Sales Mastery Workshopsarahgerdes.com/wp-content/uploads/2014/10/CxO... · CSO Insights 2010 report...

© 2003-2013 Mark Dallmeier

Sales Mastery Workshop

CxO Selling, Capturing Spend, Establishing Differentiation, Reducing Sales Cycles

Personal Development Series

Mark Dallmeier CSO/CMO602-410-7793 / [email protected]


Agenda

BackgroundState of the Union (Profession)CxO Priorities – Risks, ConcernsDecision Maker Influencers & How to Differentiate

(approach, dialog examples)Understanding & Navigating the Buying ProcessAwareness & Interest Campaigns


Grounded in Reality - Not Theory

Previous Customers Their Customers / Partners

Value Based Selling Models / New Sales Systems / Spend Capture Strategies / CxO Selling Best Practices

Model, Method ProcessAnalysis

Skill, Strategy & Execution

Benchmarking

Process, Tool& EmployeeDevelopment

Big Deal $100M+ Strategy Dev &

Advisory, Support

http://www.bankofthewest.com/BOW/main.jsp?ChId=c0b1a76de912ef00VgnVCM10000087c35c92____


What’s in it for You

*Midsize and Fortune 500 customer results:

Ave sales cycle time reduction: 38%-62%Ave cost of sales / customer acquisition cost reduction: 28%-55%Ave transaction size growth: 35%-300%Ave revenue growth: 24%-300%Ave top producer attrition reduction: 50%-90%Ave win ratio growth: 50%-100%


State of the Sales Union – Sales Performance & the Sales Profession.


Why Focus on This?

Competitors are looking at the following sales areas and optimizing them:

Goal SettingSelling StrategyTargetingSales ProcessIntegrated QualifyingSales CompNew CustomersManagement CompPipeline OptimizationAccount PlanningCustomer SatCustomer Input/Feedback


State of the Union on Sales Performance

75% of teams report it takes 7-12 + months for sales rep ramp up.

50% of teams report they need help targeting the right prospect.

Lead conversion rates fell nearly 20% between 08-10.

The ability of reps to get prospects to learn about their products isdeclining YOY. The total % of opportunities that result in a win hasreduced YOY.

Over 54% companies reported a need to increase sales skill training.

After 40 + years, sales training company Miller–Heiman admits a huge gap STILL exists betweenworld class sales organizations and all others; this data validates even world class salesorganizations do not follow best practice approaches ALL OF THE TIME.


Market Dynamics & Change = Longer Sales Cycles, More Sales Costs


Market Dynamics & Change = Longer Sales Cycles, More Costs, Smaller Deals

CSO Insights 2010 report shows that broad changes in businessdecision making and buying practices are not being addressedthrough legacy sales models and training methods. Revenue percustomer are down from 2008-09.

There is a lower % of sales people achieving quota, changes in themarket are freezing decisions in many companies, sales cycles areextending YOY - resulting in higher sales costs and more “no decisions”.

Over 80% of sales teams report a lack of control and visibility intochanging customer buying behaviors, process, motivation.

New innovative sales models and approaches are needed to address changingmarket conditions, new skill and acumen requirements.


Question:

We (I) update our (MY) sales process and account strategies annually to maintain alignment with changing market conditions and how customers are buying/making decisions.

Answer Options:A for YesB for MaybeC for I don’t KnowD for No

75% of sales people reported that they do not have a comprehensive and standardized account planning approach.


Personal Performance Tracking*How do you know your on your game?


Personal Performance Metrics“The Science”

1. % of GP Quota:

2. % of GP Quota by Month/Qtr:

3. % of PSO Quota:

4. % of PSO Quota by Month/Qtr:

5. Average GP%:

6. Pipeline Multiple (3X Monthly Quota):

7. Pipeline Conversion Rates (10%-70%): Calls, Contacts, Conversations, Closures:

8. Forecast (Commit) Close Rates (70%-100%):

9. Services Attach Rate:

10. Storage/Networking % of Sales:


Personal Performance Metrics“The Art”

1. New C Level Relationships by Quarter:

2. New D level Relationships by Quarter:

3. New Industry Subject Matter Expert or Partner Relationship:

4. New Customers by Quarter:

5. New Customer Referrals:

6. New Customer Sales from Referrals by Quarter:

7. New Information or Knowledge About Markets/Clients Learned:

8. New Information or Knowledge Used w/ Customers:

9. New Lessons Learned of Knowledge for Managing Up:

10. New Lessons Learned or Knowledge Around Team Building:


Competitor Sales Model & Execution Holes - Cracks in the Foundation.


Realities of Custodial and Transaction Based Sales Models

Difficulty in competing with unique value proposition & differentiation – “me too selling”

Forces prospects to approach company as “vendor” and apply margin / price reduction pressure

Maneuvers company and solutions into commodity buckets - separating components for negotiation

Slows company from establishing thought leadership with CxO levels and positioning unique value of knowledge / competencies / process - value

Focuses account teams on 30, 60, 90 day opportunity identification, proposal, & closing

Embeds behaviors and practices for identifying and selling spot solutions and responding to account requests / demands / RFI, RFP

Typically has immature strategic account analysis, planning and sales execution methods, practices

Sales organizations are augmenting existing custodial and transaction based models with value based models - differentiating themselves and the company’s offerings.


Key Selling Trends – Holes to Exploit

Understand the client’s buying & decision making process.

Research and analyze client business, spend areas and market drivers to understand where your solutions fit and their potential value.

Ask for input from client business executives (CxO levels) when developing a large solution, account plan or relationship proposal.

Have a plan to displace – beat the competition in each target account.

Ask for appropriate coaching and advice for selling and communicating with clients from your leadership team.

Identify and address critical client decision making steps and milestones during the sales process.

Plan and do appropriate client research prior to sales calls.


Provide clients with a business case summary describing your solution’s positive impact on profit, costs, efficiency as well as business value.

Provide clients with an estimated ROI (return on investment) or TCO (total cost of ownership) for large CAPEX solutions.

Figure out how to use Marketing to accelerate the close of pipeline opportunities.

Sell every client on our unique value and differentiation.

In sales opportunities have CIO / VP of IT Champion advising you.

Get VP/CxO business and IT champions to sign off on a relationship vision.

Get feedback and input on our solution and proposal drafts from our client’s executive levels prior to submitting a final document.

More Selling Trends – Holes to Exploit


Pros - Cons

A: Value Added C: TransactionalB: Price

Cons•Longer Time to Revenue•More Resource Required•Responsiveness Key•C Level Relations Critical•Controlling

Pros•Larger Revenue Stream•Larger Transactions•Greater Pull Through•Predictability•Long Term Agreements•Influence Budget, Spend•Ability to Differentiate

Cons•Little Impact on Budgets•Lower Margins•Few C Level Relations•Open to Commoditization•Lack of Differentiation•Smaller Transactions•Reactionary vs. Proactive

Pros•Strong Cash flow•Frequent Transactions•Fewer Resources•Shorter Time to Revenue•Low Concentration Risk

Cons•Commoditized•Risk of Displacement High•Zero Influence on Budgets•Lowest Margins•Lowest Differentiation•Small Transactions•All Reactionary•Zero Control•Minimal Forecasting

Pros•Ongoing Cash Flow•Minimal Resources•Self Service


CxO Priorities, Selling & Buying Trends –Obstacles to Overcome.


CxO Focus: Opportunities for Growth –Reference in Core Messaging

Image Source: PWC 2008


CxO Opinion: Concerns & Risks…Look at “Risk” Areas in 10Ks of Prospects.

Image Source: PWC 2008


CxO Priorities

Image Source: IBM


Real World Example of CxO Priorities –Intel Corp 10K and Internal Discussions

Business Drivers & Intel’s Change, Reorganization:Declining revenue, income, margin, market shareTransition, Retiring of Executives Running Major BusinessHeadcount Reduction, IT and Marketing are taking the largest hitsDivestiture, Selling Off Unprofitable Business UnitsReduction of Operating Expenses by $1B 06, $2B 07 and $3B 08

Relationship Value Opportunities:Intel CIO cutting additional $40M out of IT Budget; $5M in Savings was directed toward their Global WAN spendCFO, CIO directive to pursue all Out-tasking and Outsourcing opportunitiesDeeper staff cuts impacting Intel’s ability to continue ops without staff aug outsourcingProcurement focused on consolidating vendors to reduce overall costs and interested in collaborating with vendorsTech and engineering relationship in a status of flux; concerned about their jobs and what out-tasking / outsourcing means to them SCQI - Supplier Continuous Quality Improvement Program Strategy


1) Real World Example of CxO Priorities –How to Communicate Your Value

Industry &Intel PlatformDevelopment

Supply Chain Agility &

Efficiency

Operational Excellence &

BusinessGrowth

IT as a CoreCompetitiveCapability

Intel Revenue, Margin, Profit, Market Share & Share Value Growth

Profits &ProductivityEnvironment

CollaborationOn TechnicalArchitecture

Infrastructure& Data Center Optimization

EvolveStandards& Practices

InnovationAcceleration

Through TechR&D Partnering

SCQI - AdaptRelationshipto Add Value

Service Provider Service Foundation Supporting Intel IT & Business Goals

Intel’s IT Initiatives / Focus Supporting Corporate Goals


Addressing Risks Via a Differentiated Selling & Relationship Approach

StrategicActions of

Competitors

EconomicDownturn

CompetitivePressure

FluctuatingDemand

MarketAcceptance

Share Value& Market

Management

Revenue& MarginGrowth

OperationalExcellence

R&DInnovationImperative

Cash Flow &Profit Growth

Messaging Drivers Taken From Intel’s 10K

We will help Intel and you achieve your goals and manage risk through our differentiated approach…

Manage &Optimize NewRelationshipStructure

Introduce RevisedSolutions, RelationshipVision, Focus,Structure

Assess andRefocus Sales & Service Orgs Based on New Requirements

Updated Solution & Relationship Focus Basedon Intel Initiatives

Frequent Relationship Planning After Capability Review

Ongoing Transaction and Relationship Management

Business & TechnicalInitiative Review, Support & Timing


2) Real World Example of CxO Priorities –How to Communicate Your Value

Chevron Market Factors Impacting Customer BusinessGovernment RegulationsDeclining output of worldwide flow of oil and natural gasGeopolitics from major oil producing areasEnvironmental Pressures

Top Corporate Strategies/Objectives:Find new fields for oil & gas productionImprove technology at existing refineries for better productionWork with world-wide governments to define energy alternatives before Safety

Top IT Strategies/Objectives:Deploy next generation data network Review of EDS outsourcing to insourcingMobility StrategyFuture - wireless campuses


Transform the Chevron business with ITAlign IT investments with the BusinessDeliver on Roadmap initiativesOperate with ExcellenceStep change in Information ManagementBuild organizational capability

IT Mandate, Imperatives and Initiatives

Operationalize critical application deploymentsBU specific investmentsImprove Operational Excellence performanceIncrease business efficiencyAddress obsolete technologiesEngineering capabilities for the Gas Value ChainMeet new regulatory requirementsPlanning GIL3 / IM deploymentBuilding IT Organizational Capability


CIO Interaction with Chevron Business


Chevron IT Leadership Landscape


Positioning the Conversation

UnderstandChevron’s Focus / Priorities, IT &BusinessRequirements

PrioritizeSolutions BasedIT & BusinessPriorities – Spend,Productivity, Profit

Help DefineSolutionRequirements,Business Case& Timing

ProvideResources ToSupport Timing &Roll Out

1 2 3 4

Grow profits in core areas, Commercialize gas resources, Improve margins and business returns, Invest in profitable renewable energy sources

Growth Productivity Profit

IT & Business Initiatives / Projects

ABC Co Supporting Chevron’s Priorities

ABC Co - Chevron Relationship Model

30 – 60 Day Timeline – Next Steps


Aligning to Procurement vs. Fighting


Aligning to Procurement

“Buyers don’t start figuring out theirbehind-the-scenes issues until afterwe’ve met them, except in cases whenbuyers call us and buy… in which casethey’ve made all of the behind-the-scenes buying decisions before theycontacted us…In most cases salesenters the process at the wrong time,pitching a solution to a small portionof the ultimate Buying Decision Team,and have no tools to help buyers dowhat they must do first: manage all ofthe off-line buying decisions that needto happen for them to get buy-in forchange…before they can buy anythingthey first look into their current teams,partners groups, rules, historicdecisions for a simple resolution to abusiness problem.”

Sharon Drew Morgan – Author andExpert of Buying Facilitation


Understanding Procurement


Understand & Add Value to the Process!


Messaging with IT/Procurement

Qwest Proprietary

Partnering onData Center & IT

InfrastructureArchitecture

Flexible PricingTerms &Service

EnhancedRelationship& SupportPractices

CustomizedSolutions

LocalizedResponsiveResources

ABC Co Strategies Supporting IT & Corporate Goals

IT Imperatives Supporting Corporate Goals

Personnel& Process

Development

Superior ProjectDelivery

BusinessTransformati

on

IT&BusinessAlignment

OperationalExcellence

Chevron Goals: Grow profits in core areas, Commercialize gas resources, Improve margins and business returns, Invest in profitable renewable energy sources


CxO Decision Drivers - Impacting the Who, What, When of Buying

Founder / Owner

President / CEO

CFO / GM CIO / Dir IT, Dir Ops

VP Sales

Cash Flow Fear of Loss / Failure

Stability, Predictability /

Change

Fear / Power Success / Winning

Lifestyle / Change Financial Gain / Wealth

Success Ego / Success Financial Gain / Risk

Fear / Risk Power Financial Gain Control / Change Fear

Control Pride Fear Pride Relationships

Pride Control Pride Recognition Recognition

Legacy Longevity Control Longevity Pride

Question: Do you know how CxO’s are influenced in each of your clients? 90% of sales teams reported “Maybe or “No” when asked if they “gather input from client executives when developing a solution and relationship proposal”


Industry Influencer Examples

Top Buying InfluencersSupplier Product Literature

Other C Levels (Peers)

Trade Publications / Advertising

Consultants

Trade Publications Editorials

Trade Shows

Professional Societies / Associations

Books (Academic and Ongoing EDU)

Computer / Software Company Sales Rep

Seminars Sponsored by Vendor

Dealer Sales Rep (Reseller)

President / CEO CFO / COOFear of Loss / Failure Stability / Predictability

Financial Gain / Wealth Financial Gain

Power Risk Mitigation

Pride Fear

Control Pride

Longevity Control

Sales People and Sales Strategies are notALWAYS the top Influencing factors –Discover what the top 3 influencing factorsare in your market – survey your clients!


Internal & External Influencers – Analysis of This Helps You Plan and Target?

Internal Influencers / Macro, Micro Economics:

CxO Personal Influencers, Executive Team DriversBusiness /IT Goals, Objectives of CompanyValue Creation: Stock Price, Book Value, Market CapRisk, Reward, Legal ExposureCash Flow, Revenues, FinancingHyper Growth, International ExpansionMerger, AcquisitionsC Level Turn OverLay Offs, Consolidation, Reorganization

Peer Group – Sphere of Influence:

Executives / PeersAdvisors, Strategic PartnersSocial or Industry OrganizationsSubject Matter Experts

Reoccurring trends in these areas can become the “profile” for the “right” types of prospects


Execution Details That Impact Purchase Decisions

Sales Experience and Execution.

Implementation Experience and Execution.

Support Experience and Execution.

Features, Benefits, ROI, TCO, Financial and Business Impact of Solutions.

Case Studies, Testimonials, Peer References and Clear Sales,Implementation, Delivery and Support Practices and Service LevelDescriptions (and visuals) Help Close Deals.


Understanding How Buyers – Buy.


The Dilemma – Understanding (Buyer) & Navigating (Seller) the Stages

Corporate Decision Making Stages

Objective, Goal Creation (future)Business Case DevelopmentRequirements Gathering / ChangeEstimation / Capital Alloc / BudgetVendor Identification Contact / EvalVendor Negotiation / SelectionProject Planning (if needed)Procurement / OrderingDelivery –ImplementationMaintenance

Individual Decision Making Factors (Stages)

Emotional, Mental, Monetary NeedRisk/Reward, Fear of Loss, Desire, GainCash Flow, Lifestyle, Ego, Power, ChangeImpact Personally, Professionally, Family –

Agreement Amongst Parties is KeyDecision Influenced by Peer GroupEmotional Purchase Justified by Logic orLogical Purchase Justified EmotionallySocial Networking Influencing New SalesPeer / Family Referrals Strongest Results

Large companies have a formal procurement and decision making stages – YET MOST AREFLUID BECAUSE OF TODAY’S ECONOMY. SMBs and Mid Market companies often do not. Howdoes your sales process, approach and sales team influence and align to the stages above? IfABC Co would help clients with Buying Facilitation IT WILL DIFFERENTIATE YOU.


The Buyer’s Dilemma

80% of sales people responded “Maybe” or “No” when asked if they “ensure a client is ready OR able to buy AND use their product / service”.

Navigating Corporate Decision Making Stages

Objective, Goal Creation (need a clear vision of the future)Business Case Development (need to quantify risk/reward/impact)Requirements Gathering / Change (need stakeholder input/buy in)Estimation / Capital Alloc / Budget (need capital, budget, reallocation)Vendor Identification Contact / Eval (why you, why now, differentiation)Vendor Negotiation / Selection (risk/reward/cost/value/longterm)Project Planning (transparency, reporting, proactive)Procurement / Ordering (centralized, simple, self service)Delivery –Implementation (simple, seamless, easy, managed)Maintenance (proactive, planned, variable)


Take Away – Health Check for Navigating the Process

I know the Business and IT goals, objectives, initiatives for the prospect.I know the Roles, Responsibilities of the Executives.I know what business, competitive or economic drivers impact the prospect.I know what the company’s infrastructure contains.I know who runs the infrastructure / data center / desktops.I can get access to the people that run IT and the business units.I know what IT’s goals, priorities are for supporting, achieving business goals.I know who my competitor is.I know what this company spends money on - in IT.I know how much money this company spends in IT and in what areas.I know what their procurement process is and how to navigate it.I know procurement’s directives, objectives and have aligned our company to

add value to those directives.I know how the company is planning on making a decision and when.I have been told what the decision criteria is.I have provided a risk and reward or ROI/TCO justification of why ITPI have gained a verbal commit on our overall relationship vision and solution

proposal and have ordering, pricing, delivery, legal terms, timing approved.


Awareness & Interest Campaigns, Tactics.


Approaching Major Accounts - Tactics

ProcurementOpen dialog with procurement; discover if they are rationalizing vendors,

looking for new innovative offerings and capabilities that add more value.Uncover their vendor selection criteria, levels and ask for a presentation or

overview of that over coffee, lunch or an onsite visit.Ask to be invited to the next vendor day or request materials from previous

vendor days. Complete new vendor packet if this is an “ideal” target and is open to looking at new vendors.

IT, Business UnitsStaff Augmentation, Out tasking; approaching company with consultants or

tech talent – promoting capabilities.Approaching company around tech or business efficiency briefings,

communicating how other companies have taken costs out of their business through technologies, etc.

Focus on business events, M&A Integration, Expansion, Disaster Recovery, Consolidation, Cost Containment, Visibility and Agility, etc.


New Account Penetration Health Check

Regional or Named Account Snap Shot

Understand who the execs are in the company and what events they go to; philanthropic, non profit boards.

Know what other large and small competitors are doing to create awareness and interest in the region.

Crash their events – with a prospect or former / current customer.Ask potential clients if they have been to these events and if they liked it, if

they didn’t, ask what they would change.Know your competitors messaging, positioning, capabilities.Identify the holes in competitors approach and exploit them – do what they

don’t or wont.Also, approach the sales/marketing people in the accounts – if you think you

can add value to them personally or the offerings you have can make their life easier and more productive.

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