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Sales strategy workshop 2013 slideshare

The document outlines elements of a business model canvas, including key parts of a business such as value propositions, distribution channels, customer relationships, revenue streams, and more. It provides discussion questions to help define each part of the model for a particular business. Examples are given to illustrate different business model patterns and strategies.

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OFFER DISTRIBUTION CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMSCOST STRUCTURE KEY ACTIVITIES PARTNER NETWORK KEY RESOURCES 20 MIN
4 OFFER DISTRIBUTION CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMSCOST STRUCTURE KEY ACTIVITIES PARTNER NETWORK KEY RESOURCES COMMERCIAL / BUSINESS STRATEGY
OFFER DISTRIBUTION CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMSCOST STRUCTURE KEY ACTIVITIES PARTNER NETWORK KEY RESOURCES 1 What is the customer’s buying behaviour? 2 What is our value proposition? 3 Who are we going to target and why? 4What type of relationships do we want? 5 How are we going to do it?
1. What are their problems and needs? 2. What type of “value” are they looking for? 3. How do they typically buy this type of product / service? OFFER DISTRIBUTION CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMSCOST STRUCTURE KEY ACTIVITIES PARTNER NETWORK KEY RESOURCES
1. What are their problems and needs?
1. Who are the main players and role do they play? Select a few key customers part of the segment. 2. What are the main problems / issues the customer is facing? To uncover them discuss the following items in group: 1. Information: What does he see and hear? Where is that information coming from? 2. Emotions: What do they think and feel? 3. Behaviour: What do they do? 3. Based on your information map identify which are the customer’s problems and which are the solutions (gains) the customer is trying the achieve. Source: Dave Gray, “GOGamestorming” 10 MIN
What are their customers doing? What are their suppliers doing? What are their competitors doing? Political / Legal Changes Technological Changes Economical Changes Social Changes Others …. What is their opinion on all these changes? What do they fear? What do they like? What do they do more, less? What have they stopped doing? What have they started doing? What do they see? What do they hear? What do they think and feel? What do they say and do? What are their main problems / pains? What do they try to achieve / gains ?
1. What are their problems and needs? 2. What type of “value” are they looking for?
Source: Neil Rackham, “Rethinking the Sales Force” Extrinsic Value Buyers Intrinsic Value Buyers Strategic Value Buyers What is the price? How will it solve our problems? How will it improve our business?
1. What are their problems and needs? 2. What type of “value” are they looking for? 3. How do they typically buy this type of product / service?
Source: Neil Rackham, “Rethinking the Sales Force” Strategicorcostimportanceofthesupplier’sproduct Difficulty of SubstitutionLow High Leverage Size Shop Partner Manage Risk
Source: Neil Rackham, “Rethinking the Sales Force” Strategicorcostimportanceofthesupplier’s product Difficulty of SubstitutionLow High Leverage Size Shop Partner Manage risk Which mobile phone should I buy? For which platform should we develop our app?Which bank will give us the best rate? Which training organisation should we use?
1. What are the features, advantages and benefits of your value proposition? 2. What is your sales pitch? OFFER DISTRIBUTION CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMSCOST STRUCTURE KEY ACTIVITIES PARTNER NETWORK KEY RESOURCES
1. What are the features, advantages and benefits of your value proposition?
Benefits Advantages Features “So what?” Ways in which the features can be used to help the user. “What can your product do?” Raw facts and information about the product. “What is it for me?” Ways how the product can be used to meet the needs of the user.
This mobile phone has a colour screen. This mobile phone has an agenda function. You don’t have to keep two agenda up to date because your phone’s agenda will synchronise with your outlook. You said you wanted to know whether you received emails or phone calls during meetings, well with this phone you can do that by setting it on vibrate mode. This phone is very light don’t you think? FEATURE ADVANTAGE BENEFIT
The…(feature)…means you…(advantage)…with the real benefit to you being…(benefit).
1. Select at least 5 features of your value proposition 2. For each feature identify at least one advantage and one possible benefit. 3. Identify which 1 or 2 features really makes your company and product stand out from your competition. 20 MIN
1 2 3 4 5 Note: Which features makes you really unique? 1 2 3 4 5 1 2 3 4 5
1. What are the features, advantages and benefits of your value proposition? 2. What is your sales pitch?
1. Based the information from the FAB and from the customer intimacy map write down your own sales pitch. HINT: A sales pitch is usually small. Do not try to put too much information. 20 MIN
For who is unsatisfied with Our product is a that unlike we have assembled a product that <ideal customer> <current alternative> <product category> <key benefits/advantages> <competition> <unique differentiators>
1. What makes a customer attractive to us? 2. What makes us attractive to our customers? 3. How to differentiate our customer approach? OFFER DISTRIBUTION CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMSCOST STRUCTURE KEY ACTIVITIES PARTNER NETWORK KEY RESOURCES
1. What makes a customer attractive to us?
Customer attributes Risk reduction: working together ‘Hard’ Nature of criteria ‘Soft’ • Spend • Turnover • Volume • Cost to serve • Profit • Contribution • Price • Growth • Strategically important purchase • Appropriate decision- making structure • Right attitude to relationships • Prepared to pay for value • Prepared to invest • Member of targeted segment • Strategic fit • Want non-standard solutions • Specifics (e.g. Speed, compatible systems) • Compatible services Customer needs Opportunities for product/service differentiation Outcomes Financial outcomes/profit
In groups of 5 people: - Select 1 type / segment of customers within your group. - Select 5 to 6 criteria that define the attractiveness of your customers. - Attribute a weight to each of the criteria. - Take 2 customers (preferably extremes) and rate their attractiveness 30 MIN
Customer attractiveness factors (CAFs) 1) Relative importance rating 2) Customer A rating 1-10 3) Customer A Score (=1x2) 2) Customer B rating 1-10 3) Customer B Score (=1x2) 100% Total = Total =
1. What makes a customer attractive to us? 2. What makes us attractive to our customers?
Examples of customer criteria when looking at their suppliers: • Product/service range • Product/service quality • Product/service adaptation to Customer’s needs • Quality of support services • Price • Associated Services (e.g. technical advice) • Expertise • Joint projects, R&D etc. • Reputation and image of supplier • Past experience of working with supplier • Quality of sales/KAM/Customer service staff • Quality of relationships • Easy to do business with • Geographical spread • Value for money
In groups of 5 people: • Select 5 or 6 criteria which you believe are the most important for your customers. • Attribute a weight to each of the criteria. • Put yourself into the shoes of your customers and see how they would rate your own company. 30 MIN
Business Strength 1) Relative importance rating 2) Customer A rating 1-10 3) Customer A Score (=1x2) 2) Customer B rating 1-10 3) Customer B Score (=1x2) 100% Total = Total =
In groups of 5 people: • Select 4 or 5 of your customers. Preferable small and large customers. • Complete the scorecard your just made for each of them and plot the result on your quadrant. 30 MIN
attractiveness 12345678910 1 2 3 4 5 6 7 8 9 10 Business strength
1. What makes a customer attractive to us? 2. What makes us attractive to our customers? 3. How to differentiate our customer approach?
Attractiveness 12345678910 1 2 3 4 5 6 7 8 9 10 Business strength Star Segments or Customers Strategic Segments or Customers Status Segments or Customers Streamline Segments or Customers Invest Maintain Manage for Cash Selectively Invest
1. What type of relationships do we have? 2. What type of relationships do we want? OFFER DISTRIBUTION CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMSCOST STRUCTURE KEY ACTIVITIES PARTNER NETWORK KEY RESOURCES
1. What type of relationships do we have?
Adapted from Millman and Wilson 1994 by McDonald and Woodburn 2000 Customer Strategic Intent Integrated Interdependent Co-operative Basic Exploratory Collaborative Transactional Collaborative StrategicIntent
Board BoardAdmin AdminOps Ops Sales Person Key Customer Contact SONY CUSTOMERS / PARTNERS
Managers Operations Operations Administration Administration Board Board Sales Person Customer Key Contact Managers You CUSTOMERS/PARTNERS
Rating Score Strongly agree 4 Agree 3 Disagree 2 Strongly disagree 1 Does this statement apply to your relationship with your customer? Score If our relationship ended, both parties would find it difficult and complicated to exit There is a real spirit of partnership and trust between our two companies Together we have produced long-term strategic plans for the development of our relationship and business together Any information at all relevant to our business together is passed straight on to the client People at all levels in both organisations are in constant communication with each other We have both realised substantial benefits through working together Total Score
In groups of 5 people: • For each of the customers you platted on your quadrant complete the customer relationships survey. • Review with your colleagues if the relationships is in line with the type of customers. 20 MIN
1. What type of relationships do we have? 2. What type of relationships do we want?
attractiveness 12345678910 1 2 3 4 5 6 7 8 9 10 business strength Integrated Interdependent Co-operative Basic
1. What type of sales approach do we need? 2. Which channels should we use? OFFER DISTRIBUTION CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMSCOST STRUCTURE KEY ACTIVITIES PARTNER NETWORK KEY RESOURCES
1. What type of sales approach do we need?
Strategicorcostimportanceofthesupplier’sproduct Difficulty of SubstitutionLow High Leverage Size Shop Partner Manage risk
Transactional Selling Consultative Selling Partnership Selling Product and service characteristics -Well understood -Readily substitutable -Standard items -Differentiated -Customisable -Hidden capabilities -High strategic and or cost importance - Limited substitutability Key buyer concerns and decision criteria -Price -Availability and risk -Ease of acquisition -Importance of problem -Solution fit -Price performance trade off -Platform fit -Value fit -Sustainability -Sufficient value for effort Time horizon -Event -Purchasing stream -Strategic plan Nature of relationship -Cost based -Buyer seller -Confrontational -Benefit based -Client advisor -Cooperative -Trust based -Business equals -Insider Prerequisites for success -Access to decision maker -Access to influencers -Access to strategy Nature of sale - Doing the deal - Simple Sales process - Short sales cycle - One or few decision makers - Problem / Need solving - Long sales cycle - Complex sales process - Large DMU -Agenda setting - Boundaries blur – unclear who is selling and who is buying.
Car Salesperson. Responsible for persuading customers to buy a Suzuki car. Fleet Service Salesperson. Responsible for persuading Suzuki’s resellers to promote their fleet services. Distribution Salesperson. Responsible for persuading potential resellers to become a Suzuki reseller.
Source: Neil Rackham, “Rethinking the Sales Force” IDENTIFYING EXECUTION GAPS DEFINING PROBLEMS AND NEEDS IDENTIFY SOLUTION SELECT SUPPLIER & PRODUCT PURCHASE DEFINE STRATEGIC AGENDA Transactional SellingConsultative SellingEnterprise Selling
1. What type of sales approach do we need? 2. Which channels should we use?
In groups of 5 people: • Identify what are the different sales and servicing needs of your customers. • How important are each of these services for your customers? 10 MIN
Expert advise and hand holding Training Customisation to specifications Integrated total solution On site setup and installation Self Service Low prices Fast Local Support 24 * 7 Support
PERSONAL SELLING Customer Needs Field Sales Force Value Added Partners Volume Resellers and Distributors Retail/mass Merchants Call Centres Internet Expert advise and hand holding √√√ √√√ √ √√ √√ √ Training √√√ √√√ √√ √ √ √ Customisation to specifications √√√ √√√ √ √ √ √√ Integrated total solution √√ √√√ √√ √ √ √ On site setup and installation √√√ √√√ √√ √√ √ √ Self Service √ √ √ √√√ √√ √√√ Low prices √ √√ √√ √√ √√√ √√√ Fast Local Support √√ √√√ √√ √√ √ √ 24 * 7 Support √ √√ √ √ √√√ √√√
SALES MANAGEMENT ACTIVITIES PERFORMANCE REWARD LOYALTYSALES PEOPLE SALES FORCE DESIGN
1 What type of sales targets do we need? 2 What are the roles and responsibilities of our sales people? 4 What type of sales people do we need? 3 What are the activities part of our sales process? 5 How should we manage our sales people?
1. What is our strategy map? 2. What type of objectives, targets and measures are we going to use for our strategy?
Instructions • In groups by company map your own strategy map. • Focus on the sales & marketing activities • Start by identifying the type of financial objectives you use. Examples • Financial Perspective • Sales Volume per period • Profits per period • Orders per period • Customer Perspective • Customer Acquisition • Customer Satisfaction • Customer Relationship • Process Perspective • Sales Process • Account Planning process • Account Servicing Process • Learning Perspective • Competitor Knowledge • Selling Skills • Customer Knowledge • Market Knowledge 30 MIN
Revenue Better sales approach Increase nbr of new customers Customer must see the added value of sales Better marketing campaigns Online Lead generation Tools Find more events Sales Training Sales & Marketing Objectives Measures Targets • Increase sales revenue • More new customers • Create a customer experience • Standardised consultative sales approach • Increase follow up on leads • More and better marketing campaigns to generate leads • New online tools to capture leads • Participate at new events • Increase training days • Sales Revenue • #contracts • #leads follow up • #proposal • #proposal follow up • #of leads per sales person • #Training days • #Coaching days • #Events Participation Financial Perspective Customer Perspective Internal Perspective Learning Perspective • 1.000.000 EUROS • 1 contract a week • 8 leads a week • 5 proposals a week • 5 follow up calls a week • 400 leads by sales person • Not defined
Instructions For your own strategy map: • Complete the objectives • Define how you are going to measure it. • Set the targets. 20 MIN
Sales & Marketing Objectives Measures Targets Financial Perspective Customer Perspective Internal Perspective Learning Perspective
1. What type specialisation do we need in our sales force? 2. What type of roles and responsibilities will we assign to our sales people?
Complex RANGE of Products SIMILARCustomerNeeds 12345 1 2 3 4 5 Product Driven Specialisation Geography Driven Specialisation Product / Market Driven Specialisation Market Driven Specialisation
Customer Needs Simple 1 2 3 4 5 Complex All our customers and prospects have very similar needs. All our customers and prospects have very specific needs depending on the type of organisation and sector their operate it. Product Range Simple 1 2 3 4 5 Complex All our products are very similar allowing one person to easily sell their all. Our products are very different and each of them require highly specific knowledge from our sales force.
They manage large scale and value of sale. Long negotiation, complex purchase decision, usage of the product is different from consumer sale. Main activities are relationship selling, and prospecting. Sales person is not permitted or expected to take orders. The objective is to create goodwill or educate the customer Main activities are delivering samples, education ad promotional activities and sales service. They seek out new channels and support existing ones. Main activities are channel management, Prospecting, Training and Recruiting and entertaining. Additionally some relationship selling Salesperson predominantly delivers the product. Selling skills as secondary to good servicing skills. Main activities are stock shelving, writing up orders, and checking inventory . Their objective and main activities are providing support to the sales people who are in the field. Maintaining close long-term relationships with organisational customers. They are often involved in team selling. Main activities are providing product support, maintenance and installation and entertaining. The objective is to win new business by identifying and selling to prospects. Main activities are Prospecting and Relationship selling. They provide support to the retailers and wholesales to ensure that their product is well represented and displayed. Main activities are promotion activities and servicing. Retail sales assistant, customer chooses freely the product. Sales person only handles the transaction. Telemarketing taking orders from customers how are calling in. Position where the salesperson is predominantly an order taker Helping the customer to make their choice and complete the transaction. They are involved in complex and highly technical sales as support of the sales team. They play a dual role of sales person and advisor. Main activities are analysing the customer’s problems and needs and proposing a tailored solution. Identifying potential business opportunities by analysing market trends and developing strategies. Closing new business opportunities by coordinating requirements; developing and negotiating contracts.
1. What type of activities should our sales people do? 2. What does our sales process look like?
LEADS DEAL
Consists of activities that enable the customer to become aware of the needs for your product or services. Consists of the activities that will stimulate interest with the customer for your product or service. Consists of the activities that are likely to stimulate your customer to desire / want your product or service. Consists of the activities that will get the customer to actually purchase your product or service. AWARENESS INTREST DESIRE ACTION Applicable for: - Short sales cycles (1 to 2 visits to close a sales) - Consumer sales - Product Based Sales
Prospecting Qualification Presenting Negotiating Closed Follow-up Consists of activities such as generating, qualifying and distributing new leads. Consists of understanding the needs and problems of the customer and determining whether the sales person’s products and services can be of value to the customer. Consists of showing the customer how the supplier’s produces and services will enable them to solve their problems and needs. Consists of agreeing the terms of the purchase with the customer. Consists of all the final contractual activities to close the deal. Consists of all the activities the sales force provides during the after sales of the product. Applicable for: - Long and complex sales cycles - Project Based Sales - Business to Business sales
Consists of activities that enable the customer to become aware of the needs for your product or services. Consists of the activities that will stimulate interest with the customer for your product or service. Consists of the activities that are likely to stimulate your customer to desire / want your product or service. Consists of the activities that will get the customer to actually purchase your product or service. EXPLORATION BASIC CO OPERATTION ALLIGNED Consists of the activities that will get the customer to actually purchase your product or service. INTEGRATED Applicable for: - Long and complex relationships - Key Account based Sales - Business to Business sales
Instructions In groups of 4 or 5: 1. Select the sales stages tat are more appropriate for your sales process. 2. For each of the stages identify all the key activities that the sales people will need to perform. 30 MIN
SALES PROCESS: …..... Stages Activities Tasks / Working procedures
1. What type of sales people do we need?
9 8 7 6 5 4 3 2 1 2 3 4 5 6 7 8 9 CLOSER CONSULTANTRELATIONSHIP BUILDER DISPLAY SALES PERSON
Personality: High energy Manipulative High Need to achieve Risk Takers Skills: Prospecting Presenting Motivation: Status Recognition Personality: Team Leader Professional Enjoys challenges Highly Educated Calculated Risks Skills: Problem Solving Motivation: Mastery Purpose Personality: Likable, fun Hard working Team Player Likes his autonomy Avoids Risks Skills: Developing Relationships Motivation: Autonomy Sense of Belonging Personality: Happy, outgoing Service oriented Not an overachiever Pleases the customer Avoids Risks Skills: Service driven Motivation: Recognition
Customer Needs Sales Person Profile New Product Buyers New System Buyers Established System Buyers Commodity Buyers 85% 40% 25% 20% 50% 82% 46% 30% 15% 55% 89% 35% 10% 9% 18% 70% Source: HR The Chally Group: « How to Match the Type of Salesperson to your customers? »
1. What type of sales approach to adopt ? 2. How will we coach our sales people?
MARKET BASED The market / customer sales revenues determine whether the sales people are doing a good job or not. BEHAVIOUR BASED Adherence to our sales process and activity targets determine whether the sales people are going a good job or not. CLAN BASED Adherence to our company’s values and norms determine whether the sales people are going a good job or not. 97 MARKET BASED BEHAVIOUR BASED CLAN BASED
ADVANTAGES - Keep sales people focus on results. - Easy to apply. - Promote initiative - Consistent across different people in the organisation - Requires very little management attention DISADVANATAGTES - Focus on the end rather then the means - Fails to stimulate growth of professionalism - Short term focus - Requires sales people whit a risk taking profile
Tupperware ladies Self Employed Sales Agents “Jerry Maguire Movie”
ADVANTAGES - Greater opportunity for behaviour modification. - Encourage customer relationships. - Recognize the difference between cause and effort. - Encourages risk averse people to start a career in sales. - Applicable where sales people need very specialised knowledge and skills. DISADVANATAGTES - Requires management ability to observe and diagnose - Require time for observation - Requires impartiality - Likely to be implemented with some inconsistency across the organisation
Retail Salesperson
ADVANTAGES - Requires very little management effort - Encourages loyalty - Recognises that selling is a team based effort. - Promotes autonomy and initiatives - Applicable where sales people need very specialised knowledge and skills - Applicable in highly volatile markets DISADVANATAGTES - Difficult to measure, very subjective - Lack of outcome focus - Requires impartiality - Lacks real accountability
Sales Team
Behaviour or Outcome Based Behaviour Based Outcome Based Clan Based Process Knowledge Perfect Imperfect High Low Abilitytomeasureaccurately andcompletely
Instructions You probably will combine all three approaches in your management style. The question is: 1. How important is each going to be. Draw a line connecting the three legs indicating their relative importance. 2. Describe how you are going to implement the approach in terms of management activities, rewards and targets. 20 MIN
MARKET BASED BEHAVIOUR BASED CLAN BASED
In groups of 2 participants: • GOALS: What are your goals for the this period? • REALITY: How far are you from realising your individual goals? For which goals are you lagging? • OBSTACLE: Why are you lagging? Ask 3 times the why question. • WAY FORWARD: How can we remove the obstacle? 20 MIN Why? Why? Why?

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Sales strategy workshop 2013 slideshare

  • 3.
  • 4.
  • 8.
    OFFER DISTRIBUTION CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMSCOST STRUCTURE KEY ACTIVITIES PARTNER NETWORK KEY RESOURCES 1What is the customer’s buying behaviour? 2 What is our value proposition? 3 Who are we going to target and why? 4What type of relationships do we want? 5 How are we going to do it?
  • 9.
    1. What aretheir problems and needs? 2. What type of “value” are they looking for? 3. How do they typically buy this type of product / service? OFFER DISTRIBUTION CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMSCOST STRUCTURE KEY ACTIVITIES PARTNER NETWORK KEY RESOURCES
  • 10.
    1. What aretheir problems and needs?
  • 11.
    1. Who arethe main players and role do they play? Select a few key customers part of the segment. 2. What are the main problems / issues the customer is facing? To uncover them discuss the following items in group: 1. Information: What does he see and hear? Where is that information coming from? 2. Emotions: What do they think and feel? 3. Behaviour: What do they do? 3. Based on your information map identify which are the customer’s problems and which are the solutions (gains) the customer is trying the achieve. Source: Dave Gray, “GOGamestorming” 10 MIN
  • 12.
    What are theircustomers doing? What are their suppliers doing? What are their competitors doing? Political / Legal Changes Technological Changes Economical Changes Social Changes Others …. What is their opinion on all these changes? What do they fear? What do they like? What do they do more, less? What have they stopped doing? What have they started doing? What do they see? What do they hear? What do they think and feel? What do they say and do? What are their main problems / pains? What do they try to achieve / gains ?
  • 13.
    1. What aretheir problems and needs? 2. What type of “value” are they looking for?
  • 14.
    Source: Neil Rackham,“Rethinking the Sales Force” Extrinsic Value Buyers Intrinsic Value Buyers Strategic Value Buyers What is the price? How will it solve our problems? How will it improve our business?
  • 15.
    1. What aretheir problems and needs? 2. What type of “value” are they looking for? 3. How do they typically buy this type of product / service?
  • 16.
    Source: Neil Rackham,“Rethinking the Sales Force” Strategicorcostimportanceofthesupplier’sproduct Difficulty of SubstitutionLow High Leverage Size Shop Partner Manage Risk
  • 17.
    Source: Neil Rackham,“Rethinking the Sales Force” Strategicorcostimportanceofthesupplier’s product Difficulty of SubstitutionLow High Leverage Size Shop Partner Manage risk Which mobile phone should I buy? For which platform should we develop our app?Which bank will give us the best rate? Which training organisation should we use?
  • 19.
    1. What arethe features, advantages and benefits of your value proposition? 2. What is your sales pitch? OFFER DISTRIBUTION CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMSCOST STRUCTURE KEY ACTIVITIES PARTNER NETWORK KEY RESOURCES
  • 20.
    1. What arethe features, advantages and benefits of your value proposition?
  • 21.
    Benefits Advantages Features “So what?” Ways inwhich the features can be used to help the user. “What can your product do?” Raw facts and information about the product. “What is it for me?” Ways how the product can be used to meet the needs of the user.
  • 22.
    This mobile phonehas a colour screen. This mobile phone has an agenda function. You don’t have to keep two agenda up to date because your phone’s agenda will synchronise with your outlook. You said you wanted to know whether you received emails or phone calls during meetings, well with this phone you can do that by setting it on vibrate mode. This phone is very light don’t you think? FEATURE ADVANTAGE BENEFIT
  • 23.
  • 24.
    1. Select atleast 5 features of your value proposition 2. For each feature identify at least one advantage and one possible benefit. 3. Identify which 1 or 2 features really makes your company and product stand out from your competition. 20 MIN
  • 25.
    1 2 3 4 5 Note: Which featuresmakes you really unique? 1 2 3 4 5 1 2 3 4 5
  • 26.
    1. What arethe features, advantages and benefits of your value proposition? 2. What is your sales pitch?
  • 27.
    1. Based theinformation from the FAB and from the customer intimacy map write down your own sales pitch. HINT: A sales pitch is usually small. Do not try to put too much information. 20 MIN
  • 28.
    For who is unsatisfiedwith Our product is a that unlike we have assembled a product that <ideal customer> <current alternative> <product category> <key benefits/advantages> <competition> <unique differentiators>
  • 29.
    1. What makesa customer attractive to us? 2. What makes us attractive to our customers? 3. How to differentiate our customer approach? OFFER DISTRIBUTION CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMSCOST STRUCTURE KEY ACTIVITIES PARTNER NETWORK KEY RESOURCES
  • 30.
    1. What makesa customer attractive to us?
  • 33.
    Customer attributes Risk reduction: working together ‘Hard’ Natureof criteria ‘Soft’ • Spend • Turnover • Volume • Cost to serve • Profit • Contribution • Price • Growth • Strategically important purchase • Appropriate decision- making structure • Right attitude to relationships • Prepared to pay for value • Prepared to invest • Member of targeted segment • Strategic fit • Want non-standard solutions • Specifics (e.g. Speed, compatible systems) • Compatible services Customer needs Opportunities for product/service differentiation Outcomes Financial outcomes/profit
  • 34.
    In groups of5 people: - Select 1 type / segment of customers within your group. - Select 5 to 6 criteria that define the attractiveness of your customers. - Attribute a weight to each of the criteria. - Take 2 customers (preferably extremes) and rate their attractiveness 30 MIN
  • 35.
    Customer attractiveness factors(CAFs) 1) Relative importance rating 2) Customer A rating 1-10 3) Customer A Score (=1x2) 2) Customer B rating 1-10 3) Customer B Score (=1x2) 100% Total = Total =
  • 36.
    1. What makesa customer attractive to us? 2. What makes us attractive to our customers?
  • 37.
    Examples of customercriteria when looking at their suppliers: • Product/service range • Product/service quality • Product/service adaptation to Customer’s needs • Quality of support services • Price • Associated Services (e.g. technical advice) • Expertise • Joint projects, R&D etc. • Reputation and image of supplier • Past experience of working with supplier • Quality of sales/KAM/Customer service staff • Quality of relationships • Easy to do business with • Geographical spread • Value for money
  • 38.
    In groups of5 people: • Select 5 or 6 criteria which you believe are the most important for your customers. • Attribute a weight to each of the criteria. • Put yourself into the shoes of your customers and see how they would rate your own company. 30 MIN
  • 39.
    Business Strength 1)Relative importance rating 2) Customer A rating 1-10 3) Customer A Score (=1x2) 2) Customer B rating 1-10 3) Customer B Score (=1x2) 100% Total = Total =
  • 40.
    In groups of5 people: • Select 4 or 5 of your customers. Preferable small and large customers. • Complete the scorecard your just made for each of them and plot the result on your quadrant. 30 MIN
  • 41.
    attractiveness 12345678910 1 2 34 5 6 7 8 9 10 Business strength
  • 42.
    1. What makesa customer attractive to us? 2. What makes us attractive to our customers? 3. How to differentiate our customer approach?
  • 43.
    Attractiveness 12345678910 1 2 34 5 6 7 8 9 10 Business strength Star Segments or Customers Strategic Segments or Customers Status Segments or Customers Streamline Segments or Customers Invest Maintain Manage for Cash Selectively Invest
  • 44.
    1. What typeof relationships do we have? 2. What type of relationships do we want? OFFER DISTRIBUTION CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMSCOST STRUCTURE KEY ACTIVITIES PARTNER NETWORK KEY RESOURCES
  • 45.
    1. What typeof relationships do we have?
  • 46.
    Adapted from Millmanand Wilson 1994 by McDonald and Woodburn 2000 Customer Strategic Intent Integrated Interdependent Co-operative Basic Exploratory Collaborative Transactional Collaborative StrategicIntent
  • 47.
    Board BoardAdmin AdminOpsOps Sales Person Key Customer Contact SONY CUSTOMERS / PARTNERS
  • 48.
    Managers Operations Operations Administration Administration BoardBoard Sales Person Customer Key Contact Managers You CUSTOMERS/PARTNERS
  • 49.
    Rating Score Strongly agree4 Agree 3 Disagree 2 Strongly disagree 1 Does this statement apply to your relationship with your customer? Score If our relationship ended, both parties would find it difficult and complicated to exit There is a real spirit of partnership and trust between our two companies Together we have produced long-term strategic plans for the development of our relationship and business together Any information at all relevant to our business together is passed straight on to the client People at all levels in both organisations are in constant communication with each other We have both realised substantial benefits through working together Total Score
  • 50.
    In groups of5 people: • For each of the customers you platted on your quadrant complete the customer relationships survey. • Review with your colleagues if the relationships is in line with the type of customers. 20 MIN
  • 51.
    1. What typeof relationships do we have? 2. What type of relationships do we want?
  • 52.
    attractiveness 12345678910 1 2 34 5 6 7 8 9 10 business strength Integrated Interdependent Co-operative Basic
  • 53.
    1. What typeof sales approach do we need? 2. Which channels should we use? OFFER DISTRIBUTION CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMSCOST STRUCTURE KEY ACTIVITIES PARTNER NETWORK KEY RESOURCES
  • 54.
    1. What typeof sales approach do we need?
  • 55.
  • 56.
    Transactional Selling ConsultativeSelling Partnership Selling Product and service characteristics -Well understood -Readily substitutable -Standard items -Differentiated -Customisable -Hidden capabilities -High strategic and or cost importance - Limited substitutability Key buyer concerns and decision criteria -Price -Availability and risk -Ease of acquisition -Importance of problem -Solution fit -Price performance trade off -Platform fit -Value fit -Sustainability -Sufficient value for effort Time horizon -Event -Purchasing stream -Strategic plan Nature of relationship -Cost based -Buyer seller -Confrontational -Benefit based -Client advisor -Cooperative -Trust based -Business equals -Insider Prerequisites for success -Access to decision maker -Access to influencers -Access to strategy Nature of sale - Doing the deal - Simple Sales process - Short sales cycle - One or few decision makers - Problem / Need solving - Long sales cycle - Complex sales process - Large DMU -Agenda setting - Boundaries blur – unclear who is selling and who is buying.
  • 57.
    Car Salesperson. Responsiblefor persuading customers to buy a Suzuki car. Fleet Service Salesperson. Responsible for persuading Suzuki’s resellers to promote their fleet services. Distribution Salesperson. Responsible for persuading potential resellers to become a Suzuki reseller.
  • 58.
    Source: Neil Rackham,“Rethinking the Sales Force” IDENTIFYING EXECUTION GAPS DEFINING PROBLEMS AND NEEDS IDENTIFY SOLUTION SELECT SUPPLIER & PRODUCT PURCHASE DEFINE STRATEGIC AGENDA Transactional SellingConsultative SellingEnterprise Selling
  • 60.
    1. What typeof sales approach do we need? 2. Which channels should we use?
  • 61.
    In groups of5 people: • Identify what are the different sales and servicing needs of your customers. • How important are each of these services for your customers? 10 MIN
  • 62.
    Expert advise andhand holding Training Customisation to specifications Integrated total solution On site setup and installation Self Service Low prices Fast Local Support 24 * 7 Support
  • 63.
    PERSONAL SELLING Customer NeedsField Sales Force Value Added Partners Volume Resellers and Distributors Retail/mass Merchants Call Centres Internet Expert advise and hand holding √√√ √√√ √ √√ √√ √ Training √√√ √√√ √√ √ √ √ Customisation to specifications √√√ √√√ √ √ √ √√ Integrated total solution √√ √√√ √√ √ √ √ On site setup and installation √√√ √√√ √√ √√ √ √ Self Service √ √ √ √√√ √√ √√√ Low prices √ √√ √√ √√ √√√ √√√ Fast Local Support √√ √√√ √√ √√ √ √ 24 * 7 Support √ √√ √ √ √√√ √√√
  • 66.
    SALES MANAGEMENT ACTIVITIES PERFORMANCEREWARD LOYALTYSALES PEOPLE SALES FORCE DESIGN
  • 67.
    1 What typeof sales targets do we need? 2 What are the roles and responsibilities of our sales people? 4 What type of sales people do we need? 3 What are the activities part of our sales process? 5 How should we manage our sales people?
  • 68.
    1. What isour strategy map? 2. What type of objectives, targets and measures are we going to use for our strategy?
  • 70.
    Instructions • In groupsby company map your own strategy map. • Focus on the sales & marketing activities • Start by identifying the type of financial objectives you use. Examples • Financial Perspective • Sales Volume per period • Profits per period • Orders per period • Customer Perspective • Customer Acquisition • Customer Satisfaction • Customer Relationship • Process Perspective • Sales Process • Account Planning process • Account Servicing Process • Learning Perspective • Competitor Knowledge • Selling Skills • Customer Knowledge • Market Knowledge 30 MIN
  • 72.
    Revenue Better sales approach Increase nbr of new customers Customer mustsee the added value of sales Better marketing campaigns Online Lead generation Tools Find more events Sales Training Sales & Marketing Objectives Measures Targets • Increase sales revenue • More new customers • Create a customer experience • Standardised consultative sales approach • Increase follow up on leads • More and better marketing campaigns to generate leads • New online tools to capture leads • Participate at new events • Increase training days • Sales Revenue • #contracts • #leads follow up • #proposal • #proposal follow up • #of leads per sales person • #Training days • #Coaching days • #Events Participation Financial Perspective Customer Perspective Internal Perspective Learning Perspective • 1.000.000 EUROS • 1 contract a week • 8 leads a week • 5 proposals a week • 5 follow up calls a week • 400 leads by sales person • Not defined
  • 73.
    Instructions For your ownstrategy map: • Complete the objectives • Define how you are going to measure it. • Set the targets. 20 MIN
  • 74.
    Sales & MarketingObjectives Measures Targets Financial Perspective Customer Perspective Internal Perspective Learning Perspective
  • 75.
    1. What type specialisationdo we need in our sales force? 2. What type of roles and responsibilities will we assign to our sales people?
  • 76.
    Complex RANGE ofProducts SIMILARCustomerNeeds 12345 1 2 3 4 5 Product Driven Specialisation Geography Driven Specialisation Product / Market Driven Specialisation Market Driven Specialisation
  • 77.
    Customer Needs Simple 12 3 4 5 Complex All our customers and prospects have very similar needs. All our customers and prospects have very specific needs depending on the type of organisation and sector their operate it. Product Range Simple 1 2 3 4 5 Complex All our products are very similar allowing one person to easily sell their all. Our products are very different and each of them require highly specific knowledge from our sales force.
  • 79.
    They manage largescale and value of sale. Long negotiation, complex purchase decision, usage of the product is different from consumer sale. Main activities are relationship selling, and prospecting. Sales person is not permitted or expected to take orders. The objective is to create goodwill or educate the customer Main activities are delivering samples, education ad promotional activities and sales service. They seek out new channels and support existing ones. Main activities are channel management, Prospecting, Training and Recruiting and entertaining. Additionally some relationship selling Salesperson predominantly delivers the product. Selling skills as secondary to good servicing skills. Main activities are stock shelving, writing up orders, and checking inventory . Their objective and main activities are providing support to the sales people who are in the field. Maintaining close long-term relationships with organisational customers. They are often involved in team selling. Main activities are providing product support, maintenance and installation and entertaining. The objective is to win new business by identifying and selling to prospects. Main activities are Prospecting and Relationship selling. They provide support to the retailers and wholesales to ensure that their product is well represented and displayed. Main activities are promotion activities and servicing. Retail sales assistant, customer chooses freely the product. Sales person only handles the transaction. Telemarketing taking orders from customers how are calling in. Position where the salesperson is predominantly an order taker Helping the customer to make their choice and complete the transaction. They are involved in complex and highly technical sales as support of the sales team. They play a dual role of sales person and advisor. Main activities are analysing the customer’s problems and needs and proposing a tailored solution. Identifying potential business opportunities by analysing market trends and developing strategies. Closing new business opportunities by coordinating requirements; developing and negotiating contracts.
  • 81.
    1. What typeof activities should our sales people do? 2. What does our sales process look like?
  • 84.
  • 85.
    Consists of activitiesthat enable the customer to become aware of the needs for your product or services. Consists of the activities that will stimulate interest with the customer for your product or service. Consists of the activities that are likely to stimulate your customer to desire / want your product or service. Consists of the activities that will get the customer to actually purchase your product or service. AWARENESS INTREST DESIRE ACTION Applicable for: - Short sales cycles (1 to 2 visits to close a sales) - Consumer sales - Product Based Sales
  • 86.
    Prospecting Qualification PresentingNegotiating Closed Follow-up Consists of activities such as generating, qualifying and distributing new leads. Consists of understanding the needs and problems of the customer and determining whether the sales person’s products and services can be of value to the customer. Consists of showing the customer how the supplier’s produces and services will enable them to solve their problems and needs. Consists of agreeing the terms of the purchase with the customer. Consists of all the final contractual activities to close the deal. Consists of all the activities the sales force provides during the after sales of the product. Applicable for: - Long and complex sales cycles - Project Based Sales - Business to Business sales
  • 87.
    Consists of activitiesthat enable the customer to become aware of the needs for your product or services. Consists of the activities that will stimulate interest with the customer for your product or service. Consists of the activities that are likely to stimulate your customer to desire / want your product or service. Consists of the activities that will get the customer to actually purchase your product or service. EXPLORATION BASIC CO OPERATTION ALLIGNED Consists of the activities that will get the customer to actually purchase your product or service. INTEGRATED Applicable for: - Long and complex relationships - Key Account based Sales - Business to Business sales
  • 88.
    Instructions In groups of4 or 5: 1. Select the sales stages tat are more appropriate for your sales process. 2. For each of the stages identify all the key activities that the sales people will need to perform. 30 MIN
  • 90.
  • 91.
    1. What typeof sales people do we need?
  • 92.
    9 8 7 6 5 4 3 2 1 2 34 5 6 7 8 9 CLOSER CONSULTANTRELATIONSHIP BUILDER DISPLAY SALES PERSON
  • 93.
    Personality: High energy Manipulative High Needto achieve Risk Takers Skills: Prospecting Presenting Motivation: Status Recognition Personality: Team Leader Professional Enjoys challenges Highly Educated Calculated Risks Skills: Problem Solving Motivation: Mastery Purpose Personality: Likable, fun Hard working Team Player Likes his autonomy Avoids Risks Skills: Developing Relationships Motivation: Autonomy Sense of Belonging Personality: Happy, outgoing Service oriented Not an overachiever Pleases the customer Avoids Risks Skills: Service driven Motivation: Recognition
  • 94.
    Customer Needs Sales PersonProfile New Product Buyers New System Buyers Established System Buyers Commodity Buyers 85% 40% 25% 20% 50% 82% 46% 30% 15% 55% 89% 35% 10% 9% 18% 70% Source: HR The Chally Group: « How to Match the Type of Salesperson to your customers? »
  • 96.
    1. What typeof sales approach to adopt ? 2. How will we coach our sales people?
  • 97.
    MARKET BASED The market/ customer sales revenues determine whether the sales people are doing a good job or not. BEHAVIOUR BASED Adherence to our sales process and activity targets determine whether the sales people are going a good job or not. CLAN BASED Adherence to our company’s values and norms determine whether the sales people are going a good job or not. 97 MARKET BASED BEHAVIOUR BASED CLAN BASED
  • 98.
    ADVANTAGES - Keep salespeople focus on results. - Easy to apply. - Promote initiative - Consistent across different people in the organisation - Requires very little management attention DISADVANATAGTES - Focus on the end rather then the means - Fails to stimulate growth of professionalism - Short term focus - Requires sales people whit a risk taking profile
  • 99.
    Tupperware ladies SelfEmployed Sales Agents “Jerry Maguire Movie”
  • 100.
    ADVANTAGES - Greater opportunityfor behaviour modification. - Encourage customer relationships. - Recognize the difference between cause and effort. - Encourages risk averse people to start a career in sales. - Applicable where sales people need very specialised knowledge and skills. DISADVANATAGTES - Requires management ability to observe and diagnose - Require time for observation - Requires impartiality - Likely to be implemented with some inconsistency across the organisation
  • 101.
  • 102.
    ADVANTAGES - Requires verylittle management effort - Encourages loyalty - Recognises that selling is a team based effort. - Promotes autonomy and initiatives - Applicable where sales people need very specialised knowledge and skills - Applicable in highly volatile markets DISADVANATAGTES - Difficult to measure, very subjective - Lack of outcome focus - Requires impartiality - Lacks real accountability
  • 103.
  • 104.
  • 105.
    Instructions You probably willcombine all three approaches in your management style. The question is: 1. How important is each going to be. Draw a line connecting the three legs indicating their relative importance. 2. Describe how you are going to implement the approach in terms of management activities, rewards and targets. 20 MIN
  • 106.
  • 108.
    In groups of2 participants: • GOALS: What are your goals for the this period? • REALITY: How far are you from realising your individual goals? For which goals are you lagging? • OBSTACLE: Why are you lagging? Ask 3 times the why question. • WAY FORWARD: How can we remove the obstacle? 20 MIN Why? Why? Why?