Want more revenue?…Be an “A” student

Posted: February 21, 2013 | Categories: Sales

Yesterday, I was talking to a client who wanted to increase his income growth rate.  He had been operating on the classic maxim, “If you want to earn more, increase the amount of time you spend in direct conversation with qualified prospects”.  This rule had served him well so far.  Now, he wanted more.

We took a close look at his activity and discovered he had been spending 80% of his selling time with “B” and “C” clients.  The Pareto Principle says that 80% of our revenue comes from 20% of our clients, yet he was spending 80% of his time with clients that generated only 20% of his revenue.  (Got that?  Let me know if I am going too fast.)  Once he made this discovery, he was determined to turn that ratio upside down.

1.  Identify the Barrier.  Dean admitted that the main reason he was spending so much time with “B’s” and “C’s” was because it was easier.  Selling to “A’s” takes more strategic planning, and it is more challenging.  (Have you ever lost a sale because you were afraid of losing it?)
2.  Plan.  He put together an “opportunity chart”.  This is a grid that matches up all the services and products you offer with your “A” clients in the lower coordinate.  The goal is to play “blackout” bingo.  Look at each “A” client and assess how many products and services they are using.  Then think about the client.  What is important to them?  What do you know about their situation?  What problems do they have that you could solve?
3.  Construct questions.  This is a common denominator of all top sales performers.  They plan well for their appointments by doing their homework and constructing great questions that are designed to uncover opportunities.  These aren’t “product-pushing” questions…they are discovery questions.
4.  Anticipate responses:  When you ask the questions you have laid out, what are some possible responses you anticipate?  How will you respond to them?

An Olympic athlete plans and prepares relentlessly.  So do all top achievers.  To increase our revenue, we need to

1. Identify our ratio of time spent with “A” and “B” clients
2. Commit to turning the ration in the right proportion
3. Develop a plan of action
4. Follow through!

Good selling.

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