Reducing The TCO Sales Cycle
Kevin Wood Reducing The TCO Sales Cycle
Considerations Metrics Strategies Reducing The TCO Sales Cycle Why is TCO a Long Sales Cycle?
CAMFIL FARR Investment Energy Disconnect From MRO Product Performance Objective CAMFIL FARR Prospects Customers Forces of Commoditization
CAMFIL FARR Internet Disintermediation Automation Globalization Consolidation Examples of De-commoditization
CAMFIL FARR Two Reason Why People Dont Buy
CAMFIL FARR They dont believe their problem is significant enough to take action, or 2. They do not believe the solution will work. Three Challenges To Shorten The Sales Cycle
CAMFIL FARR Decision challenge Prospect does nothave a high-quality decision process to makethis type of decision. We put good informationinto a bad process and the decision is randomand unpredictable. Change A decision to buy leads to changeand change is painful. Value We must make sure the customer canmeasure the impact of our solution. Left to theirown devices they may not have the knowledgeor methods to quantify the savings. Invisible Pain? CAMFIL FARR Sales Metrics & Analytics
CAMFIL FARR Elimination of Waste Current State Future State Building A Product
CAMFIL FARR Building A Product Building A Customer Current State Future State Sales Executive Council B2B Index 2009-2012
CAMFIL FARR 15% Pre-Sales Time Access to prospects Competing for time Emphasis on solutions selling 26% Sales Time Reduced customer access Cancelled appointments Lower deal volumes 15% Post-Sales Time Constant reassessment of current approach Focus on account penetration Proof for complex solutions Factors Influencing Sales Metrics
CAMFIL FARR Longer life air filters. Selling TCO. Economy. Internet/social media. Predicting product trends &inventory. Metrics for Profitable Growth
CAMFIL FARR #1 - Appointments (14/Week) #2 - Opportunity pipeline (90 day value = growthtarget x closure rate) #3 - Sales mix (60-70% 5 Star ratio) #4 - Conversion rate (25% of opportunities) #5 - Gross margin % by account/salesperson(35%- 5 Star products 40-60%) #6 - New accounts added (2-4/month based onattrition). Strategies for Sales Cycle Reduction
CAMFIL FARR 34% Paradigm Update Social Media
CAMFIL FARR 2 million search queries are conducted every minute Viewers watch 3 billion hours of video per month 83% of Twitter users have attended college 34% 50% of all social media users are years of age Of small businesses use social media to attract new customers Prospecting Right technology Right technique Right audience
CAMFIL FARR Right technology Right technique Right audience Right message Right math (time & appointments) Three Cs of Prospecting
CAMFIL FARR Three Cs of Prospecting Concise Convincing Compelling $1 to save $5-10? plus R.O.I Were Selling Math! Would you spend?
CAMFIL FARR Would you spend? R.O.I $1 to save $5-10? plus Improve indoor air quality by 30-40%. Increase employee productivity by6%. Lower your healthcare experience cost factor. Increase your sustainability profile. Quantify The Cost of Delay
CAMFIL FARR Research shows that people will do more to avoid a loss than to score a win. Fortune Feb. 4, 2013 Savings per week not realized by delay of implementation = $1,072
Quantify The Cost of Delay CAMFIL FARR Savings per week not realized by delay of implementation = $1,072 Large hospital LCC over 2 years based on: AAF vs. 30/30 & Hi-Flo ES 10 cents per KWH 400 fpm and 24/7 hours of operation Local Proof & Guarantees
CAMFIL FARR Coil, belt, fan maintenance Labor lost opportunity cost Roof repair
Filter Cost CAMFIL FARR Energy Cost Labor Cost Disposal Cost Transaction cost Coil, belt, fan maintenance Labor lost opportunity cost Roof repair Administrative & selection cost IAQ cost First Cost & Cost Per Year
Quick Cost Calculator CAMFIL FARR = 3 First Cost & Cost Per Year Ultimate TCO/IAQ CAMFIL FARR 2017-04-26 Increase your pipeline & use metrics
Use technology, technique & time Measure your activity, behavior & results Sell math at the right level Remember what we are selling Change to whom you are selling Dont let proof delay the close The right tool from the tool box Develop local proof & guarantee materials CAMFIL FARR