Heightened Competition Driving Creative Sales Approaches
Heightened Competition Driving Creative Sales Approaches
The information industry has recently surpassed the auto industry to become the world's largest industry-and everyone's scrambling to get into the act! Government and defense contractors are entering the commercial marketplace while new and evolving Internet technologies have spawned a whole new set of virtual companies competing for a slice of the pie.
Indeed, increased competition and improved technologies have lead to very short product life cycles and a constant barrage of new products. Firms who have been differentiating themselves based on the unique features of their software, hardware or service offerings are finding that these differentiation strategies no longer work as unique features can often be copied or improved upon by the competition within a period of weeks or months. As a result, high-tech companies are developing a variety of innovative sales, marketing and service approaches as a means to differentiate themselves from their competition and boost their sales and profit levels.
INTEGRATED SALES AND MARKETING
Measuring the true effects of monies invested in advertising, public relations, direct mail and other forms of marketing is a challenge for most businesses. However, several firms are taking advantage of more sophisticated software to track each lead they receive and to determine the number of leads and volume of revenues produced by each ad, mailing and marketing program. This information helps firms better invest its marketing dollars to achieve higher rates of return and to learn more about their marketplace.
CONSISTENT SALES PROCESS
Firms are discovering why many of their sales hires fail. Rather than modifying their individual sales process to fit the products and markets of their new employer, new sales hires typically stick to the sales process they used at their last employer. After all, their previous sales process made them successful, so why change?
Recognizing the potential for high salesperson turnover, poor sales results and customer complaints, several high-tech firms have developed and implemented a consistent, sales and marketing process. What they have found is that a uniform sales process produces both improved and predictable results. In addition, customers, who are comforted by knowing what to expect from vendor employees, develop higher levels of commitment and are often willing to pay more for what they perceive to be a high level of service and professionalism.
NON-TRADITIONAL SUCCESS METRICS
In several instances, the pressure felt by salespeople to make their quotas and "get the order" means that customers and prospects feel pressured to buy or are promised things that they never get. Smart companies recognize that more profit is made on repeat business than on initial orders and that customers who are not 100% satisfied have a number of other options.
A few firms are using customer satisfaction, as measured by blind surveys or management "check up calls," as a key element in determining sales commissions and bonuses. In other words, salespeople who merely achieve their revenue goals without attaining acceptable levels of customer satisfaction may sacrifice 20, 30 or even 50% of their commissions.
INNOVATIVE SALES TOOLS AND APPROACHES
Rather than selling their product merits, which are often short-term differentiators, enlightened businesses are focusing on long-term differentiation by grooming a new breed of sales and service professionals. These non-stereotypical sales types are able to capture the interest of customers and prospects by discussing how they can increase the customers' profits or reduce their expenses.
Developing and using sales tools like qualification and financial justification instruments, these sales and service people are highly effective in cultivating and nurturing business relationships. Instead of acting like salespeople, they act as business consultants. Even technical support and customer service people, due to their high levels of customer contact, are being trained and motivated to use these approaches to improve the quality of customer relationships as well as help to sell other products and services while interacting with customers on a daily basis.
NEW METHODS OF PRODUCT DISTRIBUTION
Firms are teaming up with networks of retail stores, resellers and independent sales representatives to improve the distribution of software, hardware and service offerings. Increasingly, the Internet is being used as a mechanism for generating leads and distributing information that later leads to sales. In several cases, orders are being taken over the Internet and software that is purchased is being downloaded. Without a doubt, improved distribution systems and technologies will play a key role in the development of effective sales and marketing programs.
Increased competition and rapid technological change is forcing firms, who once relied on their product or service attributes to garner sales, to differentiate themselves through innovative sales and marketing strategies. It has frequently been said that the firm with the best product or technology can often lose a sale to a firm that has a superior sales and marketing program. While good products and services are necessary to sustain long-term relationships, it is clear that the ultimate success of high-tech firms will be based on their sales and marketing prowess.
Craig Arnoff is the founder and President of The Sales Alliance Inc, a San Diego-based firm that helps over 150 companies optimize their revenues and profitability through innovative sales process development, training, compensation, staffing and sales management programs(www.sales-alliance.com).
Heightened Competition Driving Creative Sales Approaches - To learn more about this author, visit Craig Arnoff's Website.
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While consumers are benefiting from declining computer software and hardware prices, technology firms are scrambling to recapture their once-robust profit margin levels. Behind both the downward push on prices and the growth of the industry is increasing competition.
The information industry has recently surpassed the auto industry to become the world's largest industry-and everyone's scrambling to get into the act! Government and defense contractors are entering the commercial marketplace while new and evolving Internet technologies have spawned a whole new set of virtual companies competing for a slice of the pie.
Indeed, increased competition and improved technologies have lead to very short product life cycles and a constant barrage of new products. Firms who have been differentiating themselves based on the unique features of their software, hardware or service offerings are finding that these differentiation strategies no longer work as unique features can often be copied or improved upon by the competition within a period of weeks or months. As a result, high-tech companies are developing a variety of innovative sales, marketing and service approaches as a means to differentiate themselves from their competition and boost their sales and profit levels.
INTEGRATED SALES AND MARKETING
Measuring the true effects of monies invested in advertising, public relations, direct mail and other forms of marketing is a challenge for most businesses. However, several firms are taking advantage of more sophisticated software to track each lead they receive and to determine the number of leads and volume of revenues produced by each ad, mailing and marketing program. This information helps firms better invest its marketing dollars to achieve higher rates of return and to learn more about their marketplace.
CONSISTENT SALES PROCESS
Firms are discovering why many of their sales hires fail. Rather than modifying their individual sales process to fit the products and markets of their new employer, new sales hires typically stick to the sales process they used at their last employer. After all, their previous sales process made them successful, so why change?
Recognizing the potential for high salesperson turnover, poor sales results and customer complaints, several high-tech firms have developed and implemented a consistent, sales and marketing process. What they have found is that a uniform sales process produces both improved and predictable results. In addition, customers, who are comforted by knowing what to expect from vendor employees, develop higher levels of commitment and are often willing to pay more for what they perceive to be a high level of service and professionalism.
NON-TRADITIONAL SUCCESS METRICS
In several instances, the pressure felt by salespeople to make their quotas and "get the order" means that customers and prospects feel pressured to buy or are promised things that they never get. Smart companies recognize that more profit is made on repeat business than on initial orders and that customers who are not 100% satisfied have a number of other options.
A few firms are using customer satisfaction, as measured by blind surveys or management "check up calls," as a key element in determining sales commissions and bonuses. In other words, salespeople who merely achieve their revenue goals without attaining acceptable levels of customer satisfaction may sacrifice 20, 30 or even 50% of their commissions.
INNOVATIVE SALES TOOLS AND APPROACHES
Rather than selling their product merits, which are often short-term differentiators, enlightened businesses are focusing on long-term differentiation by grooming a new breed of sales and service professionals. These non-stereotypical sales types are able to capture the interest of customers and prospects by discussing how they can increase the customers' profits or reduce their expenses.
Developing and using sales tools like qualification and financial justification instruments, these sales and service people are highly effective in cultivating and nurturing business relationships. Instead of acting like salespeople, they act as business consultants. Even technical support and customer service people, due to their high levels of customer contact, are being trained and motivated to use these approaches to improve the quality of customer relationships as well as help to sell other products and services while interacting with customers on a daily basis.
NEW METHODS OF PRODUCT DISTRIBUTION
Firms are teaming up with networks of retail stores, resellers and independent sales representatives to improve the distribution of software, hardware and service offerings. Increasingly, the Internet is being used as a mechanism for generating leads and distributing information that later leads to sales. In several cases, orders are being taken over the Internet and software that is purchased is being downloaded. Without a doubt, improved distribution systems and technologies will play a key role in the development of effective sales and marketing programs.
Increased competition and rapid technological change is forcing firms, who once relied on their product or service attributes to garner sales, to differentiate themselves through innovative sales and marketing strategies. It has frequently been said that the firm with the best product or technology can often lose a sale to a firm that has a superior sales and marketing program. While good products and services are necessary to sustain long-term relationships, it is clear that the ultimate success of high-tech firms will be based on their sales and marketing prowess.
Craig Arnoff is the founder and President of The Sales Alliance Inc, a San Diego-based firm that helps over 150 companies optimize their revenues and profitability through innovative sales process development, training, compensation, staffing and sales management programs(www.sales-alliance.com).
Heightened Competition Driving Creative Sales Approaches - To learn more about this author, visit Craig Arnoff's Website.
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