An Introduction to Pipeline Management

1. Strategic Value Selling (SVS) – Pipeline
A Different Perspective on Selling

2. “What?”
(What is your offering?)
“So what?”
(What’s the impact on my
business?)
“How much?”
(Can you quantify the impact on
my business?)
“Can you prove it?”
(Can you offer proof of your
ability to deliver through
references, tracking, and/or
guarantees?)
Four Questions From the Customer
Or your SEN Account Manager, or Greg
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3. Are you good at sales?
Emerging Salesperson - Little ability to manage a customer and no ability to
manage the threat of a competitor – The Peddler
Traditional Salesperson – places great emphasis on ‘personality selling’, and
establishing a rapport with customers, but who may have a blind spot with
regard to the competition.
Competitive Sales Professional – adept at managing both sets of issues,
achieves competitive advantage by the way he or she sells.
Relationship Manager – their value is integral to the customers success so they
achieve competitive immunity
What stage are you and what stage is your customer?

4. Pipeline – Enables Measurement
To measure what we are doing with this business
Deals in the pipeline indicate that you are active in the market
No deals in the pipeline indicate that you are inactive in the market
Increasing amount ($) and number of deals indicate that you are active in the
market
Decreasing ($) and number of deals indicate that you not active in the market
Deals that increase in % indicate that you are in control of the sales process
Deals that decrease in %, slip, or disappear, indicate that you are not in
control of the sales process

5. Pipeline – Enables Decisions
Increase a Partners territory
Increase a partners products
Relax the measurement variables
Relax the margins
Support a partner with marketing funds
Provide additional technical support as we are confident the sales process is
in control

6. Pipeline – ensures your success
The amount ($) of pipeline indicates whether you have a chance of reaching YOUR
required revenue. You will lose deals to; competition, timing, budget cuts, companies
going out of business, personnel leaving etc etc
In order to reach YOURrequired revenues you must have 3 X YOUR required
revenue in the pipeline fo any period of time
If you want to achieve $50K in the next six months, you need either
$150K in the pipeline for closing in that period, before the period starts
OR
$100K at 60% and above for the period
OR
Maybe $80K at 80% and above for the period

7. Pipeline – Rules – for you and for me
Forecasting
Your forecast revenue/OI or whatever you are measured on must be +/- 5% on the quarter
(next three months). It must also enable you to be on or above target at the end of each
quarter or month. If it is not, you are not doing enough lead creation – get on the
phone!!!!!!
Surprises
We don’t like surprises, that is changes to the forecast number, increases are maybe OK but
shows you are not in control, and decreases are unacceptable and so is slippage. This very
important if you want to sell your business and if you want another job!!!
Lesson from the top – this is the way Rob/Glenn think
Make all the numbers in every sector. If you can’t make all the numbers make the overall
revenue. If you can’t make the revenue, make the margin. If you can’t make the margin, cut
costs – that’s you and me!!!
IF YOU DON’T UNDERSTAND THE ABOVE, OR CANNOT DO IT – GET OUT OF SALES!!!

8. Pipeline – So how do you do it
Ask questions – MONEY, APPLICATION, NEED, TIMESCALE
The hardest of these is timescale
Year
Estimate the year the customer will buy, by asking when the financial year is. If you are
speaking to them now and they are budgeting for 2015, the year is obviously 2015.
Then ask when they want it up and running. If they say September, suggest they will have to
order in August, but that is holiday period, so it will be in June?
Firstly estimate the year, then the quarter, then the month.
Put the deal in on the last day of the period
For the year – Dec 20
For the quarter – 31 March, 30 June, 30 Sept, 20 Dec
You can bring a deal forward, but you cannot slip it.
If you slip it – YOU ARE NOT IN CONTROL

9. Timing – The Compelling Event
The customer will be driven by a Compelling event. When BIOVIA asks when the
order is due, you must know when and why – you must know the Compelling event.
The ‘Compelling Event’ is driven by the customers need to act to either:
– Solve a problem
– Take advantage of an opportunity
Note: There can be multiple Compelling Events

10. Timing – The Compelling Event
The customer will be driven by a Compelling event. When BIOVIA asks when the
order is due, you must know when and why – you must know the Compelling event.
The ‘Compelling Event’ is driven by the customers need to act to either:
– Solve a problem
– Take advantage of an opportunity
Note: There can be multiple Compelling Events
Questions to ask:
• Why does the customer have to act and by when?
• What are the implications of the project being delayed?
• What will be the quantifiable impact on the customer’s business?
• What is the effect if the customer does nothing – the low cost option?
• What is the cost of doing nothing
• Why are they buying it in the first place, why don’t they just keep the money or buy something
else?
The compelling event is there – you have to find it – and I want to know it!!!

11. Timing and % - Contract extract
At three months,
you must be at 60%
or above!!!!

12. Examine your prospect M.A.N.T.
• MONEY – Do they have money – everyone has money! Your job is to
ensure that their money is allocated to your project, by ensuring you give
the best return for their investment
• APPLICATION– You are talking to a Lab with no ELN – they have an
Application – you may have to show it to them – but it is there – If you are selling
ELN – every decent size Lab should be in your pipeline.
• They have a NEED– it may be for an LES system and you know the need is to;
satisfy compliance regulations, reduce errors, improve processes – that’s why
everyone buys LES – you may have to show them but they have a need –every
QA/QC department should be on your pipeline.
• TIMESCALE – NOW you know about timescale
These are required to allocate technical resource – if you can’t answer the questions,
you ‘ll go to the bottom of the list

14. DID YOU EVER
NOTICE .....
Most salespeople win orders because of
outstanding sales abilities . . . . but lose orders
because of _______________________(?)
(please insert the desired excuse)
-price too high - lack of support - company reputation
-product too limited - customer incompetence - product is too old
-lack of advertising - manager incompetence - product is too new
-lack of resources - co-worker incompetence - I’m not feeling well
-competitor is tough - economy is good - I’ve been too busy
-competitor is unfair - economy is bad - your special excuse (?)

15. At the end of your call – ask yourself
• Is Accelrys differentiated and if so does it
impact the productivity … and profitability
of the customer?
• What has the person I’m talking to taken
away from the conversation, in terms of the
value we can give and our differentiation in
terms of his options. How will he articulate
that to his colleagues?
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16. In the final analysis it’s individuals that
compete … and in most cases, the better
salesperson wins …
… regardless of who they represent
YOU ARE IN SALES
MAKE SURE YOU ARE THE BEST

17. Want to know more?
Consulting rates apply
Contact greg.nutkins@btinternet.com
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