Creating Value for the Customer
Sales strategy starts with placing focus on value creation, i.e. how to sell more. A sales force should break down what they do, from the creation of a lead, to the conversion of a lead into an opportunity, to the closing of a deal, into smaller and smaller pieces, and judge each on its competitiveness.
Ask- How does our sales forces performance of activity X measure up to our competitor’s in terms of value delivered to the customer? A framing device might be helpful, such as a sales value chain analysis, which can isolate every activity that goes into winning a deal, which then can be benchmarked against other divisions, sales geographies, other companies, even other industries. Here is an example of one:
Why this is important to your business?
Analyzing ways to get your reps to sell more, without first understanding how competitive they are on specific activities, can feel like trying to boil the ocean. Seperating inputs (ex.generating leads) from outputs (ex.quota retirement) might provide you greater visibility to root cause.
If you are interesting in reading more about sales strategy, check out Ram Charan’s book on the subject.
How do you go about setting sales strategy?