This is the training that all of the SAP sales teams go through
so if you use this terminology, you will be using the same
language on deals and any interactions with the SAP sales
teams.
SAP Franchise Sales Methodology (FSM)
Summary – Customer Buying Process
Entry Criteria
Customer Management is not Customer Management Agreed Customer Agreed to Mutual Customer Acknowledges SAP Customer’s Evaluation Team Negotiations Completed and Final
Aligned to Existing Business Issue to Business Issues and that SAP Action Plan Offering and Agrees to Proceed Recommends SAP Contracts Delivered
can Contribute with a Written Close Plan (short
Customer Acknowledges listed)
SAP’s Unique Value
Key Milestones
Account Situation Analyzed Sales Team Setup Discovery Customer Buying Process Business and Legal Terms Contracts Signed – Booking
Confirmed in Writing and Conditions Package Submitted
Customer goals, needs, and/or Relationship Map and Executive Competitive Strategy Defined
business issues identified Alignments Identified Quote and Proposal Created Crawl, Walk, Run Options
Key Customer Relationship
Compelling Event Aligned with References Scheduled
Selection Criteria and Why SAP Established Customer CFO Review Meeting
Customer
Business Case Delivered
Competitive Landscape Well Solution Presentation
Understood Customer Received and Accepted
Final Proposal
Exit Milestone
Customer Acknowledged SAP’s
Customer Management Agrees to Customer Acknowledges SAP’s Offering and Agrees to Proceed Customer’s Evaluation Team Negotiations and Contracts Contracts Signed by the Customer
Business Issues and that SAP can Unique Value with a Written Close Plan (short Recommends SAP Finalized
Contribute listed)
Customer Agreed to Mutual
Action Plan
Deliverables
Account Map Opportunity qualified Executive Alignment Quote and Proposal Presented Proposal with Options – Crawl, Contracts Signed by the Customer
Walk, Run (SAP will
Compelling event Selection Criteria Obtained in Discovery Information Analyzed GAF Submitted Order Package Submitted
not request to view this
Writing
Strong Functional Fit Selection Criteria Refined from References Scheduled and document) Order Booked
SAP and Partner Sales Team Discovery Delivered Customer CFO Review
Use Cases Identified Established
Solution Demo and Business Business Case Delivered Meeting
SAP Unique Value Message Relationship Map Case Presented to Customer
Delivered to Customer Customer Proposal Delivered Confirmation of Written
Customer Agreed to Mutual Demo Dry Run Close Plan
Joint Close Plan Validated
Action Plan (Dates, Actions, Negotiations Completed and
Owners, etc) in Writing Competitive Strategy Executed
Final Contracts Delivered
Customer Acknowledges SAP’s Mutual Action Plan Updated
unique value SAP Global Partner Enablement
SAP Franchise Sales Methodology (FSM)
Virtual recordings of training sessions
Entry Criteria
Entry Criteria
Customer Management is not aligned to existing business issues
Milestones in Recognize
1. Account Situation Analyzed
2. Customer Goals, Needs, and Business Challenges Identified
3. Selection Criteria and Why SAP
Recognize
Consider Evaluate Select Negotiate Purchase
Recognize
Consider Evaluate Select Negotiate Purchase
Research Existing Customer or Prospect Start Initial Planning Around the Deal
• Research the Account situation as completely as possible, i.e. • How complex will the deal become? Products? Services?
in addition to talking to your contact(s), use research tools • Which experts will you probably need to involve?
(Google, LinkedIn, Hoovers)
• The nature of the business issue plus the complexity of the
• What is the competitive landscape? relationship map will tell you how complex the deal may
– Theirs: become. This first step in Deal Qualification is the basis for the
o Who are their main competitors? services you may request.
o Do those competitors have an advantage over your
prospect they need to overcome? Define SAP Unique Value
– SAP’s: • What is SAP’s unique value proposition with the customer?
o Which of our competitors is already active in the account? • Create SAP unique value by crafting messaging around
o Who else is trying to get their foot in the door? Industry and Solution expertise.
• What is creating the business need? Are there external • What is SAP’s industry expertise advantage? Leverage
factors? Industry Content site to create SAP unique value.
o What is the Compelling Event? • What is SAP’s solution expertise advantage? Leverage
• What is the sense of urgency? solution overviews site to create SAP unique value.
o What is the time frame for a purchase? • Set vision for SAP unique value so that customer is enticed to
insert SAP unique value into selection criteria.
• Click here to access customer success stories and value
propositions
Recognize
Consider Evaluate Select Negotiate Purchase
Recognize
Consider Evaluate Select Negotiate Purchase
• Identify additional Champions/Stakeholders • Continue the process of Goal identification by talking to every
stakeholder.
• What are the high level benefits of solving the issue?
• Turn value proposition into a question including a use case
Recognize
Consider Evaluate Select Negotiate Purchase
Recognize
Consider Evaluate Select Negotiate Purchase
• Weave in SAP unique value proposition to change the game and to • Customer Management refuses to see the gravity of the
have selection criteria geared towards an SAP solution. business issue although your first contact credibly confirmed
that the business issue does exist and will significantly cost the
company if not resolved. In this case, put the opportunity on
Tips
hold until the customer management accepts reality, or work on
• Proposition of the solution you have in mind and its features should be your questioning skills so you can help them gain awareness
formed into questions utilizing use cases and help the customer more effectively.
management to discover the value. A conversation this way will have
two major effects: Customer management becomes aware of the
business issue and its gravity, and since you are relating a helpful
feature to the customer’s situation (use cases) instead of just talking
about SAP in general, you will be considered an expert.
Recognize
Consider Evaluate Select Negotiate Purchase
Recognize
Consider Evaluate Select Negotiate Purchase
Disqualification Criteria
• If you and the customer are unable to articulate and
understand SAP’s unique value you open up the risk of the
customer opening the evaluation to all vendors where the
customer will commoditize the solution. Solution bake off and
feature/functionality will take precedence over business
value/industry expertise/best practices (SAP’s unique value)
which will eventually boil down to lowest cost bidding war. It is
critical to constantly articulate SAP’s unique value via our best
of breed solutions, industry expertise, and aggressive innovation
strategies. Click here to access customer facing Why SAP
presentation
Recognize
Consider Evaluate Select Negotiate Purchase
• Account Map
• Compelling Event
• Strong Functional Fit
• Use Cases Identified
• SAP Unique Value Message Delivered to
Customer
Recognize
Consider Evaluate Select Negotiate Purchase
Entry Criteria
Customer Management agreed to business issues and that SAP can contribute
Milestones in Consider
1. Sales Team Setup
2. Relationship Map and Executive Alignments Identified
3. Compelling Event Aligned with Customer
4. Competitive Landscape Well Understood
Deliverables
Opportunity qualified (8 criteria)
Selection Criteria Obtained in Writing
SAP and Partner Sales team established
Relationship Map
Customer agreed to Mutual Action Plan (Dates, Actions, Owners etc.) in Writing
Customer acknowledges SAP’s unique value
Consider
Recognize Evaluate Select Negotiate Purchase
Consider
Recognize Evaluate Select Negotiate Purchase
Make Sure Lead is Sufficiently Qualified Is the sales team size appropriate to the expected deal
size?
Opportunity is sufficiently qualified when it is qualified (8
Qualification criteria) • If not, does the deal have high strategic value?
• Funding: it should be clear if the customer has funding available, what
are the steps to release the funding. Identify and Request the Sales Team
• Compelling event: there should be at least a reason from the • Which services and experts do you need?
customer why to change and why now.
• Have you assigned a sales team?
• Customer challenges: if there is no pain there is no sale – so look at
the pain points and the customer’s issues and symptoms. • Have action items/role/responsibilities been assigned to
• Customer business value drivers: define strategic and business sales team members?
performance indicators and map them back to the customer • What resources do you need from SAP?
stakeholder strategy.
• Solution & differentiators: To be able to differentiate the value • Start reaching out to your SAP PBM or iPBM to see if those
proposition to the customer, understand what the customer needs. resources are available.
• Customer stakeholder strategy: identify the best mobilizers in the
customer to help driving on a consensus decision to buy. Introduce Pre-Sales to Customer Discussions
• Competitors: understand who are the main competitors, how you are
positioned against them, and competitive strategy. • Introduce your Pre-Sales to assist in qualification and
• Ecosystem: ensure that all your and other partners’ resources have especially to help identify additional cross-sell/up-sell
been considered. opportunities
• Begin brain storming with your Pre-Sales team in order to
Register Opportunity with SAP be fully aligned for the Evaluation phase
• Register your opportunity with SAP Deal Registration Service. Click
here to access service.
• Click here to know how to register a qualified deal
Consider
Recognize Evaluate Select Negotiate Purchase
Consider
Recognize Evaluate Select Negotiate Purchase
Identified
Identify Buying Center Confirm Key Decision Makers and their Decision Making
• Which department/group/organization/Line of Business is funding the Process
project? For example sales, marketing, finance, supply chain, • How do the key influencers and decision makers measure success?
manufacturing, etc? • Have you aligned the rights contacts to appropriate customer
• Who is involved in the decision making process? contacts?
• Who can stop or delay the project? • Are you aligned at the right levels? Are your or SAP executives aligned
with customer executives? Is Pre-Sales aligned with technical
• Who needs to sign the deal? influencers, sales with key influencers?
Understand the Customer in Detail (identify relationships and Selection Criteria Received from Key Stakeholders
executive alignment)
• If positioning eventual solution demo, ask for copy of selection
• How do the key influencers and decision makers measure success? criteria in writing from key stakeholders and decision makers
• Do you understand the customer's personal KPI's and goals?
• How will the customer measure the success of the project? Tips
• Have you aligned with any SAP CSE? • Ask relationship-building and relationship identifying questions.
• Do you understand outside influencers? Are Selection Consultants Understand undertones and what is not being said during a
involved? conversation.
• Leverage Motivational Psychology to understand goals and motives
Develop or Complete Relationship Map (aka Power Map) of stakeholder
Consider
Recognize Evaluate Select Negotiate Purchase
Identified
Disqualification Criteria
• If your investigation shows the competition has a personal
edge over SAP that you cannot overcome – family or other
close relations – be careful with the resources you spend on
this deal, and be prepared to step away from the opportunity
sooner rather than later.
Consider
Recognize Evaluate Select Negotiate Purchase
Consider
Recognize Evaluate Select Negotiate Purchase
Identify Competition • Determine what risk is associated with selection consultant and
• Who is the competition? possible mitigation strategies to minimize influence of potentially
• What is their relationship to the prospect/customer? unfavorable selection consultant?
• How does the SAP CSE interact with competition? Tips
• Access SAP’s Competitive and Market Intelligence Community • Ask analytic questions that probes the customers situations
Identify SAP Key Differentiators and problems that arise from the situations
• If you were in the customer's shoes, what would make you prefer • Recognize competitor specific hints or landmines when talking
buying from the competition? to the customer
• If you were in the customer's shoes, what would make you prefer Consider this Milestone Achieved when:
buying from SAP? • You understand the competitive nature of this deal: You know
• What are the competition’s strengths/weaknesses compared to which competitors could be involved, which competitors are
SAP, and how will they argue against SAP? involved, and what their relationship to the customer is.
Identify Selection Consultants Disqualification Criteria:
• Determine if selection consultants are involved with evaluation? • If your investigation shows that the competition has a personal
• If so, what is the history of the selection consultant? Leverage edge over you and SAP that you cannot overcome – family or
LinkedIn for insight into career history. other close relations – be careful with the resources you spend
on this deal. Be prepared to let the deal go earlier rather than
– Are they biased towards a particular vendor (Oracle, IBM,
later. If no competitor involved, make sure SAP unique value is
Microsoft, etc)? Does consultant carry a specific technical skill set
firmly entrenched in customer to prevent competitors from
with a particular vendor?
establishing a beach head at the last minute.
– What organization does the selection consultant represent?
• Based on above info, are they friend or foe of SAP?
Consider
Recognize Evaluate Select Negotiate Purchase
Plan
Go/No Go Decision to Move Forward with the Opportunity • Do you need to augment the sales team?
• Based on understanding of Relationship Maps, Executive • Which steps need to be taken in order to generate the
Alignments, Compelling Events, and Competitive Landscape; appropriate value for the customer?
do you and SAP want to proceed with the deal? • Does the value proposition include future development?
Initiate Customer Specific Value Proposition and “Why Assess High Level Risk
SAP” • What are the general risks for you if you go on?
• Referring to the customer’s goals shared earlier, what exactly • What is the risk for the customer if they go on?
is the value of the SAP solution you are suggesting?
Identify Mitigation Strategy
• Can you begin inserting dollars in the value proposition?
• Do you have a mitigation strategy?
• Does the customer understand the “Why SAP” value
• Do you have a mitigation strategy for the customer?
proposition?
Define and Agree on Next Steps with Customer
– Click here to understand why customers select SAP
• Mutual Action Plan needs to be discussed and agreed to
Develop Solution Roadmap
• Click here to Access Sample Mutual Action Plan
• Do you have evidence for the customer commitment to
continue with the evaluation process? Ie have you confirmed • Click here to Access training for Mutual Action Plan
budget and timeline to execute in time expected?
• Does the customer have resources to continue with solution
proof activities?
Consider
Recognize Evaluate Select Negotiate Purchase
Plan
Consider
Recognize Evaluate Select Negotiate Purchase
Consider
Recognize Evaluate Select Negotiate Purchase
Entry Criteria
Customer’s Management has agreed to the Mutual Action Plan and acknowledges SAP’s unique value
Milestones in Evaluate
1. Discovery
2. Competitive Strategy Defined
3. Key Customer Relationship Established
4. Solution Presentation
Deliverables
Evaluate
Recognize Consider Select Negotiate Purchase
Evaluate
Recognize Consider Select Negotiate Purchase
Prepare VAT team • Meet with all Line of Business executives involved in business
• Critical to get your Pre-Sales resource who will be performing transformation to discuss business requirements. Ensure Pre-
demo involved in discovery: Sales involvement in all discussions.
– Assist in identifying cross-sell and up sell opportunities • Focus on how SAP can help LOB Execs do more, do less, and
– Add credibility during demo do better of in business operations
– Consistently positioning “Why not SAP” during discovery • Apply Discovery Best Practices (click here Discovery Best
• Align Industry Experts and Subject Matter Experts for Practices e-learning)
Discovery • Access SAP Value Engineering benchmarking services via
– Take discovery to next level with low level details which your Partner Account Manager
Industry Experts and Subject Matter Experts best accomplish • Pre-Sales resource involved in Discovery needs to complete
• Clearly establish roles, responsibilities, and action items for all Solution Demo in order to instill consistency and credibility
VAT team members. Discovery Conclusion
Discovery • Update events in Mutual Action Plan
• With Pre-Sales and Subject Matter Experts, proceed with • Update and refine Selection Criteria based on Discovery
Discovery feedback
• Monetize business value in order to build business case and • Consider and create competitive analysis based on
ROI information obtained in Discovery
• Complete Business Case and confirming Business Value • Evaluate relationship with customer after discovery
during Discovery as second meeting to do so unlikely to – Have you achieved trusted advisor status?
happen – How are you going to influence their decision?
Evaluate
Recognize Consider Select Negotiate Purchase
Evaluate
Recognize Consider Select Negotiate Purchase
Define Competitive Strategy – Recognize competitor specific hints when talking to the customer
• Who is the competition? • Leverage your SAP sales team
– For competitive information visit Competitive & Market – What is the competitor’s usual strategy against SAP?
Intelligence – How does SAP usually defend?
• Create a competitive analysis - What are their – How does the regular defense work with this specific customer?
strengths/weaknesses compared to SAP, and how will they • Develop a customized competitive strategy based on the
argue against us? information you gathered during the previous phase (Consider
– explicit strengths and weaknesses Milestone 4: Competitive Landscape Well Understood), Decide
– technical fit how to beat the competition. Find out what your customer thinks
– business fit about the competition and if necessary, customize the general
– cultural fit (e.g. has the customer a local vendor preference) approach that your SAP team suggests for beating a specific
– personal preferences of all key stakeholders
competitor.
– What is their relationship with the prospect/customer? Consider this Milestone Achieved when:
• ID the competition and match it to the Selection Criteria • You know your competitive strategy and are ready to execute on
– If competitors strengths closely match selection criteria, you
it.
will know who has closest relationship to customer. Disqualification Criteria
– Change game if needed by leveraging the SAP’s unique value • If your investigation shows that the competition has a personal
messaging. edge over SAP that we cannot overcome, for example, family or
• Evaluate the analysis with your internal and SAP team - If you other close relations, be careful with the resources you allocate
were in the customer's shoes, what could make you prefer to the deal, and be prepared to let the deal go earlier rather than
buying from the competition? later.
Evaluate
Recognize Consider Select Negotiate Purchase
Establish Executive Alignment Strategy • Provide your and SAP’s Executives an Executive Summary
• You may already have established a relationship with your document of the opportunity and customer so they have all
main contact and perhaps even with other key stakeholders necessary information when they meet this customer’s
while interviewing them. Now it’s time to intensify already good Executives
relationships and improve the ones that are not perfect. • Ensure your executives and SAP executives send an executive
• Outline Executive Alignment Strategy reach out letter to the customer
– How much credibility does my company have with the • Your or SAP Executive will create introduction via email, then
Customer? follow up virtually if possible, and then setup live meeting
– How much credibility does SAP have with the customer? • Leverage demo as a way to create executive alignment. For
– Can we prove that your company and SAP are the right example, delay demo until executive alignment is established.
strategic partners for the customer? Leverage Marketing Events and Resources
– How can you build a personal relationship with my contacts? • What can SAP do in order to become more attractive to the
– Who are the right executives at your company? customer? Upcoming events?
– Work with SAP sales team to determine if any SAP executives – Invite to Sapphire, TechEd, Industry Events, etc
need to meet with the customer • Ask SAP sales team if any Local, Regional, and Global
Set up executive meetings Marketing events are a fit for your customer.
• Understand the relationships that the Sales Team members – Events you can participate in together will strengthen your
involved may have with customer contacts relationship
• Make sure that the people you set up meetings for are not only – Event you choose should be appropriate to the deal
a professional match (i.e. experts talking to experts), but • If deal is highly strategic, engage SAP senior leadership for
leverage personal relationships, if they exist. reach out
Evaluate
Recognize Consider Select Negotiate Purchase
Evaluate
Recognize Consider Select Negotiate Purchase
Align SAP Solution to Customer Requirements • Did you align the solution presentation with key stakeholders?
• Match the customer’s requirements – the ones referring to the – You may have to combine several options (e.g. Demo +
business issue in general as well as the goals that individuals Reference + Test Installation etc.) to convince every stake
shared with you – with the SAP solution that fits. holder individually, given their different background (technical,
financial, operational, etc.)
• What is the scope of the solution?
– Complete a demo dry run with experts from your organization
– Make sure to understand clearly what is in scope and what is and the SAP sales team one week prior to the customers
out of scope of the solution, and make sure the customer
presentations of the solution proof.
understands that, too.
Evaluate
Recognize Consider Select Negotiate Purchase
Evaluate
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Agrees to Proceed
Outline the Customer-Specific Workshops and Demos to Understand the Customer's Point of View After Solution
Build Solution Proof (Solution, Implementation & Business Proof Delivery
Case) • After delivering the solution proof, make sure to talk to all
• Based on all the information you have gathered during this stakeholders and find out their point of view. Again, leverage
phase deliver the demo and business case in the ways that the established relationships
you have identified as the ones most appealing to this • Re-evaluate if we have strong executive relationships with the
customer and their specific situation. customer
• Include all key stakeholders • Ask for demo evaluation results
• Leverage the relationships between the customer and the Customer Agrees to Business Case Results
Sales Team members that have been established • After demo delivery, get customers confirmation of business
Deliver Demo and Business Case and Include Agreed upon case results.
Value Proposition and ROI • If agreement is not reached, probe further to see where the
• Apply the Competitive Strategy that you have defined during mark was missed and course correct where necessary to
the solution proof and in follow-up meetings reiterate business case.
– Is SAP ranking first against the competition after the demo?
– What is SAP's strategy on trapping the competition?
• Did you and SAP meet the customer's requirements?
Evaluate
Recognize Consider Select Negotiate Purchase
Agrees to Proceed
Tips
• When creating Sales Team, ask customer as a condition for
creating a demo, to have them provide you with demo
evaluation results after demo completion. Also ask for
competitions evaluation if relationship allows for it.
Evaluate
Recognize Consider Select Negotiate Purchase
• Executive Alignment
• Discovery Information Analyzed
• Selection Criteria Refined from Discovery
• Demo Dry Run
• Competitive Strategy Executed
• Collaborative Action Plan Updated
• Solution Demo and Business Case
Presented to Customer
Evaluate
Recognize Consider Select Negotiate Purchase
Entry Criteria
Customer acknowledges SAP’s offering and agrees to proceed with a written close plan (short listed)
Milestones in Select
1. Customer Buying Process Confirmed in Writing
2. Quote and Proposal Created
3. References Scheduled
4. Business Case Delivered
5. Customer Received and Accepted Final Proposal
Deliverables
• Quote and Proposal Presented • Business Case Delivered
• GAF Submitted • Customer Proposal Delivered
• References Scheduled and Delivered • Joint Close Plan Validated
Select
Recognize Consider Evaluate Negotiate Purchase
Select
Recognize Consider Evaluate Negotiate Purchase
Refine Solution Deployment Plan – Click here for sample Close Plan
• Discuss with Sales Team what happens after customer has signed – Click here for course on Close Plans
agreement Customer Purchasing Process Understood
– What do you need to prepare? • Have a conversation with your contact about details of
– Will customer require specific services and are these service available? purchasing process
– Is additional and specific paperwork required for these additional – How many signatures are required?
services? – Whose signatures are required and are they all available to
Define Close Plan sign paperwork in time before quarter end?
• Who needs to be involved in a formal purchasing process? – Does the customer use procurement systems that could hold
• What is the timeframe? up the process?
• How does your organization or SAP influence the purchasing Consider this Milestone Achieved when:
process? • You understand the customer’s purchasing process
• How do you perform against the competition (e.g. pricing, offering, including all details and are now sure that there is enough
etc)? time left in the quarter to finalize this purchasing process.
• Have customer agree to Close Plan if they select your SAP solution. Disqualification Criteria
– Close Plan is Mutual Action Plan from selection down to signature of • If there is not enough time left in the quarter to finalize all
final contracts by agreed upon date steps of the purchasing process, you will have to move the
– Mutual Action Plan continues all the way until go live and post go – live Opportunity to the next quarter.
support
Select
Recognize Consider Evaluate Negotiate Purchase
Select
Recognize Consider Evaluate Negotiate Purchase
Disqualification Criteria
• If you have done your homework on calculating the actual value
based on the customer’s truthful numbers and also on proving the
solution being the right fit, your first proposal should be a solid
basis for starting negotiations in the next phase. If at this point in
time the requirements change, this can be a sign that the customer
is moving away from your SAP solution. At the very least, it means
that someone didn’t do their homework when coming up with the
solution and gathering the requirements in the first place.
However, it will be difficult to finalize the deal in the remaining time
in the quarter, so either move away or move the deal to the next
quarter.
Select
Recognize Consider Evaluate Negotiate Purchase
Considerations for References to Present to Customer Prepare to Ask Customer for Additional Commitment in
• Is the reference willing to share a positive story? Return for Access to References
• Does the reference belong in the same or similar industry? • Ask for commitment to select your solution if reference(s) turn
out well.
• Did the reference purchase the same if not similar solution to
your customer? • If your SAP solution is selected as the vendor of choice, will
the customer become a reference if their business goals are
• Did your reference consider the same competitors your
met with the solution.
customer is facing? If so, can they articulate why they selected
your SAP over the competition? • Ask for additional access to C-level executives in exchange for
references.
• Obtain questions from customer ahead of time to prepare
reference customer well ahead of time. • Make sure there is some give and get involved when providing
references, especially with information you were unable to
• Did you or the SAP/Partner Account team have a level set call obtain earlier in the sales cycle.
with the reference to prepare them for the context and type of
questions the customer may ask?
• Can the reference provide hard ROI numbers to your
customer?
• To access the Partner Reference Portal click here
Select
Recognize Consider Evaluate Negotiate Purchase
Disqualification Criteria
Tips
• If you are unable to find a positive reference suitable for the
• If at this stage the customer is asking for customer references, the
customer, this may cause concern for the customer and add
account team needs to be prepared to provide a give/get with the
additional risk.
customer to ensure the customer has “skin in the game” at this
point. This ensures the customer understands that you expect to be • Reference was not properly prepared and provides less than
moving towards a purchase. positive feedback for the SAP solution.
• When selecting a reference, make sure it is relevant to your • If the customer is unwilling to provide “an ask” in exchange for
customer industry/solution/business challenge. You will want to the reference, or refuses to provide a list of questions ahead of
avoid using references if they are bitter rivals in the same space time, or insists they speak with the reference in private, they
(think Coca Cola and Pepsi). may have been coached by a competitor. You will need to
deftly push back against the customer to let them know our
• If possible try to facilitate a call between the reference and customer
references are a precious asset and you need to respect their
so that you can make sure to avoid landmines during the reference
time. Make the point that if the customer were to become an
call. The account team should ensure they complete their due
SAP reference, you would respect their time and privacy to
diligence by asking the customer to provide a list of questions they
make sure they are fully prepared and the right fit to provide a
would like to ask the reference in order to help the reference
reference before asking for their time. If the customer is still
prepare and to respect their time. Once the list of questions has
unwilling to agree to these terms, you may have to ask the
been received, you will want to pass them along to the reference
tough questions to understand their demands and share
and discuss the optimal approach in answering the questions.
experiences why this hasn’t worked in the past with other
customers. This may be a sign that we are column fodder and
Consider this Milestone Achieved when: they are asking for references because it is part of RFP
• Your customer has received the positive references and are process.
prepared to select SAP solution.
Select
Recognize Consider Evaluate Negotiate Purchase
Select
Recognize Consider Evaluate Negotiate Purchase
Select
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Proposal
Select
Recognize Consider Evaluate Negotiate Purchase
Proposal
Disqualification Criteria
• If the customer suddenly starts discussing functionality and
requirements again, this is not a good sign: Be prepared to
talk internally about stepping away.
• If the customer gets unresponsive, this may be a sign that they
are talking to the competition or that something has come up
that that kills or delays the deal, and they don’t want to give
you the bad news.
• If they don’t want to give you or discuss bad news, this means
that your relationship with the customer is not really based on
trust. If it were, then your contacts should not be afraid to give
you bad news.
Select
Recognize Consider Evaluate Negotiate Purchase
SAP
Select
Recognize Consider Evaluate Negotiate Purchase
SAP
Disqualification Criteria
• If the customer’s evaluation team at this point in time prefers
another vendor, it’s quite a clear sign that your SAP solution
may not win this deal. Less clear, but nevertheless signs that
something may be less than perfect are:
– Inability to agree on deadlines within the close plan
– Customer becomes unresponsive
Select
Recognize Consider Evaluate Negotiate Purchase
Select
Recognize Consider Evaluate Negotiate Purchase
Entry Criteria
Customer’s Evaluation Team Recommends SAP
Milestones in Negotiate
1. Business and Legal Terms and Conditions
2. Crawl, Walk, Run Options
3. Customer CFO Review Meeting
Deliverables
• Proposal with options – crawl, walk, run (SAP will not request to view this document)
• Customer CFO Review meeting
• Confirmation of written close plan
• Negotiations Completed and Final Contracts Delivered
Negotiate
Recognize Consider Evaluate Select Purchase
Negotiate
Recognize Consider Evaluate Select Purchase
Define Business versus Legal Terms and Conditions • Are you prepared for counter attacks? Ask customers legal
• Understand customers complete set of Business and Legal Terms and team for points of contention so your legal team can review
Conditions: precedence before the call. This will help avoid surprises and
– Business Terms and Conditions relates to proposal, pricing, quantity, licensing, is a best practice to set your counsel up for success.
financing, implementation terms of the solution proposal and will require approval Begin Formal Negotiations of Terms and Conditions
from Sales leadership and is typically approval via SAP GAF process • Get a confirmation in email of the close plan (steps and
– Legal Terms and Conditions strictly relate to the contract terms and conditions and timeline for final approval of contract and physical receipt of
will require approval from Partner Legal Counsel or SAP Legal Counsel to amend signed contract). Click here to access sample Close Plan.
terms.
• Understand what business and legal terms your organization
Define Negotiation Team and Refine Negotiation Strategy can offer before requiring SAP approval. Click here to access
• Are US GAAP terms considered? the Discount Exception Policy.
• Is Legal approval in place? • When the technical decision has been made, T&Cs and price
– Negotiating price is one thing, negotiating Terms and Conditions is another. are what remain. Based on the numbers you collected, got
Usually, the bigger the company, the more will they insist on using their own T&Cs. confirmed and presented before, the actual value of the
So your legal teams have to talk to one another, and you should make sure that the solution should be clear to the customer. Nevertheless, they
your legal team understand your overall negotiation strategy, so by insisting on or
may have reasons why they don’t want to spend the full
giving away certain terms, they do not weaken your negotiation position. To access
amount right away. Instead of giving away T&Cs you may
SAP PartnerEdge Agreement Packages click here.
want to propose crawl, walk, run options.
• Is customer legal counsel going to be engaged? If so, make sure your legal
team or SAP Legal team is on the call. Do NOT proceed to speak to customers • If required, has SAP Sales and Legal teams been included
counsel without your own legal representation. regarding any changes to standard Terms and Conditions?
Negotiate
Recognize Consider Evaluate Select Purchase
Negotiate
Recognize Consider Evaluate Select Purchase
Crawl Tips
• If customer is hesitant about larger effort of transformation, • Always begin negotiations with the Run option and move to
provide crawl option which can be positioned as a pilot project Walk and Crawl options if you risk losing the deal or coming to
from which a larger transaction will stem from upon success of “No Decision” decision. Always position financing as first means
pilot project. to overcome budget/pricing objections before discounting.
Walk Reiterate agreed upon business value of solution and expected
• Provide this option if customer requires larger scale than crawl positive impact to business while negotiating.
option but may not have all the funds at this time to proceed Consider this Milestone Achieved when:
with run option or is risk averse to complete transformation. • Customer agrees to begin negotiations on the Terms and
Run Conditions of one of the proposals.
• This option should cover all the customers business Disqualification Criteria
transformation priorities as well as allow room for future user • If the customer gets unresponsive, this may be a sign that they
and functionality expansion. This should is the best case/all-in are talking to the competition or that something has come up
option from which you begin negotiations from. that that kills or delays the deal, and they don’t want to give
you the bad news.
• When in a competitive bidding process make sure your
proposal is an apples to apples comparison with our
competitors and make sure our customer understands the
similarities and differences and why SAP choice is the correct
one.
Negotiate
Recognize Consider Evaluate Select Purchase
Negotiate
Recognize Consider Evaluate Select Purchase
Negotiate
Recognize Consider Evaluate Select Purchase
Disqualification Criteria
• At this point in time, nothing less than a natural disaster should
lead to the disqualification of a deal. Nevertheless, there can
be reasons why a deal may still get lost or – more likely,
postponed to a future quarter:
– unexpected unavailability of a key decision maker whose
signature is required (illness / death. Vacation cannot be such
a factor, because that is something that should have been
clarified in the previous milestone)
– unexpected exterior factor (e.g. law being passed that leads to
re-evaluation or reprioritization of underlying business issue,
natural disaster)
– unexpected interior factor (e.g. bankruptcy)
Negotiate
Recognize Consider Evaluate Select Purchase
Negotiate
Recognize Consider Evaluate Select Purchase
Entry Criteria
Negotiations Completed and Final Contracts Delivered
Milestones in Purchase
1. Contract Signed – Booking Package Submitted
Deliverables
• Contracts signed by the Customer
• Order Package Submitted
• Order Booked
Purchase
Recognize Consider Evaluate Select Negotiate
Entry Milestone
Deliverables
Criteria 1
SAP NORTH AMERICA
SAPPARTNER
Global Partner Enablement
UNIVERSITY
© 2012 SAP AG. All rights reserved.
Purchase
Entry Criteria
Purchase
Recognize Consider Evaluate Select Negotiate
Entry Milestone
Deliverables
Criteria 1
SAP NORTH AMERICA
SAPPARTNER
Global Partner Enablement
UNIVERSITY
© 2012 SAP AG. All rights reserved.
Purchase
Milestone 1: Contract Signed – Booking Package Submitted 1 2
Receive Signed Contract/Documents Confirm with SAP Finance that Order has been Booked
• While waiting: Whose signature exactly are you waiting for?
• Why is there a delay? Complete Transition to your Services team
• Who can help fix it and speed things up?
Tips
Legal Countersignature • Depending on the importance of the deal, you should be
aware at any time on whose desk the contract is waiting for a
• Countersign contracts and send completed contracts to signature and be able to contact someone at the customer
customer and to SAP Partner Order Management who will help in case there is a delay. In order to do that, you
need to know and ideally have 1st hand contact with
Initiate Handover to Order Management assistants, secretaries and other people who at first glance
• Is the order/deal package completed? may seem to be of less significance, but who can actually save
your deal at quarter end if e.g. a fax machine isn’t working or
• If on your organization’s paper, make sure all the steps been an important manager who needs to sign is stuck in meetings.
executed to allow revenue recognitions? (e.g. Download Also, when waiting on contracts it is important to ask who else
Letter, license key, shipment, etc). Visit PartnerEdge.com for can execute agreements in case the original executor is
Ordering Requirements. unable to do so.
• When the contract comes back signed, you need to check the
formalities: Has anything been changed by the customer, are
all documents signed that require a signature, are email
addresses and ship-to addresses in place?
Purchase
Recognize Consider Evaluate Select Negotiate
Entry Milestone
Deliverables
Criteria 1
SAP NORTH AMERICA
SAPPARTNER
Global Partner Enablement
UNIVERSITY
© 2012 SAP AG. All rights reserved.
Purchase
Milestone 1: Contract Signed – Booking Package Submitted 1 2
Purchase
Recognize Consider Evaluate Select Negotiate
Entry Milestone
Deliverables
Criteria 1
SAP NORTH AMERICA
SAPPARTNER
Global Partner Enablement
UNIVERSITY
© 2012 SAP AG. All rights reserved.
Purchase
Deliverables
Purchase
Recognize Consider Evaluate Select Negotiate
Entry Milestone
Deliverables
Criteria 1
SAP NORTH AMERICA
SAPPARTNER
Global Partner Enablement
UNIVERSITY
© 2012 SAP AG. All rights reserved.
Appendix
Entry Criteria
Customer Management is not aligned to existing business issues
Milestones in Recognize
1. Account Situation Analyzed
2. Customer Goals, Needs, and Business Challenges Identified
3. Selection Criteria and Why SAP
Recognize
Consider Evaluate Select Negotiate Purchase
Entry Criteria
Customer Management agreed to business issues and that SAP can contribute
Milestones in Consider
1. Sales Team Setup
2. Relationship Map and Executive Alignments Identified
3. Compelling Event Aligned with Customer
4. Competitive Landscape Well Understood
Deliverables
• Opportunity is qualified (8 criteria)
• Selection Criteria Obtained in Writing
• SAP and Partner Sales team established
• Relationship Map
• Customer agreed to Mutual Action Plan (Dates, Actions, Owners etc.) in Writing
• Customer acknowledges SAP’s unique value
Consider
Recognize Evaluate Select Negotiate Purchase
Entry Criteria
Customer’s management has agreed to the Mutual Action Plan and acknowledges SAP’s unique value
Milestones in Evaluate
1. Discovery
2. Competitive Strategy Defined
3. Key Customer Relationship Established
4. Solution Presentation
Deliverables
Evaluate
Recognize Consider Select Negotiate Purchase
Entry Criteria
Customer acknowledges SAP’s offering and agrees to proceed with a written close plan (short listed)
Milestones in Select
1. Customer Buying Process Confirmed in Writing
2. Quote and Proposal Created
3. References Scheduled
4. Business Case Delivered
5. Customer Received and Accepted Final Proposal
Deliverables
• Quote and Proposal Presented • Business Case Delivered
• GAF Submitted • Customer Proposal Delivered
• References Scheduled and Delivered • Joint Close Plan Validated
Select
Recognize Consider Evaluate Negotiate Purchase
Entry Criteria
Customer’s Evaluation Team Recommends SAP
Milestones in Negotiate
1. Business and Legal Terms and Conditions
2. Crawl, Walk, Run Options
3. Customer CFO Review Meeting
Deliverables
• Proposal with options – crawl, walk, run (SAP will not request to view this document)
• Customer CFO Review meeting
• Confirmation of written close plan
• Negotiations Completed and Final Contracts Delivered
Negotiate
Recognize Consider Evaluate Select Purchase
Entry Criteria
Negotiations Completed and Final Contracts Delivered
Milestones in Purchase
1. Contract Signed – Booking Package Submitted
Deliverables
• Contracts signed by the Customer
• Order Package Submitted
• Order Booked
Purchase
Recognize Consider Evaluate Select Negotiate
Entry Milestone
Deliverables
Criteria 1
SAP NORTH AMERICA
SAPPARTNER
Global Partner Enablement
UNIVERSITY
© 2012 SAP AG. All rights reserved.