2. Defining and Implementing a ―Solution Selling‖ Sales Process
How to improve your sales professionals‘ skills in four critical areas
– Align your selling activities with how your prospects buy Technology & Services
– Define a sales process that reflects what is important to the buyer, not the seller
– Learn what is important to the buyer and when, in the sales cycle
– Make how you sell, not just what you sell, be your competitive advantage
– Prospecting: How to turn the “not looking” into active prospects
– Negotiation: Closing and account management tactics
– Need Development: Uncovering buyers’ hidden needs
– Control: Qualification and process control of the sales cycle
2
3. DEFINITION OF A PROCESS
1. A set of repeatable interrelated activities that can be
measured.
2. Each activity has a deliverable that feeds another
activity in the process.
3. Each deliverable can be assessed so that adjustments
can be made to either the activities, or to the process
itself.
3
4. SALES PROCESS OVERVIEW
Sell Cycle Beginning Points
Target New Opportunities Pre-call Planning and Research People Actively Looking
Demand Creation Strategies Stimulate Curiosity and Interest Opportunity Assessment
Competitive Strategy
Establish Critical Business Issue Yes
Create Situational Fluency Tools Reengineer Buying Vision
(Pain) / Diagnose Reasons
with Differentiators
No
Provides Proof and Map Organizational Impact –
Sponsor Accepts Establish Buying Vision
Yes
No
Negotiate Access to Power Sponsor?
Power Sponsor
Sales Process Management
Yes • Process Tools - letter edits,
No call debriefing, conversation logs
Develop/Manage • Pipeline Milestones
Prospect Evaluation Plan • Pipeline/Activity Summary
Example Steps: • Opportunity-based Forecasting
•Analysis of Existing Process • Talent & Skill Assessment
Create Success Stories •Pain Chain • Success Criteria
•Beneficiary Analysis
•Proof of Capabilities
•Transition Plan
Establish & Measure Success •Value Justification/ROI
Criteria •L/T/A Approval Process
•Content Review (Draft) of Proposal Review
Yes Negotiation
Yes/No
Implement as Agreed Buying Decision Win/Loss
Analysis
4
5. PIPELINE MILESTONES
T TERRITORY In assigned territory
Meets marketing criteria
QUALIFIED
S SUSPECT
Vision-in-Process
Initial written follow-up
Pain admitted by sponsor
Buying vision for sponsor
QUALIFIED
D SPONSOR
Sponsor agreed to explore
Access to power negotiated
Agreed to above in writing
Access to power person
QUALIFIED Pain admitted by power person
Buying vision for power person
C POWER Power person agreed to explore
SPONSOR Evaluation plan proposed
Evaluation plan agreed on
Evaluation plan completed
DECISION Pre-proposal review conducted
B DUE Asked for the business
Proposal issued, decision due
Evaluation plan completed
Pre-proposal review conducted
PENDING
A SALE
Asked for the business
Verbal approval received
Contract negotiation in process
W WIN Signed documents
L LOSS Update prospect database
5
6. EVOLUTION OF THE METHODOLGY
Xerox Professional Selling Skills
• Structured, manipulative
Consultative Selling (XCS 1976)
• Is there a business reason to change?
• Support people part of sales team
SPIN (Xerox & XCS 1980)
• Research-based model
• Assumes buyer understands product, or ...
• Relies on product presentation to create vision
Solution Selling® (1983) – present
• Buyer does not understand product or service
• Buyer does not know how to solve problem
• Seller becomes buying facilitator
6
7. HIGH DIFFICULTY SELLING
Conceptual / intangible
Difficult to learn and explain
Complex sale with more than one buyer
Non-expert buyer
Risk-averse buyer
User can‘t buy - buyer doesn‘t use
Perceived as a commodity
Perceived as expensive
Perceived as complex
Unlimited applications
First to market / late to market
Heavy competition
Requires major change by buyer
Small organization selling to large
7
8. BEHIND THE AMORPHOUS CLOUD
―Wall Street‖
CEO
VP VP VP VP
Marketing Sales Production Finance
$ ―The Budget Line‖
$
Quality Director
Manager MIS
8
9. SITUATIONAL FLUENCY
Integration of knowledge and skills by the seller
for “eagle performance”
Situation Capability
Knowledge Knowledge
How do we
Integrate?
People Selling
Skills Skills
WHAT BUYERS SHOULD EXPECT FROM SELLERS
9
10. ―EAGLES AND JOURNEYMEN‖
20%
________ Eagles
Unconscious Strengths:
Competents • Intuitive Competence (―wing it‖)
• Ability to converse (―interactive‖)
• Ability to ask intelligent questions
Weaknesses:
• Not open to process (―wing it‖)
• Often poor managers (―wing it‖)
• Performance can be inconsistent
80%
________ Journeymen
Strengths:
1. Road Map • Appreciate the value of process
• Often good managers (with a process)
2. Toolkit • Can use process to outperform Eagles
3. Proactive Weaknesses:
Management • Need training, structure and process
• Are more comfortable presenting (―batch‖)
• Difficulty in asking questions
10
11. NO DECISION, INC. **
YOUR BIGGEST COMPETITOR
NDI
No Pain
Your
No Vision Company
No Value 15%
No Power Your Named
Competitor
No Control 15%
*Warren Culpepper,
The Culpepper Report
11
12. SOME BASIC PRINCIPLES
• No pain, no change
• Three levels of buyer need
• Diagnose before you prescribe
• Pain flows throughout an entire organization
• “Solution” = Buying Vision
12
13. CRITICAL BUSINESS ISSUE – ‗PAIN‘
• Eroding: profits, market share, service, quality, growth rate, etc.
• Increasing: costs, competition, errors, returns, employee, turnover, etc.
• Government: EPA, FTC, FCC, OSHA, FDA, IRS, ISO 9000, DEA, etc.
Common Denominator? $$$$$
13
14. THREE LEVELS OF NEED
Level Three:
Vision of a Solution
Level Two:
Pain
Level One:
Latent Pain
14
15. ORGANIZATIONAL QUESTIONS
Senior Executives
Operational Vision
+
Transition Vision
+
―When will it pay for itself?‖
Line Vice Presidents Support Functions
Operational Vision Transition Vision
―What capabilities do we need ―How do we get from where
to meet our business goals?‖ we are today to where the
operational vision is fully
implemented?‖
1) Clarify / define operational capabilities
2) Justify operational capabilities
3) Define transition capabilities / responsibilities
4) Justify support services
15
16. WEAVING THE PAIN CHAIN™
Job Title: CEO
Pain: Share price decreasing
Reasons: Eroding profits
Job Title: VP Finance
Pain: Eroding profits
Reason: Missing new account sales targets
Reason: Losing shelf space
Job Title: VP Marketing RSI Features
Pain: Lost shelf space due to fulfillment problems
Reasons: 1. Unfulfilled orders 1. Web ordering
2. Customers not offered alternatives 2. Prompted alternatives
3. Customers not aware of promotions 3. Broadcast email
Job Title: VP Sales
Pain: Missing new account sales targets
Reasons: 1. Customers must order from salespeople 1. Web ordering
2. Customers not aware of promotions 2. Broadcast email
3. Customers lack sales attention 3. Web visitor monitoring
4. Too much time w/existing customers 4. Remote customer coverage
16
18. TYPES OF APPROVAL
•Sponsor
- Information
- Internal Selling
- Access to power
•Power Sponsor (aka “VP of Change”)
- Enough clout (regardless of title) to get if if they want it, even if unbudgeted
- Will take you anywhere in the organization you need to go
- Willing to negotiate the steps leading to a buying decision
•End user
- Any person in prospected organization who uses your product or service
- Could also be a beneficiary
•Beneficiary
- Any person in prospect organization who is positively impacted by the capabilities
your product or service provides (anyone on the Pain Chain™ )
•Adversary
•Legal/technical/administrative
•Financial
- He or she in the prospect organization who can authorize spending money to buy
your product or service
- Should be a beneficiary on the Pain Chain™
18
19. KEY SELLING SKILLS
D
• Prospecting I
S
A
• Need development Q
L - Vision Creation U
- Vision Reengineering
I A
• Proof management L
G
I
N • Buying process qualification F
M I
• Buying process control
E C
A
N • Negotiating
T
T I
• Expectation management
O
N
19
20. SHIFTING BUYER CONCERNS
BUYING PHASES
PHASE 1 PHASE II PHASE III
(Needs) (Proof) (Risk)
Risk
Needs
Cost Price
Proof Needs
Risk
Proof
TIME
20
21. PHONE PROSPECTING EXAMPLE
Pre-Call Preparation:
Reference story:
Situation: Senior Sales Executive of Software Company
Critical Issue: Missed Revenue Projections
Reasons: Close Dates Slip
Vision:
We provided:
Result:
Phone Script:
This is Davey Jones with The Pinnacle Group. You and I haven‘t
spoken before, but we have been working with Software Companies
for the last 8 years. One of the chief concerns we are hearing
from other VP’s of Sales is their frustration (difficulty) with the
inability of sales reps to forecast accurately resulting in missed revenue
targets. We have been able to help our customers deal with this
issue and I would like an opportunity to share with you how.
Are you curious?:
When making cold phone calls, you have very limited time to get attention and create interest. Notice we do not ask the
prospect to listen to our company history, to buy anything, for an appointment, or to admit pain. All we are asking is ―Are
you curious?‖ Curious about what? About how someone else in a similar situation (a peer) has already figured out how to
solve a problem that you might have or at least relate to. Once curiosity is admitted, then you have the options of booking an
appointment or selling further on the phone.
21
22. SAMPLE PROSPECTING LETTER
Mr. Joseph Daily January 31, 2000
Senior Executive
XYZ Manufacturing
Seattle, WA
Dear Mr. Daily:
RSI is in the business of helping our customers increase their revenues by helping them implement e-Commerce applications.
We have been working with manufacturing companies since 1996. Our clients include Tonka Toys, Dell Computers and SNAP
ON Tools. Some of the chief concerns we hear lately include:
•Fulfillment problems causing a loss of premium shelf space
•Loss of customers to competitors that are ―easier to do business with‖
•Salespeople spend too much time with existing customers and not enough finding new ones
We have been able to help our customer successfully deal with these and other issues and I would like an opportunity to share
with you how. If you are interested in learning how we have helped other senior executives solve some very challenging
issues, please call me 555-215-1111 and I will provide you with more information.
Sincerely,
RSI Salesperson
22
24. 9 BLOCK VISION PROCESSING MODEL™
VISION CREATION PROMPTER
PAIN
Diagnose Explore Visualize
Reasons Impact Capabilities
Option I benefit & close.
R1 (1) I1 (4) C1 (7) Step 4: “(Person’s name),
“Besides yourself, “What is it going to I’m reasonably sure we can
“Tell me about it, WHO in your take for YOU to be provide you those
Open what is causing you organization is able to (achieve capabilities. I want to check
to have this .... impacted by this goal)?” some things with my
(repeat pain)?” (repeat pain), and resources.”
HOW are they “Could I try a few ideas Step 5: “If they bear me out,
impacted?” on you?” will you take a serious look
at (company name)?”
R2 (2) I2 (5) C2 (8) (Get buyers agreement.)
“Is it because...?” “Is the (pain)causing ? “What if there were a
Control 1… If so, would the (title) be way…when, who,
2… concerned…? what...would that help? OR
3…. What if you were also
able to…?”
Option II benefit & close.
#%$ #%$ So? $?
Step 4: “(Person's name), I'm
confident that we can give
R3 (3) I3 (6) C3 (9) you those capabilities and I
would like the opportunity to
“From what I just “From what I just
“So, the reasons for prove it to you.” (Pause and
heard...(Repeat the heard, if you had the
your (repeat pain) ability to ... (summarize
read buyer reaction.)
WHO and HOW), it
Confirm are ...?”
sounds like this is not capability visions) Step 5: “Would you give me
just your problem, but a could you (achieve that opportunity by taking a
______________ goal)?” serious look at (company
problem!” name)?”
(Get buyers agreement.)
BUYING VISION
[Summarize/Confirm VALUE]
24
25. PAIN SHEET™ —Situational Fluency Prompter™
Pain: Missing new account sales targets
Title & Industry: VP Sales, Fortune 1000 Company
Our Capability: e-Commerce Applications
Reasons (R2) Impact (I2) Capabilities (C2)
Is it because?…Today?… Is missing new account sales What if?…Are you also looking to?…
1. salespeople spend too much time servicing targets causing? 1. When: wanting to place orders
customers? % time prospecting? Who: your customers
• are customers required to place all • Salespeople to make less than they What: could view inventory levels, place an
orders via their assigned salesperson? % anticipated? order and have it allocated and confirmed,
• Are many sales calls just taking orders? • Salesperson morale/turnover? all over the internet using any standard
• Does your competition offer alternative Are customers, HR staff, impacted? browser?
ways for them to order?
• Loss of shelf space to competition? 2. When: offering new promotions
2. customers are unaware of promotions ? • Wasted advertising/promotional dollars? Who: your salespeople
• How do salespeople alert prospects & Is the VP Marketing concerned? What: could create personalized messages
customers of new promotions? % and broadcast them to all of their customers
• Are new customers more likely to buy if Missed revenue targets? %? $? via email?
they are aware of promotions? • Lower profits? %? $?
Is the VP Finance impacted? 3. When: your customers have questions
3. salespeople spending time answering Who: they
customer FAQs? #? %? • Impact on growth? What: could click on an FAQ menu and if
• How do salespeople know when • stock prices? %? $? necessary select an “I need help” option to
customers need help? Have questions? Is the CEO affected? be connected to someone in your sales
• Do customers leave voice mail for department?
your salespeople? #
4. salespeople fail to or forget to ask 4. When: visiting your website
customers to provide referrals or leads? Who: your customer
What: could be prompted to submit referrals
in exchange for discounts or promotional
items?
25
26. VIP LETTER - TO POTENTIAL SPONSOR
Qualification Components
Mr. Steve Jones 1. Pain
Vice President Sales
ABC Toy Company 2. Reasons and measurement
3. Buying Vision + value
Dear Steve,
Thank you for your interest in RSI. The purpose of this letter is to summarize my 4. Agreement to explore further
understanding of our meeting and our action plan. In our discussion, you told me
your primary critical issue is missing new account sales targets because your 500 5. Bargain for access to power
salespeople are spending all their time servicing existing customers 6. Proof proposal
We also discussed the following
• Reasons for you missing your sales targets
• Capabilities you said you needed
• Our next steps
Reasons you are missing your sales targets
Reasons we discussed are your customers are required to place all orders via their assigned salesperson. Salespeople are calling
on customers every other week and your customers can order from your competition on the internet whenever they want to. Your
salespeople are spending all their time servicing existing customers and not developing new ones.
Capabilities you said you needed
You said if you had the following capabilities, your salespeople would have the time to develop new name customers, allowing
you to achieve your sales targets:
• whenever they want to order, your customers could view available stock, place their order, have it allocated
and confirmed using any standard browser.
• when offering new promotions, your salespeople could create personalized messages and broadcast them to all
their customers via email.
• when customers have questions, they could click on an FAQ menu select an “I need help” button to be connected
to someone in your sales department if necessary.
Our next steps
You agreed to take a serious look at RSI and said if we succeed in proving we can give you these capabilities, you will introduce
me to Jim Smith, your VP of Finance. You mentioned Jim is not happy with the impact of the order fulfillment problem on revenue
and profits.
I would like to propose arranging a meeting with another VP Sales who has implemented an e-Commerce application with our
help. I am confident you will like what you see and introduce RSI to the rest of your organization. I’ll call you Monday to discuss it
further.
Sincerely,
Bill Hart
26
27. Key Players
Sponsor
- Information
- Internal selling
- Access to power(Negotiate as necessary)
Power Sponsor
- Enough clout to get it if they want it, regardless of title
- Can take you anywhere in the organization you need to go
- Can negotiate the steps leading to a buying decision
27
28. ACCESS TO POWER
CLUES FOR FINDING POWER PEOPLE
―What is this
investment going
to do for me?‖
Power People
ask: ―How soon can I
achieve a return?‖
Non-Power ―How much does
People ask: it cost?‖
―How difficult is
it to install?‖
―Features‖?
28
29. ACCESS TO POWER
SHORTEN SALES CYCLE: APPROACH
Start at Power Sponsor using targeted
message
Or….
Create a compelling reason for the Sponsor
to grant you access to the Power Sponsor
Bargain with the Sponsor: ―quid pro quo‖
(give to get)
29
30. TIME ALLOCATION BY PHASE
SOLUTION SALE
Develop needs Present Products Close
FEATURE SALE
30
31. The Funnel
T
Selling Skills TERRITORY Process Deliverable
VIP Pain
Letter
Prospecting
Qualification
Disqualification S
SUSPECT
VIP Sponsor Letter
Need Development
Proof Management
Access to Power D
Qualification
Disqualification SPONSOR
VIP Power
Need Development Sponsor Letter
Proof Management C
Qualification Completed Plan
Disqualification POWER
Process Control SPONSOR
Negotiating
Negotiation A Worksheet
Process Control VERBAL
Signed contract
Expectation W
Management CUSTOMER
31
32. Michael Nitso
7510 245th Way NE
Redmond, WA 98053
michaelnitso@yahoo.com
425.208.2222
32
