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Slide 2 : Software Project Pre-Sales Activities
by
Denis Petelin Programming
Project Success
Who am I? : Who am I? I have seen software project internals from different points of view because was performing different roles on project (except database architect ?)
For 3 years I was owner of dp Consulting (software development company) and SEADMEX (educational company which was teaching dpC experience), so I have seen projects also from owner & sales point of view.
Now as a Training Manager for EPAM Systems I have broad experience as a Customer ? Denis Petelin
Why attend my training? : Because I’m practitioner Working in same are you work With strong analytical & teaching skills So its good chance that you learn things from me Why attend my training?
Vision \ Scope : Vision \ Scope Time & Material – does not require extra work from PM
Fixed Team – kind of time & material
Fixed Price – most difficult case: contracted schedule & price barely can be changed *)
We will talk about Fixed Price
Most actual within economy slowdown
The only silver bullet : The only silver bullet Scope Schedule Resources
What is Project? : What is Project? “Selling” means “laying egg”
Healthy egg means healthy project
Rules of engagement : Rules of engagement Write down core principles, don’t rely on session recording
Write you questions to chat – I will answer them after session
If you feel you need answer right now because otherwise you cannot proceed with material – raise your hand
If you have something to add to my words (interesting facts, links, examples – post them to chat)
Session 1: Sales Process Basics : Session 1: Sales Process Basics
Why people buying? : On average companies change their system every 5 years Why people buying?
The Role of Marketing : DISSATISFIED 25% dissatisfied and open to buy in any moment Consistent & Constant ! Marketing
Machine The Role of Marketing
Here comes Sales Process : Here comes Sales Process RESEARCH COMMITMENT
90 - 100% PROPOSAL
80 - 90% DIAGNOSTIC
30 - 80% POSITIONING
20 - 30% QUALIFITATION
0 - 20% yes
Overlapping with implementation! : L E A R N I N G DEVELOPMENT
& TESTING DESIGN ANALYSIS DEPLOYMENT ON-GOING
OPERATIONS Overlapping with implementation! POSITIONING
20 - 30%
Becoming Account Manager : Becoming Account Manager Set annual budget with client
Training
Consulting
Annual maintenance
Upgrades
Custom programs
Other services S A T I S F A C T I O N ON-GOING
OPERATIONS
Setting our objectives for Session : Setting our objectives for Session Understand why customers are buying
Understand sales process
Understand what's going on each phase
Understand how this phases overlap with Implementation phases
Realize do’s and don’ts of Project Manager participation in sales (having in mind becoming Account Manager)
Selling Custom Software Solutions : Selling Custom Software Solutions m e t h o d o l o g y
Sales Methodology overview : new
project S A L E S S T R A T E G Y Sales Methodology overview
Qualification : purpose pre-conditions post
conditions To qualify the Opportunity
To reduce risk of a bad sale
To set up a meeting with the Buying Committee Opportunity entered in the CRM
Opportunity assigned to Sales Person
Pre-qualification done by Marketing Opportunity qualified
Killer applications, budget and timeframe confirmed
Executive Sponsor confirmed
Scheduled meeting with the Buying Committee
Close date estimated Qualification
Define the Potential Customer : Cannot move beyond 20% of the sales process
without the following information Define the Potential Customer Decide if you have a business opportunity and whether you should invest Industry and company size Has budget and fits our company business model Is going to make a systems investment within 6 - 9 months You have identified the pain for which you have the treatment You have identified the Executive Sponsor have a meeting set up
Positioning : purpose pre-conditions post
conditions To position the our company as full service business advisor
To get agreement and cash commitment to perform a Diagnostic
To gain a competitive edge in the sales process Opportunity is fully qualified
Decision to go ahead made Propect has accepted Diagnostic Proposal
Have the right information about the Opportunity
Reached consensus on Killer applications Positioning
Identification and Interpretation of Needs : Searching for the Holy Grail of Sales
“The Killer applications” Identification and Interpretation of Needs Logical Emotional feature, function, platform, price fear, risk, control, looking good, pain At this stage, you should act as consultant rather than as a salesperson, identifying the customer’s problems and needs. After that, you sould find out th value the customer places on the solution. Discover thier explicit needs and confirm those needs.
Who does What? : Who does What? Consultant (PM\PC)
Works on project and assessing quality of Potential Customer
Assists in proposal details (consulting drives the details)
Attends the presentation with salesperson
Is assigned to this Potential Customer if project materializes Sales Professional
Works on initiating the hand off to consulting
Develops system proposal (runs parallel, construct report & proposal)
Presents results and proposal
What Is Positioning? : What Is Positioning? You can occupy this space with an idea that has compelling meaning for your target A position is a mental space
Competitive positioning is... : Competitive positioning is... ©1999 Barry Briggs Only you communicate this particular compelling benefit, and ideally ONLY you can claim it. A U N I Q U E M E N T A L S P A C E
Example of right positioning : Example of right positioning
Another good example : Another good example
Traditional Positioning : Traditional Positioning
Unique Selling Proposition : Unique Selling Proposition
Prepare for Positioning Presentation : Objective à Sell Diagnostic to Buying Committee Prepare for Positioning Presentation Use information gathered in the Qualification Phase Re-use as much as possible, but don’t afraid to be
unique
Diagnostic : purpose pre-conditions post
conditions To reduce the risk of the project and determine the degree of complexity
To gather information to prepare a winning Proposal
To gain a competitive edge in the Sales Process
To get the Diagnostic accepted Signed Diagnostic Proposal
Project Initiated Software Req Spec, Project Estimations, Candidate Architecture Diagnostic
Seize the Opportunity : Seize the Opportunity Scope Schedule Resources
Proposal : Proposal purpose pre-conditions post
conditions To win the business
To secure commitment for the Project by getting “buy in” on the Project deliverables, timeline and estimated fees Approved Diagnostic Proposal accepted
Scope Definition : Scope Definition
Project Plan & Budget : Project Plan & Budget
Typical Problems : Typical Problems Sales Professionals are compensated via revenue, not via profit
Sales Professionals are too self-confident
Project Manager cannot explain approach to estimations
Project Manager cannot explain estimations
Project Manager doesn’t pinpoint risks, just adds “buffer”
Commitment : purpose pre-conditions post
conditions To finalize expectations and deliverables into a
service contract
To secure a managed implementation Proposal approved Contract signed and new Customer Commitment
Commitment – Common Traps : Common traps Commitment – Common Traps You raise the price to allow for negotiation and the client discovers it - DOA! Other traps? Common traps How am I going to close a sale without a contract on hand (self-confidence) Never think a deal is closed without a pay down To end up, two important thoughts
Commitment – Common Traps : Commitment – Common Traps Once you drop price,
you will always drop price with this customer Common traps Adjust price = reduce plan
Is fatal strategy You take something out of the plan, and then they attempt to slip it back in once project commences
Remember it! : Remember it! Diagnostic 1 Sale closed =
INCEPTION over
Summary : Summary If you do not participate in sales – you harden your life
Sales needs support while selling
Otherwise results can be disappointing (for you)
Start selling early (at CRM leads preferably)
Differentiate by quality, not price
Position yourself as Partner
Think on Pre-Sales as of INCEPTION phase
Slide 41 : Home Work
Common mistake : Common mistake If you fail differentiate by quality (position yourself as partner) you will differentiate by price. That’s bad.
Construct positioning Unique Selling Proposition
Describe your Customer (name him\her!)
Describe his\her killer pains
Think how do you relief this pains
Distillate your text into ONE SENTENCE
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In next sessions : In next sessions