Opportunity Pursuit – part 1, identifying or creating?
Opportunity Pursuit – part 1, identifying or creating?
Too many interactions between suppliers and buyers are based on individual transactions involving the supplier re-acting to a stated requirement. This serves neither the supplier nor the buyer as the result is invariably a price driven solution with little or no consideration for the added value that could be available or for the potential benefits of a more solid relationship designed to deliver benefits way beyond the single one-off transaction.
Identifying or creating – is there a difference?
An emphatic yes! Most sales people are OK at identification, reacting to the prospect saying "I want a ..." or perhaps asking “Do you need a new ….?” This is fine and it will always be a part of the opportunity process, however, the real prizes come when you create the prospect’s awareness that they have a problem and that you can solve it.
Having helped the prospect to understand that they have a problem you are in a powerful position to influence the definition of the solution. You are creating the opportunity by identifying the problem and then matching that to a solution that your company can provide. The prospect may well look for solutions from other suppliers but you will have made it harder for your competition as they are effectively responding to a requirement where you have influenced the specification and contents.
Working with the prospect to develop an understanding of the problem and the format of the solution strengthens the bond between you and them; it makes the outcome more predictable and increases your chance of coming out as the winner.
Identifying involves finding out what requirements the prospect has defined or specified, and then reacting to those requirements with a proposed solution. A common example is when companies use formal bidding processes and they issue various documents such as an Invitation to Tender (ITT), Request for Information (RFI) or Request for Proposal (RFP). The document will be accompanied by a clinical process and timetable that must be followed rigidly if you want your bid to be considered. The problem with this is that you have no scope to “sell” to the prospect and you will probably find yourself working through the procurement department who are motivated mainly by price. It is also a problem for the prospect as your desire to win the deal will drive you to quote based on price effectiveness not value.
Even if there is no formal process such as an ITT, you are at a considerable disadvantage if the prospect has already made up their mind as to what they want and how they want it, leaving you to react to that request. They have already gone through the stimulus and specify solution stages of the buying process, which leaves you only with the opportunity to react. In effect, you have no real control over the outcome and you are mainly a passenger in the procurement process.
By acting only on what the prospect has already identified and defined you are closer to an order taker than a sales person. The real issue with this is that you have very little control and it is difficult to produce meaningful forecasts of future work when the customer, and your competitors, are driving the bidding process.
Creating is an entirely different matter as it involves the supplier in working with the prospect to define the problem and specify the desired or required solution. It is often the case that a trusted supplier may be used in this “consulting” role and that the output will be an ITT, RFI or RFP which is sent to other bidders. However, if you are the trusted supplier who helped to shape the requirement and the bidding document then you are on the inside track to win the deal.
We talked previously about creating customers before pursuing opportunities. A real customer is an organization who sees you and your company as an essential part of their business. A real customer will often contact preferred suppliers, before formal tendering starts, to alert them to an opportunity coming up. They will allow you freedom of access, which will give you the opportunity to understand their issues and problems. By applying your relevant business or technical knowledge to create a solution for them, you are helping yourself into first position in the race, and you are helping them by giving them access to your expertise during their planning stage. A sophisticated customer that I worked with for many years evolved into the habit of asking suppliers to bid for IT projects using a format along the lines of “We need a system to do this … and we are prepared to spend up to £xxx,xxx”. In effect, they were asking; “How much can you give me for the budget that I have set aside for this project?” This is a far cry from the prospect who refuses to tell you the budget or to discuss your competition but such relationships only evolve if the supplier puts in the effort from the beginning.
Tips:
* Develop techniques to get to know the prospect which do not initially rely on talking about specific pieces of work.
* Research to understand the problems the prospect might be struggling with in their marketplace; competition, legislation, etc.
* Research to understand the specific problems of the individual prospect.
* Use your relevant business knowledge to interpret the research to create your approach strategy. They will be more likely to see you and open up if you demonstrate that you understand their pain and that you have a solution.
* Make it clear to the prospect that the early meetings are designed to understand how they operate. This is a great rebuttal to the “We don’t need any at the moment …” type of objection.
Copyright © Performative plc 2001-2006. All rights reserved.
Opportunity Pursuit part 1 identifying or creating - To learn more about this author, visit Phil Shipperlee's Website.
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Finally! This is the stage where you get to start actually making sales, taking orders and earning money for your business.
Too many interactions between suppliers and buyers are based on individual transactions involving the supplier re-acting to a stated requirement. This serves neither the supplier nor the buyer as the result is invariably a price driven solution with little or no consideration for the added value that could be available or for the potential benefits of a more solid relationship designed to deliver benefits way beyond the single one-off transaction.
Identifying or creating – is there a difference?
An emphatic yes! Most sales people are OK at identification, reacting to the prospect saying "I want a ..." or perhaps asking “Do you need a new ….?” This is fine and it will always be a part of the opportunity process, however, the real prizes come when you create the prospect’s awareness that they have a problem and that you can solve it.
Having helped the prospect to understand that they have a problem you are in a powerful position to influence the definition of the solution. You are creating the opportunity by identifying the problem and then matching that to a solution that your company can provide. The prospect may well look for solutions from other suppliers but you will have made it harder for your competition as they are effectively responding to a requirement where you have influenced the specification and contents.
Working with the prospect to develop an understanding of the problem and the format of the solution strengthens the bond between you and them; it makes the outcome more predictable and increases your chance of coming out as the winner.
Identifying involves finding out what requirements the prospect has defined or specified, and then reacting to those requirements with a proposed solution. A common example is when companies use formal bidding processes and they issue various documents such as an Invitation to Tender (ITT), Request for Information (RFI) or Request for Proposal (RFP). The document will be accompanied by a clinical process and timetable that must be followed rigidly if you want your bid to be considered. The problem with this is that you have no scope to “sell” to the prospect and you will probably find yourself working through the procurement department who are motivated mainly by price. It is also a problem for the prospect as your desire to win the deal will drive you to quote based on price effectiveness not value.
Even if there is no formal process such as an ITT, you are at a considerable disadvantage if the prospect has already made up their mind as to what they want and how they want it, leaving you to react to that request. They have already gone through the stimulus and specify solution stages of the buying process, which leaves you only with the opportunity to react. In effect, you have no real control over the outcome and you are mainly a passenger in the procurement process.
By acting only on what the prospect has already identified and defined you are closer to an order taker than a sales person. The real issue with this is that you have very little control and it is difficult to produce meaningful forecasts of future work when the customer, and your competitors, are driving the bidding process.
Creating is an entirely different matter as it involves the supplier in working with the prospect to define the problem and specify the desired or required solution. It is often the case that a trusted supplier may be used in this “consulting” role and that the output will be an ITT, RFI or RFP which is sent to other bidders. However, if you are the trusted supplier who helped to shape the requirement and the bidding document then you are on the inside track to win the deal.
We talked previously about creating customers before pursuing opportunities. A real customer is an organization who sees you and your company as an essential part of their business. A real customer will often contact preferred suppliers, before formal tendering starts, to alert them to an opportunity coming up. They will allow you freedom of access, which will give you the opportunity to understand their issues and problems. By applying your relevant business or technical knowledge to create a solution for them, you are helping yourself into first position in the race, and you are helping them by giving them access to your expertise during their planning stage. A sophisticated customer that I worked with for many years evolved into the habit of asking suppliers to bid for IT projects using a format along the lines of “We need a system to do this … and we are prepared to spend up to £xxx,xxx”. In effect, they were asking; “How much can you give me for the budget that I have set aside for this project?” This is a far cry from the prospect who refuses to tell you the budget or to discuss your competition but such relationships only evolve if the supplier puts in the effort from the beginning.
Tips:
* Develop techniques to get to know the prospect which do not initially rely on talking about specific pieces of work.
* Research to understand the problems the prospect might be struggling with in their marketplace; competition, legislation, etc.
* Research to understand the specific problems of the individual prospect.
* Use your relevant business knowledge to interpret the research to create your approach strategy. They will be more likely to see you and open up if you demonstrate that you understand their pain and that you have a solution.
* Make it clear to the prospect that the early meetings are designed to understand how they operate. This is a great rebuttal to the “We don’t need any at the moment …” type of objection.
Copyright © Performative plc 2001-2006. All rights reserved.
Opportunity Pursuit part 1 identifying or creating - To learn more about this author, visit Phil Shipperlee's Website.
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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