BECOMING RECESSION PROOF

Transcription

1 BECOMING RECESSION PROOF TAKING COSTS OUT OF SALES ENSURING CUSTOMER RETENTION ilinc Webinar February 26, 2009

2 RESEARCH PARTNERS. The ROBB Group LLC Founded in 2002 as Sales R&D and Optimization Company by sales, marketing, growth, turnaround experts; HQ in Scottsdale AZ. Revenue Hunters Intl., LLC Society of elite Revenue Hunting professionals and executives founded in 2008; providing interim - contract hunters and leadership, talent assessments and benchmarking, restructuring and retention services. Background Between SMB, Mid Market & F 500 our customers have realized significant top and bottom line results: Time to Return On Investment: Days Sales cycle time reduction: 38%-62% Cost of sales / customer acquisition cost reduction: 28%-55% Transaction size growth: 75%-300% Overall revenue growth: 24%-300% Non planned attrition reduction: 50%-90% Opportunity win ratio growth: 50%-100% 2

3 ECONOMIC DOWNTURN - TRENDS Corporations are shifting priorities from growth and market share to Cash, Profit, Revenue self preservation. Sales cycles and costs are increasing in many markets. Increasing complexity and time of reaching decision makers. Declining talent pool of skilled, top performers, leaders. Broad corporate restructuring and layoffs. Corporate instability, topple rates growing by 40%. Declining capital sources, corporate financing options. Cash is King! Healthcare, utility other costs soaring. Pension, 401K, credit line & equity erosion debt soaring. 3

4 QUESTION Our sales people sell enough to cover the costs (salary, benefits, expenses, etc). Answer Options: A for Yes B for Maybe C for I don t Know D for No 4

5 STATE OF THE UNION. Legacy models and dysfunction within Sales and Marketing is increasing costs and preventing revenue growth. Debt of Small and Mid Size companies within North America has increased from $680 Billion to over $1.4 Trillion between 1998 and (US Government, SBA) 93% report sales and marketing does not work together effectively to harvest business prospects or track cost of sales. (BusinessWeek Survey) 56% of respondents convert less than 10% of their business prospects into deals; approximately 30% covert less than 5%. (BusinessWeek) Nearly 80% of sales organizations report little or no visibility into prospect executive level decision making processes. (Miller Heiman) Spending on traditional Marketing methods continues to decline as more companies are looking to use web, social networking, viral marketing methods. (Blackfriars Marketing Study) 5

6 CHANGE IS UPON US. Research Exhibit A CSO Insights 2009 The Customer and the Market is demanding change Restructuring sales, marketing or support models is required to ensure alignment and retention. Significant rate of change in every area has increased enormously. Rampant change will freeze many companies and sales cycles resulting in even more no decisions. Increased focus on buying processes will offer the most reliable course in coming months. 6

7 QUESTION We update our sales model and strategies annually to maintain alignment with changing market conditions and how customers are buying/making decisions. Answer Options: A for Yes B for Maybe C for I don t Know D for No 7

8 NO TIME LIKE THE PRESENT. Research Exhibit B The ROBB Group, LLC and Miller Heiman Large gaps in skill, process, performance, updated models and market dynamics fuel the need to restructure sales. 40% of salespeople did not hit their number in % of sales orgs fail to track / monitor opportunity costs. Only 25% of sales reps cover their costs through sales. Cost per lead is up 21% while lead conversion rates are down 33%. Attrition in (high tech) sales and marketing is averaging 72%. 8

9 HOW DO YOU MAKE DECISIONS? Research Exhibit C The ROBB Group, LLC Understanding a company s buying or selection process is only the beginning. How decisions are being made (by decision makers) and what emotional and psychological factors influence those decisions is key to gaining mindshare and greater alignment with customers. 85% of account teams reported Maybe or No when surveyed if they provide clients with a business case describing their solution s impact on cash, revenue, value. Use this chart to ask yourself AND your executives: How do you make decisions on what to purchase? - The answer provides insight into what your messaging, positioning, conversation topics should be when selling at these levels. 9

10 QUESTION We document and address decision maker influencers emotions during our sales cycles. Answer Options: A for Yes B for Maybe C for I don t Know D for No 10

11 SALES IS NOT ALWAYS THE TOP INFLUENCER. Research Exhibit D Muller Shields, The ROBB Group, LLC In some markets and industries Sales organizations are NOT the primary influencer on why someone buys. You need to understand what these influencers are in your industry. Top Buying Influencers Supplier Product Literature Other C Levels (Peers) Trade Publications / Advertising Consultants Trade Publications Editorials Trade Shows Professional Societies / Associations Books (Academic and Ongoing EDU) Computer / Software Company Sales Rep Seminars Sponsored by Vendor Dealer Sales Rep (Reseller) President / CEO Fear of Loss / Failure Financial Gain / Wealth Power Pride Control Longevity CFO / COO Stability / Predictability Financial Gain Risk Mitigation Fear Pride Control *Muller Shields Report 2005, The ROBB Group C Level Buying Motivators

12 NAVIGATING BUYING & DECISION MAKING STAGES. Research Exhibit E The ROBB Group, LLC Understanding and navigating customer buying and decision making stages and process steps is a key first step towards becoming recession proof. Corporate Decision Making Stages 1.Objective, Goal Creation (Pain realization) 2.Business Case Development 3.Requirements Gathering 4.Estimation / Capital Allocation / Budget 5.Vendor Identification Contact / Eval 6.Vendor Negotiation / Selection 7.Project Planning (if needed) 8.Procurement / Ordering 9.Delivery Implementation 10.Maintenance Consumer Decision Making Factors (Stages) 1.Emotional, Mental, Monetary Need 2.Risk/Reward, Fear of Loss, Desire, Gain 3.Cash Flow, Lifestyle, Ego, Power 4.Impact Personally, Professionally, Family Agreement Amongst Parties is Key 5.Decision Influenced by Peer Group 6.Emotional Purchase Justified by Logic or 7.Logical Purchase Justified Emotionally 8.Social Networking Influencing New Sales 9.Peer / Family Referrals Strongest Results Sales, Marketing, Support teams need to quickly assess what stage customers are at and add value to them at that stage. FYI 80% of sales people responded Maybe or No when asked if they ensure a client is ready OR able to buy AND use their product / service. *Muller Shields Report 2005, The ROBB Group C Level Buying Motivators

13 QUESTION We provide our clients with a business case describing our solution s positive impact on cash, profit, revenues. Answer Options: A for Yes B for Maybe C for I don t Know D for No 13

14 WHY RESTRUCTURING IS NEEDED. Research Exhibit F CSO Insights 2009 Some Sales organizations ARE the problem. Yes we said it let us explain why The charter of the sales organization is often out of alignment with corporate objectives (cash flow and profit FIRST). Most sales behaviors drive towards chasing and securing revenues not preserving cash flow and driving profit or increasing bottom line. If sales helps to address the highlighted objectives it would drive greater cash and profit while ensuring top line growth. 14

15 ADDRESSING INFLUENCERS: RECESSION PROOFING THE SALES MODEL Do your Marketing, Advertising, Sales and Support approaches leave your customers with the feeling that you really know them and are sensitive to the influencers below? If the answer is YES your model will drive more sales and ensure retention. Customer s or consumer s current state or mindset. Includes needs, desires. Your Impact on Their Needs / Goals Your Impact on Their Cash, Finances Maximum Customer Value Your Impact on Their Family or Customers Your Impact on Their Emotions, State of Mind Future state of customer or consumer after using your product or service. Your vision for them. 15

16 CUSTOMER ALIGNMENT IS THE KEY. Research Exhibit G CSO Insights 2009 Insight from customers on why sales wins is often difficult to come by and often taints Sales view of the world. You need to validate WHY you WIN and Why you LOSE customers! Directly contradicts the Reasons for Losing data - #1 on that list is Competitor s Price. Firms appear not to have a good handle on why they win; impacting their ability to target, qualify, forecast, close ideal client opportunities. Higher relationships within executive levels of customers directly improve win /closeratios and quota attainment. 16

17 DOCTORS DON T OPERATE ON THEMSELVES WHY SHOULD SALES? Research Exhibit H CSO Insights 2009 Sales needs help in restructuring its models and activities to reduce costs, improve profit and improve retention. This improves forecasting, visibility into cash, profit and revenues. 66% of underperforming companies feel they need to improve in adapting their processes to changing market conditions. Rapid shifts in market conditions surfacing need for timely metrics access. Whether in complex or simple buying situations, the underlying principle of capturing data and adapting is the same. 85% of account teams reported Maybe or No when asked if they gather input from client business executives (C levels) when developing a solution and relationship proposal 17 7

18 QUESTION Our sales team closes deals based on our unique value not discounts. Answer Options: A for Yes B for Maybe C for I don t Know D for No 18

19 WORLD CLASS VS. ALL OTHERS. Research Exhibit I Miller Heiman Training and methodologies alone do not produce world class sales teams A leader in this space admits the performance gap. These questions signify best practice approaches to sales situations. The findings show the difference in consistently choosing the right behavior between world class organizations and all others. The findings also clearly show even world class sales organizations are not consistently doing the right things exposing the limited performance and financial impact of training and standard methodologies. 19

20 GOING FORWARD. Look at restructuring sales to reduce costs and cycle times while driving greater retention. REVIEW - RESTRUCTURE Talent Sales, Marketing, Support Models Team Roles, Structure Process and Individual Activity Productivity Tools 1. Benchmark, assess and certify top performing talent internally identify who can perform at high levels, stretch and be productive in tough economies. 2. Customize a benchmarking and certification program to assess, rank and source new top performing talent. 3. Benchmark and restructure internal models, process, team structures, activities taking costs out of sales, support, marketing. 4. Work with Customers to develop new relationship models, strategies and programs for ensuring customer retention, organic growth. 5. Identify and deploy new technologies that provide immediate ROI and can reduce sales, support or marketing costs. 6. Implement a coaching and management system to ensure performance goals are met, managed, measured. 20

21 TALENT BENCHMARKING & ASSESSMENTS. Assessments on internal and external talent establishing benchmarks, ratios and correlations around: Skill Knowledge Behaviors Motivators Values Sales Talent and Performance Benchmarking 26 times chose the MOST effective sales strategy 15 times chose the SECOND most effective sales strategy as #1 12 times chose the THIRD most effective sales strategy as #1 1 times chose the LEAST effective sales strategy as #1 11

22 Q&A TAKE AWAYS. The ROBB Group, LLC Revenue Hunters International LLC. Partnership N Frank Lloyd Wright Blvd, Ste 1000 Scottsdale, AZ Mark Dallmeier CEO - The ROBB Group, LLC Global Council Member - Revenue Hunters International, LLC Direct: mark@therobbgroup.com Write down what you like /dislike about your current sales, customer engagement model. 2. Complete the Poll questions and schedule a call with us to discuss findings, complete additional Q&A. 3. Receive free assessment and benchmarking tools. 4. Receive a free Sales best practices CD. 5. Receive surveys and frameworks to increase interaction with customers seek performance and collaboration tools to drive greater alignment and sales efficiency. 6. Thanks for your time stay tuned for the great ilinc demo! 22

23 Revenue Hunters International helps reduce the risk, time and cost of taking a company s products and services into the market. Our global Society of certified, elite Revenue Hunters can work with your company to reach and influence executive decision makers and restructure or streamline existing sales and marketing methods. Society members are proven top performers and turnaround executives that follow best practice methods and provide customers with a library of best practices they can utilize to assess and optimize their organizations well after our engagement ends. The ROBB Group is The Revenue Recovery Company. creators of unique Revenue Recovery Programs for executives. Revenue Recovery Programs deliver results and visibility into current performance benchmarks and revenue growth indicators, factors and dependencies that are increasing sales costs, sales cycle lengths and fueling margin profit erosion. Experts provide financial impact conclusions and recommendations for deploying new models, methods, process, tools helping executives to deploy strategies that reduce sales costs, sales cycle times and days to cash, recovering revenues at risk while deploying account level strategies for increasing margins and transaction sizes.