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Home Sales

Tips for successful selling strategies



Don't Worry About Your Competition (Let Them Worry About You)

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by Mike Schultz

What, Me Worry?
—Alfred E. Newman

Who are your closest competitors? How are you going to beat your competition? What makes you better than your competition? What are the differentiating factors between you and your competition?

You get asked these types of questions all the time from your prospects, your clients, and your internal staff. Don't overdo trying to answer them.

Reading service firm business plans and talking to service business leaders about becoming more competitive are a part of what I do every week. Invariably, I find that the people who run services firms waste a lot of time and effort worrying about, and angling against, other firms that provide similar services. Usually, it's just not worth your time and focus.

Below you'll find an outline of four common mistakes that service firm leaders make and five tips on how to save time, money, and heartache when thinking about the dreaded competition.

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Telling Ain't Selling

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by Abhay Padgaonkar

"For every action, there is an equal and opposite reaction."
—Sir Isaac Newton

A fundamental question in selling is not why people sell, but why people buy.

People buy for their own reasons—not for the seller's. In fact, their motivation to buy may have very little to do with the reasons sellers think they should buy. When it comes down to it, people buy something to meet their needs or resolve the problems they are facing. According to Neil Rackham, author of SPIN Selling, people decide to buy when "the pain of the problem and desire for a solution have been built to the point where they are greater than the cost of the solution."

A good sales professional can help customers come to that realization. But it doesn't happen as easily as you might think. Despite the fact that most people learn the basics of conducting needs analysis, customizing solutions, and linking benefits to pain in their Sales 101 class, when they are out in the real world they forget to bring these classroom lessons to life, and somehow their competence, composure, and confidence evaporates. Faced with self-induced, pressure-filled selling situations, they confuse telling with selling.

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The Myth of the Elevator Speech

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by Doug Stern

I wish I had a nickel for every time a marketing director asked the elevator speech question: "What if someone asks, 'What do you do?' and you have 20 seconds to answer? What do you tell them before the doors open and one of you gets off?"

I think, therefore I am

Since professional service providers tend to spend a lot of time in their head, they're ready to pitch at the slightest glimmer of interest from another human being (prospect). The brain is the default filter for everything.

Lawyers, for example, might offer an elevator speech along the lines of "I add value to leading privately held companies by addressing the sophisticated legal issues relating to complex ownership succession."

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Using Personas as a Sales-Enablement Tool

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by Laura Patterson

A key part of marketing's job is to create sales-enablement tools that help the sales organization improve their effectives in generating revenue and increasing customer acquisition. This article explores the use of personas as a sales-enablement tool and discusses what personas are, why they are useful, and how to create them. The information from the article enables companies to develop and use personas—to give salespeople insight into the specific behaviors, expectations, and motivations of specific users and buyers in the buying process.

Marketing professionals are responsible for three things: finding new profitable customers, keeping profitable customers, and growing the value of those customers. We share the first responsibility—finding new profitable customers—with another revenue-generating arm of the company: the sales organization.

To attract new clients and to grow existing accounts, your sales and delivery teams must be able to articulate the business benefits. Research suggests that, for many sales organizations, a disproportionate amount of revenue is driven by a relatively small percentage of the sales force. Sales executives are constantly challenged to secure a greater contribution from average and lower performers. Often, sales executives try to implement a common sales methodology that leverages the processes used by the high performers. This process is known as sales enablement, and it is a key factor in accelerating customer acquisition.

For these processes to be successful, every salesperson must have the knowledge on how to handle different selling situations, such as how to position against a particular competitor and how to communicate a value proposition to each person in the buying process. The sales organization relies on marketing to create the tools to support the sales enablement process.

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Basics of Strategic and Tactical Pricing

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by Joy V. Joseph

Pricing is one of the 4 Ps of marketing and the most basic tactic, having been around for hundreds if not thousands of years. It is the most direct way of communicating value to customers and has the most direct impact on bottom-line performance.

At the same time, price as a marketing instrument is difficult to leverage effectively because it involves integrating decision-making vertically and horizontally within the organization. Apart from the bottom line, it can also impact brand perception: Too low a price may cause the brand to be perceived as a commodity, whereas too high a price runs risk of being priced out of the market.

Pricing has multiple levels of implementation. At the highest level is strategic pricing, which takes into account long-term profit objectives of the organization at brand or franchise level. The next layer is tactical pricing, which optimizes price to take into account short-term market dynamics, including demand shifts and competitive effects. The lowest layer is execution level, where SKU-level dynamics and inventory and supply management come into play.

If too much focus is placed on strategic pricing, short-term opportunities occurring due to competitive actions may be missed or aggressive campaigns may go unchallenged, leading to expensive market share loss, which may not easily be regained. On the other hand, a myopic focus on tactical pricing will miss the big picture, causing long-term loss of profitability.

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