In my post 5 ways to know you're stuck in neutral I spoke about one of my most common encounters when dealing with SMBs (small and medium sized businesses): The company who's stuck in the word-of-mouth rut...relying on the good of others to bring them business.
The problems with wholly relying on word-of-mouth- You can't project what new business you anticipate when you're not the one prospecting.
- You're relying on others, who aren't intimately involved with your business, to sell your business
- Word of mouth has very limited reach: If you're looking to expand into a new geographic area, market or industry it's near impossible to extend your reach relying on existing customers.
- If you're not pro-actively marketing yourself, it's just as easy for people to spread negative word-of-mouth about your company
- A client is likely only going to refer you when they hear someone is looking.
- Overall, word-of-mouth is a passive strategy.
So, what to think about before selling
Who is your target market? Be thoughtful. Don't only think demographics and
geographics, make sure you think about
psychographics and
behaviors (For examples of these market
segmentations, check out this
netMBA article). Be specific. The mistake many companies make is being too broad with their target market. There seems to be a general fear of leaving any one segment out. But the problems with being vague are that it's more expensive to sell & market to a broad audience, it creates confusion for your sales people and it costs you more money working on businesses that are not a good fit.
What are their needs, wants and desires. Good sales is about being relevant and meaningful. Understanding the basic needs of your target market is important. Understanding the specific needs of a potential client is imperative.
Know your competition. How do they market themselves? What is their market share? What is their growth strategy? What are their strengths and weaknesses? Intimately understanding how they position themselves is critical to knowing how you can stand out and differentiate your business.
Know what makes you remarkable. The vast majority of prospects you connect with will either be entirely happy with their existing supplier or be open to speaking with more than just your company. To thrive, you have to stand out. Know what makes you different, better and meaningful.
Have sales support ready. There's nothing worse than lighting a fire with a potential prospect who says, "I don't have anything right now, but I like what I hear. Please send me some information"...and you have nothing to send them. Make sure you have a website and brochures ready for when you make your first call.
4 easy ways to take control of selling your company
1. Referral Selling: Ask your clients to recommend other companies that could benefit from your products/services. Ideally you want your client to set up an introduction as opposed to simply providing you with a list of names. Ask your customer why they think this business could be a good fit. You'll get more insight on the prospect's needs and their behaviors from your client than a website or Google search.
2. Lapsed Customers: Go back to the list of customers who haven't worked with you in the last year or two. Contact them and find out why you haven't heard from them. It could be simply you've been out of sight, out of mind...or perhaps you messed up a past project. The key is to understand why and what you need to do about it to get your client back.
3. Upsell Existing Customers: Simply put, 1. It costs more to acquire a new customer than it does to grow an existing customer, 2. You should know your customer's business inside-out as well as their needs, 3. You client knows you and what you're capable of. This magical formula makes upselling an existing customer so palatable.
4. Supplier Partnerships: Your suppliers can be your best asset. Tell them you're looking to grow your business and ask them for referrals. You'd be surprised how hard your suppliers will work for you.
What tactics would you add?
Read more
Posts
