article | April 23, 2017
Is Your New Product Pushing the Rep's Credibility to the Edge?
Can your sales force handle another new product introduction? New offerings open up profitable new revenue streams. But they also tax your sales talent. This post is for sales leaders and their HR business partners. It answers the question, “What will it take to enable our team to sell the new solution?” The post will explore the pressures on productivity and cost. To access additional product launch articles, download the SBI App via iTunes and navigate to the Product section.
It all starts by assessing your team’s capability. Can they handle another new offering? There are 2 dimensions to consider:
Bandwidth – The first hurdle
If the current team can develop the competencies, do you have enough people? The new offering should enrich the opportunity in every existing territory. One option is to create new territories by scaling down existing ones. This is unpopular and causes customer disruption. But it can be the most practical alternative to ensure you Make the Number.
If the additional revenue offsets the additional headcount, it makes sense. The challenge becomes building equitable new territories. It may also require a revision the compensation plan or quota. New products mean new opportunities and new accountability.
Another option is to make the sales team more efficient. Reduce non-selling activities and implement sales force effectiveness measures. In short, free up your existing headcount to sell the new offering.
A third alternative is to supplement the generalist sales force with a Specialist. This is a quota-bearing sales resource who supports multiple sales people. The focus is specifically on opportunities for the new offering. This option is covered in more detail after the second question is answered.
Skills & Knowledge – Do we have what it takes?
Some skills and knowledge can be learned on the job. If the new offering is similar to others in the portfolio this is very straightforward. Simply add the necessary training to the launch program. In other cases, a sequence of learning activities may be required. Role playing, sales gamification and certification can ensure readiness to sell the new solution. The Learning & Development provides the training resources and structure. Marketing supplies the product and competitive knowledge content.
However, some new offerings require more. Specific industry or technical knowledge may be beyond the depth of your current team. There may simply be no way to make up for years of domain experience required. Customers demand that the sales person adds value to their decision-making process. This can’t be faked or ignored.
Start by assessing the demands of the new offering. Determine the gap between current capabilities of your team and those required at launch. It may be possible to start selling the new offering initially while ramping up skills and knowledge. But it may simply be impossible. Product Marketing can assist in defining the competencies required to articulate the value proposition. HR can help by comparing the existing job requirements to the new demands. Hiring profiles and scorecards must be updated.
For a comprehensive assessment of your product launch, read this article Are You Ready for Your Next Product Launch?
The Solution Specialist Role
What are the options when the team lacks the required competencies and training isn’t the answer? Upgrading the entire sales force is expensive and time-consuming. A best practice is to add a Specialist to the mix. That is a major investment that should not be made without deep analysis. To help you with that analysis, download the Solution Specialist Checklist.
The Specialist is an overlay position, providing support to a group of generalist sales people. This can be a cost-effective way to supplement the skill set of the generalists. The Specialist serves as a role model for selling the new solution. This boosts the new offering launch with dedicated resources. Over time the Specialist transfers essential knowledge to the generalists. The role is often funded by the product team or business unit responsible for the new solution. This converts some of the sales expense to a product launch expense.
Done correctly, the Specialist role can accelerate the new solution offering adoption to hit your revenue number. At the same time, it can build a bench of leadership candidates. It’s one more way to help you Make the Number.
If you would like help with determining the right roles for your product launch, visit The Studio, SBI’s multimillion dollar, one-of-a-kind, state-of-the-art executive briefing center. A visit to The Studio increases the probability of making your number because the sessions are built on the proven strength and stability of SBI, the industry leader in B2B sales and marketing.
Anyone that has ever led a sales organization of any size has probably experienced the feeling of re...
Mergers, Bolt-ons, and tuck-in acquisitions are an increasing common growth strategy being depl...
Over the last week, we have seen the effects of the COVID-19 pandemic on the market, businesses, and...
Shifting the go-to-market model to digital has been a subject on the mind of market leaders for some...
Recent world events have only accelerated a trend that we have seen over the last two decades &ndash...
Although the COVID-19 pandemic is creating challenges that businesses have never dealt with before, ...
Data is becoming a core component of every business. As a result, the quality of the data being gath...
There has been exponential growth in the amount of data generated since the start of the digital age...
SBI TV episodes bring you Sales and Marketing insights from B2B industry thought leaders and growth experts, on topics like product, pricing, customer experience and success, and go to market. Catch up on new and previous episodes here.