Archive for March, 2010

Several years ago we were engaged by the senior sales executive of a high growth supply chain software company. His company was transitioning to a new portfolio of products and a sales strategy focused on executive buyers. Marketing had created messaging for this strategy, but the sales team was not converting the messaging into successful executive meetings and targeted sales results.

The sales executive decided to join customer meetings to see what was really happening in the field. What he found was a team whose only messaging consistency was no consistency at all. Most salespeople were making up their messages and presentations on the fly. Given the company’s legacy, it was not too surprising that the messaging was still product-oriented and not appropriate for solution-oriented conversation with customer executives.

The sales executive realized he had to find a way to ensure key sales messages were consistently communicated by the organization. A key element of his solution was the development of sales-oriented messaging tools that his top sales performers developed in collaboration with marketing. Due to the direct involvement of top-performing salespeople in creating and validating practical sales messaging tools, the broader sales team ultimately embraced the new messaging.

Are your sales people delivering consistent, compelling messages in customer conversations?

Scott Presse

The Best Opportunity to Win

In order to win consistently, a company must establish and maintain leadership in some fundamental business competency; three of the most important are operational efficiency, innovation and customer connections. Which path offers your company the best opportunity to win? Consider the implications of each:

OPERATIONAL EXCELLENCE: The company has superb execution, often marked by reasonable quality provided at a very low price. The focus is on efficiency, streamlining operations, supply chain management, no-frills, volume counts.

PRODUCT LEADERSHIP: The company is very strong in innovation and product marketing, operating in dynamic markets. The focus is on development, innovation, design, time-to-market, and producing high margins in a short timeframe.

CUSTOMER INTIMACY: The company excels in customer attention and customer service, tailoring products and services to individual customers or narrow niches. The focus is on CRM, staying close to customers and their needs, delivering products and services on time and above customer expectations, creating emotional connections with the brand, and operating on lifetime value metrics.

A number of large international companies have established their identities around operational excellence. Their success is predicated upon channel power and long-term cost advantage – advantages which are only available to a few. So, particularly for challenger brands and companies operating in dynamic competitive environments, winning through operations isn’t a viable option.

Product-driven leadership presents a far easier path for winning in the short term but is tough to sustain. Can your company consistently win on product innovation, particularly in an environment when investment dollars are tight and competitors can respond so quickly? Or is it more likely that you and your competitors tend to be locked in a back-and-forth battle to stay ahead of one another for brief periods of economic advantage?

Winning through customer intimacy is a much higher-probability path for most companies. It depends less upon raw channel power, infrastructure or existing market share (as is the case with operational excellence) or even the expensive hand-to-hand competitive combat of a product-driven strategy. Customer intimacy can be achieved by companies new or established, large or small, in nearly any industry – it’s an issue of management focus, the smart use of customer information, and the right tools and incentives in place for those who interact with customers every day.

Has your company defined its game in a way that is likely to consistently produce wins?

Clearly understanding your customer’s buying milestones is essential to pipeline visibility. Without clearly understanding where your salespeople are in the customer’s internal buying process, you can’t know if a particular opportunity is merely possible, probable, or a sure close. Assuming salespeople and their managers are managing the pipeline based on clearly defined customer buying milestones, we have seen numerous organizations significantly increase their ability to assess the pipeline well beyond the current quarter.

Here are a few examples of customer buying milestones that provide more concrete evidence that real progress is being made in a sales cycle:

  1. Customer acknowledges a business need and agrees to evaluate a business relationship with Acme Solutions
  2. Customer confirms opportunity priority, internal business case, funding and agrees to a ‘Needs Analysis’
  3. Customer confirm our recommendation will meet their requirements
  4. Customer may or may not generate an RFP
  5. Customer confirms Acme Solutions is on the short-list
  6. Customer confirms their support for the Acme Solutions proposal
  7. Customer approves proposal and price
  8. Contract is executed

‘Customer’ as outlined in the milestones above may represent an executive sponsor, decision maker(s), key stakeholders and or a selection committee.

Based on a defined customer buying process and typical buying milestones, the pipeline of opportunities can be rendered visible by sales managers asking their salespeople focused questions based on these verifiable customer actions. The content of these questions must be consistent and a ‘critical few’ questions must be asked on a regular schedule. In part 2 (next week) we will talk about how to implement a cadence of sales review meetings to improve the effectiveness of interactions between managers and reps in light of the customer buying process.

The question was straightforward and profound: “How should we leverage our partners so that they can be an off balance sheet sales force?”

That’s the question a client recently asked as they looked to drive sales on limited resources in a down economy.(Sound familiar?) The client had been regularly offering combined solutions with partners, but the results weren’t hitting expectations.

The key was creating simple, powerful sales tools that would help the partner’s sales teams turn good intentions into consistently good results.

These tools had three important characteristics: (1) repeatability; (2) customer orientation; and (3) usefulness across a variety of sales conversations. Some of the specific tools included elevator pitches (also called 2-minute drills), buyer profiles (to help sales people understand the key business problems of particular audiences), solution summaries (matching joint solutions to business problems), and a whiteboard conversation process (a key tool that enabled the joint sales teams to carry on dynamic conversations rather than static presentations). These tools were combined in a guidebook that both sales forces could easily refer to just before a sales call.

With improved tools to enable partner sales teams, our client was able to effectively add a whole new sales force – without having to hire a single person.

Do you have strategic partners who could likewise become off balance sheet sales teams?

Sales messaging is a word thrown around a lot these days and like any other term its usage defines it. But that said, we believe sales messaging is at its core something really simple – the conversations between salespeople and customers. When salespeople meet with customers they are presenting your company, they are explaining what you do and how you do it, and they are doing that on more levels than just the words they say.

Are your salespeople talking to someone in the front office or the corner office?

Do your salespeople serve your customers as a good product rep or do they provide insight and develop a solution to a business problem?

Do your salespeople lead conversations or give presentations?

Do your salespeople listen actively?

Are your salespeople comfortable with improvisation?

The answers to these questions say something important about your sales messaging. Unlike “messaging” (the ideas, concepts, capabilities, positioning a company tries to present to the marketplace), sales messaging converts strategy and messaging into something salespeople will actually say in a customer meeting.

The chances are good that you have a well-understood selling process. Most companies do, and they’ve invested a lot of time effort developing it and training salespeople around it. But in all the flurry of activity around their selling many companies unfortunately forget one thing – their customers.

How do our customers buy? Isn’t that the fundamental question to address before we decide how best to sell to them?

Sales and messaging need to match our key customers’ buying process. Although that makes intuitive sense, we still see companies failing to recognize how customers buy — and as a result they fail to develop healthy pipelines or close more business.

One recent client is a perfect example. The company made a strategic acquisition that allowed them to offer a unique combination of solutions. But after months of selling and a great deal of money they had little to show for their efforts. Understandably they were getting nervous and engaged with DSG for help.

We began by taking a look at how sales people were actually behaving in the field. The reason for the lackluster sales soon became apparent. The sales team simply had no understanding of their customer’s buying process. They would begin to engage with a customer at one stage, then (lacking understanding, patience or confidence) prematurely jump past several stages to begin talking about terms of service. Their customers were still in the earlier stages of the buying process and were not ready to discuss the details of terms of service. The result was predictable; prospective customers simply disengaged from their buying process.

Once this client began adapting their sales process to their customer’s buying process their pipeline began to fill and more deals are being closed on a consistent basis.

Understanding your customer’s buying process should be the most important aspect of your own sales process, as well as the kinds of selling tools and collateral that marketing creates to enable sales.

How does your sales process compare to your customer’s buying process? What about your sales tools and collateral? Do they address key decision makers at every stage of the process?

I’d be happy to talk about this model, its implications and how we have seen it drive success for sales teams in a number of verticals. It is a game-changer.

Mark Gaydos

A Sales Messaging Parable

Once there was a CIO who read a magazine. He saw an ad for a new server tool that would revolutionize his business. The ad said “Simplify Your Server” and featured a picture of a server tower falling into a rippling pool of water. The CIO saw other ads and he began to hear some buzz about this new tool from colleagues. But the CIO wasn’t certain exactly how the tool would solve his problems.

Then one day the CIO got an email from a salesperson for the server tool company. The salesperson asked for a meeting. The CIO said yes, he’d like to learn more. He had many questions.

The CIO got some of his staff together in a conference room and was ready to meet with the sales person. The salesperson arrived with rolling briefcase filled with information packets. He handed them out to the staff and CIO. He hooked up his laptop to the projector and began to talk in a polished, clear voice about the features of the product and the common problems it solved. The salesperson talked about all of the ways the tool simplified server functions. The CIO jotted down some questions he had. He could see the common problems the tool solved, but he wasn’t sure if the tool would address his unique problems.

The sales person droned on and the CIO began to look at his watch. He had a meeting with the CEO. He slipped out of the meeting as the salesperson continued to flip through power point slides.

The CIO was still interested in the product, so he put the salesperson’s information in a letter tray on his desk to get to later when he could sort through it and determine whether or not it would be helpful.

A few weeks later he was contacted by another company that promised to simplify his server tools. The salesperson asked for a brief meeting. The CIO reluctantly agreed. The salesperson came in with a small shoulder bag and began to ask the CIO about some problems he might be having with his company’s servers. The CIO said, yes, those were the kinds of problems he was having. The salesperson continued to ask several critical questions and the CIO was increasingly interested in what he had to say. Then the salesperson took out a pad of paper and began to sketch some diagrams, incorporating what the CIO had told him about his problems. The salesperson showed him how his company’s tool could solve the unique problems the CIO was having and the potential business impact for the CIO’s company.

The CIO said that he would talk to the CFO and in a few months they had purchased the tool along with up-front consulting services and a long-term support plan.

The first salesperson’s packet of tables and information sat on the CIO’s desk, until he cleaned the desk, and threw the packet in the trash.

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