1. Targets and Tactics Lessons Learned - Chris Powers - NERCOMP

SALES TARGETS & TACTICS
How the Other Side Plays the Pricing Game
Session Review
Sales organizations use highly disciplined and tightly aligned Strategic Selling methodologies to deliver
predictable and profitable customer revenues to their firms. The motivations, behaviors, and specific deal
characteristics must be fully understood to create a viable long-term buying strategy. The N-BAN framework
outlines the goals and motivations at each stage of the sales cycle. Through careful planning, and regular
inspection, companies can effectively counteract and outmaneuver the Vendor’s sales efforts. The V.A.L.U.E.
Guide Methodology is a tool to systematically build a viable buying campaign to level the playing field with
strategic IT suppliers and maximize solution value to the buyer.
Strategic Selling
Key Concepts
Pricing is not determined by a supplier’s price
book but by the perceived customer value
Sales teams are masters at “setting up” the
negotiation more than actual negotiation
Shift focus from late execution to early planning
Supplier sales organizations execute tightly
aligned strategies, customers must develop a
strategy to counteract their efforts.
Raising Awareness
4 Sales Targets & Tactics
4 Meet Your Counterpart
4 Managing Leverage & Uncertainty
4 IT Services Sales Strategies
Building Skill Sets
4 Executing Complex ELAs
4 Controlling the Compelling Event
4 Category Workshops
4 Controlling the Negotiation
Developing Leadership
4 V.A.L.U.E. Guide Fundamentals
4 Battling Supplier Incumbency
4 Preparing the Deal
4 IT Services Best Practices
© 2013 ClearEdge Partners, Inc. Confidential & Proprietary Information Do Not Distribute.

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© Copyright 2013, ClearEdge Partners, Inc. Confidential & Proprietary Information. Do Not Distribute.
© Copyright 2013, ClearEdge Partners, Inc. Confidential & Proprietary Information. Do Not Distribute.
© Copyright 2013, ClearEdge Partners, Inc. Confidential & Proprietary Information. Do Not Distribute.
© Copyright 2013, ClearEdge Partners, Inc. Confidential & Proprietary Information. Do Not Distribute.
SALES TARGETS & TACTICS
How the Other Side Plays the Pricing Game
The Pricing Game: How did we get here?
VALUE BASED PRICING
Discount Level
SALES TARGETS & TACTICS
The Pricing Game
ORACLE CUSTOMER EXPERIENCE
Average Discount 73%
Oracle
“Our job is to figure out what we have to bid to win the deal. No magic here.”
— Oracle CEO Larry Ellison, testifying In U.S.A. vs. Oracle Corporation
1. Introduction to the Pricing Game and Value Based Pricing Systems
2. Sales teams reinforce a deliberate lack of transparency in IT Pricing
3. Supreme Court Case example of Value Based Pricing Systems at work
4. Key deal characteristics that determine value and affect pricing
n
Competition
n
Compensation Models
n
Street Pricing
n
Revenue Recognition
5. Case Study: Output of Value Based Pricing systems from a client survey
Sales Systems: How are sales programs built?
STRATEGIC SELLING PROCESS
NEEDS ANALYSIS
N
Shape & Win
B
DIVIDE & CONQUER
BUDGETS
AGENDA SETTING
A
SALES TARGETS & TACTICS
Neutralize Buyers
Sales Systems
NEGOTIATIONS
N
Strategic Selling Tools: How are they winning?
FIVE SALES STRATEGIES
Frontal
Flank
Fragment
Fortify
Feign
SALES TARGETS & TACTICS
Strategic Selling Tools
1. Compelling Event is the single greatest determinant of a client’s price
2. Compelling Event: What are you trying to do? Why? How bad does it hurt?
3. Theory behind the value of sales targets inside buying organizations
4. Overview of the motivations of sales teams and sales management
5. Sales strategies drive new marketing strategies to support their unified efforts
6. Contrast the strengths of N-BAN vs. common just-in-time procurement
7. Sales training and sales systems provide extremely high ROI
1. Introduction to the 5 Sales Strategies employed by suppliers
Direct Strategy
Indirect Strategy
n
Frontal – Take deal off street
n
Feign – Delay
n
Fragment – Foot in the door
n
Fortify – Defend the turf
n
Flank – Change the ground rules
2. One of the primary goals of sales teams is to make the negotiation a non-event
3. Sales Management is hyper focused on driving certainty by uncovering information
4. Complex sales tools developed to monitor progress across repeatable process
5. Sales systems assess opportunity and drive predictable revenue streams and risk
Winning the Pricing Game: Where do we go from here?
Sourcing Activities
Define Business Case
Define Sourcing Strategy
Develop Action Plan
Complete Analysis
Negotiate Contract
Vendor Management
Time Allocation After
PLAN
BUILD
EXECUTE
SALES TARGETS & TACTICS
Winning the Pricing Game
LATE EXECUTION TO EARLY PLANNING
New Approach
1. Focus on Planning and analysis
2. Execution on sourcing strategy,
market intelligence, companydriven
initiative
3. Sourcing provides early crossfunctional
strategic leadership
for IT and Business
1. Neutralize strategic selling strengths with strategic playbook
n
Focus on incumbents
n
Identify & Develop Plan Bs
n
Identify Pricing Gap
n
Set up plan to execute
2. Identify critical information and develop a plan to control the Compelling Events
3. Shift balance from late execution to early planning
4. Use checklist to assess and monitor activities, like the V.A.L.U.E. Guide to leverage
strengths and improve weaknesses
© 2013 ClearEdge Partners, Inc. Confidential & Proprietary Information Do Not Distribute.