De cisionI:Rec ognitio n O fN eeds VChange OverTim eIVIm ple men ta tio nIIIResol utio n O fConcern sIIEva luat io n O fOptio n sBuyer CycleCusto mer Decisio n P rocess大客戶銷售謀略 2003.10-11-10-12 Objective of Workshop Understand Characteristics of Major Account Selling Strategies in Whole Lifecycle, thus to + Shorten bid-to-win ratio + Shorten selling cycles + Minimize discounts and negotiated concessions + Establish clear, unique business value with the customers + Reduce selling costs through more effective sales strategies + Increase sales per employee - Develop expected relationship with the customers. Eg. Strategic Partnership etc. Agenda Day 1 + How the Customer Make Decisions + SPIN Question Strategy + Account Entry Strategy + Understand Your Customer & Their Business + How to Make Your Customers Need You Day 2 + Influence the customers choice + Differentiation & Vulnerability + Overcoming Final Fears + Sales Negotiation + How to Ensure Continued Success De cisionI:Rec ognitio n O fN eeds VChange OverTim eIVIm ple men ta tio nIIIResol utio n O fConcern sIIEva luat io n O fOptio n sBuyer CycleCusto mer Decisio n P rocess客戶是如何做決策的 How Customer Make Decisions The Research Base The Customer Decision Process Account Strategy in the Recognition of Needs Phase Account Strategy in the Evaluation of Options Phase Account Strategy in the Resolution of Concerns Phase Account Strategy in the Implementation Phase Summary Overview of Major Account Sales Strategy Sales Strategy should be about customers and how to influence them. + Understanding and Well Prepared are mandatory to form a effective sales strategy Customer Behavior goes through three distinct phases in making a major purchasing decisions + Recognition of Needs + Evaluation of Options + Resolution of Concerns A fourth phase, follow-up in implementation phases, if it is well handled, can generate significant additional sales opportunities. Each of four phases required a different set of strategies and skills. What is Sales Strategy & What is Major Account Sales Strategy + A way of thinking and directing your actions to effectively influence customer purchasing decisions. Focus on Understanding Customer Behavior Not Procedure or technique Major Accounts + 20/80 rules + New Customers + Potential Customers Exercise: A Typical ERP Deal Lifecycles What is typical ERP Deal Selling Cycles + Customer Decision Process Who is Major Account of ERP S/W + Traditional Mfg + Others Customer Decision Process Research Base Neil Rackham Huthwaite + 35,000 sales calls in 27 countries + 10,000 sales + SPIN (Situation, Problem, Implication, Need Pay-off) Decision I: Recognition Of Needs V Change Over Time IV Implementation III Resolution Of Concerns II Evaluation Of Options Buyer Cycle Customer Decision Process A Typical Purchase Decision New Purchase Request Of Procurement Department What A Procurement Manager Say: + Problem, Dissatisfaction, can not solve with existing equipment or supplies + Spec.; Objective; Must & Wants; Vendor Selection + If decision is big; carefully resolve all concern. Exercise 1. Procurement Process Read Appendix A: Procurement Process Do you know it before, and how you know which phase you are in while you bid, and your strategies on each phase. 10 minutes Account Strategy in the Recognition of Needs Phase The Most Effective Selling Strategy During the Phase: + To uncover dissatisfaction in the account and to develop that dissatisfaction until it reaches the critical mass. When dissatisfaction reaches a sufficient level of intensity or urgency, the account makes a decision to change. Success sales asks a lot of questions during sales calls than do their less successful colleagues Questioning Skills (SPIN) Account Strategy in the Evaluation of Options Phase The Most Effective Selling Strategy During the Phase: + To Centralize On Understanding, Influencing, and Responding to Customer Decision Criteria. Differentiate your solution with your competitors is one of your effective selling strategy. Common Faults during the period is failure to recognize that a shift has taken place in customer concerns. Not try to uncover customer guideline, or criteria, for making the decision. Account Strategy in the Resolution of Concerns Phase The Most Effective Sales Strategy During the Phase + To uncover and help resolve perceived risk Last minutes fears and concerns arises that can block the decision or cause customers to re-open discussions with competitors. A successful sales normally works to uncover and resolve issues that are troubling the customer, even if these issues are uncomfortable and difficult to discuss. Negotiation is key selling tool of the phase. Account Strategy in the Implementation Phase Most Effective Strategy of the Phase + Follow-up after post implementation leads to continued success. + Very Few major sales stop when the customer signs the contract. How to build up long term relationship with the customers? Think About How to Build Up Strategic Relationship with the Customer? Customer Decision Phases Decision Phase Typical Customer Concerns During the Phase Sign that the Phase is Over and the next phase are starting Common Strategies errors in this phase Recognition of Needs -How we a problem -How big is it -Does it justify actions Customer accepts that the problem is severe enough to justify changed and therefore decides to take actions Failure to investigate/develop customer needs Making product presentations too early Evaluation of Options -What criteria should we use in making a decision - Which competitor best meets our criteria? Customer has a clear decision mechanism in place and has used it to select 1 or more final contenders Failure to uncover customers criteria Little attempt to influence/change stated criteria Resolution of Concerns -What are the risks of going ahead? -What if it goes wrong? -Can we trust these people? Customer make the purchasing decisions Ignoring concerns in the hope theyll go away. Pressuring the customer to make a decision Implementation - Are we getting value from the decision? - How quickly will we see the results New needs and dissatisfactions arise Failure to treat implementation as a sales opportunities Failure to anticipate vulnerable implementation points De cisionI:Rec ognitio n O fN eeds VChange OverTim eIVIm ple men ta tio nIIIResol utio n O fConcern sIIEva luat io n O fOptio n sBuyer CycleCusto mer Decisio n P rocess強大的銷售工具 提問策略 準(zhǔn)備 SPIN Questioning Situation Questions + Questions that gather data and background facts. E.g: How many people do you employ? Whats your present ERP system? Problem Questions + Questions that uncover problems, difficulties and dissatisfactions. E.g: Are you happy with existing ERP system? Does the existing ERP system has reliability problems.? Implication Questions + Questions that explore the consequences or implications of customers problem E.g. Does this problem leads to increased costs As a result of the problem, do we get more down time. Need-payoff Questions + Questions that explore the value or usefulness of solving a problem Eg. Why is it so important to you.? Would it be useful if ? Implied Needs, Explicit Needs, Benefit, Advantage, Features Implied Needs + Statement by the customers about problems, difficulties or dissatisfactions with the existing situation. Eg. I always get behind schedule. We have been lost a lot of money in this area. Explicit Needs + Statements of a customers wants or intentions. Eg. What I need is I want some to Benefits + Statements which show how a product, a product feature or advantage meet explicit need which has been stated by the customer. Eg. You have said you need fast turnaround, we can give it to you by the end of the month Advantage + Statement showing how a product, product feature can be used or help the customer. Most advantages can be expressed in the form : because of feature, you can . Eg. Because of our ERP product finance module, you can get . Our new model can save additional 8% material cost. Features + Characteristics of a product or services Eg. This unit cost $400. This is a closed loop feedback system. SPIN Form Situation Question Problem Question Implied Needs Explicit Needs Implication Question Need-Payoff Question Benefits Advantage Feature Normal Sales Call Planning Form Situation: The background information I need before probing for the problem: - - Problems The difficulties the customer has that I could solve. - - - - - - Implications Knock on effects for each problem stated - - - - - - PayOf The Value to the customer of solving these problems. - SPIN Questioning Strategy Situation Question Problem Question Implication Question Need Pay Off Question Achieve fact finding objectives Have low selling impact Useful at focus of receptivity Achieve uncovering dissatisfaction objectives Have moderate selling impact Useful at focus of dissatisfaction Achieve Objective s of developing and channel satisfaction Have high selling impact Useful at focus of dissatisfaction and focus of power Achieve objectives of rehearsing and selectively channeling customer attention Have high selling impact Useful at focus of dissatisfaction and focus of power De cisionI:Rec ognitio n O fN eeds VChange OverTim eIVIm ple men ta tio nIIIResol utio n O fConcern sIIEva luat io n O fOptio n sBuyer CycleCusto mer Decisio n P rocess強大的銷售工具 理解你的客戶 準(zhǔn)備 Account Fundamental Ownership Location Corporation Actions Financial Performance Future Prospects Timing Organization Top management cadre Understanding Your Customers : Organisation Structure & Dynamics Objectives Purpose + Provide a framework for better understanding of the clients organisation and how they make decisions Output + Organisation Map & People Profiles Benefits + Improve your view into the clients organisation for improved relationship management + Develop relationships with the right people who can provide insight and direction Key Components of Understanding Customers Organisation Macro Formal Structure Political Structure Inner Circle Influence Networks Micro Coverage Status Decision Orientation Innovation / Change Maslows Hierarchy of Needs Physiological Safety Belonging Esteem Self-Actualisation Character Profile Maslow Adaptability Decision Orientation Levels of Contact Your Position Chen Yuan CEO # % B V E Maslows Hierarchy of Needs Physiological Safety Belonging Esteem Self-Actualisation SA : Self Actualisation E : Esteem B : Belonging S : Safety P : Physiological Mapping Needs SA : Self Actualisation E : Esteem B : Belonging CEO Senior VP Sales & Marketing Senior VP CFO VP Field Operations Marketing Director Director of R&D Director of Mfg. Director of IT Controller SA E SA B B SA E E B B Adaptability to Change - Technology Adoption Lifecycle Innovators Visionaries Pragmatists Conservatives Laggards Adaptability to Change Innovators Visionaries Pragmatists Conservatives Laggards Status Quo Reference Sites What They Want What They Buy Your Value Proposition Not to be left behind Evolution Solve Problems Revolution Recognition State of the art Trials Tests Customised Solution Total Solutions Industry standards at low price with no risk Enhancement of existing services Product excellence Innovation Future Competitive Advantage Return on Investment Guarantees Investment protection Mapping Adaptability to Change I : Innovator V : Visionary P : Pragmatist C : Conservative L : Laggard CEO Senior VP Sales & Marketing Senior VP CFO VP Field Operations Marketing Director Director of R&D Director of Mfg. Director of IT Controller SA E SA B B SA E E B B V V V P P I I L C C Decision Orientation “On what factors does our client base their decision on ?” Financial $ Technical T Relationship R Business B Mapping Decision Orientation B : Business R : Relationship F : Financial T : Technical CEO Senior VP Sales & Marketing Senior VP CFO VP Field Operations Marketing Director Director of R&D Director of Mfg. Director of IT Controller SA E SA B B SA E E B B V V V P P I I L C C B B B B R T F F T R Level of Contact No Contact ! Brief Contact % Multiple Contacts * In-Depth “How often do we meet with our client ?” Mapping Contact Coverage ! : No Contact % : Brief Contact * : Multiple Coverage : In-Depth * CEO Senior VP Sales & Marketing Senior VP CFO VP Field Operations Marketing Director Director of R&D Director of Mfg. Director of IT Controller SA E SA B B SA E E B B V V V P P I I L C C B B B B R T F F T R ! ! ! ! ! % % ! ! % Your Position Enemy X Non- Supporter “Where are we with the client ?” Mentor M Mapping Our Position X : Enemy : Supporter M: Mentor CEO Senior VP Sales & Marketing Senior VP CFO VP Field Operations Marketing Director Director of R&D Director of Mfg. Director of IT Controller SA E SA B B SA E E B B V V V P P I I L C C B B B B R T F F T R ! ! ! ! ! % % ! ! # Gate Keeper - Influencer - Decision Maker Hardest way to allocate purchase channel for a new innovative products and services in Selling Cycles E.G. Mfg. Barcode Printing Outsourcing Solution Success sales normally find a focus (sponsor) within account helping him move towards a point from which they should begin developing needs. 3 focus model for successful people to find sponsors The focus on receptivity The focus on dissatisfaction The focus on power Where is decision maker Exercise + Who is the decision maker for ERP project bid. CEO CFO CTO or others. What is your passing experience to connect to decision maker? Entry Strategies Successful people tended to seek a sponsor + Sponsor An Individual within the account who helped them, advised them, and if necessary, represented them in place where they could not gain access Not only individual, But more a particular function or area of an account as sponsor. Focus + Focus A Focus Within Account a person, a committee or a department who would help them move toward a point from which they could begin developing needs The Three Focus Points of An Entry Strategy (I) Sales People normally could find sponsors from 3 focus points: + The focus of receptivity: the point in an account where there were receptive people who were prepared to listen sympathetically + The focus of dissatisfaction: the point in an account where there were people unhappy with the present system or supplier. + The focus of power: the elusive point in an account where there were people able to make decision. Especially for account, no purchasing channel existed. Entry Strategy Model Focus of Receptivity Focus of Dissatisfaction Focus of Power Leads you to Leads you to The Individual, functional area or location most likely to -Listen receptively - Provide you with information The Individual, functional area or location most likely to - Perceive problems and dissatisfaction in an area where you can help. The Individual, functional area or location most likely to - Approve action - Prevent action - Influence action The Focus of Receptivity Easiest starting point for your account penetration + The reason why they want to listen Objective of sales to focus on receptivity + Find out information + Gain access to focus of dissatisfaction Danger of Focus of Receptivity Do not misinterpreted the interest as progress + Remember your strategic objective is Information & Access Danger of distraction Danger of misinterpretation Danger of presentation Moving From Receptivity to Dissatisfaction Objective of Focus on Receptivity + Gain access to person or function who probably not satisfied Use SPIN Situational question E.G Do you know anybody in your company whos