B2B Sales Management by utm19462

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									Sales Management, Strategy, & Transformation

  Halligan Background
  B2B Sales Management Basics
  B2B Sales’ Internet Transformation
  B2B Sales Strategy 101
  B2B Sales Case Study: Groove
  Sales & Strategy Reading List
Halligan Background – Professional Experience

  Parametric Technology             Groove Networks
    1990-2000                         2001-2005
    200th employee – 5000 in ’00      Started sales org
    1st Inside Sales Rep              Grew sales from
    Started Asian org – lived in         ‘01: 0 people, $0 rev
    Asia for 7 years                     ’04: 30 people, $19m rev
    Grew Pacific Rim from           Longworth Ventures
       ’93: 0 people, $0 rev          2005-6
       ’97: 200 people, $100m rev
                                      Venture Partner
                                    HubSpot
                                      2006
                                      Ceo
B2B Sales Management Basics

 Harsh reality
 The number!
 Sales Representatives
 Strategic Selling
 Predicting the future
 Other
    Accounts Reviews
    Recruiting (profile)
    Sales Process & methodology
       CRM
    Territory distribution
    Compensation plans
    Rep development: Calls, forecast reviews, account reviews
B2B Sales Management Topics (Harsh Reality)
“I’ve got a battle to fight, I haven’t time to see a salesman”
B2B Sales Management Basics
“Quarteritis…”

“The sun rises & sets on the quarter”
B2B Sales Management Basics
Sales Representatives
  Sales Rep Profile
    Personable, builds trust
    High energy
    Aggressive
    Street Smart (v. book-smart)
    Listeners/nonverbal
    Motivated by money
  80-20 rule
  Compensation
    Base $90k - $100k
    Commission $125k (plus draw)
       0%-50% quota = x%; 50% -100% quota = 2x%; > quota = 3x%
    Stock options – less important
    President’s Club
    Top reps’ pay > CEO’s
    Measurable & Accountable – high turnover tolerated
B2B Sales Management Basics
Solution Selling -- Customers
                           BOD

                           CEO

LOB       LOB     LOB      LOB      LOB   IT                  Finance   Purchasing Legal
                                          VP Enterprise Apps
…Bus IT   …Bus IT …Bus IT …Bus IT …Bus IT VP Enterprise Infra
                                          CTO
                                          Etc



   Nuclear unit
       SR, SE, Cnslt, Mgmt
   Power Selling
       Champions
       Coaches
       Economic Buyer
   IT, LOB IT, LOB, Prchsg
  Legal, Finance, BOD
   Find Pain, Find $
   Ask questions/listen/non-verbal
B2B Sales Management Basics
Predicting the Future – The Funnel
    B2B Sales Management Basics
    Predicting the Future – The Forecast
                                                                    Current Quarter's Forecast                        Sales Qualifiers                     Prob Adjustments
           Rep                     Account                     Closed         Likely        Upside      Q+1       P   E   D D    I   C C      RD%   VP%    Fcst       Upside
eCommerce                                                        248,405         47,250        15,000    10,000                                               9,025       9,000
Inside Sales                                                     207,900         10,000             -         -                                               1,000           -
Salva                   Army: Stryker 125th TF Olympia           151,662              -             -         -                                                   -           -
McPartland              KPMG - Services                          150,000              -             -         -                                                   -           -
Black                   BAH / Centrix                             78,183              -             -         -                                                   -           -
Okada                   NG / State Near East Bureau               62,894              -             -         -                                                   -           -
Okada                   CARE                                      60,266              -             -         -                                                   -           -
Foster                  Tyco - software                           56,389              -             -         -                                                   -           -
Marcus                  CA Dept of Justice                        56,279              -             -         -                                                   -           -
Wilson                  Microsoft                                 54,856              -             -         -                                                   -           -
                                                                  37,021              -             -         -                                                   -           -
Smith                   SPAWAR-DM,B/U Svr                         36,794              -             -         -                                                   -           -
Black                   DARPA (SAIC/Hicks)                        32,218              -             -         -                                                   -           -
Tyre                    EDS                                       28,265              -             -         -                                                   -           -
Foster                  Praxair                                   23,977              -             -         -                                                   -           -
Marcus                  State of FL                               22,943              -             -         -                                                   -           -
Shartzer                LDS - Deseret Mgt                         18,483              -             -         -                                                   -           -
Shore                   P&G                                       17,987              -             -         -                                                   -           -
Manniso                 VA - Infrastructure (Albany NY Buyer      15,120              -             -         -                                                   -           -
Tyre                    Shell - trial extension                   15,000              -             -         -                                                   -           -
Smith                   SPAWAR Europe/Ivan(2)                     14,075              -             -         -                                                   -           -
Salva                   Army Corp. Of Engineers                        -      1,808,559             -         -    Y Y Y Y Y Y Y              50%   50%     904,280           -
McPartland              EY - enterprise                                -        787,000             -         -    Y Y Y Y Y Y Y              80%   90%      78,700           -
Salva                   Army: HQ                                       -        439,480             -         -    Y Y Y Y Y Y Y              95%   95%      21,974           -
Shartzer                Hitachi Data Systems                           -        192,465             -         -    y Y Y y y Y N              80%   80%      38,493           -
Shore                   GSK                                            -        104,000             -         -    Y Y Y Y Y Y Y              70%   90%      10,400           -
Salva                   PM RESET (Aviation)                            -         93,417             -         -   Y Y Y Y Y Y Y               95%   90%       9,342           -
Shore                   Lowe/Draft                                     -         65,000             -         -    Y Y Y Y Y Y Y              70%   50%      32,500           -
Foster                  Praxair                                        -         59,000             -         -    Y Y Y Y Y Y Y              90%   90%       5,900           -
Manniso                 VA Florida Ohio buyer GTSI                     -         46,125             -         -    Y Y Y Y Y Y Y              90%   90%       4,613           -
Hommes & Process (Fr)   CCAIG                                          -         40,000             -         -                                     100%
Marcus                  State of FL                                    -         22,943             -         -   Y Y Y     Y Y Y        Y    90%   80%      4,589           -
Edginton                Intermec                                       -         21,893             -         -    Y Y Y     Y Y Y        N   75%   75%      5,473           -
Tyre                    American Express                               -              -       678,000         -    Y Y N     N Y Y        N   40%   40%          -     271,200
Wilson                  Intel                                          -              -       310,126         -    Y Y N     N Y Y        N   60%   60%          -     186,076
McPartland              KPMG - Servers                                 -              -       132,600         -    Y Y Y     N Y Y        Y   35%   35%          -      46,410
Marcus                  USG - New project                              -              -       125,000         -    y y y     y y y        N   75%   50%          -      62,500
Foster                  Siemens                                        -              -        86,000         -    Y Y Y     Y Y Y        Y   50%   60%          -      51,600
Foster                  Siemens                                        -              -        55,000         -    Y Y Y     Y Y Y        Y   50%   60%          -      33,000
Boyd                    La-Z-Boy                                       -              -        45,850         -    Y Y Y     Y Y Y        Y   65%   65%          -      29,803
B2B Sales Management Basics
Other

Accounts Reviews
Recruiting (profile)
Territory Distribution
Compensation Plans
Sales Rep Development
Sales Process & methodology
B2B Sales’ Internet Transformation
Internet Makes Markets More Efficient

  Buyers of niche goods are more easily connected
  with sellers of niche goods via the internet…
  The role/scope of the sales organization is
  rapidly transforming…
B2B Sales’ Internet Transformation
Size Doesn’t Matter (as much)
B2B Sales’ Internet Transformation
Internet/Google Changing B2B Shopping Patterns

  Top of the funnel moves up
    Your website
    Your blog
    Competitors’ websites
    Your Customers’ blogs
    Industry Discussion boards
  Verbal contact made much later
  Prospects know more than reps
  Prospects better qualified
B2B Sales Strategy 101
Crossing the Chasm…
B2B Sales Strategy 101
Model Comparison
                             TRANSACTIONAL                CONSULTATIVE              ENTERPRISE
  Product or service           Well Understood             Differentiated             High Strategic and/or
  characteristics              Readily substitutable       Customizable             cost importance
                               Standard items              Hidden Capabilities        Limited substitutability

  Key buyer concerns and       Price                        Importance of problem     Platform fit
  decision criteria            Availability risk            Solution fit              Values fit
                               Ease of acquisition          Price-performance         Sustainability
                                                          tradeoffs
  Time horizon                 Event                       Purchasing stream          Strategic plan



  Nature of relationship       Cost - based                Benefits – based           Trust – based
                               Buyer-seller                Client-advisor             Business equals
                               Confrontational             Cooperative                Insider
                                                                                      Both parties change
                                                                                    fundamentally
  Prerequisites for            Access to decision maker    Access to influencers      Access to strategy
  success


  Nature of sale               Doing the deal              Problem solving            Agenda setting
                                                                                      Boundaries blur- unclear
                                                                                    who is selling and who is
                                                                                    buying

 Source: Rethinking the Sales Force
B2B Sales Strategy
Reason for shift to consultative model



 $                                                           Resource commitment
 Cost                                                     needed for consultative selling




               Sales 1                Sales 2   Sales 3        Sales 4           Sales 5




%                                                                                           0%
Return




               Sales 1                Sales 2   Sales 3        Sales 4           Sales 5
 Source: Rethinking the Sales Force
B2B Sales Strategy
Consultative Model
  “Listening and gaining business understanding are more important selling
  skills than persuasion; creativity is more important than product
  knowledge.”
  “The only single ‘truth’ that seems to be holding true for all sales forces is
  that they have to create value for customers if they are to be successful.
  Just communicating the value inherent in their products isn’t enough.”
  “It’s a risky strategy in a consultative sales to go to a senior-level decision
  maker before thoroughly understanding the issues and problems where you
  can create value. Most good consultative salespeople will first do their
  homework by working with those influencers in the buying organization
  who have the best knowledge of the problems and opportunities where the
  selling organization hopes to create value.”




…Quotes from “Rethinking the Sales Force.” Neil Rackham & John DeVincentis
B2B Case Study: Groove Networks
    P0: Evaluation   P1: Validation   P2: Initial Rollout   P3: Enterprise Rollout




     COST OF
      SALE




        REVENUE
B2B Case Study: Groove Networks

  P0: Educate                  P1: Validate       P2: Initial Rollout           P3: Enterprise Rollout

                                         SALES ACTIVITIES
  •   IT call(s)           2 Track Pilot Trial:   • Implement seats &          • Groove as standard
  •   Orientation            - IT validation        gather metrics               desktop DNA
  •   LOB/LOB IT calls       - LOB pain project   • Penetrate new LOBs         • Integrate w/ Ent Apps
  •   Validation                                  • Engage enterprise apps     • Groove broadly deployed
                                                  • Horizontal bus processes     and used throughout
                                                                                 value chain




                                                      Multiple Pain/Lob
        LOB Pain ID’d            Pain Validated       IT Service Offer’g                $1m/yr
          IT Champ                IT Validated             $500K+                    Every desktop
      Validation Process            $100k+                  MSLSA




         2 months                 2-3 months            6 months                      ongoing
B2B Case Study: Groove Networks
Q1 (P)hase Movement

 P0’s                P1’s                  P2’s
    SPAWAR $18K         Lowe       $46K       HP Mktg    $770K
    Hitachi   $10K      ESP        $50K       OCPA       $691K
    CARE       $7K      AMEX        $40K      Siemens    $111K
    DuPont     $7k      Mattel     $35K       SAIC       $142K
    Verizon    $6K      Intermec   $22K       Praxair    $100K
    ServiceCo $16k                            Novartis   $86k
                                              VLH        $522K
                                              Army       $154K
                                              HP C&I     $106K
                                              KPMG       $100K
Further Reading

								
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