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KloudReadiness, LLC Confidential 1
Thi Ph t b U k A th i li d d CC BY SA
Session objectives
Focus on sales model, process and compensation.KloudReadiness, LLC Confidential 2
Deeper development of D&H partners subscription-based monthly recurring revenue sales framework.
1
Ensure that D&H partners achieve subscription-based revenue and margin goals.2
3
Why move or accelerate now?
KloudReadiness, LLC Confidential 3
1. The shift…2. The inhibitors…3. The outcomes…
The revenue and profit shift is on
2016
8%
2017
12%
2018
16%
2019
21%
2020
25%
KloudReadiness, LLC Confidential 4
35+%
Packaging and pricing not linked to objectives…
Marketing approach not capable of velocity required…
Sales model and compensation not aligned to strategic business growth…
Financial impact not understood, nor modeled…
No strategy or plan in place with an owner identified…
Sales
StrategyGo-to-Market
Marketing Financial Criteria
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The big six (6) inhibitors
Many partners believe they are “ready”…
Empower you to Disrupt or ultimately be Disrupted
Adapt to capture today’s & tomorrow’s opportunities
Apply education and KloudReadiness digital platform experience to enhance partners subscription productivity
Advance and grow subscription revenue by identifying and aligning you with D&H Distributing and Microsoft’s Cloud solution-stack
Business Acumen
Digitization
Line of Business
Business Model
Sales Model
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The desired outcome and stateStrategy: Accelerate Revenue by Transitioning
Partners Business Models to Drive Subscription-based Cloud Solutions
The trap awaiting us
The biggest factor that needs to be considered and overcome is commitment…
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Are you ready and willing to create and develop a true recurring revenue friendly business?
Building business & sales strategy
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1. The What…2. The Why…3. The Where…
Create a business within the business…
Strategic direction
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Microsoft Cloud Stack via D&H Distributing…Concentration
Bundle Packaging & pricing your solution-stack…
Market Segment
Healthcare vertical applications…
Focus on net-new logo acquisition…
You make 3 sales to each prospect
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Sale 3 – Why change with you?
Sale 2 – Why change now?
Sale 1 – Why Change?
SALE
Today’s session
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• Will our current model and approach need to be altered?
• Do we drive our current sales professionals to take on cloud?
• Who will transform and make the effort to succeed?
• How do we create a plan that drives them
Sales Model1. Peanut Butter Approach…2. Dedicated Specialists…3. Dedicated Team…
Sales Process 1. Pipeline Build…2. Close Velocity…3. Wash, Rinse, Repeat…
Sales Compensation1. First Month Upfront… 2. Pay like its Product…3. Partial Upfront + Monthly…
Digital sales structure verses traditional approachHigh-level thoughts:• Cloud and digital-based services require a different selling motion than traditional IT solutions…• Partners still need to be able to deliver services based on all deployment models, on-premise, private, public and hybrid
cloud…
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Sales model considerations
KloudReadiness, LLC Confidential 13
Subject Matter Experts help Core Team sell cloud
Dedicated sales professionals selling subscription-based solutions…
Marketing and Telemarketers setup appointments for… or close remotely…
Every sales professional sells everything…
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Sales model options & approaches
Subject Matter Experts are sellers of new
subscription-based business…
Focus on the Core
Incent – but don’t focusLimit Distractions
Eliminate confusion
Keep your current sales professionals focused on driving the core business
Sales model - recommendation
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Remove Compensation Issues
Dedicated
Create and resource a Tiger Team that is mission-based…
Potential Targets
Structured Cadence
Closer
Prospector
Will generate a 7 – 10 point increase in your close rate…
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The secret to increased productionYou close more when you specialize & narrow your focus
Account Manager
Increased Sales
Volume
Building business & sales process
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1. Consistent…2. Repeatable…3. Regimented…
Sales process – more and faster
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Your cloud sales process must be repeatable and address three (3) critical areas:
The new sales engagement model
CUSTOMERACQUISTION
CUSTOMER SUCCESS
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Traditional solution selling motion
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Cloud accelerated sales motion
KloudReadiness, LLC Confidential
Buy-In Demo
55% 30% 15%
AlignmentE-mail
Demo/TrialPlan
Proposal Summary
Proof30%
Solution15%
Close15%
Deploy100%
Qualify25%
Develop15%
Sales Strategy21
Cloud sales motion
Call #1
Docu
menta
tion
Marke
ting
Sales
Connect: 3 – 5 Days Confirm: 5 - 7 Days Convince: 3 – 5 Days
No
Marketing Lead
Proposal
Convince
Discovery Questions
Anchor Demo Scenes
Qualified
Proposal Presentation
Connect
Engag.Comms.
Alignment E-mail
Discovery Survey
Demo PlanQual.
Checklist
Anchor Demo
Confirmation Discovery &
Demo
Proposal Presentation
Project Lead Profiling BDM Profiling
Yes
Further Proof Required
Research
Confirm
Solution Demo
Yes
No
Nurture of Exit
Trial Plan
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3 – 5 call close
KloudReadiness, LLC Confidential 23Connect (1 – 2)
Convince (5)
Sales process – three (3) stages
Close
Proof
SalesProcess
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With the Cloud, cost of sales is important, margins are tighter and the number of opportunities is potentially much greater.
A solid process that provides consistent and ever increasing
velocity is vital
Qualification and
Discovery
Lead triage
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10% – 20%Active
Opportunities
80% – 90%Nurture
Marketing
ResearchYou must educate
Active selection processYou must profile & close
Courtesy of Neural Impact
High-velocity Sales Process… Knowledge and Marketing 2.0KloudReadiness, LLC Confidential 26
Bridging sales process and marketing 2.0
+
Building sales compensation plans
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1. Options…2. Ideas…3. Recommendations…
Typically the #1 InhibitorMost organizations do not have an appropriate subscription-based monthly recurring revenue sales plan
Sales compensation
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Sales compensation don’ts
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Expense and Operating Profit – where does a $ go?
KloudReadiness, LLC Confidential 30
Sales compensation principles
Engineering Cost
Service Administration Cost
Service Management Cost
Sales and Marketing Cost
General &
Administrative
Taxes & Benefits
Non-compensation Expense
Operating Profit
Your text hereBusinessModel Tenets The PlanObjectives
1. Book as much new recurring revenue as possible…2. Collect as much cash upfront as possible…3. Sign longer term contracts…4. Make sure customers are happy…5. Drive the maximum renewal rate…6. Drive expansion revenue with existing customers…
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Sales compensation - objectives
1. Align compensation with your business model… 2. Don’t overpay or create something unsustainable…3. Don’t become the bank….4. If you’re starting now, remember you’ll need runway…
a. Awareness pipeline opportunities dealsb. Value proposition segment solution-stackc. It’s an 8 – 14 month journey for most to become a digital athlete
The PlanObjectives BusinessModel
Tenets
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Sales compensation – alignment
1. On Target Earnings have to be competitive…2. Great reps must be able to make good money…3. Bad reps cycle out no incentives for mediocrity…4. Reps should be paid to love and service customers…5. Keep it simple everyone can explain pay plan...6. Your legacy plan won’t work…
Financial Success
BusinessModel Tenets The Plan
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Sales compensation - tenets
1. Leveraged (50% base | 50% variable)2. Base needs to be covered before commission kicks in…3. Think about paying ~2X commission…
a. One (1) accelerator – cash up front… 4. Variable paid upon receipt of cash…5. ACV quota $380K to $550K per sales professional…
Financial Success
BusinessModel Tenets The Plan
KloudReadiness, LLC Confidential 34
Sales compensation – the plan
Pay the 1st Months revenue as commission…
Pay commission upfront as if it’s a transaction…
Pay commission on a monthly
basis…
There are many options – know your strategy and growth objectives Sales compensation
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Pay % of commission upon close and remainder on a
monthly basis
Year 1: $78K
Year 2: $222K
Year 3: $366K
$1,000$2,000
$3,000
$4,000
$5,000
The rule of 78
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Year 1: $390K
Year 3: $1.83M
$5,000
Year 2: $930K
$10,000
$15,000
$20,000
$25,000
The power of the multiplier
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1. Sales Guide2. Sales Model Reference Framework3. Sales Plan Modeler
Final pieces – tools and process
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Plan
• Change model
1• Change sales process
2
• Change sales compensation plan
3
• Change marketing approach
4
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Summary – remember these
Mobile: (617) 851-4515Phone: (508) 747-0963Email: gmellor@kloudreadiness.com
Address: 124 Long Pond Road Plymouth, MA 02360info@kloudreadiness.com
Contact Us
.
KloudReadiness, LLC Confidential 40
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