Making the first sale to a customer is just the beginning of your business relationship with them. This three-step series shows you how to use this ‘platform’ to grow sales (after that first sale), with medium and large sized companies.

Step 1 - Understand how your customer buys
In mid-2006 after a few months of ‘pursuit’, I met with the Category Procurement Manager of a large state-based government organisation. Their total number of employees was 17,000. I wanted to understand their buying process better and assess opportunities for growing our share of business from this customer. The Procurement Manager explained that relevant employees did not need multiple quotations for orders valued less than $30,000! Furthermore, the products we sold were not going to be on their priority list for at least the next few years. He said that we were welcome to go ahead and contact the relevant people and sell directly to them. So we did!

I dedicated one sales person to call all 45 of our contacts within the organisation on a cyclical basis to generate repeat business as well as create referrals. Within one year, we grew sales from that organisation by 200%.

There are factors that contribute to the way your customers buy. Understanding these better means you will be able to sell more! The four main ones are:

Buying units
Think of a business as a mosaic made up of many interrelated parts, each with its individual needs. Explore as much as you can about specific positions, departments or business units within your customer’s company.

Buying frequency
Each buying unit can have different needs through the year or if you have longer sales cycles, over a few years. Find out how often they need your products and services.

Buying policy
Some organisations have clearly defined buying policies whereas others don’t. Subtly ask whether people actually follow the process. Selling to people within companies that have a centralised process, differs greatly from selling to those where individuals are empowered to make decisions for themselves or their business unit. If there are agreements in place, ensure that you know when they are due for renewal and who will be responsible for them.

Competitive forces
Unless you are selling a new invention, it is likely that your customer also buys products or services you sell, from your competitors. Find out who they are, how they got there and how satisfied your customer is with them. As you understand each of these factors, you will have more clarity about the next logical step(s) to take with the company.

In Step 2 of this series, we will look at how to identify ‘Incremental revenue opportunities’ within buying units.

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Like many sales people or business owners, you too might feel like you can’t control your sales results. Agreed. But there is no denying that you have 100% control over your sales activity.

If you want to build sales momentum, you need to start by increasing your sales activity. Here are four essential areas to focus on:

Target database: This list must include those companies or consumer groups from whom you are going to be generating leads. It is important to spend time identifying these groups. They may be specific industries, local companies, inactive customers... the list could go on. Buy or build these lists and ensure they are easily accessible.

Leads: These are companies or consumers who have an interest in your product or service but have not yet been qualified as genuine prospects. It is essential to track this data and critical to nurture those who did not convert in to prospects at the first interaction. Take a look at these good practices to nurture leads.

Prospects: These are the companies or consumers who meet your M.A.N qualification criteria:

1. They must have the Money to afford your product or service.
2. You must be talking to people who have the Authority to make a decision or at least have a strong influence on it.
3. They must acknowledge the Need for your product or service.

Customers: They are a great source of new business. You must actively seek opportunities for new buyers, new products, repeat or renewals and referrals.

In Part 2, we will look at the types of sales activities that will help you build this momentum. For now, remember you’ve got to give more sales activity to get more sales results.

Here's to your success!

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Last week, we set the foundation for this three part series, based on the sales principle ‘Buying = Trusting the seller’.

I wrote about how inactive customers are very important sales prospects, because they are more likely to buy from you again over someone they have not bought from before. That led to:

Strategy #1: Sell them more of the products and services that they bought in the past.

This week let’s look at:

Strategy #2: Sell them products and services that they have not bought from you in the past.

In 2002, I worked for an I.T solutions provider and managed a relationship with a medium-sized company in the healthcare industry. They had spent $60,000 with us in the past, so when they decided to buy a new E.R.P solution, they gave us the opportunity to implement it. Over the next 24 months, they spent $3,000,000 with us. Yes, that's three million dollars!

Here is a simple process that you can use to identify new opportunities:

Step 1: List the names of your top 50 customers (by spend) in the last 12 months, in a column. For medium and large companies, you can break this into departments and even locations.

Step 2: List your products and services in a row across the top of these columns.

Step 3: Enter the sales amounts against each company's name, under the relevant product or service they bought.

Step 4: Highlight cells which are empty or have a relatively low value in sales.

You now have a list of potential prospects who need to be contacted to further assess needs. The focus must be on the customer’s needs and on adding value, not on pushing your product.

Value and prioritise relationship building with inactive customers. This will enable you to discover un-met needs and provide them with products and services that they have not bought in the past, because they trust you.

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Would you eat at a restaurant, if you knew that it was recently in the news for a case of food poisoning? Would you buy products online, if you knew that your credit card details were at risk? Would you buy a car, if you knew that it had serious mechanical defects?

I am certain your answer was “No” each time. So let’s look at this simple sales formula: Buying = Trusting the seller And today’s customers are characterised by these three facts:

1. They are short of time
2. They are short of trust; and
3. They are short of attention

So, if ‘Buying = Trusting the seller’, who are your past customers most likely to buy from again? You. This is assuming that their last experience with you met or exceeded their expectations. Often however, I see businesses pursuing new customers, whist ignoring this rich source of new leads. Don’t make this mistake!

Here is one of three strategies you can use with inactive customers immediately: Strategy #1: Sell them more of the products and services that they bought in the past You could generate new business through:

• Replacing expired products (equipment)
• Renewing quantities (stock levels) and contracts
• Updating products (websites and marketing collateral)
• Identifying new buyers and departments within the organisation
• Identifying cyclical opportunities - quarterly, annual or three-yearly needs
• Identifying replacements for contacts who leave the organisation and building on the existing foundation

In 2006, whilst working with another company, I noticed that one of our customers had spent over $100,000 each year for a couple of years and then didn’t spend anything for the next three years. We made it a priority to contact them and other inactive clients and were able to rekindle a relationship, that generated $150,000 over the next twelve months. If you treat inactive customers as you would new prospects, you will tap into a database of buyers who already trust you and are far more likely to buy from you again. I’d love to hear your comments and feedback. Click the link below to save or share this article.