Martyn Lewis 13th February 2009 MARKET-PARTNERS •Market-Partners is the world’s leading independent consulting company focused upon increasing business-to-business organizational sales effectiveness •100+ Client organizations •30,000+ sales professionals •37+ countries ©2008 Market-Partners Inc. CONFIDENTIAL 3 THE SELLING CRISIS 17% © 2008 Market-Partners Inc. — CONFIDENTIAL | RULE #1 When you are committed to a selling process, it really helps if there is someone else involved who is equally committed to a buying process ©2008 Market-Partners Inc. CONFIDENTIAL FIRST GENERATION SELLING BUYING: Communication: Face to face Choice: Few Process: Simple SELLING: Focus: Product Success: Selling skills ©2008 Market-Partners Inc. CONFIDENTIAL SECOND GENERATION SELLING BUYING: Communication: Telephone Choice: Some Process: Multi-transactional SELLING: Focus: Solution Success: Sales process ©2008 Market-Partners Inc. CONFIDENTIAL CHANGE ARRIVED AGAIN ©2008 Market-Partners Inc. CONFIDENTIAL 8 EMPOWERED BUYERS © 2008 Market-Partners Inc. — CONFIDENTIAL | 9 NETWORKED ORGANIZATIONS © 2008 Market-Partners Inc. — CONFIDENTIAL | 10 FULLY DEPLOYED RESOURCES © 2008 Market-Partners Inc. — CONFIDENTIAL | 11 | SHIFT HAPPENS The buyer has: more information more choice less resource less time © 2008 Market-Partners Inc. — CONFIDENTIAL The seller has: less control less access less power more competition Is sales now just a spectator sport? ©2008 Market-Partners Inc. CONFIDENTIAL THIRD GENERATION SELLING BUYING: Communication: Internet Choice: Unlimited Process: Multi-dimensional SELLING: Focus: Buying process Success: Synchronizing selling to the buying process ©2008 Market-Partners Inc. CONFIDENTIAL STEPPING UP TO 3rd GENERATION SELLING Step 1: Map the customer’s buying process Step 2: Craft the organizational selling strategy Step 3: Synchronize selling to buying ©2008 Market-Partners Inc. CONFIDENTIAL STEP 1: Map the customer’s buying process ©2008 Market-Partners Inc. CONFIDENTIAL BUYING IS NOT A RANDOM ACTIVITY Steady state Recognition Assess Definition Evaluation •Consistent and predictable steps •Key players by function or role •Value drivers and buying style ©2008 Market-Partners Inc. CONFIDENTIAL Selection Purchase Acquire 4-Q BUYING MODEL Any one of many suppliers can offer what I need You know Choice I have a need, and I know what I want ©2008 Market-Partners Inc. I have a need, and I don’t know what I want CONFIDENTIAL Only one supplier can provide what I need Unique I know 4-Q BUYING MODEL You know Choice Unique Free I know Discounts ©2008 Market-Partners Inc. CONFIDENTIAL BUYING STYLE AND DRIVERS You know •Competition •Price Choice •Good enough •Strategic sourcing Unique I know ©2008 Market-Partners Inc. CONFIDENTIAL BUYING STYLE AND DRIVERS You know •Competition •Price Choice •Good enough •Strategic sourcing Unique I know ©2008 Market-Partners Inc. CONFIDENTIAL •Brand •Service •Provision of unique value •Relationship BUYING STYLE AND DRIVERS •Expertise •Capability You know •Competition •Price Choice •Good enough •Strategic sourcing Unique I know ©2008 Market-Partners Inc. CONFIDENTIAL •Brand •Service •Provision of unique value •Relationship BUYING STYLE AND DRIVERS •Expertise •Capability You know •Competition •Price Choice •Good enough •Strategic sourcing Unique I know •Educated customers •In-house expertise ©2008 Market-Partners Inc. CONFIDENTIAL •Brand •Service •Provision of unique value •Relationship STEP 2: Craft the organizational selling strategy ©2008 Market-Partners Inc. CONFIDENTIAL SELLING STRATEGY 1. Market focus •Which quadrant? •How to move customers to that quadrant? •How to manage outside of that focus? 2. Where to engage in the buying process? 3. How to influence the buying process? ©2008 Market-Partners Inc. CONFIDENTIAL INFLUENCING THE BUYING PROCESS 1. Gain new opportunities 2. Increase probability of selection 3. Decrease time to commitment 4. Increase size of spend © 2008 Market-Partners Inc. — CONFIDENTIAL STEP 3: Synchronize selling with buying ©2008 Market-Partners Inc. CONFIDENTIAL SYNCHRONIZING SELLING WITH BUYING Steady state Recognition Assess Definition Evaluation Selection Purchase Acquire Understand Identify Discovery Conceptual approach Proposal Reinforce Negotiate Expand •The buying process is the dominant process •The buying process step and style dictates the optimal selling activities, that will: •Increase probability of being selected •Decrease time through buying process •Increase size of investment ©2008 Market-Partners Inc. CONFIDENTIAL MANAGING THE TOTAL PIPELINE Steady state Recognition Assess Definition Evaluation Selection Purchase Acquire 1. Determine the optimal pipeline to maximize results 2. Balance investment across the total pipeline 3. Maintain a healthy pipeline of opportunities synchronized to the buying process ©2008 Market-Partners Inc. CONFIDENTIAL STEPPING UP TO 3rd GENERATION SELLING ©2008 Market-Partners Inc. CONFIDENTIAL LETTING GO OF THE PAST 1. You can’t differentiate in a commodity world 2. Calling high is the key to success 3. Managing a sales opportunity 4. Shortening the sales cycle 5. ROI to gain commitment 6. A single decision maker 7. Forecast probabilities 8. Finding latent pain 9. Solution selling 10. Selling harder = Success ©2008 Market-Partners Inc. CONFIDENTIAL THE FORMULA FOR SUCCESS HAS CHANGED 3rd Generation Selling Synchronizing selling to buying 2nd Generation Selling Implementing a sales process 1st Generation Selling Improving selling skills © 2008 Market-Partners Inc. — CONFIDENTIAL Questions? ©2009 Market-Partners Inc. CONFIDENTIAL RESOURCES www.market-partners.com Roundtable discussion with a Principal from Market-Partners Focused conversation: •Applicability to your business •Areas of immediate return ©2008 Market-Partners Inc. CONFIDENTIAL Thank you Thank you Martyn Lewis www.market-partners.com mlewis@market-partners.com 707 575 4722 ©2008 Market-Partners Inc. CONFIDENTIAL