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Office Depot Sales Process - TDM

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0 Office Depot Sales Process – Global/Major/Public
Customer Buying Process Define problems and opportunities Determine needs / requirements Select solution, evaluate risk, & finalize contracts Resolve issues & implement Evaluate success Sales Stages Plan and Engage Diagnose Propose and Close Implement Fulfill New Business Conduct opportunity planning Conduct opportunity assessment Retain and Grow Monitor client satisfaction Research buying trends Identify new opportunities across SKU’s and categories Create interest Gain initial meeting Get pain admitted Diagnose admitted pain and create or reengineer vision of Sponsor Negotiate access to power Confirm dialogue and agree upon next steps Diagnose admitted pain and create or reengineer vision of Power Sponsor Determine evaluation criteria and propose next steps Confirm dialogue and agree upon plan of next steps Execute Evaluation Plan steps Engage appropriate overlay Present solution Refine value proposition Agree upon transition plan Identify success criteria Create RFP to reflect Office Depot differentiators Engage bid team Respond to RFP or bid (if appropriate) Finalize T’s & C’s Engage implementation manager Execute implementation plan Engage IT Integration manager Test order placement and billing Measure success criteria Resolve customer problems Manage Office Depot team Implement Competitive Strategies Conduct business review Verifiable Outcome Opportunity created in Sales Online Gain agreement to Evaluation Plan Signed contract First orders placed Sales Tools and Resources Dun & Bradstreet lists Hoovers Opportunity Assessment Pain Chain® Key Players List Contact Strategy Business Development Prompter Reference Story PPS Scorecard PPS Funnel Calculator PSS® Pre-Call Planner 9-Block Vision Processing Model® Pain Sheet® Sponsor Power Sponsor Evaluation Plan Transition plan Success Criteria Negotiating Worksheet Get-Give List Resolving Customer Concerns (PSS ® Skill Guide Card) Implementation Plan Reference Stories Yield Percentages 25% 75% 100%

1 Office Depot Sales Process - TDM
Customer Buying Process Define problems and opportunities Determine needs / requirements Select solutions & evaluate risk Resolve issues Evaluate success Sales Activities Plan and Engage Diagnose Propose and Close Implement Fulfill New Business Conduct research on prospective accounts Identify contacts Retain and Grow Monitor client satisfaction Research buying trends Identify new opportunities across SKU’s and categories Create interest Gain initial meeting Get pain admitted Diagnose admitted pain and create or reengineer a buying vision Agree upon next steps Engage appropriate overlay Present solution Develop value and refine value proposition Identify success criteria Respond to RFP or bid (if appropriate) Gain agreement to buy Set-up account Upload prices Show and train on website Measure success criteria Resolve customer problems Conduct business review Verifiable Outcome Opportunity created in Sales Online Gain agreement with Power Sponsor to next steps Gain verbal agreement to buy First order is placed 7-7-7 goals accomplished Sales Tools and Resources Dun & Bradstreet lists Hoovers Qualification Criteria Key Players List Contact Strategy Business Development Prompter Reference Story PPS Scorecard PPS Funnel Calculator PSS® Pre-Call Planner Vision Processing Next steps communication Bid Builder Success Criteria Negotiating Worksheet Get-Give List Resolving Customer Concerns (PSS ® Skill Guide Card) Implementation Plan Reference Stories Yield Percentages 25% 75% 100%

2 Shifting Buyer Concerns How Organizations Plan, Evaluate and Buy
Buying Phases Phase 0: Conduct Planning Phase I: Determine Needs Phase II: Evaluate Alternatives Phase III: Evaluate Risk Level of Concern Strategy Projects Issues Priorities Budgets Risk Price Needs Solution Remember the 3 buying phases that customers go through? The first phase starts when the customer decides to buy something to address a business problem, to avoid one in the future, or capitalize on a future opportunity. But, in reality all businesses go through a phase 0 in which they: Set their strategy Identify issues that may be roadblocks to the strategy Identify projects to implement the strategy Establish tactics to implement the strategy Create a budget to fund the priority projects. Often the Phase 0 planning phase is done annually as companies budget for the next year. If we are having conversations with customers that are about strategies before they decide to buy anything we can be consultants to them and guide their strategies. But these conversations cannot be sales campaigns if we are to have the kind of relationship we want to have with the executive. If we are perceived as trying to sell at this point, we’ll never connect with the executive. Why? Because they are not buying. Their focus is on their strategy: how to move their company in the direction they want to move it. Of course, they realize you are in the business of selling. But true consultants focus on the customer first before they try to sell anything. So we must stay away from product-talk and even solution-talk. That comes later. And it may not be with this executive. It will probably be with someone the executive connects us with, but later. Transition: How does this idea of getting in at Phase 0 relate to the idea of latent opportunities? Remember the concept of a “latent” opportunity? That is the situation when you get to the customer before they know what they want to buy, or even before they have decided to buy anything. A latent opportunity– one that you create– is started any time before the customer has determined what they want to buy. At the end of Phase I they know what they want to buy, their needs. So latent opportunities are started in Phase 0 or I. An active opportunity– one when the customer already knows what they want to buy before you get involved– starts in Phase II. Our goal in selling to executives is to participate in the customer executive’s phase 0 with the objective to influence the strategy and plans towards needing what we are selling, and to become column A when the opportunity becomes active. Decision to solve a priority problem Time © Solution Selling, Inc. • 2007

3 Negotiating Throughout the Sales Process Maintaining Your Control
Quid Pro Quo: Latin, “something for something” Set the tone for all things to be negotiated throughout the sales cycle Use “quid pro quo” to: Qualify the buyer and the opportunity Move opportunities forward Position your personal “power” Minimize the cost of sale Office Depot Sales Process Plan and Engage Diagnose Propose And Close Implement Fulfill Quid pro quo links to the idea of mutual and mutuality discussed in PSS Quid Pro Quo and Negotiating © Solution Selling, Inc. • 2007

4 Business Development Prompter: Examples
Business Development Prompter: New Opportunity This is __________ (salesperson name) with __________ (your company). You and I haven’t spoken before, but we have been working with __________ (specific industry) organizations for the last ___ (#) years. A common trend we are hearing lately from other __________ (job title) is their frustration (difficulty) with _______________ (job title’s likely critical issue / pain) [resulting from ______ (articulate common reasons)]. We have been able to help our customers address this issue. Would you like to know how? Business Development Prompter: Menu Approach (See Business Development ) This is __________ (salesperson name) with __________ (your company). You and I haven’t spoken before, but we have been working with __________ (specific industry) organizations for the last ___ (#) years. The top three issues (concerns) we are hearing (lately) from other __________ (job title) are: (1) __________, (2) __________ and (3) __________ (job title’s top three likely critical issue / pain). [We’ve helped companies like: (1) __________, (2) __________ and (3) __________ (three reference-able organizations) address some of these issues.] Would you like to know how? Business Development Prompter: Referral Approach This is __________ (salesperson name) with __________ (your company). You and I haven’t spoken before, but __________, __________ at __________ (reference person’s name, title and organization) suggested that I give you a call. We were able to help her/him address his/her difficulty with __________ (reference person’s critical issue / pain) [resulting from ______ (articulate common reasons)]. Would you like to know how? Business Development Prompter: Multiple Contact Approach This is __________ (salesperson name) with __________ (your company). You might recall my last contact via [phone / / seminar / webinar / tradeshow] where we described how we have been working with __________ (specific industry) organizations for the last ___ (#) years. We cited a common trend with __________ (job title) is their frustration (difficulty) with _______________ (job title’s likely critical issue / pain) [resulting from ______ (articulate common reasons)]. We have been able to help our customers address this issue. Would you like to know how? Purpose: To discuss key components of and show examples of effective business development prompters Key Instructor Notes: The prompters, all different examples, have common elements: Potential critical business issue(s) that the target prospect should be able to relate to Describe a similar industry as the target prospect Describe how “we” helped similar job titles as the target prospect Avoid discussing product Don’t ask for a meeting but rather ask if the prospect is interested They are brief… i.e. can be read in about 20 seconds The messages can be left on voice mail with the addition that the caller will make a return call. The seller may also chose to leave a number to be reached at Transition: “These messages can also be used in letter and form...” © Solution Selling, Inc. • 2007

5 Reference Story: Example
Situation: Office Manager in a large organization Critical Business Issue: Increasing local operational costs Reason(s): High cost of carrying and shipping of various cleaning and break room supplies Capability(s): (when, who, what) When ordering replenishment of cleaning and break room supplies the office manager could order only what was needed at the best price and have it delivered at the desired time without shipping costs. We provided… …this capability Result: They were able to reduce operational costs by over $4,000. In PSS reference stories are called “Proof Sources © Solution Selling, Inc. • 2007

6 Initial Value Proposition: Example for VP Facilities
“We believe that Alliance Healthcare System should be able to reduce overall expenses by approximately $126, ,000 through the ability to streamline the ordering and delivery process for cleaning and break room supplies.” Value Proposition Assumptions: Alliance locations have approximately WCW in each location Alliance has 66 locations Customers of this size typically spend $257 per WCW Average savings is $64 per WCW © Solution Selling, Inc. • 2007

7 Opportunity Assessment (Worksheet) “Detailed Assessment”: Example
Assessment date: _______ Answer key: (Y) = Yes, (N) = No or (?) = Unsure Us competition  = “Quick 5” assessment questions PAIN – “Is the customer likely to act?” 1 Has high priority pain or potential pain been identified? 2 Have we validated the pain with the owner(s)? 3 Do we understand how others are impacted by the pain? 4 Is there budget in place? 5 Is there a timeframe to address the pain? POWER – “Are we aligned with the right people to win?” 6 Do we understand the roles of the key players for this opportunity? 7 Do we understand who will influence the decision and how? 8 Are we connected to the people in power? 9 Do we have the support of the key players? 10 Are we connected to the people with access to funds? VISION – “Does the customer prefer our offering?” 11 Did we help establish the initial requirements? 12 Does our offering fit their needs / requirements? 13 Have we created or reengineered a differentiated vision for the key players? 14 Do the key players support our solution approach? VALUE – “Does our offering provide mutual value?” 15 Do we understand the benefit to each key player / corporate? 16 Have the key players quantified and articulated the benefits of our offering to us? 17 Has a (corporate) value analysis been agreed upon? 18 Does the value analysis warrant access to funds? 19 Is there sufficient value to us? Profitable? Strategic? CONTROL – “Can we exert control upon the buying process?” 20 Do we understand the decision making process and criteria for the key players? 21 Do we understand the proof and satisfaction requirements for the key players? 22 Do we understand the customer’s buying practices, policies and procedures? 23 Has the customer agreed to an evaluation process with us? 24 Can we control the evaluation process? 25 Can we successfully manage our risk? Purpose: To provide an example of a job aid that helps analyze whether to engage in an opportunity or not. Key Instructor Notes: Some things to recognize about the Opportunity Assessment Worksheet: The ratings (yes, no and unsure) allow for the salesperson to determine their own status for each question as well as allows for a comparison against competition. (Note: Additional columns for competitive analysis could be added.) The “Quick 5” assessment questions (found in the darkened rows) of the Opportunity Assessment Worksheet also provide a location for the salesperson to rate their status as well as that of possible competitors. This is where the “quick assessment” described on the prior page can come into play The space provided for “assessment date” helps salespeople and managers determine the age of information gathered. It especially becomes useful when a salesperson performs later assessments to determine their progress or lack thereof The Opportunity Assessment Worksheet should not be viewed as a scorecard (i.e., more “yes” ratings for one vendor does not equate to a win). It helps the salesperson objectively determine what they know, don’t know and need to know It is reasonable to expect several ratings of “unsure” as it relates to answering some questions early in the sell cycle where there is more information yet to be uncovered Most of the 25 questions have also been written in a manner that all references to your organization via the words “our” or “we” which are in italics – indicating that during any competitive assessment, those words should be replaced by “they” or “their” to answer each question from the perspective of the competition Transition: “Conducting an opportunity assessment begins to direct the seller in determining how they are going to compete in the opportunity...” © Solution Selling, Inc. • 2007

8 Office Depot Verifiable Outcomes
Sales Stage Plan and Engage Diagnose Propose and Close Implement Fulfill Verifiable Outcomes Opportunity Created in Sales Online Gain agreement to Evaluation Plan Signed Contract First orders placed PAIN. Do you know the client’s business issues? POWER. Are you working with the decision-maker? PLAN. What are the steps to get a decision and when? POWER SPONSOR EVALUATION PLAN Yield probabilities: these are the percentages that will be put in Oracle as a way to help track opportunity tracking. These are a starting point and may change over time. More important for sales management to understand their pipeline. © Solution Selling, Inc. • 2007

9 APPENDIX

10 Draft Evaluation Plan: Example Attachment to Power Sponsor e-mail
Event Week Responsible Go/No Go Interview with procurement and accounting February 14 OD/Alliance Interview IT about back-end systems Interviews with end-users at other locations Summarize findings to management team * Provide CBS samples / product evaluation and conduct delivery match-ups OD Conduct demonstration of ordering platform (proof of capabilities) February 21 Gain approval of implementation plan Alliance Discuss pricing and refined value proposition Agree to success criteria Create market evaluation (Bid) February 28 Send agreements to legal Analyze competitive evaluations March 7 Present final proposal & gain agreement to move forward March 14 Gain legal approval March 21 Begin implementation March 28 Measure success criteria Ongoing * Mutual decision to proceed © Solution Selling, Inc. • 2007

11 Success Criteria: Example Results After 6 Months
Baseline Q1 Q2 Q3 Q4 Shipping costs for cleaning and break room supplies/year 1,3 $85K / year Minimum order fees 2 $9k / year Number of invoices processed 2 250 / month 225 200 Inventory value (1 month extra per location) 2 $68K / month $50K / month $40K / month CBS spend per month 1,3 $70K / month $60K / month VP Facilities Office Manager Procurement © Solution Selling, Inc. • 2007

12 Potential Power Sponsor e-mail: Example
Qualification Components: 1 Pain 2 Reasons for the Pain 3 Buying Vision 4 Organizational Impact 5 Agreement to Explore 6 Evaluation Plan Set-up Jim (VP Facilities), Thank you for meeting with Steve Jones and me earlier today. I believe it was time well spent for both Alliance and Office Depot. We discussed the following: (1) Your primary critical issue is increasing facilities costs across all locations. You said costs have increased 15%. (2) Reasons for increasing costs: Increasing operational costs at remote locations Increasing procurement costs (3) Capabilities you said you needed: when cleaning and break room supplies are ordered the various location end users could use the same website to check inventory, order only the items and quantity they needed, and receive it by the next day without shipping costs when cleaning and break room supplies are ordered the various location end users had one specific, standardized list of approved corporate items, competitively priced and available for next day delivery (4) You said if you had these capabilities, your office managers at remote locations could lower their costs, and Donna Moore , your VP Finance, could be on track to make her budgets for the year. Our next steps (5) When I told you I was confident Office Depot could help you, you agreed to commit the resources needed to evaluate our ability to do so. (6) Based on my knowledge to date, I am attaching a suggested evaluation plan for your further exploration of our company. Look it over with Steve, and I will call you on February 7, to get your thoughts. Sincerely, Bill Hart Attachment: Draft Evaluation Plan Purpose: To provide an example of the follow up correspondence that should be sent to the Power Sponsor upon completion of the vision processing conversation. Key Instructor Notes: This letter / is similar to the Sponsor Letter but with a few exceptions You will notice that the Power Sponsor Letter also recalls the (1) pain, (2) reasons for pain, (3) his or her buying vision and the component, agreement to explore. Components 4 and 6 are what make it different from the Sponsor Letter Organizational Impact attempts to expand the scope of the problem (as well as list potential beneficiaries) by tying in others impacted Evaluation Plan set-up helps describe the attached plan that suggests how the buyer and seller’s organizations might process through the rest of the sell cycle Notes: Note: Some cultures will shy away from the use of documenting conversations, be aware of this especially in some Asian countries Key Comment:  Customization  – This Power Sponsor Letter should be customized for client-specific examples Transition: “You’ll find the attached (draft) Evaluation Plan on the next page…” © Solution Selling, Inc. • 2007

13 Reference Story Format
Situation: A customer job title and vertical industry Critical Business Issue: The pain of the title above (Anxiety words and phrases are very powerful here). Reason(s): One of the reasons for the critical issue biased to your product or service Capability(s): (when, who, what) In the words of your customer, the business event, the player(s) and specific capabilities needed to address the critical issue - “He/she/they told us when… who… what they needed” We provided… If the “solution” is described properly above, all we have to do here is say that we (our product / service / company) provided them those capabilities Result: Specific measurement is best, $ or % Purpose: To break down the components of the Reference Story Key Instructor Notes: You should notice that the capabilities described address the reason or reasons for the pain The results, the compelling portion of the story, should address (or tie back) the critical issue / pain If the solution is properly described in the capabilities statement than the seller only has to allude to the fact that “they provided those capabilities”. Now is not the time to discuss the specific offering. Content Highlights: Reference Stories, if designed and shared effectively, can quickly establish credibility in the mind of the prospect, stimulate interest with the prospect in working with that salesperson further and begin the discussion of critical business issues that the prospect is faced with within their organization They should be written for a specific person (key player) citing a specific pain. One successful implementation can result in several Reference Stories. They can be delivered to the prospect either face-to-face or over the phone When used successfully, the prospect will either admit pain, direct the salesperson to another part of the organization or the salesperson will discover that the prospect already has a vision of a solution. The conversation could then continue further by engaging in vision processing (creation or reengineering) When sharing Reference Stories is to not divulge the referenced company’s name. There are several reasons for this: Permission may not have been obtained to use the name. To do so without permission would unethical To hold the information back, may imply to the prospect a certain level of trust. That is to say, the prospect will hopefully think, “If I end up doing business with them they will keep my information in confidence too”. It can create further curiosity (“Who was that company?”) or it can become a bargaining tool later in the sell cycle (“If we get to a point where we might do business, I’ll be glad to share the company name with you then.”) Transition: “We will look at where in the sell cycle Reference Stories can be used later. I want to introduce you to another job aid that can also be very effective to stimulate interest …” © Solution Selling, Inc. • 2007

14 9 Block Vision Processing Model® - Vision Creation
PAIN Diagnose Reasons Explore Impact Visualize Capabilities R1 1 I1 4 C1 7 “Tell me about it, what is causing you to have this… (repeat pain)?” “Besides yourself, who in your organization is impacted by this (pain) and how are they impacted?” “What is it going to take for you to be able to (achieve your goal)?” “Could I try a few ideas on you?” Open R2 2 I2 5 C2 8 “Is it because… Reason A?… Reason B?... Reason C?... “Is this (pain) causing… (another pain)?” “If so, would (other job title) also be concerned?” “You mentioned (recall reason)… Would it help if … Capability Vision A?... Capability Vision B?... Capability Vision C?... Control Purpose: To expose the participants to the text version of the 9 Block Vision Processing Model® for Vision Creation. Key Instructor Notes: Discuss the sequence of the 9 Block Vision Processing Model® while walking the participants through the text The parenthetic numbers at the top of each box indicates the optimal order by which to navigate the model Set up the use of a Pain Sheet®: “Looking at 9 Block Model, are open questions hard to ask?” The participants usually answer “no”. (Drop down to confirming questions) “Are confirming questions hard to ask?” The participants usually answer “no - especially if you have taken notes and listened.” “Now, what about these control questions, are they hard to ask?” The participants usually hesitate and then answer with a “yes”. “Why are they harder to ask?” The participants usually reply that it takes more knowledge and experience to be able to ask these control questions. “I agree, it often times takes knowledge of the customer and their organization, experience in the particular industry, knowledge of your own products and offerings and how they, situationally, can help someone.” “Wouldn’t it be great if, as a seller, you had some type of help... or artificial intelligence at your disposal in order to be prompted to ask those type of questions when with a prospect?” Notes: This version (of the 9 Block Vision Processing Model®) is NOT used when the buyer knows what they want or has a vision of a solution. That is the Vision Reengineering version to be taught later. Transition: “There is a job aid in Solution Selling® called a Pain Sheet®. It helps provide some of that artificial intelligence.” R3 3 I3 6 C3 9 “So, the reasons for your (pain) are…? Is that correct?” “From what I just heard, (repeat the “who” and “how”) are impacted. It sounds like this is not just your problem, but a ______ problem! Is that correct?” “So, IF you had the ability to (summarize capability visions), THEN could you (achieve your goal)?” Confirming BUYING VISION © Solution Selling, Inc. • 2007

15 Pain Sheet® - Situational Fluency Prompter®: Example
Job Title & Industry: Offering: Increasing local operational costs Office Manager (local location), Healthcare Cleaning Break Room Supplies REASONS (R2) IMPACT (I2) CAPABILITIES (C2) Is it because; Today…? Is this (pain) causing…? What if…; Would it help if…? A Tell me about the additional inventory you need to carry? Is it a high cost to carry the additional inventory? What is the cost? Is there a minimum order you have to place to avoid additional charges? How much do you spend on additional charges? What is the minimum order? How much space is devoted to carrying inventory? What is the average days of inventory? What is the monthly value per month to carry over? What is your shrinkage factor? Do you incur any corporate chargebacks? What is the spoilage rate? Increasing facility costs across all locations? Is the VP Facilities concerned? Budgets to be missed? Is the VP Finance concerned? When: Ordering replenishment of cleaning and break room supplies Who: You What: Had a way to order only what you need at the best price so that your cost to carry is minimized? B What is the shipping and fulfillment process used by current suppliers today? Is shipping costly? What are your freight costs for all of your supplies? How many suppliers do you have? Are you leveraging any current discounts for shipping with suppliers? How many orders do you place per month? What is the cost to receive? What is the impact on the environment of doing it this way? Inventory has reached safety stock level Could go to your personalized landing page, identify items you need, check inventory, place your order, and have it delivered at your desired time without shipping costs? C What is the process for placing orders with multiple suppliers?? Today, how many different suppliers and ordering processes do you have? How many FTE’s does it take? How long does it take to place each order? Ordering multiple categories of items Had the ability to utilize a single website to order all items at once and not have to use multiple ordering processes and receive one delivery with one invoice? © Solution Selling, Inc. • 2007

16 Pain Chain®: Example Job Title: VP Finance Pain: Missed budgets
Reason A: Potential increase in insurance costs Reason B: Increasing facility costs across all locations Job Title: Human Resources Director Pain: Potential increase in insurance costs Reason A: Increasing risk liability due to employee leaving premises Job Title: VP Facilities Pain: Increasing facility costs across all locations Reason A: Increasing operational costs at remote locations Reason B: Increasing procurement costs Job Title: Office Manager Pain: Increasing local operational costs Reason A: High costs of carrying inventory Reason B: Increasing shipping costs Reason C: Inefficient ordering process because of multiple suppliers Job Title: Procurement Pain: Increasing cost of procurement Reason A: Large number of suppliers © Solution Selling, Inc. • 2007

17 Business Development Prompter: Example
Business Development Prompter: New Opportunity This is Bill Hart (salesperson name) with Office Depot (your company). You and I haven’t spoken before, but we have been working with healthcare (specific industry) organizations for the last 10 (#) years. A common trend we are hearing lately from other Office Managers (job title) is their frustration (difficulty) with increasing operational costs (job title’s likely critical issue / pain) [resulting from high cost of carrying and shipping of various cleaning and break room supplies (articulate common reasons)]. We have been able to help our customers address this issue. Would you like to know how? Purpose: To discuss key components of and show examples of effective business development prompters Key Instructor Notes: The prompters, all different examples, have common elements: Potential critical business issue(s) that the target prospect should be able to relate to Describe a similar industry as the target prospect Describe how “we” helped similar job titles as the target prospect Avoid discussing product Don’t ask for a meeting but rather ask if the prospect is interested They are brief… i.e. can be read in about 20 seconds The messages can be left on voice mail with the addition that the caller will make a return call. The seller may also chose to leave a number to be reached at Transition: “These messages can also be used in letter and form...” © Solution Selling, Inc. • 2007

18 Initial Value Proposition: Example for Local Office Manager
“We believe that Alliance Healthcare System should be able to reduce expenses by approximately $4,160 per location through the ability to streamline the ordering and delivery process for cleaning and break room supplies.” Value Proposition Assumptions: Alliance location has 65 WCW Customers of this size typically spend $257/WCW Average savings is $64 per WCW © Solution Selling, Inc. • 2007


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