Demonstrating Sales Negotiations ROI in a Highly Competitive Market

Demonstrating a Return on Sales Negotiations for a Transportation Company

Client Case Study

Situation

With over $5 billion in annual revenues, Ryder is a world leader in supply chain and transportation management solutions.  The company’s 30,000 employees work with clients in three primarily business segments:

  1. Fleet Leasing and Maintenance
  2. Dedicated Contract Carriage
  3. Supply Chain Services.

The company completed a multi-year restructuring program that resulted in a more streamlined approach to every facet of its business.

 

Complications

Operating in a highly competitive market, the company’s organizational focus after the restructuring was growing top line sales, growing margin (particularly on national deals) and increasing customer retention.

A formal Negotiation Needs Analysis identified the following issues that impact Ryder’s ability to achieve their business goals:

  • More sophisticated buyers
  • Incomplete analysis and preparation for deals
  • Tendency to “shoot from the hip” rather than use a fact-based approach
  • A large “inventory” of legacy deals where value had been given away
  • No definition of a “Great Deal” for Ryder
  • Little autonomy by the field in closing deals
  • A good sales process in place but no formal organizational negotiation process
  • Cross-functional areas acting independently, each with its own goals and objectives (often at odds with achieving a “Great Deal” for Ryder)
  • Lack of training and process implementation and reinforcement

Approach

In order to address these key issues, we recommended to Ryder that rather than just run a series of training events, it implement a cross-functional, organization-wide Negotiation Solution.

Focusing on the “big picture” business results that Ryder was looking to achieve, the Ryder negotiation strategy was developed by gathering key representatives from the Executive Team, Sales Management, National Account Sales, Legal, Pricing, Human Resources, Finance and Marketing. The first step was to identify and agree on what measurable results would signify a successful initiative, and then develop the key actions to produce those results that included:

Approach (cont)

  1. Strategic Clarity: Defining a common goal or organizational negotiation strategy linked to the company’s sales strategy
  2. Process: Agreeing on a common negotiation process integrated with the sales process including:
    • A SWOT form for every deal over $500K
    • Collaboration meetings with Legal, Pricing, Credit, Lease Finance, and appropriate Senior Management will be held for every deal over $1,000,000 prior to an offer being submitted
    • Negotiation process language being incorporated in the scorecards of each Managing Director of Sales, Regional Director of Sales, Director of National Accounts, and Director of Business Development
    • Completing a Consequences of No Agreement “gap” analysis of value propositions before reacting to competitive pricing
    • Incorporating the methodology of Multiple Equal Offers in every proposal
    • Including Fuel and insurance in at least 1 MEO for every deal
    • Not agreeing to concessions but, rather, trading for something of greater or equal value
  3. Performance Coaching and Skill Building: Skill development combined with coaching process implementation
  4. Impact and Accountability: Measuring results and continuously improving

 

Results
In twelve months:

  • $13.4M in incremental revenue
  • $3.2M in incremental incremental operating profit
  • 109% increased average closing ratio
  • 17% margin improvement
  • 271.5% return on investment

Related Information

We recently hired LSA Global to help take our sales team to the next level. Specifically we focused on targeting the ideal client, differentiating our solutions, getting more qualified leads, and closing a higher percentage of our pipeline through a proven referral selling methodology.

So far, the results from the business sales training have been great. We were pleasantly surprised with the results-oriented approach and thoughtful follow-through plan to ensure that the new sales practices “stick.” We look forward to a long-term relationship, and I would recommend LSA to anyone looking to increase the effectiveness of their sales force.

Patrick Arnold
President

Filice

ServiceSource has relied on LSA Global’s expertise for a variety of core initiatives, from strategy design and implementation, to sales skills, to sales coaching. We recently engaged LSA Global to create a competency matrix for our inside sales team that will serve as our roadmap for employee on-boarding, development, succession planning and retention. This project had a tight timeline with high visibility. LSA Global completed the deliverable ahead of schedule and surpassed our expectations.

PMO and Outside Sales Operations
Senior Vice President

Service Source

We engaged with LSA Global to deliver a sales territory planning and management workshop. LSA Global had a unique ability to quickly understand our business and needs. This keen understanding allowed for tailoring of content that was specific and impactful, which created a new awareness of how one’s role and how and with whom one spends their time, can directly influence sales success. Their facilitators were well prepared and ingrained themselves to become one of us. We’ve come to see LSA Global as a partner.

Pratiksha Patel
Assistant Vice President Talent

L'Oreal

In an effort to establish a solid foundation of consultative selling skills for our client-facing teams that can be built on over time, we engaged with LSA Global. By understanding our business and our markets, LSA Global was able to develop and deliver the relevant skills, tools and processes that have established the foundation for our future success. We are very satisfied with our decision.”

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Chief Operating Officer

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Samsung

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Senior Vice President of Sales

We turned to LSA Global to help us take our executive selling and solution selling skills to the next level, which will ultimately help our customers succeed. Their ability to formally assess our situation, identify key sales skill gaps, develop a plan to measure the results, and fully implement a key sales initiative – has been outstanding. LSA delivers the full solution; not just sales training and I would recommend them to any organization looking to transform its sales force the “right way” to sell higher and wider.

Daniel Heckman
Director of Sales-Enterprise Accounts

Avid

The introduction and continuous reinforcement of the MEDRAD objectives, vision, and mission was very impressive. By the end of the session, a large majority of the audience understood and was openly able to verbalize these items. LSA did a wonderful job introducing the importance of sales coaching and reinforcement and was able to keep the groups focused.

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National Manager, Telesales

Originally, we launched a RFP to identify and partner with a sales training provider to improve the skills of the sales teams in the distributor network. However, throughout the process, LSA Global challenged our thought processes and engaged with us by suggesting that we focus on the systemic factors that create a high performance environment first, before we focused on the more symptomatic needs of sales skills training. LSA Global has identified the two strategic moves that will enable us to create a high performance environment and we continue to seek their guidance on implementing those moves, as well as other key needs.

Kim Benson
Director Human Resources

Trimble

We wanted our Channel Managers to get strategies and tools that would increase partner revenue and strengthen partner relationships. LSA Global’s ability to quickly understand our business and to bring experienced and proven resources to the table created credibility with both the executive and sales team. We look forward to continuing our partnership with them.

Chip Whitman
Channel Excellence Manager

Thermo Fisher

We recently hired LSA to help us take our client delivery methodology to the next level as we continue to grow and help our clients succeed. The custom strategy and design session exceeded my expectations. They really understood our business and turned around the project within a tight timeframe. LSA’s consultants were the best I have seen for this type of project. LSA’s ability to get a group of 20+ executives from around the globe on the same page, push their thinking to new heights, and ensure an executable plan was excellent. I would recommend LSA to anyone looking to take their plans and execution to the next level.

Rob Sturgeon
EVP Client Delivery

Service Source

LSA is an excellent training outsource partner! They listen to our needs, are responsive and work at a pace that keeps up with ours. We have found LSA to bring strategic and innovative solutions to meet our business problems by partnering effectively with our staff. I consider them to be an external extension of our team.

Wendy Chinn
Sr. Director, Global Sales Enablement

LSA Global’s negotiation training assessment and workshop provided sales negotiation tools and practices that have significantly enhanced our negotiations process. Their facilitators understood our business, its challenges and framed the learning in a way that we understood. I am very happy with the value we have received from this program, and would highly recommend LSA to others looking to improve their sales negotiations results.

Jeff Bizzack
President

Service Source

Seagate has always found LSA to be a valuable resource. LSA delivers top quality solutions when we need them with just one call. The recent business sales training programs they’ve delivered for Seagate University have been the right solution, highest of quality and customized to our business and culture. I would highly recommend LSA to any company interested in offering top notch learning solutions.

Tammy Dujmovich
Sales, Marketing & Customer Service

Seagate

We partnered with LSA to help custom design, deliver, and measure an advanced new employee on-boarding and measurement process. The process was well thought out and bought into by sales leadership. The combination of targeted sales tools, technology, coaching, performance plans, training and reinforcement made all the difference.  The pilot program in EMEA was a big success and the solution quantifiably improved new employee and hiring manager satisfaction and increased the speed to sales quota for new hires. We are continuing to work with LSA Global to scale the program in other GEOs and expand to cover more roles at VMware.  I would recommend LSA Global for any sales enablement team looking to increase the engagement and speed to productivity of their sales force. We are excited to implement the program globally across VMware as we continue to scale.

Rochana Golani
Director, Global Field Readiness

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