Question

Compare and Contrast Various Selling Models

The purpose of this assignment is to compare and contrast two or more competing selling models. The basis for this paper will be The Challenger Sale (Dixon and Adamson) versus Strategic Selling (Miller & Heiman).

1. Provide an overview of both approaches. This overview should include the theoretical basis, practical application, and general steps or stages.
2. Take a position on which approach would be more effective for managing customer accounts that would be considered “Key Customers” or “Strategic Customers”. An example of a key or strategic account would be one where a the sale involves:
   1. A complex solution
   2. Multiple decision makers
   3. Significance in terms of revenue opportunity

Your arguments should provide rationale for your position and relate to specific outcomes (e.g., closing business, positioning as a business partner/consultant, long term relationship building, etc.)

3. Give a detailed example of how your approach would be applied to a sales opportunity (can be real or hypothetical) to achieve a very specific sales goal.

Answer 1

The Challenger Sales and Strategic sales Process:

1. The challenger sale: Focus on taking control of the customer conversation.

Steps and stages in the challenger sales process:

A. Perform thorough research of the prospect

B. Provide unique insights to the prospect.

C. Talk, how your offering will help in improving the prospect's business.

D. Tailoring the Unique Value Proposition, as per the prospects' requirements.

This model works well when a salesperson is trying to target and sell a high-end solution to a large client. Ideally in the B2B environment. Salesforce involved in hunting new accounts will get benefited by this sales process. This model works well for strategic accounts, and up-selling and cross-selling to Key accounts.

The best example would be a firm offering ERP based solutions and targeting other multi-national businesses. The implementation and deployment of ERP based solutions involve high technical expertise. And the salesforce has to be an expert in the product and service they are pitching. This calls for technical expertise. The salesperson should be a techno-commercial guy, to effectively build a sales pitch, with technical inputs and explain how will this solution bring change in the business that he is pitching for.

This approach also focuses on a variation in the sales pitch when meeting multiple stakeholders. In any organization, we will find broadly 2 categories of decision-makers: 1. Final Decision-makers, 2. Influencers.

Final decision-makers are CXO, Finance or purchase depts. Who has the authority on the financial aspects. They could either be directly involved in the sales meetings or their decision is influenced by an influencer. An influencer could be anyone from the management, a Mid-senior employee, Senior employee, VP, Director, Partner, etc, who has the ability to make decisions for the organization and who can influence the management by advising and identifying the right solution for the organization The opportunity of making high yield revenue is purely based on the negotiation between the seller and buyer, that's where the challenger sales method is potent, as a salesperson will take the control over the conversation, making him stay on top of everything, once you have stepped on top, the prospect will follow you everywhere including the price you have quoted!

The outcome of this process - Winning a client, successfully closing the deal. Focusing oin the Service delivery and customer support will help build long-lasting client relationships thereby increasing customer stickiness.

2. Strategy Process: This process focuses on building a relationship and the ability of the salesperson in identifying the prospect until closing the order.

Steps and stages:

A. Building a strategic action plan for managing key accounts.

B. Building a profitable client base

C. Retain the client and make a competitive position

D. Build great client relationship, that helps in up-sell and cross-sell opportunities.

A strategic process is a proven process for most of the business that involves, selling products and services. It has a great approach towards acquiring and retaining clients for a longer time. Just not retaining but building long-lasting relationships is a prime focus. By retaining the client you have a fair chance of up-sell or cross-sell and thereby renewing existing contracts. With improved customer service and dedicated customer service teams, this is achievable. The process starts with acquiring a strategic client, thereby converting them to a key-client. This model works well for both acquiring and retaining accounts.

The best example of a business using this model could be SAAS based platforms, which sell through websites, inside sales and field sales. Similar to the challenger process, a salesperson has to go through multiple decision-makers to close a deal, Also, strategic sales meathod defines a salesperson to have multiple contacts or touch points in a organization,. This helps a sales person by not getting stuck at a specific point of contact in a organization, which can be a potential prospect.A salesperson has to carefully make his/her pitch to convince multiple stakeholders. This model works well in a business where the revenue value of each account is less. And business is judged by the volume of acquisition.

The outcome - Acquire fresh accounts, retain them and build long-lasting relationships and thereby scale the revenue.