Winning The Race To Reinvent B2B Sales Accenture

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Winningthe raceto reinventB2B salesHow industrial equipmentmanufacturers can reimaginethe customer experience withConfigure Price Quote (CPQ)solutions

2Selling their products has never beenmore challenging for industrialequipment companies. Why? In thenew era of software-driven, smart,connected offerings, a single coreproduct can be configured in multiplevariations. This creates challenges allalong the B2B sales funnel. Demandfrom buyers for hyper-personalizationis another side of the same coin. Andparticularly now, as a result of theCOVID-19 pandemic, there is evenmore pressure on digital channels andplatforms to cope with huge surgesin demand.There’s a race on to reinvent B2B sales. And it’s being given added urgencyby the COVID-19 pandemic. With social distancing and travel restrictions thatlimit traditional high-touch sales processes, Industrial equipment companiesneed to move fast to enable “low touch or contactless” selling and build outscalable digital commerce capabilities that can handle the huge surge inonline demand. The good news? While adding new layers of complexity tothe sales process, technology also provides the answer through ConfigurePrice Quote (CPQ) solutions. These can be used to help customers navigatethe escalating trend of self-service/online business – and to help companiesimprove the buying experience and equip their sales reps with vital new skills.And what’s more, CPQ doesn’t just improve the buying experience. In a worldwhere products are becoming living platforms, embedded in ecosystemsof third-party developers, suppliers and external marketers, it can also makea decisive financial impact as a value driver and engine of growth.

Winning the race to reinvent B2B sales 3Configure Price Quote (CPQ) describes asoftware solution that supports customers andsales reps during the product purchase process.As well as helping customers select the rightproducts, configurations or combinations offeatures and technologies, it enablesmanufacturers to accurately define the price ofgoods across a huge, constantly changingspectrum of variables.By aggregating these variables, CPQ softwareallows companies to optimally configure productsand services (eg through bundling and upselling)and price them (eg based on willingness to pay orlocal economic factors) to offer the best quote tothe customers. CPQ solutions also supportcustomers through guided purchasing, directingthem to next-best alternatives where appropriate.Whatever the context, the starting point is alwaysthe problem the customer is trying to solve, ratherthan the product.It’s not only customers that benefit from CPQ.Internal functions like commercial operations,customer service, pricing and finance will allbenefit from fewer errors and decreased handlingtime. CPQ is one of the foundational componentsof business, touching every aspect – bringingtogether the what, how, where and why – coveringevery stage of the product sales lifecycle, andconnecting with all the relevant systems (seeFigure 1).Figure 1. CPQ –a key component of businessgyeCommercelMDigCPit aQDigCRM / CEXPlatform(SFDC, .)talPorAnalyticsStrategyGMTechnoloice TranformOffatitononrOperatiFonsarketi tizantioin gPI Ms&es eP ro c cturS tr pplyChainEngineeringCADPLMSupplierManagement

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Winning the race to reinvent B2B sales 5Reinventing the B2Bbuying experienceB2B customers don’t just prefer the convenience and user-drivenexperiences they’ve grown accustomed to in the B2C world, theydemand them. It’s a step-change in customer expectations thatAccenture calls “industrial consumerism”1. Until now, however, thesedemands have not been met by industrial equipment companies.Buying from them continues to be far fromstraightforward. Multiple interactions are oftenrequired, sometimes over a period of weeks, oreven months, to get a quote, order a product tothe right specifications and have it delivered andoperational.In an ultra-competitive market, the industrialequipment companies that thrive will be the onesthat can transform the buying experience intosomething more closely resembling theconsumer-centric B2C marketplace.They’ll do this by becoming Living Businesses,continuously adapting to the evolving needs oftheir customers, and market conditions, at speedand scale. This will demand a connected approachcombining technology, relevance, speed, andresponsiveness – focusing the entire business onthe customer and allowing each component ofthe organization to respond rapidly to marketchanges.With industrial B2B customers migrating rapidlyfrom offline to online, maximizing value fromconnected products is a race against time.Already, the sales process typically begins withdigital marketing and continues with buyersresearching and, increasingly, selecting theirproducts online.Our research shows 74 percent of industrial buyersnow research at least half their purchases onlineand 20 percent of all industrial purchases willtake place online by 20252. It’s why CPQ solutionshave such a powerful role to play – opening thedoor to a new, connected and convenient world ofB2B commerce for customers and sales people.74 % of industrialbuyers now researchat least half theirpurchases online.20 % of all industrialpurchases will takeplace online by 2025.

6Right solution,right timeTo secure business in a fast-changing digital world, industrialequipment companies must improve the buying experience theyoffer, upskill sales staff and enable greater self-service possibilities.Information flows must improve so sales teams have the right factsat their fingertips to deal with customers’ complex enquiries.Companies should move now to harness thepotential of B2B digital commerce through smartquoting, cross- and upselling, next-best-action(NBA) recommendations and agile pricing.They also need to be able to offer their customersnew ways to experience the configuration process,harnessing much the same approach as theautomotive industry, which now providesimmersive visualizations using 3D modelling.CPQ provides the right solution anywhere andat the right time. That’s because it’s designed toaddress changing B2B buying behavior head-on(see Figure 2).Figure 2: CPQ designed to address shifting customer buying behaviorCPQ enables customers selecting and configuring products by themselvesCustomer getsinformation about theproducts in generaland sees features andbenefits on the onInternal automatedapproval flows validateproduct selection, pricingand terms and conditionsBased on detailedquote (includingvalue / benefits),contractual detailsare finalizedPurchasingFunnelBased on guidedselling functionalities,the customer needslead to a preselectionAnalytics define nextbest actions (Spare Parts,Accessories Service,Software) and furtherrecommendationsFinal solution is pricedbased on buyinghistory (willingness topay) and further priceoptimizationResearchAll quote-relevantinformation(product data, pricedata, logistics, legalterms) is pulledtogether in onedocumentBased on agreedquote, customerorders productonline

Winning the race to reinvent B2B sales 7Reaping the rewardsof CPQ solutionsThere are clear benefits for companies that deploy advancedcustomer engagement platforms like CPQ solutionsture Operations materials1. Enhanced customer experience: These new platforms respond to customers’demands to buy more online and enhance customer experiences through seamlessintegration into CRM and product lifecycle management (PLM) ducts 1US FlagPlayWatchWarehouseTime in 1QuestionHigh eRewardsProducts 2ClipboardMailProcess 2 meProcessBlockchainboosting2Quoteon that:accuracy and qualityCheckHierarchyMobileImpactBig DataAnalyticsLiquidWorkforceFastForwardsUS FlagAnnounceQuestionHigh PriorityYaskawa, the world’s leading supplier of robotic solutions, has deployed a fromTactonto boostthe accuracy and quality ofCodingTechnologyData nt 2quotations.ow TheCoreScale unceThebottomline? LiftNewcustomerengagementplatformscanMedicalboost companies’ sales byOffPie ChartCloudCalendarBusinessStarStar RisingBestPeopleup to 7 percent and increase their margins by between 1–2 percent4.erk Fusion2. Value-add from sales: Instead of focusing on transactional sales, teams candevote time to supporting more complex sales. Research shows that currentlyaround 20 percent of sales time is devoted to routine tasks, which could be handledIndividualAudienceHumanby smartsolutionsthat help customers to help themselves (eg finding the rightsolution for their specific problem by using guided selling functionalities).Business timeMedical3. Reducedto sale, increased quote accuracy and higher win rates:These new platforms improve handling time, accuracy and quote quality. Althoughfigures vary by industry, estimates indicate up to 40 percent faster handling time andDownloadHamburgerBackwardsForwardsTickProcess 1SocialFocusMenuArrow30 percentincreaseinArrowquote accuracy. And Networkbecause guided selling can be used toProducts2ClipboardMail a customer’s needs (and their willingness to pay a certain price),discovermore aboutthese platforms also boost sales. CPQ can drive 5–15 percent increase in win with Aerospaceefficiencygains Identityin lendarBestPeopleCycleottleSocialNetworkIcons should be used for Accenture Operations materialsStar RisingcationProcess 1It has cut the time to generate quotes from eight days to just one – despite the complexityCheck BoxCheck ListHierarchyProcess 2ProcessBlockchain 2of the assistanceof productspecialists5.CheckCompetitionLegal

8DisentanglingcomplexityIt’s not only the B2B selling process that’s changing. It’s also thenature of what is being sold. Products and services increasinglyintegrate software and connectivity to provide more comprehensivesolutions. And that makes them more complex.To address this, sales approaches must move froma purely transactional emphasis to a consulting-ledservice (Figure 3). Technology will play a key part inthis evolution. In future, CPQ will supportcustomers to find easier solutions by themselves.customers (potentially supported by an easyfiltering logic). Ninety-three percent of leadingindustrial companies (vs 27 percent of laggards)automate simple sales and service processes tostreamline customer experiences6.This evolution completely changes how thesalesforce needs to work (see Figure 4). Simpletransactional purchases need to be automated andmoved online where they can be selected byMore complex products will be sold throughguided selling, with customers using acombination of online self-service and supportingquestions to better understand the use-case,Figure 3. Buying environment insightFor complex purchases B2B buyers expect more informed and effective consultative salespeople,as opposed to sales “navigators” or sales “explainers”.HighComplexityof product &serviceLowLowBuyer says: “Show me”Buyer says: “Enlighten me”ExplainersConsultantsBuyer says: “Serve me”Buyer says: “Guide me”Order-takersNavigatorsComplexity of the buyer dynamicSource: Digital Ups The Stakes For B2B Sales Pros, February 13, 2019. ForresterHigh

Winning the race to reinvent B2B sales 9before selecting and configuring the best-fitproduct. This process can be enriched byanalytics-driven next-best actions or product/service recommendations.Only the most complex products will be soldsolely by salespersons, supported by digital toolsthat augment their know-how.And it’s not all about improving price positioningby providing the best prices. To ensure seamlesscommunication, the quote price will also belinked to ERP systems to avoid price deviationand prevent margin losses. Another advantagefrom standardized quoting will be having a single“look and feel” across all linked decisions. Thisis facilitated through a centralized provision ofquotation templates, legally approved and alignedto brand guidelines.Figure 4: Evolution of sales force through CPQHighComplexSelectionFull configuration ofcomplex solutionGuided SellingSelection of productbased on questions/filter logicComplexityof product &serviceEasy SelectionSelection of knownproduct done via selfservice possibilitiesLowSales RepSelf ServiceInvolvement

10Lessons fromthe mastersAccenture research8 reveals a small group of B2B organizations, 16percent, that are transforming their selling capabilities at pace. They arealready reaping the rewards, with EBIT 13 percent higher – and growing8 percent faster – than the rest of their peer group. These “masters”understand that the disruption of marketing, sales and service is inevitable.And they’re setting the pace in the race to reinvent these functions.We found that 91 percent of them (vs 41 percentof laggards) have defined a future vision todeliver superior customer service through digitaltransformation of marketing, sales and service.Crucially, masters see CPQ not as a one-offimplementation, but as one element of the biggerpicture. They’re focused on aligning overall customerexperience across all channels and touchpointsto provide consistency of information and service(95 percent of masters vs 31 percent of laggards).CPQ implementation provides an opportunity toreshape the entire sales strategy and organization(from digital commerce to distribution), refreshold processes, upskill the salesforce and rethinkthe sales operating model. Crucially, in a worldof connected product platforms, it enablescompanies to pivot from providing featurestoward delivering personalized digital experiences,as-a-service.We found that 93 percent of masters (vs 35percent of laggards) operate advanced customerengagement platforms offering comprehensivesets of tools (such as configurators and installedbase management) and processes. Eighty-sixpercent of masters (vs 25 percent of laggards)provide advanced configurators for their productsand services. And, tellingly, 93 percent of masters(vs just 53 percent of laggards) say they regularlymatch customer-facing employees adequatelyto customer expectations.CPQ boosts price positioning as well as quotationquality and accuracyOne leading industrial equipment companystarted with a “define-and-design” phase,which included reshaping quote processesand infusing industry best practices. Inparallel, it improved pricing capabilities bydesigning and building a price engine totarget margin improvements (supported byan improved understanding of customers’willingness to pay).A global template was developed for allbusiness units involved, ensuring a uniformprocess for all quotes. In the first month,50,000 quotes were generated via thisplatform, and overall the business benefitedfrom a more streamlined way of workingand improved internal collaboration.Implementations like this can lead to anincrease of 0.5–1 percent EBIT7.

Winning the race to reinvent B2B sales 11Selecting the “right”CPQ solutionWhat is the starting point for any plannedCPQ implementation? Always secure a clearunderstanding of its relevance to both priceand product complexity and customers’ buyingbehavior and preferences. There are manysolutions to select from, depending on customerneeds. To name a few, these include (inalphabetical order): Apttus, Calidus Cloud, Cloudsense, encoway, FPX, Oracle, PROS, SalesforceCPQ (Steelbrick), SKUID, Tacton, Vlocity and Zuora.The selection of a CPQ solution is aprerequisite for the future that needs tofulfil both business and IT needs. Somequestions can help to define the best choice,based on specific circumstances and/orchallenges. These questions also serve asselection criteria:Strategy What target group is the CPQ solution usedfor (customer, sales, distributors)? What is the overarching goal of theimplementation (customer experience, growth,self-service capabilities)?Usability What is the user experience like/how easy isthe solution to use? Can the user interface be updated/changed?Flexibility How flexible is the solution to meet specificbusiness needs (eg product hierarchy)? How advanced is its ability to create modelsfrom products (eg new products and options,attributes, bundles, comparisons, inclusionand exclusion rules etc)?Pricing capabilities What pricing models are available (flat,matrices, subscription, contract-based)? Are there any price-optimization tools available(scoring/rating, margin calculations, full-costmodel)?Approval flows What kind of approvals are possible and atwhat specific level (eg line item vs global)? How granular is the authorization matrix thatthe tool can generate? Can the approval workflow be adapted not onlyto pricing/margin, but also to products andterms and conditions?Quote Is it possible to generate a quote based onthe existing library/global template? Are changes to finalized quotes easy to make?System How well does the solution perform and what,if any, are its limitations? Is the solution scalable? Is it SaaS enabled? How easily can the CPQ solution be integratedinto the existing IT landscape?Further questions to consider Can the solution be linked to other tools tocreate and show an end-to-end lead-to-cashprocess?

12Makinga successof CPQAs they make their selectionof the right CPQ solution,companies must take variousfactors into account. In additionto identifying the right productsand markets, they must ensurethe implementation approachis agile in the face of rapidlychanging customer needs.Integrating CPQ with thewider day-to-day process andIT landscape is also essential.And it’s vital that CPQ is seenas a business-driven initiative –not solely an IT project.It is vital that CPQ isseen as a businessdriven initiative – notsolely an IT project.

Winning the race to reinvent B2B sales 13Key success factors include:ed for Accenture Coreulting materialsIcons should be used for Accenture Coreor Accenture Consulting materialsHERO FLAT CORE & CONSULTINGwardsrrowTickClear vision and stakeholder buy-inProcess 1SocialNetworkFocusKnow where you are and where you want to go. Define the future vision withkey business drivers and secure senior stakeholder participation throughout theSecurity s 1shouldbe usedGearfor AccentureCore Hamburger BackwardsMenuArrowArrowimplementation.This goes handin hand with a sophisticatedchangemanagementor Accenture ConsultingmaterialsAudienceHuman which is a key feature of successful VehiclesGearEnergyChartSecurityDownloadr RisingBestPeopleCalendarBusinessew ITNetworkRetailEffectHigh VelocityProductsERP 1solidateRewardsProducts tailClientValuePie ChartCreation 2FastwardsUS ClipboardImpactBig DataPayBlockchain 2Gauge100%High PriorityResearchPresentationPlay MediaDiamondIndividualCheck BoxBalanceCheck ListWi-FiBuildingsHumanProcessAnalyticsMail LiquidWorkforceFastForwardsUS FlagAnnounceAlarmHierarchyProcess dicalClipboardMailQuestionHigh PriorityVRIndustry X.0BookVRLegalCheck gDevelopment 2QuestionAnnouncePaint RollerUS FlagScale TheNewPaymentsEverywhereMobilePayA rigorous training program incorporating innovative techniques (eg a 30-daychallenge including gamification to foster system usage) can help secure the fullCalendarBusinessMedicalStar RisingBestPeopleof a CPQ solution. Although most industrial equipment companies claimbenefitsto have good training and reskilling programs in place, 74 percent still feel theirworkforce does not have all the capabilities to provide exceptional customer9RewardsProducts2 digitalClipboardage .MailConsolidateexperiencesin chain 2Blockchain 2Industry X.0BuildingsCheck ListPlayComputerData HubTechnologyLiquidWorkforceBig w TheCoreBig DataAnalyticsBlockchain 1RotateDiamondTraining for successFintechBank FusionAeroplaneIdentityTime ThePivotStarWarehouseLift OffFastForwardsConsolidateRotateStar RisingStarLift opwatchRip AndReplaceTransformThe areLifeScienceskchain 1SearchBig DataLiquid is a hugeFastUS Flagand AnnounceHigh Priority Despite all the advantagesIntroducingCPQnotjust QuestionanotherTechnologyData Hub tool.ComputerPlayWatchCompassTransform WorkforceGrow The ForwardsScale ThestepCodingAnalyticsDevelopment 2The CoreCoreNewit can provide, implementation can be a lengthy journey so change managementProcessBlockchain 2Checkis crucial. The system will affect teams across the organization – sales, marketing,operations,productmanagement,finance,and IT – somake sure they not onlyTechnologyData BinocularsFolderCheck BoxCheck ListBuildingsHierarchyProcess resentationalso understandthe BottleRetailCloudAerospacePie ChartProducts leSearchWi-FiFocusRobotIcons should be usedFlexibilityfor AccentureCoreis essentialor Accenture Consulting materialsWith customer needs changing constantly, agile implementations will requireIndustry okProcessResearchflexibility. This might mean adopting a platformapproach and/or introducing severalvalue-adding components such as a pricing engine. Flexibility is equally importantHamburgerBackwardsForwards1Socialfor theTickfutureProcessbusinessmodel.FocusFor example, if that model is focused on sellingMenuArrowArrowNetworksoftware or services, then the future solution must be able to adapt to yProcess 1BooktificationRewardsMobileProcess ent2Food & DrinkBookBank FusionWatchBusinessProcess 2Stewardshipustry X.0Scale TheNewWineCalendarAudienceIndividualGrow nceProducts 1TickIt’s a journey, not a “one and done” erywhereHumanFintechrketingnk FusionCompassAeroplaneCodingUS FlagWatchRetailForwardsArrowAll data (eg product attributes) within the system must be current, accurate andverifiable.processesand ensureofcustomerLift Off availabilityCycleShoppingdocumentedPie ChartCloudCalendarHeart HaveStarStar archIdentityCart/Retail DiamondPeopleand product data. And bear in mind that a CPQ implementation is a perfect pointClipboardMailin time to rethink old selling patterns and improve how configurations are handled.This might mean using additional rules and algorithms to limit configurations toHandshakeStewardshipBottleTime The CalendarAeroplane MedicalRotateRewardsProducts 2WarehouseBlockchain gBestareStarmostuseful.Supportedby historicaldata and ny’s margins (through more streamlined offerings) and althcareHamburgerMenuFocusThe solutionis only as good as the data it runs onMedicalProducts igh PriorityHorse/ResearchAlarm

14The right time tostart CPQ is NOWAt the moment, CPQ deals principallywith product configuration and sendingout quotes. Looking ahead, however, ascompanies (and systems) proliferate andcombine in the industrial equipmentsector, CPQ will bring together differenttools from different divisions andbusiness units to configure increasinglycomplex solutions and drive new value.

Winning the race to reinvent B2B sales 15We may also see CPQ serving as a platform for bringing togetherdifferent companies to collaborate on solution development, with thesesolutions being tested through digital twins before going intoproduction. The same technology will also make after-sales servicingmuch easier.If implemented correctly, CPQ solutions can result inupto40 %upto7%faster order handling timeincrease in sales5–15%1–2%increase in win ratesupto30%increase in quote accuracyincrease in marginsWith no lack of choice in the CPQ marketplace, every industrial equipmentmanufacturer needs to carefully select a CPQ solution that meets itsneeds. But when it comes to timing, there’s much less flexibility.To address the challenges they face now and in the future, industrialequipment companies need to join the race to reinvent B2B sales today.

AuthorsAbout AccentureBernd HirschleManaging DirectorSales of the Future, Industrial Equipmentbernd.hirschle@accenture.comAccenture is a leading global professional servicescompany, providing a broad range of services instrategy and consulting, interactive, technologyand operations, with digital capabilities across allof these services. We combine unmatchedexperience and specialized capabilities acrossmore than 40 industries – powered by the world’slargest network of Advanced Technology andIntelligent Operations centers. With 513,000people serving clients in more than 120 countries,Accenture brings continuous innovation to helpclients improve their performance and createlasting value across their enterprises.Thomas WranaSenior Managerthomas.wrana@accenture.comJoin the conversation@AccentureIndVisit us at www.accenture.comAccenture IndustrialReferences1 Industrial Consumerism: Gettingserious about disruptive strial-consumerism2 Accenture Benchmarking Study,Industrial Consumerism, 20183 Accenture Projects4 Accenture Analysis5 https://www.tacton.com/resources/yaskawa/?via resources6 Accenture Benchmarking Study,Industrial Consumerism, 20187 Accenture Project8 Accenture Benchmarking Study,Industrial Consumerism, 20189 Accenture Benchmarking Study,Industrial Consumerism, 2018This document is intended for general informational purposes only and does not take into account the reader’s specificcircumstances, and may not reflect the most current developments. Accenture disclaims, to the fullest extent permitted byapplicable law, any and all liability for the accuracy and completeness of the information in this presentation and for any acts oromissions made based on such information. Accenture does not provide legal, regulatory, audit, or tax advice. Readers areresponsible for obtaining such advice from their own legal counsel or other licensed professionals.This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein isnot an assertion of ownership of such trademarks by Accenture and is not intended to represent or imply the existence of anassociation between Accenture and the lawful owners of such trademarks.Copyright 2020 AccentureAll rights reserved.

along the B2B sales funnel. Demand from buyers for hyper-personalization is another side of the same coin. And particularly now, as a result of the COVID-19 pandemic, there is even more pressure on digital channels and platforms to cope with huge surges in demand. There’s a race on to reinvent B2B sales. And it’s being given added urgency

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