Reducing The TCO Sales Cycle Kevin Wood

Reducing The TCO Sales Cycle Considerations Metrics Strategies Reducing The TCO Sales Cycle

Why is TCO a Long Sales Cycle? © CAMFIL FARR 2017-04-26 Investment Energy Disconnect From MRO Product Performance

Objective © CAMFIL FARR 2017-04-26 Prospects Customers

Forces of Commoditization © CAMFIL FARR 2017-04-26 Internet Disintermediation Automation Globalization Consolidation

Examples of De-commoditization © CAMFIL FARR 2017-04-26

Two Reason Why People Don’t Buy © CAMFIL FARR 2017-04-26 They don’t believe their problem is significant enough to take action, or 2. They do not believe the solution will work.

Three Challenges To Shorten The Sales Cycle © CAMFIL FARR 2017-04-26 “Decision” challenge – Prospect does not have a high-quality decision process to make this type of decision. We put good information into a bad process and the decision is random and unpredictable. Change – A decision to buy leads to change and change is painful. Value – We must make sure the customer can measure the impact of our solution. Left to their own devices they may not have the knowledge or methods to quantify the savings.

Invisible Pain? © CAMFIL FARR 2017-04-26

Sales Metrics & Analytics © CAMFIL FARR 2017-04-26

Elimination of Waste Current State Future State Building A Product © CAMFIL FARR 2017-04-26 Building A Product Building A Customer Current State Future State

Sales Executive Council – B2B Index 2009-2012 © CAMFIL FARR 2017-04-26 15% Pre-Sales Time Access to prospects Competing for time Emphasis on solutions selling 26% Sales Time Reduced customer access Cancelled appointments Lower deal volumes 15% Post-Sales Time Constant reassessment of current approach Focus on account penetration Proof for complex solutions

Factors Influencing Sales Metrics © CAMFIL FARR 2017-04-26 Longer life air filters. Selling TCO. Economy. Internet/social media. Predicting product trends & inventory.

Metrics for Profitable Growth © CAMFIL FARR 2017-04-26 #1 - Appointments (14/Week) #2 - Opportunity pipeline (90 day value = growth target x closure rate) #3 - Sales mix (60-70% 5 Star ratio) #4 - Conversion rate (25% of opportunities) #5 - Gross margin % by account/salesperson (35% - 5 Star products 40-60%) #6 - New accounts added (2-4/month based on attrition).

Strategies for Sales Cycle Reduction © CAMFIL FARR 2017-04-26

34% Paradigm Update – Social Media © CAMFIL FARR 2017-04-26 2 million search queries are conducted every minute Viewers watch 3 billion hours of video per month 83% of Twitter users have attended college 34% 50% of all social media users are 45-54 years of age Of small businesses use social media to attract new customers

Prospecting Right technology Right technique Right audience © CAMFIL FARR 2017-04-26 Right technology Right technique Right audience Right message Right math (time & appointments)

Three “C”s of Prospecting © CAMFIL FARR 2017-04-26 Three “C”s of Prospecting Concise Convincing Compelling

$1 to save $5-10? plus… R.O.I We’re Selling Math! Would you spend………? © CAMFIL FARR 2017-04-26 Would you spend………? R.O.I $1 to save $5-10? plus… Improve indoor air quality by 30-40%. Increase employee productivity by 6%. Lower your healthcare experience cost factor. Increase your sustainability profile.

Quantify The Cost of Delay © CAMFIL FARR 2017-04-26 “Research shows that people will do more to avoid a loss than to score a win.” Fortune Feb. 4, 2013

Savings per week not realized by delay of implementation = $1,072 Quantify The Cost of Delay © CAMFIL FARR 2017-04-26 Savings per week not realized by delay of implementation = $1,072 Large hospital LCC over 2 years based on: AAF vs. 30/30 & Hi-Flo ES 10 cents per KWH 400 fpm and 24/7 hours of operation

Local Proof & Guarantees © CAMFIL FARR 2017-04-26

Coil, belt, fan maintenance Labor lost opportunity cost Roof repair Filter Cost © CAMFIL FARR 2017-04-26 Energy Cost Labor Cost Disposal Cost Transaction cost Coil, belt, fan maintenance Labor lost opportunity cost Roof repair Administrative & selection cost IAQ cost

First Cost & Cost Per Year Quick Cost Calculator © CAMFIL FARR 2017-04-26 1 + 1 = 3 First Cost & Cost Per Year Ultimate TCO/IAQ

© CAMFIL FARR 2017-04-26 Increase your pipeline & use metrics Use technology, technique & time Measure your activity, behavior & results Sell “math” at the right level Remember “what we are selling” Change “ to whom you are selling” Don’t let “proof” delay the close The right tool from the tool box Develop local proof & guarantee materials © CAMFIL FARR 2017-04-26