Implementing Value-Based Selling: A Process-Driven Approach

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1 1 Best Practice Guidebook Implementing Value-Based Selling: A Process-Driven Approach guidebook summary Firm: Energy Company 1 Industry: Energy Headquarters: USA Geographic Footprint: North America Ownership: Public Revenue (01): >$5 Billion USD 1 Problem: In a highly commoditized, mature market reliant upon long-standing customer relationships characterized by a lowest-cost mindset, Energy Company s sales team is challenged to provide a differentiated value proposition. Solution: Energy Company s sales division evaluates its capabilities and processes, ultimately implementing a sales effectiveness program that enables the sales force to deliver a differentiated, value-based offering. Business Results: Since implementation, Energy Company s sales force has increased time spent on selling activities by 5% and eceeded annual sales targets. Resources Required: Support from sales and marketing senior leadership One Sales Force Effectiveness Manager from Energy Company working with eternal and internal consultants to construct the new sales process ~ $.5 million USD over 3 years Applicability of Best Practice to Eecutive Functions: Function Applicability Sales Leadership Marketing 1 This is a pseudonym for the profiled company. The sales effectiveness program and the new sales process were eecuted within Energy Company s U.S.-based business.

2 key takeaway: Develop required standards for people, processes, and tools to eecute a value-based selling approach Energy Company sales leadership developed the capabilities necessary to achieve a value-based selling approach Sales Capability Standards Sales Force Capabilities Sales Process Systems/Tools Performance Management Sales Force Capability -- Formulate an activity-based job design -- Develop competency requirements (knowledge, skills, and abilities) -- Provide training and development for performance improvement Structure and Deployment Evaluate and adjust sales force size, workforce deployment, and territory alignment to maimize sales potential Reward System Balance intrinsic and etrinsic incentives, while aligning compensation plans with sales and marketing strategy Sales Framework Leverage the integrated processes across Marketing, Sales, and Customer Support Sales Process Understand the customer buying cycle and align with the requisite activities to advance a sale -- Map and standardize key steps in the sales process to drive consistency, efficiency, and effectiveness Contract Management Develop proactive capability to renew and maintain current customers Sales Toolkit Equip the sales force with a suite of tools that allow them to communicate value beyond price Customer Relationship Management (CRM) Enhance the CRM to standardize management of sales process and integrate related customer support activities defining value-based selling Process Performance Indicators (PPIs) and Key Performance Indicators (KPIs) Balance measurement of PPIs and KPIs to drive consistent performance and methods for achieving desired goals -- PPIs Dictate performance and measure process effectiveness (e.g. sales teams are using the sales toolkit number of times per month) -- KPIs Quantify the impact of the sales tools (e.g. measure customer satisfaction with the account review process) Value-based selling identifies the holistic value a product or service creates for a customer. It differentiates from traditional sales approaches by addressing three primary customer needs: Economic (does it make me money?); Functional (does it improve my operations?); Emotional (does it make me feel good?). Value-based selling fulfills these needs by demonstrating the quantifiable value an offer creates for a customer in terms of time, productivity, cost savings, revenue, and additional margins.

3 Sales Force Capabilities key takeaway: Assess current versus desired capabilities to identify priorities for improving sales effectiveness Energy Company s Sales Effectiveness Manager conducts a capability assessment to compare current and desired states allowing Sales leadership to identify and prioritize the key capabilities for improvement 3 Capability Assessment Capability Priorities Energy Company s Sales Effectiveness Manager asks senior and mid level managers, plus front-line practitioners, to rate Sales current performance relative to the benchmarked standard. Capability Assessment (Illustrative) Rating Internal Evidence Aspiration Priority A. People L M H A.1 Job design clearly outlines epected activities, accountabilities, etc. Specific job descriptions eist for each sales role and outline specific activities and responsibilities. Competencies are clearly linked to A. associated activities as outlined in job design The sales team provides regular training to support specific skills, A.3 knowledge, and behaviors linked to job design B. Process We have a clearly defined sales process that supports our B.1 customers buying cycles We have a clearly defined account planning process, and account plans are regularly updated and reviewed B.3 with key stakeholders from Marketing, Sales, and Customer Support. C. Systems/ Tools We have and actively utilize a sales pipeline to monitor and manage C.1 opportunities throughout the sales process Sales force has tools to help them create customer proposal and account review materials for C.3 customer meetings Each job has clearly defined requirements for key technical/ professional competencies. The sales team has not had formal training in specialized areas for past 4 months. The sales force understands customers buying cycles, but no consistent sales process etends across the organization. No formal account planning process eists, but the sales force does maintain account plans for key customers. Each sales manager independently manages his/her sales pipeline: no single source of data is available to the sales leadership team. Sales force have no easy way to create consistent sales materials based on customer needs; and they spend many hours preparing materials for customer presentations. The organizational aspiration (i.e., desired level of aptitude) for each benchmark is compared with the current state to prioritize improvement opportunities. Participants were also asked to provide evidence to support their ratings. Capability Priorities (Illustrative) B.1 Energy Company has a clearly defined sales process that supports our customers buying cycles C.3 The sales force has tools to help them create customer proposal and account review materials for customer meetings A. Competencies are clearly linked to associated activities outlined in job design A.3 The sales force is provided regular training on specific skills, knowledge, and behaviors C.1 We have and actively utilize a sales pipeline to monitor and manage opportunities through the sales process C. The sales force has tools to prepare them for sales calls and customer meetings sales effectiveness manager (sem) Energy Company created this position to continuously monitor the triad of people, processes, and tools for constant sales force improvement. The SEM reports directly to the Vice President of Sales. This position is equivalent to a Sales Support Manager or Sales Operations Manger in other sales organizations. Priority High- and medium-priority capabilities are then ranked based upon their epected impact to the organization and used to develop project plans for increasing sales effectiveness. 1 1

4 Sales Force Capabilities key takeaway: Root cause capability shortcomings to create a comprehensive sales effectiveness initiative Energy Company s Sales leadership schedules a workshop to refine capability priorities into a sales force effectiveness program and garner leadership support 4 Creating a Sales Force Effectiveness Program Step 1: Capability Priorities Analysis Step : Solutions Identification Step 3: Ongoing Sales Leadership Engagement Determine current capabilities, and invite sales leadership and field sales teams to synthesize capability priorities into potential solutions. Vet potential solutions based on cost and impact, then create an implementation plan according to the four steps listed below. Work with key stakeholders to manage the program (changes, timing, budget, etc.), review progress, and gauge impact over time. Capability Priorities (Illustrative) Staging Energy Company has a clearly defined sales process that B.1 1 supports our customers buying cycle Sales force have tools to help them create customer proposal C.3 1 and account review materials for use in customer meetings Competencies are clearly linked to associated activities as A. outlined in job design The sales force is provided regular training to support specific A.3 skills, knowledge and behaviors linked to job design We have and actively utilize a sales pipeline to monitor and C.1 manage opportunities through the sales process Sales force has tools to help prepare them for sales calls C. and customer meetings Energy Company has identified and measures process D.1 performance indicators which reveal how well current processes are being used and how well they work Sales managers regularly evaluate and coach the sales force to D.4 improve delivery of key sales activities Energy Company has a clearly defined process to manage and B. 3 update customer contracts We have a clearly defined account planning process, and account B.3 plans are regularly updated and reviewed with key stakeholders 3 from marketing, sales, and customer support Sales VP Sales Manager Select Decide on a viable solution to achieve the desired conclusion Define Lay out project scope and requirements Sales Effectiveness Manager The sales force is deployed in a way that balances account A.4 management and sales activity Individual performance metrics are reflective of real D.3 opportunity in a given sales territory and not balanced across the sales team 4 4 Eecute Build the solution and establish the business process owners BU Leader BU Leader Sales Effectiveness Manager Operate Implement, measure, and continuously improve the solution BU Leader Capability Priorities Workshop Facilitator: Sales Effectiveness Manager (SEM) Attendees: Sales Leadership VP s and Sales Managers Key Aspects of the Priority Analysis: Identify the problem What is happening today: Sales performance has been below epectation for the past three consecutive years Understand contributing factors We are unable to do this because: We lack the proper resources, et al. Establish the business case This is bad because: We are unable to deliver against our commitments Brainstorm solutions To be more effective we need to: Improve our ability to define and clearly communicate the value of our offers to our customers. Sales Force Effectiveness Project Implementation Plan SEM is Project Owner Element Project Jan Feb Mar Apr May Jun Jul B.1 Develop & Deploy Standardized Sales Process C.3 Develop & Deploy Sales Toolkit (ART & SPT) C. Develop & Deploy Sales Call Plan Template D.4 Train Sales Managers on Coaching Skills; Establish Performance Epectations A.3 Train Sales Force on Sales Process, Toolkit, and Value-Based Selling skills D.1 Develop Process Performance indicators to Measure Program Implementation B.3 Develop & Deploy Account Plan Template C.1 Develop & Deploy Sales Pipeline Tool B. A.4 Develop & Deploy Customer Contract Review process Evaluate and implement changes in sales force deployment

5 Sales Force Capabilities key takeaway: Pinpoint and refine competencies supporting a value-based sales strategy 5 Energy Company defines the knowledge, skills, and behaviors underpinning the value-based selling model Competency Requirements Based on competency survey results, Energy Company creates a program to ensure the uniform adoption of value-based selling practices Competency Survey Results and Action Steps Competency Requirements for Value-Based Selling Assesses and understands the real needs of each customer Develops and communicates value proposition Provides solutions at the right time in the sale process Negotiates effectively and influences customer buying decisions Reinforces and creates value while managing the account Utilizes account and call planning to accomplish objectives then assesses the current sales force against these competencies Energy Company uses formal sales assessments to identify strengths, weaknesses, competency levels, and how their salespeople sell. Competency Survey The Prospecting Scenario Jeff is ready to evaluate other prospects and get to work on several promising opportunities. He s looking at eight separate leads. 1. To narrow the list of prospects, Jeff decides to: Identify the leads he received from his sources. Identify the concerns his company s solutions can address, and the companies from his short list of leads that may have these concerns or needs. Rank the list of prospect s in order of the revenue they spend on comparable solutions, according to Marketing s third-party research. Review market segment information and determine those that best fit into his assigned segment. Consultative Selling Styles 33% 33% 33% Consultative and Tactical Tactical Sellers Implications A value-based selling model requires consultative sales abilities One-third of sales force (Tactical Sellers) struggles to perform value-based selling Action Steps Conduct individual performance reviews to identify specific learning opportunities Train the sales force in value-based selling skills Value-Based Sales Training Program (Illustrative) Buying/Selling Style Profiles Establishing Value For Your Product/Service Buying Cycle vs. Sales Cycle Qualification I: People, Time, and Money Qualification II: Identifying and managing Issues Beyond Features/Benefits Creating Value Statements Call Planning and Account Management Value Based Presentations and Closing Reinforcement Eercises and Role Playing Customer Feedback and Refinement

6 Sales Process key takeaway: Focus the sales force on sales-generating activities by aligning sales processes with the customer buying cycle Value-Based Sales Process 6 Generate and Screen Leads Develop Opportunity Tailor Value Proposition Communicate Value Proposition Negotiate and Close Implement Value Maimization Define specific questions that illustrate customer interest through the buying cycle. Match specific objectives to the customer buying cycle, then define the activities necessary to achieve those objectives and advance a sale to the net stage. Create tools to help sales people demonstrate value at each stage of the sales process. Customer Buying Cycle Our Objectives Sales Force Activities Sales Toolkit Why is Energy Company contacting me? Identify qualified leads Identify opportunities and enter into sale opportunity pipeline Sales Opportunity Pipeline What are my unmet needs? Understand customer needs and buying cycle Evaluate feasibility of sale (supply, pricing, IRR, customer credit, etc) What are the solutions to meet my needs? Define the value proposition for the customer Profile customer account and align value proposition to identified needs What is Energy Company offering me? Build and share proposal with the customer Create sales collateral and present to customer (valuebased selling) Account Plan Call Plan Sales Proposal Tool Develop Account Plans Which supplier provides me with the best overall value? Gain agreement on proposal from the customer Negotiate details of deal, close deal, and sign contracts creating the value-based sales process Is Energy Company delivering what it promised? Deliver contracted performance Set customer up in Energy Company systems, enroll customer in programs, etc. Did I make the right purchase decision? Reinforce the customer s decision to select Energy Company Review and manage account performance and update account plans Contract Set-Up Request Account Review Tool Energy Company worked with sales and marketing consultants to revise the eisting sales process. They: Defined the customer buying cycle Interviewed multiple internal stakeholders to understand the as-is sales process Utilized cross-functional, sales and senior leadership meetings to vet the as-is sales process and formulate the should be sales process Compared the should-be process against a best-practice standard and aligned it with the customer buying cycle to develop the sales process shown above

7 Systems/ Tools key takeaway: Develop tools that enable the sales force to communicate value beyond price The Sales Proposal Tool (SPT) generates a tailored proposal quantifying the specific value customers will realize 7 Sales Proposal Tool (SPT) Illustrative As you can see, Energy Company is not only competitive with its pricing; we also offer much more value to you through reliable supply, our marketing programs, credit card programs and other elements of the offer How Energy Company Delivers Value New Account Proposal for ABC Distributor Estimated Annual Value of Energy Company Partnership: $400,000 Energy Company has distribution centers conveniently located to serve your sites and guarantee ontime delivery Projected Service Fee Savings versus Competitors: By design, the SPT tool is used in Step 5 of the Sales Process Communicate Value Proposition. In the previous steps, the sales person develops an understanding of client needs and how the value proposition addresses them. This information is then plugged into the tools to create these tailored presentations. SPT employs historical customer data and data from its designated marketing area (DMA) to estimate the value a customer could realize with Energy Company s offer. Energy Company Sales Manager Client SPT quantitatively demonstrates value for customers. It not only depicts key elements such as pricing, but also the value of competitors marketing offers and programs. This shifts sales conversations from price to value beyond price, thereby differentiating Energy Company from its competition. ABC Distributor will enjoy significant annual service fee savings with Energy Company the toolkit enables consistency The Sales Toolkit is designed for easy sales team adoption: the presentations feature talking points, supplies guiding and anticipated questions, and includes quantifiable value statements based off current customer and market data. The Toolkit also enables sales people of varying ability to deliver a consistently high quality customer eperience.

8 Systems/ Tools key takeaway: Build sales tools that focus account review discussions on quantified demonstrations of relationship value Energy Company s Account Review Tool (ART) generates a monetary figure that demonstrates the value a customer derives from the relationship 8 Account Review Tool (ART) Illustrative The Account Review Tool (ART) creates a presentation highlighting the value a customer is realizing currently and identifies opportunities to increase value through participation in additional Energy Company offers. ART calculations are driven by algorithms based on actual customer historical data. Maimizing Value with Energy Company ABC Distributor Account Review Report October 1 December 8, 009 Value of Participation in Selected Energy Company Programs: $1,000 Credit Card Bonus Program: Jul-Aug 008 YTD Energy Company A Card $500 $1,00 Energy Company B Card $800 $,100 Energy Company C Card $350 $550 Total $1,650 $3,850 Etracting more value with Energy Company Compliance Program Dollars available through program: $3000 Dollars earned through passing scores: $1800 Dollars missed (opportunity for improvement): $100 Co-op Marketing Program Dollars available ABC through Distributor program: $5000 John Smith Dollars used: $ Gasoline Alley Anytown, USA 1345 Dollars available: $400 Dear Mr. Smith, Thank you for doing business with Energy Company. ABC Distributor s success is important to Energy Company. To support your business on an ongoing basis, I would like to update you on general performance information for the previous quarter (Q# 009), and more specifically ABD Distributor s performance and opportunities relating to Energy Company s programs. Energy Company uses innovative marketing to build a strong and eciting image for your sites. In the Anytown area, Energy Company s market share is 4%. Energy Company s position is supported by etensive marketing programs which help to build consumer awareness, enhance customer loyalty, and drive business to your sites. ART presents the monetary value Energy Company creates for a customer over a specified time period. It is a compelling account of how the customer s activities translate into value that Sales can then reference during account visits and renewal negotiations. Auiliary programs real-time values are showcased in the presentation. Sales are able to clearly communicate customer benefits and highlight further value that can be realized through additional programs. ART generates a review letter with key value creation messages that can be sent to customers who are visited less frequently than others.

9 Performance Management key takeaway: Utilize a scorecard to drive desired versus epected behaviors and outcomes Energy Company uses Process Performance Indicators (PPIs) and Key Performance Indicators (KPIs) to reinforce the importance of generating the right results from the right behaviors 9 Energy Company s Sales Effectiveness Manager develops a quarterly Scorecard to track sales effectiveness against performance metrics. Scorecard includes 14 specific Performance Indicators divided into 4 Benchmark categories. Energy Company weighs each benchmark based on its importance to total sales performance. This also holds true for Performance Indicators. Total performance calculations in the categories and overall include weighted values to give Sales Leadership a tailored score for each member of the sales force. Process Performance Indicators (PPIs) show how well the sales force is adopting new processes and tools. Sales Leadership uses this information to reinforce epected behaviors. Toolkit Implementation Sales Scorecard Q Measure and improve performance with Key Sales Performance indicators and Process Performance indicators ( 10 value means that the benchmark or goal is the most valuable) Benchmark Weight Performance Sales Effectiveness 5.50% Sales Process % Coaching and training 63.00% Managing Customer relationships 6.50% Total Performance 63.60% SCORECARD DETAILS: Benchmark Category Performance Indicator Weight ( of 10) Description Performance (%) Target Values Sales Effectiveness 5.50% Cost of sale The total cost of one sales person divided by their number of sales 40% 100% Sales per employee 4 The Net Sales divided by the total number of employees. Total Performance in group Sales Effectiveness 5.50% Sales Process % Close ratio CRM usage Q1 08 Sales Performance Scorecard Sales Process Adoption of the Sales Toolkit 3 4 Q 08 Q3 08 Q4 08 The conversion Visit/Order, the percentage of visitors who purchase the product The percentage of sales person, who have an access to CRM software means, including business trips time. Sales Managers with access to toolkit and fulfill 1/4ly requirements Number of Presentations Number of Sales Managers making Presentations 65% 100% 70% 100% 95% 100% Overall performance scores are used to drive remediation of sales effectiveness initiatives and performance improvement. Key Performance Indicators (KPIs) show whether the sales force is achieving specific objectives. Sales Leadership uses this information to manage performance (mentoring, coaching, training, etc.). 45% 100%

10 10 key takeaway: Develop and implement a structured plan for embedding processes and tools with the sales force Energy Company s change management approach avoids organizational resistance by orchestrating a series of smaller-scale transformations Implementation Plan Sales Force Effectiveness Manager and Sales Leadership introduce the vision to the sales team Set process performance targets to drive toolkit use and adoption (e.g. four applications per month) Elicit feedback on the Sales Toolkit from the sales force and the Customer Advisory Board Adjust Toolkit content and data on a quarterly basis Sales Force Effectiveness Manager and Consultants provide sales process training Sales Force Effectiveness Manager and Consultants supply guidance on how to use the Sales Toolkit Revise Toolkit (input and output functionality) based on feedback from customers and sales force Formalize performance agreements including measurement of Sales Toolkit adoption (e.g., three presentations per month with regional sales manager, resulting in new or increased business) the customer advisory board Composition: A select group of Energy Company distributors who are under strict confidentiality agreements Responsibilities: Provide feedback on current marketing programs Serve as a litmus test for proposed programs and offerings Represent regional constituents as the voice of the customer to Energy Company Sales and Marketing organization Perform formal sales process training to reinforce skills

11 11 Business Results Sales Sales Force Time Allocation Percentage of Goal Sales Percentage of Goal 15% 100% 75% 50% 65% 75% 70% 115% 15% Market Share 80% 110% 65% Percentage of Time Spent 60% 40% 35% 55% 45% 45% 55% 40% 60% Time on Administrative Activities Time on Account Management and Selling Activities 5% 0% 0% Preyear Implementation year year 0% Postyear Implementation year year Sales Force Competency Improvements Year 009 The restructured sales process and the Sales Toolkit contributed to a 5% increase in the amount of time Sales spends on actual selling activities Understands Real Need of Customer Provides Solutions at the Right Time in the Sale Creates Value for the Decision Maker Uses Sales Call Planning Effectively Skill Area Influences Customer Buying Decision Benchmark Pre-Implementation One Year Post-Implementation

12 1 Key Lessons Learned Profiled Company Perspective Transformation is a journey, not an event. The key to Energy Company s success was taking a much larger scope of programs and breaking them into manageable chunks. These were deliberately staged and coordinated over time to achieve the end result. A full transformation to value-based selling can take between 3 5 years, depending on where an organization starts and how effectively the program is managed. Be fleible with the amount of new information you present to the team at one time. There are limits to how much change an organization can take in. Slow things down to allow teams to absorb new concepts and adapt; change direction if needed. Eecutive sponsorship and ownership is crucial. Regardless of what a change program may say you should do, the leadership of the organization will ultimately decide what it will do. It is tremendously important for sales leadership to champion the program and hold people responsible and accountable for its implementation. Energy Company s capability standards were based off a home-grown template that incorporated information from various consulting sources. Data from these sources was also used to establish an integrated view of what constitutes best practice in a specific area. Energy Company then conducted an internal survey to measure its capability against those standards and define its aspirations and priorities. In many companies, programs of change are treated in a very finite i.e., start-to-finish way. In contrast, the sales effectiveness program at Energy Company remains ever-green because customer requirements drive refinement of the tools and overall program. Energy Company is in its fifth iteration of the sales toolkit and moving it to a web-based platform with near real time information updates. They epect it to continue to evolve. The collaboration between Sales, Marketing, and Customer Support makes this possible. A designated business process owner can help ensure critical parts of a sales force effectiveness program subsist after implementation. In addition to taking ownership of the design and implementation of the program, the role can also help post-implementation in the areas of continuous improvement and usage.

13 13 Key Lessons Learned (Continued) The shift to a value-based selling approach and the utilization of a Sales Toolkit is manageable for an organization of any size. Ease and scalability of Toolkit construction are functions of the systems and tools in place at the company. Energy Company s collection of customer databases required 3 4 months to gather, analyze, and build the tools. Other organizations with a single source of data and an integrated solution could achieve a similar outcome with minimal effort and in less time. You should anchor your transformation efforts on a common document, principle, or philosophy that is universal throughout the organization. Energy Company used the Sales Process (page 5), which became the universal language for anything pertaining to Sales in Energy Company s business. Every internal meeting, training, or coaching was linked to a specific piece of the sales process (e.g., Today we are going to work on discovering client need. This is very important in Developing the Opportunity and then Tailoring the Value Proposition for each customer during the Sales Process )

14 14 Supporting Tools & Resources Account Plan: Illustrative Eample Account Plan Template The template provides basic information about the account, primary contacts, contract information, and a current sales profile. The account plan also provides a template for creating a SWOT analysis and a sales plan to close the customer. ABC Distributor Customer Profile Date: 01/01/010 SECTION 1: CUSTOMER PROFILE Customer (DBA) ABC Distributor Primary Contact John Smith, President and Owner Key Decision Makers John Smith, President and Owner; Ron Jones, VP, Operations; Tim Roberts, Marketing Director Address 13 Anystreet, Anytown, USA Market area(s) covered City 1, City, City 3 Other suppliers Competitor 1, Competitor, Competitor 3 Distribution Centers (DC) Distribution Center A, B, C Contract status Contract Start Date: 01/01/010 Contract End Date: 01/01/013 Estimated Distributor Total Energy Company Volume Gasoline (gals, 000) 100,000 47, % Distillate (gals, 000) % Non-fuel products (gals, 000) % Energy Company as % of Estimated total SECTION : CUSTOMER ASSESSMENT Customer Situation Customer business profile Desired Outcome Anticipated issues with renewal of contract ABC Distributor was established in 1947 is located in Anytown. USA, and has been associated with Energy Company for 63 years. The Company operates 65 locations in a three state geography with its headquarters in Othertown, USA. ABC Distributor s primary needs are reliable product supply and strong back office support. The company generally values a reliable supply over price, but has recently been No anticipated contract renewal issues

15 Supporting Tools & Resources Call Plan: Illustrative Eample 15 Sales Call Plan Template The template provides a format to think through the net sales call. It includes a checklist to guide preparation and specific areas to capture comments on call objectives, key questions, anticipated questions with associated responses, and any notes for future reference. Call Plan for ABC Distributor Date: 01/01/010 Location: ABC Location #3 Distributor Attendees: Store Owner Energy Company Attendees: John Smith CALL PLAN CHECKLIST 1. Review notes and news. Clarify who will be in the meeting and their role 3. Identify your objective for the call 4. Articulate the desired outcome of the meeting 5. Conduct account analysis and research 6. Prepare account review presentation, and other materials for review with the distributor 7. Practice/dry-run CALL OBJECTIVE: Advance Description of Objective 1. Share map data to illustrate overlap of supply points to ABC Distributor s locations. Provide demographic information on area growth and demand 3. Provide results of marketing activity to demonstrate strength of brand (recognition, intent to purchase, loyalty, etc.) Desired Outcome - Gain commitment from customer to accept and consider a formal sales proposal for 50MG contract MEETING STRATEGY Key Questions for the Customer Document the key questions needed to achieve your call objective. 1. What are the key strengths you look for from a supplier?. What challenges does having to enter billing data into your system present for you? Anticipated Questions/Potential Responses Question 1. Can you guarantee on-time delivery? We have had numerous delays with our current supplier. Response: We have supply points within # of miles of you. Consequently, we are able to deliver on time over 95% of the time Question. What are you going to provide that will make my job easier? Response: Energy Company provides all the necessary tools to automate standard process, coupled with etensive training and 4 hour customer support. POST-CALL NOTES Use this space for post-call notes. What did you achieve during this meeting? What specific agreements or actions resulted from the call? Reference these notes to help you plan for your net call.

16 Supporting Tools & Resources Sales Proposal Tool (SPT): Illustrative Eample 16 Customer Profile Distributor Information Customer Name Customer Number Contact Name Contact Phone Number Distributor Information Address City, State, Zip Site Information (1 of 5) Site Information Site Geography Presentation Information Site Selection Contact Name Contact Phone Number Site Address or Intersection City, State, Zip Projected Service Fee Savings Estimated Go Live versus Date Competitors Select the area in which the site is located: Select the site s primary terminal: Select the site s secondary terminal: Select the site s tertiary terminal: Is the site along an interstate highway or in a township? Yes, the site is along an interstate or in a township ABC Distributor Credit Card Overview Transactions in Energy CompanyCredit Card Portfolio 3rd Party 55% 5% 15% Energy Company Energy Company No, the site is neither along B an Card 5% interstate or within a town Energy Company C Card Energy Company A Card Energy Company B Card Credit Card Bonus Program Jul-Aug 008 YTD $500 $1,00 $800 $,100 Energy Company C $350 $550 Card Total $1,650 $3,850 Distributor Information Presentation Energy Company Site Selection offers enhanced value through its credit card program: Greater savings on card fees, Information access to a portfolio of loyal customers, and the opportunity to earn bonuses through new business generation.

17 17 Supporting Tools & Resources Account Review Tool (ART): Illustrative Eample Energy Company Credit Card Energy Company service fee savings vs. competitors The Energy Company service fee structure has lower cost on average than its competitors Energy Company service fee advantage Energy Company vs. Competitor A $ Energy Company vs. Competitor B Energy Company vs. Competitor C Energy Company offers the lowest service fees amongst benchmarked competitors Shifting Relative 1% of to the the distributor's current competitor third party service, credit card ABC transaction Distributor to is the enjoying new Energy significant Company annual Consumer service fee Card savings represents with Energy a savings Company of $ Energy Company Credit Energy Company average Card transactions purchase size $ Fee savings since the beginning of the year 3,500 Number of new accounts created from card applications taken from their sites ABC Distributor,800 John Smith Total value of credit $ 134 Gasoline Alley card bonus program,100 Anytown, USA ,400 Dear Mr. Smith, Customer Information Thank you for doing business with Energy Company. ABC Distributor s success is important Presentation 700 Products and Information Pricing to Energy Company. To support your business on an ongoing basis, I would like to update you on general Sites and performance information for the previous quarter, and more specifically ABD 0 Distributor s Volumes performance and opportunities relating to Energy Company s programs. A B C D E Competitors Energy Company uses innovative marketing to build a strong and eciting image for your sites. In the Anytown area, Energy Company s market share is 4%. Energy Company s position is Additionally, every 1% shift of ABC Distributor s third-party credit card transactions supported by etensive marketing programs which help to build customer awareness, enhance to the new Energy Company Consumer Card represents $0.XX per transaction! consumer loyalty, and drive business to your sites.