From the River Heights Consulting Presentation
The Specialist Playbook
Sales Gurus say,” Selling to an existing customer costs five times less than selling to a new one.”
This piece of logic has driven many companies to expand their product offering. We find distributors crossing lines of trade. We find old line wire manufacturers selling complex computer cable. We find welding manufacturers moving into Robotics. The idea makes good sense. We already know the company; we already have a relationship; they know us and we know them. Everything is set to go. Then the results are lack luster.
The very same sales force – considered by our existing customers to be world class – drives the new product forward with such lack of velocity that important windows of opportunity are lost. Often the reason for this lies with the sales team itself. They pride themselves in being “the experts”. They understand the established product line in absolute detail. But, the new line stretches them. They compare their knowledge of new with old and feel inadequate. They find their long developed customer contacts are only on the periphery of the decision on the new products. And, they worry that conversations with new prospects will only demonstrate their ignorance.
Companies that target accounts effectively score better on the bottom line; new research says 47% more effectively. But lack of domain expertise in the existing ranks translates into wasted energy and lack of traction at critical targets. No fault of their own – but the existing guys lack the localized expertise to do the targeting.
Enter the Specialist – equal parts salesperson, marketer and resident domain expert – they provide the extra oomph to drive the business forward. Like all resources, they must be used properly and judiciously to get the right ROI bang for the buck.
The Specialist Playbook is designed to put the right resources in place – without piling costs on top of cost.