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Complex Sales
By Thomas
Fee Many organizations have migrated into complex sales by virtue of the fact that
they have entered new markets, have new competitors or because of the
impact of technology on their business. Complex
sales are different from non-complex sales. Characteristics
of the Complex Sale Non-complex sales may contain one or a few of these elements,
but they are all present in
a complex sale: • Long sales cycle • Significant decision to be made by the buying
entity in terms of dollars or strategic direction • Lots of resources invested prior to making a decision
on the part of both seller and buyer • Multi level contact within the prospect organization
necessary to make a sale • Range of competitive strategies from which the
vendor may choose to engage competitors • Buying decisions that have significant impact
on the customer's business • Complex issues and alternative solutions, which
may be available through sources that are not direct competitors • Political dynamics which often supersede product
and business issues The goods and services in such a sale may be unsophisticated.
Complexity is a function of the sales environment. For instance, selling
socks over the counter may be a non-complex sale. Selling socks to the
U S Military is an altogether different situation. Challenges
of Complex Sales In complex sales, vendors must acquire deeper levels of
understanding about the customer's business and organization in order
to be successful. This is one of the reasons for the longer sales cycle. The first challenge of a complex sale is to know enough
about the (potential) customer's business to determine whether the selling
organization's services, products and approach to doing business are compatible
with those of the buying entity. The solution that the seller provides
will only be as good as their ability to implement. One aspect of achieving
this level of understanding is for the vendor to know the characteristics
of their own most successful customer relationships. Beyond just understanding the customer's business, there
must be a demonstration of understanding of the inner workings of the
customer organization. The vendor with a viable solution, who is able
to analyze the political structure and establish alignment with those
who have the greatest influence on the decision, is usually the winner.
Complex Sales continued
Thirdly, there is a competitive dimension in all complex
sales. The seller must understand what alternatives are being considered.
These include internal (to the prospect organization), external competitors
and other possible alternatives that are not directly competitive such
as outsourcing. The service provider must identify the strategies that
are being employed to thwart the success of their efforts. Once they have identified what these competitive
strategies are, the seller must then choose the most effective strategy
to overcome each alternative, while simultaneously demonstrating that
they are the most attractive choice for the customer. Preparing
for a Complex Sale The preparation necessary to conduct a complex sales campaign
is extraordinary. There are no guarantees that having the most resources
will provide the competitive edge. The successful complex sale is much
more the result of choosing the right strategy to win. The sales team must communicate effectively and efficiently.
They must record the achievement of milestones during the sale and agree
on their objectives. Nothing, including experience, will replace good
process when managing a complex sale. The sales plan must map directly to the customer's definition
of success. This implies that the seller understands that definition.
In addition to a business strategy, the sales campaign must also emphasize
the personal benefits to those allies in the prospect organization who
share the risk with the service provider of the success or failure of
their solution. Addressing the personal agendas of key buying influences
is a must in complex sales. Conclusions In complex sales, when there are a lot of resources on the
line, sellers must learn to think in terms of return on investment from
their sales time and resources. The investment in a complex sale is not
only direct, but because resources are limited in every organization,
it must also be measured in terms of what else could have been done if
the campaign is not successful. This implies that the investment of resources
in complex sales should be made in those accounts that represent the best
opportunity for winning. About the Author: Thomas
Fee is the founder of Performance Management Consultants™.
Performance Management Consultants™ is dedicated to providing the next
generation of professional development enhanced by technology and coaching
to enable users to change their behavior resulting in improved performance. They have developed numerous programs and processes to enhance the skills, behaviors and activities of managers, sales, client service and pre-sales (SE) professionals. Performance Management Consultant’s™ programs address the specific challenges faced by those working in the areas of business practice known as Customer Relationship Management and Complex Sales. |
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