Strategic Selling

No business can survive without generating sales. Whether one is a wholesaler, manufacturer, retailer, tradesperson, or service provider, a lack of sales will inevitably lead to failure.

While some businesses may believe that customers will simply come to them without active selling efforts, it is crucial to shift this mindset. Before any product or service can be sold, it is necessary to sell oneself.

So, how can a business maximise its sales? How can it convert more prospects into customers and increase the sales volume of existing customers? What strategies can be employed to enhance the performance of the sales team?

The success of a business’s sales team and the subsequent sales volume does not happen by chance. It is the outcome of a well-planned, systematised sales approach.

The following are steps that successful businesses take to maximise their sales:

Develop the sales team

Firstly, it is essential to have a clear understanding of who is responsible for sales in the business. Is there a dedicated sales team or are sales carried out sporadically as business opportunities arise? Do the salespeople proactively seek sales or wait for customers to approach them?

It is crucial to evaluate the current sales team’s performance and identify their strengths and weaknesses. Is there a significant variation in performance among the team members? What do the most successful salespeople do differently? What strategies and tools do they use to achieve their success?

It is necessary to obtain feedback from the entire team, including those who are not part of the sales team, and to actively listen to their suggestions. It is also essential to determine whether the salespeople genuinely enjoy selling. If they do not, they may not be the right fit for the job. Effective salespeople should possess excellent communication skills, establish rapport quickly, and be good listeners. They should aim to serve and help customers, and their selling approach should be solution-oriented. If any sales team member does not enjoy selling, they should be either moved to a different role within the company (if they are qualified) or let go.

Recognising individual strengths is critical to success. For example, is a team member a Hunter (skilled at generating new business), a Farmer (good at maintaining existing business), or a Gatherer (skilled at identifying sales opportunities)? Each team member possesses unique skills and should be assigned roles that align with their strengths.

After ensuring that the sales team comprises the right individuals for the job, it is crucial to provide adequate support. This includes ensuring that the sales team possesses the necessary skills and resources to perform their duties effectively, which can be achieved through consistent training. Encouraging attendance at sales seminars and workshops can also be beneficial. Moreover, weekly sales meetings should be held to discuss various strategies employed by the team and identify those that are working well.

Another important aspect is to educate the sales team about the significance of building lasting relationships with customers. Providing the necessary tools and support to establish such relationships is crucial. Sales success relies on attracting new customers and retaining existing ones, which requires constant improvement and refinement of the sales process.

It is vital to establish a customised sales system that aligns with the specific needs of the business. Involving the sales team in the process is recommended. Keeping this item on the weekly sales meeting agenda is a way to ensure that the system is continually refined and improved. It is important to incorporate ongoing customer support and nurturing programmes into the sales system.

One effective approach is to model a successful system from another organisation. Within the business, some individuals excel in certain aspects of selling. For instance, some are adept at upselling, while others are skilled at securing referrals or closing deals. It is necessary to identify the strategies that contribute to the success of these top-performing individuals. This may require role-playing or accompanying them on sales calls or recording their interactions to identify what sets them apart. Once the success factors are identified, they can be incorporated into a customised sales system and employed consistently.

It is essential to encourage salespeople to differentiate themselves from others in the industry. To set the business apart, salespeople should focus on the small details that can have a significant impact.

Salespeople should aim to add value wherever possible. This can be achieved by providing clients with relevant information on how to use the product or service to improve their business efficiency or generate more revenue. Additionally, giving clients novelty gifts or setting up systems to note special occasions like birthdays can also help in building strong client relationships. It is crucial to take steps to differentiate the business and its salespeople from competitors, such as creating a business profile through publicity. Salespeople should strive to be consultants to clients rather than mere salespeople. They should aim to establish and maintain long-term relationships with clients based on trust and concern for their success, informing and educating them along the way.

After developing a sales plan, it is time to turn attention to the overall business strategy.

The following steps are recommended:

Creating and maintaining an up-to-date database of critical information is crucial. The more information available, the more effective the targeting of sales efforts. For instance, seeking feedback from customers on how to make purchasing more accessible and attractive can be valuable. It is also important to inquire about ways to improve customer treatment. After conducting such interviews, compile a list of recommended changes, seek input from the sales team, and obtain their commitment to implementing the changes.

The Pareto Principle, also known as the 80/20 rule, can be a useful tool in sales strategy. The principle suggests that 80% of a business's revenue comes from 20% of its clients. Analysing sales records is likely to confirm this pattern. In such a scenario, it is essential to focus on the 20% of clients who generate 80% of the revenue. These are the "A" clients who are typically more loyal, less troublesome, and more profitable. It is also crucial to consider the "B" clients and evaluate how they can be converted into "A" clients. Determining what it would take to achieve this and devising a plan to implement it is recommended.

As sales efforts are gearing up, it is crucial to have appropriate measures in place to assess performance and determine the effectiveness of strategies. The following vital statistics are recommended:

  • Enquiries
  • Conversion rate (the number of enquiries required to make a sale)
  • Margin on each sale
  • Average dollar sale
  • Number of sales per customer
  • Lifetime value (on average) per customer

It is essential to record these statistics regularly as they provide valuable information for calculating the return on investment. For instance, by calculating the conversion rate, it is possible to determine the number of enquiries required to achieve a specific sales target. It is also important to consider the impact of improving the conversion rate or increasing the average sale value. Such scenarios should be assessed to set realistic sales targets.

Thorough preparation is essential before visiting a customer. Sales representatives should be well-prepared by doing their research in advance. The purpose of the visit must be clear. Is it to understand the customer's needs, learn their decision-making process, establish a relationship, introduce a new product or close a previous enquiry?

When dealing with a business, it is essential to determine who else will be involved in the decision-making process and who will be affected by the decision. Understanding the customer's needs and desires is crucial. Determining the desired outcome they want to create, and if they are aware of all possibilities, should be assessed. Additionally, it is vital to explore the consequences of what they are requesting.

Successful selling depends on clarity and education. The clearer the brief from the customer on what they want, the easier it is to assist them. Creating a form with questions or a needs assessment to gather information can help in developing a proposal or quote to achieve the desired result.

After a customer makes a purchase, it is essential to consider if they require any additional products or services. Offering a complete solution that packages products or services may give the business a competitive edge by saving the customer time, money, or reducing inconvenience. If the business is unable to offer the complete package, exploring the option of a joint venture or partnership with other businesses can be considered to provide the required solution.

Upselling is an effective way to generate additional revenue with minimal extra cost, thereby increasing the average dollar sale. It is crucial to ensure that all sales team members are aware of the available upsells. If upsells are not currently available, creating them by using complementary products, either from the business's own portfolio or from external sources, is recommended. Developing scripts and systems for the sales team to upsell with every sale is also advisable. By implementing these strategies, the business can significantly increase revenue and profitability.

To achieve consistent positive results in telephone or sales calls, it is recommended to develop scripts for salespeople whether they are selling in person or over the phone. Most procedures in the business can be scripted, including addressing common objections.

Instead of giving impromptu responses when a prospect voices objections such as 'that seems expensive', which may or may not lead to a sale, it is advisable to script a solution that provides a list of reasons why the product or service is worth the price and the value it adds. This should be done for all common objections. While scripting, it is essential to allow salespeople to personalise the scripts to suit their style and approach. By developing effective scripts, the sales team can consistently deliver a compelling sales pitch and overcome objections.

Developing a sales track is an effective way to train the sales team. One method is to create a diagram illustrating the flow of a sale, including the necessary steps and associated paperwork. Additionally, creating a script at each stage as a guideline for the team is advisable, while allowing room for individuality to accommodate different personalities. By following a structured sales track, the sales team can consistently provide a compelling sales pitch, thereby increasing the likelihood of closing more sales.

To provide the best customer experience, it is crucial to have all necessary tools, resources and technology in place. Processes should be outlined, and systems documented to ensure consistency in service delivery. Offering various payment options such as credit cards and phone orders, and providing additional services such as free delivery can enhance the customer experience. It is essential to go the extra mile and make doing business with the company as easy as possible for the customer. By providing a hassle-free experience, the business can create a competitive advantage, increase customer loyalty and generate repeat business.

Ensuring a quick, consistent turnaround time is essential to providing excellent customer service. Providing a mere price quote is not enough, as it may lead the customer to make a decision based on price alone. It is advisable to offer comprehensive information that enables the customer to make a fully informed decision. Additionally, highlighting the other benefits of dealing with the company, such as differences in quality, delivery, service, follow-up service and guarantees, can positively impact the decision-making process. By providing a comprehensive overview of the company's offerings, the customer can make an informed decision and choose the best option for their needs.

To increase the chances of winning a tender, it is vital to understand the decision criteria. One way to accomplish this is by asking the people who issued the expressions of interest or tender. Inquiring about the decision-making process, who the decision-makers are, what their individual requirements are, and what information they need can provide valuable insights. Additionally, understanding whether they would consider a non-conforming tender and the type of supporting information required, such as visual aids, colour, video, audio, or in-person presentations, can assist in preparing a compelling tender submission. It is essential to ask the necessary questions and gather as much information as possible to ensure the best possible chance of success. Adopting a journalist-like approach can provide valuable insights, and with more information, the company can make better decisions, similar to a general on the battlefield.

Sales can become complicated when more than one decision-maker is involved in the purchasing process. Therefore, thorough research is an absolute prerequisite for success in such cases. Anything less would be akin to relying on luck to win the lottery.

In any complex sale, four types of buyers need to be identified. These roles may be fulfilled by two people, or one hundred people may play one of the four roles. Missing anyone involved in the buying process or having incomplete information can sabotage the sale. Hence, identifying all four types of buyers is crucial for a successful sale.

The four types of buyers to identify are as follows:

This refers to the person who signs or ultimately authorises the signing of the cheque, possessing the power to veto anyone else involved in the process.

They are responsible for verifying all specifications, pricing, and legalities of the sale. They may have been the ones who issued tenders or expressions of interest.

This person is affected by or utilises the product or service being sold in their workplace or job.

They may or may not be directly involved in the sales process, and they can be either internal or external to the organization. They possess knowledge about the key players and can guide you towards the right doors. The Economic Buyer is the best person to coach you.

In any complex sale, it is important to ask yourself several questions. What information do I need to have to ensure that this buyer will make a decision in my favour? What information is missing? What information does this decision-maker/buyer require to make a favourable decision in my favour?

There are also several approaches to increase your success in identifying the needs of your customers/clients in such circumstances.

Numerous consultants and salespeople in intricate settings tend to employ the SPIN approach. In the preliminary encounter, they embark on a questioning process based on specific criteria, as follows:

Posing queries about the organisation and ascertaining prevalent issues.

Identifying the problems that give rise to the issues through a process of suggesting and discussing potential solutions.

Determining the implications that may arise if the problem remains unresolved.

This process enables you to pinpoint the exact area that requires attention from your product or service. Although this initial stage does not necessarily provide a definitive solution, it is crucial to engage in meticulous questioning and selective feedback to enhance the likelihood of securing the business with the client. The SPIN selling technique is, essentially, a highly consultative approach to selling.

In the realm of sales, the presentation of one's product or service holds paramount importance. Therefore, it is imperative that your sales team possesses a sales kit that distinguishes you from your competitors. This kit should encompass, at minimum, a business card, brochure, and a concise form or needs assessment. Ascribing a value to these components can foster a perceived sense of worth in the client's mind.

Cold calling is a more intricate process compared to selling to individuals who are already familiar with your brand. Therefore, to reach potential customers, it is advisable to provide offers of complimentary services, free products, and easily accessible information kits.

Generating captivating reports for your clients and incorporating coupons in your direct mail can entice potential customers to express their interest and seek additional information. The report, audiotape, video, or trial product offered must hold significant value for the client. Understanding the type of information that resonates with your clients and potential customers is crucial. To gain this knowledge, consider engaging a professional telemarketer or administering a survey. To incentivise a response, offer a gift to those who participate.

However, it is essential to exercise caution when implementing changes as some individuals may resist change or being instructed on what to do. It is advisable to approach the introduction of new methods as a collaborative team project. This approach fosters teamwork and promotes the team's active involvement in implementing the changes and adhering to the new systems.

Please take some time to create your sales action plan based on the following points:

  • Establish a training and development plan for your team.
  • Develop your sales systems, scripts, and processes, including upselling techniques.
  • Differentiate your business. Seek input from your sales team on ways to accomplish this.
  • Conduct research on your clients to determine their needs and preferences.
  • Focus on your “A” customers, which comprise 20% of your clientele and generate the most profit and income.
  • Measure the outcomes of your sales efforts.
  • Set targets and use data to determine the necessary steps to attain them.
  • Become an information provider, offering your customers valuable knowledge to complement your product or service.
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    IMPORTANT NOTICE

    Information contained in this document constitutes general comments only for the purposes of education, and is not intended to constitute or convey specific advice. Clients should not act solely on the basis of the material contained in this document. Also, be aware that changes in relevant legislation may occur following publication of this document. Therefore, we recommend that formal advice be obtained before taking any action on matters covered by this document. This document is issued as a guide for clients only, and for their private information. Therefore, it should be regarded as confidential, and should not be made available to any other person without our prior written approval.