The Sales cycle Understanding markets Business Planning
The Sales cycle Understanding markets Business Planning
Pre-Sales process
The Sales cycle Understanding markets Business Planning
Pre-Sales process
Sales process
The Sales cycle Understanding markets Business Planning
Pre-Sales process
Sales process Post-sales process
The Sales cycle Understanding markets Business Planning
Pre-Sales process Proposal Sales process Post-sales process
The Sales cycle Understanding markets Business Planning
Pre-Sales process Proposal Sales process Post-sales process
Contract
Objective
Why A Proposal ? •Information to the prospect
•What’s to be done ? •How to do it ?
•Who is to do it ? •How much will it cost ?
•What’s the benefit of doing so ?
How to get going ? •Understand the customer
•Know the problem •Figure out a solution •Conceptualize the proposal contents
•Pen it down
Know thy customer
Understanding the customer Who is the true customer & what’s the approach ?
Understanding the customer Who is the true customer & what’s the approach ? Railway Reservation System Sales Force Automation (Pharma) eGovernance (State Govt.) Disaster recovery / Business continuity
eLearning services (Hospitality)
(FMCG)
Understanding the customer Who is the true customer & what’s the approach ? Railway Reservation System Sales Force Automation (Pharma) eGovernance (State Govt.) Disaster recovery / Business continuity
(FMCG)
eLearning services (Hospitality)
User, Top Mgmt., Purchase, Finance, IT
Understanding the customer - some critical success factors •“Insider”
Info
Real need,
Budget,
Time frame,
Decision making process,
competition
•“Collaborate”
the solution - with KOLs (Key Opinion Leaders) - before
the proposal
•Pass
on as much info as possible to customer
The Contents
•Background •Problem
(client, requirements)
identification – thereby eliminating any gaps in
understanding •Proposed
solution – with assumptions
•Objective
& Scope of work – boundaries clearly identified
•Methodology •Deliverables
– with samples (esp. s/w. devlop.)
•Limitations
– i.e. what does this not cover and what
are the dependencies •Time
schedule
•Tools
to be used, if any
•Solution
team’s bio-data
•Customer •Terms
and solution provider’s responsibilities
and conditions
•Benefits •Price,
– of assignment and choice of solution provider
taxes, payment terms
•Validity
period
•References •Summary
A few critical aspects
Checklist: pre-submission •Review content – especially problem and solution •Recheck the financials •Have the benefits been highlighted properly ? •Are the customer guidelines met properly – esp. tenders •Technical – Commercial bid separation •Earnest Money Deposit
•Project personnel profiles •Is the summary good enough for prospect to read further ?
Some key success factors in proposals •Clarity & comprehensiveness
•Should hold attention – from first to last •Have the buy-ins of the KOLs •Peer reviews – eliminates “biased / involved” thoughts
•Submission on time
Proposal - Some questions •Is
a proposal different in a tender situation ?
•Is
a revised proposal required after agreement in the negotiations with customer issuing a PO subsequently? •Is
a proposal required if a contract is to be signed ?
•Is
a proposal required for a repeat order ?
•Should •What
?
a proposal be charged for ?
should be the format for an unsolicited proposal
Negotiations
•Scope •Time
and deliverables Vs Cost
Vs Cost
•Contract
terms
•Customer
sign offs / approvals / responsibilities •Project
closure
Negotiations - Some important considerations •Aim •No
is “Win-Win”
deviation from proposal (unless
required) but flexibility essential •Apparent
Transparency
Contracts
•Customer’s
standard contract Vs Solution provider’s standard contract •Definitions – IPR, Services, Prototype, Go-Live, Training Vs Hand-holding •Responsibilities •Confidentiality of Information (NDA) •Project Teams (+ Steering Committee) •Warranties
•Indemnification •Limitation
of liability
•Termination
i.e. exit clause
•Jurisdiction
of legal action
•Force
Majeure
•Arbitration
Contracts •When
are contracts essential ?
•Should •How
price be a part of the contract ?
do you measure success of a contract ?
•Which
is superior - proposal or contract ?
Relationship Management
•First
meeting impressions “YOU NEVER GET A SECOND CHANCE TO MAKE A GOOD FIRST IMPRESSION”
•First
meeting impressions
•Dress
- advantage of formal dressing ? •Ability to speak on a wide variety of subjects - but only when required •Listen - and never interrupt your customer •Spout jargon - but avoid making it a waterfall
Never criticise competition •Meet commitments always - give customer bad news well before he asks for it • Be in touch - order execution & peace time • Follow the customer’s rules & etiquettes for telephone / mail / letter / tenders / negotiations •
Never criticise competition •Meet commitments always - give customer bad news well before he asks for it • Be in touch - order execution & peace time • Follow the customer’s rules & etiquettes for telephone / mail / letter / tenders / negotiations •
•“Customer
is Always Right - Especially When he is Wrong”
Pricing
Pricing Products
Services
Fixed costs
Fixed costs
Variable costs Profit
Variable costs Profit
Costs – Fixed costs Products
Services
Manpower (R&D) H/w, Tools
Inventory (FM)
Packaging Overheads
Overheads
Costs – Variable costs Products
Sales expenses
Services
Sales expenses
Promotion Manpower Admin (Travel, Training)
Pricing Strategy Products
Services
Standard
Case-to-case
Impact – past, future
Impact - present
Change - complex
Change – simple
VALUE
Some questions … Pricing strategy •Customer’s willingness to pay – isn’t it value ?
•How do you respond to competitor’s price cut ? •Should market share retention drive pricing strategy ? •Can you package uncertainty ? •What should be the response to an existing customer going the eProcurement route ?