Sales Strategy

Vidhya Srinivas
What is your business
model??????
What is the difference between
Business Strategy & Sales
Strategy
A Sales strategy is the translation
of Business or Marketing strategy
at the level of Individual
consumer
WHAT IS A SALES
STRATEGY?
 Key Questions
What type of relationships 4 1 What is the
do we want? customer’s buying
behaviour?
PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS

KEY DISTRIBUTION
RESOURCES CHANNELS
Who are we going to
3 target and why?

COST STRUCTURE REVENUE STREAMS

How are we going to

What is our value 5
2 do it?
proposition?
 What is
The customer buying behaviour
1. What are their problems
and needs?
PARTNER KEY OFFER CUSTOMER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS SEGMENTS

2. What type of “value” are

KEY
RESOURCES
DISTRIBUTION
CHANNELS
they looking for?

COST STRUCTURE REVENUE STREAMS

3. How do they typically buy
this type of product /
service?
1.What is their problem and their
need????
 What is their opinion on all these changes?

What do they fear?

What do they like?

What do they think and feel?

Political / Legal Change

What do their customers doing?
Technological Change
they hear Customers What do
they see their suppliers doing?
Economical Changes
heir competitors doing?
Social Changes
What do they say and do?
Others .͙

What have they stopped doing?

What have they started doing?

What are their main problems / pains? What do they try to achieve / gains ?
 1. What are their problems and needs?
2. What type of “value” are they looking for?
 What is
the
price

How will Extrinsic Value

it Buyers
improve
our
business VALUE = BENEFITS/COSTS How will it
solve our
problems

Strategic Value Intrinsic Value

Buyers Buyers

Source: Neil Rackham, “Rethinking the Sales Force”

 1. What are their problems and needs?

2. What type of “value” are they looking for?

3. How do they typically buy this type of
product /service?
How do your customers
buy from you ??
 What is Value Proposition?

1. What are the features,

PARTNER
NETWORK
KEY
ACTIVITIES
OFFER CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS advantages and benefits
of your value proposition?
KEY DISTRIBUTION
RESOURCES CHANNELS

2. What is your sales pitch?

COST STRUCTURE REVENUE STREAMS

What is Value Proposition?

1. What are the features, advantages and benefits

of your value proposition?
 What are the FAB of your Value Proposition?

“What is it for me?”

Ways how the product can be used to
Advantages meet the needs of the user.

Benefits

Advantages
Features
Features “What can your product do?”
Raw facts and information about
“So what?” the product.
Ways in which the features can be
used to help the user.
 The…(feature)…means
you…(advantage)…with the real
benefit to you being…(benefit).
 What is Value Proposition?

1. What are the features, advantages and benefits of

your value proposition?

2. What is your sales pitch?

 20 MIN

What is your Sales Pitch?

1. Based the information from the FAB and from the

customer intimacy map write down your own sales pitch.

HINT: A sales pitch is usually small. Do not try to put too much
information.
For <ideal customer>

who is unsatisfied with <current alternative>

Our product is a <product category>

that <key benefits/advantages>

unlike <competition>

we have assembled a product that <unique differentiators>

 Who are we going to target and Why?

1. What makes a customer

PARTNER
NETWORK
KEY
ACTIVITIES
OFFER CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS attractive to us?

KEY
RESOURCES
DISTRIBUTION
CHANNELS
2. What makes us attractive
to our customers?

3. How to differentiate our

COST STRUCTURE REVENUE STREAMS

customer approach?
1. What makes a customer attractive to us?
Who are we going to target and Why?
What makes a customer attractive about us?

Nature of criteria
‘Soft’ ‘Hard’

Customer Customer Outcomes

attributes needs
Risk reduction: Opportunities for Financial
working together product/service outcomes/profit
differentiation
• Strategically important • Member of targeted • Spend
purchase segment • Turnover
• Appropriate decision- • Strategic fit • Volume
making structure
• Want non-standard • Cost to serve
• Right attitude to solutions
relationships • Profit
• Prepared to pay for • Specifics (e.g. Speed, • Contribution
value compatible systems) • Price
• Prepared to invest • Compatible services • Growth
 Who are we going to target and why?

1. What makes a customer attractive to us?

2. What makes us attractive to our customers?

 What makes us attractive?

Examples of customer criteria when looking at their suppliers:

• Product/service range
• Product/service quality
• Product/service adaptation to Customer’s needs
• Quality of support services
• Price
• Associated Services (e.g. technical advice)
• Expertise
• Joint projects, R&D etc.
• Reputation and image of supplier
• Past experience of working with supplier
• Quality of sales/KAM/Customer service staff
• Quality of relationships
• Easy to do business with
• Geographical spread
• Value for money
 Who are we going to target and why?

1. What makes a customer attractive to us?

2. What makes us attractive to our customers?

3. How to differentiate our customer approach?

How to differentiate our customer approach?

10
Strategic Star Segments
Segments or or Customers

9
Customers

8
7
Invest Selectively Invest

6
5
Status Streamline
4

Segments or Segments or
Customers
3

Customers
2

Maintain Manage for Cash

1

1 2 3 4 5 6 7 8 9 10
1 2 3 4 5 6 7 8 9 10
Business strength
 What types of relationship do we want?

1. What type of
PARTNER
NETWORK
KEY
ACTIVITIES
OFFER CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS relationships do we
have?
KEY DISTRIBUTION
RESOURCES CHANNELS

2. What type of
relationships do we
COST STRUCTURE REVENUE STREAMS want?
What types of relationship do we want?

1. What type of relationships do we have?

What types of relationship do we want?

Collaborative

Integrated

Interdependent

Co-operative

Basic

Transactional
Collaborative

Exploratory Customer Strategic Intent

Adapted from Millman and Wilson 1994 by McDonald and Woodburn 2000
 What types of relationship do we want?

1. What type of relationships do we have?

2. What type of relationships do we want?

What types of relationship do we want?

10
Integrated Integrated

9
8
Interdependent
Interdependent

7
6
5 Co-operative
Co Operative
4

Basic
3

Basic
2
1

1 2 3 4 5 6 7 8 9 10
1 2 3 4 5 6 7 8 9 10
Business Strategies
business strength
 How are going to do it?

1. What type of sales

PARTNER
NETWORK
KEY
ACTIVITIES
OFFER CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS approach do we need?

KEY
RESOURCES
DISTRIBUTION
CHANNELS
2. Which channels should
we use?

COST STRUCTURE REVENUE STREAMS

1. What type of sales approach do we need?
What type of approach do we need?

Leverage Size Partner

Shop
Manage risk

Low Difficulty of Substitution High


Product and service
characteristics
Key buyer concerns and decision
criteria
Time horizon
Nature of relationship
Prerequisites for success
Nature of sale
Transactional Selling
-Well understood
-Readily substitutable
-Standard items
-Price
-Availability and risk
-Ease of acquisition
-Event
-Cost based
-Buyer seller
-Confrontational
-Access to decision maker
- Doing the deal
- Simple Sales process
- Short sales cycle
- One or few decision makers
Consultative Selling
-Differentiated
-Customisable
-Hidden capabilities
-Importance of problem
-Solution fit
-Price performance trade off
-Purchasing stream
-Benefit based
-Client advisor
-Cooperative
-Access to influencers
- Problem / Need solving
- Long sales cycle
- Complex sales process
- Large DMU
Partnership Selling
-High strategic and or cost
importance
- Limited substitutability
-Platform fit
-Value fit
-Sustainability
-Sufficient value for effort
-Strategic plan
-Trust based
-Business equals
-Insider
-Access to strategy
-Agenda setting
- Boundaries blur - unclear who is
selling and who is buying.
 What type of selling do you think each of these salespeople at
Suzuki use?

Car Salesperson. Responsible for persuading customers to buy a

Suzuki car.

Fleet Service Salesperson. Responsible for persuading Suzuki’s

resellers to promote their fleet services.

Distribution Salesperson. Responsible for persuading potential

resellers to become a Suzuki reseller.
 What type of Sales approach do we need?

Defin
DEFINE IDENTIFYING
Defini
DEFINING IDENTIFY
Select
SELECT
STRATEGIC
AGENDA
Identi
EXECUTION
GAPS
PROBLEMS AND
NEEDS
Iden
SOLUTION SUPPLIER &
PRODUCT

e ng Suppl
fying
Strat Probl tify ier
Execu PURCHASE

egic ems Solu and

tion and
Agen Produ
da
Gaps Needs tion ct

Source: Neil Rackham, “Rethinking the Sales Force”

Which sales approach will you
choose for your customers?
 How are going to do it?

1. What type of sales approach do we need?

2. Which channels should we use?

 What type of sales approach do we need?

CUSTOMER NEEDS LOW MEDIUM HIGH

Expert advise and hand holding

Training
Customisation to specifications
Integrated total solution
On site setup and installation
Self Service
Low prices
Fast Local Support
24 * 7 Support
 What type of sales channels do we need?

PERSONAL SELLING
Field Sales Value Added Retail/mass Call Centres Internet
Customer Needs Force Partners
Volume Resellers
and Distributors Merchants

Expert advise and hand holding √√√ √√√ √ √√ √√ √

Training √√√ √√√ √√ √ √ √

Customisation to specifications
√√√ √√√ √ √ √ √√
Integrated total solution √√ √√√ √√ √ √ √

On site setup and installation √√√ √√√ √√ √√ √ √

Self Service √ √ √ √√√ √√ √√√

Low prices √ √√ √√ √√ √√√ √√√

Fast Local Support √√ √√√ √√ √√ √ √

24 * 7 Support √ √√ √ √ √√√ √√√

 The Framework

SALES
MANAGEMENT

SALES FORCE DESIGN

SALES PEOPLE ACTIVITIES

PERFORMANCE LOYALTY
REWARD
PARTNER KEY OFFER CUSTOMER
NETWORK ACTIVITIES RELATIONSHIPS
20 MIN

CUSTOMER
SEGMENTS
KEY DISTRIBUTION
RESOURCES CHANNELS

COST STRUCTURE REVENUE STREAMS

 How should we manage our sales 3 What are the activities
5 part of our sales
people?
process?

1 What type of sales

targets do we need?

What are the roles and

What type of sales people do we 2
4 responsibilities of our sales
need?
people?
1. What is our strategy
map?

2. What type of objectives,

targets and measures
are we going to use for
our strategy?
 AWARENESS
Consists of activities that
enable the customer to
become aware of the
needs for your product or
services.
Applicable for:
- Short sales cycles (1 to 2 visits to close a sales)
- Consumer sales
- Product Based Sales
INTREST DESIRE ACTION
Consists of the activities Consists of the activities Consists of the activities
that will stimulate that are likely to that will get the customer
interest with the stimulate your customer to actually purchase your
customer for your to desire / want your product or service.
product or service. product or service.
 Prospecting Qualification Presenting Negotiating Closed Follow-up

Consists of Consists of Consists of showing Consists of agreeing Consists of all the Consists of all the
activities such as understanding the the customer how the terms of the final contractual activities the sales
generating, needs and problems the supplier’s purchase with the activities to close the force provides during
qualifying and of the customer and produces and customer. deal. the after sales of the
distributing new determining whether services will enable product.
leads. the sales person’s them to solve their
products and services problems and
can be of value to the needs.
customer.

Applicable for:

- Long and complex sales cycles

- Project Based Sales

- Business to Business sales

 EXPLORATION BASIC CO OPERATTION ALLIGNED INTEGRATED

Consists of activities that
enable the customer to
become aware of the
needs for your product or
services.
Consists of the activities Consists of the activities Consists of the activities Consists of the activities
that will stimulate that are likely to that will get the customer that will get the customer
interest with the stimulate your customer to actually purchase your to actually purchase your
customer for your to desire / want your product or service. product or service.
product or service. product or service.

Applicable for:

- Long and complex relationships

- Key Account based Sales

- Business to Business sales

1. What type of sales
people do we need?
RELATIONSHIP CONSULTANT
BUILDER
9
8
7
6
5
4
3
2
1 2 3 4 5 6 7 8 9

DISPLAY SALES CLOSER

PERSON
Personality: Personality: Personality: Personality:
High energy Team Leader Likable, fun Happy, outgoing
Manipulative Professional Hard working Service oriented
High Need to achieve Enjoys challenges Team Player Not an overachiever
Risk Takers Highly Educated Likes his autonomy Pleases the customer
Calculated Risks Avoids Risks Avoids Risks

Skills: Skills: Skills: Skills:

Prospecting Problem Solving Developing Service driven
Presenting Relationships

Motivation: Motivation: Motivation: Motivation:

Status Mastery Autonomy Recognition
Recognition Purpose Sense of Belonging
 Customer Needs

New Product Established System

Sales Person Profile New System Buyers Commodity Buyers
Buyers Buyers

85% 40% 25% 20%

50% 82% 46% 30%

15% 55% 89% 35%

10% 9% 18% 70%

Source: HR The Chally Group: « How to Match the Type of Salesperson to your customers? »
Thanks!