The new Strategic Selling
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A summarized review of the New Strategic Selling book for training, with added bits from Conceptual Selling, by Robert B. Miller and Stephen E. Heiman
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The new Strategic Selling
- 2. PART 1 – Strategic Selling Labyrinth What does the analogy tell us? • To successfully handle COMPLEX SALES situations today, the sales man has to navigate many “corporate labyrinths” • Multiple decisions • Multiple decision makers • Multiplied interests • Hence, one needs careful planning, which is what this book does, guide us into crafting out the strategy to navigate this sell to a successful close
- 3. The complex sale • The buying organization has multiple options • The selling organization has multiple options • In both, numerous levels of responsibility are involved • The buying organization’s decision making process is complex (not self evident to an outsider) The only constant is change • Premise 1 of strategic selling – • Whatever got you where you are today is no longer sufficient to keep you there • Premise 2 of strategic selling – • In the complex sale, a good tactical plan is only as good as the strategy that led up to it • Premise 3 of strategic selling- • You can succeed in sales today, if you know what you are doing and why PART 1 – Strategic Selling Q. Why are you successful?
- 4. How it works • Focus is not only the sale but long term business and satisfied customers • Removing and minimizing uncertainties, there-by increasing the chances of success • Reducing the impact of volatility in sales revenue over time Your Starting Position: • You always have a position • Meaning you always have a strategy (whether or not articulated) • The first thing one needs to do is make one’s position “VISIBLE” • As a general would fix his location on a map 1. Identify relevant changes 2. Rate these changes as threats or opportunities 3. Define your current single sales objective (be precise – SMART) 1. Answer the 5 WH questions (Actually 4, explain the difference) 2. Focus on specific outcomes 3. Single rather than multiple (avoid &…) NOTE: It doesn’t mean that you cant have multiple objectives, but devising a strategy should be one at a time. 4. Test your current position – the Euphoria – Panic Continuum PART 1 – Strategic Selling
- 5. Part 1 - The Euphoria Panic Continuum Concern Discomfort Worry Fear PanicOkComfortSecureGreatEuphoria Certainty about outcome (Predictable) Uncertainty about outcome (Unpredictable) • Do I need to change anything to ensure success? • What must I change to reduce anxiety?
- 6. The 6 Key Elements of Strategic Selling 1. Buying Influences • Economic Buying Influence • Gives the final YES/NO, has veto power, always just one person, usually sits at the top • User Buying Influence • Provides judgement on potential impact of product or service • Either use or supervise the product or service • Their personal success is directly tied • One or several • Technical Buying influence • Screeners Vs specifications • Cant give final YES, but can give final NO • One or several • Coach • Guide to particular sales objective • Provides information needed • Unlike the other three, can be found inside the buying organization, inside your own company, or outside of both 2. Red Flags/ leverage from strength • Both Red flags and Barbells are used to test the effectiveness of alternative positions 3. Response Modes – • (4 response modes) 1. Growth 2. Trouble 3. Even Keel 4. Over Confident • These response modes are determined by the Buyers perception of his immediate business situation, how your proposal is likely to change it, and whether or not the buyer perceives that change to close a gap (discrepancy between current reality and required results)
- 7. • Economic Buyer – • Approves the cash (controls expenditure), gives the final Yes or No to buy • Discretionary use of resources • VETO power • Key interests are – • bottom line impact of product/service • Effect on the organization • Asks – • What return will I get on this investment? • Finding the economic buyer – 1. Value - The higher the value of the sale, the higher up the organizational chart 2. Buying conditions – hard times, mean smaller amounts move up for decision, and vice versa 3. Experience with your firm – having a good reputation, means decisions could be made down the ranks 4. Experience with your product or service – Again decisions could be made down the ranks 5. Potential organizational impact – the higher/ longer, long-term impact, the higher the decision is likely to be made The 6 Key Elements of Strategic Selling – Buying Influences
- 8. The 6 Key Elements of Strategic Selling – Buying Influences USER Buyer • Role – • judges impact on job performance • Often several, or many • Use or supervise the use of the product/ service • Personal, because Users will live with your solution • Direct link between users, success and the success of your product, service or solution • Focus – • The job to be done • Asks – • How does this impact my job responsibilities Technical Buyer • It is their job to be difficult • Role – • Screening out, act as gatekeepers • Often several, or many • Judge measurable, quantifiable aspects of your proposal • Cannot give final approval • Can veto based on specs or technicalities • Focus – • Match to specifications in their area of expertise • Asks – • Does this meet the specified criteria?
- 9. Coach • Role – • Acts as a guide for this sale • You need to proactively develop at-least one • A coach can provide and interpret information about: • Validity of this single sales objective • Other buying influences • Other elements of your strategic analysis • Focus – • Your success with this proposal • Asks – • How can we make this happen Developing coaches • Coaches can be found – • IN buying organizations • In selling organizations • Outside both Buying influences – The coach
- 10. Red Flags Leverage from Strength • The “better half” of strategy • Weaknesses uncovered through red flags, can now be changed to opportunities • Strategic Strength – 1. An area of differentiation (as seen by the customer) 2. A strength improves your position (for the immediate sales objective) 3. A strength is relevant to your current sales objective Key Element 2 – Red Flags/ Leverage from Strength • Automatic red flags – • Missing information – • any missing info with regards to buying influences for example • Uncertainty about information • Hazy or uncertain information is another automatic red flag • Any uncontacted buying influence- • any ignored buyer is a threat, as seen in one of the examples (Airline) • Any buying influence new to the job– • A potential threat until contacted and confirmed otherwise (covered) • Re-Organization -
- 11. Growth Trouble Key Element 3 – The four Response Modes RESULTS wanted Discrepancy REALITY today Does your proposal reduce or eliminate the discrepancy? The probability of taking action is very HIGH Does your proposal reduce or eliminate the discrepancy? The probability of taking action is very HIGH
- 12. The 6 Key Elements of Strategic Selling 4. Win-Results • Possible to win at the expense of customers (Win-Lose) • Look out for revenge, &/or broken relationships • Possible to let customers win at the expense of oneself (Lose-win) • You don’t want to inherit a dead horse! • However both gravitate towards (Lose- Lose) • Remember the objective of strategic selling is to consider the buyer as a JV partner, and strive for a win-win solution 5. Ideal Customer Profile • 35% poor prospects • It is possible to build your “ideal customer” 6. Sales Funnel • Win-Win –from Conceptual Selling (Tactics)
- 13. Demographics • Refers to the size and composition of individual customer populations • Size of target audience • Number of end users • Age and condition of the customer’s present equipment • Distance of customer from shipping point • Proximity to service and support centers • Compatibility of your product or service to the customer’s existing facilities Psychographics • Values and attitudes shared by individual buying influences (collectively) • Shared values • Importance placed on company reputation • Ethical standards • Attitudes towards people (stakeholders) • Openness to innovation • Relative importance placed on quality rather than quantity • Psychographics define company cultures Ideal Customer Profile
- 14. • This is basically to help with time management, and generate a steady income • Working “all levels” at all times • Note: this helps to track the progress of “single sales objectives” not accounts • EXPECTED TIME TO ORDER & UNCERTAINTY decrease as you go down the funnel • Constantly work the funnel The Sales Funnel Prospect Qualify Cover the bases Close the Order Universe Above the funnel In the Funnel Best Few Data Suggests a potential fit Data Suggests a possible order Data verifies a possible order Clearly defined next steps, Little or no luck involved PREREQUISITES The Roller Coaster Effect – income volatility, the problem and the solution, (Prioritizing) – What is the recommended sequence in prioritizing?
Editor's Notes
- We will start with the definition of Strategy and Tactics – Strategy – comes first, is a process, identifies where we are (POSITION), where we want to be (SALES OBJECTIVE) and articulates how we can get there Tactics – Actions on the ground, arranging or maneuvering This is the first of two books covering the entire sales call Strategic Selling – all about planning and preparation in a structured manner, to increase our the effectiveness/ success rate of the sales conversation Conceptual Selling – The tactical part of sales, where once we get to the customer, what we do and how we conduct ourselves for a productive end
- Greek mythology – Minotaur, killed by Theseus, with the help of Ariadne, ties one end of a thread to his waist, and the other in her hand as he enters the maze. The problems is not killing the monster, which Theseus is able to do, but to get out, once he killed it DEFINITION: The complex sale -
- We live in a world full of uncertainty and change, from the economy, to politics, technology, Mergers and acquisitions, All of these changes affect us, our businesses, OUR POSITION, and also the selling organization; and this has some specific results, opportunities or threats This book helps one to identify and structure the impact of these constant changes, and teaches us on how to use them to our advantage (through alternative positions)
- POSITION – Current position (Physical, psychological, economic, knowing who the key players are, how they feel about you, about your proposal, what questions they want answered, how they see the proposal Vs other options. (For a given sales objective, or for a given customer!) Account strategy – a four step process Analyze your current position with regards to your account and with regard to your specific sales objective Think through possible alternative positions Determine which alternative position would best secure your objective and devise an action plan to achieve it Implement the action plan
- Imagine this as a circle, meaning both ends touch, meaning both extremes are bad and should be a point of concern There is no exact science to this, it is based on personal gut-feel Be absolutely honest with yourself Forget “positive attitudes” here, don’t try to be brave The Question to Ask oneself here is that – What is it that I can do to change the environmental changes that are causing me distress??? If you find yourself on the right, consider changes to reduce anxiety If on the left, consider changes to increase the likelihood of success
- Buying influences – Don’t look for people Don’t look for titles Look for people playing the roles! THIS IS THE FOUNDATION OF STRATEGIC SELLING! REDFLAGS: Means Warning or Danger Uncertainties and problems should be seen as such BARBELLS: Highlight areas that differentiate you from the competition, to minimize threats to strategic position Every sound alternative position either leverages from a strength, eliminates a red flag or (ideally) does both at the same time.
- Positioning oneself with these key buying influences with in an organization is – Understanding the four roles Identifying all the key players Ensuring that they are all “covered” (Cover the bases with all of them) Finding the economic buyer – ask yourself, who makes similar decisions at your organization Identifying and covering bases with the economic buyer early is recommended, and in-fact, makes this easier if he is recruited as a coach
- The term coach has a special significance in the American society, so a slight bias towards the terminology because of the weight it carries Never ask for a referral, as that would mean, or be interpreted as, “ I cant do my job, do it for me” IRONICALLY – while the one that asks for a referral almost never gets coaching, the one asking for coaching almost always gets it, as well as the referral. Degree of influence (High, Low, Medium) - Generally, the four buying influences could have varying influences from sale to sale, sometimes more equal, sometimes, less so The lame-duck anti-sponsor – the only case when an actual D/F is a plus, when it comes from the person who has antagonized himself so much with in the organizaton that his dissaproval is sometimes a good thing
- The red flag concept needs to become almost second nature to the sales person, needs to be used repeatedly When used this way, it becomes a continuous assessment, or a feedback mechanism that keeps a reality check on the sales person A powerful tool in strategic selling as it again and again keeps the focus where there’s a “weak link” A strength, is one that is perceived by the customer to have a value addition
- Perceived discrepancy – in the buyers eyes, is the key to buyer RECEPTIVITY! For customers in TROUBLE Mode – you sell survival, not improvements in lifestyle Trouble always takes precedence over growth Strength and Trouble – modes give easy selling situations. The next two don’t. EVEN KEEL – The buyer does not perceive discrepancy between current reality and desired results. (This is a red flag). The only way you can sell to a buyer in Even Keel mode is through – The buyer sees growth or trouble coming (future) Using pressure from another buying influence (a senior prefferred, in either growth or trouble mode) You demonstrate a discrepancy Overconfident – probability of taking action is nil Percieved reality today is much higher than results wanted, reasons could be – False reading – (IN this case, bring back to reality) Sights set too low – Strong resistance to change – Sometimes waiting is the best game plan
- The Miller Heiman research based on several trainees that attended their workshops (strong focus group) indicates 35% of all sales people’s accounts are bad prospects Even after closing the order, you feel really bad and wish you hadn’t Sales people generate bad prospects because they get seduced by “Any sale is a good sale” saying. They focus on quantity rather than quality Win Results – Results are tangible, measurable, and are corporate Wins are intangible and personal Results precede wins The Ideal Customer: Is just a STANDARD, not a real customer, with the most attractive prospective, attractive attributes that has the perfect match to what you offer Once you have identified this standard, it would be easier to measure all your prospective customers against this “ideal customer” standard and identify – 1. Which prospects to focus on 2. Which prospects are a waste of time (end up in the 35% of poor prospects) 3. And thereby, optimize on the ideal customer list (that would result in the highest probability of success in matching product or service offer with customer need)
- DEMOGRAPHICS - the characteristics described are measurable and objective PSYCHOGRAPHICS – not usually objective, and hence not measureable There is a huge advantage to be gained by the sales person in analyzing psychographics, not just demographics Easier identification of cultural fit – between the buying and your organization (competitive advantage) Easily sort out what to exclude,
- Apologies for the poor attempt to make a “funnel” Ability to correctly forecast sales income over time Unless the prerequisites are satisfied, rushing down the funnel will simply result in “kidding oneself” PREREQUISITES FOR MOVING FROM STAGE TO STAGE - Universe - At the prospect level, “search for a fit” with your “IDEAL CUSTOMER” profile, (look for a broad match) Above the funnel - Similar “search for a fit” at the next stage to Qualify, but with stricter conditions, and match with sales objectives and need, not just company IN the funnel – At this stage, atleast you have contacted one buying influence and have verified the possibility of an order Best Few – You have eliminated luck and uncertainty as factors in the buying decision