3Session SummaryThis session will help participants understand the ins and outs of selling into the K-12 Education market.The session will be oriented toward:New/emerging entrepreneurs in the early stages of their company’s developmentNew education sales executives looking to gain more knowledge of how to successfully sell to K-12 customers.
4Session Overview Introduction Overview of the landscape of K-12 Summary of sessionLearning objectivesOverview of the landscape of K-12Key initiatives in K-12Building a Sales StrategyAverage Deal SizeK-12 Sales CycleBuying SeasonsDecision-makersSales Models and Sales Team StructureDirect, Indirect/Channel, Independent Sales ModelsInside, Outside/Field, Hybrid Sales Team Structures
5Session Overview Sales Metrics Selling: The Details What are metricsMetrics by exampleSelling: The Details2 Keys to Successfully Sell into SchoolsIdentifying Your Decision-MakersROI for EducationArticulating Your Value PropositionFeature Selling vs. Solution SellingUsing FundingWhat to Look for When Hiring K-12 Sales TalentWhat are the key traits to look for in K-12 Sales TalentHow to uncover if your candidate has these traitsGroup Activity and Take Home ActivityWrap Up
6Learning ObjectivesBy the end of this session, participants will learn:What types of sales strategies, sales models, and sales team structures exist in the K-12 and what to consider when building your sales plan.How to build sales metrics to measure your performance.How to identify your K-12 decision-makers and articulate your value proposition in order to close sales.How to use funding to sell.What to look for when hiring Education sales talent.
7The Renaissance Network Focused on building sales, marketing, and leadership teams for Education and Technology companies over 17 years.We act as a trusted advisor for the US Education market to help our clients build an effective sales and hiring strategy to penetrate the market.
10Why is there an Education Market? In order to understand how to sell into the K-12 Education market, we must first understand why the market exists.How do I know I am receiving the best education?How do I know my children are being adequately educated?How do I know if my teachers are teaching in the best way for their students?To successfully sell into the education space, we have to ensure that these questions are being answered!Parents, students, teachers, principals– all want to know that every student has been given the tools necessary to succeed inside and outside of the classroom.
11US K-12 Students and Teachers 50.1M public students5.2M private school students55.3M elementary and secondary studentsTaught by 3.3M elementary and secondary teachersBased on 2013 numbers in MDR and Huffington Education
12US Education Market Quick Facts FederalStateLocal$591 Billion in K-12 SpendingFederal funding is the smallest piece; Local/State is the most; increase over years prior. Based on 2013 #s . MDR reports slightly higher than this.This does not include spending by parents on purchases for their kids (apps, educational games, school supplies, etc.)
13Key Growth Directed Sub-Markets ESL/ELLSTEMEarly ChildhoodCareer ReadinessCollege ReadinessAssessmentSpecial EducationPDWe’re seeing major growth in these areas for our clients. Partly due to heightened funding and key core initiatives.
14Technology, Technology, Technology Technology is at the core of many school initiatives including:HardwareSoftwareOnline teacher trainingWireless infrastructure75% of districts report stable or increasing technology budgets for the school yearReports from MDR
15Common CoreWith 46 states + DC adopting CCSS, a majority of districts will drive towards purchasing new materials or products to help facilitate shifts to a standards-based education model.68% of districts plan to purchase new products for the school year, a product of this shift.
17Your Sales Strategy is Fundamental to Your Company’s Success Having the right sales strategy in place is fundamental to:Revenue growthImpacting student achievement
18Your Sales Strategy is Fundamental to Your Company’s Success It’s a disruptive, relatively new market with a ton of competition…Your sales team must be able:Capture market share from the competitionBring on net new customers and retain business
19Average K-12 Deal SizeThe average Deal Size, or average dollar amount, in K-12 can range from a few hundred dollars to millions of dollars.Largely dependent on price point and pricing structure.
20How Your Deal Size Impacts Your Sale The amount of $ your product typically will impact:Who to sell toWhen to sellComplete sales processSome States trigger an RFP for product needs which will result in a sale over a specific $ amountTypically proposals must be in during the Spring
21K-12 Sales CycleThe Sales Cycle is largely dependent upon the deal size of your products and the products themselves.The larger and more complex the deal, the longer the sales cycle.Range: 2 weeks to 2 years (for major initiatives)Typical: 6-9 months
22Typical Buying Seasons in K-12 The Buying Season is largely dependent upon the school calendar year and your product.Needs Assessment: Spring through mid-FallPurchasing Decisions: Fall through SpringFor more complex sales, you typically start 9+ months outSales activities must be completed all year
23Key Decision-makers in K-12 FederalStateDistrictSchoolClassroomFederal Purchase for all (or some) States, Districts, and Schools by Federal Department of EducationState Purchase for all Districts and Schools by State Department of EducationDistrict-wide (a conglomerate of 2 or more schools within a region) by a superintendent, chief technology officer, chief curriculum officer, school boardIndividual School purchase by a principal, head of curriculum, PD coachIndividual classroom purchase by a teacher
24Piloting Your Product: What Start-ups Should Know Launch test cases with pilot programs at least a year out of driving salesCollect “success data” to use as testimonial evidence when officially selling your productFree pilots can be a double-edged sword:Many districts won’t want to buy what they had before for free
26Sales Models and Structure When considering building a sales team, your:deal size,sales cycle,and your decision makersall factor into the sales model and the sales team structure you will need to be successful.
27Sales Models: Direct Sales Employees of your companyCompensation: base salary + commissionsBase salary: roughly 60% of total earningsCommissions: 40% of total earnings, often based on quota attainmentIdeally uncapped to reward for over-performancePercentages paid on revenue can vary
28Sales Models: Indirect or Channel Sales Selling through a dealer/reseller partnershipDealer will have a team of sales executivesYou may need a channel manager who is an employee of your organization to manage the partnershipMany products will be represented by the dealerCompensation (paid by dealer):Base salary: 70-75% of total earningsCommissions: typically flat $ amounts based on concrete goals
29Sales Models: Independent Sales Representatives Individuals who represent multiple organizations and products without being employed by any particular organizationCompensation:Base Salary: noneCommissions: 100% of a rep’s income
30Comparing Sales Models DirectCan closely monitor activity levelsCan closely control over how products are representedCan quickly address challenges and underperformanceCosts moreChannelLarger sales footprintMay have costs of channel managerNo guarantee of successChannel may sell competing productsIndependentNo upfront costsNeed strong training and internal support for successMay sell competing productsWe’re seeing a shift away from independent and channel models to direct teamsEven though there is no cost for independent and channel model, lost time is lost revenue and market share.Today’s market is too competitive to wait for sales.* You can build a hybrid sales model.
31Sales Team Structure: Inside Sales Teams One or more individuals will sell your product(s) over the phone, , video conference, and webinar from your headquarters.Typically most effective for selling smaller price-point deals which are less complex and do not require consultation face-to-face.
32Sales Team Structure: Outside or Field Sales Teams One or more individuals who travel to their customers to sell.Typically, field sales representatives will work out of a home office and live within their assigned territory.
33Sales Team Structure: Hybrid Inside and Outside Team Inside team: responsible for smaller deals, lead generation of large deals to the field team, and account management.Field team: works closely with an inside sales representative on larger, more complex deals which require face-to-face consultation
35Sales MetricsA collection of individual and organizational performance indicators which allow you to break down what (and how many) sales activities are necessary to meet your yearly revenue goals.
36Creating Your Own Sales Metrics Based on your annual financial goal, you can determine what activities (phone calls, meetings, proposals) must be performed to meet your goals.
37Sales Metrics: Example STEP 1What is your annual financial goal?$700,000Step 2Divide by 4 to get your quarterly goal$175,000Divide by 12 go get your monthly goal$STEP 3What is your AVERAGE DEAL SIZE?$4,000STEP 4Determine the number of OPPORTUNITIES you need to CLOSE to achieve your monthly goals.15STEP 5What is your CLOSING RATIO as a percent of PROPOSALS SUBMITTED?35%STEP 6How many PROPOSALS do you need to submit to close one deal?3STEP 7How many meetings does it take to generate one proposal?2How many meetings does it take in order to achieve your ideal number of PROPOSALS?83STEP 8How many PHONE CALLS does it take to generate one MEETINGS?10How many PHONE CALLS do you need to have in order to achieve your ideal number of MEETINGS?833
39A Long and Arduous Process Selling into schools can be a long and frustrating process.Why?Because you are asking teachers, administrators, and students to change habits and alter their past method of performance– this can cause great stress on an organizationTo have your product purchased and implemented, you need buy in from many decision-makers.
402 Keys to Successfully Sell into Schools Your company’s ability to build and leverage customer relationships.Your company’s ability to articulate your value proposition in terms of student, teacher, or school success.
41Building Relationships: Identifying Your Decision-maker To build and leverage the right relationships you must identify your key decision-makers:These will be both the person who will sign your contract and the end users of your products.Therefore you must sell both from the top down and the bottom up.
42Every Cause Needs a Champion Usually your product’s champion will be a respected teacher/administrator who will motivate others to buy into your product’s useOnce you sell, use your product’s champion (either a teacher or a higher-level official), for testimonial evidence to help you sell.
43THERE IS NO “ROI” in K-12ROI is vastly different in the Education space in comparison to other industries.In fact, using ROI terminology may turn off your K-12 Customer.
44What is the K-12 Equivalent of ROI? K-12 decision-makers are reluctant to invest in products unless:They believe the product will have a clear, positive impact on the classroomThey believe the product will increase student achievementThey believe the product will provide relief to teachers which will positively impact student performance
45Articulating Your Value Proposition Your ability to articulate your value proposition (why your customer should chose your product) in terms of student, teacher, or school success is fundamental to close a sale.
46Feature Selling vs. Solution Selling Don’t sell technology and its functionsSchools don’t exist for the purpose of using technologyDon’t sell the table of contents of your textbookInstead, point to clear positive solutions teaching your content can provide
47Solution Selling: A How To Know the landscape of your customer’s school very specificallyWhat is its mission?What are its key initiatives?What are the biggest challenges?Ask your customer consultative questions to uncover your customer’s struggles before you mention your product.Then align your product to a concrete solution which you can offer your customer based on the specific challenges or initiatives in the school.Point to the positive outcomes that your product provides.
48If price point is an objection, point to funding! There is a growing trend that funding (both at federal and state level) is used for specific initiatives in school.Know what funding your customer has, what it must be used for, and align your product to the funding.
50What to look for when you are hiring for K-12 Sales Talent Experience selling into K-12 (rather than HiEd or other markets)Experience selling similar deal sizes to yoursExperience selling within a similar sales cycle to yoursKey contacts and decision makers which are the same as yoursKnowledge of funding opportunitiesKnowledge of key initiatives within schools in his/her territoryA solution selling approach vs. feature sales approach
51Additional Hiring Tips If you have an open or underperforming territory, don’t wait to fix it!Lost sales and lost pipeline will set you back.When you start to hire, move quickly and efficiently- the shorter your timeline to hire the shorter your timeline to sales impact.Don’t always hire from within your own networkThe top candidate is the one selling to your customers for someone else.Have a structured hiring and interview processUse behavioral-based interview questions specific to K-12Use a customized sales assessment
53Value Proposition Mad Libs For (target K-12 customer), who has (customer need) , (product name) is a (market category) that (one key benefit) that can cause (student/administrator/educator outcome).Example: For Literacy Coach, who has a high number of ELL students who are struggling to read at grade-level, TRN’s Literacy product , is a literacy software and assessment tool, that offers the ability to teachers to monitor student progress on interactive activities that can cause increased reading proficiency for all struggling students.For IT DIRECTOR who has a large number of teachers with struggling learners , TRN’s Literacy product , is a literacy software and assessment tool, that increased data monitoring across all classrooms that can cause increased student achievement.
54Articulating Your Value Proposition Form groups of four to six (4-6).Within your group, nominate a sales person to target and pitch his/her value proposition mad lib to a series of key customers.The other members of the group will choose from the following roles:TeacherAdministrator,Chief Technology officerCurriculum DirectorPrincipal/SuperintendentThe sales person must ask appropriate questions to their group members to uncover what are the key issues for each decision-maker.The sales person must then pitch their product as it relates to the decision maker they are targeting customizing their mad lib.As a group, develop the core objections for the product being pitched; work with the sales person to rebut objections.
55Wrapping UpBuilding the right sales strategy is fundamental to your success; choose the sales model and team structure that will align to your growth goals.Sales Metrics: build them specifically so they align to your revenue goalsTarget the appropriate decision-maker for your product and use product champions to help you get through the door.Align key funding or other initiatives to successfully close sales.Sell solutions not products: schools don’t exist for your product; they exist to provide strong education and your products must be a solution to the core challenges which impact education.When building your sales team, make sure you uncover the right type of sales talent for your needs.
56Q & AContact Information:Lisa Sacchetti, CEOThe Renaissance Network, Inc.Sales Team Expansion Specialists for Education and Technology