In our last post of this series, we will focus on elements of sales strategy. Specifically, we will address:
Customer and Opportunity Segmentation
When customers ask me what approach they should take to customer segmentation, I am reminded of Jalal Soroosh, Accounting Professor at Loyola University in Maryland. Whenever I asked Jalal a question (which was very often), he would start his answer by saying “It depends.” At the time, I often times found myself frustrated by that reply, but as I reflect on what he was teaching me, the approach applies very much to sales strategy and customer segmentation, as well. What segmentation approach an organization takes very much depends on the goals of the firm. So, it all comes back to intent.
For example, if the firm’s goals are to be a market leader, and the growth plan is to broadly acquire new clients who can purchase any of the firm’s offerings, that will drive one approach. If, on the other hand, the firm’s goals are to lead by building long term relationships where clients purchase multiple and/or specific firm offerings, the approach may be very different (as would the needed roles and compensation programs). Assuming that there is an overarching strategy that aligns with the sales approach, here are some things to consider with regards to customer segmentation:
(I should also highlight the critical importance of connecting this, and other parts of the sales transformation, to the organization’s strategic marketing plan. Too many times I have seen muted business impact because the sales and marketing approaches are not aligned).
Answers to these questions will help to clarify where the biggest and most profitable opportunities lie.
Resource Mix
A firm’s sales resource mix would flow from the decisions made around the following variables:
Options for building the sales force include:
While there may be other parts of the sales team, the above categories are most common.
The answer to the mix questions is, of course, “It depends,” so here are some things to consider that may help an organization make good decisions:
Territory Alignment
Much of how an organization designs sales territories is flushed out in what was addressed in our previous sections and will flow from the strategy and resource mix. A few additional things to consider:
My hope is that through this series, you gain insights not only into best approaches when building a high performing sales organization, but also what questions to ask in consideration of the organizational goals. Good selling on your path to a sustainable sales force transformation.