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How to identify and build a scaleable sales process

Frank Dale
Frank Dale

Effective sales teams build and execute repeatable sales playbooks. For many companies, the challenge is identifying a sales process that is effective and scaleable. This presentation developed for a workshop sponsored by Elevate Ventures walks you through: 1. Identifying your buyer's decision-making process 2. Building a sales process that aligns your interests and your buyer's interests. 3. Measurement strategies that allow for ongoing sales process improvement.

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Building a Sales Process That Closes Deals Frank Dale CEO, Co-Founder
Costello is a deal management platform that aligns frontline sales reps, managers, and vice presidents of sales to help everyone work together to close more deals https://andcostello.com @andCostello
We believe sales is fundamentally about connecting with people to solve their problems
What drives sales performance today?
Technology changed the way we sell.
$12 Bspent per year on sales acceleration tools to build a machine Source: Sales Acceleration Market Size Study by Inside Sales
The underlying assumption 2x 20% = 2x sales*Activity volume Baseline close rate
For a while, that approach appeared to work
until everyone else started doing it
This is not the outcome we envisioned reps hitting quota 50-60% average VP tenure 18 months average manager tenure 15 months Source: CSO Insights, 2016 Sales Performance Optimization Study
Why is the machine not working as well as we expected?
To win, reps must do two things Build Strong Relationships Manage Deals Methodically
Avg. sales rep is not great at this. Manage Deals Methodically Build Strong Relationships Avg. sales rep is good at this. In practice
Reps A negative chain reaction occurs Managers VPs Dont consistently follow sales methodology Dont reliably capture key deal insights in CRM No visibility into deal quality Forced to coach reps reactively Low confidence in pipeline forecast Cant explain major win/loss drivers
Reps That leads to rep underperformance and management turnover Managers VPs Hitting quota 50-60% Average tenure 18 months Average tenure 15 months Source: CSO Insights, 2016 Sales Performance Optimization Study
80% Company revenue plan attainment, on average, when 50% of reps meet quota Source: CSO Insights, 2016 Sales Performance Optimization Study And ultimately to sales teams missing quota
A sales process exists to help reps manage deals methodically
Consistent 72% 50% Inconsistent % of Reps Hitting Quota Source: CSO Insights, 2016 Sales Performance Optimization Study Rep attainment increases substantially when they consistently manage deals
Company revenue plan attainment, on average, when 71% of reps meet quota 111% Source: CSO Insights, 2016 Sales Performance Optimization Study Which leads to sales teams, as a whole, beating their targets
What is a sales process?
A sales process is the steps we take to build a business case with our prospective customer that helps us and them understand why we should work together.
Contact (CRM) Management Prospect Qualification Discovery Proposal Negotiation Close Generic pipeline stages are not an effective sales process This is at best a grading mechanism, not a repeatable description of how your customers decide to buy from you.
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Close An effective process is tailored to your market and the way your buyer makes decision Key Questions Activities we perform before moving to the next buying stage Gives Gets
Our plan for the workshop Identify your sales roadmap Identify business case questions Identify gets and red flags Develop your first draft sales process Measurement and continuous improvement
A sales roadmap is a map that describes how your typical buyer makes a decision to purchase from you
Sales Roadmap Who do you speak to? In what order do you speak to them? What are their respective concerns?
Start with who Companies do not make decisions. People make decisions.
When you know the order you can guide the process. Identify the order of conversations
Identify each buying personas concerns Common concerns give you the ability to develop playbooks. To develop a playbook we need to: Identify each buyers interests (wants) Identify each buyers motivations (goals)
Interests and motivations are expressed by buyers through questions and objections
Sales Roadmap Exercise Who do you speak to? In what order do you speak to them? What are their respective concerns? Interests (wants) Motivations (goals)
Step 2 Identify your sales roadmap Identify business case questions Identify red flags Develop your first draft Measurement and continuous improvement
People act when there is a compelling gap between where they are and where they want to be
We gather the inputs for our business case through asking questions. We demonstrate our business case using presentations and proposals.
1. What do we need to know in order to qualify someone as a fit for our product or service? 2. What do we need to know in order to demonstrate why it is in the buyers interest to act? Business Case Exercise
Step 3 Identify your sales roadmap Identify business case questions Identify red flags Develop your first draft Measurement and continuous improvement
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Close Sales process first draft Key Questions Activities we perform before moving to the next buying stage Gives Gets 1. Take each step from your sales roadmap and place it under a stage 2. Place the buyers questions and typical requests at each step under Gives at the respective stage 3. Take your qualification and business case questions and put it under the stage that is appropriate under Key Questions. 4. Place your requests under the Gets column. These are actions you need the buyer to perform like sharing data or scheduling meetings with coworkers.
Step 4 Identify your sales roadmap Identify business case questions Identify red flags Develop your first draft Measurement and continuous improvement
Red flags Purchase decisions require the buyer to act. Buyers demonstrate their willingness to act through actions not statements.
Red flags serve as stage gates in your sales process. They prevent you from investing time and resources into deals that will not close.
Effective red flags are objective. The action either happened or it didnt.
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Close Identify red flags Key Questions Activities we perform before moving to the next buying stage Gives Gets Under the Gets column. These are actions you need the buyer to perform like sharing data or scheduling meetings with coworkers. 1. Take 5 minutes to identify additional actions that if not performed indicate a deal is off-track.
Step 5 Identify your sales roadmap Identify business case questions Identify red flags Develop your first draft Measurement and continuous improvement
You cant measure data you dont have. Data capture
Basic measurements Close rate Sales cycle time Average contract value
Conversion rates 1. Measuring conversion percentage from stage-to-stage is the fastest way to identify areas for improvement in the sales process. 2. Conversion rates from stage-to-stage at the rep level can be used for coaching. 3. Measurement and reevaluation periods are driven by sales cycle times. Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Close
https://andcostello.com @andCostello

More Related Content

How to identify and build a scaleable sales process

  • 1. Building a Sales Process That Closes Deals Frank Dale CEO, Co-Founder
  • 2. Costello is a deal management platform that aligns frontline sales reps, managers, and vice presidents of sales to help everyone work together to close more deals https://andcostello.com @andCostello
  • 3. We believe sales is fundamentally about connecting with people to solve their problems
  • 4. What drives sales performance today?
  • 5. Technology changed the way we sell.
  • 6. $12 Bspent per year on sales acceleration tools to build a machine Source: Sales Acceleration Market Size Study by Inside Sales
  • 7. The underlying assumption 2x 20% = 2x sales*Activity volume Baseline close rate
  • 8. For a while, that approach appeared to work
  • 9. until everyone else started doing it
  • 10. This is not the outcome we envisioned reps hitting quota 50-60% average VP tenure 18 months average manager tenure 15 months Source: CSO Insights, 2016 Sales Performance Optimization Study
  • 11. Why is the machine not working as well as we expected?
  • 12. To win, reps must do two things Build Strong Relationships Manage Deals Methodically
  • 13. Avg. sales rep is not great at this. Manage Deals Methodically Build Strong Relationships Avg. sales rep is good at this. In practice
  • 14. Reps A negative chain reaction occurs Managers VPs Dont consistently follow sales methodology Dont reliably capture key deal insights in CRM No visibility into deal quality Forced to coach reps reactively Low confidence in pipeline forecast Cant explain major win/loss drivers
  • 15. Reps That leads to rep underperformance and management turnover Managers VPs Hitting quota 50-60% Average tenure 18 months Average tenure 15 months Source: CSO Insights, 2016 Sales Performance Optimization Study
  • 16. 80% Company revenue plan attainment, on average, when 50% of reps meet quota Source: CSO Insights, 2016 Sales Performance Optimization Study And ultimately to sales teams missing quota
  • 17. A sales process exists to help reps manage deals methodically
  • 18. Consistent 72% 50% Inconsistent % of Reps Hitting Quota Source: CSO Insights, 2016 Sales Performance Optimization Study Rep attainment increases substantially when they consistently manage deals
  • 19. Company revenue plan attainment, on average, when 71% of reps meet quota 111% Source: CSO Insights, 2016 Sales Performance Optimization Study Which leads to sales teams, as a whole, beating their targets
  • 20. What is a sales process?
  • 21. A sales process is the steps we take to build a business case with our prospective customer that helps us and them understand why we should work together.
  • 22. Contact (CRM) Management Prospect Qualification Discovery Proposal Negotiation Close Generic pipeline stages are not an effective sales process This is at best a grading mechanism, not a repeatable description of how your customers decide to buy from you.
  • 23. Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Close An effective process is tailored to your market and the way your buyer makes decision Key Questions Activities we perform before moving to the next buying stage Gives Gets
  • 24. Our plan for the workshop Identify your sales roadmap Identify business case questions Identify gets and red flags Develop your first draft sales process Measurement and continuous improvement
  • 25. A sales roadmap is a map that describes how your typical buyer makes a decision to purchase from you
  • 26. Sales Roadmap Who do you speak to? In what order do you speak to them? What are their respective concerns?
  • 27. Start with who Companies do not make decisions. People make decisions.
  • 28. When you know the order you can guide the process. Identify the order of conversations
  • 29. Identify each buying personas concerns Common concerns give you the ability to develop playbooks. To develop a playbook we need to: Identify each buyers interests (wants) Identify each buyers motivations (goals)
  • 30. Interests and motivations are expressed by buyers through questions and objections
  • 31. Sales Roadmap Exercise Who do you speak to? In what order do you speak to them? What are their respective concerns? Interests (wants) Motivations (goals)
  • 32. Step 2 Identify your sales roadmap Identify business case questions Identify red flags Develop your first draft Measurement and continuous improvement
  • 33. People act when there is a compelling gap between where they are and where they want to be
  • 34. We gather the inputs for our business case through asking questions. We demonstrate our business case using presentations and proposals.
  • 35. 1. What do we need to know in order to qualify someone as a fit for our product or service? 2. What do we need to know in order to demonstrate why it is in the buyers interest to act? Business Case Exercise
  • 36. Step 3 Identify your sales roadmap Identify business case questions Identify red flags Develop your first draft Measurement and continuous improvement
  • 37. Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Close Sales process first draft Key Questions Activities we perform before moving to the next buying stage Gives Gets 1. Take each step from your sales roadmap and place it under a stage 2. Place the buyers questions and typical requests at each step under Gives at the respective stage 3. Take your qualification and business case questions and put it under the stage that is appropriate under Key Questions. 4. Place your requests under the Gets column. These are actions you need the buyer to perform like sharing data or scheduling meetings with coworkers.
  • 38. Step 4 Identify your sales roadmap Identify business case questions Identify red flags Develop your first draft Measurement and continuous improvement
  • 39. Red flags Purchase decisions require the buyer to act. Buyers demonstrate their willingness to act through actions not statements.
  • 40. Red flags serve as stage gates in your sales process. They prevent you from investing time and resources into deals that will not close.
  • 41. Effective red flags are objective. The action either happened or it didnt.
  • 42. Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Close Identify red flags Key Questions Activities we perform before moving to the next buying stage Gives Gets Under the Gets column. These are actions you need the buyer to perform like sharing data or scheduling meetings with coworkers. 1. Take 5 minutes to identify additional actions that if not performed indicate a deal is off-track.
  • 43. Step 5 Identify your sales roadmap Identify business case questions Identify red flags Develop your first draft Measurement and continuous improvement
  • 44. You cant measure data you dont have. Data capture
  • 45. Basic measurements Close rate Sales cycle time Average contract value
  • 46. Conversion rates 1. Measuring conversion percentage from stage-to-stage is the fastest way to identify areas for improvement in the sales process. 2. Conversion rates from stage-to-stage at the rep level can be used for coaching. 3. Measurement and reevaluation periods are driven by sales cycle times. Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Close