Match Form of Selling to Customers Four Forms: –Order Taker: facilitates routine transactions for straight rebuys –Persuader/Sustainer: routine transactions plus moving new products –Motivator/Problem Solver: ad hoc matching of offering to customer problems –Relationship/Value Creator: sales team becomes integral part of customer’s team

Match Approach to TALC For visionaries: business development For pragmatists in bowling alley: business development, plus high level of routine service For pragmatists in tornado: move the product – persuader/sustainer For main street: varies by purpose

Reps vs. Direct Reps are good at: –Selling to their existing customers –Selling complementary products –Managing relationships Reps usually are not good at: –Prospecting –Service –Selling complexity Reps usually require some help for new products

Other key points on sales Role of missionary sales or field market development Compensation – reward the right behaviors Compensation – don’t be afraid to let sales people make more than the CEO! Analyze cost of customers – know how much “relationship” you can afford to support

Deciding on sales approach Compare “funnels”: e.g. a funnel for a new product, shown below. Prospects = 100, reached by ad 10% visit Web site 40% request demo in person 50% order Compare costs per sale vs. alternative funnel 50% require service 1

Other lessons from Lodish Initiate tiered commissions –higher % for new accounts -- at the outset. But how do you know what is appropriate? Don’t cap salespersons’ earnings Hire experience Don’t retain poor performers