trends sales mngmnt - equipment leasing and finance … · harvard business review 12/2004 “best...
TRANSCRIPT
Trends in Sales Management“What separates the best from the rest? ”
Richard HighamInternational Sector Head
Mercuri International
Jamie BarretteVP
Mercuri International North America
“A world where companies compete not on what they sell but on how they sell it”
Harvard Business Review 12/2004 “Best Face Forward” Rayport and Jaworski
“Ask … managers to pare costs by 10% and they know just what to do. Ask them to boost growth by 10%, and they’re stymied, assuming that growth is not really something they can influence. But managers can control their companies’ growth.”
HBR 4/2004 “Take Command of your Growth”
Treacy & Sims
“The cost reduction train is hitting the buffers. Cost will not be an enduring source of competitive advantage for financial institutions. I give it at most three years.”
Dr Robert DaviesCass Business School, City of
London University 9/2005
Mercuri International’s mission is
by optimising the sales strengthof its customers globally
Analysis, consulting and programmes to optimise
sales efficiency
Restructuringsales
Mercuri International combines a variety of services to support organic growth
Follow-up and coaching to secure business results
Programmes and coaching to improve sales performance
Securing implementationImproving competence
With 50 local offices in 40 countries and nearly 50 years of experience
MI Central EuropeCzech Rep.CroatiaGreeceHungaryPolandSlovakiaSlovenia
MI Eastern EuropeBelarusEstoniaLatviaLithuaniaMoldovaRussiaUkraine
MI Western EuropeAustriaBelgiumFranceGermanyItalyIrelandNetherlandsPortugalSpainUKSwitzerlandDenmarkFinlandNorwaySweden
MI AsiaChina/ShanghaiHong Kong (Asian Regional Team)KoreaJapanIndiaAssociates and own consultants in Indonesia, Singapore, Thailand, MalaysiaAustralia/New Zealand
MI Middle East AfricaSouth AfricaDubai
MI AmericasUSACanadaBrazil
• Ale Leasing is a well respected asset finance organisation. You have just been given responsibility for the sales in the small but financially sophisticated state of Utopia. You will have a team of five involved in sales. Before taking over the role you have asked for sales information about the team
• You receive information comparing their results over the past two years showing:– Total sales revenue for each individual (expressed in units of Utopian thalers)– Sales revenue split between two offerings A and B– Sales revenue split between two segments (X and Y)– Information about the clients in each individual’s portfolio
• The following information is known about the market:– The market for offering a is increasing at 10% per annum– The market for offering b is decreasing at 10% per annum– The segment x is increasing at 10% per annum– The segment is decreasing at 10% per annum
• Your Task– You want to “hit the road running” and want to know where success is likely to come from
Using the historical record of achievement rank the sales team in order, according to how you see their prospects for the future
Case study part 1: Result
-25+18-8+1-2Development7580737591Sales per client
+50+50-50+100-50Development400450450600550Potential per client
0+100+10-10Development of client base8090110120110Number of clients
+10%-20%+10%-10%+20%Development of client mix Y-10%+20%-10%+10%-20%Development of client mix X70%30%40%40%60%Client mix – segment Y30%70%60%60%40%Client mix – segment X
+10%-10%+10%-10%+20%Development of mix B-10%+10%-10%+10%-20%Development of mix A60%40%50%30%70%Offering B40%60%50%70%30%Offering A
-2+2-1+1-1Increase/decrease on last year678910Revenue in Mn Utopian ThalersSRQPO
Changing the Shape of the Result
RAC
RAC
Mercuri and the sector
• Of the FT top 100 European companies 31 are financial institutions.
• Over the past decade 26 of these 31 have chosen Mercuri International
• Mercuri has worked with over 250 financial institutions around the world
• Mercuri has worked with over 30 of the financial institutions listed in the Fortune 500
Sales increase is possible!
60% under perform
40% over perform12% ofover
performersmake 50% of total results
Would you accept a 60% difference in output between two similar production plants? Why is it the case with sales people?
% of Sales Team
Research:Performance against objectives+
-
10 20 30 40 50 60 70 80 90 100
Black Box
Sales
Market Strategy
MarketResults
“So what sort of action should financial services providers be taking to enhance their sales performance? Based on client feedback and its own industry research, sales development consultancy Mercuri International has come up with the top 10 sales challenges that the industry will face. Some are sales accelerators, as in “take this step and you will reap the rewards”. Others have an impact when they are absent – when the organization fails to take them on board and into their sales process. All will play a key role in the industry’s sales success.”
•Value selling•Multi-level selling•Consultative selling•Effective sale management•Key account management•Channel management•Sales process•Managing pitches•Sales culture•The role of the rainmaker
0% 20% 40% 60% 80% 100%
Value Selling
Consultative Selling
Sales Process
KAM
Sales Management
Rainmakers
Multi-level Selling
Channel Management
Sales Culture
Managing Pitches
What you see as the most important strategic sales issues
0% 10% 20% 30% 40% 50% 60%
Defend
Prospects
Understand "C" Business
Cross-sell
Objections/closing
Support value chain
Support cahnge in "C"
Team selling
Manage network
Manage own time
Managing Pitches
What you see as the most important individual sales competences
0% 10% 20% 30% 40% 50% 60% 70% 80%
Customer strategy
Acquisition Process
Retention Proces
Segmentation
Startegic Outcome Measurement
Measure sales activity quality
Support cahnge in "C"
Client Selection
Measuresales activity quantity
Analytical sales budgeting
Measure sales activity direction
What you see as the most important sales management issues
10 critical success factors• Value selling • Consultative selling• Sales process• Effective sales management• Channel management• Multi-level selling• Managing pitches• Sales culture• Key account management• The role of the rainmaker
Where will your organic growth come from?
Acquisition Innovation
Referral Extension
Continuation Progression
Existing New
New
Co
nta
ct
Product
Need much deeper cross selling and product overlay selling competence
Public Finance & Commercial Finance (ABL) to minimize hand off's to our competitors and to create value add for our vendor partners
Individual sales staff must become more proficient in more products. Can't afford to bring specialists to customer location.
Expanding our services to cover more areas and then tie them all together
Increased focus on cross selling to increase wallet share
offer multi-feature products that allow your customer to benefit from the product features and you to benefit from how you will service the customer.
Ability to develop personal relationships with key decision makers
• REWARD• TRUST• KNOWLEDGE• PROCESS
Acquisition Innovation
Referral Extension
Continuation Progression
ExistingNew
New
Co
nta
ct
Product
10 critical success factors• Value selling• Consultative selling• Sales process• Sales Management• Channel management• Effective sales management• Multi-level selling• Managing pitches• Sales culture• Key account management• The role of the rainmaker
Acquisition Innovation
Referral Extension
Continuation Progression
ExistingNew
New
Co
nta
ct
Product
Training existing and future sales staff to provide value added features,
Differentiate our front end FMV pricing and gets us away from purely money on money comparisons
Managing risk-weighted customer and asset lifetime profitabilities
It is important to understand the customer's processes and how they create value. Based on this information it is possible to generate value pricing.
Address extreme level of liquidity in market to avoid further yield erosion.
Ability to create win/win situations for my organization and clients. Our clients can be our most important sales people.
Value selling• Commodity or value?
– Be real. Be clear. Be strong.
• What makes you different?• Talk the brand• State the benefit• Risk management• Business case…
We need to improve the quality of our consultative-selling and increase the number of salespeople who can be effective in this area
Ability to get closer and more involved in the client's business and resulting needs. I am not certain that this is a "new" competency, but rather think it is a set that requires increased attention.
Thorough understanding of customers' businesses, challenges and opportunities.
Understanding customer business problems and solving them with a portfolio of financial solutions
Customer Centric Selling
“Relationships, to stay strong must be nurtured and future business must be earned. Clients do not like to be taken for granted, and they expect their “suppliers” to invest visibly…in getting to know their clients’ business…The better the firm’s understanding of how clients think the more effectively it will be able to market itself…A firm that is willing to make the investment will easily obtain an in-depth understanding of what clients think, what they want, and how they choose.”
•David Maister - “Managing the Professional Service Firm”
Consultative Selling
Objections
Present
Close
? ???????????Present
Objections
Close
Sales process
2:12:1 4:14:1 • = Success rates
160 = 20160 = 20
$100K$100K4040 2:12:1 20208080 2:12:18080 1:11:18080 1:11:1
HandleIssuesHandleIssues
ManageProject
CustomerService
ManageProject
CustomerService
First ContactFirst Contact
Identify
Projects
Identify
ProjectsProposeSolutionProposeSolution
Negoti-ation
(Offer)
Negoti-ation
(Offer)ProjectAgreedProjectAgreed
Successrate 1
Successrate 1
Successrate 2
Successrate 2
Successrate 3
Successrate 3
Successrate 4
Successrate 4
Successrate 5
Successrate 5
160160 2:12:1
1313 3:13:1 444040 3:13:14040 1:11:14040 1:11:1160160 4:14:1
160160 • = Number of opportunities
160 = 4160 = 4
$20K$20K
We are trying to get beyond simply measuring activity, but look more and harder at the quality of the client interactions.
The direct leaders of our sales force need to be forward thinking and lead their teams instead of allowing the teams to lead them.
Our compensation metrics and motivations have been realigned to focus on risk-based economic profit rather than revenue.
Created new approach to our sales effort and determined metrics to measure success or failure.
Client demands a more efficient delivery process to reduce their time developing relationships, determining the best proposal among competitors and executing on decisions.
Sales Management
1.05.04.08.02.0Av value of sales per prospect visit
15.020.022.025.020.0Av value of sales per client visit12.010.820.018.016.6Av value of sales per visit
70%30%65%30%65%Proportion of time on B
30%70%35%70%35%Proportion of time on A
300300200200350Visits to Y segment clients200350200300250Visits to X segment clients
500650400500600Total number of visitsSRQPO
Case study part 2: Activity
•What does this analysis tell you about the results of the individuals?•What ONE or TWO things would you change for each individual?
Changing the Shape of the Result
RAC
RAC
The Manager’s Role
RESULT
SALESPEOPLE
Quantity
Direction
Quality
Analyse
Plan
MonitorMANAGEMENT
COMMUNICATE & MOTIVATE
We have instituted internship programs; fostered partnerships with banks and other business partners to expand our business base; involved younger managers in peer discussions with other young managers in other firms, established a team concept for account management, encouraged training, education, and competence development in our staff.
Targeted hiring of experienced personnel, formal ongoing training
Increased training focus. Overcome objections to retraining same material where required
We are just trying to catch up to the curve. We are reactive at best.
Making it happen!• 102% year on year growth compared to 25% control group• <4% market share to >20% in 2 years• More sales in the quarter following a project than in the
last three quarters combined• Ave successful sales school graduate has 15 more visits
in diary, 18 more offers pending and closes 15 more deals a year than control group
• $100,000 deal in first meeting following an event• $3,400,000 from 41 people in 3 months following
“professional selling”
Trends in Sales Management“What separates the best from the rest? ”
Richard HighamInternational Sector Head
Mercuri International
Jamie BarretteVP
Mercuri International North America