The document outlines key aspects of business-to-business (B2B) sales management and strategy, emphasizing the importance of strategic selling and consultative selling models. It includes details on sales representative profiles, compensation structures, lead prediction, and customer metrics, as well as a case study on Groove Networks to illustrate successful sales strategies. The document also discusses the shift towards a consultative sales approach, where understanding customer needs and creating value are prioritized over traditional sales techniques.

1. Strategy, Sales, & Sales Management

2. Strategy, Sales, Sales Management B2B Sales Management 101 B2B Sales Strategy 101 B2B Sales Case Study: Groove Sales & Strategy Reading List

3. B2B Sales Management 101 -- Harsh Reality

4. B2B Sales Management 101 – The Number “Quarteritis…” “ The sun rises & sets on the quarter”

5. B2B Sales Management 101 – Sales Representatives Sales Rep Profile Personable, builds trust High energy Aggressive/”edge” Street Smart (v. book-smart) Listeners/nonverbal Motivated by money 80-20 rule Compensation Base $90k - $100k Commission $125k (plus draw) 0%-50% quota = x%; 50% -100% quota = 2x%; > quota = 3x% Stock options – less important President’s Club Top reps’ pay > CEO’s Measurable & Accountable – high turnover tolerated

6. B2B Sales Management 101 – Strategic Selling Nuclear unit SR, SE, Cnslt, Mgmt Power Selling Champions Coaches Economic Buyer IT, LOB IT, LOB, Prchsg Legal, Finance, BOD Find Pain, Find $ Ask questions/listen/non-verbal

7. B2B Sales Management 101 – Predicting The Future PROSPECTS (Email, URL, Source, HI-IQ Email Nurture) LEADS (Phone #, Lead Conversion Event) NEW CUSTOMERS (CC# and Authorization) Satisfied CHI > 70 Unsatisfied CHI < 70 Marketing Sales Customer Service HubSpot HI-IQ SalesForce.com OPPORTUNITIES (Demo/Trial, 3 per day per rep) SalesForce.com SUSPECTS (HubSpot, WSG; PPC MVT)

8. B2B Sales Management – Predicting the Future The Funnel Visitors Prospects Leads Opts

9. B2B Sales Management 101 -- Predicting the Future The Forecast

10. B2B Sales Management 101 -- Other Accounts Reviews Recruiting (profile) Territory Distribution Compensation Plans Sales Rep Development Sales Process & methodology

11. B2B Sales Strategy 101 Segmentation = Profits 1 Total churn rate (not shown) is calculated as cancelled customers (all time) divided by total customers (all time). Monthly churn rate is total churn rate divided by average customer lifetime of 4.16 months All Customers Avg. Trans. < $3k Avg. Trans > $3k SMBs 28 108 VSBs 21 28 Total 185 Cancelled Customers Avg. Trans. < $3k Avg. Trans > $3k SMBs 3 7 VSBs 11 7 Total 28 Monthly Churn Rate 1 Avg. Trans. < $3k Avg. Trans > $3k SMBs 2.6 % 1.6 % VSBs 12.6 % 6.0 % Total 3.6 %

12. B2B Sales Strategy 101 Crossing the Chasm…

13. B2B Sales Strategy 101 Model Comparison Source: Rethinking the Sales Force ENTERPRISE CONSULTATIVE TRANSACTIONAL Agenda setting Boundaries blur- unclear who is selling and who is buying Problem solving Doing the deal Nature of sale Access to strategy Access to influencers Access to decision maker Prerequisites for success Trust – based Business equals Insider Both parties change fundamentally Benefits – based Client-advisor Cooperative Cost - based Buyer-seller Confrontational Nature of relationship Strategic plan Purchasing stream Event Time horizon Platform fit Values fit Sustainability Importance of problem Solution fit Price-performance tradeoffs Price Availability risk Ease of acquisition Key buyer concerns and decision criteria High Strategic and/or cost importance Limited substitutability Differentiated Customizable Hidden Capabilities Well Understood Readily substitutable Standard items Product or service characteristics

14. B2B Sales Strategy 101 Reason for shift to consultative model Sales 5 Resource commitment needed for consultative selling Sales 4 Sales 3 Sales 2 Sales 1 $ Cost Source: Rethinking the Sales Force Sales 5 Sales 4 Sales 3 Sales 2 Sales 1 % Return 0%

15. B2B Sales Strategy 101 Consultative Model “ Listening and gaining business understanding are more important selling skills than persuasion; creativity is more important than product knowledge.” “ The only single ‘truth’ that seems to be holding true for all sales forces is that they have to create value for customers if they are to be successful. Just communicating the value inherent in their products isn’t enough.” “ It’s a risky strategy in a consultative sales to go to a senior-level decision maker before thoroughly understanding the issues and problems where you can create value. Most good consultative salespeople will first do their homework by working with those influencers in the buying organization who have the best knowledge of the problems and opportunities where the selling organization hopes to create value.” … Quotes from “Rethinking the Sales Force.” Neil Rackham & John DeVincentis

16. B2B Sales Case Study: Groove Networks P0: Evaluation P1: Validation P2: Initial Rollout P3: Enterprise Rollout REVENUE COST OF SALE

17. B2B Sales Case Study: Groove Networks 2 months 2-3 months 6 months ongoing P0: Educate P1: Validate P2: Initial Rollout P3: Enterprise Rollout SALES ACTIVITIES IT call(s) Orientation LOB/LOB IT calls Validation 2 Track Pilot Trial: - IT validation - LOB pain project Implement seats & gather metrics Penetrate new LOBs Engage enterprise apps Horizontal bus processes Groove as standard desktop DNA Integrate w/ Ent Apps Groove broadly deployed and used throughout value chain LOB Pain ID’d IT Champ Validation Process Pain Validated IT Validated $100k+ Multiple Pain/Lob IT Service Offer’g $500K+ MSLSA $1m/yr Every desktop

18. B2B Sales Case Study: Groove Networks Q1 (P)hase Movement P1’s Lowe $46K ESP $50K AMEX $40K Mattel $35K Intermec $22K P2’s HP Mktg $770K OCPA $691K Siemens $111K SAIC $142K Praxair $100K Novartis $86k VLH $522K Army $154K HP C&I $106K KPMG $100K P0’s SPAWAR $18K Hitachi $10K CARE $7K DuPont $7k Verizon $6K ServiceCo $16k

19. Further Reading

20. Questions?