Copyright Mark Cox and In The Funnel 201404/14/2023

Sales 101 – Breakfast and LearnIVEY Tangerine CentreDecember 5, 2014

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Today’s Objective

Annual Turnover In SalesTo provide you a framework for building your

2015 Sales Plan for your business that will dramatically improve results over 2014.

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Who Said?

Jack Welch – Past chairman and CEO of General Electric between 1981 and 2001. During his tenure at GE, the company's value rose 4000%.When he retired from GE he took a severance payment of $417 million, the largest such payment in history.

“If you don’t have a competitive advantage, don’t compete.”

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Who Said?

Michael Porter – leading authority on competitive strategy and the competitiveness and economic development of nations, states, and regions. Author of 18 books.

“The essence of strategy is choosing what not to do.”

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Who Said?

Peter Drucker – one of most widely influential writers on the subject of management theory and practice.

Predicted many of the major developments of the late twentieth century, including privatization and decentralization; the rise of Japan to economic world power; the decisive importance of marketing; and the emergence of the information society

“The most basic purpose of a business is to create a Customer”

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of B2B Buyers Select a vendor according to the

skills of a salesperson rather than price, quality or

service features.

39%

But Selling Well Matters…

** Extract from “Teaching Sales” Harvard Business Review July / Aug 2012 – Suzanne Fogel and David Hoffmeister

**Since 1988, Chally Group analyzed data from 100,000 decision makers and found:

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How are We as a Profession Performing?

Poorly…

Sales People miss quota (minimum expectation)48%

Annual Turnover In Sales 28%

Extract from “The Twelve Sales Metrics that Matter Most” by Steve. W. Martin Dec.9, 2013

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How has Sales lagged behind it’s peers?

A Profession has Management Rigor and Discipline

Concept from “Cracking the Sales Management Code” 2012 – Jason Jordan with Michelle Vazzana

Finance / AccountingGAAP / P&L / Balance Sheet / Statement of Cash Flows

Manufacting ISO / TQM

Marketing TAM – Customer Segmentation

ProfessionStandard Operational Guidelines

/ Common KPI’s

Sales ???

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Why do We Need a Sales Playbook?

Sales People miss quota (minimum expectation)

Annual Turnover In Sales

Revenue Growth depends on Sales Excellence39% of B2B decisions favour company who sold better

Sales Excellence depends on Strategy , Process, Management Rigor and Discipline

Planning / Inspection / Coaching

The place to start is with a Sales Plan (Sales Playbook)

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The Sales Playbook“You have to learn the rules of the game. And then you have to play better than anyone else”…..Albert Einstein

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Sales Playbook — The First 3 Questions

Break the target downQuarter / Month / Product / Sales Rep

Product / Market Focus

Your Go to Market Plan

Annual Sales Objective

Sales Strategy

Plan of Execution

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Sales Strategy — Product Market Focus

TBD TBD

TBD TBD

New

Existing

Existing New

Product / ServiceM

arke

t / C

usto

mer

s

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Sales Execution — Go to Market Plan

• Email Blasts• Webinars• Partners• Cold / Warm Calls

• Who are we selling to?• Segment by :–Geography– Industry–Offering• Prioritize

• What problems are we solving for the Customer?

• Why are we the best option to solve them?

• Conferences• Speaking / Journal

engagements• Social Media• Industry Reports

• Sales Team Structure• Sales Process

Value Proposition Target Market Awareness Demand Generation Sales Execution

How do we convert a capability into revenue?

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Value Proposition

How does it contribute to our Customer’s desired business outcome?

How do we differentiate vs. competition?

What is our capability?

ValueProposition

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Value Proposition — Positioning

How do we clearly ariticulate the value we provide our Customers?

How do we do it? (Capability)Elevator Pitch

We can:

Increase Your Revenue

Reduce Your Cost

Reduce Risk

What Corporate role within our Customer’s organization should care?

Head of Product / Business

Head of Operations

Head of Risk Managerment

Head of IT (??)

Reduce call centre handling time

Etc.

Etc.

What FACTS support this claim?

Existing Customer Results3rd party Validation

Product

Service

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Target Market

AnnualRevenueTarget

Insurance Companies

CompetitorCustomers

Mining

Wealth Management

Existing Customers

Banks

Distribute target market amongst sales team

Which companies are we going to sell to and in what priority?

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Awareness Campaigns

Consistent with Value Proposition messaging

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The Sales Process

Generate OpportunityQualify

OpportunityDevelop Value

PropositionPresent Proposal Secure Agreement

• To identify a new business opportunity for ABC Company

OB

JEC

TIV

ES

ALE

S A

CTI

VIT

IES

TOO

LS

• ID possible demand from Suspect company

• Complete Profile on Suspect prior to Approach Call

• Prepare POV on how ABC Company could help

• Book meeting with Suspect

• ABC Company Target List• Account Profile Template• ABC Company CRM system

(TBD)

• To understand Suspect’s• Business Problem• Business Case• Budget• Decision Process• Competitors

• Conduct approach call(s) with Suspect

• Define Suspect’s business needs and pain points

• Complete Demo if required• Understand budget and

Suspect’s decision process

• Call Planning Tool• Qualification Checklist• ABC Company presentation

/ demo

• To develop a solution and/or value proposition that is compelling for the Prospect

• Define deal structure• Align value proposition

specific to Prospect buying influencers

• Triangulate Prospect’s decision / buying process and timeframe

• Define competitive differentiator for our company

• To present a proposal that is compelling to the Prospect

• Agree and full understanding that Prospect requirements have been gathered to proceed with cost estimation and proposal

• Estimate work effort and define what / how / who / when

• Internally approve all deal economics Ensure a high quality, professional proposal

• Proposal template

• To sign win/win agreement with Prospect (who now becomes a Customer)

• Receive verbal agreement from Customer

• Deliver DRAFT 1 Agreement• Resolve open points of

negotiation• Leverage executive team for

final close plan• “Close the deal” drive the

decision

• Customer Agreement template

What specifically do we do once someone shows interest?

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The Sales Funnel

What sales activites are required to sell X average deals and drive Y revenue?

The Sales Cycle

Approach Calls – XX

Qualified / Demo – XX

Proposals – XX

Signed Deals – X

30%

75%

50%

Target List

Existing Customers

Current Accounts

This MATH will drive weekly monthly activity objectives for the Sales Team

(i.e.,) target 10 new approach calls per month to get 3 proposals and sign 1 new deal

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The Sales Process — Average Deal

• TCV =Total Contract Value = Implementation + Monthly License Fee (x term)

• Average Deal = $ x,000 TCV

• Implementation - $ x,000

• License $ x,000 per month x 36 months = $ x,000

Deal Size Implementation MonthlyLicense Fee TCV

Small $ x,000 $ x,000 $ x,000

Medium $ x,000 $ x,000 $ x,000

Large $ x,000 $ x,000 $ x,000

What is our average deal size?

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Sales Team Structure

Inbound Leads:

Sales Development(Qualifiers)

Outbound Reps

Market Response Reps

SalesQualified

Opportunities

Account Executives

(Closers)

NewCustomers Account

Managers (Farmers)

SEOContentReferrals

Direct

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Sales Culture

Process / Tools / Discipline / Management Cadence

Customer FirstDo What Is Right For The Customer

IntegrityCommitmentAccountabilityDrive for Results

What We Believe Will Make A Sales Organization Successful

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Management CadenceThat which can be measured can be maximized

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Sales Management

Quarterly Territory Review

• Sales leaders forecasting – budget or better• Review Sales Executive Specific Plan for their territory• Strategy and Action Plan with metrics

Weekly Sales Meeting

• Sales Executive forecasting review (budget or better)• Deal inspection• Weekly priorities• Funnel to be circulated to participants 24 hours in advance of meeting

Weekly BIG DEAL review

• Deep dive on Key Deal(s):– Win Strategy / competitors / strengths – weaknesses– Buying Influences / win scenarios– Next Steps – (action plan / owners / timing)

Win / Loss Reviews• What happened and why?• Voice of the Customer – what specifically did they tell us?• Lessons Learned — (i) Stop (ii) Start (iii) Continue Framework

What is the Management Process to measure progress?

Weekly 1 v 1’s with Sales Team

• Coaching cadence (vs.) Sales Meeting inspection– Feedback– Support– Manage and Motivate

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Wrap Up – Next Steps

Create you Sales Playbook

Segment by Customer and Product

Value Prop – add proof points the Magic Triangle

Sales Process – Customize (use what has worked in past)

Structure the Sales Team

Establish and communicate the Sales Culture

Book the weekly Sales Management Cadence

Remember – Activity breeds results in Sales!!

Quarterly – assess and re-calibrate as needed