digital transformation: 7 steps to sales growth
TRANSCRIPT
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Digital Transformation - Obstacles and Challenges*
*Source: Saugatuck Technology, “Digital Business” Survey(Nov. 2014, N=102 “C-level” IT / Bus. / Finance Leaders)
Your job is this
“Fire your sales force”
The old Golden Rule in Sales was:
Find out what your customers
want, and give it to them.
Give your customers the ability to
do what they can’t currently do
but would want to if they only
knew it was possible.
The new Golden Rule in Sales is:
Capture their imaginations
“Reasons lead to conclusions.Emotions lead to actions.”
- Saatchi & Saatchi
9
DecisionDrivers
Horizon 10 - 6 months
Horizon 26 - 12 months
Horizon 312 - 36 months
Thinking at 3 Time Horizons
Get it right
Get it wrong
- Geoffrey A. Moore
“Well, first off, realize you are in afight for your life. The new businessmodel is not a competitive threat, itis an existential threat.”
The status quo is not
a growth strategy
Disruptive Opportunity Matrix
ExtendWhiteSpace
Defend ExtendCurrent
New
Current New
Source: Create Marketplace Disruption by Adam Hartung, Pearson Education, Inc. 2009
Products
Customers
Strategic choices
DelusionalThinking
#1: Irrational complacency
#2: Catch the train
OLD THINKING
NEW TECHNOLOGY
FAIL
X
=
Think outside the box
Think outside the box
www.flickr.com/photos/12023825@N04/2898021822
Growth strategy
Overcoming change
Destination Thinking
You can’t teach an old dog new tricks
Rethinking the funnel
Rethinking the funnel
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Selling above the funnel
Q1 Q2 Q3 Q4 Q1 • Prospection
• Qualifying
• Needs
• Proposal
• Negotiation
• Close
DemandCreation
DemandCapture
• Market identification
• Requirements analysis
• Demand creating
• Lead Generation and
Management
• Engagement
Create a Compelling Value Proposition1
Differentiate or Die2
Marketing Today = Sales Tomorrow3
Digital Marketing: Demand Generation4
Distribution: Channels to Market5
The Customer Adoption Cycle6
Tipping the Funnel7
Future reality
What are the key business challenges
facing your target customers?
Focus on the problem
Target audience
Create a Compelling Value Proposition1
Differentiate or Die2
Marketing Today = Sales Tomorrow3
Digital Marketing: Demand Generation4
Distribution: Channels to Market5
The Customer Adoption Cycle6
Tipping the Funnel7
http://tabernaclefortoday.files.wordpress.com/2012/03/cart_before_the_horse.jpg
Cart before the horse
Build a better mouse trap
www.flickr.com/photos/clementlivolsi/4596430458
“If I had asked people whatthey wanted, they wouldhave said faster horses.”
- Henry Ford
1863 - 1947
3 levels of clarity
Basic Product/Service:• Technology• Price performance• Product quality
E2E Customer Experience:• People• Perceived value• High touch• Exceed customer expectations• Delight and astound customers
12 Support Services
3E2E
Customer Experience
Differentiation: 3 Levels of Perceived Value
BasicProduct/Service
Support Services:• Levels of support• Quality of service• Systems• Processes
Your Cloud Services
Price vs Value
Products ServicesExperienceCustomer
Create a Compelling Value Proposition1
Differentiate or Die2
Marketing Today = Sales Tomorrow3
Digital Marketing: Demand Generation4
Distribution: Channels to Market5
The Customer Adoption Cycle6
Tipping the Funnel7
The problem is that customers don’t buy
the way we sell
The Age of the Customer
Make people
want things20th century
Make things
people want21st century
Product
Place
Price
Promotion
4P's
Solution
Access
Value
Education
SAVE
Educate
Inspire
Create a sense of urgency
Create a Compelling Value Proposition1
Differentiate or Die2
Marketing Today = Sales Tomorrow3
Digital Marketing: Demand Generation4
Distribution: Channels to Market5
The Customer Adoption Cycle6
Tipping the Funnel7
Digital reality
Interruption Marketing: Targeting Audiences with messages through channels to drive transactions
The OLD World
Engagement Marketing: Engaging communitieswith shared purposethrough experiences to sustain relationships
The NEW World
Interruption Marketing
Engagement Marketing
Early Adopter Market Mainstream Market
DANGER - CHASM!
Accelerating Customer Adoption of Cloud Services
TIME
Create capacityto service demand
Technology Vendors Channel Partners
Build the buzz!!!!
Build sales channels
• Distributors• Retailers• Resellers• VARs• Service Providers• System Integrators• Consulting Partners
TechnologyInnovators
2%
Visionaries
14%
Pragmatists
34%
Conservatives
34%
Sceptics
16%
Create a tipping point
Influencer/Adopter Programs
Demand Generation
Influence Generation: Capture the hearts and minds of Tech savvy early adopters, opinion
leaders and influencers
Channel readiness & activation
GTM Strategy & Business Plan
PER
CEN
TAG
E O
F P
OP
ULA
TIO
N
AB
source: www.corporatevisions.com
Marketing Today = Sales Tomorrow
source: www.corporatevisions.com
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Marketing Today = Sales Tomorrow
• Challenge them• Destabilise them• Challenge the status quo• Get them out of comfort zone• Take them to the negative
future• Sell your insights
• Provide evidence• Cost justify• Lead them through the
process• Take them to the beach• Sell your insights• Sell your experience
• Take them to the negative future
• Create a sense of urgency• Monetise the cost of delay• Take them to the beach• Guide them to take action• Take the order
Demand Generation 2.0
Sales Transformation
OLD NEWThe IT Buyer The Business Buyer
Selling into CapEx Budgets Selling into OpEx BudgetsTechnical Expertise Business Expertise
Geographic Sales Territories Vertical Industry TerritoriesSelling Features Selling Results
Fixed-Price Contracts Outcome-Based ContractsDemonstrating Features Business Process Discussions
Your Complexity and Underlying Architecture
Your Consumption Model and Service Capability
Maintenance Contracts "Apps Mindset"
Face2Face Sales Skills Social Media Knowledge
Source: Consumption Economics: The New Rules of Tech by J. B. Wood, Todd Hewlin and Thomas Lah, 2011
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Selling Business Outcomes
• Increased revenues or profitability• Faster time to market• Decreased costs• Improved operational efficiency• Revitalizing the organization• Enhancing customer loyalty• Increased market share• Decreased employee turnover• Improved customer retention levels• Increased competitive differentiation• Faster response time• Decreased operational expenses
• Increased sales per customer• Improved asset utilization• Faster collections• Reduced cost of goods sold• Minimized risk• Additional revenue streams• Improved time-to-profitability• Increased billable hours• Reduced cycle time• Increased inventory turns• Faster sales cycles• Reduced direct labor costs
Create a Compelling Value Proposition1
Differentiate or Die2
Marketing Today = Sales Tomorrow3
Digital Marketing: Demand Generation4
Distribution: Channels to Market5
The Customer Adoption Cycle6
Tipping the Funnel7
Channels to Market
SOHO & SMBOnline Channel
TelesalesPartners
MidmarketOnline, Telesales & Partners
EnterpriseDirect & Partners
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• Skill to ask the right questions to change the conversation
• Share your relevant industry and business insights with customers
• Focus on the customer’s business in the areas where the value payoff for the customer may be the greatest
• Knowledge of the customer’s business to calculate the monetized value
• Strategy to target the right Decision Makers within the right accounts
Complex Sales
Transactional Sales
• High value / high touch• Sales Rainmakers• Insight-led selling
• High volume / low touch• Sales automation• Viral marketing
• Digital Marketing• Leveraging social media• Creating relevant and sharable content• Creating a buzz• Creating awareness• Creating demand
Sales Alignment
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ReferralSelling
SellingAdoption
Starting convers
ation
InsightSelling
Market
Segmentations
ConsumerSME
MME
ENT
MNC
RisksAvoiders
Innovators EarlyAdopters
ComplianceSeekers
Ultimate Decision
Maker Personas
(Buyer Types)Direct Sales Channel
Segmentation
Direct Sales
Channel Sales
Online Sales
Channel Sales
Online SalesDemand Creation
Awareness Education
Source of sales leads
Add Value
Can Sell Reachnew Markets
Technical Support
Go-To-Market Mapping Process
Create a Compelling Value Proposition1
Differentiate or Die2
Marketing Today = Sales Tomorrow3
Digital Marketing: Demand Generation4
Distribution: Channels to Market5
The Customer Adoption Cycle6
Tipping the Funnel7
Drivers of Adoption
“Customers are completing
57% of a buying cycle before
ever coming into contact with
a sales rep.”
- A CEB study of more than 1,400 customers
The Buying Decision Process
Adoption
Cycle Sales
Model
Transactional
Sales Model
Search
Find
Qualify
Try
Buy
Activate
Manage
Up-sell
Support
Refer
The Customer Adoption Cycle
Create a Compelling Value Proposition1
Differentiate or Die2
Marketing Today = Sales Tomorrow3
Digital Marketing: Demand Generation4
Distribution: Channels to Market5
The Customer Adoption Cycle6
Tipping the Funnel7
Tipping the Funnel
Clients: Actions:
Tipping the Funnel
Typical Conversion Rates
1. Cold calling:
2. External Recommendation:
3. Internal Recommendation:
44%10 X Cold calling
(Between 1-5%) 4%
88%20 X Cold calling
Audience 2
Social Influence
1. Compelling Value Proposition2. Differentiate or Die3. Marketing Today = Sales Tomorrow4. Digital Marketing: Demand Generation5. Distribution: Channels to Market6. The Customer Adoption Cycle7. Tipping the Funnel
Quick Review:
4Ps => S A V E
Differentiation: 3 Levels of Perceived Value
Turn customers into your unpaid sales force
Align all Sales & Marketing actions
What is the business problem?
Competing to remain relevant to tomorrow’s customers
Build a Go-to-Marketing Map
Integrated campaigns
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• The client has changed• The buying process has changed• The Sales Cycle -> The Customer’s Journey• Market segmentation -> Buyer personas
Moving to the Cloud means Business Transformation
• Marketing -> Digital-> Social Media-> Social Influence -> Social Selling
• Demand Generation• User Value Proposition and Persona Messaging• Marketing Manger -> Community Manager• Internal Alignment• Execution• Sales Channel alignment• Multi-channel touchpoint experience • E2E Customer Experience
Rethink the Customer
Rethink Sales & Marketing
Rethink your Organisation
Business Transformation
Channel TransformationThe Cloud = Massive Change
Get it right
www.flickr.com/photos/horacio/3781750
David R Ednie
President & CEO
SalesChannel Europe
Ph: +33 676 60 09 25 (FRA)
Email: [email protected]
Website: www.saleschannel-europe.com