Archives for category: Strategy

In a previous post, I talked about allowing the buyers who know what they want to do their thing and not getting in their way. In many businesses, however, buyers need help buying. They need educating, guiding, encouraging, challenging and persuading.

You may lament that your buyers don’t know how to buy. This may be true, but it’s a cop out on your part. They don’t know how to buy for a variety of reasons. Perhaps you don’t make it easy for them. Perhaps they’re too busy. Perhaps they haven’t acknowledged they need to buy. Perhaps they hardly ever buy this sort of thing – or even they’ve never bought this sort of thing before – and so why on earth should they be as close to this as you are?

We all make the mistake, once we’ve been in a company a while and have come familiar with how our stuff works, of thinking customers are interested in our stuff, never mind understand it.

Spend time thinking about your buyers. Think about the problems they have and the options they have to address those problems. For many businesses, even though they know they’re stuck in the weeds, it’s a case of ‘better the devil you know.’ Think about where they want to get to, what’s stopping them from getting there, and how your stuff can uniquely help them. If your buyers are sufficiently different for you not to be able to think about them as one group, then put them in groups that do make sense and think about those groups separately.

Think also about the steps they should take to buy from you, and what you need to share with them to get them to keep moving forwards. They don’t necessarily know the steps, so they will need evidence from you that these steps have worked for similar companies.

You’ll know your approach is working when they stop asking about themselves and start asking ‘how are other companies doing this?’ and ‘how are you doing this?’ And, who knows, if you illuminate the path well enough they might self-select and do the buying themselves.

I met with a company in the software space recently. They are what you would call a high velocity business, focusing on a transactional business model for sales. They used a phrase that resonated with me:

“You don’t step in front of a speeding train.”

If your customer knows what they want, and is ready to buy, let them. Don’t insist on going through your sales process in the hope that you might be able to increase the initial deal size, because you run the risk of slowing down the deal or halting it altogether. Maybe they want do business with you without dealing with a salesperson.

This strategy of using your sticky product as the tip of the spear allows you to go back subsequently and sell more stuff to them. You land with a small sale and then you expand the business.

Of course, this works very well in businesses that have a strong compelling event, a market-leading product that can be bought ‘no touch’, and great marketing. Customers can find what they want and self-purchase. It’s not so easy for companies who are selling services, or products that are less transactional and more complex in their nature.

If you are blessed this way, though, it’s case of both caveat emptor and emat emptor. Let the Buyer Beware, and Let the Buyer Buy.

You have this great business idea. You haven’t seen anything like it and you’re convinced you can make a success of your venture. The most pressing question, unless you happened to be prodigiously wealthy – so you already know how to get money and make more of it – is around financing the development and take-off of your idea.

You could bootstrap the business, running it on your own savings until it starts to ‘wash its own face’, but you might need more than you reckon on as these things always take longer than the best laid plans. You could go to friends and family and secure relatively small amounts from a relatively large number of people. At this point you might already need to start giving some of your company away in return for the investment, and by now you’re starting to think about the level of relationships you will have with these investors.

Those who don’t have access to their own funds or the funds of their nearest and dearest need to start playing the dating game with professional lenders, who might be high net worth individuals, institutions, state/semi-state bodies or private investment companies. It’s at this point that you need to develop an understanding of two things, very, very quickly. The first is how investment business and its clandestine terms work: seed this, A round that, mezzanine the other, and so on. The second, arguably even more important, is the type of investment partner you want to work with and who will be good for your business as it grows. Cultural fit is of paramount importance.

If you’re in the third camp, needing to start the dance with someone who lends and makes money for a living, then I can recommend this post for an excellent primer. There are some additional very good links within the post. I don’t know the guy at all, but he writes well and he seems to mean well too. Good luck!

There’s an old adage that nothing happens in a company until somebody sells something. In fact, it’s also true of you, when you’re trying to sell yourself or your idea.

I do a bit of work as a mentor in the technology sector and so I come into contact with quite a few very early stage companies. In the tech sector in Ireland there is plenty of support, guidance and funding for building your software product. Once you’ve built your product, and you have to start selling it, in other words commercialising your idea, the funding is not so forthcoming.

This is a problem, because many of the people who have the idea for and develop their software product also have a lack of knowledge and confidence when it comes to selling it. Start-up companies can avail of a few meetings with sales and marketing mentors like me, but that’s nowhere near enough. They either need to start full-time selling themselves or else find the funds to get someone with the expertise to do their business development. They don’t have the money to do that, and the business development specialist is probably not going to work for free, or even equity, if they can’t see the promise of steady sales. Which brings it back to the fledgling business owners, who have to do the work themselves.

Start-ups have to start, but if they’re not capable of starting, then the money already invested in them, by them or others, is wasted. We need to train our entrepreneurs to sell, or else fund the sales expansion efforts and increase their chances of turning their idea into a functioning, growing business.

There is a term in sales remuneration called OTE. It’s a three-letter acronym – aka TLA 🙂 – naturally. OTE stands for On Target Earnings or On Track Earnings, though I prefer Opportunity to Earn myself. In sales jobs you can have a base salary element and a commission element that together give you your OTE if you hit your sales quota.

In a previous post I talked about the importance of having a product/market fit. Once you have that, then you need to scale your business so that you can capitalise on your potential. Your ‘opportunity to earn’, therefore, is to be found quite literally in the word ‘promote.’ To attract the right customers in the right numbers, you need to effectively promote your business.

If you’re a business owner/manager with a successful product, you want to take your business to the next level and you think the key is something to do with this marketing lark, here are some things to think about.

– Do you know your market? Can you profile it, describe it, and define it, tightly?

– What slices or segments make up your market? Remember that you can slice the market ‘pie’ according to things like region, industry, size etc, but also according to what is important or needed by customers. How you segment your market is crucial.

– Which segments of the market do you want to sell to? Even though you want to grow, you can’t be all things to all people. Well, you can, but not for long.

– What are these buyers like? What are the buyer ‘personas’? How do they prefer to buy?

– How will you position yourself to these segments? Positioning is the third leg of the segment-target-position stool on which will sit much of your go to market plan. By ‘position’ I mean your messaging, or how you describe your value to customers.

– Does your brand truly reflect where you’re going, not where you are or where you’ve been?

If any of this is alien to you, invest in someone to help you figure it out. It’s the key to unlocking the OTE at the end of promote.

The one thing you need for a successful business is this (no drum roll necessary) …

Product/Market Fit.

You’d be surprised – actually you might not be surprised at all – how many product-based companies don’t have it, or can’t get it.

Product/Market Fit is this, put simply: people want your stuff. A lot of people. In fact, they don’t simply want your stuff, they need your stuff, and a good number of them would be up the creek without a paddle if you took it away from them.

You need Product/Market Fit for your business to grow, and people won’t invest in your business unless you can demonstrate you have it. Conversely, if you’re looking to join a successful company, and this is perhaps the most obvious thing you’ll read this month, join the one that you’re sure is shifting product.

If there’s no market for what you sell, or plan to sell, there’s no business for you. Too many companies find this out too late, usually after they’ve built their product. “Now, who can I sell this to?” In other words, do the marketing first, not afterwards.

 

What’s your business model? Is it a high volume, small deal size business? Or is it a low volume, large deal size business? It really has to be one or the other. It’s really hard to fall in the middle or do a bit of both. How many medium volume, medium deal size businesses do you know? How many that have a bit of both?

High volume businesses rely on great metrics, reliable conversion rates, and a constantly full pipeline so that the army of small deals makes a big total. Low volume businesses face a lumpy, more unpredictable sales chart but when the deals come in life is good, until the next big deal.

You could argue that the best business model is a blend of all three, so that you’ve got a pipeline of big deals, middle deals and small deals. Getting the blend right, however, is a tall order, especially when you bear in mind that different deal sizes are usually subject to different groupings of buyers, different sales processes and different sales cycle lengths. Hmmm, you need to be a pretty sophisticated and well practised sales organisation to make that work.

I’ve seen a number of organisations with a volume business model who haven’t done the maths to figure out how much sales and marketing they need to do to create enough leads, to create enough pipeline and so on. When they do, it makes for a pretty sobering meeting. Then there are the companies with a large deal business model who don’t know their sales cycle length and so don’t know how long they need to go between deals.

Whatever your business model, if people don’t have a genuine need for your product, or if you have to evangelise and educate in order to create the need, you have an uphill struggle.

So far in this series, we’ve covered six of the seven selling stages that are joined at the hip to your customers’ seven buying stages in the B2B buying process. These six are:

–  targeting your addressable market

– defining the sales opportunity

– understanding your prospective customer’s objectives,

– demonstrating why you’re the best option

– zeroing in on the deal, and

delivering the order and the solution

The Seventh Selling Stage. Ah, halcyon days! This is typically – if the implementation’s gone to plan – the honeymoon period that follows the consummation of the deal, but it’s not the time for you to rest on your laurels. Is there ever such a time in sales?

In the Seventh Buying Stage, which can potentially last the duration of your initial contract, your customer is engaged in the ongoing operation of their business, evaluating – among other things of course – the performance of your product or service against plan and moving towards the time when they have to make another business decision: do they renew with you or do they move their funds to an alternative solution or project that bumps yours?

Correspondingly, you should not be idle either. You should be reviewing the performance of your product or service as well, especially if your product or service involves your customer’s staff changing the way they work. People are notoriously and naturally resistant to change, so the key to any B2B project’s success is whether the benefits of the new product or service are sustained over time.

Be sure to schedule regular review milestones with your customer to make sure things are going to plan and to course correct if they’re not. At one of these early milestones, if things are indeed going to plan, you should also be asking your customer for referrals, other people they could recommend that would benefit from your offering. If you could build your business simply from referrals, you would never need to prospect again.

As with the seventh buying stage, the seventh selling stage is very similar to the first selling stage and in fact completes the cycle. You are actively reviewing your addressable market for other sources of new business. As well as new business, you also have your recently satisfied customer to think about. This gets us into a whole new and crucial realm of sales, the realm of account management. Often treated as a different role or skill-set within a business – but not necessarily so – account management is where you build the trust with your customer, strategise together on how best to develop their business, win new pieces of work from them and start to widen your influence within their organisation.

The Sixth Selling Stage – it’s a bit of tongue-twister! On the plus side, you’ve done all the hard work and now you need to see it through. So far in this series on setting out a typical B2B selling process we’ve covered knowing your addressable marketdefining the sales opportunity, understanding your prospective customer’s objectivesdemonstrating that you can best give them what they need, and zeroing in on the deal.

At this corresponding sixth buying stage your customer is on a high state of alert as they cover all the bases before committing their hard won funds to you. At this stage they’re looking to invest and implement, which means you’re looking to deliver, both the order and the solution.

In order to deliver the order to your company, your customer needs to sign on the dotted line and get the paperwork housing their signature back to you. Here are some things to help get the signed contract back.

– Check nothing has changed and they’re still planning to go ahead

– Take responsibility for being the conduit between your legal people and theirs. You’re paid by the selling organisation, but you need a fair deal for both parties for the long term benefits to accrue. Don’t be afraid to fight your customer’s corner as well as your own

– Ask when they expect to send the signed contract back and plan a lead-up process accordingly. If you’re calling them at 4:30pm on the Friday it’s due in, you’ve lost any buffer you could have built in

– Confirm how the implementation is going to work once you get the order and reiterate how much you’re looking forward to working with them

– Stress that you will be monitoring the implementation phase. You’re not going to disappear, merrily cartwheeling to your next deal. Your customer will be expecting continuity and consistency from your company and you’re the one to deliver it

Once the order is in, it’s time to roll out the implementation. Of course, you’ll have kept your operations people in the loop and the resources earmarked to roll straight away. This is where the rubber meets the road, and you should work hard to make sure that the implementation and change management processes are delivered on brief, on time, and on budget.

The fifth selling stage. It’s getting interesting now, you’re a good way through a sales process to win the deal from your B2B buyer. I’ve identified seven stages to the buying process, so naturally there must be seven selling stages.

To recap, you know your addressable market, you’ve defined the sales opportunity, you have worked with the company to understand their objectives, and you’ve hopefully demonstrated that what you’re selling is the best fit for what they’re trying to achieve. Just as this is the buying stage where the buying company is narrowing it down to one supplier and negotiating the terms, so you, in this fifth selling stage, need to ‘zero in’ on the prize.

On the face of it this is an easy stage for both parties. Is this the best fit? Are we agreed on what’s being paid? Are we agreed on what’s being delivered? Of course, the devil is in the detail and this is often why this stage can be rather drawn out as the two parties and their legal teams hammer out the minutiae. Good buyers and good selling companies tend not to leave the negotiations until this stage, and in many ways the two parties have been negotiating with each other all along, so that there aren’t too many surprises as you get down to the short strokes, to use golfing parlance.

You don’t want your customer to wobble at this point. They’ve come this far and you need to help them get over the line and feel good about the decision they’re making. Make sure that you have the following things in hand:

– have you done your ‘always be qualifying’ thing and reconfirmed that nothing germane has changed?

– has the customer appointed a ‘change agent’, someone in their team that’s going to be responsible for seeing the project through and making the appropriate resources available for it to happen on schedule?

– are you agreed on money?

– have you shared your contractual and implementation documents with them so that they can see the fine print?

– have they confirmed it all looks fine? If they haven’t, have you lined up resources and decision-makers on your side to expedite this process?

Finally, when you’re confident you have guided to them to the part when they’re ready to buy, you get to the most beautiful part of all:

– have you asked them for the order?

– have they confirmed they’re going ahead with you?