Focus on Sales Strategy
Many times when I talk with business leaders about differentiation being more important than ever the conversation turns to improving sales strategy. This is valid if the core business is solid and worth a deeper dive. Successful leaders will take the time to understand the disruption that we will see in the next few years and redefine their customer strategy.
Is your Sales team prepared for the business environment that we are facing? Have you done a sales strategy review asking fundamental questions?
I have an overused saying - “Sales is fun, selling is really hard.” - because it is so true! Your leadership team puts a ton of energy into creating the right products, services, quality, support, and marketing for your target customers. Those are the areas of most differentiation and are especially important as we head towards the new business environment we face in the 2030’s. Get it all right and you still need a great sales team with the right strategy to drive revenue!
Good Sales Strategy
Good sales strategy always starts with the business goals, including aligning the revenue portfolio with expectations for the future. After closer review your current customer portfolio most likely isn’t supporting the overall company strategy. This is where sales strategy becomes ultra-critical:
Targets: Opportunities are everywhere for your sales teams to chase, and they will. They need direction from leadership on what a good target looks like and what a good deal is. This should be a concentrated effort led by sales leadership and informed by supporting functions. What customers are we targeting that are a good fit for our capabilities and long-term revenue profile? Show sales people real examples of what good targets look like and what not to target.
Revenue Portfolio: Be really crisp about the business expectations for the revenue profile two years from now. It should be a balance of:
Current Accounts - Every sales leader is all over this because it is built-in success for their teams. The question needs to be - out of our five top accounts which three are we going to shrink and which two are we growing with? This puts the selling focus on customers with higher potential and new business development instead of plodding along trying to meet sales goals. In the environment that we are facing this is critical!
Strategic New Accounts - Spend time here evaluating what new potential customers can become a strategic partner. Rather than directing your sales resources on broad categories like “verticals” or “regions” home in on specific companies to focus on. Cross-functional leaders should be leaning in to help identify the right targets and give the sales team all of the help they need.
Opportunistic Wins - Let’s face it, some revenue comes from replying to RFQ’s and open bids. Too many times there is a fixation with a bid opportunity because it is “real” and we distract our teams to respond. Make sure that there is an operational team in place to efficiently and effectively respond to add-on opportunities without distracting your most talented sellers.
The Stories Will Change
Let’s review my expectations for the 2030’s in light of the implications for selling. Many potential customers will be thinking much more about risk mitigation than price sensitivity:
They will be operating in an inflationary environment for the foreseeable future. Companies will be conditioned to raising prices and will be more tolerant to increases in input costs. While you are requesting price increases make sure that you have a compelling story including your efforts to insulate them further cost exposure.
Geopolitics will continue to impact the global supply chain making companies hyper sensitive to supply disruptions. They will be looking for partners that can provide stability. Your story needs to incorporate more operational highlights about how you are monitoring your inputs, running your business, and delivering flawlessly.
Higher interest rates will create pressures for companies in the extended supply chain. Customers will want to hear about financial stability and see evidence of how you are prepared in a more turbulent economy. Share your financial health and a summary of your supply chain analysis identifying potential distressed suppliers.
Access to labor will be a key factor including front line workers and critical roles. You should start to tell stories about how you are attracting and retaining talent across your business to continue to provide the best product and service.
Your story is still about your core capabilities and differentiation. Now a larger part of your key differentiation will be your lower risk profile in the competitive landscape.
Strategy needs a Sales Strategy
An overall strategy review is a requirement based on what we are faced with in the coming years. Much of that strategy talk will be about people building, focus markets, financial projections, adaptations of operating plans, and directing resources. A strategic approach to sales and selling is just as important to ensure success.
Let’s have an extended conversation about aligning your sales strategy to your future. An engagement with Economics Designed expands your ability to evaluate your strategic actions.
Strengthen your future by strategically designing the economics of your business!