b2b product sales 101 for startups : support deck

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  • B2B PRODUCT SALES FOR STARTUPS

    PRESENTATION SUPPORT DECK

    BY @LUCBOILLY

  • B2B PRODUCT SALES FOR STARTUPS

    PRESENTATION SUPPORT DECK

    The aim of this deck is for the presenter to support the presentation of B2B Product Sales for Startups

    So not to be presented as such ! ;), still I made it available to Slideshare for the purpose of sharing

    The presentation was made for Accelerators to educate early stage startups about the different aspect of B2B sales

    Contact me here

    LUC@ROCKSVENTURES.COM @LUCBOILLY LINKEDIN ANGELLIST

    mailto:luc@rocksventures.com?subject=https://twitter.com/LucBoillyhttps://www.linkedin.com/in/lucboilly/https://angel.co/luc-boilly

  • STAGE

    LETS SALE ! :)

    Wait , lets set the stage first !

    GO TO MARKET STRATEGY

    VALUE PROPOSITION

  • STAGE

    GO TO MARKET STRATEGY

    is your product is horizontal or vertical Market?

    What is your market target SOM, SAM, TAM ?

    Which Segments , the first one aka Beachhead ?

    What are your Marketing channels ? (landing, email , social, PR,..)

    Who is your ICPs (Ideal Customer Profile) ?

    What is your revenue target ?

    Which sales channels : Self Service ; Direct : inbound, outbound; Indirect : partners

  • STAGE

    WHATS IN IT FOR ME ?

    This is the answers to your customer

    WIIFM : Whats In It For Me

    JTBD : Jobs To Be Done

    A products value proposition is composed of :

    Functional benefits (solution, utilities providers)

    Self-expressive benefits (act of using)

    Emotional benefits (results of using)

    delivered by your brand that provides value to the target customer

    Then is it a Gain or Save

    http://www.christenseninstitute.org/key-concepts/jobs-to-be-done/

  • VALUE MANAGEMENT

  • VALUE MANAGEMENT

    HOLISTIC VIEW

    Value Management is an approach to align

    Product Management

    Marketing

    Pricing

    Sales

    Other business functions

    Goal is to create a sustainable and profitable revenue growth

  • VALUE MANAGEMENT

    VALUE IN B2B

    Value is relative to an alternative

    Value is composite and decomposable in value drivers

    Primary value in B2B is economic but can be also

    Emotional

    Environmental

    Social

    Value should be quantified per use case adapted to the target

  • VALUE MANAGEMENT

    B2B VALUE SHIFT

    Shift to a Customer Value Orientation

  • VALUE MANAGEMENT

    VALUE FOR THE CUSTOMER

    Competitive advantage

    Time to market

    Increase revenues

    Business Process improvement

    Savings

    Value is always relative to an alternative !

    Competitor

    Current solution (software or/and human process)

    Building in house (software or/and human process)

    Doing nothing

  • VALUE MANAGEMENT

    ECONOMIC VALUE

    Customers now do the Math !

    Understand Customers Math and speak their language

    The Economic Value is seen

    For the Buyer as ROI and TCO

    For the Seller as EVE

    Still keep your communication aligned and simple !

  • VALUE MANAGEMENT

    EVE : ECONOMIC VALUE ESTIMATION

  • VALUE MANAGEMENT

    CREATION OF VALUE DRIVERS

    Direct impact on a customer financial metric or KPI

    [Financial Metric] * [Impact Measure]

    Impact on a non-financial customer metric or KPI

    [Non-Financial Metric] * [Impact Measure] * [Dollars]

    You may add to both, factors as time,..

  • VALUE MANAGEMENT

    FROM THE CUSTOMER VIEW

    It is not always a 1 to 1 translation !

  • VALUE MANAGEMENT

    YOUR VALUE PROPOSITION VS BUYERS

  • PRICING

  • PRICING

    STRATEGIC ROLE OF PRICING

    Pricing is the integration point of your Go-To-Market

    Encapsulate your Value Proposition

    Communicate your Value , your Brand

    Position you to the Customers and Markets

    Position you within your Competition

    Last but not least , make your revenues and investment !

    And Use pricing to scare away the customers you dont want ;)

    Pricing Power !

  • PRICING

    PRICING IS PARAMOUNT !

    Whats your average selling price?

    Intersection of supply and demand which measures external factors

    customer value

    competitiveness

    while it constrains operational metrics like

    Costs

    Volume

    Risk

    Your ASP places a ceiling on your CAC, which in turn draw sales model(s)

  • PRICING

    PRICING SCHEME

    Customer financial view : OPEX vs. CAPEX

    Transactional : License fee plus annual maintenance fees -> CAPEX

    Subscription based as SAAS - > OPEX

    Do not leave money on the table !

    Professional Services, Training, Certification

    Accounts Up Sell , Cross Sell . Partnerships

    Discounts management

    Freemium ? (e.g Box, Dropbox)

  • PRICING

    PRICING

  • PRICING

    MARGINS , PROFITS

    Net sales = Gross sales Discounts, Rebates

    Gross profit = Net sales COGS

    (e.g : 80% in SAAS , 20% in eCommerce)

    Operating Profit = Gross Profit OPEX

    Net profit = Operating Profit taxes interest

    Total and Segment these

  • PRICING

    TIERED PRICING

    STARTER - PRO - ENTERPRISE e.g

    Typical for SAAS

    Revenue advantage over Volume Pricing

    Segmentation , tiers fences

    How many customers you expect to enter at each tier

    How many customers you expect to upsell over what period of time

    How much churn you expect at each level

    Discount for yearly , multi year contracts with payment upfront

    http://www.hubspot.com/pricing/marketing#?currency=EUR

  • PRICING

    DISCOUNTING

    Why do you discount ??

    Investment in a Logo, references

    Contract length

    Competition, Market

    Deal size

    Because..

    Your pricing should take in account discounting upfront

    Make sure that there is a ROI for you

    Align with your Revenue Management

    Draw the red lines per segment, channels

    Do not accept upfront discount asked by a customer, acknowledge and reframe it to your value first

    Beware of not dragging down your overall pricing , get a return in exchange

    Beware of payment terms which should be discussed upfront prior negotiation

  • PRICING

    ADVANCED MODEL

  • B2B SALE

  • B2B SALE

    3 QUESTIONS

    WHY BUY ?

    WHY YOU ?

    WHY NOW ?

  • B2B SALE

    LEVERS IN A B2B SALE

    Timing

    Contract Length

    Deal Size

    Payment Terms

    Expansion

    Referrals

  • B2B SALE

    SALES IS A HUMAN PROCESS

    Beyond methods, metrics, decks

    Your Solution is not my F* Problem!

    First , it is a human relationship

    Be yourself

    Be a problem solver

    Be a partner

  • B2B SALE

    FACTORS OF THE COMPLEXITY OF B2B SALES

    STAKEHOLDERS NUMBERS

    C-level , Executive , Users, IT , Procurement, Legal,.

    INFORMATION GAP

    Educate, Evangelise your product value proposition

    THE PRESENCE OF CHOICES

    You versus Competition, substitutes, in house, doing nothing

    CUSTOMER-SPECIFIC REQUIREMENTS

    Map it to your Product Management still focus first on the value proposition

    LACK OF TRACK RECORD

    Brand building, Trust building , Reach, Testimonials and customers use cases , PR

    RFP : Request For Proposal

  • B2B SALE

    SELF SERVICE

    Low Complexity Low Price

    Sales

    None

    Marketing

    Full revenue responsibility, creating awareness, educational content and automation capable of driving business through the entire purchase process from awareness to close. Inbound

    Technical Support

    Provides automation and tools for easy on-boarding, plus templates and educational content that allow customers to resolve any issues they encounter on their own.

  • B2B SALE

    TRANSACTIONAL MODEL

    Low Complexity , High Price

    Sales

    Inside sales reps supported by online content and automation, tools, training, incentives and metrics that enable high efficiency and many transactions per rep.

    Marketing

    Feeds highly qualified leads to the sales team to build pipeline and improves efficiency by removing roadblocks through educational content and automation that drive complexity out of the purchase.

    Technical Support

    Inside support reps that meet a range of SLAs from limited pre-sale support through premium post-sale support with tools, training and metrics that enable high efficiency and many transactions per rep, complemented by customer self-service tools, templates and educational content

  • B2B SALE

    ENTERPRISE SALES

    High Complexity , High Price

    Sales

    Territory-based sales reps focused on a narrow set of target prospects directly supported by product marketing and sales engineering resources at a deal level.

    Marketing

    High-end marketing that facilitates brand awareness, education, relationship building and trust, complemented by direct support of the sales team, including telemarketing speeding access to target prospects and detailed sales tools such as product roadmaps, ROI calculators, etc.

    Technical Support

    High touch support up to onsite issue resoluti