Hubsher and Taming The Sales Beast
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Transcript of Hubsher and Taming The Sales Beast
Taming the Sales Beast:Taming the Sales Beast:10 Principles that Harmonize the 10 Principles that Harmonize the relationship between Sales and relationship between Sales and
Marketing and produces real world Marketing and produces real world resultsresults
650650--520520--9849 Bay Area Office9849 Bay Area Office212212--534534--0626 NYC Office0626 NYC Office
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
AgendaAgenda
Background
Word/overview about sales and Marketing and why it is important
Goals for the seminar
Today’s Sales and Marketing Challenges
Successful strategies to bridge the gap
Results - Case study
Building a World Class Sales & Marketing Organization
Wrap up/QA
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
A word about sales and marketingA word about sales and marketing
“Nothing Happens till a sales is made”Sales and marketing team is the largest contributors to bottom line/most leverageable asset
Sales- kind of dirty word Rarely taught in business schoolsMisunderstoodLast undisciplined functional areaLast frontier, very different from marketing team
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
A word about sales: Problem!A word about sales: Problem!
There is a disconnect between sales and marketing that costs companies
millions in revenue, market cap and personal wealth
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Even small improvements in sales and marketing can lead to dramatic improvements in net income and market cap
Even small improvements in sales and marketing can lead to dramatic improvements in net income and market cap
Market Cap vs Sales Improvement Increase
4.117.62
12.88
21.65
0.00
5.00
10.00
15.00
20.00
25.00
0% 20% 50% 100%
% sales improvement
Mar
ket C
ap in
Bill
ions
1.9x3.1x
5.3x
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Goal to give you tools toGoal to give you tools to
Identify today’s sales and marketing disconnects Provide some sales background and insights that will accelerate your success in sales and marketingA cohesive plan of attack to minimize disconnects and maximize the ROI of the sales and marketing efforts
Stuff you can use and implement tomorrow
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Today’s Challenges
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Welcome to the JungleSome Sales Fundamentals
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
1) Know you ABC’s1) Know you ABC’s
A – RolesB – Executive vs. MissouriC – Two Slide Close™
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
1.A) - roles1.A) - roles
Buyer Type Role Satisfied
Financial Buyer Does the perceived benefits outweigh the cost and risk?Does this product fit our specifications?(CIO/director of IT)Will this product make me more effective?
Specs Buyer
End User Buyer
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
1.B) - Two parts to selling1.B) - Two parts to selling
Executive sell (no product required)Given to the Financial buyerWhat Pain will this take away? What extra pleasure will this bring me?What is the risk/reward profile
Missouri sell (“Show Me”)First level pass with Financial buyerDeeper Dive Usually left to Specs Buyer and End User to decideWill this product solve “MY” pain in my environmentWill this product give “ME” pleasure in my environment
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
1.C) - You need the “Two Slide Close™”1.C) - You need the “Two Slide Close™”
Given to Financial Buyer(s)
1st slide – Pain slide/Pleasure slide3-5 key benefits of your product
2nd slide -Financial justificationROIPaybackNPVCost of AlternativeTCO
You should customize these slides to the title and the company you are selling to
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Successful strategies to tame the beastSuccessful strategies to tame the beast
1. Who loves you baby?2. Are you talking to me?3. The horse whisperer.4. Icebergs? What Icebergs?* (ASC)5. Who’s your daddy?* (ASC)6. Some assembly required.7. Listen to the philosophers.8. Know/no bull.9. The Pipeline the Mother of all Sales.10. Paradise by the Dashboard lights
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
1) Who loves you baby?1) Who loves you baby?
Scenario # 1 KnowMale White
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
1) Who loves you baby?1) Who loves you baby?
Scenario # 1 KnowMale White
Scenario # 2 KnowMaleWhite6’2 tallBlue eyesLeft handed
Sweet toothLikes country western musicFavors the color red
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Don’t waste timeDon’t waste time
Know your perfect prospect profileKnow the title of your financial buyer
VP of Sales
Know 3-5 key demographics
100+ employees or moreSell service oriented products or large discreet
manufacturesHave a multi layered sales organizationGeographically distributed sales organization across
the US/World
Know 3-5 key psychographics
Have been unsuccessful in using SFA in the pastHave a well defined sales processWant a system installed quickly
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
2) Are you talkin’ to me?2) Are you talkin’ to me?
Are you talkin' to me? Well, I'm the only one here so you must be talkin’ to me
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Get inside their headGet inside their head
Terms in MarketingMarket ShareMind ShareMarketing communicationsPRProduct, Price, Promotion, PlacementBrandLead
SalesLeadQualified leadOpportunity, DealWon, Lost (black white)Sale
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
The Biggest words of allThe Biggest words of all
TerritoryQuotaForecast
Anything that happens outside their territory means absolutely nothing
Collaborate: Help your sales people build territory plans to help them exceed their Quota
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Pop QuizPop Quiz
Great News: A lead you have generated has directly lead to the biggest new sale in the company’s history:How many people in marketing are happy?How many people in the company are happy?How many sales people are happy?Why?For how long?
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
3) The Horse Whisperer3) The Horse Whisperer
Sales and Marketing Success starts with your prospects and clientsYou must think like your prospect, not your product
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Think like your clients: Map Buying Process to Sales ProcessThink like your clients: Map Buying Process to Sales Process
Buying Process Selling ActivitiesRating (High, Med,
Low)
Identify Pain Uncover/Clarify needsTurn latent needs into urgent needsReframe problemExplore value of solving solutionFind new solutions to existing problemCreate or Engineer VisionIdentify what is importantPreemptively positionPresent choices
Product telling
Develop TrustProve SolutionDecide if it is worth doing
Easy to transact
Reaffirm goalsMake sure goals are being met
EnvisionSolution
Set DecisionMaking CriteriaExplore Options
Educate
Assess Risk
Make Selection
Implement
Measure
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Advanced Sales Concepts
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
4) Iceberg? What Iceberg?4) Iceberg? What Iceberg?
Business Motives are just the tip of the iceberg
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Tune Into The Personal AgendasTune Into The Personal Agendas
Financial Buyer
Do the perceived benefitsoutweigh the cost and risk?
Agrees a piece of software will improve productivity 10% and will be worth the costs and risks of installing
Good: Gets a 10% bonus if productivity increasesPerceived as a change leader
Bad: Will force me to lay off my fishing buddy.
Will make me admit that the last package that I recommended was a failure/did not work
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Watch Out For The Deep Six NukerWatch Out For The Deep Six Nuker
Specs Buyer
Does this product fit our specifications?
Agrees software fits technical specification, and can run on the present hardware
Will have to increase/decrease headcount to support
Good…Makes my life easier
Bad: The rival brand will look better on my resumeI want to move my company in another IT directionThere is a project I’d rather complete firstI don’t want to get rid of my best friend in the IT departmentI don’t want to hire and manage another personFinancial buyer is an a pest in another department – screw himI don’t like the salesperson
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
……
End User Buyer
Will this product make me more effective?
Agrees the software will make more productive
Good: Hey this may actually help me do my job and have more spare time
Bad:Just a way for management to look over my shoulder
They’ll expect more work for me
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
5) Who’s Your Daddy?5) Who’s Your Daddy?
Find at least one buyer whose personal agenda will be greatly enhanced with you winning the business.Leverage this/these resource(s) to understand the motivation and agendas of the other buyersPosition your product to satisfy the needs of people’s personal agendas
If you don’t have a daddy/champion, At best, you will lose to indecision/ no actionAt worst, you will lose to a competitor who has one
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Real life exampleReal life example
Name Role Agenda Satisfied
VP Janet Financial Buyer
Change AgentSave Face
No Tech SupportSF Trip
VP Derek Financial Buyer
Daddy
Dir of IT Gail
Specs Buyer
Analyst Karen
End User Buyer
Daddy
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Action ItemAction Item
Compile a list of winsUnderstand key DaddiesBusiness MotivationsPersonal MotivationsUse that to map into future marketing Materials and understand ideal client profile
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
6) Some Assembly Required6) Some Assembly Required
Process (How do I assemble the pieces)What are the steps for a deal to move from lead to closeWhat information is needed, expected at each stageWhat commitments do you want to give to the prospectWhat commitments do you expect back from the processWill vary for your business
Tools to help you do the job (speed sales cycle, anticipate politics, identify buyers who are likely against you, over come competitors)
Parts (What pieces of information do I need - Sales methodologies)
What is the customer’s buying process Who are the key people involvedWhy are they buyingWhat are the looking forWhat obstacles might get in the wayWhat is driving the business needWhat pieces are you missing
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Tool Kit:Tool Kit:
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
7) Listen to the Philosophers7) Listen to the Philosophers
“If I see farther than anybody else, it is because I stand on the shoulders of others”
Share Best PracticesLeverage knowledge
Share Worst PracticesAvoid repeating common mistakes
Same mistake made 3 times by 3 individuals
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
8) Know/no Bull8) Know/no Bull
Common sales complaintsNot enough leadsNot enough collateral
Action itemsConfirm Zero Lead PolicyCreate library of customizable materials
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
9) Pipeline the Mother of all Sales9) Pipeline the Mother of all Sales
Sales are misleadingSales are misleadingActive Deals in Pipeline vs Revenue
0
5
10
15
20
25
30
35
1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 1-Jan 1-Feb
# of
Dea
ls
0
20
40
60
80
100
120
140
160
180
200
$ R
even
ue 0
00
DealsRevenue in 000
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
9) Pipeline the Mother of all Sales9) Pipeline the Mother of all Sales
Active Deals in Pipeline vs Revenue
0
5
10
15
20
25
30
35
1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 1-Jan 1-Feb
# of
Dea
ls
0
20
40
60
80
100
120
140
160
180
200
$ R
even
ue 0
00
DealsRevenue in 000
Launch
Sales and Marketing Campaign
Launch
Sales and Marketing
Campaign #2
Fear/stop marketing
Ecstatic
Done
Sales are misleadingSales are misleading
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
How’s biz?How’s biz?
Sales Pipeline Implication
Future is bleak
No salesQuestionable futureFuture probably good
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
10) Paradise by the Dashboard lights10) Paradise by the Dashboard lights
Incoming leads
020406080
100120140
J F M A M J J A
Month
Close Rate
0%10%20%30%40%50%60%70%80%90%
J F M A M J J A
Avg Deal size
0100002000030000400005000060000700008000090000
100000
J F M A M J J A
Avg Deal SizeIncoming Leads
Close Rate Avg Days to close
0
20
40
60
80
100
120
J F M A M J J A
days
Avg Days To Close
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Pipeline AnalysisPipeline Analysis
Potential Sales by Sales Stage
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
A - First Meeting B - NeedsAnalysis
C - InvestmentPlan
D - Refine Plan E- Closed
New Prospects Existing Clients
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Results and Case Study of Implementing these Principles
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
My 2 slide close to you: By implementing this principles:My 2 slide close to you: By implementing this principles:
Increase close ratesIncrease deals sizeIncrease deal velocity
Dramatic positive impact on net income, market cap and personal wealth
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Results can be extraordinary!
5.5 improvement in close rates5.5 improvement in close ratesClose rate
14%
77%
0%10%20%30%40%50%60%70%80%90%
Before After
5.5 x
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
4.8 x improvement in deal size4.8 x improvement in deal size
Avg Deals Size
$17,121
$81,529
$-$10,000$20,000$30,000$40,000$50,000$60,000$70,000$80,000$90,000
Before After
4.8x
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
2.4 x improvement deal velocity2.4 x improvement deal velocity
Avg Business Days to Close
88
37
0
20
40
60
80
100
Before After
Day
s to
Clo
se 2.4x Increase
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
6,200 % increase in sales productivity6,200 % increase in sales productivity
$ Revenue/Rep
$136,190
$8,483,423
$-$1,000,000$2,000,000$3,000,000$4,000,000$5,000,000$6,000,000$7,000,000$8,000,000$9,000,000
Before After
62x
Before After ImprovementClose Rate 14% 77% 5.5Avg. Deal Size 17,121$ 81,529$ 4.8Avg Business Days to 88 37 2.4$ Revenue/Rep $136,190 $8,483,423 62.3
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Dramatic positive impact on net income, market cap and personal wealthDramatic positive impact on net income, market cap and personal wealth
Before AfterNet Profit/Rep ($81,905) $3,941,711Market Cap Inc/Rep $0 $98,542,787
Net Profit/Rep
($500,000)$0
$500,000$1,000,000
$1,500,000$2,000,000
$2,500,000$3,000,000
$3,500,000$4,000,000
$4,500,000
Before After
Net P
rofit
$3.9 Mill
-$0.1 Mill
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
A Peek AheadCreating a world class sales and marketing organization
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Creating a World Class Sales and Marketing OrganizationCreating a World Class Sales and Marketing Organization
Benchmark current environmentCompare to best practicesIdentify Gaps
Sales ManagementSales
Create Roadmap and Implement Steps to Close Gaps
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Benchmark Current EnvironmentBenchmark Current Environment
PeopleProcessToolsTechnology
People & Skills Process Tools and TechnologyOrganization Structure Sales Management CRMResource Allocation/NormalizAccount Management WebconfrecingPredictive Hiring Opportunity Management 2 slide closeCompensation Call Planning 3 slide closeNew Hiring Training Call Execution Sales MethodologyField Support Lead Management/DevelopmeTime lineCoaching Qualifying Reverse time lineOngoing training Best/Worst Practices Account PlanSkills Set Gap Analysis Objection Handling Opportunity PlanQuestioning and Qualifying Negotations Call PlannerShorten the sales Cycle Overcoming Negative Selling Qualify QuestionsUnderstanding the Politics Trapping for price cutting Profiling toolPresentation Competiveive Selling Knowledge CenterCalling High Forecasting Sales PlaybookObjection Handling Pipeline Management Value StatementNegotations Pricing Changes Anticipating Political ConflictPreparation Proposal Company KnowldegeListening Quoating Product KnowldegeDiscovery Skills Customer Leverage Programs Competitive Knowledge
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Create a roadmap for sales successCreate a roadmap for sales success
Identify High ROI areasCreate a roadmapImplement roadmap
Copyright 2003,2004,2005 Sales Optimization Group, 650-520-9849, [email protected]
Ron Hubsher, Managing DirectorRon Hubsher, Managing Director
Ron Hubsher is managing director of the Sales Optimization Group. Ron has over 20 years of experience in sales, sales management, and business development. Prior to the Sales Optimization Group, Ron was in sales management at a leading CRM provider UpShot -- acquired by Siebel (Nasdaq:SEBL) -- where he helped hundreds of companies improve their sales performance. A former Management Consultant with Booz, Allen & Hamilton, Ron has worked with, and helped provide thought leadership for, Fortune 500 companies on their sales, marketing, and business strategies. Ron graduated with an MBA from Columbia University Graduate School of Business. He has a Bachelors of Science degree in Operations Research from Columbia University where he was elected to the Tau Beta Pi and Omega Rho honorary societies.