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Sample Sales Strategy Not Market Strategy

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Sample Sales Strategy Not Market Strategy Powered By Docstoc
					 Align Your Sales
Strategy With Your
Corporate Strategy


        Russ Lombardo
     PEAK Sales Consulting
        (702)655-5652
 Russ@PeakSalesConsulting.com
             Where is Your Strategy Going?




www.PeakSalesConsulting.com                  (702) 655-5652
   Is your sales plan aligned with your
   corporate strategy?

     A. Yes, totally

     B. Some, but not enough

     C. No




www.PeakSalesConsulting.com               (702) 655-5652
             Sales Effectiveness & Customer
              Retention Survey – Jan. 2004
                                                 Is your sales plan aligned with your
                                                          corporate strategy?

                                                                              50%
                                                              48%
                                                 50%
                    % Respondents (Total # 42)




                                                 45%
                                                 40%
                                                 35%
                                                 30%
                                                 25%
                                                 20%
                                                 15%
                                                 10%                                       2%
                                                  5%
                                                  0%
                                                       Yes, totally   Some, but not   No
                                                                        enough

www.PeakSalesConsulting.com                                                                     (702) 655-5652
       Impact of Misaligned Strategies

       Perplexed Management
       Dispersed Sales Resources and Efforts
       Inconsistent Forecasts/Revenue
       Conflicting Marketing Messages
       Confused Customers
       Negative Effects on Customer Retention


www.PeakSalesConsulting.com                      (702) 655-5652
      Symptoms

                               Negative         Positive
       Leadership             Clouded &      Clear vision &
                              inconsistent   direction




www.PeakSalesConsulting.com                              (702) 655-5652
   Symptoms
                                 Negative         Positive
   Leadership                 Clouded &        Clear vision &
                              inconsistent     direction
   Communication Problems,                     Top-down,
                              concerns &       clear w/ buy-in
                              creativity not   of goals & obj.
                              shared




www.PeakSalesConsulting.com                              (702) 655-5652
  Symptoms
                                   Negative             Positive
 Leadership                   Clouded &            Clear vision &
                              inconsistent         direction
 Communication                Problems,            Top-down, clear
                              concerns &           w/ buy-in of goals
                              creativity not       & obj.
                              shared
 Management                   Cumbersome and       Processes in place
                              lacks verification   to monitor
                                                   progress


www.PeakSalesConsulting.com                                   (702) 655-5652
     Symptoms
                                   Negative              Positive
      Leadership              Clouded &            Clear vision &
                              inconsistent         direction

      Communication           Problems, concerns Top-down, clear w/
                              & creativity not   buy-in of goals &
                              shared             obj.
      Management              Cumbersome and       Processes in place
                              lacks verification   to monitor progress

      Courage                 No risk-taking       Instinct & guts to
                                                   make tough
                                                   decisions


www.PeakSalesConsulting.com                                     (702) 655-5652
  Symptoms
                                    Negative               Positive
Leadership                    Clouded &             Clear vision &
                              inconsistent          direction

Communication                 Problems, concerns & Top-down, clear w/
                              creativity not shared buy-in of goals & obj.

Management                    Cumbersome and        Processes in place to
                              lacks verification    monitor progress

Courage                       No risk-taking        Instinct & guts to
                                                    make tough decisions

Timeliness                    Unnecessarily long    Efficient to meet
                              and drawn out         customer demands


www.PeakSalesConsulting.com                                      (702) 655-5652
   Corporate Strategy

                              Defines the overall
                               “Sales Process”

             The process by which a Customer moves
                  throughout the entire company




www.PeakSalesConsulting.com                         (702) 655-5652
The Corporate Silo

                                                              Customer
               Field Sales
                                                               Service
                                           Accounting

    Leads



  Marketing
  Campaigns            Telemarketing


                                                        Order Processing
  Marketing


                                       Management

              Tech Support
   The Effect on the Customer

                          Poor Support




               Service
               Failures                       Exposure to
                                              Competition


                Confusion



                                               Reduced
                    Unmet                   Customer Spend
                 Expectations




                  Stop screwing with their mind!
www.PeakSalesConsulting.com                             (702) 655-5652
 Lit Kit              - Outbound
                      - Scripts
                      - Data Gathering
                                                  Field           Further            - Calls
                                                                                     - Appts
                                                                                                                                    *
                                                Sales Rep         Qualify                                           Close
                      - Qualify                                                      - Quotes
                      - Assign Field Rep                                                                             $$$
                                                                                     - Proposals
                      - Send Info
                                                                                     - Tech Info                                    *
                             Tele-                                                   - Correspondence
Inbound                     Marketing                        Forecasts,
                                                            Activity Lists,
                                                              Pipeline                                                  - Process Order
                                                                                                           Order        - Fulfillment
                                                                                                           Admin        - Schedule Shipping

              Leads
 Mailing                                                                    Sales Mgmt
  Lists                          Competitive
                                    Info                                                                               - Generate Invoices
            Marketing
                                                                           Reports                  Accounting         - Receivables
            Campaigns

                                                     Cross Sell:                                        Account
                                                     - Addt’l Products                                  History

                                                     - New Products
            Marketing                                - New Versions/Revs                                           - Order Tracking
                                                     - Services                                                    - Customer Follow Up
                                                                                                  Customer         - Sales Inquiries
                                                                                                   Service

 Customer           Leads                       Problem/                                   - Trouble Tickets
  Profile          Analysis                    Resolution                Tech Support      - Incident Tracking
                                                                                           - Problem Escalation



    *                   *                      R&D
  Life-Cycle Management




www.PeakSalesConsulting.com   (702) 655-5652
 Lit Kit              - Outbound
                      - Scripts
                      - Data Gathering
                                                  Field           Further            - Calls
                                                                                     - Appts
                                                                                                                                    *
                                                Sales Rep         Qualify                                           Close
                      - Qualify                                                      - Quotes
                      - Assign Field Rep                                                                             $$$
                                                                                     - Proposals
                      - Send Info
                                                                                     - Tech Info                                    *
                             Tele-                                                   - Correspondence
Inbound                     Marketing                        Forecasts,
                                                            Activity Lists,
                                                              Pipeline                                                  - Process Order
                                                                                                           Order        - Fulfillment
                                                                                                           Admin        - Schedule Shipping

              Leads
 Mailing                                                                    Sales Mgmt
  Lists                          Competitive
                                    Info                                                                               - Generate Invoices
            Marketing
                                                                           Reports                  Accounting         - Receivables
            Campaigns

                                                     Cross Sell:                                        Account
                                                     - Addt’l Products                                  History

                                                     - New Products
            Marketing                                - New Versions/Revs                                           - Order Tracking
                                                     - Services                                                    - Customer Follow Up
                                                                                                  Customer         - Sales Inquiries
                                                                                                   Service

 Customer           Leads                       Problem/                                   - Trouble Tickets
  Profile          Analysis                    Resolution                Tech Support      - Incident Tracking
                                                                                           - Problem Escalation



    *                   *                      R&D
  Does your sales team use any particular sales
  process or methodology?

    A. All use the same company approved
       process

    B. Some use one, others do not

    C. No




www.PeakSalesConsulting.com                (702) 655-5652
Sales Effectiveness & Customer Retention
Survey – Jan. 2004
             Does your sales team use any particular sales
                        process or methodology?

                                                60%
                                                                                54%
                   % Respondents (Total # 43)




                                                50%

                                                40%            37%

                                                30%

                                                20%
                                                                                            9%
                                                10%

                                                0%
                                                       All use the same   Some use one,    No
                                                      company approved     others do not
                                                            process

www.PeakSalesConsulting.com                                                                      (702) 655-5652
     Benefits of a Sales Process
      A good process helps you build an accurate
       Forecast
      Each “stage” is clearly defined
      More confidence in where you are in the
       process
      Helps plan your next steps
      Assists with territory management, reaching
       quota, task management, etc.

www.PeakSalesConsulting.com                  (702) 655-5652
     Reality Check

                    For Sales to Succeed,
                           You Need:
                     Sales People Sell By Process
                      - Sales Training
                           or By Accident…
                      - Sales Processes

                          And Accidents Don’t Happen
                                 Often Enough!

www.PeakSalesConsulting.com                            (702) 655-5652
     Sales Training
      The methodology within the process
      Aligned with the corporate strategy
      Includes:
          •   Cold calling
          •   Qualifying
          •   Listening/questioning
          •   Presenting solutions
          •   Overcoming objections
          •   Negotiating
          •   Closing
          •   Customer retention
www.PeakSalesConsulting.com                  (702) 655-5652
Sales Process
                LEADS                   Action

           10% - Initial Contact         Cold Call

                                      Listen/Qualify/
            20% - Qualified
                                     Understand Req’ts
           40% - Presentation         Establish Credibility

            60% - Proposal           Present Solutions

           80% - Negotiations       Negotiate/Close

             90% - Final PO        Handle Objections/
                                       Keep Sale
                100% - Closed


                SALES
    Selling The Process To Your Sales Team
    • Understand the problems that need to be
      solved
         • What needs to be fixed
         • What needs to improve (refine what’s right)
    • Make sure sales reps fully understand those
      problems
    • Ensure benefits are for the sales team
    • Include Sales Reps on the planning team
         • Part of the solution
         • Successful, experienced Pros
         • New and struggling reps
    • Communicate & train
www.PeakSalesConsulting.com                              (702) 655-5652
   Incenting Sales to Succeed
     Compensation Plan
         •   Drives Sales’ behavior & serves corporate strategy
         •   Align with corporate strategy and commitments
         •   Customer focus
         •   Should treat reps like customers
         •   Distinguish top, middle and low performers
         •   Simple to administer and understand
         •   Review yearly, modify accordingly




www.PeakSalesConsulting.com                               (702) 655-5652
                       Marketing’s Role




www.PeakSalesConsulting.com               (702) 655-5652
      Marketing’s Strategy

        A function of the corporate strategy

        Target markets, product promotions, etc.

        Must be compatible with sale’s goals

        Marketing campaigns & target markets
            •   Support Sales’ efforts
            •   Align with comp plans



www.PeakSalesConsulting.com                     (702) 655-5652
      Marketing’s Strategy
       Bad Marketing Strategy:
           •   Marketing promotes Interior Upgrades but
               Sales gets bonus for selling Jet Engines



       Good Marketing Strategy
           •   Marketing promotes end-of-quarter sale to
               increase training programs, Sales gets bonus
               on selling training programs!!




www.PeakSalesConsulting.com                               (702) 655-5652
  Do you have a comprehensive lead flow system
  that effectively acquires leads, qualifies them, sends
  them to the appropriate sales person, and then
  follows up on those leads over time?


    A. Good system that works well

    B. Partial system, needs improvement

    C. No




www.PeakSalesConsulting.com                         (702) 655-5652
   Sales Effectiveness & Customer
   Retention Survey – Jan. 2004
         Do you have a comprehensive lead flow system that effectively acquires
           leads, qualifies them, sends them to the appropriate sales person, and
                          then follows up on those leads over time?


                                                                                  56%
                                                 60%
                    % Respondents (Total # 43)




                                                 50%

                                                 40%
                                                                26%
                                                 30%                                             19%
                                                 20%

                                                 10%

                                                 0%
                                                       Good system that   Partial system,   No
                                                          works well    needs improvement



www.PeakSalesConsulting.com                                                                            (702) 655-5652
                     Technology’s Role




www.PeakSalesConsulting.com              (702) 655-5652
    Technology

     Used to deploy your strategy and process, not
      drive It
     Replicates best practices
     Helps weaker sales reps succeed
     Reduces learning curve for new hires
     Use specialists to design & implement



www.PeakSalesConsulting.com                   (702) 655-5652
      How Technology Helps the Customer
     Follow-up
     Fast answers from customer service,
      support, etc.
     Corporate awareness of customer history
     Fast, efficient support and service
     Consistency
     Develops loyalty, encourages customer
      retention

www.PeakSalesConsulting.com                   (702) 655-5652
Technology - Sample
        Measuring Success
        Internal productivity gains
        Shorter transaction times
        Reduced support requirements
        Customer satisfaction measurement
        Repeat business
        Closer customer relationship
        Sales force assessment and rating
        Increased revenues, profits, ROI, etc.



www.PeakSalesConsulting.com                       (702) 655-5652
      Measuring Success
       Set the success criteria from the outset
           •   What are your business performance targets
           •   What are your technical performance targets
           •   How can you measure organizational and
               workgroup satisfaction
       Use these measures as focal
        points throughout the process
           •   Continually seek feedback from participants




www.PeakSalesConsulting.com                                  (702) 655-5652
      Customer Example

       High-tech vendor

       Large reseller channel

       Direct/indirect sales team

       Recent merger




www.PeakSalesConsulting.com          (702) 655-5652
  Customer Example
             Problem                     Action                     Results
  20% of leads distributed to   New Lead-Flow System       80% leads distributed to
  channel – 80% stagnated                                  channel
  Leads not for right target    Marketing focused on core 50% increase in lead
  market or product             business as defined by    quality, determined by
                                Corporate Strategy        successful entry into
                                                          pipeline
  New product from merger       Comp plan incented Sales   25% increase in new
  not gaining in sales          on new product revenue     product sales first year
  Customer Satisfaction &       Began Customer Care        Cust. Sat. increased &
  Loyalty low, worsened by      program                    defections decreased,
  increased competition                                    thus loyalty increased.
                                                           Increased future sales.
  Dissention among              Instituted Team Selling    Eliminated problem ~1
  competing groups (inside,     programs & associated      Qtr. Increased program
  outside, product-line,        comp plans, bonus          cost but increased sales
  departmental, etc)            structure                  and retention.



www.PeakSalesConsulting.com                                                   (702) 655-5652
   Summary

                     Corporate     Sales Strategy
                Strategy/Goals
            Improve Customer       Bonus plan for
                     Retention        Customer
                                 Satisfaction ratings




www.PeakSalesConsulting.com                         (702) 655-5652
        Summary

                   Corporate      Sales Strategy
              Strategy/Goals
          Improve Customer        Bonus plan for
                    Retention        Customer
                                Satisfaction ratings
             Increase Market      Compensation
                  Share           geared toward
                                  acquiring new
                                    customers

www.PeakSalesConsulting.com                        (702) 655-5652
    Summary

        Corporate Strategy/Goals        Sales Strategy
              Improve Customer     Bonus plan for Customer
                 Retention           Satisfaction ratings
           Increase Market Share    Compensation geared
                                    toward acquiring new
                                         customers
               Reduce Expenses     Provide tools for Sales to
                                          do remote
                                       meetings/demos



www.PeakSalesConsulting.com                              (702) 655-5652
     Summary
          Corporate Strategy/Goals          Sales Strategy
        Improve Customer             Bonus plan for Customer
        Retention                    Satisfaction ratings

        Increase Market Share        Compensation geared
                                     toward acquiring new
                                     customers
        Reduce Expenses              Provide tools for Sales to do
                                     remote meetings/demos

        Prevent Customer Defection   Streamline sales process,
                                     order processing, follow-up,
                                     etc.


www.PeakSalesConsulting.com                                   (702) 655-5652
       How did you like my presentation?

        A. Loved it, can’t believe I learned so much

        B. Looking forward to getting back to start
           implementing these ideas

        C. Hated it. Wish I stayed at the bar!




www.PeakSalesConsulting.com                      (702) 655-5652
    Thank You!


       Russ Lombardo
    PEAK Sales Consulting
       (702)655-5652
Russ@PeakSalesConsulting.com
www.PeakSalesConsulting.com

				
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