Mascon Global Cross Selling Training

1 Solution Selling Keith M. Eades Founder and CEO Sales Performance International Best Selling Author of: The New Solution Selling The Solution Centric Organization The Solution Selling Fieldbook August 2, 2012 Driving Revenues, Profits and Predictability Sales Performance International SPI helps clients create measurable and sustainable revenue growth. Over 500 Global clients Solution Selling suite of sales and marketing best practices 1,000,000+ alumni Established 1988 HQ in Charlotte, NC Serving 54 countries in14 languages Widely recognized by industry analysts as a sales Training /consulting leader 3 2012 Solution Selling , Inc. Salespeople Have: One of the overall best incomes - #5 The highest overall job satisfaction - #1 The lowest divorce rate - #1 The lowest suicide rate - #1 Professional Selling Today 4 2012 Solution Selling , Inc. Motivate you to engage in Solution Selling Why? Revenues Profits Predictability Today s Objectives 5 2012 Solution Selling , Inc.

2 Key Trend: Performance is Slipping 6 2012 Solution Selling , Inc. 2011 CSO Insights Sales Performance Optimization Survey 2011 Sales Performance Optimization Survey (2011 vs. 2010) 2011 2010 IBM s Solution Selling Results Problems Addressed 3 divisions: software, hardware, services with three different sales approaches Inconsistent and inefficient face to the customer Customer confusion: lost business Results of the transformation For every $1 invested, $94 of revenue 3 X incremental revenue by Sellers using a unified process Key Metrics Impacted Pipeline Growth by Increased Number of Opportunities Increased Average Selling Price Increase Win rate Shorter Sale Cycle Reduce Number of Losses To No Decision Lower Cost of Sales by Disengaging Earlier From Poor Opportunities Qualify Out 2012 Solution Selling , Inc. 7 Building a High Performance solutions Sales Culture Solution Selling Works Very Satisfied Dissatisfied Source : Microsoft WW customer satisfaction survey, internal interviews More successful sales reps Setting customer expectations satisfaction Yr 01 Yr 02 +44% 16% 23% Yr 01 Yr 02 - 16% 19% 16% Using MSSP MSSP Impact Worldwide Avg.

3 Yr 01 Yr 02 15% 16% + 6% Yr 1 Yr 2 +19% 16% 19% Yr 02 140% of Quota 100% of Quota <100 % of Quota 69% 23% 9% Yr 1 140% of Quota 100% of Quota <100 % of Quota 15% 30% 55% Customer satisfaction Quota Attainment 8 2012 Solution Selling , Inc. 6 Keys to World Class Sales Performance Driving Revenues, Profits and Predictability 9 2012 Solution Selling , Inc. A buyer-aligned sales process Sales and marketing alignment messaging, sales tools, and sales conversations Technology enablement that explicitly supports process, methodology, and management practices Management system and disciplines that foster and sustain process and methodology adoption A continual learning framework (skills assessment, Training and multi- year reinforcement) that aligns with process and sales methodologies Adoption of a customer and solution centric philosophy What is a Solution ? Solution: Answer to a problem, critical business issue or business opportunity that provides customer value After: Measurable delta or difference Before: Baseline of Current Situation 10 2012 Solution Selling , Inc.

4 Situational Fluency What Buyers Expect Situational Knowledge Capability Knowledge People Skills Selling Skills Situational Fluency 11 2012 Solution Selling , Inc. Situational Fluency: Integration of knowledge and skills by the salesperson for eagle performance Integrate? Why Process? Two Kinds of Salespeople Make presentations Make product-based statements Process is key to success Behave intuitively Have business conversations Ask customer-focused questions Journey People 80% 20% Eagles Generate 80% of all sales Intuitively apply a process High situational fluency Opportunity creators 12 2012 Solution Selling , Inc. Why Process? The 64% Dilemma B U Y E R S SALESPEOPLE Innovators Early Adopters Pragmatists Conservatives Laggards 20% 80% Eagles (20%) Journeypeople (80%) 4% 16% 16% 64% 13 2012 Solution Selling , Inc. What is a Buyer Aligned Sales Process? 2012 Solution Selling , Inc. 14 BUYING PROCESS SALES PROCESS STEPS KEY SALES ACTIVITIES VERIFIABLE OUTCOMES % % % % % OPPORTUNITY MANAGEMENT SYSTEM WIN ODDS OTHER COMPONENTS (TOOLS, ROLES, ) Solution Selling Sales Process Sales View 2012 Solution Selling , Inc.

5 15 Buying Process Define business strategy and initiatives Determine needs / requirements Evaluate options Select solution and evaluate risk Resolve any issues and finalize contracts Sales Process Steps CREATE QUALIFY DEVELOP PROVE CLOSE Key Sales Activities Identify potential opportunity Conduct pre-call planning and research Identify potential beneficiary Identify potential pain Stimulate interest Confirm dialogue and agree upon next steps Get Sponsor s pain admitted Diagnose admitted pain of Sponsor Create or reengineer vision for potential Sponsor Gain agreement to explore further Negotiate access to Power Confirm dialogue & agree upon next steps Get Power s pain admitted Diagnose admitted pain of Power Sponsor Create or reengineer vision for potential Power Sponsor Gain agreement to explore further Determine evaluation criteria Propose a plan of next steps Confirm dialogue & agree upon next steps Begin execution of next steps Present preliminary solution Prove capabilities Conduct review of proposal Ask for the business Issue proposal (decision due) Receive verbal approval Prepare for final negotiations Reach final agreement Get necessary documents signed Verifiable Outcomes Next steps agreed upon Sponsor Letter Agreed Upon Power Sponsor Letter and Evaluation Plan Agreed Upon Verbal Approval Received Signed Documents Opportunity Management System - Yield % 10% 25% 50% 75% 100% Motivation Through Sales Process 2012 Solution Selling , Inc.

6 16 Sales process provides a roadmap to get from where you are to where you want to be The process provides your sales team with a series of closes / wins throughout the sales process Your sales team will be motivated by having more control over the sales process Performance improvements = more revenue = higher motivation on the sales team Sales process ensures: Higher individual quota attainment Higher team quota attainment Increase in average deal size Improved time to productivity The Impact of Sales Process Significantly Improves Not Methodology Impact on Sales PerformanceImpact of Sales Process on Company Performance 2011 Sales Performance Optimization Report by CSO Insights 17 2012 Solution Selling , Inc. Sales Process Impact on Sales Performance SPI Customers vs. Other Sales Training Source: Aberdeen Group Study December, 2010 18 2012 Solution Selling , Inc. Key Components for Sales & Marketing Alignment Targets and Critical Business Issues (Pains) Critical Business Issues (Pains) Targets Differentiated Capabilities Value 19 2012 Solution Selling , Inc.

7 Basic Principle No Pain, No Change Pain = Problem, Critical Business Issue or Potential Missed Opportunity BASIC PRINCIPLE 20 2012 Solution Selling , Inc. Example: Targets and Critical Business Issues Information Systems Example 21 2012 Solution Selling , Inc. Key Players (Job Title) Potential Pains / Critical Business Issues Director Information Systems Inability to meet internal user demand Inability to keep up with technology change Growing application backlog Legacy systems no longer support business Application Development Manager Too much of staff dedicated to maintenance Applications take too long to get to market Inability to make minor changes in a timely fashion Inability to deliver adhoc requests Systems and Network Manager Distribution control of new version of software is not a well-defined process Growing network with conflicting protocols C/S will overload the network Increasing cost of administering C/S model Application Developer Application not on target with user requests Inability to contribute to business goals Too much time spent on maintenance items Inability to satisfy user demand Lack of application development tools Programming Manager Inability to

8 Deliver applications in a timely manner Need to get product to market quicker Inability to manage increasing complexity Difficulty maintaining control of multiple versions Example: Targets and Critical Business Issues Manufacturing Example 22 2012 Solution Selling , Inc. Key Players (Job Title) Potential Pains / Critical Business Issues Chief Executive Officer (CEO) Not meeting investors expectations Declining stock price Decreasing EPS / shareholder value Chief Operating Officer (COO) Rising operational costs Declining margins Inability to consistently reach productivity goals Chief Financial Officer (CFO) / VP Finance Declining cash flow Declining ROI and ROA Eroding profits Chief Information Officer (CIO) / VP Information Technology Inability to meet users' technology demands Trouble keeping up with technology change Difficulty implementing new technologies Lack of resources VP Sales Missing revenue goals / new account sales targets Inability to accurately predict sales revenue Declining customer satisfaction VP Manufacturing Not meeting manufacturing and shipment schedules Excessive inventory levels Lack of capital for equipment VP Engineering Inability to get new products to market on timely basis Escalating design costs Inability to develop a new product plan Exercise: Build a Key Players List Purpose: To develop a repeatable, sales tool for Selling additional services.

9 The objective is to identify the key players and likely critical business issues that a solution or other packages services can solve. Activities: Identify, by title, the targeted key people within an organization to which your capabilities could be sold Identify the critical business issues faced by each of these key players Notes: Use the template that follows (or flipchart if applicable) Everyone should record the example created, in their handout Be prepared to share your work 23 2012 Solution Selling , Inc. Key Players List: Template 24 2012 Solution Selling , Inc. Key Players (Job Title) Potential Pains / Critical Business Issues Key Components for Sales & Marketing Alignment Differentiated Capabilities 25 2012 Solution Selling , Inc. Critical Business Issues (Pains) Targets Differentiated Capabilities Value Differentiation Grid Worksheet 26 2012 Solution Selling , Inc.

10 Differentiated Capability Unique Value A B C D E F G H I 0 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 VALUE U N I Q U E N E S S Differentiation Grid Differentiation Grid: Example 27 2012 Solution Selling , Inc. Differentiated Capability Unique Value A Access to a talent pool of fully trained and certified application developers 3 7 B Access to application programmers who follow development methodology 1 9 C Enterprise application expertise 9 1 D On demand Global resources 6 6 E Company has 15 years experience 3 3 F Resources in 14 different languages 8 8 G H I 0 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 VALUE U N I Q U E N E S S Differentiation Grid A E D C B F Exercise: Differentiation Purpose: To practice identifying your business unit s key differentiators Activities: Use the Differentiation Grid Worksheet on the page that follows to capture your work Develop a list (7-10 items) of your most valued differentiating features or capabilities Plot each item on the Differentiation Grid in terms of uniqueness and value Use the following scale 0 = no value, no uniqueness 5 = average in comparison to the industry / market / competitive standard 10 = highest value, most uniqueness Be prepared to share your work Note: Be sure to include differentiators outside of just traditional product and service features Everyone should record the example created, in their participant manual 28 2012 Solution Selling , Inc.