Sales strategy workshop 2013 slideshare
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Transcript of Sales strategy workshop 2013 slideshare
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
PARTNERNETWORK
KEYRESOURCES
20 MIN
4
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
PARTNERNETWORK
KEYRESOURCES
COMMERCIAL / BUSINESSSTRATEGY
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
PARTNERNETWORK
KEYRESOURCES
1 What is the customer’s buying behaviour?
2What is our value
proposition?
3Who are we going to target and why?
4What type of relationships do we want?
5How are we going to do it?
1. What are their problems and needs?
2. What type of “value” are they looking for?
3. How do they typically buythis type of product / service?
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
PARTNERNETWORK
KEYRESOURCES
1. Who are the main players and role do they play? Select a few key customers part of the segment.
2. What are the main problems / issues the customer is facing? To uncover them discuss the following items in group:
1. Information: What does he see and hear? Where is that information coming from?
2. Emotions: What do they think and feel?
3. Behaviour: What do they do?
3. Based on your information map identify which are the customer’s problems and which are the solutions (gains) the customer is trying the achieve.
Source: Dave Gray, “GOGamestorming”
10 MIN
What are their customers doing?
What are their suppliers doing?
What are their competitors doing?
Political / Legal Changes
Technological Changes
Economical Changes
Social Changes
Others ….
What is their opinion on all these changes?
What do they fear?
What do they like?
What do they do more, less?
What have they stopped doing?
What have they started doing?
What do they
see?What do they
hear?
What do they
think and feel?
What do they
say and do?
What are their main problems / pains? What do they try to achieve / gains ?
Source: Neil Rackham, “Rethinking the Sales Force”
Extrinsic Value Buyers
Intrinsic Value Buyers
Strategic Value Buyers
What is
the
price?
How will it
solve our
problems?
How will it
improve our
business?
1. What are their problems and needs?
2. What type of “value” are they looking for?
3. How do they typically buy this type of product / service?
Source: Neil Rackham, “Rethinking the Sales Force”
Str
ate
gic
or
cost
im
port
an
ce o
f th
e su
pp
lier
’s p
rod
uct
Difficulty of SubstitutionLow High
Leverage Size
Shop
Partner
Manage Risk
Source: Neil Rackham, “Rethinking the Sales Force”
Stra
tegi
c o
r co
st im
po
rtan
ce o
f th
e s
up
plie
r’s
pro
du
ct
Difficulty of SubstitutionLow High
Leverage Size
Shop
Partner
Manage risk
Which mobile phone should I buy?
For which platform should we develop our app?Which bank will give us the best rate?
Which training organisation should we use?
1. What are the features, advantages and benefitsof your value proposition?
2. What is your sales pitch?
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
PARTNERNETWORK
KEYRESOURCES
Benefits
Advantages
Features
“So what?”Ways in which the features can be used to help the user.
“What can your product do?”Raw facts and information about the product.
“What is it for me?”Ways how the product can be used to meet the needs of the user.
This mobile phone has a colour screen.
This mobile phone has an agenda function.
You don’t have to keep two agenda up to date because your phone’s agenda will synchronise with your outlook.
You said you wanted to know whether you received emails or phone calls during meetings, well with this phone you can do that by setting it on vibrate mode.
This phone is very light don’t you think?
FEATURE ADVANTAGE BENEFIT
1. Select at least 5 features of your value proposition
2. For each feature identify at least one advantage and one possible benefit.
3. Identify which 1 or 2 features really makes your company and product stand out from your competition.
20 MIN
1. What are the features, advantages and benefits of your value proposition?
2. What is your sales pitch?
1. Based the information from the FAB and from the customer intimacy map write down your own sales pitch.
HINT: A sales pitch is usually small. Do not try to put too much information.
20 MIN
For
who is unsatisfied with
Our product is a
that
unlike
we have assembled a product that
<ideal customer>
<current alternative>
<product category>
<key benefits/advantages>
<competition>
<unique differentiators>
1. What makes a customerattractive to us?
2. What makes us attractive to our customers?
3. How to differentiate our customer approach?
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
PARTNERNETWORK
KEYRESOURCES
Customer attributes
Risk reduction: working together
‘Hard’Nature of criteria
‘Soft’
• Spend
• Turnover
• Volume
• Cost to serve
• Profit
• Contribution
• Price
• Growth
• Strategically important
purchase
• Appropriate decision-
making structure
• Right attitude to
relationships
• Prepared to pay for
value
• Prepared to invest
• Member of targeted
segment
• Strategic fit
• Want non-standard
solutions
• Specifics (e.g. Speed,
compatible systems)
• Compatible services
Customer needs
Opportunities for product/service differentiation
Outcomes
Financial outcomes/profit
In groups of 5 people:
- Select 1 type / segment of customers within your group.
- Select 5 to 6 criteria that define the attractiveness of your customers.
- Attribute a weight to each of the criteria.
- Take 2 customers (preferably extremes) and rate their attractiveness
30 MIN
Customer attractiveness factors (CAFs) 1) Relative
importance
rating
2) Customer A
rating 1-10
3) Customer A
Score (=1x2)
2) Customer B
rating 1-10
3) Customer B
Score (=1x2)
100% Total = Total =
Examples of customer criteria when looking at their suppliers:
• Product/service range
• Product/service quality
• Product/service adaptation to Customer’s needs
• Quality of support services
• Price
• Associated Services (e.g. technical advice)
• Expertise
• Joint projects, R&D etc.
• Reputation and image of supplier
• Past experience of working with supplier
• Quality of sales/KAM/Customer service staff
• Quality of relationships
• Easy to do business with
• Geographical spread
• Value for money
In groups of 5 people:
• Select 5 or 6 criteria which you believe are the most important for your customers.
• Attribute a weight to each of the criteria.
• Put yourself into the shoes of your customers and see how they would rate your own company.
30 MIN
Business Strength 1) Relative
importance
rating
2) Customer A
rating 1-10
3) Customer A
Score (=1x2)
2) Customer B
rating 1-10
3) Customer B
Score (=1x2)
100% Total = Total =
In groups of 5 people:
• Select 4 or 5 of your customers. Preferable small and large customers.
• Complete the scorecard your just made for each of them and plot the result on your quadrant.
30 MIN
1. What makes a customer attractive to us?
2. What makes us attractive to our customers?
3. How to differentiate our customer approach?
Att
ract
iven
ess
12
34
56
78
91
0
1 2 3 4 5 6 7 8 9 10
Business strength
Star Segments
or Customers
Strategic
Segments or
Customers
Status
Segments or
Customers
Streamline
Segments or
Customers
Invest
Maintain Manage for Cash
Selectively Invest
1. What type of relationships do we have?
2. What type of relationships do we want?
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
PARTNERNETWORK
KEYRESOURCES
Adapted from Millman and Wilson 1994 by McDonald and Woodburn 2000
Customer Strategic Intent
Integrated
Interdependent
Co-operative
Basic
Exploratory
Collaborative
Transactional Collaborative
Stra
tegi
c In
ten
t
Managers
Operations Operations
Administration Administration
Board Board
SalesPerson
CustomerKey Contact
Managers
You CUSTOMERS/PARTNERS
Rating Score
Strongly agree 4
Agree 3
Disagree 2
Strongly disagree 1
Does this statement apply to your relationship with your customer? Score
If our relationship ended, both parties would find it difficult and complicated to exitThere is a real spirit of partnership and trust between our two companies
Together we have produced long-term strategic plans for the development of our relationship and business together
Any information at all relevant to our business together is passed straight on to the client
People at all levels in both organisations are in constant communication with each otherWe have both realised substantial benefits through working together
Total Score
In groups of 5 people:
• For each of the customers you platted on your quadrant complete the customer relationships survey.
• Review with your colleagues if the relationships is in line with the type of customers.
20 MIN
attr
acti
ven
ess
12
34
56
78
91
0
1 2 3 4 5 6 7 8 9 10
business strength
Integrated
Interdependent
Co-operative
Basic
1. What type of sales approach do we need?
2. Which channels should we use?
OFFER
DISTRIBUTION CHANNELS
CUSTOMER RELATIONSHIPS
CUSTOMERSEGMENTS
REVENUE STREAMSCOST STRUCTURE
KEYACTIVITIES
PARTNERNETWORK
KEYRESOURCES
Str
ate
gic
or
cost
im
po
rta
nce
of
the
sup
pli
er’s
pro
du
ct
Difficulty of SubstitutionLow High
Leverage Size
Shop
Partner
Manage risk
Transactional Selling Consultative Selling Partnership Selling
Product and service
characteristics
-Well understood
-Readily substitutable
-Standard items
-Differentiated
-Customisable
-Hidden capabilities
-High strategic and or cost
importance
- Limited substitutability
Key buyer concerns and decision
criteria-Price
-Availability and risk
-Ease of acquisition
-Importance of problem
-Solution fit
-Price performance trade off
-Platform fit
-Value fit
-Sustainability
-Sufficient value for effort
Time horizon -Event -Purchasing stream -Strategic plan
Nature of relationship -Cost based
-Buyer seller
-Confrontational
-Benefit based
-Client advisor
-Cooperative
-Trust based
-Business equals
-Insider
Prerequisites for success -Access to decision maker -Access to influencers -Access to strategy
Nature of sale - Doing the deal
- Simple Sales process
- Short sales cycle
- One or few decision makers
- Problem / Need solving
- Long sales cycle
- Complex sales process
- Large DMU
-Agenda setting
- Boundaries blur – unclear who is
selling and who is buying.
Car Salesperson. Responsible for persuading customers to buy a Suzuki car.
Fleet Service Salesperson. Responsible for persuading Suzuki’s resellers to promote their fleet services.
Distribution Salesperson. Responsible for persuading potential resellers to become a Suzuki reseller.
Source: Neil Rackham, “Rethinking the Sales Force”
IDENTIFYING EXECUTION GAPS
DEFINING PROBLEMS AND NEEDS
IDENTIFY SOLUTION
SELECT SUPPLIER &PRODUCT
PURCHASEDEFINESTRATEGICAGENDA
Transactional SellingConsultative SellingEnterprise Selling
In groups of 5 people:
• Identify what are the different sales and servicing needs of your customers.
• How important are each of these services for your customers?
10 MIN
Expert advise and hand holding
Training
Customisation to specifications
Integrated total solution
On site setup and installation
Self Service
Low prices
Fast Local Support
24 * 7 Support
PERSONAL SELLING
Customer Needs Field Sales Force
Value Added Partners
Volume Resellers and Distributors
Retail/mass Merchants
Call Centres Internet
Expert advise and hand holding √√√ √√√ √ √√ √√ √
Training √√√ √√√ √√ √ √ √
Customisation to specifications √√√ √√√ √ √ √ √√
Integrated total solution √√ √√√ √√ √ √ √
On site setup and installation √√√ √√√ √√ √√ √ √
Self Service √ √ √ √√√ √√ √√√
Low prices √ √√ √√ √√ √√√ √√√
Fast Local Support √√ √√√ √√ √√ √ √
24 * 7 Support √ √√ √ √ √√√ √√√
1 What type of sales targets do we need?
2What are the roles and responsibilities of our sales people?
4What type of sales people do we need?
3 What are the activities part of our sales process?
5How should we manage our sales people?
1. What is our strategy map?
2. What type of objectives, targets and measuresare we going to use for our strategy?
Instructions• In groups by company map
your own strategy map.• Focus on the sales &
marketing activities• Start by identifying the type
of financial objectives you use.
Examples• Financial Perspective
• Sales Volume per period• Profits per period• Orders per period
• Customer Perspective• Customer Acquisition• Customer Satisfaction• Customer Relationship
• Process Perspective• Sales Process• Account Planning process• Account Servicing Process
• Learning Perspective• Competitor Knowledge• Selling Skills• Customer Knowledge• Market Knowledge
30 MIN
Revenue
Better sales
approach
Increase nbr of new customers
Customer must see
the added value of
sales
Better marketing campaigns
Online Lead
generation Tools
Find more events
Sales Training
Sales & Marketing Objectives Measures Targets
• Increase sales revenue
• More new customers• Create a customer
experience
• Standardised consultative sales approach
• Increase follow up on leads
• More and better marketing campaigns to generate leads
• New online tools to capture leads
• Participate at new events• Increase training days
• Sales Revenue
• #contracts
• #leads follow up• #proposal• #proposal follow up
• #of leads per sales person
• #Training days• #Coaching days• #Events Participation
Fin
anci
al
Pe
rsp
ect
ive
Cu
sto
me
r P
ers
pe
ctiv
eIn
tern
al
Pe
rsp
ect
ive
Lear
nin
g P
ers
pe
ctiv
e
• 1.000.000 EUROS
• 1 contract a week
• 8 leads a week• 5 proposals a week• 5 follow up calls a week
• 400 leads by sales person
• Not defined
Instructions
For your own strategy map:
• Complete the objectives
• Define how you are going to measure it.
• Set the targets.
20 MIN
Sales & Marketing Objectives Measures Targets
Fin
anci
al
Pe
rsp
ect
ive
Cu
sto
me
r P
ers
pe
ctiv
eIn
tern
al
Pe
rsp
ect
ive
Lear
nin
g P
ers
pe
ctiv
e
1. What type specialisation do we need in our sales force?
2. What type of roles and responsibilities will we assign to our sales people?
Complex RANGE of Products
SIMILA
RCu
stome
r Need
s1
23
45
1 2 3 4 5
Product DrivenSpecialisation
Geography DrivenSpecialisation
Product / Market DrivenSpecialisation
Market DrivenSpecialisation
Customer Needs
Simple 1 2 3 4 5 Complex
All our customers and prospects have very similar needs.
All our customers and prospects have very specific needs depending on the type of organisation and sector their operate it.
Product Range
Simple 1 2 3 4 5 Complex
All our products are very similar allowing one person to easily sell their all.
Our products are very different and each of them require highly specific knowledge from our sales force.
They manage large scale and
value of sale. Long negotiation,
complex purchase decision,
usage of the product is different
from consumer sale. Main
activities are relationship
selling, and prospecting.
Sales person is not permitted or
expected to take orders. The
objective is to create goodwill or
educate the customer Main activities
are delivering samples, education ad
promotional activities and sales
service.
They seek out new channels
and support existing ones.
Main activities are channel
management, Prospecting,
Training and Recruiting and
entertaining. Additionally some
relationship selling
Salesperson predominantly
delivers the product. Selling
skills as secondary to good
servicing skills. Main activities
are stock shelving, writing up
orders, and checking inventory
.
Their objective and main
activities are providing support
to the sales people who are in
the field.
Maintaining close long-term
relationships with
organisational customers. They
are often involved in team
selling. Main activities are
providing product support,
maintenance and installation
and entertaining.
The objective is to win new
business by identifying and
selling to prospects.
Main activities are Prospecting
and Relationship selling.
They provide support to the
retailers and wholesales to
ensure that their product is well
represented and displayed.
Main activities are promotion
activities and servicing.
Retail sales assistant, customer
chooses freely the product.
Sales person only handles the
transaction. Telemarketing
taking orders from customers
how are calling in.
Position where the salesperson
is predominantly an order taker
Helping the customer to make
their choice and complete the
transaction.
They are involved in complex and
highly technical sales as support of
the sales team. They play a dual
role of sales person and advisor.
Main activities are analysing the
customer’s problems and needs and
proposing a tailored solution.
Identifying potential business
opportunities by analysing market
trends and developing strategies.
Closing new business opportunities
by coordinating requirements;
developing and negotiating
contracts.
Consists of activities that enable the customer to become aware of the needs for your product or services.
Consists of the activities that will stimulate interest with the customer for your product or service.
Consists of the activities that are likely to stimulate your customer to desire / want your product or service.
Consists of the activities that will get the customer to actually purchase your product or service.
AWARENESS INTREST DESIRE ACTION
Applicable for:
- Short sales cycles (1 to 2 visits to close a sales)
- Consumer sales
- Product Based Sales
Prospecting Qualification Presenting Negotiating Closed Follow-up
Consists of activities such as generating, qualifying and distributing new leads.
Consists of understanding the needs and problems of the customer and determining whether the sales person’s products and services can be of value to the customer.
Consists of showing the customer how the supplier’s produces and services will enable them to solve their problems and needs.
Consists of agreeing the terms of the purchase with the customer.
Consists of all the final contractual activities to close the deal.
Consists of all the activities the sales force provides during the after sales of the product.
Applicable for:
- Long and complex sales cycles
- Project Based Sales
- Business to Business sales
Consists of activities that enable the customer to become aware of the needs for your product or services.
Consists of the activities that will stimulate interest with the customer for your product or service.
Consists of the activities that are likely to stimulate your customer to desire / want your product or service.
Consists of the activities that will get the customer to actually purchase your product or service.
EXPLORATION BASIC CO OPERATTION ALLIGNED
Consists of the activities that will get the customer to actually purchase your product or service.
INTEGRATED
Applicable for:
- Long and complex relationships
- Key Account based Sales
- Business to Business sales
InstructionsIn groups of 4 or 5:
1. Select the sales stages tat are more appropriate for your sales process.
2. For each of the stages identify all the key activities that the sales people will need to perform.
30 MIN
Personality:
High energy
Manipulative
High Need to achieve
Risk Takers
Skills:
Prospecting
Presenting
Motivation:
Status
Recognition
Personality:
Team Leader
Professional
Enjoys challenges
Highly Educated
Calculated Risks
Skills:
Problem Solving
Motivation:
Mastery
Purpose
Personality:
Likable, fun
Hard working
Team Player
Likes his autonomy
Avoids Risks
Skills:
Developing
Relationships
Motivation:
Autonomy
Sense of Belonging
Personality:
Happy, outgoing
Service oriented
Not an overachiever
Pleases the customer
Avoids Risks
Skills:
Service driven
Motivation:
Recognition
Customer Needs
Sales Person ProfileNew Product
BuyersNew System Buyers
Established System Buyers
Commodity Buyers
85% 40% 25% 20%
50% 82% 46% 30%
15% 55% 89% 35%
10% 9% 18% 70%
Source: HR The Chally Group: « How to Match the Type of Salesperson to your customers? »
MARKET BASED
The market / customer sales revenues determine whether the sales people are doing a good job or not.
BEHAVIOUR BASED
Adherence to our sales process and activity targets determine whether the sales people are going a good job or not.
CLAN BASED
Adherence to our company’s values and norms determine whether the sales people are going a good job or not.
97
MARKET BASED
BEHAVIOUR BASED CLAN BASED
ADVANTAGES
- Keep sales people focus on results.
- Easy to apply.
- Promote initiative
- Consistent across different people in the
organisation
- Requires very little management
attention
DISADVANATAGTES
- Focus on the end rather then the
means
- Fails to stimulate growth of
professionalism
- Short term focus
- Requires sales people whit a risk
taking profile
ADVANTAGES
- Greater opportunity for behaviour
modification.
- Encourage customer relationships.
- Recognize the difference between
cause and effort.
- Encourages risk averse people to start
a career in sales.
- Applicable where sales people need
very specialised knowledge and skills.
DISADVANATAGTES
- Requires management ability to
observe and diagnose
- Require time for observation
- Requires impartiality
- Likely to be implemented with some
inconsistency across the organisation
ADVANTAGES
- Requires very little management
effort
- Encourages loyalty
- Recognises that selling is a team
based effort.
- Promotes autonomy and initiatives
- Applicable where sales people need
very specialised knowledge and skills
- Applicable in highly volatile markets
DISADVANATAGTES
- Difficult to measure, very subjective
- Lack of outcome focus
- Requires impartiality
- Lacks real accountability
Behaviour or Outcome
Based
Behaviour Based
Outcome Based
Clan Based
Process Knowledge
Perfect Imperfect
High
Low
Ab
ility
to
mea
sure
acc
ura
tely
an
d c
om
ple
tely
InstructionsYou probably will combine all three approaches in your management style. The question is:1. How important is each going
to be. Draw a line connecting the three legs indicating their relative importance.
2. Describe how you are going to implement the approach in terms of management activities, rewards and targets.
20 MIN
In groups of 2 participants:
• GOALS: What are your goals for the this period?
• REALITY: How far are you from realising your individual goals? For which goals are you lagging?
• OBSTACLE: Why are you lagging? Ask 3 times the why question.
• WAY FORWARD: How can we remove the obstacle?
20 MIN
Why?
Why?
Why?