SOLUTION SELLING HANDBOOK

Transcription

1 SOLUTION SELLING HANDBOOK

2 INTRODUCTION Solution selling is an art. It is the most complex sales an individual can grapple. We do not mean to scare you with saying this, just setting the making you aware of how powerful what you are about to read is. This handbook is created to make that complex sales a bit more tangable and easy to understand. We have written this for you, so you can be successful with your solution selling. Solution selling is about making others aware of problems they did not know that they had and make them feel that the problem is so relevant that they want to invest, to get rid of the problem. Solution selling is therefore not about what you sell it is about how you sell. Solution selling is a big and complex method and process. With this handbook you get the introduction to Salesbox version which focuses on the activities rather than the process, we call it ACTIVITY DRIVEN SALES. So lets gets started! The purpose of this handbook is primarily to clarify for the sales team how you can work together with sales, but also as an explanation for the other collegues who come into contact with sales, such as consulting managers, project managers etc.

3 Solution selling is about making clients aware of and willing to invest to get rid of painful and costly problems. Activity and focus is the key! Have you ever wondered if there is a magic way to become successful, there is. The secret behind success is focus and activity. This handbook will describe what to do and what to focus on within solution selling. If you follow these guidelines and preferably use the associated salesbox app we will guarantee you success and that you also will have more fun while reaching your goals. Don t forget, the journey to the goal should be as fun as reaching the goal. The salesbox methodology can shortly be broken down to the following six things. > Find the problem > Find the solution > Secure the time plan and dates > Secure accept on your solution > Secure that your solution is within the clients budget and get an acceptance > Secure your sponsors and power sponsors (taken from Solution selling) and that they want to work with/buy from you > Send quote, contract and sign the deal

4 ACTIVITY BEFORE PROCESS Have you ever been told that you are not following the process? Have you ever felt that your boss does not understand? Have you ever felt that your client does not act as your process indicates it should? There is a reason for that, it is simple but never the less so hard to see and perhaps more important hard to do anything about. The reason why processes within sales very rarely works is because that processes only work when the steps in the process are to 100 percent in control of yourself or the one responsible for it. Sales are about feelings and human beings making decisions. Therefore it is vital to realize that you cannot manage people, you manage things but lead people. There is a really good book on that topic that we recommend (The Servant by James C. Hunter). In sales it is all about leading a client through a pre-set number of activities. We are not reluctant to processes but we also realize that processes only work when applied on the right areas. Processes are good when you or your organization have full control of all steps and the outcome of the steps in the process, i.e. a delivery process, a support process, a manufacturing process. In sales you don t. That is why the activities a sales person performs are much more important and crucial to focus on. Other reasons why sales processes rarely succeeds, when they do it is more a result of random chance that the clients purchase process aligns with your sales process. That happens sometimes but to seldom to be trusted, we do not either believe in chance, we believe in control of the situation and increasing the probability for success.

5 THE ACTIVITY IS MAIN PRIORITY This is why we have come to the conclusion that it is the activities that are the important things to focus on, not in what order they are performed. One other reason why sales processes rarely work and are followed by the sales individuals is that there is an in built paradox. The best sales people are creative and dominant (In DISC I and D), that means that they do not like being put in a box. On the contrary the people who like processes and fixed routines (In DISC C) are not suitable to have in sales roles. Despite that many sales managers, directors CEOs force the sales staff to work in processes. Agree with us that it is so easy in theory but in reality very few succeeds in doing so. This also one of the reasons why we wrote this book and brought the salesbox app to the market. We strongly believe that just writing a book is not enough, that has been tried thousands of times before, just search for sales litterateur and you get more than 60 million hits. All books have their twists and point, our point is that it is not enough. Why it is not enough is because the theory and reality are to far from each other. That is why we write both a series of books and deliver an app were you who work with sales can get the necessary support to implement activity based selling as a new behavior and routine in your career. We can also promise that if you start working in the way we describe and use the app the results will come.

6 WHERE TO START THREE MAIN ELEMENTS Salesbox Solution Selling is based on three main elements lead generation, sales activities and the sales formula e.g. how the team works. Together these parts form activity driven sales. There are several purposes of the model and guidelines, including > to make it easier to foresee which customers are in need to buy the offered solutions, on both short and long term. > to streamline the actual sales work and allow to pragmatically control the client in both a transparent and clear way to a decision to Go / No Go to the proposal. > create opportunities to quickly establish trust with the client and an understanding of the client s problem and what business benefits that will be achieved. > enable management to create reliable and continuous forecasts using the information in the CRM LEAD GENERATION Lead generation is based on various types of information channels. > Cold calls, new customers without relation > Warm calls, existing customers with realtion > Incoming transactions from partners > Tips from colleagues > Tips from customers > Incoming requests and calls > Campaigns

7 COST OF SALES This part is not really about the sales method but it is anyway an interesting observation in the cost to generate leads, the start on every deal. It could be wise to reflect over these following words a moment. Many companies know that the cost of selling continues to rise making face-to-face sales calls evermore expensive. But what is the actual cost of a B2B sales call? Costs vary by industry and geography, however, Cahners and Reed Publishing companies found that the average cost of a Businessto-Business sales call increased with over 30 percent between 2001 and Including salary, travel and expenses the cost is more than 500 dollars per call in the US. Similar research from B2B publishers including Penton, Thomas and McGraw Hill confirmed these findings regarding the cost of B2B sales calls. Knowing the high cost of B2B sales cold calls, why would any company hire sales people to hunt down prospects with pure cold calling? Many companies do and at a staggering expense. Smart companies recognize that it is the Marketing Departments job to identify, nurture and qualify viable sales opportunities and to fill their sales lead pipeline with leads their sales people can more readily convert and close. The strategic goals are. > Reducing the overall cost-of-sales > Maximizing sales call conversion results. An equally important question is why a company would invest in a marketing campaign to fill their sales lead pipeline with viable sales opportunities and then ignore when their sales people fail to followup? It happens far too often.

8 Research shows that the maojority of B2B product inquirers NEVER hear from a sales person. We all know sales people are busy, the question is with what? The same research shows that sales people spend the majority of the their time calling on existing customers. A big part of the marketing s responsibility is identifying, nurturing and generating new sales leads and opportunities, yet follow-up is often poor. With the cost of sales rising it is critical for companies to understand the true cost of their sales calls, and to make sure their sales people are spending their time where their best sales opportunities are. WORKING WITH CAMPAIGNS AS LEAD GENERATION Campaigns are an effective way to generate leads. With a well done multi channel campaign it is possible to identify which clients that are interested in an offer, probably also interested in the near future. The purpose of this campaign method is to be an alternative to the traditional method cold calls because most of the the potential clients have a lot to do and must prioritize their time. With the campaign approach it is possible to create a practical opportunity to connect with the right decision maker at the right time. In order to conduct a campaign the following prerequisites must be met: > There is a definite and known problems to solve > There must be a solution to the problem > It is prefered to have some kind of reference from the problem area THE METHOD The campaign is divided into three or five steps, where each step involves sending a physical letter, an and/or publishing the message on prefered social media channels (Facebook, LinkedIn, Twitter etc.). Each is personal and is not perceived as a mass mailing. The s contains various formulations on the same information. The purpose of the s is to drive the recipient to go to the company s website where it is possible to track and identify who reads what and how many times the recipient visits the Web. By tracking the behavior of the receiver it is possible to identify which recipients who are interested in the offered solutions and thus prioritize which recipients should be contacted by telephone to schedule an appointment.

9 CAMPAIGN STEPS All the following steps can be published as , physical mail or on social media sites. When he information i send through mail it is personalized. The campaign can also be followed up by a seminar where clients who do not want to take individual meetings are invited. STEP 1 > The information address 2-3 persons per customer, with a number of selected customers. > The information address may be handwritten > The information can be signed by hand > The information contains logos from the company > The information weaves in reference customers and partners STEP 2 > Personal > No logo > Link to the company website > Weaves in reference customers and partners STEP 3 > Professionally and polished paper with a picture of an article, book or whitepaper > Reference to go to the company web and download the material > Logos STEP 4 > Personal with less text than previous > Link to the documents described above Dispatch > Quote from one or two reference customers are pasted at the bottom of the letter STEP 5 > Personal with less text than previous > Link to the new document on the company web > Provides suggestions for meeting (Not on social media) > Quote from one or two reference customers are pasted at the bottom of the letter

10 ACTIVITY DRIVEN SALES Salesbox recomend to implement a simpler model of Solution Selling called ACTIVITY DRIVEN SALES. The purpose of the implementation is to create a method that meets the following requirements in place. > Everyone can agree and work according to the same method > Everyone uses the method in all positions > The activities are easy to understand and therefore to use The classic solution selling is process based and contains very many elements and stages making it unnecessarily complex. It often leads to that the process is watered down and not used, which defeats the whole purpose of introducing a common way of working. Salesbox limit the use of solution selling to only a few steps with clear criterias to enhance the usefulness of the method. Salesbox version is also focusing on the activities and not the process. The Salesbox method ACTIVITY DRIVEN SALES consists of the following activities. > Identify the problem > Secure the dates > Secure the sponsor > Secure the power sponsor > Secure the solution > Secure the price level > Send quote > Secure acceptance of quote > Send contract > Secure acceptance of contract Many of these activities can require a single meeting. In some cases can several of these activities be checked in a single meeting.

11 FIRST MEETING WITH THE CLIENT This is probably the most important activity on the way to a signed contract. In the first meeting with the client you > Identify the problem > Create the necessary trust, this is vital. The client only proceeds with companies they trust > Create a common understanding that a possible a co-operation is possible. > Identify that there exists a business opportunity within reasonable time. That depends on what is being sold. It is vital that the individual who performs this meeting has the capability to create trust. It is so common to make the mistake of considering the first meeting as not important. This is the step were you bring your super star in sales or even your CEO if it is the right client and motivated. SET THE SCENE Explain why you are there and what is supposed to be discussed during the meeting. You should also ask the client what they expect to get out of the meeting and what you want to get out, i.e. the goal with the meeting. This is also where you walk through the agenda. Don t forget to write it on the white board! Also, check that the agreed meeting time still is valid and haven t changed! This important so you don t find out mid meeting that the client wanted to shorten the meeting. Then you risk missing your goal with the meeting. All present individuals present themselves, name and role. IDENTIFY THE PROBLEM (STEP 1) Interview the client to identify the needs and problems the client experience. Do not forget to ask for the holy dates (start of delivery, delivery and when the can sign a contract). If the person you meet do not know these dates you have two likely scenarios: > The client is not in a purchase mode, you have met a person who likes to kill time by listening and learning about your area. > The person you meet is not the power sponsor The dates question is a god qualifying question to ask to get access to the power sponsor. If the person you meet do not know the dates, ask them who does and if that person can be involved in a possible new next step meeting.

12 PRESENT YOUR COMPANY Remember that the client is more interested in if and how you can help them with their problem than listening to facts about your company. > Keep this extremely short and focus on what really differentiates your company from your competitors! > Remember to talk about relevant references in this phase, good stories about how you helped others with similar problems are really strong! SHOW YOUR TRAILER Give the client a taste of your solution, remember you are here to sell not to list a lot of facts! This part of the meeting aims to secure the clients interest in your solution and how you can help them with their problem. This is a really important step in the meeting and it should be presented with enthusiasm. Show the client that you have a passion for this. > Remember to talk about relevant references also in this phase, good stories about how you helped others with similar problems are really strong! SUMMARIZE THE MEETING Involve the client in the summary of the meeting. Write a + and a on the board and ask the client what it would mean if they > Do not resolve their problem (from a client s client, revenue, work situation, employee, profit, service perspective) > Resolve their problem (from a client s client, revenue, work situation, employee, profit, service perspective) BOOK NEXT MEETING Before you ask for a next meeting you need to explain what that means. The client will likely not book a next meeting if they do not know what that is. Therefore, describe what a next step is (if you find this interesting, our next step is this... preferably write all activities you need to walk through with the client to get a contract, that makes it clear for them). Once that is done, bring your calendar to the table and ask when you can have the next meeting and who should receive an invitation.

13 NEXT STEP IS VITAL Never leave the meeting without a next meeting booked! WHY THE NEXT MEETING IS VITAL Most salesmen has heard that they should not leave the room without booking the next meeting. Not all have reflected on why that is so important. It is vital because. > A client speaking intensive to one supplier is less likely to initiate dialouges with competitors. > An intense dialouge creates relationship > An intense dialogue shortens the time to contract. > It is a sign that the client is interested It is like when two people are having a deep dialogue with eye contact, then it is unpolite to stop looking at the counterpart as lng as they are speaking. By shortening the time to contract the salesman both gets the deal faster but also reduces the risk for external or at the client internal happenings that stops the deal. All these factors are actually reasons in themselves to book the next meeting. SECURING THE SPONSORS AND THE SOLUTION (STEP 3 AND 4) To be able to both know the solution and secure it, it is vital that. > The salesman has identified the problem that the client wants to solve > The salesman identified that the company can solve the problem > The client wants to act / buy within within about 6 months. > Next appointment is booked with the customer. SECURE THE DATES AND THE SPONSOR (STEP 2 AND 3) Once the problem is identified it is important to settle a few things before moving forward. > Is this a relevant problem to solve in near time? > Is the contact from the client a decision maker?

14 ACTIVITIES One important and good way to find an answer to both these questions is to start asking about dates. The dates that is necessary to get stratight answer about are. > Delivery date > Delivery start date > Contract date If the contact cannot answer these questions it is most likely not a relevant problem to solve in near time and/or it is not a decision maker that is participating in the meeting. If the person cannot answer, ask who can answer the date question and you will get the name of a likely decision maker. If the contact does not know, ask who might be right for you to take contact with to try and get an answer. If you do not find a person who can answer the date question it is most likely not a relevant problem to solve. If you still believe that, postpone the date question until you have got a serious interest for your solution. Once you find the person who knows the dates, that is likely your power sponsor. START SECURING THE SOLUTION (STEP 4) The salesman must also identify and deepen the following during the meeting. > That the company can deliver business value. > That the idenified and proposed solution is suitable > That the client believes the company is a both a potential and prefered supplier > The salesman has identified at least one sponsor confirming the above. > Book next step / meeting. The meeting aims to continue to build confidence and go a little deeper into the problem area than in earlier meetings. During this meeting the client s vision is verified and the company shows how to help the client realize the vision.

15 SECURE THE POWER SPONSOR AND BUDGET (STEP 5 AND 6) Requirements before this activity > The problem is identified > The business benefits are identified > The company is a potential supplier > Sponsor is in the process > The customer wants to act / buy within about 3-4 months. > Next steps / appointment is booked with the customer. Implementation In this activity the salesman takes one or more meetings to get a confirmation on the following areas: > Detailed schedule determined - Decision date, start date, delivery date > Right-makers, both Sponsor and Power Tech > Vision / Business / benefit solution is anchored by both the sponsor and the Power Tech > Cost is anchored by the customer > The next meeting / stage is constantly booked with the customer > Produce quote > After all of the above 5 points are confirmed sent a quote. This phase is often iterative and may include one or more workshops to identify the solution and the cost. SEND AND GO THROUGH QUOTES/PROPOSAL (STEP 7, 8 AND 9) After all previous activities are checked it is time to send a proposal. The reason why it is important to wait with this is to minimize the risk for surprises from the client s perspective. With the problem, solution, budget, dates, sponsor and powersponsor secured there is low risk for surprises and an increased chanse for acceptance on the proposal. Even though alla facts should be known by the client at this stage is is strongly recommended to book a proposal meeting, a so call GO/No GO meeting. During this meeting the proposal is walked through and the client makes a decision to accept or not accept the proposal.

16 Requirement > The seller has acquired a confirmation of the five areas mentioned above in the Qualified Sponsor > A quotation was sent. Implementation In this activity the following is handled. > Ask for Review of Go / NoGo decision. > Any additional corrections to the solution and the cost is also dealt with in this phase. > Develop draft agreement > Book next step / meeting with the client. > If the customer provides information about Go sent the draft agreement. If the client for some reason has comments on the proposal it needs to be finetuned over several meetings until > The solution is acceptable for the client > The solution budget is within the clients framwork > The delivery dates are agreed After all these factors have been agreed it is time for the final activities in this method. CREATE, SEND AND SIGN CONTRACT (STEPS 10, 11 AND 12) These activities are similar to the previous one regarding creating, sending and walk through the proposal. Requirements > The customer accepted the offer and selected us to provide orally. > Next steps / appointment is booked with the customer. Implementation In this activity the following is handled. > Negotiate Agreement. > Signing Agreement

17 HAND OVER TO DELIVERY After a deal has been closed it is vital to perform a good handover to the delivery department. Requirements > The client must have signed a contract. Implementation > Writing a project directive or an order. > Implement a handover to the delivery organization. For deals with a complex deliveries After the contract is signed enter phase that Salesbox call the TRUST PERIOD. In this perpiod it is important to not actively sell. Now the delivery department needs to proof themselves and create additional trust from the client. The client needs to see how good the delivery is and start to trust that they will deliver what is told. Once that trust is there, the client is ready to take the discussion of the next deal. How long this period is depends on both the length of the delivery and the individual client. It can vary from a few weeks to several months. EXAMPLE PROGESS AND MEETINGS FOR A COMPLEX TECHNICAL SOLUTION ACTIVITY PROGRESS MEETING RECOMMENDED DISC PROFILE IDENTIFY PROBLEM 5 % 1 SECURE DATES 15 % 1 SECURE SPONSOR 5 % 1 SECURE POWER SPONSOR 5 % 1 SECURE SOLUTION 5 % 1 SECURE BUDGET 5 % 1 SEND PROPOSAL 25 % - PROPOSAL ACCEPTED 15 % 1 SEND CONTRACT 10 % - CONTRACT ACCEPTED 10 % 1 SUMMARY 100 % 8

18 THE FORMULA To increase the likelihood of business and the sales hit rate it is important to quickly understand the client s problem and quickly detect a possible solution to the problem, including tangible business benefits. By doing so the salesman creates the important trust which is often what determines which supplier a customer chooses. To succeed, it requires extensive knowledge of both the industry but also the problem and solution area in question. In order to increase the ability to quickly establish trust Salesbox recommends to introduce a team based way of working. The team must join hands with the individual salesman from the first meeting to the contract is signed. The team support on issues such as the customer s problem, solution, business value, cost etc. Since solution selling is complex and involves many very diversified activities. A modern salesman needs to be good at several knowledge areas and also be able to adapt to many different behaviors. The individuals who scores high all all needed skills and behaviors are rare and hard to get a hold on, therefore the team work way is much better for most companies. Since each team member contributes with expert knowledge and the prefered behavior profile for each individual activity on the way to closure, it is much more likely the team succeeds where the individual fails. By doing so the team maximises the skills and mirrored behavior on each activity. Perhaps even the CEO is the best suited to take a first meeting, the CFO to participate in the negotiation, the product owner on the secure solution meeting etc. We hope you have enjoyed this handbook in solution selling and that you have gained a few new ideas that you want to implement in your sales department. We know that if you have the energy to do it, you will become more successful.

19 Salesbox defines global sales SALES SUPPORT THAT MATTERS Copyrights by Salesbox CRM-System