welcome to sales skills anthony rees. facilitation, training and personal development consultant bsc...

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


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


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?


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?


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?


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….


© 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


© 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


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


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


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

welcome to sales skills anthony rees. facilitation, training and personal development consultant bsc...

Documents

buying processtoo

capco confidentialaligning

capita capco

capco confidentialyou

current systems

external consulting

problem o

bae systems