How To Sell Six Sigma

Make Your Sales Funnel Flow Faster
How to Sell Six Sigma

to Sales and Marketing
ASQ Section 1201 Dinner Meeting

March 2006
Agenda
Sales Process Improvement Results
Sales Website
Technical Services Company
Sales Website:
Technical Job Candidate Resumes
Employees
Looking for technical/managerial jobs
Provide resume information
No fee charged
Employers
Looking for technical/managerial candidates
Pay a fee for resumes meeting their criteria
Sales Website: Original State

Rolled Throughput Yield (RTY):
RTY
= (yield of pricing page) X (yield of signup page) X (yield of
orders)
= .485 x .233 x .5
= .056
Process Financial Model:
Average visitors/week = 567
Average order value = $152.65
Revenue
= visitors/week X RTY X average order value
= 567 X (.056) X $152
= $4,826/week
Rolled Throughput Yield
Process Behavior Charts:

Before
VOC for the sales process itself
Process Behavior Charts:

After
Website: New State

New Rolled Throughput Yield (RTY):
RTY
= .084
Process Financial Model:
Average visitors/week = 567
Average order value = $196
Revenue
= visitors/week X RTY X average order value
= 567 X (.084) X $196
= $9335/week
Technical Services Corp.

Cost of Sales Operations
Marketing
Marketing Materials (collateral, website, etc.)
Marketing Outreach (promotion, speaking, PR)
Prospecting
Network functions
Marketing Total
$109,000
16,000
28,000
24,000
$177,000
Sales
Partner relations
New prospect sales calls with partner
New prospect sales calls without partner
Product demos & meetings
Proposal generation
Evaluation, close, admin, & contracts
Project planning & handoff
Sales Total
$ 43,000
11,000
41,000
36,000
32,000
34,000
2,000
$199,000
Service
Project management
Specifications
Development & testing
Installation, data migration & start-up
Training & support
Documentation
Account relationship management
Service Total
$1,502,000
$448,000
226,000
267,000
147,000
168,000
91,000
155,000
Cost Driver: Generating Leads

Leads
Created
Cost Drivers
Marketing Total
Partner Relations
Lead Gen. Total
Cost per Lead:
Total Cost:
$177,000
43,000
$220,000
260
$846
~$220,000
Leads
Qualified
Percent of
Leads
Qualified
Leads Not
Qualified
251
$212,346
$7,614
97%
Cost Driver: Selling & Closing

Total
Opps.
New prospect calls
w/ partner
New prospect calls
w/o partner
Demos & meetings
Proposal generation
Close, admin. &
contracts
Selling & Closing
Total
Cost per Opp:
Total Cost:
Opps. Won
Opps. Lost
$11,000
$41,000
$36,000
$32,000
$34,000
$154,000
251
$614
~$154,000
50
201
$30,700
$123,414
Rolled Throughput Cost

Number of Opps.
Rolled Through
Cost per Opp.
Total Rolled
Throughput Cost
251
50
201
$73,000
$293,460
$1,460
~$374,000
Rolled Cost per Closed Opportunity

Number of Deals
Total Cost
Total Cost Per
Closed Opportunity
Opps. Close
Ratio
50
~$374,000
$7,480
20%
Cost Driver: Generating Leads
Revised
Leads
Created
Marketing total
Partner relations
Lead Gen. Total
Cost per Lead:
Total Cost:
$177,000
43,000
$220,000
260
$845
~$220,000
Leads
Qualified
Percent of
Leads
Qualified
Leads Not
Qualified
54
206
$45,662
$174,193
21%
Cost Driver: Selling & Closing

Total
Opps.
New prospect calls
w/ partner
New prospect calls
w/o partner
Demos & meetings
Proposal generation
Opps. Won
Opps. Close
Ratio
Opps. Lost
$2,500
$8,900
$7,700
$6,800
Close, admin. &

contracts
Selling & Closing
Total
Cost per Opp:
Total Cost:
$7,300
$33,200
54
$615
~33,200
50
~$30,750
~$2,460
Rolled Throughput Cost

Number of Opps:
Rolled Through
Cost per Opp.
Total Rolled
Throughput Cost
54
50
~$234,450
~$18,756
$4,689
~$253,000
Rolled Cost per Closed Opportunity

Number of Deals.
Total Cost
Total Cost per
Closed Opportunity
Original Cost
Projected Savings
50
~$253,000
~$5,060
~$374,000
~$121,000
93%
What Value Does Your Company Create?
(And Distributors)
Sales and Marketing as a Production System
The Sales Process
Critical Step
Requires further analysis
Potential Wait States
Sales Action Plan

Opportunity Identification and Prioritization

Pareto Customers
Account Manager, Market
Manager, Sales Manager
Typical
Sales
Process
Develop Relationships with the Decision Makers and

the Influencers at the Customer Base
Account Manager, Application Engineer
Determine sales channel

Account Manager,
Distribution Manager
Define **Customer Base

*Account Manager, Sales
Manager
List All Current & Potential SD

Opportunities on Machines
List Machines at the Customer Base

Pareto Opportunities Based on Product Fit, Financial

Return, Resource Availability, Relationship, etc.
Account Manager, Market Manager, Product Manager,
Application Engineer, TST
Choose Opportunities which Equate to

Established ***Growth by Product Goals x2
(Based on 50% win rate)
Account Manager, Market Manager
Strategy Development
Determine Specification of component(s) for the
proposal (output of the strategy)
Application Engineer, Product Manager, TST
Component
Modification
Develop Strategies, using Strategy 101 as a base, to begin the

process of turning the Opportunities into Wins.
Account Manager, Application Engineer, Market Manager, Product
Manager, TST
Proposal Creation
Develop Commercial aspects of the

proposal (output of the strategy)
Price Planning, Account Manager
Create Proposal to Win

Application Engineer, Account
Manager
No
Yes
No
'A' Need?
Yes
Yes
Yes
No
B or C needs,
move to Inquiry
Process (price
etc.)
Application
Engineer
No
MTT
Approval?
Succesful
Negotiation?
Meet BU Financial
Goals?
Quote Central
No
Negotiate w/BUs
Price Planning, Account Manager
Change and improve based

on customer feedback and represent
Account Manager, Application
Engineer, Market Manager,
Product Manager, TST
Yes
A needs, begin
PDLP Process
Product Manager
Initiate
win/loss
Acct Mgr
Present Proposal
Account Manager, Application
Engineer, Market Manager,
Product Manager, TST
Customer
Accepts?
No
Yes
Yes
Is an Application
Review required?
Load Forecast
Market Analyst
Load Price(s)
Quote Central
Monitor Customers
Prototype Progress
Account Manager,
Application Engineer
Application Review
Application Engineer,
Account Manager, TST
Yes
Celebrate
Team
Update
win/loss
Account
Manager
Initiate 'B' or 'C' needs

Inquirie(s) (proto,
production)
Market Specialist,
Adjust Component(s) based

on Review
Application Engineer,
Account Manager, TST
No
Will Customer
Accept Modified
Proposal?
Changes?
Complete
win/loss
Account
Manager
Finite specification detailing

and prototype coordination
Account Manager, TST,
Yes
No
Verification
The Problem:
Buyers are From Venus
The Problem
Prospects focus on what they want.

The buyers journey describes their
efforts to solve their problems.
Motives of buyers and

sellers may repel each
other.
Sellers are From Mars

The seller focuses on what they want.
The Sales Process is preoccupied with
their activities and goals.
The
Solution
Design the sales
process to help the
buyer move through
the stages of their
journey.
ROI realized across enterprise

better, cheaper, faster
organization.
Baby Steps for Enterprise Relationships

Enterprise
Enterprise Software Shared data =>

ROI in form of better, cheaper,
faster organization.
Confidence in solution
Phase 1
Customized solutions (templates)

for specific problems,
resulting in better data
and decision making.
Consult
Small software
application that helps
part of the problem
Little Module
White Papers and

Auto-responders
Google Ad,
Landing Page
Public Speaking
Advertisements
White Papers
Website
What They Get
Direct Marketing, Nurturing,

Qualifying, and Hand Offs
Handoff
Customproposals
PQR
Sitevisit,assessment
Qualificationcriteria
MNO
Telephoneinterviews
Relationshipnurturing
JKL
Conferences,seminars
Landingpage,optin
GHI
Multistepdirectmail,email
DEF
Articles,speakingengagements
ABC
Map Your Sales Process

Finding
Keeping
Gaining
Information System
Market
Planning
Metrics
Objectives
Market/Comp
Analysis
Assess
Account
Inquiries
Plan Account/
Opportunity
Hand-Off
Orders
Deliver
Service
Vertical/Product
Focus
Develop
Relationship
Manage
Relationship
Collateral
Reach
Decision Maker
Review
Relationship
Publicity/
Promotions
Present
Solution
Column
Column inches
inches
(media)
(media)
## Inquiries
Inquiries or
or leads
leads
## Accounts
Accounts assessed
assessed
Assessment
Assessment scores
## Presentations
Presentations
Orders
Orders booked
booked
Customer
Customer sat.
Accounts
Accounts receivables
receivables
Addl
Addl opportunities
opportunities
Happy Cust
Sales Process Defined

Organizational Sales
Process
Individual
Sales Process
Selling
Skills
Plan for coordinating the people

and resources needed to reach
business objectives
Sequence of tactical goals

used by salespeople, such as
qualify, demonstrate,
propose, close, etc.
Listening, asking questions,

handling objections,
negotiating
Marketing vs Selling Chasm

Marketing
Sales
Typically Challenges
Sales and marketing people resist the changes
Marketing and Sales not aligned
Cultural Assumptions:
Competing sales reps
Sales reps picking the shiniest leads
Best accounts go to the best sales reps
Root causes rest in the mind of the CEO
Harvard Business School: Case Study Method
Current State of Most Organizations: No Control
Traditional Approach: Work Harder!
Find
Win
Keep
Large
Effort
Diminishing
Return
Sales Process Improvement: Reduce Variations
Find
Win
Keep
Less
Effort
Leveraged
Return
Additional Project Examples:
$5.5M annualized revenue in 23 new

customer accounts
Reduced defects in pricing by over

70%
Revenue increased $2.6M, costs

reduced $2.9M
Received a 200%+ ROI on Six

Sigma investment, excluding
additional revenue
Increased effectiveness of dealer

organizations
More Information: Please provide your business card!
www.salesperformance.com
August 2006

How To Sell Six Sigma

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Make Your Sales Funnel Flow Faster