New Masthead with new Head shot 
October 2012
Issue: 68
The Anatomy of a $140,000,000 Sale

 

One of my Trust Triangle Selling workshop attendees has been working on a key strategic sale.  I have been consulting with him for some time, and am happy to report that he recently closed a $140,000,000 sale for technology, software, services and support.  Congratulations to the Superstar I will call "Ted".  

 

Let's call Ted's company ABC Corporation and his large, U.S.- based client ACME, fictional names in the interest of discretion. 

 

Thinking that TTS newsletter readers would find value in learning how this deal closed, I thought I would share my interview with Ted.

 

Dan: Ted, congratulations!  Can you please summarize the magnitude of this transaction?  

 

Ted: The total value of the deal for ABC Corp is approximately $140,000,000 and was for a combination of product, software, service and support. What makes it especially remarkable is that it is a five-year exclusive deal for ABC Corp with a significant amount due upfront.

 

Dan: Tell our readers how you were able to get a large payment upfront.  

 

Ted:  It really comes down to understanding what made sense for their finances. We were flexible and customized the payment plan around what ACME's senior financial executives needed to drive some specific financial requirements they had. We met with them, determined what they needed and customized the proposal.

 

Dan:  Help our readers understand how you were able make this deal happen?

 

Ted:   These types of major, strategic long-term exclusive deals need a few key ingredients. It really starts with what you emphasize in your workshops and book: Trust.  We were definitely on the right side of your Trust Triangle with this customer. In my case, that trust was developed over a long time thanks to the excellent work by many at my company: from the technical consultants who work with the customer on a day-to-day basis to the previous sales representative and to the executives in my company. Each helped to build a foundation of trust and a track record of exceeding expectations.  I simply took what they had accomplished to the next level.

 

Research Strategic Initiatives  

Next, I would say that I did extensive research on ACME outside of the department level where many reps typically focus. I really zeroed in on their key corporate initiatives along with the personal needs of several of their key senior executives.  We could have continued our product focused, business relationship's status quo, but I knew we could do much more, so I kept digging.  

 

Predictability

I discovered that the CIO needed to lock in and drive predictability in his budget. Many reps don't understand how important that is for many executives. No one likes surprises and often times budget dollars can be "stolen" by other departments.  In essence, we were doing him a favor.   

 

Technology as a Strategic Weapon

Technology changes rapidly and demand continues to rise. My client uses technology as a strategic differentiator in positioning offerings to their clients, so they must stay current.

 

Efficiency & Cost Reduction

ACME's standard buying approach had been to maximize the specs on what they bought. This was because both the vendor and customer never could be assured that ACME would be able to "refresh" the technology so they tended to "over-buy". Over time, that leads to the analogy of buying a Lamborghini to drive up and down the driveway. It was wasteful when a lesser product could do the job just as well. I was able to gain a lot of credibility by helping them with what was right for them  and NOT necessarily what was right for us. That meant that in many cases I had to tell them that they really don't need the biggest and best horsepower.

 

ROI  

Finally, I understood that ACME is driving business decisions and needs to see a strong ROI on all investments they make. We helped them obtain a 30% ROI on our project. 

 

Once I had a firm grasp on these key requirements, it was clear to me that we could craft a strategic agreement that would really help them.

 

Dan: What were the keys to making the deal happen?

 

Ted: Well, I would say that you have to have executive sponsorship on both sides. On our side, I recruited our Chief Legal Officer. I have found that selling inside your company can often times be more daunting than working with customers. You really have to have someone who can tackle internal corporate issues, yet have tremendous credibility with your customer. My sponsor really helped by allowing me to focus on the customer while he worked with my management and the executive sponsor within ACME to fight internal battles.

 

At ACME we had key senior executives in Finance and Technology pushing the ball forward for us. We were able to get their buy-in because we offered a highly customized proposal to address their key initiatives.

 

Beyond the executive sponsor you also have to assemble the rest of the team to insure you have A+ players who are all dedicated to the success of the project. My team worked overtime to help me to more clearly understand ACME's business and technical requirements. This was definitely not a one man show and it did not happen overnight.

 

It was also important to help everyone shift their headset from a transactional mode to a collaborative one. I had to convince the customer that we could be much more than a "Vendor", and I had to convince my team and ABC that we are not in this just to win another order.  Rather, we truly were seeking a strategic partnership, a transformational way of doing business, where we could help them to reach their goals. Easy to say, but the hard part is living it every day. We were really fundamentally changing the way we work with our customers.   

 

You know, looking back, one thing that struck me is that in nearly every one of our meetings, we did not mention one thing about our product, its software features, and functions. It really is selling at a much different level. It's really fun!

 

Dan: How will you measure your success of this strategic partnership?

 

Ted: Good question. Measurement and incentives were important to both ACME and ABC. We will be using this partnership as a template for others to emulate at ABC. I totally agree with GE's Jack Welch when he said, "Measure it and it will improve."  We have regularly scheduled meetings built into the partnership agreement. They will be sharing their strategic initiatives with us. We will be helping them optimize our technology to help them meet their goals. We will have a quarterly report card that will be put in place. Additionally, to ensure ACME knows we have a commitment to their goals, my team and I have our compensation based in large part to our performance as graded by ACME.

 

Dan:  What recommendations to TTS newsletters readers do you have to help them drive strategic deals in their key accounts?

 

Ted: Embrace the non-technical side of the sale. Get outside of the box. Provide a unique approach to solving the customer's problems. Understand the financial and business challenges of the customer.  Let me give you some specifics. After I did a great deal of research I came to their executives with this message:

"Last year ABC sent 270 invoices to ACME.  Each year, both of our companies waste tens of thousands of dollars spinning our wheels and deploying our resources managing unproductive paperwork."  I actually calculated what ABC and ACME spend each year on this highly transactional relationship. It was huge.  I then said,   "There are lots of inefficiencies on each side. Let's agree to take the first steps to explore an innovative, strategic relationship that would allow both our teams to focus like a laser beam on helping you reach your strategic initiatives."   

 

I then recruited their senior executives to sponsor and assist. I told them, "I need your sponsorship to make this happen. Some in your organization may resist change, but we have to convince to team to stop overbuying."  

We then put a strong business case together that was tied directly to their key strategic initiatives. I don't know any CFO worth his weight who would not embrace this kind of engagement.

 

You know, once you see the world through the eyes of the people who cut the checks and position your offering to meet their needs, the opportunity grows exponentially.   

 

 

Dan: Can you share some best practices that you utilized that were particularly helpful in moving the deal over the goal line?

 

Ted:  Sure, I can truly say that many are from your book and workshop, including The Critical Event Timeline.  Using that simple tool was particularly helpful. We had everyone using that tool to make things happen on time.   I felt I was the orchestra leader and the sheet music used by all the musicians was the critical event timeline.  It made sure everyone did what they needed to do, and on time. They all made music that sounded great and made me look like a pro. It was biblical.

 

I used the Trust Triangle like a compass to help me  determine what message and tools I should be using with each key player.

 

I made use of your "Change The Game - Expand The Pie" strategy.  They had initially teed up a highly competitive project that would have been a few million dollars. I was able to show them how a much larger, more strategic project was in their best interests.

   

I used best practices on establishing and selling value. I used the Strategic Enterprise Presentation that really helped their senior executives see the vision.

 

Your negotiation best practices were used to construct a final deal that was truly a win-win for ABC and ACME.  We also used the Negotiation Trade Matrix.

 

I used many of your letters, like the Close Plan Letter and of course, I was really happy to use the Win Letter.

 

Dan:  Is there any other advice or thoughts for our readers?

 

Ted:  Yes, My strong recommendation would be to consider a strategic partnership for any of your clients where you have a proven track record and trust. 

There is no downside to selling like this. Once you have sold like this you will NEVER go back to selling transactionally with a product focus. I think it is important for your readers to realize that even if the deal did not happen, there was absolutely no down side for us. We gained a tremendous amount of trust with their senior executives simply by showing that we understand their challenges and were trying to help them.  

 

Also, it's really important to take care of those who helped me. My team members would fall on a spear for me or the customer. It is really important to give praise, recognition and attention to those who helped me.

 

Dan:Ted, are you going to retire now?

 

Ted: Absolutely not. As you know, the real work is just beginning. I have commitments to meet and will be busy ensuring that my client's expectations are exceeded. Besides, I love my job! 

 

Dan: You really are a Superstar. Congratulations! 

 

 

Dan Adams, Adams and Associates 

PS For Dan's previous TTS Newsletters click HERE.  

 

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Trust Triangle Selling Unveils The Sales Strategizer-Pro™, the First Deal-closing Application for the iPhone and iTouch.

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Dan's book won a Medal
from Sales Books Awards!

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For more information on Dan's book go
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 Building Trust, Growing Sales
How to Master Complex, High End Sales Using The Principles of
Trust Triangle Selling™

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Daniel Adams
Adams and Associates
263 Barefoot Beach Blvd. Suite #405
Bonita Springs, FL  34134
630-215-5090

Email: [email protected]

Web:  www.trusttriangleselling.com


Copyright � 2007-2012 Adams & Associates. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Adams & Associates is prohibited and strictly enforced.

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