Hope is NOT a Strategy
Planning for your team’s sales success means knowing — down to the account level —where the revenue to hit your sales targets will come from. Few sales organizations do this well. Buck the trend and be one of them.
Simply stated, there are two sources of new revenue: new revenue from existing customers, and “New Logo” business (net new customers who represent a “new logo” on your customer list). Forecasting how much of your required growth will come from each gets your team focused on the right areas straight out of the gate.
New revenue from existing customers is the easiest place to start. The cost of acquiring this business is low, as you are connected to key decision makers already. These customers know you and love you. There are two approaches to developing new business within your existing customer base.
The first is to have each of your people consider their top existing customers and ask, “What products or services do these customers not buy from us that are a natural extension of what they do buy from us?” For example, if you are in the office products business, maybe your top account buys their consumables from your company, but has never spoken to your decor design division.
Next ask, “Who within the account can I speak to and what questions should I ask to learn if they have needs that these extension products will fulfill?” Determine whether you are appropriately connected to begin the selling process. Does the person who makes the consumables decision make the furniture decision? If not, how might you get connected to that person?
Nailing down this detail will create a quick strategic sales plan that can be acted on immediately.
The second way to generate new revenue within existing customers is solution innovation.
It may be that you are meeting your top account’s stated needs already. Leverage this relationship and engage them in a “round table” idea-generating exercise to explore potentially unmet needs and consider ways to meet them.
For instance, maybe your top customer is facing cost challenges associated with rogue purchases made outside of their discounted contract with you. Perhaps a managed inventory solution — a service you don’t offer today — would be a perfect fix for this problem.
Take this idea to Engineering, Marketing, and R&D. You just might build something that other customers can use too.
New Logo business is the next revenue channel to explore. This is often higher-margin business that, although it is small today, can grow meaningfully. Broadening your account base by securing New Logo revenue makes your business healthy and stabilizes revenue flow.
Acquiring New Logo business can be slow and frustrating. These accounts are seemingly impenetrable fortresses with skilled gatekeepers and guarded decision makers. Cold calling them is ineffective and useless. To meet this challenge, play the “Six Degrees of Separation” game.
First, have each person on your team identify their top ten New Logo target accounts.
Then bring the team together with their contact databases. Determine if any connections exist within those databases to the New Logo targets. Generating warm referrals into these targets will get you out of the cold calling trap and into productive sales meetings.
Sound account planning is not difficult to do. The strategies you create will take your team from hoping they hit their sales goals to planning to hit them. After all, hope is not a strategy.