These slides were originally presented by Rich Blakeman, sales vice president for Miller Heiman, in a presentation, Cross-Selling & Up-Selling:Uncovering Hidden Opportunities, to the San Francisco Chamber of Commerce, Tuesday, July 14, 2009.
Marketplace and Quality Assurance Presentation - Vincent Chirchir
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Cross-Selling & Up-Selling with Miller Heiman
1. Cross-Selling & Up-Selling:Uncovering Hidden Opportunities Rich Blakeman - Sales Vice President, Miller Heiman SAN FRANCISCO CHAMBER OF COMMERCE Where smart business starts
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4. How does it look to you? This year I will achieve my sales quota. ? % ? % Others World Class
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6. How did it look last October? This year I will achieve my sales quota. 83% 48% Others World Class
8. Who we are Miller Heiman – The Sales Performance Company Miller Heiman helps companies and individuals that compete for high-value business-to-business sales develop strategies, processes and skills to consistently win business – especially when the sales process is complex and the marketplace demanding. We have been in business for more than 30 years. Over this time we’ve evolved into the world’s largest sales performance consulting and training firm and the preeminent thought leaders in the space. Our reach: Over 1,250,000 alumni Over 10,000 client engagements Programs translated in 17 languages Operating in over 35 countries
9. 2009 Miller Heiman Sales Best Practices Study Annual study reveal trends, issues, opportunities in a complex selling environment Benchmarks year-over-year trends Survey conducted in October 2008 Sixth year of study 3,900+ sales professionals participated in current study 21,000 participants to date
11. Cross-Selling Defined Cross-selling (verb) Expanding the number and quality of relationships between key people in the buying organization and the selling organization, and/or Making additional relevant solutions available to the buying organization (e.g., new products).
12. Up-Selling Defined Up-selling (verb) Converting an initial order into a more profitable order. Typically manifested by the customer's commitment to: (1) additional units of the seller's solution – or – (2) a premium version of the seller's solution. This doesn't mean selling one's customers something they don't need; it does mean selling one's customers more of something that they do need.
13. Timing for Effective Cross-Selling & Up-Selling Buying Process Status Quo Need to Change Recognized Define Problem Evaluate Options Select Best Implement Assess Value
14. Timing for Effective Cross-Selling & Up-Selling Buying Process Status Quo Need to Change Recognized Define Problem Evaluate Options Select Best Implement Assess Value Up-Selling Cross-Selling
15. Sales Leadership Challenges Today Increase average deal size Effectively introduce new products/services to the market Grow sales without significant increases in resources Differentiation through increased value
17. Only 34 percent of top-performing sales organizations report that their customers understand the full breadth of their capabilities, and only 22 percentof all other organizations make the same claim. 2008 Miller Heiman Sales Best Practices Study
18. Existing Client/ Customer New Client/ Customer Proven Product/ Service 1 3 New Product/ Service 2 4 1 - 4 = Most to Least Predictable Predictability Analysis Model
19. Our sales force is very effective at selling new products / services. 74% 37% Others World Class
21. The Number One Reason People Don’t Cross-Sell Up-Sell FEAR
22. Fear of Cross Selling & Up-Selling Fear of losing is the number one reason salespeople do not cross-sell and up-sell more often.
23. 92% 91% 43% 37% Others World Class Others World Class Our organization regularly collaborates across departments to manage strategic accounts. Sales and Marketing are aligned in what our customers want and need.
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25. 4 Steps to More Effective Cross-Selling & Up-Selling Develop Your Ideal Customer Profile Map the New Buying Process Understand the Concept Define Unique Strengths Step 1 Step 2 Step 3 Step 4
26. Develop Your Ideal Customer Profile Step 1 Consider the characteristics of those clients who would have the greatest need for your added product/service: Create a list of five key characteristics. It’s not who has a need but who has the greatest need It’s not who will buy but who will buy quickly Quick wins help reduce Fear This is the criteria you will use as a sorting device to prioritize.
27. Example: Ideal Customer Profile Fast sales head-count growth Higher than expected sales force turnover Client has shared their concern as to whether they have the right people New VP of Sales in place Companies in the midst of a merger or acquisition Size of sales force Which current clients match your Ideal Customer Profile?
29. Step 2 Map the New Buying Process Who will help you gather information? Do you know this person – do you need to develop this person? Who will make final decision to buy? Do you know this person – do you need additional info?
30. Develop Your Coach Role: acts as a guide for cross-selling and up-selling Proactively develop at least one A Coach can provide and interpret information about: Validity of this Opportunity Other Buying Influences Focus: your success with this proposal Asks: “How can we make this happen?”
31. Recognize where the decision will get made. Who holds the budgetary/financial responsibility Who’s ultimately responsible for the success/failure when purchasing your product/service Calling at the right level is critical Top-performing sales organizations include client executives in the sales cycle1: 52 percent more likely to gain access to key decision makers 57 percent more likely to systematically identify the issues of key individuals 56 percent more likely to have relationships and dialog at the highest executive levels with strategic accounts Must be selling at the Economic Buying Influence level! 1 - Source: 2009 Miller Heiman Sales Best Practice Study
32. Step 3 Understand the Concept Finding the optimal solution Every customer has a solution image or Concept Customers buy what they think your solution will enable them to accomplish The Customer’s Concept evolves during the buying process The sales professional needs to understand the Customer’s Concept Customers have Concepts; companies do not
33. Customer’s Concept Accomplish something Fix something Avoid something Create a Valid Business Reason Provide a compelling reason for this person to invest time with you
34. Is bigger better? Why? What is Unique and better about the larger solution? What are your Strengths? How are your Strengths important to your customer? Define Unique Strengths Step 4
35. Differentiation Products, services, or solutions must be differentiated before the customer makes a decision to buy, or that decision may be based on price alone Customers do not buy products, services, or solutions per se; they buy what they think or feel the products, services, or solutions will accomplish for them Your Customers must see a link between your product, service, or solution and their Concept So What? Prove It!
36. Review of the 4 Steps to EffectiveCross-Selling & Up-Selling Develop Your Ideal Customer Profile Map the New Buying Process Understand the Concept Define Unique Strengths Step 1 Step 2 Step 3 Step 4