B2B Sales Management Strategy

© Copyright Martin Korsin 2009

Sales and Marketing Management StrategySales and Marketing Management Strategy

© Copyright 2009 Martin KorsinSales and Marketing Growth Strategy

Guiding Principles

Disciplined pipeline management

Methodical client base growth

Balanced compensation model

Consistent account management

Defined and measured sales process

Efficient use of Subject Matter Experts

Unified multi-channel marketing and messaging strategy

Scalable profitable growth model


Disciplined pipeline management….

Does the client have this need and budget?

Do we have a relationship?

Do we have thought leadership

Do we understand the buying process?

Has this client bought this from us before?

Will they again?

Do we have a coach?

Do we know the economic, administrative, technical, user and executive buyer?

Is there a burning platform?

Do we know and understand the real problem we are solving?

For each role have we completed the question ladder?

For each role have we completed the complex solution process?

Do we know the price points?

Have we answered the mail?

Have we delivered value to the stakeholders?

Have we understood the competition?

Have we met the price points?

Has everybody said yes?

Have we eliminated competition?

Have we closed all contractual issues?

Is the contract signed?

Did work Start?

Qualified

Client

5%

Qualified

Deal

10%

Qualified

Process

25%

Qualified

Response

50%

Qualified

Sale

75%

Qualified

Revenue

100%

Revenue Visibility

• Pipeline Control Points.

• Deal does not advance until all qualifiers are satisfied

• Sales methodology is built into revenue reporting and forecasting

• probability an expression of the number of deal we are like to close going forward from this point in the pipeline (NOT a revenue forecast)

• Revenue visibility only at qualified response

Conversion and Pipeline Progression Strategy


….while methodically growing the client base…

Existing

Customers

New

Customers

Same market

More existing solutions

New solutions

Existing solutions

New Customers

New MarketsExisting solutions

• Sell more of the same to existing clients

• Sell new stuff to existing clients

• Sell the same stuff to like clients

• Sell like stuff to different clients


….using a balanced compensation model…

Compensation Model Constants

Average Signing Value 1,250,000$

Average Signing Duration (yrs) 3

Average Gross Margin 40%

Expected Income at quota 250,000$

Expected Fixed Income of total comp 50%

Total Number of Deals per annum 6

Total Signing Value 7,500,000.00$

Signing Commission 0.50%

Revenue Commission 1.00%

Profit Commission 3.00%

Fixed Compensation (100K Base) 125,000.00$

Fixed Compensation

Signings

Revenue

Profit

Year Year 1 Year 2 Year 3 Year 4

Signing $7,500,000.00 $7,500,000.00 $7,500,000.00 $7,500,000.00

Revenue $1,250,000.00 2,500,000.00$ 2,500,000.00$ 1,250,000.00$

Revenue $1,250,000.00 2,500,000.00$ 2,500,000.00$

Revenue $1,250,000.00 2,500,000.00$

Revenue $1,250,000.00

Total Annual Revenue $1,250,000.00 $3,750,000.00 $6,250,000.00 $7,500,000.00

Income

Fixed Compensation $ 125,000.00 $ 125,000.00 $ 125,000.00 $ 125,000.00

Signing Commission $ 37,500.00 $ 37,500.00 $ 37,500.00 $ 37,500.00

Revenue Commission $ 12,500.00 $ 37,500.00 $ 62,500.00 $ 75,000.00

Profit Comission $ 10,000.00 $ 30,000.00 $ 50,000.00 $ 60,000.00

Total Earnings $ 185,000.00 $ 230,000.00 $ 275,000.00 $ 297,500.00

% of Revenues 15% 6% 4% 4%

This does not take into account commission sunsetting.

Typically you would sunset or reduce revenue and profit commission after no more than 2 years

The first year of a sales person is nearly always an investment

Total variable compensation paid as a % of signings quota achievement, quarterly

Typically compensation will be weighted toward business objectives for profitability, new business growth or revenue maintenanceVariable Compensation


…with systematic account management,…

� 1-5 primary accounts

– supporting 90-120% of quota

– support 3-5 years of signing attainment

– detailed account plans

� 3 -20 secondary accounts

– supporting 30-50% of quota

– support 1-3 years of signing

– primary account prospect

– high level account plans

� 20-100 leads in new accounts

– 10-20% of quota

– primary account suspect

– hand-off for development

� Account assignment, lead assignment strictly sales management function

Account

Exec

Leads

Secondary

Primary

Accounts

Accounts


… a defined and managed sales process,…

� Centralized, automated, integrated management

– Pre Sales Support

• Resource allocation for meetings, RFPs, contract review, solution development

• Tracking in-flight sales support activities and costs• Resource Allocation

– Pipeline and Forecasting

• Pipeline progression and conversion ratio management• Deal Progression, revenue forecasting by month• Critical deal monitoring• Quota management• Revenue Reporting

– Mobility

• Integration of critical sales data into mobile devices

– Sales Assets

• Presentations, references, case studies, RFP responses, Statements of Work, Contracts

– CRM

• Activity, contact, relationship, account, calendar opportunity, pipeline tracking and management

– Leads and Campaigns

• Lead progression management from entry through disposition/ conversion

• Lead source management• Email campaigns, shows, client visits

– Financials

• Integration with financial systems• Invoices and revenue tracking for closed deals• Consistent sales and finance revenue recognition across

customers, markets and segments

– Delivery

• Signed Contracts• Status Reports• Contract Profitability Tracking• Client Project Participants• Project Plans

– Proposal Generation

• Scheduling• Document Management

CRM

Pre-Sales

Support

Pipeline and

ForecastingMobility

Financials DeliveryProposal

Generation

Leads

CampaignsSales Assets

Sales, Pre-Sales Support, Operations, Accounting, Delivery, Service and Executive Management share a common view of customers, pipeline and revenue

Maximum visibility to all about customer interactions

All sales assets need to be in one place, under one version control system.

Effective CRM is central to efficient and effective management of growth


…and efficient use of Subject Matter Experts…

Sales Sales Support

MeetingsSolution DevelopmentProposal DevelopmentMarketing SupportThought LeadershipRequests Support` Delivery

Organization

Allocated, qualified resources

CRM

Account ExecsAccount

ExecsAccount ExecsAccount

ExecsAccount Execs

TechnicalGeneralists

ProposalWriter

TechnicalGeneralists

ProposalWriter

Admin

Delivery Organization

SolutionDevelopment

ArchitectsArchitects

ArchitectsArchitects

Delivery Management

ProjectManagersProject

ManagersProjectManagersProject

Managers

Sales Support

Sales Organization

Admin

Sales Management

High Level Process Model

High Level Organizational Model

MeetingsSolution DevelopmentProposal DevelopmentMarketing SupportThought Leadership

Sales Asset GenerationSales Asset

Generation


…reinforced by unified multi-channel messaging and marketing

W

O

W

E

D

+

SHOWS

+

PR

+

Partners

Webinars

On-Line

Web Site

Email

Demos

Thought

Leadership

Lead

Generation

Brand

Promotion

Community

Value

Customer

Acquisition

Acceptance

Loyalty


…supports a scalable, profitable growth model

� Customers who can support quota

� Salespeople who can meet quota

� Process to manage quota

� Producers who can deliver quota

VP

Sales

Account

ExecAccount

ExecAccount

ExecAccount

ExecAccount

ExecAccount

ExecAccount

ExecAccount

Exec

Stage 1

VP Sales

Director

Sales

Account

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Stage 2

Director

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Director

Sales

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Director

Sales

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VP Sales

Account

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Account

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Exec

Director

Sales

Director

MarketingDirector

Marketing

Marketing

ResourceMarketing

ResourceMarketing

Resource

Marketing

Resource

Stage 2

Signings = $40-60MM Signings = $100-120MM Signings = 160-180MM

© Copyright Martin Korsin 2009

Sales TrainingSales Training

Some elements of a larger scale training program


Agenda

� Understanding the Buying Process

� Complex Solution Sale Grid

� The Question Ladder

� The Power of the Group

� Winning RFPs

� Complex Solution Sales

� Questions

� Objections

� The Sales Detective

� Negotiation

� Sales Excellence


Understand the Buying Process

– Phase 1 - Discovery

• Do you see the pain• Do they see pain• Do they have the budget• Do they trust you

– Phase 2 –Selling a solution

• Diagnosis Confirmed• Impact Confirmed• Assessment Confirmed

– Pre-proposal review crafted– Pre-proposal review presented– Pre-proposal review digested

• Proposal Presented

– Phase 3 – Closing a complex sale

• Technical buyer accepts• Economic buyer accepts• Executive buyer accepts• Competition eliminated• Contract Agreed• Contract Signed• Work Started

� Roles – Professional/Personal

– Executive Buyer

• Budget Maker

– Economic Buyer

• Budget Holder

– Technical Buyer

• Evaluator

– Coach

• Non-buying stakeholder

– Administrative Buyer

• Enabler

– Power Players

• Users• Executive• Friends and Mentors

� Document the buying process

– At every stage, for every buyer

• where were you• where are you• where will you be

� The role of RFPs in the buying process

� The role of sourcing/purchasing


Complex Solution Sale Summary

9 So…6….So…3….So…Confirm

8…What if5…What else

2…Is it because

Control

7…How About

4…Who else1…Tell meOpen

VisualizeAssessDiagnoseProfessional/

Personal



2…Is it because

Control

7…How About



Personal



2…Is it because

Control

7…How About



Personal



2…Is it because

Control

7…How About



Personal

� Personal/Professional

– Executive

– Economic

– Administrative

– Technical

– User

� Influencers

– Coach

– Peers

– Subordinates

– Bosses

� Competitive Threat

� Action Plans


The Question Ladder

� Your Company Overview

– Why do you exist?

• Value of your service to your clients• Value of your service relative to your competition

� Current state and process walkthrough

– What do you do?

• Sources• Inputs• Information and Process Flows• MIS and Resource assets used in adding value and

transformations• Outputs• Digital formats, end users• Currently planned technology and process

expansions

� Desired state

– What do you want?

• Added value• Transformation

� Business Benefits

– Why do you want it?

• Improved quality, cost, velocity and flexibility• New products, and markets• Improved competitiveness• Improved personal position

� Current limitations

– Why don’t you have it?

• Technology assets• Process limitations• Human and physical resources (people and space)• Training/Knowledge

� Blue Sky

– What could you have?

• Your competition• Best practice• What we have done elsewhere• Your clients future needs

� Current Business Model

– What can you afford?

• Current operational spend• Current planned investment• Current profit• Planned profit attributable to planned spend

� Change Road Map

– How can we help?

• Process• Technology • Resources• Measurement

� Next Steps

– Do you believe?


Power of the Group

� Building a common vision

� Highlighting internal communications deficiencies

� Adding value as a partner

� Surfacing objections, divisions, competitive threats

� Identifying powerbases

� Accelerating sales cycles


Winning RFPs

� Sell high

� Create the RFP

� Include yourself in the process

� Change the rules, add value

� Create buying pressure

– Selling to non-buyers

• Executive management

• Stakeholder management

• Users

• Beneficiaries

• NOT just the buying roles

– Selling to influence

• Achievement + recognition = Value

• Sell to those who have value to those who buy

� You can’t make friends when you need them

– Build relationships when you are between sales not during them


Objections

� Objections are your friends

– Surface them, don’t hide them

� What else, what else, what else…..

� Conditions, objections, stalls


The Sales Detective

� Businesses

– Have cost, quality, performance, competitive pressures

– Your buying roles are impacted by them

– Understand the pressure - you understand the buyer

� Buyers have

– Subordinates, bosses, peers – even if they are not visible they play roles

� Value + Recognition = Power

� Business and technology processes have

– Logical precedents and antecedents

– Current state assessment generates questions about precedents and antecedents

� Inferences generate questions that

– seem (and often are) targeted, insightful and relevant

– gain buyer respect


Negotiation – Basic Points

� Prepare

– Time and patience win

– Time and effort is power

� Shut-up

– They speak, you listen

� Increment

– Small reductions in price

– Small increases in scope

� Aim high

– Those who ask get

� Change rules

– All rules are arbitrary

– Expand scope

– Buyers set buying processes

– Sellers can change selling

– “Our process” has the same validity as “their process

� Concede

– Small things that don’t matter

– Slowly

� Don’t accept no for an answer

– Best and final does not exist

– Your answers can change

– What part of “no” don’t you understand

� Assume nothing

– You have power

– Your position is never secure

� Nothing for something

– Non-cash value for money

– Total cost, not unit cost

– Risk reduction has value

� Write the summary

– Document conclusions


Sales Excellence

� Selling

– the right deal (can we win this deal)

– to the right customer (can I sell more stuff and leverage the time)

– the right way (do I have a selling process)

– at the right time (do I understand the buying process)

– in other words…winnable deals, worth winning in accounts worth having

� Disciplined

– Prospecting

– Closing

– Servicing

� Personal pipeline management

� Time Management

B2B Sales Management Strategy

Documents

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