Archive for May, 2018
Many businesses have a sales machine, designed to replicate the star performer. But recently sales have been caught off-guard by a dramatic shift in customers buying behaviour; longer sales cycle time, lower conversion rates, less reliable forecasts, reduced margins. Has selling become harder and why?
This question was posed to the members of the Business Exposure Group at their recent meeting and the following points were discussed.
Process driven sales fall short because it gives the sales rep no room to exercise judgement and creativity when dealing with highly knowledgeable customers. Sales team should not just compete on price. It is not a good idea to have a price driven quick sale as opposed to a longer sale that offers a better solution and best value. Support your sales team rather than direct them; give them greater latitude. ‘It’s not the journey but the destination we have to focus on’. Reward the sales team for long term focus rather than short term deal volume. Do not let sales reps simply sell products rather than solutions, purely to boost their figures.
There is now a new world of sales
|Customer has a definite need||Customer is uncertain|
|Find someone with authority to spend||Find someone open to change|
|Demonstrate value in your solutions||Disrupt the customers thinking and assumptions|
Perhaps the answer is to have adaptive sellers who challenge customers with disruptive ideas and offer unexpected solutions-‘Insight selling’. Demand should be created early in the sales funnel rather than responding to it later on. Instead of making the sales rep work through a checklist of sales activities focus instead on the customer’s behaviour, and let the customer acknowledge that the status quo is not working. Verifying whether a customer is open to change is a prerequisite to pursuing a sale. It’s not enough to do a demonstration; you need to first establish with the customer that the existing approach is underperforming and that a new solution is necessary.
Large sales driven organisations monitor sales reps by KPI’s, especially cycle times and closure rates, smaller businesses can and should be more agile and flexible. We can track and report on a customer’s actions rather than on the sales reps activities, which would encourage the reps to focus on achieving outcomes with the best possible solutions.
Originally sales was about scheduling times with the decision maker; determining if they have a budget for the purchase and sending a proposal in writing. Now, find out if the customer has agreed that status quo is unsustainable; does the current approach expose them to risk; how much is in their budget; can we help the customer think creatively about funding if money is not available in this year’s budget.
The Institute of Directors state that only 17% of existing sales people score high on the competencies required for ‘Insight Selling’. ‘Hire people not in sales, but hire people who have good critical thinking and are willing to sell’.
If you used to recruit as follows –
‘Wanted experienced professional looking to maximise earning potential in a fast paced competitive sales organisation’.
Change this advert to
‘Wanted critical thinkers looking for an opportunity to exercise their judgement and assume significant responsibility for business growth’.
Businesses that continue to embrace the sales machine process are watching their margins fall. Our Business Exposure Group members agreed that it’s better to hire good people, create an empowering environment and then get out of the way.