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Sales, sales management, sales strategy

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Sales, sales management, sales strategy

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Sales, sales management, sales strategy

  1. 1. Siêu thị điện máy Việt Long www.vietlongplaza.com.vnStrategy, Sales, & Sales Management
  2. 2. Strategy, Sales, Sales Management B2B Sales Management 101 B2B Sales Strategy 101 B2B Sales Case Study: Groove Sales & Strategy Reading List Siêu thị điện máy Việt Long www.vietlongplaza.com.vn
  3. 3. B2B Sales Management 101 -- Harsh Reality
  4. 4. B2B Sales Management 101 – The Number“Quarteritis…”“The sun rises & sets on the quarter”
  5. 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. 6. B2B Sales Management 101 – Strategic Selling BOD CEOLOB LOB LOB LOB LOB IT Finance Purchasing Legal VP Enterprise Apps…Bus IT …Bus IT …Bus IT …Bus IT …Bus IT VP Enterprise Infra CTO Etc 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. 7. B2B Sales Management 101 – Predicting The Future HubSpot HI-IQ SUSPECTSMarketing (HubSpot, WSG; PPC MVT) PROSPECTS (Email, URL, Source, HI-IQ Email Nurture) LEADS SalesForce.com (Phone #, Lead Conversion Event) Sales OPPORTUNITIES (Demo/Trial, 3 per day per rep) NEW CUSTOMERS SalesForce.com Customer Service (CC# and Authorization) Unsatisfied Satisfied CHI < 70 CHI > 70
  8. 8. B2B Sales Management – Predicting the FutureThe Funnel Visitors Prospects Leads Opts
  9. 9. B2B Sales Management 101 -- Predicting the Future The Forecast Current Quarters Forecast Sales Qualifiers Prob Adjustments Rep Account Closed Likely Upside Q+1 P E D D I C C RD% VP% Fcst UpsideeCommerce 248,405 47,250 15,000 10,000 9,025 9,000Inside Sales 207,900 10,000 - - 1,000 -Salva Army: Stryker 125th TF Olympia 151,662 - - - - -McPartland KPMG - Services 150,000 - - - - -Black BAH / Centrix 78,183 - - - - -Okada NG / State Near East Bureau 62,894 - - - - -Okada CARE 60,266 - - - - -Foster Tyco - software 56,389 - - - - -Marcus CA Dept of Justice 56,279 - - - - -Wilson Microsoft 54,856 - - - - - 37,021 - - - - -Smith SPAWAR-DM,B/U Svr 36,794 - - - - -Black DARPA (SAIC/Hicks) 32,218 - - - - -Tyre EDS 28,265 - - - - -Foster Praxair 23,977 - - - - -Marcus State of FL 22,943 - - - - -Shartzer LDS - Deseret Mgt 18,483 - - - - -Shore P&G 17,987 - - - - -Manniso VA - Infrastructure (Albany NY Buyer) 15,120 - - - - -Tyre Shell - trial extension 15,000 - - - - -Smith SPAWAR Europe/Ivan(2) 14,075 - - - - -Salva Army Corp. Of Engineers - 1,808,559 - - Y Y Y Y Y Y Y 50% 50% 904,280 -McPartland EY - enterprise - 787,000 - - Y Y Y Y Y Y Y 80% 90% 78,700 -Salva Army: HQ - 439,480 - - Y Y Y Y Y Y Y 95% 95% 21,974 -Shartzer Hitachi Data Systems - 192,465 - - y Y Y y y Y N 80% 80% 38,493 -Shore GSK - 104,000 - - Y Y Y Y Y Y Y 70% 90% 10,400 -Salva PM RESET (Aviation) - 93,417 - - Y Y Y Y Y Y Y 95% 90% 9,342 -Shore Lowe/Draft - 65,000 - - Y Y Y Y Y Y Y 70% 50% 32,500 -Foster Praxair - 59,000 - - Y Y Y Y Y Y Y 90% 90% 5,900 -Manniso VA Florida Ohio buyer GTSI - 46,125 - - Y Y Y Y Y Y Y 90% 90% 4,613 -Hommes & Process (Fr) CCAIG - 40,000 - - 100%Marcus State of FL - 22,943 - - Y Y Y Y Y Y Y 90% 80% 4,589 -Edginton Intermec - 21,893 - - Y Y Y Y Y Y N 75% 75% 5,473 -Tyre American Express - - 678,000 - Y Y N N Y Y N 40% 40% - 271,200Wilson Intel - - 310,126 - Y Y N N Y Y N 60% 60% - 186,076McPartland KPMG - Servers - - 132,600 - Y Y Y N Y Y Y 35% 35% - 46,410Marcus USG - New project - - 125,000 - y y y y y y N 75% 50% - 62,500Foster Siemens - - 86,000 - Y Y Y Y Y Y Y 50% 60% - 51,600Foster Siemens - - 55,000 - Y Y Y Y Y Y Y 50% 60% - 33,000Boyd La-Z-Boy - - 45,850 - Y Y Y Y Y Y Y 65% 65% - 29,803
  10. 10. B2B Sales Management 101 -- OtherAccounts ReviewsRecruiting (profile)Territory DistributionCompensation PlansSales Rep DevelopmentSales Process & methodology
  11. 11. B2B Sales Strategy 101 Segmentation = Profits All Customers Avg. Trans. < $3k Avg. Trans > $3k SMBs 28 108 VSBs 21 28 Total 185 Cancelled Avg. Trans. < $3k Avg. Trans > $3k Customers SMBs 3 7 VSBs 11 7 Total 28 Monthly Churn Avg. Trans. < $3k Avg. Trans > $3k Rate 1 SMBs 2.6 % 1.6 % VSBs 12.6 % 6.0 % Total 3.6 %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
  12. 12. B2B Sales Strategy 101Crossing the Chasm…
  13. 13. B2B Sales Strategy 101Model Comparison TRANSACTIONAL CONSULTATIVE ENTERPRISE Product or service Well Understood Differentiated High Strategic and/or characteristics Readily substitutable Customizable cost importance Standard items Hidden Capabilities Limited substitutability Key buyer concerns and Price Importance of problem Platform fit decision criteria Availability risk Solution fit Values fit Ease of acquisition Price-performance Sustainability tradeoffs Time horizon Event Purchasing stream Strategic plan Nature of relationship Cost - based Benefits – based Trust – based Buyer-seller Client-advisor Business equals Confrontational Cooperative Insider Both parties change fundamentally Prerequisites for Access to decision maker Access to influencers Access to strategy success Nature of sale Doing the deal Problem solving Agenda setting Boundaries blur- unclear who is selling and who is buying Source: Rethinking the Sales Force
  14. 14. B2B Sales Strategy 101Reason for shift to consultative model $ Resource commitment Cost needed for consultative selling Sales 1 Sales 2 Sales 3 Sales 4 Sales 5% 0%Return Sales 1 Sales 2 Sales 3 Sales 4 Sales 5 Source: Rethinking the Sales Force
  15. 15. B2B Sales Strategy 101Consultative 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. 16. B2B Sales Case Study: Groove Networks P0: Evaluation P1: Validation P2: Initial Rollout P3: Enterprise Rollout COST OF SALE REVENUE
  17. 17. B2B Sales Case Study: Groove Networks P0: Educate P1: Validate P2: Initial Rollout P3: Enterprise Rollout SALES ACTIVITIES • IT call(s) 2 Track Pilot Trial: • Implement seats & • Groove as standard • Orientation - IT validation gather metrics desktop DNA • LOB/LOB IT calls - LOB pain project • Penetrate new LOBs • Integrate w/ Ent Apps • Validation • Engage enterprise apps • Groove broadly deployed • Horizontal bus processes and used throughout value chain Multiple Pain/Lob LOB Pain ID’d Pain Validated IT Service Offer’g $1m/yr IT Champ IT Validated $500K+ Every desktop Validation Process $100k+ MSLSA 2 months 2-3 months 6 months ongoing
  18. 18. B2B Sales Case Study: Groove NetworksQ1 (P)hase Movement P0‟s P1‟s P2‟s SPAWAR $18K Lowe $46K HP Mktg $770K Hitachi $10K ESP $50K OCPA $691K CARE $7K AMEX $40K Siemens $111K DuPont $7k Mattel $35K SAIC $142K Verizon $6K Intermec $22K Praxair $100K ServiceCo $16k Novartis $86k VLH $522K Army $154K HP C&I $106K KPMG $100K
  19. 19. Further Reading
  20. 20. Questions?

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