Are You About to Lose Your Largest Client?
For the last five years, a hardware supplier sold screws to a national home building company. Whenever the home builder ordered screws, the supplier delivered them accurately and on-time. If the home builder wanted Philips screws, the supplier delivered them. If they wanted flathead screws, the supplier had those, too. The supplier had screws of all types and sizes which allowed them to serve this national home builder client.
The supplier was proud of its performance, and the home builder was pleased with the customer service responsiveness. Over the years, this client grew to become one of the largest, most profitable clients in the hardware supplier’s portfolio.
One day, everything changed. The home builder stopped buying screws from this supplier. A competitor came along and took the account away.
How could that happen given the performance of the hardware supplier?
The competitor talked with the home builder, not just about the screws. The salesperson inquired about the tools they used to install the screws and the material in which the screws were installed. Interestingly, just like the incumbent supplier, the competitor could provide a comprehensive solution rather than sell a single product. Unfortunately for the incumbent, they never had a conversation about the full solution they could provide. They were complacent with the revenue they had and felt that their customer service would create client loyalty. Unfortunately for them, they were wrong.
They lost this account, and the competitor didn’t win it on price. They used Sales Differentiation strategy to position the value of consolidating suppliers with a comprehensive solution which made a strong business case justifying a change. The incumbent was merely a product-pusher and did nothing to provide meaningful, differentiated value.
This story parallels a dynamic I find in most companies. They have a fragmented client portfolio. They sell a product to a client and don’t develop a strategy to position the full solution they can bring to bear. They may have sold a single product to a company or a full solution to a division or location. In both cases, there is more selling to be done!
The key is to use a selling strategy I refer to as conquering accounts. Your client portfolio represents both opportunities and vulnerabilities which a conquering accounts strategy addresses.
The opportunity you have is to grow revenue with those you presently have a relationship.
The vulnerability comes into play when you don’t have a conquering accounts strategy as a competitor, just like with the hardware supplier, comes along and presents a compelling solution rather than pushing a product.
Have you ever looked at your client portfolio and asked yourself how much untapped revenue it represents? If you haven’t, you should! In my experience with clients, I find their client portfolio looks like a slice of Swiss cheese. There are unnecessary holes in their portfolio where they leave revenue on the table and themselves unnecessarily vulnerable to the competition.
Salespeople are pushed to hunt for new accounts, but who is tasked with going back to the existing clients with a conquering accounts strategy?
The first step in the development of your Conquering Accounts Strategy is to put together a Product Contrast Matrix as described below:
1. List of all of your products in the left-hand column
2. In the second column, identify who the competitors are for each product
3. In the third column, ask yourself who buys this product (market segments and the Decision Influencers within them)
4. In the fourth column, for each product, ask yourself the following question:
If they are buying this product, what other products of ours should be of interest?
(If the hardware supplier had asked themselves that question, they would have identified opportunities on both sides of the screw.)
5. In the fifth column, explain why the other products should be of interest by asking this question:
What is the synergy between the product they are currently buying and the related ones?
6. In the sixth column, list the competitors for the other product(s).
Once completed, contrast the data in this tool with your client portfolio. You will quickly be able to see opportunities and vulnerabilities which you can resolve by conquering the account.
Assign each account to a salesperson to develop a conquering accounts strategy and develop a timeline for execution of the strategy.
Your conquering accounts strategy allows you to play both offense and defense against your competitors. You drive revenue and keep them out of your accounts. Using Sales Differentiation strategy to conquer accounts leads to explosive, profitable growth.
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AUTHOR: LEE B. SALZ
Lee B. Salz is a leading sales management strategist specializing in helping companies build scalable, high-performance sales organizations through hiring the right salespeople, effectively onboarding them, and aligning their sales activities with business objectives through process, metrics and compensation. He is the Founder and CEO of Sales Architects, Business Expert Webinars and The Revenue Accelerator. Lee has authored several books including award-winning, best-seller “Hire Right, Higher Profits.” He is a results-driven sales management consultant and a passionate, dynamic speaker . Lee can be reached at lsalz@SalesArchitects.net or 763.416.4321.