B2B Sales Consulting “growing profitable revenues by improving your sales effectiveness” BCS CONSIG GROUP 2 March 2005 How Clients Buy Consultancy Services Tony Ryan Director, B2B Sales Consulting 1 © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting We help our clients sell complex, high value, ‘Business to Business’ propositions OUR VALUE PROPOSITION – We help our clients win and grow profitable revenues by creating demand, improving their direct and indirect sales effectiveness and building their people’s confidence OUR PEOPLE – We are experienced IT and Consulting Professionals with proven Sales Track Records from Gemini, BAH, KPMG, Deloitte, CGE&Y, Oracle & Baan and extensive experience in managing companies OUR APPROACH – We work with clients to design and deliver assignments which are customised from a proven toolkit to deliver agreed results. 2 © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting We have a flexible approach to growing our Clients’ profitable revenues Market Readiness Lead Generation & Demand Creation Sales Management 3 © B2B Sales Consulting Limited 2003 All rights reserved. Sales Coaching and Skills Transfer Resource Mngmt. and Recruitment B2B Sales Consulting Our clients tell us we understand their revenue issues because …. 4 We are all ex- Management Consultants, and have also run large companies, so we are uniquely placed to understand the issues that you face when selling Consulting Services As ex- Consultants, we provide you with coaching by people who understand your business and can help you to deliver the results that you require Having performed the roles ourselves, we can offer a multilevel approach, as we have knowledge of the sectors that you operate in and the issues that your clients are facing © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting Our clients tells us we deliver results because we are practical, experienced, flexible & innovative SHREEVEPORT management consultancy 5 © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting B2B Sales Consulting has a proven sales tool kit for sales people Bid Management TEAM CAPABILITY Sales Strategies Campaign Management Communications Written, Verbal & Visual INDIVIDUAL CAPABILITY BEHAVIOURAL CAPABILITY SALES MANAGEMENT CAPABILITY 6 Account Development Partnering Team Selling Team Buying Competition Decision Management Negotiating Targeting Qualification Value Creation Benefits Development Closing Market Messages Lead Generation The 5 Selling Steps Handling the 1st Meeting Phased Selling Styles & Competencies Buying Climate Behavioural Communications microBranding InterPersonal Selling Pricing Market Positioning Sales Processes Win Planning Performance Appraisals New Service Development Pipeline Management Market Comms © B2B Sales Consulting Limited 2003 All rights reserved. Account Win / Loss Management Debriefs B2B Sales Consulting Our Revenue Roadmap connects the 5 revenue building legs for profitable growth NEW OFFER Capabilities & Service Offers New Business Short Value Proposition DIRECTION New Services and Markets Value Chain Market Messages EMERGING CLIENTS’ NEEDS Executive Profiling Lead Generation Demand Creation Development Pipeline and Bid Management GROWING PROFITABLE REVENUES Account Management Market Targeting Account Planning Market Partners Account Development POSITION EXISTING B2B Sales Consulting Revenue Roadmap 7 © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting What we’re going to look at tonight…. 8 Buying Climate Know how buyers buy InterPersonal Selling A Buyer’s view of Consultants! © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting How Clients Buy Consultancy Services The Buying Climate ….avoiding rejection 9 © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting How does the Executive Problem Cycle affect business development outcomes? Success & Improved Results - TOO LATE! BODY SHOPPING • filling resources gaps • commodity market Project Implementation Prognosis Diagnosis Issue Identification Non-performance 10 © B2B Sales Consulting Limited 2003 All rights reserved. Late for Critical Bus ISSUE Development • greater need for content & expertise • needs expert validation Critical Business Issue Development • CEO needs help to form ideas • needs confidence • needs confidant B2B Sales Consulting The Buyer’s Mood gives a very strong clue as to what is possible or not Denial – Honest OK – The best buying situation to fix something ‘broken’ in an open relationship Honest Growth – 11 Complacent in an undemanding situation. Despite counter evidence, lack of ambition will inhibit buying Honest Trouble – Very difficult to bring to reality, so extremely unlikely to buy. Move on! Very enthusiastic buyer pushed by ambition that might bite off too much © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting Each Buying Personality has different relationship needs, but they can all buy Analyser – – Socialiser – – – Cannot be rushed, needs to trust You need to be patient and sensitive Director – – 12 Can be over-expressive and misleading You provide picture of how he will succeed with his people Truster – Needs detail, safety first decision You provide facts to give him reassurance Task/Product oriented and likes metrics You provide the springboard for his success © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting How Clients Buy Consultancy Services Know how buyers buy 13 © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting WARNING: The hardest thing to sell is …. Who me ? …. Yourself, it’s better to create buyers! 14 © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting Every new client will give you 6 Tests CREDIBILITY 15 VALUE TRUST • Establish company credibility • You add value to executive’s thinking • Client is OK to admit problems • Establish personal credibility • You successfully challenge executive’s thinking • Client is OK to ask for help © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting Who needs a selling model? Have you ever got lost in a sales meeting? Do you want to avoid being labelled a Pushy Salesperson? Do you want – – – – – to create buyers instead of selling? to develop a genuine understanding of your clients? to make closing easier? to build real “Win Win” sales? to enjoy business development? First step, understand how your client buys 16 © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting The best ‘selling model’ is in fact a ‘buying model’ - based on how buyers buy! 4th step What Trial Approaches “Would this work?” “We found this with another client” “What would be right for you?” 5th step Now Close (safely) 1st step What REAL ISSUES? -Professional? -Personal? 17 © B2B Sales Consulting Limited 2003 All rights reserved. 2nd Step What BENEFITS “Success looks like” “It’s worth….” “We’ll have learned..” Project Pre 3rd step What OBSTACLES to success? -Capability? -Culture? -Financial? B2B Sales Consulting Benefits can be identified in a structured discussion using 4 Dimensions • FINANCIAL •Cost, Cash •Revenue, Margin •SHV •OPERATIONAL •Productivity, Stock turns •Utilisation •Service & Quality levels •ORGANISATIONAL ALIGNMENT •Value Chain Alignment •Performance Management •Employee Turnover •Improved Communications •Vertical integration 18 © B2B Sales Consulting Limited 2003 All rights reserved. •CAPABILITIES and COMPETENCIES •Sales effectiveness •Service levels •Operational excellence •Supply Chain Excellence •Market sensing •Regulatory compliance •CULTURE and BEHAVIOUR •Behavioural improvement •Motivation •Pro-activeness •Culture of innovation •Managerial behaviour / coaching •Risk Taking B2B Sales Consulting Caution: The best development discussions still need to be managed Opportunity Development grows the sale value Target Lead Develop Close Sell-on Opportunity Management grows the probability of success Right Right CompanyPerson 19 Open © B2B Sales Consulting Limited 2003 All rights reserved. Motive to Buy Timing Budget Competition Decision Making B2B Sales Consulting NEGOTIATE first then CLOSE 20 NEGOTIATIONS are about finding out how to fit each other’s needs as best as possible CLOSING is about helping your client to launch what you have NEGOTIATED © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting Both sides have their own 4 Negotiating Elements 1. What are your Client’s? 21 © B2B Sales Consulting Limited 2003 All rights reserved. ‘Must Have’ Wins 2. ‘Like to Have’ Wins 3. ‘Tradeables’ 4. ‘Non-Tradeables’ What are Yours? B2B Sales Consulting How Clients Buy Consultancy Services InterPersonal Selling© 22 © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting When dealing with people, don’t assume anything..…be extremely aware 23 © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting How important is the behavioural side of client’s decision making? Rational __?__ % 24 © B2B Sales Consulting Limited 2003 All rights reserved. & Behavioural __?__ % B2B Sales Consulting Why do People buy People? Because the Behavioural dominates the Rational 25 They may not be able to judge your expertise They do not want to be threatened or belittled Personality is more variable than competence Trust is more important than ability © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting We all think and act at 3 levels simultaneously. Emotionally – Political Politically – understanding the personal context Emotional understanding how the client organisation takes decisions Rational Rationally – – can not win here but can be eliminated Time 26 © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting But clients cannot buy unless Trust is growing People buy People Preparation Credibility x Intimacy Self-Interest x Risk Client first 27 © B2B Sales Consulting Limited 2003 All rights reserved. Manage the risk down B2B Sales Consulting The greatest human drivers have always been FEAR and GREED ACT ON GREED ACT ON FEAR If you’re not sensing them, then you’re talking about the wrong things 28 © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting Simple Sale versus Complex Sale Simple Sale = 1:1 – – – – Buyer knows needs Seller can deliver Buyer & Seller can Decide Short Simple Sales Cycle Complex Sale = TB:TS – – 29 © B2B Sales Consulting Limited 2003 All rights reserved. Team Buying Clients may not have agreed Needs or How to Buy Team Selling Clients want to assess Selling and Delivery Team B2B Sales Consulting Client Decision Making Process has 4 parts Decision Making Process 30 © B2B Sales Consulting Limited 2003 All rights reserved. Criteria Issues and Benefits Makers Situational and Political Funding ROI and Pricing Timing Events and Reporting B2B Sales Consulting What we’ve just looked at…. 31 Buying Climate Know how buyers buy Interpersonal Selling © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting How Clients Buy Consultancy Services A Buyer’s view of Consultants! 32 © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting How am I feeling when I am buying ? 33 Skeptical Insecure Threatened Impatient Worried Exposed Ignorant Concerned Suspicious © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting How I buy from Consultants - What are my risks 34 My professional credibility My company’s competitive edge My company’s shareholder value Lost time © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting How I buy from Consultants - Who do I buy 35 People – who are pragmatic and battle hardened – who roll up their sleeves – with track records – with grey hair, blood and guts – without grey hair, fresh and creative – who are committed – who commit – who I can trust © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting How I buy from Consultants - What do I buy and what don’t I buy? 36 Security Speed to Market Results Skill Good Communications Openness Team-players Independent perspective Clever frameworks Methodology Silver Bullets Theory © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting How I buy from Consultants - When do I buy 37 When I need – brainpower – problem solving – knowledge transfer – extra hands © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting How I buy from Consultants - What does Gainshare mean 38 Evidences consultant’s commitment Eliminates the dreamers Economic necessity Shared risk/reward © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting B2B Sales Consulting growing profitable revenues by improving your sales effectiveness Our next IMC ‘mini seminar’ “Understanding your Clients’ decision to hire you” At Regus Victoria, Portland House, Bressenden Place, London, SW1E 5RS Tuesday 15 March 6.30 p.m. to 8.30 p.m. 39 © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting B2B Sales Consulting growing profitable revenues by improving your sales effectiveness How Clients Buy Consultancy Services TonyRyan@B2BSalesConsulting.co.uk Tony Ryan Director, B2B Sales Consulting 40 © B2B Sales Consulting Limited 2003 All rights reserved. B2B Sales Consulting