Chuck Terry
Executive Vice President & CSO
Carew International, Inc.
We have officially arrived at the beginning of the next decade. As we usher in 2010, it seems like a good time to reflect upon how the last ten years have changed the world of the outside sales organization.
In 2000 research showed that only 20 - 25% of consumers had made an online purchase. That number had risen to around 50% by 2007, and it is estimated that the number is now close to 80%. The impact on an outside sales force selling ANYTHING is pretty simple. If you aren’t able to demonstrate how you are adding value to the purchasing process, consumers will buy online. In fact, there is no greater driver of perceived commoditization than the internet.
In a previous blog titled The New Human Nature of Sales, I explored the importance of customer intimacy and how the “canned” sales tactics of yesterday just don’t work anymore. Given no other way to differentiate, customers will resort to the lowest common denominator of price. As we enter the next decade, it is critical to take a hard look at the selling skills of our outside sellers and ask this simple question: “Can my sales team sell our products or services at a higher price point as a direct result of the perceived value they add for our customers?” If your honest answer is “no,” do not despair. You certainly are not alone and there are solutions.
One solution is changing your customer segmentation strategy. Many companies are re-examining their traditional customer segmentation alignments to see if they still make sense with the evolving buying habits of their customer base. In some cases, there is indeed a strong case for converting new portions of the customer base to internet sales or inside sales. These are cases in which the cost of the sale must be reduced to allow a more transactional, price competitive purchase without sacrificing margins.
For most of us, and more importantly, for most of our customers, the solution lies with improving the skills of the outside sales force to be more consultative with the clients. As I meet with business leaders across the country, one of the most recurring training requests I hear is, “I want my sales professionals to be better business people.” In order to be more consultative with clients, your sales process must be aligned with a greater emphasis on the Exploratory Process. While exploratory skills are critical, they alone are not enough to ensure success. Today’s sales professionals also need to be trained on the basics of finance, as well as general business skills. In 2010, the successful sales professional will understand that a client who is struggling with cash flow is not going to be positively impacted by raising their discount or lowering prices. Things like extended terms, reduced inventory, or reduced operating costs are much more impactful than discounts in such cases.
The beginning of a new year and, in fact, a new decade is the perfect time to evaluate the skill level of your sales team and develop those areas where they can improve their ability to add value with clients. The earlier in the year you stage your skill improvement sessions, the more of the selling year you are able to impact.
Executive Vice President & CSO
Carew International, Inc.
We have officially arrived at the beginning of the next decade. As we usher in 2010, it seems like a good time to reflect upon how the last ten years have changed the world of the outside sales organization.
In 2000 research showed that only 20 - 25% of consumers had made an online purchase. That number had risen to around 50% by 2007, and it is estimated that the number is now close to 80%. The impact on an outside sales force selling ANYTHING is pretty simple. If you aren’t able to demonstrate how you are adding value to the purchasing process, consumers will buy online. In fact, there is no greater driver of perceived commoditization than the internet.
In a previous blog titled The New Human Nature of Sales, I explored the importance of customer intimacy and how the “canned” sales tactics of yesterday just don’t work anymore. Given no other way to differentiate, customers will resort to the lowest common denominator of price. As we enter the next decade, it is critical to take a hard look at the selling skills of our outside sellers and ask this simple question: “Can my sales team sell our products or services at a higher price point as a direct result of the perceived value they add for our customers?” If your honest answer is “no,” do not despair. You certainly are not alone and there are solutions.
One solution is changing your customer segmentation strategy. Many companies are re-examining their traditional customer segmentation alignments to see if they still make sense with the evolving buying habits of their customer base. In some cases, there is indeed a strong case for converting new portions of the customer base to internet sales or inside sales. These are cases in which the cost of the sale must be reduced to allow a more transactional, price competitive purchase without sacrificing margins.
For most of us, and more importantly, for most of our customers, the solution lies with improving the skills of the outside sales force to be more consultative with the clients. As I meet with business leaders across the country, one of the most recurring training requests I hear is, “I want my sales professionals to be better business people.” In order to be more consultative with clients, your sales process must be aligned with a greater emphasis on the Exploratory Process. While exploratory skills are critical, they alone are not enough to ensure success. Today’s sales professionals also need to be trained on the basics of finance, as well as general business skills. In 2010, the successful sales professional will understand that a client who is struggling with cash flow is not going to be positively impacted by raising their discount or lowering prices. Things like extended terms, reduced inventory, or reduced operating costs are much more impactful than discounts in such cases.
The beginning of a new year and, in fact, a new decade is the perfect time to evaluate the skill level of your sales team and develop those areas where they can improve their ability to add value with clients. The earlier in the year you stage your skill improvement sessions, the more of the selling year you are able to impact.
No comments:
Post a Comment