1. Targets and Tactics Lessons Learned - Chris Powers - NERCOMP
1. Targets and Tactics Lessons Learned - Chris Powers - NERCOMP
1. Targets and Tactics Lessons Learned - Chris Powers - NERCOMP
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SALES TARGETS & TACTICS<br />
How the Other Side Plays the Pricing Game<br />
Session Review<br />
Sales organizations use highly disciplined <strong>and</strong> tightly aligned Strategic Selling methodologies to deliver<br />
predictable <strong>and</strong> profitable customer revenues to their firms. The motivations, behaviors, <strong>and</strong> specific deal<br />
characteristics must be fully understood to create a viable long-term buying strategy. The N-BAN framework<br />
outlines the goals <strong>and</strong> motivations at each stage of the sales cycle. Through careful planning, <strong>and</strong> regular<br />
inspection, companies can effectively counteract <strong>and</strong> outmaneuver the Vendor’s sales efforts. The V.A.L.U.E.<br />
Guide Methodology is a tool to systematically build a viable buying campaign to level the playing field with<br />
strategic IT suppliers <strong>and</strong> maximize solution value to the buyer.<br />
Strategic Selling<br />
Key Concepts<br />
Pricing is not determined by a supplier’s price<br />
book but by the perceived customer value<br />
Sales teams are masters at “setting up” the<br />
negotiation more than actual negotiation<br />
Shift focus from late execution to early planning<br />
Supplier sales organizations execute tightly<br />
aligned strategies, customers must develop a<br />
strategy to counteract their efforts.<br />
Raising Awareness<br />
4 Sales <strong>Targets</strong> & <strong>Tactics</strong><br />
4 Meet Your Counterpart<br />
4 Managing Leverage & Uncertainty<br />
4 IT Services Sales Strategies<br />
Building Skill Sets<br />
4 Executing Complex ELAs<br />
4 Controlling the Compelling Event<br />
4 Category Workshops<br />
4 Controlling the Negotiation<br />
Developing Leadership<br />
4 V.A.L.U.E. Guide Fundamentals<br />
4 Battling Supplier Incumbency<br />
4 Preparing the Deal<br />
4 IT Services Best Practices<br />
© 2013 ClearEdge Partners, Inc. Confidential & Proprietary Information Do Not Distribute.
100%<br />
90%<br />
80%<br />
70%<br />
60%<br />
50%<br />
40%<br />
30%<br />
© Copyright 2013, ClearEdge Partners, Inc. Confidential & Proprietary Information. Do Not Distribute.<br />
© Copyright 2013, ClearEdge Partners, Inc. Confidential & Proprietary Information. Do Not Distribute.<br />
© Copyright 2013, ClearEdge Partners, Inc. Confidential & Proprietary Information. Do Not Distribute.<br />
© Copyright 2013, ClearEdge Partners, Inc. Confidential & Proprietary Information. Do Not Distribute.<br />
SALES TARGETS & TACTICS<br />
How the Other Side Plays the Pricing Game<br />
The Pricing Game: How did we get here?<br />
VALUE BASED PRICING<br />
Discount Level<br />
SALES TARGETS & TACTICS<br />
The Pricing Game<br />
ORACLE CUSTOMER EXPERIENCE<br />
Average Discount 73%<br />
Oracle<br />
“Our job is to figure out what we have to bid to win the deal. No magic here.”<br />
— Oracle CEO Larry Ellison, testifying In U.S.A. vs. Oracle Corporation<br />
<strong>1.</strong> Introduction to the Pricing Game <strong>and</strong> Value Based Pricing Systems<br />
2. Sales teams reinforce a deliberate lack of transparency in IT Pricing<br />
3. Supreme Court Case example of Value Based Pricing Systems at work<br />
4. Key deal characteristics that determine value <strong>and</strong> affect pricing<br />
n<br />
Competition<br />
n<br />
Compensation Models<br />
n<br />
Street Pricing<br />
n<br />
Revenue Recognition<br />
5. Case Study: Output of Value Based Pricing systems from a client survey<br />
Sales Systems: How are sales programs built?<br />
STRATEGIC SELLING PROCESS<br />
NEEDS ANALYSIS<br />
N<br />
Shape & Win<br />
B<br />
DIVIDE & CONQUER<br />
BUDGETS<br />
AGENDA SETTING<br />
A<br />
SALES TARGETS & TACTICS<br />
Neutralize Buyers<br />
Sales Systems<br />
NEGOTIATIONS<br />
N<br />
Strategic Selling Tools: How are they winning?<br />
FIVE SALES STRATEGIES<br />
Frontal<br />
Flank<br />
Fragment<br />
Fortify<br />
Feign<br />
SALES TARGETS & TACTICS<br />
Strategic Selling Tools<br />
<strong>1.</strong> Compelling Event is the single greatest determinant of a client’s price<br />
2. Compelling Event: What are you trying to do? Why? How bad does it hurt?<br />
3. Theory behind the value of sales targets inside buying organizations<br />
4. Overview of the motivations of sales teams <strong>and</strong> sales management<br />
5. Sales strategies drive new marketing strategies to support their unified efforts<br />
6. Contrast the strengths of N-BAN vs. common just-in-time procurement<br />
7. Sales training <strong>and</strong> sales systems provide extremely high ROI<br />
<strong>1.</strong> Introduction to the 5 Sales Strategies employed by suppliers<br />
Direct Strategy<br />
Indirect Strategy<br />
n<br />
Frontal – Take deal off street<br />
n<br />
Feign – Delay<br />
n<br />
Fragment – Foot in the door<br />
n<br />
Fortify – Defend the turf<br />
n<br />
Flank – Change the ground rules<br />
2. One of the primary goals of sales teams is to make the negotiation a non-event<br />
3. Sales Management is hyper focused on driving certainty by uncovering information<br />
4. Complex sales tools developed to monitor progress across repeatable process<br />
5. Sales systems assess opportunity <strong>and</strong> drive predictable revenue streams <strong>and</strong> risk<br />
Winning the Pricing Game: Where do we go from here?<br />
Sourcing Activities<br />
Define Business Case<br />
Define Sourcing Strategy<br />
Develop Action Plan<br />
Complete Analysis<br />
Negotiate Contract<br />
Vendor Management<br />
Time Allocation After<br />
PLAN<br />
BUILD<br />
EXECUTE<br />
SALES TARGETS & TACTICS<br />
Winning the Pricing Game<br />
LATE EXECUTION TO EARLY PLANNING<br />
New Approach<br />
<strong>1.</strong> Focus on Planning <strong>and</strong> analysis<br />
2. Execution on sourcing strategy,<br />
market intelligence, companydriven<br />
initiative<br />
3. Sourcing provides early crossfunctional<br />
strategic leadership<br />
for IT <strong>and</strong> Business<br />
<strong>1.</strong> Neutralize strategic selling strengths with strategic playbook<br />
n<br />
Focus on incumbents<br />
n<br />
Identify & Develop Plan Bs<br />
n<br />
Identify Pricing Gap<br />
n<br />
Set up plan to execute<br />
2. Identify critical information <strong>and</strong> develop a plan to control the Compelling Events<br />
3. Shift balance from late execution to early planning<br />
4. Use checklist to assess <strong>and</strong> monitor activities, like the V.A.L.U.E. Guide to leverage<br />
strengths <strong>and</strong> improve weaknesses<br />
© 2013 ClearEdge Partners, Inc. Confidential & Proprietary Information Do Not Distribute.