Sales as a Management Science: Improve Your Conversions by Analyzing Your Approach

By: Growth Capsule — www.growthcapsule.com

Sales are the foundation of business. What people need to realize is this: One — Good products aren’t enough. Two — Selling skills aren’t enough.

Sales can be broken down into a management science, seeing the invisible and winning more deals. To get an MBA in selling, you will be introduced into “The Holden Four Stage Model”. This model shows the difference between a top seller and a bottom dweller.

Getting into this model, you will see patterns that help us determine where every scenario is in accordance to this model. The stages above can be labelled like this:

I. Emerging Sellers

II. Solution Sellers

III. Compete Sellers

IV. Customer Advisors

This model brings shows the techniques of great selling through five dimensions.

1. Intent

2. Focus

3. Relationship

4. Value

5. Knowledge

Intent: Getting right into it, Stage 1 Emerging Sellers simply want consideration and to make the short list. This in itself, is cause for celebration. They merely want to survive and grow into the job. Stage II Solution Sellers differ only in that they want to make a sale. Most of this category would sacrifice a long term relationship for a short term revenue gain. These people often lack objective and knowledge of whether they should pursue an opportunity. Stage III Compete Sellers want to develop a long term stream of business. In contrast to stage II, they use the following written criteria:

· Should I pursue this business?

· Can I win this business?

· Will winning lead to more business?

And finally, stage IV Customer Advisors go one step further, wanting to own the entire account. These people service demand, but also create it, providing unexpected value that earns them insider access. They are respected in opinion and leaned on for expertise. If a solution isn’t a good fit for a company, the customer advisor will let them know in a politically correct manner. “I know you are excited about this objective; however, my experience in this area suggest there is a significant risk of failure. Can we take a few minutes to discuss this?”

Focus: Stage I Emerging Sellers focus most of their time and effort on the product. They view the world on product strengths and weakness. Stage II Solution Sellers look at the product through the customer’s eyes. Stage III Compete Sellers don’t lose sight of the product and customer, but concentrate on the competition. What will it take to win? This group actively seeks competitive intelligence and formulates a strategy to win though this knowledge. Stage IV Customer Advisors go beyond the product, customer and competition to centre on the customer’s customer, and their competition. They do this by figuring out how they will provide unexpected value contributing to the customer’s business success over time. These solutions are tied to customer-critical business issues which moves them to the top of the sales value chain.

Relationship: Stage I Emerging Sellers see relationships as misnomer and don’t put any focus into it. Stage II Solution Sellers start building trust as they recognize that they’re selling solutions: Service, support and responsiveness. Stage II Compete Sellers build a bridge between the supplier and customer in order to see what they value most. This includes political value, where key people can advance their agendas in balance with the business taking place. An example “Holden” describes is the Rhinoceros and the Tickbird. The Tickbird gets a free lunch by eating all the ticks on the Rhino’s back. The Rhino frees himself of the bugs. Yet, if the Tickbird falls off the Rhino and gets stepped on, another Tickbird will fly in and continue the cycle. Stage IV Customer Advisors have built a great relationship that the companies depend on each other at this point. These organizations bridge together at the highest possible point. And example of this could be Microsoft and Intel, also known as “Wintel”.

Value: Stage I Emerging Sellers as providers of product options and information. This has been replaced by internet research which customers do on their own. Stage II Solution Sellers have adopted solutions which center on the operations of what a customer wants to accomplish. Stage III Compete Sellers understand business value is important yet they know they may not drive repeat business. They find out political behaviours of the company and get to a position where they can complete the sale. Stage IV Customer Advisors try to provide value at all levels. From solutions to political advancements. As long as it continues with their strategic direction, this allows sellers to have long term customer business information. This always impacts forecasts while building a competitive immunity within accounts.

Knowledge: Stage I Emerging Sellers spend most of their time looking through data such as customer lists. Stage II Solution Sellers turn this data into information, which is data with a purpose. Stage III Compete Sellers can produce insight and customer value from this data. Stage IV Customer Advisors have the ability to discern what’s important to develop insight. Further more they can apply this insight effectively.

After reviewing the dimension and stages, you can see how sales becomes a management science. Among the respective stages, where do you fit in?

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