I ran across this great article from the Value Forward Group. These guys have some great content and are definitely worth a look!!!
How to Use Cross-Selling Techniques
to Increase Sales
by Paul DiModica
To increase sales performance and customer account lifetime value, cross-selling is a key business tool that when used correctly can close complicated sales opportunities, eliminate competitive issues, and create a "visual value" of your market differential.
But when cross-selling is deployed incorrectly, it can confuse buyers, delay sales cycles, and sometimes induce prospects to ask for discounts. So, the management of your cross-selling offer and packaging is strategically important to make cross-selling a successful sales tactic.
15 Techniques to Make Cross-Selling Work
When selling prospects, always have them complete an assessment questionnaire (20-50 questions) to help determine what type of packages you can wrap and offer to them.
Cross-selling should be a pre-developed company-wide technique, not an individual salesperson's option to close one deal.
Develop at least three packaged offers with specific price points targeted at prospects based on their title (the VP of Marketing Package at $50,000, the Marketing Manager Package at $8,000, etc.).
In cross-selling, timing is important. Do not use cross-selling as a loss leader during the pre-sales process if the prospect has not selected your firm yet. Instead, use cross-selling as way to close the deal by adding value or to increase profit per sales. Add value; don't discount.
Always offer three different pricing options with the middle offering being your targeted goal of your average sale (i.e., Option A for $10,000, Option B for $20,000, or Option C for $30,000).
Name your cross-selling offer based on the title and industry that you are trying to sell to (i.e., the Executive Operational Assessment for $50,000). Remember, sell blue shoes to blue shoe buyers.
To increase your cross-selling success, package all services as a product. This makes it more digestible for prospects to buy.
Bundle products and services together as one offering for a flat price, spreading your gross margin over the entire price.
Make cross-selling time dependent. (i.e., if the prospect makes a decision to go with your firm by September 1 and you would give them 14 months of support for the cost of 12 months).
Always have "visible" cross-selling packages that tease prospects to seek you out, but also have "hidden" packages that you hold in reserve to use as a negotiation tool when needed.
Never offer more than three cross-selling options to existing customers or new prospects. Too many options confuse buyers and extend sales cycles. Less is better.
Analyze your customer purchases for the last 24 months and develop specific packaged cross-sell offers based on their needs, not yours. Mine your current customers for premeditated sales opportunities.
Always offer a "one sheet" brochure of your packaged cross-selling offer.
Develop a planned cross-sales program based on a 12 month timeline where you contact existing customers on scheduled dates to offer them a pre-packaged offer that is time dependent.
Develop cross-selling packages based on sales objections. The "Your service costs too much" sales objection gets offered Option A; the "I am going to make the decision next month" sales objection gets offered Option B.
Cross-selling is a premeditated revenue capture model. To sell more, develop a proactive approach where your cross-selling is a planned sales process . . . instead of a reactive process.
"A mediocre salesperson tells. A good salesperson explains. A superior salesperson demonstrates. A great salesperson inspires buyers to see the benefits as their own."
Anonymous
Friday, August 1, 2008
Wednesday, July 30, 2008
Essential Ellements of a Business Case
I picked up this article from TechRepulic.com -
It's about writing/ creating a good business case, and it's from the IT perspective. I find several points here to be insightful for the Company trying to sell software, services or IT to another org...
Enjoy!
In a recent article, Making a case: How to become a thought leader and influence decisions, I gave some practical advice on influencing decisions and improving one’s ability to present a compelling business case. But what exactly is a business case and how to go about putting one together?
What’s a business case?
There is a fallacy that a business case is a thick tedious manuscript, written by professional consultants in an incomprehensible language. It’s printed on high-quality paper stock and placed onto the top shelf of an executive’s office to be used as a breeding ground for dust bunnies.
This is not a business case; this is a disaster.
The sole role of a business case is that of a communication tool, composed in a language that the target audience understands and with enough detail to facilitate decision making on his or her part. There’s no magic formula when it comes to the size of a business case. The size is irrelevant. What is relevant is that the business case provides all the necessary information to make the job of the decision maker possible. Brevity is always a virtue.
As a matter of fact, a business case does not have to be a written document at all. It could be in the form of a verbal message, but the structure and the content is, nevertheless, the same as if it were written up.
Think about it, you present and hear business cases all the time, with your children, parents, significant others, friends, and colleagues. Did your teenage daughter convince you that she can’t possibly survive without an iPod? (”I can listen to class notes and presentations and will improve my marks.”) How on Earth did you agree to go on that Mediterranean cruise with your in-laws? (”It will make me happy, dear. Besides, Dad naps all the time anyway.”)
This is it, no mystery, just a communication tool.
Structure
I have been asked so many times about the best structure for a business case that we have placed a template onto our corporate website (www.bizvortex.com). It consists of the sections I will describe here, and you’ll find that it is quite flexible. Nothing is really set in stone, including the headings. This is an important point, because flexibility is what you need to put a truly convincing case together. A business case is not a government form in which you tick boxes as you answer a gazillion questions; it’s a medium for your brilliant business thinking.
Executive Summary
Always written last, the Executive Summary presents the essence of the business case, in a condensed format. Pick the most important points that allow for a coherent picture, but strive to keep it concise: it should not be longer than one or two pages. Certainly include objectives, proposed solution, benefits and costs, risks, and key dates.
Objectives
Describe why this case has come about. Typically, the reason is one of the following:
* An opportunity that generates revenue, cuts costs, or deliver some other benefit
* A mandatory change, something that needs to be complied with.
* A correction of a wrong
This section can be structured in a few of ways. The first approach is appropriate for cases that deal with correcting a wrong. Describe the current situation and explain what the adverse impact is, be it of a financial nature or otherwise.
The second approach, more suitable for cases that deal with new opportunities or mandatory changes, where the status quo is not necessarily deficient, is to use the following structure:
1. Current state. Describe how the world is today.
2. Future state. Describe how the world will look tomorrow, when the proposed change is implemented.
The third approach, most appropriate for new opportunities, is to state what the case is proposing and describe why it is being considered. Why now?
Use the structure that works for your situation.
Project alternatives
List several alternatives you considered, complete with benefits and costs, and risk assessment. Show how they align with such considerations as corporate and business unit strategy, vision, current priorities and other factors discussed in the blog I mentioned at the start of this piece.
How many should you list? Three is a good number, five is too many, but never just one.
You should use your judgment and include the appropriate amount of detail so not to overwhelm the reader and yet provide enough information for effective decision making. This is the old “know your audience” maxim, and it rings especially true here.
Preferred alternative
Always state what the preferred option is and explain why it is preferred.
Implementation plan
It’s usually appropriate to provide some ideas on how the implementation of the preferred solution should proceed, to show that you’re presenting not a pipe dream but a carefully thought through solution. Rarely is it necessary to create an exhaustive plan, unless specifically required by the decision makers.
Appendices
Include all supporting information, such as cost benefit analyses, reference materials, calculations, and charts.
The case for business cases
The importance of a business case to its author is enormous. Present a solid business case, and you have positioned yourself as knowledgeable thinker and innovator. If noted by the decision makers, a promotion is certainly possible. In a case of a consultant, there will be repeat business. On the other hand, a weak business case is a career-limiting move. Sadly, I see a lot of business cases that are not worth the paper they’re written on, and I always wonder how many careers are cut short as a result. I can’t even fathom why this keeps happening in this day and age, when excellent resources, such as coaching, are available.
From the perspective of the organizations, the stakes are equally high. A solid business case leads to well-informed decisions that are most appropriate in a given business setting, while the one that fails to provide adequate level of detail, or disregards relevant data, or makes incorrect inferences, or does any number of other things wrong, leads to suboptimal decisions that are very expensive to any organization, in terms of the time, money and lost opportunities.
I’m convinced that the vast majority of unsuccessful projects fail not because of poor project management, but because of poor decisions with respect to the choice of projects. A good business case helps to make right decisions and avoid horrible waste.
Do it right.
Ilya Bogorad is the Principal of Bizvortex Consulting Group Inc, a management consulting company located in Toronto, Canada. Ilya can be reached at ibogorad@bizvortex.com or (905) 278 4753
It's about writing/ creating a good business case, and it's from the IT perspective. I find several points here to be insightful for the Company trying to sell software, services or IT to another org...
Enjoy!
In a recent article, Making a case: How to become a thought leader and influence decisions, I gave some practical advice on influencing decisions and improving one’s ability to present a compelling business case. But what exactly is a business case and how to go about putting one together?
What’s a business case?
There is a fallacy that a business case is a thick tedious manuscript, written by professional consultants in an incomprehensible language. It’s printed on high-quality paper stock and placed onto the top shelf of an executive’s office to be used as a breeding ground for dust bunnies.
This is not a business case; this is a disaster.
The sole role of a business case is that of a communication tool, composed in a language that the target audience understands and with enough detail to facilitate decision making on his or her part. There’s no magic formula when it comes to the size of a business case. The size is irrelevant. What is relevant is that the business case provides all the necessary information to make the job of the decision maker possible. Brevity is always a virtue.
As a matter of fact, a business case does not have to be a written document at all. It could be in the form of a verbal message, but the structure and the content is, nevertheless, the same as if it were written up.
Think about it, you present and hear business cases all the time, with your children, parents, significant others, friends, and colleagues. Did your teenage daughter convince you that she can’t possibly survive without an iPod? (”I can listen to class notes and presentations and will improve my marks.”) How on Earth did you agree to go on that Mediterranean cruise with your in-laws? (”It will make me happy, dear. Besides, Dad naps all the time anyway.”)
This is it, no mystery, just a communication tool.
Structure
I have been asked so many times about the best structure for a business case that we have placed a template onto our corporate website (www.bizvortex.com). It consists of the sections I will describe here, and you’ll find that it is quite flexible. Nothing is really set in stone, including the headings. This is an important point, because flexibility is what you need to put a truly convincing case together. A business case is not a government form in which you tick boxes as you answer a gazillion questions; it’s a medium for your brilliant business thinking.
Executive Summary
Always written last, the Executive Summary presents the essence of the business case, in a condensed format. Pick the most important points that allow for a coherent picture, but strive to keep it concise: it should not be longer than one or two pages. Certainly include objectives, proposed solution, benefits and costs, risks, and key dates.
Objectives
Describe why this case has come about. Typically, the reason is one of the following:
* An opportunity that generates revenue, cuts costs, or deliver some other benefit
* A mandatory change, something that needs to be complied with.
* A correction of a wrong
This section can be structured in a few of ways. The first approach is appropriate for cases that deal with correcting a wrong. Describe the current situation and explain what the adverse impact is, be it of a financial nature or otherwise.
The second approach, more suitable for cases that deal with new opportunities or mandatory changes, where the status quo is not necessarily deficient, is to use the following structure:
1. Current state. Describe how the world is today.
2. Future state. Describe how the world will look tomorrow, when the proposed change is implemented.
The third approach, most appropriate for new opportunities, is to state what the case is proposing and describe why it is being considered. Why now?
Use the structure that works for your situation.
Project alternatives
List several alternatives you considered, complete with benefits and costs, and risk assessment. Show how they align with such considerations as corporate and business unit strategy, vision, current priorities and other factors discussed in the blog I mentioned at the start of this piece.
How many should you list? Three is a good number, five is too many, but never just one.
You should use your judgment and include the appropriate amount of detail so not to overwhelm the reader and yet provide enough information for effective decision making. This is the old “know your audience” maxim, and it rings especially true here.
Preferred alternative
Always state what the preferred option is and explain why it is preferred.
Implementation plan
It’s usually appropriate to provide some ideas on how the implementation of the preferred solution should proceed, to show that you’re presenting not a pipe dream but a carefully thought through solution. Rarely is it necessary to create an exhaustive plan, unless specifically required by the decision makers.
Appendices
Include all supporting information, such as cost benefit analyses, reference materials, calculations, and charts.
The case for business cases
The importance of a business case to its author is enormous. Present a solid business case, and you have positioned yourself as knowledgeable thinker and innovator. If noted by the decision makers, a promotion is certainly possible. In a case of a consultant, there will be repeat business. On the other hand, a weak business case is a career-limiting move. Sadly, I see a lot of business cases that are not worth the paper they’re written on, and I always wonder how many careers are cut short as a result. I can’t even fathom why this keeps happening in this day and age, when excellent resources, such as coaching, are available.
From the perspective of the organizations, the stakes are equally high. A solid business case leads to well-informed decisions that are most appropriate in a given business setting, while the one that fails to provide adequate level of detail, or disregards relevant data, or makes incorrect inferences, or does any number of other things wrong, leads to suboptimal decisions that are very expensive to any organization, in terms of the time, money and lost opportunities.
I’m convinced that the vast majority of unsuccessful projects fail not because of poor project management, but because of poor decisions with respect to the choice of projects. A good business case helps to make right decisions and avoid horrible waste.
Do it right.
Ilya Bogorad is the Principal of Bizvortex Consulting Group Inc, a management consulting company located in Toronto, Canada. Ilya can be reached at ibogorad@bizvortex.com or (905) 278 4753
Monday, July 28, 2008
Customer Impressions - Present Yourself
Sales isn't just about knowing your product. It's about creating the impression that you are representing a brand that your prospect wants to be associated with. You are selling yourself, a brand, a solution, and a level of service and professionalism that they can't get anywhere else.
Impressions are like great presentations. We are almost trained to expect something less than stellar - and extraordinary is out of the question. I can't tell you how many times I've won deal because of the impression that I've made and my level of personable professionalism that I've given. I don't always have the best tool or the best solution - but my customers want to business with me because I won't let them fail. When they lok at me, they need to see this. Looking scruffy, wearing an worn suit, uncept hair will all contribute to this.
The first impression matters, so make it good! Where do I go for tips on how to impress my clients through personal impression? I go to Gentleman's Store and Grooming Stores. These guys know how to present themselves and how to do it consistently.
Check out these tips from The Grooming Guys Blog
1. CHECK THE CHOMPERS:Seems like a no-brainer, but you’d be surprised how many men chow down a meal and then step into a business meeting with parts of that meal still stuck in their grill. Discreetly utilize a tooth pick (it’s a tool, not a show piece ) or keep a brush and paste handy at your desk.
2. MINIMIZE THE WALLET: Some guys think a bulge in their pants is cool, and while we think not, we think all can agree that said bulge in the back of your pants is never a cool thing. Empty anything not needed in that wallet and your pants will fit better and you’ll save some time at checkout.
3. REMOVE BLUETOOTH HEADSET: It’s never cool, impressive looking, etc. If you need it, use it when needed. If you’re not chatting, stow it away.
4. LET THEM OUT: Whether it’s the subway or an elevator, you always have to let people out before you charge in.
5. IF YOU ASK, LISTEN: If you’re going to ask someone how they are doing, makes sense that you would actually listen to the answer. Real gents do this. If you’re not going to listen to the answer, you’re better off not asking.
Impressions are like great presentations. We are almost trained to expect something less than stellar - and extraordinary is out of the question. I can't tell you how many times I've won deal because of the impression that I've made and my level of personable professionalism that I've given. I don't always have the best tool or the best solution - but my customers want to business with me because I won't let them fail. When they lok at me, they need to see this. Looking scruffy, wearing an worn suit, uncept hair will all contribute to this.
The first impression matters, so make it good! Where do I go for tips on how to impress my clients through personal impression? I go to Gentleman's Store and Grooming Stores. These guys know how to present themselves and how to do it consistently.
Check out these tips from The Grooming Guys Blog
1. CHECK THE CHOMPERS:Seems like a no-brainer, but you’d be surprised how many men chow down a meal and then step into a business meeting with parts of that meal still stuck in their grill. Discreetly utilize a tooth pick (it’s a tool, not a show piece ) or keep a brush and paste handy at your desk.
2. MINIMIZE THE WALLET: Some guys think a bulge in their pants is cool, and while we think not, we think all can agree that said bulge in the back of your pants is never a cool thing. Empty anything not needed in that wallet and your pants will fit better and you’ll save some time at checkout.
3. REMOVE BLUETOOTH HEADSET: It’s never cool, impressive looking, etc. If you need it, use it when needed. If you’re not chatting, stow it away.
4. LET THEM OUT: Whether it’s the subway or an elevator, you always have to let people out before you charge in.
5. IF YOU ASK, LISTEN: If you’re going to ask someone how they are doing, makes sense that you would actually listen to the answer. Real gents do this. If you’re not going to listen to the answer, you’re better off not asking.
Sunday, July 27, 2008
Focus on the Customer, Provide Value
I hope that you enjoy this blog. My intent is to provide a set of resources for sales professionals to reference. I am a sales executive leading enterprise sales efforts for a software company. Eventually, I hope to have articles, links, and resources to help sales professionals, managers, and those new to sales in areas of process refinement and value to the customer.
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