reducing the tco sales cycle
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Reducing The TCO Sales Cycle
Kevin Wood Reducing The TCO Sales Cycle
Considerations Metrics Strategies Reducing The TCO Sales Cycle Why
is TCO a Long Sales Cycle?
CAMFIL FARR Investment Energy Disconnect From MRO Product
Performance Objective CAMFIL FARR Prospects Customers Forces of
Commoditization
CAMFIL FARR Internet Disintermediation Automation Globalization
Consolidation Examples of De-commoditization
CAMFIL FARR Two Reason Why People Dont Buy
CAMFIL FARR They dont believe their problem is significant enough
to take action, or 2. They do not believe the solution will work.
Three Challenges To Shorten The Sales Cycle
CAMFIL FARR Decision challenge Prospect does nothave a high-quality
decision process to makethis type of decision. We put good
informationinto a bad process and the decision is randomand
unpredictable. Change A decision to buy leads to changeand change
is painful. Value We must make sure the customer canmeasure the
impact of our solution. Left to theirown devices they may not have
the knowledgeor methods to quantify the savings. Invisible Pain?
CAMFIL FARR Sales Metrics & Analytics
CAMFIL FARR Elimination of Waste Current State Future State
Building A Product
CAMFIL FARR Building A Product Building A Customer Current State
Future State Sales Executive Council B2B Index 2009-2012
CAMFIL FARR 15% Pre-Sales Time Access to prospects Competing for
time Emphasis on solutions selling 26% Sales Time Reduced customer
access Cancelled appointments Lower deal volumes 15% Post-Sales
Time Constant reassessment of current approach Focus on account
penetration Proof for complex solutions Factors Influencing Sales
Metrics
CAMFIL FARR Longer life air filters. Selling TCO. Economy.
Internet/social media. Predicting product trends &inventory.
Metrics for Profitable Growth
CAMFIL FARR #1 - Appointments (14/Week) #2 - Opportunity pipeline
(90 day value = growthtarget x closure rate) #3 - Sales mix (60-70%
5 Star ratio) #4 - Conversion rate (25% of opportunities) #5 -
Gross margin % by account/salesperson(35%- 5 Star products 40-60%)
#6 - New accounts added (2-4/month based onattrition). Strategies
for Sales Cycle Reduction
CAMFIL FARR 34% Paradigm Update Social Media
CAMFIL FARR 2 million search queries are conducted every minute
Viewers watch 3 billion hours of video per month 83% of Twitter
users have attended college 34% 50% of all social media users are
years of age Of small businesses use social media to attract new
customers Prospecting Right technology Right technique Right
audience
CAMFIL FARR Right technology Right technique Right audience Right
message Right math (time & appointments) Three Cs of
Prospecting
CAMFIL FARR Three Cs of Prospecting Concise Convincing Compelling
$1 to save $5-10? plus R.O.I Were Selling Math! Would you
spend?
CAMFIL FARR Would you spend? R.O.I $1 to save $5-10? plus Improve
indoor air quality by 30-40%. Increase employee productivity by6%.
Lower your healthcare experience cost factor. Increase your
sustainability profile. Quantify The Cost of Delay
CAMFIL FARR Research shows that people will do more to avoid a loss
than to score a win. Fortune Feb. 4, 2013 Savings per week not
realized by delay of implementation = $1,072
Quantify The Cost of Delay CAMFIL FARR Savings per week not
realized by delay of implementation = $1,072 Large hospital LCC
over 2 years based on: AAF vs. 30/30 & Hi-Flo ES 10 cents per
KWH 400 fpm and 24/7 hours of operation Local Proof &
Guarantees
CAMFIL FARR Coil, belt, fan maintenance Labor lost opportunity cost
Roof repair
Filter Cost CAMFIL FARR Energy Cost Labor Cost Disposal Cost
Transaction cost Coil, belt, fan maintenance Labor lost opportunity
cost Roof repair Administrative & selection cost IAQ cost First
Cost & Cost Per Year
Quick Cost Calculator CAMFIL FARR = 3 First Cost & Cost Per
Year Ultimate TCO/IAQ CAMFIL FARR 2017-04-26 Increase your pipeline
& use metrics
Use technology, technique & time Measure your activity,
behavior & results Sell math at the right level Remember what
we are selling Change to whom you are selling Dont let proof delay
the close The right tool from the tool box Develop local proof
& guarantee materials CAMFIL FARR
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