5 Critical Steps for Selling Managed Services

1. 5 Critical steps for selling
Managed Services + Bonus -
‘What to sell them’
@freshmindset1
@transmentum

2. Agenda
• Capex Vs Opex
• Value Proposition
• Decision Making Unit
• Process + Managing Sales people
• People on the bus
• What to sell them

3. Introducing Transmentum
• Who are we?
– A group of experienced senior managers with proven track records for
facilitating rapid growth in profit, turnover & people. All of our team are
accredited high growth specialists.
Paul Fileman
Strategy
Marketing &
Demand Generation
Adam Harris
Facilitator
Entrepreneurial
Coach
Steve Potts
Sales Strategy
Management &
Execution

4. Paul Smith
GTI Coach
Jim Wiggin
High Growth Coach
Andrew Bailey
GA/GTI Coach
Dr John Collins
GA/GTI Coach
Martin King-Turner
GA/GTI Coach
Ian Skidmore
Interim manager
Mike Butler IT
Recruitment Specialist
Tony Brookes
Management Training
Introducing some of our team
Pam Johnson
Interim Manager Tim Anderson
GA/GTI Coach

5. Our Mission
To facilitate the development, growth and
empowerment of European Technology and ICT
businesses such that their business revenues,
profits and skills continually increase.

6. Our Values
• Professional in everything we do
• Friendly and Honest
• Specialist and Focussed
• Committed to delivering value
• Respect

7. MINDSET
• LEARN and or RE-LEARN
• What we know that we know
• What we know that we don’t know
• What we don’t know what we don’t know!

8. What is the purpose of a
business?
“The ONLY purpose of a business is to attract,
maximise and retain customers.
Everything which contributes to this is an
investment.
Anything which doesn’t is a cost!”
Royston Guest
“Are your sales team an investment or a cost?”

9. The Importance of Vision Mission
and Values
• Vision – where you are going
• Mission – what you do to get there
• Values – how you do it
Further reading on this subject can be found here
http://www.members.transmentum.com

10. Change and causes
• Recent global recession
• Reduction in available
CAPEX move to OPEX
• New technology
(Managed Services)
• Fall in the cost of
bandwidth

11. Which means
• Today Financial Directors
make the decisions
• IT directors and IT
managers position may
be under threat
• Your sales team may be
talking to the wrong
people

12. SO, WHO MAKES THE DECISIONS
AROUND HERE THEN ?

13. Who are the decision making
unit?
Users Influencer
Payer
The “person” with the Means Authority & Need
(M.A.N.)
Choosers Authoriser

14. Identifying target markets
• Geography/Sector B2B or B2C
• Most likely to buy
• May have bought from you before
• Case studies and references
• Specialist products/services
and/or expertise

15. Value Proposition
Challenge
Problem
Pain

16. Value Proposition
I need to buy thousands of
pencils for use in my university.
The ones we bought last term
often broke and needed
sharpening. The exams start
next week.

17. Value Proposition
Perceived
Value
Perceived
Cost
Further reading on this subject can be found here
http://www.members.transmentum.com

18. Identifying routes to market
• Directly employed sales team
• Distributors/resellers
• Sales agents
• On-line
• Referrals programme
• Retail presence on the high street
• A combination of the above

19. Supplier strategy
Its no longer about
beating your suppliers
up for the best price
You are looking for a
“partnership” that will
endure for years to
come!

20. Understanding what selling is all
about

21. Solution selling is different
• Beware of unmet need
– do they know that
there is a solution to
their pain?
• Agree the solution with
the prospect
• Always agree the next
step at every stage

22. Five Critical Steps
1. Establish credibility – Provide evidence
2. Qualification – Identify their needs & motivations
3. Present a solution – demonstrate the value of your
solution and why it is different from alternatives
4. Present the price – Confirm clearly & confidently that
you can meet their needs
5. Sign the contract – Confirm that they understand
what they have bought and collect the cash

23. Delivering
WOWs
WOW
Expected
Product
Hotel
Room
Bed
Bath
Shower
Minibar
Towels
Bar
Restaurant
WiFi
Kettle
TV
Personal
Parking
Free
Internet
Chocolates
Concierge
Service
Spa
Sessions
Overnight
Carwash
Pillow
Choice
Free
Umbrella

24. A COMPELLING EVENT HAS A TIME
COMPONENT AND FORCES A
CHANGE OF BEHAVIOUR

25. Compelling events
• ALWAYS HAVE THESE THREE COMPONANTS
• Time, Cost, Quality
– And sometimes these days
• Compliance

26. Qualification
DMU
MAN Budget
What is the compelling event and when
is the next step?
Need
Who are the competition and can they do it?

27. Managing Sales Teams
Achieving Outstanding Sales Performance

28. The Dating and Marriage Analogy
• “Commodity” type sales (Dating)
– Simple
– Short sale cycle
– Compelling event driven
– ROI easy to demonstrate
– Within budget expectations
– Limit to long term commitment

29. The Dating and Marriage Analogy
• “Managed Service” sales (Marriage proposals)
– More Complex
– Longer sales cycle
– Need creation required
– ROI demonstrated through consultative selling
– Longer term commitment based on trusted
relationship

30. Professional
Sales Team Behaviour

31. You cannot educate the market
• They don’t care
• They don’t have time
• They don’t want to
know
• They won’t understand
And that’s why they
invited you in to see them

32. What is a Closing Ratio
A closing ratio is defined as the number of
completed sales that a person makes in
relation to the number of sales
presentations that he or she makes to a
QUALIFIED prospect.

33. What closing ratios should I
expect?
• Business Owner 1 in 2
• Sales Manager/Major accounts 1 in 2
• Account manager (Farmer) 1 in 3
• New Business (Hunter) 1 in 4-5
• New starter (first couple of months) 1 in 7

34. Pipeline Value
Closing Ratio
SIMPLES
= this months business results

35. Hunters
Focus on the acquisition of new clients

36. Farmers
Focus on retaining clients and winning
incremental business

37. STOP Don't expect one sales person to be both

38. So how do I recruit the right sales
people?
• Write a clearly defined job description for
hunters and farmers
• Have a clearly defined set of values and build
them into your recruitment process
• Develop incentive schemes that encourage the
behaviour you require

39. Sales People
• Know your numbers
– Selling is a numbers game more than any other business discipline
• Do your team communicate
• Planning and organisation
– Successful sales people are highly organised and pro-active
• Attitude
– The most important thing anyone can give you is their time so respect it
• Listening
– Successful people use their ears more than their mouth
– Losers tell people what they want
• Successful sales people take the time to establish their own credibility
and that of the company
– Losers dive straight in and talk about products

40. Remember verbal orders are
NOT worth the paper they are written
on

41. People – You need to Lead, Let
Others Manage
• You alone are responsible for
Culture
• Ensure the Coaching is
continual
• Be visible– Communicate
“As we look ahead into
the next century, leaders
will be those who
empower others.”
Bill Gates

42. How Engaged Are Your People?
10% increase in engagement
= 1% increase in customer satisfaction
Rational Commitment  Discretionary Effort 
Performance  Emotional Commitment 
Intent to Stay  Loyalty
Gallup Employee Engagement Index Survey -
repeated every 2 years since 2001 - 27m employees in GB

43. Measure Engagement
– 12 Q’s
ENGAGED
“Loyal, productive, find work satisfying”
NOT ENGAGED
“Not psychologically committed to their role,
may leave if the opportunity presents itself”
ACTIVELY DISENGAGED
“Disenchanted, vocal or militant in showing
their negative attitude towards work”
19%
61%
20%

44. The 12 Questions
1. Do I know what is expected of me at work?
2. Do I have the materials and equipment I need to do my work right?
3. At work, do I have the opportunity to do what I do best everyday?
4. In the last seven days, have I received recognition or praise for doing good work?
5. Does my manager or someone at work seem to care about me as a person?
6. Is there someone at work who encourages my development?
7. At work, do my opinions seem to count?
8. Does the mission/purpose of my company make me feel my job is important?
9. Are my co-workers committed to doing quality work?
10. Do I have a good friend at work?
11. In the last six months, has someone at work talked to me about my progress?
12. This last year, have I had the opportunity at work to learn and grow?

45. Get the Right People
on the Bus
• Hire for attitude, train for
skills
• Are your hiring managers
trained in interviewing
techniques?
• Ensure there is a robust
appraisal processes

46. And the Wrong Ones
Off the Bus
“My main job was
developing talent. I was
a gardener providing
water and other
nourishment. Of
course, I had to pull out
some weeds, too“
Jack Welch

47. What to Sell Them
• TOLD
• UNTOLD
• UNSOLD
• SOLD
• List of Features Check List

48. Thank You
• BONUS
• 8 Top Tips for IT
Companies – please give
me your Business card or
send me an E-mail and I
will send through