Sales growth will come from (1) existing customers; (2) old or lost customers; (3) new customers; (4) existing products or service; and/or (5) new products/ services.
Based on the options above, the chances of success for making more sales are:
• Existing Customer – Existing Products/Services – 67%
• Existing Customer – New Products and Services – 50%
o (80% if they helped develop it with you)
• Old or Lost Customers
o 40% Existing Products/Services
o 25% New Products/Services
• New Customers
o Existing Products/Services – 25%
o New Products/Services – 5%
As a benchmark, the average Joe or Jane pulled from the street with no selling experience can 30% of the time, if they are dressed up, given a manual and pointed in the direction of buyers. That’s because, they buyers are usually doing the buying with poor to average sales people.
Top level sales people will close at the rate of 50%-70%. Their focus is to own existing customers and their most effective way is by developing professional relationships with C-Level and upper management. They performers learn the issues and concerns the C’s are experiencing in real time. It’s more than a hello in the corridor or a casual visit to their office.
C-Level relationship selling is making C-Level senior managers believe you can help them (1) generate more sales (a 4X power factor); and (2) save them money (a 1X power factor). The only way a sales person can accomplish that efficiently is to know each C-Level manager’s thinking.
If a sales person doesn’t get to know C-Level and other top managers then, sales people become basically a catalogue the subordinates refer to when the C’s decide it’s time to shop. If sales people develop C-Level relationships that allow them to suggest methods for improvements, they will have a profound impact on when the C’s decide to authorize or sanction the shopping. However, this involves advanced selling skills. For more on this read my book TAKE ME TO YOUR LEADER$ or refer to my website http://www.takemetoyourleaders.com .
So do the math. Where should sales people invest their time? The answer is all of these, but their investment in time and dollars should follow these percentages.
• Existing Customers – 50%
• Old or Lost Customers – 30%
• New Customers – 20%
Many sales people tell me they can’t spend 50% of their selling time with existing customers. Either they are afraid to stop cold calling or they have only one or possibly two people they know with existing customers. My answer is to stop cold calling and spread like a virus in the existing client organizations. Get to know (beyond hello’s) the C-Level and influential people. This includes senior managers not directly associated with your products and service. These people sit in the staff meetings and eat lunch with those that directly make decisions affecting you. If you have relationships with them, you’ll win a good word or some support. If you don’t, you won’t.
Think of Las Vegas - they play the percentages, and make lots of money. So calculate where time is being spent and start to structure selling and prospecting time based on the percentages above and you too will make lots of money.
And now I invite you to
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