Implementing Value-Based Selling: A Process-Driven Approach

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guidebook summary

Firm: Energy Company1

Industry: Energy Headquarters: USA

Geographic Footprint: North America Ownership: Public

Revenue (2012): >$25 Billion USD

Implementing Value-Based Selling: A Process-Driven Approach

Problem:

In a highly commoditized, mature market reliant upon long-standing customer relationships characterized by a lowest-cost mindset, Energy Company’s sales team2_{is challenged to provide a differentiated value} proposition.

Solution:

Energy Company’s sales division evaluates its capabilities and processes, ultimately implementing a sales effectiveness program that enables the sales force to deliver a differentiated, value-based offering.

Business Results:

Since implementation, Energy Company’s sales force has increased time spent on selling activities by 25% and exceeded annual sales targets.

Resources Required:

• Support from sales and marketing senior leadership

• One Sales Force Effectiveness Manager from Energy Company working with external and internal consultants to construct the new sales process

• ~ $2.5 million USD over 3 years

Applicability of Best Practice to Executive Functions:

Function Applicability

Sales Leadership Marketing

Best Practice Guidebook

1_{This is a pseudonym for the profiled company.}

2_{The sales effectiveness program and the new sales process were} executed within Energy Company’s U.S.-based business.

COMPANY

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Source: Energy Company; Growth Team Membership™ research.

key takeaway:

Develop required standards for people,

processes, and tools to execute a value-based selling approach

Energy Company sales leadership developed the capabilities necessary to achieve a value-based selling approach

Sales Capability Standards

Sales Force Capabilities Sales Process Systems/Tools Performance Management

• Sales Force Capability—

- Formulate an activity-based job design

- Develop competency requirements (knowledge, skills, and abilities) - Provide training and development

for performance improvement • Structure and Deployment—Evaluate

and adjust sales force size, workforce deployment, and territory alignment to maximize sales potential

• Reward System—Balance intrinsic and extrinsic incentives, while aligning compensation plans with sales and marketing strategy

• Sales Framework—Leverage the integrated processes across Marketing, Sales, and Customer Support

• Sales Process—Understand the customer buying cycle and align with the requisite activities to advance a sale

- Map and standardize key steps in the sales process to drive consistency, efficiency, and effectiveness • Contract Management—Develop

proactive capability to renew and maintain current customers

• Sales Toolkit—Equip the sales force with a suite of tools that allow them to communicate value beyond price • Customer Relationship Management

(CRM)—Enhance the CRM to standardize management of sales process and integrate related customer support activities

• Process Performance Indicators (PPIs) and Key Performance Indicators (KPIs)—

Balance measurement of PPIs and KPIs to drive consistent performance and methods for achieving desired goals

-PPIs—Dictate performance and measure process effectiveness (e.g. sales teams are using the sales toolkit “x” number of times per month)

-KPIs—Quantify the impact of the sales tools (e.g. measure customer satisfaction with the account review process)

defining value-based selling

Value-based selling identifies the holistic value a product or service creates for a customer. It differentiates from traditional sales approaches by addressing three primary customer needs:

• Economic (does it make me money?); • Functional (does it improve my operations?); • Emotional (does it make me feel good?).

Value-based selling fulfills these needs by demonstrating the quantifiable value an offer creates for a customer in terms of time, productivity, cost savings, revenue, and additional margins.

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key takeaway:

Assess current versus desired capabilities to

identify priorities for improving sales effectiveness

Energy Company’s Sales Effectiveness Manager conducts a capability

assessment to compare current and desired states…

Capability Assessment

…allowing Sales leadership to identify and

prioritize the key capabilities for improvement

Capability Priorities

sales effectiveness

manager (sem)

Energy Company created this position to continuously monitor the triad of people, processes, and tools for constant sales force improvement. The SEM reports directly to the Vice President of Sales. This position is equivalent to a Sales Support Manager or Sales Operations Manger in other sales organizations.

Capability Assessment

(Illustrative) Rating Internal Evidence Aspiration Priority

A. People 0 1 2 3 0 1 2 3 L M H A.1 Job design clearly outlines expected activities, accountabilities,

etc. x

Specific job descriptions exist for each sales role and outline specific

activities and responsibilities. x x A.2 Competencies are clearly linked to associated activities as outlined in

job design x

Each job has clearly defined requirements for key technical/

professional competencies. x x

A.3

The sales team provides regular training to support specific skills, knowledge, and behaviors linked to job design

x

The sales team has not had formal training in specialized areas for past

24 months. x x B. Process

B.1

We have a clearly defined sales process that supports our

customers’ buying cycles x

The sales force understands customers’ buying cycles, but no consistent sales process extends across the organization.

x x

B.3

We have a clearly defined account planning process, and account plans are regularly updated and reviewed with key stakeholders from Marketing, Sales, and Customer Support.

x

No formal account planning process exists, but the sales force does maintain account plans for key

customers. x x

C. Systems/ Tools

C.1

We have and actively utilize a sales pipeline to monitor and manage opportunities throughout the sales process

x

Each sales manager independently manages his/her sales pipeline: no single source of data is available to the sales leadership team.

x x

C.3

Sales force has tools to help them create customer proposal and account review materials for customer meetings x

Sales force have no easy way to create consistent sales materials based on customer needs; and they spend many hours preparing materials for customer presentations.

x x

Capability Priorities (Illustrative) Priority

B.1 Energy Company has a clearly defined sales process that supports our _{customers’ buying cycles} 1 C.3 The sales force has tools to help them create customer proposal and _{account review materials for customer meetings} 1 A.2 Competencies are clearly linked to associated activities outlined in job _design 2 A.3 The sales force is provided regular training on specific skills, knowledge, _{and behaviors} 2 C.1 We have and actively utilize a sales pipeline to monitor and manage _{opportunities through the sales process} 2 C.2 The sales force has tools to prepare them for sales calls and customer _meetings 2

Participants were also asked to provide evidence to support their ratings.

Energy Company’s Sales Effectiveness Manager asks senior and mid-level managers, plus front-line practitioners, to rate Sales’ current performance relative to the benchmarked standard.

The organizational aspiration (i.e., desired level of aptitude) for each benchmark is compared with the current state to prioritize improvement opportunities.

High- and medium-priority capabilities are then ranked based upon their expected impact to the organization and used to develop project plans for increasing sales effectiveness.

Sales Force Capabilities

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Capability Priorities (Illustrative) Staging B.1 Energy Company has a clearly defined sales process that supports our customers’ buying cycle 1 C.3 Sales force have tools to help them create customer proposal and account review materials for use in customer meetings 1 A.2 Competencies are clearly linked to associated activities as outlined in job design 2 A.3 The sales force is provided regular training to support specific skills, knowledge and behaviors linked to job design 2 C.1 We have and actively utilize a sales pipeline to monitor and manage opportunities through the sales process 2 C.2 Sales force has tools to help prepare them for sales calls and customer meetings 2 D.1Energy Company has identified and measures process performance indicators which reveal how well current processes

are being used and how well they work 2 D.4 Sales managers regularly evaluate and coach the sales force to improve delivery of key sales activities 2 B.2 Energy Company has a clearly defined process to manage and update customer contracts 3 B.3We have a clearly defined account planning process, and account plans are regularly updated and reviewed with key stakeholders

from marketing, sales, and customer support 3 A.4 The sales force is deployed in a way that balances account management and sales activity 4 D.3Individual performance metrics are reflective of real opportunity in a given sales territory and not balanced

across the sales team 4

Determine current capabilities, and invite sales leadership and field sales teams to synthesize capability priorities into potential solutions.

key takeaway:

Root cause capability shortcomings to create

a comprehensive sales effectiveness initiative

Energy Company’s Sales leadership schedules a workshop to refine capability

priorities into a sales force effectiveness program and garner leadership support

Creating a Sales Force Effectiveness Program

Step 1: Capability Priorities Analysis Step 2: Solutions Identification Step 3: Ongoing Sales Leadership Engagement Vet potential solutions based on cost and impact, then

create an implementation plan according to the four steps listed below.

Work with key stakeholders to manage the program (changes, timing, budget, etc.), review progress, and gauge impact over time.

BU Leader

BU Leader BU Leader

Sales Effectiveness Manager

Select—Decide on a viable solution to achieve the desired conclusion

Define—Lay out project scope and requirements

Execute—Build the solution and establish the business process owners

Sales Manager Sales VP

Operate—Implement, measure, and continuously improve the solution

Capability Priorities Workshop Facilitator: Sales Effectiveness Manager (SEM)

Attendees: Sales Leadership—VP’s and Sales Managers Key Aspects of the Priority Analysis:

• Identify the problem—What is happening today: “Sales’ performance has been below expectation for the past three consecutive years”

• Understand contributing factors—We are unable to do this because: “We lack the proper resources, et al.” • Establish the business case—This is bad because: “We

are unable to deliver against our commitments” • Brainstorm solutions—To be more effective we need to:

“Improve our ability to define and clearly communicate the value of our offers to our customers.”

Sales Effectiveness Manager

Sales Force Effectiveness Project Implementation Plan—SEM is Project Owner

Element Project Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec B.1 Develop & Deploy Standardized Sales Process

C.3 Develop & Deploy Sales Toolkit (ART & SPT) C.2 Develop & Deploy Sales Call Plan Template D.4 Train Sales Managers on Coaching Skills; Establish _{Performance Expectations} A.3 Train Sales Force on Sales Process, Toolkit, and _{Value-Based Selling skills} D.1 Develop Process Performance indicators to _{Measure Program Implementation} B.3 Develop & Deploy Account Plan Template C.1 Develop & Deploy Sales Pipeline Tool

B.2 Develop & Deploy Customer Contract Review _process A.4 Evaluate and implement changes in sales force _deployment D.3 Establish customized individual performance metrics

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key takeaway:

Pinpoint and refine competencies supporting a value-based sales strategy

Energy Company defines the knowledge, skills, and behaviors

underpinning the value-based selling model…

Competency Requirements

…then assesses the current sales force against these competencies

Competency Survey

Based on competency survey results, Energy Company creates a program to

ensure the uniform adoption of value-based selling practices

Competency Survey Results and Action Steps

The Prospecting Scenario

Jeff is ready to evaluate other prospects and get to work on several promising opportunities. He’s looking at eight separate leads. 1. To narrow the list of prospects, Jeff decides to:

 Identify the leads he received from his sources.

 Identify the concerns his company’s solutions can address, and the companies from his short list of leads that may have these concerns or needs.

 Rank the list of prospect’s in order of the revenue they spend on comparable solutions, according to Marketing’s third-party research.

 Review market segment information and determine those that best fit into his assigned segment.

Competency Requirements for Value-Based Selling

• Assesses and understands the real needs of each customer

• Develops and communicates value proposition

• Provides solutions at the right time in the sale process

• Negotiates effectively and influences customer buying decisions

• Reinforces and creates value while managing the account

• Utilizes account and call planning to accomplish objectives

Energy Company uses formal sales assessments to identify strengths, weaknesses, competency levels, and “how” their salespeople sell.

33%

33% 33%

Implications

• A value-based selling model requires consultative sales abilities

• One-third of sales force (Tactical Sellers) struggles to perform value-based selling

Action Steps

• Conduct individual performance reviews to identify specific learning opportunities

• Train the sales force in value-based selling skills

Value-Based Sales Training Program (Illustrative)

• Buying/Selling Style Profiles

• Establishing Value For Your Product/Service • Buying Cycle vs. Sales Cycle

• Qualification I: People, Time, and Money • Qualification II: Identifying and managing Issues • Beyond Features/Benefits—Creating Value Statements • Call Planning and Account Management

• Value Based Presentations and Closing • Reinforcement Exercises and Role Playing • Customer Feedback and Refinement

Consultative Consultative _{and Tactical}

Tactical Sellers Selling Styles

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key takeaway:

Focus the sales force on sales-generating

activities by aligning sales processes with the customer buying cycle

Value-Based Sales Process

creating the value-based sales process

Energy Company worked with sales and marketing consultants to revise the existing sales process. They: • Defined the customer buying cycle

• Interviewed multiple internal stakeholders to understand the ‘as-is’ sales process

• Utilized cross-functional, sales and senior leadership meetings to vet the “as-is” sales process and formulate the “should be” sales process • Compared the “should-be” process against a best-practice standard and aligned it with the customer buying cycle to develop the sales process

shown above Define specific

questions that illustrate customer interest through the buying cycle. Match specific objectives to the customer buying cycle, then define the activities necessary to achieve those objectives and advance a sale to the next stage.

Create tools to help sales people demonstrate value at each stage of the sales process. Customer Buying Cycle Why is Energy Company contacting me? What are my

unmet needs? What are the solutions to meet my needs? What is Energy Company offering me? Which supplier provides me with the best overall value?

Is Energy Company delivering what it promised?

Did I make the right purchase decision?

Our

Objectives Identify qualified leads Understand customer needs and buying cycle

Define the value proposition for the customer

Build and share proposal with the customer Gain agreement on proposal from the customer Deliver contracted performance Reinforce the customer’s decision to select Energy Company Sales Force

Activities Identify opportunities and enter into sale opportunity pipeline Evaluate feasibility of sale (supply, pricing, IRR, customer credit, etc) Profile customer account and align value proposition to identified needs Create sales collateral and present to customer (value-based selling) Negotiate details of deal, close deal, and sign contracts Set customer up in Energy Company systems, enroll customer in programs, etc. Review and manage account performance and update account plans Sales

Toolkit Opportunity Sales Pipeline

Account Plan Call Plan Sales Proposal

Tool Contract Set-Up Request Account Review Tool

Develop

Opportunity Tailor Value Proposition Value PropositionCommunicate Negotiate and Close Implement MaximizationValue

Develop Account Plans Generate and

Screen Leads Sales

Process

To see the sample CLICK HERE To see the sample

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key takeaway:

Develop tools that enable the sales force to communicate value beyond price

The Sales Proposal Tool (SPT) generates a tailored proposal quantifying the specific value customers will realize

Sales Proposal Tool (SPT)

Illustrative

How Energy Company Delivers Value

New Account Proposal for ABC Distributor ENERGYCOMPANY

*

Energy Company has distribution centers conveniently located to serve your sites and guarantee on-time delivery

Estimated Annual Value of Energy Company Partnership: $400,000

Projected Service Fee Savings versus Competitors:

ABC Distributor will enjoy significant annual service fee savings with Energy Company

SPT quantitatively demonstrates value for customers. It not only depicts key elements such as pricing, but also the value of competitors’ marketing offers and programs. This shifts sales conversations from “price” to “value beyond price,” thereby differentiating Energy Company from its competition.

SPT employs historical customer data and data from its designated marketing area (DMA) to estimate the value a customer could realize with Energy Company’s offer. By design, the SPT tool is used in Step 5 of the Sales Process—Communicate Value Proposition. In the previous steps, the sales person develops an understanding of client needs and how the value proposition addresses them. This information is then plugged into the tools to create these tailored presentations.

the toolkit enables consistency

The Sales Toolkit is designed for easy sales team adoption: the presentations feature talking points, supplies guiding and anticipated questions, and includes quantifiable value statements based off current customer and market data. The Toolkit also enables sales people of varying ability to deliver a consistently high quality customer experience.

As you can see, Energy Company is not only competitive with its pricing; we

also offer much more value to you through reliable supply, our marketing programs, credit card programs and other elements

of the offer…

Energy Company

Sales Manager Client

Systems/ Tools

To see the sample CLICK HERE

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Maximizing Value with Energy Company

ABC Distributor Account Review Report

October 1–December 28, 2009

COMPANY

ENERGY *

Jul-Aug 2008 YTD Energy Company A Card $500 $1,200 Energy Company B Card $800 $2,100 Energy Company C Card $350 $550

Total $1,650 $3,850

Value of Participation in Selected Energy Company Programs: $12,000

Credit Card Bonus Program:

Extracting more value with Energy Company

Compliance Program

Dollars available through program: $3000 Dollars earned through passing scores: $1800 Dollars missed (opportunity for improvement): $1200

Co-op Marketing Program

Dollars available through program: $5000 Dollars used: $800

Dollars available: $4200

key takeaway:

Build sales tools that focus account review

discussions on quantified demonstrations of relationship value

Energy Company’s Account Review Tool (ART) generates a monetary figure that demonstrates the value a customer derives from the relationship

Account Review Tool (ART)

Illustrative

Auxiliary programs’ real-time values are showcased in the presentation. Sales are able to clearly communicate customer benefits and highlight further value that can be realized through additional programs. The Account Review Tool (ART) creates

a presentation highlighting the value a customer is realizing currently and identifies opportunities to increase value through participation in additional Energy Company offers.

ART calculations are driven by algorithms based on actual customer historical data.

ART presents the monetary value Energy Company creates for a customer over a specified time period. It is a compelling account of how the customer’s activities translate into value that Sales can then reference during account visits and renewal negotiations. ABC Distributor John Smith 1234 Gasoline Alley Anytown, USA 12345 Dear Mr. Smith,

Thank you for doing business with Energy Company. ABC Distributor’s success is important to Energy Company. To support your business on an ongoing basis, I would like to update you on general performance information for the previous quarter (Q# 2009), and more specifically ABD Distributor’s performance and opportunities relating to Energy Company’s programs.

Energy Company uses innovative marketing to build a strong and exciting image for your sites. In the Anytown area, Energy Company’s market share is 24%. Energy Company’s position is supported by extensive marketing programs which help to build consumer awareness, enhance customer loyalty, and drive business to your sites.

COMPANY

ENERGY *

ART generates a review letter with key value creation messages that can be sent to customers who are visited less frequently than others.

Systems/ Tools

To see the sample CLICK HERE

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Sales Scorecard Q2

Measure and improve performance with Key Sales Performance indicators and Process Performance indicators (“10” value means that the benchmark or goal is the most valuable)

Benchmark Weight Performance

Sales Effectiveness 2 52.50% Sales Process 4 70.00% Coaching and training 2 63.00% Managing Customer relationships 2 62.50% Total Performance 63.60% SCORECARD DETAILS:

Benchmark

Category Performance Indicator (x of 10)Weight Description Performance (%) Target Values

Sales Effectiveness 2 52.50%

Cost of sale ₂ The total cost of one sales person

divided by their number of sales 40% 100% Sales per

employee 4 The Net Sales divided by the total number of employees. 65% 100% Total Performance in group Sales Effectiveness 52.50%

Sales Process 4 70.00%

Close ratio

3 The conversion Visit/Order, the percentage of visitors who purchase the product

70% 100% CRM usage

4 The percentage of sales person, who have an access to CRM software means, including business trips time.

95% 100% Toolkit

Implementation ₁ Sales Managers with access to toolkit and fulfill 1/4ly requirements for use (Four Deliveries per SM per Quarter (96)

45% 100%

Total Performance in group Sales Process 70.00% Coaching and training 2 63.00%

Training and

coaching 4 Indicators which show improvement resulting from coaching & training 55% 100% Product and

service related

education 2

Indicators which describe how salespeople education concerned products and services

71% 100% Total

Performance in group

Coaching and training 63.00%

key takeaway:

Utilize a scorecard to drive desired versus expected behaviors and outcomes

Energy Company uses Process Performance Indicators (PPIs) and Key Performance Indicators (KPIs)

to reinforce the importance of generating the right results from the right behaviors

Sales Performance Scorecard Performance

Management

Energy Company’s Sales Effectiveness Manager develops a quarterly Scorecard to track sales effectiveness against performance metrics.

Scorecard includes 14 specific Performance Indicators divided into 4 Benchmark categories. Energy Company weighs each benchmark based on its importance to total sales performance. This also holds true for Performance Indicators. Total performance calculations in the categories and overall include weighted values to give Sales Leadership a tailored score for each member of the sales force.

Overall performance scores are used to drive remediation of sales effectiveness initiatives and performance improvement.

Process Performance Indicators (PPIs) show how well the sales force is adopting new processes and tools. Sales Leadership uses this information to reinforce expected behaviors.

Key Performance Indicators (KPIs) show whether the sales force is achieving specific objectives. Sales Leadership uses this information to manage performance (mentoring, coaching, training, etc.).

0 20 40 60 80 100 _{Number of Presentations}

Number of Sales Managers making Presentations Q4 ‘08 Q3 ‘08 Q2 ‘08 Q1 ‘08 Sales Process Adoption of the Sales Toolkit

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the customer advisory board

Composition:

• A select group of Energy Company distributors who are under strict confidentiality agreements

Responsibilities:

• Provide feedback on current marketing programs • Serve as a litmus test for proposed programs and offerings • Represent regional constituents as the voice of the customer to

Energy Company Sales and Marketing organization

key takeaway:

Develop and implement a structured plan

for embedding processes and tools with the sales force

Energy Company’s change management approach avoids organizational resistance by orchestrating a series of smaller-scale transformations

Implementation Plan

Adjust Toolkit content and data on a quarterly basis

Formalize performance agreements including measurement of Sales Toolkit adoption (e.g., three presentations per month with regional sales manager, resulting in new or increased business)

Perform formal sales process training to reinforce skills Revise Toolkit (input and output

functionality) based on feedback from customers and sales force

Elicit feedback on the Sales Toolkit from the sales force and the Customer Advisory Board

Sales Force

Effectiveness Manager and Sales Leadership introduce the vision to the sales team

Sales Force

Effectiveness Manager and Consultants provide sales process training

Set process performance targets to drive toolkit use and adoption (e.g. four applications per month)

Sales Force Effectiveness Manager and Consultants supply guidance on how to use the Sales Toolkit

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0 25 50 75 100 0% 25% 50% 75% 100% 125% Market Share year year year year year year 0% 20% 40% 60% 80%

Business Results

Sales Percentage of Goal

Sales Force Time Allocation 2006–2009

Sales Force Competency Improvements 2006–2009 Pre-Implementation 2006 2007 2008 2005 2004 2003 Post-Implementation 2009 2008 2009 2007 Year Skill Area Percentage of Time Spent Sales Percentage of Goal Time on Administrative Activities Time on Account Management and Selling Activities Benchmark Pre-Implementation

One Year Post-Implementation

65% 75% 70% 115% 125% 110% _65% 55% 35% 45% 45% 55% 40% 60%

The restructured sales process and the Sales Toolkit contributed to a 25% increase in the amount of time Sales spends on actual selling activities.

Influences Customer Buying Decision Under

stands Real Need of Customer

Provides Solutions at the Right Time in the Sale_Creates

Value f or the Decision Mak er Uses Sales Call Planning Eff

ectiv ely

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Key Lessons Learned

Profiled Company Perspective

• Transformation is a journey, not an event. The key to Energy Company’s success was taking a much larger scope of

programs and breaking them into manageable chunks. These were deliberately staged and coordinated over time to

achieve the end result. A full transformation to value-based selling can take between 3–5 years, depending on where an

organization starts and how effectively the program is managed.

• Be flexible with the amount of new information you present to the team at one time. There are limits to how much

“change” an organization can take in. Slow things down to allow teams to absorb new concepts and adapt; change

direction if needed.

• Executive sponsorship—and ownership—is crucial. Regardless of what a change program may say you “should do,” the

leadership of the organization will ultimately decide what it “will do.” It is tremendously important for sales leadership to

champion the program and hold people responsible and accountable for its implementation.

• Energy Company’s capability standards were based off a home-grown template that incorporated information from

various consulting sources. Data from these sources was also used to establish an integrated view of what constitutes

“best practice” in a specific area. Energy Company then conducted an internal survey to measure its capability against

those standards and define its aspirations and priorities.

• In many companies, programs of change are treated in a very finite i.e., start-to-finish way. In contrast, the sales

effectiveness program at Energy Company remains ever-green because customer requirements drive refinement of the

tools and overall program. Energy Company is in its fifth iteration of the sales toolkit and moving it to a web-based

platform with near real time information updates. They expect it to continue to evolve. The collaboration between Sales,

Marketing, and Customer Support makes this possible.

• A designated business process owner can help ensure critical parts of a sales force effectiveness program subsist after

implementation. In addition to taking ownership of the design and implementation of the program, the role can also help

post-implementation in the areas of continuous improvement and usage.

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Key Lessons Learned (Continued)

• The shift to a value-based selling approach and the utilization of a Sales Toolkit is manageable for an organization of

any size. Ease and scalability of Toolkit construction are functions of the systems and tools in place at the company.

Energy Company’s collection of customer databases required 3–4 months to gather, analyze, and build the tools. Other

organizations with a single source of data and an integrated solution could achieve a similar outcome with minimal effort

and in less time.

• You should anchor your transformation efforts on a common document, principle, or philosophy that is universal

throughout the organization. Energy Company used the Sales Process (page 5), which became the universal language for

anything pertaining to Sales in Energy Company’s business. Every internal meeting, training, or coaching was linked to a

specific piece of the sales process (e.g., “Today we are going to work on discovering client need. This is very important in

‘Developing the Opportunity’ and then ‘Tailoring the Value Proposition’ for each customer during the Sales Process…”)

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Supporting Tools & Resources

Account Plan: Illustrative Example ABC Distributor

Customer Profile

Date: 01/01/2010

SECTION 1: CUSTOMER PROFILE

SECTION 2: CUSTOMER ASSESSMENT Customer Situation

Account Plan Template

The template provides basic information about the account, primary contacts, contract information, and a current sales profile. The account plan also provides a template for creating a SWOT analysis and a sales plan to close the customer.

Customer (DBA) ABC Distributor

Primary Contact John Smith, President and Owner

Key Decision Makers John Smith, President and Owner; Ron Jones, VP, Operations; Tim Roberts, Marketing Director

Address 123 Anystreet, Anytown, USA

Market area(s) covered City 1, City 2, City 3

Other suppliers Competitor 1, Competitor 2, Competitor 3

Distribution Centers (DC) Distribution Center A, B, C

Contract status Contract Start Date: 01/01/2010

Contract End Date: 01/01/2013

Estimated

Distributor Total Energy Company Volume

Energy Company as % of Estimated total

Gasoline (gals, 000) 100,000 47,500 47.5%

Distillate (gals, 000) 400 200 50.0%

Non-fuel products (gals, 000) 250 42 16.8%

COMPANY

ENERGY *

Customer business

profile ABC Distributor was established in 1947 is located in Anytown. USA, and has been associated with Energy Company for 63 years. The Company operates 65 locations in a three state geography with its headquarters in Othertown, USA.

Desired Outcome ABC Distributor’s primary needs are reliable product supply and strong back office support. The company generally values a reliable supply over price, but has recently been…

Anticipated issues with renewal of contract

No anticipated contract renewal issues

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Supporting Tools & Resources

Call Plan: Illustrative Example

Call Plan for ABC Distributor

Date: 01/01/2010

Location: ABC Location #3

Distributor Attendees: Store Owner Energy Company Attendees: John Smith

CALL PLAN CHECKLIST

❏ 1. Review notes and news

❏ 2. Clarify who will be in the meeting and their role ❏ 3. Identify your objective for the call

❏ 4. Articulate the desired outcome of the meeting ❏ 5. Conduct account analysis and research

❏ 6. Prepare account review presentation, and other materials for review with the distributor ❏ 7. Practice/dry-run

CALL OBJECTIVE: Advance

Description of Objective 1. Share map data to illustrate overlap of supply points to ABC Distributor’s locations

2. Provide demographic information on area growth and demand 3. Provide results of marketing activity to demonstrate strength of brand

(recognition, intent to purchase, loyalty, etc.)

Desired Outcome - Gain commitment from customer to accept and consider a formal sales proposal for 50MG contract

MEETING STRATEGY

Key Questions for the Customer—Document the key questions needed to achieve your call objective.

1. What are the key strengths you look for from a supplier?

2. What challenges does having to enter billing data into your system present for you?

Anticipated Questions/Potential Responses

Question 1. Can you guarantee on-time delivery? We have had numerous delays with our current supplier.

Response: We have “x” supply points within “x” # of miles of you. Consequently, we are able to deliver on time over 95% of the time

Question 2. What are you going to provide that will make my job easier?

Response: Energy Company provides all the necessary tools to automate standard process, coupled with extensive training and 24 hour customer support.

POST-CALL NOTES

Use this space for post-call notes. What did you achieve during this meeting? What specific agreements or actions resulted from the call? Reference these notes to help you plan for your next call.

COMPANY

ENERGY *

Sales Call Plan Template

The template provides a format to think through the next sales call. It includes a checklist to guide preparation and specific areas to capture comments on call objectives, key questions, anticipated questions with associated responses, and any notes for future reference.

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Customer Profile

Distributor Information Customer Name Customer Number Contact Name Contact Phone Number Address City, State, Zip

Distributor

Information Presentation Information Site Selection

COMPANY

ENERGY *

Site Information (1 of 5)

Site Information

Contact Name Contact Phone Number Site Address or Intersection City, State, Zip Estimated ‘Go Live’ Date Site Geography

Select the area in which the site is located: Select the site’s primary terminal: Select the site’s secondary terminal: Select the site’s tertiary terminal: Is the site along an interstate highway

or in a township? Yes, the site is along an interstate or in a township No, the site is neither along an interstate or within a town

Distributor

Information Presentation Information Site Selection

COMPANY

ENERGY *

Supporting Tools & Resources

Sales Proposal Tool (SPT): Illustrative Example

ABC Distributor—Credit Card Overview

COMPANY

ENERGY *

Projected Service Fee Savings

versus Competitors CompanyCredit Card Portfolio Transactions in Energy Bonus ProgramCredit Card

Jul-Aug 2008 YTD Energy Company A Card $500 $1,200 Energy Company B Card $800 $2,100 Energy Company C Card $350 $550 Total $1,650 $3,850 Energy Company Energy Company B Card Energy Company C Card 3rd Party 25% 15% 5% 55%

Energy Company offers enhanced value through its credit card program: Greater savings on card fees, access to a portfolio of loyal customers, and the opportunity to earn bonuses through new business generation.

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Energy Company Credit Card

Energy Company service fee savings vs. competitors

The Energy Company service fee structure has lower cost on average than its competitors Energy Company vs. Competitor A Energy Company vs. Competitor B Energy Company vs. Competitor C Energy Company

service fee advantage $

Shifting 1% of the distributor's third party credit card transaction to the new Energy Company Consumer Card represents a savings of $

Energy Company Credit

Card transactions Energy Company average purchase size $

Number of new accounts created from card applications taken from their sites

Total value of credit card bonus program $

Customer

Information Presentation Information Products and Pricing

COMPANY

ENERGY *

Supporting Tools & Resources

Account Review Tool (ART): Illustrative Example

Sites and Volumes

Energy Company offers the lowest service fees amongst

benchmarked competitors

Relative to the current competitor service, ABC Distributor is enjoying significant annual service fee savings with Energy Company

Fee savings since the beginning of the year

0 700 1,400 2,100 2,800 3,500 A B C D E Competitors COMPANY ENERGY *

Additionally, every 1% shift of ABC Distributor’s third-party credit card transactions to the new Energy Company Consumer Card represents $0.XX per transaction!

ABC Distributor John Smith

1234 Gasoline Alley Anytown, USA 12345 Dear Mr. Smith,

Thank you for doing business with Energy Company. ABC Distributor’s success is important to Energy Company. To support your business on an ongoing basis, I would like to update you on general performance information for the previous quarter, and more specifically ABD Distributor’s performance and opportunities relating to Energy Company’s programs.

Energy Company uses innovative marketing to build a strong and exciting image for your sites. In the Anytown area, Energy Company’s market share is 24%. Energy Company’s position is supported by extensive marketing programs which help to build customer awareness, enhance consumer loyalty, and drive business to your sites.

COMPANY

ENERGY *