Situation: A tech company competes in a rapidly changing marketplace. The companies they serve constantly evolve their platforms. The company must respond rapidly to assure compatibility with both hardware and software innovations. Users adapt to new platforms at different rates, and the company must address their needs, as well. With so much time spent tending these diverse needs, how do they plan for market evolution?
Advice from the CEOs:
In the market you serve you must constantly reinvent yourselves as technology changes. Some platforms make changes on a 5-year cycle, while mobile platforms are currently on a 6-month cycle. This may force choices as to which platforms to serve. You also may want to focus on platforms where what you bring to the table is most useful.
You have made the strategic choice to tie the future of your company to a few large companies that dominate their markets. It is imperative that you cultivate close relationships with the technology as well as strategic leadership of those companies. This will give you more advanced insight into their plans, and they may even involve you in discussions about how the market evolves. If so, you will have positioned yourself for that evolution. These relationships may also become your exit strategy.
Businesses run on cash, or access to cash. As you cultivate relationships with your key customer companies, look for opportunities to invest in developing markets on a subscription basis which will provide ongoing annuity revenue. Figuring out how to leverage advertising or positioning options into your offering offers an additional revenue stream.
Situation: Sales technique is constantly evolving. Based on research completed by the Sales Executive Council, this evolution has accelerated since 2008. The implications for selecting, training and retaining top sales reps are significant. How has sales evolved in the last four years?
Advice from Michael Griego:
A 2009 study by the Sales Executive Council (SEC) – Replicating the New High Performer– studied 6,000 international sales representatives from 90 companies comparing top sales performers with core sales reps across 44 attributes.
The study found that Challenger sales reps represented the largest cohort (39%) of the most successful sales reps, followed by Lone Wolf (25%), Hard Worker (17%), Reaction Problem Solver (12%), and Relationship Builder (7%) sales reps.
The Challenger sales rep is best suited for a complex sales environment, while the Hard Worker is best for less complex enterprise sales or sales of off-the shelf products.
Identify the characteristics required for your sale. In addition, identify the mix of sales people currently on your team – from young, eager people just out of school to seasoned vets who can be realigned to current methodologies.
Selection should focus on the prior experience of the candidate. What have they have sold in the past? Ask for details of sales situations. How do they usually open a sales conversation? How did they adjust their sales pitch to different audiences? Were they hunters or farmers? Top talent reps can deftly go both ways.
Training involves reinforcing sales fundamentals plus the modern application of provocative consultative selling where salespeople provide true insight and challenge customers well beyond feature/function/benefit selling.
SEC study results indicate that if you are involved in a complex sale you need to identify the challenges, acknowledge what is happening in your client’s market and the challenges that they face, quantify the implications, and position potential solutions for exploration; all of this occurs BEFORE you start selling your specific solution.
Retaining the best sales reps fundamentally takes good sales management.
Pay special attention to top performers, while attending to all your reps and treating them fairly.
Challenge them to be better in areas that will enhance their success.
Recognition is a great motivator. Make them an internal mentoring resource for the rest of the team.
Identify your core (average) players and train them to act like your top players.
If you do these things they won’t be attracted to the shiny objects dangled by head hunters.