Planning for your team’s sales success means knowing – down to the account level – where the revenue to hit your sales targets will come from. Few sales organizations do this well.
Buck the trend and be one of them.
Simply stated, there are two sources of new revenue: from a) existing customers and b) “new logo” business (net new customers who represent a “new logo” on your customer list). Forecasting how much of your required growth will come from each gets your team focused on the right areas straight out of the gate.
New revenue from existing customers is the easiest place to start. The cost of acquiring this business is low because you’re connected to key decision-makers already. These customers know you and love you. There are two approaches to developing new business within your customer base.
The first is to have each of your people consider their top customers and ask, “What products or services do these customers not buy from us that are a natural extension of what they do buy from us?”
For example, if you’re in the office products business, maybe your top account buys its consumables from your company, but has never spoken to your decor design division.
Next ask, “Who within the account can I speak to and what questions should I ask to learn if he or she has needs that these extension products will fulfil?”
Determine whether you’re appropriately connected to begin the selling process. Does the person who makes the consumables decision make the furniture decision? If not, how might you get connected to that person?
Nailing down this detail will create a quick strategic sales plan that can be acted on immediately.
The second way to generate new revenue within your client base is innovation.
It may be that you’re meeting your top account’s stated needs already. Leverage this relationship and engage that client in a “round table” idea-generating exercise to explore potentially unmet needs and consider ways to meet them.
For instance, maybe your top customer is facing cost challenges associated with rogue purchases made outside of its discounted contract with you. Perhaps a managed inventory solution – a service you don’t offer today – would be a perfect fix for this problem.
Take this idea to engineering, marketing and research and development. You just might build something that other customers can use, too.
New logo business is the next revenue channel to explore. This is often higher-margin business that, although it’s small today, can grow meaningfully. Broadening your account base by securing new logo revenue makes your business healthy and stabilizes revenue flow.
Acquiring new logo business can be slow and frustrating. These accounts are seemingly impenetrable fortresses with skilled gatekeepers and guarded decision-makers. Cold-calling them is ineffective and useless. To meet this challenge, play the “six degrees of separation” game.
First, have each person on your team identify his or her top 10 new logo target accounts.
Then bring the team members together with their contact databases. Determine if any connections exist within those databases to the new logo targets. Generating warm referrals into these targets will get you out of the cold-calling trap and into productive sales meetings.
Sound account planning is not difficult. The strategies you create will take your team from hoping it hits its sales goals to planning to hit them. After all, hope is not a strategy.