closing the deal : when is the right time to ask for the order - sales & marketing summit
TRANSCRIPT
© MindIT Learning Pvt Ltd – Confidential & Proprietary Information. Duplication is Prohibited.
Understand B2B Buying & Selling
ExamineOpportunity dynamics
How to Organize to Close Deals?
Closing the Deal – When is the right time to do ask for the Order ?
THINKING OUTSIDE INan extensive training series by
THINKING OUTSIDE IN 1.2Closing the Deal – NPC 2016 © MindIT Learning Pvt Ltd – Confidential & Proprietary Information. Duplication is Prohibited.
NEED TO KNOW MORE OF YOU…
HOW MANY OF YOU …
Are from B2C Companies ?QAre from B2B and B2G companies ?QHow many are from Sales/Client Acquisition function ?QHow many are from Product Companies ?QHow many are from Services Organizations ?QHow many are from Bid/Proposal Management function ?Q
THINKING OUTSIDE IN 1.3Closing the Deal – NPC 2016 © MindIT Learning Pvt Ltd – Confidential & Proprietary Information. Duplication is Prohibited.
LET’S DEBATE !
Q What is the difference between a CUSTOMER and a CLIENT ?Q
CUSTOMER
CLIENT
THINKING OUTSIDE IN 1.4Closing the Deal – NPC 2016 © MindIT Learning Pvt Ltd – Confidential & Proprietary Information. Duplication is Prohibited.
TransactionalLeast
Huge (millions)Marketing & Advertising
NilNil
Customer ClientTransactional Relationship Deep
Understanding
Least Switching cost High
Huge (millions) Volume Few (thousands)
Low Value High
Marketing & Advertising
Selling References &Individual Selling
Nil Organization Connect Many to Many
Nil Customization High
Customer to Client Continuum !
THINKING OUTSIDE IN 1.5Closing the Deal – NPC 2016 © MindIT Learning Pvt Ltd – Confidential & Proprietary Information. Duplication is Prohibited.
ALIGN SALES PROCESS TO BUYING PROCESS…
OpportunityAssessment
ProposalPreparation
Prepare RFP
EvaluateProposals
Marketing OpportunityManagement
ProposalPlanning
PostSubmittal
Identify Need
Define Requirements
Release RFP
Presentation& Award
Business Issue Assess Needs Evaluate Solutions Resolve
& Implement
Account Plan
Marketing Plan
Strategic Plan
OpportunityQualification
Bid Go/NO GO
ConvinceStakeholders
Capture Plan
Draft ExecutiveSummary
ContentPackages
Proposal Plan
Proposal
Red Team Review
Storyboards
Lessons Learned
Final Offer
OralPresentation
BUYING CYCLE
KEY MILESTONES
SELLING PHASES
VERIFIABLE OUTCOMES AT EVERY PHASE
THINKING OUTSIDE IN 1.6Closing the Deal – NPC 2016 © MindIT Learning Pvt Ltd – Confidential & Proprietary Information. Duplication is Prohibited.
WHERE IS YOUR SPEND ?Source : Association of Proposal Management Proposals (www.apmp.org)
PRE RFP PHASE PROPOSAL PHASE POST SUBMISSION
20%
40%
60%
80%
Leaders - Proactive
Followers - Reactive
THINKING OUTSIDE IN 1.7Closing the Deal – NPC 2016 © MindIT Learning Pvt Ltd – Confidential & Proprietary Information. Duplication is Prohibited.
REST of the Organization• Low Energy• Slow Closure• High Attention to Detail• Process Driven• Fixed Salary
SALES• High Energy• Quick Closure• Low Attention to Detail• Process – Hindrance ?• Ethics/Honesty ?• Commission/Number Driven
Need to harness different mindsets
The Sales department isn’t the whole company, but the whole company better be
the Sales department
Philip Kotler
THINKING OUTSIDE IN 1.8Closing the Deal – NPC 2016 © MindIT Learning Pvt Ltd – Confidential & Proprietary Information. Duplication is Prohibited.
THE OPPORTUNITY QUADRANTRFP BASED• Early in the cycle• Critical• Critical• Rigid• Critical• Unknown
NON-RFP BASED• Iterative• Multiple opportunities• Multiple opportunities• Flexible• Critical• Reasonably known
..Opportunity Qualification....Organization Selling..
..Competitive Intelligence....Buying Cycle..
..Solution Selling....Buying Factors..
• Medium• Low• Flexible• Critical• Reasonably known
• Iterative• Low• Can be influenced• Iterative• Can be influenced
..Opportunity Qualification....Organization Selling..
..Buying Cycle....Solution Selling....Buying Factors..
EXIS
TIN
G C
LIEN
TPR
OSP
ECT
THINKING OUTSIDE IN 1.9Closing the Deal – NPC 2016 © MindIT Learning Pvt Ltd – Confidential & Proprietary Information. Duplication is Prohibited.
THE OPPORTUNITY TYPESOPPORTUNITY TYPE YOUR ORGANIZATIONCLIENT
• Infrequent• Organization wide impact• High risk
• High value• Stretch for your organization• Highly customized response• May require partnering
STRATEGIC
• Functional• Medium risk• Niche requirement
• Organization sweet spot• Medium customized response• Medium opportunity qualification
OPERATIONAL
• Commoditized• Lead by procurement• Routine
• High volume• Routine response• No opportunity qualification• Expect a high win ratio
TRANSACTIONAL
THINKING OUTSIDE IN 1.10Closing the Deal – NPC 2016 © MindIT Learning Pvt Ltd – Confidential & Proprietary Information. Duplication is Prohibited.
Process
Skills
Content
Bringing Boredom to Excitement…
Closing the Deal
• Opportunity Management• Solutioneering
• Win Strategy• Reviews
• World Class Proposals• Defense and Negotiations
• Consultative Selling• Relationship Building
• Internal Selling• Sales Leadership
• Content Management Strategy & Process
• White Papers• Sales Decks• Credentials
• Organization data
THINKING OUTSIDE IN 1.11Closing the Deal – NPC 2016 © MindIT Learning Pvt Ltd – Confidential & Proprietary Information. Duplication is Prohibited.
DEVELOPING A CLIENT HEAT MAP
User Decision Maker
ApproverEvaluator
Hostile
Neutral
Supporter
Sponsor
Non-Supporter
JERRY Innovator/Visionary
PragmatistConservative/Laggard
CHANGE PROPENSITY
COVERAGE
No/Brief Contact
Some Contact
Multiple Contacts
YOUR RELATIONSHIP
BUYING ROLE
SUE
THINKING OUTSIDE IN 1.12Closing the Deal – NPC 2016 © MindIT Learning Pvt Ltd – Confidential & Proprietary Information. Duplication is Prohibited.
CHALLENGES IN DEVELOPING AN UNDERSTANDING !
TECHNIQUESLack of a consistentand easy technique to build understanding
DIFFERENCESDifferent individuals
in team come with different world views
ITERATIONSTypically requires multiple iterations with client stakeholders (not always available)
BIASESLeaving our
own biases out
METHODNeed for an easy method to present and review our understanding
STRUCTURENeed a structure to help us drive the downstream
process
THINKING OUTSIDE IN 1.13Closing the Deal – NPC 2016 © MindIT Learning Pvt Ltd – Confidential & Proprietary Information. Duplication is Prohibited.
WHAT GOES INTO Closing the Deal ?
SALES PRE-SALES
CLIENT
Pains/Gains
YOUR SOLUTION
Competition Intelligence(Anecdotal)
Competition Intelligence
(Markets)
Client Intelligence
(external)
PROCESS
• Understand Client Context
• Right Solution
• Credentials• Capability Right Content
Right People
Client Intelligence
(internal)
A Winning Proposition
THINKING OUTSIDE IN 1.14Closing the Deal – NPC 2016 © MindIT Learning Pvt Ltd – Confidential & Proprietary Information. Duplication is Prohibited.
YOUR CHOICE !
THINKING OUTSIDE IN 1.15Closing the Deal – NPC 2016 © MindIT Learning Pvt Ltd – Confidential & Proprietary Information. Duplication is Prohibited.
Many a times it ends up this way….