Welcome to
Sales Skills
Anthony Rees
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
The buying process
How buyers buy external consulting services
Recognition
of need to
change
Consensus
of need to
change
Recognition
of need for
outside help
Evaluation
of
options
Decision
to partner
with you
Implement
changes
You should be influencing and working with client throughout
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07 - - Capco confidential
Value
realised
The Sales Cycle
How to sell services and solutions
Target
Issues,
Prospects &
Clients
Call and
Qualify
Develop
Strategy
Develop
Offer
Present
Offer
You should be managing the process throughout
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07 - - Capco confidential
Close
Sale
Sell
Additional
Work
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
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Master Nov 07 - - Capco
confidential
Qualifying – Check list
• What do we need to know?
– Business imperative
– Business need
– Budget
– Timing
– Decision process
– Competition
– Political players (decision
makers and influencers)
Finding what we need to know The SPIN® model – Neil Rackham
The seller uses
Situation
questions
To establish context
Leading to
Makes buyers see
problem more clearly
Leading to
Problem
questions
Implication
questions
Need pay-off
questions
Benefits
So buyer reveals
Implied
needs
Which are
developed by:
So that buyer states
Allows seller
to state
Explicit
needs
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?
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?
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Master Nov 07 - - Capco
confidential
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?
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Master Nov 07 - - Capco
confidential
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?
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Master Nov 07 - - Capco
confidential
1. Understanding the objective
- The project objective and benefit statement
SPIN®
Situation
questions
Problem
questions
Implication
questions
Need pay-off
questions
Benefits
So buyer reveals
Implied
needs
Which are
developed by:
So that buyer states
Allows seller
to state
Explicit
needs
“So, if I
understand you
correctly, if you
had the ability to
[x], you could [y]
and that would
help you to [z]”
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
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
Weight
Odor
Delivery terms
Volume
Price
Quality/grade/traits
Shape
Quantity
Guarantees
Color
Packaging
Taste/flavor
Ingredients/composition
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
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
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
Mechanical pencil (features and
benefits summary example)
1.
2.
3.
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?”
Converting Features into Benefits
[Mechanical Lead Pencil] Example
Feature (Because of …)
•
.5 mm lead
2.
Retractable lead & point
3.
Automatic lead feed
4.
Easy to disassemble
5.
6.
Lead type indicator
Stainless steel parts
Benefit (You will be able to …)
(Which means …)
- maintain fine point
- have sharper more professional
writing
- avoid holes in shirt pocket
- make better impression
- keep wife happier
- save time
- avoid dirty fingers
- easy to maintain/service
- less ‘downtime’
- remember type lead used
- will last long time
- attractive—looks good
Converting Features Into Benefits
Liquid Nitrogen Solution Example
Feature (Because of …)
1.
Liquid form
2.
Low pressure storage - safer
3.
4.
5.
Can be applied prior
to planting
Can serve as carrier
for pesticides
Specific chemical properties
Benefit (You will be able to …)
(Which means …)
- easier to handle
- less effort
- cleaner
- less chance injury
- no chance of not getting nitrogen on
- single application cheaper
- more effective coverage
- less loss to evaporation
- quicker plant response
- higher yield
Features and Benefits Summary
1. State the feature and link the benefit
2. Provide sufficient evidence of the benefit
3. Secure agreement from the prospect that
they see the benefit
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
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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…
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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….
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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
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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?’
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Client Drivers
Market Drivers
Capabilities
Differentiators
Solution
Measures
Quantitative
Business Value
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Compare to Alternatives?
Client Examples
The PVS Framework
Framework Elements
Client Drivers
Why have clients bought from us in the past?
3 Categories - Increase Revenue
Save Costs
Risk and Compliance
Market Drivers
What is driving buyers now?
Are our historic client drivers still relevant?
Capabilities
Which of the above drivers are we best
placed to market and sell against proactively.
Differentiators
What alternatives will the client have?
How are our capabilities unique?
Continued….
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Framework Elements
Solution
Measures
Quantitative
Benefits
What is the solution that we will actually
deliver? What business benefits will this
bring? The heart of the proposition.
To turn Value Propositions into Quantitative
benefits.
How much? By when? Evidence?
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Specific Value Proposition
Wealth Management Product Supplier
Client Driver
Capability
Differentiator
Solution
Small Private Bank needs to reduce number of
clients lost each year to bigger competitors.
Improved Client Reporting
Integrated to existing system, so reduces
implementation time and interface costs.
Client Reporting Module plus implementation
and training to maximise flexibility offered to
clients.
Continued….
© ARCL
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Specific Value Proposition
Measures
Reduction in number of clients lost. Increase
in new clients.
Quantification
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.
Example
Bank X achieved a similar turnaround in
year 1 after implementation, giving ROI in 9
months.
© ARCL
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Specific Value Proposition
Banking IT Consultancy
Client Driver
Capability
Differentiator
Solution
Reduce annual spend on unused software.
Review all IT systems registered/loaded on
servers and desktops. Review supplier
contracts.
We have methodology for this which our
competitors do not have.
Inventory of unused/unwanted software.
Action plan to remove it.
Continued….
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Specific Value Proposition
Measures
Quantification
Example
Decommissioning of totally unwanted
software.
Savings in annual maintenance. Reduced
need for hardware expansion purchases.
Z Bank reduced software vendor fees by E2
million pa.
© ARCL
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PVS Development
Client Driver
Brainstorm on business drivers of existing
and past clients.
Identify their category--‘Revenue
Increase/Cost Reduction /Risk and
Compliance’.
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PVS Development
Market Driver
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
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PVS Development
Capabilities
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.
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PVS Development
Differentiators
What generic differentiators do we have?
How do they vary for each client driver?
Which ones apply to which competitors?
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PVS Development
Solution
© ARCL
•
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?
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PVS Development
Measures
Working towards quantification of
benefits, brainstorm to identify key ratios
and measures.
Ideally benchmarks are needed from
client base and market data.
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PVS Development
Quantification
Examples
•
•
•
•
© ARCL
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.
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