We all can see there’s a new corporate reality out there.
It’s a post-recession, slow-growth reality with tremendous focus on profitability. It’s no longer OK to grow the top line at the cost of the bottom line.
And it’s reflected in how sales executives are being paid.The survey shows that more than half of sales leaders are incented on profit, but they aren’t able to delegate those profitability goals out to their team. Fewer than 20% feel their salespeople are maximizing profitability on a deal by deal basis.And that profitability focus is growing, with a third of the companies looking at adding a profit component to sales comp.
At the same time, tectonic changes have shifted the power from sellers……to buyers, who are…
Today’s buyers are fiercely independent, highly social and connected, and more educated than ever. So buyers have clearly evolved.
But Salespeople at many companies have not. They often price based on gut feel, over-react to competition, and lose deals waiting for approval. What we see here is happening in many companies hundreds of times a day. This is a big problem, since 60% of sales reps prepare their own quotes, and 50% determine their own price.
We have a session on the Changing Face of B2B sales… today at 1:45pm
The result is a widening profitability gap between sales leaders and the front line team. Sales leaders are being driven to deliver consistent margins… their front line team is incented to focus only on revenue. And even the reps who’ve started thinking about the profitability don’t have the tools to systematically drive it. So what to do about this gap?
There are a lot of companies that are used to looking for profit in the rear view mirror. They report on profitability after the fact, but they can’t drive it in real time. With today’s intense global competition this just isn’t enough.
The answer is different. It’s Profitable Selling.It’s all about driving profitability on each and every dealby arming the front line sales team with all the insights they need to close deals more profitably.… and that profitability really happens at what we call the moment of truth
The “Moment of Truth” is when you put forward your price and ask for your customer’s business. “For all the moments that matter in business, there is only one point when money changes hands – the point of negotiation and purchase. That’s when the price you charge captures or fails to capture the profit you are in business to generate.” -“The Problem with Pricing” DeloitteThat’s the moment of truth.This deal-by-deal profitability depends on many small decisions that happen in the negotiation: the ship-to location; the volume discount; the terms; the fuel surcharge.
So that’s your opportunity - to gain a competitive advantage by equipping your sales team to be able to respond quickly and effectively to these new selling dynamics.
Imagine if salespeople had the right information and tools to be effective at the “Moment of Truth”
You could arm your front line team to negotiate confidently.
What if your salespeople had access to sales history, customer performance, and optimal target prices while in front of their customers?
What if they could easily generate profitable quotes on the spot?
What if they were armed to confidently defend their pricing and quickly get deals approved?
To get there, you’ll need a Profitable Selling Team, which includes roles from Finance, Marketing and Sales. Then Vendavo connects your team through a common platform…
…arming your salespeople with deal guidance and price approval management at the point of negotiation.
It’s time to improve margins on every deal, and give your sales leaders control over profitability at the “Moment of Truth”.
By empowering the Profitable Sales RepHe knows what the customer has paid and what they’ve spent, he knows what the competition is likely to charge, he knows what will be approved, and he has it all at his fingertips.
So, my question… is your Sales Team armed to drive profitability where it happens?
So, you’ve heard all about profitable selling. Now we’re going to do a couple scenarios to give you a feel for the before and after.We’ll start with Vicki, our sales rep, trying to finalize a price for her customer, working with Alex, the Pricing Manager.Here’s how it looks before Vendavo.
Lots of things you’ve probably seen before. Vicki has no confidence in her pricing. There’s problematic communication, with emails going back and forth and spreadsheets being sent around. Approval is a black hole, and it doesn’t look like Vicki’s going to get the price to the customer in time.Now let’s see what it looks like with Vendavo Sales Negotiator for Salesforce.
That was a lot different. Vicki was able to see all the relevant information, including the optimized target price. She knew what would be approved in her organization. It even updated the revenue for the opportunity in Salesforce. And the price will get out to the customer on time.
Now let’s look at how the customer interaction works. First the pre-Vendavo scenario. Vicki is a sales rep selling components to Gabe, a hardware engineer with Apple.So, what did we see. Gabe had all the power. Vicki was on the defensive. There was a lot she didn’t know, including what the price should be. And she wasn’t able to respond quickly.
Vicki’s able to create a special quote on the spot, she knows the optimal target price, she knows the purchase history, she knows what the competition is likely to do, and she knows what she can get approved.The power dynamic was completely different. This time it’s Vicki who has the power, based on the knowledge she brings to the table. That’s profitable selling.
My question to all of you – what if you could deliver the right target price and insight to ensure optimal profitability on every deal?
Well, now you can. Not only do you have the two products we just showed – Vendavo Sales Negotiator for Salesforce and Vendavo Sales Negotiator for iPad. Now with our new Vendavo Sales Advisor, you can have optimal target prices show up in any CRM or CPQ system. We had a press release go out this morning announcing our integration with SAP Sales on Demand, IBM Sterling CPQ, Salesforce, and Oracle Sales and Marketing Cloud Service
Vendavo has a long standing solution extension partnership with SAP and both companies are investing in co-invention to improve value proposition of our joint solution.SAP Sales On Demand is the cloud based CRM solution with deep integration to ERP. Vendavo Sales Advisor can integrate with SAP Sales On Demand to deliver pricing guidance directly in the quotes and opportunities.
I want to point out that Vendavo also has a profitable selling solution with SAP CRM – SAP’s on premise CRM solution. This solution not only provides the optimized target prices but also gives the rep negotiation tools like deal and line item scorecards that enable them to confidently negotiate better prices and drive margin.
Here we have IBM Sterling CPQ and Vendavo Sales Advisor integrated to provide a Smarter Quoting solution to simplify selling of complex products and services. This empowers the sales team to close deals faster, win more deals, and boost margin on every deal. Vendavo and IBM offers a joint IBM validated integration solution to deliver target prices at moment of truth in the Sterling CPQ Smarter Commerce solution.
Vendavo Sales Negotiator for Salesforce.com is a natively developed Force.com profitable selling solution that is certified by Salesforce.com and is available through App Exchange. In addition to that, Vendavo Sales Negotiator can also integrate with Salesforce.com to provide target prices directly with Salesforce Quoting and Opportunity processes.
Oracle Sales and Marketing Cloud is the On Demand cloud offering from Oracle for CRM. Vendavo Sales Advisor can integrate with Oracle Sales and Marketing Cloud to provide sales reps with deal guidance at the point of negotiation to improve margins on every deal. By putting the most critical pricing information right inside of Oracle Sales and Marketing Cloud, Vendavo Sales Advisor enables sales team to sell more profitably by quoting on the spot, and closing deals profitably.
Thank you, and enjoy the conference.
Profitable Selling at the "Moment of Truth"
Profitable Selling at the “Moment of Truth” Jamie Rapperport, Founder & EVP ofBusiness Development and Marketing#profitsummit2013
Confidentiality and Development DisclaimerThe following information refers to Vendavo’s current productstrategy and roadmap projections and, as such, is subject tochange without notice.This is a Vendavo confidential document. Information containedin it may only be shared with qualified customers and prospectsthat have a signed NDA with Vendavo.Nothing in this document indicates a commitment or guaranteeto deliver the features highlighted.
Survey Says• Market research conducted with KJR Associates• Questions regarding quote pricing, deal profitability, sales compensation, etc.• 90 of respondents• And the winner is… Thank you for your participation!
social and independent connected educatedBUYERS
The Traditional Sales Rep Sorry, it takes a while to boot up…can I get on your Wifi? Eesh, I forgot to check how much they’ve spent with me so far! I’ll need to call my deal desk for that price. I may need approval. I don’t know if I should hold the line on this price or discount… Let me get back to you on that. I wish I knew how often this customer actually buys!
“Changing Face of B2B Sales”Today at 1:30pm in the ALIGN track Buyers Sellers
improve margins on every deal THE Moment of Truthcontrol profitability
The Profitable Sales Rep Wow, they spent $2M the last 2 quarters! The deal is profitable even with this discount and I only need 1 level of approval. I just need to open my iPad. I wonder if my competitor makes it look this easy! I can check the price on that right now.” I should be able to give you a 15% discount on this product. I just submitted it to my manager for approval.”
Is your Sales team armed to DRIVE PROFIT where it happens?