Before entering your current industry, extensive research was likely conducted regarding competition, consumer pattern, and of course, sales rates.  However, many forget to research the types of sales that consumers are engaging in within the industry.  Let’s take a look at an example of misappropriating funds to create value.  In this scenario, the strategy conflicted with the market paradigm, costing the company mentioned quite a bit of capital.

A large manufacturer of packing necessities had plenty of competition in a market in which 90% of the sales were transactional.  The costs of this particular company were  higher than those of the competition, and they were losing ground as sales were dwindling based on cost alone.  To combat this trend, the organisation felt it best to upgrade their sales team, recruiting those that would act as consultants to clients, helping to build value and justify the heightened costs of the company’s products and services. 
The new marketing angle cost the organisation $10 million to implement and increased operating costs further.  The new costs associated with sales calls and finalising an account were now more than the revenue that an average account generated in terms of profit.  Needless to say, the clients did not want or need the advice of a “consultant”, and the entire sales strategy was deemed a failure.  The end result, of course, was the loss of valuable capital and the exchange of a few important positions.

What happened here?  Wasn’t the goal to build value the right angle to take?  In many cases, an argument can be made that building value is imperative.  However, in an industry such as packing, clients just need packing supplies.  Sometimes, though it may not seem it, the answer is really that simple.  They did not require consulting services, therefore the increased price to offset the cost of the professional consultant/sales team drove clients away. 

Interested in how the company fared down the road?  A larger competitor eventually moved in and purchased the organisation at a substantial discount and changed the sales strategy to one that catered to transactional sales.  The company, now under new leadership, rebounded and reclaimed its place in the industry. 

This example is cited to show how the market strategy should not be challenged when consumers are making the decision regarding sales practice.  If the industry’s patrons call for transactional selling, then that’s exactly what they should get from your sales team and organisation.

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One of the simplest sales to close is the “transactional sale”.  These involve a client that understands exactly what they need, know how they want to implement it, and are simply seeking a provider to deliver it to them.  Little or no knowledge is required on behalf of your sales team in terms of the client requirements aside from those that they’ve already outlined to complete the sale. 

These clients will generally make their selection of product or service providers based on price or ease of acquisition.  It is important to understand the mindset of these individuals, as they often are quite irritated by lengthy sales pitches or extensive sales meetings.  Instead, be sure that your sales staff understands that these clients will seek a transaction without risk, hassle, or extensive time requirements. 

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Divide and Conquer... this concept has been in use since the Roman Empire was peaking, and while there are substantial advantages to subscribing to such a philosophy, there can be serious dangers in dividing things the wrong way in the business world. 

Many sales groups will segment clients based on size, but this does not represent what these clients actually mean to your organisation.  Instead, consider breaking them up into “transactional, consultative, and enterprise”.  This allows for a greater understanding of where the client is, what they need, and how you can benefit their efforts. 

When you handle complex issues in this manner, you enter the problem-solving phase in the right mindset, and when you’re thinking creatively in this manner, nothing is more important.  Remember, your greatest asset in the current business landscape is your ability to see the paradigm from another angle.  Use this to your advantage, and you’ll undoubtedly flourish.

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As we see the global economy continue to inch toward recovery, there are several factors that must be considered when analysing the art of sales.  Yes, it’s an art, and while there are likely a few incredible salespeople in your organisation, it has become increasingly important that a sales staff makes the most of the client interactions that they currently have on the table.  Sure, getting a bevy of leads is always helpful, but they will not to the bottom line much good when the proper angle isn’t being taken with them.  This is where the importance of utilising a consulting firm proves its value.  Professional consulting services can help develop useful skills within the sales team, boosting the closing results, and increasing the closing percentage.

The research arm at Huthwaite discerns that the most integral part of the sales process is creating value.  But, spelling these things out for your potential or existing clients is not the way to go about achieving this end.  Instead, allowing them to see these problems for themselves breeds confidence and allows the client to properly walk through the thought process, embedding the need in their plans.  From this point, explaining the magnitude of such requirements is well-received, as they now understand just how important the points are.

Huthwaite’s research concludes that this simple point is the best way to differentiate your organisation from competition in the marketplace.  Regardless of your consulting field, properly leading clients into understand renders much greater results than simply pointing to things initially.  Consulting services are everywhere, but when you establish your organisation as one that properly takes a client through the process, your image and reputation will escalate.

Making the most from each client interaction is the key, which is why it is paramount that a plan is properly researched and put into place before the meeting.  When the meeting is underway, be sure that the client has the floor.  A solid consulting firm will allow the client to do the talking for at least 60% of the time.  This allows for complete disclosure, opening up a channel of communication that will generate solutions.  The easiest route to take in getting your client to open up and facilitate the communication is by asking provoking questions.  Avoid questions that clients already know the answers to, however.  Asking them, “How many locations does your organisation have?” will do little for your relationship.  Instead, create value through your queries by asking questions that they may not have considered.  This creates a “need” that can be remedied by your organisation.

What is the overall goal of such interaction?  Well, advancing the relationship, of course.  Creating the need for action will facilitate the client agreeing that said action is imperative and electing to take the necessary steps to move forward.  Remember, advancing can, and should, be done in stages, so be sure that realistic goals are met that will push the relationship and business actions along at a comfortable, yet efficient, pace. 

Another important element that a quality sales team must understand is the concept of “re-scoping”.  This involves a client that mentions needs that don’t necessarily fall into your organisation’s specialty.  When you help them to see a specific situation from a different angle, you can still show the value of solving it through your firm.  Focus on your existing skills without deeming a client’s needs as irrelevant, and you’ll increase the overall value and perception of your company.  Ideally, the hope is that an entire sales team, from top to bottom, will understand that focusing on quality versus quantity can have lasting effects in the sustenance of an organisation’s success.  Remember the purpose of your interactions by understanding what the client truly wants from your time, and you’ll have a long list of happy organisations that utilise your expertise.  Refer to the following, when setting goals to achieve for your clients:

1. Understand their current situation and industry position
2. Inform them of common pitfalls or current risks that exist in their market
3. Take them through solutions, ensuring that they understand the contingencies as a whole
4. Help them calculate and plan their solutions

Navigating the New Normal can be tricky for organisations that do not understand how the business landscape has shifted.  Create solutions for these clients and you’ll be deemed an expert in their eyes, creating value for your efforts and ensuring long-lasting business relationships.

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"How to Sell to Customers at a Premium".
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