using sales insights to lead commercial transformations

Using the Latest Sales Insights to Lead Commercial Transformation

7 October 2014 – Copenhagen

Presenters:

Stig Albertsen

Zach Gropper

© 2014 CEB. All rights reserved. 2

Striving for Commercial Excellence

Value Proposition

Design

Commercial Messaging

Sales Process & Pipeline and

Sales Tools Design

Go to Market – Segmentation &

Prioritization

Commercial Competencies & Skill Build

Commercial Leadership & Opportunity

Coaching

AcceleratedGrowth

Realizing excellence across a complex organization requires smart strategies for organizational design, enablement and leadership. To achieve change with impact, companies also need a catalyst…a common and compelling approach on which to center their transformation.

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Harnessing the Power of Data and Best Practices

CEB’s Research-based Business Model

Research and Insights

Proven Best Practices

Advisory Support

Decision and Diagnostic Tools

Peer Benchmarks

Executive Networking

Live and Online Learning Events

Recent Sales Research Studies

• Creating Customer Consensus

• Hiring Top Sales Talent

• Driving Manager Effectiveness in the Insight Selling Era

• The Voice of the Sales Force: Engagement and Retention Trends

• Creating a Customer-Verified Sales Process

• Replicating the New High Performer


Roadmap

How Has the Buying Process

Changed?

What Does Challenger

Sound Like? How Do I Adapt?


Reluctant Customers

The Good

Customers’ time horizons extended

1

Contact turnover stabilized

2

Customers open to new ideas

3

Customer spending still down

4

Price pressure still significant

5

The Bad The Ugly

Consensus requirements

expanding

6

Customers push risk onto suppliers

7

Increased demand for customization

8

Customers using consultants to drive purchase

9


A Different Kind of Buying

Customer Due Diligence

Begins

Customer’s First Outreach

to Supplier

Customer Purchase Decision

57% Complete

Customer Needs Well-Scoped

Priorities Set

Requirements Mostly Defined

Providers Compared

Prices Benchmarked

Customer Purchase Timeline


What Drives Purchasing Decisions

Company and Brand Impact

Product and Service Delivery

Sales Experience

Value-to- Price Ratio

53%

19%

19%

9%

Percentage of Contribution to Customer Loyalty

What customers want from sellers: • Unique perspectives on my business • Help me navigate alternatives • Help me avoid potential mistakes • Teach me about new issues • Be supported within my organization


Profile of Today’s Sellers

The Hard Worker

• Strong process

management skills • Doesn’t give up easily • Self-motivated • Interested in feedback

and development

The Relationship

Builder

• Builds advocates in customer organization

• Generous in giving time to help others

• Good interpersonal skills

The Challenger

• Personalizes sales

message to the customer

• Knows how to drive the customer to a decision

• Delivers new insight to customers

The Lone Wolf

• Follows own instincts • Self-assured • Difficult to control

The Problem Solver

• Reliably responds to

internal and external stakeholders

• Ensures that all problems are solved

• Detail oriented

5 Behavioral Profiles Identified in CEB research of 30,000 sellers


Challengers Most Likely to Win

22%

14%

26%

17%

12%

7%

The Hard Worker The Problem Solver The RelationshipBuilder

23%

15%

39%

25%

The Challenger The Lone Wolf

Percentage of Core Performers

Percentage of High Performers

Percentage of Population


Complexity Widens the Gap…

20%

54% 25%

25%

26%

10% 18%

7% 11% 4% Relationship

Builder

Problem Solver

Hard Worker

Lone Wolf

Challenger

Complex Selling

Transactional Selling

High performers are 4.7x more likely to be

Challengers in complex environments.

4.7x

Percentage of High Performing Sales Professionals

© 2014 CEB. All rights reserved.

Critical Components of the Challenger™ Sales Model

Source: CEB Sales Leadership Council’s Rep Skills Diagnostic

Teaches for Differentiation … delivers insight to customers

Takes Control … develops the business opportunity and manages the purchase decision

Tailors for Resonance … communicates sales messages in the context of the customer

What it Means to Challenge Customers

Challenger


Another Evolution in Sales

Moving Sales from Value Articulation to Value Creation

Product-Based Selling (pre 2000)

Solutions Selling (2000 – 2008)

Challenger Selling™ (2008 – )

Nature of Relationship

• Frequency-based • Service-based • Insight-based

Value Created Through

• Product Design • Customization • Enhancing Customer Competitive Strength

Defining Features

• Positions product against price

• Minimal investment of customer time

• Rep well versed in product features and price

• Designs unique solutions from needs analysis

• High investment of customer time

• Fraught with problems (rep diagnostic skills needed, executing on complex solutions)

• Discussion orients around unarticulated problem

• Low investment of customer time

• Rep must be a Challenger and know customer’s business


Roadmap


Changed?




Commercial Insight

Commercial Insight

General Information

Accepted Information

Thought Leadership

Insight

1

2

3

4

5

Commercially insightful messages lead back to the supplier exclusively, and also challenge conventional wisdom.

Challengers use the right message when approaching the right customer stakeholder


From Features and Benefits to Teaching

■ Leads w/ value of product features ■ Focuses conversation on known

customer needs

Before

Feature-Oriented Interaction Teaching-Oriented Interaction

After

Impact of Hygienist Absenteeism Annual Absenteeism Rate: 34% Associated Turnover: 10% Lost Revenue / Missed Appt. $2,500

Total Opportunity: $500,000

“I’d like to talk to you about the drivers and costs associated with hygienist absenteeism…”

“Our product’s lightweight, ergonomic design is

revolutionizing dental care. Your hygienists will love it.”

■ Leads with issues costing customers $$ ■ Tells customers something they don’t

know about themselves ■ Concludes with Dentsply solution


Roadmap


Changed?




Now the Hard Part…

COMPANY Value Proposition

CUSTOMER Value Perception

• Only 47% of the information used during customers’ purchase decisions comes from a supplier.

• Only 14% of Customers perceive a real difference between supplier offerings AND value the difference enough to pay for it.

• Only 13% of CMOs agreed that “If I Removed the Identifying Information for Our Commercial Collateral and Pitch Material, Our Customers Could Easily Determine It Came from Us.” Source: CEB Research


Challenger is an Organisational Capability

Source: Sales Leadership Council research

Sales Professional’s Role:

Commercially “Teach”

Customers

Manager’s Role: Coach, Develop and

Reinforce Behaviours

& Messages

Marketing’s

Role

Creation of Commercial

Teaching Insight

A consistent process of market

intelligence collection must be

established to ensure the sustainability

of commercial teaching insight creation.

Challenger™

Model

Continuous on-the-

job development of

teams

Powerful message

to reframe

perceived value

Scaling

infrastructure to

support

development

Managers must be equipped with the

tools and competencies to coach and

reinforce the Challenger™ skills across

their teams and to reinforce

differentiated sales messages. Manager

capability is critical to the long term

sustainability of any initiative.

Product Marketing must arm the

front line with commercial teaching

value propositions and collateral

that lead to your unique

differentiators not with them

In order to install and sustain the Challenger™ commercial model, action must be taken across the following 3 critical pillars


Pricing & After Market Strategy

Commercial Excellence

Ancillary Services

Corporate Strategy

Strategic Planning

Commercial Strategy

Sales Excellence

Accelerated Sales

Effectiveness

Sales Acceleration Segmentation Segmentation

Corporate Strategy

Re-negotiation strategy

Sales Acceleration

Commercial Transformation 2.0

http://www.novozymes.com/

http://www.jobindex.dk/cgi/click.cgi?jobid=298126&jobtype=h&ctx=w&url=http://www.bd.dk/


For Discussion – Applying Challenger Within Your Business

To what extent does your commercial organization bring new insights to customers ?

To what extent do you have a value proposition that is framebraking, and forces customers to look at their business in a different way?

How do you ensure that sales and marketing is aligned in the way you communicate with and challenge customers?

Please discuss the above at the tables, and write your main take-away of the day on a card-board


Commercial Transformation Onsite (2 – 3 Hours)

Maximum of 5 Participants Recommended Attendees: Senior Sales Leader, Marketing Leader, Business/Line Leadership, 1 Sales Manager, 1 Sales Person

1) How are our customers changing how they buy?

2) How well are Sales and Marketing aligned to bring Insight to our customers?

3) Do our customers see our value proposition as differentiated?

4) What preparations do we need to make to support our team to deal with the complex consensus purchase?

5) Does the Challenger Model fit for my organisation?


About Implement Consulting Group


About CEB

Who We Are CEB is the leading member-based advisory company. By combining best practices with advanced research methodologies and human capital analytics, we equip senior leaders and their teams with insight and actionable solutions to transform operations. CEB enables executives to harness peer perspectives and tap into breakthrough innovation without costly consulting or reinvention. The CEB member network includes more than 16,000 executives and the majority of top companies globally.

25+ Years of Experience

50+ Countries Represented

5,300+ Participating

Organizations

225,000 Business

Professionals 50% of the Dow Jones Asian Titans 50

85% of the Fortune 500

70% of the FTSE 100

Marketing & Communications

Innovation & Strategy

Information Technology

Finance

Legal, Risk & Compliance

Human Resources

Procurement & Operations

Sales & Service


Thank you Stig Albertsen Partner, Implement Consulting Group +45.23.38.00.70 [email protected] Zachary Gropper Managing Director, CEB +44.207.632.6508 [email protected]

Implementconsultinggroup.com

Implement Consulting Group Implement Consulting Group is a leading Scandinavia based management consultancy, specialised in driving strategic transformations with a strong differentiator on “making change happen” – delivering documented Change with Impact.

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using sales insights to lead commercial transformations

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