Seems silly really, of course they do, right? If it’s so silly and obvious then why is it that in every business we work with up 25% of their accounts are at best break even and at worst significantly loss making. Here’s another stark reality, when we talk one-to-one with Sales reps and ask them who their ideal customer is and why that customer would buy from their company, we never get more than 50% of the staff in agreement on one type of target. You wouldn’t need a management consulting firm to tell you that that’s shocking.
A question – “Why is there a scope on a rifle?”
Answer – “’Cause that’s where the bullet goes”
Correct. So why do so many businesses approach the market with a metaphorical “sawn-off-shot-gun”? The evidence suggests that business managers get tied up in the day to day grind, never really looking up to see if there is a different better way. If they do get a chance to look up they rarely get everyone engaged in the process and therefore the great idea never goes anywhere, a management consulting firm will be able to help out there.
Probably one of the top 5 reasons for poor effectiveness or productivity in a sales team is that the team is not going in the same direction, not consistently approaching high value prospects. Their efforts get diluted and therefor they are ineffective.
So what can you do about it?
Run off your report of customers – sort by sales value and Gross Margin. At the very least the top 20% – 30% of your customers by revenue and margin are your ideal target. Do a small bit of analysis, their sector, their size, who in their organisation is the main point of contact.
Once that is completed bring in your Sales team discuss the target prospect with them, help them understand the reason for your conclusion. Ask for their input. Get them all to understand this and let them loose on the marketplace and measure the results, you will be quite surprised with the outcome. If you are unable to this then maybe you need the help of a management consulting firm. Why not give us a call?