b2b sales management strategy
TRANSCRIPT
© Copyright Martin Korsin 2009
Sales and Marketing Management StrategySales and Marketing Management Strategy
© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy
Guiding Principles
Disciplined pipeline management
Methodical client base growth
Balanced compensation model
Consistent account management
Defined and measured sales process
Efficient use of Subject Matter Experts
Unified multi-channel marketing and messaging strategy
Scalable profitable growth model
© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy
Disciplined pipeline management….
Does the client have this need and budget?
Do we have a relationship?
Do we have thought leadership
Do we understand the buying process?
Has this client bought this from us before?
Will they again?
Do we have a coach?
Do we know the economic, administrative, technical, user and executive buyer?
Is there a burning platform?
Do we know and understand the real problem we are solving?
For each role have we completed the question ladder?
For each role have we completed the complex solution process?
Do we know the price points?
Have we answered the mail?
Have we delivered value to the stakeholders?
Have we understood the competition?
Have we met the price points?
Has everybody said yes?
Have we eliminated competition?
Have we closed all contractual issues?
Is the contract signed?
Did work Start?
Qualified
Client
5%
Qualified
Deal
10%
Qualified
Process
25%
Qualified
Response
50%
Qualified
Sale
75%
Qualified
Revenue
100%
Revenue Visibility
• Pipeline Control Points.
• Deal does not advance until all qualifiers are satisfied
• Sales methodology is built into revenue reporting and forecasting
• probability an expression of the number of deal we are like to close going forward from this point in the pipeline (NOT a revenue forecast)
• Revenue visibility only at qualified response
Conversion and Pipeline Progression Strategy
© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy
….while methodically growing the client base…
Existing
Customers
New
Customers
Same market
More existing solutions
New solutions
Existing solutions
New Customers
New MarketsExisting solutions
• Sell more of the same to existing clients
• Sell new stuff to existing clients
• Sell the same stuff to like clients
• Sell like stuff to different clients
© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy
….using a balanced compensation model…
Compensation Model Constants
Average Signing Value 1,250,000$
Average Signing Duration (yrs) 3
Average Gross Margin 40%
Expected Income at quota 250,000$
Expected Fixed Income of total comp 50%
Total Number of Deals per annum 6
Total Signing Value 7,500,000.00$
Signing Commission 0.50%
Revenue Commission 1.00%
Profit Commission 3.00%
Fixed Compensation (100K Base) 125,000.00$
Fixed Compensation
Signings
Revenue
Profit
Year Year 1 Year 2 Year 3 Year 4
Signing $7,500,000.00 $7,500,000.00 $7,500,000.00 $7,500,000.00
Revenue $1,250,000.00 2,500,000.00$ 2,500,000.00$ 1,250,000.00$
Revenue $1,250,000.00 2,500,000.00$ 2,500,000.00$
Revenue $1,250,000.00 2,500,000.00$
Revenue $1,250,000.00
Total Annual Revenue $1,250,000.00 $3,750,000.00 $6,250,000.00 $7,500,000.00
Income
Fixed Compensation $ 125,000.00 $ 125,000.00 $ 125,000.00 $ 125,000.00
Signing Commission $ 37,500.00 $ 37,500.00 $ 37,500.00 $ 37,500.00
Revenue Commission $ 12,500.00 $ 37,500.00 $ 62,500.00 $ 75,000.00
Profit Comission $ 10,000.00 $ 30,000.00 $ 50,000.00 $ 60,000.00
Total Earnings $ 185,000.00 $ 230,000.00 $ 275,000.00 $ 297,500.00
% of Revenues 15% 6% 4% 4%
This does not take into account commission sunsetting.
Typically you would sunset or reduce revenue and profit commission after no more than 2 years
The first year of a sales person is nearly always an investment
Total variable compensation paid as a % of signings quota achievement, quarterly
Typically compensation will be weighted toward business objectives for profitability, new business growth or revenue maintenanceVariable Compensation
© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy
…with systematic account management,…
� 1-5 primary accounts
– supporting 90-120% of quota
– support 3-5 years of signing attainment
– detailed account plans
� 3 -20 secondary accounts
– supporting 30-50% of quota
– support 1-3 years of signing
– primary account prospect
– high level account plans
� 20-100 leads in new accounts
– 10-20% of quota
– primary account suspect
– hand-off for development
� Account assignment, lead assignment strictly sales management function
Account
Exec
Leads
Secondary
Primary
Accounts
Accounts
© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy
… a defined and managed sales process,…
� Centralized, automated, integrated management
– Pre Sales Support
• Resource allocation for meetings, RFPs, contract review, solution development
• Tracking in-flight sales support activities and costs• Resource Allocation
– Pipeline and Forecasting
• Pipeline progression and conversion ratio management• Deal Progression, revenue forecasting by month• Critical deal monitoring• Quota management• Revenue Reporting
– Mobility
• Integration of critical sales data into mobile devices
– Sales Assets
• Presentations, references, case studies, RFP responses, Statements of Work, Contracts
– CRM
• Activity, contact, relationship, account, calendar opportunity, pipeline tracking and management
– Leads and Campaigns
• Lead progression management from entry through disposition/ conversion
• Lead source management• Email campaigns, shows, client visits
– Financials
• Integration with financial systems• Invoices and revenue tracking for closed deals• Consistent sales and finance revenue recognition across
customers, markets and segments
– Delivery
• Signed Contracts• Status Reports• Contract Profitability Tracking• Client Project Participants• Project Plans
– Proposal Generation
• Scheduling• Document Management
CRM
Pre-Sales
Support
Pipeline and
ForecastingMobility
Financials DeliveryProposal
Generation
Leads
CampaignsSales Assets
Sales, Pre-Sales Support, Operations, Accounting, Delivery, Service and Executive Management share a common view of customers, pipeline and revenue
Maximum visibility to all about customer interactions
All sales assets need to be in one place, under one version control system.
Effective CRM is central to efficient and effective management of growth
© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy
…and efficient use of Subject Matter Experts…
Sales Sales Support
MeetingsSolution DevelopmentProposal DevelopmentMarketing SupportThought LeadershipRequests Support` Delivery
Organization
Allocated, qualified resources
CRM
Account ExecsAccount
ExecsAccount ExecsAccount
ExecsAccount Execs
TechnicalGeneralists
ProposalWriter
TechnicalGeneralists
ProposalWriter
Admin
Delivery Organization
SolutionDevelopment
ArchitectsArchitects
ArchitectsArchitects
Delivery Management
ProjectManagersProject
ManagersProjectManagersProject
Managers
Sales Support
Sales Organization
Admin
Sales Management
High Level Process Model
High Level Organizational Model
MeetingsSolution DevelopmentProposal DevelopmentMarketing SupportThought Leadership
Sales Asset GenerationSales Asset
Generation
© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy
…reinforced by unified multi-channel messaging and marketing
W
O
W
E
D
+
SHOWS
+
PR
+
Partners
Webinars
On-Line
Web Site
Demos
Thought
Leadership
Lead
Generation
Brand
Promotion
Community
Value
Customer
Acquisition
Acceptance
Loyalty
© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy
…supports a scalable, profitable growth model
� Customers who can support quota
� Salespeople who can meet quota
� Process to manage quota
� Producers who can deliver quota
VP
Sales
Account
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
Exec
Stage 1
VP Sales
Director
Sales
Account
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
Exec
Stage 2
Director
Sales
Account
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
Exec
Director
Sales
Account
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
Exec
Director
Sales
Account
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
Exec
VP Sales
Account
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
Exec
Account
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
Exec
Account
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
Exec
Account
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
Exec
Account
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
Exec
Account
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
Exec
Account
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
ExecAccount
Exec
Director
Sales
Director
MarketingDirector
Marketing
Marketing
ResourceMarketing
ResourceMarketing
Resource
Marketing
Resource
Stage 2
Signings = $40-60MM Signings = $100-120MM Signings = 160-180MM
© Copyright Martin Korsin 2009
Sales TrainingSales Training
Some elements of a larger scale training program
© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy
Agenda
� Understanding the Buying Process
� Complex Solution Sale Grid
� The Question Ladder
� The Power of the Group
� Winning RFPs
� Complex Solution Sales
� Questions
� Objections
� The Sales Detective
� Negotiation
� Sales Excellence
© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy
Understand the Buying Process
– Phase 1 - Discovery
• Do you see the pain• Do they see pain• Do they have the budget• Do they trust you
– Phase 2 –Selling a solution
• Diagnosis Confirmed• Impact Confirmed• Assessment Confirmed
– Pre-proposal review crafted– Pre-proposal review presented– Pre-proposal review digested
• Proposal Presented
– Phase 3 – Closing a complex sale
• Technical buyer accepts• Economic buyer accepts• Executive buyer accepts• Competition eliminated• Contract Agreed• Contract Signed• Work Started
� Roles – Professional/Personal
– Executive Buyer
• Budget Maker
– Economic Buyer
• Budget Holder
– Technical Buyer
• Evaluator
– Coach
• Non-buying stakeholder
– Administrative Buyer
• Enabler
– Power Players
• Users• Executive• Friends and Mentors
� Document the buying process
– At every stage, for every buyer
• where were you• where are you• where will you be
� The role of RFPs in the buying process
� The role of sourcing/purchasing
© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy
Complex Solution Sale Summary
9 So…6….So…3….So…Confirm
8…What if5…What else
2…Is it because
Control
7…How About
4…Who else1…Tell meOpen
VisualizeAssessDiagnoseProfessional/
Personal
9 So…6….So…3….So…Confirm
8…What if5…What else
2…Is it because
Control
7…How About
4…Who else1…Tell meOpen
VisualizeAssessDiagnoseProfessional/
Personal
9 So…6….So…3….So…Confirm
8…What if5…What else
2…Is it because
Control
7…How About
4…Who else1…Tell meOpen
VisualizeAssessDiagnoseProfessional/
Personal
9 So…6….So…3….So…Confirm
8…What if5…What else
2…Is it because
Control
7…How About
4…Who else1…Tell meOpen
VisualizeAssessDiagnoseProfessional/
Personal
� Personal/Professional
– Executive
– Economic
– Administrative
– Technical
– User
� Influencers
– Coach
– Peers
– Subordinates
– Bosses
� Competitive Threat
� Action Plans
© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy
The Question Ladder
� Your Company Overview
– Why do you exist?
• Value of your service to your clients• Value of your service relative to your competition
� Current state and process walkthrough
– What do you do?
• Sources• Inputs• Information and Process Flows• MIS and Resource assets used in adding value and
transformations• Outputs• Digital formats, end users• Currently planned technology and process
expansions
� Desired state
– What do you want?
• Added value• Transformation
� Business Benefits
– Why do you want it?
• Improved quality, cost, velocity and flexibility• New products, and markets• Improved competitiveness• Improved personal position
� Current limitations
– Why don’t you have it?
• Technology assets• Process limitations• Human and physical resources (people and space)• Training/Knowledge
� Blue Sky
– What could you have?
• Your competition• Best practice• What we have done elsewhere• Your clients future needs
� Current Business Model
– What can you afford?
• Current operational spend• Current planned investment• Current profit• Planned profit attributable to planned spend
� Change Road Map
– How can we help?
• Process• Technology • Resources• Measurement
� Next Steps
– Do you believe?
© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy
Power of the Group
� Building a common vision
� Highlighting internal communications deficiencies
� Adding value as a partner
� Surfacing objections, divisions, competitive threats
� Identifying powerbases
� Accelerating sales cycles
© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy
Winning RFPs
� Sell high
� Create the RFP
� Include yourself in the process
� Change the rules, add value
� Create buying pressure
– Selling to non-buyers
• Executive management
• Stakeholder management
• Users
• Beneficiaries
• NOT just the buying roles
– Selling to influence
• Achievement + recognition = Value
• Sell to those who have value to those who buy
� You can’t make friends when you need them
– Build relationships when you are between sales not during them
© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy
Objections
� Objections are your friends
– Surface them, don’t hide them
� What else, what else, what else…..
� Conditions, objections, stalls
© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy
The Sales Detective
� Businesses
– Have cost, quality, performance, competitive pressures
– Your buying roles are impacted by them
– Understand the pressure - you understand the buyer
� Buyers have
– Subordinates, bosses, peers – even if they are not visible they play roles
� Value + Recognition = Power
� Business and technology processes have
– Logical precedents and antecedents
– Current state assessment generates questions about precedents and antecedents
� Inferences generate questions that
– seem (and often are) targeted, insightful and relevant
– gain buyer respect
© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy
Negotiation – Basic Points
� Prepare
– Time and patience win
– Time and effort is power
� Shut-up
– They speak, you listen
� Increment
– Small reductions in price
– Small increases in scope
� Aim high
– Those who ask get
� Change rules
– All rules are arbitrary
– Expand scope
– Buyers set buying processes
– Sellers can change selling
– “Our process” has the same validity as “their process
� Concede
– Small things that don’t matter
– Slowly
� Don’t accept no for an answer
– Best and final does not exist
– Your answers can change
– What part of “no” don’t you understand
� Assume nothing
– You have power
– Your position is never secure
� Nothing for something
– Non-cash value for money
– Total cost, not unit cost
– Risk reduction has value
� Write the summary
– Document conclusions
© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy
Negotiation – Critical Success Factors
� Plan to plan
� Identify everything that is known and unknown
� Know what you don’t know
Closing and Deadlock TacticsConcession Tactics | Logistics
Fact finding Tactics | Zeroing in and Probing TacticsDirty Tricks | Authority Tactics | Persuasion Tactics
Tactics: Time | Opening Demand and Offer | InitiativeStrategy: Information Gathering | Motivation | Decision Making | Selling Reachable Target
| Team Selection Strategy | Power Sources and LimitsStrategy: Win-Win | Relationship | Product and Market
© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy
Sales Excellence
� Selling
– the right deal (can we win this deal)
– to the right customer (can I sell more stuff and leverage the time)
– the right way (do I have a selling process)
– at the right time (do I understand the buying process)
– in other words…winnable deals, worth winning in accounts worth having
� Disciplined
– Prospecting
– Closing
– Servicing
� Personal pipeline management
� Time Management