becoming recession proof - ilinc is a key first step towards becoming recession proof. research...

Copyright, 2004-2009 Revenue Hunters International & The ROBB Group LLC

TAKING COSTS OUT OF SALES ENSURING CUSTOMER RETENTION

iLinc Webinar February 26, 2009

BECOMING RECESSION PROOF


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RESEARCH PARTNERS.The ROBB Group LLC

• Founded in 2002 as Sales R&Dand Optimization Company bysales, marketing, growth,turnaround experts; HQ inScottsdale AZ.

Revenue Hunters Intl., LLC

• Society of elite RevenueHunting professionals andexecutives founded in 2008;providing interim - contracthunters and leadership, talentassessments and benchmarking,restructuring and retentionservices.

Background

Between 2002 – 2008 SMB, Mid Market & F 500 our customers have realized significant top and bottom line results:

Time to Return On Investment: 60-90 Days

Sales cycle time reduction: 38%-62%

Cost of sales / customer acquisition cost reduction: 28%-55%

Transaction size growth: 75%-300%

Overall revenue growth: 24%-300%

Non planned attrition reduction: 50%-90%

Opportunity win ratio growth: 50%-100%


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ECONOMIC DOWNTURN - TRENDSCorporations are shifting priorities from growth and market share to Cash, Profit, Revenue…self preservation.

Sales cycles and costs are increasing in many markets.

Increasing complexity and time of reaching decision makers.

Declining talent pool of skilled, top performers, leaders.

Broad corporate restructuring and layoffs.

Corporate instability, topple rates growing by 40%.

Declining capital sources, corporate financing options. Cash is King!

Healthcare, utility other costs soaring.

Pension, 401K, credit line & equity erosion – debt soaring.


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QUESTION

Our sales people sell enough to cover the costs (salary, benefits, expenses, etc).

Answer Options:A for YesB for MaybeC for I don’t KnowD for No


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STATE OF THE UNION.Legacy models and dysfunctionwithin Sales and Marketing isincreasing costs and preventingrevenue growth.

Debt of Small and Mid Size companies within North America has increased from $680 Billion to over $1.4 Trillion between 1998 and 2006. (US Government, SBA)

93% report sales and marketing does not work together effectively to harvest business prospects or track cost of sales. (BusinessWeek Survey)

56% of respondents convert less than 10% of their business prospects into deals; approximately 30% covert less than 5%. (BusinessWeek)

Nearly 80% of sales organizations report little or no visibility into prospect executive level decision making processes. (Miller Heiman)

Spending on traditional Marketing methods continues to decline as more companies are looking to use web, social networking, viral marketing methods. (Blackfriars Marketing Study)


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CHANGE IS UPON US.The Customer and the Market is demanding change – Restructuring sales, marketing or support models is requiredto ensure alignment and retention.

Research Exhibit A – CSO Insights 2009

Significant rate of change in every area has increased enormously.

Rampant change will ― freeze many companies and sales cycles resulting in even more no decisions.

Increased focus on buying processes will offer the most reliable course in coming months.


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QUESTION

We update our sales model and strategies annually to maintain alignment with changing market conditions and how customers are buying/making decisions.



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NO TIME LIKE THE PRESENT.Large gaps in skill, process, performance, updated models and market dynamics fuel the need to restructure sales.

Research Exhibit B – The ROBB Group, LLC and Miller Heiman 2004-09

40% of salespeople did not hit their number in 07.

80% of sales orgs fail to track / monitor opportunity costs.

Only 25% of sales reps cover their costs through sales.

Cost per lead is up 21% while lead conversion rates are down 33%.

Attrition in (high tech) sales and marketing is averaging 72%.


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HOW DO YOU MAKE DECISIONS?Understanding a company’s buying or selection process is only the beginning. Howdecisions are being made (by decision makers) and what emotional and psychologicalfactors influence those decisions is key to gaining mindshare and greater alignment withcustomers.

Research Exhibit C – The ROBB Group, LLC 2004-09

85% of account teams reported “Maybe or “No” when surveyed if they “provide clients with a business case describing their solution’s impact on cash, revenue, value”.

Use this chart to ask yourself AND your executives: How do you make decisions on what to purchase? - The answer provides insight into what your messaging, positioning, conversation topics should be when selling at these levels.


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QUESTION

We document and address decision maker influencers – emotions during our sales cycles.



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SALES IS NOT ALWAYS THE TOP INFLUENCER.In some markets and industries Sales organizations are NOT the primary influencer onwhy someone buys. You need to understand what these influencers are in your industry.

Research Exhibit D – Muller Shields, The ROBB Group, LLC 2005-06

*Muller Shields Report 2005, The ROBB Group C Level Buying Motivators 2005

Top Buying InfluencersSupplier Product Literature

Other C Levels (Peers)

Trade Publications / Advertising

Consultants

Trade Publications Editorials

Trade Shows

Professional Societies / Associations

Books (Academic and Ongoing EDU)

Computer / Software Company Sales Rep

Seminars Sponsored by Vendor

Dealer Sales Rep (Reseller)

President / CEO CFO / COOFear of Loss / Failure Stability / Predictability

Financial Gain / Wealth Financial Gain

Power Risk Mitigation

Pride Fear

Control Pride

Longevity Control


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NAVIGATING BUYING & DECISION MAKING STAGES.Understanding and navigating customer buying and decision making stages and processsteps is a key first step towards becoming recession proof.

Research Exhibit E – The ROBB Group, LLC 2004-09

*Muller Shields Report 2005, The ROBB Group C Level Buying Motivators 2005 7

Sales, Marketing, Support teams need to quickly assess what stage customers are at and add value to them at that stage. FYI 80% of sales people responded “Maybe”or “No” when asked if they “ensure a

client is ready OR able to buy AND use their product / service”.

Corporate Decision Making Stages

1.Objective, Goal Creation (Pain realization)2.Business Case Development3.Requirements Gathering4.Estimation / Capital Allocation / Budget5.Vendor Identification Contact / Eval6.Vendor Negotiation / Selection7.Project Planning (if needed)8.Procurement / Ordering9.Delivery –Implementation10.Maintenance

Consumer Decision Making Factors (Stages)

1.Emotional, Mental, Monetary Need2.Risk/Reward, Fear of Loss, Desire, Gain3.Cash Flow, Lifestyle, Ego, Power4.Impact Personally, Professionally, Family –Agreement Amongst Parties is Key5.Decision Influenced by Peer Group6.Emotional Purchase Justified by Logic or7.Logical Purchase Justified Emotionally8.Social Networking Influencing New Sales9.Peer / Family Referrals Strongest Results


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QUESTION

We provide our clients with a business case describing our solution’s positive impact on cash, profit, revenues.



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WHY RESTRUCTURING IS NEEDED.Some Sales organizations ARE the problem. Yes we said it…let us explain why.

Research Exhibit F – CSO Insights 2009

The charter of the sales organization isoften out of alignment with corporateobjectives (cash flow and profit FIRST).

Most sales behaviors drive towardschasing and securing revenues – notpreserving cash flow and driving profit orincreasing bottom line.

If sales helps to address the highlightedobjectives it would drive greater cash andprofit while ensuring top line growth.

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ADDRESSING INFLUENCERS: RECESSION PROOFING THE SALES MODELDo your Marketing, Advertising, Sales and Support approaches leave your customers with the feeling that you reallyknow them and are sensitive to the influencers below? If the answer is YES your model will drive more sales andensure retention.

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Your Impact on Their Family or

Customers

Your Impact on Their Emotions,State of Mind

Your Impact on Their

Needs / Goals

Your Impact onTheir Cash,Finances

Maximum Customer

Value

Customer’s or consumer’s current state or mindset.

Includes needs, desires.

Future state of customer or consumer after using your product or service.

Your vision for them.


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CUSTOMER ALIGNMENT IS THE KEY.Insight from customers on why sales wins is often difficult to come by and often taints Sales’ view ofthe world. You need to validate WHY you WIN and Why you LOSE customers!

Research Exhibit G – CSO Insights 2009

Directly contradicts the“Reasons for Losing data - #1 onthat list is Competitor’s Price.

Firms appear not to have a goodhandle on why they win;impacting their ability to target,qualify, forecast, close “ideal”client opportunities.

Higher relationships withinexecutive levels of customersdirectly improve win / close ratiosand quota attainment.


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DOCTORS DON’T OPERATE ON THEMSELVES…WHY SHOULD SALES?Sales needs help in restructuring its models and activities to reduce costs,improve profit and improve retention. This improves forecasting, visibility intocash, profit and revenues.

Research Exhibit H – CSO Insights 2009

66% of underperforming companies feel they need to improve in adapting their processes to changing market conditions.

Rapid shifts in market conditions surfacing need for timely metrics access.

Whether in complex or simple buying situations, the underlying principle of capturing data and adapting is the same.

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85% of account teams reported “Maybe or “No” when asked if they “gather input from client business executives (C levels) when developing a solution and relationship proposal”


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QUESTION

Our sales team closes deals based on our unique value – not discounts.



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WORLD CLASS VS. ALL OTHERS.Training and methodologies alone do not produce world class sales teams…Aleader in this space admits the performance gap.

Research Exhibit I – Miller Heiman 2007-08

These questions signify bestpractice approaches to salessituations.

The findings show thedifference in consistentlychoosing the “right” behaviorbetween world classorganizations and all others.

The findings also clearlyshow even world class salesorganizations are notconsistently doing the rightthings – exposing the limitedperformance and financialimpact of training and standardmethodologies.


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GOING FORWARD.Look at restructuring sales toreduce costs and cycle times whiledriving greater retention.

REVIEW - RESTRUCTURE

• Talent• Sales, Marketing, Support Models• Team Roles, Structure• Process and Individual Activity• Productivity Tools

1. Benchmark, assess and certify top performing talent internally – identify who can perform at high levels, “stretch” and be productive in tough economies.

2. Customize a benchmarking and certification program to assess, rank and source new top performing talent.

3. Benchmark and restructure internal models, process, team structures, activities taking costs out of sales, support, marketing.

4. Work with Customers to develop new relationship models, strategies and programs for ensuring customer retention, organic growth.

5. Identify and deploy new technologies that provide immediate ROI and can reduce sales, support or marketing costs.

6. Implement a coaching and management system to ensure performance goals are met, managed, measured.


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TALENT BENCHMARKING & ASSESSMENTS.Assessments on internal and external talent establishing benchmarks, ratios and correlations around:

• Skill – Knowledge• Behaviors• Motivators• Values

Sales Talent and Performance Benchmarking26 times chose the MOST effective sales strategy15 times chose the SECOND most effective sales strategy as #112 times chose the THIRD most effective sales strategy as #11 times chose the LEAST effective sales strategy as #1


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Q&A…TAKE AWAYS.

The ROBB Group, LLCRevenue Hunters International LLC. Partnership

14362 N Frank Lloyd Wright Blvd, Ste 1000 Scottsdale, AZ 85260

Mark DallmeierCEO - The ROBB Group, LLC

Global Council Member - Revenue Hunters International, LLC

Direct: [email protected]

www.therobbgroup.comwww.RevenueHuntersIntl.com

1. Write down what you like /dislike about your current sales, customer engagement model.

2. Complete the Poll questions and schedule a call with us to discuss findings, complete additional Q&A.

3. Receive free assessment and benchmarking tools.

4. Receive a free Sales best practices CD.

5. Receive surveys and frameworks to increase interaction with customers – seek performance and collaboration tools to drive greater alignment and sales efficiency.

6. Thanks for your time…stay tuned for the great iLincdemo!

mailto:[email protected]

http://www.therobbgroup.com/

http://www.revenuehuntersintl.com/


The ROBB Group is The Revenue Recovery Company.creators of unique Revenue Recovery Programs forexecutives.

Revenue Recovery Programs deliver results – and visibilityinto current performance benchmarks and revenue growthindicators, factors and dependencies that are increasing salescosts, sales cycle lengths and fueling margin – profit erosion.

Experts provide financial impact conclusions andrecommendations for deploying new models, methods,process, tools helping executives to deploy strategies thatreduce sales costs, sales cycle times and days to cash,recovering revenues at risk while deploying account levelstrategies for increasing margins and transaction sizes.

WWW.REVENUEHUNTERSINTL.COM

Revenue Hunters International helps reduce the risk, time andcost of taking a company’s products and services into themarket.

Our global Society of certified, elite Revenue Hunters canwork with your company to reach and influence executivedecision makers and restructure or streamline existing salesand marketing methods.

Society members are proven top performers and turnaroundexecutives that follow best practice methods and providecustomers with a library of best practices they can utilize toassess and optimize their organizations well after ourengagement ends.

becoming recession proof - ilinc is a key first step towards becoming recession proof. research...

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