5 Critical steps for selling Managed Services + Bonus -

‘What to sell them’

@freshmindset1@transmentum

Agenda

• Capex Vs Opex• Value Proposition• Decision Making Unit• Process + Managing Sales people• People on the bus

• What to sell them

Introducing Transmentum

• Who are we? – A group of experienced senior managers with proven track records for

facilitating rapid growth in profit, turnover & people. All of our team are accredited high growth specialists.

Paul FilemanStrategy

Marketing &Demand Generation

Adam HarrisFacilitator

Entrepreneurial Coach

Steve PottsSales StrategyManagement &

Execution

Paul Smith GTI Coach

Jim WigginHigh Growth Coach

Andrew BaileyGA/GTI Coach

Dr John CollinsGA/GTI Coach

Martin King-TurnerGA/GTI Coach

Ian SkidmoreInterim manager

Mike Butler IT Recruitment Specialist

Tony BrookesManagement Training

Introducing some of our team

Pam JohnsonInterim Manager Tim Anderson

GA/GTI Coach

Our Mission

To facilitate the development, growth andempowerment of European Technology and ICT

businesses such that their business revenues, profits and skills continually increase.

Our Values

• Professional in everything we do• Friendly and Honest• Specialist and Focussed• Committed to delivering value• Respect

MINDSET

• LEARN and or RE-LEARN

• What we know that we know• What we know that we don’t know• What we don’t know what we don’t know!

What is the purpose of a business?

“The ONLY purpose of a business is to attract, maximise and retain customers.

Everything which contributes to this is an investment.

Anything which doesn’t is a cost!”Royston Guest

“Are your sales team an investment or a cost?”

The Importance of Vision Mission and Values

• Vision – where you are going

• Mission – what you do to get there

• Values – how you do it

Further reading on this subject can be found here http://www.members.transmentum.com

Change and causes

• Recent global recession • Reduction in available

CAPEX move to OPEX• New technology

(Managed Services)• Fall in the cost of

bandwidth

Which means

• Today Financial Directors make the decisions

• IT directors and IT managers position may be under threat

• Your sales team may be talking to the wrong people

SO, WHO MAKES THE DECISIONS AROUND HERE THEN ?

Who are the decision making unit?

InfluencerUsersPayer

The “person” with the Means Authority & Need (M.A.N.)

Choosers Authoriser

Identifying target markets

• Geography/Sector B2B or B2C• Most likely to buy • May have bought from you before• Case studies and references• Specialist products/services

and/or expertise

Value Proposition

ChallengeProblemPain

I need to buy thousands of pencils for use in my university.The ones we bought last term often broke and needed sharpening. The exams start next week.

Value Proposition

Value Proposition

PerceivedValue

PerceivedCost

Further reading on this subject can be found here http://www.members.transmentum.com

Identifying routes to market

• Directly employed sales team• Distributors/resellers• Sales agents• On-line• Referrals programme• Retail presence on the high street• A combination of the above

Supplier strategy

Its no longer about beating your suppliers up for the best price

You are looking for a “partnership” that will endure for years to come!

Understanding what selling is all about

Solution selling is different

• Beware of unmet need – do they know that there is a solution to their pain?

• Agree the solution with the prospect

• Always agree the next step at every stage

Five Critical Steps

1. Establish credibility – Provide evidence2. Qualification – Identify their needs & motivations3. Present a solution – demonstrate the value of your

solution and why it is different from alternatives4. Present the price – Confirm clearly & confidently that

you can meet their needs5. Sign the contract – Confirm that they understand

what they have bought and collect the cash

Delivering WOWs

Product

Expected

WOW

HotelRoom

Bed

BathShower

Minibar

Towels

Bar

Restaurant

WiFi

Kettle

TV

PersonalParking

FreeInternet

Chocolates

ConciergeService

SpaSessions

OvernightCarwash

PillowChoice

FreeUmbrella

A COMPELLING EVENT HAS A TIME COMPONENT AND FORCES A CHANGE OF BEHAVIOUR

Compelling events

• ALWAYS HAVE THESE THREE COMPONANTS• Time, Cost, Quality

– And sometimes these days • Compliance

DMU

Qualification

BudgetMAN

What is the compelling event and when is the next step?

Need

Who are the competition and can they do it?

Managing Sales Teams

Achieving Outstanding Sales Performance

The Dating and Marriage Analogy

• “Commodity” type sales (Dating)– Simple– Short sale cycle– Compelling event driven– ROI easy to demonstrate– Within budget expectations– Limit to long term commitment

The Dating and Marriage Analogy

• “Managed Service” sales (Marriage proposals)– More Complex– Longer sales cycle– Need creation required– ROI demonstrated through consultative selling– Longer term commitment based on trusted

relationship

ProfessionalSales Team Behaviour

You cannot educate the market

• They don’t care• They don’t have time• They don’t want to

know• They won’t understandAnd that’s why they invited you in to see them

What is a Closing Ratio

A closing ratio is defined as the number of completed sales that a

person makes in relation to the number of sales presentations that he or she

makes to a QUALIFIED prospect.

What closing ratios should I expect?

• Business Owner 1 in 2• Sales Manager/Major accounts 1 in 2• Account manager (Farmer) 1 in 3• New Business (Hunter) 1 in 4-5• New starter (first couple of months) 1 in 7

SIMPLES

Pipeline Value

Closing Ratio

= this months business results

Hunters

Focus on the acquisition of new clients

Farmers

Focus on retaining clients and winning incremental business

STOP Don't expect one sales person to be both

So how do I recruit the right sales people?

• Write a clearly defined job description for hunters and farmers

• Have a clearly defined set of values and build them into your recruitment process

• Develop incentive schemes that encourage the behaviour you require

Sales People

• Know your numbers– Selling is a numbers game more than any other business discipline

• Do your team communicate• Planning and organisation

– Successful sales people are highly organised and pro-active• Attitude

– The most important thing anyone can give you is their time so respect it• Listening

– Successful people use their ears more than their mouth– Losers tell people what they want

• Successful sales people take the time to establish their own credibility and that of the company– Losers dive straight in and talk about products

Remember verbal orders areNOT worth the paper they are written on

People – You need to Lead, Let Others Manage

• You alone are responsible for Culture

• Ensure the Coaching is continual

• Be visible– Communicate

“As we look ahead into the next century, leaders will be those who empower others.”

Bill Gates

How Engaged Are Your People?

10% increase in engagement = 1% increase in customer satisfaction

Rational Commitment Discretionary Effort Performance Emotional Commitment

Intent to Stay Loyalty

Gallup Employee Engagement Index Survey - repeated every 2 years since 2001 - 27m employees in GB

Measure Engagement – 12 Q’s

ENGAGED“Loyal, productive, find work satisfying”

NOT ENGAGED“Not psychologically committed to their role,may leave if the opportunity presents itself”

ACTIVELY DISENGAGED“Disenchanted, vocal or militant in showingtheir negative attitude towards work”

19%

61%

20%

The 12 Questions1. Do I know what is expected of me at work?2. Do I have the materials and equipment I need to do my work right?3. At work, do I have the opportunity to do what I do best everyday?4. In the last seven days, have I received recognition or praise for doing good work?5. Does my manager or someone at work seem to care about me as a person?6. Is there someone at work who encourages my development?7. At work, do my opinions seem to count?8. Does the mission/purpose of my company make me feel my job is important?9. Are my co-workers committed to doing quality work?10. Do I have a good friend at work?11. In the last six months, has someone at work talked to me about my progress?12. This last year, have I had the opportunity at work to learn and grow?

Get the Right Peopleon the Bus

• Hire for attitude, train for skills

• Are your hiring managers trained in interviewing techniques?

• Ensure there is a robust appraisal processes

And the Wrong OnesOff the Bus

“My main job was developing talent. I was a gardener providing water and other nourishment. Of course, I had to pull out some weeds, too“

Jack Welch

What to Sell Them

• TOLD• UNTOLD• UNSOLD• SOLD

• List of Features Check List

Thank You

• BONUS

• 8 Top Tips for IT Companies – please give me your Business card or send me an E-mail and I will send through