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 YOUR ORGANIZATION 2
THE ROLE OF SALES IS EVOLVING… 3
The role of Procurement has become more important everywhere Sales Procurement Procurement Sales • • Only focused on cost Limited information sharing reductions and price and poor communication • negotiations Procurement is not seen as • Lack of strategic insight / lack the first point of contact or of knowledge of business important relationship to build • needs Interpret behaviors as • Procurement reluctant to give opportunistic and gaming access to other stakeholders International survey by Deloitte (2014) in collaboration with Vlerick Business School (~80 participants, cross market and cross industries) 4
With many buyers and sellers, relationships have become more versatile; we need to proactively manage the FLAT zone Commercial Installment Flat zone Value zone zone zone Customer engagement 4 3 2 1 Time 5
We are shifting from selling products to selling solutions 6
The average Decision-Making Unit has become more complex The Decision-Making Unit (DMU) Distinct represents the various roles and personas Sales that can influence purchasing decisions Occasions within a distinct sales occasion(s) Example: The Healthcare Provider DMU 7
Today more data is available…and needed 8
WE WE NE NEED ED TO SE O SELL LL THE HE V VALU LUE E WE WE BR BRIN ING
The 6 Rules of Value-Based Selling 1. 1. 2. 2. 3. 3. Find your Orient Investigate Find your VALUE towards the Orient Investigate IMPLICIT WEDGE VALUE CUSTOMER towards the IMPLICIT NEEDS WEDGE CUSTOMER NEEDS 6. 4. 5. 4. 5. 6. Build TRUST Focus on Aim to provide Aim to provide Build TRUST Focus on with different VALUE & value value with different VALUE & STAKEHOLDERS BENEFIT CONTINUOUSLY CONTINUOUSL STAKEHOLDERS BENEFIT vs. features Y vs. features 10
1. Find your value wedge What your Value What you wedge best prospect do very well really wants Value parity What your competitors do very well 11
12
2. Orient towards the customer: Walk in his shoes 13 13
3. Investigate implicit needs Price Quality Workflow Optimization Logistics Technical Support Break and fix support Working Environment Personal advantage 15 15
4. Build trust with different stakeholders Knowledge Credibility Knowhow Reliability Intimacy ( Kn x Kh ) + ( Cr + Re + In) Trust = x Me Os Uniqueness Orientation towards self 16
5. Focus on value and benefits, not features Product focus AS What do we offer? Features IS Example: Our Break & Fix services provides assistance within an hour after system breaks down. Application Focus Benefits Why should the customer care? Example: Thanks to rapid fix of the issue, the system is quickly up and running again. TO BE Customer Focus What is that worth? Value Example: Maximizing the productivity and minimizing downtime results in significant cost savings: 20%. 17
Features Emotional & Societal Benefits Economic Value Drivers Value Drivers Selection of competitive Reference product(s) or reference product(s) or services may be another services category and may also be subconscious Estimation of objective differential benefits and Perception of differential risks benefits, often very subjective or image Translated into related quantified Economic Value (i.e., cost, Perception of “fairness” € Value revenue or risk impact) Translated into Emotional Value B2B B2C
Example: detailed impact of direct and indirect value drivers on Oil & Gas platform’s P&L € m Absenteeism Accidents Cost Impact Revenue Impact Cost Impact Revenue Impact Major Injury Cost Onshore Admin Costs Accident linked Absenteeism linked Revenue loss Revenue loss Helicopter Costs Over 3 day Injury Cost Replacement Costs Minor Injury Cost Insurance Cost Overtime Costs Employee Health and Engagement Turnover Cost Impact Revenue Impact Cost Impact Revenue Impact 2,0 Job Satisfaction Recruitment Costs Turnover linked Revenue loss 1,0 Induction Costs Smoking Rate Impact 0,7 Agency Staff Obesity Impact 0,15 Alcohol consumption Overtime Costs over gov. guidelines Value at stake Well-Track Well-Track NBA potential NBA impact potential impact 19
6. Aim to provide value continuously Contract Contract Contract renewal renewal renewal Build Track Build Track Adapt Adapt Every interaction could be a moment of value creation ! Value driver Measurements Length of Average LOS • Stay Revenue distribution over time • The Economic Value Estimation for Nursing Salary of experienced nurse • an electronic scanning device illustrates Time Time per procedure • continuous value delivery Treatment Special mattress • costs Consumables • Availability of objective data • Objectivity Law suit penalty size • 20
BY BET BY BETTER U ER UNDERS NDERSTANDING ANDING OUR OUR CUSTOMER’S NEEDS
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) Materials mgt Energy Facility issues Computer Firm infrastructure (e.g. keys, Vandalism Consumption (e.g. leakages) Crime badges) Non- Reception HR management smoking Employee fraud Contractors contractors legislation Leakage R&D confidential Explosion information Phone Leakage External Marketing & Sales customer confidential Agression support information Food Turndown Workplace Temperature Fire & Production Theft Power Outage Contamination machinery Accidents fluctuations Explosions On route: Theft Wrong load / On route: Theft in Logistics Traffic Accidents from / of veh. delivery Robbery Watrehouse Legend: Other issues High Risk Medium Risk Low Risk 22
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 = € 407 € 100 € 100 € 100 € 100 € 0,5 € 6 Unit Cost Damaged Complaint Re-planning Overtime for TOTAL Unproductive Handling Delivery, Re- Truck Driver (12 bottles) Packaging COST Time (thief) route Trucks DIRECT COSTS INDIRECT COSTS
HOW HOW DO I DO I EM EMBE BED D VAL ALUE UE SE SELLING IN ING IN MY OR ORGAN ANIZ IZATION? TION?
Build an internal program for Value Selling Potential Components of a Value-Selling Program Build the value Sell the value Deliver the value Customer insights Channel Optimization (digital) Customer LifeCycle Value Product development Contract Management Targeting (Value vs. Price buyers) Service development SLA Management Value selling techniques Value proposition Quality Management Value Based Pricing (packages per segment) Service catalogue Organization & Capabilities Training / Coaching Monitoring the program (price evolution, margin, value tool positioned, services sold, …) Incentives & Rewards (competition, margin / net price, ..) 25
Start with people, talent, and culture Typical Approach to Build a Value-Selling Program Mobilize and Create a Enhance Strengthen Coach Sales “Winning” Learning and Talent and Team Culture Goals Organization Reallocate and Communicate success Blend learning Clarify roles and mobilize teams stories broadly curriculum responsibilities Review account plans Boost a mindset of Improve soft and Develop talent and ‘customer obsession’ hard skills competency plans “Deal Support Board” to support important Unite around Drive adoption of new Include new KPIs and opportunities competitive battles sales aids targets 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 26
“ Try not not to to be beco come me a a ma man of f su succe cces, s, bu but t rat athe her tr try to to bec ecome me a m a man an of of val value ue .” 27
Summary L AUNCH A P ROGRAM Embedding Value Selling in your organization V ALUE C HAIN A NALYSES begins with People, V ALUE -B ASED Analyzing a customer’s S ALES AS A V ALUE C OACH Talent and Culture S ELLING value chain can help The DMU is becoming identify direct and 6 rules provide a more complex, data indirect needs simple framework to availability is exploding, approach selling by and customers enter the value creation sales “flat zone” 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 28
Contact details Marc Abels Partner Tel: + 32 2 749 57 80 Mobile: + 32 497 05 10 37 Email: maabels@deloitte.com 29
Recommend
More recommend
