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Capture Your Competitors' Customers - Even When The Boss Says It Can't Be Done
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| Guest post by: Christine Corelli |
Article Overview: As a Sales Manager, you often hear your President and other Senior staff members try to bolster the sales staff with confidence that you can win any job. On the other hand, have you ever had the President of your company tell you that there is "NO WAY" that your company could win a major project with seven other major approved suppliers from your industry?
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Capture Your Competitors' Customers - Even When The Boss Says It Can't Be Done
While conducting research for my new book, Capture Your
Competitors' Customers, and KEEP Them, Bob Faught, a valued client and
VP of Marketing for Nova Solutions, shared the experience below. (At the
time it occurred, he was a regional sales manager for a commercial
furniture manufacturer.)
As a Sales Manager, you often hear your President and
other Senior staff members try to bolster the sales staff with
confidence that you can win any job. On the other hand, have you ever
had the President of your company tell you that there is "NO WAY" that
your company could win a major project with seven other major approved
suppliers from your industry? "Don't even waste your time on it." This
exact scenario did happen, and a few of the President's reasons were the
following:
• "We cannot compete with the "Big Boys."
• "We've never won a major job like this before."
• "We don't have the depth and breadth of products this customer is
looking for."
• "We've never competed on a single project this large before."
• "We don't have the necessary tools and resources."
• "Let's focus on those jobs we have a chance at winning."
My response to the President was simple: "I will take
care of this account so the team can stay focused on day-to-day
business, using those team members only when necessary." The President's
response was, "I've always admired your 'can-do' attitude. I don't know
how you can overcome the top seven competitors in our industry. O.K.,
give it a shot if you think it has a chance."
David Can Beat Goliath
With that, I began the strategic planning of how to win this major
project over seven major competitors, the largest twenty-two times the
size of our company, the smallest three times our size. My daily mantra
inside my heart was that history has proven that David beat Goliath, and
we shall overcome.
Never Say Never
During that year that I focused quality, limited time on this account, I
received little support. Inside our company, I was told many time how
crazy I was for taking this on, and I was wasting my time. Our major
competitors, who I got to know even better, quietly asked if I was
really serious about going up against them and all their resources for
such a large project. During that year, not one person from our company
above my level ever came out to visit or help on this job. My comment
back to everyone was, "NEVER say NEVER."
Smart Strategic Sales Strategy You Should Use
During that first nine months, my strategic planning focused on the
following:
• Getting to know the end-user better than they knew themselves
• Researching end-user's long and storied history, with strategies
making them successful
• Establishing strong relationships with the end-user at every level
in all departments
• Taking the time to get to know the end-users Executive Staff and a
few Board of Directors
• Listening closely to the end-user's feelings on what they wanted
from the winning supplier
• Research that confirmed key departments had little, if any,
communications with each other
• Cross pollination of the end-user by visiting all key departments
every two to three weeks
• Defining end-user's challenges and needs once the contract was
awarded
• Seeking out how we could differentiate ourselves from our
competitors
• Honestly identifying advantages our competitors had over us
• Honestly identifying advantages we had over our competitors
• Essential services necessary to fulfill the end-user's long-term
needs
After nine months, the end-user wanted all eight
suppliers to have the mock-ups of products requested on display for
their Executive Staff and Board of Directors for final evaluation before
making their final selection. This happened during the winter, and our
truck was stuck in a severe snow storm, not able to make it on time. Our
President said "I told you this was not going to work." I said, "Get
the truck out here immediately, and we will make it work."
Because of the strong relationships I had built within
the end-user's organization, especially from their President down, they
held a "special" review of our product alone. Instead of being one of
eight, it became one on one.
Within a month, I received a phone call from the VP of
Purchasing, stating that we were awarded the project, totaling over $11
million (the largest order in history of the company), and the contract
needed to be signed the following week so work could begin. When I
called our President to relay the good news, he thought I was joking
with him. There was a period of shock for him to realize that we had
actually won this job over all our major competitors. This job changed
the company's future vision and strategies, realizing that we could
compete with the "Big Boys."
Market share Increases from 2% to 42%!
When our President came out to meet the end-user for the first time, we
stood on the steps of their headquarters overlooking their huge
facility. He apologized profusely for not just having confidence in our
team, but more importantly, our company. He commented that this one job
increased our market share in that state from 2% to 42%. Moreover, he
said, the company has now changed its entire strategic planning, knowing
we can compete at the highest levels with the "Big Boys."
Key Strategies and Initiatives That Captured The
Customer
Finally, he asked the question that had been burning inside him since
that phone call. "What in the world did you do to overcome all the
obstacles, and major competitors, and prove to the end-user that we were
the best choice?" I responded by giving a snapshot summary of the key
strategies and initiatives that won this job:
• Maintaining a positive attitude and focused vision on the end goal
throughout the process
• Knowing the end-user inside-out, what made them tick, what their
hot buttons were
• Strong relationships from the President and Board to engineers,
purchasing agents, etc.
• Hearing the end-user repeatedly state that all companies' products
look the same
• Validating that we did have the product and service offering to
equal competition
• Defining their priorities (implementation, service, quality, price,
in that order)
• Being known by end-user as "the one who talks to all departments,
knows what's going on"
• End-user's fear of implementation due to lack of communication
between departments
• Identified we would have to lead implementation through project
management in all areas
• Offered "Full Project Management for Total Implementation" to
end-user at NO cost
In summary, I told our President that one of the key
decision factors for being selected was our offer of "Full Project
Management for Total Implementation" at NO cost. Once I confirmed we
would need to do this anyway, I used this "added service" to
differentiate us from our competition. (I calculated the costs for
project management and added this to our quote.) This took the fear, and
accountability, of implementation out of their hands, and reduced the
number of people they would need to dedicate to the project.
Identify Customers' Most Basic Needs, Fears, and
Drivers
In the end, we were not the lowest in price, and were able to recover
any additional costs incurred from managing the total project. Through
identifying the end-user's most basic needs, fears, and drivers, coupled
with strong relationships at every level, we actually became part of
their own family even before they made their final decision. We
demonstrated that selecting our company was a confirmation of the
long-term joint teamwork between our two companies. We strongly
validated that we had the people, services, and products to successfully
complete their total project within the timelines requested.
The 15 Seconds of Euphoria in Success
Everyone in sales knows that when you are first told you have won a
major project, you encounter about 15 seconds of euphoria, followed by
the reality of all the challenges necessary to implement. This project
had that same feeling, but took on a more bizarre twist.
In our successful quote, we also included design from
an Architecture and Design (A&D) firm at no extra charge to the
end-user (we would pay the A&D firm for their work). When I called
the A&D firm to give them the good news of winning the project, I
was told that they were too busy to support us, and, in confidence, "we
really didn't think you had a chance of winning this!"
To stay on schedule, the first building needed to be
designed and ordered within two weeks. Our company then asked "Who are
you going to get in this short time that understands our products and
customer's needs?" As always, another daunting challenge, but there was a
solution.
My background was architecture and design, which is why
I was able to easily communicate with the A&D community. I simply
tightened my belt, looked forward with that same positive drive and
desire, and said I would get it done. I went out and bought all the
drafting equipment necessary (I had not learned AutoCAD yet) to complete
this job. I had them ship this program to my hotel room which,
ironically, had a straight view of the end-user's facility in the
distance (talk about staying focused).
During the days, I would interview the departments for
the necessary details. In the evenings I would work on the design.
During this two weeks there were a few nights that I did not get any
sleep simply to stay on schedule. Also, since this was an existing
building with block wall interiors, trying to fit the design to blend
perfectly with their existing space was an unbelievable challenge. But,
about 3 AM one morning, the vision for this solution somehow came to me,
and it worked.
Within two weeks I completed the design and the entire
order for our factory. When the building was complete within two months,
everyone was amazed at the final solution to fit everything perfectly
into the existing building. Even though design was not part of my job
description, the end-user asked if I could oversee the next two
buildings. This enabled us to integrate and train our own design staff
into this new end-user.
Ironic how a company with no chance at winning proves
to everyone they have what it takes to compete at the highest levels.
The success of this job led directly to securing over ten buildings with
another company, about 40 miles away, totaling over $5 million, in the
next two years. The positive attitude and courage to nurture our own
little seed in the midst of the giant garden allowed us to eventually
build our own private plot that would rival others for years.
Size Doesn't Always Matter
Even though this happened over twenty years ago, the principles and
strategies today are the same, because they simply involve working with
people and their needs. This example also proves it is not the size of
your company that matters. Moreover, you never know when you and your
sales team will be challenged to pull out all your resources and talent
to go well beyond the call of duty. Long-term success revolves around
having those individuals who have the positive attitude, focused vision,
strategic insight, passion, courage, and pride to take your company to
new levels never before experienced.
What a great story! Thanks, Bob! And continued success
to you!
How about you? Ask yourself these questions. Regardless
of what business you're in, what key strategies and initiatives can
help you capture and keep your competitors' customers? How hard are you
willing to work? What are you doing to differentiate yourself from your
competitors? Would you be willing to do whatever it takes?
© Copyright 2007 Christine Corelli. All rights reserved
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