A while back I was consulting with a company that was looking for ways to grow its profit dollars, but really didn’t want to add salespeople.  They felt they had adequate coverage, and they didn’t feel there was ROI in adding people.  A quick look at their prospect database and profit/loss told me that they were probably correct in their thinking.

As I started going through their customer list, I noticed that their top customer was pretty profitable because they had held good margins, and also that the sales and profits generated from this single customer were greater than the sales and profits generated from the next four customers COMBINED.  Since I had the company owner, sales manager, and salesperson for this account in the room, I asked if they were selling this customer everything they could.  No, they responded, they had about half of the business that they could have, and their biggest competitor had the other half.  I asked what their plan was to pursue the rest of the business, and they explained that they didn’t want to go after the other half, because they didn’t want to “stir anything up,” they were happy with what they had.  I then asked if they thought their competitor felt the same way – and I watched three people turn white as a sheet.  It had never occurred to them that their competitor might be after THEIR half of the business.

I explained to them that, unless they knew their competitor had the same complacent stance that they did, this account should be considered in jeopardy.  I asked the salesperson how often he was in there.  He said that he was in weekly.  I then asked about the competitor’s salesman.  “He’s in there weekly, too.  Matter of fact, I see him sometimes,” was the response.  I told them that if their competitor’s salesman was making better use of his visits than the one at the table, they could be in trouble.

We then strategized a way to start going after the other half of the business.  Unfortunately, this story doesn’t have a happy ending.  We were too late.  As it turns out, the competitor had been selling the virtues of their products and of single-sourcing for about a year – and they got the deal a few weeks after my conversation.  My client’s salesman did get into the mix, but too far behind the competitor.  A short month after the initial meeting, my client was out – and hurting badly.

The moral of this story?  Simple.  Fear is bad.  My client hadn’t pursued the rest of the business because they were scared.  They were scared of the re-evaluation of their current business that might happen while they were pursuing the new business.  Paralyzed by this fear, they talked themselves into thinking that they were in a good situation and “happy.”  They weren’t.  They built their sales strategy around trying not to lose, rather than trying to win.

Their competitor wasn’t scared of being found wanting.  Nor was their competitor afraid of taking a risk for a big reward.  By taking that risk, they not only got the new business, they solidified their hold on the existing business (since their competitors no longer have a reason to be there all the time).  They deepened their relationships, and are making a LOT more money, since the increase in business can be covered by the same salesman with about the same investment in time.

If you hadn’t figured it out yet, the point is that the best defense is a good offense.  Don’t talk yourself into thinking that your competitors won’t go for your business – because they will.  Don’t get too comfortable with a partial share of a customer’s business – because you’ll lose it to someone who isn’t comfortable.  Here are some quick guidelines for selling to current customers:

1.    Have an agenda for each call, and use it to advance the relationship.
2.    Always have a customer in a sales funnel for additional products and services.
3.    Keep selling to them until you have 100% of the business you can service.
4.    Don’t be afraid of your customers reviewing your effectiveness.  They do anyway.  Wouldn’t you rather prompt it than have your competitor do so?
5.    Fix any problems before your customer discovers them.
6.    Never, ever, ever trust your competition.

Play not to lose, and you’re guaranteed to lose.  Play to win, and you’ll win more often than you lose.

THE HOT QUESTION:

Troy, I’m trying to roll out a new service line, and I’m having a tough time getting people to understand what it is so that I can get appointments to sell to them.  I use a personal commercial, but I seldom get to finish it before my prospect says they’re not interested.  Do you have any ideas?  B.L, San Diego, CA

B.L., it’s pretty simple.  If you can’t finish your personal commercial, there are only a few possible problems:  First, maybe it’s too long.  If you can’t get through your intro and a strong benefit statement in 15 seconds, shorten it.  Second, you may not be communicating a powerful enough benefit.  Instead of communicating what your product is, focus on what it does, and why someone would buy it.  Communicate that, and it should help.  Finally, you may be calling the wrong people.  Is it realistic to think that your prospects will, in fact, buy this product?  Work with those parameters, and your appointments should go up.  Good luck, and good selling!