficiency Sales Force Size Match selling capacity to market demand 3 Design Sales Force Build Sales Infrastructure Create performance conditions for optimal results 4 Infrastructure6
1 – AssessPerformanceEnvironmentThings like Corporate Strategy, Business Life Cycle, Market Dynamics How are you at Sales 2.0? 88
Assess Performance Environment • Review existing documentation • Research industry markets • Interview executives and management • Survey Sales Force • Survey Customers • Mystery Shop competition9
2 – Evaluate Organizational Design Look at Sales Structure, Value Chain, Sales Channel, Processes/Tools 110 0
Evaluate Organization DesignQuestions to Consider-How do you apply? Is Compensation inciting correct behavior? Is there an active Performance Mgmt. plan in place? Does the CRM platform maximize efficiencies?11
3- ConductCompetitive AnalysisIncluding Stakeholder analysis and identification of competitive openings 1 12 2
Competitive Analysis Competitive Intelligence links sales strategy to competitive response Content Information Competitive Business Generation Aggregation Strategy Action Intelligence Magazines Newswires Business Intelligence Competitor Profiling Product Dev. SEC Filings Software Communications SWOT Analysis Business Dev. Web Sites News Portals Brand Trend Analysis Public Relations Census Online Directories Marketing Position Simulation Marketing Market Research Vertical Portals Human Resources Forecasting Information Newspapers News Portals Suppliers Internal & External Research Shops Mergers/Acquisitions Experts Monitoring Financial Tailoring Archiving13
4 - Develop Buyer Personas. Don’t just try to understand who your customer is…. Understand how they buy. 1 Otherwise you cant tailor your sales methodology to their buyer methodology.144
With ROI models, Change Management Plan, Sequencing of improvement initiatives Requires a Sales Force Effectiveness team to carry out 115 5
Develop Roadmap Clear roadmap in developing sales strategy to achieve corporate goals SOP Success Momentum Systems, processes and communication Strategies are Standard Build successfully Operating executed and Procedure Implement creating Design and execute measurable Develop the defined results Research and systems, processes strategies define the and marketplace, communications strategies and that drive results measures of success16
Sample Target Metrics for Roadmap 1. Achieve $350MM in current revenue by end year 2012 2. Achieve $150MM growth in revenue from new business by end year 2012 3. Improve EBITDA 15% by end of 2012 (from 10.1% to 15%) 4. Improve Customer Experience (in top 50% for CSI) 5. Improve Retention in Key Positions (10% annually)17
Best Practices in Sales Strategy • Ensure active and visible CEO/Business Unit Leader participation • Agree on financial & operational term definitions • Plan and execute robust communications • Garner continuous cross-company engagement • Deploy/contract talented resources to carry out build & improvement efforts • Don’t forget to link to Corporate Strategy • Continually refresh strategy as needed19
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