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
Questions & Discussion
