July 2007
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Welcome:
In this months issue, the senior thought leader at the Value
Forward Network talks about whether you are turning a simple
sale into a complex sale unnecessarily. How do these ideas align
with your complex selling environment? I look forward to your
comments.
Sincerely
Rick Erling
Editor - The CxO News
www.thecxonews.com
editor@thecxonews.com
Dallas, Texas
(214) 295-7631
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Is
Your Sales Team Making Your
Complex Sales Process Too
Complex?
By Paul DiModica
Often, sales teams and the executive
management staff struggle with their approach to
what they call complex selling. The term
"complex" is defined by Merriam-Webster
Dictionary as:
Complex: composed of two or more
parts and is hard to separate, analyze, or
solve.
So what is a complex selling environment? A
complex sale happens when there are multiple
participants, sometimes located in different
geographies all directly or indirectly
actively involved in
the decision process to buy a product or
service.
4
Mistakes Most Salespeople Make
In Complex Sales
Today, most companies incorrectly define
complex sales and this affects their ability
close business and increase corporate revenue.
- Salespeople assume that if they are
interacting with lower level managers who
like or approve of their offering, then the
prospect is qualified and in an active
buying mode.
This mistake complicates a sale
because lower level contacts are
professional lookers who will meet with
vendors just to look busy. To be qualified,
prospects must have management buy-in with
funding approved and the prospect must take
action steps during the sales cycle to prove
they are qualified buyers.
- The best way to sell companies is
through lower level managers because they
are more accessible than senior management.
This is a mistake because your first
entry point into a company dictates how the
prospect sees you. If your first contact is
a lower level manager below the title of
Vice President (in the U.S), you are
perceived to be a commodity before your
sales cycle starts.
- Salespeople give equal weight to working
with lower level managers as they do with
senior management and hope lower level
contacts will induce senior management to
buy.
This is a mistake because lower
level associates may suggest, recommend or
approve . . . but they normally don’t buy.
Giving equal time and sales cycle support
to lower level prospects implies that you do
not know how to get to senior management.
The result is that you lose control of your
sales cycle. Often, without a proven sales
process, sales teams in complex sales just
take the least path of resistance to show
their management team they are doing
something by talking to anybody who will
listen.
- Salespeople believe that lower level
management can communicate their business
value for them to senior management.
This is a major mistake. Selling
professionally is complicated. Assuming that
lower level management contacts who have
operations, engineering or professional
service backgrounds will succinctly
communicate your business value and manage
all of your sales objections correctly when
they go to a steering committee, decision
team or short-list committee is totally
wrong. They are not you. If they were you,
they would be in professional sales.
5
Reasons Why Management Teams Make These Complex
Selling Mistakes
- When a company's revenue is down, the
senior management team incorrectly thinks
that meeting with lower level contacts is
better than having no prospects at all in
their sales pipeline.
- When a senior management team's emotions
and ego are driving the company leadership
rather than logical and strategic analysis
of the company's business revenue capture
problems, the management team believes it
knows everything and its sales team needs to
follow their direction. (This is common in
privately held companies and is called the
King in the Kingdom syndrome.)
- When the company does not align
marketing, sales process and corporate
strategy into one defined revenue capture
approach, they just attempt to contact any
level of entry and hope someone buys.
- Senior management prospects buy based on
the value your product or service brings to
their department or company. Lower level
contacts buy based on the features,
functions or price of your product or
service. Often, companies focus on the wrong
value, which ends of pushing away senior
management buyers and enticing lower level
contacts.
- Salespeople often hold onto lower level
contacts hoping that if they hold on long
enough, they may ultimately sell someone.
That is not a sales process -- it is a
waiting process and most salespeople today
don’t have two year sales quotas.
How
Should You Manage a
Complex Selling Environment?
- In large complicated sales that involves
multiple contacts with different titles who
are located in different locations,
learn how to penetrate the "no talk zone" of
senior management and start in the "value
selling zone" at the VP level and above.
Contacting lower level prospects as your
first entry point is a reflection of your
inability to correctly communicate value to
senior management.
- Use prospect engagement outlines
to manage lower level prospects.
- When working with senior management
prospects, understand why they buy
and why they will not buy from you
and then make them take actions steps with
you during your sales process so they will
prove to you that they are qualified buyers.
- When selling in a complex selling
environment, create marketing
material and business proposals that
communicate value based on how senior
management sees your value . . .
not how you see it and use it as "invisible
salespeople" when you are not there.
- Often complex sales are not really
complex because of what the customer expects
you to do -- but because of the way your
firm sells. Complex sales became complex
because companies allow prospects to manage
their sales cycle for them -- so
don't allow prospects to manage your sales
cycle. If your marketing,
proposals or sales methodologies communicate
commodity -- you force your sale into a
defensible position and are passed to lower
level managers.
They key to complex selling is to
sell senior management by proving you have a
right to sell at their level . . . and then
manage lower level prospects through the
authority that senior executive gives you.
If you can’t do this, then you have
created a complex sale that should not be
considered complex. |
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