Growing Outsourcing Revenues Sales Readiness Essentials By 3forward Feb Final

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3forward's presentation to IAOP World Summit 2010 outsourcing conference. 3forward presented to the provider (outsourcer) track.

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Growing Outsourcing Revenues Sales Readiness Essentials By 3forward Feb Final

  1. 1. The 2010 Outsourcing World Summit® Disney’s Yacht & Beach Club Convention Center● Lake Buena Vista, Florida February 15-17, 2010 Growing Outsourcing Revenues Sales Readiness Essentials Dan Hudson, President Matt Smith, Exec VP www.IAOP.org
  2. 2. The 2009 Outsourcing World Summit® Outsourcing World Summit® Growing Outsourcing Revenues - Sales Readiness Essentials - 1. Key elements of a sales readiness plan 2. Examples of sales readiness best practices 3. Five most important measurements to tracking sales success 4. Old rules and new tools: what still applies in the 2.0 world and how to make it work Copyright © 2010 IAOP. All Rights Reserved.
  3. 3. The 2009 Outsourcing World Summit® Outsourcing World Summit® Copyright © 2010 IAOP. All Rights Reserved.
  4. 4. The 2009 Outsourcing World Summit® Outsourcing World Summit® 1988 Panthers 2007 Panthers Roster: 53 Players Roster: 67 Players Avg Wt: 171 lbs. Avg Wt: 201 lbs. Over 200 lbs: 7 Players Over 200 lbs: 27 Players Heaviest: 230 lbs Heaviest: 290 lbs Lightest: 125 lbs Lightest: 150 lbs Copyright © 2010 IAOP. All Rights Reserved.
  5. 5. The 2009 Outsourcing World Summit® Outsourcing World Summit® Then Now Copyright © 2010 IAOP. All Rights Reserved.
  6. 6. The 2009 Outsourcing World Summit® Outsourcing World Summit® 1988 Sales Process Rolodex Purchased Lists Cold Calling Presenting Schmoozing Hard Close Lotus, WordPerfect, Act! Copyright © 2010 IAOP. All Rights Reserved.
  7. 7. The 2009 Outsourcing World Summit® Outsourcing World Summit® Sales Process Then List Purchased Direct Mail Marketing Cold Calling Qualifying Sales Presenting Closing Copyright © 2010 IAOP. All Rights Reserved. 7
  8. 8. The 2009 Outsourcing World Summit® Outsourcing World Summit® What Changed? Market Stage Introduction Growth Maturity Worldwide Outsourcing Sales Supplier consolidation, Intense marketing to Increasing sales and reduced sales velocity, establish identity, emergence of sales volume reaches promote awareness competitors steady state Competition is scarce; Market develops a “gold Fewer opportunities drive success is based on the rush” mentality; success need for “smarter” ability to build awareness becomes a numbers approach; success and educate prospects game where the highest based on ability to on a unique value level of hustle wins compete for share using proposition deep account insights and relationships Copyright © 2010 IAOP. All Rights Reserved.
  9. 9. The 2009 Outsourcing World Summit® Outsourcing World Summit® 2010 Sales Process Segmentation, Social Networking, Inbound Demand Creation, Lead Scoring and Nurturing, Educated Buyer, Tool Explosion! Copyright © 2010 IAOP. All Rights Reserved.
  10. 10. Outsourcing World Summit® The 2009 Outsourcing World Summit® Sales Readiness: Segmentation, Targeting, Content Development, Business Intelligence, SEO Lead Creation: Blogging, Webinars, Targeted Campaigns, Value-Added Emails, Social Networks Lead Engagement: Compelling Offers, Calls to Action, Site visit tracking Lead Nurturing: Promotions, Marketing PURLs, White papers Sales Ready Scoring Process Qualification Prove Value Now Sales Decision Copyright © 2010 IAOP. All Rights Reserved.
  11. 11. The 2009 Outsourcing World Summit® Outsourcing World Summit® Today’s Buying Phases Status Priority Step Research Options Validation Choice Quo Shift Backs From Designing Nurturing Programs to Drive Sales©, by Ardath Albee Copyright © 2010 IAOP. All Rights Reserved.
  12. 12. The 2009 Outsourcing World Summit® World Summit® OutsourcingLead Nurturing Drip Marketing / Lead Nurturing of Relevant, Value Add Content Keeps you Visible to Targeted Prospects Status Priority Step Research Options Validation Choice Quo Shift Backs Copyright © 2010 IAOP. All Rights Reserved.
  13. 13. The 2009 Outsourcing World Summit® Understand Landscape Surveillance Summit® Outsourcing World& Insight Prioritize Investments Formulate Value Proposition Engage in Dialogue Status Priority Step Research Options Validation Choice Quo Shift Backs Copyright © 2010 IAOP. All Rights Reserved.
  14. 14. Outsourcing World Summit® Key Elements of the Sales Readiness Plan SALES READINESS Research Markets Targets Message Social Media LEAD CREATION Events Outbound Inbound Nurturing Tools 2.0 SERVICES INTEGRATION Copyright © 2010 IAOP. All Rights Reserved.
  15. 15. The 2009 Outsourcing World Summit® Outsourcing World Summit® Precise Targeting Define segment(s) Establish target client characteristics and attributes – and alternatives (competitive analysis) Classify buyer drivers and considerations Validate and rank prospect types based on target criteria Separate prospects into Tiers 1, 2, and 3 Create sales tools such as Sweet Spot Matrix Copyright © 2010 IAOP. All Rights Reserved.
  16. 16. The 2009 Outsourcing World Summit® Outsourcing World Summit® Challenges To Revenue Planning Aberdeen Lead 2009 CSO Sales Bid To Win Ratios – Lifecycle Management Compensation Survey Aberdeen 2009 July 2009 • 2009 Quota’s up 31% • 81% of BIC use Lead • Best in Class 36% from 2008 Management tools • Reps achieving quota • 16% of total leads • Industry Avg 10% down to 52.4 in 2009 deemed sales ready from 61.2 in 2008 actually close • Laggards 5% • 1 in 4 firms expect • Best in Class firms that less than 50% avg 35% YOY will make quota in increase in annual 2009 revenue • Most firms target • Middle 50% = 18% 70% of sales team to • Laggards = 6% make quota Copyright © 2010 IAOP. All Rights Reserved.
  17. 17. The 2009 Outsourcing World Summit® Outsourcing World Summit® Challenges To Revenue Planning Aberdeen Lead 2009 CSO Sales Bid To Win Ratios – Lifecycle Management Compensation Survey Aberdeen 2009 July 2009 • 2009 Quota’s up 31% • 81% of BIC use Lead • Best in Class 36% from 2008 Management tools • Reps achieving quota • 16% of total leads • Industry Avg 10% down to 52.4 in 2009 deemed sales ready from 61.2 in 2008 actually close • Laggards 5% • 1 in 4 firms expect • Best in Class firms that less than 50% avg 35% YOY will make quota in increase in annual 2009 revenue • Most firms target • Middle 50% = 18% 70% of sales team to • Laggards = 6% make quota Copyright © 2010 IAOP. All Rights Reserved.
  18. 18. The 2009 Outsourcing World Summit® Outsourcing World Summit® Sales Readiness Best Practices Lead Stages A Identified – intend to pursue B Contacting – attempting to engage C Qualifying – introductory dialogue occurring D Engaged – actively discussing opportunities E Idle – lost traction, attempting to re-engage F Cold – lost traction, not currently pursuing Sales Opportunity Stages Probability Activity 1 Opportunity ID'd 0% Potential opportunity identified 2 Idea Discussed 0% Client confirms issues, challenges, need… 3 Concept Solution Delivered 10% Written concept submitted to prospect 4 Solution Meeting Complete 20% Concept discussed; including how and when to begin 5 Full Solution Delivered 40% Solution submitted, including outcomes, timeline & pricing 6 Solution Validated 50% Proposal modified if necessary / Resubmitted 7 Verbal Approval 75% Client decision maker accepts proposal 8 Negotiation of Terms 90% Contract and SOW in review / negotiation 9 Formal Award 100% Contract and SOW signed 10 Opportunity Lost 0% Autopsy / Return to Nurturing 11 Deal Dead or Delayed 0% Return to Nurturing Copyright © 2010 IAOP. All Rights Reserved.
  19. 19. The 2009 Outsourcing World Summit® Outsourcing World Summit® Sales Readiness Best Practices Lead Stages A Identified – intend to pursue B Contacting – attempting to engage C Qualifying – introductory dialogue occurring D Engaged – actively discussing opportunities E Idle – lost traction, attempting to re-engage F Cold – lost traction, not currently pursuing Sales Opportunity Stages Probability Activity 1 Opportunity ID'd 0% Potential opportunity identified 2 Idea Discussed 0% Client confirms issues, challenges, need… 3 Concept Solution Delivered 10% Written concept submitted to prospect 4 Solution Meeting Complete 20% Concept discussed; including how and when to begin 5 Full Solution Delivered 40% Solution submitted, including outcomes, timeline & pricing 6 Solution Validated 50% Proposal modified if necessary / Resubmitted 7 Verbal Approval 75% Client decision maker accepts proposal 8 Negotiation of Terms 90% Contract and SOW in review / negotiation 9 Formal Award 100% Contract and SOW signed 10 Opportunity Lost 0% Autopsy / Return to Nurturing 11 Deal Dead or Delayed 0% Return to Nurturing Copyright © 2010 IAOP. All Rights Reserved.
  20. 20. The 2009 Outsourcing World Summit® Outsourcing World Summit® Five Numbers You Have To Know Revenue Goal Erosion Percentage Average Deal Size Closing Percentage Contract Conversion Copyright © 2010 IAOP. All Rights Reserved.
  21. 21. The 2009 Outsourcing World Summit® Outsourcing World Summit® Successful Revenue Planning Revenue and Sales Goals (Inputs) Revenue Base Revenue and Erosion Targeted Win Revenue Goals Projections Rates Conversion Revenue Current Ba s e Es t. YOY Wi n Contra ct Yea r Objecti ve Revenue Eros i on % Proba bi l i ty Convers i on 2010 $12.00 $6.00 10% 20% 100% 2011 $24.00 $18.40 10% 25% 100% Copyright © 2010 IAOP. All Rights Reserved.
  22. 22. The 2009 Outsourcing World Summit® Revenue and Sales Goals (Inputs) Revenue Outsourcing World Summit® Base Revenue and Erosion Targeted Win Revenue Goals Projections Rates Conversion Revenue Current Ba s e Es t. YOY Wi n Contra ct Yea r Objective Revenue Eros i on % Proba bi l i ty Convers i on 2010 $12.00 $6.00 10% 20% 100% 2011 $24.00 $18.40 10% 25% 100% Three Year Summary Forecast (Results) Revenue Projection Plan 2010-2011 Projected Pro-forma Existing New Forecasted Variance to Base YOY Growth Required New Revenue Total Current Year Year Revenue Erosion Adjusted Base Target Revenue (1) (Table 3) Revenue Objective 2010 $6.00 $0.60 $5.40 $12.00 $6.60 $6.63 $12.03 $0.03 2011 $18.40 $1.84 $16.56 $24.00 $7.44 $7.63 $24.19 $0.18 Pipeline and Quarterly Revenue Projection 2010 2011 Annual Plan Year One Plan Year Two Required Annual Value Value Qualified Closed Converted Pipeline (2) During at Signing CYR 2011 CYR ABR Award Totals (2a) Quarter (3) Q1 Q2 Q3 Q4 2010 Base Q1 Q2 Q3 Q4 2011 Base '10 Q1 Wins $15.00 $3.00 $3.00 0.38 0.75 0.75 1.13 3.00 0.00 0.00 0.00 '10 Q2 Wins $17.50 $3.50 $3.50 0.44 0.88 0.88 2.19 1.31 1.31 1.31 0.00 '10 Q3 Wins $12.50 $2.50 $2.50 0.31 0.63 0.94 1.56 0.63 0.94 1.56 0.00 '10 Q4 Wins $20.00 $4.00 $4.00 0.50 0.50 3.50 1.00 1.00 1.50 3.50 0.00 $65.00 $13.00 $13.00 6.63 6.38 2.94 1.94 1.50 0.00 6.38 0.00 '11 Q1 Wins $12.00 $3.00 $3.00 0.38 0.75 0.75 1.13 3.00 0.00 '11 Q2 Wins $16.00 $4.00 $4.00 0.50 1.00 1.00 2.50 1.50 '11 Q3 Wins $16.00 $4.00 $4.00 0.50 1.00 1.50 2.50 '11 Q4 Wins $20.00 $5.00 $5.00 0.63 0.63 4.38 $64.00 $16.00 $16.00 7.63 8.38 Copyright © 2010 IAOP. All Rights Reserved.
  23. 23. The 2009 Outsourcing World Summit® Outsourcing World Summit® Lead Lifecycle Management Events & Social Media & Webinars Networks Website Score and Prioritize Leads Tracking Tracking Nurture Prospects with Drip Landing Pages & Drip Marketing, Marketing Micro-sites News, Campaigns Track Campaigns and Responses Lead Scoring, Campaign Landing Pages Nurturing View Companies & Prospects Visiting Website / Pages Measure and Track ROI Segmentation Reporting Send E-Newsletters Integrate with CRM Lead Notification CRM System Copyright © 2010 IAOP. All Rights Reserved.
  24. 24. The 2009 Outsourcing World Summit® Outsourcing World Summit® Old School / New Tools: Making It Work Incentive Marketing and Compensation Embrace Sales Sales Alignment Tied With Sales Technologies – Shared Quota Goals Automate Lead Commitment to Management Change Copyright © 2010 IAOP. All Rights Reserved.
  25. 25. The 2009 Outsourcing World Summit® Outsourcing World Summit® Sales Readiness Essentials 1. Carefully select the segments where you can best compete and serve. 2. Be strategic with your sales model. 3. Identify innovative approaches to differentiating yourself. 4. Be unique in communicating your value proposition and benefits. 5. Sales is changing. Competing requires creative investment. 6. Buyers want process improvements and innovation, not just cost cutting. Identify your innovation examples during your presentations. 7. Stop worrying whether the economy is good or bad for outsourcing. 8. Do not ignore existing customers. They are your competitor’s prospect! 9. Consider in-direct selling relationships and alternative channels. 10. Define a sales process for your company and follow it faithfully. Copyright © 2010 IAOP. All Rights Reserved.
  26. 26. The 2009 Outsourcing World Summit® Outsourcing World Summit® Sales in 2010 – Change or Get Run Over Copyright © 2010 IAOP. All Rights Reserved.
  27. 27. The 2009 Outsourcing World Summit® Outsourcing World Summit® For More Information Sales, Marketing and Social Media Experts • Ardath Albee Marketing and Content • Chris Brogan B2B Social Media • Brian Solis Social Media • Dan Zarrella Inbound Marketing • David Meerman Scott Marketing and PR • Gerhard Gschwandtner Sales 2.0 Sales Benchmarking • CSO Insights • Sales Benchmark Index New Tools Directory • 9 categories of sales and marketing best practices and dozens of downloads Copyright © 2010 IAOP. All Rights Reserved.
  28. 28. The 2009 Outsourcing World Summit® Outsourcing World Summit® Visit us at 3forward.com Copyright © 2010 IAOP. All Rights Reserved.
  29. 29. The 2009 Outsourcing World Summit® Outsourcing World Summit® Sales Readiness Join Our Group 3forward Become a Fan 3forward Follow Us Sales Leaders Blog Sales Leader New Tools Directory Resources Copyright © 2010 IAOP. All Rights Reserved.
  30. 30. The 2009 Outsourcing World Summit® Outsourcing World Summit® Dan Hudson Matt Smith Dan.Hudson@3forward.net Matt.Smith@3forward.net Copyright © 2010 IAOP. All Rights Reserved.

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