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From Vendor to Trusted PartnerA Blueprint for World-Class Solution Selling®

A Sales Performance International White Paper

From Vendor to Trusted Partner Page 1

©Sales Performance International – All Rights Reserved

Why the Level of Sales Relationship Matters

Over fourteen years of extensive sales performance research spanning

more than 1,000 international companies has found that there are five

levels of relationships that a company can have with its customers

and prospects. CSO Insights conducted its annual Sales Performance

Optimization survey and the benchmarking underscores the

significance of several key dimensions to selling. Sales Performance

International (SPI) has developed this paper as a result of the CSO

findings and our own twenty plus years of experience. What we’ve

found is that great salespeople are truly multi-dimensional and that it

is the skillful and well-planned execution of six different dimensions

that determines who will win and who will lose.

From Vendor to Trusted Partner


Elevating the Customer RelationshipAn examination of the five levels of relationships as defined by CSO Insights provides the foundation for the discussion of this document. Sales organizations should aspire to move upwards in the scale ultimately becoming a Trusted Partner to their valued customers.

Level 1. Approved Vendor: You are seen by the majority of your customers as a legitimate provider of the products or services you offer, but are not recognized for having any significant sustainable competitive edge over alternative offerings.

Level 2. Preferred Supplier: Based on your marketplace reputation and past dealings with your customers, while competitors may offer alternatives, you are normally seen as the preferred vendor with whom to do business. Level 3. Solutions Consultant: Based on a specific set of product-related, value-added knowledge or services you offer, your customers see you as not only a vendor, but also a consulting resource on how to best use your products or services.

Level 4. Strategic Contributor: Above and beyond the products and services you offer, your customers view you as a source of strategic planning assistance for dealing with broader-based challenges they are currently facing.

Level 5. Trusted Partner: At this highest level, you are seen as a long-term partner whose contributions, products, insights, processes, etc. are viewed as key to your client’s long-term success.

Trusted Partner

5

StrategicContributor

4

SolutionsConsultant

3

PreferredSupplier

2

ApprovedVendor

1

Depth of Relationship

Cus

tom

er V

alue



Sales Relationship Level Correlates to Sales Process Adherence

Looking closely at the data from all the firms that took part in the 2008 study, and aggregating their performance based on which Matrix quadrant they fall into, a clear trend emerges. On average, the more you rely on the science of selling versus the art, the more success you will achieve.

What exactly is this statement based on? First, several key metrics were identified that contribute to sales success: percentage of reps making their quota; percentage of the overall company plan achieved; percentage of deals resulting in a win, loss, or no decision; and sales force turnover (both voluntary and involuntary). Finally, the numbers for all of the firms in a given Matrix quadrant were combined.

Two quadrants in the Matrix that were virtually empty are reflected in the correlation analysis. Companies consistently functioning randomly do not achieve a trusted partner level of relationship. Similarly, in reviewing dynamic process firms, they are nearly always able to figure out a way to be at the preferred supplier level or above in their relationships with customers. For the remainder of the Matrix, individual successes and failures in each relationship/process category were identified, and upon comparing the average sales performance numbers for each of the quadrants in the Matrix, three clear classes of performance differences emerged—Successful Years, Challenging Months, and Sleepless Nights.

Trusted Partner

Strategic Contributor

Successful Years

Solutions Consultant Challenging Months

Preferred Supplier

Sleepless NightsApproved

Vendor

Ad Hoc Informal Structured Dynamic

Level of Process Maturity

Dep

th o

f Sal

es R

elat

ions

hip



9390

86

6962

56 5549

44

35 3228 31

25 23

% Of Reps Making Quota

% Of Company

Plan

% Of Forecasted Deals Won

% Of Forecasted Deals Lost

% Of Sales Force

Turnover

Sleepless Nights

Challenging Months

Successful Years

©CSO Insights, Sales Performance Optimization — 2008 Survey Results and Analysis

Over time, the Challenging Months class of firms (nearly one-half of the firms surveyed) will outperform their peers in the Sleepless Nights category in all the metrics above. Examining the Successful Years category (17% of study participants), it becomes more apparent that with the combination of strong relationships and process adoption come rewards. These companies enjoy significant performance advantages over their competitors by excelling at most aspects of sales, and are in fact turning how they sell into a strategic competitive advantage.



A Blueprint for World-Class Solution Selling®

The term “Solution Selling” may, for many business professionals, equate to an intensive sales training class or event that they have attended. While training sales people on new methods is a critical part of improving the sales relationship, training alone will not drive the levels of process execution and adherence required to sustain trusted partner status with customers. In other words, to “institutionalize” the process and behaviors that truly elevate the selling relationship, training must be augmented with other key “dimensions” of world-class selling. We refer to these six dimensions as the Blueprint for World-Class Solution Selling®, as depicted below.

The following sections of this white paper explore each of these key dimensions of performance excellence.

SolutionMarketing

Training and Continual Learning

Management Systems and Disciplines

Sales Knowledge

Management

Technology Enablement

Buyer-Aligned Process and Methodologies

Blueprint for World-Class Solution Selling

http://www.spisales.com/Blueprint-World-Class-Solution-Selling.aspx



Buyer-Aligned Sales Process andMethodologies

How are we going to sell differently?

“Why have a sales process?” The simple answer is that it provides everyone involved in the sales effort a road map of what to do next, which leads to a higher probability of consistent, repeatable success. Few sales campaigns today are orchestrated by a single individual. And it doesn’t matter if your sales cycles are single-event transactions or a series of events over a long period of time; knowing what to do, when to do it, and how to do it is critically important to improving core sales metrics.

The Value of Sales Process Adherence

Again, sales performance research conducted by CSO Insights vividly illustrated the payoff for defining and adhering to a structured sales process. Companies that make the investment in defining and adhering to a buyer-aligned sales process see material improvements in virtually all key performance metrics.

“Patterns of customer behavior have changed. Today, consumers may be well along their buying process before you get the first hint of a lead. Consequently, sales organizations should redesign – and in some ways reinvent – the selling process.”

Level 1 - Ad Hoc Level 2 - Informal

Level 3 - Structured

Level 1 - Dynamic

Quota Attainment

Win Rates

Turnover

Lack a single sales •processMultiple, random •approachesLess predictable •but not necessarily unsuccessfulSkills-based training•

Sales process exists, •but not reinforcedNot measured or •monitoredRepresents nearly •50% of surveyed organizations

Formallydefined•and reinforced sales process and cadenceMeasures lagging •metricsRole-based training•

Process is adjusted •based on real-time metricsFully integrated with •other departmentsTightly linked to •business objectives

58%

49%

39%

65%

55%

29%

http://www.spisales.com/Blueprint.aspx?id=824



What Is a World-Class Sales Process?

There are many common misconceptions about what it means to have a sales process. When asked, most executives will claim that their organization has a defined sales process. However, we find that organizations often confuse sales process with the nomenclature in their sales funnel, or with the steps provided by the CRM or sales automation systems they are using. Not only do these so-called sales processes fail to include the critical functions of planning or implementation, they almost never include the enabling sales methodologies.

By definition, a process is a systematic series of actions, or a series of defined, repeatable steps to achieve a result. When followed, these steps can consistently lead to expected, verifiable outcomes. A sales process defines and documents those end-to-end steps that lead to increased sales performance. In addition, a well structured sales process identifies specific selling and management roles and activities, and integrates specific methodologies (how-to’s) for successfully executing the process. The sales process also provides a structured context for sales management and coaching activities.

How a Buyer-Aligned Sales Process Elevates the Sales RelationshipEnsures sellers are aligned with customer buying process1. Clearly identifies roles and accountabilities for customer engagement2. Provides structured diagnosis method for solving customer problems3.

Customer Buying Process

Sales Process Steps

Activities / Milestones

Verifiable Outcomes

Roles

Management System

Methodology Based Skills, Sales Aids and Tools

10% 20% 50% 75% 90% 100%




Solution Marketing

The Messaging Gap

Many, perhaps most, salespeople do not know how to position the value of their offerings properly. A study attributed to the American Marketing Association reported that as few as 1 in 10 salespeople know how to position value and use messages correctly and consistently. If true, such a figure means that companies simply remain inept at teaching salespeople to effectively position defensible value with customers.

The American Marketing Association’s Customer Message Management Forum estimates that up to 90% of marketing tools and sales support materials never get used in the field. And B to B Magazine reported 70% of companies grade their marketing messaging and sales support functions as D or F on a scale from A to E, or F. Often marketing remains seriously disconnected from sales, and marketing materials are fundamentally not aligned with what a company’s sales force needs.

The Value of Messaging Alignment

While the marketing and sales disconnect is endemic, research by Sirius Decisions revealed that 80% of companies say that they have no formalized vision for achieving sales and marketing alignment. CSO Insights has done a variety of correlation studies, and their analysis indicates that companies that are world-class in customer message management tend to outperform their peers significantly, as follows:

They tend to out-distance their peers in quota attainment by 25% •They have 20% higher win rates than their competitors, and significantly •higher forecast accuracyThey are three times more successful in winning business after issuing •proposalsThey tend to experience much higher up-selling and cross-selling success •They are five times less likely to discount, compared to their peers•



World-Class Messaging

What is required is a formal process that can be implemented to create strong links between marketing and sales organizations. This process includes multiple steps, including the development of a problem-solution map, the identification of the different types of differentiators, critical business issues and the development of Solution Messaging Cards.

Step 1:Develop Problem/Solution Mapping

Step 2:Document Defensible Differentiators

Step 3:Build Critical Business Issues Menu

Step 4:Develop Solution Messaging Cards

Step 5:Build Sales Tools (and other Marketing Tools)

How Solution Marketing Elevates the Sales RelationshipProvides sellers with highly relevant business issues to investigate1. Provides clear navigation from problem scenarios to coherent vision 2. of the solutionHelps customer understand unique differences between potential 3. alternatives

Sales Tools

Field Marketing

Collateral

White Papers

MarCom

Website

Proprietary•••Comparative•••Holistic••

Sample Customers

Sales

Overlay

Indirect

MarCom

Product Marketing

Segment BSegment A

http://www.spisales.com/solution-marketing.aspx



Training and Continual Learning

The Event Based Training Dilemma

In over two decades of global sales training, one of the key discoveries that we have made is that there is a very short half-life of training. We are referring to training by itself, that is. When training is showing people new skills, new abilities, new techniques, new ways of conducting their sales profession and not reinforced, the value of that training is lost within a matter of weeks. In fact, our research has found that the average half-life of a sales training event is about 5.1 weeks. Said another way, after 5 weeks half of the content from the training event will disappear from the minds of the learner—unless sufficient reinforcement of the learning is implemented.

More than a year

Seven months to a year

Three to six months

Two months

One month

Less than one month

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

% of Retention

Further, we found that on average, 84% of that content is lost after just 3 months. These results are very consistent with similar studies that were conducted in the 1980’s and consistent with results from some pioneering behavioral psychologists like BF Skinner in the 20s and 30’s -- this half-life represents a general principle of human knowledge retention and behavior. Sales training is no different from any other kind of learned skill. Sales training alone just doesn’t work. It does produce some incremental improvements initially but they can fade away very rapidly.

Preserving the Training Investment Through Continual Learning

In order to protect what is often a significant financial investment in sales training, it is crucial to think in terms of a continual learning environment for sales professionals and managers.



The continuous learning process begins with the sales process definition, and the identification of specific sales roles and activities to execute the process. This provides the ability to accurately record the required knowledge, skills and abilities (KSA’s) for sales people and managers. At that point, a structured KSA assessment can be performed to assess people on the level of knowledge, skills and abilities that they have and identify the gaps.

Then, it is possible to align specific curriculum or curricula for multiple sales roles (and managers). To deliver training we recommend mixed modalities, so that you can minimize time out of the field and help tune those messages to the way that people actually learn. It is critical to conduct regular testing of understanding review sessions. It is equally important to involve management in recurring coaching, reinforcement and measurement of actual application of new skills. Finally, it is essential to assess the impact in terms of desired business outcomes.

How Training and Continual Learning Elevate the Sales RelationshipTeaches sellers how to identify latent pain and higher value business issues1. Teaches structured approach to problem diagnosis2. Teaches sellers how to jointly develop a vision of the customer solution3.

DefineSalesProcess

Identify Sales Roles

Identify Sales Activities

Isolate Required KSA’s

Re-Assess and Measure Business Outcomes

Perform KSA Assessment

Coach, Reinforce and

Measure Application

Test Understanding and Review

Deliver Mixed Modalities

Develop Curriculum



Management Systems and Disciplines

Effectively selling solutions requires that sales managers be highly capable of more than “managing the numbers.” They must also be capable of legitimately coaching and mentoring sales people to follow a defined process and to apply specific selling methods. When selling solutions, the ability to coach and mentor is highly dependent upon the presence of a well-defined sales process. The sales process creates the essential context for common language, defined accountabilities, problem diagnosis, verifiable customer outcomes — all of which provide a foundation for consistent, repeatable selling practices.

To provide effective coaching, sales management needs to be highly educated and literate in all fundamental Solution Selling® disciplines including territory management, account planning, strategic opportunity management, and sales execution.

This illustration depicts a closed loop system of analyzing pipeline and diagnosing skills or opportunity level issues. It emphasizes the need for coaching at either the opportunity or skill level. Managers need to conduct follow-up meetings, update the opportunity management system and then re-analyze the pipeline. To support the adoption of the sales process and new selling methods, this approach to management needs to become an integral part of the “rhythm of the business.”

The Value of Effective Sales Management

Effective sales management can be a significant lever in overall sales effectiveness. Research by CSO Insights indicates that regular, consistent coaching and mentoring activities pay off. For example, conducting regular win/loss reviews can result in quota attainment levels as much as 12% higher, and a 12% improvement in forecast accuracy.

Identify Skill Issue

AnalyzeOpportunity

AnalyzePipeline

UpdateDatabase

Coach Skill Issue

Coach Opportunity

Follow-up

D IAG NOSE

COAC H

Management by Exception

http://www.spisales.com/salestraining.aspx?id=1612

http://www.spisales.com/Solution-Selling-Sales-Execution.aspx

http://www.spisales.com/Strategic-Opportunity-Selling.aspx

http://www.spisales.com/Major-Account-Selling.aspx

http://www.spisales.com/Targeted-Territory-Selling.aspx

http://www.spisales.com/Sales-Management-Coaching.aspx



How Management Systems and Disciplines Elevate the Sales Relationship

Helps create consistent, professional buyer/seller interaction1. Provides essential coaching and mentoring for consultative sales methods2. Ensures that customer needs are aligned with sales approach3.

Sales Knowledge Management

The Challenge

Recent research by CSO Insights reveals that competitive activity, product line complexity and breadth, changing market factors, new product launches, and entry into new markets are all increasing for a significant percentage of companies. As expected, the pace of change and complexity has amplified the already daunting challenge of Sales Knowledge Management (SKM).

Selling time is down from 46% two years ago to 36% (ES Research)•Sales ramp-up times continue to trend upward•80% of knowledge remains undocumented•44% of sales organizations are dissatisfied with best practices sharing•

Customer objection handling information 40.1% 25.3% 14.2%

Strategic account plans 32.0% 24.0% 18.8%

Best practices used by the salesforce 39.6% 19.7% 15.0%

Competitive analysis information 39.6% 19.7% 15.0%

Customer reference/case studies 43.3% 19.3% 9.1%

Details on clients marketplace/industry 43.5% 19.6% 8.1%

Details on past marketing/selling efforts 37.6% 21.4% 11.4%

Details on client’s executives 39.6% 16.6% 11.8%

Proposal/business case templates 35.0% 12.3% 9.9%

Details of past customer purchases 34.0% 14.6% 6.6%

Customer/prospect contact information 29.1% 8.9% 2.7%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Information gathered by CSO Insights in their most recent survey suggests that there is a new mandate for sales organizations. While traditional vehicles for sales training and continual learning remain essential for professional development, they do not address the precise, on-demand knowledge requirements needed in today’s connected world. The dividends for addressing the sales knowledge challenge can be compelling.




The Value of World-Class Sales Knowledge Management

Overcoming these knowledge access challenges can pay significant dividends to a sales organization. The sales performance gap between companies that rate themselves good versus poor in SKM is striking, including:

17% difference in quota attainment •10% difference in closure rates•18% difference in voluntary turnover•10% difference in forecasted deals that close•7.2% improvement in revenue/employee•

The Path to World-Class Sales Knowledge Management

Sales Knowledge Management entails much more than technology. It is important to create a “Knowledge Architecture” that aligns with the overall sales process and Solution Selling® blueprint. The following table illustrates some of the core knowledge assets that are required to execute at a world-class level.

Key Knowledge Assets

“Knowledge Architecture” must support the sales process and the overall Solution Selling® Blueprint

Sales Process and Methodologies Training and Continual LearningSales Process Templates Process NavigationProcess/Methodology Mapping Methodology Help Sales Tool Linkage Sales Tool Templates

Solution Marketing Best Practices LibraryProblem/Solution Maps Learning Modules LinkageDefensible Differentiators Management Systems and Disciplines

Business Issue Menus Process NavigationProduct/Solution Information Methodology Coaching Competitive Intelligence Sales Tool TemplatesSolution Selling Tools Best Practices Library

KSA Linkage



Leveraging a Web 2.0 SKM Platform

There are a number of technology options for SKM deployment, ranging from structured file based approaches to sophisticated content and knowledge management platforms.One of the most intriguing recent developments is the emergence of wiki technology, and many sales organizations are experimenting with wikis to address their knowledge management needs.

SPI’s SalesWiki™ which provides a structured, integrated Web 2.0 platform for sales knowledge management incorporates a full array of internal and external collaboration mechanisms.

This “neural network” for the sales organization provides a globally accessible platform for knowledge sharing and collaboration inside and outside the enterprise, including:

Solution Selling• ® training and learning materials accessible in a searchable, web-based encyclopedia Sales process, key activities, methods, techniques, and your own best •practices can be accessed anywhere in the world Marketing, sales, and customers can easily collaborate on solutions to •business problems

How Knowledge Management Elevates the Sales RelationshipIncreases seller’s understanding of customer company and market 1. environmentAllows rapid response to customer’s questions and issues and provides 2. immediate access to problem/solution maps Can creates unified platform for buyer/seller interaction and problem 3. solving

http://www.spisales.com/template.aspx?id=224



Technology Enablement

CRM Adoption and Sales Process Adherence Linkage

We already know that sales process adherence brings numerous measurable benefits. In addition, recall that companies that attain high levels of sales process adherence are the most successful at moving from vendor to trusted partner status with their customers. In their studies of process and technology enablement, CSO Insights has discovered a strong correlation between process maturity and CRM adoption. In other words, where there is a commitment to a structured sales process, CRM adoption is much higher.

The Value of Technology Enablement

CSO Insights has extended their research on sales process adherence to compare the effectiveness of sales organizations who have implemented a formalized sales process that can be actively tracked and analyzed using CRM applications against those who have not.

Compared to their peers, those firms who successfully implemented process and technology to focus and support their sales forces efforts are achieving:

An 11.3% improvement in the number of sales reps achieving quota•Significant increases in success rates at major stages of the sales cycle•An 11.4% improvement in win rates of forecasted deals•A two-fold improvement in the number of firms generating significant ROIs •from their CRM investments

Firm

s w

ith 9

0+%

CR

M A

dopt

ion

70% 64%

60%

50%

40% 33% 36%32%

30%

20%

10%

0%Ad Hoc Tribal Formal DynamicLevel of Sales Process Maturity



Leveraging Technology Across the Solution Selling® Blueprint

Beyond CRM, there are numerous other technologies that can be insightfully applied to each area of the Solution Selling® Blueprint and improve overall selling effectiveness.

The following table illustrates some of the technology enablers that support the blueprint and provide higher value.

Key Technology Enablers

Technology must support the sales process and the overall selling blueprint

Buyer-Aligned Process and Methodologies Management Systems and Disciplines

CRM/Process Alignment CRM/ Process AlignmentJigsaw Management DashboardsInside View KSA AssessmentOneSource/First Research SalesWikiSolution Selling Software Training and Continual LearningSalesWiki KSA Assessment

Solution Marketing GeoLearning LMSValue Mapper SalesWikiSolution Selling SoftwareSalesWiki

How Technology Enablement Elevates the Sales RelationshipAlerts sales team to current developments within customer’s environment1. Improves team’s ability to coordinate resources and function as a 2. consultative resourceAccelerates problem solving acumen of sales team3.




Conclusion

The Blueprint for World-Class Solution Selling® includes six distinct and very important dimensions that must be addressed if sales teams are to succeed:

Buyer-Aligned Process and Methodologies »

Solution Marketing »

Training and Continual Learning »

Management Systems and Disciplines »

Sales Knowledge Management »

Technology Enablement »

Once these factors are properly implemented and are deeply embedded in the sales culture, the organization has a greater ability to fundamentally improve their relationship with customers.

Becoming a Trusted Partner, therefore, should be the goal of every sales organization and Sales Performance International’s Blueprint for Solution Selling® provides the foundation that elevates the relationship you have with your customer.



http://www.spisales.com/Management-Systems.aspx


http://www.spisales.com/solution-marketing.aspx


Sales Performance International4720 Piedmont Row DriveSuite 400Charlotte, NC USA 28210

[email protected]: +1.704.227.6500

www.solutionselling.comwww.spisales.com

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