Opportunities for further profitable sales can sit untapped in many businesses, because of a misalignment with strategy, product and salespeople fit.
Do you have the wrong sales team delivering your sales strategy? Ask yourself the following questions:
- How has your strategy and / or marketplace changed recently?
- How have you seen the role of 'sales' change over the last few years in your industry?
- How do your salespeople compare to your competitors?
- How do your salespeople need to sell now?
- How is your product offering behaving in the marketplace now? Was it once exclusive and now a commodity?
The definition of a 'good' salesperson is driven by many possible needs. Those needs are a function of industry standards, changing market conditions, competition, corporate strategy and culture, personalities and past experiences - just to name a few.
In addition, many organisations overlook the shift in their products or services from being customised and exclusive to a commoditised entity and the impact this has on their salesforce and sales efforts.
So it's not just how your salespeople behave that can affect sales, it's also how your product or service behaves.
Exclusive or commodity?
For many years (in the late 1980s and early 1990s) computers were highly priced, exclusive products sold by highly priced, exclusive salespeople. These salespeople were specialists, experts or advisors selling into the big end of town because these were the only businesses who could afford computers back then.
However, as:
- The cost to manufacture these products decreased, making them more accessible and cheaper to buy, and
- Customers education, knowledge, awareness and experience with these products and processes increased
... the style of the salespeople required to sell computers changed.
Now you can go to small or large retail outlets and buy a computer off-the-shelf from retail salespeople (most of whom are paid much less than their highly priced, exclusive predecessors). Or easier still, you can buy custom built computers online, thus eliminating the traditional type of computer salesperson altogether.
Daniel Pink wrote, amongst other things, about the commodisation of products and services in A Whole New Mind and specifically, how we need to look at creating value beyond product.
This is why more thought needs to be given to how a business translates its sales strategy into sales action. You need to make sure the current products and style of salespeople you have are matched accordingly.
If customer's product or service education level changes (i.e. they become more sophisticated), and there is change to the product and access (i.e. online), there will be a change in your salesforce requirements.
However, some products which can behave as commodities in their own right can become part of a complex sales solution and need salespeople who are specialists, experts or advisors.
Relationship selling
Business banking is really an essential service for any business, however the products on offer are often standard and commoditised in their own right.
So what is a business banking customer wanting from a business bank?
It depends on the relationship.
Current research indicates that many want 'ease of doing business' and 'value for money'. The research also shows that many customers are not as sophisticated and savvy in knowing the 'ins' and 'outs' of business banking and therefore, many would like to rely upon the expertise, advice and support from their business banker.
So business banking providers need to develop, train and support their business bankers to be specialists, experts or advisors.
As with business banking, there is often a great opportunity to capitalise on the potential long-term, in-depth customer-supplier relationships even if you have a range of commodity products.
Knowing your market, where your products sit - in isolation and in combination - and the types of salespeople you need to deliver your strategy is critical to sales success.