Welcome to Sales Skills

1. Welcome to Sales Skills Anthony Rees

2. Anthony Rees • Facilitation, Training and Personal Development Consultant • BSc (Hons), MBA, MBTI, SDI, Belbin & DISC Accredited • Fellow Institute of Management Consulting • 20 years FS / Management Consultancy and client facing roles • Consultancy and Sales • Clients include Visa International, BAE Systems, Nokia Siemens, SmartStream, Odyssey, Wall Street Systems, Motorola, BT, PSD Group, Hedra, Capita & Capco. • FS Clients include JPMorgan Chase, Deutsche Bank, ABN, ING, EBRD, BNP Paribas

3. Recognition of need to change Consensus of need to change Evaluation of options Decision to partner with you Recognition of need for outside help Implement changes Value realised The buying process How buyers buy external consulting services You should be influencing and working with client throughout 3 - Consulting 101 - Day 1 - 3 Master Nov 07 - - Capco confidential

4. Target Issues, Prospects & Clients Call and Qualify Develop Strategy Present Offer Sell Additional Work Close Sale Develop Offer The Sales Cycle How to sell services and solutions You should be managing the process throughout 4 - Consulting 101 - Day 1 - 3 Master Nov 07 - - Capco confidential

5. Aligning the buying and selling processes • Any sale will bog down or fail if either process is ignored • The buying process will always override the selling process • Your position analysis must take into account the client’s buying process • Movement through the buying process is measured by activities, NOT time • Individual stakeholders and other players may be at different steps from each other in the buying process Too often, we only take into account where we are in our selling process without regard to where the client is in their buying process. Buyers have their own agendas 5 - Consulting 101 - Day 1 - 3 Master Nov 07 - - Capco confidential

6. What do we need to know? Business imperative Business need Budget Timing Decision process Competition Political players (decision makers and influencers) Qualifying – Check list

7. Finding what we need to know - The SPIN® model – Neil Rackham The seller uses Situation questions To establish context So buyer reveals Leading to Problem questions Implied needs Makes buyers see problem more clearly Which are developed by: Implication questions Leading to So that buyer states Need pay-off questions Explicit needs Allows seller to state Benefits

8. Situation questions • Questions about the current situation to establish context: • Tell me about your business • How many staff do you employ? • Which systems do you currently use? • Who and what is involved? • What is the process for developing a new strategy?

9. Problem questions • Situation questions lead to problem questions so that buyer reveals implied needs: • Are you satisfied with your present processes? • What’s the issue here? • Are you able to process a day’s business with your current systems? • Which departments are having problems as a result of this issue? • Are you losing market share as a result of your strategy? • What are the major business implications of this problem? 9 - Consulting 101 - Day 1 - 3 Master Nov 07 - - Capco confidential

10. Implication questions • Implied needs are then developed further by the use of implication questions, which make the buyer feel the problem more clearly • What is the impact of not being able capture those deal types? • What sort of consequences does that have? • Does that have a knock-on effect with risk management? • When that happens does it cause problems in accounting? • Am I right in assuming that when this problem occurs, it sometime results in delays in issuing deal confirmations? • On a scale of 1–10, how important is this problem in preventing your department moving forward? Are you satisfied with your present processes? 10 - Consulting 101 - Day 1 - 3 Master Nov 07 - - Capco confidential

11. Need pay-off questions • This leads to needs-payoff questions so that the buyer states explicit needs • Are you saying it would help if your CRM function was managed centrally? • So are you looking for an integrated deal capture and risk management system? • What would it mean to you if you were to solve this problem? • How would you know if the problem had been solved? • Would you like to be able to consolidate global credit risk positions? 11 - Consulting 101 - Day 1 - 3 Master Nov 07 - - Capco confidential

12. 1. Understanding the objective - The project objective and benefit statement SPIN® “So, if I understand you correctly, if you had the ability to [x], you could [y] and that would help you to [z]”

13. A FABulous Sales Strategy • Emphasises Features And Benefits • Converts product features into customer benefits • Customers buy benefits, not features • Customers buy what the product will do for them • Provide evidence or proof of benefits • Obtains prospect agreement or acceptance of benefits

14. Features • Are facts (undisputable) about the product, services, company, salesperson, etc. • Are characteristics or traits that can be proven with data/evidence • Generally deal with ‘what is it’ or ‘how does it work’ questions • Features would include specific information about a product such as: Production process Delivery terms Quality/grade/traits Guarantees Weight Volume Shape Color Taste/flavor Odor Price Quantity Packaging Ingredients/composition

15. Benefits are . . . • The end results of a feature for a customer • The good things that happen to a customer as a result of using a product • The customer’s perception of a product’s ‘value’ • Needs met by using a product • Problems solved by using a product • Wants obtained by using a product • The reasons people buy a product

16. Proving Benefits • Customers often need evidence, not just your opinion, that benefits exist • Claims need to be • Believable (not exaggerated) • Supportable with evidence • Made positively, confidently (without being cocky) • Don’t overwhelm the customer with evidence but do use evidence from multiple sources Research results (3rd party best) Field tests Other user results/stories Photographs Demonstrations Calculations Comparisons Written articles Sales aids

17. Features, NOT Benefits, of a Mechanical Pencil • Looks professional • Lead lasts a long time • Can keep track of lead hardness • Lead won’t break easily • Don’t have to sharpen • Easy to store, carry • Can attach to pocket • Won’t rust • Non-slip grip • Lead is replaceable • Covered eraser

18. Mechanical pencil (features and benefits summary example) • State feature/link the benefit “This mechanical pencil has a fully retractable point which means you won’t get those nasty holes or black spots on your clean shirts.” • Provide evidence “Here, let me show you. If I push on the top of the pencil and simultaneously push on the lead at the bottom, the lead retracts fully into the barrel of the pencil.” • Secure agreement “Pretty neat, huh? Here you try it. Do you agree that not ruining your shirts is an important consideration in buying a mechanical pencil?”

19. Converting Features into Benefits [Mechanical Lead Pencil] Example Feature (Because of …) Benefit (You will be able to …) (Which means …) • .5 mm lead - maintain fine point - have sharper more professional writing • Retractable lead & point - avoid holes in shirt pocket - make better impression - keep wife happier • Automatic lead feed - save time - avoid dirty fingers • Easy to disassemble - easy to maintain/service - less ‘downtime’ • Lead type indicator - remember type lead used • Stainless steel parts - will last long time - attractive—looks good

20. Converting Features Into Benefits Liquid Nitrogen Solution Example Feature (Because of …) Benefit (You will be able to …) (Which means …) • Liquid form - easier to handle - less effort - cleaner • Low pressure storage - safer - less chance injury • Can be applied prior - no chance of not getting nitrogen on to planting • Can serve as carrier - single application cheaper for pesticides - more effective coverage • Specific chemical properties - less loss to evaporation - quicker plant response - higher yield

21. Features and Benefits Summary • State the feature and link the benefit • Provide sufficient evidence of the benefit • Secure agreement from the prospect that they see the benefit

22. PVS Objectives Better understand the value of our solutions to clients • Identify/Create new opportunities • Improve competitive wins/avoid competition • Reduce sales cycle • Increase sales values • Improve your standing as a partner and market expert © ARCL

23. Why is PVS important? Proactive? • Not proactive = reactive—join the ‘beauty parade’ • Without proactivity, some projects may never exist • Without proactivity, some projects will remain in-house • Without proactivity, some projects will go to competitors • Current relationships can only take us so far… So how do we generate interest… © ARCL

24. Why is PVS important? …Value • Prospects will talk if they believe we can help solve current issues • Projects will get off the ground only if a sponsor can get info early on to demonstrate real potential value. • Projects will only progress with a strong business case • Co’s who help with the above will be seen as partners • It is not enough to provide RFI responses, presentations and price and hope the prospect can work out the value himself. If we don’t do it someone else will…. © ARCL

25. Why is PVS important? In a recent survey • 70% of IT decision makers said that they needed a quantitative business case for all investments over $100K. • 79% have used vendor ROI collateral in their business cases • Over 50% said they thought vendors should do more to help with business cases. • 70% of vendors have developed ‘some’ value-based’ collateral © ARCL

26. PVS - so who’s job is it anyway? Marketing or Sales? ‘Marketing develops value propositions aimed at groups of customers or market segments. These generic value propositions must create interest and leads. It is the job of sales to take those interested potential clients and develop the unique value proposition for their particular needs. If sales merely re-iterates the generic value proposition then they are not doing their jobs and should be fired!’ Dave Brock-Partners in Excellence, from ‘Is there Real Value in Your Value Proposition?’ © ARCL

27. The PVS Framework Client Drivers Market Drivers Capabilities Differentiators Client Examples Solution Compare to Alternatives? Measures Quantitative Business Value © ARCL

28. Framework Elements Why have clients bought from us in the past? 3 Categories - Increase Revenue Save Costs Risk and Compliance Client Drivers What is driving buyers now? Are our historic client drivers still relevant? Market Drivers Which of the above drivers are we best placed to market and sell against proactively. Capabilities What alternatives will the client have? How are our capabilities unique? Differentiators Continued…. © ARCL

29. Framework Elements What is the solution that we will actually deliver? What business benefits will this bring? The heart of the proposition. Solution To turn Value Propositions into Quantitative benefits. Measures Quantitative Benefits How much? By when? Evidence? © ARCL

30. Specific Value Proposition Wealth Management Product Supplier Small Private Bank needs to reduce number of clients lost each year to bigger competitors. Client Driver Capability Improved Client Reporting Integrated to existing system, so reduces implementation time and interface costs. Differentiator Client Reporting Module plus implementation and training to maximise flexibility offered to clients. Solution Continued…. © ARCL

31. Specific Value Proposition Reduction in number of clients lost. Increase in new clients. Measures Average fees per client per year of £10k. Reduce loss of clients by 25 per year and add 25 new clients. Total value of £500k per annum. Quantification Bank X achieved a similar turnaround in year 1 after implementation, giving ROI in 9 months. Example © ARCL

32. Specific Value Proposition Banking IT Consultancy Reduce annual spend on unused software. Client Driver Review all IT systems registered/loaded on servers and desktops. Review supplier contracts. Capability We have methodology for this which our competitors do not have. Differentiator Inventory of unused/unwanted software. Action plan to remove it. Solution Continued…. © ARCL

33. Specific Value Proposition Decommissioning of totally unwanted software. Measures Savings in annual maintenance. Reduced need for hardware expansion purchases. Quantification Z Bank reduced software vendor fees by E2 million pa. Example © ARCL

34. Client Driver PVS Development Brainstorm on business drivers of existing and past clients. Identify their category--‘Revenue Increase/Cost Reduction /Risk and Compliance’. © ARCL

35. Market Driver PVS Development Brainstorm on existing market drivers using knowledge of existing clients and industry reports etc. How do these compare with our client’s drivers from the previous exercise? Which of them are we well placed to meet? Again identify their category--‘Revenue Increase/Cost Reduction /Risk and Compliance’. © ARCL

36. Capabilities PVS Development For each key driver identified, consider our capability and experience. Grade our ability to build a compelling proactive argument around each driver as 1/2/3. © ARCL

37. Differentiators PVS Development What generic differentiators do we have? How do they vary for each client driver? Which ones apply to which competitors? © ARCL

38. Solution PVS Development • Take the previous categories and apply them to a specific case. • What will we actually deliver? • What client/market drivers does it solve? • What value will the client get? • What makes your solution unique? © ARCL

39. Measures PVS Development Working towards quantification of benefits, brainstorm to identify key ratios and measures. Ideally benchmarks are needed from client base and market data. © ARCL

40. QuantificationExamples PVS Development • Explode the myth that benefits in our business are often ‘intangible’ by calculating potential $ results. • Cost saving is more definite and measurable. • Revenue increase is more exciting and scalable. • Initially you will lack real examples, but agreed sensible targets (eg 5% admin staff saved) can still support strong business cases. © ARCL