Cross-Selling & Up-Selling with Miller Heiman
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Transcript of Cross-Selling & Up-Selling with Miller Heiman
Cross-Selling & Up-Selling:Uncovering Hidden Opportunities
Rich Blakeman - Sales Vice President, Miller Heiman
SAN FRANCISCOCHAMBER OF COMMERCEWhere smart business starts
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
slide 2 2006 © Miller Heiman, Inc. All rights reserved. www.millerheiman.com
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
slide 3 2006 © Miller Heiman, Inc. All rights reserved. www.millerheiman.com
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
slide 4 2006 © Miller Heiman, Inc. All rights reserved. www.millerheiman.com
How does it look to you?
This year I will achieve my sales quota.
Others World Class
? % ? %
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
slide 5 2006 © Miller Heiman, Inc. All rights reserved. www.millerheiman.com
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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How did it look last October?
This year I will achieve my sales quota.
Others World Class
83% 48%
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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Profitability
New Customer
Current Customer
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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Who we are
Miller Heiman – The Sales Performance Company
Miller Heiman helps companies and individuals that compete for high-value business-to-business sales develop strategies, processes and skills to consistently win business – especially when the sales process is complex and the marketplace demanding.
We have been in business for more than 30 years. Over this time we’ve evolved into the world’s largest sales performance consulting and training firm and the preeminent thought leaders in the space.
Our reach:
Over 1,250,000 alumni
Over 10,000 client engagements
Programs translated in 17 languages
Operating in over 35 countries
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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2009 Miller Heiman Sales Best Practices Study
Annual study reveal trends, issues, opportunities in a complex selling environment
Benchmarks year-over-year trends
Survey conducted in October 2008
Sixth year of study
3,900+ sales professionals participated in current study
21,000 participants to date
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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Today’s Reality
Targets
Leads
Meetings
Opportunities
Close
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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Cross-Selling Defined
Cross-selling (verb)
(1) Expanding the number and quality of relationships between key people in the buying organization and the selling organization, and/or
(2) Making additional relevant solutions available to the buying organization (e.g.,
new products).
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
slide 12 2006 © Miller Heiman, Inc. All rights reserved. www.millerheiman.com
Up-Selling Defined
Up-selling (verb)
Converting an initial order into a more profitable order. Typically manifested by the customer's commitment to:
(1) additional units of the seller's solution – or – (2) a premium version of the seller's solution. This doesn't mean selling
one's customers something they don't need; it does mean selling one's customers more of something that they do need.
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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Timing for Effective Cross-Selling & Up-Selling
Buying Process
StatusQuo
Need toChange
Recognized
DefineProblem
EvaluateOptions
SelectBest
ImplementAssessValue
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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Timing for Effective Cross-Selling & Up-Selling
StatusQuo
Need toChange
Recognized
DefineProblem
EvaluateOptions
SelectBest
ImplementAssessValue
Up-SellingCross-Selling
Buying Process
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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Sales Leadership Challenges Today
1. Increase average deal size
2. Effectively introduce new products/services to the market
3. Grow sales without significant increases in resources
4. Differentiation through increased value
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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Do your customers understand the full
breadth of your capabilities?
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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Only 34 percent of top-performing sales organizations report that their customers
understand the full breadth of their capabilities, and only 22 percent of all
other organizations make the same claim.2008 Miller Heiman Sales Best Practices Study
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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Existing Client/Customer
New Client/Customer
Proven Product/Service
1 3
New Product/Service
2 4
1 - 4 = Most to Least Predictable
Predictability Analysis Model
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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Our sales force is very effective at
selling new products / services.
Others World Class
74% 37%
The Number One Reason People Don’t Cross-Sell Up-Sell
FEAR
The Number One Reason People Don’t Cross-Sell Up-Sell
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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Fear of Cross Selling & Up-Selling
Fear of losing is the number one reason salespeople do not cross-sell and up-sell more often.
Resistant to CHANGE FEAR TRUST DELAY CREDIBILITY
Big reasons why sales professionals continue to resist cross-selling and up-selling:
“Will I risk the order I just
received if I ask for more?”
“I’m not going to confuse this account by
pitching a bunch of new products.”
“I’ll ask for a referral later –
once we are in a better position
with this account.”
“This isn’t my area of expertise.”
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
slide 23 2006 © Miller Heiman, Inc. All rights reserved. www.millerheiman.com
OthersWorld Class
92% 43%
Our organization regularly collaborates across
departments to manage strategic accounts.
OthersWorld Class
91% 37%
Sales and Marketing are aligned in what our customers
want and need.
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
slide 24 2006 © Miller Heiman, Inc. All rights reserved. www.millerheiman.com
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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4 Steps to More Effective Cross-Selling & Up-Selling
Develop Your Ideal Customer Profile
Map the New Buying Process
Understand the Concept
Define Unique Strengths
Step 1
Step 2
Step 3
Step 4
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
slide 26 2006 © Miller Heiman, Inc. All rights reserved. www.millerheiman.com
Develop Your Ideal Customer Profile
Consider the characteristics of those clients who would have the greatest need for your added product/service:
Create a list of five key characteristics.
– It’s not who has a need but who has the greatest need– It’s not who will buy but who will buy quickly– Quick wins help reduce Fear
This is the criteria you will use as a sorting device to prioritize.
Step 1
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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Example: Ideal Customer Profile
1. Fast sales head-count growth
2. Higher than expected sales force turnover
3. Client has shared their concern as to whether they have the right people– New VP of Sales in place
4. Companies in the midst of a merger or acquisition
5. Size of sales force
Which current clients match your Ideal Customer Profile?
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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The Cross-Sell/Up-Sell Matrix
Example, Top 5 Customers
Ideal Customer
Profile Match
Solution A Solution B Solution C Solution D Solution E
Company A
Company B
Company C
Company D
Company E
Company F
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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Map the New Buying Process
Who will help you gather information?– Do you know this person – do you need to develop this
person?
Who will make final decision to buy?– Do you know this person – do you need additional info?
Step 2
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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Develop Your Coach
Role: acts as a guide for cross-selling and up-selling
Proactively develop at least one
A Coach can provide and interpret information about:– Validity of this Opportunity – Other Buying Influences
Focus: your success with this proposal
Asks: “How can we make this happen?”
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
slide 31 2006 © Miller Heiman, Inc. All rights reserved. www.millerheiman.com
Recognize where the decision will get made.
Who holds the budgetary/financial responsibility– Who’s ultimately responsible for the success/failure when purchasing
your product/service
Calling at the right level is critical– Top-performing sales organizations include client executives in the
sales cycle1:• 52 percent more likely to gain access to key decision makers• 57 percent more likely to systematically identify the issues of key
individuals• 56 percent more likely to have relationships and dialog at the highest
executive levels with strategic accounts
Must be selling at the Economic Buying Influence level!
1 - Source: 2009 Miller Heiman Sales Best Practice Study
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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Finding the optimal solution
Every customer has a solution image or Concept
Customers buy what they think your solution will enable them to accomplish
The Customer’s Concept evolves during the buying process
The sales professional needs to understand the Customer’s Concept
Customers have Concepts; companies do not
Understand the ConceptStep 3
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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Customer’s Concept
Accomplish something
Fix something
Avoid something
Create a Valid Business Reason– Provide a compelling reason for this
person to invest time with you
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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Is bigger better? Why?
What is Unique and better about the larger solution?
What are your Strengths?
How are your Strengths important to your customer?
Define Unique StrengthsStep 4
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
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Differentiation
Products, services, or solutions must be differentiated before the customer makes a decision to buy, or that decision may be based on price alone
Customers do not buy products, services, or solutions per se; they buy what they think or feel the products, services, or solutions will accomplish for them
Your Customers must see a link between your product, service, or solution and their Concept
– So What? Prove It!
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
slide 36 2006 © Miller Heiman, Inc. All rights reserved. www.millerheiman.com
Review of the 4 Steps to EffectiveCross-Selling & Up-Selling
Develop Your Ideal Customer Profile
Map the New Buying Process
Understand the Concept
Define Unique Strengths
Step 1
Step 2
Step 3
Step 4
Cross-Selling & Up-Selling: Uncovering Hidden Opportunities
slide 37 2006 © Miller Heiman, Inc. All rights reserved. www.millerheiman.com
Q&DQ&DQuestions & Discussion