Downloaded 124 times
Uploaded byArrow ECS UK
How to Win against the Competition
This document provides an overview of IBM's Sales Execution Method (SEM) and associated sales tools and training program. The SEM is presented as a proven method for improving sales skills and coaching sellers. It focuses on key stages of the sales process from planning to closing. Various sales tools are introduced that are designed to support each stage of the SEM. The document then dives deeper into some of the stages, providing guidance on activities and objectives. It emphasizes using tools like the Client Value Impact Profile to understand customers and identify value propositions during the discovery stage. Overall, the SEM and tools are positioned as ways for sellers to better engage customers, differentiate solutions, and increase sales growth.
More Related Content
Similar to How to Win against the Competition
How to Win against the Competition
- 1. © 2013 IBMCorporation IBM SWG Europe Partner Sales Skills Program “How to Win against the Competition ” Tom Cairns : Europe IOT Leader, Sales Skills Development, IBM Software Group Channels © 2014 IBM Corporation
- 2. © 2013 IBMCorporation Improve Yield from your Pipeline and Close more Deals The Sales Execution Method “How to Win against the Competition – Focus on Sales Execution Skills”
- 3. © 2013 IBMCorporation SALES TRANSFORMATION ……… …..The Sales Execution Method (SEM) Workout to Win (WOW) Program The Challenge – Impact of WWW – “The buyers know more than the sellers” The Mission – improve sellers sales skills, coach sellers in their accounts The Plan - Directly Target Core/Invest BP’s. Coach VADs to do the rest The Results – Those adopting the SEM WOW Program rewarded by a 15% to 36% sales growth, quality pipe and faster deal progression The SEM WOW Program – Creates more opportunities, differentiates your solutions and so closes more sales – it gets results 3 Providing the right Sales Tools for the right job © 2014 IBM Corporation
- 4. © 2013 IBMCorporation 3 Key Objectives to drive Sales Execution 1. Identify the Strategic Business Outcome 2. Co-Develop a Compelling Event 1. Share Ownership of the Buying Process 24 © 2014 IBM Corporation
- 5. © 2013 IBMCorporation Top 5 Reasons Buyers Say That Vendors Lose? 5.) All looked the same so we chose on price. 4.) I never met anyone from that company. 3.) We didn't like their sales approach. 2.) We were more comfortable that the other vendor would deliver what we needed. 1.) The vendor didn't present a business solution that addressed our business problem. Source : Sirius Research 2012-2013 9 © 2014 IBM Corporation
- 6. © 2013 IBMCorporation Recent SELLING RESEARCH ( sources; McKinsey and Co and Forrester ) 70% of executives perceive commoditization and lack of competitive differentiation is their NUMBER ONE GROWTH THREAT 95% of all C level executives and managers report that they are overwhelmed by the amount and complexity of data and information So, its a great time to be in sales, BUT………………….. Only 15% of executives rated their sales call as providing VALUE TO THEM Only 7% of executives said they would schedule a follow up meeting 6 © 2014 IBM Corporation
- 7. © 2013 IBMCorporation The Changing Landscape…. "The internet has changed the timing and nature of the first interaction that sellers have with buyers. Today's (B2B) buyer wants to go into the buying process as far as possible before having any contact with salespeople. Buying experiences that begin electronically are becoming the rule, and that trend will continue." - John Holland, Tim Young Rethinking The Sales Cycle 7 © 2014 IBM Corporation
- 8. © 2013 IBMCorporation If they have to call you… you are already late…. The average B2B purchase decision is 57% complete, and more than 10 information sources have been consulted, by the time a supplier is engaged. 8 © 2014 IBM Corporation
- 9. © 2013 IBMCorporation Selling Yesterday Leads Opportunities Qualified Opps Contract Customer Latent Pain Burn Victim Not a Priority 10-20% Looking Salesperson has information that prospect does not have. Salesperson assists in creating vision 9 © 2014 IBM Corporation
- 10. © 2013 IBMCorporation Selling Today in Changing Buyers Landscape? Leads Opportunities Qualified Opps Contract Customer Latent Pain Burn Victim Not a Priority 10-20% Looking Buyers create their own buying vision without Salesperson Information Everywhere Information Everywhere Social Networking Social Networking Internet, Websites, Blogosphere Internet, Websites, Blogosphere Data, Smartphones mobile computing Data, Smartphones mobile computing Salesperson has information that prospect does not have. Salesperson assists in creating vision 10 © 2014 IBM Corporation
- 11. © 2013 IBMCorporation SO, WHAT DO WE DO ? WE NEED TO CHANGE THE CONVERSATION NOW 11 © 2014 IBM Corporation
- 12. © 2013 IBMCorporation WE need to Change our Conversations – earn the right to ask questions …… by showing INSIGHT to Customer Business Problems linked to Outcomes GRAB Customer Prospect Attention by showing INSIGHT to key Business Problems INDENTIFY Problems that BLOCK their key STRATEGIC BUSINESS OBJECTIVES QUANTIFY IMPACT of the BUSINESS PAINS caused by Business Problems SEPARATE their TECHNICAL PAINS and LINK each to specific BUSINESS PAINS HIGHLIGHT YOUR UNIQUE CAPABILITY to solve TECHNICAL PAINS to then remove linked BUSINESS PAINS and so achieve BUSINESS OUTCOMES and OBJECTIVES NOW PROVE IT WITH YOUR UNIQUE SOLUTION CUSTOMER UNIQUE VALUE is achieved 12 © 2014 IBM Corporation
- 13. © 2013 IBMCorporation The Proven Sales Execution Method “Selling is a Science and an Art”
- 14. © 2013 IBMCorporation © 2010 IBM Corporation3 THE PROVEN SALES EXECUTION METHOD PLANNING SELLING NEGOTIATION/CLOSING 14 © 2014 IBM Corporation
- 15. © 2013 IBMCorporation15 © 2014 IBM Corporation
- 16. © 2013 IBMCorporation The SALES EXECUTION METHOD PLANNING BUSINESS PLANNING BUSINESS DEVELOPMENT SELLING Deal PROGRESSION “ health check” OPPORTUNITY IDENTIFICATION AND QUALIFICATION UNDERSTAND INFLUENCE DISCOVERY to gain Insight SOLUTION, DEFINITION & PROOF ALIGNMENT, Agreement NEGOTIATION & CLOSING ALIGNMENT, Negotiation, Won IMPLEMENT CONFIRM 27 © 2014 IBM Corporation
- 17. © 2013 IBMCorporation The SALES EXECUTION METHOD…with WOW Sales Tools PLANNING BUSINESS PLANNING - TERRITORY PLAN and ACCOUNT GROWTH TOOL BUSINESS DEVELOPMENT – PROSPECTING, PIPELINE & BUSINESS DEV. TOOL SELLING Deal PROGRESSION “ health check” – THE “ WOW SELLER CHECKLIST” TOOL OPPORTUNITY IDENTIFICATION, QUALIFICATION – QUALIFICATION PLUS “EX3” TOOL UNDERSTAND INFLUENCE - INFLUENCE MAP TOOL DISCOVERY to gain Insight - CLIENT VALUE IMPACT PROFILE TOOL SOLUTION, DEFINITION & PROOF – DEAL WIN SCORE CARD TOOL ALIGNMENT, Agreement - CLIENT VALUE DIAGRAM TOOL NEGOTIATION & CLOSING ALIGNMENT, Negotiation to win - NEGOTIATION GET – GIVE TOOL IMPLEMENT - IMPLEMENTATION PLAN TOOL CONFIRM – NEW REFERRALS PRE – CALL PLANNING TOOL © 2014 IBM Corporation17 Providing the right Sales Tools for the right job
- 18. © 2013 IBMCorporation Now for the format we’ll follow to guide us through each step of the sales process…
- 19. © 2013 IBMCorporation Step #Step # GOAL: Goal of the Stage TOOLS: • Key tools in Support of the stage ACTIVITIES: • Key Activities of this Stage
- 20. © 2013 IBMCorporation Step #Step # CHECKLIST: Checklist of milestones that should be met prior to moving on to next Stage VERIFIABLE OUTCOMES: Key Outcome of this step that should be expected before moving on
- 21. © 2013 IBMCorporation And NOW for a little…Workout and Exercise
- 22. © 2013 IBMCorporation The WOW Checklist – The Compass that guides us “Are we going to reach our Destination?”
- 23. © 2013 IBMCorporation The SALES EXECUTION METHOD…with WOW Sales Tools PLANNING BUSINESS PLANNING - TERRITORY PLAN and ACCOUNT GROWTH TOOL BUSINESS DEVELOPMENT – PROSPECTING, PIPELINE & BUSINESS DEV. TOOL SELLING Deal PROGRESSION “ health check” – THE “ WOW SELLER CHECKLIST” TOOL OPPORTUNITY IDENTIFICATION, QUALIFICATION – QUALIFICATION PLUS “EX3” TOOL UNDERSTAND INFLUENCE - INFLUENCE MAP TOOL DISCOVERY to gain Insight - CLIENT VALUE IMPACT PROFILE TOOL SOLUTION, DEFINITION & PROOF – DEAL WIN SCORE CARD TOOL ALIGNMENT, Agreement - CLIENT VALUE DIAGRAM TOOL NEGOTIATION & CLOSING ALIGNMENT, Negotiation to win - NEGOTIATION GET – GIVE TOOL IMPLEMENT - IMPLEMENTATION PLAN TOOL CONFIRM – NEW REFERRALS PRE – CALL PLANNING TOOL 69 © 2014 IBM Corporation
- 24. © 2013 IBMCorporation And NOW for a little…Workout and Exercise
- 25. © 2013 IBMCorporation Opportunity Identification “Every Problem is an Opportunity”
- 26. © 2013 IBMCorporation The SALES EXECUTION METHOD…with WOW Sales Tools PLANNING BUSINESS PLANNING - TERRITORY PLAN and ACCOUNT GROWTH TOOL BUSINESS DEVELOPMENT – PROSPECTING, PIPELINE & BUSINESS DEV. TOOL SELLING Deal PROGRESSION “ health check” – THE “ WOW SELLER CHECKLIST” TOOL OPPORTUNITY IDENTIFICATION, QUALIFICATION – QUALIFICATION PLUS “EX3” TOOL UNDERSTAND INFLUENCE - INFLUENCE MAP TOOL DISCOVERY to gain Insight - CLIENT VALUE IMPACT PROFILE TOOL SOLUTION, DEFINITION & PROOF – DEAL WIN SCORE CARD TOOL ALIGNMENT, Agreement - CLIENT VALUE DIAGRAM TOOL NEGOTIATION & CLOSING ALIGNMENT, Negotiation to win - NEGOTIATION GET – GIVE TOOL IMPLEMENT - IMPLEMENTATION PLAN TOOL CONFIRM – NEW REFERRALS PRE – CALL PLANNING TOOL 73 © 2014 IBM Corporation
- 27. © 2013 IBMCorporation And NOW for a little…Workout and Exercise
- 28. © 2013 IBMCorporation Step 3 WORKOUT – EX3 ToolStep 3 WORKOUT – EX3 Tool Workout Exercise Objective: Define whether you have a qualified opportunity – Articulate the following…… 1.What is the Business Problem ?….and the associated Business Pain? 2.Which LOBs does this business problem impact? 3.In client terms…what is the potential financial impact of…… a) The business pain? b) Solving the business pain? c) Doing Nothing? 4.Client sees the value of solving the business pain? 5.What is the implementation timeframe? Compelling Reason to Act or Compelling event? 6.What is the anticipated buying process? 7.Will we win? What are your unique differentiators? Outcome: Qualified with Action Plan SEM WOW: CRM: Customer: Opportunity Identification Identified / Validating Analyze Impact 11
- 29. © 2013 IBMCorporation PRIORITIZE YOUR OPPORTUNITIES – PROSPECTS SCORECARD 26 IBM Confidential 1. ORGANIZATIONAL BASICS ( do not pursue the deal if either is NO ) 1. Does the customer have significant current or potential spend? 2. Is the customer financially sound 2. OPERATING ENVIRONMENT (1 point for each yes) 1. Does the customer face external pressures to change, such as new industry regulations or loss of market position 2. Are there internal pressures to change, such as new management or a rethinking of strategic direction? 3. VIEW OF THE STATUS QUO (2 point for each yes) 1. Is there organization-wide discontent with the status quo? 2. Does the current supplier fall short of expectations? 3. Is the customer unhappy with existing work processes? 4. RECEPTIVITY TO NEW OR DISRUPTIVE IDEAS (3 point for each yes) 1. Do internal stakeholders frequently share best practices? 2. Do they attend conferences and other learning events 3. Do leaders look to the broader organization for ideas? 5. POTENTIAL FOR EMERGING NEEDS (4 point for each yes) 1. Do stakeholders engage in constructive dialogue when their assumptions are challenged? 2. Do they seek to continue conversations about industry benchmarks and trends? 3. Is there at least one confirmed “mobilizer” in the company? YES NO UNKNOWNYES NO TOTALSOURCE; HRB JULY/AUG 2012
- 30. © 2013 IBMCorporation PRIORITIZE YOUR OPPORTUNITIES – EVALUATE YOUR PROSPECTS SCORING METRICS 27 IBM Confidential 0 - 10 10 - 20 20+ CONSIDER NOT PURSUING THE OPPORTUNITY CONSIDER PURSUING THE OPPORTUNITY WITH LIMITED RESOURCES CONSIDER PURSUING THE OPPORTUNITY WITH FULL RESOURCES SOURCE; HRB JULY/AUG 2012
- 31. © 2013 IBMCorporation Discovery to gain Insight “Insight ……….develop with Empathy”
- 32. © 2013 IBMCorporation The SALES EXECUTION METHOD…with WOW Sales Tools PLANNING BUSINESS PLANNING - TERRITORY PLAN and ACCOUNT GROWTH TOOL BUSINESS DEVELOPMENT – PROSPECTING, PIPELINE & BUSINESS DEV. TOOL SELLING Deal PROGRESSION “ health check” – THE “ WOW SELLER CHECKLIST” TOOL OPPORTUNITY IDENTIFICATION, QUALIFICATION – QUALIFICATION PLUS “EX3” TOOL UNDERSTAND INFLUENCE - INFLUENCE MAP TOOL DISCOVERY to gain Insight - CLIENT VALUE IMPACT PROFILE TOOL SOLUTION, DEFINITION & PROOF – DEAL WIN SCORE CARD TOOL ALIGNMENT, Agreement - CLIENT VALUE DIAGRAM TOOL NEGOTIATION & CLOSING ALIGNMENT, Negotiation to win - NEGOTIATION GET – GIVE TOOL IMPLEMENT - IMPLEMENTATION PLAN TOOL CONFIRM – NEW REFERRALS PRE – CALL PLANNING TOOL 98 © 2014 IBM Corporation
- 33. © 2013 IBMCorporation And NOW for a little…Workout and Exercise
- 34. © 2013 IBMCorporation SEM Stage – Discovery & Insight The Client Value Impact Profile (CVIP) Use the CVIP as a guide to identify and articulate the Partner/IBM solutions client specific value that is meaningful to decision makers. The CVIP captures and connects Strategic enterprise objectives with the Partner/IBM solutions enabled business outcomes 105
- 35. © 2013 IBMCorporation Requires 15 additional headcount Increased HW, Support and maintenance cost IT is 16% over budget $15 million spent Off contract Frustrated Marketing team 20% turnover in marketing Report distribution takes four days Users do not have right data in a useable format Slow decision making in marketing All report development is in IT Too many IT Resources to meet user rpt req Need different reporting tools SysAdmin and Servers for each reporting tool Data is stored in multiple systems No visibility to spend by vendor Missed three Major market opportunities Client Value Diagram 10% increase in costs Y/Y Improve operating margin by 8% Grow market share 3% Market share declining 3% per year Operating margin 8% below expectations 112
- 36. © 2013 IBMCorporation Value Proposition – Solution, Definition & Proof “Value is like beauty……….it’s in the eye of the beholder”
- 37. © 2013 IBMCorporation Leveraging Your Work in the CVIP Objective Current Barriers Desired Outcome Stakeho lder Metric Value Driver Capabilities What are you trying to do? What is the need? Business Pain - Why can’t you do it today? Technical Pain – Why can’t you do it today? What does success look like to you? Who cares about this most? What is the highest level KPI that this can positively affect? What in IBM’s solution enables this? Need to reduce time wasted on low value customers Can’t find revenue contribution by customer No access to the right information since data is stored in multiple systems Increase opportunities by identifying key markets John Smith, VP Marketing Increase sales / revenue by 4% Access to all data source simultaneously to provide federated queries IBM ahead of SAP This will help you analyze revenue contribution by customer so you can identify key markets and focus on your goal of increasing sales by 4% The federated query capability that is so unique to IBM Cognos 10 The case study for Customer XYZ highlights that they chose IBM over the other vendors they were evaluating because of … Establish Credibility State the Advantage Close with a Value Statement 125
- 38. © 2013 IBMCorporation Negotiating and Closing “Never give without getting”
- 39. © 2013 IBMCorporation Sales Tools PLANNING BUSINESS PLANNING - TERRITORY PLAN and ACCOUNT GROWTH TOOL BUSINESS DEVELOPMENT – PROSPECTING, PIPELINE & BUSINESS DEV. TOOL SELLING Deal PROGRESSION “ health check” – THE “ WOW SELLER CHECKLIST” TOOL OPPORTUNITY IDENTIFICATION, QUALIFICATION – QUALIFICATION PLUS “EX3” TOOL UNDERSTAND INFLUENCE - INFLUENCE MAP TOOL DISCOVERY to gain Insight - CLIENT VALUE IMPACT PROFILE TOOL SOLUTION, DEFINITION & PROOF – DEAL WIN SCORE CARD TOOL ALIGNMENT, Agreement - CLIENT VALUE DIAGRAM TOOL NEGOTIATION & CLOSING ALIGNMENT, Negotiation to win - NEGOTIATION GET – GIVE TOOL IMPLEMENT - IMPLEMENTATION PLAN TOOL CONFIRM – NEW REFERRALS PRE – CALL PLANNING TOOL 132 © 2014 IBM Corporation
- 40. © 2013 IBMCorporation Negotiating and Closing – The No 1 Issue in selling? The Theory – If salespeople are not making their numbers they must have a problem closing The Fact – The so called skill of asking for the order is NOT the big problem; the real problem with closing is not defining or diagnosing the prospect’s problem and not creating the link to value The Solution – The best close is NOT to have a close……using the Sales Execution Method with solution selling techniques results in Closing being the natural evolution of the sales process 40
- 41. © 2013 IBMCorporation Negotiation Worksheet The Give/Get List Template - Example Our Priority GET GIVE Projected Customer Priority Element Potential Value Potential Value Element 1 Larger Volume deal $100k $15k Payment terms/special financing 2 2 Become a reference $?k $20k Training discounts 1 3 Lower cost of sales by avoiding Pilot $5k $10k Short-term licenses 4 4 Referrals for new business prospects $?k $10k Refund on proof of concept already conducted 3 5 Pay software cost for Phase II at same time as Phase I $2k $1k Reduce software costs 5 Partner / IBM NON NEGOTIABLES Customer Maintenance Discounts Free Consulting 141
- 42. © 2013 IBMCorporation Successful Closing and Negotiation Follow the Sales Execution Method steps to ensure closing is a natural evolutionary part of the sales process Build a Get/Give List Create a Negotiation worksheet for each opportunity approved by your manager Create specific Negotiation Call Plan for each interaction Negotiate from a position of strength – have a strong Pipeline Final agreement = sales success 143
- 43. © 2013 IBMCorporation IBM SWG Europe Partner Sales Execution Skills Program NEXT STEPS?
- 44. © 2013 IBMCorporation THE SEM WOW PROGRAM……. 44
- 45. © 2013 IBMCorporation An Example SEM WOW PROGRAM ……. 45 © 2014 IBM Corporation
- 46. © 2013 IBMCorporation Sales must register for 1 of the 4 available sessions on each subject An Example Partner SEM WOW PROGRAM …….
- 47. © 2013 IBMCorporation47 © 2014 IBM Corporation
Editor's Notes
- #6 These are documented facts. Any ideas what is on this list? Yes, price is on the list, but isn’t number one. 5). Unable to differentiate. 4) This one terrifies Sales management. Perhaps there is a project team and the rep is winning there and comfortable with the team and getting lots of information and good buying signals (quickly returned phone calls, playing golf, drinking beer). In post-loss research that we do, we will call 2-3 levels above the team and ask “Did you meet with people from both companies”. Often the executive says we met with one vendor but not the other. When asking the executive if they would meet with the other vendor, they usually say yes. 3). Don’t usually hear this anymore. Often occurred in the mid, late-90’s, but not so much any more. 2). More trust, better relationship. 1). We will come back to this. If the prospect doesn’t believe you understand their business problem, they won’t believe you can meet their needs. We can control all of these, as they are behavior related, except price.
- #9 Make Bigger – key question should show up. Clean up… Make slide bigger. Change Assess Options to Evaluation Alternative. Awareness of needs Needs – Learning – Exploring what is possible – that could really impact – define needs. Change Learn to Explore.
- #10 Here we have a typical sales funnel. Solution Selling and Customer Centric Selling tell us that if you look at the universe of prospects that 5-10% of your prospect base will be actively looking for a product. The rest either have latent pain – don’t know a solution exist, they are burn victims that do no want to engage, or your solution is just not a priority. Ultimately the salesperson engages a prospect and helps them build a buying vision all the way down to the contract stage.
- #11 But because of the democratization of information and connectivity, a new landscape has emerged where there is a huge conversation going on in the blogosphere, and in social networking. The minute a person feels a pain, they do a search on google, they send a message out to their contacts on their social networks, they visit websites, they do their own research. Essentially, buyers now have the power and information to create their own buying visions without the help of salespeople… and they are drunk on that power.