aQuity

Exploring the Myths & Truths of B2B Engagements

But, how would you know that you are winning? Of course Sales Engagements have become a lot more influenced by the Science of Selling than the Art of Selling since those days.

Scenario:

Your Opportunity has passed Stage 1 of the Qualification Process – Should They Buy? Your response to two simple prompts are all that is necessary to move on to the next Stage.
Stage 2: Can They Buy? This question requires a bit more research and validation. You are beginning to develop a relationship and rapport with the Opportunity and understanding the decision processes of the potential buyer. You are also validating the variables with other members in the Opportunity.

Stage 3: Will They Buy? The Discovery phase in the process and where your differentiators and acumen start to edge out the hopefuls. The chances are that the field is still open, but your professionalism is gaining traction and being noticed by the Power Base in the Opportunity – those that influence and make the the decisions and write the cheques.

Stage 4: Will they Buy from Me?This is the crucial Stage that is determined by many factors and is the crucible used to determine whether the Opportunity should be on the Sales Forecast or not. It also determines whether you have a chance of making a dent in your Sales Quota.

This four Stage process is supported by the relevant searching prompts as described in detail in our ‘B2B or Not to Be…’ eBook. It is also the basis of the aQuityOM and aQuityOM+ apps. Opportunity Management is not typically the domain of most CRM systems.

A case for Opportunity Management

Most CRM systems serve to provide the basics of a Client or Contact Management framework. As such they tend to be of limited value to the individual sales person and the Sales Team. They are often regarded as an unnecessary administrative burden.

Many CRM’s serve as a management policing mechanism and frequently a poor reporting tool. Their input is often manipulated to merely comply with the process. Consequently, the output is flawed and does not reflect reality. They tend to merely record static data and events, but fail to aid the individual’s and the team’s progress, because they don’t focus on what matters most. 

What matters most is a road map and a guide to assist the professional to be reminded of incomplete information and actions – unanswered questions and hidden traps.

A review of the popular CRM’s show that they were initially and primarily designed with a B2C mindset and best serve the needs of the Marketing Departments. Their focus is the volumetric as opposed the quality of individual engagements. These CRM’s typical fail to address the nuances of the B2B environment, those significant high value negotiations and the triggers to eliminate the competition.

Many CRM’s don’t live up to the expectations of their host organisations and consequently fall into disuse or at best merely serve as expensive Contact Management Systems. Typically, management in B2B sales don’t see any improvement in the Sales results and the individual sales people gain very little value from their obligatory administrative input into such systems.

Opportunity Management

There are three primary reasons why Most CRM’s are inappropriate for almost all B2B sales models.

Firstly, almost all CRM’s do not support an Opportunity Management methodology.

Secondly, most CRM’s rely on the antiquated and fallible Sales Funnel technique to evaluate the potential outcome of an individual Opportunity and consequently that of those recorded collectively by the entire Sales team. By design and approach the emphasis is on volumetric forecasting and not on the quality of an individual Opportunity.

Thirdly, CRM’s while supporting a common Opportunity Status classification, they do not have the in-built logic to separate the wheat from the chaff because of one fundamental flaw – they allow guesswork and wishful thinking to be applied by the individual and management.

This invariably results in the deviation from the science required to determine the real situation.

If each individual Opportunity is not measured on its own merits against a common standard and a commonly accepted terminology, it merely accumulates as unreliable data and fallible information.

Opportunity Management is the foundation of reliable forecasting and the guide to promote or exit rapidly from flogging dead horses. It creates credibility throughout an organisation and promotes a commonly understood lexicon of what is real and what needs further work.

4 x 4 Matrix

In any B2B Sales Engagement 4 factors or dimensions need to be considered and cautiously meshed:

• The 4 Stages of the Sales Cycle, briefly described in the scenario above
• The 4 Stages of the Buying Cycle, which follows a similar, but vital pattern:
  1. Should We Buy?
  2. Can We Buy?
  3. Will We Buy?
  4. Who will We Buy from? This should be your prime focus.
• The  4 Parties in the Engagement:
  1. The Client
  2. The Supplier
  3. The Sales person/team
  4. The Champion – The key target.

Opportunity Management 101

The 4 x 4 Matrix may appear to be complex and confusing, but it actually isn’t. It simply forms the backbone of evaluating an Opportunity from a Buyer’s and Seller’s perspective, identifies the key players and the Champions/Detractors and  aids in determining whether the Opportunity warrants effort at all, what effort is required and its resulting Status.

Attempting to mesh the elements of the 4 x 4 Matrix manually or in a spreadsheet is an onerous task. It is also not an exercise that the typical Sales Leader or individual Sales person would tackle easily.

Fortunately, in the 21st century we have access to computing power and algorithms that make the task as easy as pie.

Imagine the scenario whereby an individual Opportunity is recorded, the engagement process commences and through a series of prompts the sales person is guided as to the next steps, advice is provided on the missing elements and the Sales Process is short circuited by applying the Science underlying the cycle of 95% of all B2B engagements.

That in a nutshell describes the complexity of Opportunity Management, but simplified. The OM methodology relies on the knowledge, acumen and observation of the individual sales person. And then therefore collectively for the team. OM serves to guide, promote, report and advise where effort and time is warranted and where not.

OM is an invaluable aid to the endeavours of sales people who strive for a professional approach. It is also a practicable mechanism to enhance sales leadership. It can also be easily implemented in most organisations.

Opportunity Management 201

The guiding prompts in the aQuityOM and aQuityOM+ apps are logically grouped together for each of the Sales Stages. As such they avoid unnecessary effort by only revealing those relevant prompts, based on the responses to prior prompts.

For instance, it would be a total waste of valuable engagement effort and time to explore the Opportunity’s Buying Criteria or Decision Process, before ascertaining whether the funding is available and a budget has been allocated.

There are many benefits that emanate from the appropriate application of the prompts. One example is the avoidance of the common practice of issuing proposals too early in the cycle. The prompts guide the sales person to only submit a proposal when good and ready. Frequently, an Opportunity will request a proposal early in the engagement. This is before the sales person has gleaned the full context of the current situation. Never mind the desired situation. As such it is impossible to determined the key differentiators of a potential proposed solution for a specific situation.

A Cardinal Sin

In OM terms, the request for or the submission of a proposal is not a qualifying criterion. Such requests for a proposal often merely represent proof of research on the part of the Opportunity’s staff or a tyre kicker exercise – all at the expense of the sales peoples’ available selling time. The submission of 1 of 5 competitive ill-prepared proposals of the cut and paste variety is worth diddly squat – even for more commoditised items such as photo copiers and printers.

Premature requests for proposals should be avoided or alternatively substituted with an indicative quotation. This should include the caveat that further discovery is required and that other of the Opportunity’s stakeholders still need to be consulted. The emphasis implied or stated, is that your organisation prides itself on professionalism through a thorough evaluation of the Opportunities stated need.

Opportunity Management 301

One of the fundamentals of OM is based on the Sales Strategy of the sales organisation. As such a well grounded OM methodology also includes the important aspect of eliminating the competition.

The methods and techniques to achieve traction in your favour is described in detail in the ‘B2B or Not to B…’ eBook. These support the Sales professional’s ability to control the Buying Cycle.

Some components towards achieving a commanding position involve:

• Negotiating access across and up the chain of command of the Opportunity.
• Identifying and aligning with the Champion(s) inside the Opportunity.
• Identifying and neutralizing the Detractor(s).
• Identifying and working with the owner or department of the business problem – not the Buying Department.
• Jointly developing the solution.
• Ensuring that the proposal is the obvious solution.

Obviously, the extent and reach of the above facets is dependent on the severity of the business issue. As well as the type of solution envisaged and the value of potential repeat business.

Other considerations include whether the Opportunity is in an existing Client, is a Strategic and/or a Key account.

Each industry has its own pressure points, but the principles don’t change. It is the choice of each Sales Leader whether the Sales Strategy incorporates the science of Opportunity Management. The benefits are obvious as are the improved conversion ratios. Or whether they relegate the efforts of the team down the well trodden path of a meagre <18% success.

Walk the Talk…

aQuityOMPlus is the first CRM platform purpose-built to align B2B sales activity with buyer intent. It uses a proven 4-stage qualification framework, 30 smart diagnostic prompts and algorithmic Opportunity scoring. This drives consistent forecasting, accountability, and revenue confidence.

Additional reading and information is available at https://www.b2b-aquity.com