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Strategy, Sales, & Sales Management



Strategy, Sales, Sales Management

B2B Sales Management 101

B2B Sales Strategy 101

B2B Sales Case Study: GrooveSales & Strategy Reading List



B2B Sales Management 101 -- Harsh Reality



B2B Sales Management 101 – The Number“Quarteritis…”

“The sun rises & sets on the quarter”



B2B Sales Management 101 – Sales Representatives

Sales Rep ProfilePersonable, builds trust

High energy

Aggressive/”edge”

Street Smart (v. book-smart)

Listeners/nonverbal

Motivated by money

80-20 rule

CompensationBase $90k - $100k

Commission $125k (plus draw)

0%-50% quota = x%; 50% -100% quota = 2x%; > quota = 3x%Stock options – less important

President’s Club

Top reps’ pay > CEO’s

Measurable & Accountable – high turnover tolerated



B2B Sales Management 101 – Strategic Selling

Nuclear unit

SR, SE, Cnslt, Mgmt

Power Selling

Champions

Coaches

Economic Buyer

IT, LOB IT, LOB, PrchsgLegal, Finance, BOD

Find Pain, Find $

Ask questions/listen/non-verbal

BOD

CEO

LOB LOB LOB LOB LOB IT Finance Purchasing Legal

VP Enterprise Apps

…Bus IT …Bus IT …Bus IT …Bus IT …Bus IT VP Enterprise Infra

CTO

Etc



B2B Sales Management 101 – Predicting The Future

PROSPECTS(Email, URL, Source, HI-IQ Email

Nurture)LEADS

(Phone #, Lead ConversionEvent)

NEW CUSTOMERS(CC# and

Authorization)

SatisfiedCHI > 70Unsatisfied

Market in

g

Sales

Custom

er

Service

HubSp

ot

HI-IQ

SalesF

orce.

com

OPPORTUNITIES(Demo/Trial, 3 per day per rep)

SalesF

orc

e.c

om

SUSPECTS(HubSpot, WSG; PPC MVT)



B2B Sales Management – Predicting the FutureThe Funnel

Visitors

Prospects

Leads

Opts



B2B Sales Management 101 -- Predicting the FutureThe Forecast

Closed Likely Upside Q+1 P E D D I C C RD% VP% Fcst Upside

eCommerce 248,405 47,250 15,000 10,000 9,025 9,000

Inside Sales 207,900 10,000 - - 1,000 -

Salva Army: Stryker 125th TF Olympia 151,662 - - - - -

McPartland KPMG - Services 150,000 - - - - -

Black BAH / Centrix 78,183 - - - - -

Okada NG / State Near East Bureau 62,894 - - - - -

Okada CARE 60,266 - - - - -

Foster Tyco - software 56,389 - - - - -

Marcus CA Dept of Justice 56,279 - - - - -

Wilson Microsoft 54,856 - - - - -

37,021 - - - - -

Smith SPAWAR-DM,B/U Svr 36,794 - - - - -

Black DARPA (SAIC/Hicks) 32,218 - - - - -

Tyre EDS 28,265 - - - - -

Foster Praxair 23,977 - - - - -Marcus State of FL 22,943 - - - - -

Shartzer LDS - Deseret Mgt 18,483 - - - - -

Shore P&G 17,987 - - - - -

Manniso VA - Infrastructure (Albany NY Buy 15,120 - - - - -

Tyre Shell - tr ial extension 15,000 - - - - -

Smith SPAWAR Europe/Ivan(2) 14,075 - - - - -

Salva Army Corp. Of Engineers - 1,808,559 - - Y Y Y Y Y Y Y 50% 50% 904,280 -

McPartland EY - enterprise - 787,000 - - Y Y Y Y Y Y Y 80% 90% 78,700 -

Salva Army: HQ - 439,480 - - Y Y Y Y Y Y Y 95% 95% 21,974 -

Shartzer Hitachi Data Systems - 192,465 - - y Y Y y y Y N 80% 80% 38,493 -

Shore GSK - 104,000 - - Y Y Y Y Y Y Y 70% 90% 10,400 -

Salva PM RESET (Aviation) - 93,417 - - Y Y Y Y Y Y Y 95% 90% 9,342 -

Shore Lowe/Draft - 65,000 - - Y Y Y Y Y Y Y 70% 50% 32,500 -Foster Praxair - 59,000 - - Y Y Y Y Y Y Y 90% 90% 5,900 -

Manniso VA Florida Ohio buyer GTSI - 46,125 - - Y Y Y Y Y Y Y 90% 90% 4,613 -

Hommes & Process (Fr) CCAIG - 40,000 - - 100%Marcus State of FL - 22,943 - - Y Y Y Y Y Y Y 90% 80% 4,589 -

Edginton Intermec - 21,893 - - Y Y Y Y Y Y N 75% 75% 5,473 -

Tyre American Express - - 678,000 - Y Y N N Y Y N 40% 40% - 271,200

Wilson Intel - - 310,126 - Y Y N N Y Y N 60% 60% - 186,076

McPartland KPMG - Servers - - 132,600 - Y Y Y N Y Y Y 35% 35% - 46,410

Marcus USG - New project - - 125,000 - y y y y y y N 75% 50% - 62,500

Foster Siemens - - 86,000 - Y Y Y Y Y Y Y 50% 60% - 51,600

Foster Siemens - - 55,000 - Y Y Y Y Y Y Y 50% 60% - 33,000

Boyd La-Z-Boy - - 45,850 - Y Y Y Y Y Y Y 65% 65% - 29,803

Prob AdjustmentsSales Qualifiers

Rep Account

Current Quarter's Forecast



B2B Sales Management 101 -- Other

Accounts Reviews

Recruiting (profile)

Territory Distribution

Compensation Plans

Sales Rep DevelopmentSales Process & methodology



B2B Sales Strategy 101Segmentation = Profits

All Customers Avg. Trans. < $3k Avg. Trans > $3k

SMBs 28 108

VSBs 21 28

Total 185

Cancelled Customers Avg. Trans. < $3k Avg. Trans > $3k

SMBs 3 7

VSBs 11 7

Total 28

Monthly Churn Rate 1 Avg. Trans. < $3k Avg. Trans > $3k

SMBs 2.6 % 1.6 %

VSBs 12.6 % 6.0 %

Total 3.6 %

1

Total churn rate (not shown) is calculated as cancelled customers (all time) divided by total customers (all time). Monthly churnrate is total churn rate divided by average customer lifetime of 4.16 months



B2B Sales Strategy 101Crossing the Chasm…



B2B Sales Strategy 101Model Comparison

TRANSACTIONAL CONSULTATIVE ENTERPRISE

Product or service

characteristics

Well Understood

Readily substitutableStandard items

Differentiated

CustomizableHidden Capabilities

High Strategic and/or cost

importanceLimited substitutability

Key buyer concerns anddecision criteria

Price

Availability risk

Ease of acquisition

Importance of problem

Solution fit

Price-performance tradeoffs

Platform fit

Values fit

Sustainability

Time horizon Event Purchasing stream Strategic plan

Nature of relationship Cost - based

Buyer-seller

Confrontational

Benefits – based

Client-advisor

Cooperative

Trust – based

Business equals

Insider

Both parties changefundamentally

Prerequisites for success Access to decision maker Access to influencers Access to strategy

Nature of sale Doing the deal Problem solving Agenda setting

Boundaries blur- unclearwho is selling and who isbuying

Source: Rethinking the Sales Force



B2B Sales Strategy 101Reason for shift to consultative model

Sales 5

Resource commitmentneeded for consultative selling

Sales 4Sales 3Sales 2Sales 1

$Cost

Source: Rethinking the Sales Force

Sales 5Sales 4Sales 3Sales 2Sales 1

%Return 0



B2B Sales Strategy 101Consultative Model

“Listening and gaining business understanding are more important sellingskills than persuasion; creativity is more important than productknowledge.”

“The only single ‘truth’ that seems to be holding true for all sales forces isthat they have to create value for customers if they are to be successful.Just communicating the value inherent in their products isn’t enough.”

“It’s a risky strategy in a consultative sales to go to a senior-level decision

maker before thoroughly understanding the issues and problems where youcan create value. Most good consultative salespeople will first do theirhomework by working with those influencers in the buying organizationwho have the best knowledge of the problems and opportunities where theselling organization hopes to create value.”

…Quotes from “Rethinking the Sales Force.” Neil Rackham & John DeVincentis



B2B Sales Case Study: Groove Networks

P0: Evaluation P1: Validation P2: Initial Rollout P3: Enterprise Rollout

REVENUE

COST OFSALE



B2B Sales Case Study: Groove Networks

P0: Educate P1: Validate P2: Initial Rollout P3: Enterprise Rollout

SALES ACTIVITIES• IT call(s)• Orientation• LOB/LOB IT calls• Validation

2 Track Pilot Trial:- IT validation- LOB pain project

• Implement seats &gather metrics

• Penetrate new LOBs• Engage enterprise

apps• Horizontal bus

processes

• Groove as standarddesktop DNA

• Integrate w/ Ent Apps• Groove broadly

deployed and usedthroughout valuechain

LOB Pain ID’dIT Champ

Validation Process

Pain ValidatedIT Validated

$100k+

MultiplePain/LobIT Service

Offer’g$500K+MSLSA

$1m/yrEvery desktop

2 months 2-3 months 6 months ongoing



B2B Sales Case Study: Groove NetworksQ1 (P)hase Movement

P1’s

Lowe $46K

ESP $50K

AMEX $40K

Mattel $35K

Intermec $22K

P2’s

HP Mktg $770KOCPA $691K

Siemens $111K

SAIC $142K

Praxair $100K

Novartis $86k

VLH $522K

Army $154K

HP C&I $106K

KPMG $100K

P0’s

SPAWAR $18K

Hitachi $10K

CARE $7K

DuPont $7k

Verizon $6K

ServiceCo $16k



Further Reading

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