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 Łxxx,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.
Like this article? Share it with your friends
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 Łxxx,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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Michel NerayMichel Neray has over 25 years of experience as an award-winning copywriter, an Internet pioneer, a tradeshow pitchman and a senior sales and marketing executive. An online pioneer, he was one of the first marketing professionals to embrace the Internet by building websites as early as 1993. In 1994, Michel co-authored a book entitled "The Great Crossover: Personal Confidence in the Age of the Microchip", which made it to Jack Canfield's Achiever's Recommended Reading List. Michel founded Portfolios.com in 1995, the world's first online source directory for creative professionals and one of the first websites based on community generated content. Since creating The Essential Message in 2003, Michel has helped thousands of independent professionals and entrepreneurs as well as growing corporations find a better way to differentiate, position and brand themselves. In 2005, his chapter "Everything Starts With A Conversation" was selected as the lead for the book, "Sales Gurus Speak Out" and re-published in 2008 for 'Awakening The Workplace Volume 3'. He is also a co-author of "In the Company of Leaders" (2008) with 40 top North American leadership experts. - Visit Michel Neray's Website |
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 Phil Shipperlee (Visit Phil's Website) Phil Shipperlee, CEO and Founder of Performative, started in sales with Olivetti in 1969 and progressed to senior roles in Sales & Marketing in the Software & IT Services sector; UK country manager, head of global sales & marketing based in the USA, head of European operations (UK, France, Benelux, Germany and Italy). Phil was instrumental in creating a selling process integrating 12 acquisitions and used throughout operations in North America, UK, Europe, Australia, Japan and India. Since 1980 he has built and run several successful businesses. Performative provide business performance improvement solutions to companies across the UK. There is an indisputable link between the overall performance of the whole business and the performance of the sales operation, hence, our core focus commences in the sales operation but also looks upward to the Board and its strategy, and outward at the integration of the selling operation with the rest of the organisation. Special areas of knowledge: the creation of high performance selling operations within any corporate environment, solving the business issues of SMEs, using and selling offshore solutions, M&A, post-acquisition integration.
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