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Focus on good business

Knowing where to concentrate is the problem most companies may face

By Tom Reilly -- Industrial Distribution, 7/1/2005

Over half the sales people I train cannot answer this fundamental sales question: What is good business for our company?

These salespeople do not understand where they should be investing their sales time. When pressed for an answer, many will say they want every order, not every opportunity—meaning that they want any business they can acquire. This lack of focus is the primal sales problem. Focus is positive tunnel vision: It is investing your time in areas that will give you the return you are looking for—provided you know the return you are looking for.

This lack of focus is a top-down problem; it does not originate in the field. If salespeople cannot answer this fundamental effectiveness question about good business for their companies, it's generally because management has not explained it to them. Why not? It could be that management hasn't invested much effort or time in strategic focus.

Another possibility is that management may suffer from "market-share mania." This debilitating condition presupposes that a bigger slice of the pie is the right medication for all business ailments. Closely related is an equally debilitating condition called "pipeline-itis." This is the excessive preoccupation with the acquisition of new business to the degree that companies overlook and ignore their most viable growth sources—existing customers. When asked why there is such an obsession with new customer acquisition, those suffering from this condition are most likely to respond with, "Don't you get it? We are so lousy at holding on to customers that we need a steady stream of prospects."

So, what's a salesperson to do? Ask to spend time with your sales coach (aka sales manager) and get answers to these questions, and don't let your manager weasel out of giving you substantive feedback. Any manager who dismisses this drill as too fundamental has bigger problems than the lack of strategic focus. Effective managers (coaches) never miss an opportunity to remind the troops of the mission.

  • What is good business for our company?
  • What kind of business do we want to pursue?
  • What kind of business do we want to avoid?
  • What kind of business will we accept if it comes our way?
  • Where do we contribute the most value to our customers?
  • Where do we extract the most value from our customers?

At some point in this discussion, explore the "why," not just the "where" and the "who." Ask your sales coach, "Why do we want to pursue this type of business?" The answer to this question reflects your management's strategic insight into the market. The answer to the "why" question should direct you to the mission.

To close a sale, it's important to know how to sell. To create a meaningful and successful sales career with your company, it's mandatory that you understand the type of business upon which the company wants you to build this success.


Author Information
Tom Reilly is a professional speaker and author of Value Added Selling (2002, McGraw-Hill). Contact Tom by visiting his Web site, www.tomreillytraining.com.

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