Make Winning a Habit [с таблицами]
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Additionally, R.A.D.A.R. is a dynamic planning process to help you develop strategies and plans early in the sales process and revise them late in the process, when things turn emotional and political. In fact, how well and how quickly you review and revise your plan is more important than the perfection of the initial plan.
1. Link solutions to the prospect’s pain — for greater value.
2. Qualify the prospect — for best resource utilization.
3. Build competitive preference — by differentiating your solution.
4. Determine the decision-making process — for driving strategy.
5. Sell to power — by finding the key to buyer politics.
6. Communicate the strategic plan — for effective team selling.
An opportunity management process is for winning competitive evaluations either in existing accounts or in new-name prospects. Investing in account management is done to make opportunity management either easier or unnecessary by winning the evaluation before it begins.
When managing large, strategic accounts, you want to maximize the revenue, relationships, and “referenceability” potential based on the account segmentation you have determined is best for your company strategy.
The methodology that follows includes the best practices that we have seen and produces an account management map to effectively sell between the sales. These elements are not sequential but rather form a planning loop—which should be reviewed at least quarterly—and are often executed simultaneously.
Penetrate
Penetrating an account may be achieved in several ways: through winning the first piece of business in a competitive evaluation, as a result of demand-creation selling rather than demand-reaction selling, through another business partner or division, or through corporate headquarters that results in a client-vendor relationship of some sort.
Once you have penetrated the account and won the business, you have to be ready to deliver. The first piece of business is usually based on price, proposal, and product.
Demonstrate
Clients often take credit for successes and blame vendors for failures. You must demonstrate your value by going back to the client and documenting the effects of having chosen your organization and solution. What outcomes, benefits, metrics, and gains have been achieved by having used your firm in the first place? Clients rarely write a paper that describes how wonderful a vendor is. You have to do that yourself. But make sure that you can back it up. And if you haven’t delivered value, then that becomes your strategy — account repair.
Evaluate
Segmenting accounts for future investment is a critical step in account management. It’s a waste of time to try to partner or earn preferred partner status with everyone. Some company cultures are that of a commodity buyer. They always have been and always will be, and it will only change at the top. In this case, you need to evaluate whether you should invest additional resources in this account in an effort to gain preferred vendor status or should you stay on a transactional level.
I once had an opportunity to sell to Pepsi, one of our competitor’s best customers. They called me and said that they wanted a national account agreement with us. I was young and excited and flew out to meet with them. I asked them, “What does it mean to be your partner?”
They said, “You have to offer us the same discount your competitor offers.”
In return for the discount, I asked them if they would put us on a short list for future purchases so we wouldn’t have to fight for every piece of business. I also asked them to promise us a yearly meeting with their IT department. They said “no” to both. They wanted a 50 percent discount just for the privilege to compete.
I walked away.
We decided not to be their partner, but to go after other pieces of the business at the local level. As it turned out, our competitor didn’t spend much time on the account because the discount was so great. We stayed at the transactional level and did fine. If corporate couldn’t help us, they weren’t going to hurt us.
Radiate
If you decide to invest in growing an account, you need to radiate to power sponsors early in the game. Radiate from those who know you and like you to those who need to know you and like you — before the next formal buying process breaks out. Use one executive sponsor to take you to another. Ask each who else in his or her area/industry you can be doing this for.
Unfortunately, too many people either get too focused on delivery of the first project to radiate out or they havethe hall pass and get stuck in their comfort zone, calling on people who are already sold. In addition, sales “hunters” hurry down the road to the next prospect company because what is qualified for long-term account management is not qualified for a short-term quarterly-driven “hunter.” This is why “hunters” usually don’t make good account managers.
Collaborate
One way to elevate your value from commodity to strategic is to collaborate with the client on product or strategic initiatives. This requires working on issues other than just your product. It may mean logistics, marketing, codesign, new markets, integration, or innovation.
This is a very powerful model for raising value and has led to technology tools for product configuration, change orders, design, and collaboration through an entire supply chain.
I meet a lot of sales managers on airplanes. I remember flying into Minneapolis, sitting next to a sales manager for a paper company.
Of course, I asked him, “Isn’t it hard to sell a commodity like paper these days?”
He responded, “I have about 1,200 other salespeople in the commodity division. What I do is co-design specialty papers for clients with unique needs. I’m meeting with 3M tomorrow to collaborate on papers for products that we will both produce two years from now. The margins are much higher.
Likewise, later that year, I sat beside a carpet salesman, flying into Washington, D.C., who was meeting with Marriott Corporation to design special carpets for hotels they would build throughout the world over the next few years.
“It’s the only way we could get out of the commodity business,” he said.
Elevate
Elevate your executive relationships to trust and your solutions to the strategic.
A few years ago, one of our principals, Jon Hauck, was in a presentation with a sales rep who was presenting to the president of a major division of MCI and two of his lieutenants.
The lieutenants had prepared and coached them for the presentation, which was to last an hour. This was the big day! They thought they knew the president’s key issues, which could be addressed by their slick sales dashboard that would provide significant visibility into the forecast.
But just 20 minutes into the presentation, they could see that the president was tuning out. Though the rep was doing a very nice job, unfortunately, the only heads that were nodding were his and those of the lieutenants. Jon reached over, closed the laptop, and asked the president if visibility into the forecast was what really concerned him most.
“Yes,” he said. “But you’ve missed the issue. In the Telco space, forecasting revenue is not about when it’s sold, but when the switch is turned on. That’s what I need to forecast. I already know what my sales are going to be.”
With that, they immediately changed direction and probed a little deeper into his actual issue.
He cordially explained it, and they artfully created the linkage from the benefits of their solution to solving his true pain. This took about 13 minutes.
When they told him they could do what he needed, the deal was done. He told his sales operations manager to get with them, define the scope, and tell him how much to spend.
Two weeks later, they had a contract for over $500k.
STAY INVOLVED—DELIVER WHAT YOU SOLD
Early in the implementation of the State of Texas payroll system, Joe Terry, then the salesperson on the account, ran into a potential two-week delay to get the system installed because the client’s database manager was going to be on vacation and would miss the installation training class.
The next class was not to be held for another month, but the database manager refused to change his vacation schedule. At the project level, the project manager had chosen to simply let the delay stand.
Joe went to the deputy controller and explained the hidden cost of having the 30 people on the project team stand idle for a month while the project was on hold: $720,000.
That was a pretty expensive vacation.
The controller interjected himself in the process to prevent the delay, but just as important, Joe gained trusted advisor status with the controller. This access proved to be crucial as the project ran into the normal problems that can sometimes escalate out of control.
Many salespeople reach the executive level to get the sale and then leave the support team to work at the lower levels of the account. Sometimes the problem is actually the customer’s. By maintaining the access and relationships at the executive level, after the sale, Joe was able to save the customer from themselves without going over the project team’s head—he was already there.
He elevated the relationship to trust by staying involved in delivering what he sold and saved the executive from embarrassment.
One client executive of Deloitte’s came to them and said, “We need to do something about increasing revenues.”
At the time, Deloitte had developed a process called a Value Map that allowed them to break processes into different areas. When they mapped the client’s problem to the Value Map, they saw that none of the projects the client wanted done addressed revenue at all.
The real initiative was that the client needed to cut costs. The client was asking Deloitte for the wrong thing.
When dealing with someone from a strategic standpoint, before you ask, “Are you doing the thing right?” you have to ask, “Are you doing the right thing?”