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DWS Sales Training Customer Centric Persuasive Selling PowerPoint Presentation
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DWS Sales Training Customer Centric Persuasive Selling

DWS Sales Training Customer Centric Persuasive Selling

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DWS Sales Training Customer Centric Persuasive Selling

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  1. DWS Sales TrainingCustomer Centric Persuasive Selling

  2. Customer Centric Persuasive Selling is… …understanding the needs of the customer’s business so that we can identify issues and opportunities and then sell in Diageo solutions in a simple way that enables customers to see the mutual value.

  3. Agenda Flow • What Customers Want • Generating Simple Insights • Building a Persuasive Selling Story

  4. Customers care about a lot of the same things that we do…. Like for Like Growth Innovation Customer loyalty Margins, Working Capital, Market share, volume and purchase frequency Controlling Operating Costs and Supply Chain Differentiation and Reputation Supplier reliability Teamwork

  5. Understanding Customer Needs - Each Customer will have fundamentally the same business need: to make a profit • The are two key drivers of profit: increasing revenue (sales) and reducing costs (efficiencies) • Performance against these drivers will be assessed by reviewing performance in terms of volume, cash profit, %margin and market share – in terms of absolute and relative performances

  6. Winning Brand Proposition Invent The Future Sweat The Asset Whether ON Trade or OFF Trade, customers typically build their business on a very simple model Profit Increase Sales i.e. Loyalty Decrease Costs i.e. Efficiency

  7. Winning brand proposition • What do we stand for in the minds of our Customers? • (Is it sustainable/deliverable?) • Why do they come back? • Who are they? • What do they want from us? • What do we want to be FAMOUS for?

  8. Sweat the Asset • Optimise space utilisation. • Optimise inventory management. • Range / supplier rationalisation. • Employee motivation, empowerment and ownership : One Team. • Information management. • Supplier resource utilisation.

  9. Invent the Future • New outlets and outlet concepts. • New Categories. • New products / services. • What can we sell better and/or differently to our Customers?

  10. Although their goals are similar, strategies may differ between customers Primary Need Profit Secondary Business Needs Increase Sales Decrease Costs Unique Business Divers Info Space Productivity Long term Pricing Call Frequency Staff Educ Outlet Traffic Range Customer Loyalty New Customers Tailored Promotions • Every business will employ different strategies to achieve these goals dependent upon their individual business models

  11. The individual people you deal will also have personal needs, which you may need to take into consideration Primary Need Profit Secondary Business Needs Increase Sales Decrease Costs Unique Business Divers Info Space Productivity Long term Pricing Call Frequency Staff Educ Buyer’s Personal Needs Ego Massage Make me look good F1 tickets Respect my opinion Outlet Traffic Range Customer Loyalty New Customers Tailored Promotions • Additional to this, all buyers have personal needs which also need satisfying, which will be different from one person to another

  12. Customer Hierarchy Of Needs Summary • Understanding customer needs is critical to developing any proposition or proposal • Customers / Buyers have both Business and Personal needs • Most customers have the same primary and secondary needs but will use different business 'drivers' to achieve their goals • The customer is likely to have objectives set against their key driving needs - do we know them? • Your proposition / proposal will be more successful if it helps your customer achieve their objectives • Understanding how the customer measures success will help you to customise your proposition / proposal accordingly

  13. Customer Expectations Of Suppliers Total Category and Shopper Orientation Talk and think category and customer Understanding Customer Objectives Know my business and fit in Product / Marketing Leadership Strong brands Service Leadership The basics

  14. Brand DIAGEO External Internal CUSTOMER Category One of the most important things to understand is that… CUSTOMERS think CATEGORY, not brand

  15. Typical Category P&L

  16. Customers focus on Managing the Margin Mix

  17. Where would you focus to improve category margins?

  18. Where does Diageo sit? High • Select a customer • Consider your contribution to the total category within the customer • Plot your competitors on the grid also • Consider the implications % Gross Margin Low Low % of Category Sales High

  19. Things we should understand about the customer Key Personnel / Internal Stakeholders Policies Operating Model Financials Vision, Mission and Strategy Key Process Sources of Value Competitors In Outlet Drivers Value Drivers and Metrics Attractiveness to Diageo Shopper / Consumer Profile

  20. How Customers Evaluate Proposals Is it right for the market? Is it attacking an unsatisfied need Consumer Proposition Is it right for my customers? Will I be able to sell it? Fit With My Customer Commercial Proposition Is it robust financially? How will it effect category sales and profit? Incremental Category Opportunity Does it add value to my business? How will it effect supply chain and outlet costs? Impact On Cost Drivers Will I be able to execute it? Implementation Therefore, for a truly customer centric persuasive sell, we will need to address these key points in our presentation to the customer

  21. Agenda Flow • What Customers Want • Generating Simple Insights • Building a Persuasive Selling Story

  22. What is an Insight? Insight comes from our understanding of data. • Insight = R.A.D • Is something that is Relevant to your business or agenda • Is something that should be Actionable • Is something that should be Deeper than the basic data – it is an interpretation of the data and its consequences.

  23. It’s not always easy to tell the difference between information and insights. How many of these insights? Don’t forget to apply RAD!

  24. Sometimes it helps when we look at things a different way… On the next slide you will see an example from 2008 of an alternative way of looking at money: it is information which we have probably heard before but it takes on new meaning when we look at it through a different lens.

  25. We can apply different lenses to the way we see things in our business.. Do you remember the earlier example about category margin and how we were able to get some insights from looking at the information differently and considering the implications? High % Gross Margin Low Low % of Category Sales High

  26. Here are some examples of different ways to look at the OFF Trade to try and get insights

  27. Example: Category / Retailer benchmarking This will enable you to see if the category is growing faster or slower than the selected retailer’s overall business Retailer Alcohol Growth %, by Retailer Retailer All Store, All Product Growth % By Retailer (Matrix plot each retailer)

  28. Example: Per outlet sales benchmarking This will enable you to benchmark which retailers are selling more alcohol on a per outlet basis Retailer Sales per Outlet Alcohol Retailer Sales Per Outlet All Products By Retailer (Matrix plot each retailer)

  29. Example: Share of Alcohol This will enable you to benchmark whether retailers share of TBA is in line with their share of segment (hyper, super, cvs etc) Selected Retailer Share by Segment, Indexed to Total Alcohol Share (bar)

  30. Example: Retailer Growth by Segment This will enable you to benchmark which retailers are growing fastest in particular segments (hyper, super, cvs, etc) Draw horizontal line at average category growth Selected Retailer Growth By Segment % (bar)

  31. Example: Retailer benchmarking This will enable you to see if the customer is underperforming against the total market, the channel or key competitors. Category Growth % TBA Market Channel Retailer Competitor A Competitor B Competitor C Competitor = the competitor of the retailer, not Diageo’s competitors

  32. Example: Segment benchmarking within TBA This will enable you to see which segments are underperforming or outperforming versus the total category Category Growth % In Customer Draw horizontal line at average category growth Total Category Whisky Vodka Cognac Beer CWS

  33. Example: TBA growth in retailer vs growth of other categories This will enable you to see whether the TBA category is growing faster than other categories. Category Growth % In Customer Draw horizontal line at average category growth Total Retailer TBA Cat A Cat B Cat C Cat D Cat E Cat C

  34. Example: Supplier Share of Market indexed to Supplier Share of Selected Retailer This will enable you to see whether the TBA category is growing faster than other categories. Category Growth % In Customer Draw horizontal line at average category growth Whisky Vodka Rum Gin International Beer

  35. Here are some others…

  36. Outlet Capacity Fill vs Industry Average Conversion Rate of Resident to Customer vs Industry Average Average spend per check vs industry average Cash Profit Per Serve for Whisky, Vodka, Wine, Beer And there are also lots of ways to look at the ON Trade whether it be a bar, a restaurant or a hotel

  37. % Trade midweek vs weekend vs industry % of customers that are walk in vs industry average average % Super premium vs standard % Premise sales in liquor vs wine vs beer vs average

  38. % of checques with more than one drink order Gross Margin per serve for whisky, vodka Vs industry average Wine, beer Average price per drink sold vs industry % of food checks that contain a drink vs average average

  39. Agenda Flow • What Customers Want • Generating Simple Insights • Building a Persuasive Selling Story

  40. Definition Of Selling Selling is matching the benefits of your product (proposition) with the needsof your Customer (contact) and putting them together in a reasoned argument • The more the buyer is ‘sold’ on your proposal, there is greater likelihood that you will avoid a negotiation. • The objective in any selling situation is to heighten the buyers ‘desire to buy’ in order to reduce his ‘requirements to negotiate’

  41. Golden Rule Of Selling The more you PLAN, the less you need to SELL, The more you SELL, the less you need to NEGOTIATE Negotiation Negotiating Selling Selling Planning Planning An ideal situation is one where we sell so persuasively, matching the benefits of our proposal to the needs of the customer, that we don’t have to negotiate!

  42. The Persuasive Selling flow Give an update, identifying a category issue or opportunity affecting the customer’s business SUMMARISE THE SITUATION Tell them your idea to resolve the issue or capture the opportunity, using their language and numbers where possible STATE THE BIG IDEA Explain to them how it works EXPLAIN HOW IT WORKS Ensure that you have covered the criteria that customers use to make decisions REINFORCE KEY BENEFITS Reinforce the benefits to them, returning to the issue / opportunity identified in step 1 if you have to. Close and identify an easy first step so that we can get the ball rolling ASAP and build confidence CLOSE - SUGGEST AN EASY NEXT STEP

  43. REMINDER: How Customers Evaluate Proposals Is it right for the market? Is it attacking an unsatisfied need Consumer Proposition Is it right for my customers? Will I be able to sell it? Fit With My Customer Commercial Proposition Is it robust financially? How will it effect category sales and profit? Incremental Category Opportunity Does it add value to my business? How will it effect supply chain and outlet costs? Impact On Cost Drivers Will I be able to execute it? Implementation Therefore, for a truly customer centric persuasive sell, we will need to address these key points in our presentation to the customer

  44. We are now going to go into more detail of each step of the persuasive selling flow, with a number of role play exercises You will imagine that you are selling a new product You will develop a persuasuve selling story as though you are trying to get a listing for this product with one of your existing customers For these exercises, we will all use this new product, which has not yet been launched in this market

  45. Your new product is…. NUVO

  46. Role Play Fact Sheet NUVO was created by Raphael Yakoby (President of the London Group), creator of the popular liqueur Hpnotiq and was launched in New York on May 1st 2007. Nuvo was originally targeted to women with “for her’ on the bottle. In F11, Nuvo is targeted to African American & Hispanic females but with men contributing 65% of sales . “for her” has since been taken off the bottle Nuvo has no ATL and mainly uses influencer model through hip hop stars. Nuvo will Sell in F10 +280k cases in the US Nuvo is seen as a status symbol in social situations, priced at $35USD off premise and $100-150 USD on premise. (Grey Goose $30 USD off premise) Aim: get Nuvo listed everywhere that Absolut or Grey Goose are listed (at a 15% premium to Grey Goose) or a 30% premium to Absolut

  47. Persuasive Selling : Step 1 – Summarise The Situation Give an update, identifying a category issue or opportunity affecting the customer’s business SUMMARISE THE SITUATION • Current situation, issues, information and insights • Customer and contact needs • Limitations • Opportunities • Confirm your contact’s interest

  48. Summarise the situation in depth Ask questions Understand them Use information