| The cost of finding new customers is estimated to | | | | a taste for selling in a more customer-focused, |
| be between 500% and 800% higher than that of | | | | consultative manner. This yields better results for |
| repeat or additional sales to existing customers. With | | | | both the sales representative and the customer. |
| profitability, therefore, significantly higher when selling | | | | Sales at this level involve mid- to upper-level |
| to existing customers, it's time to decide what kind | | | | management in the buying process. For these buyers |
| of sales representative you want to be: transactional | | | | the decision making process is aimed more toward |
| (hunter) or consultative (farmer). | | | | deriving operational results. The sales transactions are |
| Challenges | | | | typically larger, involve multiple products and bring |
| There's a lot of pressure on salespeople to | | | | value to the specific objectives of those manager |
| constantly keep their pipeline full of warm to hot | | | | decision makers. The sales professional has an |
| prospects. On top of that, sales quotas are ever | | | | opportunity in this scenario to build trust by asking |
| more challenging in an increasingly tight economy. | | | | probing questions and proposing a solution that helps |
| Competition is hotter. Buyers are more sophisticated. | | | | the manager/buyer to reach their objectives - to act |
| Commoditization is rampant. Your unique value in the | | | | in a consultative manner. This type of sale presents a |
| marketplace has been eroded by the incessant claims | | | | great opportunity for a thoughtful sales professional |
| of your competition that they can do everything you | | | | to demonstrate his or her willingness and acumen to |
| can do - and do it better. Any (or all) of this sound | | | | be a trusted business advisor. |
| familiar? | | | | Farming |
| Hunting | | | | The most successful sales professionals employ a |
| While these are all common factors we're forced to | | | | customer-centric method of selling, very focused on |
| deal with regularly, at the end of the day increasing | | | | the needs and wants of their prospects and |
| sales and profitability is the job of every sales | | | | customers. They act as trusted business advisors |
| professional. Sales professionals who are primarily | | | | working to bring strategic value to each transaction. |
| "hunters" typically look for their sales increases from | | | | These salespeople realize that to accomplish their |
| transactions with new customers. They likely are | | | | goal of maximizing value for their customers they |
| successful cold-callers who work hard at finding | | | | need to get out of the trenches and interact with |
| sparks of interest in their offerings that they then | | | | C-Level (CEO, CFO, CIO, etc.) executives. Decision |
| develop through their sales funnels to close. They | | | | makers at this level typically transact more complex |
| uncover prospects who have a need for their | | | | deals that have a direct impact on their businesses' |
| product or service and are willing and able to make a | | | | bottom line. |
| purchase now. Or they repeatedly respond to bid or | | | | Evidence indicates that selling at this level has an |
| quote requests with little hope of engaging the | | | | abundance of positive implications for all parties. Just |
| prospect in an investigation of their true needs and | | | | getting to this level takes solid planning and research |
| wants. | | | | by the sales representative. The information |
| Sales "hunters" often concentrate their efforts on | | | | gathered in this process gives the sales |
| meeting the lowest common denominator with their | | | | representative a basis for credible conversation and |
| prospects. They frequently deal with "default" buyers | | | | further exploration with the executive buyer. |
| - those who are technical buyers in larger | | | | Investigation and communication at this level |
| organizations or those who wear many hats in | | | | transcends departmental rivalries and addresses the |
| smaller organizations but are not professional buyers. | | | | customer's strategic concerns. Even in smaller |
| These buyers are looking for the most expeditious, | | | | organizations, using this approach positions the sales |
| least painful transaction they can arrange. They | | | | representative to become a strategic partner with |
| accomplish this by limiting the scope of the purchase | | | | their customer, wherein the customer relies on the |
| to single products that meet predetermined | | | | trusted advice offered and the results achieved |
| specifications or features. Their fervent hope is for | | | | through the relationship. |
| the product to deliver benefits limited in scope to a | | | | Customer loyalty arises naturally out of the |
| very narrowly framed need, problem or issue. | | | | strategic-level partnership created when the sales |
| Transactional sales are often price driven rather than | | | | representative takes a genuine interest in helping the |
| value based. | | | | customer meet strategic goals. The existence of a |
| Many transactional customers are new customers. A | | | | strong, customer-focused, strategic relationship |
| worse situation is that repeat customers are still | | | | effectively locks out competitors, thus lowering the |
| transactional. This would indicate that the customer | | | | cost of doing repeat or additional business with that |
| doesn't have any particular loyalty to the sales | | | | customer. Sales people who employ this method of |
| organization or representative and that any | | | | selling are "farmers" sowing seeds of trust and |
| relationship that exists is very fragile. It probably also | | | | harvesting increased sales, higher profitability and |
| means that, for the sales organization, this is just a | | | | customer loyalty. |
| marginally profitable customer. | | | | Customer-focused solutions, increased sales, higher |
| On the right track | | | | profitability . . . everybody wins! You decide what kind |
| Somewhere along the way to becoming less | | | | of sales professional you'd rather be, hunter or |
| transactional, some sales representatives start to get | | | | farmer. |