Yes, you do need a sales strategy
Here’s why: No strategy = no business. It’s that simple. With a sales strategy in place, research is better targeted, cold calls are more productive, sales resources are more cost-effective, and sales performance is more predictable.
The nuts and bolts
For a sales strategy to be effective it must have these key features:
- The strategy must be specific and detailed
- The strategy must be measurable
- The strategy must be attainable
- The strategy must be realistic
- The strategy must be time sensitive.
Without a sales strategy, a business will chase its tail – pointlessly pursuing something and moving no closer to its destination. Without getting too complicated, a sales strategy simply describes a business’s approach to selling a product or service. Strategy is the most effective way to drive more sales.
Everyone believes that strategy is important, so it’s surprising to see how many businesses have no sales strategy at all. Regardless of the size of your business, the effectiveness of your sales strategy is what will determine success or failure. Without this fundamental element in place, it will take that much longer to get a business off the ground, or to grow a business that has set its sights higher.
As a framework for fine-tuning the marketing mix, the four Ps of sales strategy – product, place, price, and promotion – continue to serve sales leaders well.
This is your tangible product or service. You need to think about the needs and wants of consumers, market conditions, how to keep production costs down, and quality high. When it comes to the product, can you improve on what your competitors are offering? Or can you add value in some way for the consumer?
This is the location where the product or service is to be sold. It may be brick and mortar or online. You need to look at areas where buyers would seek your product, ways to access the right distribution channels, and differentiate yourself from your competitors.
Pricing your product involves research, planning and careful consideration. You need to cover all expenses and have a reasonable profit margin. You will also need to look at elements such as pricing strategy, suggested retail price, volume discounts, wholesale pricing, seasonal pricing and price flexibility.
Determine whether you can price your product or service better, and how you want to position it – is it aimed at the high or low end of the market? The narrower your target market, the less you will sell and the higher the value needs to be.
To reach your target audience, you will need to get information out there about your product or service. This involves a promotional strategy, advertising, public relations, publicity and media, among other elements.
Related: How to Build the Ultimate Sales Team
Identify the total available market
A common (and very important) item missing from many entrepreneurial businesses is a breakdown of the company’s total available market, which is simply everyone you wish to reach with your product.
Here’s an example: You live in Mpumalanga and you’ve decided to start a business that manufactures and sells fly fishing flies. Let’s say your town has 150 000 people. Through market research, you may find that the total possible demand for your business in your town is 15% (or 22 500 people), with spikes in demand occurring during the April and December holiday periods.
Bear in mind that if you have a competitor in your market, your total available market would be smaller since you will be sharing this market with another company.
This process is really about finding out where the opportunities lie, who your competitors are and whether or not they are doing a good job. Much of this type of research can be done electronically, thanks to the Internet.
I always advise entrepreneurs to take the time to go through this process systematically. In addition to more analytical research, talk to friends and family. Talk to people in your social network who you know and trust.
Most market sectors today are comprised of a diverse range of niche players who have varied needs and business drivers. Companies that target any market as one broad vertical run the risk of developing positioning that misses its mark, making the sales and marketing process more difficult and more expensive than it needs to be. To maximise your marketing and sales effectiveness and minimise selling costs, it is necessary to understand the market from a more detailed perspective.
Once you have identified your total available market, you should begin to segment your customers. This separates prospects and customers into sets of people or companies that are similar and related from a marketing or demographic perspective. For example, a business that practices customer segmentation might group its current or potential customers according to their buying habits, age group, special interests.
Use data sources that are freely available about companies’ lines of business, areas of operation, number of employees, IT infrastructure, fleet sizes and so on to give you an idea of what the potential could be. The ability to calculate or estimate the potential spend or purchases of prospects or customers in the target market you have chosen means drilling down to a granular level to calculate the average spend of each customer in each area or sales territory.
Prioritise the geographical areas with the greatest sales potential and the least cost to cover.
Sales force structure
Once you have prioritised the areas depending on size and potential within each, you can structure the sales team. How are you going to cover all prospects, from telesales through to taking care of existing business, and breaking into the lucrative new market potential within the area? Territory reps, product reps, major account reps – all must be aligned with the identified potential and deployed at micro market level according to expected future opportunities.
The one factor that will determine success is how well the sales people are trained with regard to handling the opportunities and the relative size of the organisation. Critically, they must also know their competitive position – are they breaking in, sharing or dominating?
Remember that circumstances change constantly. For this process to work, you cannot do it once and then forget about it. Continuous updating of data, either through research or a CRM system is essential. Your sales people play a huge role in keeping data up to date. Make sure that all new information is fed into your system all the time. Then, analyse, reassess and recalculate on an ongoing basis. There are many companies that gather, analyse and sell data to businesses of all sizes – it’s worth making use of their services.
Sales and marketing
Once you have identified your market, segmented your customers and structured your sales team, your go-to-market strategy becomes a lot simpler to implement than you might think: You have your product, your people, and your areas. Now you have to focus on how you will sell – that is marketing. People tend to grossly overestimate what is required here. If you have done all the previous steps properly, how you actually fulfil the transaction is easy – whether it’s through a direct sales force, tele-channels, distributors, retailers or online, the groundwork is done.
There are many consultants out there who will create marketing campaigns for your business, usually at great cost. Once again, remember that much of the information you need is available online. If you know what your business is trying to achieve, time and effort is all you will require to create the right marketing campaign for your business.
Marketing and promoting your business is after all where you can get really creative. Have think tanks with your team on how to promote your products better and as cleverly as possible within the budget you have.
Advertising, for example, can eat a great deal of capital. There are other imaginative ways to reach your target market. The point is that if you know who they are, you will know exactly how to find them.
One word of caution: Strategic sales and marketing is often where companies fall short, and where they can be extremely inefficient with budgets. This is because there is no concrete, definitive blueprint. So much depends on gut feel, experience and market knowledge. That is why it is so critically important to do your homework.
Whichever route you choose to take, remember that the online world has given people the ability to compare products and service and to decide what they want to buy, often before they even meet a sales person for the first time. Online has given everyone the ability to compare, which is why it’s critical to have a web presence that is professional, attractive, informative and easy to navigate.
Related: Don’t Let Those First Sales Go Bad
Take Your Sales Skills To The Next Level With These 5 Simple Steps
Learn to sell nearly anything.
Entrepreneur Network partner Brian Tracy says one of the most valuable skills a person can have is the ability to sell anything to anyone.
The motivational speaker provides a few tips to help even the most beginner of salesman to improve their skills dramatically:
- Understand the needs of your customers.
- Sell yourself.
- Do research on the client.
- Ask questions and engage in a dialogue with your customers.
Finally, keep in mind that you should not only be selling – but also helping your customers. Selling is part of a relationship and the more established the relationship, the more effective your sales tactics will be.
To hear more about selling from Tracy click on the video below:
This article was originally posted here on Entrepreneur.com.
Boost Your Business With Smart Delivery
Differentiate your business in the one way that customers value the most: deliver the goods on time.
It can be difficult to carve out a competitive advantage in today’s cutthroat business environment. For some companies, investments have been focused on creating digital advantage through measures like apps or fancy websites, or improved processes with clever technology to make things run faster and better. While all those strategies have their place, there could be a far simpler way to put your business ahead of the competition. Deliver the goods, in a very literal sense.
The Internet revolution has made today’s markets very competitive in all sorts of ways. Barriers to entering many markets have tumbled and new competitors are everywhere. Consumers have greater choice than ever and can easily compare prices and service. That is good for consumers, but it makes it hard for companies to attract and retain a loyal following.
By now, it should be no secret that people are willing to pay for convenience. In fact, many of the digital initiatives we see today are succeeding because of the convenience they provide. Take the Uber example: Using technology services, it brings together willing sellers with willing buyers, with the ultimate convenience of being able to see where your Uber is, who the driver is and what car to expect. Even more convenient, your Uber shows up when you need it.
Extend the same concept to physical goods, no matter what they may be and it is not difficult to see how a delivery service can easily put a big smile on your customers’ faces. Whether you are selling horse saddles, operate a bicycle store, run the local grocer, hardware outlet or restaurant: bringing your goods to your customers saves them time, makes it easier to buy and has the added effect of establishing further rapport to build trusted relationships.
According to Forbes, the Internet has habituated today’s shoppers to instant gratification. While physical goods obviously cannot be accessed at a click, there is no doubt that speedy delivery has become a driver of competitive advantage.
Getting a delivery service set up can be easy and low-cost provided your market is fairly local and your product relatively easy to transport. There are a range of options for vehicles, from a versatile bakkie or minivan capable of handling large loads or bigger items, through to a delivery motorbike or scooter. For those providing smaller items, scooters or motorbikes are a great option, as they enable convenience when your customers might most need it: during rush hour. A bike can zip through the traffic, impressing your customer by ensuring that they get what they need, without wasting time stuck in the car due to traffic or lack of parking.
A big question would be whether your deliveries are handled in-house or by a third party. There are pros and cons, but there is an increasing trend for many smaller businesses to make use of specialised logistics/ delivery operations. After all, this means you do not have to make the capital investment in a vehicle or scooter, pay a staff member to do the job and take on the insurance and management issues. Not only are you engaging an expert, you are also doing your bit to support another business.
Third-party delivery partners also work well for deliveries in far-flung areas, or if your product is bulky.
It is a good idea to see what other businesses of your size are doing and who they are using. It is important to choose a delivery partner whose service ethos matches your own.
Whatever option you choose, make sure you understand the risk and have the right kind of business insurance in place. It is also a good idea to have the ability to monitor where your deliveries are in real time. If you have a third-party partner, they should be able to provide this for you.
With most big stores offering delivery services as part of their value proposition, adding this choice to your service offering increasingly makes good business sense. Customers are quite prepared to pay a slight premium to get what they want, right to their front door – and they will keep on coming back for more.
MiWay is an Authorised Financial Services Provider (Licence no: 33970)
5 Reasons Why Your Business Is Losing Customers
Ever think about why people keep buying iPhones, even though they’re so darned pricey?
Like it or not, your business is losing customers. Recent research from McKinsey & Company revealed that only 13 percent of customers surveyed said they were loyal to a single brand. The research found that 87 percent of customers surveyed said they shopped around, and 58 percent had switched to a new brand.
Why do people shop around? What motivates them to abandon the businesses they know and buy products or services from competitors? It’s time that you take a close look at why your business is losing customers – and, what you can do to fix it.
Here are five common reasons why customers leave small businesses … and effective tips you can use to start turning the tide.
1. You’re guilty of poor customer service experience.
Few things can sour a customer experience more quickly than poor customer service. To a customer, your support team is your business. Shauna Geraghty, a clinical psychologist and head of talent at the global customer support innovator TalkDesk revealed on the company’s blog that over 90 percent of customers who are dissatisfied with your customer service experience will — rather than telling you that something is wrong and how you can improve it — just not come back.
So, if you’re not paying attention to your customer-service policies and performance, there’s a good chance that neglect is costing you customers.
This is one reason why some companies, including Comcast, create create support-focused accounts like @comcastcares on Twitter. These accounts are public and are known for helping customers to resolve problems quickly.
What you can do:
Outline thoughtful, positive customer service practices. Start with an internal audit of the policies that govern your team. Conduct interviews with customer-support managers and representatives.
Assess what company policies have led to customer dissatisfaction. What internal issues are preventing your reps from supporting customers quickly and effectively? Use this data to improve your customer service practices.
Then, bear in mind these three golden rules of customer service:
Respond quickly. Acknowledge when a mistake is made and make it right.
Treat the customer with respect and empathy.
Support your customer support team. Give your customer service team the resources they need to provide your customers with awesome service. This includes the technical infrastructure as well as the autonomy to make choices that will benefit your business and support your customers.
2. Your product or service failed to meet expectations
Disappointed customers are likely to share their disappointment with friends on social media. And angry customers will post angry reviews for other prospective customers to see.
What you can do:
Design and build a quality product or service. Don’t think that marketing magic or any amount of other business trickery is going to make up for a poor product or badly executed service. So, work with a talented product designer.
Test. Build with quality materials. Adapt your service based on customer feedback.
Do whatever it takes to create and deliver a service or product that is worth paying for.
3. You didn’t show the value
Price is what a customer pays. Value is what a customer gets. Sales expert and emotional intelligence coach Liz Wendling pointed out on her blog that customers don’t necessarily choose only “the lowest price or the cheapest in town.” Customer preferences, she said, have nothing to do with price and everything to do with the value you are conveying. When your potential customers tell you it is about the money, wrote Wendling, that is actually customer code for “show me the value.”
This is certainly one reason why Apple continues to dominate when it comes to smartphone profits. In Q4, 2017, Apple captured 87 percent of smartphone industry profits but accounted for only 18 percent of total units sold. Customers, clearly, are buying iPhones because they believe that Apple products deliver more value, despite the higher price.
What you can do:
Identify your unique value proposition. What awesome value do you bring to your customers that other businesses don’t? This is your unique value proposition.
Clearly articulate your unique value proposition on all platforms. Publish the benefits of your product or service on your website home page.
Educate your customer support and sales staffers so that they can speak fluently about the value included in your pricing.
Feature your unique value proposition on the landing page for every offer. (Check out https://www.crowdspring.com/blog/landing-page-guide/this article to learn more about creating effective landing pages.)
4. Your business is Inconsistent
In business, and in life, consistency breeds trust. Things that are consistent can be relied upon. And, things that can be relied upon don’t need to be worried about. Inconsistent branding, including using your company’s name or logo differently on your own site and on social networks, plus inconsistent quality or service, all have the potential to drive customers away.
United Airlines learned this lesson the hard way when young women wearing casual wear were not permitted to board a flight unless they changed out of Spandex leggings. Yet any traveler is going to see many, many women at the airport wearing leggings. And there’ was no previous record of United barring others from flying for wearing leggings. That’s why this particular decision created a social media firestorm and lots of confusion.
What you can do:
Deliver an experience customers can rely on. This starts with you and your employees.
Educate all of your employees about what a good customer experience should look like.
Create a branding guide to establish uniform branding guidelines and share it with your team.
Hold your employees accountable for delivering a consistently positive customer experience.
Create strong customer interaction policies. Whatever your policies are, make sure that they will serve your customers well before you implement them. Then stick with them! Be consistent.
5. Your sales tactics are out-of-date.
Aggressive sales techniques are more likely to drive customers away than lead to positive results. Leslie Ye, for HubSpot, wrote that the old sales playbook — dragging prospects through a sales process and strong-arming them into a purchase — worked only because there was no better way for buyers to buy.
If your sales techniques focus on manipulating or coercing a sale, your business is actively chasing customers away.
What you can do:
Employ value-based selling techniques. Take the time to learn what your customer actually needs. Then offer value-based solutions that address those needs. Show how your product benefits the customer and allow them to decide if it’s the right fit for them.
Build relationships with your customers. If you’re trying to sell with every single customer interaction, you’re doing it wrong. Instead, focus on establishing trust with your prospective customers.
Have honest interactions and provide value through useful content and entertaining social media engagement. Then, when a customer needs the product or service you provide, he or she will turn to you, a trusted resource.
The key to growing a business is to maintain the customers you already have while acquiring new ones. So, stop leaking customers. The success of your business depends is at stake.
This article was originally posted here on Entrepreneur.com.
Entrepreneur Profiles1 week ago
8 Codes Of Success That Helped Priven Reddy of Kagiso Interactive Media Achieve A Networth Of Over R4 Billion
Technology1 week ago
3 Things Africa Must Get Right If It Wants To Leapfrog Into The 4th Industrial Revolution
Business Ideas Directory1 week ago
10 Cannabis Business Opportunities You Can Start From Home
Business Landscape3 days ago
How Schindlers Attorneys Became Involved In The Landmark Cannabis Case
Branding1 week ago
Why You Should Prioritise Brand Image
Get Organised2 days ago
How To Multitask Like Tim Ferriss, Randi Zuckerberg And Other Very Busy People
Start-up Advice1 week ago
7 Top Lessons You Can Learn From The US Cannabis Market
Increasing Productivity1 week ago
Take Responsibility For Your Company’s Culture To Boost Productivity