BD&S S1-2 Student Version PDF

Business Development & Sales IE Business School Prof. Antonio González Fernández Sessions 1-2 | 2023/24 © Professor Dr. Antonio González Fernández for IE Business School 2023/24 1 Welcome to BD&S course! © Professor Dr. Antonio González Fernández for IE Business School 2023/24 2 Warming up with food for thought! © Professor Dr. Antonio González Fernández for IE Business School 2023/24 3 How do we know that we have a business? © Professor Dr. Antonio González Fernández for IE Business School 2023/24 4 Can a brand survive without Sales? © Professor Dr. Antonio González Fernández for IE Business School 2023/24 5 © Professor Dr. Antonio González Fernández for IE Business School 2023/24 6 The symbiotic relationship between branding and sales © Professor Dr. Antonio González Fernández for IE Business School 2023/24 7 Do Creative Campaigns Always Translate into Sales? Why? Why Not? © Professor Dr. Antonio González Fernández for IE Business School 2023/24 8 Link to source © Professor Dr. Antonio González Fernández for IE Business School 2023/24 9 How Do Digital Platforms and Social Media Influence Sales Strategies? © Professor Dr. Antonio González Fernández for IE Business School 2023/24 10 © Professor Dr. Antonio González Fernández for IE Business School 2023/24 11 The anchor effect © Professor Dr. Antonio González Fernández for IE Business School 2023/24 12 The anchor effect When clients don’t have a reference for a product category or service: •1 st price in mind crafts “anchor effect” because our brains work by comparison, benchmarking product offers with the first price in the top of mind • Decision making bias: “selecting the best of the presented options or the price in the middle” Source: Harvard Law School © Professor Dr. Antonio González Fernández for IE Business School 2023/24 13 The SaaS business model & MRR © Professor Dr. Antonio González Fernández for IE Business School 2023/24 14 Funneling & Sales Organization design Flywheel Funnel for digital sales Inside Sales organization © Professor Dr. Antonio González Fernández for IE Business School 2023/24 15 Social Selling © Professor Dr. Antonio González Fernández for IE Business School 2023/24 16 What is Social Selling? Social selling is the process of researching, connecting, and interacting with prospects and customers on social media networks. Today, 56% of salespeople utilize social media to find potential prospects by commenting on, liking, and sharing prospects’ and customers’ posts creating organic relationships with buyers over shared interests. Instead of a hard closing tactic, social selling more closely resembles lead nurturing. Social selling isn’t for reps seeking quick wins or a silver bullet. To succeed, salespeople must put in the time and effort to engage with their target buyers and build credibility. © Professor Dr. Antonio González Fernández for IE Business School 2023/24 17 Social Selling © Professor Dr. Antonio González Fernández for IE Business School 2023/24 18 Social Selling and LinkedIn Link to source © Professor Dr. Antonio González Fernández for IE Business School 2023/24 19 Is Data-Driven Sales Strategy at Odds with Creative Branding? © Professor Dr. Antonio González Fernández for IE Business School 2023/24 20 Can they co-exist? © Professor Dr. Antonio González Fernández for IE Business School 2023/24 21 Complementary roles 1. Data-Driven Insights Enhance Creativity: providing critical insights into customer behavior, preferences, and pain points guiding creative teams in crafting more targeted and impactful branding strategies. © Professor Dr. Antonio González Fernández for IE Business School 2023/24 22 Complementary roles 2. Creativity Adds Depth to Data: creativity brings in the qualitative aspects that make a brand unique and relatable, evoking emotions and build relationships, aspects often not captured entirely by data. © Professor Dr. Antonio González Fernández for IE Business School 2023/24 23 But what is selling about? How do we define selling? © Professor Dr. Antonio González Fernández for IE Business School 2023/24 24 ‘to give something to someone else in return for money’ Cambridge dictionary Sure? What do these people have in common? © Professor Dr. Antonio González Fernández for IE Business School 2023/24 28 And these? © Professor Dr. Antonio González Fernández for IE Business School 2023/24 29 They are selling! © Professor Dr. Antonio González Fernández for IE Business School 2023/24 30 Selling is… move others! Daniel H. Pink “To Sell is Human” 2012 Sales Myth #1 Selling is all about economic transactions Buy your product Move other people to... Adopt your ideas Support a cause Get married Flirt... “Two-way ﬂow of communication between buyer and seller intended to inﬂuence purchase decision” Doug Chung & Das Narayandas Harvard Business School Sales Reality #1 Whatever you do in life you are selling! #weareselling247 36 Myth #2: Selling is only for extraverts A study on sales people performance Extraverts - 125 $/hour Introverted - 120 $/hour Ambiverts - 208 $/hour Grant, A. M. (2013). Rethinking the Extraverted Sales Ideal: The Ambivert Advantage. Psychological Science, 24(6), 1024–1030. https://doi.org/10.1177/0956797612463706 Sales Reality #2 You don’t need to be “gifted” to be a good at sales! Go for the ambivert! Extroverted individuals are generally outgoing and thrive in social situations, often feel energized by interacting with people and may ﬁnd solitary activities draining: - Socially conﬁdent and outgoing Enjoys group activities and social gatherings Often expressive and enthusiastic May seek external stimulation and excitement Can be talkative and enjoys meeting new people Introverted individuals typically feel more comfortable in solitary or low-stimulation environments. Unlike extroverts, they may ﬁnd social interactions draining and recharge through alone time: - Prefers solitude or small group interactions May be introspective and enjoy deep thinking Often reserved and may take time to open up to new people Values quality over quantity in relationships May be sensitive to external stimulation Ambiverts exhibit traits of both extroversion and introversion. They are ﬂexible and adaptable, comfortable in both social and solitary situations: + + + Enjoys social interactions but also values alone time Can be both talkative and reserved depending on the situation Adaptable to different social settings and activities, may have a broad range of interests, some of which are best pursued alone and others in groups © Professor Dr. Antonio González Fernández for IE Business School 2023/24 41 Go for the ambivert! Understanding personality types is not only valuable for psychological assessments but also has practical implications in ﬁelds like marketing, sales, and organizational behavior. Introverts might prefer personalized, low-pressure sales tactics, while extroverts may respond well to social proof and group dynamics. Ambiverts, being adaptable and assertive could be responsive to a variety of approaches. © Professor Dr. Antonio González Fernández for IE Business School 2023/24 42 Go for the ambivert! Sources: - Jung, C. G. (1921). "Psychological Types" (Collected Works of C.G. Jung, Volume 6). - Eysenck, H. J. (1967). "The Biological Basis of Personality." Springﬁeld, IL: Thomas. - Goleman, D. (2007). Emotional Intelligence (10th ed.). Bantam Books. - Grant, A. M. (2013). "Rethinking the Extraverted Sales Ideal: The Ambivert Advantage." Psychological Science, 24(6), 1024–1030. © Professor Dr. Antonio González Fernández for IE Business School 2023/24 43 Selling and leadership styles © Professor Dr. Antonio González Fernández for IE Business School 2023/24 44 Sales Myth #3 Buyers use logic in their decision making process Is this wine expensive? © Professor Dr. Antonio González Fernández for IE Business School 2023/24 46 780 € 1.220 € 1.795 € Relativity applies to selling also Decoy effect Ariely, Dan. (2010). Predictably irrational : the hidden forces that shape our decisions. New York :Harper Perennial, Sales Reality #3 Buyers are biased because they purchase by comparison Sales Myth #4 Salespeople create needs Common believe: “sales reps push people to buy things that they don’t need” Link to source © Professor Dr. Antonio González Fernández for IE Business School 2023/24 53 © Professor Dr. Antonio González Fernández for IE Business School 2023/24 54 Needs are infinite or tend to infinite, thus they cannot be created © Professor Dr. Antonio González Fernández for IE Business School 2023/24 55 Needs cannot be created Salespeople can create urgency by highlighting the benefits © Professor Dr. Antonio González Fernández for IE Business School 2023/24 56 Sales Reality #4 Salespeople identify and solve problems! Sales Myth #5 Emotions are irrelevant at B2B purchasing processes A study on judges found When judges felt positive emotional state they granted parole 65% of the time Danziger, S., Levav, J., & Avnaim-Pesso, L. (2011). Extraneous factors in judicial decisions. Proceedings of the National Academy of Sciences of the United States of America, 108(17), 6889-92. If judicial rulings are not isolated from the sway of emotions, neither are buying decisions Conger, Jay Alden. (2008) The necessary art of persuasion /Boston, Mass. : Harvard Business Press Sales Reality #5 Buyers are not cool computing machines (yet) but emotional creatures! The art and science of selling That’s why KAM, Sales VP and other top executives are excellent at customer bonding! © Professor Dr. Antonio González Fernández for IE Business School 2023/24 64 In a nutshell 1. Lack of knowledge has enable several myths and wrong beliefs 2. Through research we have discovered that selling is becoming more a science everyday and the human touch becomes differential to win the sale 3. We can learn the fundamentals of selling easily In our 5 sessions course we are going to: ❏ Gain the fundamental skills to address and/or support business development in global corporations and fundamentals of business development and its importance in driving growth ❏ Expose the basic psychology behind decision-making within sales management ❏ Explore effective strategies for building business relationships ❏ Gain insights into different sales methodologies and approaches for effective selling ❏ Understand the impact of customer journey on sales ❏ Delve into technology for sales optimization and get exposed to the main sales analytics and KPIs © Professor Dr. Antonio González Fernández for IE Business School 2023/24 66 In the business area, all members of the organization are selling or supporting the selling activities! © Professor Dr. Antonio González Fernández for IE Business School 2023/24 67 Understanding the contribution of our position to the sales strategy and team selling © Professor Dr. Antonio González Fernández for IE Business School 2023/24 68 Understanding the contribution of our position to the sales strategy and team selling © Professor Dr. Antonio González Fernández for IE Business School 2023/24 69 Sales by market & customer type © Professor Dr. Antonio González Fernández for IE Business School 2023/24 70 Segmenting SALES by Market type B2C Business to Consumer B2G Business to Business Business to Government B2B © Professor Dr. Antonio González Fernández for IE Business School 2023/24 71 Segmenting SALES by Market type Why is this relevant? © Professor Dr. Antonio González Fernández for IE Business School 2023/24 72 Segmenting SALES by Market type Brand awareness Information gathering Decision-making unit Budget and access to credit Needs and wants Timing Authority Procurement Sales cycle Funneling Bargaining power Negotiation After-sales support (...) ≉ different © Professor Dr. Antonio González Fernández for IE Business School 2023/24 73 Segmenting SALES by Market type Business to Consumer (B2C) Its differential characteristic is that clients are purchasing goods and services for their own use Purchasing and decision making processes are driven by personal goals and needs © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Segmenting SALES by Market type Business to Consumer (B2C) B2C is segmented in three subgroups considering the type of product and consumer purchase: 1. Fast moving consumer goods (FMCG): products involve relative low expenditures and are bought frequently because they are not durable [grocery, cosmetics, etc]. Purchasing decision involves little time and they are middle-low involvement goods © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Segmenting SALES by Market type Business to Consumer (B2C) 2. Semi-durable consumer goods: this segment includes product bought less frequently than FMCG as clothes, soft furnishing and jewellery. Decision making process tends to involve more than FMCG © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Photo by Paciﬁc Oﬃce Interiors Segmenting SALES by Market type Photo by Viktor Theo Business to Consumer (B2C) 3. Durable consumer goods: less frequent purchases involving considerable money allocation and longer decision making process [cars, computers, houses, etc] © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Segmenting SALES by Market type Business to Business (B2B) these markets are deﬁned by: 1. Larger buying groups compared to B2C 2. Different roles in buying center group 3. Involve longer sales cycles and complex selling 4. Signiﬁcant budget allocation © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Segmenting SALES by Market type Photo by Neekster Man on Unsplash Business to Business (B2B) these markets are deﬁned by (II): 5. Purchaser are professional (and trained buyers) 6. Buyers have higher purchasing power and are able to negotiate on price 7. Customers have not only personal involvements but also organisational goals to achieve 8. Customers reseller the product or use it as an input in their manufacturing process and operations © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Segmenting SALES by Market type Photo by Watts Rooﬁng Supplies on Unsplash Business to Business (B2B) markets are segmented in many categories that can be grouped in the following: 1. Supplies and consumables: commodities, raw materials and semi-manufactured goods © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Segmenting SALES by Market type 2. Capital equipment: machinery, warehouses, plants, trucks, etc © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Segmenting SALES by Market type 3. Business services: engineering, advisory, technical consultancy, etc. © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Segmenting SALES by Market type Critical role of analytics, creativity, after-sales, customer experience, operations, … when winning and losing accounts! © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Segmenting SALES by Market type Business to Government (B2G) are markets where companies sell to public institutions, and transactions where businesses provide products, services, or solutions to government agencies at the local, state, or federal levels Photo by SpaceX on Unsplash © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Segmenting SALES by Market type Business to Government (B2G) we highlight some particular characteristics: + Even More Complex Procurement Processes: often involve intricate bidding and procurement procedures, which may include RFPs (Requests for Proposals) and compliance with various regulations. + Longer Sales Cycles: Due to the bureaucratic nature of government agencies, the sales cycle can be prolonged. + High-Value Contracts: Contracts can be large and lucrative, often running for extended periods. + Regulatory Compliance: Strict compliance with laws and regulations is mandatory, including transparent accounting and often extensive documentation. + Political Sensitivity: Political considerations can play a role in sales decisions. © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Segmenting SALES by Market type Business to Government (B2G) differences from B2C and B2B: - Audience: B2G targets government agencies, while B2C focuses on individual consumers and B2B targets other businesses. - Regulations: B2G usually involves stricter regulatory compliance compared to B2B and especially B2C. - Volume and Scale: B2G contracts can be very large but are generally fewer in number compared to B2C. B2B can vary widely in this regard. - Relationship Building: takes on a different dimension in B2G due to the involvement of public funds and political considerations. © Professor Dr. Antonio González Fernández for IE Business School 2023/24 How do we adapt our company to the particular needs of our customers and the dynamics of these 3 markets? © Professor Dr. Antonio González Fernández for IE Business School 2023/24 87 With Sales Funnel & Sales Organization Design © Professor Dr. Antonio González Fernández for IE Business School 2023/24 88 Sales Funnel © Professor Dr. Antonio González Fernández for IE Business School 2023/24 89 Sales Funnel types (and uses) What is funneling or sales/marketing funnel? The term "funneling" is a model that represents the stages of the customer's journey and the lead generation strategy designed by the ﬁrm from initial awareness to the ﬁnal action, a purchase. This funnel metaphor illustrates the decrease in the number of potential customers as they move closer to making a decision. © Professor Dr. Antonio González Fernández for IE Business School 2023/24 90 Sales Funnel types (and uses) Sales funnel and its metrics: 1. Conversion Rate: Measures how effectively leads convert to the next stage of the funnel. 2. Customer Acquisition Cost (CAC): The cost incurred to acquire a customer. 3. Customer Lifetime Value (CLV): The total value a customer is expected to bring over the entire relationship. 4. ROI: Return on investment measures the effectiveness of the funneling process in terms of revenue generated versus costs incurred. © Professor Dr. Antonio González Fernández for IE Business School 2023/24 91 Sales Funnel types (and uses) Differences in the Sales funnel by market 1. Complexity: B2B and B2G funnels are often more complex than B2C, involving multiple stakeholders and longer sales cycles. 2. Sales Techniques: B2C might focus more on emotional triggers, while B2B and B2G often involve rational, value-based selling. 3. Regulatory Concerns: B2G funnels have to consider additional layers of compliance and regulations. © Professor Dr. Antonio González Fernández for IE Business School 2023/24 92 Sales Funnel types (and uses) Sales and Marketing Funnel(s) → potentially risky because split accountability when we miss quotas, sales and marketing blame each other Evolution © Professor Dr. Antonio González Fernández for IE Business School 2023/24 93 Sales Funnel types (and uses) AIDA Model→ B2G | B2B | B2C durable goods https://youtu.be/Nr3ENE8uqr4?si=MDrLbXTAErtvmR5R&t=18 © Professor Dr. Antonio González Fernández for IE Business School 2023/24 94 Sales Funnel types (and uses) Flywheel Sales Funnel → B2C FMCG, repetitive purchases, and e-commerce Source: Halligan, 2018 © Professor Dr. Antonio González Fernández for IE Business School 2023/24 95 Sales Funnel types (and uses) TOFU MOFU BOFU Sales Funnel → a transversal model to organize your lead generation strategy analyzing conversion rates by stage, particularly useful in B2G © Professor Dr. Antonio González Fernández for IE Business School 2023/24 96 Sales Funnel types (and uses) TOFU MOFU BOFU Sales Funnel → a transversal model to organize your lead generation strategy analyzing conversion rates by stage, particularly useful in market with long sales cycles (e.g. B2B and B2G) © Professor Dr. Antonio González Fernández for IE Business School 2023/24 97 Sales Funnel types (and uses) Matching funneling and sales cycle Visitors Leads The Sales Cycle is the “customer journey” across the funnel stages measured in units of time (minutes, days, weeks, months … regarding the business) that starts by moving to stranger to visitors and end by purchasing the brand offering Prospects Filling the “pipeline” with prospects for our SALES QUOTA Opportunities (B2B) Jan | Feb | Mar | Apr | May | Jun | ... Customers Sales precipitation: Closing the sale or “the moment when it converts, going from prospects to customer” © Professor Dr. Antonio González Fernández for IE Business School 2023/24 98 How do we organize our resources around the stages of the funnel? © Professor Dr. Antonio González Fernández for IE Business School 2023/24 99 Sales Organization Design © Professor Dr. Antonio González Fernández for IE Business School 2023/24 100 Sales Organization Structures & Design 1.Territory or geography-based sales force→ “generalists”: ● Sales reps sell all products in a given area ● Avoids frictions Pros Cons ● Easy to design ● Minimizes duplication of effort ● Works best when product line is simple ● Ensures speciﬁc salesperson assigned for each customer ● Can be ineﬃcient sometimes ● Sales calls more eﬃciently scheduled ● Risk of “poor areas” ● Territory can be divided or combined to respond to market conditions ● Bigger regions for sales rep with lower industrial density ● More cross-selling opportunities © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Sales Organization Structures & Design TCE: Territory Commercial Sales Executive © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Sales Organization Structures & Design 2.Product category or service-based sales force→ “specialists”: ● Sales reps have a deep understanding of product portfolio ● Able to solve technical questions Pros Cons ● High customer satisfaction levels ● Less option for cross-selling ● Eﬃcient sales calls ● More human resources (FTE) required ● Allows company to offer specialized training and develops individualized ● High training costs sales approaches and applications by industry ● Higher selling expenses © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Sales Organization Structures & Design © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Sales Organization Structures & Design 3.Market-based sales force→ “industry experts”: ● Sales reps are specialist on a given industry or market ● Manage all the portfolio offer for a given “customer cluster” Pros ● Offers are tailor-made for a given industry or market (product + services) ● Boost customer satisfaction ● Sales calls more eﬃciently scheduled ● Support price skimming in mature markets ● Quintessence of differentiation ● Markets could be: elevators, conveyors, cranes ... Cons ● None or very low cross-selling ● Frictions between team to “tag” a customer ● Customer may ﬁt more than one industry: no speciﬁc salesperson assigned for each customer ● Customer confusion: who’s my contact? ● Many sales reps visiting the same area ● Sales expenses skyrocketed © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Sales Organization Structures & Design Agencies and ﬁrms acquired by WPP with market focus (e.g. creativity, DMP, etc.) © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Sales Organization Structures & Design 4. Inside sales force→ “remote salespeople”: ● Sales reps are addressing lead generation remotely via email, phone, social media, online meeting ● Very cost effective for large markets with small customer accounts (insurance, telecom, SME’s, …) © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Sales Organization Structures & Design © Professor Dr. Antonio González Fernández for IE Business School 2023/24 108 Sales Organization Structures & Design 5. Hybrid sales force→ combined salesforce by account segmentation ● Sales reps are addressing lead generation remotely via email, phone, social media, online meeting ● Very cost effective for large markets with small customer accounts (insurance, telecom, SME’s, …) ● Mixtures make sense to design most eﬃcient sales organization, bringing in inside sales depts to provide support by ABC account segmentation, often beyond one geographical market (e.g. Global Account Managers) ● Consider forms like: commissioners, distributors, telesales, resellers… © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Sales Organization Structures & Design © Professor Dr. Antonio González Fernández for IE Business School 2023/24 What are we selling? Vitamins or Painkillers? © Professor Dr. Antonio González Fernández for IE Business School 2023/24 111 Why is this question important? Frequent question in venture capital goes like this; “Are you selling a vitamin or a painkiller?” Venture capital loves to invest in painkillers because presumably people pay more and move faster for urgent needs (pain) rather than longer-term beneﬁts (vitamins). © Professor Dr. Antonio González Fernández for IE Business School 2023/24 112 Vitamins or The ‘Nice-to-have” Vitamins: “Enhancing Life, One Pill at a Time” Vitamins or The 'Nice-to-Have' Products - Products or services that are beneﬁcial but not urgently needed. - Consumer Behavior: Typically require more marketing and persuasion. - Longer sales cycles or lower conversion rates - Examples: Supplements, gym memberships, luxury goods. © Professor Dr. Antonio González Fernández for IE Business School 2023/24 113 Painkillers - The 'Must-Have' Product Painkillers - The 'Must-Have' Products solving immediate problems - Products or services that solve an urgent problem or fulﬁll an immediate need or they are critical to perform operations - Consumer Behavior: Usually have shorter sales cycles and higher conversion rates. - Examples: Medicines, plumbing services, emergency repairs, electricity, mobile network © Professor Dr. Antonio González Fernández for IE Business School 2023/24 114 Sales Playbook “Are you selling a vitamin or a painkiller?” Painkillers vs. vitamins is a KEY question because according to that we must adapt: - Inbound marketing Funneling Sales organization Channel partners Sales playbook and Personal Selling Process © Professor Dr. Antonio González Fernández for IE Business School 2023/24 115 Sales Playbook Sales Playbook is a structured document or set of guidelines that outlines the sales process followed by a company. It serves as a reference tool for sales representatives and provides a standardized framework to ensure consistency and effectiveness in sales activities. The playbook is particularly useful for onboarding new sales staff, as it encapsulates the company's collective wisdom and best practices in sales. © Professor Dr. Antonio González Fernández for IE Business School 2023/24 116 And Psychology of new product adoption © Professor Dr. Antonio González Fernández for IE Business School 2023/24 117 And Psychology of new product adoption © Professor Dr. Antonio González Fernández for IE Business School 2023/24 118 And Psychology of new product adoption © Professor Dr. Antonio González Fernández for IE Business School 2023/24 119 Building trust & rapport with customers while overcoming resistance © Professor Dr. Antonio González Fernández for IE Business School 2023/24 120 Building trust & rapport with clients The importance of trust and rapport in sales management: ❏ Customer Loyalty: Explain that trust and rapport are the foundations of customer loyalty, which is vital for long-term business success. ❏ Higher Conversion Rates: Point out that customers are more likely to make a purchase from a brand or salesperson they trust. ❏ Reduced Resistance: Emphasize that a strong trust relationship can lower customer resistance and make the sales process smoother. ❏ Positive Word-of-Mouth: Mention that trust and rapport lead to satisﬁed customers, who are more likely to recommend your product or service to others. © Professor Dr. Antonio González Fernández for IE Business School 2023/24 121 Building trust & rapport with clients © Professor Dr. Antonio González Fernández for IE Business School 2023/24 122 Building trust & rapport with clients How to Build Trust and Rapport: ★ Active Listening: Describe how giving customers your full attention and understanding their needs can create a trustful atmosphere. ○ Example: Use open-ended questions to encourage customers to express themselves. ★ Showing Empathy: Explain that understanding and sharing the feelings of your customers make them feel valued and respected. ○ Example: Acknowledge customer concerns and offer solutions that align with their needs. ★ Personalizing Interactions: Discuss the importance of tailoring your sales approach to the individual customer to make them feel unique and important. ○ Example: Use the customer's name and refer to any past interactions or purchases to show that you remember and value them. © Professor Dr. Antonio González Fernández for IE Business School 2023/24 123 Building trust & rapport with clients © Professor Dr. Antonio González Fernández for IE Business School 2023/24 124 Proven strategies for sales growth © Professor Dr. Antonio González Fernández for IE Business School 2023/24 125 Proven strategies for sales growth Strategy 1: Finding growth in "adjacent spaces" through market expansion or product diversiﬁcation. © Professor Dr. Antonio González Fernández for IE Business School 2023/24 126 Proven strategies for sales growth Strategy 1: Finding growth in "adjacent spaces" through market expansion or product diversiﬁcation. © Professor Dr. Antonio González Fernández for IE Business School 2023/24 127 Proven strategies for sales growth Strategy 2: Investing in frontline sales managers to drive performance→ Training your teams to have the last skills to deliver differentiated value and going beyond customers’ expectations ● ● ● ● ● ● Customer Experience Latest technologies Market trends Soft skills Team building Etc. © Professor Dr. Antonio González Fernández for IE Business School 2023/24 128 Proven strategies for sales growth Strategy 3: Leveraging Digital Channels to Interact with Customers and Gather Insights + Multi-Channel Approach: Utilize various digital channels like social media, email, and online forums to interact with potential and existing customers. + Customer Feedback: Digital platforms provide an excellent opportunity for collecting customer feedback, which can be invaluable for product development and service optimization. + Data Analytics: Implement advanced analytics tools to analyze customer behavior, preferences, and interaction history. This data can be used for targeted marketing and personalized customer experiences. + Automation: Use digital tools for automating repetitive tasks like sending follow-up emails or alerts, allowing the sales team to focus more on complex tasks that require human judgment. © Professor Dr. Antonio González Fernández for IE Business School 2023/24 129 Proven strategies for sales growth Strategy 3: Leveraging Digital Channels to Interact with Customers and Gather Insights © Professor Dr. Antonio González Fernández for IE Business School 2023/24 130 Proven strategies for sales growth Strategy 4: Aligning Sales and Marketing for a Uniﬁed Go-to-Market Strategy ➢ Collaborative Planning: Ensure that the sales and marketing teams are aligned from the get-go, with clearly deﬁned roles and responsibilities. ➢ Integrated Campaigns: Coordinate marketing campaigns with sales initiatives. For example, a marketing campaign should be followed up with a sales strategy to convert the leads generated. ➢ Shared Metrics and KPIs: Both departments should focus on the same metrics, such as customer acquisition cost (CAC), customer lifetime value (CLV), and conversion rates, to ensure uniﬁed objectives. ➢ Regular Communication: Maintain open lines of communication between the two departments to share insights, updates, and feedback. This could be in the form of regular meetings, shared dashboards, or internal newsletters. © Professor Dr. Antonio González Fernández for IE Business School 2023/24 131 Proven strategies for sales growth Strategy 4: Aligning Sales and Marketing for a Uniﬁed Go-to-Market Strategy © Professor Dr. Antonio González Fernández for IE Business School 2023/24 132 Sales Ethics © Professor Dr. Antonio González Fernández for IE Business School 2023/24 133 Sales Ethics Kant argued that moral rules do not have exceptions. Moral rules help us to evaluate laws, codes, and social practices. Some commonly held rules include: ● Respect persons and their rights, and respect property (however deﬁned) ● Mutual aid for ourselves, our communities, nation and the world ● Avoid harming others ● Keep promises ● Honor contracts © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Sales Ethics Sales representatives are moral people that: 1. Avoid brivering and another similar out-of-the-line actions 2. We DON’T take advantages of the weakness of our customers 3. Don’t sell products or services that customers don’t need 4. We ALWAYS PLAY BY THE RULES 5. We NEVER manipulate to create an advantage © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Sales Ethics 1’ Sales Ethics checklist→ questions to ask ourselves when selling: 1. Does this action set a positive or negative precedent? 2. Is it an action that is acceptable to other reasonable persons? 3. Is it applicable to other similar situations? 4. Does it respect human dignity? 5. Would my family or myself will be ashamed if this action is published in cover page of WSJ? © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Sales Ethics This Ethics note is an adaptation for marketers and sales managers from the following authors: - Gert, Bernard (1998). Morality: Its Nature and Justiﬁcation. Oxford University Press. - Harris, J., Sapienza, H.J., & Bowi'e, N.E. (2009). Ethics and Entrepreneurship. - Rawls, John, 1921-2002. A Theory of Justice. Cambridge, Mass. :Belknap Press of Harvard University Press, 1971 - Smith, Adam (1978). V: Lectures on Jurisprudence: The Glasgow Edition of the Works and Correspondence of Adam Smith. Oxford University Press UK. - Van Willigenburg, T. Ethical Theory and Moral Practice (1998) 1: 129. https://doi.org/10.1023/A:1009984923800 © Professor Dr. Antonio González Fernández for IE Business School 2023/24 Business Development & Sales What is the difference between BD and Sales Management? © Professor Dr. Antonio González Fernández for IE Business School 2023/24 138 Business Development & Sales Business Development: - Focus on new accounts, bringing additional clients - “Hunting” new business opportunities - Market share drives sales activity - E.g. startups, markets without a clear leader, and industries very dependent on volume Sales Management: - Focus on ﬁdelization, cross and up-selling - “Farming” the current customer portfolio - Proﬁtability drives sales activity - E.g. mature markets or industries with oligopolistic competition © Professor Dr. Antonio González Fernández for IE Business School 2023/24 139 Thanks for your attention! Follow me for more marketing and business insights @prodamarketing © Professor Dr. Antonio González Fernández for IE Business School 2023/24 140

BD&S S1-2 Student Version PDF

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