improve b2b close rates with this sales technique
TRANSCRIPT
IMPROVE CLOSE RATES WITH THIS SALES
TECHNIQUEPresenters:
David Levy, CMO, TrefisLarry Gorkin, Managing Director
Corporate Solutions, Trefis
OUR MISSION IS TO TRANSFORM DATA AND ANALYSIS INTO EXPERIENCES THAT INSPIRE VISION AND ACTION
David Levy, CMO
He began his career as an editor at Reader’s Digest before jumping into the world of digital marketing and direct response. More than twenty-five years later he brings to Trefis a unique mix of editorial experience, agency acumen and B2B marketing savvy. Before joining Trefis in 2015, David spent five years as a marketing consultant to enterprise software companies.
Larry Gorkin, Managing Director, Corporate SolutionsThroughout his career, Larry has learned what it means to help companies grow and he helps our corporate customers use Trefis to do just that. His line executive experience includes stints at Procter & Gamble, MCI and GE Capital. As a consultant–at McKinsey & Company and Stonebridge Consulting Group–Larry has guided clients such as IBM, MasterCard Worldwide, and Baxter Health Care.
TODAY’S WEBINAR IS ALL ABOUT HELPING COMPANIES CLOSE MORE SALES
AND CLOSE THEM FASTER
1 2What
you can do to improve your own success
3How
you can take immediate
action
Why most sales don’t close
WE’LL COVER THREE THINGS TODAY
FAILURE IS THE NORM
82%OPPORTUNITIES DO NOT
CLOSE
THAT’S AN AVERAGE WE’VE CALCULATED BASED ON A RANGE OF ESTIMATES REPORTED ON THE INTERNET. THE MOST OPTIMISTIC DATA WE SAW WAS A 29% CLOSE RATE REPORTED BY THE RESEARCH FIRM ABERDEEN GROUP. MOST PESSIMISTIC WAS A 6% CLOSE RATE REPORTED BY IMPLISIT, THE CRM SOFTWARE COMPANY.
WHETHER YOU TAKE THE OPTIMISTIC OR PESSIMISTIC VIEW, THEY’RE BOTH ALARMING GIVEN THE MILLIONS OF DOLLARS COMPANIES SPEND TO NURTURE AND DEVELOP LEADS.
THAT DOESN’T EVEN BEGIN TO MEASURE THE HUGE WORK AND TIME INVESTED BY INDIVIDUAL REPS AND TEAMS TO MAKE IT HAPPEN.
FAILURE IS THE NORM
50%SALES REP WON’T HIT
THEIR #
THIS QUARTER, COULD IT BE YOU?
Company costs• Missed forecasts• Lost profits• Negative impacts on
• Inventory • Capital spending• Competitive positon• Stock values
Human costs• Hiring slowdowns • Job cuts• Reduced salaries and
bonuses• Heads roll• Stress
HIGH COSTS TO LOW CLOSE RATES
WHY DON’T SALES
CLOSE?
SURPRISINGLY, THE ANSWER IS STRAIGHTFORWARD, AND DECEPTIVELY SIMPLE…
SALES DON’T CLOSE BECAUSE CUSTOMERS LACK THE CONVICTION AND CONFIDENCE THAT THEY’LL GET THE CONCRETE VALUE NEEDED TO MAKE THE ACTUAL BUY DECISION
CUSTOMERS WORRY“IS THERE VALUE?”
“THE REAL ENEMY OF SALESPEOPLE TODAY ISN’T
THEIR ARCHRIVALS; IT’S NO DECISION.”
HARVARD BUSINESS REVIEW, PROFESSOR STEVE W. MARTIN, PROFESSOR AT THE USC MARSHALL SCHOOL OF BUSINESS
1Worried
Customers Money
StewardshipPeers Choice
Information
FEAR, UNCERTAINTY, DOUBT
MoneyAre the funds available and investment justified?
StewardshipIs the purchase in the company’s best interest?
PeersHow will colleagues perceive my decision on this purchase?
CompetitiveIs the choice between competitors clear?
InformationAre the facts being presented truthful and accurate?
OF THESE FIVE CONCERNS ONLY ONE—”CHOICE”—HAS ANYTHING TO DO WITH THE PRODUCT ITSELF. THE OTHERS ARE ALL ESSENTIALLY EMOTIONAL CONCERNS.
REACTIVE SELLING
2Shallow
ApproachRFP Process
Limited Interaction
Q&A Pattern
RFPs The long process including extensive product evaluations and detailed worksheets are used to reduce these stressors
Limited interaction with the prospectIt’s common that vendors are prohibited from dealing directly with the business owner
Reactive Q&A patternQuestions are funneled through procurement or similar gatekeeper. They ask. You answer.
DESPITE THE EFFORT TO REDUCE FEAR, UNCERTAINTY & DOUBT SOMEONE ON THE BUYER SIDE WILL RAISE ANOTHER CONCERN…LEADING TO NEW STRESS AND INERTIA.
3Failed
Business Case
Rote Exercise
Black Box Model
Limited Interaction
ROI NOT ESTABLISHED
Rote ExerciseA low value exercise since customers know you will paint the most positive picture
Black Box ROI ModelYou present your results but not your reasoning, which leads to mistrust
Limited interactionBecause the ROI case is presented as a complete analysis, there is little opportunity to discuss with the customer
UNEXPECTED CONSEQUENCESYOU BUILD AN ROI MODEL TO ESTABLISH YOUR CREDIBILITY, YET IT HAS THE OPPOSITE EFFECT.
UNEXPECTED CONSEQUENCESCUSTOMERS MISTRUST THE CREDIBILITY AND VALIDITY OF THE BUSINESS CASE, FURTHER ERODING THE CHANCE FOR A SUCCESSFUL CLOSE.
RECAP: WHY MOST DEALS DON’T CLOSE
1 2 3Failed
Business Case
Rote exercise
Black Box Model
Limited Interaction
Shallow Approach
RFP Process
Limited Interaction
Q&A Pattern
Worried Customers
Money Stewardship
Peers Choice
Information
WHAT CAN YOU DO TO IMPROVE CLOSE RATES?
ENGAGE YOUR CUSTOMERS ON THE BUSINESS
CASE
LET CUSTOMERS CHALLENGE YOUR
BUSINESS CASE
OPEN YOUR ROI MODELS TO DISCUSSION AND ALLOW CUSTOMERS TO PROPOSE THEIR OWN SET OF ASSUMPTIONS. TOGETHER, EXPLORE MULTIPLE SCENARIOS IN REAL-TIME. LET THEM DEFINE ONE THEY ARE COMFORTABLE WITH
THE DISCUSSION CHANGES FROM:
Is there value?
THE DISCUSSION CHANGES FROM:
Is there value?How much value?
CUSTOMERS BUILD CONVICTION WHEN THE BUSINESS CASE AND ASSUMPTIONS ARE THEIRS, GIVING THEM GREATER CONFIDENCE TO MAKE A BUY RECOMMENDATION OR DECISION.
CUSTOMERS SELL
THEMSELVES
PERCEPTION CHANGES FROM:
Hungry vendor
PERCEPTION CHANGES FROM:
Hungry vendorTrusted partner
UNEXPECTED BENEFITREPS WHO USE THIS APPROACH GAIN A MUCH GREATER UNDERSTANDING AND APPRECIATION OF THE FINANCIAL VALUE THEIR PRODUCTS CREATE FOR CUSTOMERS… WHICH HELPS THEIR OVERALL SELLING EFFECTIVENESS.
1Define
Your ValueDetail Each Source
Quantify with Finance
Translate to Profitability
BUILD A STANDARD ROI MODEL
Detail Each SourceIdentify the sources of value for each product or service
Quantify with Finance Verify your assumptions with your finance partner, but have them provide you the spreadsheet
Translate to Profitability Make sure you can explain and support the path to profits
SHARE YOUR THINKING
2Open
The ModelDetail the Components
Explain Your Assumptions
Present Your ROI
Detail the Components Call out the drivers of value so the customer knows where to find them
Explain Your AssumptionsWalk your customer through your reasoning
Present Your ROISome sales reps shy away from telling a strong ROI story. Be bold
3Test
AssumptionsInvite Alternatives
Compare in Real Time
Reach Alignment
ENGAGE THE CUSTOMER
Invite AlternativesInvite the customer to develop “what-if” scenarios
Compare in Real Time Do this in partnership with the customer. Meet in person, get on the phone or use a screen sharing service
Reach Alignment Provide the spreadsheet and encourage the customer to use it internally…they will need to align with their colleagues
CLOSE MORE DEALS
1 2 3Define
Your ValueDetail Each Source
Quantify with Finance
Translate to Profitability
Open The ModelDetail the Components
Explain Your Assumptions
Present Your ROI
Test Assumption
sInvite Alternatives
Compare in Real Time
Reach Alignment
TREFIS TRANSFORMSCLICK THE GRAPHIC TO SEE A SAMPLE ROI
MODEL
• Most deals are lost to “no decision” because customers lack conviction
• Drive conviction through an active business case discussion
• Engage customers to create and compare alternative scenarios in real time
BUILD CUSTOMER CONVICTION
• Build a standard business case model for your key products
• Present it to customers in an open format
• Engage customers to assert and test their own assumptions in real time
SIMPLE NEXT STEPS
As a special offer, Trefis will transform your spreadsheet model into the Trefis
Interactive Experience at no charge.
Click our logo to send your model
TRANSFORM YOUR MODEL
CONTACT INFORMATION
David Levy, CMO [email protected]
Larry Gorkin, Managing Director Corporate Solutions, [email protected]
http://www.trefis.com/info/solutions/value-selling/