Why a targeted sales focus is an evolving & on-going process in the sales pipeline
“Concentrate all your thoughts upon the work at hand. The sun’s rays do not burn until brought to a focus.”
- Alexander Graham Bell
There’s no doubt that a targeted sales focus process can be of great benefit to a company, sales executives tell me so on a regular basis. However, to remain effective, the process should be seen as constantly evolving and developing as an on-going strategy.
As technology, markets, companies, customer needs, staff and economies evolve, so will your Target Sales Focus. Often companies with a tunnel vision will not see an emerging trend and will begin to lose market share and profitability. Identifying changing conditions will provide new opportunities and market niches where you will be able to expand now or in the future. Your company should always keep its eyes open for new market trends and opportunities.
In order for your sales team to have the focus they need to leverage their time, energy and resources, you’ll need to have a clear understanding of your prospects’ demographics and psycho-graphics. You’ll also need a clear understanding of their current business pains and business trends, as these create the opportunities for your sales team.
Always ask yourself – How aligned are you to current market trends?
I find that there are a few situations where you may want to adjust strategies. Examples of situations where your products or services can help business owners achieve their most pressing business objectives include:
- Profitability and/or productivity issues
- Shrinking market share
- Pressure from competitors
- Industry trends, market changes
- Ineffective processes, implementing regulations, operational proficiency
- Management shortcomings, i.e. communication, decision-making
- Human resource issues, i.e. staff turnover, development, morale
- Entering new markets, merging companies, entering into strategic alliances
- Growing sales, market, and/or revenue
So, make a note of any ideas that may assist you in refining your sales focus.
Strategies may evolve when clients face new challenges. Opportunity accelerates when there’s a pressing business problem that creates an environment where your solution can provide a fix, i.e.:
- Poor financial results, market fluctuations
- Major changes in economy
- Changes in consumer preferences
- Mergers, acquisitions, downsizing, restructures
- Changes in legislation
- New management
- Loss of key personnel
- Events or crises of national or international interest
Ask yourself – what are the triggers that your prospects are experiencing?
Sales Growth Question: What type of marketing planning process do you have in place to achieve company success?
Sales Growth Lesson: A successful plan is a detailed written document which can be used to promote your annual business strategy.
Get this free sales management eBook now!
© Copyright 2011, Danita Bye Sales Growth Specialists, All Rights Reserved.
Get input from your sales team to improve sales
OK, so you’re well into your market research plan now – you’ve analyzed your market segments, and have defined key characteristics. You’ve also reviewed non- and existing customers to gain further information about where you are going right and where you may need to make improvements. All in all you’ve collected a lot of information and have gained considerable insight at this point, but you may need to go a little further.
Both marketing leaders and sales professionals tell me that this is the time to bring your sales team in. This doesn’t necessarily mean the entire team – just key members within it – to get their input. Ask them the following questions:
- Do your findings match up with their experiences?
- Have you missed anything?
If, following this input, you find that there are any discrepancies or weak areas in your research, now is the time to backtrack. Find out which area you need to cover again/more thoroughly, and amend your market research plan. Ask for detailed input from your sales team, and ask yourself – what insights did you get from the group?
Once all of the relevant steps in your market research plan have been completed, it’s time to condense your findings. Many marketing professionals tell me that this is perhaps the most crucial stage in the process, allowing for the summarization of findings. This is the time to clarify all that you know about your target market and compile it on a single page, preferably less. Not only does this force you to think clearly about your target market’s characteristics, needs, and outlook, but it gives you an enormous credibility boost when you mention your target to potential customers and hit their needs dead on. And even in the case of a rare miss, chances are good that your concise, on-the-money target market summary generate a referral that needs you yesterday, if possible.
I agree that this step can be a time-consuming and soul-searching process, but the hard work you’ve done to identify your target market IS going to pay off, especially when you reach out to that market with a message that’s carefully crafted to bypass objections and get straight to the heart of their wants and needs.
Sales Growth Question: How often do you sit down with your sales team to discuss new promotions, advertising, customer service, and future goals.
Sales Growth Lesson: Market research gives businesses essential information on customers, competitors, and market.
For an in-depth look at the entire market research process check out my sales focus ebook, Targeted Sales Focus. Got questions? Feel free to email me today.
© Copyright 2011, Danita Bye Sales Growth Specialists, All Rights Reserved.
Analyze current customers as part of your sales pipeline
I speak to many sales executives, who tell me that emphasis is often placed on the research of non-customers. However, I find that it is also very important to take a look at your current customers, and to understand why they buy your products or make use of your services, rather than those of your competitors.
In this step of the process, you’ll take a good look at your current customers concentrating on factors such as their likes and dislikes about you and your products and from what they do, as evidenced by your accounting and other records. I find that it is useful to survey a representative sampling of my customers. During this process, I ask them questions such as:
- If you’ve done business with similar companies in the past, what do they offer that we don’t?
- What are the top three things we get wrong?
- What is your primary consideration when purchasing products/services like ours?
- What do you like and dislike about dealing with our sales representatives?
- Which of our products meet your needs best?
When you have answers to these questions, dig into your accounting and other records to find out the following:
- Which of your products have proved most popular?
- Which of your products are most profitable?
- What customer characteristics match up with which of your products?
Finally, sort your customers by dollar sales, margin dollars, and products sold. I always take note of any trends I spot, and then compare them with the data I’ve gathered from previous research. The overall purpose is to identify my most favorable customer types and market segments – in other words, my ideal target market.
You can get more information on current customer market research and more in my complimentary ebook, Targeted Sales Focus.
© Copyright 2011, Danita Bye Sales Growth Specialists, All Rights Reserved.
Analyze non-customers as part of your sales pipeline
So, you’ve performed your initial research, and have identified specific key segments in your market. My next step would be to take the market segments in which I already compete or would like to compete, and using the data I’ve collected, analyze non-customers to see why they don’t (or why they probably wouldn’t) buy from me right now. When executing this step, you’re looking for patterns – to find them, you will need to answer questions like these:
- What are the common characteristics of those we’re not successfully selling to?
- Are we failing to sell to a certain age group or company size?
- How does our targeted client get information on our and our competitors’ products?
- Is our message reaching a segment’s preferred media?
- Do we offer a compelling benefit to a segment but don’t have a message that resonates with that segment?
- Is there a competitive disadvantage we could reduce or eliminate?
- Are there upcoming environmental factors (legislation, economics, technological advances, etc.) that might change our performance in a segment?
By answering the above questions, I find that invaluable information can be gathered. This information can then be used to identify potential new target areas, and to understand why individuals/companies are not buying from you now.
Sales Growth Question: Have you asked each employee what’s the one thing that really gets him or her excited about your customers? What were some of the answers?
Sales Growth Lesson: Get to know your competition – their habits, strengths, weaknesses, pricing history and selling tendencies.
To read more about the importance of identifying why your non-customers aren’t buying from you check out my target market ebook, Targeted Sales Focus.
© Copyright 2011, Danita Bye Sales Growth Specialists, All Rights Reserved.
It’s time to get specific to improve sales lead generation
When implementing a new market research plan with the purpose of improving sales lead generation, I initially take some time to analyze my market segments. Once done, and with any relevant information resources in place, it’s time to get more specific.
This is the point where I roll up my sleeves and begin chopping up the broader market into logical segments. Once I have clearly identified each segment, I compile a list of characteristics for each, such as geography, demographics, and psycho-graphics. To get you started, here’s an example of the characteristics I use:
- Location – Region/Population density/Access to infrastructure services (broadband Internet, mobile communication networks, etc.)/Climate
- Customer Profiles – Note that the demographic characteristics you choose to examine will depend on whether you sell directly to consumers or market your products to businesses.
- Individuals – Age, gender, family status/Income level/Professional characteristics (white, blue, pink, no collar, dominant industries, etc.)/Preferred media (print, television, online, etc.)/Shopping habits (online, credit, cash, etc.)
- Businesses – Industry types/Company sizes/Distribution channels/Technological sophistication/Customer types/Developmental stage (start-up, growth, mature, etc.)
- Lifestyle factors (Individuals) – Leisure activities/Political affiliation/Influences (Businesses) – Mission and values/Attitude towards technology (bleeding edge, mainstream, etc.)/Management style (consensual, autocratic, etc.)/Business priorities (growth, maintenance, etc.)/Attitude towards human resource management and development
By analyzing the above factors, you should have a good-sized list of geographic, demographic, and psycho-graphic characteristics for each of the market segments you’ve identified. Using this data and the information you gathered during your initial research, you can now determine the segments to which your benefits and competitive advantages align most closely, ranking the segments from best to worst.
Sales Growth Question: What do you do to generate traffic and how do you turn that traffic into leads and ultimately profits?
Sales Growth Lesson: There’s no doubt that a targeted sales focus process can be of great benefit to a company.
For more information on developing a highly specific market segment read my sales focus ebook, Targeted Sales Focus.
© Copyright 2011, Danita Bye Sales Growth Specialists, All Rights Reserved.
Analyze your market segments to improve sales
When embarking on a market research campaign, I find that it is vitally important to analyze your market segments thoroughly. Once you’ve got a good picture of your relationship with your competitors and to the market overall, it’s time to look closely at the various segments within your market.
For the best results, you’ll want to avail yourself to the expertise of internal and external experts on the market, and you also have to take advantage of other resources for maximum effect. Here are a few suggestions to help you with your research:
- Federal, state, and local chambers of commerce (i.e. www.uschamber.com)
- Federal and local Small Business Administration resources (i.e. www.sba.gov)
- University business libraries
- Trade magazines
- And of course, the Internet (Google, as always, is your friend)
Ask yourself the question – which source is of most relevance to my search? The internet is invaluable for research purposes, so use it when possible.
There are many sites available containing the information that you need to create an effective market research plan. With the correct research, you will soon be on your way to sales process improvement and increased sales lead generation. Once you have performed the initial research, it’s time to get specific.
Sales Growth Question: Do you have a strategic marketing process which involves ways that value can be created for the customer?
Sales Growth Lesson: Focus on what is different – not just on the common needs of your customers.
To learn more about pinpointing your specific market segment read my market targeting ebook, Targeted Sales Focus. If you have any questions or contents be sure to shoot me an e-mail.
© Copyright 2011, Danita Bye Sales Growth Specialists, All Rights Reserved.
Market Research – Find out why your competitors are successful
There’s no doubt that market research is critical to assess your market and competition. As part of a marketing research plan, you’ll look outward as you ask yourself; why do we have competition? After all, in your perfect world, no one would dare to even challenge you. So, why do they?
To find out why your business doesn’t own the entire market, assemble a group of internal and external people who know the market, and then honestly and objectively ask them to answer the following questions:
- What are our offerings?
- What benefits do our offerings provide our customers?
- What are our organizational strengths and weaknesses?
Also answer the following questions yourself:
- In cases where our benefits exceed those of the competition, what other factors cause our prospects not to buy from us?
- Are we more concerned about what we want to sell than about what customers need to buy? If so, how can we change that?
- Where do our primary weaknesses lie? In our offerings? In the real or perceived benefits of our offerings? Do our organizational structures and policies hamper our sales efforts?
- Overall, in the markets we sell in, where do we currently stand in relation to our competition?
- Are we a major player? Mid-pack? Lower?
Make a list of your competitors and answer the above questions for them. Compare the answers, noting where your offerings differ. Categorize benefits by those you and your competitors provide, those you don’t provide, and those that you alone provide (if you don’t find any benefits that distinguish you from your competitors, don’t worry – you’ll work on that later).
Finally, stack your organizational strengths and weaknesses against those you perceive for your rivals. With this information in hand, you can gain an insight into where you are ‘winning’, and where improvements can be made.
Sales Growth Question: What needs are there in your sales industry that can be fulfilled?
Sales Growth Lesson: If you’re going to start a new business or launch a new product or service you must make 100% sure that you research the market first.
For more information on what to consider when comparing your business’ offerings to those of your competitor’s be sure to look to my market focus ebook, Target Sales Focus. If you have any questions feel free to give me a call at (612) 267-3320.
© Copyright 2011, Danita Bye Sales Growth Specialists, All Rights Reserved.
Can you afford market research?
To quote Albert Szent-Gyorgyi; “Research is to see what everybody else has seen, and to think what nobody else has thought.”
I am often told that the costs involved with market research are too much for those holding the purse-strings within a company. While major corporations routinely budget hundreds of thousands of dollars for target market research, which includes focus groups, professional surveys, and direct mail questionnaires, there are effective (and cost-effective) techniques for smaller companies with more creativity than cash.
I find that a step-by-step market research plan can be designed to get you the most “bang” for your buck. As you work through the steps, don’t be obsessed by any one phase. Try to think of market research like you would check the mirrors while you’re driving. Obviously, you don’t study your side and rear view mirrors just once when you leave the driveway and call it done, no matter how hard you look that one time. Market research is an on-going process, and as you continually narrow your focus, you’ll refine your sales processes for better and better results.
Certainly, it’s very important to find the perfect fit for your company. Though you may have conducted some market research in the past, the fact that you’re still with us indicates that you haven’t zeroed in on the “perfect fit” market for your products and services. So, with that in mind, try to put aside any preconceived notions that might get in the way of a better answer as you research your ideal market.
Sales Growth Question: What are your basic levels of market research that you think will save you costs?
Sales Growth Lesson: To understand what customers want, you need to find out everything you can about them that is relevant.
To get an in-depth look at how you can do cost-effective market research get my target market ebook, Targeted Sales Focus, today!
© Copyright 2011, Danita Bye Sales Growth Specialists, All Rights Reserved.
The basics of market segmentation – Define your target market
“There is nothing like looking, if you want to find something. You certainly usually find something, if you look, but it is not always quite the something you were after.” - J.R.R. Tolkien
I think of a target market as a narrowly defined cluster of potential clients who are likely to provide the greatest ROI for my sales and marketing investments. Generally speaking, markets are segmented along three basic lines:
- Location – A geographic segment is, in part, what you’d think: a particular area, such as the Southeast, Georgia, or Atlanta. But geographic segments also include overlooked variables like climate and population density. What location conditions could require you to refine your sales focus?
- Client Profiles – Depending on your products and/or services, your ideal demographic might be composed of individuals or companies, but probably not both. If you sell to individual customers, you’ll need to segment those individuals according to factors like age, income, gender, and family status. B2B companies will need to consider company size, location, industry focuses, distribution channels, other variables. What customer profiles could require you to refine or expand your sales focus?
- Human Factors – In the case of individuals, psycho-graphic segmentation refers to sorting potential customers by subjective qualities, such as lifestyle, interests, opinions, and preferred activities. If you sell to businesses, you’ll need to precisely determine your ideal market’s mission, vision, leadership style, and emotional vs. rational decision makers. What lifestyle factors could require you to refine your sales focus?
On the surface, picking out a target market doesn’t seem so daunting. Don’t kid yourself, though – correct market research isn’t easy, and it isn’t quick. But it is an investment that will pay off handsomely.
Sales Growth Question: Did you do a research on the demographics of your community; and if you did under which market segments were they placed?
Sales Growth Lesson: You need to consider the types of industries available to you, their number of employees, annual sales volume, location, and company stability.
For a more in depth look at how to identify your target market make sure you check out my sales focus ebook, Targeted Sales Focus. If you have any additional questions feel free to give me a call at (612) 267-3320.
P.S. Be sure to take a look at my colleague’s article for insights into myth-busters around hiring sales people, “Is depending on salespeople a sure bet to hit sales targets?”
© Copyright 2011, Danita Bye Sales Growth Specialists, All Rights Reserved.
More myths that mislead sales efforts
Myth 4: Good Customers Will Follow Us Anywhere
Depending on the products or services you sell, physical distance may be more or less of a factor in your relationship to your customers. But it’s always a factor – time zones, shipping, and sheer convenience dictate that.
Myth 5: A Competitor’s Salesperson Can Give Us an “In” to his Market
Not necessarily – good customers are a by-product of good fits – the profitable mesh of your customers’ needs and your offerings. Change the fit, change the customer.
Myth 6: Our Sales Reps Pitch Customer-Centric Benefits
Are your salespeople selling your products and services with an eye toward WIIFT – What’s In It For Them? Don’t count on it, even if you’ve trained them to sit on the other side of the desk when they’re selling.
Myth 7: Low Margin Is Better than No Margin
This myth is about opportunity cost, the price you pay when you choose one activity over another. Many times, it’s better to forego a little profit now in favor of higher profits later.
Myth 8: Every Customer Is a Good Customer (a.k.a. The Customer Is Always Right)
If some markets are bad for your business – and some are – then some customers are bad for your bottom line, and for your sale force’s collective morale, and for your company’s reputation.
Myth 9: Slow Pay Is Okay
Every business has at least a few customers who are good for their bills but take just this side of forever to pay them. And really, what’s the harm in that? Actually, there’s plenty of harm in that. A slow paying customer is a variation of the high maintenance customer.
Myth 10: Bigger Accounts Are Better Accounts
This is a tough myth because some big accounts can put your business into another league. Then again, some can put you out of business. Ideally, every customer should be viewed as a potentially “good” customer.
Myth 11: I Can’t Afford Market Research
Yes, market research can be expensive. However you can’t afford to neglect your market research, either, because it’s the foundation of a truly targeted sales approach.
Sales Growth Question: What is the biggest motivator that gets your sales people going?
Sales Growth Lesson: Defuse the myths!
Want more information on how to accurately focus your sales efforts? Check out my sales focus ebook, Targeted Sales Focus, or e-mail me today.
© Copyright 2011, Danita Bye Sales Growth Specialists, All Rights Reserved.
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