How To Pro-actively Manage Your Opportunities

If we are looking at the sales process, it actually starts much earlier than the actual sales cycle. Initially, at the customer's there is usually a project idea, some problem that he wants to solve, some challenge that must be addressed with a project. After that, the project idea is internally assessed at the client's.

Transcript

Hello, this is Armin Rau, founder of Armin L Rau – opening doors. making you grow. And today’s video is about managing your opportunities, or let us say about the sales process and where your activity has to start, what is the most important thing when you are managing the sales process?

Now, if we are looking at this process, it actually starts much earlier than the actual sales cycle.

Because at the customers there is usually a project idea, some problem that he wants to solve, some challenge that must be addressed with a project. After that, the project idea is internally assessed at the clients.

So, they screen the idea and rate it according to certain criteria for example effect on profitability, the return on investment, cost benefit ratio, and so on and so forth. After this assessment, a project decision is made and the tender documents are issued, or produced.

The thing here is, we are talking about actually mega deals, large deals. And this is where you normally are entering into a bid process where you receive tender documents. After the issuance of the tender documents, you know the tender phase starts, and the tender ends actually with a proposal which is then evaluated by the customer.

After the evaluation, the customer normally they have a committee in these big deals.

They give a recommendation on whom to choose which provider should do the project. A decision is being made by the upper or top management. And then the order is taking place. And after that, it goes into realization.

Now, opportunity management and value selling, so selling of value in this whole process actually starts much earlier as you can see here. Then the sales cycle which starts with the tender.

You should actually be in contact with the customer already when the project idea is being developed.

And in detail this means the following, if you are looking at the sales process again and you are looking on one hand on the sales process and the development over time, and then the management attention here that you should give to this opportunity as a manager, either as a sales manager or as the managing director of your company, and also the management attention that the opportunity or the project will have at your customers side, you can see the following.

Well first, at the very beginning when the idea is being born, management attention at the customers is quite high, when it is assessed very, very high obviously because management wants to have the final word on that idea.

After that, in the sales cycle the intensity of top management involvement is very high at the beginning when it is being set of tracks. When the kickoff is taking place, it goes then down through the operations of the buying cycle on their side, and goes up again when the decision is being made towards the end.

And in the implementation phase, we have got a similar curve. Now, the normal sales cycle of many, many companies take place here, which means that they are actually late and urgent.

They get the tender, they have not had any influence before, there was no intense contact and they can just be reactive. The better way of addressing things is actually to be proactive and important, and that is what opportunity management actually means.

So, what you have to do as an account manager, what you have to make sure as a managing director or head of sales is that you are involved very deeply in the early phases of ideas being produced. And that can only be done by having regular contact with the top management of your client. Because then you might even be involved in the production of the idea. And then you might even be involved in producing the tender document.

And that will increase your chances of winning the deal in the end much, much, much more. So, what have we learned today from this session? First of all, opportunity management starts much, much earlier than the actual opportunity is being communicated to many companies. You as a manager or account manager or managing director you have to make sure that you have got constant contact with your customer so that you can share ideas early on that help in the production and the generation of these ideas.

And you actually have to avoid to be late and urgent and reactive, you would rather be proactive and important. That was (Almond Raoul?) from (Almond & Raoul?) Opening Doors Making You Grow, for today on the important setup of managing an opportunity. I look forward to your comment, please leave a comment underneath this video. And if you like click on the blue button to book a private session with me, it is completely free. And I would be more than happy to exchange my point of view with yours. Thank you very much.