Business StrategyCompetitive Strategy
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Introduction
“The New Strategic Selling” by Robert B. Miller and Stephen E. Heiman is a foundational text that revises and expands classic concepts of strategic sales. The book aims to provide a comprehensive sales system that addresses the increasingly competitive and intricate nature of modern markets. By refining these systems, it provides actionable strategies that sales professionals can employ to win deals in today’s complex environment. The book is structured around key sales principles supported by concrete examples and actionable steps.
Point 1: The Concept of the “Four Buying Influences”
The authors introduce the concept of the Four Buying Influences: Economic Buyer, User Buyer, Technical Buyer, and Coach. Each plays a distinct role in the purchasing decision-making process.
- Economic Buyer: This person ultimately approves the expenditure. They are concerned with financial viability.
- Action: Identify the individual holding this role in your prospect’s organization. Tailor your presentation to highlight cost savings, ROI, and financial benefits.
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Example: In the book, an example is given about a software company selling to a large enterprise. The sales team realized that the CFO was the Economic Buyer and focused their pitch on demonstrating long-term cost savings and efficiency improvements.
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User Buyer: The individual who will actually use the product or service.
- Action: Understand the day-to-day challenges faced by User Buyers and how your product can solve these issues.
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Example: The book describes a medical device salesperson targeting surgeons. By highlighting how their device simplifies procedures and improves outcomes, they successfully engaged User Buyers.
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Technical Buyer: Focused on the nitty-gritty details. They vet the product for compliance, technical specifications, and feasibility.
- Action: Provide detailed information, technical documentation, and evidence of compliance with industry standards.
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Example: A technology vendor developed an extensive technical dossier for the IT department to address their concerns about integration and security.
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Coach: An internal advocate who can guide the seller, providing insights and introductions.
- Action: Cultivate relationships with potential Coaches by providing value and demonstrating reliability.
- Example: The book narrates an instance of a sales professional who maintained regular, helpful contact with a mid-level manager who eventually became an invaluable internal Coach, facilitating top-level meetings and championing the product internally.
Point 2: Win-Win Concept
The New Strategic Selling emphasizes fostering a win-win outcome for both parties in a sales transaction, transcending traditional adversarial sales approaches.
- Action: Always align your sales objectives with the customer’s goals to ensure mutual benefit.
- Example: One example in the book involves a telecommunications company that tailored its service packages to not just boost its own sales, but also to help the clients achieve higher customer satisfaction and lower operational costs.
Point 3: Identifying Red Flags
The book teaches salespeople to recognize Red Flags — early warning signs that a deal may be in jeopardy.
- Action: Conduct regular deal reviews to spot and address Red Flags promptly.
- Example: In the book, a sales team recognized a Red Flag when a previously engaged prospect began canceling meetings. By promptly addressing the underlying issue (an internal disagreement within the prospect’s company), they salvaged the deal.
Point 4: The Importance of a Valid Business Reason (VBR)
A VBR is the bridge between what you are selling and why the prospect should care. It should be compelling and align with the prospect’s strategic objectives.
- Action: Develop tailored VBRs for each stakeholder group within the client organization.
- Example: For a logistics company, the sales team provided a VBR by linking their service to the prospect’s strategic goal of reducing delivery times and enhancing customer satisfaction.
Point 5: Single Sales Objective (SSO)
The SSO is a clear and concise statement of what the sales objectives are for a particular account — the ultimate goal or transaction you wish to achieve.
- Action: Define your SSO with precision before engaging with your prospect and ensure it guides all your subsequent actions.
- Example: A software company’s SSO was to secure a one-year pilot program. By keeping this goal in focus, they could navigate the prospect’s complex decision-making process effectively.
Point 6: Building a Sales Funnel
The updated methodology promotes a structured approach to managing potential sales through a well-defined sales funnel, from prospects to closed deals.
- Action: Regularly update and review your sales funnel to ensure no opportunity is overlooked and to track your progress towards closing deals.
- Example: The book highlights a company using CRM tools to move leads through stages, ensuring that follow-ups and action items are systematically addressed.
Point 7: Pre-Call Planning
Effective sales professionals don’t just walk into a meeting unprepared. They conduct detailed Pre-Call Planning to ensure every interaction is purposeful.
- Action: Always prepare a Pre-Call Plan, identifying key objectives, potential objections, and updated information on the client’s current situation.
- Example: A sales representative in the book planned a product demo by researching the client’s pain points and customizing the presentation to address these specific issues, leading to a successful demo and subsequent purchase.
Point 8: Account Management vs. Opportunity Management
Account Management focuses on building long-term relationships, while Opportunity Management is about pursuing individual sales.
- Action: Implement a dual approach where larger accounts are continuously nurtured (Account Management), while also chasing specific deals (Opportunity Management).
- Example: The authors illustrate this with a case where a major account was managed with a long-term growth plan, while simultaneously pursuing a new product launch opportunity within the same account.
Point 9: Leveraging Data and Technology
The book advocates the use of CRM systems and other sales technology to streamline processes and gather actionable insights.
- Action: Use CRM software to track interactions, forecast sales, and glean insights from customer data.
- Example: A company improved its sales cycle by using data analytics from their CRM to understand and anticipate customer needs, personalize communications, and tailor their sales approach.
Point 10: The Role of Continuous Learning
Sales techniques and market conditions evolve constantly. Continuous learning ensures sales professionals stay ahead of the curve.
- Action: Invest time in ongoing professional development, training programs, and industry research.
- Example: One anecdote in the book talks about a top-performing sales executive who dedicated an hour each day to learning about new sales techniques, product updates, and industry trends.
Conclusion
“The New Strategic Selling” equips sales professionals with an enhanced toolkit to navigate the complexities of modern selling. By understanding and implementing the principles of the Four Buying Influences, embracing win-win outcomes, recognizing Red Flags, and crafting compelling VBRs, salespeople can significantly improve their effectiveness. Additionally, precise SSOs, a structured sales funnel, diligent Pre-Call Planning, balanced Account and Opportunity Management, leveraging technology, and continuous learning all contribute to sustained sales success. Through numerous real-world examples and actionable steps, the book provides a practical blueprint for becoming more strategic and successful in the competitive world of sales.