Archive for April, 2012

Is it What You Sell, or How You Sell It?

Thursday, April 26th, 2012

The Corporate Executive Board’s Marketing Executive Council surveyed over 5000 individuals to determine what customers are looking for in a business-to-business supplier. Interesting data comes out about the drivers of customer loyalty:

    19% – Company and brand impact
    19% – Product and service delivery
    9% – Value-price ratio
    53% – Sales/purchase experience

Customers noted that they often saw little difference between one supplier and another in terms of brand, product and service. Even price was a small factor in sustaining customer loyalty. What customers said they valued most (53%) was in the sales experience itself; that is the actual sales conversations they had with suppliers on an ongoing basis. Some customers found suppliers horrible in the sales experience; other they found to be invaluable.

The CEB concludes that loyalty is won out in the field, in the tenches, during the sales call. It’s in the daily conversations with customers and a salesperson’s ability to outperform the competition in the sales experience itself.

Are you focused on what you sell or how you sell it?

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Is Relationship Selling Dead?

Tuesday, April 10th, 2012

No, of course not. Relationship selling – selling through building and nurturing strong personal and professional relationship – will never go out of style. But are Relationship Building sales reps the top producers in today’s sales organizations? No. In fact, they are the lowest in ranking amongst the top sales producers.

This disturbing information surprised the researchers as much as it might be surprising you.

Last month we wrote how today’s top sales performers are predominantly reps who teach, challenge, and bring insights to their prospects and customers. These so called Challenger Reps, as highlighted in recent breakthrough research by the Corporate Executive Board, are distinct from 4 other sales rep profiles: 1) The Hard Worker, 2) The Relationship Builder, 3) The Lone Wolf, and 4) The Reactive Problem Solver. Challenger sales reps bring deep customer business knowledge combined with bold and innovative thoughts and ideas. This rep profile represented 40% of all the top sales producers; Relationship Builders represented 7%.

So what’s wrong with traditional relationship selling? Nothing in particular. But in today’s tough selling environment, one has to do better than be known and well liked by the customer. Top reps today challenge and teach for differentiation, adjust appropriately per the various contacts and titles they engage, and assertively take control, willing to have tough conversations and dig deep early before moving on to the logical next step. Relationship Builders, seeking to please and advocate, typically don’t rock boats. Challengers stir the waters with insightful customer business provocation and impact customer learning.

Given that buying environments today involve consensus decision-making, while important, individually strong relationships don’t hold as much sway as in the past. Reps who drive insightful customer learning as part of the overall sales experience are more effective than reps who rely on their own individual attributes, or relationships.

Are you challenging customers while building relationships?

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