how to win against the competition
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IBM Partner Skills program, IBM SWG Europe by Tom CairnsTRANSCRIPT
© 2013 IBM Corporation
IBM SWG Europe
Partner Sales Skills Program
“How to Win against the Competition ”
Tom Cairns : Europe IOT Leader, Sales Skills Development, IBM Software Group Channels
© 2014 IBM Corporation
© 2013 IBM Corporation
Improve Yield from your Pipeline and Close more Deals
The Sales Execution Method
“How to Win against the Competition – Focus on Sales Execution Skills”
© 2013 IBM Corporation
SALES TRANSFORMATION …………..The Sales Execution Method (SEM) Workout to Win (WOW) Program
The Challenge – Impact of WWW – “The buyers know more than the sellers”
The Mission – improve sellers sales skills, coach sellers in their accounts
The Plan - Directly Target Core/Invest BP’s. Coach VADs to do the rest
The Results – Those adopting the SEM WOW Program rewarded by a 15% to 36% sales growth, quality pipe and faster deal progression
The SEM WOW Program – Creates more opportunities, differentiates your solutions and so closes more sales – it gets results
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Providing the right Sales Tools for the right job
© 2014 IBM Corporation
© 2013 IBM Corporation
3 Key Objectives to drive Sales Execution
1. Identify the Strategic Business Outcome
2. Co-Develop a Compelling Event
1. Share Ownership of the Buying Process
24© 2014 IBM Corporation
© 2013 IBM Corporation
Top 5 Reasons Buyers Say That Vendors Lose?
5.) All looked the same so we chose on price.
4.) I never met anyone from that company.
3.) We didn't like their sales approach.
2.) We were more comfortable that the other vendor would deliver what we needed.
1.) The vendor didn't present a business solution that addressed our business problem.
Source : Sirius Research 2012-2013
9© 2014 IBM Corporation
© 2013 IBM Corporation
Recent SELLING RESEARCH ( sources; McKinsey and Co and Forrester )
70% of executives perceive commoditization and lack of competitive differentiation is their NUMBER ONE GROWTH THREAT
95% of all C level executives and managers report that they are overwhelmed by the amount and complexity of data and information
So, its a great time to be in sales, BUT…………………..
Only 15% of executives rated their sales call as providing VALUE TO THEM
Only 7% of executives said they would schedule a follow up meeting
6 © 2014 IBM Corporation
© 2013 IBM Corporation
The Changing Landscape….
"The internet has changed the timing and nature of the first interaction that sellers have with buyers. Today's (B2B) buyer wants to go into the buying process as far as possible before having any contact with salespeople. Buying experiences that begin electronically are becoming the rule, and that trend will continue."
- John Holland, Tim YoungRethinking The Sales Cycle
7 © 2014 IBM Corporation
© 2013 IBM Corporation
If they have to call you… you are already late….
The average purchase decisionIs 57% complete, and more that 10Information sources have been consultedby the time a supplier is engaged
The average B2B purchase decision is 57% complete, and more than 10 information sources have been consulted, by the time a supplier is engaged.
8 © 2014 IBM Corporation
© 2013 IBM Corporation
Selling Yesterday
Leads
Opportunities
Qualified Opps
Contract
Customer
Latent PainBurn VictimNot a Priority
10-20% Looking
Salesperson has information that prospect does not have. Salesperson assists in creating vision
9 © 2014 IBM Corporation
© 2013 IBM Corporation
Selling Today in Changing Buyers Landscape?
Leads
Opportunities
Qualified Opps
Contract
Customer
Latent PainBurn VictimNot a Priority
10-20% Looking
Buyers create their own buying
vision without Salesperson
InformationEverywhereInformationEverywhere
Social Networking
Social Networking
Internet, Websites,
Blogosphere
Internet, Websites,
Blogosphere
Data, Smartphones
mobile computing
Data, Smartphones
mobile computing
Salesperson has information that prospect does not have. Salesperson assists in creating vision
10 © 2014 IBM Corporation
© 2013 IBM Corporation
SO, WHAT DO WE DO ?
WE NEED TO CHANGE THE CONVERSATION NOW
11 © 2014 IBM Corporation
© 2013 IBM Corporation
WE need to Change our Conversations – earn the right to ask questions …… by showing INSIGHT to Customer Business Problems linked to Outcomes
GRAB Customer Prospect Attention by showing INSIGHT to key Business Problems
INDENTIFY Problems that BLOCK their key STRATEGIC BUSINESS OBJECTIVES
QUANTIFY IMPACT of the BUSINESS PAINS caused by Business Problems
SEPARATE their TECHNICAL PAINS and LINK each to specific BUSINESS PAINS
HIGHLIGHT YOUR UNIQUE CAPABILITY to solve TECHNICAL PAINS to then remove linked BUSINESS PAINS and so achieve BUSINESS OUTCOMES and OBJECTIVES
NOW PROVE IT WITH YOUR UNIQUE SOLUTION
CUSTOMER UNIQUE VALUE is achieved
12 © 2014 IBM Corporation
© 2013 IBM Corporation
The Proven Sales Execution Method
“Selling is a Science and an Art”
© 2013 IBM Corporation© 2010 IBM Corporation3
THE PROVEN SALES EXECUTION METHOD
PLANNING SELLING NEGOTIATION/CLOSING
14 © 2014 IBM Corporation
© 2013 IBM Corporation15 © 2014 IBM Corporation
© 2013 IBM Corporation
The SALES EXECUTION METHOD
PLANNINGBUSINESS PLANNING
BUSINESS DEVELOPMENT
SELLINGDeal PROGRESSION “ health check”
OPPORTUNITY IDENTIFICATION AND QUALIFICATION
UNDERSTAND INFLUENCE
DISCOVERY to gain Insight
SOLUTION, DEFINITION & PROOF
ALIGNMENT, Agreement
NEGOTIATION & CLOSINGALIGNMENT, Negotiation, Won
IMPLEMENT
CONFIRM
27© 2014 IBM Corporation
© 2013 IBM Corporation
The SALES EXECUTION METHOD…with WOW Sales Tools
PLANNINGBUSINESS PLANNING - TERRITORY PLAN and ACCOUNT GROWTH TOOL
BUSINESS DEVELOPMENT – PROSPECTING, PIPELINE & BUSINESS DEV. TOOL
SELLINGDeal PROGRESSION “ health check” – THE “ WOW SELLER CHECKLIST” TOOL
OPPORTUNITY IDENTIFICATION, QUALIFICATION – QUALIFICATION PLUS “EX3” TOOL
UNDERSTAND INFLUENCE - INFLUENCE MAP TOOL
DISCOVERY to gain Insight - CLIENT VALUE IMPACT PROFILE TOOL
SOLUTION, DEFINITION & PROOF – DEAL WIN SCORE CARD TOOL
ALIGNMENT, Agreement - CLIENT VALUE DIAGRAM TOOL
NEGOTIATION & CLOSINGALIGNMENT, Negotiation to win - NEGOTIATION GET – GIVE TOOL
IMPLEMENT - IMPLEMENTATION PLAN TOOL
CONFIRM – NEW REFERRALS PRE – CALL PLANNING TOOL
© 2014 IBM Corporation17
Providing the right Sales Tools for the right job
© 2013 IBM Corporation
Now for the format we’ll follow to guide us through each step
of the sales process…
© 2013 IBM Corporation
Step #Step #
GOAL: Goal of the Stage
TOOLS: • Key tools in Support of the stage
ACTIVITIES: • Key Activities of this Stage
© 2013 IBM Corporation
Step #Step #
CHECKLIST: Checklist of milestones that should be met prior to moving
on to next Stage
VERIFIABLE OUTCOMES:
Key Outcome of this step that should be expected before moving on
© 2013 IBM Corporation
And NOW for a little…Workout and Exercise
© 2013 IBM Corporation
The WOW Checklist – The Compass that guides us
“Are we going to reach our Destination?”
© 2013 IBM Corporation
The SALES EXECUTION METHOD…with WOW Sales Tools
PLANNINGBUSINESS PLANNING - TERRITORY PLAN and ACCOUNT GROWTH TOOL
BUSINESS DEVELOPMENT – PROSPECTING, PIPELINE & BUSINESS DEV. TOOL
SELLINGDeal PROGRESSION “ health check” – THE “ WOW SELLER CHECKLIST” TOOL
OPPORTUNITY IDENTIFICATION, QUALIFICATION – QUALIFICATION PLUS “EX3” TOOL
UNDERSTAND INFLUENCE - INFLUENCE MAP TOOL
DISCOVERY to gain Insight - CLIENT VALUE IMPACT PROFILE TOOL
SOLUTION, DEFINITION & PROOF – DEAL WIN SCORE CARD TOOL
ALIGNMENT, Agreement - CLIENT VALUE DIAGRAM TOOL
NEGOTIATION & CLOSINGALIGNMENT, Negotiation to win - NEGOTIATION GET – GIVE TOOL
IMPLEMENT - IMPLEMENTATION PLAN TOOL
CONFIRM – NEW REFERRALS PRE – CALL PLANNING TOOL 69
© 2014 IBM Corporation
© 2013 IBM Corporation
And NOW for a little…Workout and Exercise
© 2013 IBM Corporation
Opportunity Identification
“Every Problem is an Opportunity”
© 2013 IBM Corporation
The SALES EXECUTION METHOD…with WOW Sales Tools
PLANNINGBUSINESS PLANNING - TERRITORY PLAN and ACCOUNT GROWTH TOOL
BUSINESS DEVELOPMENT – PROSPECTING, PIPELINE & BUSINESS DEV. TOOL
SELLINGDeal PROGRESSION “ health check” – THE “ WOW SELLER CHECKLIST” TOOL
OPPORTUNITY IDENTIFICATION, QUALIFICATION – QUALIFICATION PLUS “EX3” TOOL
UNDERSTAND INFLUENCE - INFLUENCE MAP TOOL
DISCOVERY to gain Insight - CLIENT VALUE IMPACT PROFILE TOOL
SOLUTION, DEFINITION & PROOF – DEAL WIN SCORE CARD TOOL
ALIGNMENT, Agreement - CLIENT VALUE DIAGRAM TOOL
NEGOTIATION & CLOSINGALIGNMENT, Negotiation to win - NEGOTIATION GET – GIVE TOOL
IMPLEMENT - IMPLEMENTATION PLAN TOOL
CONFIRM – NEW REFERRALS PRE – CALL PLANNING TOOL 73
© 2014 IBM Corporation
© 2013 IBM Corporation
And NOW for a little…Workout and Exercise
© 2013 IBM Corporation
Step 3 WORKOUT – EX3 Tool Step 3 WORKOUT – EX3 Tool
WorkoutExercise
Objective: Define whether you have a qualified opportunity – Articulate the following……
1.What is the Business Problem ?….and the associated Business Pain?2.Which LOBs does this business problem impact?3.In client terms…what is the potential financial impact of……
a) The business pain? b) Solving the business pain?c) Doing Nothing?
4.Client sees the value of solving the business pain? 5.What is the implementation timeframe? Compelling Reason to Act or Compelling event? 6.What is the anticipated buying process? 7.Will we win? What are your unique differentiators?
Outcome: Qualified with Action Plan
SEM WOW: CRM: Customer:
Opportunity IdentificationIdentified / Validating Analyze Impact
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© 2013 IBM Corporation
PRIORITIZE YOUR OPPORTUNITIES – PROSPECTS SCORECARD
26 IBM Confidential
1. ORGANIZATIONAL BASICS ( do not pursue the deal if either is NO )1. Does the customer have significant current or potential
spend?2. Is the customer financially sound
2. OPERATING ENVIRONMENT (1 point for each yes)1. Does the customer face external pressures to change, such
as new industry regulations or loss of market position2. Are there internal pressures to change, such as new
management or a rethinking of strategic direction?
3. VIEW OF THE STATUS QUO (2 point for each yes)1. Is there organization-wide discontent with the status quo?2. Does the current supplier fall short of expectations?3. Is the customer unhappy with existing work processes?
4. RECEPTIVITY TO NEW OR DISRUPTIVE IDEAS (3 point for each yes)1. Do internal stakeholders frequently share best practices?2. Do they attend conferences and other learning events3. Do leaders look to the broader organization for ideas?
5. POTENTIAL FOR EMERGING NEEDS (4 point for each yes)1. Do stakeholders engage in constructive dialogue when their
assumptions are challenged?2. Do they seek to continue conversations about industry
benchmarks and trends?3. Is there at least one confirmed “mobilizer” in the company?
YES NO
UNKNOWNYES NO
TOTALSOURCE; HRB JULY/AUG 2012
© 2013 IBM Corporation
PRIORITIZE YOUR OPPORTUNITIES – EVALUATE YOUR PROSPECTS
SCORING METRICS
27 IBM Confidential
0 - 10 10 - 20 20+
CONSIDER NOT PURSUING THE OPPORTUNITY
CONSIDER PURSUING THE OPPORTUNITY WITH LIMITED RESOURCES
CONSIDER PURSUING THE OPPORTUNITY WITH FULL RESOURCES
SOURCE; HRB JULY/AUG 2012
© 2013 IBM Corporation
Discovery to gain Insight
“Insight ……….develop with Empathy”
© 2013 IBM Corporation
The SALES EXECUTION METHOD…with WOW Sales Tools
PLANNINGBUSINESS PLANNING - TERRITORY PLAN and ACCOUNT GROWTH TOOL
BUSINESS DEVELOPMENT – PROSPECTING, PIPELINE & BUSINESS DEV. TOOL
SELLINGDeal PROGRESSION “ health check” – THE “ WOW SELLER CHECKLIST” TOOL
OPPORTUNITY IDENTIFICATION, QUALIFICATION – QUALIFICATION PLUS “EX3” TOOL
UNDERSTAND INFLUENCE - INFLUENCE MAP TOOL
DISCOVERY to gain Insight - CLIENT VALUE IMPACT PROFILE TOOL
SOLUTION, DEFINITION & PROOF – DEAL WIN SCORE CARD TOOL
ALIGNMENT, Agreement - CLIENT VALUE DIAGRAM TOOL
NEGOTIATION & CLOSINGALIGNMENT, Negotiation to win - NEGOTIATION GET – GIVE TOOL
IMPLEMENT - IMPLEMENTATION PLAN TOOL
CONFIRM – NEW REFERRALS PRE – CALL PLANNING TOOL 98
© 2014 IBM Corporation
© 2013 IBM Corporation
And NOW for a little…Workout and Exercise
© 2013 IBM Corporation
SEM Stage – Discovery & Insight
The Client Value Impact Profile (CVIP)
Use the CVIP as a guide to identify and articulate the Partner/IBM solutions client specific value that is meaningful to decision makers. The CVIP captures and connects Strategic enterprise objectives with the Partner/IBM solutions enabled business outcomes
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© 2013 IBM Corporation
Requires 15 additionalheadcount
Increased HW, Support and maintenance cost
IT is 16% over budget
$15 million spentOff contract
Frustrated Marketing team
20% turnover inmarketing
Report distribution takes four days
Users do not have right data in a useable format
Slow decision making in marketing
All report developmentis in IT
Too many IT Resources to meet user rpt req
Need different reporting tools
SysAdmin and Servers for each reporting tool
Data is stored in multiple systems
No visibility to spend by vendor
Missed three Major market opportunities
Client Value Diagram
10% increase in costs Y/Y
Improve operatingmargin by 8%
Grow market share 3%
Market share declining3% per year
Operating margin 8%below expectations
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© 2013 IBM Corporation
Value Proposition – Solution, Definition & Proof
“Value is like beauty……….it’s in the eye of the beholder”
© 2013 IBM Corporation
Leveraging Your Work in the CVIP
Objective Current Barriers Desired Outcome
Stakeholder
Metric Value Driver
Capabilities
What are you trying to do? What is the need?
Business Pain - Why can’t you do it today?
Technical Pain – Why can’t you do it today?
What does success look like to you?
Who cares about this most?
What is the highest level KPI that this can positively affect?
What in IBM’s solution enables this?
Need to reduce time wasted on low value customers
Can’t find revenue contribution by customer
No access to the right information since data is stored in multiple systems
Increase opportunities by identifying key markets
John Smith, VP Marketing
Increase sales / revenue by 4%
Access to all data source simultaneously to provide federated queries
IBM ahead of SAP
This will help you analyze revenue contribution by customer so you can identify key markets and focus on your goal of increasing sales by 4%
The federated query capability that is so unique to IBM Cognos 10
The case study for Customer XYZ highlights that they chose IBM over the other vendors they were evaluating because of …
Establish Credibility
State the Advantage
Close with a Value Statement
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© 2013 IBM Corporation
Negotiating and Closing
“Never give without getting”
© 2013 IBM Corporation
Sales Tools
PLANNINGBUSINESS PLANNING - TERRITORY PLAN and ACCOUNT GROWTH TOOL
BUSINESS DEVELOPMENT – PROSPECTING, PIPELINE & BUSINESS DEV. TOOL
SELLINGDeal PROGRESSION “ health check” – THE “ WOW SELLER CHECKLIST” TOOL
OPPORTUNITY IDENTIFICATION, QUALIFICATION – QUALIFICATION PLUS “EX3” TOOL
UNDERSTAND INFLUENCE - INFLUENCE MAP TOOL
DISCOVERY to gain Insight - CLIENT VALUE IMPACT PROFILE TOOL
SOLUTION, DEFINITION & PROOF – DEAL WIN SCORE CARD TOOL
ALIGNMENT, Agreement - CLIENT VALUE DIAGRAM TOOL
NEGOTIATION & CLOSINGALIGNMENT, Negotiation to win - NEGOTIATION GET – GIVE TOOL
IMPLEMENT - IMPLEMENTATION PLAN TOOL
CONFIRM – NEW REFERRALS PRE – CALL PLANNING TOOL 132
© 2014 IBM Corporation
© 2013 IBM Corporation
Negotiating and Closing – The No 1 Issue in selling?
The Theory – If salespeople are not making their numbers they must have a problem closing
The Fact – The so called skill of asking for the order is NOT the big problem; the real problem with closing is not defining or diagnosing the prospect’s problem and not creating the link to value
The Solution – The best close is NOT to have a close……using the Sales Execution Method with solution selling techniques results in Closing being the natural evolution of the sales process
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© 2013 IBM Corporation
Negotiation Worksheet The Give/Get List Template - Example
Our Priority
GET GIVE Projected Customer
PriorityElement
Potential Value
Potential Value
Element
1 Larger Volume deal $100k $15k Payment terms/special financing 2
2 Become a reference $?k $20k Training discounts 1
3 Lower cost of sales by avoiding Pilot
$5k $10k Short-term licenses 4
4 Referrals for new business prospects
$?k $10k Refund on proof of concept already conducted
3
5 Pay software cost for Phase II at same time as Phase I
$2k $1k Reduce software costs 5
Partner / IBM NON NEGOTIABLES CustomerMaintenance Discounts
Free Consulting
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© 2013 IBM Corporation
Successful Closing and Negotiation
Follow the Sales Execution Method steps to ensure closing is a natural evolutionary part of the sales process
Build a Get/Give List
Create a Negotiation worksheet for each opportunity approved by your manager
Create specific Negotiation Call Plan for each interaction
Negotiate from a position of strength – have a strong Pipeline
Final agreement = sales success
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© 2013 IBM Corporation
IBM SWG Europe Partner Sales Execution Skills Program
NEXT STEPS?
© 2013 IBM Corporation
THE SEM WOW PROGRAM…….
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© 2013 IBM Corporation
An Example SEM WOW PROGRAM …….
45 © 2014 IBM Corporation
© 2013 IBM Corporation
Sales must register for 1
of the 4 available
sessions on each subject
An Example Partner SEM WOW PROGRAM …….
© 2013 IBM Corporation47 © 2014 IBM Corporation