1. Marketing and Sales Alignment conference
September 20–21, 2011
Sales & Marketing:
Revitalizing the Value Proposition
Keith O’BRien JiM Kizielewicz
Vice President, Global Research, Senior Vice President and
Growth Team Membership™ Chief Marketing Officer
Frost & Sullivan Kronos incorporated
Keith.OBrien@frost.com james.kizielewicz@kronos.com

2. The Growth Team Membership™ (GTM)
GtM is a subscription program GtM provides best practices, events, and
that supports executives within the services that enable executives to address
functions that report to the ceO challenges within their companies
ceO’s Growth team™ GtM: creating client Value
GtM’s case-based best practices help executives:
R&D/
Innovation
Corporate Sales
Strategy Leadership Speed the design and implementation of initiatives
by not reinventing the wheel
Marketing
Marketing
CEO Corporate
Development
Save money and reduce risk by avoiding mistakes
made by other companies
Investors/ Market Accelerate problem-solving with a cross-industry
Finance Research
perspective
Competitive
Intelligence
improve their functions’ and companies’
performance and productivity
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3. Profiled Best Practice Company
Firm: Kronos
industry: Software Services and Applications
headquarters: chelmsford, Massachusetts, United States
Geographic Global
Footprint:
Ownership: Private
Revenue (2010): ~$750 million USD
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4. Growth Challenge
Problem:
Slowing product growth forces Kronos’ marketing and sales organizations to
create and deliver a differentiated value proposition.
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5. Kronos’ marketing leadership works with Sales to revitalize the value proposition and
create differentiated sales messages
creating and embedding a new Value Proposition
Revisit Existing Value Create New Value Develop Sales Drive Sales Force
Proposition Proposition Messages Adoption
Objective Objective Objective Objective
conduct a baseline assessment Develop differentiated value translate the value proposition Achieve 100% adoption of new
of the current value proposition into sales force messaging messaging by sales force
proposition’s strengths and
weaknesses
Activities Activities Activities Activities
• Perform market assessment • conduct Affinity • conduct Power Messaging® • conduct Power Messaging®
• conduct brand positioning Diagramming exercise to workshop with sales and workshops with entire
workshop identify customers’ critical marketing leadership to sales force
• Run customer/prospect Business issues (cBis) update messaging and • establish Sales and
focus groups • Pinpoint how Kronos techniques Marketing leadership
uniquely addresses these councils by vertical market
cBis and translate into a
value proposition
Output Output Output Output
• Market assessment • critical Business • new messaging techniques • Sales force adoption of
• Focus group findings issues (cBis) and key • Portfolio of customizable customizable messages and
• Governing Brand idea (GBi) differentiators messages techniques
• new value proposition • industry-specific Sales
• Foundational Message Guide and Marketing leadership
(FMG) councils to drive ongoing
adoption
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6. Pressure-test market understanding and value proposition
Market Assessment Brand Positioning workshop
Participants
Situation Senior sales and marketing executives (one-day
workshop)
• Management believed Kronos was the
market leader, but the company’s product Objectives
revenue growth was flat, despite category • Audit existing marketing messages and
growth collateral
• commissioned a third-party assessment of • Develop preliminary Governing Brand ideas
the workforce management (wFM) market (GBis) to be tested in focus groups
Objective
Preliminary Governing
capture the current state of the workforce
management category. Brand ideas (GBi)
Findings “The experience to
know it’s complex. The
3two customer segments exist: expertise to simplify it.”
- ease-of-use buyers who value straightforward
implementation with low cost of ownership need to revise
brand positioning “Workforce
(50%) management doesn’t
to appeal to both
- Functionality users who value advanced have to be so hard.”
segments
features (50%)
Kronos is the market leader, but growing slower “Simple solutions that
than the market work hard.”
Kronos lacks a compelling category positioning
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7. Conduct focus groups to gather insights on the most effective brand positioning
Focus Groups
Objective: Validate Market Objective: Assess Kronos’ Objective: identify the most
Assessment findings competitive standing convincing GBis
Sample Questions Sample Questions Sample Questions
• what are your top-three needs • what is Kronos’ personality? • which positioning statement do
addressed by a wFM solution? • For what type of solution would you find most compelling?
• On a scale of 1 to 5, how you call ADP? • would the statement entice you to
important is fast payback to you? consider Kronos?
Results
• Awareness and consideration rates
Results are lower than expected
• Users are frustrated with the Results
complexity of wFM solutions • existing value proposition around • “Workforce management doesn’t
time and attendance benefits is have to be so hard” is an appealing
• Prospects who value ease-of-use undifferentiated brand position:
wFM solutions are currently
underserved • Perception of market strengths - the statement defines the category
does not align with customer/ and appeals equally to functionality
prospect perceptions and ease-of-use buyers
Action Steps Action Steps Action Steps
• Simplify the customer experience by • Develop a differentiated value • leverage the brand positioning in
modifying the user interface proposition marketing
• expand brand positioning to • work with sales leadership to • create internal documents and
accommodate ease of use and high- embed new value proposition with perform training to align employees
functionality customer segments the sales force on the new positioning
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8. Develop a customer-focused, differentiated value proposition
Developing the Value Proposition
Using the Governing Brand idea as the foundation, Marketing leaders Marketing leaders identify how
employ the Affinity Diagram to identify three critical customer needs Kronos can uniquely address
that should be addressed by a workforce management (wFM) solution. critical Business issues.
Create Affinity Diagram Identify Critical Develop Kronos’ Key Articulate Value
Business Issues (CBIs) Differentiators Proposition
cBis are core customer Kronos is the global
Workforce management
doesn't have to be so hard!
needs that can be addressed
by workforce management
33 Kronos provides
complete automation leader in workforce
management
solutions.
Improve
33 Kronos delivers high-
quality information
solutions that enable
organizations to:
• control labor costs
Control
labor
costs
workforce
productivity
33 Kronos is easy to own
• Minimize compliance
risk
cMO VP,
enterprise • improve workforce
VP, corporate
Marketing Marketing productivity
Minimize
compliance
risk
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9. Create a Foundational Messaging Guide to provide a companywide reference point
for the new value proposition
Foundational Messaging Guide (FMG)
The FMG: An Overview
• the FMG is designed to align all employees on Kronos’ value FMG’s ability to
proposition and is updated regularly FMG Objectives
attain objective
• the FMG demonstrates how Kronos addresses the two core
questions listed below
create common understanding
of the value proposition 
Drive alignment on role of
wFM, core customer needs,
and Kronos’ solutions 
why do customers
Foundational Messaging
Guide
Supply the building blocks for
differentiated sales messages
Provide sales messages to

purchase workforce
management?
contents
why workforce Management? . . .3
address critical business issues
Develop selling techniques to be
Answer: the three critical
Business issues (cBis)
cBi #1 controlling labor costs .
cBi #2 Minimizing compliance
Risk . . . . . . . . . . . . . .
.4
.7
used with prospects
cBi #3 improving workforce
Productivity. . . . . . . . . .9
mm ary
In Su
Differentiator #1:
why purchase a Kronos complete Automation . . . . . . . 14
workforce management Differentiator #2:
solution? high-Quality information . . . . . 17 the FMG captures the value proposition
Differentiator #3: in a written format; however, it does
Answer: Kronos’ key easy to Own . . . . . . . . . . . . . 18 not enable Sales to articulate the value
differentiators around each proposition verbally.
cBi
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10. Translate the value proposition into effective sales messaging
Sales Force Adoption challenges Sales Messaging techniques
Messaging Techniques
Bringing differentiators to life through customer messages Stories 3D
Message Number Big
with Props
Attributes Plays Picture
Contrast
the sales force needs to believe in the messages
leverages
customer
“not invented here” syndrome stories
Appeals to
multiple
learning
Power Messaging® workshop styles (visual,
auditory,
kinesthetic)
Workshop Participants
Marketing leadership, Sales leadership, Key sales representatives, customers can
and Product Management relate to the
message
Purpose
• translate differentiators into messages and delivery impact is easily
techniques for Sales understood
• Build sales and marketing consensus on messages and and memorable
techniques
Critical Inputs
• why customers buy (cBis) and why they buy from Kronos
(differentiators)
• Preliminary success stories that demonstrate how Kronos
uniquely meets customer needs
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11. Develop easy-to-customize messaging techniques
how to create a Story with contrast
Retail Hospitality Customer Example
Squeezing More Out of Scheduling
the story Jamba Juice Results Achieved
must be
relevant • Quick-serve “The $19.7M decrease in labor cost was highlight
Business restaurant primarily attributed to optimization of labor pertinent
• Smoothies scheduling, leading to more efficient labor results
management.”
• 730 locations – 2010 Annual Report
company
• Operates in 47
Size • 2008 labor = 36% of sales
states it’s a story,
• 2009 labor = 34% of sales
so limit
• timekeeping, data
Key
forecasting,
Products
scheduling
Before Kronos After Kronos
• Manual forecasting and scheduling • Automated scheduling
resulting in: • Accurate baseline forecasts
- Gaps in coverage
• Quick reaction to weather conditions:
- Overstaffing Make the
- Overcast and cold—call people off
• inability to react to changing customer
emphasize - Sunny and hot—staff up
conditions, especially the weather the hero
the benefits • companywide scheduling and
• no visibility into store operations regulatory compliance
of choosing
Kronos
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12. Drive sales force adoption by directly addressing barriers to adoption
Power Messaging® workshop with Kronos Sales Force
Workshop Secure Buy-In on the Create Ownership Put the Techniques
Overview CBIs and Differentiators of the Techniques into Practice
Attendees:
Sales force (450 Adoption Barrier: Adoption Barrier: Adoption Barrier:
participants, in
groups of 25–30) Skepticism Ownership Confidence
Duration:
two Days
Overcoming the Barrier: Overcoming the Barrier: Overcoming the Barrier:
Pre-work:
the facilitator leads a group the facilitator helps participants the facilitator leads role-play
• complete exercise requiring participants tailor their own success sessions to practice message
Power to “wrestle” with the new stories for the new messaging delivery and drive behavior
Messaging® messaging: techniques by: change:
elearning
module • Discuss the cBis and • encouraging participants • Participants present their
differentiators candidly and to use multiple messaging stories using the new
• Bring compare them to existing techniques and select the techniques and receive peer
examples of messages ones they prefer and facilitator advice
customer
challenges • Prove that the differentiators • Participants build their
successfully are unique compared to confidence in the messages
addressed competitors’ offerings and techniques
by Kronos’ • emphasize positive
differentiators engagement with the
differentiators
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13. Establish Sales and Marketing Leadership Councils to drive ongoing application of
the value proposition
Sales and Marketing Sales and Marketing leadership council
leadership council
charter
Service Retail
Purpose Manufacturing healthcare Public Sector
Distribution hospitality
• Run operations
reviews of each
vertical market
Marketing Sales Product Services
• Build and
maintain trust and Attendees: Attendees: Attendees: Attendees:
transparency Director of Marketing; Area VP, Sales; Director Director of Product Director of Services
Responsibilities VP, enterprise Marketing of Sales Management Management
• Monitor the state
of the business Value Proposition Value Proposition Value Proposition Value Proposition
Support: Support: Support: Support:
• examine sales • Develop Stories with • conduct follow-on • Align the product • train services staff
and marketing contrast for Sales training roadmap
effectiveness • ensure the customer
• Provide presentation • Provide customer • ensure development experience reflects
Meeting Schedule templates success stories to plans address the promised value
Monthly for four hours marketing customer issues
Example: Example: Example: Example:
Spot-check sales Video mock sales Use customer review certify services staff so
presentations for presentations using new panels to confirm they communicate the
consistency with brand messaging techniques innovations reflect the same value proposition
messaging and provide feedback voice of the customer to customers
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14. Business Results
Percentage of Sales Force impact of Power Messaging®
Using Power Messaging® techniques yltne
techniques on closing Business
ts isnoC
(Survey of Kronos Sales Force) yreV (Survey of Kronos Sales Force)
yltne
Somewhat Consistently Consistently
tsisno
C Some Impact
Very yltne
tsisno
C tah
wem
4%
8% oS
Consistently Significant Impact
16%
Somewhat Consistently
Consistently
21%
Very Consistently 71% High Impact 80%
Annual Revenue and eBitA*
$820 $250 Revenue
$800
eBitA
$780 $200
$760
$740
$150
Revenue $720 eBitA
($ Millions) $700 ($ Millions)
$100
$680
$660
$640 $50
$620
$600 $0 * EBITA is earnings before interest,
FY 2008 FY 2009 FY 2010 FY 2011 taxation, and amortization.
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projected Growth Team Membership™ research.
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15. Register for a webinar with Charles DeWitt (Kronos Inc.) and Tim Riesterer
(Corporate Visions)
Ask the Thought Leader Webinar
Sales Marketing: Revitalizing the Value Proposition
tuesday, 27 September 2011
11:00 et
(Duration: One hour)
ReGiSteR for Free at http://www.frost.com/Atl
charles Dewitt tim Riesterer
the webcast will feature:
• A best practice case study that shows how Kronos’ Marketing and Sales developed and
delivered effectively a differentiated value proposition
• Key lessons learned and QA with charles Dewitt, VP—enterprise Marketing and tim
Riesterer, cMO
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