But the relationship between the Business and its Customers is the
fundamental link in a system in which the Business and its Customers
are the only components. Businesses that network more successfully
with their customers win those customers from businesses that do not
network as successfully.
Misconceptions About Sales Channels
Here are three very common misconceptions we have observed in
business-to-business sales channels over the past 35 years.
Misconception 1. Sales "Owns" The Customers
This belief is often consciously espoused, and backed by virtually
every manager up to and including the CEO. It is a direct
consequence of functionally differentiated hierarchical
organizations. It is the command and control approach to selling.
The Reality
But it doesn't stand up to the most rudimentary critical analysis.
The business owns the customer. That ownership cannot be handed
off to any department in the business, or to any independent sales
channels serving the business and its customers.
Misconception 2. Sales People are Portable
Many people throughout the hierarchy often believe selling
can be done by any well-trained sales person. This belief is another
direct consequence of functionally differentiated hierarchical
organizations. Sales is a functional department, separate and
distinct from all other functional departments in the hierarchy.
The Reality
But that doesn't stand up to critical analysis, either. In the
business-to-business world, customers buy from people they like.
Personal relationships between the sales person and the customers
create that sense of liking. Every business with a superior product
or service has lost some sales to competitors with inferior products.
A large share of those lost sales were won by people those customers
liked better than the people selling the superior products.
It takes time to develop the relationships needed to sell most
effectively. Reassigning territories or product lines or replacing
sales people means beginning from scratch to build new relationships.
The most effective sales people we have worked with have 15 or more
years in the same territory. They are members of a community of
customers. They are not portable without a significant integration
period in the new community.
Misconception 3. My Job is to Get Promoted
Far too many sales people we meet believe they have a responsibility
to themselves, and to their employers, to get promoted. These sales
people are not likely to stress relationship-building because they
expect to be in a better job soon. Many companies actually foster this
kind of behavior, believing someone with one eye on a better job will
put in more effort than someone who believes his or her career is to
continue selling.
The Reality
You know the drill by now. That can't stand up to the most simple
scrutiny. Business-to-business selling is a profession, conducted
by people in the customers' facilities, not in the company's offices.
True sales professionals expect to be selling decades from now,
just like other professionals. Hopefully, your heart surgeon will not
have one eye on a higher ranking job with an HMO, and the captain
of your next airline flight will not have one eye on a management
job with the airline company.
Replacing Those Misconceptions
Some wise person once said that every problem is an opportunity in
disguise. This is no exception. Your competitors also harbor these
misconceptions about their sales organizations. If you can begin to
replace the misconceptions with more realistic beliefs, you will
create a competitive advantage you can take to the bank.
Replace the FUNCTION of Selling with a SYSTEM of Selling
We train and coach clients to replace the belief that the sales
department owns the customers with the belief that the business
owns the customers. The business is far more complex than the
sales department, so we help clients develop and operate systems
that link all the stakeholders to work together constructively.
A system or network of people representing all the stakeholders is
not normal in a hierarchical organization. It is highly unlikely to
develop in hierarchies where individual responsibility is the norm.
Outside intervention and a focused internal effort are needed to
develop such a system and to make it work.
Developing a SYSTEM of Selling, and Making It Work
That's where we come in. We have developed a program
to do just that. In fact the system we help clients develop has 7
smaller systems nested inside.
Follow this link to download a presentation on this topic.
Seeing Businesses as Systems
Here is a brief introduction to the 7 systems in our SYSTEM of
Selling.
The Supply Chain Networks
-
Supplier: A complex network within the business, crossing
functional boundaries and linking everyone who will affect or be
affected by the success of the business.
-
Sales Channel: A less complex network including everyone
involved in trading the Supplier's products and services for
the Customer's money.
-
Customer: A highly complex network including everyone in
the customer companies who affects or will be affected by
decisions to purchase products and services similar to those
produced by the Supplier's business.
The Interconnect Networks
-
Sales Administration: This network connects members of the
Supplier Network with members of the Sales Network. Something
similar to this network is typically in place, but operating
more like a command and control hierarchy than as an
interdependent network of people with an enabling, overarching
purpose.
-
Sales Community: This is complex of local networks in
which sales people and customers form small communities,
usually geographically defined. This network is normally in
place in some form, but not well recognized or understood by the
people in the Supplier's business.
-
Business Development: This network connects the myriad
of people in the Supplier Network with the myriad of people in
the Customer Network. It is normally the missing link. Even
Suppliers who do a lot of customer research place too much
emphasis on the data, and not enough on linking the Supplier and
Customer Networks interactively and constructively.
The Coordination Network
This is a relatively small network linking members of all three
of the Supply Chain Networks; Suppliers, Sales Channels, and
Customers. It's purpose is to coordinate the operation and
continuing development other six networks.
Our Role
This network of seven networks often seems too complex for
hierarchically trained minds to comprehend, let alone attempt to
set up and operate. But it's what we do for a living. We help
clients get disparate people to work together interdependently.
It's the core value in our team-building programs.
We help clients design these networks, select the people to get
them started, train and coach the various teams, workgroups and
management to develop and operate these networks. People learn
to do their own situation assessments, set their own goals,
develop their own plans to achieve those goals, and execute
those plans with a passion not possible in strictly
hierarchical organizations.
Our role is to provide training and coaching services to help
your business to create customers by enabling and empowering
these 7 networks better than your best competitors do. Customers
will want to buy your products and services from your business,
rather than from your competitors. Our role is to help your
business replace the outdated concepts of "selling"
with the far more productive concepts of "buying".
More Information
For more information on our Sales Channel Development Programs,
please download our introductory presentation:
Primary Business Networks (PDF 1 MB)
If you would like us to narrate the presentation over the phone,
please email:
Hal Stitt
. Or call Hal Stitt at: 541-344-3662