Sales Transformation: 5 Steps to Accelerating Growth of Your Cloud Services

Internally facing

operations automation

Cloud = IT Transformation

Cloud = Business Transformation

Externally facing

customer interactions

Business Transformation

Drivers of Digital Disruption:

1. Mass Adoption of Digital Technology

2. The Age of the Customer

3. B2B-> B2C -> The Engagement Economy

Generation C

5

The Age of the Customer

Source: October 10, 2013, “Competitive Strategy In The Age Of The Customer” Forrester report

1900 1960 1990 2010

Age of Manufacturing

Mass manufacturing makes industrial powerhouses successful

Age of Distribution

Global connections and transportation systems make distribution key

Age of Information

Connected PCs and supply chains mean those that control information flow dominate

Age of the Customer

Empowered buyers demand a new level of customer obsession

Beyond

• Ford• Boeing• GE• RCA

• Wal-Mart• Toyota• P&G• UPS

• Amazon• Google• Comcast• Capital One

• Macy’s• Salesforce.com• USAA• Amazon

B2B -> B2C

Digital Disruption

Unintended consequences

Digital Disruption = Big Opportunity

Basic Human Needs

Product

Place

Price

Promotion

4P's

Solution

Access

Value

Education

SAVE

Educate

Inspire

Create a sense of urgency

Horizon 10 - 6 months

Horizon 26 - 12 months

Horizon 312 - 36 months

Thinking at 3 Time Horizons

Get it right

Get it wrong

Strategic choices

What are the key

business challenges

facing your target

customers?

Target Decision Maker

DelusionalThinking

#1: Irrational complacency

#2: Catch the train

OLD THINKING

NEW TECHNOLOGY

FAIL

X

=

Think outside the box

Think outside the box

www.flickr.com/photos/12023825@N04/2898021822

Growth strategy

Overcoming change

Destination Thinking

“Today’s customers are online

explorers, seeking out online ratings,

peer reviews, videos and in-depth

product details as they move through

the buying decision process.”

Move to tomorrow’s battleground

Ride the next wave

You can’t teach an old dog new tricks

Old dog, new tricks

VP of GrowthVP of Marketing

Rethinking the funnel

Rethinking the funnel

37

Focus on Selling Above the Funnel

• Prospection

• Qualifying

• Needs

• Proposal

• Negotiation

• Close

Demand

Creation

Demand

Capture

• Market identification

• Requirements analysis

• Demand creating

• Lead Generation and

Management

• Engagement

The Sales Toolkit

Q1 Q2 Q3 Q4 Q1

Demand Generation Campaigns

The Status Quo is not a Growth Strategy1

Marketing Today = Sales Tomorrow2

Creating Systems of Engagement3

Reasons -> Conclusions. Emotions -> Actions4

5 Creating an Unpaid Sales Force

Drivers of Adoption

The status quo is not

a growth strategy

Disruptive Opportunity Matrix

ExtendWhiteSpace

Defend ExtendCurrent

New

Current New

Source: Create Marketplace Disruption by Adam Hartung, Pearson Education, Inc. 2009

Products

Customers

Digital reality

Interruption Marketing:

Targeting Audiences with

messages through channels

to drive transactions

The OLD World

Engagement Marketing:

Engaging communities

with shared purpose

through experiences to

sustain relationships

The NEW World

Interruption Marketing

Engagement Marketing

Anticipate change

Business Agility

Adapting to change

Where do I go from here?

The Status Quo is not a Growth Strategy1

Marketing Today = Sales Tomorrow2

Creating Systems of Engagement3

Reasons -> Conclusions. Emotions -> Actions4

5 Creating an Unpaid Sales Force

“Customers are completing

57% of a buying cycle before

ever coming into contact with

a sales rep.”

- A CEB study of more than 1,400 customers

source: www.corporatevisions.com

Marketing Today = Sales Tomorrow

source: www.corporatevisions.com

1 32

Marketing Today = Sales Tomorrow

• Challenge them

• Destabilise them

• Challenge the status quo

• Get them out of comfort zone

• Take them to the negative

future

• Sell your insights

• Provide evidence

• Cost justify

• Lead them through the

process

• Take them to the beach

• Sell your insights

• Sell your experience

• Take them to the negative

future

• Create a sense of urgency

• Monetise the cost of delay

• Take them to the beach

• Guide them to take action

• Take the order

Sales Transformation

OLD NEWThe IT Buyer The Business Buyer

Selling into CapEx Budgets Selling into OpEx Budgets

Technical Expertise Business Expertise

Geographic Sales Territories Vertical Industry Territories

Selling Features Selling Results

Fixed-Price Contracts Outcome-Based Contracts

Demonstrating Features Business Process Discussions

Your Complexity and

Underlying Architecture

Your Consumption Model

and Service Capability

Maintenance Contracts "Apps Mindset"

Face2Face Sales Skills Social Media Knowledge

Source: Consumption Economics: The New Rules of Tech by J. B. Wood, Todd Hewlin and Thomas Lah, 2011

The Status Quo is not a Growth Strategy1

Marketing Today = Sales Tomorrow2

Creating Systems of Engagement3

Reasons -> Conclusions. Emotions -> Actions4

5 Creating an Unpaid Sales Force

Capture their attention

Keep their attention

Sales Transformation

Old Sales Model New Sales Model

Systems of Engagement

Demand Generation 2.0

Creating Systems of Engagement

The Status Quo is not a Growth Strategy1

Marketing Today = Sales Tomorrow2

Creating Systems of Engagement3

Reasons -> Conclusions. Emotions -> Actions4

5 Creating an Unpaid Sales Force

Give your customers the ability to

do what they can’t currently do

but would want to if they only

knew it was possible.

The new Golden Rule in Sales is:

Capture their imaginations

“Reasons lead to conclusions.

Emotions lead to actions.”- Saatchi & Saatchi

66

DecisionDrivers

Early Adopter Market Mainstream Market

DANGER - CHASM!

Accelerating Customer Adoption of Cloud Services

TIME

Create capacityto service demand

Technology Vendors Channel Partners

Build the buzz!!!!

Build sales channels

• Distributors• Retailers• Resellers• VARs• Service Providers• System Integrators• Consulting Partners

TechnologyInnovators

2%

Visionaries

14%

Pragmatists

34%

Conservatives

34%

Sceptics

16%

Create a tipping point

Influencer/Adopter Programs

Demand Generation

Influence Generation: Capture the hearts and minds of Tech savvy early adopters, opinion

leaders and influencers

Channel readiness & activation

GTM Strategy & Business Plan

PER

CEN

TAG

E O

F P

OP

ULA

TIO

N

AB

The Status Quo is not a Growth Strategy1

Marketing Today = Sales Tomorrow2

Creating Systems of Engagement3

Reasons -> Conclusions. Emotions -> Actions4

5 Creating an Unpaid Sales Force

Tipping the Funnel

Clients: Actions:

Tipping the Funnel

Source:Empowered, by Josh Bernoff and Ted Schadler

Audience 2

Typical Conversion Rates

1. Cold calling:

2. External Recommendation:

3. Internal Recommendation:

44%10 X Cold calling

(Between 1-5%) 4%

88%20 X Cold calling

Social Influence

1. The Status Quo is Not a Growth Strategy

2. Marketing Today = Sales Tomorrow

3. Creating Systems of Engagement

4. Reasons lead to Conclusions

5. Creating an Unpaid Sales Force

Quick Review:

4Ps => S A V E

Start the (sales) conversation

Tipping the Funnel

Emotions lead to Actions

Competing to remain relevant to tomorrow’s customers

Adaptive Mindset

Get it right

www.flickr.com/photos/horacio/3781750

David R Ednie

President & CEO

SalesChannel Europe

Ph: +33 676 60 09 25 (FRA)

Email: [email protected]

Website: www.saleschannel-europe.com