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The document provides a sales strategy prepared by Moses Dokoria. It begins by outlining key elements of a sales strategy including identifying target customers, products, and sales methods. It then discusses developing an effective sales strategy that is aligned with business and marketing plans. The strategy should identify key aims, set a clear market strategy, plan costs of customer acquisition, document how to reach each customer, include sales forecasting and budgets, resources required to meet the plan, and metrics to measure performance. When approaching potential customers, the document recommends identifying if they are business-to-business or business-to-consumer and tailoring the approach accordingly. It also provides tips for negotiating with customers such as establishing credibility, developing multiple contacts, neutral
Start up presentation
- 1. SALES STRATEGY PREPARED BY MOSES DOKORIA
- 2. Sales strategy is a Business decision on:- Who are you selling to ? What are you going to sell? How are you going to sell? What kind of sales and marketing messages are you going to send out ? What are your clear goals ?
- 3. Effective Sales Strategies Are 100 percent aligned with the overall business strategy and outline the ideal target clients, value proposition, success metrics, goals, roles , processes and specific actions desired to meet targets.
- 4. The Sales Strategy must be based on the business and marketing Plans Outline as much detail as possible How will the sales and marketing team deliver on objectives The plan to target market segments and how will they support marketing activities such as inbound leads or promotional events
- 5. IDENTIFY THE KEY AIMS OF THE STRATEGY IS IT ABOUT MARKET PENETRATIO N OR MARKET DEVELOPMEN T? I S IT TO SELL MORE TO THE SAME? WHICH TARGET MARKETS ARE YOU AIMING FOR AND HOW MUCH TIME, MONEY AND RESOURCES DO YOU NEED. RESEARCH WHEN , WHERE , HOW AND WHY THE EXISTING CUSTOMER BASE BUYS
- 6. SET A CLEAR MARKET STRATEGY Do you want to grow existing accounts Revenue with Existing products Revenue from new products New revenue with existing products Up and cross selling Retention plan Acquisition Plan Customer mix Product Mix Seasonal sales cycles
- 7. PLAN AND CALCULATE THE COST OF CUSTOMER ACQUISITION PLUS SELLING COSTS. Use Then use these profiles to target similar companies Identify Identify the metrics or sales KPI’S that will enable the business to understand what a profitable customer looks like. Include Always include the total cost of selling to each one by sales channel Create Then create a list of existing , potential and major customers List List existing customers in order of profitability
- 8. DETAILED PLAN ON HOW TO ACQUIRE NEW BUSINESS May be to win the business of a key customer , you may offer acquisition pricing or even consider giving the product on a trial basis In the case of Acquisition pricing, make sure you have a plan to move prices and margins back up to a profitable level, or else live with reduced margins from these customers.
- 9. DOCUMENT HOW YOU WILL REACH EACH CUSTOMER Which sales channels will be most effective in selling to which customers. Do you sell direct or through channels? Map out the costs of each channel against the benefits it would bring Implement a well functioning funnel and opportunity planning process
- 10. SALES PLAN,FORECASTING AND ANNUAL SALES BUDGET A detailed breakdown of the sales to be achieved each month, by customer and by product Base forecasts on previous sales levels or if a new business, base on the business plan Take into account information about customers buying habits , sales cycles and other factors such as pricing and marketing activities.
- 11. SELLING RESOURCES REQUIRED TO MEET THE PLAN Training plan if any Plan to improve customer experience Any specialist support needed Resources needed to make the sales force more productive Cost of providing admin support so sales people spend more time on selling Marketing and sales assets to close more deals.
- 12. MEASURING SALES PERFORMANCE Sales forecasting accuracy Cost of sale analysis Time and money spent on different customers Analysis of customer segments Sales person productivity Channel productivity Lead to conversion ratio Cost per customer sale The return on sales costs
- 13. HOW TO APPROACH A POTENTIAL CUSTOMER PREPARED BY MOSES DOKORIA
- 14. IDENTIFY THE TYPE OF CLIENT ; (1) B2B (2) B2C Business to business(B2B): a. Research your target customer and prospect b. Equip yourself with product and industry knowledge c. Ask questions d. Prioritize listening over talking 70% to 30% e. Adopt a consultative approach f. Focus on building relationships g. Adopt a customer-centric sales approach: Stop the ‘’the always be closing frame of mind’’ don’t pressure them into buying rather focus on how your product solves their problems h. Then work out whether you are offering the solution at a price they can afford Business to consumer(B2C) a. Raising brand awareness b . Increasing engagement c . Creating more leads d . Driving more sales: Purchases based more on product , price and convenience e . Boosting customer retention, loyalty and lifetime value
- 15. B2C vs B2B Marketing B2C Large and broad market target Individual buyer Simple single step buying process Sales driver is brand awareness and repetitive sales Cost of selling is moderate Example groceries, clothes, house, cars B2B Small and niche market target The buyer is a company/business entity Longer & multiple steps in the buying process Sales driver is value proposition/social proof/ relationships Cost of selling is relatively high compared to the consumer market because there are more considerations and decision makers Example software, equipment
- 17. SIMPLE NEGOTIATING RULES BEFORE THE NEGOTIATION STARTS Establish your credibility: By helping the customer to clarify needs, define solutions & arrive at the best solution. Then the customer will be reluctant to walk away from the final deal even if terms are not favourable. Develop multiple contacts: This is particularly important in B2B marketing and should be done early in the sales cycle or your primary contact might see it as a threat . Neutralise the competition: A customer can only threaten to go to a competitor if the competitor represents a viable option. Before negotiating , convince the customer that your offering is the only one that can meet her adequate needs Prepare thoroughly: Collect and evaluate information on leverage values, prices, competition, and other areas that are likely to have an effect upon the negotiation. Develop realistic expectations Know your pricing parameters: When it comes to price, know the deal you want and justify as being realistic. Never offer a discount without some other concession to counter balance it. Decide whether to go first or not: Give yourself room to manoeuvre: Leave yourself some bargaining room, but make sure that you have a plausible rationale for any positions that you take RULE OF THUMB
- 18. SIMPLE NEGOTIATING RULES DURING THE NEGOTIATION Don’t compete with the customer: Negotiations are attempts to reach agreements not contests. Make the relationship so important that it is worth the extra effort , on both sides, to make reasonable concessions. Don’t chicken out: Customers will sometimes take negotiating positions that simply do not make any sense for your firm. When this happens you would be crazy to give in, even if standing firm kills the deal. Manage the concession process: Let your partner know that every concession is meaningful and don’t let your counterpart think that holding out will reap big rewards Sustain your credibility: Buttress any positions that you take with appropriate rationales. Be specific about your facts and (this is important!) stay detached from the emotion of the negotiations. Know when it's time to stop: If the negotiation is going well and you've got most of what you want, don't keep negotiating. If you're 90 percent there, you're done. Never agree to last-minute demands: Those little “last minute refusals" may sound like deal-killers, but they're actually how the customer tests you to see whether the negotiated deal is fair. Give in, you're telling the customer that you were about to hit them below the belt. Negotiate until the contract is signed: Don't relax once there's a meeting of the minds because until the contract is actually signed by both parties, it's just so much moonshine. CONTINUED