Sales Training Tip: Customer Penetration and Upselling |
by Victor Antonio
If I asked any company, small business or entrepreneur to tell me who their largest customer or account is, I’m sure they’d have no problem coming up with a name. But if I asked them what percentage of the account’s market share do you own, most would struggle to give me a definitive answer.
It would be safe to say, that more often then not, we don’t own 100% of the market share with our biggest account. Said another way, we’re not the only one selling into that account. I will make the assumption that your competitors are siphoning off their fair share of the business. Many companies refuse, or make it a policy, not to give 100% of their business to one vendor or supplier. The simply don’t want all their eggs in one supplier basket.
The question which is key to our sales growth is how do we maximize our sales percentage within that account? If we can’t have 100% market share in the account, what is the most we can expect to obtain?
The first step toward answering this question begins by redoubling our efforts and focus on that specific account to make sure that we are achieving penetration at all levels. This will require going beyond the basic sales presentation or product pitches and asking more involved questions about the account. General questions to your client may go along these lines:
Review what the client or account has purchased from you in the past. Review your product offering and select what other products might be suitable Then develop a list of related questions to see if there is a need or can you create a need.
If there is a need, then all you have to do is qualify and quantify that need (i.e., make sure there is a need and how big is the opportunity). If there is a need, then your job is to convince the account that you have a the products to fill that need and then propose a solution.
Think of this penetration and proposal process as a ‘Double Funnel’. You have a list of clients you are looking at revisiting. You select one (red arrow) in particular who has purchased from you in the past (green arrow). The next step is to figure out what other products (A,B, C, D) you can up-sell the client on.
In many instances you may find that simply digging deeper into your existing client’s needs will increase your sales as much as 20%. That’s a lot! If a client has purchased $10,000 worth of products in the past, a 20% increase would mean an additional $2,000. If it’s a large client who has purchased $1M, that could mean $200K to your sales quota.
The added benefit to this ‘penetrate and up-sell’ strategy is the amount of time you’ll save increasing your sales and transactional cost savings by not having to market to new clients. Sometimes the answer to the questions, “Where can I find more business?” is as close as your nearest client database.
Here’s a good exercise for you do to. Take your top 5-10 clients and list them vertically numerically. Across the top, list all the different products you offer. Then, fill in the dollar amounts of how much they’ve purchased in the previous year. You will quickly begin to see where you need to start penetrating and up selling to meet your sales goal.
Victor Antonio G.
Copyright © 2006 by Victor Antonio. All rights reserved. This article MAY be reproduced in any form or by any means, electronic or mechanical, including photocopying, as long as the author’s name, website and email address are included as part of the article’s body. All inquiries, including information on electronic licensing, should be directed to Victor Antonio.
|© Copyright @ 2004 Keynote Resource Inc. All rights reserved. Permission is granted for linking to web pages within Keynote Resource
Keynote Resource speakers bureau can help you find the ideal keynote speakers for your next event. We represent inspirational speakers, motivational speakers, corporate entertainment and more.
Keynote Resource speakers bureau will find the perfect keynote speaker for your upcoming event, whether you are looking for inspirational speakers with a message, motivational speakers to set the tone of your conference or a facilitator for your annual retreat.
Keynote Resource speakers bureau works closely with executives, meeting planners and training directors to create events that result in highly productive learning or are just plain fun. We can identify business speakers, inspirational speakers or motivational speakers that are well suited to your event, send you videos and press kits to help you with your speaker selection and we’ll work closely with the keynote speakers you hire to ensure they customize their presentations to meet the specific needs of your audience.
We have speakers in all areas including Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington and Wisconsin.
We can book speakers for you worldwide, in Canada, New Zealand, Australia, Singapore, Hong Kong, China, Ireland, England, France, Italy, Switzerland, Denmark, Sweden, Brazil and The Bahamas. Click Here to Search A Speaker
Speaker fees are determined based on a number of factors and may change without notice. Fees may vary based on the speaker’s availability, supply and demand, program length and location of the event.
Each fee range listed on this website is intended to serve as a guideline only. In some cases, the actual price quote may be above or below the fee range stated. For the most current fee, please contact your representative directly.