Cross-Selling & Up-Selling with Miller Heiman

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Transcript of Cross-Selling & Up-Selling with Miller Heiman

Page 1: 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

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Cross-Selling & Up-Selling: Uncovering Hidden Opportunities

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Page 3: Cross-Selling & Up-Selling with Miller Heiman

Cross-Selling & Up-Selling: Uncovering Hidden Opportunities

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Cross-Selling & Up-Selling: Uncovering Hidden Opportunities

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How does it look to you?

This year I will achieve my sales quota.

Others World Class

? % ? %

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Cross-Selling & Up-Selling: Uncovering Hidden Opportunities

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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%

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Cross-Selling & Up-Selling: Uncovering Hidden Opportunities

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Profitability

New Customer

Current Customer

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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

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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

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Cross-Selling & Up-Selling: Uncovering Hidden Opportunities

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Today’s Reality

Targets

Leads

Meetings

Opportunities

Close

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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).

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Cross-Selling & Up-Selling: Uncovering Hidden Opportunities

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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.

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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

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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

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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

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Cross-Selling & Up-Selling: Uncovering Hidden Opportunities

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Do your customers understand the full

breadth of your capabilities?

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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

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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

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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%

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The Number One Reason People Don’t Cross-Sell Up-Sell

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FEAR

The Number One Reason People Don’t Cross-Sell Up-Sell

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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.”

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Cross-Selling & Up-Selling: Uncovering Hidden Opportunities

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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.

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Cross-Selling & Up-Selling: Uncovering Hidden Opportunities

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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

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Cross-Selling & Up-Selling: Uncovering Hidden Opportunities

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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

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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?

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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

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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

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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?”

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Cross-Selling & Up-Selling: Uncovering Hidden Opportunities

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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

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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

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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

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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

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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!

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Cross-Selling & Up-Selling: Uncovering Hidden Opportunities

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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

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Cross-Selling & Up-Selling: Uncovering Hidden Opportunities

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Q&DQ&DQuestions & Discussion