Editor’s note: Paul Kirch is CEO of ActusMR Inc., a Fort Worth, Texas, business and sales consulting agency. Kirch can be reached at 214-295-6111 or at pkirch@actusmr.com.
We work in a very unique industry. For the longest time, many research-focused firms grew through relationships and recommendations with little or no sales efforts. Many of the sales discussions involved an owner talking about his needs to another owner offering solutions. Today, the owners and senior staff are often far removed from that process. What else has changed, impacting the sales process? There are many factors but the following are four of the most crucial points impacting sales and relationships.
- Competition
The competitive nature of our industry has changed dramatically. Sales-driven organizations have developed a strong presence in our operations-driven industry. At one time, a research buyer might have one or two relationships to juggle. Today, there are a vast number of salespeople competing for the same business and with similar messages. - Buying level
Salespeople today are dealing with project managers or field staff that have different buying motives than the owner or senior staff. When they can’t differentiate one supplier from the next, or the differences aren’t important to them, they often look for the lowest price. We’re all trying to squeeze out the maximum amount of margin so buying cheap sample or services looks good on paper. Those year-end numbers are more important than ever. - Decision maker roles
How many times have you presented capabilities to a client, feeling great about what you said and they seemed to respond very positively, but then failed to convince them to buy? Did your point really create a unique value offering to them? Did you really have something that stood out? Are you sure you were talking to the decision maker? If they respond, “This looks great. I’m going to run it by my team and get back to you,” they aren’t the decision maker.
Perhaps management delegated the ability to select suppliers to individual project managers. What level do you target? Does top-down selling always work in our industry? Though it’s still a powerful approach, it might have little impact in a fragmented business where project staff can pick and choose the suppliers they like. - Getting your message across
Has a potential customer ever told you they’re happy with their current supplier? How do you respond to this? What if they stated that after you’ve presented and met with them? Have you ever used those words when talking to a salesperson? If someone is truly happy with their current supplier, why did they meet with you? They clearly are looking for something. Try asking what you missed. Did they meet with you just to make your acquaintance or were they looking for something that you didn’t provide?
When someone says they’re happy with their suppliers, it’s often just an easy way to reject another sales pitch. Or it’s their way of saying, “You didn’t dazzle us.” Unless someone is contractually bound to a supplier, it's likely they’re always on the lookout for another company to turn to when a need arises. If your message isn’t compelling, chances are you’re not going to be that firm. Find out what they are looking for and reformulate your message to win them over. In my opinion, “We’re happy with our current suppliers” is the easiest objection to address if you hear it. It also forces you to reanalyze your messaging and approach.
More prevalent than before
Thanks to the economy, each of the above issues is more prevalent and creating more challenges than before. If your primary contacts haven’t been laid off or downsized, the remaining staff is likely more focused on price. Unfortunately, if you’re selling on price only, there is zero loyalty. How do you create that loyalty? By creating real value – value that matters to those buying. Of course, how you follow through and back up what you’re saying is very crucial but you have to get to that point first.
Has your company really examined its sales messaging? What are the key differentiators that make you stand out? Are your staff members all saying the same thing? If not, are you just confusing your clients or perhaps blending in with your competitors? There’s far too much confusion created by firms that sell the same service/products as their competitors without finding a way to stand out from the pack. How do you avoid this? By investing the time to create actionable sales messaging. Never be on the receiving end of, “We’re happy with our current suppliers.” If you are, it’s time to work on your message.
Creating differentiation
Marketing material is focused on we-we talk (i.e., we do this, we do that). Sales messaging, however, focuses on action and focuses on creating differentiation in the eyes of your customers. If you don’t stand out as providing something different and better, you must have the best price or find another line of business. It might sound harsh but the reality is that buying behaviors are changing and will continue to change. Relationships will always matter but forming new ones will be harder if you’re not creating value in the eyes of those buying. Once you have an established relationship, you can win a great deal of business by providing reliable services.
Everyone believes that they work with an outstanding team and that clients love working with them and in many cases, it’s true. It also can garner you a ton of repeat business. However, it rarely opens the door to new business unless you happen to get a strong referral or a former client moves to a new firm and wants to work with you. To gain new business you need to focus a strong message on why you are the right choice. Having great people on your operations team is never a bad thing. What is a bad thing, though, is believing that it’s the secret to long-term growth in today’s economy. More than ever, focusing on growth and sustainability are critical to your company’s success.
A foundation for success
Is your competition growing and your company is struggling to maintain? Are they that much better than you? Or is their message to their clients and prospects more compelling. There are many factors that impact growth but sales messaging is one of the most important ways to create value. Are you creating value or are you creating confusion? Are you focused on thriving or is your goal centered on just surviving? Don’t blame the economy; blame your approach. Then get serious about your sales efforts by building a foundation for success though actionable sales messaging.