Wednesday, January 11, 2017

2017 - “The Year of Business Value”

As you and your team kickoff the New Year, there are some important research findings you should factor into your 2017 sales enablement and content strategy.

From SiriusDecisions research, we learn that:
  • 59% of your sales reps are predicted to not attain their quota goals in 2017
  • 71% of executives indicate that the quota shortfall isn’t due to a lack of enough qualified leads, lack of social selling skills, or too little sales training, but an “inability for sales reps to effectively articulate differentiating value”
  • And this Value Gap issue has been persistent, as the top quota challenge for the past six years.
Despite these challenges, most organizations are not investing enough time and effort into their value messaging and selling initiatives, with 60% of companies indicating their programs need improvement, or moreover, a major redesign.

Unfortunately, you can’t leave Business Value / ROI to chance. The facts are that:
  • Customers will significantly delay decisions and won’t get to “Yes” unless you help them understand and quantify your differentiating value
  • Sales will struggle in communicating and quantifying your unique value without your providing provocative value messaging, tools and consulting support.
The good news, the research is crystal clear. Those that get Business Value / ROI selling “right” can overcome these challenges and reap significant rewards. Based on independent research from MHI Global / CSO Insights, taking your value marketing and selling to the next level can:
  • Reduce the number of deals ending in “No Decision” by 30%
  • Improve win rates to 51% (a 40% improvement)
  • Boost the number of sales reps meeting / beating quota to 69% and increasing the average annual revenue attainment to 87%.

What does a great Business Value / ROI selling program look like?

As you look to elevate your Business Value / ROI selling capabilities, these are the seven habits we see from the best Value marketing and selling practices:
  1. Engage early – Not waiting until asked for a business case, instead use diagnostic assessments, benchmarking and value communication and quantification proactively and early in each engagement.
  2. Go beyond the numbers – Realizing that the numbers are there to support the unique value story, not to be the story unto itself.
  3. Cover more and scale better – Leveraging value in more than just the largest deals. Arm your customers with the tools they need to assess themselves (as many prospects don’t want to engage with sales) and expand the value selling / ROI programs by getting sales reps and channel partners to participate, without the need to have a value consultant engaged in supporting the approach with each prospect, or isolated to just the largest deals.
  4. Consistently deliver – Implementing value communication and quantification, from marketing and inside sales, to channel, partner and account execs, to business consultants and value engineers. The best programs start with a solid Value Messaging & Quantification Framework, and to that, add a standardized set of interactive value marketing, sales and consulting tools and engagement methodology, so everyone knows the prescribed method for engaging, and content is leveraged and not recreated for each deal.
  5. Build trust – Providing 3rd party insights and research, customer case studies and proof points helps validate potential results with prospects and drive credibility.
  6. Certify – Educating and certifying sales reps, channel partners and consultants on the engagement model, tools, delivery and conversations, and providing support and coaching on an ongoing basis to assure the certified skills are being applied.
  7. Measure and improve –Tracking the adoption and use of tools and practices, and the impact that the approach has on sales success, measuring win rate improvements (vs. competition and “do nothing”), reduced discounting / deal size improvements, sales cycle acceleration, quota achievement and on-boarding acceleration. Leveraging customer intelligence data gathered from each engagement to deliver new and unique insights, benchmarks and advice.
Sources:
2017 – The Year B2B Sales Reps Can Finally Sell Value? - SiriusDecisions
Decoding the Decision Dynamic - MHI Global
The Frugalnomics Survival Guide - How to Use Your Unique Value to Market Better, Stand Out and Sell More


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1 comment:

Olaf de Hemmer said...

Thanks Tom : after 70 years of Value analysis, it is time to get to Value Thinking !
I endorse your program and add a simpler step : think Value !
It can be summarized in 3 key points for each project/solution to be improved :
> "What for ?"
> "What is enough ?"
> work WITH the stakeholders
It works on everything (really) and is already declined in a lot of methods : strategy (blue ocean), business models (BM canvas), processes (lean, TOC ...), products/systems (value analysis, jugaad / frugal innovation), governance (shared value, CSR), economy (commons management), environment (eocdesign, circular economy), clinical and team coaching (Solution focus), purchasing (redesign to cost, sustainable procurement) etc.
BUT this thinking is difficult : it is systemic, and we are trained from childhood to use only cartesian/scientific thinking ...
So we'd better be trained on Value thinking ? We are starting this in France and Europe ...
interested ? odehemmer@valeursetmanagement.com