Easy sales isn't so easy
By : Jeffrey Gitomer
Jeffrey, my question is
I'm looking for a sales graph that an associate of mine told me about. It has four parts:
selling current products to current customers; and
selling new products to current customers;
selling current products to new customers;
selling new products to new customers.
Supposedly, the theory goes (and the graph shows) that the best return is in the first one current products to current customers. Do you have any materials that show such a graph, or support the theory that selling current products (that they aren't using) to current customers gives the best return? I appreciate your input (and love your column).
Sincerely,
Sales genius in Pittsburgh
Dear Sales genius,
I have never seen the graph.
Your graph has four scenarios, but as with most statistical graphs, it's too generic to mean anything and would vary from industry to industry, and between product and service businesses. This graph also assumes that all your present customers love you. Big assumption.
If I were to make the graph I would combine categories one and two:
selling current products to current customers and
selling new products to current customers.
The idea of selling is to build your business through your present base of customers. You could argue into the night about current or new. I believe "new" has the slight edge, because most of us associate "new" with "better."
Do you want the new computer or the existing one? The new version of the software, or the existing one? Most people would take new.
And as for No. 3 and No. 4, let's combine them as well (selling current and new products to new customers). And I would add another category "selling new or current products to new customers referred by current customers."
We now have three categories in Gitomer's "easiest to sell" graph:
selling current and new products to current customers;
selling current and new products to unreferred new customers; and
selling current and new products to new customers referred by current customers.
Now let's put them in order of (obvious) best return for sales hour invested:
selling current and new products to current customers (assuming you have happy customers);
selling current and new products to new customers referred by current customers (assuming you can earn referrals); and
selling current and new products to unreferred new customers.
The "new and unreferred" customer is the hardest, most frustrating, lowest percentage sale, and often the biggest waste of time in a salesperson's day. This involves the "prospecting" element of sales at its least productive level the cold call, the unsolicited letter, direct mail, and the like.
Why do salespeople use category No. 3 the worst category as a main source of selling? Here are the six big reasons:
Their boss said they had to.
They think it will work, because someone trained them to "do it this way."
They think it will work in spite of what anyone said.
In their mind, they think they have no other choice.
They have little or no relationship with existing customers.
They are unwilling to do the hard work to position themselves as a resource for answers or as a leader, and become known to their prospects (new customers) before they make the call.
There is no easiest place to make a sale there are places where the percentages favor you, but no sale is easy. Every salesperson's dream is to make the most sales, with the least hassles, in the shortest time. This is accomplished by establishing a base of customers who love you and love to do business with you. Sounds simple, but it isn't easy.
Hope that helps.
Very truly yours,
Jeffrey Gitomer
Salesman
There are no sales graphs, sales systems or "best way to sell" that can't be proven wrong. There are better ways than others, there are smarter ways than others, there are even easier ways than others. The answer for you is learn several "ways" and "systems," select what you feel fits your personality and adapt what is comfortable (and real).
Jeffrey Gitomer is the author of "The Sales Bible," and "Customer Satisfaction is Worthless, Customer Loyalty is Priceless." President of North Carolina-based Buy Gitomer, he gives seminars, runs annual sales meetings, and conducts training programs on selling and customer service. He can be emailed at salesman@gitomer.co (mailto:salesman@gitomer.co)m.
