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

LSA Global has been a great partner in helping us move toward being “the leading developer of talent in the service performance management industry.” I have engaged LSA to help develop best-in-class programs in the areas of: Executive On-boarding, Manager Training, Sales Training, Employee Engagement and Instructional Design. They have consistently met or exceeded my (very) high expectations and are always responsive to my needs.

Mike Normant
Senior Director, Training & Development

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

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.

Grant Clarke
Director Client Delivery

Service Source

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.”

Kevin Wiley
Chief Operating Officer

Nelnet

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 originally engaged with LSA Global to help our subcontract administrators and buyers develop better negotiations skills. As manufacturers of satellites, we have many sole source companies to procure the required parts.

Our teams must be able to interact effectively with international companies. This environment uniquely challenges our team in their ability to create equitable contracts, while preserving and strengthening our supplier relationships.

LSA Global not only provided our team with the skills to negotiate effectively and consistently, but we further expanded our relationship to include consulting around our negotiations’ process, measurement of our negotiations, and one-on-one coaching for our team members. We are very pleased with the result of our partnership with LSA Global.

Vivian Mackintosh
Vice President of Materiel

Space Systems Loral

ServiceSource has relied on LSA Global’s expertise for a variety of core initiatives, from strategy design and implementation, to business 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

This was our first experience working with LSA, and we were not disappointed. From beginning to end, they were as invested in making sure the program succeeded as we were. They not only met the needs of our organization, but they helped us meet our very tight launch deadline. The consultant operated with the sense of urgency necessary to ensure that by the end of the training the trainer sessions we were ready to roll the program immediately out. Without their dedication and expertise we would not have been able to launch the program with the success that we did. Thank you LSA for being a valued business partner!

Erin Surprise
PHR, Manager - L & D

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 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

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

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

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

Trimble

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