Presentation on theme: "Presented by Jurek Sikorski Entrepreneur in Residence, LBS Formerly Marketing & Sales Director Thursday, 30 January 2014 Build a Successful Sales Strategy."— Presentation transcript:
Presented by Jurek Sikorski Entrepreneur in Residence, LBS Formerly Marketing & Sales Director Thursday, 30 January 2014 Build a Successful Sales Strategy
What is (and why have) a sales strategy? Key elements of a sales strategy The Selling Process ‘Sales Value Proposition’ How to build a successful sales strategy Ask the Panel Coming up...
A plan to achieve the sales goal of a business Describes how a business will win, retain and develop customers... A blueprint for success Build a successful sales strategy What is a sales strategy?...
What does a sales strategy do?… Build a successful sales strategy ‘Defines the selling activities and allocates resources to deliver the sales goal of the business …’
Why have a sales strategy? Build a successful sales strategy ‘Without a sales strategy the company’s customer facing people will struggle to obtain the focus needed for successful selling’... ‘every organisation needs a sales strategy’ ‘A sales strategy aligns the company’s sales goal with the approach to achieve that goal’
Key elements of a sales strategy?… Build a successful sales strategy 1. Goal and Objectives What is the goal of your business? e.g. ‘We want to become the UK’s leading supplier of solar powered generators by sales within 3 years’ What are the objectives that when achieved will deliver the goal? 2. Target Market (Customer) Who is your target customer group? What /how/why… do they buy? Who is the person you are selling to? What are their needs 3. Products/Services What are you selling to the target market? Why would the customer buy? What is your sales value proposition? 4. Competitive Advantages Who are your competitors? What are their strengths/weaknesses?... What are your competitive advantages ? How are you better, cheaper, faster?
Key elements of a sales strategy?… Build a successful sales strategy 7. Resources, Skills and Capabilities What resources (e.g. sales time, money), skills and capabilities (e.g. sales planning, key account management ) are required to sell How will you develop and improve skills e.g. selling skills training… 8. Sales Management How is the sales target set, sales performance reviewed, coaching provided? What performance incentives are provided? e.g. bonus scheme 5. Route to market How will you reach the customer? e.g. direct, channel partners, internet What direct route will you adopt? e.g. sales team, telesales, trade shows 6. Selling Process What are your selling activities? e.g. prospecting, approaching and presenting How will you maximise success during the ‘critical hour’ in front of customer?
A sales strategy addresses common business challenges? Build a successful sales strategy Stagnant or declining sales revenues Merger of sales forces after an acquisition New product introductions Launch of a new competitor Expansion to new markets
Key PartnersKey Activities Key Resources Customer Relationships Channels Customer Segments Cost StructureRevenue Streams Off grid solar/hybrid power generation industry New customers Construction and Plant Hire firms – need to service client projects Advocates Trialists Sales team DFID, Aid Agencies Range of peak power outputs Reliable power delivery Silent operation Zero/reduced CO2 pollution Portable Designing, manufacturing and supplying generators Marketing and selling Recruitment and training of resellers Working capital Technical/commercial staff – develop and market International resellers Plant and hire firms Battery and power inverter suppliers Electronic circuits suppliers Simple installation/commissioning Investors Facility landlord Cost of sales (<50%) Salaries (£zk pa) Facility (£xk pa) Price set at £x FOB Revenue £1.8m rising to over £25m by year 5 Gross Margin: min. 50% Knowledge and expertise Range of purchase options Marketing (£yk pa) Resellers Selling is a key activity of your business model... Business Model Generation: Alexander Osterwalder & YvesPigneur 2010 International Aid agencies – Need robust power generation solutions at a low cost Event and Broadcast organisers – need a source of reliable power that is non polluting at an affordable cost Value Proposition
What is selling about?… Selling is helping the customer to buy Helping the customer to make up his mind based upon the satisfaction of his/her needs Selling is about going for a ‘win-win’ for you and the customer Selling is not so much about shifting product as making... customers Successful selling is about asking questions and listening to the answers…
Customer orientation is a vital concept in selling… Focus on the customer NOT the company!... Know that customers buy to satisfy needs... Recognise needs are fulfilled by benefits derived from features... Deliver desired outcomes
How customer orientation works! NeedBenefitFeature Reliable off grid power generation that helps its customers manage/ eliminate their challenges and deliver their projects on time and within budget and… that yields a strong return on investment Provides reliable, silent and emission free power generation solutions that eliminate challenges faced by users helping them reduce costs and for Speedy Hire improve profits Firefly designs and manufactures off-grid, portable and permanent solar-powered generators for a wide range of applications from festivals to construction site offices A UK based manufacturer of solar powered generators An equipment rental and support services supplier Customer orientation drives sales
Understand the ‘selling process’ A communication and learning experience Salesperson learns the needs of the customer and the customer learns whether the product will meet needs Characterised by nine activities that are directed at winning customers Successful management of the selling process requires good analytical, communication, decision making, and organisational skills
Engaging the selling process… 1. Prospecting: generating leads2. Classifying leads: identifying leads with largest revenue potential 3. Developing a sales plan: setting objective and defining how to achieve 4. Making the approach: reaching out and establishing contact 5. Presenting (‘critical hour’): pitching your sales value proposition 6. Trial closing: Early attempt to close sale 7. Overcoming objections: Removing barriers to making a sale8. Closing: Asking for the order 9. Following up: Delivering product and supporting customer
Prospecting About identifying potential new customers and generating sales leads... Essential in a dynamic and changing market Must allocate time to generating quality leads
Ten ways of generating sales leads Ways of generating leads 1. Seek referrals from present satisfied users e.g. Balfour Beatty, Coca Cola Enterprises 2. Ask channel partners e.g. Speedy Hire 3. Attend conferences and exhibitions e.g. Renewable UK Annual Conference 4. Engage web marketing and social media 5. Register and advertise with trade associations e.g. Construction Plant Hire Association
Ten ways of generating sales leads Ways of generating leads 6.Publicise your business via news media e.g. Forbes, Guardian, Telegraph, Evening Standard, City AM; retain a PR firm - check out www.prweek.comwww.prweek.com 7. Post offers of information/product trial for limited period on your website 8. Personal visits/cold calls to potential customers e.g. Brandon, HSS 9. Partner with a plant hire firm to stage promotion events 10. Engage Telemarketing e.g. The Telemarketing Company Be imaginative in finding ways to generate leads Use own networks
Simple ways to generate leads on LinkedIn… Join (or start) a group Find top groups where suspects/customers spend time e.g. ERP Post discussion and participate in Q&A and position yourself as an expert Seek replies and elicit contact details Post links to content of value to potential customers Become a source of business information and attract connections Add value to each conversation Build and manage your LinkedIn company page to be seen… Write your company description to include keyword rich text that resonates with products and contributes to network search visibility Refresh page and add regular (daily/weekly) postings (of testimonials, news and features) to get into network updates and grow brand awareness Follow pages of (prospective) customers e.g. Ashtead Remember posting is important but engaging is vital Comment around the most relevant conversations; reply to CEO blogs Offer ways to help customers with their business
Presenting A crucial step in the selling process Beginning of a two-way communication between the salesperson and the customer… This is the pitch to capture attention, develop interest of the customer, raise desire and evoke action The selling model A – Attention I – Interest D – Desire A – Action Aiming to win customer acceptance of the sales value proposition Selling benefits is what moves the customer to buy… The sales value proposition must feature prominently in the sales strategy
Applying the AIDA selling model State of customer engagement What you might say… A – Attention‘Winning more customers would grow your business…’ [address the pain…need] I – Interest‘How would it be if Firefly enabled you to win more customers…’ [likely reply…’tell me’] D – Desire‘Let me show you how Firefly can do this…’ [present sales value proposition] A – Action‘Let me arrange a demonstration’ or ‘hire a unit for 6months and see the results…’ [trial close]
Sales Value Proposition A benefits statement Differentiates product/service from competition Dramatically improves marketability of product/service A powerful branding tool that supports the sales strategy through marketing communications e.g. advertisements, website, social media Forges a lasting reputation that allows realisation of sales and raises customer awareness
A winning Sales Value Proposition ‘Cygnus delivers reliable off grid power, reduces pollution and saves money for the user whilst improving revenue and profitability for the plant hire firm more than any other generator...’
How to build a successful sales strategy? Step 1 Engage the customer facing team Step 2 Describe the current situation Step 3 Create the ‘Sales Strategy Canvas’ Step 4 Prepare sales strategy document Step 5 Launch/ review progress and adapt
Sales Strategy Canvas A UK based manufacturer of solar powered generators Products/Services - Cygnus range - Sale/rent/lease - Sales Value Proposition Target Market (Customer) - Construction, Events and International - CEO/FD/PM - Seeking an economic return Target Market (Customer) - Construction, Events and International - CEO/FD/PM - Seeking an economic return Competitive Advantages - Easier installation - Remote monitoring - Lower maintenance Route - CEO - Sales team (5) - Distributors Sales Goal - Year: £Xm - Q: £ym/£zm - Month by person Selling - F2F (‘critical hour’) - Exhibitions - LinkedIn Resources, skills - Time and money - Marketing collateral - Skills training Sales Management - Meet Monday (9-10.30am) - Weekly reports submitted - ‘On the job’ coaching
Meet the panel Nitzan Yudan Co–Founder and CEO FlatClub Chris Floyd Co-Founder and CEO Cranworth Medical Jonathan Smith Co-Founder and CEO LendMeYourLiteracy
What is your sales strategy? What was/is your biggest challenge about selling? What surprised you most? What has been your learning experience? What are your top three tips for someone developing a sales strategy Asked the panel to address five questions...
What would you suggest Aoife Mhuiri, CEO of Sports Clinic Plus might do to sell its services?
Where to go to find out more about sales strategy – further reading 1.‘How to Win Customers and Keep Them for Life: Revised and Updated for the Digital Age’ by Michael Le Boeuf (August 2000) 2.‘High Performance Sales Strategies: Powerful Ways to Win New Business’ by Russell Ward (Oct 2013) 3.Getting to Yes: Negotiating an agreement without giving in by Roger Fisher and William Ury (Jun 2012)