welcome to sales skills anthony rees. facilitation, training and personal development consultant bsc...
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Welcome to Sales Skills
Anthony Rees
Anthony Rees• Facilitation, Training and Personal Development Consultant
• BSc (Hons), MBA, MBTI, SDI, Belbin & DISC Accredited
• Fellow Institute of Management Consulting
• 20 years FS / Management Consultancy and client facing roles
• Consultancy and Sales
• Clients include Visa International, BAE Systems, Nokia Siemens, SmartStream, Odyssey, Wall Street Systems, Motorola, BT, PSD Group, Hedra, Capita & Capco.
• FS Clients include JPMorgan Chase, Deutsche Bank, ABN, ING, EBRD, BNP Paribas
3 - Consulting 101 - Day 1 - 3 Master Nov 07 - - Capco confidential
Recognitionof need tochange
Evaluationofoptions
Consensusof need tochange
Recognitionof need for outside help
Decisionto partner with you
Implementchanges
Valuerealised
You should be influencing and working with client throughout
The buying process
How buyers buy external consulting services
4 - Consulting 101 - Day 1 - 3 Master Nov 07 - - Capco confidential
The Sales Cycle
How to sell services and solutions
CloseSale
Target Issues,Prospects &Clients
Call and Qualify
DevelopStrategy
DevelopOffer
PresentOffer
SellAdditionalWork
You should be managing the process throughout
5 - Consulting 101 - Day 1 - 3 Master Nov 07 - - Capco confidential
Aligning the buying and selling processes
• Any sale will bog down or fail if either process is ignored– The buying process will always override the selling process– Your position analysis must take into account the client’s buying
process– Movement through the buying process is measured by activities, NOT
time– Individual stakeholders and other players may be at different steps
from each other in the buying processToo often, we only take into account where we are in our selling process without regard to where the client is in their buying process. Buyers have
their own agendas
Qualifying – Check list
• What do we need to know?– Business imperative – Business need – Budget– Timing– Decision process– Competition– Political players (decision
makers and influencers)
Finding what we need to know - The SPIN® model – Neil Rackham
Benefits
Need pay-off questions
Implication questions
Problem questions
Situation questions
Explicit needs
Implied needs
The seller uses
To establish context
So buyer reveals
Which are developed by:
Makes buyers see problem more clearly
Leading to So that buyer states
Allows seller to state
Leading to
Situation questions• Questions about the current situation to establish context:
– Tell me about your business– How many staff do you employ?– Which systems do you currently use? – Who and what is involved?– What is the process for developing a new strategy?
9 - Consulting 101 - Day 1 - 3 Master Nov 07 - - Capco confidential
Problem questions• Situation questions lead to problem questions so that buyer reveals
implied needs:– Are you satisfied with your present processes?– What’s the issue here?– Are you able to process a day’s business with your current systems?– Which departments are having problems as a result of this issue?– Are you losing market share as a result of your strategy?– What are the major business implications of this problem?
10 - Consulting 101 - Day 1 - 3 Master Nov 07 - - Capco confidential
Implication questions
• Implied needs are then developed further by the use of implication questions, which make the buyer feel the problem more clearly– What is the impact of not being able capture those deal types?– What sort of consequences does that have?– Does that have a knock-on effect with risk management?– When that happens does it cause problems in accounting?– Am I right in assuming that when this problem occurs, it sometime
results in delays in issuing deal confirmations?– On a scale of 1–10, how important is this problem in preventing your
department moving forward? Are you satisfied with your present processes?
11 - Consulting 101 - Day 1 - 3 Master Nov 07 - - Capco confidential
Need pay-off questions• This leads to needs-payoff questions so that the buyer states explicit
needs– Are you saying it would help if your CRM function was managed
centrally?– So are you looking for an integrated deal capture and risk
management system?– What would it mean to you if you were to solve this problem? – How would you know if the problem had been solved?– Would you like to be able to consolidate global credit risk positions?
1. Understanding the objective - The project objective and benefit statement
SPIN®
Benefits
Need pay-offquestions
Implicationquestions
Problem questions
Situation questions
Explicit needs
Implied needs
So buyer reveals
Which are developed by:
So that buyer states
Allows seller to state
“So, if I understand you correctly, if you had the ability to [x], you could [y] and that would help you to [z]”
A FABulous Sales Strategy
• Emphasises Features And Benefits• Converts product features into customer benefits
– Customers buy benefits, not features– Customers buy what the product will do for them
• Provide evidence or proof of benefits• Obtains prospect agreement or acceptance of
benefits
Features Are facts (undisputable) about the product, services,
company, salesperson, etc. Are characteristics or traits that can be proven with
data/evidence Generally deal with ‘what is it’ or ‘how does it work’
questions Features would include specific information about a product
such as:
WeightVolumeShapeColorTaste/flavor
OdorPriceQuantityPackagingIngredients/composition
Production processDelivery termsQuality/grade/traitsGuarantees
Benefits are . . . • The end results of a feature for a customer• The good things that happen to a customer as a
result of using a product• The customer’s perception of a product’s ‘value’• Needs met by using a product• Problems solved by using a product• Wants obtained by using a product• The reasons people buy a product
Proving Benefits
Customers often need evidence, not just your opinion, that benefits exist
Claims need to be Believable (not exaggerated) Supportable with evidence Made positively, confidently (without being cocky)
Don’t overwhelm the customer with evidence but do use evidence from multiple sources
Research results (3rd party best)Field testsOther user results/storiesPhotographsDemonstrations
CalculationsComparisonsWritten articlesSales aids
Features, NOT Benefits, of a Mechanical Pencil
• Looks professional• Lead lasts a long time• Can keep track of lead hardness• Lead won’t break easily• Don’t have to sharpen• Easy to store, carry• Can attach to pocket• Won’t rust• Non-slip grip• Lead is replaceable• Covered eraser
Mechanical pencil (features and benefits summary example)
1. State feature/link the benefit“This mechanical pencil has a fully retractable point which means you won’t get those nasty holes or black spots on your clean shirts.”
2. Provide evidence“Here, let me show you. If I push on the top of the pencil and simultaneously push on the lead at the bottom, the lead retracts fully into the barrel of the pencil.”
3. Secure agreement“Pretty neat, huh? Here you try it. Do you agree that not ruining your shirts is an important consideration in buying a mechanical pencil?”
Converting Features into Benefits [Mechanical Lead Pencil] Example
Feature (Because of …) Benefit (You will be able to …)(Which means …)
• .5 mm lead - maintain fine point- have sharper more professional writing
2. Retractable lead & point - avoid holes in shirt pocket- make better impression- keep wife happier
3. Automatic lead feed - save time- avoid dirty fingers
4. Easy to disassemble - easy to maintain/service- less ‘downtime’
5. Lead type indicator - remember type lead used6. Stainless steel parts - will last long time
- attractive—looks good
Converting Features Into Benefits Liquid Nitrogen Solution Example
Feature (Because of …) Benefit (You will be able to …)(Which means …)
1. Liquid form - easier to handle- less effort- cleaner
2. Low pressure storage - safer- less chance injury
3. Can be applied prior - no chance of not getting nitrogen onto planting
4. Can serve as carrier - single application cheaperfor pesticides - more effective coverage
5. Specific chemical properties - less loss to evaporation- quicker plant response- higher yield
Features and Benefits Summary
1. State the feature and link the benefit2. Provide sufficient evidence of the benefit3. Secure agreement from the prospect that
they see the benefit
© ARCL 22
Better understand the value of our solutions to clients
• Identify/Create new opportunities • Improve competitive wins/avoid competition• Reduce sales cycle• Increase sales values• Improve your standing as a partner and market expert
PVS Objectives
© ARCL 23
Proactive?
• Not proactive = reactive—join the ‘beauty parade’• Without proactivity, some projects may never exist• Without proactivity, some projects will remain in-house• Without proactivity, some projects will go to competitors• Current relationships can only take us so far…
So how do we generate interest…
Why is PVS important?
© ARCL 24
…Value• Prospects will talk if they believe we can help solve current issues• Projects will get off the ground only if a sponsor can get info early
on to demonstrate real potential value.• Projects will only progress with a strong business case • Co’s who help with the above will be seen as partners • It is not enough to provide RFI responses, presentations and price
and hope the prospect can work out the value himself.
If we don’t do it someone else will….
Why is PVS important?
© ARCL 25
In a recent survey • 70% of IT decision makers said that they needed a
quantitative business case for all investments over $100K.• 79% have used vendor ROI collateral in their business
cases• Over 50% said they thought vendors should do more to
help with business cases.• 70% of vendors have developed ‘some’ value-based’
collateral
Why is PVS important?
© ARCL 26
Marketing or Sales?‘Marketing develops value propositions aimed at groups of customers or market segments. These generic value propositions must create interest and leads.
It is the job of sales to take those interested potential clients and develop the unique value proposition for their particular needs. If sales merely re-iterates the generic value proposition then they are not doing their jobs and should be fired!’
Dave Brock-Partners in Excellence, from‘Is there Real Value in Your Value Proposition?’
PVS - so who’s job is it anyway?
© ARCL 27
Differentiators
Client Drivers
Cli
ent E
xam
ples
Quantitative Business Value C
ompa
re to
Alt
erna
tive
s?
Solution
Capabilities
Market Drivers
The PVS Framework
Measures
© ARCL 28
Framework Elements
Why have clients bought from us in the past?
3 Categories - Increase RevenueSave CostsRisk and Compliance
Client Drivers
Market Drivers What is driving buyers now? Are our historic client drivers still relevant?
Capabilities Which of the above drivers are we best placed to market and sell against proactively.
Differentiators What alternatives will the client have? How are our capabilities unique?
Continued….
© ARCL 29
Framework Elements
What is the solution that we will actually deliver? What business benefits will this bring? The heart of the proposition.
Solution
Measures To turn Value Propositions into Quantitative benefits.
Quantitative Benefits
How much? By when? Evidence?
© ARCL 30
Specific Value Proposition
Small Private Bank needs to reduce number of clients lost each year to bigger competitors.
Client Driver
Capability Improved Client Reporting
Differentiator Integrated to existing system, so reduces implementation time and interface costs.
SolutionClient Reporting Module plus implementation and training to maximise flexibility offered to clients.
Continued….
Wealth Management Product Supplier
© ARCL 31
Specific Value Proposition
Reduction in number of clients lost. Increase in new clients.
Measures
Quantification
Average fees per client per year of £10k. Reduce loss of clients by 25 per year and add 25 new clients. Total value of £500k per annum.
Example Bank X achieved a similar turnaround in year 1 after implementation, giving ROI in 9 months.
© ARCL 32
Specific Value Proposition
Reduce annual spend on unused software.Client Driver
CapabilityReview all IT systems registered/loaded on servers and desktops. Review supplier contracts.
Differentiator We have methodology for this which our competitors do not have.
SolutionInventory of unused/unwanted software. Action plan to remove it.
Continued….
Banking IT Consultancy
© ARCL 33
Specific Value Proposition
Decommissioning of totally unwanted software.
Measures
QuantificationSavings in annual maintenance. Reduced need for hardware expansion purchases.
Example Z Bank reduced software vendor fees by E2 million pa.
© ARCL 34
Brainstorm on business drivers of existing and past clients.
Identify their category--‘Revenue Increase/Cost Reduction /Risk and Compliance’.
PVS DevelopmentClient Driver
© ARCL 35
PVS Development
Market Driver
Brainstorm on existing market drivers using knowledge of existing clients and industry reports etc. How do these compare with our client’s drivers from the previous exercise? Which of them are we well placed to meet?Again identify their category--‘Revenue Increase/Cost Reduction /Risk and Compliance’.
© ARCL 36
For each key driver identified, consider our capability and experience. Grade our ability to build a compelling proactive argument around each driver as 1/2/3.
Capabilities
PVS Development
© ARCL 37
What generic differentiators do we have?
How do they vary for each client driver?
Which ones apply to which competitors?
Differentiators
PVS Development
© ARCL 38
• Take the previous categories and apply them to a specific case.
• What will we actually deliver?• What client/market drivers does it solve?• What value will the client get?• What makes your solution unique?
Solution
PVS Development
© ARCL 39
Working towards quantification of benefits, brainstorm to identify key ratios and measures.
Ideally benchmarks are needed from client base and market data.
PVS Development
Measures
© ARCL 40
• Explode the myth that benefits in our business are often ‘intangible’ by calculating potential $ results.
• Cost saving is more definite and measurable. • Revenue increase is more exciting and scalable.• Initially you will lack real examples, but agreed sensible
targets (eg 5% admin staff saved) can still support strong business cases.
PVS Development
QuantificationExamples
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