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

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Carl Dickenson
Sales

Cutera

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.

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Director, Global Field Readiness

Originally, we launched a RFP to partner with a sales training provider to improve the sales skills of our global distributor network. LSA Global challenged our thinking by suggesting we focus on the systemic strategy, culture and talent factors that create sales success before we invested in the more symptomatic needs of sales skills and knowledge. LSA Global identified the two strategic actions to improve overall sales performance and then designed and delivered world class sales training across the globe to help increase revenue and margin.  I’m so happy we took a more strategic approach to sales performance.

Kim Benson
Director Human Resources

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The sales strategy and goal setting session was right on target. It was a very valuable process that I highly recommend to any sales team.

Phil Rosenberg
Senior Vice President of Sales

We value the relationship we have had with LSA over the years. LSA has delivered top quality solutions when we needed them. They pay special attention to ensuring the content fits our current needs and that the facilitators are familiar with our business and culture. I would recommend them to anyone looking to greatly improve the skills of their sales force.

Carol M. Harbin
Manager, Worldwide Sales L&D

AMD

We engaged with LSA Global to help our team identify opportunities to accelerate our commitment to sales excellence as “The Service Revenue Performance Company” in our market place. The facilitator’s shared passion for our goals created a foundation for sales skill adoption, as did LSA’s keen understanding of our unique business environment. This insight allowed LSA to deliver customized business sales training workshops which were adapted to reflect our specific business dynamics and provided our employees with the models and tools to leverage on every call with customers.

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Director Client Delivery

Service Source

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

LSA was instrumental in making our worldwide sales meeting a success. They saved me a ton of time by recommending ‘best in class’ vendors to meet our business objectives. Whenever I’m in a pinch, I can count on LSA’s dynamic team of sales trainers and consultants to really go the extra mile. They truly understand the meaning of customer delight.

Amy Walker
Manager

Seagate

For the past 5 years LSA has consistently delivered top notch value to Seagate’s Corporate University Program. The level of facilitator involvement and continuous program evolution has kept the sales negotiation training content and lessons engaging and relevant. We look forward to working with LSA in the future.

Geoff Purnell
Sales Executive, Seagate Data Recovery Services

Seagate

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 our expectations. They really understood our business and delivered within tight time frames.  They were the best I have seen for this type of complex, visible and strategic work. 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 strategy and strategic execution to the next level.

Rob Sturgeon
EVP Client Delivery

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.

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Assistant Vice President Talent

L'Oreal

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

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’s customized Effective Presentation Skills program has helped me elevate my presentation skills to the next level. I now have a much greater self-awareness of my presentation skills and can leverage off of my strengths while working to improve upon other areas. I would definitely recommend this solution to anyone for whom business presentations are an integral part of their job.

Jim Elliott
Senior Marketing Manager

Samsung

The sales negotiations training program was awesome. The facilitator was excellent. We are immediately able to see the relevance and apply it to specific needs at Blackhawk. The preparation and energy was very apparent. The facilitator did a great job keeping the class engaged for the entire day and focused on what mattered most to our success. I am very pleased with the results and like the very relevant and applicable sales negotiations tools. Great job.

Jack Lord
Vice President of Sales

Blackhawk Network

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