I asked a simple question to sales reps at three different public companies. Can you please describe your company’s sales strategy? The question was posed to six sales reps within the three sales organisations. Four of the six asked me to define what I meant by a sales strategy. After explaining, here are the answers I received:
- ‘I don’t think we have one.’ – I received this one twice.
- ‘If we have one, I don’t know what is.’
- ‘Apparently to sell more, because they keep raising my quota.’
- ‘We are getting paid more to sell new business, so that must be part of it.’
- ‘You should ask the executives.’
The Disconnect
In all cases someone on the executive team thought a clear sales strategy existed. But the people closest to the customer did not. So where was the breakdown?
There is a lot of confusion around the term sales strategy. Few sales directors will tell you they don’t have a strategy. This would be like a pilot admitting he doesn’t have a flight plan. The frightening truth is that most sales organisations have the wrong sales strategy.
Sales Strategy Defined
- What is a sales strategy? A sales strategy is an operating plan for a company’s sales force
- What does a sales strategy do? A sales strategy allocates sales resources efficiently to drive selling costs down and revenues up
- What does it mean to use a sales strategy? The use of a sales strategy means an executive team can get the most out of its sales force.
Top six issues at the heart of sales strategy disconnect
1. Same Sales Strategy as Competition
In this scenario, the sales experience becomes a commodity. When this happens, differentiation is reliant solely on product or price. This strategy could work if you are lucky enough to sell a superior product, although, this advantage is likely to be short-lived. Competitors will catch up. The pricing pressure will result in missing the number.
2. Sales Strategy Not Aligned with Buyer Needs
When a sales team does not align the strategy to buyer needs, friction results. Buyers may have great experiences during the self-directed portion of the buyer’s journey. But once the sales team engages, the experience degrades substantially. The result is frustrated buyers who take their business to a better aligned competitor.
3. Sales Tactics Masquerading as a Sales Strategy
When the strategy is a compilation of tactics, the organisation is reactive vs proactive. They may make the number one quarter, but miss the next. However, they are unable to excel every quarter unless they can systematise these tactics.
4. No Sales Strategy
When there is no sales strategy, the number is almost always missed. This results in periodic success through the heroic efforts of a few superstars. Without a sales strategy, the sales leader becomes overly dependent on a few reps. This is not sustainable.
5. Sales Strategy Not Aligned with Product Strategy
This often leads to sales teams underperforming. Product management delivers new solutions to specific problems of certain prospects. The sales strategy needs to be built around these prospects to solve their problems.
6. Sales Strategy Not Aligned with Corporate Strategy
When strategic alignment is absent, the sales team conflicts with other company functions. At times, the internal sale is harder than opening a new account. A contract modification, price exception, or configuration change can take too much time. The customer begins to feel your company is difficult to do business with. This can result in lost deals.
