Every Company Has Two Sales Processes

Consultants love getting their hands on a client's sales process. It's so easy to move the "needles" of sales effectiveness if you can help an entire sales team bucket their opportunities into a process that helps them clearly see the "next step" for each deal. Whether the credit goes to the consultant, or the Hawthorne Effect, or a bit to both, is unclear; but either way, the exercise is always fruitful.

My workshops with clients over years have revealed this fault line in the discussion of sales process. My experience shows me there are two sales processes at work in every company.

The first sales process is the most obvious one. It's what we normally think of in terms of sales process: the milestones for sales opportunities in the pipeline. I'll refer to this as the transactional sales process. We truly need this sales process in order to manage individual deals - to make sure they're progressing.

The second sales process is much more relational, and acknowledges that our best efforts are spent acquiring new business partners, not a single new order... in developing a book of business that will allow us to harvest many orders over many "seasons". This is what I call the relational development sales process. We need this sales process to develop our book of business - to "sell" ourselves on a long term partnership with a client.

Here's an example of the relationship development sales process:

Suspect
Prospect
Consumer
Advocate
Evangelist

As with the transactional sales process, training can (and should) be developed to further define each of these milestones, and to create appropriate action plans or plays for your playbook to advance a potential client along this process.

And for the record, here are several samples of the transactional sales process:

Prospect
Research
Presentation
Demonstration
Proposal

Engage
Investigate
Present
Demonstrate
Propose.
Negotiate
Answer objections
Close

Prospect
Qualified
Discovery
Development
Proposal
Close

Scoping
Build Business Case
Development
Validation
Launch

Engage
Qualify
Assess
Propose
Close
SALE!

Suspect
Prospect
Discovery
Proposal
Negotiation
Signatures
Transaction

Lead
Awareness
Interest
Consideration
Intent
Purchase

Identified
Contacted
Qualified
Presented
Proposed
Closed

Awareness
Familiarity
Opinion
Consideration
Make-model intention
Shopping
Purchase

Leader's Vision vs. Leader's Engagement

I recently completed a CRM implementation for a large financial services company.

In spite of all the time and money invested and the huge untapped potential in their current book of business, I'd give them a 50/50 chance at success with their CRM initiatives.

Their core problem is huge - and simple: their business leaders have cast a grand vision for CRM, but remain totally disengaged from the actual change process. All efforts to engage their support, participation, and collaboration have failed.

Set aside all the pop/fad leadership pablum, and we are left with this fulcrum, on which all organizational change rests: how and where leaders engage in the change process itself.

Vision casting is overrated; leaders who empower and engage in the actual change process get the best results.

Sales & Marketing Maturity Model Diagram

More details on this new concept (see previous post...):

Sales Maturity Model

Looking for feedback on a new concept I'm mulling over... a Sales Maturity Model that would bridge the gap between sales tactics and sales strategy to help companies effect profitable behavior changes in sales and marketing.

Here's the model:

Windfall -> Hunter/Gatherer -> Farmer/Rancher

The idea is that most average sales folks are actually just reactive, especially in a growth market or if marketing is strong. They answer the phone and take orders - very nicely. In this Sales Maturity Model, I'm thinking we could put the right tools in front of folks, along with some pre-defined Profitable Routines that are specific to their company, products, and market, and move them to proactivity, then to real productivity (farmer/rancher), where the majority of their business is either repeat, or based on earned (not borrowed) credibility in the marketplace.

Thoughts?

Sales pre-qual questions for CRM

I've often thought that any CRM consultant worth their salt should be able to rough-in a CRM solution after just one hour sitting next to a CEO on a plane. In that one hour, the consultant's natural business curiosity would guide them to ask pointed questions, probe for business needs and points of pain, and begin inferring business processes and functional requirements and even technical designs. Business is business - it's not rocket surgery. A basic understanding of any company, their products, and the market they serve, is an easy education for an experienced CRM evangelist.


If only our sales teams could leverage this expertise - we'd sell more professional services for CRM projects than we could deliver. Our estimates would be more accurate. Our clients would feel more confident in our understanding of their needs. And our risks in delivering these projects would be much lower, because we could envision, plan, and execute every project with a more detailed understanding.


I've listed a few ideas below... questions we might ask to understand our clients better before we fully engage them in selling our consulting services. Please, add to this list - and let me know what you think.

"What got us here?"

This simple question often cuts through weeks or months of discovery to help us understand why the client is willing to invest in CRM. When I know their story... how they got to the point that we are on the phone discussing a potential CRM project... where they came from, where they are today, and where they're going, my clients' business goals and objectives are exposed, and I begin the soft-skills process of collecting the "organic" cultural realities of their daily operations, alongside their concrete objective realities of systems needs.

"Who sells what to whom?"

This is the first question I'd like answered when approaching a commercial client.

"Who" helps me understand the scope of users and their roles (e.g., what they CARE about!), but also the company itself, organizational structure, size, etc. If the "who" is a bootstrapping business startup, my approach would be very different than if the "who" is a Fortune 100 public company. If the "who" is a sales department, my approach and follow on questions would be different than for a field service department.

"Sells What" includes products and services sold and delivered. Again, if the "what" is a listing on an auction website, my approach will be different than if the "what" is a million dollar electron microscope. More than anything else, "what" helps me infer their sales cycle and process.

"To Whom" helps me understand the market my client serves; B2B, B2C, etc. all dictate a unique approach. "Whom" helps me understand how to best help my client build relationships with their clients.

By the way - this format is an extremely efficient way to onboard new members of the CRM team, or to quickly bring a SME up to speed on the sales pursuit with a given client before jumping on a conference call. It touches the basics of the client's business environment.

Of course, I'd modify this tool slightly for non-profits ("Who helps whom do what?") or government, etc.: "Who serves which citizens by providing which services?")

The Basics

Stating the obvious (a consultant's fault/skill, to be sure)... It really helps to know up front the client's budget, timeframe, and goals. I always ask them outright; if they're in the game, they'll be proud to tell you so.

Client Maturity

Another line of questioning has to do with a client's prior experiences deploying enterprise software. Have they tried CRM before and failed? Do their users have any experience with collaborative workspaces (CRM, SharePoint, etc.) or relational databases, as opposed to information silo's (MS Excel) and flat file databases? Do they tend to a la carte their professional services vendors? Are they just looking for staff augmentation? How open will they be to a real consultant's advice? The underlying theme here is user adoption; how soon, and how well, will they be able to truly embrace the changes involved in an effective CRM initiative?


Scope

Again, stating the obvious, but having a clear understanding of the scope of the CRM project is the only way to develop an accurate estimate, and to identify and mitigate project risks. Be sure to consider:

• Existing systems ("What are you using today?" paper forms/sticky notes/business cards, Excel spreadsheets, Microsoft Outlook, custom apps or contact management silo's... ACT!, Goldmine, etc., legacy systems, back office accounting/ERP systems, etc.)
• Functional/process scope
• User/department scope
• Data scope (integrations/migrations)
• Implementation effort scope (shared vs. entire delivery effort, complexity)
• Anything we've never done before, or things we've tried before and know are difficult

Ambiguity is expensive.

Technology Match

Ask about their IT infrastructure - the "stack" on which their key business applications run. If you are implementing Microsoft Dynamics CRM, for instance, clients who are already running Active Directory, Microsoft SQL Server, Microsoft .NET as development platform/skillset, Microsoft Exchange, Microsoft SharePoint, etc. will be easier implementations with lower TCO.

Procurement Processes

It's useful to understand each client's unique procurement processes as early as possible in order to partner effectively with them throughout the sales process, and win their confidence as a trusted advisor for their CRM implementation. Do they always, or never, pay for travel expenses, travel time, project contingencies, fixed fee vs. time and materials contracts, etc. (Here's a tip: insist that their business representatives stay engaged in each conversation you have with their procurement representatives. This is in the client's best interest, but it's often ignored, and any such gap will only dilute the value you can provide.)

SDLC Constraints

Will you be constrained to use the client's Software Development Life Cycle or project methodology, or will they allow you to manage the project according to your strengths and proven methodologies? Who will ensure compliance with organizational and/or government regulatory or procedural requirements?

Follow On Work

Consulting is NOT a marketing tool! (Repeat that three times for effect...) A billable hour is intended to deliver value to my client, and profit to my company. It is absolutely our goal to engage clients who will trust us with a continuous stream of important projects, while they focus on realizing business value and fully embracing a culture of change as they adopt CRM. How open is your prospect to this conversation? Are they overpromising the possibility of follow on work "if" you will give them a break on the first project?

Conclusion
The purpose of pre-qualification in sales is to allow you to prioritize which opportunities are worth your investments of time and effort as you build relationships with new clients. This list isn't a set of rules, but discussion points. The only hard and fast rule of business is: don't lose money.

The #1 Risk for CRM Projects

Depending on which "expert" you talk to (and the alignment of the planets, it seems), between 40% and 80% of all CRM projects fail within one year.

Why the broad range? Methods of calculation, in part. Some measure failure to achieve ROI, while others measure actual abandon rates - projects stopped before they went into production.

Despite the debate about the rate, all the experts agree on the primary reason a CRM project might fail: lack of user adoption.

User adoption is the Holy Grail for a CRM project. Even with today's broad range of product options (hosted vs. on premise, etc.), widespread adoption remains the single most deterministic factor of failure vs. success in CRM implementations.

First, I'd like to propose a clear definition of user adoption (feel free to comment). Then, I'd like to suggest some ideas for increasing user adoption throughout the life of a CRM implementation.

What is User Adoption?

The primary goal of the User Adoption effort is to allow staff at all levels to take ownership of the CRM solution. This effort requires ongoing care and feeding over the life of the project; it is not a phase, it is a dynamic that requires intention and attention. It begins deliberately, by defining user adoption audiences, then articulating the steps and efforts required for each audience to engage and take responsibility for the solution and it's success, followed by identifying risks to user adoption, then presenting the structure of a plan to be developed collaboratively to manage user adoption efforts throughout the project.

To put it more succinctly, I think User Adoption can be represented by an onion and a list.  The onion represents the layers of various audiences, in order of importance from center (most) to outer edge (least). The list is a series of actions that will engage each audience in sequence, throughout the life of the project, to keep them informed, engaged, and involved in decisionmaking as appropriate to their level of influence.

What Each Audience Wants

To address each audience effectively, it's important to know how each audience defines CRM success. In my mind, there are at least four types of stakeholders in any CRM project:

Managers beg us, "Help me SEE!" They need visibility into what is actually happening in their jurisdictions, whether it's a sales force or a customer help desk. They need to measure performance, predict trends, and manage their teams effectively. Often, they either lack or distrust the data currently available. When I talk to management about CRM, I talk about visibility and "knowing" what's going on.

End users beg us, "Help me SELL!" They need tools that don't burden them, but help them meet or exceed their boss's expectations. Sales people need more face time, not more screen time. When I talk to salespeople about CRM, I talk about easy of use and simplicity and how every feature is a benefit to them - how it helps them make more money. In a customer support or service environment, I talk about efficiencies and re-usable data and how they'll be able to do the same amount of work with less double data entry or fewer inefficient processes.

IT staff beg us, "I want a flexible BUSINESS APPLICATION PLATFORM!" Don't make me re-train my staff to support this new application. Make it easily extensible and show me how it fits into our current technology "stack", leveraging what we already have and giving us tools to respond more quickly to organizational needs and changes. Don't make it proprietary; set us up to help ourselves.

Your customers, the final stakeholder, often completely ignored during the implementation... beg us, "REMEMBER me!" Don't make me tell my story twice! Care about what I care about. Take responsibility for my issues, and get me real answers. And if I call back next week, please remember (regardless of who I talked to) what you told me before so I don't have to explain it again. Make it as easy and positive an experience as possible to do business with you - so I'll look forward to doing it again. I want to be your champion... please give me the excuse to do so.

Steps to User Adoption

Each step is performed in order, by audience, in sequence. In other words, I'll start Step 1 with Audience 1, then move Step 1 to Audience 2 while I'm moving to Step 2 with Audience 1, and so on...

(Please note that these steps assume that you already have an accurate analysis of problems and solutions - you're making the right promises, to the right people, and you're sure you can keep those promises.)

1. Communicate

a. What’s coming?

b. Why?

c. Feedback loop

d. How to…

2. Demonstrate the solution

a. Road show #1

b. Lunch & learns

3. Generate buzz

a. The Three “Big” Things (What will make users say “Wow!”?)

b. YouTube videos

4. Get user’s input (make them feel heard)

5. Triage and rework (prove they were heard)

6. Training

a. Computer Based Training Intro – Terms, concepts, and processes

b. Road show #2 

c. Formal in-person training (4 to 6 contact hours per user)

d. Informal follow up training (Power Users/ Process Sherpa's/walk-around support)

e. Focused training for specific/struggling users

7. Follow up

8. Competitions among users… who is using/learning the systems the best, reward programs

9. Adoption Consulting

Typical Risks/Challenges to User Adoption

• Apathy

• New/technical terminology

• Geography (distributed teams/offices)

• New/different processes

• New software (deer-in-the-headlights)

• Relational database vs. flat file database mindshifts

• Collaborative workspace vs. my-data-my-silo mindshifts

• Weaning users off spreadsheets and printouts

• Naysayers

• Lowest common denominator in skills (user capabilities)

Conclusion

You can build the coolest mousetrap in the world, but unless your cheese is appetizing and the mice get engaged... nobody will care.

Opening Salvo

A few years ago, I thought about writing a book called, "True Confessions of a CRM Consultant."

Obviously, that didn't get very far, or you'd be reading about it on Amazon.

I've been delivering customer relationship management (CRM/xRM) systems since 1997, and have come to the conclusion that the Emperor of Corporate America indeed has no clothes. Oh, the stories we consultants could tell... thank your lucky stars we signed that NDA!

I'd love to tell you in detail about the three key principles that I have found that can absolutely guarantee that your CRM efforts will be successful. Unfortunately, nobody knows what they are. With over a decade in this field, I've not been able to identify a formula for success, and it frustrates me to no end. I'd love to be able to perfectly control my clients, ensuring that they make the right choice at each turn - but that's impossible. Budgets, politics, market realities, and Truth Itself interfere.

Besides, even wisdom turns violent in the hands of a fool. So in the end, it is your character and creativity that will win your clients' trust and support their efforts.

What I hope to offer here are tools that I and other colleagues have found helpful in consulting with clients and helping them to achieve their business goals with CRM (increase sales, improve forecast accuracy, replace all those &*# %$@# spreadsheets with a relational database, reduce duplicate data entry, etc., etc., etc.).

Lastly, I implore you to comment on everything that catches your eye here - especially if you disagree. Take ownership of this material, criticize it, customize it, and make it your own. Contribute to this conversation. I'd love to hear your thoughts.

Do good work.

Christopher Bates
CRM Principal Consultant Ascentium Corporation

P.S. I love Ascentium, but they do not endorse, support, own, control, have influence or claim to the content of this blog.