This week I enjoyed talking with a group of sales leaders as we prepared for a Value Alignment Workshop. When we asked the group of sales managers about the challenges they faced, the overwhelming response was, “We struggle with getting our reps to generate net-new business.”
Net-new business is the lifeblood of a business and the energizing force behind a sales team. Without net-new, the sales team becomes order takers. Over time, the team becomes rusty and complacent.
What Is Net-New Business?
I define net-new business as “any new sources of revenue”. New revenue can come from two areas:
- New logos
- New categories of products, services, or solutions sold to current clients
There are only three sources of net-new business:
- Strategic Prospecting to build a relationship funnel with buyers that are not currently looking
- Digital Marketing to engage buyers who are actively looking online
- Cross-Selling current customers who could benefit from additional products and services
Today, let’s focus on #3: earning more business from your current clients. How do you do this? You must earn the right. (more…)
Every (smart) business and sales professional wants to sell more to their current clients.
In my favorite marketing book, Getting Everything You Can From All You’ve Got, Jay Abraham shares the geometric principle of business growth. He says there are only three ways to grow a business.
- Get more customers
- Sell more things to current customers
- Increase the frequency of purchase
The problem is that most businesses only focus on #1. When it comes to #2 and #3, cross selling to current clients usually gets lip service, a page buried on the website, and maybe a specialist. Unfortunately, that’s where the gold lies.
If you only do #1, focusing all your effort on new logos, your business will grow linearly. From a sales perspective, 15% growth requires 15% more new customers. It’s important work and hard work, but 15% growth won’t get anyone too excited — especially if you had to discount products to convince new customers to buy into your business.
The profitable and dramatic growth happens inside your current customer base by cross-selling additional products and services. This is especially true in mature industries where profit margins on the core offering are dropping. In this scenario, the question we should be asking is, “How can I sell more things to current clients where I have a trusted relationship?” (more…)
As the manager of a sales team what is the biggest thing you can do to drive success? The answer may be to build a culture of success. Why? You can only be physically present with the members of your team for a small amount of time. The culture you create is always present.
Create a great culture is like a farmer nurturing the soil for a successful crop. Without proper cultivation, fertilizer, and watering, plants will struggle to grow. Create good soil and plants will thrive.
“Culture isn’t just one aspect of the game, it is the game.”
– Louis V. Gerstner, Jr., Former CEO of IBM
Here are a few thoughts on enhancing your sales culture: (more…)
Of all the things your dealership could do in 2019 to grow sales, what could move the needle more than anything else?
In the book Extreme Ownership, Jocko Willink tells a story that rings true in our industry. The CEO of a pharmaceutical company had all kinds of new initiatives including: (more…)