Strategies for success Business Development 11 June 2020 Crisis - - PowerPoint PPT Presentation

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Strategies for success Business Development 11 June 2020 Crisis - - PowerPoint PPT Presentation

Aug 30, 2022 315 likes •544 views

WEBINAR Strategies for success Business Development 11 June 2020 Crisis rewards those who take swift action Survival phase Recovery phase Grow and thrive! Dont just survive but

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WEBINAR Strategies for success – Business Development

11 June 2020

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Survival phase Recovery phase Grow and thrive! Don’t just survive but thrive!!

Crisis rewards those who take swift action

HELPING YOU THRIVE IN A CHANGING WORLD 2

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But its how you react that determines where you land Accept there will be pain Recognise the changes needed to be made Prioritise your time Have a plan and monitor it

Change brings opportunity

HELPING YOU THRIVE IN A CHANGING WORLD 3

Opportunity presents itself when there are seismic changes in the way the world consumes

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Few SMEs rate well on Business development

Market Insight 10 7 7 Client Insight & Feedback 10 7 7 Value Proposition(s) 10 7 7 Innovation 10 7 6 Brand Strength 10 7 7 Intellectual Property 10 7 5 Income Quality/Security 10 7 6 Shareholder/Owner Reliance 10 7 6 Low-Risk Portfolio 10 7 7 Growth Bridge 10 7 8 Business Development Processes 10 7 6 Conversion Rates 10 7 4 Key Man Commitment 10 7 8 Succession Management 10 7 7 Employee Engagement 10 7 7 Recruitment 10 7 7 Employee Turnover 10 7 8 Accurate Delivery Costing 10 7 7 Resource planning 10 7 7 Risk Management 10 7 6 IT & Data Protection 10 7 3 Finance Team 10 7 5 Sales/Profitability Analysis 10 7 3 Cashflow 10 7 7 Management Accounts 10 7 5 Business Vision 10 7 7 Strategic Capability 10 7 5 Independent Expertise 10 7 2 SMART Objectives & Strategy 10 7 3 Risks, Challenges & Opportunities 10 7 4 Business Plan 10 7 5 Forecasting Accuracy 10 7 6 KPI/Initiative Focus 10 7 4 KPI Buy-In 10 7 7 Performance Review Mechanism 10 7 4 Board Meetings 10 7 5 360 7 208 58% Maximum Good Current Clients (BD) 10 7 6.3 People 10 7 7.2 Delivery (Operations) 10 7 5.8 Finance 10 7 5.0 Vision & Strategy 10 7 4.7 Aggregate (#) 5.8 Aggregate (%) 58%

…and key findings from MKS360s are:

  • Many companies score less than 50%
  • Biggest ‘gaps’ often relate to the biggest drivers of EV…
  • Eg Business development
  • …yet most leaders are unaware and/or not managing the biggest

improvement opportunities…

  • …because they’re not proactively asking themselves the right

questions

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Recent MKS research into what top ‘Thriver’ businesses do differently showed that many of the ‘top 10 strategies’ relate to Business Development

‘Survivor to Thriver’: BD Effectiveness is key to Growth

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Key BD challenges in current crisis

1.Ensuring you generate more new business

  • pportunities

2.Increasing your conversion rates from prospect to paying customer 3.Considerations for price pressure and increasing profit-per-sale 4.How to grow accounts and account profitability.

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7 Value Proposition Marketing Target Market Conversion Account Development Qualification

‘Origination’ ‘Sales Process’

Business Development Framework

1.Ensuring you generate more new business

  • pportunities

2.Increasing your conversion rates from prospect to paying customer 3.Considerations for price pressure and increasing profit-per-sale 4.How to grow accounts and account profitability.

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8 Target Market

‘Origination’

Ensure you get enough new business opportunities

Value Proposition Marketing

1.Ensuring you generate more new business opportunities

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9

  • Where is the

demand likely to come from post COVID?

  • In which sectors

will we see growth?

  • Which sectors

will decline?

  • Wil these trends

be temporary or permanent?

  • Redefine your

target market

Target Market

‘Origination’

Ensure you get enough new business opportunities

Value Proposition Marketing

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Evaluating where to focus

COMPETITIVE POSITION (Business Strength) MARKET ATTRACTIVENESS

High Medium Low Weak Medium Strong 10 Back

  • Market size
  • Market growth
  • Industry profit margins
  • Competitive intensity
  • Barriers to entry/exit

Relative Market Attractiveness

  • Relative market share
  • Relative brand strength
  • Customer relationships
  • Relative cost position
  • Market knowledge
  • Perceived USP

Competitive Position

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Evaluating where to focus

COMPETITIVE POSITION (Business Strength) MARKET ATTRACTIVENESS

High Medium Low Invest To Build Weak Medium Strong 11 Back

  • Challenge for leadership
  • Build selectively on strengths
  • Reinforce vulnerable areas
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Evaluating where to focus

COMPETITIVE POSITION (Business Strength) MARKET ATTRACTIVENESS

High Med Low Weak Medium Strong 12 Back Limited Expansion

  • Look for ways to expand without

high risk; otherwise, minimise investment and rationalise

  • perations
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13 Target Market

‘Origination’

BD Effectiveness - Value Proposition

Proposition

  • Does it still

speak to our redefined target market?

  • Do we need

to reposition

  • urselves?

Marketing

  • Where is the

demand likely to come from post COVID?

  • In which sectors

will we see growth?

  • Which sectors

will decline?

  • Wil these trends

be temporary or permanent?

  • Redefine your

target market

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Sales Wins Premium Prices Loyalty

=

Value Proposition – what’s your USP?

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Features USPs Credentials £ Value

Getting your value proposition right in recessionary times is vital!

Benefit

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MATCHING TARGET MARKET AND VALUE PROPOSITION

HELPING YOU THRIVE IN A CHANGING WORLD 15

Market Value Proposition

Target Market

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16 Value Proposition Marketing Target Market Conversion Account Development Qualification

‘Origination’ ‘Sales Process’

Business Development Framework

1.Ensuring you generate more new business

  • pportunities

2.Increasing your conversion rates from prospect to paying customer 3.Considerations for price pressure and increasing profit-per-sale 4.How to grow accounts and account profitability.

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17 Value Proposition Marketing Target Market Conversion Qualification

‘Origination’ ‘Sales Process’

Qualification & Conversion

  • Qualification

criteria / scoring process?

  • How are

criteria prioritized?

  • Learnings

from previous losses?

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Qualification & Conversion

Resource Scale Profile Rationale Needs Proposition Profitability Conversion Process Risk KYC Relative Attractiveness Score x / 10 x / 10 x / 5 x / 5 x / 5 x / 5 x / 15 x / 15 x / 5 x / 5 x / 5 x / 15 %

Opportunity A 7 6 8 4 6 4 3 4 6 8 9 4 69 Opportunity B 6 5 6 5 3 8 8 8 3 4 8 8 72 Opportunity C

2

8 9 9 7 8 3 2 8 8 9 3 76 Opportunity D Opportunity E

10

10 5 5 5 5 15 15 5 5 5 15 100

As an example, below is scoring matrix with some weightings used for how different criteria are prioritised.

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19 Value Proposition Marketing Target Market Conversion Qualification

‘Origination’ ‘Sales Process’

Qualification & Conversion

Focus on opportunities/accounts that will deliver greatest longer-term growth potential (“Focus 80%

  • f resource on the 20% of opportunities that will

deliver 80% of value”)

  • Do we

measure our conversion rates on new business wins?

  • What about

existing clients and new assignments?

  • Efficient

conversion practices

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Price Pressure & Profit per Sale– Now More Than Ever

  • Current environment means that all businesses are considering costs and cash flow

management with intense scrutiny.

  • Offering discounts – will slowly erode margins (see example)
  • Be innovative and offer discounts/add scope in different ways
  • Examples could include:
  • Rebates
  • Bulk buying
  • Subscription model
  • Dynamic pricing
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Account Growth and Profitability

Value Proposition Marketing Target Market Conversion Account Development Qualification

‘Origination’ ‘Sales Process’

  • Active

management

  • f existing

accounts

  • What are our

client’s / customer’s key issues

  • Client /

customer segmentation via account planning framework

  • Issue-based

selling

“A 5% increase in customer retention can increase a company’s profitability by 25-95%” – Bain “Attracting new customers will cost your company 5 times more than keeping an existing customer”

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Swift BD action to be taken

In summary

  • Act fast and make important decisions
  • Define your target market now & evaluate where to focus (competitive position vs market

attractiveness)

  • Develop value propositions that speak to the market! Should be different for variety of

markets/sectors ( 5 key attributes)

  • Effective sales process where all opportunities are qualified (Sales process/continually

adapted to experiences) and conversion rates measured

  • Seek independent feedback (Voice of customer)
  • Innovative pricing to convert opportunities and maximise revenues/profit from existing

clients/customers (Sales/profitability review)

  • Account development (Account planning framework & segmentation)

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