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Major Client SellingSelling Distinctive ValueThese materials are 2009 by Major Client Selling. All rights reserved.1
Major Client SellingBuild it and they will come2
Major Client SellingSelling a.k.a. Acquiring Revenue Acquiring Revenue – Important? Level of Importance?3
Major Client SellingSelling– Ugly– Sleazy– Manipulative– Persuasion4
Major Client SellingA key to Selling“Don’t Sell . What You Deliver!”What does that mean?5
Major Client SellingA key to Selling“ What You Deliver!”Your customer doesn’t care!Your baby is uglyWhat does the customer care about?6
Major Client SellingA key to Selling“Don’t Sell.!”The sales stereotype – Professional SalesAn oxymoron?80/20 rule of talking7
Major Client SellingA key to SellingDiagnostic conversationHigh EffortHow to find the time“Go for the No!”8
Major Client SellingDon Linder Engineering degree Sales/Sales Leadership/General Management Major Client Selling– Solving the Puzzle of Complex Sales Western Executive Network– Instantly Effective Experience BCIT School of Business Pro Sales/Engineering Mentoring9
Major Client SellingDon Linder Mostly High Tech/Software products/servicesor Industrial Products in complex sellingenvironments– General Dynamics– Hughes Aircraft– TELUS– Control Data– SITA– Spectrum Signal10
Major Client SellingReal Life Selling Problem Engineering software 1.5 ‐ 3.0K per user Initial success, then “marketing machine” Marketing lead generation Free demo copies – time restriction Pro Sales – close the orderResults? -25%11
Major Client SellingReal Life Selling Problem Free demo copies What’s the problem? Pro Sales ‐ Order Takers What’s the problem12
Major Client SellingReal Life Selling Problem The Solution? At the end13
Major Client lex SalesInitial Attention14
Major Client SellingContext Value Added Product/Service You’ve defined your valueYou’ve defined your distinctivenessCustomer’s “Compelling Need” is understoodYou’ve developed an “ideal customer profile”15
Major Client SellingThe Value Balance16
Major Client SellingThe Value Balance17
Major Client Selling18
Major Client SellingBusiness CaseRequires: Knowledge of product’s potential impact Assistance regarding impact on client’senvironment19
Major Client SellingBusiness Case1. Determine portion of your customer’s operationwhere you can contribute2. Review that portion of your customer’soperation looking for problems/opportunities3. Assess the possibility of larger problems/opportunities4. Calculate the magnitude of the benefits fromchange5. Develop business case/Profit Improvement Plan20
Major Client SellingBusiness Case2. Review that portion of your customer’soperation looking for problems &opportunities to:Reduce costsAvoid future costsGain more revenueWhich has most impact (Pain/Fear/Gain)?21
Major Client SellingBusiness Case3. Assess the possibility of larger problems/opportunitiesWhat are the implications/consequences of the statedproblem?eg. What is the cost of having an unreliable car?repair bills?lost time?missed commitments?22
Major Client SellingBusiness Case4. Calculate the magnitude of the benefits fromchange5.Develop business case/Profit ImprovementPlanA major caution:Your customer will not believe your businesscase if you do it for her!Why is that?23
Major Client SellingDistinctive?“The Best People!”“Great Reliability!”“Unequalled Performance!”“Top Quality!”24
Major Client SellingYour Greatco Advantage The largest selection of . equipment forpurchase or rent in North America, all in oneplace. A Total Solutions Partner offering sales, rental,repair, training and technical support. Knowledgeable, experienced sales professionalswho know their products and your industry. 12-hour toll-free telephone support, on allproducts we sell or rent. Seven regional offices across Canada to betterserve your local needs. Over 30 years of experience in the industry allowsus to better understand your individual needs,and to provide top-notch solutions to your25toughest problems.
Major Client Selling26
Major Client SellingA Major Mistake Expecting your customer to translateyour distinctiveness into a value for them Why is that a mistake?27
Major Client SellingProduction Machinery Distinctiveness‐ higher reliability resulting inless unscheduled downtime Problems/Consequences First level – more repair/maintenance charges Overtime to staff? Delay shipping products? Extra rush shipping charges?28
Major Client SellingProduction Machinery ‐II Higher reliability resulting in less unscheduleddowntime Lose customers? Could they produce and sell more product ifthe machine’s output was higher? Profit margin on added production?29
Major Client SellingValueEase of Use Machinerymeasurable? Lower training costs Staff flexibility Lost production vs. training30
Major Client SellingWho appreciates ValueYour immediate customer may notrecognize your value to their customeri.e. “Your Customer’s Customer”31
Major Client SellingAircraft Components Key Differentiator is Reduced Weight Sales Focus– Aircraft Manufacturer?or– Airline Company? Define Value to each Customer!32
Major Client SellingAircraft ComponentsKey Differentiator is Reduced Weight Value to Aircraft Manufacturer?Higher purchase priceNo saving in install timeTrivial weight saving Who Cares!33
Major Client SellingAircraft ComponentsKey Differentiator is Reduced Weight Value to Airline?Less fuel(cost saving)More cargo (revenue increase)Higher purchase price We want it!34
Major Client SellingQuick Check Does your main customer contact have acustomer (internal or external) that’s affectedby your product?Write down the value you provide to yourcustomer and your customer’s customer.35
Major Client SellingDiagnostic SellingDetermining YourCustomer’s Problem36
Major Client Selling Help customers understand their“challenges” in a new way Help customers understand the severityof their “challenges”37
Major Client SellingA key to SellingUnrecognized ProblemsUnanticipated SolutionsWhat does that mean?38
Major Client SellingDistinctiveness from selling Understand critical customer issues Discuss outcomes/results not products,services or processes Tie outcomes to critical issues Use business terminology Refer to metrics achieved by real customers39
Major Client SellingDiagnostic Conversation The key fundamental tool for ConsultativeSelling “Going for the No”40
Major Client SellingProcess Initial Attention Diagnostic Business Conversation Problems Opportunities Magnitude Co‐develop a Business Case Demonstration41
Major Client SellingDiagnostic Selling Think of visiting a Doctor Does she prescribe before she diagnoses yourproblem?42
Major Client SellingDiagnostic Selling Diagnose very thoroughly So that both you and the “patient”/customerunderstand the significance of the problem Then you prescribe/define the solution Failure to do a thorough diagnosis results in“that’s way too expensive.”43
Major Client SellingDiagnostic Business ConversationThere are 2 ways to dominate a conversation You can talk all the time Or You can guide the discussion by askingthoughtful questions Which approach is better?44
Major Client Selling Successful salespeople must be masters ateffectively creating and using questions They know exactly what information theyneed and what type of question is needed toelicit that information45
Major Client SellingCarefully crafted (and purposeful) questions can: Encourage thoughtful responses from buyers Provide detailed information about thebuyer’s current situation, needs, andexpectations This detail and understanding is often asmeaningful for the buyer as it is for thesalesperson46
Major Client SellingQuestioning Systems SPIN Questioning SystemCustomer‐Centric SellingHelping Clients Succeed ‐ ORDERThe Complex Sale ‐ RADARMiller ‐ Heiman “Strategic Selling”ADAPT Questioning System47
Major Client SellingOrigins of SPIN Selling Neil Rackham, Huthwaite 12-year research study that analyzedover 35,000 sales calls by 20 of theworld's leading selling organizations IBM, Xerox SPIN Selling, McGraw Hill's all-time#1 bestselling business title48
Major Client SellingImplication Questions Focus on the consequences, effects, orimplications of problems Expand the problem Expand the perception of value
Major Client SellingImplication Questions Key to success in selling larger products /services Defers introduction of solutions / products Recognizing the Pain
Major Client SellingStages of a Sales ing CapabilityObtaining CommitmentFor a “simple sale”, which stage is mostimportant and why?51
Major Client SellingStages of a Sales ing CapabilityObtaining CommitmentFor a “complex sale”, which stage is mostimportant and why?52
Major Client SellingThe Sales CallHow Much Should You Be Talking?100%100%Talking" You CustomerTalk %0%0%StartEnd53
Major Client SellingClear FutureIn a multi contact sale, you don’t get an orderat the end of each sales call but, you stillmust make progress with each sales call.What is progress?The customer has to invest their time and/ormoney to take the next step54
Major Client SellingObtaining Commitmentin Larger SalesORDER“here’s the P.O.”ADVANCE“agree to next step”SUCCESSCONTINUATION“we’ll keep you in mind”NO ‐ SALE“don’t bother me again!”FAILURE55
Major Client SellingObtaining Commitment1. Please send me more detailed information2. Let’s meet again next month and discuss itmore.3. Let’s meet again next month. I’ll brief ourCFO and have her join us.4. We need to see a demo before we decide.Can you arrange one for my productionmanager and me next week?
Major Client SellingDemonstrating your product Not a valid salesstepunless General agreement onbusiness case Customer has to dosome work Clear next step Contract first?57
Major Client SellingQuick Check What are the possible consequences/implications to my customer’s problem? How often do I demonstrate before we agreeon a business case?58
Major Client SellingBreak Complex Sales First Impressions “Seven Deadly MistakesThat Cause You to LoseLarge Sales”59
Major Client SellingThe Maze ofComplex SalesContractContact60
Major Client SellingComplex Sales Environment Major Dollars Significant Impact on CustomerMultiple Decision MakersExtended Sales CycleTop Management ApprovalContinuing Relationship61
Major Client SellingBad news - the complex sale isgetting more and morecomplex.62
Major Client Selling# of people involved in a corporatetechnology purchase over 25,000MarketingSherpa Survey 200725212013.515106.850100-500 100063
Major Client SellingBad news ‐ the complex sale is gettingmore and more complex.CRM System valued at 500K thattouches sales, marketing, support,service ,admin and R&D in a 1000employee companyIs this a complex sale?64
Major Client SellingBad news ‐ the complex sale is gettingmore and more complex.Working at Nordstrom selling a suit toa customer.Is this a complex sale?65
Major Client SellingBad news ‐ the complex sale is gettingmore and more complex.Selling Nordstrom on buying 500K ofsuits to sell to their customers.Is this a complex sale?66
Major Client SellingQuick Check How many customer engagements does it takebefore I make a sale? How many customer contacts get involved inthe decision? Is this a complex sale?67
Major Client SellingWhat’s needed to succeed Multiple “distinctive value” conversations tailored to each buyer type Truly understand and influence the issuesof each buying participant Engaging “high and wide” A structured strategy and action planningprocess68
Major Client SellingBuying InfluencesUser, Technical, Economic69
Major Client SellingBuying Influences All three influences are present in EVERY sale!! In smaller sales the influences may be allwithin the same person In larger sales the influences are usuallyspread amongst a number of people70
Major Client SellingBuying InfluencesThink of you buying software1. User decision2. Technical decision3. Economic decision71
Major Client SellingUser Buyer Uses or supervises theuse of the product Personal stake Determines successof projectIssues How will this affect myjob? What happens to theproductivity of my staff?72
Major Client SellingTechnical Buyer Often several Multiple departmentssuch as Purchasing & IT Can keep you out of thegame but can’t win thegame for you Can veto on technicalissues– Meets specs?– Meets policy?73
Major Client SellingEconomic Buyer Releases money Can approve Can veto Is this the CFO?Issues– Within budget?– Return onInvestment (ROI)74
Major Client SellingEconomic BuyerHow high a level? Dollar amount Potential impact Business conditions Experience with youand/or your type ofproduct“Sometimes they lie”75
Major Client SellingThe Coach A special BuyingInfluence Is your Guide Wants you to win Has credibility Believes in you76
Major Client SellingThe CoachWhy so important?“90% of the sellingoccurs whileyou’re notthere.”Brian Lowe,VP Sales77
Major Client SellingStructured strategy/actionplanning process Increase success rate Optimize efforts “Some elements” .Many more– For all buying influences– Top 3 criteria– Competitive standing– Threshold– Emphasis78
Major Client SellingAre all customers logical? WII ‐ FMWhat’s In It ‐ For Me Win ‐ Result concept79
Major Client SellingCorporate Results vs. Personal “Wins”Is there a difference?Examples of Corporate “Results”: higher revenue increased profitability80
Major Client SellingCorporate Results vs.Personal “Wins”Is there a difference?Examples of Personal “Wins”: makes job easier recognition compensation More direct reports/budget Job Security81
Major Client SellingCorporate Results vs.Personal “Wins”Sales challenge:Convincing a manager in agovernment setting of a solutionthat will reduce their staffheadcount and their budget.82
Major Client SellingCorporate Results vs.Personal “Wins”Is there a difference?Never underestimate theimportance of a personal win foryour contact especially when sellingto a large customer organization!83
Major Client SellingMellem’s Lawof Executive SellingCalling on customer executives is hardwork.“You don’t have to Call Highon ALL of your customers.Only on those you want to Win andthose that you want to Keep!”84
Major Client SellingDoes calling high always apply? Size of TransactionSize of CustomerDepartment or EnterpriseImpact on customerNew Initiative or Replacement85
Major Client SellingFirst ImpressionsHow to gain entry86
Major Client Selling Isn’t it easier if they approach me? Sure, but 87
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Major Client SellingWhat is your competition? 60 hours of workbacklog Meetings from 8:00 AMto 6:00 PM89
Major Client SellingWhat is your competition? 100 “important”emails every day Everyone copies me onevery email Delete,delete,delete90
Major Client SellingWhat is your competition? 30 “important” voicemails every day Everyone wants to talkto me delete,delete,delete!91
Major Client SellingWhat is your competition?I don’t have time toconsider anything thatrequires change!“The Mystery Competitor”a.k.a. No decision92
Major Client SellingCreate initial communications1. Establish credibility2. Pique curiosity3. Close confidently93
Major Client SellingCreate initial communications1. Establish credibilityReferral –Mary Smith suggested that I contact you about.Triggering events –Your acquisition of the XYZ company will cause.Research –In reading your Annual Report, I noticed that 94
Major Client SellingKnowing your customer’s business Investor relations– Annual reports– Management Discussion & Analysis– Sedar & Edgar General Business media– Globe & Mail, Wall Street Journal, Fortune,Business in Vancouver Industry media95
Major Client SellingCreate initial communications2. Pique Curiosity A strong value propositionCritical business issuesSignificant valueMetricsProminent customersInsightful ideas96
Major Client SellingCreate initial communications3. Close confidently Specify a clear next step Specific follow up time97
Major Client SellingVoiceHello, Mr. Jones. This is Sammy Smith calling.I'm an account executive with the GREATcompany. We provide business consultingservices.Our service is leading edge, high quality and wesupply the most knowledgeable consultants in theindustry.I'd like to get together to learn more about how youdo key business processes. And tell you abouthow our unique Keystroke Service can help yourbusiness.Please call me at 604.555.1212 to set up a time.98
Major Client SellingEnticing Voice messaging Reference your ResearchState a Strong Value PropositionShare an Insightful IdeaDangle Important InformationConclude with Confidence99
Major Client SellingVoiceHello, Mr. Jones. This is Sammy Smith with theGREAT company. In reading about youracquisition of ABC, I know that a greatopportunity exists to maximize your market sharein the reservoir simulation market.We recently helped the XYZ company increase theirmarket share from 45% to 65% by revampingtheir marketing strategy after acquiring RST.Let’s talk to determine if we can help you getsimilar results. I’ll call you at 7:45 on Tuesday the14th to discuss.100
Major Client SellingReal Life Selling Problem Engineering software 1.5 ‐ 3.0K per user Initial success, then “marketing machine” Marketing lead generation Free demo copies – time restriction Pro Sales – close the orderResults? -25%101
Major Client SellingAnalyze the problemTop four problems Poor expansion of usage in large customers Very poor conversion of prospects tocustomers Overly dependent on economic health of oneindustry vertical Sales team improperly trained102
Major Client SellingSolution Upgrade the Sales teamQualification of opportunitiesEducational approach to sellingAdditional market sectors Results 35%103
Major Client SellingThe Seven Deadly Mistakes That CauseYou To Lose Large Sales#1 Failing To Confront Reality: Bad News Early is Good News#2 No Business Case#3 Wasting Resources on Poor Opportunities#4 Letting the Customer Define the Solution#5 Weak Value Propositions: Your Distinctive Value Must beClearly Relevant to Each Contact#6 Not Preventing Customer Delays: Avoid the Dreaded “NoDecision”#7 Failing to Influence Customer Executives: Avoid Unpleasant104Surprises
Major Client SellingThe Seven Deadly Mistakes That CauseYou To Lose Large Sales Give me your business card Email to Don Linder@majorclients.com Download at www.majorclients.com105
Major Client SellingComplex Sales Training/coaching/focus developmentprogram Winning Big Contracts Email to Don Linder@majorclients.com 604.925.4153106
Major Client SellingThank You!107
Major Client Selling Origins of SPIN Selling Neil Rackham, Huthwaite 12-year research study that analyzed over 35,000 sales calls by 20 of the world's leading selling organizations IBM, Xerox SPIN Selling, McGraw Hill's all-time #1 bestselling business title 48
