Growing revenues


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How to accelerate revenues from early sales to repeatable enterprise sales.

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Growing revenues

  1. 1. Revenue Acceleration Bring Value to Customers John Akbari JohnAkbari.comMay 2012
  2. 2. Scaling to enterprise sales Buyers…  Risk averse  Not open to change  Prefer to keep status quo  Not interested in “science projects”  Not buying  Not investing  Not looking Image
  3. 3. Buying changes... Time & money P&L Barriers to Buying Research ...including “no sale”Run the businessGrow the business SelectionImprove the businessCash flows ExploreRisk ProblemPaybackHurdle rate InvestigateIRR What is technology x? I need x. Solution Analysts Use Cases Research Metrics Benchmarks What product I need a should I use? vendor. Solutions RFI Tools PoC
  4. 4. selling changes Time & money P&L Barriers to Buying ...including “no sale”Run the businessGrow the businessImprove the business Prospects areCash flowsRiskPayback Not aware of solutionsHurdle rateIRR Not aware of good solutions Not aware of your solutions Not aware of you
  5. 5. Consultative selling  ? Images from
  6. 6. Improve your customers business Add value to your customers, not your product. Your real value is cash flow improvement for your customer. Approach potential customers with a way to improve revenue. Find potential customers you can help – before they find you. Work with the customer, for the customer, on shared goals...revenues
  7. 7. Barriers to Buying… Your competition is not your (only) competition  Other business drivers  Other investments  P/E ratios, cash flow, profitability Your offerings will be ranked by  Investment required  Timeframes  Risk 
  8. 8. …must be overcome Focus on your customers’ business first, then the technology. Suggest how you can help the business. Approach the business early-on to create budget. Predict your impact, with specifics:  Results  Time to results  Investments  Payback  Risk of execution  What the prospect needs to do to achieve
  9. 9. Convey confidence through competenceSell to installed base and new customers by focusing on Customers revenues Customers risk Customers timeframesBy showing Your knowledge Your experience Your performance Your
  10. 10. Help customers invest to achieve results Avoid “no sale” – approach all stakeholders early  Business, financial, technical, operational, end users  Leverage them as your internal sale team  Avoid “well get back to you” Partner with prospect through an investment process  Qualify upfront (improve close rate)  Compare prospects metrics with other customers metrics (value)  Proof of Concept as Proof of Value (reduce prospects risk)  Avoid surprises (reduce your risk) Win over other investments and create budgets by predicting  How much? (cost and payback)  How long? (time to results)  How sure? (implementation risk, costs, partners)
  11. 11. Consultative selling  revenue improvement Suggest Ask Discover Revenue improvement project Diagnose Deliver About possible projects Design Concept adapted from Exceptional selling, Jeff
  12. 12. Sell with revenue improvement projects… delivery ?Value proposal Hit and run deal signed Time Concept derived from The innovators dilemma, Clayton
  13. 13. …repeated over time…CumulativeValue Short-term results over the long term
  14. 14. …to grow margins, deal size, close rate…Cost ofsales Project 1 Project 2 Project 3 Time
  15. 15. …and successCustomerand VendorCumulativeValue Project 1 Project 2 Project 3
  16. 16. Revenue improvement is a cycle... Suggest Discover Revenue improvement project Diagnose Deliver Design Concept adapted from Exceptional selling, Jeff
  17. 17. ...for both vendor and customers Trusted Revenue advisor improvement Vendor
  18. 18. Begin with customer and end-customer KPIs Metrics on your customers and their customers  Proof of Concept should be Proof of Value  Financial, technical, business, operational Analyze how a new prospects metrics compare with metrics of similar customers Customize metrics per use case Approach prospects with those metrics Help your customer by helping your customers
  19. 19. Before/after KPIs are keyMetric Before After (Your impact)Deals per yearSales cycleClose rateRevenue per client per yearRevenue per sales execGlobal pipelineRevenue to investment ratio(cost of sales)Avg
  20. 20. Accelerating sales Use case 1 Use case 2 ... Analysis  Sales, marketing, support  Win/loss  Financial details (ROI, RoR, TCO...)  Customer feedback  Competition 
  21. 21. Repository  Selection criteria  References  Demonstrations  Sales tools  Technical documents  Qualification matrix 
  22. 22. tC ec tB Approach customers and t ec p c os p pe A os prospects Pr os Pr Pr  Warm calls  Leverage partners $ $ $  Demonstrations  Qualify  ... Factory image Catalog image Concept adapted from Consultative Selling, Mack
  23. 23. Selecting revenue improvement projects Easier to quantify cost-savings than revenue increase Cost-savings  Cash flows  RoR = Σ NPV year  Payback  Profit Revenues  Evaluating future potential, not actual  Many uncontrollable variables NPV expected from revenue projectsProfit index = ------------------------------------------------- investment Concept adapted from Consultative Selling, Mack Hanan
  24. 24. Triggers for new revenue improvement projectsCompetitive analysis Partners Consultants Financial filings Contacts Annual
  25. 25. Evidence shortens the sales cycle Technical buyers  Business buyers  Architecture  References  Demonstrations  Value delivered  Evaluations  Time to deliver  Technology press  Risk  Benchmarks  Press coverage  Endorsements Operations buyers  Finance buyers  Time to deliver  Market share  Migration  Vendor financials  Training  Risk  Risk  Third party support  Third-party
  26. 26. Core competencies + partnersSupply Core products Solutions •Product 1 •Core technical •Product 2 •Client-specific •With partners Partner Leverage Delivery Support •Professional svcs •Core product •Training •Client-specific •Partners •PartnersApply
  27. 27. Image:
  28. 28. ResourcesFor recommended books and blogs on value-based selling, pricing, and competitive analysis, visit John Akbari +1 (917) 675