SALES PERFORMANCE INTERNATIONAL
www.spisales.com | www.solutionselling.com
Sales Performance International CUNA Marketing & Business Development Council
Business Development The Solution Selling Way
KEITH M. EADES
CEO, Sales Performance International Best Selling Author: The New Solution Selling The Solution Selling Fieldbook The Solution-Centric Organization
May 1, 2012
SALES PERFORMANCE1-May-12 | SALES PERFORMANCE INTERNATIONAL CONFIDENTIAL | PAGE 1 INTERNATIONAL
SALES PERFORMANCE INTERNATIONAL
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Business Development Is This Selling?
Selling is this positive or negative? How many of you want your children to be salespeople? What is honorable selling? What would an honorable salesperson focus on? Do you make a conscience decision every day to sell? or not to sell?
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What is a Solution?
A solution is a mutually agreed-upon answer to a recognized problem - that provides measurable improvement (value).
After: Measurable DELTA (or difference)
What is the positive transformation (outcome)?
Before: Baseline of Current Situation
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Moving Up the Relationship Staircase
5
Trusted Partner Highest level; contributions viewed as key to customers long term success
4
Strategic Contributor Customers view you as a source of strategic planning insight & assistance
Customer Value
3
Solutions Consultant Value-add knowledge; not only vendor but consulting resource (preferred status)
2
Preferred Supplier Normally seen as the preferred vendor to conduct business with
1
Approved Vendor Legitimate provider of products and services: not seen for having a competitive edge
Depth of Relationship
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What Motivates Members?
NO PAIN, NO CHANGE
Pain =
Problem Critical Business or Personal Issue Potential Missed Opportunity
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SALES PERFORMANCE INTERNATIONAL
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3 Levels of Buyer Needs
Level Three: Vision
Level Two: Admitted Pain
Level One: Latent Pain
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Shifting Buyer Concerns
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The World of Potential Opportunities
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How Buyers Buy
Requirements Company A
Company B
Company C
COLUMN FODDER
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SALES PERFORMANCE INTERNATIONAL
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How to Increase Membership Loyalty
Going Beyond the 50% Primary Financial Institution (PFI)
Follow a process Cross sell and up sell model Utilize business development tools
Key Players List Diagnostic Model Pain Sheets Value Propositions
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SALES PERFORMANCE INTERNATIONAL
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Why have a Sales Process?
Provides everyone a roadmap of what to do next, which leads to a higher probability of success
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SALES PERFORMANCE INTERNATIONAL
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Talent Assessment
Are intuitive Have conversations Ask questions
Eagles
Make presentations Make statements Process is key to success
Journeypeople
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Impact of Sales Process on Sales Performance
Negative Impact 1%
Do Not Know 6%
No Impact 5%
Significantly Improves 39%
Modestly Improves 49%
88% of respondents indicated that a sales process either improves or significantly improves their sales performance
Source - 2008 Sales Performance Optimization Report
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SALES PERFORMANCE INTERNATIONAL
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Microsoft Solution Selling Process (MSSP)
Customer satisfaction
Very Satisfied
Worldwide Avg.
+19% 16% Yr 1 + 6% 19% Yr 2
Using MSSP
+44% 23% 16% Yr 01 Yr 02 - 16% 19%
MSSP Impact
Setting customer expectations satisfaction
Dissatisfied
15% Yr 01
16% Yr 02 Yr 01
16% Yr 02
Quota Attainment
140% of Quota
100% of Quota
<100 % of Quota
15% 55%
140% of Quota 100% of Quota <100 % of Quota
23% 69% 9% Yr 02
30% Yr 1
More successful sales reps !
Source : Microsoft WW customer satisfaction survey, internal interviews
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Solution Selling Sales Process
CUSTOMER BUYING PROCESS SALES PROCESS STEPS
ACTIVITIES / MILESTONES
VERIFIABLE OUTCOMES ROLES
SALES AIDS & TOOLS
MANAGEMENT SYSTEM
10% 20% 40% 60% 80% 100%
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SALES PERFORMANCE INTERNATIONAL
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Cross-Selling Challenges
Situational knowledge gap Not comfortable
People
Products
Services
No reward for cross-sales
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Situational Fluency for Cross-Selling
What do you need to know to successfully cross-sell?
Who to target in your BtoB market or your membership? What are the critical business and personal issues that your capabilities address? What differentiated capabilities do you have? What value, if any, does this bring to your customers or members?
4 Key Knowledge-Base Components for Cross-Selling
Targets
Critical Business or Personal Issues
Differentiated Capabilities
Value
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4 Key Knowledge-Base Components for Cross-Selling
Targets Critical Business or Personal Issues Differentiated Capabilities Value
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Key Players List: Example
Key Players (Job Title) General Manager
B to B B to C Auto Dealership Home Owner
Potential Pains / Critical Business Issues Declining customer satisfaction Difficulty maximizing customer revenue Declining revenues Limited return customer business Declining Service revenues Customer Satisfaction low Potential Pains / Critical Personal Issues Inability to plan for children's education Inability to make home repairs Difficulty paying for education Inability to buying vehicle for college bound child Limited retirement planning Limited Retirement planning Home maintenance (repair, taxes, etc.) cost increasing
Sales Manager Service Manager Key Players Age 30+
Age 40-50+
Age 60+
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Key Players List: Template
Key Players (Job Title) Potential Pains / Critical Business or Personal Issues
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SALES PERFORMANCE INTERNATIONAL
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4 Key Knowledge-Base Components for Cross-Selling
Targets Critical Business or Personal Issues Differentiated Capabilities Value
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SALES PERFORMANCE INTERNATIONAL
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Pain Sheet - Situational Fluency Prompter
Auto Dealership Example
Pain: Difficulty maximizing customer revenue Job Title & Industry: General Manager Auto Dealership Offering: REASONS (R2) Is it because; Today? A inability to qualify certain customers? CAPABILITIES (C2) What if; Would it help if? A When looking for customer finance options : Who: your finance manager What: could be able to enter a few basic facts about the customer, and be given a menu of finance options that would allow them to be able to ensure the right financing for the customers unique situation. B Limited wallet share from customer? B When closing a sale : Who: your sales people What: could offer a number of extra services to the customer (i.e.. special financing, Auto insurance, etc).
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Pain Sheet - Situational Fluency Prompter
Home Owner Example
Pain: Limited Financial Planning Job Title & Industry: Home Owner 40 50+ Offering: Financial Planning REASONS (R2) Is it because; Today? A How are you going to pay for your children's college? CAPABILITIES (C2) What if; Would it help if? A When: sending your kids to college Who: you
What: could have a portion of the money set aside in an interest bearing account and use special financing to close the remaining gap. B What age did you want to retire? B When: setting that date Who: you and I
What: could set an realistic plan of attack based on your current assets and income that would enable you to achieve your retirement goals
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SALES PERFORMANCE INTERNATIONAL
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Situational Fluency Template
Situation: Key Player: Critical Business Issue: Capabilities:
REASONS
CAPABILITIES
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Open
Diagnostic Questioning Model Vision Creation
PAIN / CBI Diagnose Reasons Visualize Capabilities R1 1 C1 4
Tell me about it, what is causing you to have this (repeat pain)?
What is it going to take for you to be able to (achieve your goal)? Could I try a few ideas on you?
R2
C2
Is it because Reason A? Reason B?... Reason C?... #?, %?, $?
You mentioned (recall reason) Would it help if Capability Vision A?... Capability Vision B?... Capability Vision C?...
Control
R3 Confirming
C3
So, IF you had the ability So, the reasons for your to (summarize capability (pain) are? visions),
Is that correct? THEN could you (achieve your goal)?
BUYING VISION $
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Example: Differentiation Grid
Differentiation Grid Differentiated Capability Interest rates on long-term loans Unique 3 Value 7 10 9 8 C F
A B C D E
Member dividends
Ratio of non/low interest bearing deposits On demand global resources Company has 15 years experience
1
9 6 3
9
1 6 3
U N I Q U E N E S S
7 6 5 4 3 2 1 0 1 2 3 4 5 E
Resources in 14 different languages
10
VALUE
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Differentiation Grid Worksheet
Differentiated Capability A Unique Value 10 9 8 C U N I Q U E N E S S 7 6 5 4 3 2 1 H 0 I J 1 2 3 4 5 6 7 8 9 10 Differentiation Grid
D
E F G
VALUE
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4 Key Knowledge-Base Components for Cross-Selling
Targets Critical Business or Personal Issues Differentiated Capabilities Value
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SALES PERFORMANCE INTERNATIONAL
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Reference Story: Example
Situation: General Manager Auto Dealership
Critical Business/ Personal Issue: Reason(s):
Declining sales revenues
Tightening of credit policies
Capability(s):
He told us he needed credit policies that would allow him to make decisions without having to gain prior approval
this capability
We provided
Result:
Over the last twelve months, the auto dealership sales have increased by more than 20%
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Reference Story: Template
Situation:
Critical Business / Personal Issue: Reason(s):
Capability(s):
We provided
Result:
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Building a Compelling Value Proposition
EXTRAPOLATE
Your Offering Customer A Situation
Your Offering Customer B Situation
Measured Results
Projected Results
Reference Story
Initial Value Proposition
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Initial Value Proposition: Example
We believe that Quality Auto should be able to increase its financing revenues by 20% over the next 12 months by providing your customers with access to our credit unions loan packages.
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Initial Value Proposition: Format and Template
We believe that _____________________________ should be able to __________________________________________________________ (by $_______________ or _______________%) through the ability to ________________________________________ as a result of ______________________________________________ for an investment of $_______________.
Value Proposition assumptions being made: ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________
Value Proposition Format: We believe that [ Client name ] should be able to [ improve what ] by [ how much, what %? ] through the ability to [ do what? ] as a result of [ what enabling capabilities? ] for an investment of [ what relative cost? ] .
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Recommendations
Read The New Solution Selling Create an adoption plan (what you will do in next week, month, etc. Develop a Situational Fluency database utilizing the templates provided Walk the talk: use the terms and concepts of Solution Selling in your discussions with everyone
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SALES PERFORMANCE INTERNATIONAL
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Sales Performance International
Thank You
For more information, please visit www.spisales.com www.solutionselling.com
Sales Performance International 4720 Piedmont Row Dr. | Suite 400 Charlotte, North Carolina 28210 t: 704.227.6500 | f: 704.364.8114 email: [email protected]
May 1, 2012
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