Union Budget 2012-13: Highlights

•    Total expenditure in 2012-13 seen at 14.9 trillion rupees, up 29 percent

•    Plan expenditure budgeted at 521.25 billion rupees in 2012- 13, up 18 percent

•    Economy expected to grow at 7.6 percent in 2012-13, plus or minus 0.25 percent

•    Income-tax exemption limit raised to 2 lakh rupees from 180000 rupees

•    Fiscal deficit seen at 5.1 percent of GDP in 2012-13

•    Plan expenditure budgeted at 521.25 billion rupees in 2012-13, up 18 percent

•    Net market borrowing seen at 4.8 trillion rupees in 2012-13

•    Proposes to raise service tax rate to 12 percent from 10 percent

•    Gross tax receipts seen at 10.8 trillion rupees in 2012-13

•    Non-tax revenue seen at 1.64 trillion rupees in 2012-13

•    Proposes to levy tax on all services except 17 items in the negative list from 2012-13

•    No change in corporate tax rates

•    Allow external commercial borrowing of up to 1 billion dollar to raise working capital for airlines industry for 1 year

•    To allow qualified foreign investors in Indian corporate debt markets

•    To allow external commercial borrowing to part finance rupee debt in power projects

•    Allocates 1.94 trillion rupees for defence in 2012-13, up from 1.64 trillion rupees in previous year

•    To award contracts to build 8800 km of roads in 2012-13

•    15888 crore rupees to be provided for capitalization of public sector banks and financial institutions

 •    Investment in 12th Plan in infrastructure to go upto 5000000 crore rupees; half of this is expected from private sector

 •    Allocation of Road Transport and Highways Ministry enhanced by 14 per cent to 25360 crore rupees

•    5000 crore rupees India Opportunities Venture Fund to help small enterprises

•    Allocation to agriculture enhanced; RKVY gets 9217 crore rupees; BGREI gets 1000 crore rupees;.2242 crore rupees project to improve dairy productivity; 500 crore rupees for coastal aquaculture

 •    Target for agricultural credit raised to 575000 crore rupees

 •    200 crore rupees for awards to incentivise agricultural research

 •    National Mission on Food Processing to be started in cooperation with State Governments

 •    Rural drinking water and sanitation gets 27 per cent rise in allocation to 14000 crore rupees; PMGSY gets 20 per cent rise to 24000 crore rupees

•    Right To Education-Sarva Shiksha Abhiyan gets 25555 crore rupees allocation, showing an increase of 21 per cent; 6000 schools to be set up at block level as model schools in the 12th Plan; Credit Guarantee Fund to be set up for better flow of credit to students

 •    National Urban Health Mission is being launched 

•    34 per cent increase in allocation to National Rural Livelihood Mission, to 3915 crore rupees

•    1000 crore rupees allocated for National Skill Development Fund

•    Widow pension and disability pension raised from Rs. 200 to Rs. 300 per month

 •    Grant on death of primary breadwinner of a BPL family in the age group 18-64 years doubled to 20000 rupees

•    4000 residential quarters to be constructed for Central Armed Police Forces

 •    Government doubles allocation for tax-free bonds to 600 billion rupees for financing infrastructure projects in 2012-13

•    Disinvestment target in 2012-13 of 300 billion rupees

•    Expects country to become self-sufficient in urea production in five years

•    Proposes to raise agricultural credit target in 2012-13 to 5.75 trillion rupees

•    To keep 2012-13 subsidies under 2 percent of GDP

•    Current account deficit seen at 3.6 percent of GDP in 2011-12

Upselling

Upselling (sometimes "up-selling") is a sales technique whereby a seller induces the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale. Upselling usually involves marketing more profitable services or products but can also be simply exposing the customer to other options that were perhaps not considered previously. Upselling implies selling something that is more profitable or otherwise preferable for the seller instead of, or in addition to, the original sale. A different technique is cross-selling in which a seller tries to sell something else. A recent study concluded that it is 70% easier to get an additional 3% in sales from an existing customer than it is to get more customers in the door to equal the same dollar volume in sales. In practice, large businesses usually combine upselling and cross-selling techniques to enhance the value that the client or clients get from the organization in addition to maximizing the profit that the business gets from the client. In doing so, the organization must ensure that the relationship with the client is not disrupted. In a restaurant and other similar settings, upselling is commonplace and an accepted form of business. In other businesses, such as car sales, the customer’s perception of the attempted upsell can be viewed negatively and thereby affect the desired result

Some examples of upsales include:


>suggesting a premium brand of alcohol when a brand is not specified by a customer (such as if a customer simply requests a "rum and Coke").

>selling an extended service contract for an appliance
suggesting a customer purchase more RAM or a larger hard drive when servicing his or her computer

>selling luxury finishing on a vehicle

>suggesting a brand of watch that the customer hasn't previously heard of as an alternative to the one being considered.

>suggesting a customer purchase a more extensive car wash package.

>Asking the customer to super size a meal or add cheese at a fast food restaurant.

Advertising Psychology

Advertising Psychology

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Cross-Selling & Up-Selling with Miller Heiman - Presentation Transcript

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Cross-Selling & Up-Selling with Miller Heiman

Cross-Selling & Up-Selling:Uncovering Hidden Opportunities
Rich Blakeman - Sales Vice President, Miller Heiman
SAN FRANCISCO
CHAMBER OF COMMERCE
Where smart business starts

How does it look to you?
This year I will achieve my sales quota.
? %
? %
Others
World Class
How did it look last October?
This year I will achieve my sales quota.
83%
48%
Others
World Class
Current Customer
New Customer
Profitability
Who we are
Miller Heiman – The Sales Performance Company
Miller Heiman helps companies and individuals that compete for high-value business-to-business sales develop strategies, processes and skills to consistently win business – especially when the sales process is complex and the marketplace demanding.
We have been in business for more than 30 years. Over this time we’ve evolved into the world’s largest sales performance consulting and training firm and the preeminent thought leaders in the space.
Our reach:
Over 1,250,000 alumni
Over 10,000 client engagements
Programs translated in 17 languages
Operating in over 35 countries
2009 Miller Heiman Sales Best Practices Study
Annual study reveal trends, issues, opportunities in a complex selling environment
Benchmarks year-over-year trends
Survey conducted in October 2008
Sixth year of study
3,900+ sales professionals participated in current study
21,000 participants to date
Today’s Reality
Targets
Leads
Meetings
Opportunities
Close
Cross-Selling Defined
Cross-selling (verb)
Expanding the number and quality of relationships between key people in the buying organization and the selling organization, and/or
Making additional relevant solutions available to the buying organization (e.g., new products).
Up-Selling Defined
Up-selling (verb)
Converting an initial order into a more profitable order. Typically manifested by the customer's commitment to:
(1) additional units of the seller's solution – or –
(2) a premium version of the seller's solution. This doesn't mean selling one's customers something they don't need; it does mean selling one's customers more of something that they do need.
Timing for Effective Cross-Selling & Up-Selling
Buying Process
Status
Quo
Need to
Change
Recognized
Define
Problem
Evaluate
Options
Select
Best
Implement
Assess
Value
Timing for Effective Cross-Selling & Up-Selling
Buying Process
Status
Quo
Need to
Change
Recognized
Define
Problem
Evaluate
Options
Select
Best
Implement
Assess
Value
Up-Selling
Cross-Selling
Sales Leadership Challenges Today
Increase average deal size
Effectively introduce new products/services to the market
Grow sales without significant increases in resources
Differentiation through increased value
Do your customers understand the full breadth of your capabilities?
Only 34 percent of top-performing sales organizations report that their customers understand the full breadth of their capabilities, and only 22 percentof all other organizations make the same claim.
2008 Miller Heiman Sales Best Practices Study
Existing Client/
Customer
New Client/
Customer
Proven Product/
Service
1
3
New Product/
Service
2
4
1 - 4 = Most to Least Predictable
Predictability Analysis Model
Our sales force is very effective at selling new products / services.
74%
37%
Others
World Class
The Number One Reason People Don’t Cross-Sell Up-Sell
The Number One Reason People Don’t Cross-Sell Up-Sell
FEAR
Fear of Cross Selling & Up-Selling
Fear of losing is the number one reason salespeople do not cross-sell and up-sell more often.
92%
91%
43%
37%
Others
World Class
Others
World Class
Our organization regularly collaborates across departments to manage strategic accounts.
Sales and Marketing are aligned in what our customers want and need.


4 Steps to More Effective Cross-Selling & Up-Selling
Develop Your Ideal Customer Profile
Map the New Buying Process
Understand the Concept
Define Unique Strengths
Step 1
Step 2
Step 3
Step 4
Develop Your Ideal Customer Profile
Step 1
Consider the characteristics of those clients who would have the greatest need for your added product/service:
Create a list of five key characteristics.
It’s not who has a need but who has the greatest need
It’s not who will buy but who will buy quickly
Quick wins help reduce Fear
This is the criteria you will use as a sorting device to prioritize.
Example: Ideal Customer Profile
Fast sales head-count growth
Higher than expected sales force turnover
Client has shared their concern as to whether they have the right people
New VP of Sales in place
Companies in the midst of a merger or acquisition
Size of sales force
Which current clients match your Ideal Customer Profile?
The Cross-Sell/Up-Sell Matrix
Step 2
Map the New Buying Process
Who will help you gather information?
Do you know this person – do you need to develop this person?
Who will make final decision to buy?
Do you know this person – do you need additional info?
Develop Your Coach
Role: acts as a guide for cross-selling and up-selling
Proactively develop at least one
A Coach can provide and interpret information about:
Validity of this Opportunity
Other Buying Influences
Focus: your success with this proposal
Asks: “How can we make this happen?”
Recognize where the decision will get made.
Who holds the budgetary/financial responsibility
Who’s ultimately responsible for the success/failure when purchasing your product/service
Calling at the right level is critical
Top-performing sales organizations include client executives in the sales cycle1:
52 percent more likely to gain access to key decision makers
57 percent more likely to systematically identify the issues of key individuals
56 percent more likely to have relationships and dialog at the highest executive levels with strategic accounts
Must be selling at the Economic Buying Influence level!
1 - Source: 2009 Miller Heiman Sales Best Practice Study
Step 3
Understand the Concept
Finding the optimal solution
Every customer has a solution image or Concept
Customers buy what they think your solution will enable them to accomplish
The Customer’s Concept evolves during the buying process
The sales professional needs to understand the Customer’s Concept
Customers have Concepts; companies do not
Customer’s Concept
Accomplish something
Fix something
Avoid something
Create a Valid Business Reason
Provide a compelling reason for this person to invest time with you
Is bigger better? Why?
What is Unique and better about the larger solution?
What are your Strengths?
How are your Strengths important to your customer?
Define Unique Strengths
Step 4
Differentiation
Products, services, or solutions must be differentiated before the customer makes a decision to buy, or that decision may be based on price alone
Customers do not buy products, services, or solutions per se; they buy what they think or feel the products, services, or solutions will accomplish for them
Your Customers must see a link between your product, service, or solution and their Concept
So What? Prove It!
Review of the 4 Steps to EffectiveCross-Selling & Up-Selling
Develop Your Ideal Customer Profile
Map the New Buying Process
Understand the Concept
Define Unique Strengths
Step 1
Step 2
Step 3
Step 4
Q&D

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