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Headline Verdana Bold Sales as a Value Coach Vlerick Sales Conference 2017 May 31, 2017 Agenda THE ROLE OF SALES IS EVOLVING THE 6 RULES OF VALUE-BASED SELLING VALUE CHAIN ANALYSES AS A GOOD STARTING POINT HOW TO EMBED VALUE SELLING IN
Headline Verdana Bold
Sales as a Value Coach
Vlerick Sales Conference 2017
May 31, 2017
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Agenda
THE ROLE OF SALES IS EVOLVING … THE 6 RULES OF VALUE-BASED SELLING VALUE CHAIN ANALYSES AS A GOOD STARTING POINT HOW TO EMBED VALUE SELLING IN YOUR ORGANIZATION
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The role of Procurement has become more important everywhere Sales Procurement
reductions and price negotiations
needs
access to other stakeholders
Procurement Sales
and poor communication
the first point of contact or important relationship to build
International survey by Deloitte (2014) in collaboration with Vlerick Business School (~80 participants, cross market and cross industries)
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With many buyers and sellers, relationships have become more versatile; we need to proactively manage the FLAT zone
Customer engagement
Time
Commercial zone Installment zone Flat zone Value zone
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We are shifting from selling products to selling solutions
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The average Decision-Making Unit has become more complex
Distinct Sales Occasions
The Decision-Making Unit (DMU) represents the various roles and personas that can influence purchasing decisions within a distinct sales occasion(s)
Example: The Healthcare Provider DMU
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Today more data is available…and needed
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The 6 Rules of Value-Based Selling
Orient towards the CUSTOMER
Investigate IMPLICIT NEEDS
Focus on VALUE & BENEFIT
Build TRUST with different STAKEHOLDERS
Aim to provide value CONTINUOUSL Y
Find your VALUE WEDGE 2. Orient towards the CUSTOMER 3. Investigate IMPLICIT NEEDS 5. Focus on VALUE & BENEFIT
6. Aim to provide value CONTINUOUSLY 1. Find your VALUE WEDGE 4. Build TRUST with different STAKEHOLDERS
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Value parity What your best prospect really wants What you do very well What your competitors do very well
Value wedge
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his shoes
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Working Environment Break and fix support Technical Support Logistics Workflow Optimization Personal advantage
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Price Quality
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Os
Trust =
( Kn x Kh ) + ( Cr + Re + In) x Me
Knowledge Knowhow Credibility Reliability Intimacy Orientation towards self Uniqueness
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Product focus What do we offer?
Example: Our Break & Fix services provides assistance within an hour after system breaks down.
Application Focus Why should the customer care?
Example: Thanks to rapid fix of the issue, the system is quickly up and running again.
Customer Focus What is that worth?
Example: Maximizing the productivity and minimizing downtime results in significant cost savings: 20%.
Features Benefits Value
TO BE AS IS
Features € Value Benefits Emotional & Societal Value Drivers Economic Value Drivers
Selection of competitive
reference product(s) or services
Estimation of objective
differential benefits and risks
Translated into
quantified Economic Value (i.e., cost, revenue or risk impact)
Reference product(s) or
services may be another category and may also be subconscious
Perception of differential
benefits, often very subjective or image related
Perception of “fairness” Translated into Emotional
Value B2B B2C
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Example: detailed impact of direct and indirect value drivers on Oil & Gas platform’s P&L
2,0 1,0 0,7 0,15 Value at stake Well-Track potential Well-Track impact NBA potential NBA impact
Absenteeism
Cost Impact Revenue Impact
Onshore Admin Costs
Helicopter Costs Replacement Costs Overtime Costs Absenteeism linked Revenue loss
Turnover
Cost Impact Revenue Impact Recruitment Costs Induction Costs Agency Staff Overtime Costs Turnover linked Revenue loss
Employee Health and Engagement
Cost Impact Revenue Impact Job Satisfaction
Smoking Rate Impact
Obesity Impact
Alcohol consumption
Cost Impact Revenue Impact Major Injury Cost
Over 3 day Injury Cost
Minor Injury Cost Insurance Cost Accident linked Revenue loss
Accidents
€ m
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Contract renewal Contract renewal Contract renewal Build Adapt Track Build Adapt Track
Every interaction could be a moment of value creation !
Value driver Measurements Length of Stay
Nursing Time
Treatment costs
Objectivity
The Economic Value Estimation for an electronic scanning device illustrates continuous value delivery
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Example Value Chain Analysis – Food & Beverages
The main risks within Food & Beverages are related to food safety (risk = loss of production, reputation, claims, etc.) or workplace accidents (medical costs, maintenance costs, unproductive time)
High Risk Other issues
Legend:
Medium Risk Low Risk
R&D
Leakage confidential information Explosion
Marketing & Sales
Leakage confidential information External Agression Phone customer support
Firm infrastructure
Vandalism Energy Consumption Computer Crime Materials mgt (e.g. keys, badges)
HR management
Employee fraud Contractors Reception contractors Non- smoking legislation
Production
Power Outage Turndown machinery Theft Workplace Accidents Temperature fluctuations Fire & Explosions
Logistics
Wrong load / delivery On route: Robbery On route: Theft from / of veh. Theft in Watrehouse Traffic Accidents Facility issues (e.g. leakages) Food Contamination
What is the cost (total cost – direct and indirect) when an employee steals 12 bottles of milk at a plant?
Potential Costs Across Value Chain
Unit Cost (12 bottles)
€ 6
Damaged Packaging
€ 0,5
Unproductive Time (thief)
€ 100
Complaint Handling
€ 100
Re-planning Delivery, Re- route Trucks
€ 100
Overtime for Truck Driver
€ 100
= € 407
TOTAL COST DIRECT COSTS INDIRECT COSTS
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Build an internal program for Value Selling
Build the value Sell the value Deliver the value
Monitoring the program (price evolution, margin, value tool positioned, services sold, …) Incentives & Rewards (competition, margin / net price, ..) Training / Coaching Organization & Capabilities
Customer insights Customer LifeCycle Value Product development Value selling techniques Service development Value Based Pricing Contract Management Service catalogue Channel Optimization (digital) Targeting (Value vs. Price buyers) Value proposition (packages per segment)
Potential Components of a Value-Selling Program
SLA Management Quality Management
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Start with people, talent, and culture
Typical Approach to Build a Value-Selling Program
mobilize teams
to support important
Mobilize and Coach Sales Team
stories broadly
‘customer obsession’
competitive battles
Create a “Winning” Culture
curriculum
hard skills
sales aids
Enhance Learning and Goals
responsibilities
competency plans
targets
Strengthen Talent and Organization Plan and Monitor
A program devoted to evolving sales and commercial teams towards value-selling requires significant investment in selection of talent and rewards systems
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Summary
VALUE-BASED SELLING SALES AS A VALUE COACH VALUE CHAIN ANALYSES LAUNCH A PROGRAM
6 rules provide a simple framework to approach selling by value creation The DMU is becoming more complex, data availability is exploding, and customers enter the sales “flat zone” Analyzing a customer’s value chain can help identify direct and indirect needs Embedding Value Selling in your organization begins with People, Talent and Culture
In today’s environment, the role of Sales is evolving and we have to be able to understand our customer’s complex needs, and sell the full value of what we bring
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Contact details
Marc Abels
Partner Tel: + 32 2 749 57 80 Mobile: + 32 497 05 10 37 Email: maabels@deloitte.com