Build a Successful Sales Strategy
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1 Build a Successful Sales Strategy Presented to KCL by Jurek Sikorski Entrepreneur in Residence, LBS Independent Business Advisor Business Mentor Wednesday, 10 February 2016
2 Coming up... What is (and why have) a sales strategy? Key elements of a sales strategy The Selling Process Sales Value Proposition How to build a successful sales strategy Ask the Panel Build a Successful Sales Strategy
3 What is a sales strategy?... A plan to achieve the sales goal of a business Describes how a business will win, retain and develop customers... A blueprint for success Build a successful sales strategy
4 What does a sales strategy do? Defines the selling activities and allocates resources to deliver the sales goal of the business Build a successful sales strategy
5 Why have a sales strategy? Without a sales strategy the company s customer facing people will struggle to obtain the focus needed for successful selling every organisation needs a sales strategy Build a successful sales strategy
6 A sales strategy addresses common business challenges Slow, stagnant or declining sales revenues Merger of sales forces after an acquisition Start-up of a new venture New product introductions Launch of a new competitor Expansion to new markets Build a successful sales strategy
7 Key elements of a sales strategy? 1. Goal and Objectives What is the goal of your business? e.g. We want to become the UK s leading supplier of hybrid power generators by sales within 3 years What are the objectives that when achieved will deliver the goal? 2. Target Market Who is your target customer group?... What /How/Why do they buy? Who is the person you are selling to? What are the specific needs? 3. Products/Services What are you selling to the target market? Why would the customer buy? What is your sales value proposition?... Customers buy only two things 4. Competitive Advantages Who are your competitors? What are their strengths/weaknesses?... What are your competitive advantages? How are you better, cheaper, faster? Build a successful sales strategy
8 Key elements of a sales strategy? 5. Route to market How will you reach the customer? e.g. direct and/or channel partners What direct route will you use? e.g. sales, telesales, trade shows, internet 6. Selling Process What are your selling activities? e.g. prospecting, engaging/presenting How will you maximise success during the critical hour in front of customer? 7. Resources, Skills and Capabilities What resources (e.g. sales time, money), skills (i.e. selling) and capabilities (e.g. sales planning, key account management ) are required to sell? How will you develop and improve skills e.g. selling skills training? 8. Sales Management How is the sales target set, sales performance reviewed coaching provided? What performance incentives are provided? e.g. bonus scheme Build a successful sales strategy
9 What is selling about?... Helping the customer to buy Helping the customer to make up his mind based upon the satisfaction of his needs Selling is about creating a win-win for you and the customer Selling is not so much about shifting product as winning customers Successful selling is about asking the right questions
10 How customer orientation works! HomeTouch In the UK over 700k older people live in need of domestic help An online introductory care services agency Need Benefit Feature Seek help with everyday tasks such as washing, cooking and shopping and also find relief from loneliness and isolation Offers help to elderly people who struggle with everyday tasks around the home enabling them to remain independent and relieving isolation and loneliness HomeTouch is an on line care services agency which enables elderly people living in London and needing help with domestic tasks to find and book trusted carers Don t sell me a care service help me with my washing, cooking and shopping help me live independently
11 Selling is a key activity of your business model... Off grid solar/hybrid power generation industry Key Partners Key Activities Value Proposition Customer Relationships Customer Segments International resellers Plant and hire firms Designing, manufacturing and supplying generators Marketing and selling Range of peak power outputs Reliable power delivery Personal User network Construction and Plant Hire firms need to service client projects Battery and power inverter suppliers Electronic circuits suppliers Investors Facility landlord Recruitment and training of resellers Key Resources Working capital Technical/commercial staff develop and market Knowledge and expertise Silent operation Zero/reduced CO2 pollution Portable Simple installation/commissioning Range of purchase options Co-development Channels Sales team Resellers DFID, Aid Agencies Event and Broadcast organisers need a source of reliable power that is non polluting at an affordable cost International Aid agencies Need robust power generation solutions at a low cost Cost Structure Revenue Streams Cost of sales (<50%) Facility ( xk pa) Price set at x FOB Gross Margin: min. 50% Salaries ( zk pa) Marketing ( yk pa) Revenue 1.8m rising to over 25m by year 5 Business Model Generation: Alexander Osterwalder & YvesPigneur 2010
12 The Selling Process A communication and learning experience Salesperson learns the needs of the customer and the customer learns whether the product will meet needs Characterised by nine activities that are directed at winning customers Successful management of the selling process requires good analytical, communication, decision making, and organisational skills...
13 The activities of the selling process 1. Prospecting: generating sales leads 2. Classifying leads: identifying leads with largest revenue potential 3. Developing a sales plan: setting plan for a specific customer 4. Making the approach: connecting via intros, invites and cold calling 5. Engaging the customer: pitching your sales value proposition 6. Trial closing: Early attempt to close a sale 7. Overcoming objections: Removing barriers to making a sale 8. Closing: Asking for the order 9. Following up: Delivering product and keeping the customer happy
14 Ten ways of generating sales leads Ways of generating leads 1. Seek referrals from present satisfied users e.g. Balfour Beatty, Coca Cola Enterprises 2. Ask channel partners e.g. Speedy Hire 3. Attend conferences and exhibitions e.g. Renewable UK Annual Conference 4. Engage web marketing and social networks 5. Register and advertise with trade associations e.g. Construction Plant Hire Association
15 Ten ways of generating sales leads Ways of generating leads 6. Publicise your business via news media e.g. Forbes, Guardian, Telegraph, Evening Standard, City AM; retain a PR firm - check out 7. Post offers of information/product trial for limited period on your website 8. Visit potential customers (e.g. Brandon) and influencers 9. Partner to stage promotion events e.g. Speedy Hire 10. Engage Telemarketing e.g. The Telemarketing Company Be imaginative in finding ways to generate leads
16 Engaging the Customer A crucial step in the selling process Beginning of a two-way communication between the salesperson and the customer critical hour This is the pitch to capture attention, develop interest of the customer, raise desire and evoke action Aiming to win customer acceptance of the sales value proposition Selling benefits is what moves the A Attention customer to buy I Interest The sales value proposition must feature D Desire prominently in the sales strategy A Action The selling model
17 Sales Value Proposition A benefits statement that fulfills the needs of customers and creates value - needs to answer the key questions... Differentiates product/service from competition Dramatically improves marketability of product/service... A powerful branding tool that supports the sales strategy through marketing communications e.g. advertisements, website, social media Forges a lasting reputation that raises customer awareness... and enables sales
18 A Winning Sales Value Proposition Cygnus is a clean energy storage solution that delivers dependable off grid power, reduces emissions and saves fuel and logistics costs...
19 How to build a successful sales strategy? Step 1 Engage the customer facing team Step 2 Describe the current situation Step 3 Create the Sales Strategy Canvas Step 4 Prepare sales strategy statement Step 5 Launch/ monitor progress and adapt
20 Sales Strategy Canvas Sales Goal - Year: Xm - Q: ym/ zm - Direct/Distributor Target Market (Customer) - Construction firms, events organisers, aid agencies - CEO, FD, PM - Customer seeking dependable power and lower costs Route - CEO - Sales team (5) - Distributors Competitive Advantages - Reliable power delivery - Reduced pollution - Lower fuel & logistics costs Products/Services - Cygnus range - Sale/rent/lease - Sales Value Proposition Selling - F2F - Exhibitions - Web marketing Resources and skills - Time and money - Marketing literature - Skills training Sales Management - Meet on Monday ( ) - Review key sales metrics - On the job coaching A UK based manufacturer of hybrid power generators
21 Sales Strategy Reach 200m in sales by continuing to deliver a strong sales value proposition that is based on a customised service for both retailers and shoppers - building direct channels and personal relationships with an expanded number of top tier national retailers - creating a shopper community and become more engaged with shoppers through its fashion blog and shopper events - establishing new customer acquisition channels and leveraging existing channels in particular social media to attract shoppers to its website - building automated services for retailers and shoppers via its website - opening new revenues streams including subscription fee based premium services for shoppers - accessing new geographical markets including North America and Middle East
22 Meet the panel Nitzan Yudan Co Founder and CEO FlatClub Tim Brownstone Founder and CEO KYMIRA Jonathan Smith Co-Founder and CEO Pobble Education
23 Asked the panel to address five questions... What is your sales strategy? What was/is your biggest challenge about selling? What surprised you most? What has been your learning experience? What are your top three tips for someone developing a sales strategy
24 Further reading 1. How to Win Customers and Keep Them for Life: Revised and Updated for the Digital Age by Michael Le Boeuf (August 2000) 2. High Performance Sales Strategies: Powerful Ways to Win New Business by Russell Ward (Oct 2013) 3. Getting to Yes: Negotiating an agreement without giving in by Roger Fisher and William Ury (Jun 2012) 4. Purple Cow by Seth Godin (November 2009) 5. Traction: A start-up guide to getting customers Gabriel Weinberg and Justin Mares (August 2014) 6. Predictable Revenue: Turn Your Business Into a Sales Machine with the $100 Million Best Practices of Salesforce.com by Aaron Ross and Marylou Tyler (July 2011)
25 Jurek Sikorski Mob: LinkedIn:
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