How to Win against the Competition

© 2013 IBM Corporation

IBM SWG Europe

Partner Sales Skills Program

“How to Win against the Competition ”

Tom Cairns : Europe IOT Leader, Sales Skills Development, IBM Software Group Channels



Improve Yield from your Pipeline and Close more Deals

The Sales Execution Method

“How to Win against the Competition – Focus on Sales Execution Skills”


SALES TRANSFORMATION …………..The Sales Execution Method (SEM) Workout to Win (WOW) Program

The Challenge – Impact of WWW – “The buyers know more than the sellers”

The Mission – improve sellers sales skills, coach sellers in their accounts

The Plan - Directly Target Core/Invest BP’s. Coach VADs to do the rest

The Results – Those adopting the SEM WOW Program rewarded by a 15% to 36% sales growth, quality pipe and faster deal progression

The SEM WOW Program – Creates more opportunities, differentiates your solutions and so closes more sales – it gets results

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Providing the right Sales Tools for the right job



3 Key Objectives to drive Sales Execution

1. Identify the Strategic Business Outcome

2. Co-Develop a Compelling Event

1. Share Ownership of the Buying Process

24© 2014 IBM Corporation


Top 5 Reasons Buyers Say That Vendors Lose?

5.) All looked the same so we chose on price.

4.) I never met anyone from that company.

3.) We didn't like their sales approach.

2.) We were more comfortable that the other vendor would deliver what we needed.

1.) The vendor didn't present a business solution that addressed our business problem.

Source : Sirius Research 2012-2013



Recent SELLING RESEARCH ( sources; McKinsey and Co and Forrester )

70% of executives perceive commoditization and lack of competitive differentiation is their NUMBER ONE GROWTH THREAT

95% of all C level executives and managers report that they are overwhelmed by the amount and complexity of data and information

So, its a great time to be in sales, BUT…………………..

Only 15% of executives rated their sales call as providing VALUE TO THEM

Only 7% of executives said they would schedule a follow up meeting

6 © 2014 IBM Corporation


The Changing Landscape….

"The internet has changed the timing and nature of the first interaction that sellers have with buyers. Today's (B2B) buyer wants to go into the buying process as far as possible before having any contact with salespeople. Buying experiences that begin electronically are becoming the rule, and that trend will continue."

- John Holland, Tim YoungRethinking The Sales Cycle



If they have to call you… you are already late….

The average purchase decisionIs 57% complete, and more that 10Information sources have been consultedby the time a supplier is engaged

The average B2B purchase decision is 57% complete, and more than 10 information sources have been consulted, by the time a supplier is engaged.



Selling Yesterday

Leads

Opportunities

Qualified Opps

Contract

Customer

Latent PainBurn VictimNot a Priority

10-20% Looking

Salesperson has information that prospect does not have. Salesperson assists in creating vision



Selling Today in Changing Buyers Landscape?

Leads

Opportunities

Qualified Opps

Contract

Customer

Latent PainBurn VictimNot a Priority

10-20% Looking

Buyers create their own buying

vision without Salesperson

InformationEverywhereInformationEverywhere

Social Networking

Social Networking

Internet, Websites,

Blogosphere

Internet, Websites,

Blogosphere

Data, Smartphones

mobile computing

Data, Smartphones

mobile computing

Salesperson has information that prospect does not have. Salesperson assists in creating vision



SO, WHAT DO WE DO ?

WE NEED TO CHANGE THE CONVERSATION NOW



WE need to Change our Conversations – earn the right to ask questions …… by showing INSIGHT to Customer Business Problems linked to Outcomes

GRAB Customer Prospect Attention by showing INSIGHT to key Business Problems

INDENTIFY Problems that BLOCK their key STRATEGIC BUSINESS OBJECTIVES

QUANTIFY IMPACT of the BUSINESS PAINS caused by Business Problems

SEPARATE their TECHNICAL PAINS and LINK each to specific BUSINESS PAINS

HIGHLIGHT YOUR UNIQUE CAPABILITY to solve TECHNICAL PAINS to then remove linked BUSINESS PAINS and so achieve BUSINESS OUTCOMES and OBJECTIVES

NOW PROVE IT WITH YOUR UNIQUE SOLUTION

CUSTOMER UNIQUE VALUE is achieved



The Proven Sales Execution Method

“Selling is a Science and an Art”

© 2013 IBM Corporation© 2010 IBM Corporation3

THE PROVEN SALES EXECUTION METHOD

PLANNING SELLING NEGOTIATION/CLOSING



The SALES EXECUTION METHOD

PLANNINGBUSINESS PLANNING

BUSINESS DEVELOPMENT

SELLINGDeal PROGRESSION “ health check”

OPPORTUNITY IDENTIFICATION AND QUALIFICATION

UNDERSTAND INFLUENCE

DISCOVERY to gain Insight

SOLUTION, DEFINITION & PROOF

ALIGNMENT, Agreement

NEGOTIATION & CLOSINGALIGNMENT, Negotiation, Won

IMPLEMENT

CONFIRM



The SALES EXECUTION METHOD…with WOW Sales Tools

PLANNINGBUSINESS PLANNING - TERRITORY PLAN and ACCOUNT GROWTH TOOL

BUSINESS DEVELOPMENT – PROSPECTING, PIPELINE & BUSINESS DEV. TOOL

SELLINGDeal PROGRESSION “ health check” – THE “ WOW SELLER CHECKLIST” TOOL

OPPORTUNITY IDENTIFICATION, QUALIFICATION – QUALIFICATION PLUS “EX3” TOOL

UNDERSTAND INFLUENCE - INFLUENCE MAP TOOL

DISCOVERY to gain Insight - CLIENT VALUE IMPACT PROFILE TOOL

SOLUTION, DEFINITION & PROOF – DEAL WIN SCORE CARD TOOL

ALIGNMENT, Agreement - CLIENT VALUE DIAGRAM TOOL

NEGOTIATION & CLOSINGALIGNMENT, Negotiation to win - NEGOTIATION GET – GIVE TOOL

IMPLEMENT - IMPLEMENTATION PLAN TOOL

CONFIRM – NEW REFERRALS PRE – CALL PLANNING TOOL

© 2014 IBM Corporation17

Providing the right Sales Tools for the right job


Now for the format we’ll follow to guide us through each step

of the sales process…


Step #Step #

GOAL: Goal of the Stage

TOOLS: • Key tools in Support of the stage

ACTIVITIES: • Key Activities of this Stage


Step #Step #

CHECKLIST: Checklist of milestones that should be met prior to moving

on to next Stage

VERIFIABLE OUTCOMES:

Key Outcome of this step that should be expected before moving on


And NOW for a little…Workout and Exercise


The WOW Checklist – The Compass that guides us

“Are we going to reach our Destination?”













CONFIRM – NEW REFERRALS PRE – CALL PLANNING TOOL 69



Opportunity Identification

“Every Problem is an Opportunity”


Step 3 WORKOUT – EX3 Tool Step 3 WORKOUT – EX3 Tool

WorkoutExercise

Objective: Define whether you have a qualified opportunity – Articulate the following……

1.What is the Business Problem ?….and the associated Business Pain?2.Which LOBs does this business problem impact?3.In client terms…what is the potential financial impact of……

a) The business pain? b) Solving the business pain?c) Doing Nothing?

4.Client sees the value of solving the business pain? 5.What is the implementation timeframe? Compelling Reason to Act or Compelling event? 6.What is the anticipated buying process? 7.Will we win? What are your unique differentiators?

Outcome: Qualified with Action Plan

SEM WOW: CRM: Customer:

Opportunity IdentificationIdentified / Validating Analyze Impact

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PRIORITIZE YOUR OPPORTUNITIES – PROSPECTS SCORECARD

26 IBM Confidential

1. ORGANIZATIONAL BASICS ( do not pursue the deal if either is NO )1. Does the customer have significant current or potential

spend?2. Is the customer financially sound

2. OPERATING ENVIRONMENT (1 point for each yes)1. Does the customer face external pressures to change, such

as new industry regulations or loss of market position2. Are there internal pressures to change, such as new

management or a rethinking of strategic direction?

3. VIEW OF THE STATUS QUO (2 point for each yes)1. Is there organization-wide discontent with the status quo?2. Does the current supplier fall short of expectations?3. Is the customer unhappy with existing work processes?

4. RECEPTIVITY TO NEW OR DISRUPTIVE IDEAS (3 point for each yes)1. Do internal stakeholders frequently share best practices?2. Do they attend conferences and other learning events3. Do leaders look to the broader organization for ideas?

5. POTENTIAL FOR EMERGING NEEDS (4 point for each yes)1. Do stakeholders engage in constructive dialogue when their

assumptions are challenged?2. Do they seek to continue conversations about industry

benchmarks and trends?3. Is there at least one confirmed “mobilizer” in the company?

YES NO

UNKNOWNYES NO

TOTALSOURCE; HRB JULY/AUG 2012


PRIORITIZE YOUR OPPORTUNITIES – EVALUATE YOUR PROSPECTS

SCORING METRICS

27 IBM Confidential

0 - 10 10 - 20 20+

CONSIDER NOT PURSUING THE OPPORTUNITY

CONSIDER PURSUING THE OPPORTUNITY WITH LIMITED RESOURCES

CONSIDER PURSUING THE OPPORTUNITY WITH FULL RESOURCES

SOURCE; HRB JULY/AUG 2012


Discovery to gain Insight

“Insight ……….develop with Empathy”


SEM Stage – Discovery & Insight

The Client Value Impact Profile (CVIP)

Use the CVIP as a guide to identify and articulate the Partner/IBM solutions client specific value that is meaningful to decision makers. The CVIP captures and connects Strategic enterprise objectives with the Partner/IBM solutions enabled business outcomes

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Requires 15 additionalheadcount

Increased HW, Support and maintenance cost

IT is 16% over budget

$15 million spentOff contract

Frustrated Marketing team

20% turnover inmarketing

Report distribution takes four days

Users do not have right data in a useable format

Slow decision making in marketing

All report developmentis in IT

Too many IT Resources to meet user rpt req

Need different reporting tools

SysAdmin and Servers for each reporting tool

Data is stored in multiple systems

No visibility to spend by vendor

Missed three Major market opportunities

Client Value Diagram

10% increase in costs Y/Y

Improve operatingmargin by 8%

Grow market share 3%

Market share declining3% per year

Operating margin 8%below expectations

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Value Proposition – Solution, Definition & Proof

“Value is like beauty……….it’s in the eye of the beholder”


Leveraging Your Work in the CVIP

Objective Current Barriers Desired Outcome

Stakeholder

Metric Value Driver

Capabilities

What are you trying to do? What is the need?

Business Pain - Why can’t you do it today?

Technical Pain – Why can’t you do it today?

What does success look like to you?

Who cares about this most?

What is the highest level KPI that this can positively affect?

What in IBM’s solution enables this?

Need to reduce time wasted on low value customers

Can’t find revenue contribution by customer

No access to the right information since data is stored in multiple systems

Increase opportunities by identifying key markets

John Smith, VP Marketing

Increase sales / revenue by 4%

Access to all data source simultaneously to provide federated queries

IBM ahead of SAP

This will help you analyze revenue contribution by customer so you can identify key markets and focus on your goal of increasing sales by 4%

The federated query capability that is so unique to IBM Cognos 10

The case study for Customer XYZ highlights that they chose IBM over the other vendors they were evaluating because of …

Establish Credibility

State the Advantage

Close with a Value Statement

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Negotiating and Closing

“Never give without getting”


Sales Tools














Negotiating and Closing – The No 1 Issue in selling?

The Theory – If salespeople are not making their numbers they must have a problem closing

The Fact – The so called skill of asking for the order is NOT the big problem; the real problem with closing is not defining or diagnosing the prospect’s problem and not creating the link to value

The Solution – The best close is NOT to have a close……using the Sales Execution Method with solution selling techniques results in Closing being the natural evolution of the sales process

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Negotiation Worksheet The Give/Get List Template - Example

Our Priority

GET GIVE Projected Customer

PriorityElement

Potential Value

Potential Value

Element

1 Larger Volume deal $100k $15k Payment terms/special financing 2

2 Become a reference $?k $20k Training discounts 1

3 Lower cost of sales by avoiding Pilot

$5k $10k Short-term licenses 4

4 Referrals for new business prospects

$?k $10k Refund on proof of concept already conducted

3

5 Pay software cost for Phase II at same time as Phase I

$2k $1k Reduce software costs 5

Partner / IBM NON NEGOTIABLES CustomerMaintenance Discounts

Free Consulting

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Successful Closing and Negotiation

Follow the Sales Execution Method steps to ensure closing is a natural evolutionary part of the sales process

Build a Get/Give List

Create a Negotiation worksheet for each opportunity approved by your manager

Create specific Negotiation Call Plan for each interaction

Negotiate from a position of strength – have a strong Pipeline

Final agreement = sales success

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pwatkin

Tom, I'd like to include the point that if they have documented the timeline and gained agreement from the customer, perhaps in a project timeline, the step of "signing the deal" is a non-event as its "just part of the process" that gets the sponsor to their implementation deadline. (if one exists)


IBM SWG Europe Partner Sales Execution Skills Program

NEXT STEPS?


THE SEM WOW PROGRAM…….

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An Example SEM WOW PROGRAM …….



Sales must register for 1

of the 4 available

sessions on each subject

An Example Partner SEM WOW PROGRAM …….

How to Win against the Competition

Technology

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