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5 Critical Steps for Selling Managed Services - Adam Harris
This document provides an overview of critical steps for selling managed services, including identifying the decision makers, understanding value propositions, qualifying leads, and managing sales teams. It discusses moving from capital expenditures to operating expenditures, the importance of vision and values, and recruiting the right salespeople. The key steps outlined are establishing credibility, qualifying needs and motivations, presenting solutions, presenting pricing, and signing contracts. People engagement and getting the right people on the sales team are also covered.
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5 Critical Steps for Selling Managed Services - Adam Harris
- 1. 5 Critical stepsfor selling Managed Services + Bonus - ‘What to sell them’ @freshmindset1 @transmentum
- 2. Agenda • CapexVs Opex • Value Proposition • Decision Making Unit • Process + Managing Sales people • People on the bus • What to sell them
- 3. Introducing Transmentum •Who are we? – A group of experienced senior managers with proven track records for facilitating rapid growth in profit, turnover & people. All of our team are accredited high growth specialists. Paul Fileman Strategy Marketing & Demand Generation Adam Harris Facilitator Entrepreneurial Coach Steve Potts Sales Strategy Management & Execution
- 4. Paul Smith GTICoach Jim Wiggin High Growth Coach Andrew Bailey GA/GTI Coach Dr John Collins GA/GTI Coach Martin King-Turner GA/GTI Coach Ian Skidmore Interim manager Mike Butler IT Recruitment Specialist Tony Brookes Management Training Introducing some of our team Pam Johnson Interim Manager Tim Anderson GA/GTI Coach
- 5. Our Mission Tofacilitate the development, growth and empowerment of European Technology and ICT businesses such that their business revenues, profits and skills continually increase.
- 6. Our Values •Professional in everything we do • Friendly and Honest • Specialist and Focussed • Committed to delivering value • Respect
- 7. MINDSET • LEARNand or RE-LEARN • What we know that we know • What we know that we don’t know • What we don’t know what we don’t know!
- 8. What is thepurpose of a business? “The ONLY purpose of a business is to attract, maximise and retain customers. Everything which contributes to this is an investment. Anything which doesn’t is a cost!” Royston Guest “Are your sales team an investment or a cost?”
- 9. The Importance ofVision Mission and Values • Vision – where you are going • Mission – what you do to get there • Values – how you do it Further reading on this subject can be found here http://www.members.transmentum.com
- 10. Change and causes • Recent global recession • Reduction in available CAPEX move to OPEX • New technology (Managed Services) • Fall in the cost of bandwidth
- 11. Which means •Today Financial Directors make the decisions • IT directors and IT managers position may be under threat • Your sales team may be talking to the wrong people
- 12. SO, WHO MAKESTHE DECISIONS AROUND HERE THEN ?
- 13. Who are thedecision making unit? Users Influencer Payer The “person” with the Means Authority & Need (M.A.N.) Choosers Authoriser
- 14. Identifying target markets • Geography/Sector B2B or B2C • Most likely to buy • May have bought from you before • Case studies and references • Specialist products/services and/or expertise
- 15. Value Proposition Challenge Problem Pain
- 16. Value Proposition Ineed to buy thousands of pencils for use in my university. The ones we bought last term often broke and needed sharpening. The exams start next week.
- 17. Value Proposition Perceived Value Perceived Cost Further reading on this subject can be found here http://www.members.transmentum.com
- 18. Identifying routes tomarket • Directly employed sales team • Distributors/resellers • Sales agents • On-line • Referrals programme • Retail presence on the high street • A combination of the above
- 19. Supplier strategy Itsno longer about beating your suppliers up for the best price You are looking for a “partnership” that will endure for years to come!
- 20. Understanding what sellingis all about
- 21. Solution selling isdifferent • Beware of unmet need – do they know that there is a solution to their pain? • Agree the solution with the prospect • Always agree the next step at every stage
- 22. Five Critical Steps 1. Establish credibility – Provide evidence 2. Qualification – Identify their needs & motivations 3. Present a solution – demonstrate the value of your solution and why it is different from alternatives 4. Present the price – Confirm clearly & confidently that you can meet their needs 5. Sign the contract – Confirm that they understand what they have bought and collect the cash
- 23. Delivering WOWs WOW Expected Product Hotel Room Bed Bath Shower Minibar Towels Bar Restaurant WiFi Kettle TV Personal Parking Free Internet Chocolates Concierge Service Spa Sessions Overnight Carwash Pillow Choice Free Umbrella
- 24. A COMPELLING EVENTHAS A TIME COMPONENT AND FORCES A CHANGE OF BEHAVIOUR
- 25. Compelling events •ALWAYS HAVE THESE THREE COMPONANTS • Time, Cost, Quality – And sometimes these days • Compliance
- 26. Qualification DMU MANBudget What is the compelling event and when is the next step? Need Who are the competition and can they do it?
- 27. Managing Sales Teams Achieving Outstanding Sales Performance
- 28. The Dating andMarriage Analogy • “Commodity” type sales (Dating) – Simple – Short sale cycle – Compelling event driven – ROI easy to demonstrate – Within budget expectations – Limit to long term commitment
- 29. The Dating andMarriage Analogy • “Managed Service” sales (Marriage proposals) – More Complex – Longer sales cycle – Need creation required – ROI demonstrated through consultative selling – Longer term commitment based on trusted relationship
- 30. Professional Sales TeamBehaviour
- 31. You cannot educatethe market • They don’t care • They don’t have time • They don’t want to know • They won’t understand And that’s why they invited you in to see them
- 32. What is aClosing Ratio A closing ratio is defined as the number of completed sales that a person makes in relation to the number of sales presentations that he or she makes to a QUALIFIED prospect.
- 33. What closing ratiosshould I expect? • Business Owner 1 in 2 • Sales Manager/Major accounts 1 in 2 • Account manager (Farmer) 1 in 3 • New Business (Hunter) 1 in 4-5 • New starter (first couple of months) 1 in 7
- 34. Pipeline Value ClosingRatio SIMPLES = this months business results
- 35. Hunters Focus onthe acquisition of new clients
- 36. Farmers Focus onretaining clients and winning incremental business
- 37. STOP Don't expectone sales person to be both
- 38. So how doI recruit the right sales people? • Write a clearly defined job description for hunters and farmers • Have a clearly defined set of values and build them into your recruitment process • Develop incentive schemes that encourage the behaviour you require
- 39. Sales People •Know your numbers – Selling is a numbers game more than any other business discipline • Do your team communicate • Planning and organisation – Successful sales people are highly organised and pro-active • Attitude – The most important thing anyone can give you is their time so respect it • Listening – Successful people use their ears more than their mouth – Losers tell people what they want • Successful sales people take the time to establish their own credibility and that of the company – Losers dive straight in and talk about products
- 40. Remember verbal ordersare NOT worth the paper they are written on
- 41. People – Youneed to Lead, Let Others Manage • You alone are responsible for Culture • Ensure the Coaching is continual • Be visible– Communicate “As we look ahead into the next century, leaders will be those who empower others.” Bill Gates
- 42. How Engaged AreYour People? 10% increase in engagement = 1% increase in customer satisfaction Rational Commitment Discretionary Effort Performance Emotional Commitment Intent to Stay Loyalty Gallup Employee Engagement Index Survey - repeated every 2 years since 2001 - 27m employees in GB
- 43. Measure Engagement –12 Q’s ENGAGED “Loyal, productive, find work satisfying” NOT ENGAGED “Not psychologically committed to their role, may leave if the opportunity presents itself” ACTIVELY DISENGAGED “Disenchanted, vocal or militant in showing their negative attitude towards work” 19% 61% 20%
- 44. The 12 Questions 1. Do I know what is expected of me at work? 2. Do I have the materials and equipment I need to do my work right? 3. At work, do I have the opportunity to do what I do best everyday? 4. In the last seven days, have I received recognition or praise for doing good work? 5. Does my manager or someone at work seem to care about me as a person? 6. Is there someone at work who encourages my development? 7. At work, do my opinions seem to count? 8. Does the mission/purpose of my company make me feel my job is important? 9. Are my co-workers committed to doing quality work? 10. Do I have a good friend at work? 11. In the last six months, has someone at work talked to me about my progress? 12. This last year, have I had the opportunity at work to learn and grow?
- 45. Get the RightPeople on the Bus • Hire for attitude, train for skills • Are your hiring managers trained in interviewing techniques? • Ensure there is a robust appraisal processes
- 46. And the WrongOnes Off the Bus “My main job was developing talent. I was a gardener providing water and other nourishment. Of course, I had to pull out some weeds, too“ Jack Welch
- 47. What to SellThem • TOLD • UNTOLD • UNSOLD • SOLD • List of Features Check List
- 48. Thank You •BONUS • 8 Top Tips for IT Companies – please give me your Business card or send me an E-mail and I will send through