{"id":765,"date":"2019-08-10T20:03:00","date_gmt":"2019-08-10T20:03:00","guid":{"rendered":"https:\/\/sellingsherpa.com\/?p=765"},"modified":"2019-08-10T20:03:09","modified_gmt":"2019-08-10T20:03:09","slug":"major-account-sales-strategy-book-summary","status":"publish","type":"post","link":"https:\/\/sellingsherpa.com\/index.php\/2019\/08\/10\/major-account-sales-strategy-book-summary\/","title":{"rendered":"Major Account Sales Strategy (Book Summary)"},"content":{"rendered":"<div class=\"nolwrap\">\n<p class=\"wp-block-paragraph\"><a href=\"http:\/\/Major Account Sales Strategy by Neil Rackham\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Major Account Sales Strategy by Neil Rackham (opens in a new tab)\">Major Account Sales Strategy by Neil Rackham<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Preface<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Unless strategy can be readily translated into\nspecific actions within individual accounts, then it\u2019s just empty jargon.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>1 How Customers Make Decisions<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The better we understand the customer decision\nprocess and how to influence it, the better our strategy will be.<\/li><li>A measure of the health of a sales organization\nis the amount of time it spends relating to customers compared with the time it\ntakes relating to the internal needs of the company.<\/li><li>Build a selling strategy that focuses on the\nsteps the customer takes in deciding, not on the steps the salesperson takes in\nmaking a sale.<\/li><li>The customer decision process in a major sale\nnormally progresses through distinct stages. Three of these stages take place\nbefore the decision, and a fourth stage happens after the decision has been\nmade.<ul><li>Recognition of Needs:&nbsp; The decision process begins when you no\nlonger feel totally satisfied. During this stage, you move from minor\nirritation to real dissatisfaction, and then finally to a point where you\ndecide you\u2019re going to do something about it. The most effective selling\nstrategy [in this phase] is to uncover the source of dissatisfaction and to\nincrease the customers\u2019 perception of its intensity and urgency. in the early\npart of the Recognition of Needs phase you hold back on product discussions and\npresentations.<\/li><\/ul><ul><li>Evaluation of Options: Your optimum selling\nstrategy during this stage of the sale is to influence in your favor the\ncriteria the buyer or buyers are using to evaluate available options. \u201cIt\u2019s\nvery confusing choosing between different systems. So I\u2019d like to begin by\nlooking at some of the factors you should consider to help you make the right\nchoice.\u201d The most common strategic error that salespeople make in this phase of\nthe sale is that they don\u2019t try to uncover the customer\u2019s guidelines, or\ncriteria, for making the decision<\/li><\/ul><ul><li>Resolution of Concerns: Until you\u2019ve overcome [your\nprospect\u2019s] fears [they] won\u2019t be ready to move ahead to make the final\ndecision. A good selling strategy at this point in the sale must find a way to\nuncover and resolve fears and concerns of this kind. It\u2019s more dangerous to\nignore signals of customer concern than it is to explore potential concerns and\nget them out into the open.<\/li><\/ul><ul><li>Implementation<\/li><\/ul><\/li><li>Successful people ask a lot more questions\nduring sales calls than do their less successful colleagues.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>2 Account Entry Strategy: Getting to Where It Counts<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Entry strategy is complicated by the irritating habit of some customers of pretending that they have decision-making authority when they don\u2019t.<\/li><li>Successful people tended to seek a sponsor \u2014 an individual within the account who helped them, advised them, and, if necessary, represented them in places where they couldn\u2019t gain access.<\/li><li><em>Often, rather than rely on an individual person to act as sponsor, successful salespeople [often] find a particular function or area of an account to sponsor them.<\/em><\/li><li>The Three Focus Points of an Entry Strategy<ul><li>The focus of receptivity<\/li><\/ul><ul><li>The focus of dissatisfaction<\/li><\/ul><ul><li>The focus of power<\/li><\/ul><\/li><li>Calls to people who are purely receptive tend to be most successful if your strategic aims are to find out information about the account and the people in it and to gain access to others in the account who are located at the focus of dissatisfaction<\/li><li>Receptivity \u2014 in isolation \u2014 doesn\u2019t lead to business. You must also have dissatisfaction and power.<\/li><li><em>Needs begin with dissatisfaction. The ability to uncover and develop dissatisfaction is the most important of all selling skills.<\/em><\/li><li>There are two strategic objectives for sales calls to individuals or departments at the focus of dissatisfaction. These objectives are to: <ul><li>1. Uncover dissatisfaction and develop it to a point where the customer wants to take action.<\/li><\/ul><ul><li>2. Use the dissatisfaction you\u2019ve developed to gain access to the decision-maker, either directly or by using your sponsor to sell on your behalf<\/li><\/ul><\/li><li>The best friend is the person who\u2019s having the most problems with your competitor.<\/li><li>It\u2019s difficult to gain access to decision-makers \u2014 so don\u2019t waste it.<\/li><li>Meetings with people at the focus of power are often wasted because the seller has an inflated expectation of the decision maker\u2019s ability to make a unilateral decision.<\/li><li>The traditional distinction between influencers and decision-makers is breaking down. It\u2019s frequent to see two roles \u2014 or sometimes all three \u2014 combined in one person. For instance, a person with dissatisfaction will often be receptive, and sometimes the person with the problem also has decision power.<\/li><li>[To enter an account,] first, decide who is likely to be most receptive. Then, ask for feedback on how your solution could help someone like them.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>3 How to Make Your Customers Need You: Strategies for the\nRecognition of Needs Phase<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Three strategic objectives during the Recognition of Needs phase<ul><li>1. Uncover dissatisfaction,<\/li><\/ul><ul><li>2. Develop dissatisfaction,<\/li><\/ul><ul><li>3. Selectively channel dissatisfaction, so that people in the account selectively feel dissatisfaction in those areas where your products and services provide them with the best solutions<\/li><\/ul><\/li><li>You must begin by deciding what problems your products can solve for customers.<\/li><li>I\u2019ve come to mistrust general relationship-building objectives because they are vague and they lack the kind of specificity that can be turned into measurable action. Rather than \u201cto build relationships\u201d, [top salespeople] are likely to set call objectives such as \u201cto get an introduction to the Planning Department\u201d or \u201cto agree to the steps we must go through to get on the vendor list.\u201d <\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><em>Good [call] objectives must be specific \u2014 so that they state clearly identified purposes, not global intentions like \u201ccollect information\u201d or \u201cbuild relationships\u201d\u2014 and forward-moving \u2014 so that they advance the sale in some clearly identifiable way.<\/em><\/li><li>SPIN questions<ul><li>Situation Questions<\/li><\/ul><ul><li>Problem Questions: Ex: \u201cWhat parts of this operation give you the most difficulty?\u201d<\/li><\/ul><ul><li>Implication Questions: \u00a0Develop a problem by asking about its effects or consequences. In major sales, Implication Questions are very strongly linked to success during the Recognition of Needs phase.<\/li><\/ul><ul><li>Need-Payoff Questions: Ex: \u201cHow would this help you?\u201d<\/li><\/ul><\/li><li>With the increasing trend toward shared decision making and committee purchasing, access to the full range of individuals at the focus of power is likely to become increasingly difficult. Salespeople must learn more effective indirect methods to influence these unseen but powerful people. Use your sponsors at the focus of dissatisfaction to sell [indirectly] to the decision-maker on your behalf. <\/li><li><em>Rehearse sponsors to represent you at the focus of power. Instead of saying, \u201cTell your boss that this will be a benefit,\u201d ask Need-payoff Questions (ex: \u201cWhy might your boss find this a benefit?\u201d) of people at the focus of dissatisfaction so that they practice explaining the benefits that your product offers.<\/em><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>4 Influencing the Customer\u2019s Choice: Strategies for the\nEvaluation of Options Phase<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Within the same account, you must sometimes face\ncustomers who are in different phases of the decision. Despite this, it\u2019s\nusually relatively easy to tell when the critical mass of people in an account\nhas moved from the Recognition of Needs phase to the Evaluation of Options\nphase. Watch for signs such as:<ul><li>Published specifications<\/li><\/ul><ul><li>Purchasing committees<\/li><\/ul><ul><li>Vendor presentations<\/li><\/ul><\/li><li><em>Alternative demands on the customer\u2019s budget,\nfor example, can be just as important a competitor as another vendor.<\/em><\/li><li>Three specific strategic objectives in mind when\nmaking sales calls during the Evaluation of Options phase.<ul><li>Uncover decision criteria. Ex: How do you judge\na telecommunications system?<\/li><\/ul><ul><li>Influence decision criteria.<\/li><\/ul><ul><li>Maximize perceived fit with decision criteria.<\/li><\/ul><\/li><li><em>Skillful sellers influence decision criteria\nto bring about a better fit with their products.<\/em><\/li><li>You shouldn\u2019t take screening criteria at their\nface value. It\u2019s usually worth making at least an exploratory challenge if you\nfeel you can meet the customer\u2019s needs but you can\u2019t meet the screening\ncriteria.<\/li><li>Decision criteria live on after the sale. One\ninteresting difference between a need and a decision criterion is that a need\ndisappears after it has been satisfied.<\/li><li>Four major strategies for influencing decision\ncriteria.<ul><li>Develop decision criteria from needs you\u2019ve\nuncovered during the Recognition of Needs phase of the sale.<\/li><\/ul><ul><li>Reinforce crucial decision criteria you can meet.<\/li><\/ul><ul><li>Build up incidental decision criteria in areas\nwhere you are strong.<\/li><\/ul><ul><li>Reduce the importance of crucial decision\ncriteria which you can\u2019t meet.<\/li><\/ul><\/li><li><em>Sometimes in complex sales, the trade-offs\nare between the needs of different people or functions, not just between\nproduct capabilities.<\/em><\/li><li><em>Never try directly to diminish or minimize\nsomething which is important to another person. By making a direct challenge to\na crucial criterion you are more likely to strengthen it than to diminish it.<\/em><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>5 Differentiation and Vulnerability: More about\nCompetitive Strategy<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>A good differentiator should also be one where\nthe seller\u2019s product or service should be measurably superior to the\ncompetition\u2019s.<\/li><li>Divide these differentiators into two lists. One\nlist should be the \u201chard\u201c differentiators \u2014 those which can be objectively\nmeasured by the customer. The other list consists of the \u201csoft\u201c differentiators\n\u2014 those which are matters of judgment or which can\u2019t easily be objectively\nmeasured.<\/li><li>The ideal selling position is when your product\nhas clear superiority in terms of its \u201chard\u201d differentiators.<\/li><li>The shorter the evaluation period, the more the\ncustomer will rely on \u201chard \u201cdifferentiators<\/li><li>The job of the effective sales strategist is to\ninfluence and guide the customer\u2019s decision process<\/li><li>Top salespeople go to great lengths to define,\nrefine, and reposition so that the customer is able to communicate the\ncriterion to others involved in the decision.<\/li><li>Any alternative solution to a customer problem\nconstitutes a potential form of competition which it\u2019s dangerous to ignore<\/li><li>Three strategies for countering vulnerability. <ul><li>1: change the decision criteria<\/li><\/ul><ul><li>2: increase your strength<\/li><\/ul><ul><li>3: diminish your competition<\/li><\/ul><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>6 Overcoming Final Fears: Strategies for the Resolution\nof Concerns Phase<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Two traits of exceptional seller: disarming honesty + being a great listener<\/li><li><em>Consequences are psychological issues which exist in the customer\u2019s mind that arise from the perceived risk of doing business with you. Only the customer can resolve them. Your role is to help the customer, not to try to resolve the concern on the customer\u2019s behalf.<\/em><\/li><li><em>As the decision nears, price issues are often raised as a respectable way to let a vendor know that a deeper discomfort exists.<\/em><\/li><li>Consequences can be difficult to recognize because<ul><li>(1) they are often under the surface,<\/li><\/ul><ul><li>(2) when they do surface, they are often in the disguised form of a price concern<\/li><\/ul><\/li><li>\u00a0\u201cI don\u2019t sell computers,\u201c he told us. \u201cI sell safety.\u201d If the customer wants to understand technicalities, I call in a support specialist. I raise risks about service, risks about reliability, and risks about software support. Then I show the customer that risks are much lower with IBM. IBM is safe.\u201d<\/li><li>Accept price issues at face value unless they seem to be unrealistic.<\/li><li>Signals that a Consequence issue exists<ul><li>Unjustified postponements.<\/li><\/ul><ul><li>Unwillingness to meet.<\/li><\/ul><ul><li>Withholding of information.<\/li><\/ul><\/li><li>It\u2019s better to get the issues out on the table where they can be handled and resolved, rather than to have them lurking under the surface.<\/li><li>Three Deadly Sins of Handling Consequences<ul><li>1. Minimizing<\/li><\/ul><ul><li>2. Prescribing<\/li><\/ul><ul><li>3. Pressuring<\/li><\/ul><\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Sales Negotiation: How to Offer Concessions and Agree to Terms<\/strong><\/li><li><em>The most common mistake people make when they\u2019re not clear about the difference between selling and negotiating is to begin negotiating too soon. The earlier you give concessions, the less impact they will have. By giving things away early, you may create an expectation that even larger concessions will follow later. <\/em>Instead, use terms like \u201cvery competitive\u201c to gain interest without giving anything away.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>8 How to Ensure Continued Success: Implementation and\nAccount Maintenance Strategies<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><em>Involve the customer in the installation\nplanning process. The more that installation is based on the customer\u2019s own\nplan, the more forgiving the customer will be if something unexpectedly goes\nwrong.<\/em><\/li><li>An average plan which gets real commitment from\nthe people implementing it will always beat a great plan which forgot to\ninvolve people.\u201d<\/li><li><em>inadequate attention to existing accounts is\noften a key reason for competitor success. If you don\u2019t reassess your\nunderstanding of your customers\u2019 needs, the competitors will. Competitors get\ninto your accounts by uncovering and developing needs which you\u2019ve neglected.<\/em><\/li><li><em>The people who protect their business most\nsuccessfully are those who are always actively looking for new opportunities in\nthe account. Ironically, if your objective is to maintain or protect, then\nyou\u2019ll be more likely to fail than if your objective is to sell.<\/em><\/li><li>Ensure that your customer\u2019s files contain concrete\nevidence of successes, not just problems.<\/li><li>Generate leads either very early in the\ninstallation process, during the \u201cNew Toy\u201d stage, or else wait until your\nimplementation is complete and producing maximum results before asking for\nintroductions and references.<\/li><li>A few years ago, the popular idea was introduced\nthat there are two types of successful sales personalities, \u201cFarmers \u201cand \u201cHunters.\u201d\nThe idea is appealingly simple, but, like many simple concepts, it turned out\nto be naive and dangerous.<\/li><li><em>Start the introduction of new products in\nyour smaller accounts and don\u2019t approach your key existing customers until\nyou\u2019re confident that you can make a strong needs-based sales call.<\/em><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>9 Anatomy of a Sales Strategy<\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Major Account Sales Strategy by Neil Rackham Preface Unless strategy can be readily translated into specific actions within individual accounts, then it\u2019s just empty jargon. 1 How Customers Make Decisions The better we understand the customer decision process and how to influence it, the better our strategy will be. A measure of the health of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":766,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_import_markdown_pro_load_document_selector":0,"_import_markdown_pro_submit_text_textarea":"","_monsterinsights_skip_tracking":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-765","post","type-post","status-publish","format-standard","has-post-thumbnail","category-uncategorized","entry"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- 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