Sales Strategy
Vidhya Srinivas
What is your business model??????
PARTNER
NETWORK
KEY
ACTIVITIES
OFFER
CUSTOMER
RELATIONSHIPS
20 MIN
CUSTOMER
SEGMENTS
KEY
RESOURCES
COST STRUCTURE
DISTRIBUTION
CHANNELS
REVENUE STREAMS
PARTNER
NETWORK
KEY
ACTIVITIES
KEY
RESOURCES
COMMERCIAL /
BUSINESS
STRATEGY
COST STRUCTURE
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
do we want?
PARTNER
NETWORK
KEY
OFFER
CUSTOMER
RELATIONSHIPS
ACTIVITIES
KEY
RESOURCES
COST STRUCTURE
What is our value
proposition?
What is the
customers buying
behaviour?
CUSTOMER
SEGMENTS
DISTRIBUTION
CHANNELS
Who are we going to
target and why?
How are we going to
do it?
REVENUE STREAMS
What
The customer buying behaviour
is
1. What are their problems
and needs?
PARTNER
NETWORK
KEY
ACTIVITIES
OFFER
KEY
RESOURCES
COST STRUCTURE
CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS
DISTRIBUTION
CHANNELS
REVENUE STREAMS
2. What type of value are
they looking for?
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
they
hear
Custom
Technological Change
ers
What do
they see
Economical Changes
Social Changes
Others .
their customers doing?
their suppliers doing?
heir competitors doing?
What do they say and do?
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?
What type of value are they looking
What
is the
price
How
will it
impro
ve our
busine
ss
Extrinsic Value
Buyers
VALUE = BENEFITSCOSTS
Strategic Value
Buyers
How
will it
solve
our
proble
ms
Intrinsic Value
Buyers
Source: Neil Rackham, Rethinking the Sales Force
1. What are their problems and needs?
What type of value are they looking f
How do they typically buy this type o
product /service?
Strategic or cost importance of
the suppliers product
How do they typically buy this
product or service?
Leverage
Size
Shop
Low
Partner
Manage
Risk
Difficulty of SubstitutionHigh
Source: Neil Rackham, Rethinking the Sales Force
Strategic or Cost importance of the
Suppliers Product
Low
High
Examp
le
Which bank will give us the best
For rate?
which platform should we develop our app?
Which mobile phone should
Which
I buy?
training organisation should we use?
Low
Difficulty of Substitution
High
Source: Neil Rackham, Rethinking the Sales Force
How do your
customers buy
from you ??
What is Value
Proposition?
PARTNER
NETWORK
KEY
ACTIVITIES
OFFER
KEY
RESOURCES
COST STRUCTURE
CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS
DISTRIBUTION
CHANNELS
REVENUE STREAMS
1. What are the features,
advantages and benefits
of your value proposition?
2. What is your sales pitch?
What is Value
Proposition?
1. What are the features, advantages and benefits
of your value proposition?
What are the FAB of your Value
Proposition?
Advantages
What is it for
Ways
how the product can be used
me?
meet the needs of the user.
Benefits
Advantages
Features
Features
So what?
Ways in which the features
can be used to help the
user.
What can your product
Raw
do?facts and information
about the product.
What are the FAB of your Value
Proposition?
FEATURE
This mobile phone has a colour screen.
This mobile phone has an agenda function.
You dont have to keep two agenda up to date
because your phones agenda will synchronise with
your outlook.
You said you wanted to know whether you received
emails or phone calls during meetings, well with this
phone you can do that by setting it on vibrate mode.
This phone is very light dont you think?
ADVANTAGE BENEFIT
The(feature)means
you(advantage)with the real
benefit to you being(benefit).
20 MIN
1. Select at least 5 features of your value proposition
2. For each feature identify at least one advantage and
possible benefit.
3.
Identify which 1 or 2 features really makes your com
and product stand out from your competition.
Which features makes you really
unique?
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 mu
information.
For
<ideal customer>
who is unsatisfied with
<current alternative>
Our product is a
<product category>
<key benefits/advantages>
that
unlike
<competition>
we have assembled a product that
<unique differentiators>
Who are we going to target and
Why?
PARTNER
NETWORK
KEY
ACTIVITIES
OFFER
KEY
RESOURCES
COST STRUCTURE
CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS
DISTRIBUTION
CHANNELS
REVENUE STREAMS
1. What makes a customer
attractive to us?
2. What makes us attractive
to our customers?
3. How to differentiate our
customer approach?
1. What makes a customer attractive to
us?
Who are we going to target and
Why?
Who are we going to target and
Why?
What makes a customer attractive
about us?
Soft
Nature of criteria
Customer
attributes
Customer
needs
Risk reduction:
working together
Opportunities for
product/service
differentiation
Hard
Outcomes
Financial
outcomes/profit
Strategically important
purchase
Member of targeted
segment
Turnover
Appropriate decisionmaking structure
Strategic fit
Volume
Want non-standard
solutions
Cost to serve
Prepared to pay for
value
Specifics (e.g. Speed,
compatible systems)
Contribution
Prepared to invest
Compatible services
Growth
Right attitude to
relationships
Spend
Profit
Price
30 MIN
In groups of 5 people:
- Select 1 type / segment of customers
within your group.
Attract
ive
- Select 5 to 6 criteria that define the
attractiveness of your customers.
- Attribute a weight to each of the criteria.
- Take 2 customers (preferably extremes)
and rate their attractiveness
What makes a customer attractive
about us?
Customer attractiveness factors (CAFs)
1) Relative
importance
rating
2) Customer A
rating 1-10
100%
Total =
3) Customer A
Score (=1x2)
2) Customer B
rating 1-10
Total =
3) Customer B
Score (=1x2)
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 Customers 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
30 MIN
In groups of 5 people:
Attract
ive
Select 5 or 6 criteria which you
believe are the most important for
your customers.
Attribute a weight to each of the
criteria.
Put yourself into the shoes of your
customers and see how they would
rate your own company.
What makes us attractive?
Business Strength
1) Relative
importance
rating
2) Customer A
rating 1-10
100%
Total =
3) Customer A
Score (=1x2)
2) Customer B
rating 1-10
Total =
3) Customer B
Score (=1x2)
How to differentiate our customer
approach?
30 MIN
In groups of 5 people:
Select 4 or 5 of your customers.
Preferable small and large customers.
Complete the scorecard your just made
for each of them and plot the result on
your quadrant.
2
9
3
10
How to differentiate our customer
approach?
10
Business strength
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?
Strategic
Segments or
Customers
Star Segments
or Customers
How to differentiate our customer
approach?
Selectively
Invest
Streamline
Segments or
Customers
Status
Segments or
Customers
10
Invest
Maintain
1
1
2
3
9 2 10
Manage for Cash
4
5
6
6
7
10
Business strength
What types of relationship do we
want?
PARTNER
NETWORK
KEY
ACTIVITIES
OFFER
KEY
RESOURCES
COST STRUCTURE
CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS
DISTRIBUTION
CHANNELS
REVENUE STREAMS
1. What type of
relationships do we
have?
2. What type of
relationships do we
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
Interdepende
nt
Cooperative
Basic
Transactional
Exploratory
Collaborative
Customer Strategic Intent
Adapted from Millman and Wilson 1994 by McDonald and Woodburn 20
What types of relationship do we
want?
Sales
Person
Ops
Ops
Sales
Person
Key
Customer Ops
Board
Admin
Board Admin
Ops
Admin
CUSTOMERS / PARTNERS
Key
Customer
Contact
Board
SONY
Admin Board
Contact
You
CUSTOMERS/PARTNERS
Managers Managers
Operations Operations Customer
Sales
Person
Key Contact
AdministrationAdministration
Board
Board
What types of relationship do we
want?
Does this statement apply to your relationship with your customer?
Score
If our relationship ended, both parties would find it difficult and complicated to
exit
There is a real spirit of partnership and trust between our two companies
Together we have produced long-term strategic plans for the development of
our relationship and business together
Any information at all relevant to our business together is passed straight on to
the client
People at all levels in both organisations are in constant communication with
each other
We have both realised substantial benefits through working together
Total Score
Rating
Strongly agree
Agree
Disagree
Strongly disagree
Score
4
3
2
1
How to differentiate our customer
approach?
20 MIN
In groups of 5 people:
For each of the customers you platted
on your quadrant complete the
customer relationships survey.
Review with your colleagues if the
relationships is in line with the type of
customers.
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?
Integrat
ed
Integrated
Interdepend
Interdependent
ent
Co-operative
10
Co
Operative
Basic
Basi
c
3
4
1 9 2 10
3 4
5
Business
Strategies
10
business strength
How are going to do it?
PARTNER
NETWORK
KEY
ACTIVITIES
OFFER
KEY
RESOURCES
COST STRUCTURE
CUSTOMER
RELATIONSHIPS
CUSTOMER
SEGMENTS
DISTRIBUTION
CHANNELS
REVENUE STREAMS
1. What type of sales
approach do we need?
2. Which channels should
we use?
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
Transactional Selling
Product and service
characteristics
Nature of relationship
Prerequisites for success
Nature of sale
Partnership Selling
-Differentiated
-Customisable
-Hidden capabilities
-High strategic and or cost
importance
- Limited substitutability
-Importance of problem
-Solution fit
-Price performance trade off
-Platform fit
-Value fit
-Sustainability
-Sufficient value for effort
-Event
-Purchasing stream
-Strategic plan
-Cost based
-Buyer seller
-Confrontational
-Benefit based
-Client advisor
-Cooperative
-Trust based
-Business equals
-Insider
-Access to decision maker
-Access to influencers
-Access to strategy
- Doing the deal
- Simple Sales process
- Short sales cycle
- One or few decision makers
- Problem / Need solving
- Long sales cycle
- Complex sales process
- Large DMU
-Agenda setting
- Boundaries blur - unclear who is
selling and who is buying.
-Well understood
-Readily substitutable
-Standard items
Key buyer concerns and decision-Price
criteria
-Availability and risk
-Ease of acquisition
Time horizon
Consultative Selling
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 Suzukis
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?
DEFINE
STRATEGIC
AGENDA
Define
Strategic
Agenda
IDENTIFYING
EXECUTION
GAPS
Identifyin
g
Execution
Gaps
DEFINING
PROBLEMS AND
NEEDS
Defining
Problems
and
Needs
IDENTIFY
SOLUTION
Identify
Solution
SELECT
SUPPLIER &
PRODUCT
Select
Supplier
and
Product
PURCHAS
E
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 channels do we
need?
10 MIN
In groups of 5 people:
Identify what are the different sales and
servicing needs of your customers.
How important are each of these
services for your customers?
What type of sales channels do we
need?
CUSTOMER
NEEDS
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
LO
W
MEDIU
M
HIG
H
What type of sales channels do we
need?
PERSONAL SELLING
Field SalesValue Added Volume Resellers Retail/mass Call Centres Internet
Force
Partners
and Distributors
Merchants
Customisation to specifications
Integrated total solution
Fast Local Support
24 * 7 Support
Customer Needs
Expert advise and hand holding
Training
On site setup and installation
Self Service
Low prices
What Sales Channels will
you use?
PART 3:
How to Design your SALES
ORGANISATION?
The Framework
SALES
MANAGEMENT
SALES PEOPLE
ACTIVITIES
SALES FORCE DESIGN
LOYALTY
PERFORMANCE
REWARD
How should we manage our sales
people?
3 What are the activities
part of our sales
process?
What type of sales people do we
4
need?
What type of sales
targets do we need?
What are the roles and
2
responsibilities of our sale
people?
1. What is our strategy
map?
2. What type of objectives,
targets and measures
are we going to use for
our strategy?
30 MIN
Instructions
In groups by company map
your own strategy map.
Focus on the sales &
marketing activities
Start by identifying the type
of financial objectives you
use.
Examples
Financial Perspective
Sales Volume per period
Profits per period
Orders per period
Customer Perspective
Customer Acquisition
Customer Satisfaction
Customer Relationship
Process Perspective
Sales Process
Account Planning process
Account Servicing Process
Learning Perspective
Competitor Knowledge
Selling Skills
Customer Knowledge
Market Knowledge
Sales & Marketing
Objectives
Increase sales revenue
Measures
Sales Revenue
Targets
1.000.000 EUROS
Revenue
Incr
ease
More new customers
Create a customer
experience
#contracts
1 contract a week
nbr of new
customers
must see
Customer
the added
value of
sales
Better
sales
Better
marketing
Online
Lead
generation
Find more
events
Sales
Training
8 leads a week
Standardised consultative
#leads follow up
5 proposals a week
sales approach
#proposal
5
follow
up calls a week
Increase follow up on
#proposal follow up
approach
leads
400 leads by sales perso
More and better
#of leads per sales person
marketing campaigns to
generate leads
campaigns
New online tools to
#Training days
capture leads
#Coaching days
Participate at new events #Events Participation
Increase training days
Tools
Not defined
20 MIN
Instructions
For your own strategy
map:
Complete the objectives
Define how you are
going to measure it.
Set the targets.
Sales & Marketing
Objectives
Measures
Targets
1. What type
specialisation do we
need in our sales force?
2. What type of roles and
responsibilities will we
assign to our sales
people?
Market Driven
Specialisation
Product / Market Driven
Specialisation
Geography Driven
Specialisation
Product Driven
Specialisation
Complex RANGE of Products
Customer Needs
Simple 1
5 Complex
All our customers and prospects have very
specific needs depending on the type of
organisation and sector their operate it.
All our customers and prospects have very
similar needs.
Product Range
Simple 1
All our products are very similar allowing one
person to easily sell their all.
5 Complex
Our products are very different and each of
them require highly specific knowledge from
our sales force.
They seek out new channels
and support existing ones.
Main activities are channel
management, Prospecting,
Training and Recruiting and
entertaining. Additionally some
relationship selling
Maintaining close long-term
relationships with
organisational customers. They
are often involved in team
selling. Main activities are
providing product support,
maintenance and installation
and entertaining.
They manage large scale and
value of sale. Long negotiation,
complex purchase decision,
usage of the product is different
from consumer sale. Main
activities are relationship
selling, and prospecting.
Sales person is not permitted or
expected to take orders. The
objective is to create goodwill or
educate the customer Main activities
are delivering samples, education ad
promotional activities and sales
service.
Retail sales assistant, customer
chooses freely the product.
Sales person only handles the
transaction. Telemarketing
taking orders from customers
how are calling in.
Position where the salesperson
is predominantly an order taker
Helping the customer to make
their choice and complete the
transaction.
They provide support to the
retailers and wholesales to
ensure that their product is well
represented and displayed.
Main activities are promotion
activities and servicing.
They are involved in complex and
highly technical sales as support of
the sales team. They play a dual
role of sales person and advisor.
Main activities are analysing the
customers problems and needs and
proposing a tailored solution.
Salesperson predominantly
delivers the product. Selling
skills as secondary to good
servicing skills. Main activities
are stock shelving, writing up
orders, and checking inventory
Their objective and main
activities are providing support
to the sales people who are in
the field.
The objective is to win new
business by identifying and
selling to prospects.
Main activities are Prospecting
and Relationship selling.
Identifying potential business
opportunities by analysing market
trends and developing strategies.
Closing new business opportunities
by coordinating requirements;
developing and negotiating
contracts.
1. What type of activities
should our sales people
do?
2. What does our sales
process look like?
LEADS
DEAL
AWARENESS
Consists of activities that
enable the customer to
become aware of the
needs for your product or
services.
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.
Applicable for:
- Short sales cycles (1 to 2 visits to close a sales)
- Consumer sales
- Product Based Sales
Prospecting
Consists of
activities such as
generating,
qualifying and
distributing new
leads.
Qualification
Presenting
Negotiating
Closed
Follow-up
Consists of
Consists of all the
Consists of all the
Consists of showing Consists of agreeing
understanding the the customer how the terms of the final contractual
activities the sales
needs and problems the suppliers
purchase with the activities to close the force provides during
customer.
deal.
of the customer and produces and
the after sales of the
product.
determining whether
services will enable
the sales persons them to solve their
products and servicesproblems 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 Consists of the activitiesConsists of the activities Consists of the activities Consists of the activities
that will get the customerthat will get the customer
enable the customer to that will stimulate
that are likely to
stimulate your customerto actually purchase yourto actually purchase your
become aware of the
interest with the
product or service.
to desire / want your
product or service.
needs for your product or customer for your
services.
product or service.
product or service.
Applicable for:
- Long and complex relationships
- Key Account based Sales
- Business to Business sales
30 MIN
Instructions
In groups of 4 or 5:
1. Select the sales stages
tat are more appropriate
for your sales process.
2. For each of the stages
identify all the key
activities that the sales
people will need to
perform.
S LES PROCESS:
Stages
Activities
Tasks /
Working
procedures
1. What type of sales
people do we need?
CONSULTANT
RELATIONSHIP
BUILDER
9
8
7
6
5
4
3
2
1
DISPLAY SALES
PERSON
9
CLOSER
Personality:
High energy
Manipulative
High Need to achieve
Risk Takers
Skills:
Prospecting
Presenting
Motivation:
Status
Recognition
Personality:
Team Leader
Professional
Enjoys challenges
Highly Educated
Calculated Risks
Skills:
Problem Solving
Motivation:
Mastery
Purpose
Personality:
Likable, fun
Hard working
Team Player
Likes his autonomy
Avoids Risks
Skills:
Developing
Relationships
Motivation:
Autonomy
Sense of Belonging
Personality:
Happy, outgoing
Service oriented
Not an overachiever
Pleases the customer
Avoids Risks
Skills:
Service driven
Motivation:
Recognition
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?
1. What type of sales
approach to adopt ?
2. How will we coach our
sales people?
MARKET BASED
MARKET BASED
The market / customer sales revenues
determine whether the sales people are doing
a good job or not.
BEHAVIOUR BASED
Adherence to our sales process and activity
targets determine whether the sales people
are going a good job or not.
BEHAVIOUR BASED
CLAN BASED
CLAN BASED
dherence to our companys values and
norms determine whether the sales people
are going a good job or not.
97
ADVANTAGES
DISADVANATAGTES
- Keep sales people focus on results.
- Focus on the end rather then the
means
- Easy to apply.
- Promote initiative
- Fails to stimulate growth of
professionalism
- Consistent across different people in the
organisation
- Requires very little management
attention
- Short term focus
- Requires sales people whit a risk
taking profile
Tupperware ladies
Self Employed Sales Agents
Jerry Maguire Movie
ADVANTAGES
DISADVANATAGTES
- Greater opportunity for behaviour
modification.
- Requires management ability to
observe and diagnose
- Encourage customer relationships.
- Require time for observation
- Recognize the difference between
cause and effort.
- Requires impartiality
- Encourages risk averse people to start
a career in sales.
- Applicable where sales people need
very specialised knowledge and skills.
- Likely to be implemented with some
inconsistency across the organisation
Retail Salesperson
ADVANTAGES
DISADVANATAGTES
- Requires very little management
effort
- Difficult to measure, very subjective
- Encourages loyalty
- Lack of outcome focus
- Recognises that selling is a team
based effort.
- Requires impartiality
- Lacks real accountability
- Promotes autonomy and initiatives
- Applicable where sales people need
very specialised knowledge and skills
- Applicable in highly volatile markets
Sales Team
Process Knowledge
Perfect
Imperfect
Behaviour or
Outcome
Based
Outcome
Based
Behaviour
Based
Clan
Based
High
Low
20 MIN
Instructions
You probably will combine all
three approaches in your
management style. The question
is:
1. How important is each going
to be. Draw a line connecting
the three legs indicating thei
relative importance.
2. Describe how you are going
to implement the approach
in terms of management
activities, rewards and
targets.
MARKET BASED
BEHAVIOUR BASED
CLAN BASED
20 MIN
In groups of 2 participants:
GOALS: What are your goals for the this
period?
REALITY: How far are you from realising
your individual goals? For which goals are
you lagging?
Why?
Why?
Why?
OBSTACLE: Why are you lagging? Ask 3
times the why question.
WAY FORWARD: How can we remove the
obstacle?
