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Salesforce Tips English

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joel martens

on 15 March 2013

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Transcript of Salesforce Tips English

Creating Value Through Salesforce in the New Purchasing World The Movement Toward Supplier Reduction Adding Value to Transactions Working closely with selected suppliers opens up a lot more improvement options
With few suppliers, there’s more commitment from them. This leads to greater familiarity. Purchasers fully expect that they will see continuous improvement and cost savings from these selected suppliers and that their cost of managing suppliers will decline. Creating value Across the Buying Process
The only single “truth” that seems to be holding for all sales forces is that they will have to create value for customers if they are to be successful.

The key to success will be figuring out which selling approach will best fit the customer and then creating the most value. The New Purchasing World Purchasing is going through a transformation which is altering the way the world does business The Three types of Customers: Focused on the cost element of value Intrinsic Value Customers

Extrinsic Value Customers

Value Customers The value is not created by the product, but is introduced by the salesforce during the sales process Value customers want more than the supplier's products or services. They want to leverage the core competencies of the supplier. They are prepared to change their organization to work with this client. Segmenting the salesforce to create value Transactional Selling:Works best for intrinsic value customers. Cost is the most important factor. Transactional selling reduces cost by removing salesforce cost Consultative Selling: best suited for Extrinsic Value Buyers. Consultative Selling creates value outside of the product by finding solutions to problems, or highlighting unknown issues. Value: The common Factor in a Confusing World
Customers are taking a harder and harder look at their spending, and they are more willing to consider different options and to undertake significant effort to get better value Advances in information technology have helped buyers to be better armed with facts to make smarter buying decisions. Lifetime Cost of Ownership is increasingly the metric by which a buyer is judged effective

Lowest-price is being questions as new data suggesting that lowest-price deals result in increased maintenance and replacement costs

For example a defective unit from a lowest-price deal may result in a finished product rejected, resulting in increased additional cost

The competitive RFP process is being replaced. The increased cost of maintaining additional venders in a transactional sale outweighs the savings from the additional competition. Leverage Size Shop Partner Manage Risk Products and services that fall in the upper left quadrant have greater importance to purchasers.

But while they are more important, the buyers is still in a strong negotiating position because the items are readily substitutable, with several possible suppliers. The goods and services in this quadrant are mission critical, that is, they are central to the success of the purchaser for either strategic or cost reasons. What’s more, the seller has a unique offering that is not easily substitutable.

These are items that make a fundamental difference to the purchaser, and, because of the limited number of possible suppliers, buyers will be willing, even eager, to form partnering relationships with relevant suppliers. Many suppliers will leap to enter into some kind of partnering term relationship. Partnership certainly makes sense from the buyer’s perspective in this quadrant. However, from the seller’s perspective, partnering is not necessarily a good idea. It’s worth it to look around for a favorable price, and take the best deal of the moment—but not to waste a while lot of purchasing time, energy, or money chasing small change

Purchasers are moving towards low-cost, even if it means ending long-term relationships In the manage risk quadrant, purchasers recognize that they have more limited bargaining
power, but these items aren’t mission critical or they are not that important a part of the
cost picture. As a result, they don’t warrant a great deal of time and attention.
Because of the limited number of substitutes or suppliers who can provide these items,
purchasers are prepared to invest more time and effort in acquiring them. Strategic or Cost Importance of Supplier's Product Difficulty of Substitutions or Obtaining Alternatives Recognition of Need Evaluation of Options Resolution of Concerns Purchase Help Customers define problems in a new and different way Show superior options that the customer may not have understood before Help customers overcome resolutions to acquisition Make purchase simple and painless Implementation Show customers how to install and use product Typical Buying Process Recognition of Need Evaluation of Options Resolution of Concerns Purchase Sellers can create most value early in the process by helping the customer define needs and solutions Consultative Sales can design customized solutions Can counsel customers and help resolve concerns Implementation Consultative sellers can help overcome implementation issues Adding Value to Consultative Sales - An Example Doing the Deal Agenda Setting
Boundary Blurring Problem Solving Nature of Sale Access to Strategy Access to Influencers Access to Decision Maker Prerequisites for Success Trust – Based
Business Equals
Both Parties Change Benefit – Based
Client – Adviser
Cooperative Cost – Based
Buyer – Seller
Confrontational Nature of Relationship Time Horizon Strategic Plan Purchasing Stream Event Platform Fit
Values Fit
Sufficient Value for Enterprise Importance of Problem
Solution Fit
Price-performance Tradeoff Price
Availability Risk
Ease of Acquisition Key Buyer Concerns and Decision Criteria High Strategic/Cost importance
Limited Substitutability Differentiated
Hidden Capabilities Well Understood
Readily Substitutable
Standard Items Product or Service Characteristics Transactional Consultative Enterprise Practice 20/80 80% of your outcomes come from 20% of your inputs

Applying this theory has allowed for a reduction in salesforce staff.

Diagnostic tools allow the salesforce to better allocate their time. These tools allow a consultative salesforce to better understand a customers business and needs. Process 101 A process is any linked group of tasks, carried out by several groups or functions, that together create customer value The Seven Pillars of
Sales Process 3. Does your process create value? 6. Is your process scalable? 2. Is your process self-correcting? Can your sales process learn from real-world feedback? 7. Are your milestones objectively measurable events, not on activities. 4. Does your process increase efficiency? 1. Does your sales process reflect your customers’ acquisition process? 5. Does your process allow mortals to succeed? By Joel Martens
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