When you are prospecting, who do you target – an individual, a stable company or one that is in a state of flux?
In this Vlog, Grant explains that the biggest barrier to a sale, is often the status quo.
Imagine you’re selling kitchens.
There are two identical couples. One of them has been living in a house for 10 years – they don’t have a particularly nice kitchen.
The other one is moving into a new house that also doesn’t have a particularly nice kitchen. Which couple do you think it would be easier to sell to? The one that’s been living in their house for 10 years and isn’t moving, or the one that’s about to move into a brand new home?
Your instinct will probably tell you that it’s easier to sell to the second couple, but why?
The first couple have to commit the money and then put themselves through all the hassle and inconvenience of having workman in the house and no kitchen for a number of days. Whereas the second couple are already spending a load of money or moving home and they’re already inconvenienced because they’re in a state of flux.
In other words, while both couples may have the ability to buy, it’s easier for the second couple to change, because they’re already in a state of transition.
When prospecting, it’s very important to keep this in mind.
Often, what companies do is they look at the potential of the market place to buy their solutions. They’ll segment, their market by geographical location, turnover, number of staff, vertical market sector, and look at the companies most likely to buy from them.
The biggest barrier to a sale, however, is often the status quo. Even though a solution may look interesting, a company will often decide – at the very end – not to commit the money or put themselves through the hassle of all the change. Therefore, when prospecting, it’s not just enough to look at the ability of a company to buy from you, but also look at the likelihood of them changing.
For example, if a particular marketplace is going through lots of changes because of new legislation to do with regulation or compliance or new entrance into a marketplace, then the status quo is probably not acceptable anyway. If they’re already looking to do things differently, it’s easier to sell-in a solution.
Similarly, a company that might be going through a merger and acquisition, or alternatively, where someone new in post wants to make their mark is more likely to look at doing things differently. Of course, looking at who is most likely to buy from us is a very important qualifier, but you should also consider how easy it will be for a business to change. Those more likely to change, are more likely to do deals.
Absolutely Grant – all those fears of making a purchase – one of which is fear of change!!
Exactly Chris. Many thanks for your comments.