Sell Smarter, Not Harder - the OneTEAM Method - June 2014
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Transcript of Sell Smarter, Not Harder - the OneTEAM Method - June 2014
www.ps-consulting.com.au
Introducing the
OneTEAM Method or
“How to stop losing sales in today’s challenging business environment.”
1
© 2014 Peter Strohkorb Consulting, all rights reserved
www.ps-consulting.com.au
Poor Sales and Marketing team collaboration:
What are some of the Symptoms ?
2
Too many sales reps
are not hitting their
targets
Sales reps can’t find the right
content and are creating their
own marketing material,
instead of selling
Too many sales are lost, or
are stuck at ‘Wait and See’
New sales reps take
6 months+ to ramp up
There is too much price
discounting
Marketing has poor visibility
of what collateral the sales
reps use, or how they use it
Marketing is reactive to the
more vocal sales reps
instead of supporting all
Us and Them’ attitude creates
an unattractive work
environment with poor staff
morale creeping in
© 2014 Peter Strohkorb Consulting, all rights reserved
www.ps-consulting.com.au
What do other Experts say ?
3
“67% of sales professionals do not
achieve their personal sales quota.”
The TAS Group
“~60% of sales pipeline is stuck
with no decision pending.”
Qvidian
"Only 25% of sales leads and
collateral that Marketing creates is
ever used by Sales teams."
IDC
“Less than 35% of a sales rep’s
time is spent selling.”
CSO Insights
“Almost 78% of newly hired sales
reps take 6 months or longer to
become fully proficient at selling.”
Accenture, Connecting the Dots on
Sales Performance
© 2014 Peter Strohkorb Consulting, all rights reserved
www.ps-consulting.com.au
4
© 2014 Peter Strohkorb Consulting, all rights reserved
Our Research shows:
“Organizations with
poor
Sales+Marketing
Collaboration
almost double
their risk of
declining sales.”
www.ps-consulting.com.au
So, how can we raise Sales Productivity ?
5
87% is forgotten within 30 days (Ebbinghaus)
Risky, and ramp up time is costly ($60k+ for the first 6 months) (Forrester, et al)
Stuffing more leads into the sales funnel will not resolve a sales productivity problem (Peter Strohkorb Consulting)
Point solutions are only band-aids that do not deliver ongoing business benefits (Peter Strohkorb Consulting)
MORE
Sales Training?
MORE
Sales Reps?
MORE
Sales Leads?
MORE
Point Solutions?
© 2014 Peter Strohkorb Consulting, all rights reserved
no
no
no
no
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We need a holistic Framework that
addresses all three elements of the
“Productivity Trinity” in the right order:
People first
Processes second
and Technology third
So, how can we raise Sales Productivity ?
6
© 2014 Peter Strohkorb Consulting, all rights reserved
www.ps-consulting.com.au
A holistic Framework to vastly
improve Sales Productivity
through tighter Collaboration
between Sales and Marketing
teams.
Introducing the OneTEAM Method
7
© 2014 Peter Strohkorb Consulting, all rights reserved
www.ps-consulting.com.au
Marketers now understand how they can better support Sales.
They have stopped spending time and effort on things that Sales don’t
use or value. In return, they are now much more appreciated by Sales.
Sales people can now focus on selling. They have regained the
time that they used to spend on creating their own marketing collateral
and on searching for the right marketing content. They perform at a
higher level and feel more supported and appreciated by Marketing.
Sales Reps become more effective. Having the right collateral at
hand when they need it makes them more effective, resulting in more
closed sales, higher margins and better customer retention.
Everybody wants to work with a collaborative team. Your new
team environment attracts high performers, lifting work quality and
staff morale across the entire organization.
OneTEAM Method Results
8
© 2014 Peter Strohkorb Consulting, all rights reserved
www.ps-consulting.com.au
What is the Business Potential ?
9
Sample Calculation 1: Lift lower tier sales reps’ productivity by just 5%
1st Year 2nd Year 3rd Year 3 year
Total
Annual Sales Target (assuming 8% growth p.a.) $100,000,000 $108,000,000 $116,640,000
# of Salespeople 40 40 40
Sales Team Performance Categories
Top Sales Team Revenue Contribution 50% $50,000,000 $54,000,000 $58,320,000
2nd Rate Sales Team Revenue
Contribution 35% $35,000,000 $37,800,000 $40,824,000
Bottom Sales Team Revenue Contribution 15% $15,000,000 $16,200,000 $17,496,000
Total Actual Sales 100% $100,000,000 $108,000,000 $116,640,000
Sales Effectiveness of the 2 bottom teams
increased by just 5% p.a. Revenue $102,500,000 $110,700,000 $119,556,000 332,756,000
Revenue Increase
$ $2,500,000 $2,700,000 $2,916,000 $8,116,000
© 2014 Peter Strohkorb Consulting, all rights reserved
www.ps-consulting.com.au
What is the Business Potential ?
10
Sample Calculation 2: Reduce reps’ discounting by just 2%
1st Year 2nd Year 3rd Year 3 Year Total
Annual Sales Target (assuming 8% growth p.a.) $100,000,000 $108,000,000 $116,640,000
How many Salespeople ? 40 40 40
Avg Discount Given before OneTEAM Method 5% 5% 5%
Avg Discount Given with OneTEAM Method 3% 3% 3%
Additional Sales Revenue p.a. $2,000,000 $2,169,000 $2,332,800 $6,501,800
Improved Profit p.a. (assuming 40% sales margin) $800,000 $867,000 $933,120 $2,600,720
© 2014 Peter Strohkorb Consulting, all rights reserved
www.ps-consulting.com.au
What is the Business Potential ?
11
Sample Calculation 3: Just 5% more sales deals won, or 5% fewer ‘Stuck’ deals
1st Year 2nd Year 3rd Year 3 Year Total
Annual Sales Target (assuming 8% growth p.a.) $100,000,000 $108,000,000 $116,640,000
Avg Sales Price per Solution $20,000 $20,000 $20,000
Avg. Sale Closing Rate (assuming 5% improvement p.a.) 33.3% 35.0% 36.7%
Additional Sales Revenue p.a. $3,333,350 $3,510,019 $3,688,761 $10,532,130
Improved Profit p.a. (assuming 40% margin)
$1,166,673 $1,228,507 $1,291,067 $3,686,246
© 2014 Peter Strohkorb Consulting, all rights reserved
www.ps-consulting.com.au
What is the Business Risk ?
12
Sample Calculation 4: Just 5% fewer sales deals won, or 5% more ‘Stuck’ deals
1st Year 2nd Year 3rd Year 3 Year Total
Annual Sales Target (assuming 8% increase p.a.) $100,000,000 $108,000,000 $116,640,000
Number of Sales People 40 40 40
Avg Sales Price per Solution $20,000 $20,000 $20,000
Avg. Sale Closing Rate (assuming 5% decrease p.a.) 33.33% 31.67% 30.08%
Lost Sales Revenue p.a. $3,333,350 $3,690,017 $4,077,558 $11,100,925
Lost Profit p.a. (assuming 40% margin)
$1,333,340 $1,476,007 $1,631,023 $4,440,370
© 2014 Peter Strohkorb Consulting, all rights reserved
www.ps-consulting.com.au
OneTEAM Outcomes
© 2014 Peter Strohkorb Consulting, all rights reserved
Greater Sales Productivity delivers the following Outcomes:
Financial
Faster closing rate, higher margins, fewer lost sales, higher revenue,
more profit
Strategic
more responsive, nimble and competitive business, ready to deal with
change at lower risk
Operational
More efficient processes, lower cost, fewer errors, less delay
Cultural
High performing teams in more collaborative environment, better staff
engagement, higher job satisfaction and staff retention
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© 2014 Peter Strohkorb Consulting, all rights reserved
CSO Insights 2013 Study*
* CSO Insights 2013 Sales Performance Optimization Study
www.ps-consulting.com.au
The OneTEAM Method At a Glance 15
Your Free Services Your Assessment Your Implementation
Free
5 minute online
OneTEAM Method
ROI Check and
Self-Assessment
Test
Free
1 hour face-to-face
OneTEAM Method
Discovery Session
($695 value)
60-90 days
OneTEAM Method
Opportunity
Assessment
3-12 months
OneTEAM Method
Implementation
NOW
Detailed 360o Snapshot
• Sales
• Marketing
• Customers
Remediation
• People
• Processes
• Technology
• Ongoing improvement
High Level
• Benchmarking
• ROI Estimate
• Opportunities
High Level
• Situation
• Problems
• Opportunities
Sales feels
under-supported
by Marketing and
is not achieving
sales targets
FUTURE
Blame and
finger-pointing
disengage the
high performers
Marketing
understands how
to better support
Sales and is now
more highly
appreciated
The new
collaborative
team
environment
attracts high
performing
talent
Marketing
produces sales
material but is
uncertain of what
really works for
Sales
Sales is much
better supported
by Marketing and
now hits its
targets
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Take the Next Step:
Contact Us
16
+61 411 865 301
© 2014 Peter Strohkorb Consulting, all rights reserved
www.ps-consulting.com.au