Value Driven Negotiation - Discover and Prove Value

Welcome to Value Driven Negotiation - Discover and Prove Value

Welcome to Value Driven Negotiation - Discover and Prove Value


There are a total of six tutorials in this learning series. This is the second tutorial in the series.

  • Value Driven Negotiation Overview
  • Discover and Prove Value
  • Set the Stage
  • Identify Interests Behind Positions
  • Clarify Issues and Values
  • Present Positions and Trades to Reach Decision (incorporates Stages 4 and 5)

Learning Objectives


By the end of the Discover and Prove Value tutorial you will:

  • Identify and quantify solution values based on Client priorities.
  • Understand the difference between tangible and intangible value and understand what Nielsen's tangible and intangible values are.
  • Identify stakeholders involved in the decision-making process and what they care about.
  • Determine how Procurement is involved in the negotiation.
  • Develop Client Advisors to provide additional information and insights.
  • Present the value of your solution before engaging in negotiations.
  • Understand how to quantify value over the entire contract period.

Discover Value

Discover Value Overview


You know the importance of asking for your Client's perspective and understanding what the Client is looking for, and how what they value can be met by Nielsen solutions. To discover and prove value is something you will continue to do throughout the negotiation stages.

The goal in selling is to develop a value proposition that your Client recognizes will deliver successful outcomes for them. Ideally, we focus on the outcomes that only Nielsen can achieve for our Clients.

Value-driven selling focuses more on ensuring that the value you currently (or can) provide, matches the Client's perception of that value.

Importance of Value Differences


Value differences between you and the Client drive negotiation dynamics:

  • They are the basis for successful negotiation through trading.
  • They put you in an optimal position to trade something that is of less value to you than to your Client, in exchange for something that is of greater value to you than to your Client.

The key to collaborative success lies in the assessment and validation of value differences.

What is Value?

What is Value?


There are two types of value when negotiating:

  • Tangible Values - are measurable and can be quantified in a straightforward way.
  • Intangible Values - are less concrete and are more difficult to quantify.

Value Knowledge Check

Select Tangible or Intangible for each of the following values Nielsen can provide to our Clients.

  1. Increased revenue/sales as a result of value delivered/proven outcomes  
  2. Easy to work with 
  3. Quality of data enables the Client to confidently deploy strategies 
  4. Breadth of relationships and understanding of Client's business 
  5. Expertise in Consumer understanding 
  6. Speed of delivery enabling the Client to react quickly to Consumer changes 
  7. Global reach and experience 
  8. Realistic insights and recommendations that the Client can action 
  9. Thought leadership insights 

Why Focus on Driving Value?

Why Focus on Driving Value?

You and your Client will likely not always value the same things. This is why it is so important to identify early and often what your Client values so that you can work towards alignment. Look at this example.

  • Your Client values time of delivery more than client service.
  • You value client service more than time of delivery as you already have the fastest delivery of data; however your concern is the higher cost of service on-site.

What do you do when this happens?
You focus on trading the value of speed of delivery to the Client with the client service resources.
“If you can agree to reduce our on-site servicing by 20%, we can commit to delivery speed of Day +8 on your top 3 categories.”

How to Drive Value?


You must be passionate about uncovering and prioritizing Client value. Knowing both your own value priorities and how they are different from the Client is key to identifying value differences.

Getting to know what your key players value enables you to:

  • Configure your solution for the best "fit" with what they value.
  • Develop advocates and supporters of your solution.
  • Build the power you need in the negotiation.

By asking questions to discover the value of your solution, you uncover positions the Client might have and the reasons for those positions. This provides you with a way to collaboratively negotiate without focusing on protecting your position or leading the Client to focus on protecting theirs.

As you discover and prove value throughout the negotiation process, you are putting yourself in a position that allows for trading.

Value Knowledge Check

Select Focused on Understanding  or Not Focused on Understanding the client's perspectives for each of the statements below.

  1. Help find things that are more valuable to your Client than to Nielsen 
  2. Uncover the nature and extent of the Client's problem, as they see them 
  3. Help you to sell Nielsen solutions and service details 
  4. Understand how the Client's problems are creating a need for change 
  5. Define the Client's priorities and their decision criteria for resolving the problems they face 
  6. An opportunity to explain the weaknesses in the services offered by Nielsen's competition 
  7. Understand the Client's processes and policies that will help them reach their decision 
  8. Propose solutions that will drive sales for Nielsen but may not be the best solution for the Client 
  9. Help you establish where you have power and leverage 
  10. Help plan more effectively to find areas where the Client and Nielsen have common interests 

Workbook Activity - Case Study - Identifying Value


Throughout the rest of the Value Driven Negotiations tutorials you will apply the lessons from the tutorials to a case study. The case study is located in your workbook.

  • If you did not download the workbook at the end of the Overview tutorial, do that now by clicking here.
  • Save the file to your local computer as you will be completing exercises in this workbook throughout the rest of the tutorials in this series. Your edits to the file will not automatically save back into this tutorial so you must save the file on your local computer.
  • You will also need to bring the completed workbook with you to the Value Driven Negotiation workshop.
  • Turn to pages 5 -11 in the workbook to read the case study and then use the template provided on page 12 to prepare a meeting agenda and four open-ended questions that will help you identify value for the Client in the case study.
           -  Think about whether you are looking to uncover tangible or intangible value.
          -  Think about the outcome you want from a meeting to uncover value and the client’s priorities to help you to determine how you will plan to get to the desired outcome.

Stakeholder Engagement

Who Will Influence the Decision?


It is important to know who will influence the decision so that you can understand the following:

  • Who will play a part in the decision to license our solution.
  • What their roles are in the organization.
  • What each of them values and their opinion of Nielsen.
  • Who at Nielsen will engage with each stakeholder based on Client role and personality. Remember to use the broad Nielsen team to help you.



For more information on understanding who you need to engage with and planning for how you will understand their perspectives, check out the Know Your Client tutorial on myLearning!

Understand Stakeholders' Influence

There are two dynamics to consider when determining a stakeholder's influence. First, you need to determine their level of influence on the negotiation. Are they a decision maker or do they have low influence? Second you need to understand their opinion of Nielsen. Is it positive or negative or somewhere in between? Once you understand where to plot them on the grid it will better allow you to understand how to interact with them.

Click on each quadrant 'i' of the grid to learn more.

Understand the Role of Procurement

The Client’s Procurement organization may play a key role in your negotiation and you should understand early in the process what their role will be in the negotiation. 

Aim to engage with individuals from the Client’s Procurement team just as you would with others at the Client.

We will cover more about negotiating with Procurement in the upcoming tutorial on Presenting Positions and Trades. Until then, this document will help you consider their perspective.
How to Partner and Build a Long-Lasting Relationship with Procurement

Workbook Activity - Stakeholder Engagement


In your workbook on page 15, use the Individual Client Engagement Plan template to list your stakeholders in the case study and help plan for the engagement.

Client Advisors

Client Advisors


When it comes to determining value you need to ask the right questions. Client Advisors (someone at your Client who can offer reliable information to you about the Client, decision-makers and what is happening "behind the scenes") can be invaluable in:

  • Guiding you in asking the right questions.
  • Making introductions.
  • Making you aware of business priorities and/or organizational changes.

Click each question 'i' to reveal the answer.

Developing Your Advisor List

The following are suggestions on how you can grow and develop your Client Advisor list: 

Workbook Activity - Client Advisors


In your workbook on page 16:

  • List existing and potential Client Advisors at your Client and rate the strength of their support for you or Nielsen (low, medium, high).
  • Then, describe your ideas to develop the Advisor you have identified.

Prove Value

Prove Value Overview


Now we will discuss how to take the value you have discovered and prove it to your client. Proving value is critical to creating Nielsen differentiation with the Client. We have a great framework - the Client Engagement Model – and we need to use it to demonstrate the value we have delivered. 

If we are negotiating with a current Client, then value recognition during the existing contract is evidence of the value that we can bring to the Client in the future. This is represented in the Outcome stage of the Client Engagement Model.

Client Engagement Model - Outcomes


As we operate to deliver insights that drive successful Client OUTCOMES, we demonstrate the value that Nielsen brings to our Client. 

Reporting the OUTCOMES we have created for our Client proves the value that we deliver and creates a common understanding of our business impact for future business.


 


In your workbook on page 17, review an Insights to Impact (i2i) example.

Quantifying Value

Quantifying Value

There are both tangible and intangible benefits for both Nielsen and the Client from having Outcomes recognized.

Click each question 'i' below to reveal the answer.

Quantifying Value Knowledge Check One

  • Your team has worked hard to meet the tactical needs of a range of Client contacts in the research team but haven’t had time to record the impact of the insights that they have delivered. You will now have to try and get the Client to acknowledge retrospectively the value you have delivered over the past 3 years.
  • You have worked closely with the Client over the past 3 years, utilizing the CEM and have Joint Business Plans in place and a schedule for regular Top to Tops. The Client receives an i2O Newsletter every 6 months which includes recognized quantified outcomes and proven return on investment.
Situation: You have been working with your Client for the past 3 years and the contract is up for renewal in the next four months . You are about to start the negotiation.

Which scenario do you think is more likely to create successful, collaborative value-driven negotiation outcomes for both parties?

Quantifying Value Knowledge Check Two

  • 36% of category sales
  • $8.6 million dollars
  • Listing improvement of 18%
  • $51.6 million dollars

A reminder on how we can quantify the value that we deliver to our Clients using Retail Measurement Data. Tip! Remember that we are quantifying value for the lifetime of the contract!

For more information try the Quantifying Business Opportunities eLearning. Click here and add the course to your Learning Plan.

Situation: 

Nielsen found that Global Product's (GP) new product launch into the Ready to Drink Tea category, Nutri-Tea, was failing to meet it's distribution targets by 26% ACV. Further analysis showed that Nutri-Tea distribution was particularly weak in Convenience stores, a channel which accounts for 36% of category sales. Working with Nielsen, GP created a trade story for the Convenience trade which helped them to improve listings by 18%. This resulted in increase sales of $8.6 million over the last 6 months. This analysis was included as part of our 3 year agreement and Nielsen continues to analyze Nutri-Tea’s distribution and performance to identify further opportunities for GP.

Select the answer that shows the value to the Client over the period of the contract.

Summary

Discover and Prove Value - Reflection

In your workbook, on page 18, is the Discover and Prove Value section of the Negotiation Checklist (full checklist can be found at the beginning of the workbook). Take a few minutes to rate how ready you are to negotiate, in relation to Discover and Prove Value, with the case study client.

Next, consider and answer the following questions related to your own Clients:

  • What insights have you gained about how to discover and prove value?
  • What challenges do you still face in discovering and proving value to your Client?
  • How will you determine how the client’s Procurement team is involved in the negotiation?

Next Steps

The next tutorial in this series will cover how to Set the Stage. 

 


During this tutorial you completed several activities in your workbook. Be sure to save your changes on your local computer. You will use this same file again in the next tutorial.

Congratulations

Congratulations! 

Thank you for participating in this training. Your completion will be recorded in your learning plan and your manager will be notified.

 


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