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Angela Lee, SAP
CONFIDENTIAL
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6 Phases &
Proof Points
8 Criteria For
Deal Scoring
SAP Sales
Methodology
Overview
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SAP Sales
Methodology
Overview
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SAP Sales
Methodology
Overview
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SAP’s globally adopted set of tools and
checkpoints used to manage opportunities,
objectively identify next steps, and forecast
opportunities accurately.
What
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The Psychological Buying Model –
Where is Your Prospect?
Based on the Research of Neil Rackham & Michael Bosworth
Risk
Level of Price
Buyer Concern
Solution
Needs
Time
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The Psychological Buying Model –
Where is Your Prospect?
Based on the Research of Neil Rackham & Michael Bosworth
Risk
Level of Price
Buyer Concern
Solution
Needs
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The Psychological Buying Model –
Where is Your Prospect?
Based on the Research of Neil Rackham & Michael Bosworth
B Risk
NEGOTIATE
C A
SELECT PURCHASE
Level of D Price
Buyer Concern EVALUATE
E
F CONSIDER Solution
RECOGNIZE
Needs
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6 Phases &
Proof Points
SAP Sales
Methodology
Overview
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At Every Phase…
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F - Recognize E - Consider D - Evaluate C - Select B - Negotiate A - Purchase
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Stage 1 – Need
F - Recognize E - Consider
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F - Recognize
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F - Recognize
Mindset Goals
Desired Tasks
Experience
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F - Recognize
Mindset
Something is keeping me from achieving my goal. What is that?
Can I afford to change something?
Can I afford not to change anything?
There must be a solution to my problem – who can help me?
Goals
Make decision as to if the idea is worth pursuing – make go / no go decision with moving forward.
Desired Experience
Looking for deeper insight / education that pertains to their situation.
Inform me. Provide compelling proof. Help me build the case for change.
Content / collateral needs to be
Industry specific or product specific
In their language / terms
Self service:
Let me research and self-educate
Find what I am looking for quickly and easily
Tasks
Deeper self-education on the idea and options
Identify potential for improvement or to gain a competitive advantage
Understand what others in the industry are doing to address this.
Understand who else in my company is impacted by my issue and who is responsible
Talk to potential providers - but don’t allow them to sell me something!!!!
Make a go / no go decision on moving forward to do something about this.
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F - Recognize
What To Do
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F - Recognize
What To Do
In this phase:
The customer understands they face a challenge so important they must change the way they do business, and SAP can help them find a solution.
The customer recognizes there’s a disruptive technology or other competitive advantage that’s so compelling they must find a way to leverage it.
Understand:
The overall company situation
Their place in the market
The specific circumstances under which the customer contact is talking to us
How open they are to thinking outside the box
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F - Recognize
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F - Recognize
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E - Consider
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E - Consider
What Customers Want
Mindset Goals
Desired Tasks
Experience
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E - Consider
What Customers Want
Mindset
How long is this process going to take and disrupt our daily business? Is now the right time? Who in my company is impacted? Do we already have an internal solution? How
much is this going to cost me? What is the best tool vs. Who is the best vendor? Who is better than the others? How can I convince my management that this is important?
Goals
Self-educate. Determine what’s possible and potential options for improvement in this specific area. Make go / no go decision on moving forward. Find potential partners
and solutions.
Desired Experience
Personalize – In my language / industry / role / stage of the process
Know my history (individual + company & landscape + stage of process) – I don’t want to repeat myself over and over again
Don’t refer me to another representative. I want answers from 1 person without a bunch of handoffs. If I am going to talk to you – you should know the answer across your
product lines.
Coach / mentor me – help me build the case for change. Give me ammo to prove this is worth doing. Collaborative process, creative problem solving
Answer my questions in a timely / concise manner – answer them direct
Don’t force me down your path to get the answers to my question
Don’t forget about me: update me on anything new relative to my needs. But don’t spam me with information I don’t need.
Tasks
Research & informal discovery
Learn solution / opportunity basics to pique interest and enable initial discussion
Provide opportunity for change
Understand industry best practices
Understand potential solutions at a high level
Create list of alternative solutions – narrow to short list for evaluation
Project team formation – decide to use internal resources or hire a partner
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E - Consider
What To Do
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E - Consider
What To Do
In this phase:
▪ Make the customer aware of new technologies available.
‒ The customer must be willing to think outside the box.
‒ They must be willing and able to spend resources on an exploratory project.
‒ They must think about how to fund a solution without limiting their options.
▪ Identify a customer Champion.
▪ Complete the initial Deal Qualification. This includes fully understanding the Compelling Event.
▪ Shape the customer‘s vision of the innovation possibilities.
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E - Consider
Can You Move Forward?
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E - Consider
Can You Move Forward?
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Stage 2 – Evaluation
D - Evaluate C - Select
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D - Evaluate
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D - Evaluate
What Customers Want
Mindset Goals
Desired Tasks
Experience
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D - Evaluate
What Customers Want
Mindset
What is the best tool vs. Who is the best vendor? Who is better than the others? What does this solution I am looking at do for me?
What are the benefits of what this thing can do?
“I want to move past the sales person and get under the hood”
Goals
Detailed Analysis of features and functions
Solidify my solution focus
Product risk analysis
Desired Experience
• Make it quick and easy to
‒ See a detailed proof of concept / demo - validate whose solution works better than the alternatives
‒ Understand the total cost (software, services, ongoing support)
‒ Talk to references
‒ Build the business case for my solution
‒ Understand what distinguishes the vendors from one another
• Support or accelerate my project timeline
• Collaborative process, creative problem solving / flexibility
• Don’t throw feature names at me – just tell me what the benefits are.
• Help me cover every aspect of my project. Remind me or make me aware of impact or consequences that I may not have considered.
Tasks
• Evaluate potential solutions and providers for a solution at a detail level – determine best fit against selection criteria
• Talk to References
• Compare alternatives
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D - Evaluate
What To Do
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D - Evaluate
What To Do
In this phase:
▪ Help the customer develop a detailed idea about what’s possible so they start calculating the impact of changing the way they work or implementing the disruptive
technology today.
▪ Be a challenger and leverage Business Thinking / Design Thinking and Solution Revolution techniques.
▪ This mindset is a good basis to start developing the Mutual Action Plan (MAP).
▪ Understand in detail who’s on our side and who might want a second opinion.
▪ Identify other projects we might have to compete with for budget.
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D - Evaluate
Sample Mutual Action Plan (MAP)
Create Solution Proof Criteria List Agree on all requirements that are criteria in the evaluation November 8 Done Partner AE and Customer
outcome decision Champion
Setup Demo Meeting Understand how solution works November 8 In Progress Customer Contact A
Customized Workshop Define details of current and future IT environment required for November 8 Open Partner Presales Consultant
solution
Legal Teams Meeting Prepare Contract: Legal Terms Negotiation November 15 Open Partner AE, SAP AE and
Customer Legal Contact
Reference Call Customer Decision Maker calls Reference Customer November 15 Open Customer Decision Maker
Solution Proof Meeting Meeting with all Stakeholders to get solution proof confirmation November 22 Open Customer Champion
Negotiation and Contract Signature Meeting with Decision Making Unit or Purchasing November 29 Open Partner AE, SAP Executive
Sponsor and Customer
Decision Maker
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D - Evaluate
Can You Move Forward?
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D - Evaluate
Can You Move Forward?
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C - Select
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C - Select
What Customers Want
Mindset Goals
Desired Tasks
Experience
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C - Select
What Customers Want
Mindset
“This vendor best meets our requirements. We want to partner with them.”
Goals
• Select a specific approach and vendor(s) to execute the solution;
• Ensure clear value proposition
• Solidify my focus even more
• Product risk analysis
Desired Experience
• Obvious to see (and prove) which is the best solution / vendor – they stand out above the rest
• Comfortable with the vision and the ability to execute on that vision
• Differentiated solutions that are unique
• Relationships are true, sustainable and throughout the organization
• Have all the info needed to sell this selection internally and move forward
• Feel safe with selection – least risk
• Understand my needs
Tasks
• Complete evaluation
• Validate what you are being told by independent 3rd parties
• Verify references
• Senior executive alignment and commitment
• Create internal deployment team plan and start allocating resources
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C - Select
What To Do
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C - Select
What To Do
In this phase:
▪ The customer should understand the importance of the new solution or technology to their business. They should recognize which issues it will resolve and the new
value and potential it offers.
▪ For that to happen, you must set up and execute the right solution proof steps, with the participation of the right customer contacts.
▪ Understand the value of the solution to the customer.
▪ Understand the customer’s decision-making and purchasing process and be in contact with all major participants.
▪ You should initiate the internal closing process and make sure it’s aligned with the customer’s Compelling Event and implementation timeline. That includes Legal
T&C and RevRec clarification, including risk assessment due to new product development, if applicable.
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C - Select
Can You Move Forward?
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C - Select
Can You Move Forward?
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Stage 3 – Commitment
B - Negotiate A - Purchase
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B - Negotiate
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B - Negotiate
What Customers Want
Mindset Goals
Desired Tasks
Experience
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B - Negotiate
What Customers Want
Mindset
“Is this the best possible deal? Is the risk of the solution and committing to the vendor acceptable? Is this serving the interests of my Customers, shareholders,
and employees?”
Goals
• Get the best financial and contractual terms for my desired business solution
• Solution and Vendor Risk Analysis
• Come to an internal go/no-go decision
Desired Experience
• Contract aligned with our business objectives, not SAP’s business silos
• Does the contract reflect solution maturity/does SAP have appropriate “skin in the game”
• Easily understood terms and conditions
• Teams are aligned and protecting mutual interests
• Conditions are in line with our Corporate polices
• Price is fair and equitable for all parties (win/win)
Tasks
• Prepare detailed deployment plans and align resources
• Execute engagement plan / negotiation plan / solution plan
• Align contract with our business objectives
• Ensure conditions are in line with our Corporate polices
• Ensure price is fair and equitable
• Talk to all stakeholders, make sure that we are internally aligned
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B - Negotiate
What To Do
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B - Negotiate
What To Do
In this phase:
▪ The customer needs to believe that SAP can deliver the solution and that the deal is aligned with their perceived business value.
▪ SAP will build a negotiation plan to ensure that the deal structure and parameters are aligned within and across SAP.
▪ The team will align with internal stakeholders and will prepare and complete the SAP processes to support the contract.
▪ Our basis for successful negotiations is a thorough Value Justification Analysis and execution of the negotiation plan.
▪ The planned solution deliverables are in accordance with the contract process, and the customer negotiates terms and conditions to support the delivery of the
agreed-upon solution.
▪ Assure the customer that signing the deal with SAP isn’t a risk. In fact, signing the deal is less risky than doing nothing.
▪ If applicable: Decisions will be made to evaluate ownership of Intellectual Property of any solution development.
▪ Engage with the delivery team and prepare hand-off.
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B - Negotiate
Can You Move Forward?
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B - Negotiate
Can You Move Forward?
▪ The decision maker confirms that the Value Justification Analysis is valid. Going into final negotiation meetings without this confirmation is possible, but it is much
riskier, because it weakens our position.
▪ Alternatively, if you have already finalized negotiations without waiting for the decision maker’s confirmation, the deal may have been pushed ahead into the signing
process. Once that happens, you are in the PURCHASE phase, however fair the deal turns out to be.
▪ The negotiator insists on such a high discount that SAP wouldn’t gain anything or would even lose money if the deal was signed.
▪ The negotiator insists on terms out of scope for SAP.
▪ If the customer still has product concerns—as opposed to risk concerns or concerns about SAP as a business partner—it indicates they aren’t ready to purchase,
because:
‒ The solution proof wasn’t delivered properly.
‒ The customer doesn’t plan to sign with SAP and is using product concerns as an excuse to step away.
▪ If the customer keeps talking about product features, refer to the solution proof confirmation. Ask them to explain why they changed their mind and what you need to
do to resolve the situation.
▪ This returns you to the Select phase, which means closing will be delayed.
▪ If the customer doesn’t give you credible answers, disqualify the deal: You are probably being used as column fodder for negotiations with another vendor.
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A - Purchase
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A - Purchase
What Customers Want
Mindset Goals
Desired Tasks
Experience
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A - Purchase
What Customers Want
Mindset
“Are we totally committed to this deal?”
Goals
Complete Procurement expeditiously resulting in acceptable business terms, legal terms, and commercials
Desired Experience
• Contract aligned with our business objectives, not SAP’s business silos
• Easily understood terms and conditions
• Teams are aligned and protecting mutual interests
• Conditions are in line with our Corporate polices
• Price is fair
• Risk is acceptable
• Be there for me when I have questions or second thoughts
• But: Don’t crowd me or push for a decision – I’ll give you my decision when I’m ready (“sleep on it”)
Tasks
• Complete Negotiation (one last squeeze …)
• Complete Procurement
• Communication of successful project launch to all constituents
• Finalize project deployment plan and assign resources
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A - Purchase
What To Do
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A - Purchase
What To Do
In this phase:
▪ The customer believes that they will get a great solution for a fair price and that the risk signing with SAP is minimal.
▪ Negotiations are finalized.
▪ The purchasing and closing processes are finalized.
▪ Once negotiations are finalized, create a final quote or contract with the agreed conditions, deliver it to the customer, and get confirmation they accept.
▪ The official signing process starts.
▪ Prepare to start Implementation as soon as the signed contract gets in.
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A - Purchase
Can You Move Forward?
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A - Purchase
Can You Move Forward?
▪ The negotiator insists on such a high discount that SAP wouldn’t gain anything or would even lose money if the deal was signed.
▪ The negotiator insists on terms out of scope for SAP.
▪ If the customer still has product concerns—as opposed to risk concerns or concerns about SAP as a business partner—it indicates they aren’t ready to purchase,
because:
‒ The solution proof wasn’t delivered properly.
‒ The customer doesn’t plan to sign with SAP and is using product concerns as an excuse to step away.
▪ If the customer keeps talking about product features, refer to the solution proof confirmation. Ask them to explain why they changed their mind and what you need to do
to resolve the situation.
▪ This returns you to the Select phase, which means closing will be delayed.
▪ If the customer doesn’t give you credible answers, disqualify the deal.
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F - Recognize E - Consider D - Evaluate C - Select B - Negotiate A - Purchase
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Proof Points
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Partner Prospect SAP
FSM Phase
Skill / Action Reaction Proof Point
Generate Interest
Proof Points F - RECOGNIZE
Qualify Deal
Commits to further
conversations
Confirmation
Communication
Shape Vision
E - CONSIDER Champion agrees to explore Champion Communication
Qualify Deal
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6 Phases &
Proof Points
8 Criteria For
Deal Scoring
SAP Sales
Methodology
Overview
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Deal Scoring Provides a Temperature Check through the Sales Cycle
COMMON LANGUAGE 8 CRITERIA
Compelling DEAL SCORING
Event
VALUE STORY Customer Customer
Challenges Stakeholder
Strategy ENGAGEMENT
PLAN
Moderate
Business 8
Value Competitors Strong
Drivers Criteria
Solution
Differentiators Ecosystem
Funding
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Compelling Event
Why change and why now?
TYPE OF COMPELLING EVENT OVERALL COMPOSITION
PAIN DEADLINE
Customer challenges such as incorrect invoicing or A date or time-bound event
customer attrition
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Customer Challenges
No Pain….No Sale
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Business Value Drivers
Early qualification to identify the value drivers and map to key stakeholders
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Solution Differentiators
Creating the value proposition to the customer
UNIQUENESS
Value
Parity Your Services
Our
Solution Competition
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Stakeholders Strategy
Building your stakeholder map to identify the best mobilisers
Decision Making Unit (DMU) or Buying Unit Area of Influence Attitude to SAP
Opposing
Economic
(One to few)
Neutral
Operational
(Few to many)
Supporting
Specifier
(Few to many)
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Champion Identification
What is a Champion?
✓ A customer contact who is on our side
and helps us sells internally
✓ The Champion will influence the deal or
even be involved in the decision making
✓ The Champion has the power and is
willing to grant us access to the Decision
Maker
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Competitors
Early engagement to influence the customer vision
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Ecosystem
Ensuring that all partner resources have been considered, and assessed and a
strategy to jointly engage with customer stakeholders is in place
POWER
CONFLICTING
&
INTEREST
VALUE
JOINT VALUE
PROPOSITION
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Funding
What is budget status, sign off process and investment constraints?
X X X
Does the Customer have funding? Do we understand the customer What are the sign off bottlenecks?
sign off process?
Minimum Rate of Return (MRR) Global vs. Local (G/L)
Budget approvers identified
Phased Investment, limited to current year? Function vs. Function (F/F)
Budget sign off process identified
Funding sources? Inside vs. Outside (I/O)
Budget approval status verified
Priority of Investment Centre vs. Business Unit (C/BU)
Budget size verified
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8 criteria to help score your deal
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Deal Qualification – An AE’s View
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Overview Deal Execution
Recognize Purchase
Consider (E) Evaluate (D) Select (C) Negotiate (B)
(F) (A)
• Is there a Deal ? • Are we progressing the Deal? • How are we managing the risks
• Should we invest? • Do we have a Customer-validated and to close?
• Can we win it? commercially accurate Bill of Materials?
• Is our Mutual Action Plan solid?
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6 Phases &
Proof Points
8 Criteria For
Deal Scoring
SAP Sales
Methodology
Overview
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