Supplying the Right Buying Signals (from a Sellers Perspective) 3 rd - PowerPoint PPT Presentation

Supplying the Right Buying Signals (from a Seller’s Perspective) 3 rd March 2015  Richard Drake Hull University

Opening Questions By a show of hands:  How many people in the room are professional Buyers or Procurement ?  How many people in the room are professional Salespeople ?

Qualifying Questions Again by a show of hands - How many people in the room:  Have to consider company revenue as part, directly or indirectly, of their job?  Have to consider company profit as part, directly or indirectly, of their job?  Have to interact with external companies in their job?  Are driven by KPIs and Performance Metrics in their job? Buyers have plenty in common with Sellers

Agenda  Short Speaker Bio & OSL Consulting (18:00)  Account Management (18:10)  References  A Basis for Selling  Account Types and Behaviours  Behaviours that Buyers can Expect  Short Group Exercise  Account Planning (18:40)  Example Account Plan  Key Buying Features of Account Plans  Typical Spread of Account Plans  Examples of Buying Excellence (18:50)  Supplying the Right Buying Signals (19:00)  Questions and Further Discussion (19:10)

Richard Drake Biography Current Role: Head of Business Development, OSL Consulting Total Career Experience: 17 years OSL: Head of BD – Vision to enact the sales activity for the growth plans of the company ABB: Sales Team – Sales effectiveness and team revenue growth Contributed to Pharma sector growth 51% YoY Sales Excellence Champion / ISPE ABB Significant Contribution Award Emerson: Product Manager, AMS Performance Products Emerson: Business Support Manager Emerson: Performance Monitoring (Lead/Senior) Engineer Invensys: SimSci Technical Engineer ABB Certificate : Manager Development Programme – (pre-MBA) Chartered Chemical Engineer: Newcastle, BEng CEng MIChemE Background Technical Expertise: Thermodynamic & mathematical modelling, data analysis and interpretation Paper & Tissue Manufacturing Kleenex Double Velvet & Quilted – Chemical Engineer (Newcastle) Zewa Wisch & Weg and Softis – R&D Engineer (Germany)

Some Personal Interests • Professional Groups: Outgoing Chair of IChemE Pharma SIG Buying and Selling is still  Rugby League all about person to person relationships… So understanding who you work with is an important part of those  Cycling & relationship Motorsport  House Project

Head of Business Development: OSL Consulting  Engineering and Design Consultancy to the Gas, Oil & Energy markets  Established 2005 and privately owned  Highly skilled and qualified engineers, wealth of knowledge  Conceptual engineering to full implementation  Provide innovative technical solutions  Specialist resourcing capability  Head Office & Operations – Hull  Key Operating Hubs - Aberdeen, Great Yarmouth

References for Account Management  Key account management books are certainly worth reading  Some examples of books on the subject are those from Peter Cheverton (pictured below)

Account Management – a Basis for Selling What do the following shapes all have in common?  Bowtie 1-to-1  Fast Forward 1-to-Many  Diablo Duet  Diamond Many-to-Many A: Behaviour Types in Account Management

Account Type Diagram - 4 Sections High Key Accounts Development Accounts Summary: Acc Plan Account Type Required? O Opportunistic No Client Growth Potential D Development YES (1pg) K Key YES (5pg) E Established YES (2pg) Opportunistic Established Accounts Accounts Low High Supplier Relative Strength or Attractiveness

Account Type Typically Changes Over Time High 1 pg a/c plan 5 pg a/c plan Key Accounts Development Accounts Client Growth Potential Opportunistic Established Accounts Accounts No a/c plan 2 pg a/c plan Low High Supplier Relative Strength or Attractiveness

Account Type Definition (Opp & Dev) Opportunistic Account Development Account (1pg plan) • • Can supply and make money Large effort vs return • • Some proactive sales effort required Pushing to grow further • • Lower expected revenues Potential high revenue growth: 20% pa • • Standard margins/Low effort Value products and services being sold • • Relative sales effort <2.5% Significant sales effort required >15% • • Prospected for marketing purposes Can be regional area selling – May have more than one site • • 1-to-1 Account Management Style Should have simple account plan – Break in and build position • Single service to single offer • 1-to-1 & 1-to-Many & Duet Account Management Style

Account Type Definition (Key & Est) Key Account (5pg plan) Established Account (2pg plan) • • Typically buy multiple products or Further growth limited services • Demonstrate care & account • Highly value products and services nurturing • • Very high growth potential Aggressively maintain position/income • High level customer engagement • Keep competitors out at all costs • Agreed TCs and price book • Multi point contact active • Multi-site • Relative Sales effort <5% • V significant Sales effort 30% • Agreed TCs and price book • Stretch the initial position • Targeting multi-service to multi site • 1-to-Many Account Management Style • Duet & Many-to-Many Account Management Style

Behaviours that Buyers can Expect  Multiple people in  Strategic pricing & 1 pg a/c plan 5 pg a/c plan High Key Accounts Development the org know sales framework person Accounts  Considering market  Considering forces and pain/gain framework share models agreements  Know long term  Offers better ways of views doing things & bigger  Proactively look for picture value add  Multiple opportunity Client Growth Potential  Many people known  Standard Prices  Long term pricing  Low number of  Will work to contact points maintain position  Risk of not working in  Might end up the past “Opportunistic” if little revenue  Could have a new technology? Opportunistic Established  Lots of unknowns Accounts Accounts No a/c plan 2 pg a/c plan Low High Supplier Relative Strength or Attractiveness

Exercise – Define Example Account Type  You’re all going to be salespeople for a moment…  We’ll take 4 well known company names:  East Coast Trains / HSBC / Rolls Royce / Apple  Arrange those companies onto the Account Types based upon:-  Exercise 1 – Small IT supply company  Exercise 2 – Large manufacturing company  Once we’ve completed them - we’ll hear a few reasons from the audience

Account Planning  An account plan gives us an insight into the selling/buying interface  Whilst these are a tool for salespeople – the content drives behaviours and what buyers will be offered  Its worth reading some of those behaviours to understand how salespeople are trying to help your business  Personal example: Quick form account plan - Quad chart. Used for account plan review with a team

Example Account Name #1 Historical Revenue & Profit 5 25 Account Manager – Richard Drake Current Status 1 – Just taken over the account – need to verify existing account plan 4 20 Current Status 2 – Good relationships with some contacts Latest Org chart required. Don’t know new ops manager 3 15 Current Status 3 – We are on preferred supplier list – how £k % can we offer other products? 2 10 Track Record: Engineering Support - Prod #1 and Prod #2 1 5 0 0 OVERALL STATUS: Account needs support Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Account Team and Future Actions 2015 Top 3 Prospects Lead Process Eng, Lead Mech Eng, Snr EC&I Eng Prospect Product Value £ Qtr  Run next account meeting Name (% ) Due  Follow up customer request to visit (specific topic) Engineering Support 1 Prod #1 £AA.aa Qtr 2 Continuation (70%)  Consider how we can offer extra support Engineering Support 2 Prod #3 Trial £BB.bb Qtr 3  Offer time line to trial of Prod #4 (50%)  White space analysis Engineering Support 3 Prod #4 Trial £CC.cc Qtr 3 (20%) Support Required / Biggest Problem 2015 Year End Forecast  Incumbent has good track record YTD (£k) Target (£k) Forecast (£k)  2015-16 framework agreement needs renewing Mar 2015 2015 2015 £ ~ XX.xx £~ YY.yy £~ ZZ.zz

Key Buying Features of an Account Plan Any specifics we should be looking out for?  Organogram  Any account above opportunistic  Who are the people that will benefit - service / technology (etc)  High level Company background  What are the values of the business  Cost structures / where is value added  Increasing volume  Allows more efficient pricing  Multi-site activity  Drive an overall price structure  Cross site learning – very cheap way to generate ROI  Best practice can be adopted easily  Long term benefit analysis  Ensure executive teams hear about company improvement & best practice

Typical Spread of Accounts / Plans (%) KEY Accounts Development Accounts  Typical spread of High where effort is put on 50 20 generating account plans Customer Growth Potential 10 20 Opportunistic Accounts Established Accounts Low Low High Supplier Relative Strength Or Attractiveness