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Powering B2B sales to economic buyers




                                        TOM PISELLO, Chairman & Founder
http://www.fightfrugalnomics.com
                                        Blog: http://tompiselloroiguy.blogspot.com/

                                        Twitter: @tpisello

                                        http://www.alinean.com




                  Using Outcome-Based Selling to Achieve
                  Better Sales Success
A New Buyer Requires New Strategy & Tactics




           http://www.fightfrugalnomics.com




                                              © 2011 Alinean, Inc.
                                                                     2
Less Discretionary Budget up for Grabs in 2012,
  But Opportunity Exists
                                                                                                    26.7%
   Budget for project was approved and allocated
            during beginning of the year
                                                                                                 26.1%
 Budget was allocated as part of a larger line item
           once need was established
                                                                                    20.6%
        Budget was determined post multiple bids
                                                                            15.8%
   Budget was taken from another line item after
           need was established/clear
                                                                    10.9%
       Determined potential impact through other
             adopters and built a business
                                                      Demand Creation Specialists B2B Buyer Survey - 2011


Sales needs to proactively help facilitate buyer’s realization that:
1. A need exists and it is a priority
2. If opportunity is not addressed it has a cost
3. If opportunity addressed = tangible and significant financial and competitive reward
4. A viable proposed solution is available w/ significant ROI and fast payback
5. The proposed solution represents a good value vs. competitions
                                                                                      © 2011 Alinean, Inc.
                                                                                                             3
Buyer’s Decision Process Significantly Changed

       Took more time to research and consider solutions                                                                  48%

   Utilized a wider variety of sources to research options                                            36%

Did more detailed analysis of costs/ROI of solution before                                         34%
                  finalizing the process

   More internal team members provided their input into                                      30%
                     decision process

Relied more on live customer feedback/recommendations                         21%

  Fewer internal team members provided their input into                16%
                     decision process

                                                             Demand Creation Specialists B2B Buyer Survey - 2011
                                                                Multiple Responses Allowed



Match and facilitate buyer’s decision process:
1. Deliver content to help buyer’s adequately research opportunities and solutions,
2. Provide financial justification and business case tools to prove return on investment
   (ROI),
3. Provide live customer testimonials and advocate communities to help buyers learn from
   peers the best way to solve opportunities with the proposed solutions.
                                                                                                   © 2011 Alinean, Inc.
                                                                                                                                4
B2B Buyers: It’s All About the Benjamins



                                                                                     Focus on Lowest Purchase Price
                                                                                     vs. Best Value

                                                                                     Focus on Total Cost of Ownership
                                                                                     can help facilitate better decision




Source: The Considered Purchase Decision What Matters, What Doesn’t And What It
Means For B2B Marketing and Sales by TriComB2B / University of Dayton School of
Business Administration http://www.cmo.com/conversion/purchase-survey-finds-price-
total-cost-ownership-most-important


                                                                                                     © 2011 Alinean, Inc.
                                                                                                                            5
Buyers are Economic-Focused


 •   Size




More Leads to Close Same   Executive Scrutiny     Reduced Deal Size
 Amount of Business
                           Longer Sales Cycles   Increased Competition
More Stakeholders
                               Stalled Deals
                                                         © 2011 Alinean, Inc.
                                                                                6
Unfortunately, Product / Solution Selling Still Reigns




                                                            Forrester Sales Enablement Forum- 2011


Sales Recognizes Issue as Well:

26% of BtoB sales reps surveyed cited “inability to communicate value
messages” as the number one inhibitor to achieving quota - SiriusDecisions
                                                                                © 2011 Alinean, Inc.
                                                                                                       7
Fight Frugalnomics™ with Value Selling & Marketing


Product Focus                     Solution Focus                   Value Focus
Discussion:                                                         Discussion:
                                  Discussion:
•   Customer knows issue                                             • Prescriptive & Quantified
                                   • Customer knows issues &
•   Tie features / functions to      desired outcome                 • Discover… Is customer
    needs                                                              aware of issue?
                                   • Questions to discover pain
•   Compares product                 points
    alternatives                                                     • Diagnose… How bad is it?

•   Feature • Function • Price     • Recommend solution to           • Quantify … Value of change
                                     solve pain
                                                                     • Compare … Value vs. Status
Drive: Sales Led: Product         Drive: Sales Led: Pain-Point         Quo / Competition
Driven                            Driven
                                                                    Drive: Diagnostic Led: What
                                                                    is issue & value of change?




                                       Solution
        Vendor                                                    Trusted Advisor
                                       Provider                                © 2011 Alinean, Inc.
                                                                                                      8
Facilitating the Buyer’s Journey w/ Interactive Sales &
 Marketing Tools
BUYER’S JOURNEY

      Loosening                           Exploring        Committing         Justifying
                        Committing                                                                Making the
        of the                             possible           to a               the
                         to change                                                                 selection
      status quo                          solutions         solution           decision

               DISCOVERY                          CONSIDERATION                        DECISION


Content Marketing & Sales Enablement Strategy
                                         Help             Align
                         Align           buyer          solution                                      Validate/
   Create                                                                                              reinforce
                     problem with      identify           with             Make the
 awareness                                                                                              choice
                        business       needs in         specific         business case
around a new
                     issues; drive      solving          sets of          for change                  Prove best
  problem
                        urgency           the           business                                         value
                                       problem           needs

            PROVOCATIVE APPROACH                                           VALUE APPROACH


 Interactive White           Diagnostic Assessment
                                                             ROI Analysis Tools            TCO Comparison Tools
       Papers                        Tools




                                                                                            © 2011 Alinean, Inc.
                                                                                                                   9
Case Study: Microsoft Simple-to-Save




        http://www.fightfrugalnomics.com




                                           © 2011 Alinean, Inc.
                                                                  10
Microsoft Simple-to-Save Cost Savings Analysis




     http://www.microsoft.com/optimization/tools/overview.mspx
                                                                 © 2011 Alinean, Inc.
                                                                                        11
Quick Savings Analysis




                         © 2011 Alinean, Inc.
                                                12
Few Data Points to Estimate Savings




                                      © 2011 Alinean, Inc.
                                                             13
Overview of Results




                      © 2011 Alinean, Inc.
                                             14
Capability & Maturity Benchmarks




                                   © 2011 Alinean, Inc.
                                                          15
IT & Business Savings




                        © 2011 Alinean, Inc.
                                               16
Savings Details




                  © 2011 Alinean, Inc.
                                         17
Review & Customize Results




                             © 2011 Alinean, Inc.
                                                    18
Roadmap Recommendations




                          © 2011 Alinean, Inc.
                                                 19
White Paper Reports




                      © 2011 Alinean, Inc.
                                             20
PPT Report




             © 2011 Alinean, Inc.
                                    21
Case Studies: OfficeMax ProForma




      http://www.fightfrugalnomics.com




                                         © 2011 Alinean, Inc.
                                                                22
Proactive Profiling to Generate Provocative Savings Reports




                                                   © 2011 Alinean, Inc.
                                                                          23
Profile + Research = Savings Opportunity




                                           © 2011 Alinean, Inc.
                                                                  24
Select Scope of Proposed Services




                                    © 2011 Alinean, Inc.
                                                           25
Quantifying the Cost of Doing Nothing




                                        © 2011 Alinean, Inc.
                                                               26
Estimate Savings Potential




                             © 2011 Alinean, Inc.
                                                    27
Compelling Savings From Enterprise Programs




                                              © 2011 Alinean, Inc.
                                                                     28
Urgency via “Speed to Savings”




                                 © 2011 Alinean, Inc.
                                                        29
Word and PPT Report Options




                              © 2011 Alinean, Inc.
                                                     30
Tool Development Process & Benefits




       http://www.fightfrugalnomics.com




                                          © 2011 Alinean, Inc.
                                                                 31
Typical Development Project



• Demand-Gen                             •   Sales Enablement
 –   Week 1: Kickoff                         –   Week 1: Kickoff
 –   Week 2: Initial Prototype               –   Week 2: Initial Prototype
     Spreadsheet                                 Spreadsheet
 –   Week 3: 2nd Prototype Spreadsheet       –   Week 3: 2nd Prototype
 –   Week 4: Initial Tool Alpha                  Spreadsheet
 –   Week 5: Initial Tool Beta               –   Week 5: Initial Tool Alpha
 –   Week 6: Initial Tool Pilot              –   Week 7: Initial Tool Beta
 –   Week 8: Final                           –   Week 8: Initial Tool Pilot
                                             –   Week 10: Final




                                                                   © 2011 Alinean, Inc.
                                                                                          32
What is Required of You and Your Team?


•   Collect and Provide Prior Art:            •   Participation
    – Benefit statements                          – Weekly meeting
    – Benefit / ROI white papers                  – Weekly review
    – Spreadsheet or other tools                  – Alpha, Beta & Pilot review
    – ROI / Benefit oriented case studies


•   Create Tool Development /
    Review Team
    –   Marketing/ sales enablement
        usually leads project
    –   ROI subject matter expert(s)
    –   Enterprise sales representation
    –   Channel sales representation
    –   Pilot review team (select customers
        / partners)


                                                                        © 2011 Alinean, Inc.
                                                                                               33
Facilitating the Buyer’s Journey w/ Interactive Sales &
 Marketing Tools
BUYER’S JOURNEY

      Loosening                           Exploring        Committing         Justifying
                        Committing                                                                Making the
        of the                             possible           to a               the
                         to change                                                                 selection
      status quo                          solutions         solution           decision

               DISCOVERY                          CONSIDERATION                        DECISION


Content Marketing & Sales Enablement Strategy
                                         Help             Align
                         Align           buyer          solution                                      Validate/
   Create                                                                                              reinforce
                     problem with      identify           with             Make the
 awareness                                                                                              choice
                        business       needs in         specific         business case
around a new
                     issues; drive      solving          sets of          for change                  Prove best
  problem
                        urgency           the           business                                         value
                                       problem           needs

            PROVOCATIVE APPROACH                                           VALUE APPROACH


 Interactive White           Diagnostic Assessment
                                                             ROI Analysis Tools            TCO Comparison Tools
       Papers                        Tools




                                                                                            © 2011 Alinean, Inc.
                                                                                                                   34
Value of Alinean Business Value Selling / Marketing Tools


                                             Break through the noise with value add / personalized
Connect higher in organization & speak
                                              content
language of economic buyers / CFOs           Elevate relationships from vendor to trusted advisor


                                             Drive 50% more leads / connections compared to other
Engage on value vs.
                                              initiatives
feature / function / price                   Reduce discounting and increase deal size by 20%


Automate development of personalized         Reduce proposal time from days to hours
assessments and business case proposals      Reduce sales cycles by 20-30%


                                               Convert 240% more prospects to sales than other programs
Prove more value, lower costs and              Convert 240% more prospects to sales than other programs
                                            
                                               Increase the competitive success rate of proposals by over
                                                Increase the competitive success rate of proposals by over
competitive advantages                          60%
                                                60%


Deliver credibility with research and 3rd    Increase the credibility and acceptance of proposals by
                                              100%
party validation
                                             Convert existing Excel sales tools into on-line interactive
Develop sales tools with lower TCO            applications with no programming
                                             SaaS delivery
                                             Self-authoring for shared workload

                                             Enable all direct and channel sales teams with a scalable
Standardize and centralize value
                                              sales /marketing tool suite.
selling / marketing efforts                  Collect customer data, track and drive usage

                                                                                     © 2011 Alinean, Inc.
                                                                                                             35
Questions?




             http://www.alinean.com/faq/
                                           © 2011 Alinean, Inc.
                                                                  36
Next Steps

Alinean powered tools can significantly upgrade the quality of sales interactions
throughout the buying process, allowing prospects to drive at the beginning
through simpler, self-service tools and sales to provide greater depth as the buying
process proceeds – SiriusDecisions 2010


   1.   Your Sales & Marketing Ready to Do Business with Frugal Buyers?
        Take this Diagnostic Assessment to Find Out.

   2.   Research White Paper: Sales Enablement and the Economic Buyer

   3.   Over 200% ROI from a Value Selling Program Sound Impossible?
        Find Out for Yourself

   4.   Why Alinean? Alinean Vendor Profile (SiriusDecisions)



                                       http://www.fightfrugalnomics.com
                                                                      © 2011 Alinean, Inc.
                                                                                             37
Thank You!




http://www.fightfrugalnomics.com




                                   © 2011 Alinean, Inc.
                                                          38

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Webcast: Using Outcome-Based Selling to Achieve Better Sales Success

  • 1. Powering B2B sales to economic buyers TOM PISELLO, Chairman & Founder http://www.fightfrugalnomics.com Blog: http://tompiselloroiguy.blogspot.com/ Twitter: @tpisello http://www.alinean.com Using Outcome-Based Selling to Achieve Better Sales Success
  • 2. A New Buyer Requires New Strategy & Tactics http://www.fightfrugalnomics.com © 2011 Alinean, Inc. 2
  • 3. Less Discretionary Budget up for Grabs in 2012, But Opportunity Exists 26.7% Budget for project was approved and allocated during beginning of the year 26.1% Budget was allocated as part of a larger line item once need was established 20.6% Budget was determined post multiple bids 15.8% Budget was taken from another line item after need was established/clear 10.9% Determined potential impact through other adopters and built a business Demand Creation Specialists B2B Buyer Survey - 2011 Sales needs to proactively help facilitate buyer’s realization that: 1. A need exists and it is a priority 2. If opportunity is not addressed it has a cost 3. If opportunity addressed = tangible and significant financial and competitive reward 4. A viable proposed solution is available w/ significant ROI and fast payback 5. The proposed solution represents a good value vs. competitions © 2011 Alinean, Inc. 3
  • 4. Buyer’s Decision Process Significantly Changed Took more time to research and consider solutions 48% Utilized a wider variety of sources to research options 36% Did more detailed analysis of costs/ROI of solution before 34% finalizing the process More internal team members provided their input into 30% decision process Relied more on live customer feedback/recommendations 21% Fewer internal team members provided their input into 16% decision process Demand Creation Specialists B2B Buyer Survey - 2011 Multiple Responses Allowed Match and facilitate buyer’s decision process: 1. Deliver content to help buyer’s adequately research opportunities and solutions, 2. Provide financial justification and business case tools to prove return on investment (ROI), 3. Provide live customer testimonials and advocate communities to help buyers learn from peers the best way to solve opportunities with the proposed solutions. © 2011 Alinean, Inc. 4
  • 5. B2B Buyers: It’s All About the Benjamins Focus on Lowest Purchase Price vs. Best Value Focus on Total Cost of Ownership can help facilitate better decision Source: The Considered Purchase Decision What Matters, What Doesn’t And What It Means For B2B Marketing and Sales by TriComB2B / University of Dayton School of Business Administration http://www.cmo.com/conversion/purchase-survey-finds-price- total-cost-ownership-most-important © 2011 Alinean, Inc. 5
  • 6. Buyers are Economic-Focused • Size More Leads to Close Same Executive Scrutiny Reduced Deal Size Amount of Business Longer Sales Cycles Increased Competition More Stakeholders Stalled Deals © 2011 Alinean, Inc. 6
  • 7. Unfortunately, Product / Solution Selling Still Reigns Forrester Sales Enablement Forum- 2011 Sales Recognizes Issue as Well: 26% of BtoB sales reps surveyed cited “inability to communicate value messages” as the number one inhibitor to achieving quota - SiriusDecisions © 2011 Alinean, Inc. 7
  • 8. Fight Frugalnomics™ with Value Selling & Marketing Product Focus Solution Focus Value Focus Discussion: Discussion: Discussion: • Customer knows issue • Prescriptive & Quantified • Customer knows issues & • Tie features / functions to desired outcome • Discover… Is customer needs aware of issue? • Questions to discover pain • Compares product points alternatives • Diagnose… How bad is it? • Feature • Function • Price • Recommend solution to • Quantify … Value of change solve pain • Compare … Value vs. Status Drive: Sales Led: Product Drive: Sales Led: Pain-Point Quo / Competition Driven Driven Drive: Diagnostic Led: What is issue & value of change? Solution Vendor Trusted Advisor Provider © 2011 Alinean, Inc. 8
  • 9. Facilitating the Buyer’s Journey w/ Interactive Sales & Marketing Tools BUYER’S JOURNEY Loosening Exploring Committing Justifying Committing Making the of the possible to a the to change selection status quo solutions solution decision DISCOVERY CONSIDERATION DECISION Content Marketing & Sales Enablement Strategy Help Align Align buyer solution Validate/ Create reinforce problem with identify with Make the awareness choice business needs in specific business case around a new issues; drive solving sets of for change Prove best problem urgency the business value problem needs PROVOCATIVE APPROACH VALUE APPROACH Interactive White Diagnostic Assessment ROI Analysis Tools TCO Comparison Tools Papers Tools © 2011 Alinean, Inc. 9
  • 10. Case Study: Microsoft Simple-to-Save http://www.fightfrugalnomics.com © 2011 Alinean, Inc. 10
  • 11. Microsoft Simple-to-Save Cost Savings Analysis http://www.microsoft.com/optimization/tools/overview.mspx © 2011 Alinean, Inc. 11
  • 12. Quick Savings Analysis © 2011 Alinean, Inc. 12
  • 13. Few Data Points to Estimate Savings © 2011 Alinean, Inc. 13
  • 14. Overview of Results © 2011 Alinean, Inc. 14
  • 15. Capability & Maturity Benchmarks © 2011 Alinean, Inc. 15
  • 16. IT & Business Savings © 2011 Alinean, Inc. 16
  • 17. Savings Details © 2011 Alinean, Inc. 17
  • 18. Review & Customize Results © 2011 Alinean, Inc. 18
  • 19. Roadmap Recommendations © 2011 Alinean, Inc. 19
  • 20. White Paper Reports © 2011 Alinean, Inc. 20
  • 21. PPT Report © 2011 Alinean, Inc. 21
  • 22. Case Studies: OfficeMax ProForma http://www.fightfrugalnomics.com © 2011 Alinean, Inc. 22
  • 23. Proactive Profiling to Generate Provocative Savings Reports © 2011 Alinean, Inc. 23
  • 24. Profile + Research = Savings Opportunity © 2011 Alinean, Inc. 24
  • 25. Select Scope of Proposed Services © 2011 Alinean, Inc. 25
  • 26. Quantifying the Cost of Doing Nothing © 2011 Alinean, Inc. 26
  • 27. Estimate Savings Potential © 2011 Alinean, Inc. 27
  • 28. Compelling Savings From Enterprise Programs © 2011 Alinean, Inc. 28
  • 29. Urgency via “Speed to Savings” © 2011 Alinean, Inc. 29
  • 30. Word and PPT Report Options © 2011 Alinean, Inc. 30
  • 31. Tool Development Process & Benefits http://www.fightfrugalnomics.com © 2011 Alinean, Inc. 31
  • 32. Typical Development Project • Demand-Gen • Sales Enablement – Week 1: Kickoff – Week 1: Kickoff – Week 2: Initial Prototype – Week 2: Initial Prototype Spreadsheet Spreadsheet – Week 3: 2nd Prototype Spreadsheet – Week 3: 2nd Prototype – Week 4: Initial Tool Alpha Spreadsheet – Week 5: Initial Tool Beta – Week 5: Initial Tool Alpha – Week 6: Initial Tool Pilot – Week 7: Initial Tool Beta – Week 8: Final – Week 8: Initial Tool Pilot – Week 10: Final © 2011 Alinean, Inc. 32
  • 33. What is Required of You and Your Team? • Collect and Provide Prior Art: • Participation – Benefit statements – Weekly meeting – Benefit / ROI white papers – Weekly review – Spreadsheet or other tools – Alpha, Beta & Pilot review – ROI / Benefit oriented case studies • Create Tool Development / Review Team – Marketing/ sales enablement usually leads project – ROI subject matter expert(s) – Enterprise sales representation – Channel sales representation – Pilot review team (select customers / partners) © 2011 Alinean, Inc. 33
  • 34. Facilitating the Buyer’s Journey w/ Interactive Sales & Marketing Tools BUYER’S JOURNEY Loosening Exploring Committing Justifying Committing Making the of the possible to a the to change selection status quo solutions solution decision DISCOVERY CONSIDERATION DECISION Content Marketing & Sales Enablement Strategy Help Align Align buyer solution Validate/ Create reinforce problem with identify with Make the awareness choice business needs in specific business case around a new issues; drive solving sets of for change Prove best problem urgency the business value problem needs PROVOCATIVE APPROACH VALUE APPROACH Interactive White Diagnostic Assessment ROI Analysis Tools TCO Comparison Tools Papers Tools © 2011 Alinean, Inc. 34
  • 35. Value of Alinean Business Value Selling / Marketing Tools  Break through the noise with value add / personalized Connect higher in organization & speak content language of economic buyers / CFOs  Elevate relationships from vendor to trusted advisor  Drive 50% more leads / connections compared to other Engage on value vs. initiatives feature / function / price  Reduce discounting and increase deal size by 20% Automate development of personalized  Reduce proposal time from days to hours assessments and business case proposals  Reduce sales cycles by 20-30%  Convert 240% more prospects to sales than other programs Prove more value, lower costs and  Convert 240% more prospects to sales than other programs   Increase the competitive success rate of proposals by over Increase the competitive success rate of proposals by over competitive advantages 60% 60% Deliver credibility with research and 3rd  Increase the credibility and acceptance of proposals by 100% party validation  Convert existing Excel sales tools into on-line interactive Develop sales tools with lower TCO applications with no programming  SaaS delivery  Self-authoring for shared workload  Enable all direct and channel sales teams with a scalable Standardize and centralize value sales /marketing tool suite. selling / marketing efforts  Collect customer data, track and drive usage © 2011 Alinean, Inc. 35
  • 36. Questions? http://www.alinean.com/faq/ © 2011 Alinean, Inc. 36
  • 37. Next Steps Alinean powered tools can significantly upgrade the quality of sales interactions throughout the buying process, allowing prospects to drive at the beginning through simpler, self-service tools and sales to provide greater depth as the buying process proceeds – SiriusDecisions 2010 1. Your Sales & Marketing Ready to Do Business with Frugal Buyers? Take this Diagnostic Assessment to Find Out. 2. Research White Paper: Sales Enablement and the Economic Buyer 3. Over 200% ROI from a Value Selling Program Sound Impossible? Find Out for Yourself 4. Why Alinean? Alinean Vendor Profile (SiriusDecisions) http://www.fightfrugalnomics.com © 2011 Alinean, Inc. 37