48 % of Sales Reps did not meet their quota in 2019. The sad news is that according to Miller Heiman Group this was the fifth consecutive year in a row. One thing is to generate sales. Finding a system that delivers a measurable and repeatable growth model is something entirely different.
As a result, you may have heard or thought of the following statement:
“Our sales reps are very knowledgeable about our products and their specifications. We are looking to move the dialogue into a more value-based approach. What should we do?”
Setting a strategy where the business must follow a sales methodology is to enable sales success. Turning uncertainty into predictability. This article will cover 4 of the most popular sales methodologies and some of the philosophies, methods, and communications associated with it.
Be aware of the fact that the methodologies might work for one company, but be a misfit for another. Becoming aware of which methodology to follow must, therefore, be a key priority in enabling sales for the future.
Essentially driving sales can be split into three areas:
- Sales Philosophy
- Sales Method
- Sales Communication
As you can see above you will find the “transactional sales” as the first step. This is an area where the client needs to be convinced and thereby the sales communication is characterized by being convincing. Traditional transactional sales examples could be buying gas at the gas station and the cashier asks if you want to buy something extra.
As a next step, we see SPIN selling as a sales method, where the philosophy requires the sales reps to help the clients make decisions and understand their needs. The communication style is guided by open-ended questions.
Generally, when organizations consider adapting “Value-Based Selling” they are looking into the philosophy from a vendor belief that their solutions are the best and will guide in these solutions. The communication style is asking in-depth about the client’s pains. The whole mission is to pair the client’s challenges and problems toward your solutions/products.
A guide in Solution based selling includes:
- Identify the client’s pains
- Ask in-depth on these pains using open-ended questions
- Connect the client’s pain to your specific solutions illustrating clear value (ROI)
However, some organizations may benefit from looking into the Challenger Sales methodology. The philosophy is for the seller to bring unique knowledge and insights to the table. The communication is more educative, where the sales rep shares knowledge and challenges the status quo.
Wanting to move into a “Value-based Selling” also means having to look at your current buyers. Byways of inspiration we highly recommend the Kraljic Matrix originally from 1983. The whole idea behind the matrix is to map out your sales against two key dimensions: risk and profitability.
Sales Enablement and transforming sales is a strategic initiative and as such requires senior management involvement and priority. A strategy should be established also covering some of the presentation topics in the B2B client meetings as well as setting the right meeting structure for the sales reps.