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TOP SALES MAGAZINE NOVEMBER 201926
Sales Methodologies and Selling
Hence, the allure to sales leaders ofmethodologies that purport to provide “theplaybook . . . predictable revenue . . . and a
repeatable cadence.” However, it’s rare that the same methodology is
relevant across buyingselling situations. Over time,most salespeople must deal with new products, newcompetitors, substitutes, and changing buyers andinfluencers at their customers. At any point in time,moreover, most salespeople have multiple accountsand face a changing array of customers and tasks. Onebuyer is primarily concerned with innovative productfeatures while another is most concerned with justintime delivery. The “out” vendor typically faces differenttasks than the seller of the existing solution at thataccount.
Developing and maintaining a relevant sellingapproach is a process, not a oneanddone eventdetermined by a particular methodology. It’s crucialthat reps adapt to different buying situations. If not,then (as is often said about academics) a methodologyleads your people to “learn more and more about lessand less.” It’s your responsibility to evaluate the fit of amethodology with the required tasks and to changethe approach when needed. The following are usefuldistinctions to keep in mind in analyzing sales tasks andkeeping selling uptodate in your business:
Differences within an industry. Probably the mostcommon response I get when I ask managers wherethey sell is a broad verticalmarket answer like “healthcare” or “financial services.” This is too abstract fordetermining sales tasks. Sellers of medical equipmentmust be especially good at managing and closingcomplex deals that involve price negotiations andcustom applications. Meanwhile, in biotech,salespeople must be knowledgeable about theresearch and results of clinical trials. A methodologywhich is indifferent to these differences will havelimited impact.
In financial services, a brokerage firm like EdwardJones relies on local networking and relationshipbuilding skills in selling a relatively simple set ofproducts to its buyandhold customers; Vanguard
Sales methodologies playan important role. Acommon approach in asales force allows forconsistency, dissemination
of best practices, acceleration of learning,and it helps the firm to scale becausemanagement then has common metrics tomonitor and evaluate.
Frank V. Cespedes
relies on a selfservice model for selling its noloadindex funds; and Goldman Sachs sells a broad array ofeverchanging complex financial instruments primarilyto institutional accounts. A meaningful salesmethodology in any one of these industry sectors hasmuch less meaning in the others.
Differences within a category. Sales tasks also differwithin the same category. Companies that sellsoftwareasaservice (SaaS) are a good example.Consider a SaaS service like collaboration software orfile sharing. These applications are typically notmissioncritical for customers and are sold at relativelylow monthly subscription prices. Buyers can gathermuch presale information via an online search. Here,inside sales organizations—“dialing for dollars”—areparamount. Sellers can conduct online demo’s andprovide a proposal to prospects with a few clicks onthe website. Key sales tasks include activities such asupsells (getting the customer to purchase a premiumversion of the product) and selling more seats.
A SaaS platform service such as CRM, on the otherhand, requires sophisticated integration for multiyearcontracts. This is a complex initial sale with a longerselling cycle that is harder to do online or by phone.Selling often involves the vendor’s engineers and keytasks focus on increasing product applicability andprice with new functionality sold to different decisionmakers, while minimizing customer churn.
Differences when target buyers change. Becausesales tasks are ultimately determined by buyingprocesses, using “product” as a determinant of sellingapproach is dangerous. An example is whencompanies move from SMB to Enterprise customersegments. ScriptLogic sold diagnostic tools to systemadministrators in the IT departments of small and midsized companies (SMB). It built a growing business witha landandexpand selling approach and a “Point, Click,Done” value proposition where the administratorcould expense the purchase on the company creditcard. But this approach was not effective in selling toenterprise accounts. Why?
Selling the same products to enterprise customersmeant a change in sales tasks and channelrequirements. The same software sold to SMBaccounts on a straightforward ROI basis must beintegrated into the Enterprise customer’s IT systemsand gotomarket model. In SMB, the owner of thebusiness is often the buyer and decision maker: point,click, done! But in Enterprise accounts, the decisionmaking process is more dispersed and operatingbudgets that are set over 12 years are hard to resetfor any vendor.
Among other things, these differences in usage andpurchase criteria shift the basis of the seller’s credibility:from knowledge of the software and best practices instandalone inside sales processes to knowledge of thatEnterprise customer’s business model and how thesoftware fits into extant customeracquisition activities.This means a different way of demonstrating ROI, theability to shepherd a project—not only a product—through the buying process, and salespeople who canwork with systemsintegration partners on presaleapplications development and postsale integration andservice issues at those customers.
Training firms that develop and deliver salesmethodologies have an incentive to apply theirparticular method everywhere. But buyer beware.Mort Lachman wrote for comics. He said that you canwrite for someone else only if you can “turn him on inyour head. . . . You have to hear their voice and theirinflections as you type; and hear the differencebetween how [each person] would say it.” Lachmanadvised that “if they sound all alike to you, be aplumber. You’ll make more money.” The same goes forselling: if all customers sound alike to you and yoursales methodology, do something else; you’ll makemore money. n
Frank Cespedes teaches at Harvard BusinessSchool and is the author of Aligning Strategy
and Sales, and is writing a new book on whatis (and is not) changing in selling and the
implications. Find out more here
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