For many growing businesses, the hiring of a sales team is seen as both a major investment, but also a sure-fire way of delivering fantastic numbers – just bring them in and the numbers will come!
But getting this decision wrong can leave a permanent mark on the future success of the company.
Most owners and managers have what they think is a clear view about why their product or service is special – why it’s the best solution for their market. However in today’s competitive world there are always alternatives competing for your business. Winning customers can be hard enough, but keeping them and growing them in a way that maximises their value can be even harder. Customers are ever more demanding and will use the alternatives to negotiate better prices, discounts or other pay-offs to remain loyal.
How often have you had one of your sales team tell you that business can be secured “if only we match or beat another offer”?
Not a great place to be, but not uncommon…
Imagine if you could extract 10% more in sale price from every customer, and reduce churn of customers by the same 10%.
I’ve recently been recruiting for a couple of growing clients and have been amazed at the variable ability of candidates to create and measure the true value of their product or solution.
A true conversation with a candidate who has been in a particular market for over 10 years:
Q) “Take me through your sales process in detail please”
A) “I establish what products the customer is buying currently, from whom he is buying them, and how much he is paying for them. I then introduce my products to him, explain the differences to his current purchases and then tell him the price, focusing on how much he might save”
Q) “Then what?”
A) “If the customer likes my product, but wants to negotiate on the price, I’ll do that myself, or refer it to my boss if he wants more”
Not good… your customers’ view of the value to him of your product is based on its cost, and not on the real value it will have. In this place you will always be vulnerable to predatory competitor pressure – this will stunt your growth, erode profitability and commoditise your business.
For you to maximise your growth both in revenue and profits, for you protect, retain and grow your hard-won customers, for you to win new customers without having to compromise on price, then you must do two things better than everyone else:
- Have a clear method for establishing the value of your products to your customers. It should be presented from your customers’ perspective and have nothing to do with price.
- Only hire sales people who can demonstrate the ability to establish true value – if they can’t do this convincingly then I’d consider it a risky hire.
– Mark Summers, Associate Sales Director at Sales+Profit –
