selling business to business - enterpreneurship program

Selling Business to Business

Creating Value for BuyersThe Changing face of Sales23rd March, 2006 – Peter Lawless

Experience Sales Success•Sales Management•Lead Generation•CRM Process

What Constitutes a Successful Company?

Producing an excellent product or service.

Selling and Supporting what they produce.

Having Great, Motivated PeopleExperience Sales Success

•Sales Management•Lead Generation•CRM Process

Entrepreneurs Take Risks

Easy ways to have more Money!

Get a raise.

Win it.

Inherit it.

Sell more!

What to do when it gets tough? Problems are

challenges

Challenges are opportunities

Opportunities reward those who take action!

What does Success mean to YOU

What will you OWN?

What will you DO?

Who will you Share it with?

What happens if you Don’t?

No big deal You didn’t want that

house! You’re glad your

spouse left you! Who wants an Aston

Martin anyway And besides, you

hate the Caribbean!

???

Set Personal Goals Understand why you

MUST achieve your Goal

Commit to MASSIVE action

Determine a course of Action – A PLAN

Monitor and Adjust Plan continuously

But, why bother with Goals? Setting a Goal and

taking massive action, is more important than achieving your goal

Setting the Goal helps us achieve focus on what is important.

Consistency of Purpose is key!

7 Forms of Intelligence

Mathematical Linguistic Artistic Musical Sporting Social/Emotional Self-Awareness

The 5 Key Success Factors

Increasing Leads Converting Leads to Sales Lifetime Customer Value (annualised) Operating Costs (Margin) Reinvesting Profit to foster innovation

Experience Sales Success


Lead Generation (Prospecting)

Commonly known as Marketing A lead can be defined as follows;

A person or company that has expressed an interest in you or your product

This could be either as a result of: You contacting them - outbound Or them contacting you - inbound



Converting Leads to Sales

What problem or desire does the product address?

What does addressing that issue enable the purchaser to do?

Can the buyer assign a value to that new capability?

When ideally do they need this by? What is the cost of doing nothing?



Increasing Lifetime Value



Excellent Service & Support CRM processes

Customer Relationship Management Multiple transactions – Cross sell Similar experience across Channels Easy for customers to buy

Brand Recognition & Value Customer Loyalty

Increasing margin (reduce costs)

Margin = Selling Price – Cost 2 ways to increase Margin

Increase Selling Price Reduce Cost of Production and Sales

Costs consist of two variables Fixed – constant regardless of production

volume Variable - relating to volume and sales



Protect Profit and Increase Wealth

Financial Maintain cash flow at optimum cost Reinvest Profits – Strategic Planning

R&D – Innovation and diversification Increase production and sales capacity

Legal Protect Intellectual Property Mitigate against contrary Conditions

HR People are your most vital asset



Influencing the Success Factors

A 10% increase in any one factor would yield

€1,000 more profit.

Do Companies Capitalise on this?

Which factors Should You influence?



Influencing the Wealth Factors New Business can implement strategic

plans for continuous monitoring and improvement of all 5 wealth factors

Existing business should choose at least 2 to start with and work up to having a plan for all 5 Key challenges are to change existing cultures Increasing sales alone is not always the answer –

especially if each sale loses money!Experience Sales Success


We will now focus on just 2?

Marketing - Providing a constant flow of quality leads.

Sales – Converting the leads into customers, in the shortest time, with a maximum lifetime value.



Lead Generation - ADSPORT



Lead Generation'sSecret Seven(ADSPORT)

Advertising

Direct Mail

Speaking

Publishing

Online

Referral

Telephone

Tactic 1 - Advertising

Classic Advertising Print, TV, and Radio

New Wave Google, Viral, Banner

Innovative Luas Tickets, Space Shuttle, Taxi

All Advertising MUST have a “Call-to-Action”



Tactic 2 – Direct Marketing

Hard Copy Letter, Flyers, postcards, newsletters

Electronic eZines, Fax, Text, Newsreader

Innovative Creative way of delivering targeted

message to decision makerExperience Sales Success


Tactic 3 – Speaking

Company Run Seminars Audio Tapes/CDs Training Media Interviews (TV, radio) Guest Speaker Excellent 1 to Many medium



Tactic 4 – Publishing

Media Interviews in Print Web Articles Press Releases White Papers eBooks Books

“let me introduce you to the guy who wrote the book”!



Tactic 5 – Online

Web Presence Marketing and Sales Tool What should it achieve?

Sign up for newsletter Avail of Consultation Buy Product Inform your prospects

Can it be seen SEO, Page ranking, Blogs, etc



Tactic 6 – Referrals

The Ultimate Lead Generation Tool

Commonly known as “Word of Mouth”

Have a Strategy Always ask Make it easy Reward Referrers



Tactic 7 – Telephone

Outbound Cold calling (never) Telemarketing agency

Inbound Scripts Interactive Call to Action Don’t Sell – set appointment



We will now focus on just 2?

Marketing - Providing a constant flow of quality leads.

Sales – Converting the leads into customers, in the shortest time, with a maximum lifetime value.






Identifying – 10%

Valuing – 25%Qualifying – 50%Negotiating – 75%

Implementing / Supporting

Lead Generation

A good sales process ensures best sales practices get repeated

Sellers sell forward!

Close date key in all sales pipelines.

Close Date = Contract Signature.

After the close - someone else delivers!

Do you have a special pen for contract signatures?

Buyers Buy Backwards!

When do I get Ownership?

How do I get there?

Is the roadmap to value clearly defined?

What will this purchase enable me to do & When?

The Contract = Partnership!

Focus on when the customer gets value!

The contract is just one step in a joint journey!

A Foundation for Trust.

It is 5 times easier to sell to existing customers?

You lift me up, and I’ll bring it over

Definition of the 3Rs

Solution Payback is expressed in terms of at least one of the following: Revenue Growth

Reduction in costs

Regulatory Requirements




What problem or desire does the product address?

What does addressing that issue enable the purchaser to do?

Can the buyer assign a value to that new capability?

When ideally do they need this by? What is the cost of doing nothing?



Sales Cycle 1 – Identifying – 10%

Solution payback mapped to 3Rs

Champion Identified

Timeline to Purchase agreed



Sales Cycle 2 – Valuing – 25%

Champion Visualizes 3R payback with timescale

Agreement to meet Decision Maker/s

3R Stakeholders Identified



Sales Cycle 3 – Qualifying – 50%

Decision maker confirms 3R payback

Evaluation criteria and plan agreed

Method of Finance agreed



Sales Cycle 4 – Negotiating – 75%

Evaluation criteria met or exceeded

Verbal agreement from DM

Contracts with Legal and Purchasing






Manual Pipeline analysis Enter appropriate number (1,2,3,4) when action done for each customer© 3R Consulting Ltd 1 1 1 2 2 2 3 3 3 4 4 4 5

Customer Next Action Revenue %age Yield Close Pro

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Sample 1 buying xyz product €100,000 50% €50,000 30/06/2004 yes 1 1 1 2 2 2 3 3 3 4Sample 2 blah €20,000 25% €5,000 30/06/2004 yes 1 1 1 2 2 2 3 3Sample 3 blah €12,000 10% €1,200 30/06/2004 yes 1 1 1 2 2Sample 4 blah €25,000 75% €18,750 30/06/2004 yes 1 1 1 2 2 2 3 3 3 4 4 4Sample 5 blah €120,000 0% €0 30/06/2004 yes 1 1Sample 6 blah €12,000 10% €1,200 30/06/2004 yes 1 1 1 2Sample 7 blah €111,000 50% €55,500 30/06/2004 yes 1 1 1 2 2 2 3 3 3 4 4

0% €00% €00% €00% €00% €00% €00% €00% €00% €00% €00% €00% €00% €00% €00% €0

Totals €400,000 €131,650

3R Definition:

Solution Payback Could be expressed in terms of:

Revenue Growth

Reduction in costs

Regulatory Requirements

The 3 Parts of a Sales Call Opening

Ask Power Questions

Conclusion 15 minutes from the

end

Opening the meeting Smile, as though

you really mean it!

Thank them for their time

Ask them how long they Have

Power Questions So what made you

want to see me?

What [offer related] issues are you having right now

Listen to the answers (don’t be planning your next question!)

Closing the Call Summarise all the

issues they have

Agree a value on solving their issues

Confirm the decision process

Agree an action plan

Set the date of the next meeting

Always start at the top Power flows down

from the top

Swimming up the Waterfall is difficult

People generally want to Please their Boss

Success at Persuasion Ask;

The right Person AT the right Time The right Questions

Listen, then have; The right Answers IN the right Way With The right

Evidence

At all times have a great Attitude

Planned Networking The more people you

meet, the more people who can buy or recommend your offering

Attend 4 events per month

Meet 3 people at each

That’s 144 new contacts

What Meetings to attend Where do your

prospects hang out?

Where do your influencers go?

What events do your partners frequent?

You CAN do anything The Harder you

prepare the luckier you seem to get Doug Collins,

Chicago Bulls Coach, about Michael Jordan

“You become What you Think About”

Buddah – Circa 500BC

Start your Success Plan Today Write down your

goals

Create your powerful questions

Plan your Networking Schedule

Maintain Momentum

www.3r.ie

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Experience Sales Success•Sales Management•Lead Generation•CRM Process

selling business to business - enterpreneurship program

Business

sales costs

sales capacity legal

changing face of sales

lead generation prospecting

key success factors

similar experience

margin increase

wealth factors new business