141204 itf sales 101 presentation to participants
TRANSCRIPT
Copyright Mark Cox and In The Funnel 201404/14/2023
Sales 101 – Breakfast and LearnIVEY Tangerine CentreDecember 5, 2014
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Today’s Objective
Annual Turnover In SalesTo provide you a framework for building your
2015 Sales Plan for your business that will dramatically improve results over 2014.
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Who Said?
Jack Welch – Past chairman and CEO of General Electric between 1981 and 2001. During his tenure at GE, the company's value rose 4000%.When he retired from GE he took a severance payment of $417 million, the largest such payment in history.
“If you don’t have a competitive advantage, don’t compete.”
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Who Said?
Michael Porter – leading authority on competitive strategy and the competitiveness and economic development of nations, states, and regions. Author of 18 books.
“The essence of strategy is choosing what not to do.”
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Who Said?
Peter Drucker – one of most widely influential writers on the subject of management theory and practice.
Predicted many of the major developments of the late twentieth century, including privatization and decentralization; the rise of Japan to economic world power; the decisive importance of marketing; and the emergence of the information society
“The most basic purpose of a business is to create a Customer”
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of B2B Buyers Select a vendor according to the
skills of a salesperson rather than price, quality or
service features.
39%
But Selling Well Matters…
** Extract from “Teaching Sales” Harvard Business Review July / Aug 2012 – Suzanne Fogel and David Hoffmeister
**Since 1988, Chally Group analyzed data from 100,000 decision makers and found:
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How are We as a Profession Performing?
Poorly…
Sales People miss quota (minimum expectation)48%
Annual Turnover In Sales 28%
Extract from “The Twelve Sales Metrics that Matter Most” by Steve. W. Martin Dec.9, 2013
8Copyright Mark Cox and In The Funnel 201404/14/2023
How has Sales lagged behind it’s peers?
A Profession has Management Rigor and Discipline
Concept from “Cracking the Sales Management Code” 2012 – Jason Jordan with Michelle Vazzana
Finance / AccountingGAAP / P&L / Balance Sheet / Statement of Cash Flows
Manufacting ISO / TQM
Marketing TAM – Customer Segmentation
ProfessionStandard Operational Guidelines
/ Common KPI’s
Sales ???
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Why do We Need a Sales Playbook?
Sales People miss quota (minimum expectation)
Annual Turnover In Sales
Revenue Growth depends on Sales Excellence39% of B2B decisions favour company who sold better
Sales Excellence depends on Strategy , Process, Management Rigor and Discipline
Planning / Inspection / Coaching
The place to start is with a Sales Plan (Sales Playbook)
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The Sales Playbook“You have to learn the rules of the game. And then you have to play better than anyone else”…..Albert Einstein
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Sales Playbook — The First 3 Questions
Break the target downQuarter / Month / Product / Sales Rep
Product / Market Focus
Your Go to Market Plan
Annual Sales Objective
Sales Strategy
Plan of Execution
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Sales Strategy — Product Market Focus
TBD TBD
TBD TBD
New
Existing
Existing New
Product / ServiceM
arke
t / C
usto
mer
s
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Sales Execution — Go to Market Plan
• Email Blasts• Webinars• Partners• Cold / Warm Calls
• Who are we selling to?• Segment by :–Geography– Industry–Offering• Prioritize
• What problems are we solving for the Customer?
• Why are we the best option to solve them?
• Conferences• Speaking / Journal
engagements• Social Media• Industry Reports
• Sales Team Structure• Sales Process
Value Proposition Target Market Awareness Demand Generation Sales Execution
How do we convert a capability into revenue?
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Value Proposition
How does it contribute to our Customer’s desired business outcome?
How do we differentiate vs. competition?
What is our capability?
ValueProposition
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Value Proposition — Positioning
How do we clearly ariticulate the value we provide our Customers?
How do we do it? (Capability)Elevator Pitch
We can:
Increase Your Revenue
Reduce Your Cost
Reduce Risk
What Corporate role within our Customer’s organization should care?
Head of Product / Business
Head of Operations
Head of Risk Managerment
Head of IT (??)
Reduce call centre handling time
Etc.
Etc.
What FACTS support this claim?
Existing Customer Results3rd party Validation
Product
Service
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Target Market
AnnualRevenueTarget
Insurance Companies
CompetitorCustomers
Mining
Wealth Management
Existing Customers
Banks
Distribute target market amongst sales team
Which companies are we going to sell to and in what priority?
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Awareness Campaigns
Consistent with Value Proposition messaging
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The Sales Process
Generate OpportunityQualify
OpportunityDevelop Value
PropositionPresent Proposal Secure Agreement
• To identify a new business opportunity for ABC Company
OB
JEC
TIV
ES
ALE
S A
CTI
VIT
IES
TOO
LS
• ID possible demand from Suspect company
• Complete Profile on Suspect prior to Approach Call
• Prepare POV on how ABC Company could help
• Book meeting with Suspect
• ABC Company Target List• Account Profile Template• ABC Company CRM system
(TBD)
• To understand Suspect’s• Business Problem• Business Case• Budget• Decision Process• Competitors
• Conduct approach call(s) with Suspect
• Define Suspect’s business needs and pain points
• Complete Demo if required• Understand budget and
Suspect’s decision process
• Call Planning Tool• Qualification Checklist• ABC Company presentation
/ demo
• To develop a solution and/or value proposition that is compelling for the Prospect
• Define deal structure• Align value proposition
specific to Prospect buying influencers
• Triangulate Prospect’s decision / buying process and timeframe
• Define competitive differentiator for our company
• To present a proposal that is compelling to the Prospect
• Agree and full understanding that Prospect requirements have been gathered to proceed with cost estimation and proposal
• Estimate work effort and define what / how / who / when
• Internally approve all deal economics Ensure a high quality, professional proposal
• Proposal template
• To sign win/win agreement with Prospect (who now becomes a Customer)
• Receive verbal agreement from Customer
• Deliver DRAFT 1 Agreement• Resolve open points of
negotiation• Leverage executive team for
final close plan• “Close the deal” drive the
decision
• Customer Agreement template
What specifically do we do once someone shows interest?
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The Sales Funnel
What sales activites are required to sell X average deals and drive Y revenue?
The Sales Cycle
Approach Calls – XX
Qualified / Demo – XX
Proposals – XX
Signed Deals – X
30%
75%
50%
Target List
Existing Customers
Current Accounts
This MATH will drive weekly monthly activity objectives for the Sales Team
(i.e.,) target 10 new approach calls per month to get 3 proposals and sign 1 new deal
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The Sales Process — Average Deal
• TCV =Total Contract Value = Implementation + Monthly License Fee (x term)
• Average Deal = $ x,000 TCV
• Implementation - $ x,000
• License $ x,000 per month x 36 months = $ x,000
Deal Size Implementation MonthlyLicense Fee TCV
Small $ x,000 $ x,000 $ x,000
Medium $ x,000 $ x,000 $ x,000
Large $ x,000 $ x,000 $ x,000
What is our average deal size?
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Sales Team Structure
Inbound Leads:
Sales Development(Qualifiers)
Outbound Reps
Market Response Reps
SalesQualified
Opportunities
Account Executives
(Closers)
NewCustomers Account
Managers (Farmers)
SEOContentReferrals
Direct
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Sales Culture
Process / Tools / Discipline / Management Cadence
Customer FirstDo What Is Right For The Customer
IntegrityCommitmentAccountabilityDrive for Results
What We Believe Will Make A Sales Organization Successful
Copyright Mark Cox and In The Funnel 2014
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Management CadenceThat which can be measured can be maximized
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Sales Management
Quarterly Territory Review
• Sales leaders forecasting – budget or better• Review Sales Executive Specific Plan for their territory• Strategy and Action Plan with metrics
Weekly Sales Meeting
• Sales Executive forecasting review (budget or better)• Deal inspection• Weekly priorities• Funnel to be circulated to participants 24 hours in advance of meeting
Weekly BIG DEAL review
• Deep dive on Key Deal(s):– Win Strategy / competitors / strengths – weaknesses– Buying Influences / win scenarios– Next Steps – (action plan / owners / timing)
Win / Loss Reviews• What happened and why?• Voice of the Customer – what specifically did they tell us?• Lessons Learned — (i) Stop (ii) Start (iii) Continue Framework
What is the Management Process to measure progress?
Weekly 1 v 1’s with Sales Team
• Coaching cadence (vs.) Sales Meeting inspection– Feedback– Support– Manage and Motivate
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Wrap Up – Next Steps
Create you Sales Playbook
Segment by Customer and Product
Value Prop – add proof points the Magic Triangle
Sales Process – Customize (use what has worked in past)
Structure the Sales Team
Establish and communicate the Sales Culture
Book the weekly Sales Management Cadence
Remember – Activity breeds results in Sales!!
Quarterly – assess and re-calibrate as needed