Isurus Sales Effectiveness Analysis Overview


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Summary of Isurus\' approach to sales effectiveness analysis.

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Isurus Sales Effectiveness Analysis Overview

  1. 1. Sales Effectiveness Analysis Isurus Market Research and Consulting | | 617-547-2400
  2. 2. Why Sales Effectiveness Analysis? Improving your sales effectiveness requires a systematic understanding of your strengths and weaknesses across all of the factors that influence the outcome of an individual sale; before you can improve your sales process you need to know what is working and what is not. Sales Effectiveness Analysis
  3. 3. Framework
  4. 4. Framework Isurus’ sales effectiveness analysis framework focuses on 5 dimensions that can be measured, managed and improved. -------Vendor plans for--------- Prospect Purchase Trigger Purchase Process Decision Barriers: Inertia Competitors External Factors -----Vendor controls----- Offering Sales Rep Performance Marketing Product knowledge Corporate Field Product Pricing Identifying needs Responsiveness Qualifying deals Training Compensation Sales Effectiveness Analysis
  5. 5. 1. Prospect behavior Improving sales effectiveness requires understanding 3 key elements of prospect behavior. Prospect Purchase Trigger Purchase Process Decision Sales Effectiveness Analysis
  6. 6. Prospect behavior: Purchase trigger Understanding what triggers the purchase process enables you to target prospects more effectively throughout the marketing and lead generation process. A number of factors can provide the trigger for a prospect to begin evaluating new products and vendors, for example: A change in management often drives a review of all systems and vendors. The failure of an existing system makes prospects more interested in other options. Competitive pressures may force prospects to change the way they do business and the systems they use. Management consultants often identify specific systems or processes in need of improvement. Sales Effectiveness Analysis
  7. 7. Prospect behavior: Purchase process Understanding the typical purchase process enables you to create more effective and targeted corporate marketing efforts, lead generation, sales presentations, and field marketing materials. How are potential vendors identified initially? Who are the decision makers, influencers? WOM, market knowledge Titles/functions involved Trade publications Functional roles and responsibilities Trade shows Number of decision makers Analyst reports Evaluators, influencers, decision makers Consultant recommendations How formal is the process? What criteria are used to create the short list? Documentation Reputation Timeline, milestones Initial pricing Use of decision matrices, score sheets Macro features and functionality Consultant assistance Basic technical infrastructure issues Sales Effectiveness Analysis
  8. 8. Prospect behavior: Decision Sales effectiveness analysis provides the prospect’s viewpoint on why they selected your company or a competitor. What drove the final decision? Offering Brand perceptions Sales tools and tactics Specific features and Sector experience Results of site visits, customer functionality references Confidence in the vendor’s ability Integration to deliver Product demonstrations Pricing Belief the vendor understands the Vendor-provided ROI analysis company’s business needs Vendor attitude; belief the vendor truly cares Sales Effectiveness Analysis
  9. 9. 2. Sales Rep Performance In complex purchases, sales effectiveness depends heavily on the sales rep’s performance. Successful sales reps: Qualify opportunities Successful reps assess opportunities correctly and allocate their time to legitimate prospects, rather than those with little real likelihood of buying. Prospects expect sales and technical reps to know your product inside and out, be Know the product able to speak to how it will work in their environment and how it is different from your competitor’s product. Sales reps must understand the prospect’s business and processes, identify the Connect business problems the prospect wants solved and make the connection to your offering. needs to the offering The level of responsiveness and attention prospects receive in the sales process Deliver a high level influences their perception of what it would be like to work with your organization. of service Compensation program structure can create incentives or barriers to sales force Receive the right effectiveness. kind of compensation and training Sales performance can fall short if training is inadequate, particularly when the sales force is being challenged with a new set of offerings, changing markets, or new types of buyers. Sales Effectiveness Analysis
  10. 10. 3. Marketing: Corporate Sales effectiveness relies heavily on corporate marketing. Corporate marketing activities help Sales gain initial consideration, establish credibility with decision makers, and defend against competitors. Successful corporate marketing: Creates awareness of the company and its offerings Shapes the market’s perception of the company Differentiates the company and its offering from competitors Generates sales leads Sales Effectiveness Analysis
  11. 11. Marketing: Field Sales effectiveness relies heavily on field marketing. Field marketing support and materials—demos, fact sheets, case studies, ROI calculators, play books, etc.-- play an important role prior to, during, and after a sales presentation. Successful field marketing: Demonstrates the technical qualifications of the product Provides proof points of where the product has been successful elsewhere Enables the rep to do ROI calculations, estimate maintenance fees, etc. Compares the product to competitors Field marketing materials must appeal to both prospects and to sales reps - the most carefully crafted field marketing materials do no good if the sales reps do not consider the material useful. Sales Effectiveness Analysis
  12. 12. 4. Offering: Product Sales effectiveness depends on how prospects evaluate the product. The degree to which the product or offering itself influences a sale varies by category and individual deal. In many cases, all of the vendors being considered meet or exceed the prospect’s needs. Evaluation criteria include: Features and functionality – Not which has the most, but which best meets their specific needs Manageability (perceived) Integration with other products and systems Fit with existing business processes How it compares to what they are currently using--why is it better than the status quo Sales Effectiveness Analysis
  13. 13. Offering: Pricing Price always factors into the decision; the key is to understand the true importance of price relative to other factors. Price dimensions include: Initial license or purchase price Implementation and professional services fees Ongoing maintenance and support Cost of upgrades Financing options For most prospects, the ROI of potential solutions is not a key driver of the decision. They are skeptical of anyone’s ability—including their own—to accurately estimate the long term cost and return on any technology investment. When prices fall within a range of tolerance (which varies by product, market, etc.), price is typically not a key factor. When prices among vendors are perceived to vary considerably, price becomes more of an issue. Sales Effectiveness Analysis
  14. 14. 5. Barriers Understanding the common barriers to sales effectiveness enables both marketing and sales to anticipate and react more efficiently. Your product or offering not only needs to be a better fit than your competitor’s, it must also overcome all of the barriers to switching from the status quo. Common barriers include: The perceived value of addressing the business issues The pain and suffering of switching (e.g. data migration, training, downtime, integration) Existing contracts and relationships Preference for suite or best-of-breed solutions Delivery preference External issues such as the economy, market trends, mergers, regulations, etc. also affect the sales process. Products that have exceptionally long sales cycles—and which are more expensive and complex--are more likely to be effected by external issues. Sales Effectiveness Analysis
  15. 15. Outcomes
  16. 16. Outcomes: benefits A systematic Sales Effectiveness Analysis provides benefits across the organization. The benefits of sales effectiveness analysis: Increase win rates A systematic approach to understanding why deals are won or lost increases the probability of winning each individual deal. Allocate sales and marketing resources optimally. Improve efficiencies • Where and how do prospects get information? Inform marketing • What are there current perceptions of your brand? Competitor brands? efforts • What value propositions resonate with them? Why do they buy? • What are your strengths and weaknesses? Competitor’s? • What is the market currently buying? Inform product • What do they ask about? What do they create on their own? development efforts • What do competitors have? Sales Effectiveness Analysis
  17. 17. Outcomes: deliverables What are the deliverables in Sales Effectiveness Analysis? Sales effectiveness deliverables include: Individual reports Reports on individual deals. Summary reports Reports that look across multiple deals to identify patterns and look across time to gauge trends and measure improvements. What drives wins? • Statistical tools to identify key drivers of wins (and losses) • In-depth qualitative interviews explore the factors and dimensions of wins and losses Generally, companies should not expect immediate or short-term improvements—changing the sales process can take as long as the sales cycle. For sales effectiveness analysis to be valuable, managers need to be willing and able to act on the data to make changes in the sales process. Sales Effectiveness Analysis