Archive for the ‘Velocity’


12 Elements of a Great Sales Playbook

The implementation of a sales playbook can be one of the most impactful initiatives for any sales organization. There are two reasons for this tremendous ROI. First, by following some simple guidelines, it can be a remarkably easy initiative to implement, and second, research shows that this results in 33% additional revenue.

We have done hundreds of Sales Playbook deployments with Dealmaker Smart Sales Playbook. Here are the 12 Elements of a great sales playbook that you should use to guide your implementation. 

1. Repeatable Winning Sales Processes

The key word here is ‘repeatable’. When everyone adopts the same sales process, there is a common language that is understood, not just by sales, but by the whole organization.  Recent research shows that while only 60% of sales teams have a sales process that is well defined, and well executed – those who do are 33% more likely to be High Performers*.

2. Customized to the Buying Cycle

Customers buy in lots of different ways; some purchases are guided by a single decision maker, while in other cases there can be a large buying committee. Some issue RFPs (health-warning!), others invite recognized suppliers to discuss their issues,  an increasing number learn in the Social Universe, and just a few remain with the incumbent supplier trading ‘the devil you know’ for potentailly more advanced or competitive solutions. Unless you visualize the journey the customer wants to take, you won’t be with them when they reach their destination.

3. Sales Tools in Context at Each Stage

At each stage of the buying process, salespeople need to employ just the right tools – at the right time to advance the sale to the next stage in the process.  A B2B sale is not a single event. In fact it is a collection of micro-sales events, each crafted to move closer to the eventual goal. Salespeople are busy and often don’t know which tool they need, where to find it or how to use it at the specific point in the micro-sale. Integrating sales tools into the playbook as part of the sales process is the solution.

4. Industry Sales Process Templates

It is widely accepted that tailoring your sales process to the specific needs of an industry will increase your chances for success. Third party industry sales templates are readily available from suppliers who have been tracking and analyzing millions of sales cycles.  That is the catalyst you need to get started.

5. Many Simple and Complex Processes

One playbook or sales process does not fit all.  Sometimes you are pursuing a brand new customer or a very large deal that demands a complex and sophisticated set of ‘plays’ to win the deal.  In other cases, the transaction might be quick,  one that suggests a diffferent rhythm. Your sales playbook should have the requisite intelligence to support that automatically and serve up the right playbook at the right time.

6. Process, Benchmarks and Insight

Benchmarking delivers many advantages for companies looking to improve the performance of their sales organization. Your playbook must capture those benefits, learn from them, and uncover inisghts that help you to drive your sales velocity.  When deploying a playbook, ensure that you have built in a capability that guides you to progress through these stages of evolution for your sales team.

7. Team Visibility for the Sales Manager

Being a front-line sales manager is one of the hardest jobs in sales.  It is also the critical link in sales.  Unless the sales manager has with all the tools he or she needs to easily manage the business, the whole performance of the sales organization suffer.  You need to provide them with the ‘Easy Button’.  Sales playbooks are often designed just with the sales person in mind.  Remember that the sales manager is the critical link.

8. Integrates with CRM System

This one should be a ‘no-brainer’. The playbook must integrate tightly with the CRM system so when the sales person works with an opportunity, the playbook will always be present, just where it needs to be.  That way the playbook (if it is smart enough) can react to the attibutes of the opportunity, like the size of the deal, or the products included in the opportunity record to present the right playbook for that opportunity. Complete integration with your CRM delivers the  optimum experience for the sales person, and provides sales managers with greater flexibility on how they view the data in the context of the rest of the business.  It is important.

9. Informs Sales Forecast Visibility

Salespeople spend about 2.5 hours each week on sales forecasting, and for most companies, the accuracy of sales forecasts leave a lot to be desired. To maximize the impact of your sales playbook on the accuracy of your sales forecast, there are two things to consider. (1) Does the sales playbook incorporate intelligence that objectively monitors the close date of the sale? (2) Does the sales playbook provide the sales manager with insight into deal vulnerabilities and risks in the forecast?

10. Motivational and Visual

There are only two reasons why an individual does not complete a task.  Either they do not have the competence, or they are not motivated enough  to do it.  Think about that – these are the only two reasons.  Your sales playbook should improve competence and increase motivation.  The competence piece is easily understood.

Motivation is a little more challenging. A study on What Motivates Sales People shows that, perhaps surprisingly for some, compensation is not the primary motivator. ‘Making Progress of Winning’ is ranked by sales people as the main reason they get up in the morning. To entice adoption of the sales playbook (rather than force compliance) your sales playbook needs to provide true value for the sales person – resolve that reward/effort equation, so that the salesperson gets more back from the playbook that they put into it.

11. Social and Collaborative

As B2B companies rely more heavily on social collaboration tools, some of the biggest gainers are going to be salespeople. Sales people who are the leaders in their organization are using social tools such as Chatter in Salesfore to improve collaboration in their own sales teams. Leading sales playbooks help by letting everyone ‘follow’ the plays, contributes to the conversation, and collaborate on the deal. The B2B world is constantly becoming more social and collaborative and you should ensure that your sales playbook accommodates this advancement.

12. Mobile and Cloud

Time is precious, and the sales person’s time is incredibly precious, both to them and to the sales organization looking to maximize the performance of their key quota-bearers.  Since so much of a sales person’s time is spent moving between A and B and back again, they should be equipped with the mobility to connect to their sales playbook allowing them to be responsive, productive, collaborative and consistent at any time, wherever they are. In other applications, mobile and cloud capabilities are being leveraged to facilitate access anywhere, anytime.  It must be the same with your sales playbook. Unless mobile and cloud are core elements of your sales playbook plan, the initiative could face severe challenges in a very short term.

 

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Sales Playbooks & CRMs – The Perfect Tango

I was speaking recently at a conference on Sales 2.0 tools.  During the coffee break after my session I ended up in a conversation about sales enablement and sales playbooks. The conversation got derailed for a while as one particularly active participant wanted to debate the role of mobile and cloud technologies in the future of sales professionals. Seriously? I am not sure I understand how anyone would feel the need to ask that question. In my opinion mobile and cloud are as certain a part of our future as death and taxes – but maybe that’s just me.  Anyway, I am getting somewhat off the topic.  I say ‘somewhat’ only because the sales playbook discussion took a turn, and the debate centered on whether it was essential that a sales playbook was integrated with a company’s CRM.  (As you may know, we have spent a lot of time on this because of the work we do with Dealmaker Smart Sales Playbook.)

Wasn’t it ok to have a defined playbook in a PDF could be linked to from a sales opportunity record?

Well, no!

For me that is almost the same as asking if it would be ok to have all of the contacts for an opportunity in a spreadsheet ‘linked’ to the opportunity record in the CRM.   It just doesn’t make any sense.

There are many facets to Sales Playbooks in general and this topic in particular – but I have addressed here the two most important that you should consider as it pertains to making sure that your sales playbook and your CRM system work optimally together.

1. Integration of Sales Playbook with the CRM System

This one should be a ‘no-brainer’.  Let’s say you use Salesforce as your CRM.  If that is the case, you are already asking your sales team to enter their opportunity information into Salesforce. If that is where your opportunity information is held, then that is where your playbook should be.  It must integrate tightly with the CRM system so when the sales person works with an opportunity, the playbook will always be present, just where it needs to be.  That way the playbook (if it is smart enough) can react to the stages of the sale, the attributes of the opportunity, like the size of the deal, or the products included in the opportunity record to present the right playbook for that opportunity.

But not all integrations are created equal. If you are on Salesforce, then the playbook will benefit hugely if it is ‘native’ on the Salesforce Platform.  Unlike other solutions that are linked to Salesforce, or just lightly integrated, this means that your data resides in the Salesforce Cloud, with the same security as Saleforce, the same performance as Salesforce, and all of the data captured within the playbook is inherently accessible to Salesforce reports, dashboards, and other applications. You do not have to worry about the security of a third party Cloud, the data transfer issues that occur with non-native solutions, or the reliability of a third party hosting infrastructure.

Complete integration with your CRM delivers the  optimum experience for the sales person, and provides sales managers with greater flexibility on how they view the data in the context of the rest of the business.  It is important.

2. Informs Sales Forecast Visibility

Salespeople spend about 2.5 hours each week on sales forecasting, and for most companies, the accuracy of sales forecasts leave a lot to be desired. In fact, based on recent research; companies who do not define and effectively execute a sales process have inaccurate sales forecasts 71% of the time! When success or failure is usually measured in margins far less than 25% – these forecasts are truly worthless. The good news though is that there can be a very strong causal connection between sales process and forecast accuracy.  In that same research study, it emerged that companies who did define and execute their sales process well reduced the level of inaccuracy to 33%.  That is a 200% increase in sales forecast accuracy.

To maximize the impact of your sales playbook on the accuracy of your sales forecast, it must be integrated with the CRM and you should consider.

  • Does the sales playbook incorporate intelligence that objectively monitors  or manages the close date of the sale? that is in the CRM? If you have built in the sales best practices, and your sales playbook can learn about the rhythm of your business, then it should be smart enough to help predict the close date of the opportunity, and identify for the sales person the difference between their opinion of when the deal will close, and a projected close date based on past behavior of winning sales cycle.
  • Does the sales playbook provide the sales manager with insight into deal vulnerabilities and risks in the forecast? It should be able to answer these very important questions: What’s in the forecast?  Are any of the reps counting on unusually large deals to make the quarter? Are all deals being worked? What’s closed? What’s projected? Which deals are moving quickly, and where are the opportunities that are stalled?

Your sales playbook when integrated with the CRM should help you to give those 2.5 hours back to the sales person, improve the accuracy of the forecast for each opportunity, and provide the sales manager with insight into the factors that will help her understand what she needs to do to make or exceed the quota for the team.

(Disclosure: My company, The TAS Group, is in the business of helping companies increase sales velocity using Dealmaker Smart Sales Playbook integrated with Salesforce.com.)

 

 

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Gartner: Cool Vendors in CRM Sales

Gartner just released their 2013 Cool Vendors in CRM Sales report and are selling it on their site for $495.  You can get it  here for free.

According to Gartner, the 2013 Cool Vendors in CRM Sales offer new technologies that improve sales performance and effectiveness. They use mobile, social, big data analytics and the cloud to help salespeople improve their selling skills and find new prospects. We are delighted to be included in the list of just three companies that made it through Gartners diligence.

Key Findings

  • Cloud applications combined with mobile devices (smartphones and tablets) are enabling salespeople to be more engaged in the sales cycle in real time at the source of the interaction with the customer, thus making them more effective and efficient in capturing, managing and updating information throughout the sales process.
  • Internal and external social network intelligence applications are emerging to assist salespeople with finding and developing new sources for lead generation and moving these newfound contacts and opportunities to a quicker close and with greater certainty.

Discontinuous, or sporadic, classroom sales training is approaching a fast demise; sales technology applications that help salespeople use sales methodologies and automate sales processes are showing great promise.

Enjoy the read.  You can get the report here.

 

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8 Steps to Effective Sales Methodology Implementation

There is good news and there is bad news. The good news is that a sales methodology can dramatically increase the sales effectiveness of your entire sales organization, significantly increasing your sales revenue. The bad news is that not all sales methodology solutions are implemented well. There are few distinct topics in the world of the Sales VP that raise such polarized views as the effectiveness of sales methodologies. Sometimes the very phrase ‘Sales Methodology’ is enough to make Sales VPs reach for the Pepto-Bismol. On other occasions, sales leaders can point to successful implementations that delivered consistent revenue increases, and improved sales effectiveness.

In most cases where stellar (or steady) sales performance exists it is founded on well crafted and institutionalized selling processes, founded on a strong methodology, and customized to a company’s business. In other cases we’ve seen well intentioned executives make significant investments in Sales Methodology, Sales Process or Sales Training Programs, only to find sales representatives burdened by onerous processes that are too hard to use, and eventually just fall away.

We’ve put together this guide to help you become part of the winning crowd. Whether you choose to use the TAS Group’s methodology (which of course we’d prefer), or not, we do believe that you will achieve considerable benefit by adopting a sales process or methodology – but only if you are clear as to your objectives, what success means to your company, and what measurable benefits you plan to gain as a result of your investment.

Here we provide a list of what we believe to be some of the Critical Success Factors when adopting a sales methodology, including why we think they’re important. Also we have outlined a mechanism for you to consider them, and reflect on what achieving these CSFs would mean to your organization. We would encourage you to use this with your colleagues to score (and later rank) these for your own business and use them as you choose how to adopt a sales methodology. This is not an exhaustive list, but if you’re on the mark with all of these; then you’ve a much greater chance of success.

1. Better Qualification and Sales Effectiveness

Any good methodology should help your sales team enhance their selling skills, shorten the sales cycle, and close more of the right kind of deals. Sub-optimal performance usually happens because of poor or late access to key decision makers, a failure to create value in the mind of the buyer, and/or when resources are wasted on opportunities that are not adequately qualified. If these issues resonate strongly with you, the methodology you select should have demonstrable models to show how they can be addressed.

Think about the impact that Better Qualification and Sales Effectiveness could have on your organization and decide how important you think it might be as you choose your methodology solution.

2. Standard Sales Process and Common Language

Uncommon productivity results when a sales organization adopts a common way of selling that is understood, not just by the sales team, but by the rest of the departments that support the sales team. Sales representatives are speaking the same language as sales management. Marketing and customer support understand what is happening in the sales cycle, and there is a common understanding of when a sale will close.

How important do you think a Standard Sales Process and Common Language is for your organization?

 3. Adoption Rate: Ease of Use and Level of Sustained Usage

To achieve any real sustained benefit from a sales methodology it’s important that the sales person uses it consistently. We think the sales person’s perspective is as important as that of sales management to make this happen. Perhaps the question should be “What’s good for the sales person, what helps him increase his sales?”, rather than “Wouldn’t it be good if you got your sales team to do this?” If the sales person wants to use the sales methodology; isn’t it more likely that it would truly deliver value to him, and by extension his sales management. Spend some time on this issue. Seek out the average adoption rates of the methodology vendors’ customers. Look for tools that are powerful – yet easy to use. Seek out easy-to-use reinforcement tools that keep the methodology alive and part of the sales person’s everyday life.

Reflect on how important Adoption Rate, Ease of Use, and Level of Sustained Usage is to you as you consider investing in a sales methodology and score its importance to your organization.

4. Leverage Existing Investments: Integrate with your CRM system [Fully!]

If you use a CRM system, you’re already asking your sales team to enter their opportunity information. You’re asking them to work their opportunities in the CRM system.  We would suggest that it would then make sense that the methodology that you choose should integrate tightly with the CRM system, to amplify the benefits of both.  Let’s say you are using Salesforce.  You probably want to make sure that all of the data captured in the methodology application is inherently accessible to Salesforce reports, dashboards, and other applications.  When properly integrated, you do not have to worry about the security of a third party cloud, the data transfer issues that occur with non-native solutions, or the reliability of a third party hosting infrastructure.  Examine the relationship between the methodology vendor and the CRM vendor. Make sure they are strategically aligned – so that as you grow with your CRM system, your methodology integration can keep pace. This means that the learning and methodology can be available just-in-time and in context. As the sales person works with an opportunity in the CRM system, the methodology should be always present, just where the sales person needs it.

For your organization, how important do you think it is to Leverage Existing Investments and Integrate with your CRM system as you deploy a sales methodology?

5. Improve Sales Forecast Accuracy: Know when deals will close

One of the results of deploying a sales methodology should be a consistent sales process used throughout the sales team. When that happens you can remove much of the subjectivity from trying to assess when a deal will close if the methodology provides tools to convert qualitative progress into meaningful quantitative forecast data. Inaccurate forecasts can cause credibility problems for the sales organization, and real operational difficulties (cash management, production, etc.) for the business. If this is important to you we would recommend that you examine how the methodologies that you are evaluating meet this requirement.

What is the impact of inaccurate sales forecasts on your business? Is this a problem that you want to have fixed as part of the sales methodology implementation?

6. Gain Control of the Sales Process by Creating Value for the Customer

If a sales opportunity is real, the customer understands the need to change. He may not, as yet, have figured out the transformation that may be necessary, but an effective sales person, with the right tools, will guide him through that discovery and, through that journey, demonstrate evidence of his understanding of his customer’s business and his ability to create value for him. The methodology you select should provide your sales team with tools to support them gain control of the sale.

More than just assessing the health of the opportunity or defining the appropriate strategy, is your new methodology/process going to help you move deals through the funnel faster?

7. Customized to (the multiple sales functions in) your Business

Is the methodology you are adopting flexible enough to allow customization to your company’s way of doing business, or do you have to adapt what you do to fit in with the methodology? It’s important that a methodology brings structure, but not at the expense of how you want to run your sales team. The methodology needs to be prescriptive enough to optimize sales effectiveness while still being flexible enough to fit your business and support your business objectives. Ideally you should be able to have a common base methodology for your entire sales function, but yet be able to substantially tailor it to reflect the different needs of, for example, an inside sales team as well as a field sales teams, or a new business team alongside existing customer account management.

One of the strengths of a methodology is that it provides a structured approach. But can it be adopted to the rhythms of the different part of your business while maintaining that structure? You should rank this as important if you have small and large sales, new business and renewals etc.

8. Track Record of the Methodology Vendor’s Previous Implementations

The sales methodology market is very fragmented and served by a myriad of vendors. The success of an implementation is a function of the core methodology, how it is applied to your business, the implementation and after sales support, as well as the consultants or trainers who engage with you. We think there is always considerable merit in checking out the past record of your supplier, just as you should do when you are hiring a sales person. Ask about the preparation in advance of the engagement, the actual delivery and training, the experience post implementation, how well what was implemented is being used, and most importantly how it supports the core business objectives.

 

Where Next? – Get Internal Alignment

To really focus on what’s important to your organization, you might like to list the scores that you recorded for each of the questions, and then in the summary table rank which is most important to you. Pick the CSF that you want above all others and place 1 in the Rank column, then move on to the next most important and place 2 in the Rank column, and so on. If you share this exercise with others involved in the project it will help you achieve alignment, uncover what’s really important, and make success more likely.

 

Sales Methodology Implementation Critical Success Factor Summary

Topic

Score

Rank

Better Qualification and Sales Effectiveness

                   

Standard Sales Process and Common Language

                   

Adoption Rate: Ease of Use and Level of Sustained Usage

                   

Leverage Existing Investments: Integrate with your CRM system

                   

Improve Sales Forecast Accuracy: Know when deals will close

                   

Gain Control of the Sales Process by Creating Value for the Customer

                   

Customized to (the multiple sales functions in) your Business

                   

Track Record of the Methodology Vendor’s Previous Implementations

                   

Other:

                   

Other:

                   

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The Challenger Sale Debate – Is it missing the point?

There has been a lot a debate among the sales training / sales enablement community about The Challenger Sale from CEB’s Sales Executive Council.  Some of it has been cogent and balanced, but unfortunately a lot has been mud-slinging and poorly articulated or uninformed specious commentary that does not reflect well on the sales training industry. Most of the latter type has, probably predictably, come from those who might have good reason to be threatened by the seeming ubiquity or pervasiveness of TCS.  On the other hand, where measured arguments have been put forward, it seems that these originate more often from users, practitioners, or observers who acknowledge the value of TCS while wondering about its place in an overall sales eco-system.

I have read commentary from Linda Richardson, HRChally, Jonathan Farrington, Dave Stein, Tamara Schenk, Solution Selling, and others, and you can look at the links and judge for yourself who is engaging in productive debate, who is posturing to protect their own patch, and who is being downright unprofessional.   Methinks the latter doth protest too much!

Most of the anti-Challenger rhetoric seems to rail primarily against how the Sales Executive Council has presented Challenger to the market, and less about the substance of the TCS model, or the research behind its findings.  Many of the commentators take umbridge at SEC’s positioning of the findings as being new or noteworthy.  “There is nothing new or unique here” is a common cant.  Well, clearly that is not true: Otherwise TCS would not have captured the attention that is has, resonated as strongly with the marketplace, or evoked such a – sometimes vitriolic – response from those who feel threatened by it.

At The TAS Group, we faced similar criticism from some of the traditional sales training players when we introduced Dealmaker to the market.  We presented a view that effective adoption of methodology could only happen when supported by intelligent software and integrated into the daily workflow of the sales professional by combining the application of methodology with usage of the CRM. We were subsequently positioned by our competitors as only focused on technology, and we were questioned by the analysts as how we could maintain deep research in methodology and technology at the same time.  Well, that was six years ago, and the evidence suggests that we were not as misguided as some would have thought.   Now, although not everyone has the depth of technology resources that we do, everyone recognizes the need for software as an integral part of a sales performance system.  And, the advancements we have made in methodology during that time has served our customers very well.

I don’t think TCS is either perfect or a complete sales system, or a one-size-fits-all solution; nor do I believe that the folks at the Sales Executive Council think so either.  (By the way, I am struck by the fact that it is evident that many of those who are criticizing TCS had not spoken to the SEC before they expressed their views.)  A complete sales performance system requires everything from market planning to territory segmentation, account stratification, account management, opportunity management and sales process, all supported by skills and technology.

But TCS has a number of undeniable strengths.  It has done a better job of highlighting the need for greater sales and marketing alignment than many of its forerunners.  (I have written about that problem here, here, here, here, here, and here.)  With a level of clarity all too rarely seen in the industry, it has debunked the myth of the Relationship seller.  Where others represent it as arrogant that a sales person should bring insight, or being able to ‘teach’ the customer as being arrogant, I see it as a customer focused approach, and an acknowledgement that buyers are more informed and therefore the sales person has to prepare much more diligently.  It demands that the sales person work hard to understand their customer and the customer’s industry, and requires a level of intellectual capital that all customers should look for from their suppliers.   In my opinion, any effective sales person should be able to bring insights to her customer of what has worked elsewhere.  I think that is table stakes.

Through its membership community, SEC has an effective petri dish to test its approaches, before unleashing them on the market.  Their heritage in research is a matter of fact – not of opinion. While they still have a way to go, I would have hoped that constructive inclusion, a recognition of how TCS complements other methodologies, would have been the response, but sadly …

More importantly though, the success of Challenger – and it is unquestionably successful – points to a failure of traditional providers, particularly those who focus on sales skills.  The fact that TCS has been so quickly embraced points to a deficiency in the alternatives.  Otherwise why would there be a gap in the market for SEC?

Make no mistake.  SEC has done a remarkable job of positioning TCS in the market, and indeed is using the principles espoused by Dixon and Adamson in their book to effectively challenge the status quo.  Something is working – and the response of the detractors only validates the approach.

 

 

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Sales Metrics That Matter [Infographic]

In previous posts I have written about the sales velocity equation and  four levers that impact sales, number of deals, average deal size, win rate, and sales cycle duration.  We did some analysis of the results from the Dealmaker Index Global Benchmark Study, and some interesting facts emerged.  I will follow this with some further analysis – but for now, here is a high level picture of some sales metrics that matter.

 

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Carpe Tabulam – Seize the Tablet: The mobile sales force

[This is the second in a series on 6 Factors that are transforming B2B Sales in 2012.]

The inexorable rise of mobile device ownership is one of the most significant changes in the business landscape that any of us has witnessed in our lifetimes.  In most developed economies in the world, practically everyone has a cell phone, an increasing number of which are smartphones, and the rapid growth of tablet ownership, pioneered by Apple’s iPad, is the fastest market penetration of any device we have ever seen.

The Mobile Landscape

Unless mobile is a core element of the strategic plan of any business, the business will face severe challenges over the next few short years.  For business strategists, marketers, sellers and buyers alike, mobile is becoming the hub around which business revolves.  And within the mobile landscape, we are seeing pointers to an app-centric (native or web-app) smart device with a slick user interface and multi-touch gestures as the horizon to which we are all heading.

As I write this in early 2012, it is not unreasonable to ask whether Nokia or Research in Motion (the makers of Blackberry) will survive the hyper-competitive environment that has been thrust upon them by Apple and Google (Android) devices.  Formerly titans of the cell phone market, Nokia and RIM are struggling to match the ingenuity and velocity of their more inventive competitors.

Nokia, struggling to reinvent its smartphone business around Microsoft’s Windows software, had a loss of €929 million in the first quarter of 2012 as sales plunged 29 percent because of flagging demand for its older Symbian smartphones. The loss, equivalent to $1.2 billion, contrasts with a €344 million profit a year earlier. Sales fell to €7.4 billion in the quarter from €10.4 billion a year earlier. The Nokia president and chief executive, Stephen Elop, said Nokia would accelerate its cost-cutting efforts amid what he described as a mixed response to its new Lumia smartphones with Microsoft.

For Research in Motion, it is difficult to see how they will survive as a standalone entity.  RIM’s stock declined 75% in the twelve months to April 2012, and in the enterprise, its core market, it is losing market share at a very damaging rate.  While email, instant messaging, and the other network services RIM provides its customers remain extremely popular with users and respected as first-rate technology, the company has struggled mightily to keep its BlackBerry smartphone and PlayBook tablet products relevant in the face of increased competition from Apple and Google.

The other major casualty of the rise of Apple has been Adobe’s Flash. Flash is a multimedia platform produced by Adobe.  Flash has been the standard for adding video, interactivity, and animation to websites.  According to Adobe:

  • 98% of enterprises rely on Flash Player.
  • 85% of the most used sites use Flash.
  • 75% of web video is viewed using Flash Player.
  • 70% of web games are made in Flash.

But in 2010, Steve Jobs had the courage to question the applicability of the Flash technology going forward.  Jobs made waves and enemies when he banned Flash from use on all iOS devices.  iOS is the operating system from Apple.  Jobs was almost unanimously criticized by the industry.

After a largely public battle between Apple and Adobe, the latter capitulated in November 2011 announcing that Adobe is stopping development on Flash Player for browsers on mobile and increasing their investments in HTML5, Apple’s recommended platform.

When you combine all of these data points, you can derive your own picture of how the short-term mobile landscape will evolve.  If you accept my hypothesis that mobile is in fact one of the most significant changes in the business landscape that any of us has witnessed in our lifetime, then you should consider what that might look like in terms of required capabilities for your business and the mobile platforms that will dominate.

In our own business, we’ve committed to delivering our Dealmaker sales performance application solutions in a mobile world; and, it is possibly interesting to relate how our customers’ opinion changed during the lifecycle of our mobile project.

In late 2010 and early 2011, when we first discussed with our customers their need for an iPad enabled Dealmaker, the interest level was only moderate.  Our customers indicated that they would indeed be looking at it in the future – but that it was not generally a topic that was urgent.  We listened to our customers, but also listened to our gut instincts. We took a view that if we wanted to maintain our leadership in the sales performance application marketplace, that we should invest ahead of the (mobile) market demand, and trust our instincts.  So we ploughed ahead with the technology investment to deliver a HTML5 based web-app that would operate equally well in a web browser on a laptop as well as on iOS (from Apple) and Android (from Google) mobile platforms.

Dealmaker is a complex product with a broad range of capabilities that help sales organization to sell smarter – to win more sales opportunities – through intelligent sales process, automated deal coaching and collaboration tools, and to manage better – through accurate sales forecasts, predictive sales analytics and deep account planning and management methodologies embedded in the software.  We decided that if we were to deliver Dealmaker on a mobile platform, then should go “all in” and provide all of these capabilities in the hands of the mobile sales worker.  This was not an insignificant task.

When we first showed Dealmaker on an iPad at a customer event in November 2011, our customers were very impressed with the capability, but were singularly unimpressed or surprised by the fact that we had undertaken this initiative.  These were many of the same people who, just nine or twelve months earlier, had expressed just tepid interest in mobile solutions for their sales teams. It was a  lesson in product management and the need to balance customer input and market research with informed vision – and we were happy that we had made the right decision.  During 2011, mobile solutions, almost surreptitiously, became a baseline requirement – fueled by a ubiquity that caught many people by surprise.

The evolution of the mobile-centric economy

At the end of 2011 there were just over 327m mobile subscribers in the US.  That’s in a country of 315m people.  What are they doing with those devices, (apart from following Lady Gaga on Twitter)?

Well, for most of us, our mobile device has become an extension or part of who we are, plugged in, and always on, in an increasingly connected network.

In the first three months of 2012, Verizon Wireless, the largest cellphone services in the US, reported that fewer customers joined its service compared to the same period in 2011.  The predicament for carriers is that because most people who want a cellphone already have one, their subscriber growth has been anemic. That was the case for Verizon, which said it added 734,000 subscribers in the first quarter, 16 percent fewer than a year earlier.  However, Verizon still managed to post a profit of $1.7 billion for the quarter, largely because of the fees that customers pay to watch videos, browse the Web or play music over Verizon’s network on their smartphones and tablets. Revenues generated from mobile data services were $6.6 billion, up 21.1 percent.

According to estimates by Cisco, by 2016 there will be 10 billion mobile Internet devices in use globally in a world where the population is projected to be 7.3 billion.  In that same time-frame, smartphone traffic will grow to 50 times the size it is today, according to Cisco. To cope with this increasing demand, all the carriers say that they need more spectrum, the government-rationed radio waves that carry phone calls and wireless data.

As an example, in Verizon’s case, to get more radio waves, they made a deal in December 2011 to buy spectrum licenses from a consortium of cable companies including Time Warner, Comcast and Cox Communications, for $3.6 billion. (T-Mobile USA and Metro PCS, smaller wireless carriers, have urged the Federal Communications Commission to block the deal, claiming it would put too much spectrum in the hands of the nation’s largest carrier.)

And just in case we were unsure about mobile being the hub of future Internet traffic, Facebook paying $1 Billion dollars for Instagram is another data point to consider.  The three-day sprint to the deal started on April 5, 2012 when Mark Zuckerberg, CEO of Facebook, picked up the phone and asked Kevin Systrom, CEO of Instagram to meet. At the time, Systrom was just hours from signing a deal for a $50 million venture-capital investment that would put a $500 million value on his company, which had just 13 employees and no revenue.

Instagram makes a smartphone “app” that lets people take photos, dress them up with special effects, and easily share them with friends. In the first three months of this year, its user base nearly doubled, to about 30 million, the company said at the time. After Instagram released a version of its app for phones powered by Google’s Android software on April 3, the user base shot up again, to around 35 million at the time of the Facebook deal.

Mark Zuckerberg was particularly concerned when he saw millions of people signing up for the Android app, people familiar with the matter said. One concern: Facebook was falling behind in mobile as younger start-ups were innovating more quickly.

Knowing your mobile customer

The market that we serve is business-to-business (B2B) sales organizations. The promise we make is that we can help our customers to increase revenue and gain more predictability in their business through our Dealmaker solution.  We believe the unique value we deliver is the result of combining two disciplines; (1) intelligent software applications and (2) deep sales methodologies. Innovation is at the core of our efforts and the Dealmaker intelligent software platform is the engine driving revenue growth for our customers.

To deliver on our promise, it is critical that we can view the market through the eyes of our customers – and in the context of mobile, we need to understand how our customers themselves can deploy mobile solutions, and how their customers are using mobile in their day-to-day interactions.

If you are a sales person, sales leader or business leader, then you should join me in seeking a deep understanding of how to make your sales person’s interactions with their customers more effective. How will she and her customer communicate, learn, and engage, both internally and externally?

The short answer is that the business world in which they operate is: always on, increasingly connected, and peppered by frequent interruptions.

Attention span is short.

Instant gratification carries a premium.  Information is plentiful, but effective analysis of that information is lacking.

Yesterday’s news is a valueless currency as we use our mobile devices to learn about business happenings, world events, and personal activities in a torrent of up-to-the-minute information flow.

- o – o -

A business thrives when it can influence its customers’ thinking in a positive way.  In order to do that, the business must first understand how the customer wants to interact, before the sales cycle, during the sales cycle and after the sale. To change the mind of the customer you first need to get inside it, and understand what is important to the specific profile of target buyer that you seek to influence.

According to Pew Research, smartphone usage in February 2012 is most prevalent among the 18-29 age group, 66% of whom own a smart phone, followed closely by the 30-49 age group (59%).  Other key indicators of smartphone usage are the level of household income where smartphone penetration is at 68% among the $75,000+ income group; 60% where users are college educated; and men (49%) slightly outpace women (44%) when it comes to smartphone adoption.

The accelerating pace of change

And as I mentioned earlier, the pace of change continues to accelerate. Looking just at the last ten years, we can observe the rate at which different technologies were adopted.

Starting with Apple’s iPod in 2002, it took nearly a year for Apple to reach the milestone of a million units shipped. RIM’s Blackberry actually outpaced the iPod in 2002 reaching that threshold in 300 days.  In a continuing move towards increased mobility, the world embraced netbooks in 2007 and bought one million units in just six months.  The time to achieve this level of penetration has continued to shorten and Apple’s iPhone took just 70 days in 2007.

When the iPad was released a whole new market opened up and in just one month, a million users were experiencing  new ways to consume information, browse the web and interact online.

The tablet phenomenon has outstripped everyone expectations. At this point in time (April 2012), 20% of all US adults own a tablet device. Propelled by an unparalleled user experience, increased bandwidth availability, and a drive for instant access everywhere, tablet ownership almost doubled between December 2011 and January 2012.

When the iPad 3, or New IPad as it was called, was released in March 2012, Apple shipped three million units in the launch weekend, making the time to reach a million less than one day!

The number of iPads now been sold by Apple is outstripping laptops sales from any of the traditional manufacturers.

Conclusion

As we reflect on how to equip our sales teams to interact with their increasingly mobile customers, we need to consider how they learn, how they use our business systems, collaborate, and communicate; all through the lens of a mobile worker.  Using an iPad (or other tablet) in a sales meeting changes the dynamic of the meeting. The psychological barrier that accompanies the traditional sales person presenting from behind the lid of a laptop goes away. Customers become involved and reach for the sales person’s iPad to run the presentation themselves, or, in a software demonstration, they often want to take control and see what happens as the swipe, tap and pinch.

Workers leave their iPad sitting around on their kitchen table, always on, always connected, a portal to their corporate information systems, their daily news sources, or their learning environment.  Skype or Facetime calls from iPads, iPhones or other similarly equipped devices puts video interactivity just a tap away, and new and more intimate communication norms are emerging.

As you develop your strategies for your sales force in 2012 and beyond, I’d encourage you to ask yourself if you’ve considered whether you’ve adequately factored in this unstoppable force.  Are all of your systems fully mobile-ware? Can new hires learn about your company, your products, your customers, and your target market from their mobile device?  How much have you thought about the shortening attention span of learners and users alike that accompanies the mobile mindset? When your managers seek to support and coach their direct reports, can they find the information they need on their mobile device, and collaborate with them in that mode?

Most new technologies go through two phases of adoption; the first is when we find new and better ways to do things that we already do, and the second – and definitely more exciting phase – is when we uncover things that we can now do that we could never do before.

Now is the time to Carpe Tabulam – seize the tablet.  (I’m sure the Latin scholars out there will correct any inaccuracies in my grammar.)

As ever, I’d welcome your comments.

[The next post in this series will explore the impact of Social Networks on selling.  If you want to be notified of new blog posts you can always subscribe at the top right of the blog here, or follow me on Twitter @dealmaker365]

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Video Blog: So you think you have a $500,000 sales forecast?

I spoke at InsideView’s Insider Summit meeting in March 2012. The topic was about sales metrics that you might measure to calculate your sales velocity – the revenue you can achieve every day – and some ideas about what you might do to improve your sales velocity, and also achieve accurate sales forecasts.

The video has been edited to remove the Q&A and to make some of the slides easier to see. Click play to view the video. It runs about 25 minutes.

 

This is my first video blog, and I’d welcome any comments on the format, or comments or questions on the content.

 

 

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6 Factors that are transforming B2B Sales – Part 1

I recently had the privilege of speaking at the Sales 2.0 Conference in San Francisco.  My session – entitled Six Factors that are Transforming B2B Sales – seemed to strike a chord.  Over the next few posts I want to recount the thoughts I shared and get your views.

I started my presentation with a perspective on the current landscape and the environment in which we all seek to survive and thrive.

– o – o – o – o – o –

Do you ever have one of those days when you get up and hope that just for one day nothing changes?  Sometimes it feels as if we are barely hanging on, buffeted by a torrent of innovation and evolution.  But maybe today will be the day when you won’t have to adjust or adapt, reorganize or rework …

But, I don’t think so.

Things are happening more quickly than ever.  In the next 30 minutes;

  • 700,000 apps will be downloaded from the AppStore,
  • Users will spend 146 days on Facebook – yes, in the next 30 minutes – think about that, and
  • 21,000 new Twitter accounts will be created

“But wait”, I hear you say, I’m concerned about B2B sales – should I care that Lady Gaga has 20 million followers on Twitter? (That’s about one person for every 20 people in the US, or one for every 400 in the world.)

I think we can learn from this – not just from the fact that Lady Gaga has 20 million Twitter followers – but the overall metamorphosis of human interaction that we are witnessing first hand. Because, if we observe carefully, we will see that consumers are often the first to travel the journey that businesses subsequently follow.

Consumer Behavior is a Predictor of Business Behavior

Consider the changes you’ve seen in business over the past 10 years – particularly when it comes to technology – and you will notice that consumer behavior is always a good indicator of what will happen in the business world.  Trends that you see in B2C interactions are usually followed by similar engagement in the B2B world.

As an example: Consumers were the first players in the App Economy, downloading applications from Apple’s  AppStore, only to be followed by businesses that are now both distributing and consuming applications in this self-service model.

In the software world, online application stores from new-economy players such as the AppExchange from salesforce.com, and Google’s Marketplace, now sit alongside offerings from the traditional software companies.  SAP provides the Ecohub that it describes as ‘the community-powered online solution marketplace that is your trusted source for discovering, evaluating, and buying solutions from SAP’.  Microsoft – who for a long time might have been accused of fighting the subscription economy – now has it’s own Marketplace where, as of March 2012, provided 70,000 apps, and looking to one of its main business application areas, Microsoft has made considerable investments in the Microsoft Dynamics Marketplace where it serves up ERP and CRM solutions.

HP and Oracle also jumped on the appstore bandwagon, both unveiling platforms (in late 2011) designed to help others get their own app store initiatives underway.  HP’s Storefront Portal offers a framework capable of enabling two-sided business models: wholesale and retail.  Oracle announced its own Digital Store platform, designed to help service providers manage the complete content lifecycle, spanning content submission, test and approval and storefront management of their app stores.

In April 2012, Amazon.com’s Amazon Web Services business, facing looming competition for its business of renting online data storage and computing, announced a store where customers will be able to rent business software from a number of third-party providers, including I.B.M., Microsoft and SAP. The offering appears to be something of a blend of the software as a service, or SaaS, business of companies like Salesforce.com and NetSuite, and the mobile app stores popularized by Apple and Google. Like SaaS, customers are renting their software, and can easily discontinue use in favor of another vendor, something much more difficult using traditional packaged software. And like an app store, the AWS Marketplace has several vendors, plus a means of discovery and comparison among products.

Think about this: Not all consumers are B2B buyers, but all B2B buyers are consumers. As if by osmosis, people are conditioned to new ways of thinking by the interactions they have as consumers, and begin to expect similar capability or convenience in their business connections and interplays. And it happens without any one noticing; incremental changes in behavior and expectation, satisfaction and dissatisfaction.

The fact remains that all business people – including both sellers and buyers – are consumers, and the lessons they learn in ‘consumer-land’ shape their thinking and expectations in “business-land’.

Consumers, salespeople and B2B buyers are changing, and not just in a small way. It’s almost as if we are seeing a remodeling or metamorphosis of the rules of both intrinsic and extrinsic behaviors before our eyes.  If we take the time to step back for a minute we can observe continuous evolution.  It is evident in how people connect, communicate, and collaborate, their quest for visible progress and feedback, their limited attention span, changing personal motivations, unusually peripatetic career paths, a desire for increased autonomy and self-mastery, actions more redolent of entrepreneurialism than traditional workplace obedience, a preference for where and how they work, an expectation or demand for an array of tools to apply, an acceptance of disruption and interruption, and a predilection to disrupt and interrupt.

If you’re hoping that today will be the day it doesn’t change, then I expect you are out of luck, and the best you could hope for is that the rate at which change is happening will find cause for pause, and you might get a chance to catch your breath.

On the other hand, you could choose to embrace the change, and be part of it, seeking new ways to do the tasks that are perhaps mundane or not operating optimally, and then – and here is the exciting part – you might find that there are new opportunities emerging that you never thought possible.

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Please sit still this won’t hurt a bit…I have some questions…

Guest Post: Tim Foster, Sales Director EMEA, The TAS Group

Over the first month of this year, I asked a lot of sales people and their bosses a simple question; “What is the most difficult element of selling in 2012 and what will make or break your year?”. The same two answers came up frequently:

  • I can’t get access to the decision makers
  • Customers don’t follow through on their committed actions

These are not new problems, and not ones that seasoned sales professionals like to admit to themselves. But things have come to a head. For the last five years sales people have been told to create value, not just communicate value.

We have all warned and been warned that the buyer now controls the buying cycle, and that much of it is happening without the seller present. In many cases (dare I say most?) the sales cycle has been reduced to a short interaction to validate buyer assumptions and haggle over price. Buyers are now used to this pattern and as a result have Zero Tolerance for the traditional Discovery Call.  The bar has been raised. Without doing something dramatically different you won’t get access. Even in the rare cases that you get in the door, they will perhaps smile, but you will not get them to agree do anything if you follow the old traditional approach.

No one likes to be confronted with their failure, least of all me, so let me try to explain, in a positive way what’s going on and what we need to do.

The symptom is the difficulty of gaining access and provoking action.  The underlying cause is the inability to build consensus and alignment between you and the buyer. You can only build consensus if people remember you and what you say. This means that what you say has to be something that represents true value creation for the buyer.

What you say must be an idea that the buyer has not come up themselves, and, crucially, must be something that is truly useful from their perspective and delivered in context of their current challenges, their situation and their goals. If you don’t you do that, you are merely a distraction. At the heart of this is the age-old perception problem that many in sales or “Business Development” cannot be trusted. And, without trust it is hard to have to gain the customer’s confidence. So, before the conversation starts, you have to earn the right to engage, discover and advise the customer.

At the TAS Group we are cognizant of the fact that at the end of the day, the customer’s opinion is the only opinion that matters, and to change the customer’s mind, you have to first get inside it.  We think the Trust Equation is a good framework to use to virtually place yourself on the same side of the table as the customer.

Trustworthiness = (Credibility + Reliability + Intimacy) / Self-orientation

How the Trust Equation Works:

It all starts with Credibility:

Credibility Builders include:

  • Accuracy and completeness of your story
  • The ability to grasp and even predict the customer’s key business challenges and the ability to articulate the way you have solved similar issues for others in their industry.
  • Confidently and proactively reference other customer outcomes ( avoiding the often awkward phoney war of Discovery first,  references 2nd)

Credibility Killers include:

  • Exaggeration
  • Overstating your knowledge
  • Lack of specific detail that demonstrates a lack of preparation.

Reliability is just ‘table stakes’, but a critical factor.

Reliability Builders include:

  • Delivering on what you say you will do
  • A connection between promise and action; doing things the way the customer wants them done
  • Marshalling all the required resources within your company and beyond
  • Helping the customer look good with their peers or superiors.

Reliability Killers include:

  • Missing deadlines
  • Inconsistency
  • Inability to move things forward for the benefit of the customer. They hate having the same conversation twice – or boring conversations even once.
  • Wasting their time

Intimacy shows that you are not afraid of being vulnerable:

Intimacy Builders include:

  • Courage to do the right thing
  • Leading (which might not be the safe option)
  • Candor and willingness to demonstrate emotional commitment to the customer

Intimacy Killers include:

  • Artificial behavior
  • Saying just what the customer wants to hear
  • Arrogance or belligerence.
  • Closed mind set, or fear of taking risks. (Ditch the comfort blanket of the 14 slide company overview that you like to warm up with)

Self-Orientation is critically important.  Getting this wrong destroys your efforts everywhere else:

Self-orientation Builders include :

  • Active listening rather than talking. I mean really listening to what the customer has just said and building the dialogue around that before moving onto the next point you want to make.
  • Focusing on the reality of the here and now and a genuine curiosity of the customer’s problems is essential.

Self-Orientation Killers include:

  • Being in it only for the money and your benefit
  • Always needing to be right
  • Winning at all costs with limited evidence of long term commitment.

Think about a good sale you made recently. Everything seemed right and if you were to ask the customer why they bought from you they should recognize that you made it easy (or easier) to buy from you rather than the others. Building trust and a relationship with the customer makes it easy for the customer to buy.

This approach requires a shift in mind-set as well as the learning and application of a new way of working with customers. It’s a fine balance between asserting control and getting on the other side of the table.

Not all customers will let you stay on their side of the table, and not all sales people will find that a comfortable place to sit. I urge you to try it. You just might like it and make things a little less painful for the customer.  In turn, that will make things a lot less painful for you, and will validate in the customer’s mind their decision to give you access, and strengthen their desire to follow though on their committed actions.

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