That was the question the SVP of Sales & Marketing of a specialty chemicals distributor was asking himself.
The distributor had solidly grown its existing business in 2 core markets with a small team of experienced sales reps. However, further growth required the addition of new products to the line card, entry into adjacent segments, and hiring of new sales personnel. The personnel growth also required specialized sales team members including new reps, an inside sales team, and a business development team. Faced with the task of growing quickly amid multiple challenges, the SVP sought Growth Arc's help to develop options for him.
The approach of relying on experienced, long-tenured reps in core markets has its advantages and disadvantages. On the one hand, using people with proven selling records and deep industry and product knowledge can be immensely beneficial. These reps have honed their skills over time and have a track record of success, which can bring in consistent sales and strengthen customer relationships. Additionally, their extensive knowledge allows them to effectively address customer inquiries and provide tailored solutions. On the other hand, this approach can create a comfort zone within the company, leading to a lack of effort in developing robust sales systems and processes. Without proper systems in place, there may be inconsistencies in sales strategies and difficulties in replicating success across different markets. Moreover, as these long-tenured reps retire or leave the company, there may be a lack of succession planning, potentially resulting in a loss of valuable expertise and relationships. Therefore, while relying on experienced reps has undeniable advantages, it would be important for the company to strike a balance and invest in developing strong sales systems and processes to ensure long-term success.
The SVP noticed that most of the new representative training in the company relied heavily on observation of more experienced representatives. While this method of learning was important, it also resulted in slow progress. The business itself had a reputation for being one that took a long time to fully understand. While a representative might quickly grasp the line card, it took significantly more time to truly comprehend how to effectively solve customer problems using the available product slate. Additionally, the SVP identified another issue - business developers had the additional responsibility of educating the rest of the organization about new customer segments and emerging product needs. This was a completely new problem that further complicated the situation, but was essential for growth.
In the past, customers may have been unaware of their options, and simply making them aware was the main challenge. Today's customers are more informed and have a myriad of options to choose from, making value selling approaches less helpful. With today’s digital tools many customers are already well-informed about their choices. In fact, research shows that they are commonly overloaded with information and this information overload can hinder rather than enable final decision[1]. They either dismiss a company's solution hastily or find it difficult to choose from the numerous possibilities available. Often it’s indecision rather than a competitor that is the enemy of a successful close[2]. Rather than information about their options, today’s customers instead report needing help framing their decisions and identifying blind-spots in their research.
The SVP recognized that the company's growth ambitions required a different approach that also considered the changing nature of customer behavior.
To address his challenges, the solution chosen by the SVP involves implementing a consultative selling approach combined with a written sales playbook. The consultative approach focuses on understanding the customer's concerns and helping them frame their thinking to drive them to a decision. This is particularly useful in today's selling process where customers are often well-informed but overwhelmed by the various options available to them. By assisting customers in framing their decision-making process and identifying blind spots, sales representatives are more likely to gain an advantage and move the sales opportunity forward.
Additionally, the use of a written playbook is a crucial tool in this solution. This playbook serves to document common situations and guide sales representatives, making it easier for knowledge to be transferred within the organization. Whether it is experienced reps passing on their knowledge to new ones or business developers sharing insights with the entire sales force, having written guides enhances the onboarding process and allows representatives to close deals more rapidly.
Growth Arc Advisors provided the SVP with a solid foundation by implementing a core segment playbook and a learning program for the entire sales team. This initiative was met with positive feedback from company leadership and the sales team. As a result, the SVP has chosen to make this system the basis for the company's selling approach and is establishing practices and leadership behaviors that will ensure the system's longevity.