SALES & KEY ACCOUNT MANAGEMENT

SANDEEP SINGHAL
1

The definition of salesmanship is the gentle art
of letting the customer have it your way.
- Ray Kroc

Agenda
Introduction
Sales force structure and design
Sales force planning and recruitment
Characteristics of a champion Sales person
Sales force training
Sales force performance and measurement
Sales force compensation
Sales Process
Sales Management process Funnel Management/CRM
Key Account Management Introduction
Key Account Management Key Factors
Why choose sales profession
Wrap up and Q&A






Sales Force Structure
Sales force can be structured on following lines :
Territorial
Product
Market
LoB (Line of Business)
Vertical
Hybrid

Designing the Sales Force
Sizing of Sales force is done based on workload

Group customers by volume
Establish call frequencies
Calculate total yearly sales call workload
Calculate average number of calls/year
Calculate number of sales representatives

Average utilisation of sales force
Peak Sales Performers Utilisation
Sales time down the drain.
Recruitment of Sales Force


Identify
Search
Qualify
Assess
Interview
Hes a big bad wolf in your neighborhood
Not bad meaning bad, but bad meaning good
Run DMC, Peter Piper

Lessons in sales from
Identifying needs First step
Creating Urgency
Applying Needs and urgency in sales
Never stop selling
Motivate your sales team
Focus on training
Embrace adversity


Four rules for Hiring Smart


What you know changes, who you are doesnt
You cant find what you are not looking for
The best way to evaluate people is to watch
them work
You cant hire people who dont apply

Traits of a Sales Person
Attitude
High energy
Hunger
Ability to handle stress/high pressure situations
Street Smart (vs Book Smart) Ability to think on feet
Excellent listening skills/non verbal cues
Excellent Questioning skills
Presentation skills
Ask and you shall receive Ability to close deals
Integrity - Builds trust/honors commitment/keeps word
Relationship magician
Be indispensable to the client
Hunting and Farming
Hunter Type of sales rep who
is focussed on closing deals with new customers
moves on aggressively to a new prospect after
closing a deal
is hunting for a new prey all the time
Farmer Type of sales rep who
cultivates and nurtures customer relationships
develops in depth understanding of customers needs
and business
is focussed on getting repeat business from
customers


Types of Sales people
Inside Sales
Employers place
Make calls
Telemarketing
Take orders
Outside Sales
Face to face contact
Meet customers
Thru Channels


A rose by any other name
Account Executive
Business Development Manager (BDM)
Territory Manager
Regional Manager
Sales consultant
Sales associate
Sales Engineer
Marketing rep



Sales Training
Company knowledge History, legacy and
culture
Business and Products/services
Internal company processes
Industry knowledge
Competitor knowledge
Customer knowledge
Government rules and regulations


Types of Sales Training
Induction training Typically 2 days
Face to Face, includes onboarding plus familiarisation
with company policies, procedures and HR issues
Sales School/Sales Mastery training 5 days
Detailed Product/Services knowledge
Contractual/Legal/Deal management trainings
2 days
To impart in depth training on firms legal/contractual
terms and conditions
On line trainings on companys
portal/intranet/hub


Sales Force Performance &
Measurement
Number, numbers, numbers Sales
numbers/quotas
However
A few other numbers which are measured
include
Number of new Accounts developed
Profitability
Number of Days Sales outstanding (DSO) A
measure of accounts receivables
Customer satisfaction Index
Sales Force Compensation
COMPONENTS
Fixed pay
Variable pay Short term/Long term
Incentives Spot incentives/Cash rewards
Bonus Annual Bonus/Signing Bonus/Retention
Expenses Travel Expenses
Benefits Statutory and Retirement benefits

Sales Force Compensation
Sales Quota
Proportion of Variable Pay 50:50/60:40/70:30
Accelerators
Thresholds
Commissions
Stock Options
Benefits

Sales Process
Prospecting and qualifying
Pre approach
Approach
Presentation/demo
Handling objections
Negotiations
Closing
Follow up


Sales Management Process
A single view of the various opportunities being
worked on by the entire sales force within an
organisation
Forms the basis for forecasting revenues
The process of
Identifying
Prospecting
Generating leads
Presenting solutions
Closing sales
Post sales activities
Sales Management Process
Components
Sales Stage
Probability of win
Pipeline
Forecast
Upside
Commit


PROSPECTS
LEADS
NEW CUSTOMERS
Satisfied
CSI > 70
Unsatisfied
CSI< 70
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OPPORTUNITIES
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SUSPECTS


Sales Funnel
Visitors
Prospects
Leads
Opts

Predicting the Future

Predicting the Future - The Forecast
Closed Likely Upside Q+1 P E D D I C C RD% VP% Fcst Upside
eCommerce 248,405 47,250 15,000 10,000 9,025 9,000
Inside Sales 207,900 10,000 - - 1,000 -
Salva
Army: Stryker 125th TF Olympia 151,662 - - - - -
McPartland
KPMG - Services 150,000 - - - - -
Black
BAH / Centrix 78,183 - - - - -
Okada
NG / State Near East Bureau 62,894 - - - - -
Okada
CARE 60,266 - - - - -
Foster
Tyco - software 56,389 - - - - -
Marcus
CA Dept of Justice 56,279 - - - - -
Wilson
Microsoft 54,856 - - - - -
37,021 - - - - -
Smith
SPAWAR-DM,B/U Svr 36,794 - - - - -
Black
DARPA (SAIC/Hicks) 32,218 - - - - -
Tyre
EDS 28,265 - - - - -
Foster
Praxair 23,977 - - - - -
Marcus
State of FL 22,943 - - - - -
Shartzer
LDS - Deseret Mgt 18,483 - - - - -
Shore
P&G 17,987 - - - - -
Manniso
VA - Infrastructure (Albany NY Buyer) 15,120 - - - - -
Tyre
Shell - trial extension 15,000 - - - - -
Smith
SPAWAR Europe/Ivan(2) 14,075 - - - - -
Salva
Army Corp. Of Engineers - 1,808,559 - - Y Y Y Y Y Y Y 50% 50% 904,280 -
McPartland
EY - enterprise - 787,000 - - Y Y Y Y Y Y Y 80% 90% 78,700 -
Salva
Army: HQ - 439,480 - - Y Y Y Y Y Y Y 95% 95% 21,974 -
Shartzer
Hitachi Data Systems - 192,465 - - y Y Y y y Y N 80% 80% 38,493 -
Shore
GSK - 104,000 - - Y Y Y Y Y Y Y 70% 90% 10,400 -
Salva
PM RESET (Aviation) - 93,417 - - Y Y Y Y Y Y Y 95% 90% 9,342 -
Shore
Lowe/Draft - 65,000 - - Y Y Y Y Y Y Y 70% 50% 32,500 -
Foster
Praxair - 59,000 - - Y Y Y Y Y Y Y 90% 90% 5,900 -
Manniso
VA Florida Ohio buyer GTSI - 46,125 - - Y Y Y Y Y Y Y 90% 90% 4,613 -
Hommes & Process (Fr)
CCAIG - 40,000 - - 100%
Marcus
State of FL - 22,943 - - Y Y Y Y Y Y Y 90% 80% 4,589 -
Edginton
Intermec - 21,893 - - Y Y Y Y Y Y N 75% 75% 5,473 -
Tyre
American Express - - 678,000 - Y Y N N Y Y N 40% 40% - 271,200
Wilson
Intel - - 310,126 - Y Y N N Y Y N 60% 60% - 186,076
McPartland
KPMG - Servers - - 132,600 - Y Y Y N Y Y Y 35% 35% - 46,410
Marcus
USG - New project - - 125,000 - y y y y y y N 75% 50% - 62,500
Foster
Siemens - - 86,000 - Y Y Y Y Y Y Y 50% 60% - 51,600
Foster
Siemens - - 55,000 - Y Y Y Y Y Y Y 50% 60% - 33,000
Boyd
La-Z-Boy - - 45,850 - Y Y Y Y Y Y Y 65% 65% - 29,803
Prob Adjustments Sales Qualifiers
Rep Account
Current Quarter's Forecast
Types of Sales
Transactional Sales
Mostly consumer goods
Relatively simple transactions
Consultative sales
Solution based approach
Mostly business to business
Strategic Alliance
Relationship is crucial
Complex sales
Key Account Management

KAM is an approach which includes developing
long term relationships with strategic customers
whose needs you understand in depth, and for whom
you develop a special offer with a differential
advantage over the offers of competitors.





Why Key Account Management
80:20 - 20% of customers account for 80% of
revenue in most cases. So they need to given special
focus by top management.
Complexity in handling large and global accounts -
The size and nature of a customer may require the
allocation of a KAM to manage them to ensure
satisfaction.
Life cycle engagement Customers have cycles,
both in terms of business and employees. KAM
reduces the likelihood of a solution being removed by
a competitor at a later date.






Goals of a KAM
To keep the engagement with key accounts on an ongoing
basis, through all the stages in a sales cycle and also post
sales.
To keep customers feeling glad about their relationship
including any purchase(s) by ensuring that a state of cognitive
consonance dominates,
To develop a KAM strategy that reflects the different types of
approaches that can be used based on time, resources and
money available and choose the best approach.
To negotiate the contracts effectively.
To understand and develop special offers that appeals to the
strategic customer.
To learn, understand and exploit the differential advantages at
the beginning of a sales cycle as well as re-enforcing them post
sale .





What makes a good KAM
Someone who is interested in more than a short term sale
and one who believes in value of long term relationships.
Someone who sees the customer as strategic to their
own success as well as their own organisations.
A good problem solver who is able to bring a customer
always back to a state of glad regardless of the issue.
Someone who can think outside of the immediate
environment and project issues the customer is likely to
have before they have them and provide solutions to the
same.
A person who is willing to input time and effort without
immediate financial compensation.

Key factors governing Key
Account Management
Key People
Two kinds of people
People who can influence decisions being
Political Influence
Administrative influence
Technical Influence
Operational Influence
People who carry the authority owing to
Structural For example seniority
Financial
Contractual

Key Needs
Two kinds of needs
Rationale for buying
The functional need that the product/service is going to serve
How does it fit within their existing framework
What will happen if the buyer chooses not to buy
Emotional motivators
Is the need real or is it just to satisfy some other fancies
What are the aspirations of buyers that product/service will
serve



Key Times
Understand the timelines/calendar in buying
process
Does it align with the end of a Financial year
Is it tied up to the end of a particular project
Is it a date by which they have decided to find a
solution to the problem which necessitates buying
This understanding helps me to
Forecast my pipeline more effectively
see that all the activities I planned to do inside
clients account are done well in time.


Key Events
Physical Sales based activities which I have to
perform at customers end and reach a
conclusion with them
Investigation/Fact finding meetings
Presentations
Response to RFPs
Solution Discussions
Product/Services demo/POCs
Commercial discussions/Negotiations

Key Competition
Two kinds of competition
External Competition
Companies selling similar products/services
Companies having alternate/substitute to products/services
offered by me
Internal Competition
From within Clients people wanting or not wanting to change
current procedures
From within clients people strongly aligned to some
competitor of yours

Key Concerns
Fears or reservations clients have in terms of
committing business to me
Something they are not comfortable with
Not sure it fits within their organisation
Need to develop an action plan to overcome this
By understanding the underlying causes of concerns
Changing the perception of the client and giving him
comfort


Key Disadvantages
Need to understand where my product/services
are deemed to be weak with respect to
Competition
Needs of customer
Need to understand how we can compensate for
the disadvantages and focus on true values
where we are weak
To bring true value
To align to people who matter



So why choose a sales career
Mobility
Not tied down to a place or industry
Transition is relatively easy
Plenty of jobs
As long as a business exists, it has to sell
As long as it has to sell, it has to have sales persons
Independence
Handling a territory/market gives enough
independence paves way for leadership roles
Not get stuck in corporate day to day operations



The SW Rule
Some will. Some wont. So what? Someone else is waiting.

Wrap Up and Q&A