Selling Distinct Products/Services
Trevor Akervik, Marco
Tom Callinan, Strategy Development
Trevor Akervik
Director of Managed Services
• 13 years with Marco
• 2001-2004 - Copier Territory Sales Rep
• 2004-2009 - Copier Sales Manager
• 2009 - Director of Managed Services
• Was the 1st member of the team
• Sales atmosphere was almost 100%
hardware focused
• Knew less than zero about IT industry
• Wasn’t 100% convinced it was the
right career move…
Tom Callinan
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Founder and CEO Copifax, Philadelphia 1987
Sold to IKON September, 1997
VP Ops/CFO IKON MidAtlantic District, 1998
Marketplace President, NYC 1999 – 2001
Southeast Region President, 2002 – 2003
VP/GM Northeast Region, 2003
VP/GM East Region, 2004 – 2005
Strategy Development, 2006
Graduate of the Wharton School, University of
Pennsylvania
Management Drives Changes
• Organizational change can’t be led from the
front line
• To be successful in a new business you need
strong leadership and management processes
– Ensure you have those in place before you try to
change the behavior of your sales professionals
• Once leadership is in place use education and
incentives to change the front line employees
Using Market Segmentation
• When measured by employees, what size firm
do you target
• Copiers
– 50 – 250
• How about for MPS
– 100 - 1000+
• And for MNS
– 20-100
MNS
Copier
MPS
Segmentation Takeaway
• A traditional copier company’s base most
closely mirrors an MNS target market
• Even with that overlap only 20% of your
copier customers will be good MNS clients
• Nevertheless, 20% of 2,000 customers = 400
MNS clients
– At $2,500/month/contract = $12 million business
Targeting ZBA Accounts
Sampling of 100 businesses in typical industrial park:
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40 percent are single placement segment I or low end segment II with fewer
than 10 employees (80% of US firms have < 10 employees)
5 percent are Fortune 500 Companies looking for a national provider
5 percent are branch offices with purchasing at corporate outside of the area
5 percent are your own customers
5 percent are in another rep’s CRM in your office
60 percent of your time is wasted randomly cold calling
You want to focus on the other 40%, those that are
highly profitable and can buy MNS or MPS in
addition to equipment
• As you add other business offerings to your core customer
segmentation becomes critical
7
List Manage Sales Professionals
“The job is hard. Really, really hard. ‘But, not for
the reasons you think. The combination of an
awful lot of freedom coupled with the absolute
necessity of a disciplined mindset’ can be a
dangerous combination for most people.”*
• You are not hiring well educated business
managers or entrepreneurs so provide them
some structure
*Article Source: http://EzineArticles.com/3718395
Territory Design To Maximize
Revenue
• You can calculate your estimated annual revenue from
equipment upgrades at every level
– Company, branch, sales team, sales professional
• Each machine in field (MIF) has a value
– Determined by segment average unit selling price and
average life in field
– MIF becomes foundation of quota
• Not all ZBA accounts are created equally
– Focus on the accounts with the greatest ROI, with
investment being sales professional’s time
• “Territory” = list of MIF and ZBA accounts
• MNS quota is developed from technology in field (TIF)
MPS Resources
• MPS specialist target companies with 250+
employees (major accounts) with SME as overlay
for <250
• In accounts with fewer than 25 total devices,
lease upgrades should be banished as an event
• Use the lease upgrade cycle as your opportunity
to perform a study of the customer’s document
environment
– Mobile has changed how people print
– The current hardware environment has probably been
in place for 10+ years, before most of today’s
technology was invented
Market Segmentation Benefits
• You get the greatest ROI on your sales investment
– You’re selecting where your resources are deployed rather
than leaving it to happenstance
• Your sales professionals have a greater opportunity of
achieving success
– You know they are spending their time on the correct
accounts
• Your sales managers have a defined list to help the
sales professional penetrate and expand
– The focus is on making progress in each account, a great
way to identify areas to develop each sales professional
• You know specifically which clients and ZBA targets
should be targeted for MPS and MNS
Market Segmentation Summary
• A mid-market sales professional can realistically
handle 250 accounts
– 520 hours/quarter, 1 hour/assigned account, 50% of
time devoted to selling activity
• Focus your sales professionals on the accounts
with the highest value to your company
– At an average of 3 MFDs/ZBA and a ratio of 80 MIF/
170 ZBA you have ZBA opportunity of 510 MFD, 2,000
printers, and professional services and MNS wallet
share gains
• Provide them with the training and give them a
quota for MPS/MNS
Who Buys Your Product
• The decision maker for copiers/MPS
– If company < $15M = owner
– If company < $40M = owner or CFO
– If company < $80M = CFO or CIO
– If company > $80M = CIO or Director of IT
• For MNS you almost always want the owner
with a strong CFO as distant second
• They have their life’s histories on LinkedIn so
we don’t need to drop by to determine who
they are
The Sales Formula
• Prospects X average transaction size X close
ratio = revenue
• Close ratio has the lowest improvement rate
(from X to Y)
• “Prospects” is easiest variable to significantly
improve
• Average transaction size can be improved
more than close ratio
– MPS can increase your average transaction size
and MNS can significantly increase the
transaction size
The Sales Formula
[Prospects X 1.5 (50% improvement)]
X (average transaction size X 1.2) X
(close ratio X 1.1) = 1.98% of original
revenue
Driving pipeline growth is the holy
grail of sales growth
Account Planning Session (APS)
• Each manager spends one hour per week per rep
developing strategy and tactics in accounts that will not
close for > 6 months
– Start at 5 accounts but once proficient can cover 10 in one
hour
• Multiple goals
– Develop more relationships—get higher and wider
– Look for tangent approaches—MNS/MPS, software,
branch location placement, application
– Increase share of wallet—displace competitors
– Increase pipeline so that you grow and gain market share
– Develop the sales professional!
Pipeline Management
• If you grow pipeline you will grow your business!
• Pipeline measures effectiveness of APS
• Three phases for copiers
– Phase 1 = 4 – 18 months out (20X quota)
– Phase 2 = 31 – 90 days out (10X quota)
– Phase 3 = next 30 days (5X quota)
• Three phases for MPS/MNS
– Phase 1 = 4 – 9 months out (20X quota)
– Phase 2 = 31 – 90 days out (12X quota)
– Phase 3 = next 30 days (7X quota)
Success in MPS/MNS
• If you want to know how your program is
progressing simply measure your pipeline
growth over a rolling 12 month cycle
• Pipeline provides you visibility into future
periods and ability to adjust today
MANAGEMENT DRIVES THE
CHANGE
How Do Your Core Reps Qualify an
Opportunity?
About 20%
of SMBs
Type of SMB
Decision Maker
Type of Partners
They Seek
COMPATIBILITY MATRIX
Sales Deployment
• MNS needs to be supported by SME
• In the equipment space the same SME can be
used for MPS and MNS
• The equipment sales professional is
quarterback
• In major accounts MPS can be supported by
direct sales specialist
Setting New Client Expectations
• Transitioning the relationship to
onboarding resources:
– Allows sales to refocus on selling
– Bridges the gap between sales
and service
– Builds credibility and enhances the
client experience
The Quarterly Technology Review
• Provides a report card of delivered services
• Response metrics – changes the conversation
to facts rather than feelings
• Plan for client’s future – acquisitions, new
office expansions, growth or decline in
employee counts
What’s The Future of The Core Rep?
• As copier industry matures, there will be fewer
“copier reps” and more “technology reps”
• Hire to this model today
so you can transition
employees into the new
role
• Focus on advanced
solutions to continue
driving market share gains
It’s all connected
• Hire the correct sales professionals = lower
turnover
• Lower turnover = better developed sales
professionals
• Territory design ensures fair assessment, good
use of time, and ability to sell all offerings
• APS = more prospects (pipeline), ability to expand
share of wallet, and sales professional
development
• Pipeline measurement = future period visibility
and ability to see growth prospects
Pitfalls Of Implementing Better
Management
• Pain in change
– The fact is that today’s “no management” is easy:
Go cold call and when you find an opportunity I’ll
be there for you
– Scientific management requires some upfront
work (territory structure) and a disciplined focus
to employee development
– Initially, near term results are emphasized over
short term results (develop the employee and
build the pipeline)
– Managers have to adapt to real management
Benefits of Better Management
• Transition of focus to employee and pipeline
development won’t change short-term results
• You’ll recognize the same revenue this month you would
have had you not launched the change!
• Sales professionals are held more accountable
then before
• They must have strategies for penetration in all accounts in
their territory
• They have to prepare for all the meetings, both internal
account development as well as customer meetings
• The manager can help them identify opportunities for MNS,
MPS and wallet share growth
• They will grow their 18 month pipeline in all revenue
streams
Summary
• Strong management is key when launching a new
business
• Make certain you call on the correct sized
company and the correct level
– Focus your sales professionals…don’t hope they find
the correct accounts
• Front line manager needs to be change agent
using account planning sessions to educate the
sales professional and drive pipeline
• Pipeline is measurement of future growth
• You need the correct direct or overlay positions
Summary (cont)
• Core equipment sales professional is
quarterback and does initial account
qualification
• Spend time to on-board the new client
successfully
• Use the QTR to keep clients informed and
expand share of wallet
• Hire to the future
Thank You
Trevor Akervik
Tom Callinan