Getting the Most from Deal Approvals
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Getting the most from deal approvals involves three things: providing guidance to sales reps with contextual deal analytics to confidently capture value; enforcing consistent pricing with deal guidance and automation; and increasing speed to close more deals through reduced time-to-close. Analytics can add value to the approval process by scoring deals and prices, comparing prices to benchmarks, and measuring deal metrics. The value of the process is measured by the difference between requested and approved prices.
Getting the Most from Deal Approvals
- 1. Getting the Most from Deal Approvals 息 2013 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL
- 2. Presenter Scott Strenger Business Consultant 息 2013 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL
- 3. Power Information Audience 息 2013 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL
- 4. 息 2013 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL
- 5. Deal Approval Process In terms of providing deals to customers, a sales rep may need to get approval and that approval audience may span many roles. Sales Manager Achieving my quota? Pricing Manager Following the pricing strategy? Yes Sales Rep Product Manager Right product for right price? Approved Customer Deal Desk Appropriate prices and margins? No Executives Whats the bottom line? Feedback/Recommendations 息 2013 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL
- 6. ensure that you How can you are getting the most from you deal approvals? 息 2013 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL
- 7. Deal Manager Getting the most from deal approvals Guidance. Create a sales negotiation advantage to confidently capture value with contextual deal analytics Enforcement. Remove unwarranted pricing variability with powerful deal guidance and process automation Speed. Do more deals and increase win rates with decreased time-to-close 息 2013 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL
- 8. Adding Value Through Analytics Customer Performance Analysis 息 2013 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL
- 9. Adding Value Through Analytics Line Item Scoring Provides a visual indicator on the quality of a proposed price to inform decision making Supports product manager, pricing manager, and deal desk needs to understand if the pricing strategy is being followed Leveraging the value of this indicator can add value to your workflow approval process 息 2013 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL
- 10. Adding Value Through Analytics Price Negotiator The Price Negotiator provides a compressive waterfall view to assess the impact of all transactional adjustments A negotiated discount score can be leveraged to assist in guiding more appropriate discount levels With a complete view of all the transaction related adjustments, decisions can be guided to drive profitability Pricing managers, product managers, and deal desks can assess business impacts 息 2013 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL
- 11. Adding Value Through Analytics Price Comparison Compare prices with other benchmarks to help inform decisions Is the target price set by pricing managers or product managers being followed? 息 2013 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL
- 12. Adding Value Through Analytics Deal Metrics Sales Managers and Executives are interested in knowing how a deal helps them reach their goals 息 2013 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL
- 13. Measuring the Value Price In Price Out (PIPO) Workflow Approval Requested Price (aka Process benefiting Approved Price Price In) of $X (aka Price Out) of $Y from analytics The value the workflow approval process provides can be measured two ways: 1. PIPO $ = the difference between the final approved price ($Y) and the requested price ($X) Example. Final Approved Price = $11,000 Customer Requested Price = $10,000 PIPO $ = $1,000 2. PIPO % = the percent difference of the final approved price ($Y) and the requested price ($X) Example. Final Approved Price = $11,000 Customer Requested Price = $10,000 PIPO % = 10% 息 2013 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL
- 14. Measuring the Value The cumulative value of these workflow approval process decisions being made can be stored and tracked against any business dimension as illustrated below: 息 2013 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL
- 15. Conclusion Audience know their desires Information match audience desires with data Power deliver data with confidence 息 2013 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL
- 16. 息 2013 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL
- 17. 息 2013 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL
- 18. Questions? 息 2013 Vendavo, Inc. PROPRIETARY & CONFIDENTIAL
Editor's Notes
- #4: Your real world is a giant negotiating table, and like it or not, youre a participant. You, as an individual, come into conflict with others: family members, sales people, bosses, and many more. And when you come into conflict, negotiations can lead to a resolution. Negotiation is the use of information and power to affect behavior within a web of tension. If you think about this broad definition, youll realize that you do, in fact, negotiate all the time both on your job and in your personal life. In every negotiation, three crucial elements always seem to be present: Audience, Information, and Power. Let me share a personal negotiation story that involves these three elements.
- #5: Meet my two little negotiators. Sydney, who is 6, on the left, and Mason, who is 9 on the right. Im sure many of you in the room have kids, and know how they can be expert negotiators.One evening it was time for my kids to get ready for bed. As I was taking them to their rooms, I could tell my daughter was sad. I asked her what was wrong, and she told me that mom said she had to throw away her Justin Bieber toothbrush. My daughter had just gotten over flu and strep, and my wife thought it would be best to throw away her toothbrush, and give her a new one. Well, the toothbrushes that my kids use aren't your run of the mill toothbrushes. They are electric and play a song for two minutes to help the kids know how long they are supposed to brush their teeth. When the music stops, they can stop. They really work well, although my daughter never wanted to go the full two minutes. So I told her I would make her a deal. I said Sydney, if you promise to brush your teeth until the music stops, Ill boil your Justin Bieber toothbrush so you can use it again.She said in a pouting voice, But mom said I have to throw it awayI replied, If I boil it, you can keep using it.She said, But it will burn my mouthI then said, Sydney, do you want to keep you Justin Bieber toothbrush or not?, and at that exact moment my son chimed in and said, Dad, you should have led with that. He was right. I should have thought about my audience more and the information I was sharing. I should have started the negotiation with, Sydney, if you promise to brush your teeth until the music is complete, I will get mom to tell you that you can keep your Bieber toothbrush. I needed to tell her what she wanted to hear, and not get into the details. The negotiation could have gone much smoother. She had the power to turn down the offer, but Bieber was too much. She now brushes her teeth a full two minutes.
- #17: Meet my two little negotiators. Sydney, who is 6, on the left, and Mason, who is 9 on the right. Im sure many of you in the room have kids, and know how they can be expert negotiators.One evening it was time for my kids to get ready for bed. As I was taking them to their rooms, I could tell my daughter was sad. I asked her what was wrong, and she told me that mom said she had to throw away her Justin Bieber toothbrush. My daughter had just gotten over flu and strep, and my wife thought it would be best to throw away her toothbrush, and give her a new one. Well, the toothbrushes that my kids use aren't your run of the mill toothbrushes. They are electric and play a song for two minutes to help the kids know how long they are supposed to brush their teeth. When the music stops, they can stop. They really work well, although my daughter never wanted to go the full two minutes. So I told her I would make her a deal. I said Sydney, if you promise to brush your teeth until the music stops, Ill boil your Justin Bieber toothbrush so you can use it again.She said in a pouting voice, But mom said I have to throw it awayI replied, If I boil it, you can keep using it.She said, But it will burn my mouthI then said, Sydney, do you want to keep you Justin Bieber toothbrush or not?, and at that exact moment my son chimed in and said, Dad, you should have led with that. He was right. I should have thought about my audience more and the information I was sharing. I should have started the negotiation with, Sydney, if you promise to brush your teeth until the music is complete, I will get mom to tell you that you can keep your Bieber toothbrush. I needed to tell her what she wanted to hear, and not get into the details. The negotiation could have gone much smoother. She had the power to turn down the offer, but Bieber was too much. She now brushes her teeth a full two minutes.