B2B Sales Management Strategy
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The document provides guidance on developing an effective sales and marketing management strategy. It outlines key principles such as disciplined pipeline management, methodical client base growth, and a balanced compensation model. It also describes elements of an effective sales process such as defined sales stages, use of subject matter experts, and a unified multi-channel marketing strategy. The overall strategy aims to support scalable, profitable growth.
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B2B Sales Management Strategy
- 1. © Copyright Martin Korsin 2009 Sales and Marketing Management StrategySales and Marketing Management Strategy
- 2. © Copyright 2009 Martin KorsinSales and Marketing Growth Strategy Guiding Principles Disciplined pipeline management Methodical client base growth Balanced compensation model Consistent account management Defined and measured sales process Efficient use of Subject Matter Experts Unified multi-channel marketing and messaging strategy Scalable profitable growth model
- 3. © Copyright 2009 Martin KorsinSales and Marketing Growth Strategy Disciplined pipeline management…. Does the client have this need and budget? Do we have a relationship? Do we have thought leadership Do we understand the buying process? Has this client bought this from us before? Will they again? Do we have a coach? Do we know the economic, administrative, technical, user and executive buyer? Is there a burning platform? Do we know and understand the real problem we are solving? For each role have we completed the question ladder? For each role have we completed the complex solution process? Do we know the price points? Have we answered the mail? Have we delivered value to the stakeholders? Have we understood the competition? Have we met the price points? Has everybody said yes? Have we eliminated competition? Have we closed all contractual issues? Is the contract signed? Did work Start? Qualified Client 5% Qualified Deal 10% Qualified Process 25% Qualified Response 50% Qualified Sale 75% Qualified Revenue 100% Revenue Visibility • Pipeline Control Points. • Deal does not advance until all qualifiers are satisfied • Sales methodology is built into revenue reporting and forecasting • probability an expression of the number of deal we are like to close going forward from this point in the pipeline (NOT a revenue forecast) • Revenue visibility only at qualified response Conversion and Pipeline Progression Strategy
- 4. © Copyright 2009 Martin KorsinSales and Marketing Growth Strategy ….while methodically growing the client base… Existing Customers New Customers Same market More existing solutions New solutions Existing solutions New Customers New Markets Existing solutions • Sell more of the same to existing clients • Sell new stuff to existing clients • Sell the same stuff to like clients • Sell like stuff to different clients
- 5. © Copyright 2009 Martin KorsinSales and Marketing Growth Strategy ….using a balanced compensation model… Compensation Model Constants Average Signing Value 1,250,000$ Average Signing Duration (yrs) 3 Average Gross Margin 40% Expected Income at quota 250,000$ Expected Fixed Income of total comp 50% Total Number of Deals per annum 6 Total Signing Value 7,500,000.00$ Signing Commission 0.50% Revenue Commission 1.00% Profit Commission 3.00% Fixed Compensation (100K Base) 125,000.00$ Fixed Compensation Signings Revenue Profit Year Year 1 Year 2 Year 3 Year 4 Signing $7,500,000.00 $7,500,000.00 $7,500,000.00 $7,500,000.00 Revenue $1,250,000.00 2,500,000.00$ 2,500,000.00$ 1,250,000.00$ Revenue $1,250,000.00 2,500,000.00$ 2,500,000.00$ Revenue $1,250,000.00 2,500,000.00$ Revenue $1,250,000.00 Total Annual Revenue $1,250,000.00 $3,750,000.00 $6,250,000.00 $7,500,000.00 Income Fixed Compensation $ 125,000.00 $ 125,000.00 $ 125,000.00 $ 125,000.00 Signing Commission $ 37,500.00 $ 37,500.00 $ 37,500.00 $ 37,500.00 Revenue Commission $ 12,500.00 $ 37,500.00 $ 62,500.00 $ 75,000.00 Profit Comission $ 10,000.00 $ 30,000.00 $ 50,000.00 $ 60,000.00 Total Earnings $ 185,000.00 $ 230,000.00 $ 275,000.00 $ 297,500.00 % of Revenues 15% 6% 4% 4% This does not take into account commission sunsetting. Typically you would sunset or reduce revenue and profit commission after no more than 2 years The first year of a sales person is nearly always an investment Total variable compensation paid as a % of signings quota achievement, quarterly Typically compensation will be weighted toward business objectives for profitability, new business growth or revenue maintenanceVariable Compensation
- 6. © Copyright 2009 Martin KorsinSales and Marketing Growth Strategy …with systematic account management,… 1-5 primary accounts – supporting 90-120% of quota – support 3-5 years of signing attainment – detailed account plans 3 -20 secondary accounts – supporting 30-50% of quota – support 1-3 years of signing – primary account prospect – high level account plans 20-100 leads in new accounts – 10-20% of quota – primary account suspect – hand-off for development Account assignment, lead assignment strictly sales management function Account Exec Leads Secondary Primary Accounts Accounts
- 7. © Copyright 2009 Martin KorsinSales and Marketing Growth Strategy … a defined and managed sales process,… Centralized, automated, integrated management – Pre Sales Support • Resource allocation for meetings, RFPs, contract review, solution development • Tracking in-flight sales support activities and costs • Resource Allocation – Pipeline and Forecasting • Pipeline progression and conversion ratio management • Deal Progression, revenue forecasting by month • Critical deal monitoring • Quota management • Revenue Reporting – Mobility • Integration of critical sales data into mobile devices – Sales Assets • Presentations, references, case studies, RFP responses, Statements of Work, Contracts – CRM • Activity, contact, relationship, account, calendar opportunity, pipeline tracking and management – Leads and Campaigns • Lead progression management from entry through disposition/ conversion • Lead source management • Email campaigns, shows, client visits – Financials • Integration with financial systems • Invoices and revenue tracking for closed deals • Consistent sales and finance revenue recognition across customers, markets and segments – Delivery • Signed Contracts • Status Reports • Contract Profitability Tracking • Client Project Participants • Project Plans – Proposal Generation • Scheduling • Document Management CRM Pre-Sales Support Pipeline and Forecasting Mobility Financials Delivery Proposal Generation Leads Campaigns Sales Assets Sales, Pre-Sales Support, Operations, Accounting, Delivery, Service and Executive Management share a common view of customers, pipeline and revenue Maximum visibility to all about customer interactions All sales assets need to be in one place, under one version control system. Effective CRM is central to efficient and effective management of growth
- 8. © Copyright 2009 Martin KorsinSales and Marketing Growth Strategy …and efficient use of Subject Matter Experts… Sales Sales Support Meetings Solution Development Proposal Development Marketing Support Thought LeadershipRequests Support` Delivery Organization Allocated, qualified resources CRM Account ExecsAccount ExecsAccount ExecsAccount ExecsAccount Execs Technical Generalists Proposal Writer Technical Generalists Proposal Writer Admin Delivery Organization Solution Development Architects Architects Architects Architects Delivery Management Project ManagersProject ManagersProject ManagersProject Managers Sales Support Sales Organization Admin Sales Management High Level Process Model High Level Organizational Model Meetings Solution Development Proposal Development Marketing Support Thought Leadership Sales Asset GenerationSales Asset Generation
- 9. © Copyright 2009 Martin KorsinSales and Marketing Growth Strategy …reinforced by unified multi-channel messaging and marketing W O W E D + SHOWS + PR + Partners Webinars On-Line Web Site Email Demos Thought Leadership Lead Generation Brand Promotion Community Value Customer Acquisition Acceptance Loyalty
- 10. © Copyright 2009 Martin KorsinSales and Marketing Growth Strategy …supports a scalable, profitable growth model Customers who can support quota Salespeople who can meet quota Process to manage quota Producers who can deliver quota VP Sales Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Stage 1 VP Sales Director Sales Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Stage 2 Director Sales Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Director Sales Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Director Sales Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec VP Sales Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Account Exec Director Sales Director Marketing Director Marketing Marketing Resource Marketing Resource Marketing Resource Marketing Resource Stage 2 Signings = $40-60MM Signings = $100-120MM Signings = 160-180MM
- 11. © Copyright Martin Korsin 2009 Sales TrainingSales Training Some elements of a larger scale training program
- 12. © Copyright 2009 Martin KorsinSales and Marketing Growth Strategy Agenda Understanding the Buying Process Complex Solution Sale Grid The Question Ladder The Power of the Group Winning RFPs Complex Solution Sales Questions Objections The Sales Detective Negotiation Sales Excellence
- 13. © Copyright 2009 Martin KorsinSales and Marketing Growth Strategy Understand the Buying Process – Phase 1 - Discovery • Do you see the pain • Do they see pain • Do they have the budget • Do they trust you – Phase 2 –Selling a solution • Diagnosis Confirmed • Impact Confirmed • Assessment Confirmed – Pre-proposal review crafted – Pre-proposal review presented – Pre-proposal review digested • Proposal Presented – Phase 3 – Closing a complex sale • Technical buyer accepts • Economic buyer accepts • Executive buyer accepts • Competition eliminated • Contract Agreed • Contract Signed • Work Started Roles – Professional/Personal – Executive Buyer • Budget Maker – Economic Buyer • Budget Holder – Technical Buyer • Evaluator – Coach • Non-buying stakeholder – Administrative Buyer • Enabler – Power Players • Users • Executive • Friends and Mentors Document the buying process – At every stage, for every buyer • where were you • where are you • where will you be The role of RFPs in the buying process The role of sourcing/purchasing
- 14. © Copyright 2009 Martin KorsinSales and Marketing Growth Strategy Complex Solution Sale Summary 9 So…6….So…3….So…Confirm 8…What if5…What else 2…Is it because Control 7…How About 4…Who else1…Tell meOpen VisualizeAssessDiagnoseProfessional/ Personal 9 So…6….So…3….So…Confirm 8…What if5…What else 2…Is it because Control 7…How About 4…Who else1…Tell meOpen VisualizeAssessDiagnoseProfessional/ Personal 9 So…6….So…3….So…Confirm 8…What if5…What else 2…Is it because Control 7…How About 4…Who else1…Tell meOpen VisualizeAssessDiagnoseProfessional/ Personal 9 So…6….So…3….So…Confirm 8…What if5…What else 2…Is it because Control 7…How About 4…Who else1…Tell meOpen VisualizeAssessDiagnoseProfessional/ Personal Personal/Professional – Executive – Economic – Administrative – Technical – User Influencers – Coach – Peers – Subordinates – Bosses Competitive Threat Action Plans
- 15. © Copyright 2009 Martin KorsinSales and Marketing Growth Strategy The Question Ladder Your Company Overview – Why do you exist? • Value of your service to your clients • Value of your service relative to your competition Current state and process walkthrough – What do you do? • Sources • Inputs • Information and Process Flows • MIS and Resource assets used in adding value and transformations • Outputs • Digital formats, end users • Currently planned technology and process expansions Desired state – What do you want? • Added value • Transformation Business Benefits – Why do you want it? • Improved quality, cost, velocity and flexibility • New products, and markets • Improved competitiveness • Improved personal position Current limitations – Why don’t you have it? • Technology assets • Process limitations • Human and physical resources (people and space) • Training/Knowledge Blue Sky – What could you have? • Your competition • Best practice • What we have done elsewhere • Your clients future needs Current Business Model – What can you afford? • Current operational spend • Current planned investment • Current profit • Planned profit attributable to planned spend Change Road Map – How can we help? • Process • Technology • Resources • Measurement Next Steps – Do you believe?
- 16. © Copyright 2009 Martin KorsinSales and Marketing Growth Strategy Power of the Group Building a common vision Highlighting internal communications deficiencies Adding value as a partner Surfacing objections, divisions, competitive threats Identifying powerbases Accelerating sales cycles
- 17. © Copyright 2009 Martin KorsinSales and Marketing Growth Strategy Winning RFPs Sell high Create the RFP Include yourself in the process Change the rules, add value Create buying pressure – Selling to non-buyers • Executive management • Stakeholder management • Users • Beneficiaries • NOT just the buying roles – Selling to influence • Achievement + recognition = Value • Sell to those who have value to those who buy You can’t make friends when you need them – Build relationships when you are between sales not during them
- 18. © Copyright 2009 Martin KorsinSales and Marketing Growth Strategy Objections Objections are your friends – Surface them, don’t hide them What else, what else, what else….. Conditions, objections, stalls
- 19. © Copyright 2009 Martin KorsinSales and Marketing Growth Strategy The Sales Detective Businesses – Have cost, quality, performance, competitive pressures – Your buying roles are impacted by them – Understand the pressure - you understand the buyer Buyers have – Subordinates, bosses, peers – even if they are not visible they play roles Value + Recognition = Power Business and technology processes have – Logical precedents and antecedents – Current state assessment generates questions about precedents and antecedents Inferences generate questions that – seem (and often are) targeted, insightful and relevant – gain buyer respect
- 20. © Copyright 2009 Martin KorsinSales and Marketing Growth Strategy Negotiation – Basic Points Prepare – Time and patience win – Time and effort is power Shut-up – They speak, you listen Increment – Small reductions in price – Small increases in scope Aim high – Those who ask get Change rules – All rules are arbitrary – Expand scope – Buyers set buying processes – Sellers can change selling – “Our process” has the same validity as “their process Concede – Small things that don’t matter – Slowly Don’t accept no for an answer – Best and final does not exist – Your answers can change – What part of “no” don’t you understand Assume nothing – You have power – Your position is never secure Nothing for something – Non-cash value for money – Total cost, not unit cost – Risk reduction has value Write the summary – Document conclusions
- 21. © Copyright 2009 Martin KorsinSales and Marketing Growth Strategy Negotiation – Critical Success Factors Plan to plan Identify everything that is known and unknown Know what you don’t know Closing and Deadlock Tactics Concession Tactics | Logistics Fact finding Tactics | Zeroing in and Probing Tactics Dirty Tricks | Authority Tactics | Persuasion Tactics Tactics: Time | Opening Demand and Offer | Initiative Strategy: Information Gathering | Motivation | Decision Making | Selling Reachable Target | Team Selection Strategy | Power Sources and Limits Strategy: Win-Win | Relationship | Product and Market
- 22. © Copyright 2009 Martin KorsinSales and Marketing Growth Strategy Sales Excellence Selling – the right deal (can we win this deal) – to the right customer (can I sell more stuff and leverage the time) – the right way (do I have a selling process) – at the right time (do I understand the buying process) – in other words…winnable deals, worth winning in accounts worth having Disciplined – Prospecting – Closing – Servicing Personal pipeline management Time Management