Transcript Build a successful sales strategy
Build a Successful Sales Strategy
Presented by
Jurek Sikorski
Entrepreneur in Residence, LBS Formerly Marketing & Sales Director Thursday, 30 January 2014
Coming up...
What is (and why have) a sales strategy?
Key elements of a sales strategy The Selling Process ‘Sales Value Proposition’ How to build a successful sales strategy Ask the Panel Build a Successful Sales Strategy
What is a sales strategy?...
A plan to achieve the sales goal of a business Describes how a business will win, retain and develop customers... A blueprint for success
Build a successful sales strategy
What does a sales strategy do?…
‘Defines the selling activities and allocates resources to deliver the sales goal of the business …’
Build a successful sales strategy
Why have a sales strategy?
‘Without a sales strategy the company’s customer facing people will struggle to obtain the focus needed for successful selling’...
‘A sales strategy aligns the company’s sales goal with the approach to achieve that goal’
‘every organisation needs a sales strategy’ Build a successful sales strategy
Key elements of a sales strategy?…
1. Goal and Objectives • What is the goal of your business? e.g. ‘We want to become the UK’s leading supplier of solar powered generators by sales within 3 years’ • What are the objectives that when achieved will deliver the goal? 2. Target Market (Customer) • Who is your target customer group? What /how/why… do they buy? • Who is the person you are selling to? What are their needs 3. Products/Services • What are you selling to the target market? Why would the customer buy? • What is your sales value proposition? 4. Competitive Advantages • Who are your competitors? What are their strengths/weaknesses?... • What are your competitive advantages ? How are you better, cheaper, faster? Build a successful sales strategy
Key elements of a sales strategy?…
5. Route to market • How will you reach the customer? e.g. direct, channel partners, internet • What direct route will you adopt? e.g. sales team, telesales, trade shows 6. Selling Process • What are your selling activities? e.g. prospecting, approaching and presenting • How will you maximise success during the ‘critical hour’ in front of customer? 7. Resources, Skills and Capabilities • What resources (e.g. sales time, money), skills and capabilities (e.g. sales planning, key account management ) are required to sell • How will you develop and improve skills e.g. selling skills training… 8. Sales Management • How is the sales target set, sales performance reviewed, coaching provided?
• What performance incentives are provided? e.g. bonus scheme Build a successful sales strategy
A sales strategy addresses common business challenges?
Stagnant or declining sales revenues Merger of sales forces after an acquisition New product introductions Launch of a new competitor Expansion to new markets Build a successful sales strategy
Selling is a key activity of your business model...
Key Partners International resellers Plant and hire firms Battery and power inverter suppliers Electronic circuits suppliers Investors Facility landlord
Off grid solar/hybrid power generation industry
Key Activities Designing, manufacturing and supplying generators Value Proposition Range of peak power outputs Customer Relationships New customers Marketing and selling Reliable power delivery Advocates Recruitment and training of resellers Key Resources Working capital Technical/commercial staff – develop and market Knowledge and expertise Silent operation Zero/reduced CO2 pollution Portable Simple installation/commissioning Range of purchase options Trialists Channels Sales team Resellers DFID, Aid Agencies Cost Structure Cost of sales (<50%) Salaries (£zk pa) Facility (£xk pa) Marketing (£yk pa) Revenue Streams Price set at £x FOB Revenue £1.8m rising to over £25m by year 5 Customer Segments Construction and Plant Hire firms – need to service client projects Event and Broadcast organisers – need a source of reliable power that is non polluting at an affordable cost International Aid agencies – Need robust power generation solutions at a low cost Gross Margin: min. 50% Business Model Generation: Alexander Osterwalder & YvesPigneur 2010
What is selling about?…
Selling is helping the
customer
to buy Helping the
customer
based to make up his mind upon the satisfaction of his/her needs Selling is about going for a ‘win-win’ for you and the
customer
Selling is not so much about shifting product as making...
customers
Successful selling is about asking questions and listening to the answers…
Customer orientation is a vital concept in selling…
Focus on the customer NOT the company!...
Know that customers buy to satisfy needs ...
Recognise needs are fulfilled by benefits derived from features...
Deliver desired outcomes
How customer orientation works!
Need
Reliable off grid power generation that helps its customers manage/ eliminate their challenges and deliver their projects on time and within budget and… that yields a strong return on investment
Benefit Feature
Provides reliable, silent and emission free power generation solutions that eliminate challenges faced by users helping them reduce costs and for Speedy Hire improve profits Firefly designs and manufactures off-grid, portable and permanent solar-powered generators for a wide range of applications from festivals to construction site offices Customer orientation drives sales
Understand the ‘selling process’
A communication and learning experience Salesperson learns the needs of the customer and the customer learns whether the product will meet needs Characterised by nine activities that are directed at winning customers Successful management of the selling process requires good analytical, communication, decision making, and organisational skills
Engaging the selling process…
1. Prospecting: generating leads 2. Classifying leads : identifying leads with largest revenue potential 3. Developing a sales plan: setting objective and defining how to achieve 4. Making the approach : reaching out and establishing contact 5. Presenting (‘critical hour’): pitching your sales value proposition 6. Trial closing: Early attempt to close sale 7. Overcoming objections: Removing barriers to making a sale 8. Closing: Asking for the order 9. Following up: Delivering product and supporting customer
Prospecting
About identifying potential new customers and generating sales leads...
Essential in a dynamic and changing market Must allocate time to generating quality leads
Ten ways of generating sales leads
Ways of generating leads
1. Seek referrals from present satisfied users e.g. Balfour Beatty, Coca Cola Enterprises 2. Ask channel partners e.g. Speedy Hire 3. Attend conferences and exhibitions e.g. Renewable UK Annual Conference 4. Engage web marketing and social media 5. Register and advertise with trade associations e.g. Construction Plant Hire Association
Ten ways of generating sales leads
Ways of generating leads
6. Publicise your business via news media e.g. Forbes, Guardian, Telegraph, Evening Standard, City AM; retain a PR firm - check out www.prweek.com
7. Post offers of information/product trial for limited period on your website 8. Personal visits/cold calls to potential customers e.g. Brandon, HSS 9. Partner with a plant hire firm to stage promotion events 10. Engage Telemarketing e.g. The Telemarketing Company Be imaginative in finding ways to generate leads Use own networks
Simple ways to generate leads on LinkedIn…
Join (or start) a group • Find top groups where suspects/customers spend time e.g. ERP • Post discussion and participate in Q&A and position yourself as an expert • Seek replies and elicit contact details Post links to content of value to potential customers • Become a source of business information and attract connections • Add value to each conversation Remember posting is important but engaging is vital Build and manage your LinkedIn company page to be seen… • Write your company description to include keyword rich text that resonates with products and contributes to network search visibility • Refresh page and add regular (daily/weekly) postings (of testimonials, news and features) to get into network updates and grow brand awareness • Comment around the most relevant conversations; reply to CEO blogs • Offer ways to help customers with their business
Presenting
A crucial step in the selling process Beginning of a two-way communication between the salesperson and the customer… This is the pitch to capture attention, develop interest of the customer, raise desire and evoke action Aiming to win customer acceptance of the
The selling model
sales value proposition Selling benefits is what moves the customer to buy… A – Attention I – Interest prominently in the sales strategy A – Action
Applying the AIDA selling model
State of customer engagement
A – Attention I – Interest D – Desire A – Action
What you might say…
‘Winning more customers would grow your business…’ [address the pain…need] ‘How would it be if Firefly enabled you to win more customers…’ [likely reply…’tell me’] ‘Let me show you how Firefly can do this…’ [present sales value proposition ] ‘Let me arrange a demonstration’ or ‘hire a unit for 6months and see the results…’ [trial close]
Sales Value Proposition
A benefits statement Differentiates product/service from competition Dramatically improves marketability of product/service A powerful branding tool that supports the sales strategy through marketing communications e.g. advertisements, website, social media Forges a lasting reputation that allows realisation of sales and raises customer awareness
A winning Sales Value Proposition
‘Cygnus delivers reliable off grid power, reduces pollution and saves money for the user whilst improving revenue and profitability for the plant hire firm more than any other generator...’
How to build a successful sales strategy?
Step 1 Engage the customer facing team Step 2 Describe the current situation Step 3 Create the ‘Sales Strategy Canvas’ Step 4 Prepare sales strategy document Step 5 Launch/ review progress and adapt
Sales Strategy Canvas
Sales Goal - Year: £Xm - Q: £ym/£zm - Month by person Route - CEO - Sales team (5) - Distributors Target Market (Customer) - Construction , Events and International - CEO/FD/PM - Seeking an economic return Competitive Advantages - Easier installation - Remote monitoring - Lower maintenance Products/Services - Cygnus range - Sale/rent/lease - Sales Value Proposition Selling - F2F (‘critical hour’) - Exhibitions - LinkedIn Resources , skills - Time and money - Marketing collateral - Skills training Sales Management - Meet Monday (9-10.30am) - Weekly reports submitted - ‘On the job’ coaching A UK based manufacturer of solar powered generators
Meet the panel
Nitzan Yudan Co–Founder and CEO FlatClub Chris Floyd Co-Founder and CEO Cranworth Medical Jonathan Smith Co-Founder and CEO LendMeYourLiteracy
Asked the panel to address five questions...
What is your sales strategy?
What was/is your biggest challenge about selling?
What surprised you most?
What has been your learning experience?
What are your top three tips for someone developing a sales strategy
What would you suggest Aoife Mhuiri, CEO of Sports Clinic Plus might do to sell its services?
Where to go to find out more about sales strategy – further reading
1.
‘How to Win Customers and Keep Them for Life: Revised and Updated for the Digital Age’ by Michael Le Boeuf (August 2000) 2.
‘High Performance Sales Strategies: Powerful Ways to Win New Business’ by Russell Ward (Oct 2013) 3.
Getting to Yes: Negotiating an agreement without giving in by Roger Fisher and William Ury (Jun 2012)
Jurek Sikorski Email: [email protected]
Mob: 07889 720735 LinkedIn: http://uk.linkedin.com/in/jureksikorski