What is the validation stage of the sales cycle?
What is a Stage 4: Business Case & Proposal Opportunity?
You have confirmed with the prospect that your multi-threading technology is a solution that will solve their problem and now you are building a business case & proposal with solid ROI metrics. They intend to buy the solution, and the executive/economic buyer is aligned with a Company executive and on board with the decision to move forward.
馃懁 BUYER IS DOING: Internally evangelizing to all Decision makers that our Platform IS the solution, starting to submit our paperwork to legal and security review, allowing access to the buying team
Exit Criteria:
Seller Activities: 听
Customize the below template for your organization and surface this coaching directly to drive pipeline with 天涯海角APP.
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Sales Resource | Master Proposal Deck
What is a Proposal Deck and when should it be used?
The proposal deck should be used during stage 4 of the sales cycle. It enables us to communicate our company's specific value to a specific prospect in a compelling, polished way. It helps us establish credibility and builds confidence in our product to accelerate momentum towards a closed won deal.
Why is a Proposal Deck important?
The proposal deck serves a few key purposes:
- Differentiates our company from our competitors/alternatives
- This grants us another opportunity to:
- Confirm their pain points, goals, and use cases
- Further, cement our partnership
- Counter any remaining objections and remove any blockers to the deal
- Set expectations with the prospect
- Establish our company as the right solution
- Helps streamline the pre- to post-sales handoff by ensuring the prospect鈥檚 team (AE, CSM, Content, Support, etc.) is aligned and well-versed on the customers' needs, goals, and concerns.
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听Words that close
1. SAY 鈥淎PPROVED PRICE鈥
鉂 In negotiations, most reps say list price or typical price or standard price - MAJOR no-no.
That language extends sales cycles by 19% when it鈥檚 used at any point in a deal. Saying list price TRIPLES the time you spend on pricing if it鈥檚 said in your first two sales calls.
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鉁旓笍 Instead, say the approved price.
The buyer believes the price was set by someone else and can鈥檛 be changed.
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2. USE 鈥淚鈥 NOT 鈥淲E鈥
鉂 Feels counterintuitive, right? Words like we and you are imperative in establishing connection and trust with your buyer. But once you hit negotiations, drop it.
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鉁旓笍 Switch to 鈥淚鈥檓 pleased to offer you X price on our product.鈥
Buyers will happily push back against an organization when they hear 鈥淲e have a great price for you.鈥 They have a harder time pushing back against you as a person when you say, 鈥淚 have a great price for you.鈥
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3. TRY: CAN I BOUNCE A FEW THOUGHTS OFF YOU?
鉂 When a buyer raises any issue during negotiations, don鈥檛 counter with 鈥淚 have the perfect solution鈥 or 鈥淐an I make a suggestion?鈥 Those phrases put buyers on the defensive.
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鉁旓笍 Before offering a solution, use this phrase: 鈥淐an I bounce a few thoughts off you?鈥 It creates genuine openness in the buyer, so they want to hear what you have to say.
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4. SAY SORRY, BUT ONLY IN THIS SITUATION
鉂 Apologizing is a great tactic, just don鈥檛 ever apologize for your actual price. As in... never say, 鈥淚鈥檓 sorry the price seems high to you.鈥
鉁旓笍 Use apologies in negotiating phrases like, 鈥淚鈥檓 sorry. I want to offer you that number, but I鈥檝e been told it鈥檚 not doable.鈥
If you apologize for the price, the buyer feels justified in balking at it. But using sorry in negotiations creates a mutual sense of empathy, and buyers will accept your final offer more easily if they empathize with your position.
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5. USE THE 鈥楩鈥 WORD
Before you鈥檙e too shocked to read on, we mean the word fair.
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鉁旓笍 Top performers use the word fair ~1.7x in each deal. Average and low-performers - Just 0.2x.听
Use a phrase like, 鈥淲ould that be fair鈥 in the end-stage of a deal to ask a question, handle an objection, get buy-in, or set the next steps.
Everyone wants to be perceived as fair, and be treated fairly. Say this word out loud to get agreement that it鈥檚 really happening. It鈥檒l feel good for everyone.
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6. ASK HOW MORE OFTEN
There鈥檚 nothing wrong with letting your buyer feel in control of negotiations.
鉂 So when they ask for four free months and a 12% discount, don鈥檛 say no.
鉁旓笍 Give them the reins by asking them, 鈥淗ow am I supposed to do that? How can I ask my CFO to give you 30 days AND erase the implementation fee?鈥
It puts them in charge. And if they can鈥檛 give you a decent answer, it makes your predicament clear and helps them understand your position.
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7. USE YOUR BUYER鈥楽 WORDS
鉂 Don't assume what your prospect is referencing
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鉁旓笍 People reveal more than normal when they hear their own words said back to them... as a question. And that鈥檚 what you want from them 鈥 more information so you know which strategies will win a deal.听
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It鈥檒l make sense when you read this:
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Buyer: Our reps don鈥檛 handle objections well. They always fumble the ball and it鈥檚 really frustrating.
- Sales rep: Fumble the ball?
Buyer: Yeah. They answer inconsistently, but we鈥檙e not sure why.
- Sales rep: Inconsistently?
Buyer: Yes, I suppose that鈥檚 my big-picture problem: All my sales reps handle their calls differently. I can鈥檛 get them to stick to the approved narrative or process.
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There you go. It鈥檚 everything you need to frame their problem and your solution. It elicits information from your buyer without directly asking for more information, which can sometimes make buyers clam up.
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Budget: Operation Expenses vs. Capital Expenses
Budget in any company falls into 2 main buckets: Operating Expenses (OpEx) and Capital Expenses (CapEx)
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Operating Expenses:听
These are the day-to-day expenses a company incurs to keep its business operational.
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These expenses must be ordinary and customary costs for the industry in which the company operates. Companies report OPEX on their听income statements听and can听deduct听OPEX from their taxes for the year in which the expenses were incurred.
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The following are common examples of operating expenses:
- Rent and utilities
- Wages and salaries
- Accounting and legal fees
- Overhead costs such as听selling, general, and administrative expenses听(SG&A)
- Property taxes
- Business travel
- Interest paid on debt
OPEX also consists of听research and development听(R&D) expenses听and the听cost of goods sold听(COGS). Operating expenses are incurred through normal business operations. The goal of any company is to maximize output relative to OPEX. In this way, OPEX represents a core measurement of a company's efficiency over time.
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Capital Expenses:听
These are major purchases a company makes that are designed to be used over听the long term.
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CapEx are purchases of significant goods or services that will be used to improve a company's performance in the future. Capital expenditures听are typically for fixed assets like听property, plant, and equipment听(PP&E). For example, if an oil company buys a new drilling rig, the transaction would be a capital expenditure.
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Executive Alignment
Bringing up and achieving executive alignment during a sales call is crucial for ensuring a successful and smooth sales process.
Some steps and strategies to help you handle and bring up executive alignment on a Sales Call:
ROI Calculator Template
馃憞 Below is a template for an ROI (Return on Investment) calculator that you can customize to suit your specific product or service. This template will help your prospects estimate the potential financial benefits of implementing your solution.
[Your Company Logo]
ROI Calculator: [Your Product/Service Name]
Instructions:
1. Enter your current data in the "Current State" column.
2. Enter your projected data after implementing our solution in the "With [Your Solution]" column.
3. The calculator will automatically calculate the ROI and other financial metrics.
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| Metric | Current State | With [Your Solution] |
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| Total Annual Revenue | $ | $ |
| Total Annual Costs | $ | $ |
| Gross Margin | | |
| (Revenue - Costs) | | |
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| Cost of [Your Solution] | $ | |
| Implementation Expenses | $ | |
| Training Costs | $ | |
| Maintenance Fees | $ | |
| Other Costs | $ | |
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| Net Annual Benefit | | |
| (Gross Margin - [Your | | |
| Solution Costs) | | |
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| ROI (%) | | |
| (Net Annual Benefit / | | |
| [Your Solution Costs]) x 100 | | |
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| Payback Period (months) | | |
| (Total Costs / Net Annual | | |
| Benefit) | | |
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| Breakeven Point | | |
| (Months until ROI reached) | | |
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[Additional Notes or Assumptions:]
[You can include any additional information or assumptions that were used in the calculations here.]
This ROI calculator is intended for informational purposes only and should not be considered financial advice. Actual results may vary based on specific circumstances.
For a personalized ROI assessment or to discuss the potential benefits of [Your Solution] for your organization, please contact us at [Your Contact Information].
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Running a pre-sales workshop template
Pre-sales workshops are a great way to engage with prospects, understand their needs, and showcase the value of your product or service. Here's a template you can use to outline the agenda and key details for running a pre-sales workshop.听
Pre-Sales Workshop Agenda听
AGENDA
Prospect security questionnaire
Instructions: This questionnaire is intended to gather information about your organization's security practices and protocols. Your responses will help us better understand your security requirements and ensure that our products/services align with your needs. Please provide detailed and accurate information for each question.
Thank you for taking the time to complete the Prospect Security Questionnaire. Your responses will help us tailor our offerings to meet your security requirements and ensure a successful partnership.
Please return this questionnaire to your designated contact at our organization or email it to [Your Email Address].
If you have any questions or require further clarification, please don't hesitate to reach out to us.
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Additional Resources:
