Professional Services Sales MethodologyAmbareesh Kulkarni

Customer Engagement Life Cycle

1.0Identify

2.0Qualify

3.0Propose

4.0Negotiate

5.0Deliver

6.0Support

Customer Engagement Life Cycle

1.0Identify

2.0Qualify

3.0Propose

4.0Negotiate

5.0Deliver

6.0Support

Lead Opportunity Project

Sales Process Delivery process

BacklogFunnel

Responsibilities of Sales/Services team1.0

Identify2.0

Qualify3.0

Propose4.0

Negotiate5.0

Deliver6.0

Support

Lead Opportunity Project

Sales Process Delivery process

BacklogPipeline

Sales Services Delivery team

Services Sales Charter

• Identify new service opportunities in existing install base

• Identify new service opportunities with new customers

• Manage pricing and positioning of Statements of Work made to the customer

• Close business (signed and approved paperwork)• Forecast & Maintain accurate pipeline

Identify Service Opportunities

1.0Identify

2.0Qualify

3.0Propose

4.0Negotiate

5.0Deliver

6.0Support

• Identify new service opportunities• Greatest revenue will come from existing install base• 80% of revenue will come form 20% of current

customer accounts• Leads come from: Marketing activities, Strategic

account managers, Personal contacts & Consultants

Qualify Service Opportunities

1.0Identify

2.0Qualify

3.0Propose

4.0Negotiate

5.0Deliver

6.0Support

• Funding: Does the customer have the budget available for the proposed project?

• Timing: When does the customer need to start?• Competition: How are we well positioned? How many

competitors are we bidding against?• Services Expertise: Have we delivered this type of project

before? Does the services group have the required resources to deliver the project?

Qualify Service Opportunities

1.0Identify

2.0Qualify

3.0Propose

4.0Negotiate

5.0Deliver

6.0Support

Sirens’ Song: The more bids that we submit, the more business will be won and the more profit there will beBoulder ahead: Bidding on services opportunities that have a low probability of being won can be the most expensive mistake we can make

Qualify Service Opportunities

1.0Identify

2.0Qualify

3.0Propose

4.0Negotiate

5.0Deliver

6.0Support

• If there is less that 50% chance of winning, best thing to do is walk away

• Apply rigorous Bid/No Bid evaluations:– # of competitive bidders– Estimated effort to complete the proposal– Estimated total revenue & gross margin– Estimated probability of winning the project– Estimated start date

Propose Service Solution

1.0Identify

2.0Qualify

3.0Propose

4.0Negotiate

5.0Deliver

6.0Support

• This is the step where a Statement of Work is created

• Know the different types of services offerings that are available (see next slide)

• Ensure that the opportunity is qualified and the customer is familiar with the products being proposed

Propose Service Solution

1.0Identify

2.0Qualify

3.0Propose

4.0Negotiate

5.0Deliver

6.0Support

Offering DescriptionTime & Materials Pay by the drink. High Value and aligns priorities.

Fixed Price Highest risk. Customer’s perceived value is high. Shows confidence on our part.

Packaged offering Easy to sell, High value and creates potential upsell opportunities.

Bundled with software

Easy to sell & easy to buy. Gets our foot in through the door. High risk of expectation mismatch.

Negotiate

1.0Identify

2.0Qualify

3.0Propose

4.0Negotiate

5.0Deliver

6.0Support

• This is the step where the customer is seeking clarifications on the SOW

• The customer may also want to negotiate on price, timelines etc.– Typical tactic: Request a T&M proposal and then ask that we

fix price it! Can be done, with appropriate markups (about 20-20%).

– Get agreement on ‘walk away’ price.

Negotiate – New Rate Card

1.0Identify

2.0Qualify

3.0Propose

4.0Negotiate

5.0Deliver

6.0Support

Delivery - Preparation

1.0Identify

2.0Qualify

3.0Propose

4.0Negotiate

5.0Deliver

6.0Support

• Once signed SOW and PO is received, resourcing process begins

• Typical lead time 4-6 weeks• Consultants are assigned based on skills set

and availability• Consultants can be sourced Globally

Delivery – Project Start

1.0Identify

2.0Qualify

3.0Propose

4.0Negotiate

5.0Deliver

6.0Support

• Consultants follow delivery methodology outlined in the SOW

• Kick off call to be scheduled with customer– AD or SE to help schedule– Consultant will query customer on readiness (pre-reqs.)– Start-date and time to be agreed upon

• Project admin. makes travel arrangements• Implementation begins

Opportunity forecasting

• Critical for us to manage treacherous supply-demand curves

• Inaccurate forecasting can lead to a deep and expensive hole or, at the minimum, a lost revenue opportunity

Payment ScheduleMos

t favorabl

e

• Time & Materials• Gives us the most flexibility and contractual protection.

Less Favorable

• Fixed Price or Milestone based• Commercially viable only if appropriate markup is added.

Even

Less Favorable

• Not to Exceed• Risk Exposure is very high with no upside.

Least

Favorable

• Carve out from Software• Equivalent to giving services away for free and includes

all of the risks mentioned above.